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Siegelman Prosecutor: Money Laundering Isn't a Crime
Responding to a Time story published last week which paints a murky picture of the lead-up to the prosecution of former Alabama Gov. Don Siegelman (D), Alabama Assistant US Attorney Steve Feaga tried to minimize secret testimony the magazine unearthed.
According to sensitive documents obtained by Time's Adam Zagorin, the Siegelman corruption investigation was sparked by statements made to federal agents by state lobbyist Lanny Young. The documents also revealed that the same lobbyist implicated two other powerful Alabama political figures in bribery schemes, both Republicans--Sen. Jeff Sessions and Session's successor as attorney general, William Pryor, who is now a federal judge--but no effort to investigate those claims was ever initiated.
Feaga, the prosecutor on Siegelman's case explained that Young's testimony was only relevant in Siegelman's case -- and not in the cases of the two Republicans -- because: "At the time Lanny was detailing having made contributions to other public officials, he characterized these contributions as legitimate. There was no understanding he would get something for them."
And what were these legitimate contributions? From Time:
Early in the investigation, in November 2001, Young announced that five years earlier, he "personally provided Sessions with cash campaign contributions," according to an FBI memo of the interview. Prosecutors didn't follow up that surprising statement with questions, but Young volunteered more. The memo adds that "on one occasion he [Young] provided Session [sic] with $5,000 to $7,000 using two intermediaries," one of whom held a senior position with Sessions' campaign. On another occasion, the FBI records show, Young talked about providing "$10,000 to $15,000 to Session [sic]. Young had his secretaries and friends write checks to the Sessions campaign and Young reimbursed the secretaries and friends for their contributions."
Sure, this isn't a cash-for-favor situation, but as Time notes, such an alleged arrangement could still be illegal political money laundering.
Comments (7)
Wilson46201 wrote on October 8, 2007 5:29 PM:What do you mean - _could_ be money laundering? That sounds like classical money laundering - no ifs, ands or buts about it! There are limits that an individual can donate to federal political candidates and channeling excess cash through cutouts is illegal as all heck...
Derrick wrote on October 8, 2007 7:36 PM:Don Siegelman is one of the most corrupt politicians in the country.
He deserves to rot in prison for being a thief.
Anonymous wrote on October 8, 2007 8:23 PM:That's good Derrick. I like your moral stand on the issue. Should all the corrupt politicians be in jail or just the Democrats?
"At the time Lanny was detailing having made contributions to other public officials, he characterized these contributions as legitimate."
The briber's testimony is only relevant to the case the briber says is a crime?
WTF?
paul wrote on October 8, 2007 8:29 PM:Damn. They're not even trying.
Young was talking to the FBI about politicians he'd made illicit contributions to, and the prosecutor thinks he was characterizing laundering money through intermediates as legitimate?
Perhaps this guy should be transferred up to Alaska, where he can explain to the local lawyers that Veco reimbursing employees for political contributions is perfectly legitimate.
buck wrote on October 8, 2007 8:47 PM:What a rotten state--if all these confessions are to be believed, at one time, the governor, both senators and the AG were all on the take. Given that background, the chances of Mr Feaga being clean are...
heh wrote on October 9, 2007 1:45 PM:another tortured explanation of Republican right and wrong.
Geez those corruption classes held by Karl and company had some really bright students! They learned their lessons well.
Susan wrote on October 9, 2007 5:29 PM:IF Young's allegations are true, the crime was committed by Young and his surrogates and not by Sessions (who Young admitted didn't know of the arrangement). If Sessions is guilty, then Hillary is too because this is exactly the same money laundering scheme that Hsu used.