SevierCorruption.com

The Scruggs Saga Comes Home To Hinds County

by Adam Lynch
Photos by Jaro Vacek
March 5, 2008

On June 11, 2005, Jackson Police Officer Jeffrey Middleton ran a red light on Highway 18 while coming back from Raymond. Middleton had no siren or police lights on at the time, and a cop car without a blaring siren is just another death machine when it decides to ignore a traffic signal. When Middleton slammed into a car making a turn under a green light, driver Desmonde Harris probably didn’t know what hit him—and certainly not that it was a man pledged to uphold the law.

Harris died immediately. The state charged Middleton with vehicular manslaughter with culpable negligence, a charge carrying up to 20 years in prison. 

Hinds County District Attorney Faye Peterson had Middleton in an ineluctable corner. The case was cut and dry. There were reliable witnesses. The work schedule and records were sound. That was definitely Middleton’s crushed car. That was certainly Harris’ car containing his crushed body. 

There was no getting around it: She had a tight case to put before a jury.

Knowing there was no room for either fight or denial, Middleton pled guilty to manslaughter, but then the policeman got a cushy deal from the state that, like Harris, he probably didn’t see coming.

Hinds County Circuit Court Judge Bobby DeLaughter virtually erased the plea by placing Middleton on probation for two years and withholding adjudication. In short, he refused to prosecute Middleton or put him before a jury that might not be so understanding.

Middleton was suddenly free and now immune from prosecution for Harris’ death. DeLaughter’s decision took away the possibility of another trial, with a different jury, with a different judge. Middleton was getting probation for wrongfully running a light and killing a man.

Enraged, Peterson howled, refusing to sign off on the court’s decision not to prosecute.

Last spring, DeLaughter refused comment to the Jackson Free Press regarding the suspicion of his ties to the defendant’s attorneys—former District Attorney Ed Peters and Tommy Mayfield, who worked as an assistant district attorney alongside him during Peters’ administration.

“I won’t discuss in the realm of the media a case that should be worked out in a courtroom,” DeLaughter told the Jackson Free Press for a story that appeared April 4, 2007.

In retrospect, perhaps Peterson shouldn’t have been too astounded. Stick around in one place long enough, and you start to grow roots, and former District Attorney Ed Peters—once her boss—has been around a long time. His style has raised questions from lawyers across the aisle from him over the years. But now, thanks to the twisting, dirty corruption saga surrounding Oxford attorney Dickie Scruggs, questions about Peters’ judicial successes are going from quiet whispers to central exhibits in prominent court cases.

A trail of legal documents, and testimony, has begun to tell a new story. Suddenly, Faye Peterson—who was defeated last November by a candidate coached and pushed by her former boss Peters—is no longer a lone voice publicly expressing doubt about Hinds County’s historical system of justice.


Dickie’s Growing Shadow
The developing Scruggs case—which keeps casting new shadows on a near-weekly basis—is emboldening more people to speak up about cases in which Peters, and his former assistant district attorney-turned-judge, was involved. 

“Very serious questions have been raised—and circulated throughout the entire country—about the relationship of Ed Peters and Judge DeLaughter. In this circumstance, the public interest in seeing that justice has been done impartially requires that the successor judge review these issues,” wrote attorneys for Jeffrey Frisby in a Jan. 24, 2008, motion for stay of discovery. Frisby is a defendant in a trade secrets lawsuit that Mississippi company Eaton Aerospace filed against Frisby Aerospace, of North Carolina. Eaton alleges former employees snatched trade secrets for military contracts from Eaton and handed them over to their new employer—an Eaton competitor.

Frisby wants discovery in his case suspended until a successor judge can review DeLaughter’s treatment due to Peters’ involvement.

(A federal grand jury has since indicted the former Eaton employees over the same allegations, though no date for the criminal trial has been set as of Feb. 29.)

Frisby’s lawyers indicate they have plenty of suspicion to draw upon in their argument for a stay of discovery, now made plain by the ongoing indictment against Scruggs, who headed the Katrina Group—attorneys who sued insurance companies over Hurricane Katrina claims. That battle began when former State Auditor Steve Patterson (who had resigned his state post in 1996 after pleading guilty to misdemeanor tax fraud regarding a license plate) pled guilty last year to attempting to bribe Lafayette County Circuit Court Judge Henry Lackey. Lackey supposedly approached federal authorities with the news of the purported bribe and worked with them in gathering evidence supporting the accusation.

Patterson’s guilty plea, which he submitted to U.S. District Court in Oxford, was a veritable monster, fresh off the lab table and lurching down the mountainside to the unsuspecting village of Hinds County. Patterson said the $40,000 bribe was an endeavor to obtain a favorable ruling in a $26.5 million suit against Scruggs regarding a dispute over Hurricane Katrina litigation fees. The Department of Justice indicted Scruggs, his son Zach and Patterson, along with attorneys Tim Balducci and Sid Backstrom in the Lackey case last November.

Ed Peters was one of the original Katrina Group attorneys, alongside Scruggs, Patterson, Balducci and others. 

