Jury deliberated less than 2 hours; mayor loses office by conviction

In the Tuscaloosa federal courthouse, Birmingham mayor Larry Langford was found guilty on all 60 counts of of bribery, money laundering, fraud and conspiracy. The jury deliberated less than 2 hours this afternoon before returning a verdict.

The conviction automatically removes Langford from office. Council president Carole Smitherman becomes acting mayor until a special election is held. Valerie Abbott becomes acting council president.

Judge Scott Coogler set Langford’s forfeiture at $241,843; sentencing will take place in early 2010, in 90 to 120 days. Langford, who remains free until then, faces up to 805 years in prison.

Following the trial, Langford said he plans to appeal, adding “We all have our trials, this too will pass.”

Video: Langford chastises Birmingham media after the verdict (3 min.)

While Langford served on the Jefferson County Commission, Montgomery investment banker Bill Blount paid Langford with about $236,000 in cash, jewelry and clothes, sometimes using lobbyist Al LaPierre as a middleman. Blount and LaPierre, who were indicted with Langford, pleaded guilty earlier this year.

Langford, in turn, steered millions of dollars worth of county bond business to Blount’s firm, Blount Parrish. The three passed off the transactions as loans, creating false promissory notes to cover their tracks.

The trial was originally slated for Aug. 31, until Langford’s attorneys successfully petitioned for a change of venue from Birmingham. The next available date in Tuscaloosa was Oct. 19, and the trial has lasted 8 days. Langford was arrested in December 2008.

Langford becomes the fourth county commissioner convicted of sewer-related finances. The others were Mary Buckelew, Chris McNair and Gary White. (A fifth commissioner, Jeff Germany, was convicted of misapplying funds and conspiracy.)

He began as a reporter for WBRC-TV 6, but turned to politics after his election to the Birmingham city council in 1977. He went on to become mayor of Fairfield in 1988, where he pushed for regional cooperation to open the Visionland amusement park (now Alabama Adventure).

Langford started his service on the Jefferson County commission in 2002, and soon became commission president. He entered office with the county already $1 billion in debt in sewer-related bills.

In 2007, he became mayor of Birmingham. He also worked as public relations director for Birmingham Budweiser. (Full bio at BhamWiki.)

His conviction ends his 32-year political career.

Video: Langford’s media conference after the verdict (20 min.)

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What do you think of the verdict? Birmingham’s future? Share your thoughts in the comments, please.

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Complete coverage: The trial of Larry Langford from Wade on Birmingham.

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Illustration by Herman Henderson

Ongoing coverage of Birmingham mayor Larry Langford on trial in Tuscaloosa for bribery.

Highlights: Attorneys made their closing arguments this morning. The prosecution said that Bill Blount bribed Langford with $236,000 in cash, clothing and jewelry for Jefferson County’s bond business.

The defense said that Blount took advantage of Langford’s generous nature and shopping addiction. Defense attorney Michael Rasmussen donned a suit jacket from a Remon’s bag covered in dollars, calling Blount the $7 million man, then broke off crumbs from a piece of bread to illustrate Langford’s cut.

Two alternate jurors were released.

The jury began deliberations shortly after 2 p.m.

Update: Jury returned a verdict of guilty on all 60 counts after deliberating for less than 2 hours.

Quote of the day: “He is a brilliant politician, but he can’t control his spending.” — Rasmussen, on his client Langford

“That badge you’re wearing says ‘juror,’ not ‘born yesterday.'” — Assistant U.S. Attorney Tamarra Matthews Johnson, to the jurors

Next: Verdict, hung jury or mistrial. It’s anyone’s guess.

• • •

Complete coverage: The trial of Larry Langford from Wade on Birmingham.

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Ongoing coverage of Birmingham mayor Larry Langford on trial in Tuscaloosa for bribery.

Highlights: The prosecution wrapped its case with testimony from Joe Elliot, an auditor with the Internal Revenue Service. From 2003 to 2005, Langford had about $226,000 in unreported taxable income, including cash, clothes and jewelry, Elliot said. That led to almost $77,000 in taxes owed by Langford to the government.

The defense called six witnesses, including one character witness, before resting today. Langford did not take the stand.

FBI agent Tom Mayhall said testified that Bill Blount said during his interview that Langford never asked Blount to buy him anything. Cross examination of Mayhall revealed that Blount said that Langford said he wanted a tailored suit for Oxxford Clothes.

