C.D. “TONY” HYLTON, III
International award-winning author, C. D. “TONY” HYLTON, III is a journalism veteran and his career has taken many forms—Editor/publisher of the Hinton (WV) Daily News (now Hinton News); public relations practitioner for a Washington, D.C. based national trade association and Weirton Steel in West Virginia, Communications Director for AARP in Virginia, and Public Information Officer for a major U.S. Army Command in Vietnam. Comes Around is third in the Rick Hill series and continues Tony’s examination of the principled interaction journalism and the rough and tumble brand of local politics found in southern West Virginia in the 1960s. Enough, And Raise Hell are the first two books in the series. Enough won Honorable Mentions at the Paris, Hollywood, and New York Book Festivals. And Raise Hell is a Next Generation Indie Book Award Finalist, plus won a Southern California Book Festival Honorable Mention. Tony is a proud double graduate of West Virginia University— (Bachelor of Science, Journalism and Master of Arts, Political Science. He is a former member of the West Virginia House of Delegates.
WHAT GOES AROUND...
COMES AROUND
What goes around...COMES AROUND in this third book of C. D. “Tony” Hylton’s award-winning Rick Hill series. Lawnsville Crier publisher Rick Hill continues his crusade against the crooked politics that have ruled over the citizens of Jordan County—deep in the mountains of southern West Virginia—for decades. The dedicated newsman’s frustrations continue as he watches while a political crook—with Houdini-like escape abilities—suspiciously moves from local political mischief to statewide scams. At that level, the crook’s subterfuge continues with success. Again, the Crier’s publisher’s hopes soar when it appears that the U.S. Attorney has initiated a new strategy that takes an entirely different approach to bringing the political kingpin to justice. But Rick Hill’s frustrations surge as the new approach by federal prosecutor's floundering.
C.D. “TONY” HYLTON, III
Comes Around
C.D. “Tony” Hylton III
Publisher Page
an imprint of Headline Books
Terra Alta, WV
Comes Around by C.D. “Tony” Hylton III copyright ©2024 C.D. “Tony” Hylton III All rights reserved. This book is a work of fiction. Names, characters, places, and incidents, except where noted otherwise, are products of the author’s imagination, or are used fictitiously. Any other resemblance to actual people, places or events is entirely coincidental. No part of this publication may be reproduced or transmitted in any other form or for any means, electronic or mechanical, including photocopy, recording or any information storage system, without written permission from Publisher Page. To order additional copies of this book or for book publishing information, or to contact the author: Headline Books, Inc. P.O. Box 52 Terra Alta, WV 26764 www.HeadlineBooks.com mybook@headlinebooks.com Publisher Page is an imprint of Headline Books ISBN 13: 9781958914250 Library of Congress Control Number: 2023944864
P R I N T E D I N T H E U N I T E D S TAT E S O F A M E R I C A
To true journalists – who fight the good fight and use fairness and accuracy to ensure they adhere to the responsibility – hold public officials accountable – bestowed on them by this nation’s Founding Fathers in the Freedom of The Press clause of the First Amendment of the United States Constitution.
Characters Rick Hill – Publisher, Lawnsville Crier Charles Beauregard – Leader, Jordan County old-line political faction Red Bell – Leader, Jordan County old-line political faction Charles Woolen – respected member of old-line election committee Baxter Edwards – Leader, Jordan County, reform political faction Sam Keaton – President, Jordan County Board of Education Tom Arrington – former Lawnsville City Councilman, candidate for Jordan County Board of Education Hattie Mae Cooper – member of Jordan County Board of Education Eva Newland – retired school principal, crafty behind-thescenes political operative Lacy Little – reformer member, Jordan County Commission running for re-election. Bill Joe Hamrick – former old-line member, Jordan County Commission running again. Edward Whitmore – discredited former president, Jordan County Board of Education Anonymous – 85-year-old woman who gives news tip to Crier publisher Elwood Hugh – Superintendent, Jordan County Schools Joseph Ballengee – former publisher, Lawnsville Crier Joseph P. “Joe” Brown III – new leader of Jordan County oldline political faction
Hugh Bird – Lawnsville attorney and business partner of Red Bell and Beauregard Raymond G. “Sonny” Monroe – West Virginia Democrat Governor Wilson McDuff – Senate President who became Governor when Sonny Monroe was convicted Belinda “Billie” Amherst – Community News Editor, Lawnsville Crier John McDowell – Lawnsville carpenter and one of four brothers involved in riverfront property Leonard McDowell – youngest of the four McDowell brothers John Hardy – lawyer for the McDowell brothers Ruby Miller – County Clerk of Jordan County Herbert Deskins – Circuit Judge for the district which included Jordan County Jarrett Field – U.S. Attorney, Southern District of West Virginia Wayne Adkins – former Lawnsville Mayor and convicted felon Ben Howland – former Lawnsville Mayor and convicted felon Will LeMasters – Administrator of Jordan County Hospital and tacit old-line supporter Sally Jones – Lawnsville bank employee who oversaw safety deposit box sign-in records Lawrence Brownstone – retired official, Lawnsville bank, now living in Florida Owen “O” Williamson – beer distributor involved in kickback schemes Franklin Bowman – President, Business Management, which holds state furniture contract Larry Loom – Lawnsville Crier advertising manager 5
Eddy Bill Graves – Sheriff, Jordan County, solid old-line, also close to Crier publisher Anne Hill – Crier publisher Hill’s wife Harriet and Charlie – the Hills’ two children Edward “Big Ed” Marcum – Patriarch of a large family in the northern end of Jordan County Basil Hammer – Patriarch of a large family in the southern end of Jordan County Sara Jane Lively – retired schoolteacher and devoted reader of Lawnsville Crier
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Introduction Only one thing stands between our nation’s democracy and tyranny – a free press dedicated to holding public officials accountable. In breaking away from England and establishing a new country, the Founding Fathers of this new Nation understood the inherent weaknesses of humankind in positions of power – misuse of that power, favoritism toward political supporters, and outright dishonesty. In their deep discussions and exploration of possibilities of preventing this new government from going off the cliff of tyranny, they decided on an independent, non-governmental, uncontrolled institution – a free press. It wasn’t licensed, and it wasn’t regulated. Our nation’s founders envisioned this free press to constantly look over the shoulders of public officials and hold them accountable – inform citizens in a fair and accurate manner of the actions of government. That’s what our Founding Fathers sought to establish. Over the years, we’ve found that the mere threat of a questionable behind-the-scenes action getting into the press often was enough to keep public officials in line.
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Chapter 1 Public means We the People – Lawnsville Crier Publisher Rick Hill had a front-row seat as the Jordan County political landscape was rocked to its very foundation in an election ass-whupping in the 1960 primary two years ago. The old-line faction, which had dominated the county for decades, lost its majority on the Board of Education and saw its candidate for the County Commission get soundly beaten. Delivering to supporters the patronage jobs available from those two county agencies had been essential for the faction to maintain its power. The old line continued to control a number of state jobs in the county through its clout with the Democrat state administrations. However, the number of those coveted jobs was nowhere near the number of patronage positions in county government. Further, the debacle hurt the old line’s reputation around West Virginia as one of the most effective county political machines in the entire state. With its influence in surrounding counties, the Jordan County old-line was a political force recognized across the southern end of the state. In Democrat primaries for statewide office, such a well-oiled political machine could make the difference between victory and defeat. Therefore, those seeking the party’s nomination for statewide offices lined up to pay the considerable “organizational fees” required to get on the old-line slate in Jordan and adjacent counties. 9
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So the failure of the old-line to rebound in the upcoming election could cause permanent damage to that well-honed reputation. That reputation put considerable “left-over” election cash in the pockets of the old-line’s leaders – who, in most recent years, were Beauregard and Bell. With Red, the faction’s longtime on-the-ground election operations/precinct organizer, headed to federal prison, it fell to Beauregard to resurrect the old-line reputation. As in the election two years ago, complicating his task was the Lawnsville Crier’s aggressive coverage of local government bodies providing the truth to readers about the county’s overall political climate. Leaders on all sides of the county’s politics understood that the paper’s stories were the major reason that the old-line officeholders were thrown out of office in 1960. For decades, until that election, the former Crier publisher had protected the old-line faction – writing glowing stories of its candidates and not covering at all its office holders’ frequent errors of judgment and misuse of public money. The old line’s performance in the first election after Joseph Ballengee sold the Crier was an absolute disaster for its candidates up and down the slate – the only exception being Sheriff Eddy Bill Graves. But the reform faction’s takeover didn’t entirely eliminate the Crier publisher’s concern about the operation of Jordan County’s government bodies. Now he was worried more about members of Jordan County public bodies taking discussions of public business behind closed doors than he was about their stealing public money or other illegal actions. To the journalist, that type of secrecy could be just as damaging. It was simple for him: to hold public officials accountable, the public must be aware of how those public officials operate and make decisions and that must be done in the open. The Crier publisher understood the mindset of many elected officials was that the only thing that should be public was the 10
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final decision, not the decision-making process and discussions leading up to the final public vote. Many of these office holders just don’t like to engage in controversy in public. To Hill, such a view by public office holders violates the people’s right to be fully informed, the only way public officials can be held accountable. Given the never-ending challenges of getting the Crier out every day, Hill didn’t have much time or the luxury of pondering the basic reason that we have the press in this country. It never ended – from somebody complaining about a late delivery; to a paper carrier getting sick and not covering their route in Lawnsville; to misspelling the bride’s name in a wedding story; to a breakdown on the antiquated press making the paper late getting to readers – all these took up most of the precious spare time the Crier publisher had. Nonetheless, his journalistic principles always guided his oversight of The Lawnsville Crier. Holding public officials accountable is the reason that Freedom of the Press is included in the U.S. Constitution. In considering all the ways to hold public officials accountable, the Founding Fathers selected an independent, non-governmental, non-regulated, unlicensed institution – the press – to handle this fundamental responsibility – which, to Hill, was the foundation of democracy. Without accountability, the nation would be a dictatorship made up of tyrants who completely ignore the rights of We The People. As Crier publisher, Hill sees accountability as the foundation from which the press (in this case, The Lawnsville Crier) operates to fulfill this constitutionally imposed responsibility. An adjunct to this credo was Rick’s feeling that the governments closest to We The People have the biggest direct impact on their lives. Coverage of these local public bodies is of paramount importance. Hill’s point of view is simple: “Public business” means “public business.” Public offices belong to the citizens, not to the people elected to temporarily occupy those offices. 11
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While covering some recent meetings of the school board, because of short public discussions and quick votes on complicated issues, it was clear to the Crier publisher that the board members and superintendent had discussions prior to the public meetings. Near identical verbatim denials to his questions on the subject by the board president and superintendent only increased Hill’s suspicions. This has to be nipped in the bud, Rick thought as he sat in his cubbyhole office before his typewriter, pondering the “and raise hell” part of the Crier’s motto as he gathered his thoughts for what would be a scathing Page One editorial. The Crier motto was taken from an 1861 Chicago Times Editorial by Wilbur F. Storey – “It’s a newspaper duty to print the news and raise hell.” Are Our Elected Officials Acting Like PUBLIC Officials? greeted Crier readers as they picked up the next day’s edition. Some smiled knowingly – “he got ’em.” Others mumbled, “that damned Hill doesn’t know what he’s talking about.” And a significant number thought, “that’ll keep them on their toes.” Hill’s scorching words leapt off the Crier’s front page: “There’s a reason people who hold elected offices are called PUBLIC servants. It’s really simple – the offices they hold are NOT theirs. They belong to the citizens – We, The People – NOT the politicians who occupy them. And these officials set PUBLIC policy and spend PUBLIC money while holding these offices. “A bedrock of this nation’s system of democracy is being able to hold our officials accountable for their decisions, policies, and actions. That can only be done when PUBLIC business is conducted in PUBLIC.
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“Not only are decisions to be made in PUBLIC, but the discussions leading up to those decisions are to be conducted in PUBLIC – not in secret meetings away from scrutiny by We, The People. “Recent meetings of the Jordan County Board of Education seem to indicate that some discussions are taking place behind closed doors before public meetings. Decisions on several complicated issues have been made during recent Board meetings without any questions or discussion at all – motion made, seconded, and the vote. It was like the decision had already been made before PUBLIC meetings were convened. “If our suspicions are correct – it’s time (really past time) for this unacceptable practice which shows contempt for the public to stop! Granted, some items like sensitive personnel issues and contract negotiations are matters that, at times – very rarely – are best discussed in private. Other than that, all discussions – especially on controversial issues – should be in PUBLIC. If our elected officials don’t like to discuss controversial items in PUBLIC, then they should resign. Don’t mean to imply those folks are bad people. They just don’t like to be front and center before the PUBLIC while discussing such issues. “Seeing how our officials discuss and address controversial issues is an important element in the Constitution to holding elected officials accountable. “Now the Crier staff can’t watch every elected official all the time. So we ask our readers to call the Crier if they hear about any of our public bodies’ members – city council, board of education, county commission, or hospital board – meeting in secret.
