Posted on 12/02/2008 7:04:40 PM PST by csvset
Birmingham Mayor Larry Langford was arrested Monday after being charged in a federal indictment that accuses the former Jefferson County commissioner with receiving more than $236,000 in expensive clothes, designer watches and cash to pay his personal debt as part of a conspiracy to funnel county financial business to two of his friends.
A special federal grand jury in Birmingham returned a 101-count indictment against Langford, the former commission president; Montgomery investment banker Bill Blount and lobbyist Al LaPierre. The indictment includes charges of conspiracy, bribery, fraud, money laundering and filing false income tax returns in what prosecutors described as a long-running bribery scheme related to sewer bonds and other Jefferson County financial transactions.
FBI agents arrested Langford Monday morning at Birmingham Budweiser, where the former newsman has headed the company's community relations division since 1982. He was kept in a holding cell at the courthouse before his initial appearance and arraignment. Blount and LaPierre surrendered hours later at the Hugo Black Federal Courthouse.
The three men appeared before U.S. Magistrate Judge John Ott in leg irons during hearings in which they were informed of the charges against them, pleaded not guilty and were released on bond.
U.S. Attorney Alice Martin described the corruption charges against Langford, Blount and LaPierre as a "classic pay-to-play scheme."
"Former Commission President Langford owed a duty of loyalty to Jefferson County in the administration of the county's financial affairs," Martin said in a statement. "He sold out his public office to his friends Blount and LaPierre for about $235,000 in expensive clothes, Rolex watches and cash to pay his growing personal debt. All the while, Blount was paid fees topping $7 million."
Langford supporters, however, argued the charges were politically motivated.
"I've never heard of a federal office treating this administration the way we've been treated," said Langford Chief of Staff Deborah Vance-Bowie. "If this is not personal, it certainly looks like it is."
Langford is named in 60 counts of the indictment. Blount is named in 43 counts, while LaPierre is named 22 counts.
Langford keeps quiet:
Langford walked into the courtroom in good spirits. He sat with his attorneys and politely answered "yes sir" or "no sir" to questions asked by Ott.
Tom Baddley, a Langford attorney, said after court that he had advised Langford, who was released on a $50,000 unsecured bond, not to publicly discuss the charges. Langford, wearing a brown sweater vest, a plaid shirt and tan pants, stood beside Baddley as the lawyer said he was surprised and disappointed.
"I think you all know that someone innocent today has been charged," Baddley said.
Baddley said Langford passed a polygraph test "with flying colors" and offered to take a second for the U.S. attorney's office.
"We have had no response and we sought to get that information to the grand jury so they would know Mayor Langford was willing to do that," Baddley said.
Before leaving the courthouse, Baddley said Langford has "a city to run and very shortly he's headed back to City Hall."
Mike Rasmussen, a Langford attorney, said Langford's lawyers had told the U.S. attorney's office on more than one occasion that Langford would be willing to turn himself in if indicted.
"Unfortunately, other people have been allowed to surrender, take their time," Baddley said. "Mayor Langford was arrested. He was put in shackles and here we stand today. I think it was a terrible thing."
Fifth to be charged:
Langford is the fifth former county commissioner since 2005 to be charged with acts of public corruption while in office.
Two former commissioners, Chris McNair and Gary White, were convicted by separate juries on charges of bribery relating to the sewer system construction. McNair received a five-year prison sentence, but is out on bond pending his appeal. White also is free while awaiting an appeals court ruling on whether he will get a new trial after a federal judge overturned his conviction.
Former Commissioner Jeff Germany was convicted in another case that involved misuse of taxpayer money for personal gain. He is serving his three-year sentence in a Montgomery federal prison.
Former Commissioner Mary Buckelew pleaded guilty to obstructing justice by lying to the special federal grand jury about gifts she received from Blount. She is to be sentenced in February.
The Nov. 25 indictment returned against Langford, Blount and LaPierre was not made public until Monday. It supersedes one with fewer charges that was returned in June, as the date neared for the statute of limitations to run out. That indictment remained sealed as the special grand jury continued its investigation. County Commissioners Bettye Fine Collins and Shelia Smoot appeared before the grand jury in August.
