Commenter Jane has just sent us this boffo summary of the indictment in U.S. v. Moultrie et al.:
Essentially, the Defendants are charged with the following alleged offenses:
1) giving money to the campaign of a "public official not charged in the indictment " (according to Sid Salter, this is Ronnie Musgrove) "with the intent to influence and reward the public official in connection with the State of Mississippi’s selection of [The Facility Group] to manage the completion of the design and construction of " the beef plant, and
2) falsifying billing records for the purpose of a) recouping all the money given in donations and b) obtaining all fees available under the contract which gave the Defendants an additional $3 million for costs associated with the project.
According to allegations in the indictment, various Mississippi officials approached Richard Hall about constructing a beef plant in Yalobusha County, Hall submitted a business plan, and the legislature passed a bill which called for a 100% guarantee of a loan to Hall. Pursuant to the guarantee, Community Bank agreed to provide Hall with a $21,000,000 construction loan plus a $6.5 million line of operating credit. Complaint, Count 1, ¶ ¶ 3-4.
A year later, however, the project was over budget and behind schedule, and the Bank and the Mississippi Development Authority stopped the project and hired, for $450,000, the Defendant The Facility Group to perform an audit. Count 1, ¶ 6.
Defendant Robert Moultrie was the chairman and CEO of The Facility Group. In March 2003, he submitted a proposal for the Facility Group to become Project Manager of the beef plant. A competing firm, Carothers Construction, also submitted a proposal. According to the indictment, Moultrie met with Musgrove and an employee of Musgrove’s campaign staff at a Jackson restaurant to discuss the beef plant. Count 1, ¶ 7.
On April 15, 2003, The Facility Group was selected to manage the beef plant project. A letter of intent was executed, but before a Project Management Agreement was completed, Moultrie mailed out invitations to attend a fundraiser for Musgrove at Moultrie’s house in Smyrna, Georgia. Count 1, ¶ 11.
A week later, on July 11, 2003, a Project Management Agreement was signed which provided for a lump sum fee of $3,547,974 "but also an additional reimbursement of up to $3,021,418 for costs associated with the project "at cost.’ " Count 1, ¶ 12.
The fundraiser took place on July 23, 2003. Moultrie advised the employees attending the fundraiser to write $1000 checks to Musgrove’s campaign and told them they would be paid back by The Facility Group. Later that month, Moultrie had the company issue checks to the employees to cover their contributions. Moultrie also created The Facility Group Political Action Committee which contributed $20,000 to Musgrove’s campaign in August and $25,000 to Musgrove’s campaign in September. Count 1, ¶ 13.
Thereafter, from August 2003 through March 2004, The Facility Group allegedly devised fake billings to be included in invoices to the various entities (including the Mississippi Development Authority), in order to recoup the money given as campaign contributions. Count 1, ¶ 19.
They allegedly also submitted fraudulent invoices for the purpose of obtaining the Project Management Agreement’s provision for an additional $3 million for costs. Once The Facility Group earned every penny authorized under the contract, according to the indictment, it "walked away from the project with all of its profits, inflated costs and campaign contributions to the public official reimbursed, leaving behind approximately $2,000,000 in unpaid bills owed to contractors. " Count 2, ¶ 9.
Most of the sixteen counts each outline a separate fraudulent request for payment. These are characterized as violations of 18 U.S.C. § 2 and 18 U.S.C. § 1341, i.e., mail fraud and conspiracy to commit mail fraud. Count one also includes a charge of violation of 18 U.S.C. § 666(a)(2), i.e., theft or bribery concerning programs receiving federal funds.
Do you think this indictment was the last bit of business the grand jury came back to handle? Is it tied into Scruggs somehow? Is this the whispered-about sealed indictment from so many months ago?