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“We will check out these reports and inform our readers of the results of Crier investigations. We also invite members of any local governmental body to send the Crier a Letter to the Editor if they disagree with or want to comment on this editorial.” When his phone didn’t ring within an hour after the Crier hit the streets, Rick smiled. “Guess I’ve got ’em running for cover.” Finally, the clanging nudged him from his musing. “Were you just fishing?” Baxter Edwards asked. “Hell, I don’t even have a license,” Rick chuckled in response. “That was pretty strong. Members of the board are upset.” “Let them call me. I invited them to write a letter if they wanted to take issue with the editorial, Baxter. I must have hit close to home,” the Crier publisher pressed. “How would I know? I’m not a member of the board,” Baxter dodged. “Baxter, don’t try to ‘good ol’ boy’ a good ol’ boy,” the Crier publisher replied, certain the caller on the other end was privy to the thinking of the new board majority on every issue coming before the body. “It was pretty strong without proof,” the reformer politico concluded. “Baxter, time will tell about that. I’m not letting up on this,” Rick said. The next morning right after he sat down at his brand-new desk in the brand-new Crier building, Rick picked up on the first ring, “They’s board members having breakfast tomorrow about 7:00 up to the park in one of them small rooms downstairs,” the creaky 85-year-old said through her wheezing. “Are you sure?” Rick managed quickly. “’bout as sure as shootin’,” his ace “anonymous” news source said before the click. 14
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Rick, concerned someone would recognize the car he normally drove, took his wife, Anne’s, car and headed for the state park about 10 miles out of Lawnsville. He parked in the back of the large lodge parking lot. He watched as the Jordan County Board of Education members arrived – two together and the other three separately. Superintendent Hugh Elwood arrived with two of his assistants. The Crier publisher waited about ten minutes, then went in a side door of the main lodge and made his way down the hallway where the small meeting rooms were located, stopping in front of the one a waitress was entering with a coffee pot. The Crier publisher stepped in behind her and snapped two pictures before any of the board members or the superintendent realized what was happening. Then he sat down and took out his notebook. Stunned, Sam Keaton, the board president, stammered, “Rick, we were just catching up on some things.” “Don’t let me stop you,” Rick said, writing down the names of all those attending, including the superintendent and the two assistants. “That about covers it,” the president said as he got up and headed for the door. “What were you discussing,” Rick asked. “Oh, nothing much,” the president stammered. “Must have just come up since you all had your regular public meeting just two days ago,” Rick said, drawing out the word public slowly as he left the room. ‘Oh, Nothing Much,’ Board President Says about Secret Meeting Discussions Blazed across the top of Page One of the next day’s Crier. Underneath was one of Rick’s pictures showing Superintendent Elwood Hugh and all the board members with stunned looks on their faces. 15
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“All members of the Jordan County Board of Education, Superintendent Elwood Hugh and two of his assistant superintendents attended an unannounced meeting held yesterday morning in a Bluestem State Park Lodge meeting room. “Other than saying, ‘Oh nothing much,’ Board President Sam Keaton refused to answer when asked by Crier Publisher Hill specifically what the meeting was about. After the Crier publisher arrived at the meeting unannounced, Keaton adjourned the meeting about 10 minutes after it began. The Board’s regular monthly meeting was held just two nights before this clandestine meeting. The Crier has learned that someone from the Board of Education reserved the room at Bluestem Lodge two days before that last board meeting.” Rick’s 85-year-old source had provided the specific information in that initial call. “How’s she do it?” Rick marveled as he reread the story. The story was only a few paragraphs, but it reverberated across the county. Most offended were many reformer supporters who had campaigned long and hard in the last election under the banner “It’s time for a change,” and for the first time in about 25 years, the reformer faction got a majority on the Jordan County Board of Education. Joseph Ballengee poked his head in Hill’s office when he dropped off his column for the next day’s paper. “That was some picture on Page One today. How’d you get that one?” the former Crier publisher asked. “Joseph, you know how Lawnsville is – hard to keep a secret,” Rick responded, interested to see what else his predecessor might have to say. 16
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“I knew you’d have to watch Baxter’s bunch on the board. They just can’t be trusted. They’ve been like that for years. Have you heard from them?” Ballengee asked. “Oh no, I don’t expect to. You should have seen the looks on their faces when I snapped the pictures,” Rick responded chuckling. “Don’t be surprised if they try it again. Next year, two board seats will be up in the election. That could be a real hot campaign,” Ballengee said as he headed for the door. No sooner had Ballengee departed than Rick’s phone rang, “Rick, this is Superintendent Hugh. I just want to explain about that meeting yesterday morning.” “I’m listening,” Rick responded. “With three new members of the board, I felt it was important to have a workshop on the state law that governs county school systems, and that was what the meeting was about,” the superintendent said. “Superintendent Hugh, there is no explanation that can justify that meeting. And if I find out something like that happens again, I’ll ask the State Attorney General to investigate to see if there’s a violation of the state open meetings law. If there is, I’ll seek to have all board members involved removed from office,” Rick responded. “Also, I didn’t see one law book at that meeting. And there were no handouts in front of the board members. I don’t know what was scheduled to be discussed, but I do know that just holding that meeting was an insult to every citizen in Jordan County,” the Crier publisher said in a slow cadence to make sure the superintendent got every word. “Further, you don’t call the board meetings; the President of the board does. The fact he had you call me rather than calling himself is a clear indication of a failure to understand his responsibilities as board president. 17
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“You want to explain the reason for the meeting – write a letter – put it in writing. Not a word you said in this call will get into print. I don’t trust you or any member of the board to stand by a word you say. Thanks for calling.” Click. Rick checked his watch. He expected ten minutes, but it was only eight before the president of the Jordan County Board of Education called. “Rick, I’m calling to explain about that meeting,” Sam Keaton said. “Like the superintendent just told you, Sam, I don’t trust a word you, any member of the board or the superintendent says. If you want to explain, write a letter, and I’ll print it in the Crier word-for-word. So there’s no need for this conversation to go any further.” Click. Two days later, as he took mail out of the Crier box, Rick saw a letter with Sam Keaton’s name and return address. Well, well. This one could be interesting, the publisher thought on his walk back down to the new Crier building. The Board President’s letter explained that the unannounced meeting was held to go over state law governing county school boards because, in the previous election, a majority of the board was elected, something that hadn’t happened in Jordan County in more than 40 years. Sam Keaton went on to explain that the board felt it would be better to hold such a meeting away from the Board offices so members could concentrate on the subject without any distractions. In conclusion, Keaton apologized for holding the meeting without any public announcement or allowing members of the public to observe the proceedings. A short notice ran on Page One, making Crier readers aware of the letter on the editorial page. Deciding to let the board president have his say unencumbered, the Crier publisher resisted the urge to run another scathing editorial criticizing the board right next to the letter. 18
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Over the next week, several letters to the editor on the subject made their way to the Crier editorial page. Some were from old-line supporters taking the new board majority to task for meeting behind closed doors. One was particularly harsh, from a close ally of Joseph P. “Joe” Brown, III, Jordan County Democrat Chairman and heir-apparent to take over the old-line faction, which called on all the Board members to resign. A few reformer supporters wrote to accuse the Crier of unjustly picking on the new board majority. While Rick didn’t receive any assurances from board members or the Superintendent, the Crier publisher was nearly 100% certain that the Jordan County Board meeting would not be having any unannounced meetings anytime this century.
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Chapter 2 A Major Change in Jordan County Elections Rick did agree with what Joseph Ballengee had said – the campaigns will be very heated to fill the two school board seats in the next election. And the seat to be filled on the county commission would add fuel to the fire. But there would be one important difference in this election. For the first time in anyone’s memory, Bell would not be heavily involved. To watch Bell at the cleaners, no one would know that he was awaiting sentencing for a federal voter fraud conviction or facing a trial along with Beauregard and the governor for bribery. He was calmly going about giving folks their cleaning and taking in the clothes they needed to drop off. Red was at ease with his decision in the bribery case. Under pressure from the U.S. attorney, Red wore a hidden recorder to get evidence against Charles and the governor to reduce his own sentence for the conviction of voter fraud in the last primary election. Since his action to trap the governor resulted in Charles’ indictment for bribery, Red’s relationship with Charles had completely ended. Any communications between the two about River Play, their joint real estate development, was handled by Lawnsville attorney Hugh Bird. After he conferred separately with the two, Bird approached a large real estate firm in the state capital to begin marketing it across the state and adjacent areas of other states. The plan was for the development to be renamed, Red and 20
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Charles’ names to be removed as directors, and Bird to be listed as the sole director and oversee the development’s management. But through a private agreement, the two political kingpins would still receive money from the sale of River Play lots even if they were sentenced to federal prison. Despite being indicted in connection with the development, Governor Sonny Monroe had his staff move forward with getting the federal grant for the Jordan County Public Service District to extend water service to the development. In its justification for the extension and making no reference to the River Play community, the governor’s office attached to the application a map showing the extension would bring water service to about 75 families outside the development. The Jordan County application was carefully buried among the hundreds of pages of paperwork for 15 other projects for public service districts throughout the state. All the projects were quickly approved in Washington. In addition, to the water service extension, the governor saw that the old-pothole-filled road to the property was replaced by a brand-new two-plus lane road as good as any in the state. Joe Brown stopped in the cleaners at least once a week to discuss with Bell the general Jordan County political climate. During one of their visits, Joseph Ballengee, the former Crier publisher, happened by. Ballengee’s advice was to keep an eye on the Board and send a letter to the editor every month or so criticizing some action of the board. “Joe, you shouldn’t write all the letters. Get a retired teacher or retired school employee to do them. Have people from different areas of the county write,” Ballengee advised. “It’ll be tough to come back, but that’ll help put the board on the spot and get folks asking questions of board members. Then you all run on a theme ‘it’s time for a change,’” he concluded. After Ballengee left, Red endorsed the former newspaperman’s idea and added, “also, you need to make personal visits to members of the campaign committee and ask their thoughts 21
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about candidates and what needs to be done. My and Charles’ bribery trial will be coming up within the next two months, and the old line will be spread all over the Crier, so you’ve got to make sure they don’t get down and stop helping us.” “Our folks seem more mad than down, but I’ll keep in close touch,” Joe Brown assured. “Sure wish that Wayne Adkins would just plea in the roadblock case. Both of those could get real messy for us,” Red said. Former Lawnsville Mayor Wayne Adkins had been convicted for his role in the conspiracy that burned the Crier to the ground. In addition, Adkins was awaiting trial for attempted murder for his role in the unsuccessful plot to kill Hill on a deserted Jordan County road. Joe Brown kept silent, resisting the urge to make the same negative observations about Red, Charles, and the governor’s trial for bribery in connection with the riverfront development. Red seemed to sense Brown’s unease. “Yes, and that bribery trial with me, Charles, and the governor won’t help any either. Hopefully, it’ll be over fast,” he said with more hope than confidence. Changing the subject, Red suggested that Joe go down and introduce himself to Hill at the Crier, “I think it might be good if you take the ‘bull by the horns’ and introduce yourself. Let him know you’re working to bring the old-line faction back. Offer to do an interview if he is planning a story on you being named the new county Democrat chair. Couldn’t hurt any.”
