Showing posts with label Bob Riley. Show all posts
Showing posts with label Bob Riley. Show all posts

Friday, July 24, 2020

Tales of intrigue from Tommy Gallion: An intrepid attorney, with deep Southern roots, shines a bright light in the darkest corners of Alabama politics




Shadow Government, Southern Style: A Saga of Political Corruption From D.C. to Dixie (2020), by Thomas T. Gallion III; available from Amazon and Kindle eBooks

Tommy Gallion's Shadow Government  might be the most searing examination of Deep-South political corruption in the postmodern era. It is a work of considerable depth and breadth, deserving of its own review -- which we will endeavor to provide in an upcoming post. It also is "in the moment," filled with essentially breaking stories, largely unknown to the reading public here in the midst of election season, that would merit space in any major newspaper. Gallion set out to become an investigative journalist before settling into a long legal career, with a base in Montgomery, AL. Shadow Government shows that he has the searching eye and inquisitive mind of  a reporter.

Tommy Gallion
 Before delving into our review in a few weeks, we will produce a series of posts that examine some of the breaking news found in Shadow Government's pages. This is the first of those posts:

Doug Jones and Rob Riley visit Richard Scrushy's barn to check out "antique cars"

U.S. Sen. Doug Jones (D-AL) and Rob Riley (lawyer son of former GOP governor Bob Riley) might seem like an unlikely pairing. But here is how they resorted to subterfuge in an effort to gain information they could use against Richard Scrushy, former HealthSouth CEO and codefendant in the political prosecution of former Democratic governor Don Siegelman. From Shadow Government, Southern Style:

During the summer of 2018, I met with Scrushy to learn what had happened to him. . . . I asked Scrushy if they found any documents in his barn that they used against him. He said there were many documents in that barn, all of which were taken by [the law firm of Rob Campbell, Bob Riley's son-in-law] when Judge [Alwin] Horn issued his ruling against Scrushy. Since Scrushy isn't a lawyer, I explained to him that all Riley and Jones wanted to do do was look and see what was there so they would know what documents to take or subpoena. I explained to him that I considered Riley's and Jones's lying to him about why they wanted to go into his barn fraud in the indictment.

Scrushy explained to me how this all came about: "One day, Rob Riley and Doug Jones showed up at my home and said they wanted to look at my collection of cars I kept in our barn. So I showed them around, and they saw that I had numerous pallets of documents from the federal trial in which I had been found not guilty. I didn't suspect anything because I trusted Rob and took them to the barn and left them inside because I had to go to another appointment."

After I heard this, I explained to Scrushy that after I had retrieved the documents in my investigation, I thought I knew what had happened to him. It took me hours to reach the understanding that this was part of a scheme by these plaintiffs' lawyers to take Scrushy down and obtain control of all of his assets. After I revealed to Scrushy what I had uncovered, he realized that Riley and Jones were lying to him and this was just an unethical legal ploy to set him up for a lawsuit and take over everything he and his family owned. It was now apparent that they were there to look at his personal files, not his antique cars. I have checked and do not find that Riley nor Jones has any antique cars.

Apparently, though, they saw what they needed to see. Shortly after their barn visit, Doug Jones and Rob Riley, along with Campbell's firm and several other lawyers, sued Richard Scrushy and cost him everything he had. Since Scrushy was a big supporter of Rob Riley's father and even held a fundraiser for him, he naturally trusted Rob. He discovered, with my help, that Republican Rob Riley and Democrat Doug Jones were close and were both plaintiffs' lawyers. Scrushy brought me documents and told me the entire story as to what happened to him, and I was stunned as the whole picture of this fraud came together so clearly. Scrushy had been in prison several years when Riley, Jones, et al., filed the final lawsuit. The judge would not continue the trial and the judge knew that Scrushy could not get out of prison to defend himself. This was a non-jury trial, and it appears the fix was in: The judge ruled with the plaintiffs in this civil trial although Scrushy had been found not guilty by a jury in a previous criminal trial that contained the same facts. The judge stripped Scrushy of everything he owned. Three very significant factors merit being noted concerning Judge Horn's court in this case: There was no jury of Scrushy's peers, there were no live witnesses, and Scrushy was not allowed to attend the trial. Welcome to justice, Alabama style!

Friday, July 10, 2020

Doug Jones ignores criminal investigation at Austal USA as he decries Mobile firm's loss of U.S. Navy shipbuilding contract to competitor in Wisconsin


Austal USA shipyard in Mobile

U.S. Sen. Doug Jones (D-AL) recently voiced displeasure with the U.S. Navy's decision to award a shipbuilding contract to a Wisconsin company over a bid from an Alabama firm, Mobile-based Austal USA. At first glance, this seems to be a story of a politician who is disappointed at his failure to bring home the pork for one of his state's large employers. But at second glance, Jones appears to be hopelessly ill-informed -- or he simply is lying to his constituents. Perhaps of more concern -- especially to progressive voters of color, who largely put the senator in office -- Jones might be tossing bouquets at former GOP Gov. Bob Riley, one of the slimiest politicians in modern American history. That suggests, as we've noted before, that Jones is a classic DINO (Democrat In Name Only).

How did Jones react to news that Austal USA had come in second to Fincantieri, of Wisconsin? Consider this report from Alabama Political Reporter (APR), with the headline "Jones disappointed that Austal lost frigate contract to Fincantieri":

Austal USA’s bid for the U.S. Navy’s $795 million contract to build the next-generation guided missile Frigate was rejected in favor of a design offered by Fincantieri Marinette Marine, a Wisconsin-based shipbuilder. U.S. Senator Doug Jones, D-Alabama, did not hide his disappointment with the Navy’s decision. Austal builds the Independence class littoral combat ship (LCS), expeditionary fast transports, and other navy vessels in Mobile.

“I am disappointed that the Navy chose not to award the contract for the next-generation guided-missile frigate to Austal USA,” Jones said. “Austal is the only U.S. shipbuilder providing ships to the Navy on time and on budget right now. It is my understanding that this award is for the first ten of a potential 20-ship buy, and I am confident that if Austal chooses to compete for future awards, the Navy will find Austal to be the best choice.

“Just last December, Austal USA celebrated 20 years of shipbuilding in Mobile,” Jones said. “Austal’s extraordinary success is testament to its unmatched local workforce and its ability to build highly capable, cost-effective ships safely and on schedule. I especially appreciate Austal’s commitment to the health and safety of its employees and the community, as well as to our national security, through the workforce protection measures it has implemented and its economic support donations in response to the COVID-19 pandemic. Our shipbuilders are critical to our national defense, and I am grateful for their dedication during this difficult time.”

Fincantieri will build an adapted variant of the Italian FREMM (European multi-purpose frigate) in Wisconsin at its Marinette shipyard. The contract also includes plans for up to nine more ships from the firm — a deal that’s ultimately worth more than $5.5 billion.

Are Jones' sad-sack utterances telling the full story? Not exactly. For that, you need to turn to a January 2019 Legal Schnauzer post titled "Former Alabama Gov. Bob Riley is a lobbyist for Austal USA, the Mobile ship builder that is under federal investigation and has international financial woes, too":

Former Alabama Gov. Bob Riley is the chief lobbyist for a Mobile ship-building company that federal investigators raided last week. Austal USA, with its international headquarters in Henderson, Western Australia, long has been a pet project for Riley -- both while he was governor and since he left office.

Austal USA is one of Mobile's largest employers, with a workforce of about 4,000. It builds Littoral Combat Ships and Expeditionary Fast Transports for the U.S. Navy, and al.com reports it is competing in a selection process for a series of next-generation frigates.

