Some of the material from the Courtroom Chronicles relating to the now sentenced former Siegelman executive secretary Nick Bailey.
From Opening Statements:
Kilborn begged the jury to "return Don Siegelman to the people for their judgment." He went over his definition of reasonable doubt with the jury telling jurors "when you hear something that makes you hesitate...evidence of people trying to save their own skin...that's reasonable doubt."
"Y'all are going to hesitate so much you're going to leave skid marks to the statehouse," Kilborn said waking up some slumbering members of the audience.
Kilborn laid the blame for Siegelman's problems on those close to him, such as Nick Bailey. He said Bailey and others violated Siegelman's trust and "used the executive branch to line their own pockets."
Lanny Young was called a "con artist...When his lips are moving he's lying."
Kilborn kept trying to insert information about the length of sentences Bailey and others could face if they didn't please the government. Judge Fuller had to hold a sidebar with attorneys, complete with the "white noise" to keep anyone else from hearing what was being said.
That didn't slow down Kilborn who proceeded to get the information he wanted out to the jury. Although, the judge upheld Louis Franklin's objection, the jury heard what Kilborn wanted them to hear.
At times Kilborn almost sounded sorry for Nick Bailey. Siegelman's counsel talked about how many interviews Bailey, a key witness in the government's case, had with government agencies over a four-to-five year period. "They have beat on him and beat on him until they believed the story was right."
Nicholas Bailey Time
Nicholas Bailey is on the stand and we will be starting in just a minute. During the lunch break former governor Don Siegelman, answering questions from the press, said U.S. attorney Louis Franklin was in Siegelman's words, "losing it."
Judge Fuller just said, "We're not going to lose our sense of humor."
Steve Feaga is starting the questioning. Feaga is talking about Bailey's plea agreement with the U.S. government and he is asking Bailey if he understands the government will make a recommendation concerning sentencing in his guilty pleas already entered."
Bailey looking a bit nervous on the stand.
Feaga is now talking about the Fall of 2000. Bailey says he saw Young "too often, frequently." Bailey was asked about dinner meetings involving Young and who picked up the tab. Bailey, after a long pause, said Young picked up the tab " because he wanted too."
Feaga is now asking about Bailey's duties and responsibility at ADECA. Bailey says he oversaw over $200 million in grants.
Bailey says his opinion is Young contributed in excess of $250,000 to the Siegelman campaign in various forms. Objections are over Bailey's knowledge. Bailey says he flew on planes provided by Young. Bailey says there were two or three donations in excess of $20,000 to the campaign. Objection again to Bailey's knowledge. Judge says Bailey was integrally involved in the campaign and could say based on firsthand observations about the contributions. "Based upon what I saw and heard I have no reason to believe his estimate of $350,000 is wrong." Bailey was talking about Lanny Young.
Feaga is asking Bailey what the government has asked him to do? Art Leach is objecting. His objection is overruled. Bailey answers "to tell the truth."
Bailey is being asked about how he met Gov. Siegelman and what his duties were.
Bailey characterizes himself as both a friend and employee who spent more time with Siegelman than anyone else except Siegelman's wife and children during the 1994 campaign.
Bailey says he talked to Paul Hamrick and asked him whether or not Lanny Young was paying his (Hamrick's) salary and Hamrick told him Young was paying his salary." Feaga is asking about campaign contributions from Lanny Young and Bailey says Young perhaps contributed over $100,000 to the campaign in funds, travel and other things.
Bailey says after a question he was a "confidential assistant" to Siegelman when Siegelman was lieutenant governor.
He is being asked by Feaga how often he saw Lanny Young. Bailey's reply is every few days. Bailey says he and Hamrick "ate, drank, and hung out with Lanny a lot."
Bailey said Young was with the governor at least once a week. Bailey says Siegelman told him that he(Siegelman) knew that Young was a contributor to the campaign.
Questioning turns to the Talladega Superspeedway alcohol sales legislation. Bailey says he talked to Hamrick about the legislation. Bailey says he talked to Governor Siegelman about the legislation. Specific date is August 1997 as told by Feaga, but Bailey says he can't be sure of the date.
Objections are overflowing in the courtroom, most of them are being overruled.
Bailey says Lanny Young told him, he wanted credit for the beer sales legislation at Talladega when the Bill passed. Bailey says he was in presence of Siegelman, speedway officials, when Siegelman gave Lanny Young credit for getting the legislation passed.
Bailey says he traveled with Siegelman and sometimes Hamrick to the speedway with the assistance of Lanny Young.
Feaga has moved on to questions about 1998.
Bailey says he was paid $1900 a month by Young and was also paid by Jim Lane. Bailey says this allowed him to work in the campaign. Bailey says his duties were administrative, fund-raising. He says he traveled with Siegelman to all 67 counties. Bailey says he spent more time with Siegelman during the 1998 campaign than anyone.
Sorry we had a glitch in the system. Bailey has testified Young contributed about $250,000 in money, merchandise, transportation. He says Young told him that was how much he had contributed. After numerous objections the judge said he would allow testimony by Young as to Bailey's firsthand knowledge. The judge has ruled the prosecution needs to get specific about who "we" is in the conversation.
Bailey is now testifying as to his knowledge of the Cherokee County landfill situation. Bailey says he talked to Young who told him, Young want the administration to make calls for him to Cherokee County to help make the deal happen. He said he could not say he discussed this with the governor, but that Lanny Young brought Probate Judge Jordan to meet with Siegelman. He says he can not say for sure the Jordan met with the Siegelman, but he knows Phillip Jordan met with Hamrick in the lieutenant governor's office in 1995-1996.
Bailey does not often sound sure of himself and seems not to want to give or perhaps not know specific dates many events took place.
Bailey says after Siegelman became governor he served as "executive secretary."
Bailey says Lanny Young delivered him a report and "asked if I would discuss it with Jim Hayes (Revenue Commissioner) to see about a favorable ruling for Waste Management."
Bailey says Siegelman told him to "help Lanny." "The governor approached Jim Hayes and I and asked what we were discussing and the governor said 'help him if you can."
Bailey says he went with Lanny Young and the Governor to meet with Waste Management officials in 1999 at dinner in Montgomery and a sporting event meeting. The governor, Claire Austin at an event coordinated by Young and Austin. He also mentioned Chuck Compagnee (sp) of Waste Management and says Austin was also representing Waste Management.
Bailey says he, the governor, Young, and Hamrick had an agreement and understanding as to Young's access to the governor.
Talk has turned to fall of 2000 and Bailey's role as acting ADECA Director. Bailey says he administered over $200 million dollars in grants.
Bailey says he selected Lanny Young to build warehouses that would be great for the state. Bailey says Hamrick and Siegelman ultimately signed off on the Goat Hill Construction project which was ended when Eddie Curran started writing stories about the effort and raised questions of impropriety.
Bailey says the agreement to do things for Young lasted until at least 2001. When asked why, Bailey says "he helped us when we needed it." Bailey says he was given about $25,000 to invest in real estate.
Talk has turned to the motorcycle the governor wanted. Bailey says Siegelman ordered a motorcycle from Honda at a Detroit auto show and had it delivered to a Honda dealer in Montgomery. Bailey says the governor paid for the cycle with a personal check approximately in December 1999 before Christmas.
We're having a few lawyer conferences with the judge at the moment. We went straight into break from the mini-conference.
Questioning has resumed. Bailey is questioned about vouchers to pay Young for G.H. Construction project dated February 01.
Bailey says project ended in a short time after that.
Roughly $80,000 was the amount of one voucher according to Bailey.
Bailey is being asked about money Young owed to someone Anthony Fant(sp) of Bradshaw House Galleries, former treasurer of Alabama Democratic Party, in the amount of $100,000. Bailey says he asked Young to repay the debt and described the conversations as "not friendly."
Bailey is talking now about a check from Lanny Young to Bailey and another check from Bailey to Lori Allen in the amount of $9,200. The cashier's check from Lanny Young to Bailey was for $9,200. The check was dated January 20. Bailey says it was after Siegelman purchased the motorcycle. Bailey says he asked Young for the check. According to Bailey the governor and Lanny had a meeting at the capitol sometime between December when the governor bought the motorcycle and when the check was written. Bailey says Young told him he (Young was going to be a partner with the governor) on the motorcycle. Bailey says Young told him the governor asked him for $9,200.
Bailey says he "made the suggestion to Young" that Young give the money to him rather than directly to the governor.
Bailey says the governor asked him to make the $9,200 check out to Lori Allen, the governor's wife.
"I believe I gave the check to the governor's secretary," said Bailey.
"The governor approved the lease," says Bailey talking about the warehouse development project. Lease allegedly signed in December 2000.
Questioning now about 4-wheel vehicle delivered to governor's mansion in December 2000. Bailey says Young delivered the ATV to the governor's mansion according to Bailey. Bailey says the governor told him it would be good if Siegelman's son Joseph had a vehicle to ride with Lanny Young's son. Bailey says he then suggested it to Young and the vehicle was delivered. Bailey says he later told the governor the vehicle should be property of the state.
