Here’s the whole story, from Alyssa Schnugg at the Oxford Eagle. A link to the site will come later:
Assistant DA says Lackey’s testimony was true
Hood denies Scruggs threatened to fund opponent
By Alyssa SchnuggStaff Writer
What would a good legal thriller be without some "he-said-she-said " to throw into the mix of intrigue, corruption and accusations?
But in the infamous judicial bribery case involving Richard "Dickie " Scruggs and four others, there appears to be a case of "he-said-he-said-he-said. "
On Tuesday, Circuit Court Judge Henry Lackey testified during a civil lawsuit hearing against Scruggs that Assistant District Attorney Lon Stallings told him in March 2007 that Attorney General Jim Hood told him that Scruggs, through former Attorney General Mike Moore, had promised him if he did not go along with the settlement in a legal dispute between State Farm Fire & Casualty Co. and Scruggs over the insurer’s handling of homeowner’s claims, that Scruggs and Moore would find a candidate who would run against him.
Hood has denied Moore ever made such a threat to him.
"No, Mike Moore never approached me with such a message, " Hood said Wednesday in an e-mail to The EAGLE. "Judge Lackey was right to turn the case over to the federal government which has the wiretap authority that the state lacks. "
Lackey’s testimony Tuesday came during a civil hearing for a lawsuit filed by a Jackson law firm, Jones, Funerburg, Sessums, Peterson and Lee. The lawsuit alleged Scruggs and the others conspired to "freeze out " the Jones firm and offered it a "ridiculously low figure " for its work on Katrina cases. The firm claims Scruggs is withholding money the firm is owed for working on Hurricane Katrina insurance-related litigation. It’s the same case in which Scruggs pleaded guilty to conspiring to bribe Lackey for a favorable ruling.
Scruggs, his son, Zach Scruggs, law partner Sidney Backstrom, former New Albany attorney Timothy Balducci and former state auditor Steven Patterson were indicted in November and have pleaded guilty to charges related to the federal bribery investigation. They are awaiting sentencing.
Circuit Court Judge William Coleman ruled in favor of the Jones’ firm Wednesday. A hearing is set Nov. 12 to decide how much Jones will be paid by the members of the former Scruggs Katrina Group.
Threats denied
Moore said that recently published reports claiming that Stallings had text messaged him to assure Moore that Lackey’s comments about his threatening Hood’s position were untrue. Moore said the text message he received earlier this week came from his associate, Lee Martin.
Moore also denied threatening Hood in any way.
"Never happened, " he said this morning. "First off, I wouldn’t threaten someone to run against (Hood). I’m the one who got him to run to begin with. He’s been my friend a long time. When his second campaign came around, we helped run his campaign … If anyone is trying to do anything negative against (Hood), they’re gonna be on the other side of me. I’m on Jim’s side. "
Moore, who is representing Zach Scruggs in the bribery case, said he worked as an unpaid "facilitator between all the parties " in the legal battles that followed Hurricane Katrina, which hit the coast in August 2005. Moore said he did advise Hood, but never pressured him to do anything on behalf on Scruggs.
"As far as what Judge Lackey said, the information is wrong, " Moore said. "Maybe he’s confused. Maybe someone else is doing that stuff. Maybe Steven Patterson. I prosecuted and removed (Patterson) from office. He doesn’t like me much. Whatever those boys are saying, they aren’t talking to me about it. "
Patterson was removed as state auditor after admitting to filing papers to avoid paying car taxes.
Backing Lackey
For his part, Stallings — upset about media reports claiming he made the story up and that he sent a text message to Moore on Tuesday during the hearing saying he never made that comment to Lackey — told The EAGLE Wednesday he was "really hurt " reading the statements in the newspapers.
"I grew up in Calhoun City and have known Lackey since I was a child, " Stallings said. "The last thing I’d want people in Calhoun to think is that I would have done that or said that about Judge Lackey. He told the truth. A few details got confused, but the thrust of his testimony was correct. "
Stallings said Lackey had come to him in March, shortly after being approached by Balducci who appeared to be trying to corruptly influencing Lackey by asking him to side with Scruggs in the Jones v. Scruggs lawsuit and offered Lackey a position in his law firm after Lackey retired.