Quote of the day: “It’s in God’s hands now.” — Larry Langford

Homework: “Did Larry Langford bet Birmingham’s future on Wall Street scheme?” from the Christian Science Monitor

Alabama’s unique Constitution, which leaves county government basically unregulated, has created a system “that’s structurally designed for corruption,” says Mr. Adams. But the Langford case may indicate that wherever the new bond financing deals involve collusion and corruption, the results can be dire.

Next: Closing arguments on Wednesday morning.

• • •

Complete coverage: The trial of Larry Langford from Wade on Birmingham.

Follow @LLtrial on Twitter for continuous media updates.

Subscribe to the RSS feed for daily coverage of Larry Langford’s trial from Wade on Birmingham.

Ongoing coverage of Birmingham mayor Larry Langford on trial in Tuscaloosa for bribery.

Highlights: Week 2 began with the last of the prosecution’s witnesses on Monday. Norm Davis of NBC Bank testified that Langford asked for a loan of $50,000 to $65,000, shortly after the institution became Jefferson County’s financial adviser. Langford received a credit card with a $25,000 limit, later raised to $65,000. Meanwhile, his credit score plummeted from 585 in 2003 to 485 in 2006. (Scores below 600 are considered “high risk” for lenders.)

Davis also painted a grim picture of Langford’s personal finances: In 2007, he was $649,946 in debt (including his mortgage) and $238,192 in credit card debt.

Prosecutors also read into the record portions of Langford’s deposition to the Securities and Exchange Commission from June 2007. Langford said in the deposition that he paid for his own clothes during trips to New York; Bill Blount testified last week that he had purchased the items, including a $12,000 watch, to bribe Langford. Langford also said that Blount never loaned him or gave him money; Blount had testified that he gave Langford more than $100,000 using Al LaPierre as a middleman.

Odds and ends: Who ended up buying Langford’s Rolex for $8,500? Patrick Cooper, Birmingham lawyer and runner-up in the 2007 mayoral election.

With the prosecution on the verge of wrapping up, Langford and his team have still made no decision as to whether he’ll take the stand.

Quote of the day: “Getting ready to kick this thing off. No! It’s block by the Mount Cody of judge/jury conferences.” — Birmingham News columnist John Archibald

Homework:

• Squidoo: Who Is Larry Langford?
• “Larry Langford, as first week of trial ended, had his mind on smokes and domes” … Langford: “I’m sleeping like a baby.“

Also, what lessons have we learned from the trial so far? “Archibald: Can’t we agree on a few things?”

• Langford, under no circumstances, should be allowed to handle public money.

• Everyone who gave Langford clothes or money … you are as responsible for the fallout as he.

Next: Defense expected to begin Tuesday.

• • •

Complete coverage: The trial of Larry Langford from Wade on Birmingham.

Follow @LLtrial on Twitter for continuous media updates.

Subscribe to the RSS feed for daily coverage of Larry Langford’s trial from Wade on Birmingham.

Ongoing coverage of Birmingham mayor Larry Langford on trial in Tuscaloosa for bribery.

Highlights: Bill Blount concluded his testimony. He said Langford had great influence as Jefferson County Commission president as to which banks would be part of the bond deals.

Al LaPierre provided most of the day’s testimony. He explained that Langford came to him with money woes (past-due loan, large bills) in 2003 and 2004. LaPierre would in turn call Blount, who would pass money through LaPierre to Langford: $50,000, $69,000, $6,000. Blount also hired LaPierre to monitor the Jefferson County Commission for potential bank competitors in bond deals; LaPierre earned $201,000 total in 2003 and 2004 for his services.

LaPierre said Blount didn’t pay Langford directly because Blount knew it to be a violation of Securities and Exchange Commission rules. Under cross examination, LaPierre said he had no express agreement with Langford to trade cash for votes. He also admitted he never told Langford that Blount had provided the money. During redirect, LaPierre said he assumed Langford knew who the source was.

Following the start of the SEC inquiry, LaPierre said Blount had all three sign promissory notes to show the payments as loans, though almost none of the money was repaid. (One check from Langford in 2008 showed a payment to LaPierre of $5,000.) LaPierre said they were creating a false paper trail.

LaPierre also said he paid Langford’s $50,000 bill at Remon’s to avoid political embarrassment during Langford’s 2007 mayoral campaign and to keep Langford happy.