Bailey says Siegelman's legal adviser in December 2000 may have signed Governor Siegelman's name to a check related to the G.H. Construction project.
Bailey is being questioned about a check from himself to Lanny Young in the amount of $10,503 and some cents for "repayment of loan" plus interest. The check is dated June 5, 2001. Bailey says he found out about an investigation going on involving Lanny Young and Bailey says he wanted to help Young by repaying him. "I don;t think there was anyone in our administration that didn't know about it." (The investigation).
Bailey says he talked to Siegelman about the investigation and the plan was to say he borrowed money from Lanny to take part ownership of the motorcycle and then pay Lanny Young back the money he paid for the motorcycle but disguise it as a loan plus interest.
Oops! Steve Feaga just called Nick Bailey - "Lanny Young." Bailey said, "I've been called worse."
Sorry folks we've lost some stuff due to the gremlin in the courtroom.
Bailey talked of a $2,973.35 check he wrote to Siegelman on October 16, 2001 to "finalize the plan."
The check comment said "balance due on motorcycle." Bailey says the check payment occurred at law offices.
Now they are talking about Mack Roberts and Jim Allen and an agreement to make a $40,000 contribution. Bailey says Roberts and Allen met with Siegelman and then Bailey met with Roberts and Allen.
Feaga says Jim Allen was backing Fob James prior to the meeting and Bailey agrees with him.
Bailey says he was present at a meeting with Don Siegelman. At the meeting the governor allegedly met with Richard Scrushy consultant Eric Hanson. Bailey says the comments made by the governor were Scrushy had given $350,000 to the Fob James campaign and to make things right Scrushy needed to contribute at least $500,000.
Feaga says the prosecution has the timetable "narrowed down to between January 1999 and July 26, 1999."
The judge keeps overruling defense objections. Bailey says he saw Scrushy at the governor's office but he can't remember the date.
Bailey says he saw the check in the area of the governor's office and the governor told him Mr. Scrushy was "halfway there." Bailey says he asked the governor what Scrushy would want for that and the governor told him a seat on the CON Board. Bailey says Siegelman asked him if there would be problem with that and Bailey says he said, "I don't think so."
Check was dated July 19,1999. Feaga mentions Scrushy was appointed to the board a week later.
Sorry we've missed some more stuff. Bailey is being asked if he ever observed Scrushy at the governor's office. Bailey says he did not physically see Scrushy hand the governor the check.
Bailey says it was after a meeting between Scrushy and Siegelman that Baily saw the check.
Art Leach is in one of his usual 2-out-of-3 question objection periods.
Bailey says he told the government initially that it was the day Scrushy met Siegelman that the check was delivered. Bailey said he later changed his story and he isn't sure when the check was delivered.
Feaga raises the possibility the check was pre-dated.
Bailey agrees he is not sure when the check was actually delivered.
Feaga asks about instructions Bailey may have gotten from the governor relative to the Scrushy appointment. Bailey says the governor told him to call Margie Sellers and tell her the governor wanted Scrushy to be vice-chair of the CON Board.
Art Leach is still objecting. Bailey is asked about a bank account at First Commercial bank. Bailey says he was requested to open the account by the governor "an Alabama Education Foundation Account." Bailey says he deposited a HealthSouth check to the account.
Bailey Part II
Here we go again. We're about 25 minutes or so before the resumption of testimony in this case. Nick Bailey will be back on the stand.
As to the WWF confrontation that seemed ready to break out in the courtroom Tuesday between U.S. attorney Louis Franklin and Scrushy attorney Terry Butts. Butts tells wsfa.com that if it had come to it, it would have taken him three minutes to end it. As for U.S. attorney Louis Franklin, you have to give him credit.
Franklin was not looking to answer questions as he came out of the building yesterday but when cornered by the converging press, all of whom escaped their designated pen, Franklin admitted he was getting a bit frustrated at defense tactics,"They had been digging at us all day," said Franklin, "It just finally boiled over."
As for the defense, attorney Fred Gray representing Richard Scrushy, told wsfa.com "We are not trying to frustrate anybody."
Scrushy attorney Art Leach said yesterday he believes prosecutors will take about another hour with Bailey before the defense takes their turn. Leach said he expects most if not all the rest of the day to be taken by the defense's questioning of Bailey.
Now as to Bailey. At times he was very believable on the stand yesterday, but at other times he sounded like he was unsure, especially about times and places and he even sounded on a few occasions as if he had been coached.
Bailey will be under fire after the prosecution gets through with him today. Siegelman attorney Vincent Kilborn said yesterday the defense was going to "bury Nick Bailey."
This case is probably going to come down to believability. The only people that may have a clue as to what the jury is thinking at this point are the attorneys who by now have gotten as much information as they can get their hands on about each juror. Will the jury buy the argument the prosecution's witnesses are just trying to get themselves out of trouble or will they buy the prosecution's argument that there was a grand conspiracy run by a mafia like group headed by the former governor. As to Scrushy, will they buy the story of 'it's just a campaign contribution" or will they believe Nick Bailey when he says there was a quid pro quo. Who knows. Stay tuned.
The scorecard from yesterday is simple.
The Prosecution: +- Picked up some points with Bailey's testimony. Lost points on the same testimony. Lost points for another explosion by an attorney, but how long will the jury remember that?
The Defense +- I think folks have had enough of Art Leach's objections. The strategy could backfire, even though Leach told wsfa.com yesterday he was below his objection ratio of 2-out-of-3 questions. The defense was helped by Bailey's inconsistency with prior testimony and by the fact sometimes Bailey could not be specific about where and when events happened. They may have been hurt though by the things Bailey did remember clearly.
Stay tuned, more action to come shortly.
Here We Go Again
Everyone is in place and we're ready to go. Nick Bailey has taken the stand to resume his testimony and the judge has entered the room.
Steve Feaga is ready to start. Feaga starts with the meeting with Jim Allen and Mack Roberts. Bailey is not sure that he has seen the checks written by Allen. Bailey says he had no part in accepting those contributions.
Bailey says he opened a bank account and met with Mr. Scrushy at HealthSouth and picked up a check for $250,000. Gov. Siegelman was with Bailey. Bailey deposited the check in the account at First Commercial Bank.
Bailey says he does not know when the deposit happened. He said on questioning by Feaga that it was after the failure of the lottery referendum.
Bailey says a check from IHS and a check from Scrushy was not reported under the Fair Campaign Practices Act to the Secretary of State. Bailey says the governor told him Scrushy didn't want his wife to know he was supporting the Alabama Education Lottery.
The Scrushy defense team has stated previously Scrushy had a moral objection to contributing to the lottery himself.
Bailey says he worked at ADECA until the G.H. Construction project ended and then was pulled back into the governor's office.
Questioning has now turned to Rainline and after Mack Roberts was highway director. Baxley is objecting to the method of questioning. Another sidebar is underway out of our hearing range.
Questioning resumes Bailey is being asked about Rainline. Bailey says he was told by various people in road construction that the state could be using other products besides Rainline. Bailey says he talked to the governor who told him, "I will talk to Mack Roberts and he will take care of it."
Questioning has returned to Anthony Fant and Bradshaw House Galleries. Bailey says the governor's campaign owned stock in a Fant interest called ATII. Bailey said he was not sure the governor had stock in the company.
Bailey is asked if Eric Hanson told him what Richard Scrushy wanted from the governor. Bailey says "control of the CON Board." The prosecution has entered into evidence the check from HealthSouth dated 5/18/2000. He says he did not pick the check up but it was given to him by the governor. He did not participate in the meeting where the governor got the check. He did not make an endorsement on the check to deposit it. He can't recall if he had a deposit slip. Bailey says he saw Scrushy at Scrushy's office at HealthSouth. He has no recollection on the date the check was received. Bailey says he did not participate in any discussions with Scrushy about the check. Bailey says Siegelman went into the office with Scrushy.
The defense has turned Bailey over to the defense. There is a motion being discussed at the bench with the judge.
New post time.
Bailey Questioning by Defense
David McDonald is questioning Mr. Bailey for the Siegelman team. McDonald says Bailey has spent five years of Bailey's life being questioned by the defense. McDonald asks Bailey if he has been coached. Bailey says no. Bailey is asked if the testimony he has given to Steve Feaga was completely different than the testimony Bailey gave on Dec. 21, 2001. McDonald says we're going through every bribe you've ever taken.
Nick Bailey smarts off at McDonald, "Do you want me to write this down?" Bailey says he took $55,000 from Lanny Young. In 1998, Bailey took $19,000 from Young. Bailey says that was salary for the campaign. Bailey says he did not report it on his tax return and filed a false statement with the IRS.
Bailey says he needs his memory jogged. Bailey is asked about $20,000 in the year 2000.
Bailey is asked about meeting Young in cars and being given money in bags in amounts from $3,000 to $7,000 to $10,000 in cash. Bailey says this didn't happen.
McDonald asks if Bailey would like to see his plea agreement with the federal government after he asks Bailey if he got at least $100,000 from Young over time.
Questioning turns to architect Curtis Kirsch. Kirsch allegedly gave bribes to Bailey in the G.H. Construction project fiasco.