I don’t think it’s related to Scruggs…unless the money he gave Musgrove (and I think it was a lot) comes out as “inappropriate”. (and maybe there’s a good chance of that)
…AND I would like to know who helped Hall draw up that “business plan”. I don’t think he did that all by his lonesome…
Jane = a boffo living legend in the Jackson blogosphere. Give her a regular column lotus. She’s that good!
Bud m’dear, you’ll be pleased to know that we did that very thing about 20 minutes ago, and now all I gotta do is walk our new co-blogger through backstage so she knows which buttons do what.
W00T!
WOW. Jane now in the lotus starting lineup! Double WOW.
Just nosin’ around campaign finance reports to see if The Facility Group PAC contributed to anybody else and guess what? It doesn’t come up as a registered PAC on the Sec of State’s website? Wonder what that’s about? Anybody out there know?
Jane, para. 4 of your original post: the Bank and the MDA hired the defandant to perform an audit ($450,000)? Where was the state auditor?
Sailor… I agree with your posts continuing to question the at-the-time state Auditor… many questions need to be answered there, in my opinion
Something else to look at is the Community Bank. since the loans were guaranteed by the tax payers, they had nothing to lose. Wonder how they got the job? I’ve tried to pull their PAC records off the SoS but cannot get 2003. No problem w/ 2007 reports, and 2003 is listed, but page isn’t accessible. And Jane, my question @7: The Facility Group PAC mentioned in indictments doesn’t exist at the SoS site.
Here’s a site with info. on the PAC:
http://www.campaignmoney.com/political/527/the_facility_group_political_action_committee_inc.asp
Sailor 12
Sometimes you have to go to another state SOS, Possibly Georgia?
Sometimes you can just google to get info
Sometimes you just go?????????? now I’m really M A D !!!
Thanks, Jane. ww, technically they should’ve been registered w/ the Miss Sec of State, however, the US Chamber and its many shell outside expenditure groups don’t, so there’s really alot of work involved sometimes to finger it all out w/ these PACS! Jane, Community Bank PAC, as it’s listed w/ Miss SoS doesn’t appear on the website where you found Facility. HhRRRUMPH!
Sailor 9
My EDUCATED Guess
Writing a BOOK, or Taking a PICTURE
Least that was my IMPRESSION in 2006 when I visited his website lookin for answers to another mystery with some of the same players!
This case may link more to information uncovered in the Paul Minor case than the Scruggs case. Minor is serving time in federal prison for judicial bribery. In 2001, One of Musgrove’s staff said Minor spent more time in the governors office than in his own. When my messenger took a document to then Governor Musgrove’s office concerning Minor and judicial bribery, she had to wait until Minor finished passing out gifts to Musgrove’s secretaries and staff. There is something smelling pretty rotten here, and I doubt if it is just bad beef.
Out of Wind, Paul Minor has nothing to do w/ the meat plant scandal. Yes it looks like the meat plant folks gave money illegally to Musgrove’s campaign and yes, Minor was one of his largest contributors. I think that’s probably the only link there. Minor will most likely die in prison–what is your personal-sounding beef w/ him?
Just think Guys
This same bunch Got all those Katrina Funds to MANAGE!
Scary Stuff:
Mississippi Development Authority Mississippi
Gulf Coast Regional Infrastructure Program
Recovery Action Plan Amendment 2
Investigation and Mitigating Occurences of Fraud, Abuse and Mismanagement
MDA and DEQ will work with HUD to develop procedure for mitigating instances of fraud abuse, and/or mismanagement. A significant control element will be that MDA, DEQ and its contractors have specific segregated duties, with verification and controls at all levels. Additionally, the Auditor of the State of Mississippi will have an investigative team assigned to investigate suspected instances of fraud.
Was The Beef Plant a Bond Issue?
If so –
Anyone have a copy of the Official Statement for the Beef Plant Bond Underwriting!
Who was the Bond Attorney?
ww, come again 16?
But wasn’t MDA under a different administration, as MS was at the time?