The nature of the investigation remains unclear, but it appears to have grown from a financial probe in Australia. From a report at maritime-executive.com:

Australian ferry and defense shipbuilder Austal is cooperating with an Australian probe into market disclosures it made in 2015 regarding cost overruns on LCS-6, the Littoral Combat Ship USS Jackson. Austal builds one of the U.S. Navy's two LCS variants, the aluminum-hulled Independence-class ships.

In a filing released through the Australian Stock Exchange on Thursday, Austal confirmed that it is "assisting an investigation by ASIC (the Australian Securities and Investments Commission) into market announcements . . . with respect to earnings from its Littoral Combat Ship program." Its American division, Austal USA, confirmed Friday that it is also cooperating with the U.S. Navy in an unspecified investigation. Local media reported that officials from the Department of Defense, the NCIS and the Defense Criminal Investigative Service were spotted at the Austal USA yard in Mobile, Alabama.

So, Austal USA and its parent company have problems with cost overruns, apparent financial chicanery, and a Defense Department criminal investigation, but Doug Jones claims the company should have been awarded the Frigate contract?

As for Bob Riley, here is how we put it in our earlier post. For the record, Doug Jones is legal buddies with former First Son and oily operative Rob Riley:

Could this develop into a full-blown scandal, with Bob Riley at the center of it? It's too early to tell, but Riley (often in conjunction with one or both of his oily children -- Rob Riley and Minda Riley Campbell) has been tied to corruption for years. So far, the Rileys have managed to mostly dodge accountability. But if they are found to be involved in an international financial scam, involving misuse of U.S. defense funds . . . that tune could change.

Either way, Alabamians should be keeping a close eye on this story. Riley and his successor as governor, Robert Bentley, dumped millions of taxpayer dollars into Austal USA. Right now, it looks like that could have been a bad bet -- with everyday Alabamians being left holding the bag.

Tuesday, May 28, 2019

U.S. probe of TN developer Franklin Haney and his nuclear money pit could unmask Trump swindlers and the Alabama swamp creatures who help them flourish


Bellefonte Nuclear Power Plant

Federal investigators in New York are scrutinizing a Tennessee developer's $1-million donation to the Trump inaugural committee, and the probe ultimately could shine light on the toxic, greed-fueled political environment that has enshrouded Alabama for at least a quarter of a century, according to a report from Associated Press.

Franklin Haney, of Chattanooga, apparently made the donation in hopes of gaining support from the Trump administration for his plan to resurrect the Bellefonte Nuclear Power Plant in northeast Alabama. Haney's plan, at least initially, is to sell energy to one customer -- Memphis Light Gas and Water Division (MLGW).

Haney has a history of dumping cash on Alabama governors, including Robert Bentley and Bob Riley. In fact, sources tell Legal Schnauzer that several crooked Alabama political figures are hoping to benefit from a Bellefonte deal.

To add several extra layers of sleaze to the project, it has ties to . . . of course, Russia. So far, Haney has little to show for his Trump gift other than the attention of U.S. prosecutors. From the AP report:

Real estate mogul Franklin Haney contributed $1 million to President Donald Trump’s inaugural committee and all he’s got to show for the money is the glare of a federal investigation.

The contribution from Haney, a prolific political donor, came as he was seeking regulatory approval and financial support from the government for his long-shot bid to acquire the mothballed Bellefonte Nuclear Power Plant in northeastern Alabama. More than two years later, he still hasn't closed the deal. . . .

Haney’s hefty donation to Trump’s inaugural committee is being scrutinized by federal prosecutors in New York who are investigating the committee’s finances. Their probe is focused in part on whether donors received benefits after making contributions.

Former Trump lawyer and fixer Michael Cohen could play a major role in turning over dirt to the feds. Reports AP:
Trump's former personal attorney, Michael Cohen, has given prosecutors information regarding Haney, his son and business associate, Frank Haney Jr., and the nuclear plant project, according to a person familiar with what Cohen told the authorities. The person was not authorized to speak publicly and requested anonymity.

Haney had briefly hired Cohen to help obtain money for the Bellefonte project from potential investors, including the Middle Eastern country of Qatar. Cohen is now serving a three-year prison sentence for tax evasion, lying to Congress and campaign finance violations.

Prosecutors also are examining whether foreigners unlawfully contributed to the committee. Federal prosecutors in Manhattan issued a subpoena last year seeking a wide range of financial records from the committee, including any "communications regarding or relating to the possibility of donations by foreign nationals."

Where might those international money trails lead? One destination, as we reported last September, is Russia. In fact, our sources say Gov. Kay Ivey likely is playing fast and loose with Alabama taxpayer dollars in an effort to help promote a Bellefonte deal. Could that lead federal investigators to cast an eye toward Montgomery, Alabama? From our September 2018 report:

Alabama Gov. Kay Ivey is providing a taxpayer-funded defense for former Gov. Robert Bentley in the Spencer Collier lawsuit probably because she is trying to pave the way for a plan to resurrect the dormant Bellefonte nuclear plant in northeast Alabama, says a state political insider. Like much of Alabama's corruption, the shady deal appears to involve Russian interests, from a country notorious for its rampant organized crime.

Bill Britt, editor of Alabama Political Reporter (APR), reported earlier this week that Bentley's high-priced lawyers from Maynard Cooper and Gale of Birmingham are playing hardball on discovery, stonewalling on producing the names of donors to the ACEGOV nonprofit, which has become known as Bentley's "Girlfriend Fund" because it was used to pay his mistress and senior adviser Rebekah Caldwell Mason.

Why the determination to stiff the Collier legal team on discovery? Jill Simpson -- opposition researcher, whistle blower, and retired attorney -- says it likely is because Chattanooga real-estate mogul Franklin Haney was a prominent donor to ACEGOV. And he is the money man behind the Bellefonte project.

So, Bentley has been out of office for more than two years, but the swamp he left behind still is dragging Alabama down. Bob Riley, who could be called Alabama's "Creature from the Black Lagoon," had sticky fingers when it comes to Haney cash, and Riley's swampy ways continue to infest Alabama:

Why is the Ivey administration so doggedly defending Bentley instead of putting the matter to rest? Simpson says it's likely because Ivey supports the Bellefonte project on behalf of what Simpson calls the "Alabama Gang" of corrupt right-wing politicos -- including such luminaries as "Luv Guv" Bentley, former U.S. Sen. Jeff Sessions, former Gov. Bob Riley, and former Business Council of Alabama (BCA) president Bill Canary.

As for the Bellefonte project's ties to Russia, that's not just a guess; it's a matter of public record. From our September 2018 report:

Haney has reached an agreement with SNC-Lavalin, a Canadian engineering firm, to finish at least one of two reactors at Bellefonte -- with the assistance of federal loan guarantees.

SNC-Lavalin has a history of working on various projects with Russian interests, via the VEB Bank, which has close ties to Vladimir Putin. reputed mobster Oleg Deripaska, and former Trump campaign chair Paul Manafort (who has been found guilty of financial crimes.)

See what we mean about the "Russification of Alabama"?

Could the Haney probe send shock waves through Alabama government? Well, his pet nuclear project is in our state. And he has a history of greasing the palms of Alabama governors, as we reported in May 2016:

The Haney Cash Caravan started with Bob Riley, who after receiving lots of Tennessee dough, suddenly started pushing for a deal regarding the old Social Security Building in Birmingham--a deal that proved awfully sweet for Mr. Haney (not to be confused with the lovable greaseball character from Green Acres). . . . 