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Chapter 3 Riverfront Land Deal Gets Brothers All Wet Members of the Crier staff were still having some trouble getting used to the new building with its big front window, bright, well-lit office, sparkling new tile floors, new furniture, and up-to-date electric typewriters. Still fresh in their minds were the memories of the cramped office-in-exile, hastily rented after Crier building burned, with decrepit desks and chairs that were refugees from attics, garages, and basements all over Lawnsville, and the harsh light bulbs hanging down on single wires from the grimy ceiling. Of course, Hill was planning to have a ceremonial ribbon cutting to formally open the new Crier building in a couple of months. He had no idea how “little” would be transformed into a national event by a single handwritten note. Never bashful about bringing complaints to the publisher, the Crier’s Community News Editor, Billie Amherst, gave him an ear full about the need for a new front counter and storage shelves in the composing room. True to his word, Hill called John McDowell, who had done carpentry work in the old Crier building, to get an estimate on the work. It was John and his three brothers who had sold the 300 riverfront acres along the Greenbrier River that had become ensnared in the bribery case involving Bell, Beauregard, and Governor Sonny Monroe. The four McDowell brothers had inherited the property from their father. In the midst of their grieving his sudden death, they 23
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were rushed into selling it at a rock-bottom price of $6,000 by Lawnsville attorney Hugh Bird. Unbeknownst to the McDowell siblings, at the same time the lawyer was handling the estate, he also was representing River Play – his, Red, and Charles’ company – which the three planned to use to develop that beautiful stretch along the Greenbrier River. “What do you know about that development those three put on our property up on the river?” McDowell asked Hill one day when he finished the carpentry work. The Crier publisher was a bit uneasy with the question since an honest answer would include letting McDowell know, if the rumors around town were true, John and his brothers had taken a rock-bottom price for what was prime riverfront land. He decided there was only one way to answer the inquiry. “They stand to make a fortune, John. It’s a pretty stretch of the river, and with that new road and water line, folks from all over this end of the state will be buying up those lots,” Hill said, knowing John would not react well to the answer. “I thought that might be the case. As I look back, Lawyer Bird was a little too slick on that. Talked us into not having it appraised before we sold it. He was dad’s lawyer and handled all the will stuff after dad died,” John McDowell said, regret written all over his face. “Dad’s death hit us all real hard, and we just weren’t paying attention to all that about the land – we just wanted to sell it.” “Did you know he was representing Red and Charles too on the deal?” Rick asked. The carpenter looked at Rick, puzzled, “Oh no. We didn’t know anything about that. He didn’t mention it. Found that out when I read the story in the Crier about Red, Charles, and the governor and that bribery case.” “John, I don’t want to get into your business, but that doesn’t seem right for a lawyer to represent both sides and not let you know,” Hill said, “You might want to check into that.” 24
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“What do you mean? We got our money and all.” “Well, I don’t know, but you might want to check into it,” Rick said. A frown came over John McDowell’s face, “I’m not sure I’d know how to do all that, but I’ll think about it.” “If you do, be sure and let me know,” the Crier publisher said as the carpenter was packing up his tools. Emma Jean, John’s protective wife, spoke up. “John McDowell, you will do something about this. You all might have been cheated. You get those brothers of yours over here tomorrow night to talk,” Emma Jean said in that special tone she used when she felt her husband needed extra motivation for action. As his three brothers sat around the dining room table, John told them of his conversation with the Crier publisher. “Don’t see how we can undo this. We just got cheated. Hear they are asking $4,000 for a single lot up there. More for some right on the river,” the youngest brother said. “We can’t talk to any lawyers here in town; they’d tip off Bird about what we were doing,” he added. The third, the oldest, had been listening intently without saying much. “Well, you know Sally Ann, my oldest, is dating a fellow going to law school up at WVU. It won’t cost anything to have her ask him about this. I’ll talk to her tomorrow.” Bringing in some more coffee to go with her special homemade cookies, Emma Jean just winked at a now-smiling John. “It’s all just a waste of time,” the youngest said. “You’re probably right, but it won’t hurt to at least check it out,” John said, reflecting the pessimism. “Now, we can’t mention this to anyone at all. We can’t let it get back to Bird. He’d just stir up trouble,” John cautioned. Three days later, John’s older brother called, “Sally Ann’s boyfriend talked to one of his law professors and said he was 25
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going to dig a little deeper. He’ll let us know if he finds anything. She gave him your address if he wants to send anything.” A week or so later, John McDowell couldn’t believe what he was reading. He looked up and then reread, slower this time, the five sheets of paper in front of him – the words didn’t change between the two readings, but his attention was even more focused. “How could this happen? This can’t be true. This kid is not even a lawyer yet,” he thought. He rushed over to the phone, placing the first urgent call. He waited until his three brothers had gotten a cup of coffee and some of Emma Jean’s chocolate chip cookies. “This better be good. You got me driving in from out in the country,” the young brother said, none too happy at missing the beginning of the Reds game. “Okay, what the hell is so damned important,” the oldest McDowell brother blurted out as John unfolded the five sheets. Not one to drag things out, John quickly said, “we got cheated, and we might could get some more money out of this. Bottom line: it seems it might not be legal for Lawyer Bird to be working for Red and Charles while he was doing dad’s will. If we find out he lied to us about the property’s value so they could buy it cheap, he could be in big trouble.” “You’re lying,” the youngest brother said, reaching for the papers. “You might have a pretty smart son-in-law coming along,” John teased his older brother. “He says we need to get a lawyer who specializes in property law, and he recommends one up in Charleston who used to teach at the WVU Law School,” John concluded. “Well, how much are we talking about?” the younger asked. Referring back to the papers, John explained, “he thinks that after we talk to the lawyer, we would have to get the land 26
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appraised. We shouldn’t have let Bird talk us out of getting an appraisal when we were getting ready to sell the land.” The other three nodded in disgust. “Now we can all go to Charleston to see the attorney, or I can go,” John volunteered. “Well, I don’t see us getting a lot out of it, so I’d be willing to let you drive all the way to Charleston to find that out,” the youngest said, unable to contain his burst of laughter. The next youngest brother agreed, joining the laughter. But the oldest was more curious, “John, I’d like to go just to see what he says. And I can see firsthand just how smart Sally Ann’s feller is.” When John called for the appointment, John Hardy, the attorney, asked him to mail a copy of the report he’d gotten from the law student. John McDowell also included the Crier stories on River Play that included information about the new road, the water system, and the owners’ names – Red, Charles, and Lawyer Bird. On the drive to the state capital, his brother decided that they’d be lucky to get anything more since the deal had closed months ago. Then they’d be out what they paid the lawyer they were driving to meet. “Well, you never know what might happen,” John said. The only lawyer the McDowell brothers had ever dealt with was Hugh Bird in Lawnsville, so the wood paneling and leather furniture in John Hardy’s office was a bit disconcerting. “This ain’t gonna be cheap,” the older brother said to John when they sat down, fifteen minutes early for the appointment. John Hardy’s silver hair and stern face immediately put the McDowell brothers on guard. Their uneasiness continued as Hardy asked his secretary to bring in coffee for the three. “I appreciate your sending me the student’s report and the newspaper clippings,” he said, remaining stone-faced. 27
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“Well, what do you think,” John said unable to keep his curiosity in check. “I believe we might have a case here,” Hardy said. “Well, I heard the other day that they were selling lots up on the river for about $4,000,” John offered. John Hardy asked, “Are you sure?” “That’s the rumor on the street in Lawnsville; not sure it’s true. But I’ve heard it from several different people.” The lawyer, with amazement written all over his face, asked, “And you all sold the entire 300 acres for $6,000?” “Yes, and we split that and got another $2,000 later on because Lawyer Bird took so long to get the new deed to the courthouse,” John’s older brother explained. “Do you all know how many lots they’ll be selling in the development?” Hardy asked. “Haven’t heard a word about that. But the land runs along the river for a couple of miles so most of the lots would be right on the river. I’d say at least a 100 or more. It’s a high bank, so not much danger of flooding,” John explained. “We’ll need to send an appraiser from here out to the property. Having him travel from Charleston to Lawnsville will cost about $200. If you don’t mind, I can bill you later on that. “Once I get the appraisal we’ll meet again to decide if it’s worth moving forward. For that meeting, I’d like all four of you to be here. I’ve already ordered a copy of River Play’s original incorporation papers from the Secretary of State’s office. “From the Crier story, it seems that lawyer Bird’s name is on that document. That could be important to have if we decide to file a suit. Don’t want to take the chance those papers would disappear from the state records when word gets out about us looking around. Politics seems to pop up everywhere in West Virginia,” Hardy observed to the nodding agreement from the brothers. “Seems like a lot to do on this,” John McDowell said. 28
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“I just want to make sure I keep you all informed. Now it sounds like a lot, but I expect to have the appraisal back in 10 days to two weeks. Since they have that road through the property down to the public boat ramp, the appraiser won’t have any trouble getting a good look at the property,” the lawyer responded. “By the way, that report from the young law student was really well done, especially for just a first-year student,” he said to John and his beaming older brother. “We’ll see you in a couple of weeks,” John Hardy said as they headed for door. “John don’t know what to make of that lawyer – he didn’t ask for a cent. Every time I’ve talked to Lawyer Bird, he wanted money before we even started talking,” John’s old brother remarked. “Well, this one seems to know what he’s doing. But I’m sure we should bring our checkbooks for the next meeting,” John said. The next night the other two brothers joined their siblings to hear the report on the visit to the “big shot, high-priced” Charleston lawyer. “You’re lying. You mean he didn’t ask for money upfront?” the youngest brother questioned. “Not a cent. Now do you want to hear what he had to say or not?” John asked impatiently. The other two brothers hung on every word as John and his older brother reported on the Charleston meeting. “He’s being very, very careful and agreed that we should not say a word to anybody. I suggest we don’t even talk much to our families. If Bird would get wind of this, he might could throw a monkey wrench into the whole thing,” John cautioned. All four of the McDowell brothers were well known around Jordan County as hard-working, church-going men – two worked on the railroad, John had a good independent carpentry business, and the youngest was a mechanic at the local Plymouth29
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Dodge dealer. They all watched their money and owned their own homes. Good to his word, John Hardy called John McDowell two weeks after their initial meeting and scheduled an appointment the following week. “Wouldn’t it be something if we all got thousands of dollars out of this deal,” the oldest brother said as they got close to the state capital. “You’re so full of shit,” the youngest McDowell chuckled. “We’ll be lucky to get enough to pay for the lawyer and appraisal.” “Damn, this furniture cost more than my whole house,” the youngest whispered as the four entered John Hardy’s outer reception area. John Hardy motioned them into his conference room as he asked the secretary to take lunch orders noting the meeting could last at least two hours. The brothers just looked questioningly at each other. “What is going on?” the oldest mouthed. “I don’t want to waste your time, but there are some details you need to know. First, the appraisal came back at just over $375,000.” None of the McDowell siblings moved or said a word. Ignoring his older brother’s audible gasp, the youngest finally jumped up, “Are you shitting me?” John McDowell turned beet-red, but the lawyer just chuckled. Regaining his composure, John asked the question on the minds of all his brothers, “Is there a mistake, Mr. Hardy?” “I think there might be. In fact, I’ve asked the appraiser to recheck his figures – it seems too low, to be honest. I expect to hear back from him in the next couple of days,” the lawyer responded to his stunned clients.
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“What about Lawyer Bird lying to us, so we would sell the land for less than what it was worth while he was working for Red and Charles?” the oldest asked. “Well, that would be the point of the suit. Do you want to move forward with the suit?” John Hardy asked the four McDowell brothers. Without even looking at his brothers, John said, “Absolutely.” “There are several ways to go. The principle of law is called a constructive trust. Simply means you were cheated and are asking the court to make it right. We can request the deed to be reversed and the land come back to you all; we can ask the judge to order the present owners to pay you the amount it seems you were cheated out of, or maybe ask for you all to receive a certain percentage of every lot sold at the development. Feel free to ask any questions,” he said. “We sold the property because we didn’t know what we’d do with it,” John explained. “Dad had it for years and never did anything with it.” “I don’t know a damned thing about selling real estate, and that seems like what they are going to do with it,” the oldest said. The youngest chomped at the bit, “I say we take the money.” The fourth nodded his agreement. “How would this all work?” John McDowell asked. “We would present the evidence of what you all were paid for it, what the appraisal is, and the fact that Lawyer Bird was representing River Play while he was representing your dad’s estate. We would ask that the judge order the River Play partners to pay you all the difference in one check rather than stretch it out over several years,” Hardy said. “What do you think we should do?” John McDowell asked. “I believe we should go after getting the make-up payment, and just for good measure, I suggest we consider asking that you all receive a small amount for each lot sold,” the lawyer advised. 31
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John Hardy took another hour and a half to explain the procedures for filing the civil suit with the circuit court judge who covered Jordan County and answering the brothers’ questions. John McDowell added, “I’ll just put this out there. I wouldn’t put anything past that Bird. “He was the lawyer for a guy my friend sued to get paid for some home remodeling work. Bird pulled something, and the judge ruled on some technicality, and my friend didn’t get a penny of what was owed him. But Dad had done business with Bird’s father so he was comfortable having young Bird do his will,” John McDowell concluded. “Another thing. Hugh Bird has been close to Red and Charles for years in the old-line politics,” John’s oldest brother added. “Bird’ll have that judge wrapped up fifty ways from Sunday,” the youngest McDowell sibling offered. That was a problem John Hardy hadn’t anticipated, “I’ll be sure and watch for him pulling something.” Three of the McDowell brothers left Hardy’s office still a little pessimistic about getting any of the money they’d been cheated out of. John was a little more optimistic. He felt that John Hardy wouldn’t spend his time on something that he thought was a “dry hole.” Other than boundary disputes, not many property disputes involving price, certainly not in the hundreds of thousands of dollars, came before the Jordan County Circuit Court, John Hardy was certain. Upon reflection, he decided against asking the court that the McDowell brothers be awarded a certain amount on each lot sold. That would mean their compensation would depend on River Play development selling the lots – a questionable assumption given that two of the three partners soon could be in federal prison. 32
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After explaining that to the four brothers, it was decided the suit would only seek payment from the partners for the fair value of the property. Now that Hardy was aware of the possible political maneuvers between Lawyer Bird and the judge, he knew that his suit had to be as ironclad as possible. One important part of his evidence he’d already secured was the River Play’s incorporation records from the Secretary of State’s office showing Hugh Bird as not only the corporation attorney but also a partner in River Play. He had asked John McDowell to secure from the Jordan County Clerk’s office three notarized copies of the will’s filing with Hugh Bird’s signature as the estate’s attorney. He now had both documents locked in his office safe.
