BRADENTON, Fla. – The federal judge presiding over a Securities and Exchange Commission civil suit permanently enjoined former Jefferson County, Ala., commission president Larry Langford from violating securities laws in the future.
Judge Abdul Kallon on Monday granted the SEC’s motion for summary judgment just three days after the 11th Circuit Court of Appeals in Atlanta upheld Langford’s criminal conviction on 61 counts of bribery, money laundering, mail and wire fraud, conspiracy, and filing a false tax return.
Most of the pay-to-play charges were related to $3.2 billion of now-failed auction- and variable-rate sewer warrants in deals that Langford orchestrated as head of the commission.
“Langford’s conduct was egregious,” Kallon said in his ruling. “[Langford] engaged in a scheme spanning several years in which he abused his position as a public servant to enrich himself and his friends and as a result of his wrongful acts, the county citizens and its bond investors continue to suffer.”
Kallon gave the SEC until Sept. 29 to file a motion regarding disgorgement and civil penalties against Langford.
Langford is serving a 15-year prison sentence in Kentucky.
The SEC in April 2008 filed a federal civil case against Langford, Montgomery bond dealer Bill Blount, and lobbyist Al LaPierre, a mutual friend.
The civil case was put on hold after a federal grand jury in November 2008 indicted the three men in a criminal case based on the SEC’s investigation into Jefferson County bond deals.
Langford has maintained his innocence despite the fact that he was convicted of taking more than $240,000 in gifts and money in return for directing bond business to Blount. Blount’s firm received $7 million in fees from county deals. LaPierre was often the go-between delivering money between Langford and Blount.
Blount and LaPierre entered negotiated pleas to the criminal charges against them and are also in prison.
In mid-July, Kallon entered permanent injunctions against Blount and LaPierre which prevent them from violating securities laws in the future. The SEC agreed to dismiss its claims for penalties in the civil case against them.
Langford stood trial in the criminal case alone and was found guilty.
In appealing the conviction, Langford argued that the evidence did not support mail and wire fraud charges, and that the lower court erred while issuing some rulings, in giving the jury instructions, and denying Langford’s motion for a change of venue after jury selection.
The appellate court rejected Langford’s arguments last week.
“We add that the evidence of Langford’s guilt in accepting many bribes — including testimony by Blount, corroborated by extensive documentation that he paid Langford $240,000 in cash, clothing, and jewelry so that Blount’s investment-banking firm would receive millions of dollars’ worth of fees from financial transactions in Jefferson County — was overwhelming,” the appellate ruling said.
Langford’s attorney could not be reached for comment about whether a rehearing would be sought.