Haney, according to the Alabama Secretary of State's office, passed at least $130,000 to Riley through PACs run by noted PACman Clark Richardson, much like he did last year with the Birmingham City Council. . . .

Riley, later, would become a big advocate for Haney and the Birmingham building.

One of his last acts as governor was to sign a lease that would consolidate Jefferson County's Department of Human Resources and move that agency into 290,000 square feet of Haney's building. Annual rent on that building began at $1.2 million a year, according to the lease, but rises this year to $5 million for the remainder of the term, plus possible extra costs for operational expenses.

That's higher than any of the 63 state tenants in any of David Bronner's newer and shinier RSA buildings, according to state records. It appears to be the highest rental rate for any state agency.

Riley not only signed the lease as he left office, he lobbied for Haney in Birmingham.

What about Bentley's ties to the Haney Gravy Train? Well, it looks like Mr. Haney, from Tennessee, might have helped pay for the "Luv Guv's" mistress, Rebekah Caldwell Mason:

Franklin Haney
Haney has resurfaced under the Bentley regime. This time, Haney dumped cash on Bentley--possibly even helping support a slush fund to pay Bentley's mistress, Rebekah Caldwell Mason--and wound up getting support for a project involving a partially built nuclear reactor in northeast Alabama. Haney also got more support for his office building.

Just the traceable donations from Haney's businesses to Bentley's last campaigns total about $300,000, much of which moved into Bentley's campaign account after the last election was over. . . . That campaign account subsequently paid the salary of Rebekah Caldwell Mason, the governor's senior political advisor with whom he is accused of having an affair.


Could this possibly get any sleazier? Perhaps U.S. prosecutors from New York will help answer that question -- and maybe "Cowgirl Kay Ivey" and a few of her predecessors as Alabama governor could wind up in a tight spot. And it could come from a project that, experts say, has limited value for producing modern-day energy. From the AP report:

Stephen Smith, executive director of the nonprofit Southern Alliance for Clean Energy, said Haney faces too many technical and financial hurdles to overcome.

For example, Bellefonte’s never-completed nuclear reactors are decades old and are of a unique design that has never received an operating license in the U.S. before. He compared Bellefonte to a Ford Pinto, a 1970s-era vehicle with serious engineering flaws. Smith said it’s “extraordinarily unlikely” Bellefonte will be allowed to operate.

Maybe the "stable genius" in the White House can help sort all of this out.

Tuesday, April 2, 2019

Activist Matt Osborne seems to flip his wig upon learning that the Dry Alabama false-flag scheme likely violated law that prohibits efforts to defraud the U.S.


Matt Osborne
The "brains" behind the Dry Alabama false-flag operation, which might have gift-wrapped a U.S. Senate seat for Doug Jones (D-AL), seemingly blew a gasket upon reading our recent report that showed his actions likely had violated federal law.

Matt Osborne, of Florence, Alabama, has claimed since The New York Times exposed his underhanded tactics in early January, that he and his associates were acting within the law. In fact, Osborne claimed no law governed the deceptive use of social media to interfere with a federal election -- such as a U.S. Senate race.

Our recent report showed that a specific law -- 18 U.S.C. 371 ("Conspiracy to Defraud the United States") -- governs such interference, and Osborne likely violated it. In fact, it's the same law Special Counsel Robert Mueller used last July to indict 11 Russian nationals in the Trump-Russia investigation.

Osborne responded to our report, via a series of blog comments and Twitter messages, with a combination of vitriol, ignorance, nonsense, insolence . . . and, well, you get the idea. Osborne, who uses the handle "Stephen Miller's Fright Wig" on Twitter, appeared unable to counter the actual law we had cited -- the law he apparently failed to uncover before diving into the Dry Alabama swamp.

Does that mean Osborne will be prosecuted? Of course not, as we noted in our recent post. Given the disheveled state of our justice system, I'm not sure the feds could stage a solid trespass case -- never mind a case of possible election fraud. But Osborne has admitted engaging in acts that appear to violate Sec. 371, and that seems to go to criminal intent, so mounting a defense if charges are filed could be a challenge.

Meanwhile Doug Jones claims ignorance of the Dry Alabama scheme and has called for a federal investigation. But it strains believability to think Jones was so out to lunch that he was unaware of a scheme designed to help him beat favored Republican Roy Moore for Jeff Sessions' old Senate seat. Could Jones wind up selling Osborne and Co. down the proverbial river in order to protect his own exalted political status? Former Alabama governor Don Siegelman can tell you about Jones' penchant for backstabbing, so Osborne might want to be getting his life raft ready.

Something certainly seems to have Osborne in a state of agitation. Consider this comment he left at our March 20 post about apparent violations of Sec. 371:

Matt Osborne said... 
Is there a law against Facebook pages? No. Is there a law against Facebook pages presenting a point of view that you don't really agree with? Again, no. The reason I am going to "escape" charges is that there are no laws against what we did. None. Zero. Zilch. Strictly speaking, it wasn't even a violation of Facebook policy.

And that was kinda the point of doing Dry Alabama. "Look, see what I can get away with? Does this bother you? Maybe enough to pass a law against it? Good, let's have that conversation."

Of course, it's unlikely that Dry Alabama put Doug Jones over the top. The fact that his signs were EVERYWHERE, the massive enthusiasm for his candidacy, is how he won. He and his team worked their butts off to win every last vote they could, and it worked. I live on a street where every yard had a Doug Jones sign in 2017 but then local Republican candidates' signs in 2018. Jones was the most popular Democrat I've seen since I was a kid watching George Wallace win his final term.

Of course, the irony here is that of the two of us, Roger, you are the one who has been to jail for publishing falsehoods. That's what you get for printing the ravings of Bob Riley's aggrieved ex-girlfriend as headlines, I suppose.

March 20, 2019 at 4:25 PM

Notice in the first paragraph that Osborne sets himself up as an expert on federal law; that quickly washes away. Notice in the final paragraph that he takes a dig at me -- and someone he claims to be the "aggrieved ex-girlfriend" of former governor Bob Riley. Here is my response:

legalschnauzer said...

Matt:

Good thing you didn't go into the law because meaningless mental exercises like the one on display here would not get you far. A few points:

(1) Who was your "legal counsel" on this matter? Whoever it was, I would urge you to fire him.

(2) There is a law, as cited in my post, and Robert Mueller has used it to indict multiple Russian nationals for "defrauding the United States" by tampering with a federal election. You violated that law by tampering with a federal election -- the U.S. Senate race in Alabama. Under federal law, statutes often are written broadly, and you must check the case law to know what you are dealing with and how the law has been applied. You should have done that before engaging in a con game like Dry Alabama and then admitting what you had done. Your ignorance of federal law could bite you on the ass, big time.

(3) You don't know whether Dry Alabama put Jones over the top, and it doesn't matter anyway. A law does exist -- even though you are trying to wish it away -- and you broke it. Does that mean you will be prosecuted? Nope. Our justice system might be too broken to do its job. And Doug Jones might successfully cover things up. But you violated the law.

(4) What "falsehoods" have I published? Can you explain how anything I've published has, as a matter of law, been found false? Or are you just taking Liberty Duke's word on that. (Rob Riley, BTW, never has claimed under oath that my reporting was false. His lack of a denial, under oath, suggests even he knows my reporting was accurate.)

(5) So you and your friend, Melissa [Brewer], came to our house because you believed I had published falsehoods? Was your presence there a con job, as I now have come to suspect? Taking advantage of a woman (my wife, Carol) whose husband has just been kidnapped inside their home? Real classy, Matt. Shows how you respect women -- not to mention your disdain for rule of law.