Quote of the day: Prosecution: “Were these loans?” LaPierre: “At that time, that was the story we were telling.”

Homework: See our full live Day 5 coverage below.

Next: The trial enters Week 2. Prosecution may finish on Monday.

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Bonus coverage

Live tweets from the media, including Wade on Birmingham. Although you can’t comment in the chat window, please feel free to leave comments in the regular section at the bottom of the post.

• • •

Complete coverage: The trial of Larry Langford from Wade on Birmingham.

Follow @LLtrial on Twitter for continuous media updates.

Subscribe to the RSS feed for daily coverage of Larry Langford’s trial from Wade on Birmingham.

Ongoing coverage of Birmingham mayor Larry Langford on trial in Tuscaloosa for bribery.

Highlights: Langford friend and associate Bill Blount took the stand, testifying to bribing him with $236,000 in cash and gifts. The Montgomery investment banker, who has known Langford for 30 years, said he used the bribes to steer $7 million worth of bond business to his firm via Langford’s position as Jefferson County Commission president.

When Langford was short on cash, Blount said he sent checks to middleman Al LaPierre. Blount said under cross examination that he and Langford never expressed any explicit arrangement.

More details emerged on the gifts, including a $1,093 sweater from a New York store and $50,000 in suits, shirts and ties at Remon’s downtown and a flight to an Atlanta baseball game, all paid for by Blount for Langford.

Quote of the day: Prosecutor George Martin: “Who did you bribe?” Blount: “Mayor Larry Langford.”

Homework: “Tweets from the jury box: jurors using Twitter jeopardize trials” from the Christian Science Monitor:

As reporters in Tuscaloosa, Ala., try out their new micro-blogging accounts this week to cover the high-profile trial of Birmingham mayor Larry Langford … defense attorney Michael Rasmussen says he’s worried about jurors also taking to the Internet to research the case or send tweets to their friends.

Next: Blount continues testimony, plus LaPierre takes the stand Friday. We’ll be there in the courtroom.

• • •

Complete coverage: The trial of Larry Langford from Wade on Birmingham.

Follow @LLtrial on Twitter for continuous media updates.

Subscribe to the RSS feed for daily coverage of Larry Langford’s trial from Wade on Birmingham.

Ongoing coverage of Birmingham mayor Larry Langford on trial in Tuscaloosa for bribery.

Highlights: City finance director Steve Sayler completed his testimony, saying the original estimate for Jefferson County’s sewer repairs was $1 billion. The former county finance director discussed the bond swaps, but said he wasn’t aware Blount Parrish was receiving hundreds of thousands in fees. Langford’s friend, Bill Blount, runs the firm. Sayler also said that Blount Parrish had no expertise at the time in bond swaps.

Other witnesses testified that Blount bought thousands of dollars of clothing and shoes for Langford and fellow county commissioner Mary Buckelew, who lied to a grand jury about those gifts. Among the items bought for Langford during trips to New York: five pairs of shoes (three women’s pairs, two men’s) for $1,684, a leather jacket for $2,000 and a watch for $12,000.

One juror was nodding off in the afternoon after fighting off sleep this morning.

Quote of the day: “Blount said he had a very good relationship with the mayor and had control of three votes on the commission.” — James Lister, banker at Lehman Bros. in 2003, when Blount called about Jefferson County bond swaps and his relationship with Langford.

Homework: “Next Birmingham City Council president could be mayor for a while,” by Birmingham News editorial writer Joey Kennedy

Who do you think is the best choice of those remaining who are likely to be picked to lead the council? The battle for president supposedly will be between Steven Hoyt and Roderick Royal.

Next: Blount takes the stand Thursday.

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Complete coverage: The trial of Larry Langford.

Subscribe to the RSS feed for daily coverage of Larry Langford’s trial from Wade on Birmingham.

Ongoing coverage of Birmingham mayor Larry Langford on trial in Tuscaloosa for bribery.

Opening statements: Federal prosecutor George Martin calls Langford a wheeling and dealing politician, one who took bribes, including a $12,000 Rolex watch. Defense attorney Michael Rasmussen countered with maybe a less? more? flattering description of Langford as a “shopaholic,” one taken in by Montgomery investment banker Bill Blount.

