Below is a simplification of some of the alleged relationships and charges: The government alleges former HealthSouth Chairman and CEO Richard Scrushy gave payments totally $500,000 to former GovernorMore >>
The government alleges former Governor Don Siegelman demanded $100,000 from Jimmy Lynn Allen threatening him with economic harm to his business if the money was not paid. Allegedly if Allen paid the More >>
Many of the government allegations against former Governor Don Siegelman and his former chief of staff Paul Hamrick revolve around their relationship with former lobbyist Clayton "Lanny" Young. YoungMore >>
Lanny Young will play a key role in this case. The prosecution's case is relying on the memory and believability of Young. Defendants will primarily portray Young as a a convicted felon who will say anything to get a reduction in sentence and charges on guilty pleas Young has already entered.
Young pleaded guilty in 2003 to conspiracy to commit bribery for providing more than $100,000 in money and gifts to Siegelman's executive secretary and former acting director of the Alabama Department of Economic and Community Affairs, Nick Bailey. He also pleaded guilty to paying a $65,000 bribe to then Cherokee County Probate Judge Phillip Jordan. The money was paid for Jordan's help in getting the county commission to approve decisions that helped Young and his clients in a landfill deal. Young has been cooperating with federal officials and received the promise that other counts would be dropped and he would be given a lighter sentence as long as he continued to cooperate with prosecutors.
Young gave cash and payments to Nicholas Bailey to induce Bailey to help advance business interests. In 1999 as a result of Bailey's assistance, the Alabama Department of Revenue issued a tax reduction resulting in substantial financial savings to one of Young's clients. The client, Waste Management, owned a large landfill located in Emelle, Alabama. Young was paid $500,000 by the client for the effort. The Emelle case figures prominently in the current case.
Nicholas D. Bailey formerly served as Don Siegelman's executive assistant and as the acting director of the Alabama Department of Economic and Community Affairs. In January 2003, Bailey pleaded guilty to two counts of conspiracy to commit bribery and wire and honest services fraud. The charges stemmed from Baileys arrangement with Lanny Young and Montgomery architect William "Curtis" Kirsch from January 1996 to April 2001.
Bailey was found guilty of using his authority and power to get others to use their authority and power to advance Lanny Young's business interests with the state. He admitted to collecting at least $19,000 dollars in consulting fees from Young which went unreported to the IRS. Bailey also admitted soliciting and receiving over $21,000 in cash and other things from Kirsch between January 1999 and April 2001. In exchange Bailey used his position and influenced others to use their position to advance Kirsch's business interests with the state. Bailey is another key witness for the prosecution.
Jimmy Lynn Allen was a toll bridge developer who claims to have feared economic harm to his business if he did not send money to Siegelman. He only sent 40% of the $100,000 requested and in return was allegedly given the right to name the director of DOT should Siegelman get elected. His employee, Mack Roberts, subsequently became head of the DOT and allegedly protected Allen's business interests. Allen allegedly received help with toll bridge construction in Tuscaloosa County and on the use of Rainline.
Forrest "Mac" Marcato is a Montgomery inventor who, with investment from Jimmy Allen, developed a road-striping product (Rainline) used on state highways. Rainline was used by the DOT on Alabama highway projects during the Siegelman adminstration. Siegelman allegedly solicited $250,000 from Marcato and threatened him with damage to his business interests if the money wasn't paid.