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The AP on Lackey, folo on Balducci, the C-L on itself

February 24th, 2008 @ 7:55 am - by lotus · 13 Comments

The Sun Herald is providing its Sunday readers the AP’s version of “the key figure” Judge Henry Lackey’s problem after Tim Balducci allegedly approached him for Dickie Scruggs.

OXFORD — For two weeks, Judge Henry Lackey agonized over what to do.

He was pretty sure Tim Balducci had just offered him a bribe and was torn about his next move.

Testimony from Balducci and FBI Special Agent William P. Delaney during a hearing in the federal bribery case against Richard “Dickie” Scruggs and his associates offered the first in-depth look at Lackey’s role in building evidence against the famed plaintiffs attorney.

“Judge Lackey was terribly troubled by the whole incident,” Delaney said. “He was troubled for two reasons. A, he knew what Mr. Balducci was doing was wrong and at the same time he was conflicted because he didn’t want to get his friend in trouble.” …

The judge has not returned multiple messages left by The Associated Press. Testimony last week, however, offered a glimpse of testimony that likely will be offered during a trial, which is set for March 31. …

Though the prosecution’s description of what happened is straightforward — for $40,000, Dickie & co thought they’d bought a judge’s favorable ruling in a lawsuit over $26.5 million in attorneys’ fees — “the picture was not so clear to Lackey last March as he considered contacting the U.S. attorney’s office in Oxford.”

In testimony last Wednesday, Balducci said he first went to Lackey to talk with him about the case involving the Scruggs law firm. He told the judge he thought the case should go to arbitration, something that would likely favor Scruggs.

Lackey felt uncomfortable with the discussion.

“He knew something improper had happened,” Delaney said. “He just didn’t know if it was illegal or not.”

He agreed to help the government find out.

This says — at slight variance with my perception so far — that Judge Lackey “began wearing a wire and recording phone conversations with Balducci from May through September.” NMC and others who were present, was that “wearing a wire” part actually the testimony this week? As I’ve previously understood, the FBI had his chambers and phone camera- and miked-up to a fare-thee-well, but did they actually rig him up with a body-mike too?

Anyhow, reporter Chris Talbott continues,

… even six months after their first conversation, Delaney said Lackey still wasn’t sure there had been a crime. So he finally forced the issue and asked the question. Would Scruggs be willing to pay him to rule in his favor in a dispute over $26.5 million in Hurricane Katrina settlement attorneys fees?

“It took Judge Lackey all summer, from my perspective, to get this thing resolved,” Delaney said. “And to get this thing resolved, he decided he had to ask that question.”

The answer, according to Balducci, was yes. …

In a late March meeting, Zach Scruggs had the bright idea of approaching Lackey, and when John Keker asked Balducci if he’d volunteered to do it, he answered, “Volunteered? I don’t know if I’d put it that way. I was asked to and I agreed to.”

“What I said to the agents is we didn’t talk about giving money to Judge Lackey at that meeting,” Balducci said. “We certainly discussed improperly influencing the judge at that meeting.”

Balducci was startled when Lackey asked for money in a Sept. 18 phone call that was recorded, and went to his office to meet with him three days later to clarify exactly what the judge wanted.

Lackey concocted a story about needing $40,000 to get himself out of a personal bind and asked Balducci if he thought Scruggs would pay the money, the witness testified.

“I said, yes, that I would help him,” Balducci said. “I would get it together and help him.”

Since Balducci’s immediate need then became CYA, he got hold of Sid Backstrom to see whether the Scruggs Law Firm would in fact cover the payment to Lackey; Sid told him to go ahead, Dickie would pay. Now Talbott recounts (consistently misspelling Steve Patterson’s name) Balducci’s testimony that, though he was willing to front the $40K, his ex-state-auditor partner

wanted word from Scruggs. So Paterson, who has also pleaded guilty in the case, contacted P.L. Blake, another Scruggs associate.

“He wanted some direct confirmation because the $40,000 meant a lot to us at the time and he wanted to make sure that if we were going to do this we would get our money back,” Balducci said.

Word came back from Blake “that we would be covered and not to worry about it.”

Only in mid-October did Balducci and Patterson finally talk to Dickie about it themselves, in Dickie’s office. “‘Steve and I were there to meet Dick on an unrelated matter and before we even sat down, he brought it up,’ Balducci said.”

Now according to NMC, Alyssa LydiaLaw, and other foloers in attendance during Balducci’s time on the stand, one of, if not the, major impression they took away from the courtroom was his surprisingly-solid behavior as a witness. No doubt John Keker, Frank Trapp, et al. will do all they can to crack through that at trial, but his first performance certainly seems to have gone much better for him than for them.

Will Henry L. Lackey’s testimony be bulletproof too? I can’t call this The Question of U.S. v. Scruggs, but it may turn into The Question of this trial — should one be required.

