Ex-lobbyist said he traded cash for political help

MONTGOMERY | A key government witness testified Wednesday that he gave $9,200 to then-Gov. Don Siegelman for a motorcycle and arranged campaign donations while reaping huge payments on a series of government deals with Siegelman’s help.

Lanny Young, a former lobbyist and landfill developer testifying at the government corruption trial of Siegelman and three others, said paybacks were made on landfill and other lucrative contracts.

He said Siegelman agreed to have a state revenue department tax rate lowered, as sought by Waste Management Inc., in return for a donation by the firm to Siegelman’s campaign for a state lottery. Young, a consultant for the company, said it paid him $500,000 for that work.

Young also said he gave $25,000 to Siegelman’s chief of staff, Paul Hamrick, around the time he got help in a Cherokee County landfill deal that made him $3 million. And he said he stood to make $6 million from a state warehouse project before it fell through due to bogus invoices.

Young has pleaded guilty to bribery and tax evasion and awaits sentencing. Defense attorneys say he is lying to get a lighter prison term.

Under cross-examination by Hamrick’s attorney, Jeff Deen, Young said he did not ask Hamrick to do anything specifically in return for the $25,000. Young also told Deen he did not have receipts for many of the gifts he said he gave to Siegelman’s campaign over the years and that he filed for bankruptcy in 1992, two years before he said he spent thousands of dollars on Siegelman’s 1994 campaign for lieutenant governor.

Siegelman and Hamrick are on trial along with former HealthSouth CEO Richard Scrushy and Siegelman’s transportation director, Mack Roberts. Prosecutors claim government favors were traded for campaign donations and gifts in various schemes while Siegelman was governor and lieutenant governor from 1995 to 2003. Charges against him include bribery and racketeering.

Young testified Wednesday that he gave Siegelman $9,200 for a Honda motorcycle that the governor wanted. He said Siegelman aide Nick Bailey later wrote him a check to make it look like Bailey was buying the motorcycle from Young. Prosecutor Steve Feaga asked Young if ever wanted to own the motorcycle.

“No. This is a Honda. I’m a Harley man," Young answered.

Young said he received an appreciative letter from Siegelman after he delivered a four-wheel drive vehicle and trailer to the Governor’s Mansion for Siegelman’s son, Joseph. That letter said, “Thank you so much for your thoughtful gift. ... Thanks for your kindness. Thanks for all you do for me," Young said, reading from the letter.

One of the schemes prosecutors claim in a 34-count indictment is that Siegelman demanded money from bridge builder Jim Allen in exchange for the governor appointing Roberts to be transportation director. Roberts had worked for Allen.

Young testified Wednesday that he was with Siegelman shortly before the 1998 governor’s election and that they saw Roberts and Allen entering Siegelman’s campaign headquarters.

Young said he asked, “What are those two doing here?" and that Siegelman replied, “Well, if they want the highway director’s job they better have a sack full of money."

Young testified that he asked Siegelman to help him get the revenue department ruling that reduced Waste Management’s tax on some toxic waste the company dumped at its landfill at Emelle in west Alabama.

“He said, 'We’re going to get that revenue ruling for you but those bastards are going to pay for it,"' Young said.

Young, a consultant for Waste Management, said he received $500,000 for the tax rule change and that the company gave $50,000 to the lottery campaign.

A Waste Management spokeswoman in Houston, Lynn Brown, said that because the trial is ongoing, it would be inappropriate to comment at this time.

Young said that Siegelman, Hamrick and Bailey were happy when he was making money.

“If I made money and Paul or Don or Nick needed something financially I would be able to provide it," Young said.

Bailey, another key government witness, also has pleaded guilty and awaits sentencing.

Young said one opportunity he had to make money came when he was made construction manager for a project to build two state warehouses in Montgomery. He said he stood to make as much as $6 million if the warehouses had been completed.

The no-bid warehouse project later fell through when it was discovered that invoices had been filed for work that had not been completed.

He said Bailey, Hamrick and Siegelman wanted Young to head the warehouse project because “it was an opportunity for me to make some more money."

Young has testified that he gave thousands of dollars and provided other gifts to Siegelman’s campaigns for governor and lieutenant governor. In exchange, he says he expected favors from the governor, such as the calls concerning the landfill deal.

Around the time of the Waste Management deal, he said, he received a letter from Siegelman. He read from a framed copy of the letter: “Lanny you are something. I really appreciate your friendship and look forward to us spending more time together. You are special."

Young also testified Wednesday that he made $3 million off the sale of a landfill in Cherokee County after Siegelman called members of the county commission to ask them to change landfill regulations. Young has pleaded guilty to paying bribes to Cherokee County Probate Judge Phillip Jordan for his help in getting the regulations changed.

Young also said Wednesday that he gave Hamrick $25,000 to buy a BMW automobile around the same time as the Cherokee County landfill deal.

Prosecutor Steve Feaga asked Young why he gave Hamrick the money.

“I gave it to him because I would ask them for things and they would ask me for things and I did it because they asked," Young said.

Lanny Young testified Wednesday that former Gov. Don Siegelman agreed to have a state revenue department tax rate lowered in return for a $500,000 donation to his lottery campaign.