(6) Who is "Bob Riley's girlfriend," of whom you speak? She made me print falsehoods? How? (On the subject of girlfriends, does Doug Jones have one, not his wife? I'm hearing he does. I even have a name and address and workplace. Check it out.)

(7) Congrats on drinking the Doug Jones Kool-Aid to the max. He has a history as a backstabber (ask Don Siegelman), and he will sell you and your Netroots friends down the river at the first opportunity.

March 20, 2019 at 8:31 PM

I challenge Osborne to cite any "falsehoods" I have published, and not surprisingly, he comes up empty. I've reported several times that Osborne and a woman named Melissa Brewer came to our home to visit my wife, Carol, a few days after Shelby County deputies had kidnapped me from inside our house and taken me to jail for a five-month stay. Osborne never has indicated my reporting on that issue was off target, but now he claims the woman was someone other than Melissa Brewer -- whose online profile indicates she is a "copywriter, content curator, and social media strategist" in Washington, D.C.. In fact, the subject of Melissa Brewer seems to be quite sensitive for Osborne. Hmmm . . .

Doug Jones
To show that two can play the "dig" game, I ask Osborne to respond to tips I've been receiving that Doug Jones has a "zipper problem" that could become public in the near future. (In fact, I'm working on the story right now.) Osborne apparently did not want to go there, but he did return fire:


Matt Osborne said...

If Dry Alabama is "interference" in a federal election, then why isn't Brad Parscale [digital media director for Donald Trump's 2016 presidential campaign] in prison right now? If It was "cheating," then lots of political operators belong in prison, too.

According to the USSC, I have a First Amendment RIGHT to lie, "cheat," and spend dark money on political campaigns.

Roger, her name wasn't Melissa. This is how good you are with facts. We came to visit Carol because we genuinely wanted to be sure she was okay and had some groceries. I wanted to bring attention to the unacceptable beating and arrest of an indie journalist, as I was one at the time. Since then, I have learned that other, better, less-insane journalists have disproven much of your reporting. It's also become clear to me that you are completely bonkers. I suspect that if I went through the IP addresses on these comments, I would find they are mostly coming from inside your house.

March 21, 2019 at 10:40 AM

Osborne has a "right" to cheat on federal elections? I suspect Robert Mueller would beg to differ. Other "less-insane journalists" have disproved much of my reporting? Surely Osborne wants to share their names and links to their work. Well . . . maybe not.

legalschnauzer said... 
Matt:

Your ignorance of federal law is blinding, and it could land you in deep doo-doo. A few thoughts:

(1) Whatever Brad Parscale may or may not have done has nothing to do with your situation. Sure, other political operators might belong in prison. But you interfered with a federal election and were stupid enough to admit it. Our system is flawed, and yes, some people get away with unlawful acts and some don't. You might get away with it, and you might not. But you clearly interfered with a federal election, "defrauding the United States," just as Mueller has alleged against Russian nationals. You can't refute that, so you try to change the subject. There is a law against what you did, and if Doug Jones put you up to it, he violated the law, too.

(2) Is the "USSC" the U.S. Supreme Court? What case are you referring to? Does it involve tampering with an election, because that's what you've admitted you did? Again, you are trying to change the subject, to dark money, First Amendment, etc. Your situation isn't about that. It's about tampering with a federal election, which you have admitted to doing. And you call ME insane? Now, that IS "hilarious."

(3) Carol told me she thought the woman's name was Melissa, and Carol usually has a pretty good memory on such things. If that's not correct, what is the woman's name? As you recall, I wasn't around for introductions.

(4) So, you thought my arrest and beating were unacceptable, but now you are OK with it? Is that the effect Doug Jones and Rob Riley have had on you? Or maybe you entered our home under false pretenses all along?

(5) Who are these journalists who have disproven my reporting? Can you provide their names and links to their articles that disprove my reporting? My reporting never has been disproven in court, as a matter of law, so how did these journalists manage to do it? I can't wait to find out your details on that. Also, can't wait for info on "Bob Riley's girlfriend." You mean he had a girlfriend, kind of like Rob's version of Liberty Duke?

March 21, 2019 at 11:28 AM

Osborne seems to engage in classic avoidance behavior. I ask him to cite these court cases that give him a "right" to cheat on a federal election; he has no answer. If Melissa Brewer did not come to our home, I ask him to state the name of the woman who did; again, no answer. I ask him to cite names of journalists who have disproven my reporting, with links to their articles; we get crickets from Matt O.

We will have more from our zany back-and-forth with Matt Osborne, who claims to be a political lefty. For now, I can only note how much he sounds like some of the right-wing loons we've encountered over the years -- especially the noxious Aaron Worthing (also known as Aaron Walker) and Robert Stacy McCain.


(To be continued)

Thursday, January 31, 2019

Alabama governors have a history of throwing taxpayer dollars at Australian ship-building company that now is under federal and international investigations


Bob Riley
Alabama governors have poured more than $30 million of taxpayer funds into a Mobile ship-building company that is under federal and international investigations for possible financial wrongdoing.

The gravy train for Austal USA began in 2008 when Bob Riley gave $5 million in economic-development grants to the company. Riley repeated that gift in 2009, with Robert Bentley kicking in $5 million in 2012 and $10,255,470 in 2013. According to an Alabama Political Reporter (APR) post dated June 9, 2014, Bentley added another $4 million in the first quarter of that year.

From the APR story, titled "The High Cost of Public Corruption":

The lucrative nature of these taxpayer fund so-called “job creation projects,” has even lured former Gov. Bob Riley to become one of the State’s most visible lobbyist. Just seven months after leaving office in 2011, Riley launched Bob Riley and Associates and registered as a lobbyist, along with his daughter, Minda.

Riley has been involved with the hundred million dollar Airbus deal in Mobile as a registered lobbyist for EADS North America.

Riley is also a lobbyist for Austal USA, LLC, a company that, as governor, he gave $5 million in economic development grants, in 2008, and $5 million again in 2009.

The payments stopped in 2010 (an election year) and did not resume in 2011,(budgeted during election year session). The payments to Austal began again under Gov. Bentley’s administration with the state giving $5 million in 2012 and $10,255,470.9 in 2013. So, far in 2014, Austal has received almost 4 million in grants and benefits.

We do not have figures for the past four years, so it's likely the total figure going to Austal USA is way more than $30 million.

The Austal investigation began last week at its international headquarters in Henderson, Western Australia. The next day came press reports that officials with the Department of Defense, the NCIS and the Defense Criminal Investigative Service were spotted at the Austal USA yard in Mobile.

What could the Austal USA investigation mean for Alabama? The APR article from 2014, perhaps unknowingly, looked into the future and provided some possible insight. Warning: It's not a pretty picture:

A recent study in Public Administration Review shows the negative impact of public corruption on a state’s economic future. Alabama is listed in the top ten most corrupt states in America.

In a report entitled, “The Impact of Public Officials: Corruption on the Size and Allocation of U.S. State Spending,” authors Cheol Liu of the City University of Hong Kong and John L. Mikesell of Indiana University, Bloomington define public corruption as “misuse of public office for private gain.” In their work, they find that public and private corruption results in “lower-quality work, reduced economic productivity and higher levels of income inequality and poverty.”

This investigation also found that states with the highest levels of corruption tend to spend more taxpayer funds on construction, highways, and police protection programs. This, in turn, facilitates corrupt officials to use public money for personal gain and less money on education, healthcare and welfare.

