An investment banker pleaded guilty Tuesday to bribing Birmingham Mayor Larry Langford and agreed to cooperate with prosecutors, the second co-defendant to admit funneling cash and gifts to Langford in exchange for $7.1 million in bond business.
William Blount, a former state Democratic Party chairman and head of a Montgomery investment bank, admitted giving Langford about $235,000 in bribes in return for Langford's influence in sending the bond financing business to Blount.
Langford was on the Jefferson County Commission at the time, and Blount's firm was among those paid to handle billions in Jefferson County sewer bonds.
Standing in the middle of the courtroom beside his lawyer, Blount pleaded guilty to bribery and conspiracy. For his help, prosecutors agreed to recommend a sentence of four years and three months in prison. Blount will also forfeit $1 million.
Langford is set for trial on federal bribery charges Aug. 31. He says he is innocent and vowed before Blount's hearing not to resign as mayor, a job he has held since 2007.
"The last time I checked, I am still here," Langford said during a City Council meeting Tuesday.
Langford has acknowledged that money changed hands, but he contends the payments were loans and gifts between friends.
The bond deals financed work on Jefferson County's sewer system but went sour during the credit crisis. The deals have helped push the county to the brink of filing the largest municipal bankruptcy in U.S. history.
Recently, Jefferson County had to lay off about 1,000 workers after an occupational tax was ruled unconstitutional, creating long lines for routine business like renewing a driver's license. A new tax was recently put in place to help rescue the county.
Last month lobbyist Al LaPierre, a former state Democratic Party executive director, admitted being the go-between in a conspiracy to route the money to Langford from Blount. Langford, who also is a Democrat, has claimed the case was part of a Republican witchhunt.
Blount and LaPierre admitted providing thousands of dollars in cash, loan payments and other gifts to Langford. Many of the payments went to high-end men's stores, and the plea agreement said some were for purchases Langford made in New York while attending meetings about bond deals.
LaPierre agreed to admit to charges of conspiracy and filing a false tax return. Like Blount, he agreed to testify for prosecutors, who will recommend a sentence of four years in prison. LaPierre also agreed to forfeit nearly $372,000. LaPierre's attorney said that was the amount LaPierre handled for Blount as the middleman.
An attorney for Langford, Michael Rasmussen, was in the courtroom for Blount's guilty plea but declined comment.
Taxpayers will pay Rasmussen's fees to represent Langford because a magistrate judge ruled the mayor didn't have enough money to afford a lawyer. The judge did not rule Langford completely indigent, however.
Copyright 2009 AP News