Nope
Musgrove appointed 3, I believe, Exec Directors at MDA during his administration, then GHB appointed Speed and now Swoope under his administration. Same for bond atty—Musgrove had one and now GHB has another one
Oops, you are right, MT (was thinkin’ MEC…stupid me)
MBJ on 7/14/03…
“J. Stephen Hale is the third executive director of the Mississippi Development Authority (MDA) under Gov. Ronnie Musgrove, following J.C. Burns and then Robert Rohrlack in that position.”
I think the bond info can be found on the DFA website, but I’m trying to figure out the correct year… what am I looking for?
2003?
Sailor 20
Which part?
His website was loaded with pictures, lecture info, and books he had written.
I was so amazed I may have copies of some of it, but that was 2 years ago I printed some of it out it was so amazing!
If you think you are loaded with information now you can’t even begin to handle my info. I
give what I can, but there are a lot of dark corners, most dare not wander!
Just hangin in there like a “Hair in a Biscuit!”
Sometimes I drop the jib, reef in the main, or just batten the hatches and go below, right now I’m secured with the life line with one eye on that dark cloud!
Lets hope Blog News is like Oil it rises to the surface so the Sunlight can shine on it!
There is a lot more truth that needs to surface!
MT, Rohrlack was head of MDA from Oct 01 to May 03. He apparently questioned the legislature’s “wisdom” at every step. Seems the biggest elected official to blame is Lester Spell…outside of the legislators who voted in favor. Remember, too, MDA chiefs are appointees, so its curious he wouldn’t have been gung-ho on a project evidently near and dear to RM.
True—I’m still trying to figure out WW’s inference with the bond and the bond attorney
OR Sailor… maybe that’s why he was succeeded by Stephen Hale. Three appointments to that position in 3 years is quite a lot, in my opinion
I share the same opinion on the 3 heads in as many years, MT. WW’s kinda got me in irons…can’t find a breeze to put me on a point of sail…
DPC Data is one of 2 sites that Law around 1990′s required Municipalities to list Bonds.
Sorta a Credit Check to see how much debt that they carry so underwriters would be able to do their JOB!
I have found it interesting that the bonds that were issued under the ms development authority are not listed under the city or county but under the development authority itself. but check city, county, or mda.
I have a New Issue – Official Statement
Issued 1999 Mississippi Development Bank
Copy of Tupelo Fairground Project
Morgan Keegan & Co, Inc.
(Managing Underwriter)
Ambac – Insured (Yeah Right)
Purchasers-J.C. Bradford & Co.
330 Commerce Street
Nashville, Tennessee 37201
Morgan Keegan & Co., Inc.
Morgan Keegan Tower
50 Front Street
Memphis, Tennessee 38103
Trustee : BancorpSouth Bank
525 East Capitol Street
Jackson, MS 39201
Attn: Corporate Trust
Bond Counsel:
Butler, Snow, O’Mara, Stevens & Cannada, PLLC
Believe me I’ve read the whole thing, get ahold of that for you Beef Plant!
This States that each year the investor is to get a continuing disclosure statement, I would imagine that would be so for the Beef Plant!
Guys I just Posted a bunch of info and hit submit and it just disappeared!!!!
Sailor 18. True – Minor may not have a direct connection to the beef case, but he was thick as thieves with Musgrove. Corruption has been the way of doing business in Mississippi for way too long. The everyone is doing it mentality was raised in Minor’s defense. Which raised the question of just who did everyone include.
It is my guess that The 3M gang felt comfortable as long as everyone was doing it and secure that no one would rat as long as they knew each other’s secrets.
My beef with Minor was that he was my attorney for fifteen years. I am also intimate with Mississippi corruption.
After I asked Minor to account for over $200,000 in missing settlement funds two days before trial, Minor bribed Judge John Whitfield to allow him to withdraw on the day of trial, then to dismiss my case on Whitfield’s last day on the bench.
Musgrove and Moore were given documents that alleged bribery had taken place in my case and were asked to investigate. Musgrove ignored my plea for an investigation and Moore refused to prosecute.