The defense gets Bailey to say Kirsch took over construction of property Bailey owned.
Kirsch according to a plea agreement Bailey pleaded to accepting over $21,000 worth of services from Kirsch.
Siegelman defense wants to enter plea agreement into evidence for the jury. Paul Hamrick's attorney is objecting to something and there is another sidebar.
Bailey finds something in the courtroom amusing as he is sitting on the stand laughing as we all wait for the sidebar to end.
Exhibit has been admitted.
Exhibit shows Kirsch gave Bailey over $21,000 in the form of his services or services of others. Kirsch also paid other contracting debts amounting to $17,000. The defense also shows where Kirsch paid $1,000 in utility bills. Bailey is being asked about mortgage payments of at least $1,000. Bailey says there may be others.
Next up on McDonald's list. Bailey's financial relationship with Jim Lane, who Bailey confirmed was trying to get a $400,000 contract with the state was renewed.
Bailey says Lane "loaned him $30,000." Bailey says he has repaid this loan. Bailey was asked who helped him repay the loan. He says he did not pay it back with money he earned from the state. Bailey says neither Young, Gordan, Milton McGregor or Anthony Fant gave him any money to pay back this loan.
Bailey is asked about a $20-25,000 loan. Bailey says he can't say for sure he paid it back. Bailey says he did not pay it back from his salary.
Bill Gordan works for Jim Lane. Bailey says he doesn't recall Bill Gordan giving him a nickle.
Milton McGregor's name is coming up. Bailey says he got 4 tickets to a Las Vegas show from McGregor.
Anthony Fant is the next name to come up on the "list." Bailey says he doesn't remember how much money Fant gave him. The defense mentions the sum $50,000 and Bailey says he can't argue with that at the moment.
Bailey says he benefited from $50,000 from Keith "Tack" Mims although Bailey says he didn't get the money directly. Bailey agrees Mims gave a loan to Trava Williams on a real estate transaction where Williams bought real estate from Nick Bailey.
Bailey agrees he got about $200,000 in the form of bribes on which he paid no taxes. In response to the statement "It's not a bad days work" from McDonald. Bailey waits and then says,"I'm not sure what you're getting at." McDonald says he's talking about money made from other than "legitimate" work he was doing with the state. Bailey responds,"It's all relative."
Bailey asks for a restroom break.
The court is back in session and the judge is reminding the jury to bring up any contact with persons related to the case outside the courtroom to talk to the marshals. Something was brought up as to a possible relation of an individual mentioned by Nick Bailey but not named on the witness list.
Bailey is being questioned about Jim Lane again. He is now being asked about meeting with the FBI and the summary of events presented by the FBI. Bailey is being asked about a meeting with the FBI on June 5, 2003.
McDonald returns to money from Lane given to Bailey. Bailey says what he said back then was what he remembered back then was what he remembered back then and what he remembers now is what he remembers now.
McDonald says $70,000 given to Bailey from Lane and reads a description from FBI document that says Lane on at least three different occasion gave Bailey money in addition to borrowing money from Lane he got a salary from Lane during the campaign.
Bailey admits as true the following:
From Lanny Young he received: $55,000 in 1996, $19,000 in 1998, $20,000 in 2000 (no taxes paid on any of that). Bailey has admitted to getting over $100,000 from Young so there is more money not listed.
From Anthony Fant, Bailey admits he received $50,000. Bailey says he doesn't know whether or not he paid taxes on the money.
Curtis Kirsch paid Bailey as agreed to by Bailey's testimony: $21,000 in cash and services, $17,000 in form of housing fix-up, another $1,000 for utility bills, $1,000 in mortgage payments other payments questioned.
Bailey agrees he got $20,000 from Lane and paid no taxes on one payment.
Bailey says the money he got from Lane for working on the campaign from Young should have been reported on the Fair Campaign Practices Act. Bailey says the campaign disclosure responsibility belongs with the governor as an in-kind contribution.
The second $20,000 Bailey agrees he did not report on his tax returns from Lane.
Bailey is asked if he told Gov. Siegelman about the $55,000 he was given by Lanny Young. Bailey replied, "No."
Bailey asked about the $19,000 salary he got from Young says if he got paid during the campaign from Young Siegelman knew it. Bailey agrees Siegelman got none of that money and reaffirms that he never told Siegelman about the $55,000,
Bailey agrees Siegelman knew nothing of the more than $100,000 he received from Young except for the $19,000 salary part.
Bailey says he didn't tell Siegelman about the money he got from Fant and that Siegelman got none of it.
Bailey reaffirms he paid no taxes on the $21,000 he got from Kirsch nor did he tell the governor nor did Siegelman get a penny of the money. He agreed to the same on work provided by other contractors. The amount of work on Bailey's house was $17,000. Bailey also agreed the same as to the utility payments and mortgage payments.
As to the $30,000 from Lane Bailey admits he did not tell the governor nor did he give him any of the money. The same as to the around $20,000 paid in salary.
Mr. Bailey can you tell me what the difference is between an absolute agreement and a conspiracy?
Objection from prosecution. "I have to know the difference between agreement and conspiracy so I know how to talk to these good folks on the jury so they don't get confused," says McDonald. The objections was sustained. The question will not be answered.
McDonald gets Bailey to say he entered in the agreement with Siegelman, Hamrick and Young in 1994.
N ow McDonald is taking Bailey back to the start of his working life as a loan officer at a bank in Cullman making about $25,000 a year.
Bailey admits he was significantly in debt in 1992-93 even though he was only paying the interest on a loan from First Alabama Bank. Bailey then says he does not remember missing payments and then admits he got letters from a loan officer at the bank, Larry Holt, asking him to pay.
Bailey admits he was in the cattle futures market and he had lost at least $55,000. He put a mortgage on a family piece of property to pay the debts.
Bailey says he met Siegelman for first time in late 1993. Bailey says he thought the lottery was a great thing for Alabama.
"I got lucky and his driver got sick and I got to drive in the campaign," said Bailey.
"I like to think that I was (a part of the inner circle of the campaign." "I respect him a great deal and still consider him a friend," says Bailey.
McDonald says Siegelman treated opponents with respect.
Now McDonald is going into the facet of Bailey's job that involved helping to collect the business cards of people who wanted to help the governor. Bailey says that's a fair assessment. Bailey agrees he would take the pictures people wanted taken with the governor. "You were a gofer," says McDonald and Bailey agrees.
Bailey disagrees with the assessment that he had nothing to do with the policy direction of the campaign.
Did you enter into an agreement with that man that you were going to do anything illegal or improper? Judge asks McDonald to restate the question. "Did you enter into any agreement in any form whatsoever in 1994...that when you got into office was illegal or unlawful?"
McDonald had previously called Bailey a chief business card holder and tie straightener. Bailey asked if that included the title of chauffeur.
Bailey says he does not know if he reached agreement with Siegelman and others about performing anything illegal as regard to Lanny Young. Bailey says he can't say whether the agreement was 1994 or 1995.
McDonald infers Bailey may have been coached. "Did you Nick Bailey in 1994 ever reach an agreement with this man who you stay you still love and respect that if he got elected to office he and you would do anything illegal as you define illegal? Response from Bailey no.
Lunch break coming. McDonald says he expects to have 1-1.5 hours left in the questioning of Bailey.
Bailey Continues, The Amen Corner is Here
Nick Bailey is back on the stand and we'll get started shortly. Meanwhile, I just had a conversation with one of the member's of Richard Scrushy's "Amen Corner." This is a group of about 20 folks who came from Birmingham as part of a group called "Special Forces for Jesus."
Self-proclaimed Gospel rapper "Big Prophet" says his contingent is led by Pastor Conner and is comprised of "friends, spiritual supporters" for Mr. Scrushy. Big Prophet says he has known Mr. Scrushy for 4-5 years and he says the charges against Scrushy are "trumped up" and an "attack from the enemy." Prophet says he has an album out called "God's Love" and is on the radio in Birmingham on 95.7 FM Gospel Jam.
We knew there had to be an entourage here at some point.
Questioning has begun again and McDonald is talking to Bailey about a series of letters from the bank reminding Bailey of missing interest loan payments from the bank in 1992-93.
Discussion moves to whether or not Bailey talked to any members of the prosecution team during the lunch break. Bailey says he did not. " When is the last time you have ever talked to a gentleman named Jack Brennan? " Yesterday replies Bailey. Bailey says he doesn't know who Brennan works for. McDonald says Brennan does not live in the State of Alabama. McDonald says Brennan is employed with the TVA and has taken a vacation due to a vendetta against Governor Siegelman. Bailey says Brennan did not tell him Brennan was on vacation. Bailey says he met Brennan in passing yesterday coming into the courtroom. Bailey says he last had a substantive conversation with Brennan sometime in 90 days. Bailey says he has some problems remembering dates.
Brennan is a former FBI agent. Bailey says they talked about some information not in the document of crimes. Bailey says "I can't talk" "I can't swear to anything that was talked about."
McDonald is lashing Bailey not being able to remember a conversation within the last 90 days yet being able to remember specific conversations 10 years ago.