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Chapter 4 Complicated Suit Needed to Get Dry John Hardy labored over the suit language for two weeks – writing, rewriting, reviewing, and re-reviewing until he could almost recite the document’s 25 pages from memory. The experienced lawyer felt the judge would have to do legal gymnastics worthy of an Olympic gold medal winner to rule against the McDowell brothers. But then again, this was Jordan County, and surprises could come out of the ground. Hugh Bird was shaking by the time he hung up the call from Jordan County Clerk Ruby Miller tipping him off about the suit’s filing. He told his secretary to cancel that afternoon’s appointments as he headed to the courthouse to get a copy of the suit – not wanting to wait the three days until it was formally served. Surprised by the in-depth legal reasoning and expert knowledge of West Virginia’s property law throughout the filing, Hugh Bird knew he would have to use all tools (legal and illegal) at his disposal to get a favorable ruling. Despite his trepidation about his next move, he placed calls to Red and Charles, summoning them to his office that very evening – this couldn’t wait. Expecting there would be some tension with Red and Charles in the same room, Hugh Bird was not surprised that the two former friends and Jordan County political powers didn’t even say hello to each other and barely looked at each other when they entered his office. 34
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“Red and Charles, we have to put the past behind us for this meeting. It’s about something that could cost us every penny and piece of property we have to our names.” The tension between the two political kingpins remained high. Charles was livid that it appeared his careful plan of always putting Red out front in all their schemes had backfired. It seemed Red would get a greatly reduced sentence in the voter fraud case. And his former political soulmate might not even be charged or maybe get a suspended sentence in the bribery case since he wore the recorder that captured key evidence on both Charles and the governor. Likewise, Red felt the same way about Charles after he figured out Charles had set him up to take the fall in their illegal activities. But now they needed to work together to face the challenge that brought the call from Hugh Bird. First, Red and Charles looked at each other and said, in unison, “What in the world?” For the next thirty minutes, neither Red, nor Charles said a word – sitting in stunned silence as Hugh Bird explained the McDowell suit. All three knew that the McDowells had been maneuvered by Bird to sell the property at a price far, far below its true value. “Can Herbert stop this?” Charles asked, referring to the veteran circuit judge whom the old line had backed in elections for the last 25 years – and who was serving his third eight-year term. In fact, Charles had used his contacts with an earlier Democrat governor to get Herbert Deskins appointed upon the death of a serving judge nearly 30 years ago. Bird’s face was a paradoxical mixture of a jovial smirk and dark frown, “We can do our best, but this suit is a powerful document that substantiates every legal argument in it with brilliant research. It’s one of the most complete I have ever come up against.” 35
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“Well, then we’ll just have to give His Honor a refresher history lesson on how he got to his esteemed position,” Red chimed in. “That might do it. I understand the election next year will be his last,” Bird said. “Do you know much about this lawyer representing the McDowell boys?” Red asked. “I don’t know him personally. But from the looks of this suit and from what I’ve heard over the years, he’s got to be one of the best, if not the very best, property lawyers in the state. He has been a guest lecturer at the WVU College of Law for years. And he’s made presentations at several other law schools and conferences around the country. He knows his stuff, that’s for sure. But he didn’t help elect Herbert Deskins all these years,” Bird added with a wink. “Hugh, just to be curious, what could we lose if the case went against us?” Charles asked. “Near as I can figure, I think the true value of the property could be at least three hundred thousand – probably a lot more. The court could order us to give the property back to the McDowell brothers or make up the difference between the real value and the $6,000 we paid,” “Now remember, even if we pay that, we will still have the land and could make a profit of a couple hundred thousand each by selling the lots up there,” he added. “Seems that real estate company in Charleston is ready to start a sales campaign all over West Virginia and parts of Virginia, Kentucky, and Ohio.” “Yes, our going to prison won’t stop that money coming in,” Charles said smugly. Red nodded in agreement. “Are you going to talk with Herbert, or do you want one of us to?” Red asked. “I think it’d be best if one of you all do it,” Hugh Bird responded, aware of the ethical legal issues he could be facing as a result of the land purchase. 36
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“Charles, to be honest, I might kill Herbert if he tries to crayfish on me,” Red said in his first direct comment to his former political blood-brother. Also, he was mindful of how Charles had always put him out front on such questionable assignments. “I’ll call and see if I can stop by his house over in Union in the next week or so,” Charles said, squirming. The attitude of the McDowell brothers had gone from one of little interest to one of genuine anger at the thought of being cheated by the lawyer their father had trusted to settle his affairs. John McDowell’s call to Hill was ostensibly to tell the Crier publisher that he’d start on the carpentry in two days. “That’s great, John. We were talking about that today. Really need the shelves under the counter out front,” Rick responded. In the tradition of Southern friendliness, Rick asked, “How’s everything else going?” It was the opening John was waiting for. “You might be interested in the suit our lawyer filed at the courthouse the day before yesterday. It is on what you and I talked about last month. We all appreciate your suggestion. See you Thursday,” John concluded. Rick was out of his chair and headed for the courthouse as he returned the phone to its cradle on his desk. “This could be a doozy,” he thought as he walked into the stately 104-year-old seat of Jordan County government. County Clerk Ruby Miller was none too happy when Rick asked for a copy of the McDowell lawsuit. But since the Crier story on the recent election complaints had included her entire statement, she didn’t want to offend the newspaper publisher. “Wow, this is a lot of pages,” Rick said, thumbing through the 25-page document. “Thanks, Ruby.” The County Clerk got another “thanks” when five minutes later, she reported Hill’s courthouse visit to Hugh Bird. The Crier publisher was certain the suit would be interesting but was not prepared for the in-depth, precise, carefully 37
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researched lawsuit that had been filed on behalf of the McDowell brothers. After reading it over twice, he called John Hardy to see if there was anything the lawyer wanted to add. “No, not really. We believe that the suit lays it out pretty well – the McDowell brothers were taken advantage of.” After getting information from John Hardy on his legal credentials, Hill started on a story he was certain would take two days to complete. The suit was against Red, Charles, and Hugh Bird for conspiring against the McDowell heirs in acquiring the 300 riverfront acres. Hill was no lawyer, but he did know that normally something was wrong when a lawyer represented both sides in a legal matter. Knowing the judge would want to get appraisals on the property, John Hardy had purposefully not included an estimated value of the property. Instead, he presented the evidence that the heirs had been cheated in the real estate transaction and asked that the McDowell brothers be awarded a fair price for their inheritance. Suit Claims Heirs Cheated in Land Buy Connected With Governor, Bell and Beauregard Bribery Case To many in Jordan County, the front-page Crier story revealed the underbelly of how things operated in the rural county – politics were presented in every aspect of the community. Hill’s article detailed how the River Play development operated. Red and Charles conspired with Lawyer Bird to mislead the McDowell heirs on the value of the 300 acres of riverfront land, enabling the three to buy it for only $6,000. The fact the governor was charged with bribery for accepting a payment from Red and Charles to build a new road to and extend water service to the land only added to the chatter across the county. No hearing date had been set for the suit, but the clerk indicated to Rick that the next term of Circuit Court would start in three weeks. 38
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When the hearing date was announced, Charles quickly made a call to His Honor Herbert Deskins asking to visit the Judge’s home about an hour from Lawnsville. Having already extensively reviewed the McDowells’ suit, the Judge suspected the reason for Charles’s visit. This wasn’t the first time in the nearly 30 years he’d been on the bench that Deskins had been visited by Beauregard, Jr. In most of those other cases, there was some legal wiggle room that reasonably and easily allowed accommodation for some of Charles’s concerns. The present case didn’t fit well into that category. Given their decades-long relationship, introductory dancing around the issue at hand was not needed. “Charles, I certainly understand your concern about the real value of riverfront land along the Greenbrier River. Be assured it is worth many, many times the $20 an acre you all paid,” the judge explained, using the average price River Play had paid the McDowell brothers. “The procedure in such matters is for the Court to appoint three appraisers (one selected by the complainants, one by the defendants, and one by the court) to come back with an appraisal. Normally, an average of the three is what a judge uses in his evaluation.” “Herbert, this has just gotten out of hand. We didn’t set out to cheat these boys. An offer was made, and they accepted it,” Charles said, confident his lie would be accepted. It wasn’t. “In complicated cases involving property negotiations, particularly when heirs are involved, folks depend heavily on their attorneys for advice. When that advice is found to be tainted in any way, it becomes a major issue,” the judge carefully explained. “Herbert, I’ll be frank, we expect your help on this. We need you to just dismiss this case. End it right now,” Charles snapped. 39
Chapter 5 The Judge being Judged Not responding directly to Charles’s very inappropriate request, Judge Deskins continued his analysis, “Charles, such cases often get to the state Supreme Court. If the Circuit Court results are not reasonable and not decided according to the evidence presented, the State Court sends it back for reconsideration. The state Supreme Court judges watch the results very carefully for any sign that their order is not followed to the letter. If it is not, we could expect the Attorney General and possibly the U.S. attorney to become involved. That would put it beyond my ability to affect the outcome.” “Herbert, I got you appointed to the bench 30 years ago, and we’ve stood with you every election since. We never wavered. Often put our own money behind you and kept you away from some of the more unsavory aspects of southern West Virginia politics. This is payback time. I’m facing a trial that could send me to federal prison for years. You can bet that the U.S. attorney will be putting pressure on me on other cases. We’ve worked pretty close in some cases over the years,” Charles said, his eyes boring into the judge’s. “Charles let’s be frank. Any cases in which the U.S. attorney might have an interest could very well splash back on both of us and others whom we won’t want to come to harm,” the judge calmly responded to the veiled threat. Understanding that there were a couple of his previous decisions that could interest the U.S. attorney, Herbert Deskins 40
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rose from his chair and walked over to look out on his manicured lawn lit by several antique lampposts. “Charles, you have to understand that there is no action I can take that will keep you all from paying something. “There is the matter of appraisers that could offer some wiggle room. I will appoint one from the interior of the state who has absolutely no experience with recreational property. In addition, I will provide you with the name of an appraiser with a similar background. That could very well lower the average and reduce the value placed on the land considerably,” Herbert Deskins said. “We understand that we will have to pay something. We just need your help to keep it as low as possible. Seems you’ve come up with a possible way.” “Have a safe drive back to Lawnsville,” Judge Herbert said, deciding on the spot to end his career on the bench without seeking reelection the following year. The Crier publisher took a seat on the front row of the old courtroom’s center section. John Hardy and his four clients would be just to the left, with lawyer Hugh Bird, Joseph “Red” Bell, Jr., Charles W. Beauregard, Jr., and their slick-looking Charleston lawyers to his right. It was an uncomfortable position for Lawyer Bird, given he was normally the ranking legal person at any table at which he sat in the Jordan County courtroom. Just before taking his seat at the plaintiff ’s table, John Hardy gave a plain, sealed envelope to the Crier publisher with the admonition, “Later.” As he took his seat, John Hardy was uneasy awaiting the arrival of Judge Herbert Deskins to the bench. His recent conversations with friends in the southern part of the state made it clear that His Honor had, over the years, made several questionable rulings that favored those with close ties to Jordan County’s old-line political faction. 41
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While to the public, his reputation was impeccable, within the legal profession, there was a consensus that Judge Herbert Deskins, on rare and very select occasions, allowed non-legal considerations to influence his judicial decisions. On behalf of the McDowell brothers, Hardy explained in detail the conflict of interests which resulted in his clients being defrauded from getting a just price for the prime 300 acres of riverfront property. He presented notarized copies of documents, first from the West Virginia Secretary of State’s Office with Hugh Bird’s signature on the incorporation papers for River Play – which Bird owned with Red and Charles – which purchased the property at the rock-bottom price and then documents dated six months earlier from the Jordan County Clerk’s office documents which showed lawyer Hugh Bird’s signature on the probate of Joseph McDowell’s estate. John Hardy was glad he got copies of these official notarized documents two months ago, when he was putting together his case. Just last week, for curiosity’s sake, he had checked the records in both offices and found that both documents had disappeared from the records’ files. They were listed on logs, but the actual documents had disappeared. “Politics in West Virginia indeed does reach everywhere,” he thought. Each of the McDowell siblings testified that they had not gotten an appraisal of the property because Lawyer Bird had told them, “It would just be a waste of money.” Further, they noted that the attorney had assured them that they were lucky to get $6,000 for that property “because it was at the dead-end of a pothole filled, nearly abandoned state road.” When the defendants’ attorney did not cross-examine the brothers, John Hardy became even more certain that the judge had some kind of fix in place to keep his clients from receiving just compensation for their inheritance. Believing that the judge would find some way to favor his political benefactors, Hardy presented copies of riverfront real 42
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estate sales along the Greenbrier in the last two years. In each case, the per acre prices were $3,500 for riverfront lots. River Play had paid the McDowells $6,000 for the entire 300 acres – just $20 an acre. As Hardy expected, Judge Deskins ruled that the documents containing the figures were inadmissible because they did not deal with the specific land in question. The jurist added that he was surprised that the “learned attorney had attempted to even try and submit the transactions as germane to this case.” John Hardy was indeed aware of how the judge would rule on the introduction of these transactions. He had only introduced them in anticipation of the comparisons appearing in the Crier story about the hearing. They did. The details were in the envelope Hardy had given the Crier publisher just before he took his seat at the plaintiff ’s table. The lawyers representing River Play offered brief remarks focusing on the fact Hugh Bird had represented Joseph McDowell for years, and the deceased had always assured his attorney that the acreage along the river was almost worthless. It was with that assumption that Bird had moved forward with the probate of the estate. The argument was weak, but all with which the defense had to work. When the lawyers were finished, the judge announced he would render his decision following a two-hour lunch break. “There is a reasonable case for the motion to move forward,” the judge announced. “I will be asking each side to submit in three days the name of an appraiser. Likewise, the Court will appoint a third appraiser. Their responsibility is to separately and completely independent of each other make an appraisal of the property in question and report back to the court in three weeks. The judge explained that the court had prepared for this eventuality and gave the name of the appraiser for the court.
