The Jefferson County Commission Tuesday voted to submit a petition to the U.S. attorney general’s office in Alabama seeking the “criminal forfeiture” of $1.61 million to the county in connection with the federal corruption case of former county commissioner Larry Langford, lobbyist Al LaPierre and Montgomery bond dealer Bill Blount.
The one-paragraph resolution did not explain how the petition process worked or if commissioners expected the federal judge overseeing the case to order additional forfeitures. As part of their convictions on pay-to-play charges centering on the restructuring of $3.2 billion of Jefferson County’s sewer bonds, the three men were ordered to forfeit a total of $1.61 million to the U.S. government.
Langford was convicted in October by a jury of 60 charges including bribery, money laundering, mail and wire fraud, conspiracy and filing a false tax return. He was ordered to pay the Internal Revenue Service $120,000 and to forfeit $241,843.
Langford, 63, reported to prison to serve a 15-year sentence on April 7. He is appealing his conviction. Blount and LaPierre, who entered plea agreements and agreed to testify against Langford, each had dozens of charges against them dropped. They report to prison May 27.
Blount 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 barred from securities-related or advisory business with a government.
LaPierre was sentenced to four years for 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.
The county’s non-recourse sewer debt remains outstanding and most of it is in troubled variable- and auction-rate mode on which the county has defaulted. The county has failed for two years to negotiate a restructuring agreement with creditors that hold the debt. However, there has been speculation recently that a deal could be struck before a new county commission is elected later this year.
An additional impetus to restructure the debt soon is the fact that the sewer bond trustee, the Bank of New York Mellon, is seeking a receiver for the sewer system in state court. A judge scheduled trial for June 14-25.