Bailey says he has not had a conversation about how much time Nick Bailey is going to get and prison never came up in talking with Jack Brennan. McDonald has been directed to ask a question by Judge Fuller, "We are not going to bandy back and forth in this courtroom."
Bailey is being asked about Matt Hart. Bailey says Hart is an employee of the government and he talked to him in Birmingham but he can't remember the date or substance of the conversation. Hart helped bring the Bobo case against Siegelman. Hart is an assistant U.S. attorney.
"There were a lot of things to look at...so yes we spent some time together," says Bailey in questioning about a meeting with federal government investigators and others.
It's chart time. The chart is a schedule of meetings between Bailey and federal investigators. The first meeting is December 21, 2001. Bailey agrees he was a target of the investigator. He had taken a number of bribes by then. Bailey agrees he hired George Beck to defend him against those charges. McDonald calls Beck "one of Alabama's finest attorney."
Bailey hired Beck in May. Sometime between May and December there was a decision to meet with prosecutors. Bailey says he knew it was a possibility the feds had something on him. Bailey agrees he wanted to cooperate with the government so they would not bring charges against him. Bailey agrees that if charges were brought he wanted to meet with prosecutors to minimize the charges to be brought against him.
McDonald says there was a court reporter who took down a transcript at the December 2001 meeting. Bailey agrees there were at least a dozen people in the room who asked some very pointed questions.
McDonald says Bailey was asked at the meeting about Kirsch. Bailey said he told them he was not involved with Kirsch. But the government had the mortgage check. Bailey was asked about work on his house from Kirsch and he said no and the government indicated Bailey was not telling the truth. Bailey agrees he lied to the federal people also about his relationship with Young.
Bailey says attorney Hart wanted information "about our administration."
Bailey says Hart was "passionate in his questioning." Bailey says he and his attorney went to talk about G.H. Construction and Hart started asking about other things involving Governor Siegelman. "It was our understanding we were there to talk about the G.H. Construction Company."
Bailey says Siegelman had limited knowledge of G.H. Construction. Bailey says the government never really got around to G.H. Construction. "What he really wanted to know about was the motorcycle," says Bailey.
McDonald says in reference to allegations from Hart, Bailey said "No Mr. Hart I borrowed money from Mr. Young so I could buy a motorcycle from Gov. Siegelman."
McDonald is now saying the next meeting was June 2003. He now is talking to Bailey about how much time Bailey might have to spend in jail and whether or not he thought about it. Bailey says he hasn't had a good night's sleep since early 2001.
Bailey says he is not sure about any other meetings. Bailey agrees his attorney was having conversations with prosecutors between those two meetings. He says his attorney talked with them about the status of the investigation.
McDonald says plea agreement reach with government on June 23, 2003. Bailey agrees he pleaded guilty to conspiracy with Lanny Young, taking money from Kirsch, one count of tax fraud about failure to report one of the bribes.
Bailey says he got a tax notice based on Eddie Curran's story in the Mobile Press-Register and he has paid the notice. Bailey agrees he has not gotten notice of any prosecution in regards to the $100,000 he failed to pay taxes on. "I didn't fully read the notice," says Bailey. Bailey says he sent a check to the Alabama Department of Revenue and his attorneys will file appeal on the notice later.
McDonald is now talking to Bailey about telling the truth and testimony of October 4, 2004 in front of Judge Clemen, Chief Judge of the Northern District. McDonald says Fuller is too "young and handsome" to be a chief judge.
Bailey says he met with different prosecution team members at different times in preparation for the Tuscaloosa trial. Bailey says no one in the room participated in that trial.
Bailey agrees he had not been sentenced for crimes committed three years earlier.
McDonald is relating transcript material about a conspiracy with Gov. Siegelman and others. Bailey says his answer was "No sir."
Bailey keeps saying there was a reason for his answer and McDonald says we'll take that up later.
McDonald says "Mr. Feaga was sitting in the front row of that trial." Feaga rises and says no "I was sitting in the back of that courtroom."
Bailey says he stands corrected about there being no members in this courtroom that were at the trial in Tuscaloosa. Franklin was also sitting in the back of that courtroom.
McDonald is hitting hard on Bailey's answer that Bailey had no knowledge of unlawful conspiracy involving Siegelman and Hamrick. "In regard to that trial about Mr. Bobo, I said no."
We're in another meeting between the judge and attorneys.
We're back. McDonald is asking about what happened in court on October 4, 2001 and who Bailey spoke to leaving the court that day. McDonald goes back to Brennan working with both prosecuting teams.
McDonald asks if Bailey heard either prosecution team after his testimony in the October 4, 2004 say anything like "We better stop going after an innocent man."
McDonald is moving on now to a September 7, 2005 meeting. He has changed his mind and we are going to take an afternoon recess at this time.
We're getting ready to resume. Had a short conversation with a non-interested party who was in the courtroom who confirms suspicions in our room that Bailey has been looking at his attorney Beck during Bailey's testimony.
McDonald is questioning why Bailey hasn't served time for crimes committed in the past. Bailey agrees he hope's to get a "good recommendation" for "telling the truth."
Bailey agrees the prosecutors will make a recommendation concerning his sentence. McDonald says that one of Bailey's fears are that somehow members of the prosecution team will determine you have not testified truthfully. Bailey says he is nervous but has no concerns that the prosecution team will find his testimony untruthful.
"I hope and believe when I tell the truth these folks will give me a positive recommendation to the court." says Bailey.
McDonald is now moving on to the Certificate of Need board. Bailey agrees McDonald has established him as a gofer for Siegelman.
McDonald says Siegelman directed Hamrick to handle the appointment to the CON Board. Referring to Siegelman McDonald says,"It's like George Bush says, he's the decider." Bailey agrees Siegelman made the ultimate decisions.
Bailey agrees he knows Scrushy was a very wealthy man and a philanthropist. Bailey says he knew Scrushy had given a lot of money to the people of Alabama.
McDonald asks Bailey if he was involved in the health care field. Bailey says no and on other questions he says he hadn't given it any thought as to Scrushy's qualifications to be on the CON Board.
Bailey agrees that he knew Scrushy served on the board during the James administration but he didn't know about Scrushy's service under other governors.
McDonald is asking about Margie Sellers and her qualifications. McDonald asks about interviews Bailey had with the feds and discussions about who should be on the CNN Board.
Bailey says he never discussed qualifications. Bailey acknowledges he has no qualifications to determine who should sit on the CON Board.
Bailey agrees he was involved with Siegelman in the race against Fob James. Bailey agrees he knew Scrushy was a supporter of Fob James.
Questioning is turning to possible meetings between Scrushy and Siegelman. Bailey agrees he did not sit in on most meetings between the governor and those who went in and out of the governor's office although he was "generally aware" of who the governor was meeting with.
Bailey says there may have been two meetings but he is not swearing there were two meetings between Siegelman and Scrushy.
McDonald is asking about the date of the first meeting between Scrushy and Siegelman. Bailey says it was mid '99. "It was June or July."
Bailey says he has had discussions with the government about the date of a meeting with Scrushy.
McDonald says he's not accusing Bailey of any wrong doing in regard to the government showing Bailey calendars and flight logs and the date July 14, 1999. Bailey says the government has not asked him to say anything other than the truth.
McDonald said there's no dispute that Siegelman and Scrushy met. Scrushy says June 29, 1999 the government says the meeting was on July 14, 1999.
McDonald is showing a diagram that Bailey agrees is in his handwriting. Bailey agrees he was talking to federal investigators about the meeting. Bailey agrees he was asked to outline the governor's office on the day Scrushy met with Siegelman.
Names on the outline Richard, Loree (Skelton), Eric (Hanson). Also, Nick Bailey. McDonald asking about Bailey, Siegelman relationship "almost like a son."
Gina Friday was a secretary and her name was on the outline. Maryland Roe the governor's secretary was seated near Scrushy.
The governor's security staff was also on the outline as well as another secretary.
The emergency siren is going off. The judge explains to everyone that "Every Wednesday at 3:30 the siren in Montgomery is tested. That's a good thing."
Bailey agrees Scrushy went in the office to meet with the governor and everyone else stayed outside. Bailey agrees after Scrushy left the office Bailey walked in. "That day I was clear to my recollection."
McDonald to Bailey, "You were crystal clear Governor Siegelman opened his coat pocket and pulled out a check. You are crystal clear Governor Siegelman pulled a check out of his pocket and handed it to you. You were crystal clear that the amount on the check was $250,000. You were crystal clear Richard Scrushy signed that check. You were so crystal clear you went to a jury. You were crystal clear you swore to tell the truth. You were so crystal clear that this check signed by Richard Scrushy and given to Governor Siegelman you went to a grand jury for a second time. You went to a jury and told that jury that Richard Scrushy delivered a check to Governor Siegelman's office on July 14, 1999...but it wasn't true was it."
Bailey says I will agree it was not there possibly on the 14th.
McDonald asks Bailey if he knew the check never hit Alabama until after July 20th. McDonald says he has no evidence to contradict Fed Ex records that the check was not delivered until sometime after the 19th.
