BRADENTON, Fla. — The Securities and Exchange Commission on Monday filed a motion in Alabama federal court announcing that it had reached proposed settlements in the civil securities fraud case against Montgomery bond dealer William Blount and his firm, Blount Parrish & Co., and local lobbyist Al LaPierre.
While details about the settlements were not made public in available court documents, the SEC also said it would pursue litigation against Larry Langford, who has begun serving a 15-year sentence in a federal prison for his role in a pay-to-play scheme that centered on the restructuring of Jefferson County’s $3.2 billion of sewer debt when he was president of the county commission.
The SEC filed a federal civil suit in April 2008 accusing Langford, LaPierre, Blount, and his firm 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.
After the SEC’s civil suit was filed, the three men were named by an Alabama federal grand jury in a 101-count criminal indictment and the civil suit was placed on hold.
Before the criminal trial started, Blount and LaPierre pleaded guilty to two counts each, but they also had dozens of charges against them dropped because they entered plea agreements.
The SEC said Monday it would need up to a 90-day stay in its civil case against the three defendants: Blount, his firm, and LaPierre.
“The commission staff has reached proposed resolutions of the case with all three defendants, and needs additional time to seek commission approval of the settlements,” said the motion signed by SEC attorney Robert Levenson.
Langford, 63, maintained his innocence and refused to plea bargain. He went ahead with a trial and was convicted on all 60 federal charges filed against him, including bribery, money laundering, conspiracy, mail and wire fraud, and filing a false tax return.
In addition to prison time, Langford was ordered to pay the Internal Revenue Service $120,000 and to forfeit $241,843. He also was removed as mayor of Birmingham. He is appealing his conviction.
The SEC said that based on the outcome of Langford’s criminal case, a motion for summary judgment in the agency’s civil case would be filed soon.
“We believe that motion will resolve the case” without going to trial, the SEC said. “The commission has conferred with counsel for Langford regarding this motion, and understands Langford will file a response opposing our motion to reopen the case.”
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.
Blount and LaPierre must report to prison on May 27.
