Tuesday, June 22, 2010

Massive Fees and Fines in Jefferson County Muni- Scandal

Almost forgotten in the Jefferson County disaster was the actual sewer project deals they were designed to finance. In a perfect compliment to the corruption that destroyed the county, the actual construction and ensuing scandals ended up being disasters in their own right:

The people and companies convicted in long-running probes of the construction and financing of Jefferson County's sewer system project have forked over nearly $30 million in fines or fees to the federal government, including more than $800,000 in restitution that went to the county, according to federal prosecutor records.


Overall, about $18 million is still owed by defendants in the probes. That includes $981,962 in restitution still owed Jefferson County, according to figures from the U.S. Attorney's Office.The criminal probe into the $3.2 billion sewer construction and repair project between 1996 to 2003 resulted in the conviction of 17 people and five companies, many on bribery and conspiracy charges. Judges ordered 21 defendants to pay $46.1 million in combined restitution, fines and fees. One other defendant has not been sentenced yet.


Four others, including former Birmingham Mayor Larry Langford, convicted as the result of an investigation of how the county refinanced the county's large sewer debt, have been ordered to pay another $1.8 million in fines, restitution to the IRS, forfeitures, and fees.


"People know that the U.S. Attorney's Office prosecutes criminals," U.S. Attorney Joyce White Vance said. "What they may not know is that the office's Financial Litigation Unit and its Asset Forfeiture Unit bring in millions of dollars every year to compensate victims of crime and help boost law enforcement capabilities. Through the hard work of those units, this office brings in at least double its annual budget every year."


Last fall former Birmingham Mayor Larry Langford was convicted of corruption charges involving the refinancing of sewer bonds while he was a Jefferson County commissioner. Montgomery investment banker Bill Blount and former lobbyist Al LaPierre also pleaded guilty as part of a scheme to bribe Langford to get the bond business for Blount's firm.


Birds of a Feather.

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