Asked about Siegelman thinking about appointing Scrushy to the board well before the meeting, Bailey responds, "Sometimes you borrow and shop before you buy,"
The second superseding indictment is brought to Bailey for review page 8 paragraph 19A. Richard Scrushy did and would pay to Don Siegelman $500,000 in two disguised payments of $250,000.
Bailey says the checks were written to the Alabama Education Foundation. Bailey says the purpose of the organization was to pass the governor's lottery. Bailey agrees Siegelman's record indicates support of education in Alabama.
Bailey agrees the foundation started as the Alabama Education Lottery Foundation.
Bailey says he helped found AELF. He says he assisted in the fund-raising in the lottery campaign.
Had to step out to take a call. Just now coming back in.
Talk has turned to Margie Sellers and the CON Board.
Got any idea how much Alva Lambert paid for his position?
"What did Mr. Scushy accomplish once he got on the CON Board which was worth $500,000?" Bailey says he didn't keep up with the actions of the CON Board so he couldn't say.
"Which conspiracy are we talking about," says Bailey. Now Bailey says he believes the conspiracy began in 1994, (Siegelman, Hamrick, Young)
How did Paul Hamrick introduce you to Lanny Young? Primarily as a campaign contributor.
Bailey says he met Young in spring 1994. Bailey says, "The conspiracy evolved over time ...when Lanny started giving us things in return for favors."
Bailey is adding information not asked for in his answers and has been admonished by the judge to simply answer the question about the plane.
McDonald is asking if Young even owned a plane in 1994.
Bailey agrees he has no evidence Young even owned an airplane. Bailey says that "it started out salaries, gifts, and plane rides that evolved over time."
McDonald is asking about salary or money paid in 1994 became a basis of this alleged conspiracy. Bailey says he doesn't know of anything.
"If Paul Hamrick was paid a salary by Lanny it benefited Gov. Siegelman," says Bailey. He says he does not know the amount.
McDonald is moving to 1995. McDonald is asking about Young owning an airplane in 1995. Bailey says no he doesn't have evidence. Money, bribes anything in 1995. Bailey says he can't recall.
1996. Any money from Lanny Young to Gov. Siegelman, bribes or otherwise? asks McDonald.
1997 any bribes from Lanny Young to Gov. Siegelman. "I'm not sure when any of these things occurred."
In 1998 I believe that was when my salary was paid by Lanny Young, says Bailey. Lanny Young didn't report the payments to the federal government. The reason I believe he did it was to conceal that payment to me," says Bailey.
1999 any bribe? Not that I'm aware of. 2000? No. Then Bailey says he believes January 2000 was the $9200 and the motorcycle.
More talk of 2000,2001,2002,2003. Bailey says No evidence of bribes.
Talk now turns to the "absolute agreement." This is the core of the conspiracy charges.
McDonald wants to know where the sketch is at that depicts the meeting that started the conspiracy. Bailey says it is not necessary to write anything down.
Bailey is attacking back. "There is not a single e-mail in any shape or form that shows there was any conspiracy that you engaged in some conspiracy with this man to deprive the citizens of Alabama of honest services or other unlawful conduct," says McDonald.
We're back to the motorcycle.
There was talk about conversations between Siegelman and Bailey about the governor's wife being upset about the purchase of the motorcycle. McDonald says Siegelman is doing what any husband would do and trying to make his wife happy.
Our provider went down again with problems from a denial of service attack. We're at a break in the action with disputes over a bill of sale document among other things.
We're back again after another meeting. Bailey agrees the bill of sale was signed in early 2000 when he gave the bill of sale to Gov. Siegelman.
McDonald is going more into what he says has been characterized by some as a "motorcycle cover-up."
Exhibit added showing check made out to Siegelman's wife.
Bailey agrees he had no criminal intent in making out the check to the governor's wife.
Bailey agrees he had no nefarious intent when he wrote the check out to Siegelman's wife because the governor asked him to.
Talk has turned to conspiracy between Bailey, Young, and Siegelman. McDonald brings up Gina Friday who drafted a document.
"I have not organized that many conspiracies," says Bailey.
Bailey agrees he wrote the check at the direction of Gov. Siegelman.
Bailey is asked if fiery describes the Governor's wife. Bailey says, "Yes sir."
Bailey is asked about Mrs. Siegelman's accident where she nearly bled to death.
The Judge wants to know where "we're going into this."
The U.S. has not made any allegation against Mrs. Siegelman.
The judge wants it kept to the 34-counts in this case.
McDonald says that the government's allegation's don't make sense. They are accusing this man of a crime and I want to describe how absurd that is with what they have been through.
Bailey is asked about telling the government that it was Bailey's idea to get an ATV to get Lanny Young to buy a 4-wheeler for the governor's son.
Bailey says the governor did not say, "Nick get Lanny Young to buy a 4-wheeler."
McDonald asking about inventory from the mansion.
Another discussion. We're getting close to the end of the day and I think everyone is ready.
We're back to mansion inventory and a review when Siegelman took over from Fob James. Bailey says there were a lot of items missing. He agrees he is familiar with the inventory.
More arguments about documents.
First bill of sale from 2000 coming back up. Shortly after the motorcycle was purchased. Bailey agrees he bought part interest in the motorcycle for $9,200.
McDonald says Bailey had a meeting about what to do with what to do with the motorcycle Bailey had used to buy the motorcycle. The meeting was with Bobby Segall, president of Alabama Bar Association at the time.
McDonald says and Bailey agrees that George Beck, Governor Siegelman and Bobby Segall were at the meeting and that Bailey says he was going to buy 50% of the motorcycle. McDonald says they agreed Bailey could buy the rest later if Bailey wanted.
Bailey agrees that bill of sale is one made at the meeting. Another document is shown signed by all parties finalizing the motorcycle sale from the governor to Bailey. Bailey agrees he lied to George Beck and Bobby Segall.
McDonald asks why the jury should believe anything Bailey says. Bailey says that if McDonald thinks Bailey would lie to cover his own ass McDonald does not know him very well.
Bailey says he lied to protect people. Bailey agrees he lied to Judge Clemen but that now he wants to tell the truth. "You can keep asking it because that's my last answer of the day too."
Did you lie to Chief Judge Clemen about the conspiracy. "In regards to the Bobo issue no."
Starting over at 9 a.m. more to come in due course.
Questioning of Bailey Continues
Mr . McDonald gets Mr. Bailey to agree he had no guarantee of any position with the Siegelman administration when the alleged agreement with Siegelman and others was made in 1994.
Mr. McDonald is trying to establish when the alleged "agreement" happened.
McDonald is pounding on Bailey about the "absolute agreement" and what was discussed. He got Bailey to agree that when the "agreement" started to evolve there was "absolutely no discussion about:
Judge Fuller says he does not believe Mr. Bailey will be "able to articulate a date" as to when the alleged agreement started.
Judge Fuller is asking McDonald to get on with it and "do not cover this subject with these type of questions again."
McDonald gets Bailey to read from his plea agreement which basically states Bailey began to accept things from Young in exchange for which Bailey would "take care of Young" in Young's dealing with the state.
Questioning has now turned to the G.H. Construction project.
The state was leasing buildings from the Aronovs and it was believed the state would be better off with building its own warehouses in order to save money. Bailey says he was not aware of a meeting between Siegelman and the Aronovs. McDonald says the Aronovs stood to loose a lot of money if those warehouses were not leased.
Bailey says it was his idea to involve Lanny Young in the G.H. Construction deal.
A little earlier there was talk about the ability of Kirsch as an architect and Bailey said he couldn't comment about how good or bad the architect was.
McDonald is trying to convince people the G.H. Construction project was a good idea, but a bad idea in the way it was implemented. He did mention Siegelman and the Aronovs were friends to which Bailey said he didn't know that.
McDonald introduces a memo saying that it would benefit the case if the state constructed its own warehouse facilities.
Judge Fuller is clearly irritated at the number of interruptions by objection in court this morning as well as Mr. McDonald covering some of the same material. Fuller says he's already had to talk about these things "more than I wanted to" this morning.
McDonald tells Bailey he wants to try and move on "so I don't get shot going too long today."
Bailey agrees he had a large part of the responsibility for the G.H. Construction project. Bailey says his brother Shane worked for ADECA.
Another timeout. There is now an agreement between the defense and prosecutors that the G.H. Construction project "if properly implemented would have been a good idea for the state."
Bailey says he was one of the people who approved the payment of $330,000 for work to be done in the project. Bailey however does not know what actually was completed but when on what Lanny Young and Garber told him. "I still don't know today what was done and what wasn't." says Bailey.
McDonald is saying after there was a meeting that included Gov. Siegelman that agreed that the G.H. Construction project would save the state money that was the limit of Gov. Siegelman's involvement in that project.
Bailey said, "Yes, at that time."
We're back to the motorcycle again. Another question about exhibits.
Bailey is reading from an item that says he called his insurance company to have a motorcycle removed from the insurance policy but the company could not find insurance under his name for a motorcycle. The company sent Bailey a memo to that effect. Bailey says he "cannot conform" he ever did place insurance. Bailey does not deny he has told people in the past he purchased the motorcycle and purchased insurance on the motorcycle.