A February article in USA Today cites a Gallup-Healthways survey, in which participants were asked a “large range of questions to determine the well-being” of a state’s citizen. In the poll, Alabama ranked fourth lowest, only ahead of West Virginia, Kentucky and Mississippi.

Wednesday, January 30, 2019

Former Alabama Gov. Bob Riley is a lobbyist for Austal USA, the Mobile ship builder that is under federal investigation and has international financial woes, too


Austal USA in Mobile, AL

Former Alabama Gov. Bob Riley is the chief lobbyist for a Mobile ship-building company that federal investigators raided last week. Austal USA, with its international headquarters in Henderson, Western Australia long has been a pet project for Riley -- both while he was governor and since he left office.

Austal USA is one of Mobile's largest employers, with a workforce of about 4,000. It builds Littoral Combat Ships and Expeditionary Fast Transports for the U.S. Navy, and al.com reports it is competing in a selection process for a series of next-generation frigates.

The nature of the investigation remains unclear, but it appears to have grown from a financial probe in Australia. From a report at maritime-executive.com:

Australian ferry and defense shipbuilder Austal is cooperating with an Australian probe into market disclosures it made in 2015 regarding cost overruns on LCS-6, the Littoral Combat Ship USS Jackson. Austal builds one of the U.S. Navy's two LCS variants, the aluminum-hulled Independence-class ships.

In a filing released through the Australian Stock Exchange on Thursday, Austal confirmed that it is "assisting an investigation by ASIC (the Australian Securities and Investments Commission) into market announcements . . . with respect to earnings from its Littoral Combat Ship program." Its American division, Austal USA, confirmed Friday that it is also cooperating with the U.S. Navy in an unspecified investigation. Local media reported that officials from the Department of Defense, the NCIS and the Defense Criminal Investigative Service were spotted at the Austal USA yard in Mobile, Alabama.

A report at usni.org provides additional details about the possible focus of the investigation and the U.S. agencies involved:

Federal agents visited Littoral Combat Ship manufacturer Austal USA in its Mobile, Ala., shipyard as part of an unspecified investigation involving the U.S. Navy, according to local media.

“Department of Defense, NCIS and [the Defense Criminal Investigative Service] have been seen on site,” according to NBC 15 in Mobile, Ala. “Investigators are expected to be on site for several hours.”

In a brief Thursday statement, Austal said the company was cooperating with authorities but gave no additional details as to the nature of the inquiry.

“Austal USA is working with the U.S. Navy on an open investigation,” reads the statement. “We are unable to provide additional details due to the nature of the investigation. We are continuing business as usual, executing our existing and recently awarded contracts.”

Here is more from usni.org about Austal's operations in south Alabama and the company's unstable financial picture:

The Mobile shipyard employs 4,000 workers and builds the Spearhead-class Expeditionary Fast Transport and Independence-class Littoral Combat Ship for the Navy. Austal USA is the American branch of Australian aluminum shipbuilder Austal. Earlier Thursday, Australian media reported Austal was under investigation by the Australian Securities and Investments Commission over market updates related to losses around the Independence-class LCS.

The Australian authorities are said to be focusing on statements issued by Austal regarding the blow out, or sudden increase in costs, associated with finishing USS Jackson (LCS-6)

Bob Riley
 On December 10, 2015, Austal announced it was experiencing “schedule and margin pressure on Littoral Combat Ship (LCS) 6.”

Jackson was a challenging ship in two respects. First, it was the first ship Austal USA had built as the prime contractor, whereas USS Independence (LCS-2) and USS Coronado (LCS-4) were built at the Austal yard with General Dynamics serving as the prime contractor on the project. Second, Jackson was the first LCS to be built under a block buy contract from the Navy. Austal implemented a new manufacturing process for the block buy ships meant to reduce cost and schedule down the line through serial production, but Jackson being the first serial production ship still meant there were lessons to be learned and procedural kinks to be worked out.

Austal's finances have been shaky since 2015-16, according to usni.org:

Austal officials conceded in the Dec. 2015 statement that their ability to boost LCS earnings through these new production processes did not live up to expectations. Savings on the LCS-8 and LCS-10 production were also more limited than anticipated, Austal officials said in the Dec. 2015 statement.

“Austal’s ability to apply lessons learnt and productivity enhancements from LCS 6 to vessels in advanced construction, namely LCS 8 and LCS 10, has been more limited than anticipated,” the statement said.

“The LCS program is maturing more slowly than we had expected, however we are working hard to manage the risks and expect an improvement across the program after delivery of LCS 10,” Andrew Bellamy, who then served as Austal’s chief executive, said in the December 2015 release. “Austal has a strong balance sheet and is generating good cash flow, which is enabling further investment in the business during the 2016 financial year to best position the Company to win additional contracts and service work to build our order book, revenue, and earnings into the future.”

However, according to Austal’s Fiscal Year 2016 annual report, the company reported a loss of A$84.2 million, compared to a profit of A$53.2 million in 2015.

Could this develop into a full-blown scandal, with Bob Riley at the center of it? It's too early to tell, but Riley (often in conjunction with one or both of his oily children -- Rob Riley and Minda Riley Campbell) has been tied to corruption for years. So far, the Rileys have managed to mostly dodge accountability. But if they are found to be involved in an international financial scam, involving misuse of U.S. defense funds . . . that tune could change.

Either way, Alabamians should be keeping a close eye on this story. Riley and his successor as governor, Robert Bentley, dumped millions of taxpayer dollars into Austal USA. Right now, it looks like that could have been a bad bet -- with everyday Alabamians being left holding the bag.


(To be continued)

Thursday, December 20, 2018

Alabama Ethics Commission, led by Republican racist Frank "Butch" Ellis of Shelby County, gives AG Steve Marshall a free pass on unlawful campaign donation


Steve Marshall and "Luv Guv" Robert Bentley
The Alabama Ethics Commission yesterday voted to give Attorney General Steve Marshall a free pass for accepting more than $700,000 in unlawful campaign contributions from the Republican Attorneys General Association (RAGA). In what should be a surprise to no one, the vote largely was engineered by Frank C. "Butch" Ellis, a commissioner from Shelby County, which widely is considered the most Republican, crooked, and racist county in Alabama.

From a report at al.com:

The Alabama Ethics Commission voted 3-2 today that there was insufficient evidence that Attorney General Steve Marshall violated the state campaign finance law.

Former Attorney General Troy King had filed the complaint and was at today’s meeting but left before the vote was taken.

King had alleged that Marshall’s campaign contributions from the Republican Attorneys General Association violated the state campaign finance law. Marshall has said the contributions were legal. King filed the complaint in July, while he and Marshall were engaged in a runoff campaign for the Republican nomination for attorney general. Marshall won the runoff and went on to win the general election over Joe Siegelman.

USA Today brought national attention to the RAGA donation in an article published on Nov. 5, the day before the midterm elections. How outrageous is the Alabama Ethics Commission's conduct in the Marshall matter. As we showed in a Dec. 5 post, it did not just start getting nutty with yesterday's vote:

Marshall, appointed AG in February 2017 before scandal-plagued governor Robert Bentley left office, defeated Democrat Joseph Siegelman in the November midterms despite national reports that he had accepted $735,000 from the Republican Attorneys General Association (RAGA), which officials from both parties said violated Alabama law.

The Alabama Ethics Commission failed to resolve the issue before the Nov. 6 election, so complaints are pending, both with the ethics commission and the Montgomery County district attorney's office. Before the election, Siegelman noted that Marshall could be forced from office if the ethics commission applied state law properly.

