GADSDEN -- Sen. Larry Means, D-Attalla, was among four state legislators and
several influential lobbyists and casino owners arrested this morning and
charged by the FBI with vote buying on a bill designed to legalize
electronic bingo in Alabama.
The federal
indictment was released earlier today by the FBI. It accused casino owners
and politicians of conspiring to make payments and campaign donations in
exchange for legislators’ efforts to get the legislation approved during the
2010 legislative session in
Montgomery.
VictoryLand casino owner Milton McGregor
was among those indicted. His casino, now shut down, has more than 6,000
electronic bingo machines. Also indicted was Country Crossing casino
developer Ronnie Gilley and state Sens. Harri Anne Smith, James Prueitt,
Quinton Ross Jr., and Means.
According
to the indictment, McGregor owned a controlling interest in Macon County
Greyhound Park Inc., also known as Victoryland, in
Macon
County and Jefferson Country Racing
Association in Jefferson County, as well as ownership interest in other
entertainment and gambling facilities in
Alabama
that offered or sought to offer electronic
bingo gambling machines to the public. Gilley
owned a controlling interest in the Country Crossing real estate,
entertainment and gambling development in
Houston
County which also sought
to offer electronic bingo gambling machines to the public.
Assistant Attorney General Lanny Breuer in
Washington
said the federal investigation found criminal activity that was astonishing
in scope. He called it “a full-scale campaign to bribe legislators and
others.”
The defendants are charged in an
indictment returned by a grand jury last Friday in
Montgomery.
“Today, charges were unsealed against 11
legislators, businessmen, lobbyists and associates who, together, are
alleged to have formed a corrupt network whose aim was to buy and sell votes
in the Alabama legislature in order to directly benefit the business
interests of two defendants, Milton McGregor and Ronald Gilley,” said
Assistant Attorney General Lanny A. Breuer of the Criminal Division in the
nation's capital.
The Gadsden Times website reported that
a spokesman for the Etowah County Sheriff’s Office confirmed that Means was
arrested this morning in an area Walmart.
From February 2009
through August 2010, McGregor, Gilley and their co-defendants allegedly
conspired to commit federal program bribery by corruptly giving, offering
and agreeing to give money and other things of value to
Alabama
state legislators and staff with the intent to influence and reward them in
connection with pro-gambling legislation.
The indictment alleges
that Alabama state legislators, including co-defendants Means, Preuitt,
Smith and Ross corruptly solicited, demanded, accepted and agreed to accept
money and things of value from their co-conspirators and others, intending
to be influenced and rewarded in connection with pro-gambling legislation.
Specifically, Means is alleged to have
sought $100,000 in campaign donations in exchange for his support of Senate
Bill 380, which passed in the Senate earlier this year and would have
allowed electronic bingo casinos in several areas around the state.
According to the indictment, Means’s
asked for the money after he had already accepted five $5,000 contributions
from McGregor.
“He’s asking for $100,000 if he votes
for this bill,” the indictment claims a lobbyist told Gilley on or about
March 24, 2010, referring to Means.
“He can one-hundred percent count on our
support,” Gilley responded, according to the indictment. “We’re gonna
support who supports democracy.”
On March 30, 2010, the indictment reads,
Means voted for SB380 after having abstained from voting on an earlier
version. The bill ultimately failed to become law prior to the end of the
2010 session.
According to the Associated Press, the
defendants’ attorneys are expected to release a statement later today. The
Post placed a call to Sen. Means’ cell phone this morning and left a
message.
According to CNN's
website, Means is charged
with the following: one count of conspiracy, two counts of federal program
bribery, two counts of attempted extortion, and 11 counts of honest services
mail and wire fraud.
In a related case, Jennifer D. Pouncy, 34, of
Montgomery, pleaded guilty on Sept. 28, 2010, before U.S. Magistrate Judge
Charles S. Coody to one count of conspiracy for her role in the scheme.
According to information stated during her plea hearing, Pouncy admitted
that she offered Preuitt $2 million for his vote on the pro-gambling
legislation, based on orders from lobbyist Jarrod Massey.
Pouncy also admitted that Massey and Gilley
authorized her to offer $100,000 to Means in return for his support for the
pro-gambling legislation. Pouncy's guilty plea was unsealed this morning,
and a sentencing date has not been set, the Gadsden Times reported this
afternoon on its website.
The conspiracy charge carries a maximum penalty of five years in
prison and a $250,000 fine, the Justice Department said.
The federal program bribery charges carry a maximum penalty of 10
years in prison and a $250,000 fine.
Each count of extortion, honest services mail and
wire fraud, money laundering and obstruction of justice carries a
maximum penalty of 20 years in prison and a $250,000 fine. The false
statement charge carries a maximum penalty of five years in prison and a
$250,000 fine.
A capsule look at the 11 people indicted and the one person who
pleaded guilty in the federal investigation of electronic bingo
legislation
(Editor's note: This breakdown was added Oct. 5, 2010 at 12 p.m.)
:
—Milton McGregor, 71, of Montgomery, owner of VictoryLand in Shorter
and a financial backer of Country Crossing in Dothan. Charged with one
count of conspiracy, six counts of bribery and 11 counts of honest
services fraud.
—Ronnie Gilley, 45, of Enterprise, developer of Country Crossing.
Charged with one count of conspiracy, six counts of bribery, 11 counts
of honest services fraud and four counts of money laundering.
—Jarrod D. Massey, 39, of Montgomery, lobbyist for Gilley. Charged
with one count of conspiracy, five counts of bribery, and 11 counts of
honest service fraud.
—Thomas E. Coker, 70, of Lowndesboro, lobbyist for McGregor. Charged
with one count of conspiracy, two counts of bribery, and 11 counts of
honest services fraud.
—Robert E. "Bob" Geddie Jr., 60, of Montgomery, lobbyist for
McGregor. Charged with one count of conspiracy, 11 counts of honest
services fraud, and one count of obstruction of justice.
—Jarrell W. "Jay" Walker Jr., 36, of Lanett, public relations
spokesman for Gilley. Charged with one count of conspiracy, one count of
bribery and 11 counts of honest services fraud.
—Harri Anne Smith, 48, of Slocomb, state senator. Charged with one
count on conspiracy, two counts of bribery, one count of extortion, 11
counts of honest services fraud, and four counts of money laundering.
—Larry Means, 63, of Attalla, state senator. Charged with one count
of conspiracy, two counts of bribery, two counts of attempted extortion,
and 11 counts of honest services fraud.
—James E. Preuitt, 75, of Talladega, state senator. Charged with one
count of conspiracy, one count of bribery, one count of attempted
extortion, and 11 counts of honest services fraud.
—Quinton Ross Jr., 41, of Montgomery, state senator. Charged with one
count of conspiracy, two counts of bribery, two counts of attempted
extortion, and 11 counts of honest services fraud.
—Joseph Raymond "Ray" Crosby, 61, of Montgomery, legislative analyst
for the Legislative Reference Service. Charged with one count of
conspiracy, one county of bribery and 11 counts of honest services
fraud.
—Jennifer D. Pouncy, 34, of Montgomery, employee of Jarrod Massey's
lobbying firm. Pleaded guilty Sept. 28 to one count of conspiracy and
admitted offering $2 million to Preuitt to support pro-gambling
legislation.