Bailey says "there is some debate whether I genuinely bought a part of Gov. Siegelman's motorcyle."
This goes with what the government is saying. McDonald may have lost the motorcycle battle at this point.
Bailey now does not dispute he paid for half the insurance on the motorcycle.
McDonald is pounding again. Mr Bailey goes back to the statement about the exchange of favors with Young. McDonald says Bailey was a founding member of the "absolute agreement" about Young.
Bailey agrees Siegelman and he did not discuss anything that could be considered unlawful or illegal.
Bailey says there was never any discussion of penalties for the favors.
Bailey agrees he never heard Siegelman say he was willing to do anything unlawful, illegal, or immoral for Lanny Young.
We're moving on to Jim Allen and a meeting with Siegelman. Bailey agrees he was not in the room. Bailey admits he was not in the room with Scrushy and Siegelman at their meeting.
Bailey agrees he was not in the room when Young met with Siegelman in 2000 but did talk to Young after the meeting.
McDonald is going back to Bailey's time around 26 years of age and to his income and work record.
McDonald gets Bailey to confirm he was around $55,000 in debt in 1994 before he started working for the Siegelman campaign. Bailey admits he got caught up in cattle futures and incurred the debt.
McDonald is charging Bailey's path into the campaign and Siegelman's staff.
McDonald is back to Kirsch paying mortgages for Bailey even after Bailey was making a decent salary.
He has another exhibit. We're getting into talk about margin calls. McDonald is probably boring the jury. He has forgotten the Parkman rule - Don't bore the jury!
McDonald is showing Bailey's account was short on one day $35,000 and needed to have money. There is another day September 12, 2000 where Young's account was short $69,800.
There is another day short around $25,000. Another date September 27 he is short $43,000.
Bailey says he had other stock he sold to cover some of the more than $220,000 in debt.
Bailey says his salary when he was with governor's office at the highest point was in the high 90s. Bailey says he started in the lieutenant governor's office in the low 40s.
Fuller asks McDonald how much longer McDonald will be and then decides its time to take a brief recess back in a moment.
There is going to a long break for lunch between 11:20 and 1:00 today. So there will be no blog then. I have something else scheduled for about a half hour at 1:30 today so I'll catch back up up around 2 p.m.
McDonald is asking about people other than Siegelman who had the authority to stamp or sign Siegelman's signature. Bailey says the signature on the construction project document was not Siegelman's.
Had to take a phone call. Out a minute.
McDonald is questioning Bailey about his debts again. Bailey agrees the governor did not know he was engaging in high risk investments. "Not to my knowledge, no."
McDonald has shown that Bailey got $55,000 from Young in 1996 far before G.H. Construction was even a thought and the payment of $9,200 was in 1999 a year before the G.H. Construction project.
McDonald is hounding Bailey about a statement on FBI documents that said "I stopped Lanny Young from giving Governor Siegelman $9200 because I thought that it would be inappropriate."
McDonald and Bailey are at each other about who Bailey lied to. Bailey challenges McDonald to read a list of people Bailey had lied to and then Bailey would stop him. McDonald started with U.S. attorneys moved on to grand juries and then to members of the prosecution team.
Bailey told McDonald no matter how he asked the questions he was going to answer the same way. There was an agreement.
Well the judge has had enough. McDonald is through. After lunch Paul Hamrick's attorneys get their shot at Nick Bailey.
Back for a Few
Sorry to have to take a blog break, I'll try to limit this. There will be one more minor one later today and then hopefully no others until sometime next week.
I will tell you wsfa.com's Courtroom Chronicles will have a story in the morning you won't want to miss. No this is not a smoking gun. Just some insight about the trial you won't want to miss.
Nick Bailey is now talking about what Lanny Young drinks. Mr. Deen is acting up about Lanny Young allegedly wanting to go to Talladega to get beer sales passed. There's been a lot of talk about why you fly from Montgomery to Talladega.
Talk continues about governor's agenda on beer sales at Talladega.
Nick Bailey, "I drive a Chevrolet," in response to are an you a fan of car #24 question.
Questions about Trava Williams a stockbroker. Bailey is asked if Anthony Fant went to meet Trava Williams and Williams' AFF company.
Bailey agrees Williams was going to try and get business with the state. Bailey says it is not correct that he sent Williams around to state agencies to see if Williams could get some business.
Questioning turns to the Alabama Peace Officers Annuity and Benefit fund.
Bailey agrees paperwork set on his desk for over a year.
Bailey being asked by travel agent Terry Merritt and his relationship to Bailey and Anthony Fant.
More meeting questions about meeting Young, Fant and Brazeal , about Cherokee County landfill. Bailey says he arranged but did not attend the meeting.
Bailey agrees he owed Fant money at the time.
Bailey agrees Young borrows $100,000 from Anthony Fant in 1998 or 1999.
Bailey agrees he met Fant at a Gore campaign function in Birmingham and Fant ended up on the list of possible contributors to the Siegelman campaign. Fant was head of Democratic Party for a while.
Bailey agrees all this had nothing to do with Paul Hamrick.
Questioning turns to the Cherokee County landfill. Bailey admits he knows nothing about a landfill in Cherokee County except the landfill is there. "I haven't been there myself," says Bailey. Bailey says he knows Phillip Jordan was probate judge and on the county commission. Asked how he knows that, Bailey says he thinks he read it in the paper.
Another break. The blog will be out of commission again for a while. There are also some issues the judge wants to take up without the jury after the recess.
Sorry for the breaks today folks. Hopefully things will be back to normal tomorrow.
Bailey is being asked about Kirsch and Bailey's relationship with him. They are also talking about houses Bailey owned and the work Kirsch did. Bailey admits that got him in trouble.
Bailey is being asked about his conspiracy with Kirsch and work being done on Bailey's house for state jobs.
Bailey says he was acting director at ADECA and had control of a $200 million budget. Bailey agrees it is one of the largest and gets a lot of federal money.
Bailey says his younger brother was hired as a division chief over Alabama surplus property. Bailey says his brother was 29 when he got the job.
Bailey is being asked by Deen about the G.H. Construction project.
Bailey says there had been a project kicked around for years. ABC warehouses leased from the Aronov family, friends of Gov. Siegelman. Bailey says Hamrick and himself discussed the fact that the Aronovs may be upset if they lost the leases. Deen says Hamrick told Bailey it would be better to wait until after the election. Bailey says he does not remember Hamrick saying that.
Bailey says he had made recommendations about different projects. Trooper re-roofing in 2000, Wallace State re-roofing, Snead State in Feb 2000, another project in May 2000, Cullman County Good Hope.
Projects from 1999-2000. Bailey asks if they were relatively large projects.
We're back to the qualifications of Curtis Kirsch. Bailey says he was told they could probably handle the project. Kirsch got D's and F's in college according to Deen. Bailey says he didn't check "Kirsch's report card."
Lanny Young was going to be put in charge of the project. Brian Broderick was going to be involved.
Bailey says he didn't know Kirsch had forged documents related to Broderick's qualifications.
Lanny Young's brother-in-law was also to be involved in the G.H. Construction.
Deen submits into evidence the file of Curtis Kirsch, architect.
The personnel file has been entered into evidence.
Bailey says he signed off on the recommendation to pay $300,000, $100,000 of which went to Anthony Fant.
Bailey says the warehouse deal was sometime between 1999-2001. Bailey was asked if he would accept 2001 and he said he would.
Bailey says there was never a cumulative $200,000 in margin calls. Bailey admits he went to work with Anthony Fant and also went to Las Vegas on at least one trip with Fant.
Bailey says he doesn't remember the date of the trip.
Questions are asked about Donze. Bailey says according to Kircsh Donze worked on the project. Bailey was asked if he remembers hearing the governor say about Kirsch, "I wouldn't want him(Kirsch) building a dog house." Bailey says no.
Bailey is asked if Paul Hamrick had anything to do with the Goat Hill project. Bailey says "initially no."
Bailey is asked when he had a conversation about the G.H. project. Bailey said on a number of occasions. Bailey says Paul Hamrick knew about the payments from Young but can't give any specifics. Bailey says he and Hamrick discussed the G.H. project.
Bailey says Hamrick would have something to do with ADECA projects being built.
Bailey says he reported to Hamrick about what was going on at ADECA. Bailey says Hamrick never told him "don't get involved with Lanny Young" because Young was involved in the landfill.
Lanny Young had wanted the fees for the Emelle landfill reduced. Bailey admits he asked Jim Hayes, Revenue Commissioner at the time, to "help him (Young) if you can."
Bailey says he doesn't recall Young paying him for anything 1999. Bailey says Young and Claire Austin spent a lot of time together and were lobbyists.
Bailey agrees people came into the governor's office to lobby the governor all the time.
Bailey says he understands Young to be a representative of Waste Management. "That was my belief." Bailey says he assumes "Lanny wasn't there on a volunteer basis." and Bailey says he is not sure Young didn't visit Hamrick. Bailey admits he sent the report to Jim Hayes. Bailey admits Hamrick had nothing to do with Bailey sending the report Young had given Bailey to Jim Hayes.
