Alabama: Charges stand

Charges stand despite judge's reservations in gambling corruption trial
Written by Sebastian Kitchen

The judge presiding over one of the largest corruption trials in Alabama history declined Thursday to drop any of the charges or remove any of the defendants in a case alleging that casino owners and their lobbyists tried to bribe lawmakers to support gambling legislation.

U.S. District Judge Myron Thompson said, as he indicated in his questioning a day earlier, he had serious reservations about charges against some of the defendants, but denied defense attorneys' motions and arguments for acquittal. He listened to more than eight hours of arguments Wednesday.

Thompson said he would continue to consider those issues. He said he would rule on whether there was a conspiracy between the nine defendants after they have presented their case.

Defense attorneys were quick to point out that Thompson left the door open to dropping charges.

"Yes, I was very surprised," Susan James, an attorney for Country Crossing spokesman Jay Walker, said about the judge's decision. She said Thompson asked very serious questions about the involvement of her client in the alleged scheme.

But, James added, "I think they always like for the jury to make the decision."
Joe Espy, lead attorney for VictoryLand owner Milton McGregor, said he was not surprised by Thompson's decision, which he said is common in a case of this magnitude.

Espy said Thursday that he and his legal team could work through the night to decide if they would even present a defense and whether McGregor would take the witness stand. He hoped to know those decisions, after consulting with the attorneys and his client and his family, by today.

Espy said they must decide if prosecutors had met the burden of proof.

"If we don't think they're close, it'd be foolish to go forward," he said.

When asked how the jury might interpret that, Espy said "I hope it'll send a message we don't think the government has a case."

Espy said they had a large number of witnesses on standby, although he said they had whittled their potential witness list down from about 80 to about 50.

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The defendants include McGregor; Walker; state Sens. Quinton Ross of Montgomery and Harri Anne Smith of Slocomb; former state Sens. Larry Means of Attalla and Jim Preuitt of Talladega; lobbyists Tom Coker and Bob Geddie; and former legislative analyst and attorney Ray Crosby.

Their defense

After Thompson's ruling, attorneys for Coker began to present their defense. Bill Baxley, a Coker attorney who is a former state attorney general, called Richard Whitaker, director of governmental affairs for the Medical Association of Alabama for 37 years, to the stand.

He testified that funds the indictment and prosecutors allege went to Ross as a bribe to vote for the gambling legislation were not related to gambling and that the association had contributed to Ross, a member of the health committee in the Senate, for years.

Ross has been accused of pushing McGregor and other casino interests for money in 2010 leading up to the Senate vote on the gambling legislation. McGregor told him, when they talked in late March 2010, he had already contributed, but would have his lobbyists encourage their other clients to contribute to the senator. The Senate voted on the bill March 30, 2010.

Coker, in a conversation secretly recorded by the FBI, told McGregor that he would get the medical association and those representing "soft drinks" to contribute to Ross.

The political action committee for the medical association contributed $10,000 to Ross that May, which the indictment contends was part of the conspiracy to bribe Ross to vote for the legislation and in response to McGregor's request of Coker to find Ross campaign help.

Prosecutor Edward Kang with the U.S. Department of Justice's Public Integrity Section provided documentation that he said indicated that Coker and Whitaker talked the same day that Coker told McGregor he would push for contributions from his clients. Baxley said them talking was not unusual since Coker worked for the association.

When asked by Kang about the contribution, Whitaker said "we're not involved in the bingo legislation or gambling. ... It wasn't involved with any gambling vote."

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Whitaker said the association contributed $10,000 to Ross in 2006 and $5,000 in 2002.

Lewis Gillis, an attorney for Ross, said Whitaker's testimony about the contribution was revealing and significant.

Espy said it is obvious the "Ross contribution had nothing to do with gaming."
When asked by Baxley, Whitaker also said although he had signed the check, neither FBI agents nor prosecutors ever came to ask him about the contribution to Ross' campaign. Gillis questioned federal authorities not even inquiring about the contribution that is the source of a charge against his client.

Whitaker said a doctor requested that the association's PAC contribute to Ross in 2010. He said Ross also called him and asked for a contribution.

Whitaker said that, for a candidate to receive a contribution, a physician must make a request, a committee of doctors in that congressional district must approve it, and then a statewide committee of 18 doctors must approve that.

"I'm the one that put it before the board," Whitaker said.

Whitaker also said Ross was on the health committee during his first two terms in the Senate.

"I found that he would listen if we approached him. If we had a bill or there was a bill before the committee, he would listen to us about a proposed amendment," he said. " ... I can't remember a time he voted against any of our suggestions on the health committee."

Whitaker said he talked to Coker and Ross about contributing to the senator. He said he asked Ross if he had an opponent.

"He explained he was trying to help his fellow Democrats stay in the majority," Whitaker said of Ross.

Whitaker said he asked Coker if everyone trying to raise money was raising money for their political caucuses.

Whitaker said Coker told him that he thinks Ross was designated by the caucus to raise funds for other candidates since he was unopposed.

"He was interested in a larger amount of money than I thought would be accepted or approved by our committee" because he was unopposed, Whitaker said. Whitaker did not recall the amount, but said it was at least double the $10,000 that the association's PAC gave to Ross.

When asked by Baxley, Whitaker said that in 2010 the association's PAC contributed $15,000 each to then-state Sens. Scott Beason and Steve French, who were also witnesses for the prosecution in this case.

"Anybody ever indicated that contribution to Senator Beason was a federal crime?" Baxley asked Whitaker.