Alabama: Lobbyist testifies about bribes

Ala. casino lobbyist testifies about bribes
By PHILLIP RAWLS

Defense attorneys in Alabama's gambling corruption got a key government witness to admit he had a long history of bold criminal behavior, including scheming with a legislator to get a lobbying contract from an organization headed by the husband of the chief federal prosecutor in Montgomery.

"I was involved in criminal conduct specifically with state Rep. Terry Spicer," Country Crossing lobbyist Jarrod Massey testified Wednesday.

Defense attorneys sought to discredit the testimony that Massey gave against their clients by showing he had violated the law repeatedly before he pleaded guilty in the gambling case, and that none of that prior conduct involved their clients. Massey's plea deal with the government calls for him to get a sentence of 14 to 17 1/2 years in exchange for his testimony.

Nine people, including four present and former state senators, are on trial, accused of using campaign contributions to buy and sell votes on pro-gambling legislation.

Under questioning by defense attorney Bobby Segall, Massey said that from 2001 to 2008, he paid $3,000 in cash each month to Democratic state Rep. Terry Spicer of Elba for helping him get lobbying contracts with more than 20 clients. Massey said they lined up the contracts by having Spicer describe their close friendship to potential lobbying clients who need Spicer's support. Massey said he also told clients about Spicer's access to state bond money and his influence on state appropriations through his seat on the House's education budget committee.

Massey said the cash he paid to Spicer was not campaign contributions. "I did bribe Mr. Spicer," he testified.

Spicer lost his re-election bid in 2010. Spicer, now school superintendent in Elba, has not been charged. He did not return phone messages Wednesday seeking comment about Massey's testimony.

Massey said his plea agreement with federal prosecutors gives him immunity from prosecution for the payments to Spicer.

Segall, who represents indicted VictoryLand casino owner Milton McGregor, asked Massey if he was aware that Spicer had a plea agreement with federal prosecutors.

Massey said he was not.

Justice Department spokeswoman Laura Sweeney declined comment on whether there is an agreement. But a document that the defense attorneys accidentally showed to a juror late Wednesday afternoon was from an interview that Spicer willingly had with FBI agents.

The document, known as a proffer agreement, is what Massey gave the FBI before he pleaded guilty.

McGregor's attorney asked Massey if he schemed with Spicer to help Massey get a $36,000 lobbying contract with the Business Council of Alabama, headed by William Canary.

"I represented to Mr. Canary that I was confident I could get Mr. Spicer's vote," Massey testified.

Massey testified that the Business Council of Alabama did nothing wrong in giving him a contract prior to the federal investigation. Canary's wife, Leura Canary, was U.S. attorney in Montgomery until she resigned last month. Her office worked with the FBI on the investigation that led to Massey's guilty plea to offering bribes to legislators to support pro-gambling legislation. That investigation also resulted in the trial of VictoryLand casino owner Milton McGregor, two of his lobbyists, four present and former state senators, and two others on charges accusing them of buying and selling votes for the legislation in 2009 and 2010.

McGregor's lawyer said the goal was to show Massey had a history of violating the law before he ever began working with others to try to pass pro-gambling legislation and that he operated independently of McGregor and the other defendants because they had a history of lobbying honestly.

Under questioning, Massey admitted that he was recorded in wiretapped phone calls criticizing McGregor and his lobbyists for their lobbying techniques and that he took a significant amount of credit for the Senate passing the pro-gambling bill on March 30, 2010.

"I took credit for having a substantial amount to do with it," Massey testified.

The legislation was a constitutional amendment designed to protect electronic bingo casinos from raids by state police. The FBI disclosed its investigation into Statehouse corruption two days after the Senate's vote, and the bill soon died because the House never considered it.

In other questioning Wednesday, Massey said his employer, Country Crossing casino developer Ronnie Gilley, offered him financial incentives, including a stake in the now-closed Dothan casino, if he would not plead guilty in December. He said McGregor never tried to influence his testimony.

Gilley pleaded guilty after Massey did, and he testified earlier in the trial.

Defense attorneys will continue questioning Massey on Thursday, which will be his sixth day on the witness stand.