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Immediately, the River Play attorney announced he, too, anticipated the court’s decision and presented the defendants’ appraiser. Looking over his granny spectacles, His Honor said, “Mr. Hardy, when can I expect the name from your clients?” “I expect to have it to you by the close of business today,” Hardy responded. He was somewhat taken aback by the fact that both the judge and his opposition had appraisers’ names ready. “The Court will instruct each appraiser to submit their appraisal to the court in a sealed envelope which will be unsealed at our next hearing,” the judge said before bringing the gavel down with a sharp crack. While the requirement for the three appraisers was the lede for Hill’s story, he was certain Crier readers’ attention would hardly notice that. Scant attention would be given to the scope of Lawyer Bird’s deception. Crier readers would focus on the “hit the jackpot” amounts included in the document John Hardy unsuccessfully had tried to introduce as evidence. Right after the court adjourned, Hardy called one of his junior partners and requested that they get the backgrounds of the appraisers selected by Charles and Red’s side and especially the one appointed by the court. He also got the name of the appraiser he would give to the judge’s office later in the day. John Hardy stopped by the Crier office ostensibly to purchase back issues with stories about River Play’s development and the improvements that the governor had initiated for his two political buddies. His real aim was to have an “accidental” conversation with the Crier publisher. His ploy worked. Hill asked him into his private office for a few follow-up questions. As he got up to leave after Hill’s questions, Hardy, seemingly off handed, asked the Crier publisher, “Is there anything about this mess I should know about?” Rick motioned the attorney back to the chair next to his desk. 44
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“This didn’t come up at Red’s trial for voter fraud, but it seemed that he and Charles had a joint safety deposit box where they stashed money made from the primary election last year.” “Not sure how that would play in this case, but I’ll file it away,” Hardy said. Before he left for the state capital, Hardy, accompanied by the McDowell brothers, visited the River Play development. While he had seen the Crier photographs of the new road the governor ordered built to the new development, he was surprised to actually see it – a new wider-than-normal two-lane road that led from Route 20 nearly a mile down to the property entrance and then nearly a mile and a half through the back end of the 300 acres and down to the boat ramp at the river. It was better constructed than any road he had driven on for the 40 miles from the Turnpike to Lawnsville. He noticed that the new road on the property skirted the developable lots – all marked with fluttering little red flags. “Is this the way you all remember it?” Hardy asked the four brothers, who clearly were stunned by what those desolate 300 tree-covered acres had become. “Damn, those guys are going to make a ton of money,” the younger blurted. John Hardy was certain the new road and boat ramp would increase the property’s value considerably. He was confident that the two other appraisers would low-ball the price of the land. But it would not be easy. The land was beautiful, high out of the flood plain, and gently sloped to the Greenbrier River. “Bird really took us to the cleaners,” John McDowell said after looking over the 300 acres. “Hope to get some back for you. It might take a while. I’m certain that Bird and that bunch have some tricks up their sleeves,” Hardy said, trying to prepare his clients for what could be a long road to justice which might very well require an appeal to the State Supreme Court. He needed to do some extra homework on 45
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this to unravel the mess. Something has to be there; I got to find it, he thought as the five drove back to Lawnsville. Hardy dropped off the appraiser’s name at the judge’s office and drove back to the state capital, thinking it was important for him to review the Crier stories on the land deal as well as those related to the overall Jordan County political environment. Something didn’t feel right – it was obvious to him that a sound legal argument wouldn’t be enough to get justice for his clients.
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Chapter 6 All Jumbled Up Before Going Straight John Hardy wasn’t sure whether next week’s federal bribery trial with Red, Charles, and the governor as defendants would have any impact on the McDowells’ civil suit. He decided he’d have one of the younger attorneys sit in on the trial in case something came up. On the surface, it appeared the bribery trial would be short with “guilty on all counts” verdicts for all three men. Because he agreed to testify against his political partners, Red’s prison sentence would be much shorter than those of the governor and Charles if they were found guilty. John Hardy decided to attend the trial when Red was scheduled to testify. Charles had declined an offer from the U.S. attorney for lenience if he, too, took the stand against the governor. “Mr. Bell, when did you and Mr. Beauregard first learn of the McDowell land being for sale?” the Assistant U.S. attorney asked of his key witness. “Charles got a call from Hugh Bird that the four brothers had no interest in keeping the property they inherited from their father. He told Charles he thought it would be a good investment, and he thought he could talk the heirs into selling for under $15,000. “I got a call from Charles. We met and decided to buy the land. It was 300 acres along one of the prettiest stretches of the Greenbrier River.”
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The federal prosecutor slowly paced across the front of the courtroom, looked at the jury, and turned toward Bell, “then you knew from the start that Lawyer Bird was going to urge the McDowell brothers to sell the property at a very low price?” “Oh yes, we wouldn’t have been interested otherwise. Charles said that Lawyer Bird had assured him that he’d talk them out of having the land appraised. That was so they’d have no idea of its real value,” Red responded in a clear voice avoiding the stares from Beauregard and Governor Sonny Monroe. “Before you and Charles purchased the property, did Beauregard have a conversation about the property with Sonny Monroe, then a candidate for governor in the Democrat primary?” Red paused and then gave his single-word answer. “Yes.” The prosecutor pressed, “And what was the nature of the conversation?” “Charles reported to me that Sonny said, if he were elected governor, he would see that a new road would be built from Route 20 to the property and a federal grant secured to extend a public service district water line to the property,” Red testified. “So, it was after those assurances from Sonny Monroe that you and Beauregard proceeded to purchase the McDowell property along the Greenbrier River?” “Yes, sir.” John Hardy knew that this testimony would strengthen his already-strong civil suit. But he still didn’t know how he could overcome Circuit Judge Herbert Deskins putting his hand on the scales of justice for his old-line political benefactors. Hill found it interesting that John Hardy was across the aisle and two rows back, meticulously writing down every word Bell said. During his testimony that took up the first full day of the bribery trial, Red testified that he and Beauregard, Jr. developed the entire scheme, including the roles of both Lawyer Hugh 48
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Bird and then gubernatorial candidate Sonny Monroe. He then testified about his conversation with Governor Sonny Monroe, for which he wore the Nagra recorder supplied by the lead investigator in the U.S. attorney’s office. After the tape was played and federal investigators testified about the serial numbers of the $10,000 recovered from the governor’s office safe, veteran courtroom observers were certain of guilty verdicts on all charges for all three defendants. Beauregard’s careful scheming that kept him in the background of criminal plots he conceived gave his defense lawyers a firm foundation to attack the U.S. attorney’s seemingly “slam-dunk” case. Closing a folder and laying it in front of his client, Beauregard’s lead defense attorney walked slowly toward the witness stand, glancing at the jury. “Mr. Bell, given that Mr. Beauregard travels to Charleston frequently, could you explain why he didn’t take the $10,000 to the governor rather than you making the two and one-half-hour trip from Lawnsville?” “We just decided that I would be the one to visit the governor,” Red said hesitantly. “Are you aware that Mr. Beauregard met with Governor Monroe just three days before you gave the governor the $10,000?” “Yes, I am,” Red responded. “That is certainly strange that Mr. Beauregard didn’t deliver that payment. If indeed he was even aware of the scheme to get a new road and water service to the River Play development,” the defense attorney said confidently as he nodded at the jurors on his way back to the defense table. The federal prosecutors’ closing argument hammered on the transcript of the taped conversation, where the Governor mentioned Beauregard several times, “clearly showing” that he 49
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was an active participant in the bribery scheme. Hill noted that while attentive, none of the jurors nodded in agreement. Beauregard’s lead defense attorney slowly walked to a spot in front of the jury box and began a very short but powerful closing statement. He emphasized that Bell and the governor were the only defendants directly tied to the bribery charges by solid evidence. In conclusion, he pointed out that it was Joseph Bell, Jr. who had delivered the bribe to the governor, NOT Beauregard, who had met with him numerous times, and in fact, one of those visits was just three days before Joseph Bell’s delivery. “There is no evidence that ties Mr. Beauregard to this crime.” The Crier publisher focused on the jury – it seemed every juror nodded in agreement. Deliberations continued for a second full day, to the surprise of some members of the federal prosecution team. There was confidence among the federal prosecutors that the final point made by Beauregard’s lead defense attorney could not overcome the taped recording of Bell’s visit with the governor. With rumors of a possible mistrial swirling through the federal courthouse at the beginning of the third day of deliberations, the judge called the jury into the courtroom to inquire if progress was being made. “I believe we are,” the foreman said. Hill went to one of the pay phones in the hall outside the courtroom to call his reporter/photographer Al with an update so planning could move along for the next day’s Crier edition. Just before noon, the bailiff announced that the jury had asked that lunch be brought to the jury room rather than the jury leave for the normal lunch break. The courthouse gossip mill went to work, and the courtroom began to fill shortly thereafter. At 2:30, the word spread that a verdict had been reached. Because the governor was a defendant, the courtroom was 50
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standing room only with a spillover crowd spreading halfway down the hallway outside. The bleary-eyed jurors filed in, none smiling, all staring at the judge. The judge’s gavel fell quickly, quelling what had become a boisterous crowd. Following the nerve-wracking and boring procedures which characterize this part of a formal legal courtroom proceeding, the federal jury foreman stood. “We, the jury, find Joseph Bell, Jr. and Raymond G. Monroe guilty of all charges. And further, we find Charles W. Beauregard, Jr. not guilty of all charges.” Hill was focused on Bell, who put his head in his hands, and then the Crier publisher watched as Beauregard hugged his attorneys and snidely smiled toward his former political ally. Bell, Governor Guilty, Beauregard Not Guilty in Local Bribery Case Most Crier readers were not surprised. “Charles has slipped through just like he always does,” was a common observation. “Red got stuck again, just like with the voter fraud mess,” was another one heard in some parts of Jordan County. Indeed Charles’ acquittal was the talk of politicians across the state. His guilt was assumed. But there was admiration for his being able to keep his fingerprints off the crime.
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Chapter 7 Slippery Eel Comes to Jordan County Politics Sonny Monroe, the convicted former governor, was stunned that Charles had been acquitted. It was Charles who had come to Monroe during his primary campaign and offered his support in exchange for the new road and the public service water connection for the River Play development. Bell’s conviction required that Beauregard begin immediately to reshape Jordan County’s old-line machine. His plan was to make Bell a fading memory in Jordan County political history. Charles was meeting with Joseph P. “Joe” Brown III, whom he had earlier selected to direct the political faction. Charles wanted to discuss maneuvers that he felt would bring the old line back to political prominence in Jordan and surrounding counties. Hill wasn’t surprised by the call from his favorite carpenter. “Rick, if Beauregard can slip through this one, not sure we have a chance with our suit. What happened?” John McDowell asked. “Only thing I can think of is that the case just didn’t tie Charles close enough into it for the jury. It took them two and a half days to reach a verdict. So, I imagine there was a lot of yelling and cussing in the jury room. During the trial, just couldn’t tell which way it was going to go,” the Crier publisher said to a worried John McDowell. “Any idea when your all’s hearing will be?” Rick asked. “Just got a call; it’ll be next Wednesday.”