"(Lackey) was upset about it and asked me why someone would think he’d do something like that, " Stallings said. "He suspected Scruggs was behind it … I told him we had an investigator that we’ve used in voter fraud cases that would wire up and send in there. "
Stallings said Lackey didn’t trust the Attorney General’s office to investigate the case since Hood, Moore and Scruggs were friend.
"I told Judge Lackey that I didn’t think Jim (Hood) was as close to Mike (Moore) anymore, " Stallings said. "I told him that to my recollection what (Hood) told me, and that was Mike (Moore) had told him that Dickie threatened to get him an opponent to run against him if he didn’t settle the case. "
Lackey later decided to go the U.S. Attorney’s Office and report the incident.
Friendships may end
Stallings said Hood called him Wednesday, after hearing about Lackey’s testimony.
"I think Jim remembers it differently, " Stallings said. "I consider Judge Lackey, Mike and Jim friends. All of this could end some friendships. "
Hood, a Democrat and former district attorney, was elected to his second term last year. Scruggs was one of his biggest campaign contributors.
Moore, a popular Democrat who served four terms as attorney general before going back to private practice, had a close relationship with Hood and Scruggs.
Scruggs, the brother-in-law of former U.S. Sen. Trent Lott, was one of the most prominent lawyers in the country. Moore, acting as attorney general in the 1990s, hand-picked Scruggs to lead the legal assault on tobacco companies that resulted in multi-billion dollar payout.
This is not the first time allegations have surfaced that Scruggs sent messengers to tell Hood how to handle cases against State Farm.
An FBI report made public in February said Scruggs paid $500,000 to two men now entangled in the bribery investigation — Balducci and Patterson — to persuade Hood not to file criminal charges against State Farm.
Scruggs, who was suing State Farm on behalf of storm victims, was afraid that the insurer "was not going to settle the civil cases " if the attorney general’s office filed criminal charges, according to the FBI report based on Balducci’s statements.
Hood has acknowledged meeting with Patterson and Balducci around Christmas 2006, but said he was not influenced by them.
Meanwhile, the sign on the Scruggs Law Firm door on the Square has been taken down. A receptionist answering the phone said the firm was "apparently not closed " since someone was still answering the phone. However the receptionist referred any questions to John Keker in California who is representing Scruggs in the criminal procedure. Keker decline to comment about the status of the law firm.
(The Associated Press contributed to this report.)
–alyssa@oxfordeagle.com
Alyssa SchnuggStaff Writer
Oxford Eagle
662-234-4331 Ext. 245
I believe that this qualifies as quality journalism. A big round of applause to Alyssa for this, and all the great reporting she has done on this case.
Wow.
Catfish — I totally agree — looks like a carefully researched and written article! Good for Alyssa and the Eagle.
Gosh AlMighty Alyssa and the Eagle you have done us proud. Thanks to NMC and lotus for keeping us on the edge of our seats as if we were there watching, and whoever made the picture we mustnot leave out.
How do you subscribe to RSS feed?
Show ‘em how it’s DONE, Alyssa! Yezzindeedy.
advocate 5, I’ll ask the webmaster and get back to you.
Thanks, Lotus
Kickin’ ass & takin’ names, Alyssa!
Alyssa dahlink, check out your phans at Phunk and Wagnalls. W00T!
I do not see a direct link to State Farm or an ad link. However, I do see a change in the tone of reporting here. Do you have ANY financial relationship with State Farm or other insurers who are impacted by this site?
Are you kidding steve?
I have no financial relationship with State Farm or other insurers except that I do purchase some individual insurance from SF and have for decades.
What precisely do you think the “change of tone” represents? This thread has exactly nothing to do with State Farm. Zero. It has to do with testimony about a bribery scheme.
If there’s an ax griding sound hereabouts it’s coming from your comment.
I ask because slab notes the KC Star has placed Todd GRAVES at Disney at the same time YOU placed him committing a criminal act in Mississippi. Who is right. I assume bias is involved in one of the reports AND Lotus did note she needed money awhile back thus making my question reasonable.
LOL, Steve.
Don’t feed the troll, IMO.
Objection to the next to last comment, Your Honor. Move to strike.
Disney has trailor rides in MS? Huh.
Katy barr the door..Kitty cats and all.
