Former JPMorgan banker Douglas MacFaddin and the Securities and Exchange Commission are seeking court sanctions against former Jefferson County commissioner Shelia Smoot for failing to appear for depositions and produce documents on several occasions.
Smoot is among those being sought for testimony in the SEC’s 2009 federal lawsuit against MacFaddin and colleague Charles LeCroy.
The men are charged with making illegal payments to win JPMorgan work on Jefferson County’s failed variable- and auction-rate sewer deals, and associated swaps. JPMorgan is now the county’s largest creditor.
Jefferson County filed for Chapter 9 on Nov. 9, placing $4.2 billion of warrants into bankruptcy. Of that, $3.14 billion is sewer debt.
Smoot has “simply ignored and shown no willingness to comply” with court orders, and she has missed three depositions, according to a contempt of court motion filed by MacFaddin on Friday.
Smoot most recently failed to show up for depositions on Nov. 21 in Birmingham that had been scheduled by MacFaddin and the SEC.
The judge in the case is being asked to order Smoot to pay the expenses of MacFaddin and the SEC.
MacFaddin also is seeking a $100 fine against her for every day she does not comply with court orders.
Smoot told the Birmingham News that she does not believe she’s in contempt, and that her failure to appear occurred because of miscommunication.
