Alabama: McGregor target in closing statements

Gambling corruption trial: McGregor target in closing statements
Written by Sebastian Kitchen

A federal prosecutor went straight after VictoryLand owner Milton McGre­gor in his closing statement Wednesday, reading secretly recorded conversations of the casino owner that he said proved McGregor was desperate and worried about the millions he had at stake, lead­ing to what prosecutors contend was his attempt to bribe state lawmakers to pass gambling legislation.

But McGregor attorney Joe Espy and other defense attorneys quickly fought back in their closing statements. They said the government hasn't proven its case and that it is a case constructed upon the testimony of people who have pleaded guilty and are attempt­ing to shorten their sentences and upon the testimony of three ambi­tious politicians.

"It is their burden, their responsi­bility and there is a total failure of proof in the case," Espy said.

Another prosecutor Wednesday sought to address race-tinged comments made by Sen.
Scott Beason, a key government witness who recorded conversations for the FBI.

Defense attorneys used the comment, which was read in court, to attack his char­acter and credibility and they wasted no time again Wednesday going after the credi­bility of the senator and other government witnesses.

On Wednesday, the prosecution began closing arguments. They used three of their five hours, leaving two hours so they could respond to the closing arguments by defense attorneys.

Attorneys for McGregor and two of his lobbyists, Tom Coker and Bob Geddie, deliv­ered their closing arguments Wednesday. At­torneys for the remaining defendants will have their opportunity today.

Those defendants are current state Sens. Quinton Ross of Montgomery and Harri Anne Smith of Slocomb; former state Sens. Larry Means of Attalla and Jim Preuitt of Talladega; former Country Crossing spokes­man Jay Walker; and legislative attorney and analyst Ray Crosby.

They are accused of participating in a scheme in which casino owners and those working for them tried to bribe lawmakers to support gambling legislation.
Injecting race

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Assistant U.S.
Attorney Louis Franklin tried to combat the racially inflammatory comments made by Beason, R-Gardendale, who referred to supporters of Greenetrack in west Alabama as "aborigines."

Franklin said he was not going to make excuses for Beason's comments, but said they were now being used by defense attor­neys only as a distraction.

"I was just as offended by them as you were," Franklin said.

But those comments have nothing to do with the evidence, he added, and were brought up during the trial only to insert race into the case. Defense attorneys quickly objected, and U.S. District Judge Myron Thompson sustained the objection.

"It is unfortunate that race plays a role in these matters. I submit to you it is merely a distraction," Franklin said. "This case is not about race. This case is about whether these defendants participated in a scheme to cor­rupt the legislative process."

Survival

Prosecutor Edward Kang, attorney with the Public Integrity Section of the U.S. De­partment of Justice, started his remarks by reading comments McGregor said in conver­sations secretly recorded for the FBI.

"It's a survival bill for us."

"My a-- is on the line. I have got a $200 million note I've got to pay with interest."

Kang then went into details that he said proves McGregor and the other defendants were involved in a conspiracy to pass gam­bling legislation in the state. Kang outlined the alleged corrupt activities of all nine of the defendants.

Kang said court rulings and the activities of a task force formed by then-Gov. Bob Ri­ley "were threatening" the millions of dollars McGregor was making at his casino.

VictoryLand, according to evidence, went from reporting $40 million in income in 2009 to losing more than $4 million in 2010.

"This man who had made a fortune off people's appetite for risk, he didn't want to leave anything to chance when it came to his own money," Kang said of McGregor.

McGregor and the other defendants worked together to corrupt the legislative process in the state, Kang said. He said there was the testimony of Country Crossing de­veloper Ronnie Gilley and his lobbyists, Jar­rod Massey and Jennifer Pouncy, who have all three pleaded guilty for their role in the corruption.

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Kang said their stories were corroborat­ed by conversations secretly recorded by the FBI.

Espy said the case was supposed to rely heavily on the secretly recorded audio. He said the tapes "fell flat."

"If the tapes speak for themselves, why do you have to play them over and over and over by the agents, the crooks and the ami­gos," Espy said.

Prosecutors would have the audio played and have witnesses including FBI agents and the three who have pleaded guilty interpret them.

Espy has labeled Beason, Rep. Barry Mask and then-Rep. Benjamin Lewis the "three amigos." He said they are three high­ly ambitious Republican politicians who re­corded conversations for the FBI of those who opposed their agenda, but did not record top Republicans.

The teams

Defense attorneys have tried to distance any of the actions of their clients from those of Gilley, Massey and Pouncy.

"There wasn't a separate Team Gilley and a separate Team McGregor," Kang said. He said they were all working to pass legis­lation that would have, if passed by the Leg­islature and voters, made electronic gam­bling legal in the state.

McGregor, as Gilley was struggling to keep his business afloat, loaned him about $13 million, according to testimony.

Kang said McGregor was a microman­ager and was detail-oriented, and would not have loaned millions to Gilley without know­ing what he was doing with the money.

"Milton McGregor was and is a savvy businessman. Like a savvy businessman, he watches his investments like a hawk," Kang said.

Espy said the two sides worked against the interests and wishes of the other, and constantly criticized the other in the wire­tapped conversations. Espy also talked about a March 23, 2010, conversation with Coker in which McGregor said "They don't coordinate with me."

The bribes

Kang said McGregor knew that Massey offered $1 million a year to Beason, and points to wiretapped conversations in which Gilley and McGregor talk about the "deal."

Thompson dropped the count accusing McGregor and Geddie of trying to bribe Mask, but there were arguments about the bribery count Wednesday. Geddie is still charged with trying to cover up two $2,500 checks that he and another lobbyist deliv­ered to a Mask fundraiser the night McGre­gor talked to Mask and pledged his support if Mask supported gambling legislation. Ged­die is accused of obstruction of justice for al­legedly having an employee change the led­ger that documented the source of those contributions, which was changed from Vic­toryLand to two Alabama companies.

But, according to testimony, the ledger was crossed out where people could still read it. Defense attorneys have said that this shows it was obviously not an attempt to hide it.

"I cannot honestly tell this jury that there is no bribe," Thompson said outside of the presence of the jury Wednesday, but said Mask never took the money.

He also said "you can't mention count 3. It doesn't exist anymore."

Jimmy Judkins, an attorney for Geddie, said the bookkeeper made a mistake and that, if they look, they will "see several cross-outs on these ledgers."

"That is why there are erasers on pen­cils," he said. " ... There was no attempt to hide or conceal anything."