Highlights: Langford appointee and City of Birmingham finance director Steve Sayler testified that Langford understood bond swaps, the complex financial transactions that led Jefferson County into billions of dollars of sewer debt and virtual bankruptcy.

Remon’s owner Remon Danforah said that Langford was a regular customer, running up a tab as high as $14,000. Total bill? $54,400 in clothing. He also said that Langford’s first trip to the store included Blount and lobbyist Al LaPierre.

Quote of the day: “Everyone in the room seems to be wearing clothes by Remon. Except for us print guys, of course.” — Birmingham News columnist John Archibald

Homework: “High Stakes and Cheapstakes,” from Birmingham Weekly writer Kyle Whitmire:

Cupidity is a word that has all but vanished from our language. It is lust and materialism wrapped into one, and like the best poisons, it is lethal in small doses.

Next: Sayler resumes testimony Wednesday.

• • •

Complete coverage: The trial of Larry Langford.

Subscribe to the RSS feed for daily coverage of Larry Langford’s trial from Wade on Birmingham.

Ongoing coverage of Birmingham mayor Larry Langford on trial in Tuscaloosa for bribery.

Day 1 of the federal trial of Larry Langford has ended in Tuscaloosa, with a 12-member, 2-alternate jury seated and opening statements scheduled for Tuesday.

Birmingham’s mayor was arrested in December 2008 and charged with conspiracy, bribery, fraud, money laundering and filing false tax returns alongside Bill Blount and Al LaPierre. The two have since pleaded guilty and are expected to testify in the coming days.

To help tame the information beast of trial coverage, we’ve put together some tools to help you follow along in real time.

1. Widget: media updates

This widget can be embedded on your own site by clicking on “Get Widget” at the bottom.

2. Twitter list

Second, we’ve created a new-fangled Twitter list called LLTrial. You must be signed into Twitter to see and follow it.

3. Media Twitterers

Even if you don’t have an account, you can follow the media Twitterers individually:

• @BhamWeekly
• @CBS42
• @JohnArchibald (Birmingham News columnist)
• @Langford_trial (Birmingham News)
• @LangfordCourt (Fox 6)
• @LangfordTrial (NBC 13’s Jon Paepcke)

4. Widget: media updates

See the real-time tweets mentioning “Langford” within 200 miles of Birmingham.

Bonus: Here’s what the Facebook crowd says about Langford.

We’ll work on fine-tuning these tools and adding our own coverage in the coming days. Your feedback is welcome below.

• • •

Complete coverage: The trial of Larry Langford.

Subscribe to the RSS feed for daily coverage of Larry Langford’s trial from Wade on Birmingham.

In August, we’re celebrating Birmingham’s Biggest Crooks, whether they be liars, thieves, extortionists, swindlers or thugs. Running daily until Birmingham mayor Larry Langford’s Aug. 31 federal trial. Thanks to Bhamwiki for helping with this project.

Bill Blount

Positions held: Montgomery investment banker, handled Jefferson County’s bond swap deals

Wanted for: bribery and conspiracy, indicted with Al LaPierre and Langford

Date of conviction: today, admitting to bribing county commissioners Langford and Mary Buckelew.

Sentence: Sentencing date to be determined. Blount faces up to 10 years in prison for conspiracy and 5 years in prison for bribery (prosecutors wil ask for 52 months), plus up to $500,000 in fines. Plea agreement says he will forfeit $1 million. Blount is expected to testify in Langford’s trial.

Criminally fun fact: The government says Blount paid for several of Langford’s expensive purchases, including $11,750.40 at Bromberg’s Fine Jewelers and nearly $30,000 in 4 years at Remon’s Clothier.

According to the Press-Register (Mobile), Blount has had a tangled history of bond financing deals gone sour, from two 1995 deals for the City of Mobile that warranted investigation by the FBI and the IRS, and a state warehouse construction project from 2001 pushed by political pal and then Gov. Don Siegelman.

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Additional reading:

• Bhamwiki: William Blount
• Crime Watch
• Meet more of Birmingham’s Biggest Crooks | RSS feed

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In August, we’re celebrating Birmingham’s Biggest Crooks, whether they be liars, thieves, extortionists, swindlers or thugs. Running daily until Birmingham mayor Larry Langford’s Aug. 31 federal trial. Thanks to Bhamwiki for helping with this project.