Was there serious doubt the donation violated Alabama ethics law? Consider these words from Bill Britt, publisher of Alabama Political Reporter (APR), written on Oct. 11 about Marshall's cozy relationship with 3M, a major polluter in Alabama:

RAGA is not registered with the state and commingles its funds with other political action committees, masking the donors contrary to Alabama law. Ethics Commission Executive Director Tom Albritton knows Marshall’s contributions were unlawful, so does Secretary of State John Merrill, but no one is willing to act. Even Marshall himself is on the record saying the type of contributions he received from RAGA are illegal and banning such contributions was, “the only legal protection standing between Alabama voters and the reality or appearance of quid pro quo corruption.”

Troy King
 Perhaps the larger question for the Commission and the Alabama Republican Party is should a candidate who willingly takes illegal campaign contributions be allowed to remain on the ballot? . . .

The right remedy in the Marshall situation lies with the Alabama Republican Party, which is responsible for pursuing such violations and taking appropriate action, but the so-called party of law and order has taken a pass on the Marshall fiasco, choosing to remain silent.

So, even Republicans know the RAGA donations are unlawful, but Marshall is a favorite of the Mike Hubbard-Robert Bentley-Bob Riley wing of the party -- as evidenced by his recent firing of special-prosecutions chief Matt Hart. Does anyone expect that crowd to take ethics violations seriously?

APR reported yesterday that Troy King received notice of the hearing less than 24 hours in advance, and he was the primary complainant. That was a sign the fix was in.

Butch Ellis proved to be the fixer, a role with which he is quite familiar from his years of turning Shelby County into a racist, ethical sewer. How racist? Butch Ellis played a central role in a U.S. Supreme Court decision that overturned a key provision of the Voting Rights Act. Butch Ellis' father, Handy Ellis, joined with notorious Birmingham Safety Commissioner Bull Connor to lead a walkout of Alabama delegates at the 1948 Democratic Convention. The issue of contention? Civil rights, primarily for black Americans:

Butch Ellis’s father was Handy Ellis, a former lieutenant governor and the chairman of the Alabama delegation at the 1948 Democratic National Convention in Philadelphia.

With Birmingham Commissioner of Safety Bull Connor, Ellis led the Dixiecrat walkout of the convention after declaring that Alabama delegates were instructed “never to cast their vote for any candidate associated with a civil rights program such as adopted by this convention.”

Bottom line: Butch Ellis is the son of a prominent Dixiecrat, meaning he has been a thinly veiled white supremacist for much of his life. At yesterday's Ethics Commission meeting, Ellis stood up for the white elites who want a do-nothing AG like Steve Marshall, so they can keep Alabama as one of the most corrupt states in the nation. From al.com:

The commission heard a number of other cases behind closed doors today. After the commission reopened the meeting, Commissioner Butch Ellis made a motion that there was insufficient evidence that Marshall violated the state campaign finance law. Commissioner Beverlye Brady offered a substitute motion saying there were “ample facts” to show that Marshall had violated the law.

Butch Ellis
Brady’s motion was rejected on a 3-2 vote. Brady and Commissioner Charles Price voted for it. Voting no were Ellis, Commissioner John Plunk and Commission Chairman Jerry Fielding. The commission then voted to approve the Ellis motion on insufficient evidence on an identical 3-2 vote. That closed the case.

The Ethics Commission determines whether there is probable cause that the law was broken. Had Brady’s vote prevailed, the case would have been referred to a district attorney.

Brady and Fielding declined to comment on the case after the meeting ended.

Brady and Fielding probably could not comment because they were trying not to puke.

As noted above, complaints regarding the RAGA donation remain with Montgomery County District Attorney Daryl Bailey. Attorneys Julian McPhillips and Melissa Isaak apparently filed the complaint with Bailey's office because they expected a sham ruling from the Alabama Ethics Commission.

If that was the case, McPhillips and Isaak certainly proved to be on target. Is there any chance Daryl Bailey will be different, that he actually has respect for the rule of law? I'm not holding my breath.

Monday, November 19, 2018

Overt racism, and Bob Riley's use of state contracts in an effort to frame a political opponent for murder, lurk beneath surface of Trey Glenn indictment in Alabama


Trey Glenn mugshot
Whenever you come across a story of right-wing corruption, it's a safe bet that racism is part of the narrative. If the corruption is based in Alabama, the Riley crime family likely is involved.

Last week's indictment in Jefferson County, Alabama, of Trey Glenn, Trump Southeast director of the Environmental Protection Agency (EPA), provides prime examples. An Alabama political insider says Glenn views black males as little more than disposable waste and used blatantly racist language in discussions about environmental matters. As for former Gov. Bob Riley, the insider says he used government contracts as a pawn in an effort to frame a former Alabama lawmaker for murder -- all because the then-state senator, a Democrat, refused to go along with Riley's political agenda.

Jill Simpson -- whistle blower, opposition researcher, and retired attorney -- saw Glenn's racist and corrupt tendencies while both were seeking an environmental contract about 12 years ago. Who was involved in Glenn's underhanded tactics? Why, our old "friend" Luther Strange, of course. From a Simpson Facebook post after the Glenn indictment was announced last week:

In 2006, I did a $16-million bid, for myself and four partners, to clean up a tire dump and caught Trey Glenn who then was head of ADEM [Alabama Department of Environmental Management] doing a bunch of corrupt things. It started with him trying to do a no-bid contract on a multi-million dollar deal. Next, I caught him offering one bidder the opportunity to use prisoners as basically free labor, without caring if they had proper clothing, training, and safety gear to take tires out of a lake, which gave the other bidder an unfair financial advantage. 
Trey said, "Jill, it is black guys at St Clair prison mostly," and he did not give a shit what happened to them. Then I found out he had been working with Luther [Strange], a private attorney to give people on a state tire clean-up committee an unfair advantage in the bidding process.

As for Bob Riley (and his son, the oily Rob "Uday" Riley), he tried to have former State Sen. Lowell Barron (D-Fyffe) framed for murder. Writes Simpson:

Bob Riley, after I did not get the tire deal, said I could have the next three or four tire deals if I would agree to set Lowell Barron up on opposition research on the death of Judge Paul Thomas, by getting recorded statements from clerks at the courthouse saying Lowell -- Senate pro tem at the time -- called Paul and asked him to meet him at his house the day of Paul's death, which came after he fell off a mountain. 
I told Bob I would not help him, as I knew Lowell's brother, who had been a client, and I was not getting involved in his and Rob's bullshit about Lowell. Bob said that my partners and I would not get any tire contracts if I did not start helping him get Lowell Barron, who was causing him trouble with his agenda. He then asked if I would at least help find a plaintiff for a lawsuit, in front of a judge named Bush, that they were going to bring against Lowell, supposedly for not filing some election papers right, and I said no which really pissed him off, and he said some ugly things.

Simpson says she reported the actions of Trey Glenn and the Rileys to law enforcement and civil-rights groups:

I went back to my partners, and we agreed I should report it to an FBI agent I had helped some time back solve a murder case involving a member of a Mexican Gang called La Familia .I called Danny Garnet, an FBI agent in Gadsden, and he came to my office in September of 2006, and I told him what had happened with Bob and Rob at the time Mueller was the head of the FBI -- and the FBI started investigating Trey and Bob. 

