Birmingham mayor arrested on federal charges
From Sunshine Review
3 December 2008
Birmingham, Alabama Mayor Larry Langford was arrested December 1, after being named in a 101 count federal indictment. The mayor faces charges of conspiracy, bribery, fraud, money laundering, and filing false income tax returns.[1]
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[edit] Indictment
U.S. Attorney Alice Martin said that during November 2002 and November 2006, while Langford was president of the Jefferson County, Alabama Commission and head of its department of finance and general services, he put his own affairs ahead of the county. She stated, "Our investigation has revealed, and the indictment alleges, that Langford sold his public office to his friends and political supporters."[1]
Alongside Langford, the indictment charges two other men - William Blout, an investment banker from Montgomery, and Albert LaPierre, a lobbyist.
[edit] Pay-to-Play scheme
Martin explained, "Langford steered lucrative business to William Blount and his company and he, in turn, earned in excess of $7.1 million and, with the help of lobbyist Albert LaPierre, they ensured that Larry Langford's crushing personal debts were paid off through payoffs of loans, store charge accounts, purchases of clothing and jewelry and other items of value that exceeded $230,000 over a period from 2002 to 2006."[1]
A scheme was hatched by the three men, where Langford used his influence and position to make sure Blount's company, Blount Parrish Inc., was directly involved in transactions dealing with multibillion-dollar sewer debt. In total, Blount and his company took in $7.1 million in fees, paying LaPierre about $219,000 for "consulting fees."
"Through a web of financing agreements, Langford required many institutions to use Blount as a consultant so Blount would make fees and in turn pay off Langford. It was a classic pay-to-play scheme," Martin stated.
[edit] Langford relieved
In response to the arrest and charges, Langford said it was a relief. He said the rumors and speculation over it was much more distracting, and that he could now focus more on his job as mayor. After appearing at a city council meeting, he said, "It's not business as usual. It's business more intensified than usual. Now that I know what I'm dealing with, I can now turn all of my attention to carrying out my duties as mayor."[2]
[edit] Fines and jail time
Federal officials are seeking criminal forfeiture of about $7.6 million from each of the three men. In addition each could face 10 years in jail for each bribery and money laundering count, 20 years for each fraud count, 5 for the conspiracy charge, and 3 for each tax count.[1]