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John Hardy was a bit surprised at the verdict acquitting Beauregard in the federal bribery case. He didn’t think that it would affect the McDowell suit before the Jordan County Court, but he remained concerned about what Judge Herbert Deskins might come up with to protect his political friends. Given his examination of the backgrounds of the other two appraisers, Hardy wasn’t surprised that they had come in 30 and 40 percent lower than the one he had selected for the McDowells. Five to ten percent differences would have been normal. But the average with these two rock-bottom appraisals could cost his clients in the neighborhood of $150,000. If the judge stuck with the average, John Hardy was certain he had grounds for an appeal to the state Supreme Court if his clients were willing to wait up to a year for the appeal to be heard and even longer to get their money. Further, the narratives that accompanied the other two appraisals made it apparent that they had no experience with evaluating recreational property. Their analysis indicated that they approached the appraisals the same way they would for landlocked farmland rather than prime land along one of the most popular recreational rivers in the state. As the hearing opened, it was clear that the judge wanted the case concluded quickly. It was also apparent that Charles, Red, and Hugh Bird were extremely confident of the outcome. John Hardy made his point quickly. To his surprise, the judge granted his request to call a witness. While not happy, the judge granted the request with the admonishment, “this had better not be a waste of the court’s time, Mr. Hardy.” The witness was a property appraiser from Richmond, Virginia, who specialized in recreational property and had given lectures on the subject at seminars around the country. He compared in detail the difference in the value of land used for farming and a parcel of the same size that had recreational value. It was not uncommon for the value of such property to be four 53
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to five times higher – “particularly if the farmland was along a river or a lake.” At the conclusion of the testimony, John Hardy moved that two of the three appraisals be set aside and new ones ordered. A one-hour recess was called to allow the judge to consider the motion. It was evident from the relaxed air of the defendants that Hugh Bird, Charles, and Red were certain that the ruling would go in their favor. Judge Deskins had decided to assist his political benefactors and felt it was time to announce his decision. The court would accept the average ($552,000) of the three original appraisals. He announced that River Play would make ten annual payments, beginning in six months, to make up the difference between that average and the original sale amount. The judge continued that he felt the mistake on the original value of the property was no fault of the purchasers and that the arrangement would provide the heirs of George McDowell adequate compensation for the property and give the purchasers a reasonable arrangement to make the payments. Recognized by the judge, John Hardy objected to the ruling and indicated that his clients intended to move forward with every avenue available to appeal the ruling. “Your honor, in nearly all real estate transactions, the seller receives immediate full payment upon closing. The Court’s order requiring sellers to wait ten years for full payment is outside those criteria. While we oppose that order on its face, we request that the defendants provide us with information about their complete financial records, including all assets, so we may evaluate whether they indeed are able to meet the ten-year-long obligations which the Court has placed upon them,” Hardy concluded. “Thank you, Mr. Hardy, your request seems interesting, I will take it under advisement and respond within two weeks,” the judge said curtly before bringing the gavel down. 54
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Bell and Hugh Bird didn’t seem to be paying attention to John Hardy’s final sentence. To them, it seemed that River Play would not have to put out any money upfront and could use revenue from lot sales to make the annual payments. However, Beauregard was fully focused. He absolutely did not want to take the chance his assets – his property – a comfortable home in Lawnsville and two vacation properties, and his safety deposit boxes – would come under the scrutiny of a full examination of his financial condition. To keep the pressure on, John Hardy sent a letter to the attorney representing River Play requesting a full financial accounting (all real estate owned, bank accounts, and other assets) and federal income tax returns for the last 10 years, of Joseph Bell, Jr., Charles W. Beauregard, Hugh Bird, and River Play. Thinking the request was reasonable, the attorney forwarded a copy of the letter to each of his clients, not giving it another thought. Court Rules in Land Development Suit; McDowells Seem Ready to File Appeal Hill’s story explained that while the ruling recognized that the McDowell brothers were cheated in the original purchase, the considerable differences in the three court-ordered appraisals were so wide it was clear the case was far from settled, and an appeal to the West Virginia Supreme County seemed certain. A paragraph also covered the 10-year payout plan and the McDowells’ motion for a full examination of the financial condition of the three River Play partners. The Crier article included a recap of the bribery case where Bell and the governor were convicted, and Beauregard was acquitted, along with pictures of the new road constructed by the state to the riverfront property.
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Five days after the ruling, Charles, after his second reading of the letter from John Hardy, called Hugh Bird, asking him to put together a meeting with Red for that evening. “What is going on?” John Hardy asked himself as he navigated the curvy road from the West Virginia Turnpike to Lawnsville for the “out of the blue” hearing before Judge Herbert Justice. He got the call two days ago and found that the McDowell brothers were as much in the dark as he was. “Mr. Hardy, I appreciate your being here on such short notice. This hearing was requested by the defendants to request an adjustment in the order I issued during our last hearing. Counselor, proceed,” the judge said to the lead lawyer representing River Play, Red, Charles, and Bird. “Your honor, we move to amend your order and increase the amount due the plaintiffs and change the payout period from ten years to two annual payments, the first of which will be made by my clients in thirty days and the second and final one, a year from that date. “The figure is based on a recalculation of the appraisals from the court. Upon review, we found the lower two appraisals to be outside what would be considered reasonable. Our only request of the plaintiffs is that they end any and refrain from any further actions, inquiries, or court filings regarding River Play, Charles W. Beauregard, Jr., Joseph Bell, Jr., and Hugh Bird in this matter.” The amount of the increase was $108,000 (making the settlement figure $660,000). After receiving an hour-long recess to discuss the offer with his clients, John Hardy rose to address Judge Deskins, “on behalf of my clients, I support the motion and agree to its provisions.” Hill could not believe what he’d just heard. Immediately his reporter’s logic kicked in – “what in the hell is the ‘why’ of the sudden turnaround” – they just agreed to pay more than what the court had earlier ruled that they owed and pay it all within a year rather than the ten years the judge originally ordered. “This 56
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is the Jordan County shuffle for sure,” he thought as he watched the McDowells celebrate as Red and Charles left the courtroom by separate doors without a bit of sadness on their faces. “What is going on?” he asked himself as he approached John Hardy for an interview. “All I know is that they called the judge and asked for another hearing. And I heard what it was about when you did,” John Hardy answered. “In my 25 years of practicing law, I have never seen or even heard of something like this.” River Play Agrees to Pay More than Court Ordered in Greenbrier Development Case Of all the stories Rick had written about Jordan County politics, he thought this one was the most puzzling. He just couldn’t come up with the “why” of the increased payment. And he wasn’t sure he’d ever have the answer. “Rick, we owe all this to you. If you hadn’t had that talk with me way back. We wouldn’t have ever looked into this. Just tear up that bill for the carpentry work,” he gushed. “John, I’m glad I could help. No discount for doing what’s right – here’s the full price of the carpentry you just did,” Rick said, accepting the outstretched hand. The lawyers for River Play were perhaps the most stunned about the final disposition of the case. Unaware of Charles’ visit to Judge Herbert Deskins, the attorneys were proud of the initial ruling, which they believed was much lower than the property’s full value. Then the call came from Hugh Bird informing the lead attorney about the change of heart by him and his two codefendants – they wanted to pay $100,000 more and take the payout period from 10 years to one. No reason was given. Hugh Bird just told the attorney to prepare the papers and arrange a hearing with the judge as soon as possible. 57
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Bird’s call came the morning following his meeting with Red and Charles. After an exhausting nearly two-hour discussion, the two agreed to Charles’ plea. He was rather vague about the reason for his proposal. But it was evident some element of the judge’s original order and proceedings had him very disturbed. Hugh and Red were incredulous at what they considered to be a really dumb move – pay out significantly more than the judge had ordered. Charles persisted – he was adamant. “Charles, do you understand what you’re asking us to do?” Hugh Bird responded. “It just makes no sense.” Red and Bird remained reluctant during the first hour and a half of the meeting and acquiesced only after Charles agreed to forgo half of his profit for the first 150 lots sold at River Play. John Hardy had become familiar with the unpredictable nature of the Jordan County political climate while preparing for this case. But he was still shocked by the three adding $100,000 to the original court-ordered settlement. Upon reviewing his handling of the case, Hardy remained certain that the turn-around had to do with his threat to do an in-depth search of assets and overall financial positions of the River Play partners by an internationally recognized firm which was a 100% bluff. What really grabbed Hardy’s full attention was the single condition River Play and its owners put on their agreement to increase the payment – that he halts all inquiries into the land deal, River Play, and its partners (and their financial condition) on behalf of his clients. “Somebody has got a lot to hide,” he thought as he picked up the phone to invite his old college buddy, now the U.S. attorney, to lunch. Using the River Play land as collateral, the three partners secured a loan from their favorite bank for 70% of the first settlement payment and would cover the other 30% (10% each) from personal funds. During the year between the first and 58
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second settlement payments, lots would be sold (at an average of $3,500) to cover the second payment, repay the bank loan and leave the partners with a respectable profit. As per Charles’ agreement with his two partners, he would not participate in that profit until the first 150 lots were sold. With the not-guilty verdict in the bribery trial and getting the suit settlement adjusted in a way that protected him, Beauregard was turning his attention to moving Red aside in the Jordan County political scene. He wanted to make sure that the old line was prepared and organized to retake its position as the dominant political faction in Jordan and the surrounding counties.
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Chapter 8 The Eel Grows Flowers In the Shadows In conversations with his attorney, Red knew he was facing a sentence of two to five years for his voter fraud convictions and would be out in two years or less. Joe Brown had stopped by the cleaners, out of loyalty, to let Red know that he would be meeting with Charles to discuss the future of the old line. “That’s fine, Joe. Life marches on. Know you can call on me if there’s anything I can do to help you,” Red said, fully expecting and understanding Charles’ maneuver. On the state level, Charles had already visited his close friend, the former State Senate President, Wilson McDuff, who became governor upon the conviction of Raymond G. “Sonny” Monroe in the bribery case. One particular item Charles wanted to discuss was the importance of keeping the Secretary of Public Safety that Monroe had appointed. From their earlier relationship, Charles knew the new governor shared Sonny’s feelings about taking advantage of the power and the favors that the state chief executive could bestow on political allies. Charles was pleased to learn that the new state chief executive, from the northern part of the state, was financially involved in and fully supported his predecessor’s plan to establish gambling and shakedown operations in that area of the state. One surprise was the new governor’s request that Charles resume the same position he had eight years ago in the state road department and reestablish the old Flower Fund scam. The inside 60
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joke was that the money in the Fund was used to buy flowers if a member of the road department died. Not even close to reality – as in the previous Democrat gubernatorial administrations, “contributions” received for the Flower Fund would be used to finance campaigns and supplement the state salaries of a very select few officials. The new governor assured Charles that all state road county supervisors were ready to implement the scheme month after next. He handed Charles a list of contacts in each of the state road’s ten divisions who would pick up envelopes containing cash contributions for the Flower Fund from the county state road garages in their division each state payday and bring them to Charles’ office in the Highway Department’s headquarters building across the street from the Capitol. The Jordan County political power smiled, remembering the cash “fee” he raked off in his earlier tenure of running the Flower Fund. The Flower Fund scheme was very simple – each state payday, every employee in the county state road garages gave 5% of their salary in cash to the country garage supervisor, who put it in an envelope. Then a collector from the county garage’s division office would pick up the sealed envelope from each county garage in his division and take the money to the Flower Fund overseer – Beauregard – at state road department headquarters in Charleston. Charles understood the power base he had in Jordan and surrounding counties was responsible for his advancing up the state political ladder and getting plum assignments like overseeing the Flower Fund. Therefore, he knew it was essential, if he wanted to maintain that position of power, to work with Joe Brown to return the old-line faction to positions of power in Jordan and adjacent counties. Charles realized that there were several issues on the local level that would put the old line in an unfavorable light as the 61
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campaigns continued toward the next election day. Pending were the sentencings of Red in the voter fraud case, former Lawnsville street commissioner Samuel Johnson, his brother, Jonathon, and the three thugs and former Mayor Wayne Adkins for the Crier fire and roadblock convictions, and former Mayor Ben Howland and his police chief Lance Frankford for the shakedown of Lawnsville bars. Unfortunately, all those awaiting sentencing were connected to the old-line faction. Each of the legal proceedings would bring headlines across the Lawnsville Crier’s front page. And Charles was certain Hill would include in those stories the close ties of each defendant to the old line. Of added concern was the possibility that former Mayor Wayne Adkins, rather than plead in the roadblock and attempted murder case, would opt for a full trial on the charge of conspiracy to murder the Crier publisher. A trial would result in every detail of the conspiracy bring replayed in open court. Charles would have Hugh Bird visit Wayne Adkins in jail in Charleston to discuss pleading to avoid trial. Wayne Adkins already was facing 10-15 years in federal prison for his conviction as a conspirator in the Crier fire case. His attorney said he would get even more time if convicted in the roadblock case because that case included the charge of attempted murder. He was torn between just getting it over with and a bizarre desire to be a thorn in the side of the U.S. attorney by making the office go through conducting another trial. The former Lawnsville mayor was not happy. Throughout his political career, Wayne Adkins had always supported oldline candidates. He even campaigned across the county on their behalf and made sure the city’s employees and their families “marked their X” for the old-line Election Day. Now he felt that if Charles was able to get himself acquitted of the serious charge of bribery, the county political kingpin should be able to do something for him. 62
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Adkins considered the visit by Hugh Bird an insult since Bird did not mention any help to fight the charges. He came only with a request that Adkins plea so the trial wouldn’t hurt the old-line’s plan to regain its political dominance. Even the offer of monetary incentive didn’t lessen Wayne Adkins’ disdain for the old-line faction leaving him high and dry as far as his legal difficulties were concerned. These trials did not yet have Hill’s full attention. The McDowell brothers’ suit had grabbed his mind. It was different from any other story he’d covered as Crier publisher. Even for Jordan County, this one was a weird one. The jigsaw puzzle didn’t have two pieces that fit together. Hill still could not figure out why Red, Charles, and Hugh Bird increased the payment to settle the McDowell suit. While the settlement amount was sealed by the court, based on the tone of his conversation with John McDowell, Hill was certain that the increased amount was considerable. The Crier publisher was wrestling for a way to nail down the “why” of the maneuver. Hill decided to do all he could to find out as much as possible about the settlement. It was time to pick Baxter Edwards’ brain. Baxter might not know any more hard-core facts than the Crier publisher, but Hill was certain Baxter would have an interesting theory or two.