Al LaPierre

Positions held: executive director of the Alabama Democratic Party; lobbyist for the City of Fairfield and Jefferson County Racing Association; consultant to Montgomery-based Blount Parrish and Company for Jefferson County bond swap deals.

Wanted for: conspiracy and filing a false tax return, indicted with Bill Blount and Langford

Date of conviction: July 30

Sentence: To be sentenced Nov. 19. Maximum is 8 years in prison, but prosecution is expected to recommend 4 years, as part of LaPierre’s plea agreement and testimony in Langford’s trial. He also forfeits $371,932 plus taxes owed from 2003 to 2006.

Criminally fun fact: LaPierre promoted VisionLand (now Alabama Adventure) to state legislators on Langford’s behalf in 1996. His political action committees were among the biggest contributors to Langford’s 2002 campaign for the Jefferson County commission.

• • •

Additional reading:

• Bhamwiki: SEC investigation into Jefferson County bond swaps
• Crime Watch
• Meet more of Birmingham’s Biggest Crooks | RSS feed

• • •

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The sideshow is over. The main act begins soon.

Once a city council member and a Jefferson County commissioner, John Katopodis (shown at left) formed a children’s charity, Computer Help for Kids, with then-HealthSouth CEO Richard Scrushy and then-Fairfield mayor and friend Larry Langford.

Scrushy, already sentenced to prison, lost a civil decision in June and owes $2.87 billion. With a ‘B.’

Langford, now Birmingham’s mayor, awaits federal criminal trial on Aug. 25 facing charges of conspiracy, bribery, fraud, money laundering and filing false tax returns alongside William Blount and Al LaPierre.

And Katopodis, for stealing money from the charity designed to bring computers to kids, was found guilty on all 97 counts of mail and wire fraud. The charity received money from the City of Birmingham and the Jefferson County Commission (during which time Langford served on the commission as member and as president).

But Langford is innocent until proven guilty.

Among the disbursements:

• Katopodis withdrew money in New Orleans casinos.
• He spent $250,000 on his friends.
• He bought a guitar and electric piano for Langford and arranged for a car to be sold to Langford.
• One check had the memo “TV Langford,” indicating a TV set purchased to give to Langford.

But Langford is innocent until proven guilty.

The issue surfaced in 2008 when HealthSouth filed a suit against Katopodis, which alleged charity money going to him, Langford and untrained computer technician/Playgirl centerfold/gay porn star Ryan Idol.

But Langford is innocent until proven guilty.

Katopodis is the fifth convicted former commissioner in the past three years, joining Mary Buckelew, Jeff Germany, Chris McNair and Gary White. He will be sentenced Oct. 28, facing up to 20 years per count and forfeiture of $162,910.

Langford is out on $50,000 bond. And he remains innocent until proven guilty.

Until proven guilty.

• Birmingham News: “John Katopodis guilty on all 97 counts in Birmingham federal court”
• Birmingham Business Journal: “Former JeffCo Commissioner Katopodis convicted of fraud”
• Birmingham Weekly: “Katopodis Found Guilty On All Counts”

As has been expected for some time, the FBI arrested Birmingham mayor Larry Langford this morning. He was taken into custody at his place of business, Birmingham Budweiser.

Also arrested are William Blount, an investment banker at Blount Parrish and Co. in Montgomery, and Langford’s friend Al LaPierre. The three face charges of conspiracy, bribery, fraud, money laundering and filing false tax returns.

U.S. Attorney Alice Martin detailed the federal government’s investigation into Langford’s side business deals while he served on the Jefferson County Commission.

During the news conference, Martin said between 2003 and 2006, Blount paid about $235,000 in clothing, jewelry and charge account bills.

Martin also said, Blount gave Langford an $11,000 Rolex watch.

Martin said it was all in return for steering Jefferson County bond business to Blount’s Montgomery firm, including the multi-billion dollar sewer bond business.

Martin said “He (Langford) sold his public office to friend.”

During the news conference Martin said Langford received bribes from Blount, through friend Al LaPierre, to buy clothes and jewelry from expensive New York boutiques and high end stores in Birmingham as well.

At 10 a.m. in Birmingham federal court, Langford, in leg shackles, pleaded not guilty. He and LaPierre are both out on $50,000 bond. Langford cannot travel outside the Northern District of Alabama without court approval.

Blount also pleaded not guilty and is out on $100,000 bond.

(more…)