By the way: If you’re in Camp Scruggs and your gloom needs a lifting, you might try executive editor Ronnie Agnew’s piece in today’s Clarion-Ledger, whose ending warrants the rare Triple Spew Alert:

As much as the tag of being labeled unfair stings, it serves as a constant reminder of the power of newspapers. While an effective column or editorial should reflect the person or the newspaper editorial board’s opinion, our news stories that appear on section fronts such as Page 1 or Metro-State should always be balanced, void of bias or a point of view.

Sid [Salter] is not being unfair when he disagrees with a position taken by our AG. Nor am I when I offer my thoughts on the location of a civil rights museum.

But our staff-written news stories are sacred and should never tread in that territory. They must be accurate. They must be timely. Above all, they must be fair.

Aw, Ron-nieeeeeeeeeeee.

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Filed Under: Herald & Examiner

13 Responses so far ↓

  1. jim says:

    Here is old P.L. showing up again. Three questions: 1–Why would Patterson and Balducci go to Blake to ask that their money be covered when they had direct access to Dickie 2–If this comes to trial will Blake be a witness for the defense or the prosecution 3– Is Blake still receiving his quarterly payments that total two million dollars on an annual basis?

  2. Tortfeasor says:

    If it is true that Lott called the feds and said “back off” on the Lackey investigation, and I certainly don’t know if that ever happened or not, but if it did can you imagine how upset that made Dept. of Justice? They had been working on this case for months and kept it a secret in Oxford of all places, and then Trent calls! He decided to resign after hearing a sermon…. I need to go throw up!

  3. confounded says:

    there’s nothing I’ve heard about trent’s involvement in the lackey investigation. Years ago, after Trent was a singing senator with Ashcroft and Ashcroft was Attorney general, dickie was investigated by the Feds. Trent asked Ashcroft and lampton not to pursue dickie, they apparently complied. Dickie served up info on paul minor to save his own skin and was a gov’t witness who took the 5th during Paul’s trial.

    The other prosecution of dickie that Trent allegedly interfered with was the alabama prosecution. The entire us Atty’s office recused from prosecution in those matters. Was it because Trent asked them to?

  4. lotus says:

    jim 3, see the new post. As to your first question at 1, that’s been puzzling me something fierce too — along with confounded’s at 4.

  5. Magnolia says:

    confounded….Mississippi’s finest hour..Corruption at the highest level..and it was all for the poor people of Mississippi..

  6. NMC says:

    I will have to check through the notes I posted online about the hearing, but I don’t think Balducci testified the idea to approach Lackey came from Zach. He described a meeting at which he thinks the plan of the Scruggs group all along was to ask him to approach Lackey, that Zach brought up Balducci’s relationship with Lackey, and that Dickie directly asked for the approach. I’m going to have to check my notes to be sure, but that’s what I remember hearing.

  7. a friend of the law says:

    At the very earliest stages of this prosecution, just before the indictments were announced, I had heard some interesting info about why it took Lackey about 2 weeks to report the violation to federal law enforcement authorities. This interesting info indicated that he DID in fact report it to law enforcement, just not to the feds —yet — until the indications were that nothing would be done about it. Later I dsimissed this as likely incorrect rumor since it appeared initially that the reporting to the feds took only a couple of days.

    Now, it appears that the original timeline that I heard was correct. And now I am wondering if the initial info on the reporting of it was correct to? Hmmmmmmmmmmm. The answers to the 2 week delay may be more surprising than some think. Only time and Judge Lackey’s testimony will tell. (Sorry to be so cryptic, but for now, such is necessary).

  8. confounded says:

    dear friend: do you suggest that lott slowed the process?

  9. a friend of the law says:

    I am not suggesting anything at all really, just pointing out some info I got from a source that has been correct about everything else I have been told. And the info had nothing to do with Lott.

  10. scandaljunkie says:

    The unsubstantiated (sp?) rumour I heard was that Judge Lackey reported the actions and his concerns to Hood’s office. After a short period of time he realized nothing was going to happen and he then contacted a friend who was involved with the federal government. I have nothing to back that up – but have been told this by several people.

  11. observer says:

    Senators from the same party as the President, generally have a lot of imput into the selection of the U.S. Attorney(s) for their state. It has kind of been a given in federal circles that Lott got to pick the U.S. Attorney for the southern district of Mississippi (Dunn Lampton) and Cochran got to pick the U.S. Attorney for the northern district (Jim Greenlee).

    That scenario, would certainly explain why Scruggs skated in the federal bribery investigation of Minor and others (in the southern district), but not the Lackey bribery investigation, (prosecuted in the northern district, by federal investigators, primarily from the southern district), if Lott, in fact, did make a call to Lampton on Scruggs’ behalf.

    I’ve always had a good opinion of Lampton and Greenlee, and never bought the whole political prosecution angle of Minor and the rest. But, I never could figure out how Scruggs walked away from the Minor investigation so clean (maybe some really good legal advice from Mike Moore during the car ride to the grand jury?).

  12. lotus says:

    Heh. Or maybe not, observer. Anyhow, good Monday morning to you.