BRADENTON, Fla. — Based on settlements recommended by the Securities and Exchange Commission, a federal judge in Alabama has issued permanent injunctions prohibiting future violations of securities laws by Montgomery bond dealer William Blount and his firm, Blount Parrish & Co., and local lobbyist Al LaPierre.
U.S. District Judge Abdul Kallon Wednesday signed identical rulings against the trio, which also dismissed SEC claims for civil penalties that were sought when the suit was filed in April 2008.
The SEC requested that civil penalties not be assessed, agency attorney Robert Levenson said yesterday.
“We took into account a number of factors, including sanctions already issued in the criminal case,” he said.
In December 2008, Blount, LaPierre, and former Jefferson County Commission President Larry Langford were named by an Alabama federal grand jury in a 101-count indictment, and the SEC’s civil suit was stayed pending the outcome of the criminal case.
The criminal charges surrounded a pay-to-play scheme over several years in which Langford ensured that Blount benefited from $7 million in fees collected on Jefferson County’s now-soured sewer financing deals and related swaps. Blount funneled payments to Langford using their friend, LaPierre, as a conduit.
The three men were to stand trial together last October. But as the trial date neared, Blount and LaPierre entered plea agreements. Both had dozens of charges against them dropped.
Blount was sentenced in late February 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 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.
Both men were required to testify against Langford, who oversaw refinancing of the county’s sewer warrants in 2003 and 2004 and who also benefited from bribes, gifts, and loans worth at least $235,000.
Langford insisted he’d done nothing wrong. His case went to trial and a jury convicted him of 60 federal charges, including bribery, money laundering, conspiracy, mail and wire fraud, and filing a false tax return.
Langford, who at the time was mayor of Birmingham, was removed from office after the conviction.
While he has begun serving a 15-year prison sentence, Langford is appealing.
In April, the SEC notified the court that it intended to pursue its civil case against the three men and Blount Parrish. Subsequently, the agency announced it had reached settlements with Blount, his firm, and LaPierre but the details were not known until the judge ruled this week.
Those settlements resulted in the permanent injunctions that prohibit them from future violations of securities fraud laws as well as violations of the Municipal Securities Rulemaking Board’s Rule G-17 on fair dealing and Rule G-20 on gifts, gratuities, and non-cash compensation.
The SEC has also filed a motion seeking to reopen the case against Langford but the judge has not ruled on that motion, Levenson said. He also said the case against Langford is expected to move forward soon.
Jefferson County has filed a lawsuit against Langford, Blount and his firm, LaPierre, JPMorgan, and two of the firm’s employees for their roles in the troubled sewer deals.