A well-known Balducci quote from the FBI indictment, possibly recorded through a phone tap or personal wire hook-up to Lackey or his office, depicts Balducci saying about Scruggs: “[H]e and I, um, how shall I say, for over the last five or six years there, there are bodies buried that, that you know, that he and I know where … where are, and, and, my, my trust in his, mine in him and his in mine, in me, I am sure are the same.”

Attorneys say there’s a big difference between Balducci promising bodies and Scruggs revealing said bodies.

In the meantime, Balducci is aiding the prosecution in gathering more dirt on Scruggs and those purported “bodies.” The trial is set for the remaining defendants on March 31.

The Mississippi Bar is withholding action against Scruggs, since he has not suffered conviction at this point, though the bar has asked the Mississippi Supreme Court to terminate Langston’s and Balducci’s law licenses.


A Local Burial Ground?
Hinds County Circuit Court could prove to be a burial ground for at least one of Scruggs’ “bodies,” according to The Clarion-Ledger, which connected Peters to Scruggs in a Dec. 16, 2007, story via a U.S. Attorney search warrant apparently leaked to the paper. The warrant sought “documents related to the Hinds County case, as well as documents regarding payments to Jackson lawyer Ed Peters, who played no known role in the case.”

Scruggs’ attorney, Joey Langston, soon added plenty to the federal case, particularly regarding Peters. Langston—known for helping bag $115 million for the state of Mississippi in 2005 in a suit against defunct telecommunications giant WorldCom for back taxes—initially defended Scruggs against the Lackey indictment, but wound up dumping the case and coming forward with his own guilty plea. Incredibly, Langston told authorities he had his own shady connections to Scruggs, and pled guilty to dangling a special kind of bribe before Hinds County Circuit Judge Bobby DeLaughteron behalf of Scruggs.

The indictment states: “From on or about January of 2006 and continuing until on or about March of 2007 … the defendant Joseph C. Langston, did knowingly and willfully conspire with Richard ‘Dickie’ Scruggs, Steven A. Patterson … and with others both known and unknown … to attempt to influence state Circuit Court Judge Robert ‘Bobby’ DeLaughter by providing a thing of value, that is, favorable consideration of Robert ‘Bobby’ DeLaughter for appointment to the federal district court bench in the Southern Judicial District of Mississippi, to obtain rulings in favor of Richard ‘Dickie’ Scruggs in the lawsuit styled Wilson v. Scruggs pending before Judge DeLaughter.”

Scruggs allegedly was preparing to make use of his connection to former U.S. Sen. Trent Lott—who announced he was retiring his senatorial post Nov. 26, 2007. Agents stormed Scruggs’ office with a search warrant Nov. 27, 2007. Lott is Scruggs’ brother-in-law, and Balducci said Lott went so far as to call DeLaughter on his brother-in-law’s behalf. Balducci also testified in February that Lott told DeLaughter he would put him on the list of potential candidates for the judgeship if he granted Scruggs a favorable ruling.

Lott has denied any involvement in the case and told reporters that his resignation had nothing to do with the brewing case against Scruggs. The Biloxi Sun-Herald reported this month, however, that both the defense and prosecution in the federal case against Scruggs plan to call Lott to the stand to speak on Scruggs’ past behavior if U.S. District Judge Neal Biggers Jr., gives them the go-ahead.

Scruggs has not yet been indicted in the DeLaughter case, and neither has DeLaughter, despite the implication of Langston’s plea. Scruggs himself denies any attempts at buying influence over any judge, and DeLaughter denies that he took any bribes.

The Langston indictment (again, to which Langston pled guilty) further accuses Langston and his co-conspirators of traveling “on several occasions from the Northern District of Mississippi to Jackson, Mississippi, for the purpose of engaging a close personal friend of Judge DeLaughter as a ‘consultant’ to assist them in the case of Wilson v. Scruggs.”

Langston specifically pled guilty to delivering $50,000 in cash in December 2005 to DeLaughter’s close personal friend “for the purpose of retaining the close personal friend to influence Judge Robert ‘Bobby’ DeLaughter.”

According to that same indictment, Langston admitted that around January 2006, Scruggs, Langston and the other co-conspirators agreed that if the Wilson v. Scruggs case “was resolved in (Scruggs’) favor” that Langston, Patterson and DeLaughter’s “close personal friend” could split the savings Scruggs would earn as a result of the favorable ruling.

The indictment charges that Langston, Patterson and the “close personal friend”—which it identified as Ed Peters—split $3 million saved by the case settlement between July 2006 and July 2007.

“… Langston, working with Balducci and Steven A. Patterson, contacted and retained the services ofEd Peters, a close personal friend of Judge DeLaughter. For his services, Langston agreed to pay Peters $50,000 in cash. After paying the $50,000, the parties agreed that they would also divide any money over and above what Scruggs was willing to pay in the Wilson matter,” the indictment states. “In the end, based on this reverse contingency fee, Peters received an additional $950,000 for his services.”

DeLaughter has not returned calls to the Jackson Free Press, but has denied the allegations to other reporters.