And that was just the beginning.
DPC date is one of 2 places that Federal Law
around 1990 required bond issues to be listed so that debt could be correctly underwritten.
(CREDIT CHECK)
Official Statements and Continuing Disclosure Statements are available there.
(THE PROMISES)
FOR EXAMPLE I HAVE A COPY OF A
1999 MISSISSIPPI DEVELOPMENT BANK
TUPELO MS, FAIRGROUNDS PROJECT
AMBAC INSURED
(YOUR NOT READY FOR THAT INFO YET)
BOND COUNCIL
BUTLER, SNOW, O’MARA, STEVENS & CANNADA, PLLC
***MANAGING UNDERWRITER***
MORGAN KEEGAN & CO, INC
ORIGINAL PURCHASERS
J.C. BRADFORD & CO
NASHVILLE TN
MORGAN KEEGAN & CO, INC.
MEMPHIS, TN
TRUSTEE; BANCORPSOUTH BANK
JACKSON MS
BANK; MISSISSIPPI DEVELOPMENT BANK
GET THIS INFO FOR YOUR BEEF PLANT
BOND!
Was there definitely a bond issued??—I’ve been looking and haven’t found it yet.
You got it? What’s your hold out?
Since there was $21,000,000 in state-guaranteed loans from Community Bank, would there necessarily be a bond issue?
I’m not finding it myself…checking the DFA Annual reports/Bond Advisory Division
Don’t think a bond was ever necessary…Spell got his special Land, Water, Whatever subagency to appropriate 5 mil. , then the Community Bank loan. So, we’re at 26mil there.
The outrage is that the company didn’t even attempt to provide any sort of match and wasn’t even asked to! Has anybody seen a copy of the contract for any of these funds? I’m not sure where to look.
REMEMBER -
“Money power denounces, as public enemies, all who question its methods or throw light upon its crimes.” – William Jennings Bryan
IF YOU WANT TO SOLVE THIS CRIME YOU MAY HAVE TO MOVE PAST WHAT THE DOJ IS DOING!
SOUNDS AS IF THIS WAS A FAILURE FROM THE GETGO.
GET THE OFFICIAL STATEMENT THEN WE GO FROM THERE!
WHO WERE THE COMMUNITY BANK OFFICERS?
SAILOR
THE ORIGINAL FINANCING HOWEVER IT WAS PACKAGED SHOULD HAVE HAD DOCUMENTATION OUT THE WAZOO.
IF IT WAS ORIGINALLY BACKED BY THE STATE OF MISSISSIPPI THEN IT SHOULD BE AVAILABLE THROUGH THE FREEDOM OF INFORMATION!
THROUGH THE STATE AUDITORS OFFICE!
The Bank was paid in full by the money The State received from having Langston turn over what he had given to some type of Childrens Justice Center non profit that had not been spent out of MCI funds Fees. Yet the Bank also kept the Facility. What a return on your money.
Out of Wind, now we all know why Musgrove ignored your pleas to investigate and why Moore refused to prosecute. I admire your fortitude in pursuing the bribery.
what is the status of your findings on the firm,Facility Group, which was indicted on the failed meat processig plant?
Welcome to folo, georgia.
The status of my findings is very near “zilch”: my co-blogger, NMC, is in off-blog life Tom Freeland, Robert Moultrie’s defense attorney. He ethically can’t, and so doesn’t, tell me word one about the case, publicly or privately. I also have no access to PACER, and since the indictments, the area newspapers have been strangely ignoring Moultrie. That leaves me with nuttin’ but frustration.
I recommend you put “Facility Group” into folo’s Search box and that of GoogleNews to find as much as I know.
thank you. why do you think the Oxford newspapers are saying anything
Beats me — I’d have thought it’d be Big News for them. Our reporter friend Alyssa wanted to cover one of the hearings, but her editor wanted her to do something else . . .