Bailey says he talked to Hayes to see what the status of Young's report was. The recommendation came back approved. Bailey says he had no knowledge of Hamrick talking to Hayes about the Waste Management report.
Bailey says he did not get paid for delivering the report. Bailey goes back to his comments about the "general understanding" the group had with Young.
Bailey is back to the "it evolved over time." Bailey cannot give information about a specific conversation with Lanny Young and Paul Hamrick about the agreement that "evolved over time."
Bailey is asked about is agreement with Fant and Young. He says he did not have the same sort of understanding with them or with Young and Treva Williams.
The prosecution is objecting to more talk about Bailey's plea agreement with the government.
Bailey is being asked if the government did not charge him with some things such as charges under the RICO act. Bailey keeps reiterating all "he wants is a good recommendation."
Bailey is asked if he is still driving a Hummer? Bailey says he never had a Hummer. Bailey says he did not talk to the government about his brother and his brother's dealing with Kirsch.
Bailey is asked about a project at Wallace State in 1999. Bailey agrees he recommended Kirsch for the project.
Mack Roberts' attorney Bill Baxley says he "sees no need to question the witness."
Art Leach is up and Bailey agrees he has not attended a meeting between Scrushy and Siegelman. Bailey agrees he has relied on other people. Art Leach asks Bailey if he got any evidence directly from Mr. Scrushy. Bailey admits he has gotten nothing directly from Scrushy.
Another short interruption.
"Since there is not a single document to support your testimony, (you might as well object there -talking to the defense) your recollection, will you agree with me that if the jury does not believe your testimony in that regard you have nothing else..."
Bailey agrees he believes Mr. Scrushy had a check and it was signed by Richard Scrushy.
Bailey says the governor told him, Scrushy did not want his wife to know he contributed to the lottery campaign.
Talk is now of the IHS check. Leach says the check was not signed by Scrushy. Bailey keeps reiterating that the governor told him this. Bailey says the check was a "result of Richard Scrushy."
"i can't explain to you what may or may not embarrass Richard Scrushy," says Leach.
Bailey agrees he saw Scrushy once or twice in the governor's office. Bailey says he cannot confirm that the meetings happened before Scrushy's appointment to the CON Board, but his recollection is one happened before Scrushy was appointed.
Leach gets Bailey to agree the meetings could have been at least a year apart.
Leach asks Bailey when he realized he might be wrong about the meeting between the governor and Richard Scrushy.
Bailey says he tried to make it known to his attorney that he may have been unsure.
Bailey says he was at a meeting with the government at which Mr. Feaga was there and it may have been driving away from that meeting he realized he might be wrong about his recollection.
"In this district I started with Mr. Franklin and Mr. Feaga," says Bailey. Bailey says he may have ended up with Hart when Hart was an assistant attorney general.
Leach is saying an FBI agent was Bailey's primary contact. Part of Bailey's agreement with the government is that he has to come meet with the government when asked to by the government.
Leach wants to know more about meetings Bailey has had with the U.S. attorney's office. Bailey says he has been to a half a dozen meetings lasting not more than half a day.
Leach asks about meetings leading specifically to testimony here, "not more than a half dozen."
From the time he started cooperating or not regardless of who was there at any meeting where assistant U.S. attorneys were present, Bailey says he had less than two dozen meetings.
Bailey says they have met at other offices associated with the government and at his attorney's office. Bailey says he has met with the government at his attorney's office at least a half dozen times as well.
Bailey says "questions and answers" happened at his meetings. Bailey says he saw reports of statements he had made and discussed them. Talk is of FBI 302, a report prepared by FBI agents that summarizes what a witness has told them.
Bailey says if he is asked, he was able to get the 302s. Leach wants to know how many 302s had anything to do with Mr. Scrushy. At the time he was reviewing them Bailey says he believes the two or three documents he saw were accurate.
Bailey agrees he told the government 302s related to Scrushy were correct.
Bailey is asked if he has had transcripts of grand jury statements. Bailey says he believes he has copy of his 302s in Birmingham.
Bailey says he brought up discrepancies with Feaga,
Mr. Leach has had enough for the day as has almost everyone else. Remember to tune in tomorrow morning for an interesting blog exclusive to WSFA.
Art Leach Questions Bailey
Art Leach is requesting any paperwork from a meeting that happened between Bailey and federal government officials.
Questions are being raised about any material that has to do with changes to Bailey's testimony to the government that has not been disclosed. The judge has asked Bailey to leave the stand for a moment.
The judge has ordered the government to review its documents and turn over to the defense any correspondence, written or verbal, involving every agent, agency, investigator that has not already been turned over to the defense be turned over by start of court on Monday.
The prosecutors say they believe they have turned everything over, but will check.
The judge reiterates there will be no speaking objections. Art Leach says he wants the federal government not to get up and offer any stipulations.
The judge says,"I am trying the best I can to make sure everybody has a fair trial."
The judge says, "We will finish Nick Bailey's testimony today if we are here till midnight."
Art Leach is asking Bailey if he knew Scrushy was a philanthropist? Bailey says yes.
We're having more technical difficulties with hearing Art Leach's mic again. Hopefully it will be fixed soon.
Art Leach is talking to Bailey about people coming in to see the governor about doing business in the state.
Leach asks Bailey what a political operative is. Bailey replies, "Someone who understands politics."
Leach asks Bailey if he "traded his office?" Bailey replies, Yes, sir. Bailey is asked how he came to know that. Bailey says they had an ethics seminar.
Leach is asking about the lottery and the training Bailey had regarding problems that could come about with the lottery referendum.
Leach asks Bailey if he was told that checks for the lottery foundation could not go directly to Governor Siegelman.
Bailey is saying he doesn't remember specific instructions.
Bailey is asked to read a letter that in essence talks about receiving checks from people for the foundation must be sent to the foundation. Checks made out to an official must be returned.
Bailey agrees the situation with Scrushy was not unusual in that government would meet with people one-on-one.
Bailey agrees he was at times excluded from the room.
Bailey agrees that it was routine that the governor met privately with contributors.
Bailey agrees the fact that the meeting happened and the governor and the contributor were alone was not unusual.
Bailey is asked if he knew there was no campaign contribution limit when the money was given to the foundation, at that time.
Bailey agrees people were targeted for contributions for the foundation and that it was not unusual.
Leach is asking if there is anything unusual in the letter that Bailey hadn't known about before.
Bailey is asked about cap limits on contributions and is now being asked about a "Jim Pool" there seems to be some confusion over whom Jim Pool is. Bailey may be confused.
Bailey is being asked about Bill Blount, an investment banker in Montgomery.
Leach asks Bailey if it wasn't true that Richard Scrushy was one of four people targeted for large contributions for the foundation. Bailey says, "Yes."
Bailey says Gov. Siegelman made most of his big contribution calls. Leach asks Bailey what the target amount is for the individual and how is it established. Bailey says the governor and others determine that.
Bailey agrees you don't tell contributors that they have been targeted for a certain sum.
Leach is now running a lottery time line starting with Siegelman's election in 1998. Bailey says the first time the Legislature met after Siegelman was elected was late winter, early spring. Bailey says Siegelman was sworn in January 1999.
Leach is showing Bailey a document dated February 22,1999. Bailey says he has seen the article of incorporation.
Bailey is asked if it was passed by the legislature, Bailey could not remember but knew it was passed within a few months of the date.
Leach asks if it had passed by June 1999. Bailey says to the best of his recollection, yes sir.
Bailey agrees he was active in the lottery foundation.
Bailey agrees as to the significance of June, July 1999 and that he was raising money and that Scrushy was not the only person targeted.
Bailey is asked about Margie Sellers and her relationship with the Nursing Home Association. Bailey says he knew her as a contact.
Bailey is also asked about Elmer Harris and what he did for the foundation. Bailey agrees the bottom line is bringing in the money.
Bailey says only about 5-10 people can raise more than $250,000. Elmer Harris, David Cooper, Richard Scrushy, Paul Bryant, Jr. (Bailey says he doesn't remember his name as a target.) Bailey says maybe Jere Beasley would have been targeted. That doesn't make a lot of sense.
Leach says Scrushy did not take or return the first call from Siegelman. Bailey says it sounds very familiar. Leach asks Bailey if that is on the 302s, FBI summary documents of witness interview.
Bailey says there is usually more than one FBI agent when he is questioned.
Bailey is asked if these meetings are ever recorded. Bailey says not to the best of his knowledge.
Bailey is asked about the presence of U.S. attorneys and representatives from Washington, D.C. Bailey is asked if these people take notes and he agrees they do.
Bailey is asked if the group questioning him has changed over time and he says it has.
Bailey is asked about people who questioned him initially including members of the attorney general's office.
Bailey says Long gets with his attorney and sometime himself to set up meetings.
There is talk of other officials. Leach is going through a list.
Bailey is asked about his IRS tax violations, unreported income and to the agreement to what will happen in those other tax years. Bailey is asked if he has filed amended tax returns. Bailey says he has.