 

The Eagle on the sentencings   

February 14th, 2009 by lotus · 13 Comments

The Eagle’s webmaster has finally put up the Friday edition. I was hoping for a look at Tim Balducci but instead we get this photo that makes me wonder about the barber schools in North Mississippi (if any). Anyhow, here you go . . .


Former Mississippi state auditor Steve Patterson (right) with attorney Hiram Eastland as he enters U.S. District Court for sentencing this morning. Patterson appeared light-hearted before being sentenced, asking the photographers taking his photo: “Where were you when I was running for office?” Photo by Bruce Newman.

2/13/09 – Last two judicial bribery defendants sentenced
Alyssa Schnugg
Staff Writer

The last two defendants in what’s been branded the Scruggs I judicial bribery case were sentenced to spend 24 months in federal prison for their roles in the scheme to bribe a circuit court judge.

Timothy Balducci and Steven Patterson both appeared before U.S. District Court Judge Neal B. Biggers this morning at the Federal Courthouse in Oxford.

Both men pleaded guilty a year ago to a charge of conspiring with Richard “Dickie” Scruggs, his son and attorney Zach Scruggs and his law partner Sidney Backstrom to bribe Circuit Court Judge Henry Lackey with $40,000 for a favorable ruling in a lawsuit against the elder Scruggs involving legal fees in Hurricane Katrina related litigation.

During Balducci’s sentencing hearing, U.S. Assistant Attorney Bob Norman told the judge that his department had never seen such “complete cooperation” from another defendant. He said Balducci’s help has opened the doors to other investigations of corruption and that the Scruggs case got as far as it did because of Balducci’s assistance.

“His cooperation was immediate,” Norman said. “He’s doing the best he knows how to do to right the wrong he has done.”

Biggers agreed but reminded Balducci he was the “bag man” in the case.

“You carried the money,” he said. “You talked the judge into going along with what you wanted to do.”

Balducci told Biggers and the court that he was “profoundly sorry” for what he had done.

“All I can do now is try to make things as rights as I can,” Balducci said.

Norman also reported that Patterson has cooperated with the government, albeit to a lesser degree than Balducci.

Patterson was called a “minor” participant in the case, although he received the same sentence as Balducci.

Before he was sentenced, Patterson said he was embarrassed and humiliated.

“If God gave me a choice to live carefree in paradise the rest of my life, or to choose to go back two years ago and change my actions, I would not hesitate to enlist to do the latter,” he told Biggers.

Both men will report to prison on March 25. The government asked for the later reporting dates because their testimony may be needed when the grand jury meets in the March.

The saga began on Nov. 27, 2007, when FBI agents raided Scruggs’ office on the Square. The next day, the five men were indicted.

On Dec. 5, 2007, the day of his arraignment, Balducci pleaded guilty to the bribery charge.

It was later learned that Balducci had been working with the government in building its case against Scruggs and the others.

But it was also Balducci who got the ball rolling. In trying to gain favor with Scruggs, during a meeting with the other defendants in March 2006, he told the famous trial attorney that he could use his friendship to corruptly influence the judge to find in favor of Scruggs in the lawsuit Jones v. Scruggs.

After Balducci approached Lackey and suggested that if Lackey would find in favor of Scruggs, he would give Lackey a place in his law firm after Lackey retired. Appalled, Lackey told the FBI about the conversation. For six months, Lackey allowed his office and telephone to be tapped. In September 2006, in another meeting with Balducci, the subject of money came up and Balducci offered Lackey $40,000. It was later discovered Scruggs was providing the funds.

Balducci was approached by the FBI in November 2007 and he began cooperating with the government and wore a wire tap himself on the day the money was given to Lackey.

Scruggs was sentenced in June to spend five years in a federal prison in Kentucky. His son is serving a 14-month sentence in Forrest City, Ark., and Backstrom is serving 28 months in Forrest City.

Earlier this week, Scruggs was sentenced to seven years in prison for his role in a bribery case involving Hinds Circuit Court Judge Bobby DeLaughter, which came to light during the Lackey case and through testimony of Balducci. The sentence will run concurrent with his original five-year sentence.

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Patterson’s statement

February 13th, 2009 by NMC · 4 Comments

Of all the defendants in this case, Steve Patterson delivered the most churlish statement, showing an unwillingness to recognize the degree to which he is the author of his own fate. If the government had not agreed that he is a minor participant in the crime, his statement at sentence could have been a problem for him.

He said that he’d been waiting over a year for this moment. “The contempt that I once had for this case I no longer have. I have had to endure whispers in the community… endure exaggerated and often wrong press coverage. I stand here today embarrassed, humiliated, and fearful. … I am an embarrassed man with much to be embarrassed about. [Here my notes don't sufficiently convey the degree to which his regret was in terms of his personal embarrassment and his perception that he's been treated unfairly by onlookers in the community and press.]

“If I had a choice to live in … paradise or go back and redo the mistakes and stupidity, I would redo what I did. I have had an opportunity to relive what I did and what I didn’t do and it’s what I didn’t do that bothers the most. In the end I did the right thing. I faced up to my responsibility fully and cooperated fully.”

He had a long rhyme from his Grandmother and a quote from Winston Churchill…

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