An Atlanta-based law firm is conducting a criminal investigation into alleged wrongdoing involving Alabama Power and related entities, according to a report today at banbalch.com, which operates under the banner of the CDLU public charity and advocacy group. Writes K.B. Forbes, publisher of the Ban Balch blog and CEO of the CDLU:
As Southern Company ousted Alabama Power CEO Mark A. Crosswhite in late November, the utility hired King & Spalding to conduct a deep, internal criminal probe of the “massive corruption” surrounding the alleged misconduct by Alabama Power, Matrix, and embattled law firm Balch & Bingham, the CDLU has exclusively learned.
Paul B. Murphy, a former Chief of Staff at the FBI, leads the investigation while David L. Balser, who handles the “most sensitive, complex, and enterprise-threatening matters” at King & Spalding, is assisting.
To keep potential bias out of the investigation, Southern Company Chairman and CEO Tom Fanning is not involved with the independent investigation since he was a victim of the alleged misconduct.
A survey of associates conducted in early 2022 ranked King & Spalding the No. 1 law firm in Atlanta. A survey using 2019 data listed King & Spalding as the 27th largest law firm, by revenue, in the United States.
As for the investigation, Crosswhite and Joe Perkins, founder of the Matrix LLC political-consulting firm in Montgomery, AL, appear to be two central figures in the probe. Writes Forbes:
Like a Peeping Tom, Crosswhite allegedly authorized the surveillance of Fanning and his then-girlfriend, allegedly to obtain photographic evidence that Fanning was in a bisexual tryst.
The criminal investigation comes as Southern Company faces potential civil RICO lawsuits for the alleged criminal enterprise that targeted perceived enemies, and innocent parties who were enemies of friends or acquaintances of Alabama Power executives.
Allegedly authorized by Crosswhite, Alabama Power paid more than $2 million a year to Matrix, LLC, and its founder, “Sloppy Joe” Perkins, which allegedly engaged in nefarious conduct.
No invoicing was required, thereby increasing third-party risk and financial liability to Southern Company.
A lawsuit involving Perkins and former Matrix CEO Jeff Pitts has settled, but documents from the case were anonymously distributed to multiple news outlets, drawing back the curtains -- at least a little bit -- on the questionable methods Matrix sometimes uses to conduct business, reports Forbes:
Perkins was in a nasty lawsuit with his former protégé. “Jittery Jeff” Pitts, that exposed a web of alleged misconduct including the laundering of $50 million through 18 tax-exempt entities.
Internal documents, financial records, and contracts were delivered anonymously to media outlets, journalists, and us, the CDLU.
The utility also spent millions in fees to embattled law firm Balch & Bingham, which allegedly used its web of political connections and stooges in the judicial branch to assist and protect Alabama Power with slam-dunk decisions, orders, and verdicts.
Sources tell us that King & Spalding is heavily looking at the actions of disgraced ex-U.S. Attorney Jay E. Town, apparently for his role in the North Birmingham Superfund Bribery Scandal. Former U.S. District Judge Abdul Kallon oversaw the trial, but as reports mounted of dubious behavior tied to the case, Kallon gave up his lifetime (and prestigious) appointment and headed for Seattle. Such a move is almost unheard of, and stunned many in the Alabama legal community. Writes Forbes:
Beyond keeping Alabama Power “unmentionable” during the North Birmingham Bribery Trial, a half-baked deposition using an actor during the Newsome Conspiracy Case was allegedly orchestrated by Town and Alabama Power.The actor, it appears, impersonated Verizon employee Jason Forman.
Using an impostor as a stand-in at a deposition, a proceeding that is supposed to involve telling the truth -- under penalty of perjury? That is brazen stuff, and its just one of many oddities about the deposition. It suggests that if King & Spalding really wants to get to the bottom of this sleaze-fest, the firm has its work cut out. Writes Forbes:
King & Spalding is conducting the investigation to rid Southern Company of any and all accomplices, sources state.
Plausible deniability simply won’t work. Just ask Peeping Crosswhite, who denied involvement in August but was ousted three months later.
It appears 2023 will mark the deep cleaning of Southern Company’s septic tank, and sources tell us that heads will roll.
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