Bob Riley
I also notified the SPLC and Rev. Lowery with the Southern Christian Leadership organization to notify folks of what Bob Riley and Trey Glenn said when I advised them that they should not put young black men in a lake filled with mosquitoes without proper safety gear or training, as it could cause life-time health problems and put them at serious risk of dangerous infections.
Someone leaked to Bob that I had spoken to the FBI, and he sent thugs to my office to take me to a meeting with him, and I pulled away from one of those thugs and locked myself in a bathroom. I also notified Doc Barron that Bob Riley was trying to get me to help with putting Lowell in jail . . . and that I had said no, as Bob's actions were criminal. I further said, "I am afraid I am going to get hurt."

Until last week, Trey Glenn had proven slippery for law enforcement. But now that Glenn is facing criminal charges, will he help take down others -- especially those linked to the North Birmingham Superfund scandal? Writes Simpson:

Due to my meeting with the FBI, from my understanding, that is what kicked off an investigation in 2007 of the very corrupt Trey Glenn, who escaped being indicted then --  and I heard at the time Jeff Sessions intervened for him, to protect Bob Riley and Luther Strange and their corrupt Alabama Gang. 
Many years later, we at the Alabama Resistance heard that Trey was involved in new corrupt deal in Birmingham -- the Superfund scandal -- and once again, Luther's name came up using his public AG office to try to stop a cleanup site in a black district, and we heard Trey was writing the letters and that Sessions was involved as well. These are some deeply corrupt folks, so I am glad to see Trey Glenn is now indicted. I know back then the FBI folks hoped to get Trey and encourage him to tell on Sessions, Strange, and Bob and Rob Riley, and it appears once again this little bunch is in the mix on a clean-up site on which they were trying to stop EPA from doing anything.

Tuesday, September 18, 2018

Rob Riley, while his father was governor, apparently solicited bribes from law firms seeking state contracts, according to veteran attorney Tommy Gallion


Tommy Gallion
Rob Riley, while his father Bob Riley was Alabama governor (2003-11), suggested law firms seeking bond work via state contracts would need to funnel work to his Riley Jackson law firm in Homewood, according to a prominent Montgomery attorney who was involved in the process.

Tommy Gallion, of Haskell Slaughter and Gallion, said Rob Riley ran bond-work meetings as if he were governor. "Rob Riley ran meetings about bond work with the state and required that the winning firm send work to him. Haskell Slaughter had been doing that work for years, and it went to Bradley Arant because they agreed to Rob's terms."

Until recently, Bradley Arant was home to Rob Campbell, Rob Riley's brother-in-law and husband of Minda Riley Campbell (despite Rob Campbell's appearance at the Ashley Madison extramarital-affairs Web site.) Rob Campbell no longer is listed as an attorney at the Bradley Arant Web site, although the Alabama State Bar still lists him as working there. The firm reportedly raked in more than $10 million in taxpayer funds during the final two years of the Bob Riley administration. From Gallion:

At a meeting of our firm's executive committee meeting, when Bob Riley first took over as governor, Rob Riley appeared. He hinted that he could help our firm get considered in a major state upcoming bond issue, and he would like us to consider associating him in non-state related legal business. Our firm rejected his proposal after he left. Gov. Riley had a press release that he was putting out requests for proposals (RFP's) to all qualified law firms. Haskell Slaughter submitted the low bid, but the work went to his son-in-law's firm, Bradley Arant, who had recently hired him after Gov. Riley was elected. Bradley was the high proposal, and our firm was the low proposal; Bradley was selected by Gov. Riley.

Rob Riley's actions, as described by Gallion, appear to come close to being a classic quid pro quo ("something for something" deal) that forms the heart of federal funds bribery under 18 U.S.C. 666. The five-year statute of limitations clearly has run on Rob Riley's scheme, so why is it news now?

For one, the perjury case against duly elected Jefferson County District Attorney Charles Todd Henderson has Riley Inc.'s grimy fingerprints all over it, especially since Henderson (a Democrat) surprisingly ousted the Rileys' GOP favorite (and incumbent) Brandon Falls. Two, Gv. Kay Ivey has shown that she is willing to recycle members of the Riley Machine, such as general counsel Bryan Taylor, into positions of authority. That suggests the rank corruption of the Riley years could rear its head, with Ivey at the controls.

On top of that, Rob Riley has documented ties to efforts at establishing gaming/business enterprises that would connect Alabama investors and Russian interests. U.S. newspapers currently are filled with headlines about brewing scandals that involve Russian and American political/business figures. One of the biggest stories at the moment centers around Chattanooga property magnate Franklin Haney and his efforts to use a Canadian company (with ties to Russia) to bring a dormant nuclear plant in northeast Alabama back to life.

Rob Riley
A certain Montgomery lawyer had a front-row seat for some of Rob Riley's machinations related to Russia. Consider these words from Tommy Gallion:

My understanding is that Rob and Minda Riley made a substantial amount of money during the eight years their father was governor -- and Rob Riley could not make his house payments when Bob Riley went in.
I can tell you how they funneled the money; I've got all the documents on it. When Bob went to Congress, Rob was up there all the time working deals, and he's connected to big-time gambling interests. I know it first-hand because I invested with him and Robert Sigler. They were best friends . . . and (Sigler) lives in Las Vegas. He came in and did a sales pitch on the Russian lottery to a group of my friends. I actually invested in the pay-by-touch company, which was a helluva company, but to get that I had to get one of the units of this Russian lottery, which I never had any faith in. But (Sigler) raised over $10 million on the Russian lottery, and the money vanished.

They had the money with a bank that had a main office in London, with a branch office in Moscow. Sigler put $10 million in the Russian bank to procure a right to participate in the bid process. The money simply vanished. When everything started falling apart on the lottery, the stockholders -- which were a whole bunch of people in Montgomery -- said, "Where is our money?" Sigler had said, "We've got it protected." I got on the Internet and saw where Rob Riley set up offshore accounts for Sigler.

What happened to the Russian-lottery money and what about those offshore accounts? The answer remains unclear, but Gallion has thoughts on the subject:

I was told that an offshore account was set up in the Canary Islands by someone connected to the missing money. I don't know any more. I was told that Sigler had set one up there for Rob [Riley], but don't know for sure.

Another dubious deal involves Rob Riley's contract to represent the Jefferson County Sheriff's Department, headed by Mike Hale. That story begins with Bill Johnson, who was director of the Alabama Department of Economic and Community Affairs (ADECA) for part of Bob Riley's term. Says Gallion:

A million-dollar federal grant was sent to ADECA for law enforcement in the state. Bob Riley instructed Bill Johnson to send the full $1 million to the sheriff of Jefferson County, Mike Hale. Johnson later found out that to get the money, the sheriff had to put Rob Riley on a large legal retainer. He is still on the retainer.

How did Rob Riley and sister Minda Riley Campbell fare during their father's years as Alabama governor? The answer is "mighty well," according to Tommy Gallion:

I do not know what they made during their father's eight-year term. But I have been told it was substantial.

That is classic Riley-style corruption. With Kay Ivey in the governor's office, it might be returning soon to a theater near you. And with Donald Trump in the White House, the environment might be ripe for more attempted deals involving Alabama and Russia.

Wednesday, September 5, 2018

Kavanaugh hearings get off to raucous start, but Alabama judges Lynwood Smith and Karon Bowdre show U.S. courts are dysfunctional from the top down


Brett Kavanaugh, on the first day of his confirmation hearings,
as aide Zina Bash appears to make a white-power symbol,
near her left elbow, behind him.

The Senate Judiciary Committee began the Brett Kavanaugh hearings yesterday amid shouts from angry protesters and heated debate among committee members over the failure to receive more than 100,000 documents from the nominee's professional history. One member called the hearings a "charade," while another heavyweight politico said the process had "all the makings of a cover up."