Bailey says he has only filed one for tax year 1999.
Bailey is asked if he knew the government could forfeit his assets for the charges involved.
Leach is asking about illegal proceeds, bribes and the total dollar amount. Bailey says he keeps hearing about an amount of $200,000,
Bailey says he does not have an agreement with the government as far as the $200,000.
Bailey agrees he knows the government can seize assets.
Bailey says the government did not say they would ever go out and seize his car or bank account.
Bailey agrees none of his assets have been seized.
Bailey agrees he never had a conversation with Gov. Siegelman that Siegelman was going to trade on his office.
Bailey agrees Siegelman is as smart a politician as Bailey has ever seen or known.
Bailey says, "Siegelman knows how to get it done."
Leach is back on whether or not reports were generated for the vast majority of Bailey's meetings with federal officials. Bailey says he can not say, the government would have to say.
Bailey agrees now sometimes reports were not generated from meetings with assistant U.S. attorneys and agents that Bailey does not have in his possession.
Bailey is asked to recall how many times he met with the government since December '01. Bailey says "at least two dozen, perhaps three. Again I said approximately."
Bailey agrees he would meet with officials for up to two hours prior to giving testimony to the grand jury. Bailey agrees he did review his testimony following his grand jury testimony.
Bailey is asked if he ever told the government he made a mistake. Bailey says he had some reevaluation of events regarding Mr. Scrushy's initial check.
A short break in the action. Sorry.
Bailey is asked if he examined any HealthSouth documents related to Scrushy. He says no.
Then Bailey agrees he has reviewed documents with government officials prior to coming to this trial related to governments to HealthSouth.
We are in recess.
Missed a few things, but back now.
Leach talking about statement where he says to Bailey, "You repeatedly lied didn't you." Bailey says, Yes, sir."
Bailey is asked to look at a document concerning December 21, 2001. Bailey agrees he did not talk about the Alabama Education Lottery Foundation on that day.
Bailey is asked if he remembers things better that happened two weeks ago than those events that happened six months ago. He agrees.
Leach asks Bailey if he believed events were true at the time he told prosecutors, etc. about them.
Bailey says he doesn't remember when he first started talking to government officials about Scrushy.
Leach is asking about 302s and when the earliest date of the 302s is that relates to Richard Scrushy.
Leach is questioning Bailey about events on June 30,2003 a meeting between Bailey, Long, and Baker. The document is an FBI 302. Others present included Bailey's attorneys, IRS, Jack Brennan, and Julie Weller.
Bailey agrees he told the government the governor and Scrushy met on July 19,1999. Bailey says Eric Hanson and Loree Skelton were with Richard Scrushy at this time. Bailey says he doesn't remember any other occasion when the three were together.
What other people were with them? Bailey says Scrushy security and Senator Waggoner.
Bailey agrees he thought at that time the contribution was Richard Scrushy's and what he was telling the FBI that Scrushy delivered $250,000 . Bailey says the exchange about "What does he want? An appointment to the CON Board. Will that be a problem? was not in the 302.
Bailey says his recollection of events related to the check are better now than it was then.
Bailey says his recollection is "more accurate."
Shifting gears Leach is asking whether the second check for $250,000 was a bribe? Bailey says that's not for him to decide.
The meeting happened between the Governor and Scrushy in Scrushy's office in Birmingham.
Leach is asking if the bribes Bailey received were paid to him in the governor's office. Isn't it fair to say you are not going to have a meeting in the office of the governor and have the governor witness that you have taken money from Lanny Young.
Leach is giving his description of where bribes take place.
Leach says the meeting was on the governor's calendar and on Mr. Scrushy's calendar. Bailey says to the best of his recollection Scrushy was expecting them. Bailey says the meeting took about an hour or so.
Bailey says as he remembers the purpose of the contributions was for the CON Board. Bailey says it's possible the digital hospital may have been part of the deal, but that he is not testifying it was.
Leach asks Bailey if he's aware the digital hospital was passed nearly unanimously by the legislature.
Bailey says he was not. Bailey says he was not on a veto team.
Bailey is asked if a unanimous decision from the legislature means something is veto proof. Bailey says he doesn't know that would make it veto proof.
Bailey is asked about meeting with government officials January 27,2004.
Leach is asking if there were other meetings that did not result in reports from June 30,2003 to January 27,2004.
Bailey says he has not seen one from during that time.
Bailey is asked if he has had this report in his possession.
Bailey says he has seen this 302.
Bailey is reviewing the January 27, 2004 document.
Bailey agrees he told the FBI the governor and Scrushy retired to a private office and the meeting took about an hour. At this time the governor told Bailey according to the report, "Scrushy is halfway there." And Bailey asked, "What in the world is he going to want for that?" The governor responded the CON Board. Bailey: That shouldn't be problem should it. The governor ,"It shouldn't."
Leach is asking Bailey if this is the first time he related this story to the government.
There are objections coming from the defense.
Bailey says he first told the government,"Sometime, before this report was produced."
We got mic problems again.
Reading lips, talk has turned to the Super Bowl and Bailey's attendance.
Thanks the mic is back.
Another discussion about what's in the FBI 302 from January 27,2004.
Now we're moving to grand jury testimony in June 2004.
Page 5, line 17. in relation to Scrushy and the governor a meeting.
Bailey agrees Scrushy was the CEO of HealthSouth.
Bailey says in the report, "I believe it was in June 99." Could it have been in July 99? Yes, sir.
Leach is asking about what Bailey saw as far as document in preparation for a grand jury meeting.
Bailey is asked who was asking him questions. He replies, "Mr. Feaga."
Leach is asking about Bailey's memory. Bailey says, "Things change over time, memory changes over time."
Bailey says in the 302 Hanson, Scrushy and Skelton were there.
There is debate between Bailey and Leach about finding out if another person named Jim G was at the meeting.
Leach is saying Bailey says he believes Eric Hanson was there but that prior statements indicate Hanson was there.
He is asked about Hanson today. "I can't for sure recall whether Hanson was there or not."
Was Loree Skelton there? Bailey, "I believe she was." Was the check there? I believe it was.
Leach has gotten Bailey to say that his grand jury testimony is the same as his January 27, 2004 302.
Bailey agrees he handled the check on the meeting day.
Bailey is asked if Hanson offered to get him half a million dollars in exchange for Scrushy getting a seat on the CON Board Bailey said Hanson made it clear.
Bailey agrees he has worked in the Siegelman campaign and that Eric Hanson is a lobbyist and that Hanson contacts people on a daily basis to get the desires of his client. Bailey says it is routine.
Is it normal for a lobbyist to come to the governor and ask that his client be given a seat on a regulatory board. Bailey says it's not unusual.
Bailey says Hanson made it clear what he wanted for the contributions but that Hanson didn't threaten him.
Leach asks Bailey if he knew Scrushy did not want a seat on the board. Bailey said he did not.
Leach says Tom Carman was the one HealthSouth wanted for the position.
Leach is going back through whether or not Bailey knew about Scrushy's qualifications to be on the board.
Leach is asking more questions about whether Scrushy benefited personally from anything HealthSouth did.
Leach is grinding Bailey about whether or not he has memorized or scripted his testimony. Bailey says, "As these questions become more and more repetitive, I'm learning them by heart."
Bailey says he is trying to do the best he can.
Art Leach just asked Bailey if he was on "medication"?
The judge has asked the attorneys to approach the bench.
The judge has told the jury to disregard Leach's question.
Bailey admits he has reviewed his testimony for this trial with Steve Feaga. How long did it take," asks Leach. Bailey, "Three or four hours."
Leach: Was it a single meeting or multiple meetings.
Bailey: A couple of days Mr. Leach.
We're retreading ground about the IHS check.
Leach asked Bailey if anyone has talked to him about the laws related to perjury.
Well the judge has had another conference. Now we move on to the plea agreement. Leach wants to know if perjury and false statements are covered in Bailey's plea agreement.
Mic problems again. Art Leach we can't hear you!!
Leach is walking through the plea agreement and asking Bailey if Scrushy had anything to do with each count of Bailey's plea agreement. Bailey is answering no sir.
Leach is now addressing sentencing as to state charges, RICO charges.
"Were you prosecuted for all the federal violations you committed?" Prosecution is objecting.
Bailey answers he's not sure how to answer that Mr. Leach. "Mr. Leach I am not aware of any other federal violations."
Have you ever talked about money laundering?
I don't recall a money laundering discussion. Bailey say he may have heard some discussion about RICO.
Bailey says he understands the government will have input into any future sentencing.
Leach is asking Bailey about what sentence he faces without reduction? Bailey says 30-39 months.
Leach is stuck on the 5K Downward Departure Motion.
Leach asks Bailey if anyone in the government has said they would or would not file a 5K motion.
Bailey basically says if he abides by the rules he would.
Art Leach is through. The prosecution will not try to rehab Bailey at this time.
Most of the lawyers have left. Judge dealing with some instructions with jury out of room.
Dealing with Mack Roberts stuff as related to Bailey's testimony.
Finished until 8:30 a.m. Monday.