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Update: everything after the one line para about met with Lackey in Calhoun City is new.

This is more of Balducci’s testimony.

In the meeting in the Scruggs office, Zach was the one who originally suggested Balducci meet with the judge. It was commonly known about Balducci’s relationship with Judge Lackey. Zach asked whether it would be possible for Balducci to go to Judge Lackey and see if he could influence him. The discussion was 20 minutes long. There was no dissent. Balducci acted on their request. He called Lackey shortly after the meeting and said, "I have a matter of interest I want to talk to you about. " Lackey said, come on. Balducci went to see him on 3/28. (He’s made it clear elsewhere that he can’t precisely place the meeting in the Scruggs office in time –it was between 3/15 and 3/28).

Met with Judge Lackey in his office in Calhoun City.

When Balducci went to see Lackey, he welcomed Balducci into his conference room, exchanged pleasantries, talked about Balducci’s new firm, Lackey’s health, their families.

Balducci told him the reason here was there: He was there to discuss a case pending before him, the Jones case. Balducci said he was not an attorney of record in the case, not representing any party in the case, had no interest, and the Scruggses had asked him to come tell Lackey what their interest in the case was. What little Balducci knew about the case at this point was from the Scruggses. The Scruggses wanted the case to go into arbitration. There were more issues than fees in the case; Balducci discussed with him dismissing the "extraneous " matters and sending the fee issue to arbitration.

Lackey did not express surprise.

Balducci said he was there on behalf of the Scruggs firm. Toward the end of the meeting, Balducci mentioned his new law firm that had started in January. Balducci mentioned that Lackey was a close friend and long-time colleague, and said that when he laid down the gavel, Balducci would be humbled if Lackey came with him. The lawyers who were of counsel in his firm got a small monthly stipend of $1000 a month. Balducci did not intend a quid pro quo in offering this. He knows in retrospect that is how it was taken, and objectively can see how Lackey took it that way.

Recusal: Baldicci learned this when he got a call from Sid Backstrom. Backstrom was frantic and angry. What is going on, he said. We’ve just been told Lackey recused himself. Backstrom was beside himself. He said, "Find out. Get ahold of the situation. Let us know what is happening. "

Balducci called Lackey and did not reach him. Lackey called back. Lackey described seeing a Jones lawyer at a social function and that the lawyer engaged in an ex parte conversation about the case and at that point Lackey thought he should recuse himself.

Note: Later, the FBI agent made clear that this recusal was about Balducci’s contact and Lackey was using this story as cover. It is not clear if that means the ex parte contact story was entirely made up.

Balducci did not argue with him. During the same conversation, Lackey said he had acted precipitously and said he was thinking about unrecusing himself. Balducci said whatever, do what you need to do.

Balducci called Backstrom to tell him. Backstrom said: Stay with it, monitor it, keep this thing on track.