It was hard to dispute that characterization. Heck, the festivities even included Web-fueled speculation that Kavanaugh aide Zina Bash made a white-power symbol in full view of a national-television audience. You might call all of this judiciary-related corruption at the "corporate office" level. Meanwhile, "retail level" corruption continues unabated in federal courts across the country -- and far greater legal minds than mine have spoken about it. Meanwhile, my wife, Carol, and I have witnessed it -- in up close and personal ways -- over and over again.

One of the most recent examples came from our efforts to have U.S. District Judge Virginia Emerson Hopkins disqualified from our pending "Jail Case" due to bias or prejudice. Presiding Judge Karon Bowdre referred the matter to Senior Judge Lynwood Smith, which caused me to do a face palm.

Why? Several news outlets have reported that Smith and former Gov. Bob Riley are cousins. It's hardly a secret. One of the defendants in our case is Rob Riley, the former governor's son. That means Smith was set to rule on an issue to which a family member was a party. The judges involved apparently thought we were too stupid to realize what was going on. But when we filed a motion pointing out Smith's conflict and seeking his recusal, Bowdre ruled the whole thing was perfectly fine. (Our motion and Bowdre's ruling are embedded at the end of this post.)

In the process, Bowdre butchered the relevant law -- proving that you, too, can become a presiding judge if you fulfill the apparent requirement that you be both crooked and incompetent. That's justice in the Northern District of Alabama. Talk about a charade.

To no one's surprise, Lynwood Smith ruled that Hopkins could stay on the case, allowing her to continue making unlawful rulings to benefit Rob Riley, members of his law firm, and his political allies -- including a female lobbyist with whom he has been reported to have a particularly "close relationship." (Smith's ruling is embedded at the end of this post.)

Smith essentially pulled out every excuse possible for Hopkins' actions, while largely ignoring the proper standards by which the motion was to be reviewed. The gist of his finding can be found on page 3 of his opinion:

Plaintiffs' allegations do not rise above the level of mere speculation. There is no indication that plaintiffs' criticism of political figures who have supported Judge Hopkins's political career actually caused her to harbor any bias against plaintiffs that has affected her decision-making in this case.  

Where does Smith go wrong? Here are two key grounds:

* Eleventh Circuit law holds that allegations in an affidavit must “convince a reasonable person that a bias exists.” United States v. Alabama, 828 F.2d 1532, 1540 (11th Cir. 1987). In fact, a law-review article on the subject states: "Indeed, virtually every circuit has adopted some version of the 'convince a reasonable person' test." Further, courts have held that the standard must be that of a reasonable layperson, not a reasonable judge or lawyer. Judge Smith makes no mention of applying such a test.

* The Eleventh Circuit also has held "the benefit of the doubt is now to be resolved in favor of recusal." United States v. Alabama, 828 F.2d 1532, 1540 (11th Cir. 1987). Judge Smith makes no mention of this requirement.

Lynwood Smith
Of course, the biggest problem with Judge Smith is that he has a familial relationship with Rob Riley, a party in the case. Even worse, Smith does not disclose this relationship in his ruling on Hopkins' disqualification. It was left to us to bring it up, which we did -- and it involves Ronnie Gilley, who developed Country Crossing in the Dothan area. From our motion:

One of the primary defendants in this matter is Rob Riley, son of former Gov. Bob Riley. Most of the other defendants are politically or professionally connected to Rob and Bob Riley.

According to published reports, Judge Lynwood Smith and Bob Riley are cousins. That means Judge Smith is related to Defendant Rob Riley.

No wonder Judge Smith denied the Shulers’ motion to disqualify Judge Virginia Emerson Hopkins for obvious bias and prejudice. He obviously is biased and prejudiced toward defendants who either are members of his family and connected to members of his family.

A 2009 article from the Enterprise Southeast Sun states: “[Bob]Riley released a statement Monday praising U.S. District Judge Lynwood Smith's ruling in favor of a Madison County sheriff who seized 200 machines from a bingo hall in Triana. He called the action a definitive ruling on the illegality of electronic bingo machines as a whole throughout the state. . . . A press release from [Ronnie] Gilley's office countered Riley's assessment of the ruling, stating the ruling "is not representative of the legality of other charitable electronic bingo operations in Alabama." "Gov. Riley's comment calling his cousin's ruling 'definitive' is a misrepresentation of the ruling," the release further states. "Smith's decision in favor of the sheriff's accusations that the bingo operation in question was operating illegally was warranted based on facts surrounding the allocation of revenue received from the bingo operation and failure to comply with Amendment 387. Smith's ruling was not in reference to the legality of the machines, but rather the legality of how the Department of Texas Veterans of Foreign Wars was operating its business." In reference to allegations that Riley and Smith are cousins, Jeff Emmerson with Riley's press office confirmed the men are "distant cousins."

What does this mean for our case? Well, it shows Lynwood Smith has a history of ruling in favor of his family members, the Rileys -- and Ronnie Gilley called him out on it. History repeated itself in our case, with Smith again favoring the Riley family and failing to disclose his conflict of interest. From our Motion to Disqualify Lynwood Smith:

So, it’s undisputed that Lynwood Smith and Bob Riley are cousins, meaning Smith is related to defendant Rob Riley. Smith also has a history of cheating on behalf of the Rileys, taking cases where they are involved and he is disqualified. That Smith ruled on the Shulers’ motion without disclosing this blatant conflict of interest shocks the conscience – assuming any of the judges in the Northern District of Alabama has a conscience. Smith unmasks himself as a glorified con man, which is on par with the bias and prejudice Hopkins has shown from the outset of this case.

Summary: Judge Smith is disqualified, and his judgment is due to be vacated as void, per Liljeberg v. Health Services Acquisition Corp, 486 US 847 - Supreme Court 1988. Judge Hopkins remains disqualified, and her judgments are due to be vacated as void, per Liljeberg.

How did Presiding Judge Karon Bowdre handle the matter? She found that it's perfectly fine for Judge Smith to rule on a matter where one of his family members is involved. No kidding. Of course, Bowdre had to butcher the law to get there. From her ruling:

In response to the plaintiffs’ present motion, Judge Smith submitted an affidavit describing his genealogical relationship to Rob Riley, and demonstrating that the degree of their kinship, “calculated according to the civil law system,” is seven degrees — far more than the three degrees of relationship proscribed by 28 U.S.C. § 455(b)(5). Accordingly, the provisions of 28 U.S.C. §§ 455 do not support plaintiffs’ motion and Judge Smith was not disqualified from ruling on the motion referred to him.

Notice that Bowdre cites law from 28 U.S.C. 455, which is one of two statutes related to judicial disqualification. But Bowdre acknowledges in the first paragraph of her ruling that we filed our motion under 28 U.S.C. 144, the other federal disqualification statute. In short, Bowdre knew our motion was filed under one statute, but she decided the motion based on another statute.

Even if Sec. 455 applied to our motion, Bowdre still butchered the law. She acknowledges that the overriding standard is as follows:

Any justice, judge, or magistrate judge of the United States shall disqualify himself in any proceeding in which his impartiality might reasonably be questioned.

Lynwood Smith is related to an opposing party in our case -- and that is undisputed. Might his impartiality "reasonably be questioned"? The answer obviously is yes. Only in a federal courthouse might someone come up with a different answer.

Bottom line: Sen. Richard Blumenthal nailed it yesterday when he called the Brett Kavanaugh confirmation hearings a charade. But the dubious nature of our federal courts is not breaking news. They have been a sewer long before Kavanaugh was nominated for the U.S. Supreme Court.