http://www.al.com/news/birminghamnews/index.ssf?/base/news/1210925739119360.xml&coll=2Federal grand jury looking into Jefferson County bond deals, Larry Langford's financial dealings
Friday, May 16, 2008VAL WALTONNews staff writer
A federal grand jury is investigating Jefferson County bond deals and Birmingham Mayor Larry Langford's financial dealings.
Steve Sayler, the county's finance director from 1989 to 2007, and Norm Davis, who was a county financial adviser during Langford's tenure as commission president, were in the grand jury room at U.S. District Court in Birmingham on Thursday.
Both men entered the room at 1:24 p.m. Sayler emerged shortly before 2, saying he was subpoenaed to testify, but was excused because officials "were running behind."
His attorney, Tommy Spina, said Sayler apparently was subpoenaed to testify about the same matters he testified on before the U.S. Securities and Exchange Commission in Miami.
"It is my understanding that he would share with the grand jury the same information that he had previously shared with the SEC in Miami," Spina said, adding that Sayler testified about procedural matters as they related to the bond transactions.
The SEC filed a federal civil lawsuit April 30 against Langford, lobbyist Al LaPierre and Montgomery investment banker Bill Blount, claiming the three longtime friends engaged in improper conduct related to the Jefferson County bond deals.
The SEC suit accuses the three of developing a fraud scheme, and it claims payments were made to Langford, then Jefferson County Commission president, through LaPierre so Blount could receive $6.7 million in county finance business. The lawsuit also names Blount's firm, Blount Parrish & Co.
Langford has said he is confident he will be cleared of the SEC's claim and has called accusations against him political.
Lawyers for Blount and LaPierre said they will fight the SEC's complaint, contending the securities commission does not have jurisdiction to file the case because it does not regulate the type of financial deals the county used.
The lawsuit stemmed from a broader, national investigation under way by the SEC and the U.S. Justice Department into the use of interest-rate swaps, which are complex agreements to exchange one type of interest rate for another on bonds.
Langford, who testified before the SEC, told federal investigators he depended on the counsel of Sayler and Davis, an executive with National Bank of Commerce, now known as First American Bank, during the deals.
Spina said Sayler - whom Langford hired as the city's finance director when he became mayor - has always cooperated with the government whenever it has subpoenaed him. If subpoenaed next month, Sayler will continue to do so, Spina said.
Davis, accompanied by his attorney, H. Lewis Gillis, declined to comment after he left the grand jury room shortly before 3 p.m.
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"We're just being good citizens," Gillis said as they left the courthouse.
Langford said Thursday he has not been subpoenaed to appear before the grand jury.
David McKnight, a lawyer for Blount, said Thursday that Blount's companies received federal subpoenas for documents, which have been delivered to federal investigators. McKnight declined to identify the documents.
Among the areas under federal investigation are private charities Langford controls that received hundreds of thousands of dollars from vendors doing county and Fairfield business when he served in those governments.
U.S. Attorney Alice Martin said Thursday she could not comment on the work of the grand jury.
Also testifying before the grand jury this week was Keith Nelson, general manager of Birmingham Budweiser Distributing Co., who is listed in a partnership with Langford called CMNLL Inc. Langford has said he owns a 20 percent interest in CMNLL Inc., which was set up to purchase real estate and operate convenience stores.
Nelson's attorney, Christie Lynam, confirmed Nelson testified before the grand jury but declined to comment on that testimony.
Langford has said that he worked full time, earning about $80,000 a year, handling public relations for Birmingham Budweiser while serving on the County Commission.
E-mail: vwalton@bhamnews.com
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