BRADENTON, Fla. — While former Jefferson County, Ala., Commission president Larry Langford must report to federal prison tomorrow to begin serving his 15-year sentence on pay-to-play charges, things could get worse for the 63-year-old dethroned Birmingham mayor.
The Securities and Exchange Commission has notified the federal court that it intends to pursue its case against Langford and others convicted of bribery schemes in and around the time in 2002 and 2003 that Jefferson County refinanced nearly $3.2 billion of fixed-rate sewer warrants into failed variable- and auction-rate debt and related swaps.
The SEC filed a federal civil suit in April 2008 accusing Langford, Alabama lobbyist Al LaPierre, Montgomery bond dealer Bill Blount and his firm, Blount Parrish & Co., of securities fraud and related charges in the agency’s first enforcement action involving security-based swap agreements — in this case swaps related to Jefferson County’s sewer debt based on municipal bond indexes.
Subsequent to filing of the SEC case, the three men were named by an Alabama federal grand jury in a 101-count criminal indictment and the SEC’s civil suit was placed on hold pending the outcome of the criminal case.
Before trial, Blount and LaPierre each entered plea agreements to two counts. Langford, who maintained his innocence, went ahead with a trial and was convicted on 60 federal charges, including bribery, money laundering, conspiracy, mail and wire fraud, and filing a false tax return. He is appealing his conviction.
In a status report filed late last month, SEC staff said now that the criminal cases have resulted in sentences for all three men, the agency is discussing “resolutions” of its civil case with each of the defendants that “could reduce the need for significant further litigation.”
The SEC must reopen the case or submit a follow-up status report on efforts to resolve it by April 26, according to an order by federal Judge Abdul Kallon, who took over presiding in the civil case earlier this year.
Last week, Langford’s request to remain free on bond while appealing his federal criminal conviction was denied and U.S. district Judge Scott Coogler ordered him to report to prison at 4 p.m. tomorrow.
Blount and LaPierre, who had dozens of charges against them dropped because they each entered a plea agreement, must report to prison on May 27.
Blount, 56, was sentenced to four years and four months in prison for one count each of conspiracy and bribery. He also was ordered to forfeit $1 million and was prohibited from having any securities-related or advisory business with a government. He must also get court permission to practice law again
LaPierre, 59, was sentenced to four years on one count each of conspiracy and filing a false tax return. He forfeited $371,932 and was ordered to pay $98,433 in back federal taxes. He was prohibited from being a lobbyist or serving as a consultant to any government.
In his final ruling in the cases against Blount and LaPierre, Coogler also recommended that both men be allowed to participate in a 500-hour intensive drug treatment program.