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Chapter 9 Follow the Money “With Charles, I’ve found that ‘follow the money’ is nearly always the way to figure out what he’s up to. If it was his idea, you can bet he got more than he gave. If I were guessing, I’d say it had something to do with the McDowells’ lawyer going after full financial information on Red, Charles, and Bird,” Baxter offered. “That could be it. But what’s in Charles’s background that could give him so much money he feels a need to hide it?” Hill responded. “His first state job of any significance was overseeing the ‘Flower Fund’ collection for the state road department. Every payday, every state road employee had to “contribute,” in cash, five percent of his pay. From what I picked up, Charles oversaw the Flower Fund for about 10-15 years during several Democrat administrations. I believe he was still in charge of the fund for a couple of months after the Republicans took over the governorship, the two terms before Sonny Monroe. If that’s true, Charles could have cleaned out the fund on the way out the door. That’s in addition to what he skimmed off the top each state payday while running the Fund.” By the time Baxter finished his analysis Hill’s head was spinning “Don’t know how to check any of this out. That goes back aways. Also, I’m trying to find out how much the settlement was increased. But hell, it’s all sealed.” Baxter chuckled, “give it a couple of days – the beauty shop gossip network just might come up with the exact figure.” They 64
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both laughed but knew that the beauty shop had a well-earned reputation as the fount of all knowledge in Lawnsville. As he hung up, Rick called Billie Amherst into his office. “That settlement is all the talk. The rumors are all over the place. I was lucky; one of the McDowell brothers’ next-door neighbors was in for her bluing. Seems the McDowell wife is planning on getting a new car, paying off the mortgage, and taking a cruise to the Caribbean when the money comes in. The first payment is due by the end of the month,” the Crier community news editor reported. “No mention of the amount. But it’s got to be up there.” “There’s a real tight lid on this one. Guess they had to agree to that in court,” Rick said. “Was there any scuttlebutt on why Charles, Red and Bird agreed to increase the amount after the judge ruled?” “Another one of the girls is a neighbor to one of the lawyer’s secretaries in town – not Hugh Bird’s – said her boss thinks it had to do with the McDowells’ lawyer threatening to do a search of Red, Charles, and Hugh Bird’s financial stuff. Most everybody thought one – maybe all three of them – has something to hide,” Billie concluded. That’s two, Rick thought as he recalled that Baxter had the same opinion about why the settlement amount had been increased. Hill then decided to use his tried and true “go to the horse’s mouth” approach. “John, I didn’t know if you’re still doing carpentry work since the settlement. We need some shelves under that counter.” John McDowell laughed. “We haven’t gotten any of that money yet. Even then, I don’t think I’ll ever give up my carpentry work. I really enjoy it. See you tomorrow.” After John had taken the measurements, Rick invited him into his office and shut the door. 65
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“I have to tell you I’ve been around the newspaper business all my life and never ever had a story as weird as the way that settlement went. Couldn’t believe they agreed to pay you all more after the judge made his original decision.” John took the offered chair. “You think you were surprised? Hell, we were celebrating what we got at first, then to get more on top of it. Lawyer Hardy can’t figure it out either. He thought maybe it had something to do with his asking the judge to order Red, Charles, and Bird to make all their financial information available. Hardy was certain one or all of them had something to hide. We wanted the whole thing settled, so we agreed to end it right then and there.” “That’s three.” Rick found it interesting that Baxter and the beauty parlor gossip network had also mentioned John Hardy’s courtroom maneuver as the reason for the increased settlement. “So, I guess you all thought you were treated fairly in the settlement,” Rick gently probed. “Now Rick, you know that’s all sealed, and the judge and Mr. Hardy told us not to say a word about the settlement, or we could get in trouble. Letting it out also could keep us from getting the whole settlement. “But as I said before, I would have never pushed it if you hadn’t talked to me right after Red and Charles got tangled up in the bribery thing with the governor. You can’t print this at all. Now, I can’t tell you what the original settlement was. But the increase was a bit over $100,000,” John McDowell whispered as if Rick’s office walls had ears. “I didn’t hear a thing, so I can’t repeat what I didn’t hear,” the Crier publisher assured with a chuckle. “When do you think you can get to the shelves?” Rick asked, changing the subject quickly. “I’ll stop and get the wood this afternoon and start tomorrow. Should only take a day or so,” John McDowell responded as if he had forgotten the two had even discussed the settlement. 66
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Rick began to figure using the $100,000 increase. That meant that Red, Charles, and Bird would have each had to come up with about $30,000 more apiece – $15,000 for each of the two settlement installments. Following Baxter’s “follow the money” logic meant that Charles would have had considerably more than that stashed away somewhere. Charles might even have covered some of the increase for the other two.
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Chapter 10 Looking for the ‘Why’ John Hardy arrived early for lunch and selected a table far in the corner of the out-of-the-way Charleston restaurant so he couldn’t be overheard when talking to Jarrett Field, his old college roommate, now the U.S. attorney for the Southern District of West Virginia. After catching up on their kids and grandchildren, John Hardy got to his point for the invitation. Hardy wanted to know what his old buddy knew (if anything) about Jordan County politics. He was not aware that the U.S. attorney kept a close watch on things in the county through the Crier subscriptions of his two assistants. Also puzzled, the federal prosecutor had some questions about the case he wanted to explore. The Crier stories on the settlement had piqued his interest, and he was ready to issue a luncheon invitation when John Hardy called. Hardy related how Bell and Hugh Bird had slapped each other on the back after the original settlement was announced. But Hardy had noticed that Charles became solemn once Hardy asked the court to require the three to provide him with their complete financial information in order to gauge if they had the resources to make the payments contained in the judge’s original order. “It was only a week or so after that, that they announced they would increase the settlement amount with only one requirement– that the order include the provision that I stop 68
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all inquiries into anything connected to the defendants,” Hardy related to his friend, who had taken out a small notebook. Hardy continued, “I thought that was overkill. I’d have no reason to pursue anything after they increased the settlement and cut the payout from ten years to one. But the fact they included it tells me at least one of the three, hell maybe all of them, have something to hide, and it’s got to be some big bucks stashed away somewhere.” “The story didn’t go into much detail about that requirement, but I found it to be very unusual. There’s no doubt someone is hiding something very significant,” the U.S. attorney agreed, putting the notebook away. They both saw the ways of Jordan County politics as a world unto itself. And absolutely nothing was off the table when it came to scheming, scamming, and maneuvering in that political cesspool. The lunch meeting with his old friend increased the U.S. attorney’s interest in seeing what he might be able to squeeze out of Bell in the coming pre-sentencing conference. Bell and his lawyer took their seats across from the U.S. attorney a week before Red’s sentencing for the voter fraud and bribery cases. The lawyer thought it unusual that the U.S. attorney himself was at the meeting. With the first question, it was clear why the lead federal prosecutor was there. “Mr. Bell are you aware of why Beauregard wanted to increase the settlement in the lawsuit about the Greenbrier River development?” the U.S. attorney asked, bluffing to make it appear he knew it was Beauregard who pushed for increasing the settlement amount. “Charles indicated that it was very important to him. He went on and on. Hugh and I were strong against it. We didn’t change our minds until Charles said he’d give up half of his profit on the first 150 lots we sold if we’d go along with increasing the settlement payment. As a cover, our attorney suggested that we 69
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could just say that we felt the appraisals were too far off the mark, and we didn’t want the case to drag out in years of appeals,” Red blurted out. “You would have thought Charles’s life depended on increasing the settlement,” he concluded. Red and the U.S. attorney then signed an agreement that assured Red would be sentenced to two to five years total for his voter fraud and bribery convictions in a prison in one of the states bordering West Virginia. Both understood Bell would serve about two years total. The federal prosecutor wasn’t sure where to start in his efforts to track down specifically what Beauregard was hiding. But he was ready to try just about anything. The roadblock case was in no way connected to Beauregard. With his recent success squeezing Bell, the federal prosecutor felt the pre-sentencing conference in two days with Wayne Adkins offered another opportunity. He wondered if the former Lawnsville mayor might have a kernel of information that could help unravel this latest Jordan County political jigsaw puzzle. First, in preparing for the meeting with Adkins, he thought a call to the Lawnsville Crier publisher might glean some information not included in Crier stories. “Well, to what do I owe this unexpected pleasure,” Hill laughed when he heard the U.S. attorney’s voice. “This can’t be good. How in the hell did Charles beat the bribery charge?” he asked. “We’re still trying to work that one out ourselves. But that’s not why I called. I’ve been reading your stories about this land development civil suit. Have you figured out why in the world the settlement amount was increased?” “Folks around here are pretty sure it was done because Red, Charles, or Hugh, or maybe all of them, have something to hide in their financial assets. It has to be a considerable amount, but nobody is sure where the money might have come from,” Hill explained. 70
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“Not even a wild ass, off-the-wall guess?” the desperate U.S. attorney pressed. “You’ve got a bunch of U.S. Marshals, federal investigators, and an office full of lawyers, and you’re asking me – a small-town newspaper publisher – for help? You’re in big trouble. I guess I should be flattered,” the Crier publisher said, chuckling. “Damn, you make it hard on us hard-working public servants,” the U.S. attorney responded, chuckling. “Seriously, the only thing I’ve picked up is some years ago, Charles ran the ‘Flower Fund’ scam at the county state road garages around the state for about 10-15 years under several Democrat governors. From what I’ve heard, there would have been an opportunity for him to shave a little bit off the top each state payday. Then when the Republicans won the governorship, he might have made off with whatever was left in the fund,” Hill offered. “I’ll have to think that one over. That’s a bit wild but better than anything I have now. I appreciate the help – I think,” the U.S. attorney said as they ended the call. Might as well give it a try, the U.S. attorney thought two days later as Wayne Adkins and his attorney entered his private conference room. “Mr. Adkins, I have a question for you. Do you know anything about Beauregard’s job some years ago with the state road department in Charleston?” “Oh, my yes. I was in high school then and worked some in the summers at the county state road garage,” the former mayor answered. “Why is that important?” “Did you ever see Mr. Beauregard back then?” “Yes, early in the morning on every state payday, I would go over to his house, pick him up, and drive his car to the Jordan County state road garage and then around to several garages in other counties close to us.” 71
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“What would he do on those visits?” the federal prosecutor asked. Shifting in his chair, Adkins said, “He’d meet the county road supervisors and pick up an envelope with cash that had been gathered from each worker. He said it was for the Flower Fund.” “Did you do that very often?” “Yes, all through the summer – every state payday,” Adkins related. “Did he ever talk about it?” “Just said that was the way politics worked in the state. The money was used to elect people who’d provided jobs to those who donated.” “So he indicated that such collections were made in every county?” “Absolutely. He said that he had a guy in every state road division who made the collections in other areas of the state. And he ran it all from Charleston,” Adkins said. “Did you ever see the money?” “Oh, yes. After visiting with the county road supervisors, he’d bring the envelopes out to the car, take the money out, count it, and check his list of those who worked in that garage against the list in the envelope. If things didn’t match up, sometimes he’d have to go back into the garage and get any money that was left out of the envelope.” “What was the number of workers at each garage on his lists?” “Seemed like about 25 or 30.” “What did you do after visiting the garages?” “We’d go back to his house where I left my car. Oh, sometimes there would be a guy from one of the other state road divisions waiting at his house. It seemed he had gone to other garages. They’d go into his house, and he’d give Charles some envelopes. I went in a couple of times,” Wayne Adkins related. “After those meetings at his house, Charles would drive to state road headquarters in Charleston. 72
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“That seems like it could be important information,” Adkins’s attorney said to the U.S. attorney. “If this information turns out to be important, we’ll let the judge know. We could request that you be assigned to a prison in an adjacent state. So we can check it out; I’ll ask the judge to delay the sentencing for another month,” the U.S. attorney responded.