That is HIGH-Larious. Only someone seriously askew in their view on this whole sad episode would come up with an accusation like Steve made. Blogging is blogging Stevie boy, if the truth or the direction the facts are headed hurts, that is just the way it is. I would guess that MOST on this blog are not even ‘friendly’ to state farm after the whole scenario that has played out but I would guess ALL on the blog are unhappy about the way justice and the legal profession in that state have been damaged by what these clowns did.
KC Star has placed Todd GRAVES at Disney
KCStar didn’t place Graves at Disney, Grave’s placed himself at Disney World and they quoted him or repeated what he told them.
ewww they used my mug shot. – Lotus 10.
Thanks all.
Lydialaw…please don’t think of it as a mug shot! It’s more of a shining tribute to your phantastic reporting! (Plus it was the only picture I could find)
Great job!
(ccvz / humpty dumpty – Phunk & Wagnalls)
advocate 5 (and everybody else), here’s riddenword’s tutorial on setting up our RSS feed on your computer:
Hope that does it for ya.
steve 11, though your question is utterly dingbat, I’ll answer it. I can’t imagine what change in tone you think you’re seeing here.
I have never had any kind of relationship, financial or otherwise, with State Farm (unless you count knowing a kid in high school who I think ended up working for them), and I must own my shock at learning that somebody as savvy as NMC actually still does business with them.
Now go away.
Lydia 19, I LIKE your mugshot. You cute. And I don’t think I’ve had a chance yet to say how glad I am that your son’s okay but sorry I am that your car ain’t. (On the whole, better the car than the kid, though I appreciate why you might entertain a moment’s indecision . . . )
Lotus, I can tell you that my experience with claims (which has not been catastrophic but includes mishaps like the city backing up about 3 feet of raw sewage in my office basement, or a giant piece of plaster ceiling cutting loose in the front office after being up there for about 130 years) has been exemplary– at the level of “that’s it?” over how little I had to show to get them to pay the claim, and really remarkable compared to my experience handling claims with other companies and for clients. That said I have never experienced a community wide catastophy that would have caused that division of SF to descend on the community, and am not at all likely to do so unless the New Madrid fault does a REALLY big dance.
NMC, how about some more criticism you State Farm lover you. You have obviously been spending too much time on this Scruggs fiasco and practicing law, since it seems like weeks since we have had one of your music posts. Aren’t we a whiney, demanding bunch?
Be careful about mentioning music this close to a reference to New Madrid’s next big dance, IAG. I’m really hoping to miss that one (even while I endorse your request most heartily).
I think it’s time for a Faulkner post IMHO!
irate, we’re always open to guest-posts, y’know. Care to let fly?
Hmmm…give me some time and I’ll deliver…
It’sAllGood, work and that day of liveblogging have totally messed up my ability to post music posts, or food for that matter. I wanted to post about the new City Grocery menu, for instance, and am going to but MAN it’s been busy around here.
Finally got around to this most excellent article by Alyssa Schnugg. Very fine work!
ItsAllGood / 25 – if you’re music hungry…we do a daily (or bi-daily) music post. Ours aren’t quite as graduated/mature/solid as NMC’s (all of those adjectives with respect)…but they come from the same love and respect of the roots.
http://www.PhunkandWagnalls.net, if you’re interested…(no intention of a shameless plug…just thought I’d pass it along)
Lotus 23: Thank you. But get this. Yesterday afternoon my daughter who was driving up from Florida to visit, got into a wreck in Alabama. Middle of nowhere. She’s OK too and the car isn’t totaled. But it was a stressful evening dealing with it all. She’s in a hotel awaiting her car repairs to be done.
And somehow I manage to work through all this!
Show must go on though, right?
I see in this morning’s news that y’all have gone and pissed off the New Madrid Fault. Y’all better pipe down … lotsa evil forces are rumbling around here.
New Madrid Fault Litigation Group. I can see it now. Who would the members be?
I’m sure it hit Madison county Ill pretty hard and wasn’t that one of the “magic” jurisdictions that several dubious cases were held in? Probably some kind of GOB network in that neck of the woods to make that a magic jusidiction wouldn’t ya reckon? That might be a good place to start JSH.
http://www.insurancecoverageblog.com/archives/industry-developments-this-story-is-worth-pointing-out-for-the-headline-alone.html