John Katopodis, a close friend of Langford's, appeared in October and was later indicted in connection with his handling of money Jefferson County donated to Computer Help for Kids, a charity that Katopodis and Langford founded in 2000.
Timing questioned:
Vance-Bowie criticized the timing of the indictment, accusing federal officials of rushing to deliver it before the new president takes office and Martin is replaced.
First Assistant U.S. Attorney Jim Phillips vehemently denied the indictment was timed for political reasons, saying the case was first returned in June.
Prosecutors detailed the charges at Monday's press conference. They contend Langford conspired to solicit and accept bribes from Blount and LaPierre in exchange for using his influence as commission president and head of the finance and general services department to include Blount and his company in bond and swap transactions for the county's sewer program.
The estimated cost for the county's court-mandated upgrade of its sewer system has tripled since its inception and now stands at $3.2 billion. The county is considering bankruptcy as it struggles to pay the sewer debt.
Some of the financial transactions were handled through JP Morgan Chase & Co. Prosecutors contend that, as a condition for getting county financing business through Langford, JP Morgan had to pay fees to Blount's investment firm, Blount Parrish & Co. or to associate Goldman Sachs, which then paid Blount Parrish consulting fees.
Prosecutors said that, between 2003 and 2006, Blount and his company received about $7.1 million in fees on county financial transactions. Prosecutors said Blount paid LaPierre $219,500 in consulting fees.
Langford, acting for the commission, entered into another financial transaction for $110 million that included Bank of America and Lehman Brothers Special Financing Inc., prosecutors said. The agreement, prosecutors contend, required Lehman Brothers to pay a broker's fee or arrangement fee of $35,000 to Blount Parrish.
The U.S. attorney's office said that, in all, Blount and LaPierre paid Langford more than $236,000 in cash, loan pay offs and expensive clothing and jewelry, such as a Rolex watch.
Each fraud count carries a penalty of up to 20 years in prison, and each money laundering and bribery count is punishable by up to 10 years in prison. The conspiracy count carries a penalty of up to five years in prison and each tax count carries a penalty of up to three years.
SEC lawsuit:
Langford, Blount and LaPierre also are named in a civil lawsuit filed in April by the U.S. Securities and Exchange Commission. In the suit, Langford is accused of arranging $6.7 million in county financial business for Blount, who gave him $156,000 that was used to pay a personal loan and income taxes as well as buying clothing and jewelry.
The men, who vehemently deny any wrongdoing, have asked that the suit be dismissed.
Tommy Spina, a LaPierre attorney, said the allegations in the indictment are the same ones that have come up since the SEC investigation began years ago.
Spina said LaPierre, who was released on a $50,000 bond secured by property, has committed no crime.
"The transactions alleged in the indictment were in no way conducted in a clandestine manner in an effort to hide anything from anybody that wanted to look," Spina said.
Blount was released on a $100,000 bond secured by property and surrendered his passport. Blount declined to comment.
"We look forward to presenting our side of the story in court," said David McKnight, a Blount attorney.
News staff writer Joseph D. Bryant contributed to this story. vwalton@bhamnews.com
What about CONGRESS, don’t tell me THEY’RE clean.
Congress? Why, they’re pure as snow...after a dust storm.
i assumed he was a democrat since they made no mention.
if he was a republican it would have been noted within the first 5 words...
101 count indictment, wow. That’s a little over $2.00 per count. That’s like somebody holding up a convenience store and murdering the clerk for $46. Was it worth it?
B’ham’s very own Kwame Kilpatrick!
Langford, a Democrat, was elected to the county commission in 2002,...
Typically, if party affiliation is not mentioned or is buried deep within the story, you can bet the perp is a Democrat.
A Republican's party is mentioned prominently and would make the MSM's newscasts.
No surprise there,its B’ham.
That was obvious from the title of the article. If he had been a Republican, the title to the article would have read: "Republican Birmingham Mayor Larry Langford (R) Indicted"
The mayor of Birmingham also happens to be one of the mayors in Bloomberg’s “Illegal Gun” Coalition of Mayors.
Typical Democrat culture of corruption - - set up your slush fund as a children's charity.
May they all rot in hell.
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