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Chapter 11 The ‘Why’ Never Changes For supplying information on Beauregard’s early career with the state road department, the former Lawnsville mayor would not get a reduction of his sentence but would serve his time in a federal prison in nearby Virginia rather than on the other side of the country. Likewise, Adkins agreed to plead in the roadblock case. They understood that a sentence of 15 to 20 years would be added to that already given to the former mayor for his role in connection with the crime that burned the Crier to the ground. Finally, some of the Jordan County cases are completed, the U.S. attorney thought. Interest in the Flower Fund wasn’t limited to the U.S. attorney’s office. After his conversation with the federal prosecutor, the Crier publisher continued asking questions about the Flower Fund. Hill found the possible present existence of the Flower Fund so disturbing that he decided to do a little research for a Crier story. How in the hell could I get anyone who knows about it to confirm this stuff? Rick asked himself. It’d be like confessing to a crime. “Baxter, do you have a minute to talk?” the Crier publisher asked as the familiar voice answered his call. “From that tone, I know you’re about to stir something up,” the reform leader responded. “Just following up on that conversation we had a couple of weeks ago. I’d like to talk to someone that knows about how the 74
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Flower Fund thing worked up at the county state road garage. You know anyone?” “Maybe. But getting them to talk to you could be a problem,” Baxter continued. Leaning back in his chair, Hill said, “They would not be quoted at all. I need some background information and would like to talk to two or three of them – separately, of course.” “This won’t be easy. But I’ll see what I can do,” Baxter answered before quickly hanging up. About three days later, Rick was working on the next day’s edition when his phone rang. “I found two guys who have agreed to talk with you. They don’t know the other will be talking too. One retired from the state road about eight years ago and the other six years ago.” Plans were made for Baxter to bring one by Rick’s house in the evening two days later, and the other meeting would be at Baxter’s mother’s house the following evening. Rick couldn’t believe what he was hearing. Both confirmed that when they were hired for the state road jobs, it was made clear that they would make a cash contribution to the Flower Fund every payday. “I was told the money was used in campaigns to make sure that the higher-ups would get re-elected. That meant we would have jobs,” one explained. Each payday, the workers would give cash (five percent of their pay) to their county road supervisor. While Rick had found Baxter to be a good source, he felt he needed to confirm the information with someone Baxter hadn’t “found.” John McDowell had just finished the new shelving under the office counter and was in Rick’s office to get paid. After handing over the cash, the Crier publisher asked the carpenter to shut the door and have a seat. “John, did you or any of your brothers ever work for the county state road garage?” 75
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“Well, the youngest, Leonard, worked there for a couple of years when he was just getting started. And I think his son might have worked there a couple of summers. What are you up to now?” he asked, chuckling. “Did Leonard ever mention contributing to the Flower Fund?” Hill asked. “You do like to stir things up. He did and just hated it. But that was the only way to get the job. When he went for the interview, they told him right up front he had to agree to do it in order to be hired,” John McDowell explained. “Off the record, I’d like to interview him about it.” “Not sure he’d do that. Leonard is really private. I’ll talk to him this evening and get back to you tomorrow. We do owe you for the advice about the land sale.” The two McDowell brothers and Leonard’s son sat across from Rick as he took out his notebook. “Leonard, your all’s name will not be connected in any with what we talk about here. I’m working on a story about the Flower Fund and how it operated. I have talked to some other folks about it,” the Crier publisher carefully explained. “That’s what John said, and we know that we can trust you Mr. Hill.” Leonard McDowell and his son confirmed everything Baxter’s friends had told Rick about the “contributions” to the Flower Fund. Then Leonard added an interesting point, “we never had to donate for the payday right before Christmas. County supervisor said it was from Santa.” “Did you ever talk to guys at any other county garages about it?” “There were several times at training classes on new equipment at the district headquarters it came up. We all agreed that it was like insurance. Just what we had to do, and running election campaigns can be expensive. Some thought that the higher-ups took a rake from the money, too,” Leonard concluded. 76
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Rick was certain that this story had the potential of bringing a lot of heat down on the Crier, but it was certainly a story that needed to be printed. The call to the headquarters of the state road department brought a strong denial from the commissioner. “Those rumors have been around for years and are as false today as they were then. Our workers are dedicated and earn every penny they are paid, and we’re happy to have them.” Jordan County’s state road garage supervisor wasn’t quite as cordial. “What in the hell are you talking about? Nothing like that has ever happened here. Never heard of such trash. And don’t call back.”
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Chapter 12 Flowers are Expensive Reports of Forced ‘Flower Fund’ Contributions Plague State Road “State road workers who have worked in other counties have told the Crier that in the past they had been forced to make contributions to a Flower Fund in order to be hired and hold their jobs” was the lede. The story continued, “The state road commissioner and state road county superintendents contacted by the Crier denied that anything like the Flower Fund had ever taken place in state road operations. The Crier publisher purposefully used mixed tenses to make it hard to know if those interviewed for the story were talking about a practice still going on or one buried in the past. To protect his sources, Hill used “other counties” in the story. It was technically true since the training courses were in another county. One part of the story Rick found fascinating were the figures. The story spelled out how much could be collected if the figures that came to him were correct – an average of 30 workers at each of the 55 county state road garages with an average annual salary of $5,500 and a five percent “Flower Fund contribution” from each employee the estimated amount “contributed” would be over $450,000 annually. For most Crier readers, the story was just another example of the political corruption that they felt was prevalent at nearly every level of government in West Virginia in the early 1960s. 78
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For Rick, the story failed to answer the key question – “Was the Flower Fund still in operation?” Beauregard was amazed after reading the story at how close the figures were to the real amount he collected while overseeing the Flower Fund. While there was a buzz in the county from the Crier story, Charles did not plan to let it derail his plan to make good on his promise to the new governor to reinstate this hallowed West Virginia tradition. The two intervening Republican administrations chose to discontinue the Flower Fund during their terms. Since those who worked at the county state road garages had no civil service protections, when the Democrats regained the governorship, all the employees in the garages were fired and replaced with those loyal to the new governor’s party. The Flower Fund “collections” would be reestablished in two weeks. Of course, as in the past, Charles would skim an appropriate “fee” from each payday collection. The U.S. attorney and his top investigator were examining the Crier story to see if there was any hint as to whether the Flower Fund scheme was still extorting money from state highway workers. The federal prosecutor would have been working even harder if he had known that the person recently acquitted of the federal bribery charges could be caught up in the investigation. Since his meeting with the new governor, Beauregard had talked with the employee in each state road division headquarters who, among their other duties, handled political issues in their area. They were the ones who would visit the county garages each state payday morning and bring the county envelopes filled with cash to Charles in Charleston by the end of that day. All the county supervisors and the division personnel had been appointed by Sonny Monroe and were retained by the new governor. 79
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Charles was already counting the money he would siphon off each payday from the shady operation and add to the considerable nest egg he had stashed away from his previous tenure as Flower Fund coordinator and his relationship with Business Management. One day, a veteran Crier route driver came in a little early to pay his paper bill before picking up the bundles of papers for his route on some of the beautiful winding roads in Jordan County’s southern end. He nodded toward Rick’s office. “Wanted you to know that that story about the state road garage is right on target,” was all the grizzled man from up on the county’s highest mountain standing in front of his desk said. He turned and left without waiting for any comment or question from Hill. The Crier publisher’s ears perked up, “He said ‘is’ and NOT ‘was.’” Rick wasn’t sure if was used on purpose or if it was an Appalachian adjustment to the language. But given his bent toward eternal optimism and it was the only thing he had to go on, he’d go with the former. The Crier publisher knew that some of his route drivers had relatives who worked at the county state road garage, but he didn’t approach any for the story on the Flower Fund. He didn’t want to pressure any of them. He certainly didn’t want to do anything that might result in someone losing their state job, so he didn’t press the route driver for any more information.
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Chapter 13 Page Changes—Story the Same While Hill’s attention was on Beauregard and his possible connection to the Flower Fund, he was mindful that Jordan County’s old-line political faction was undergoing a transition as Bell’s date to report to prison was approaching. Former Crier publisher Joseph Ballengee, knowing Bell would be sentenced to federal prison in the next week or so, stopped by to see how his friend was holding up. Joseph had known Red’s father, who was the one who convinced him to become a strong supporter of the old-line political faction. “Wanted to stop by and let you know how bad I feel about all this, Red,” Joseph said. “Well, I appreciate that, Joseph. But it could be a lot worse. I could be facing 10-15 years. But the way things worked out, my lawyer says the sentence will be 2-5, and I’ll end up serving about two in a medium-security prison over near Lexington, Kentucky. We’ll be moving to Florida when I get out, at least for part of the year,” Red responded. “Anything new with Charles? I haven’t seen him lately,” Ballengee continued. Shaking his head, Red answered, “We don’t really talk anymore. But I heard he got a job at the state road in Charleston. It’s part-time – some type of consultant. He’s been close to the new governor for years.”
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Ballengee thought about the recent Crier story and wondered if Charles was somehow involved in shaking down county state road garage employees for Flower Fund contributions. After again wishing his friend “good luck,” Joseph headed for the Crier office to drop off his column. He poked his head into Rick’s office to say hello and accepted the unexpected invitation to sit down. “What’s new, Joseph?” Rich Hill asked the surprised former publisher. “Not much. Been playing a little golf and visiting the kids and grandkids. The wife is having the kitchen remodeled. I try to stay as far away from that as I can.” Changing the subject and moving to what prompted the invitation, Hill said, “Guess Red will be facing the sentencing in the next week or so. Wonder how Charles is going to move forward with the old line?” “Red’s not as down as I thought. It’ll be tough on his family, but don’t expect he’ll be away for much more than a couple of years. Charles will have things in pretty good shape by Election Day,” Ballengee responded. “Joe Brown was in the other day to get acquainted since he is the new county Democrat chairman. He’s got a lot of work to do to bring the old line back,” Rick observed. “He didn’t mention Charles at all.” Wanting to show he was still aware of what was going on in Jordan County, Joseph offered, “Understand Charles might have some type of position at the state highway department in the new governor’s administration. He’s known the new governor for years.” “That’s interesting. Didn’t know they were close,” the Crier publisher said, trying not to show his intense interest in that bit of information. Caught off guard by Hill’s call, Charles responded without thinking, “oh, I might be doing some work with the divisions around the state. Nothing much. I was flattered the governor 82
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called. I’m willing to do anything I can to help while he gets his feet on the ground.” The front-page Crier story included a picture of Charles, a bit about his earlier position with the state road department, and also his trial and acquittal of bribery in the scheme for the Jordan County riverfront land development. As he finished the short four-paragraph story, Hill thought it might get some attention at the U.S. attorney’s office.
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Chapter 14 Sunshine Unwelcomed Medicine at Hospital Some? The federal prosecutor’s office was buzzing. But how to use it to see if Beauregard would again be working the Flower Fund escaped the experienced federal investigators. “Nothing is ever easy down in Jordan County,” the U.S. attorney lamented. But in Lawnsville, Hill was happy he would see less of the state capital. After traveling to Charleston off and on for over two years to cover the federal trials of local political figures, the Lawnsville Crier publisher was looking forward to getting back to spending more time on local news. That welcomed transition would begin tonight with the monthly hospital board meeting. The agenda didn’t look very interesting. But then Hill had learned a long time ago that a docile-looking agenda in Jordan County could blossom into a full-blown donnybrook when someone asked what seemed to be a simple question. Tonight’s meeting did have one interesting aspect. Three new board members would be attending their first meeting, having just been appointed by the new reform majority on the Jordan County Commission. It was the first time in his ten years as hospital administrator that Will LeMasters hadn’t been consulted by the commission about people being considered for appointments to the county hospital board. However, he was comfortable that board members he “approved” still occupied
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six of the board’s nine positions and would stand with him if any troubling issues arose. Unbeknown to the Crier publisher, one of the new members had asked the hospital administrator for all the hospital’s monthly financial statements for the last 12 months, including lists of the individual bills approved at each of the board’s last 12 meetings. Will LeMasters had not yet provided the information, hoping the new member would not press the issue. Of all the board positions, Will LeMasters spent more time with the long-time treasurer. While the treasurer presented the monthly financial report at board meetings, LeMasters worked closely with the treasurer and business office to make sure the report always emphasized the positive aspects of the operation and minimized or completely ignored any problems that arose. At the end of his report, the treasurer asked for a motion to pay the monthly bills, a list of which was attached to the report. He had a file of the invoices for the bills if anyone was interested. The motion was made and approved unanimously with no discussion. Following this speedy approval, the new board member who had made the request asked if the treasurer worked with the hospital’s business office to put together the monthly reports. Before Will LeMasters could intervene, the treasurer answered that yes, that was the procedure and a conference with the hospital administrator. Turning to the hospital administrator, the new member said, “Will, how come you couldn’t have just asked the business office to provide me with the information I requested two weeks ago?” “The workload has been just too heavy to go back and compile all the information you requested. It was a year’s worth of information,” the administrator curtly answered, certain his authoritarian tone would intimidate the new board member into silence. It did not. 85
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“Will, it’s clear that the treasurer’s monthly report and list of bills to be paid are on file in the business office. So, there is no compiling to done – just copy what is already in the files,” the new member said in an easy conversational tone. LeMasters noticed that Hill was taking notes on the exchange. “I’ll get with the business office tomorrow and try to have it all to you by the end of the week,” the hospital administrator responded, clearly not pleased with the direction of the conversation. “What exactly did you ask for?” one of the other new members asked. The answer caused the questioner and the other new member to ask that the information also be sent to them. The Crier publisher wasn’t sure what the dust-up was about, but he was certain that there was something in the financial reports that Will LeMasters didn’t want the board members to examine closely. On the other hand, perhaps there was nothing nefarious in Will Lemasters’s response other than his not liking that his system of managing the hospital was seemingly being questioned. Nonetheless, the Crier publisher planned to carefully review the material. About a week later, while examining the list of bills attached to the most recent monthly hospital financial report, Hill noticed the material included three invoices from the same company. He called Will LeMasters to see why those three bills weren’t combined. “Rick, the bills are for furniture for three different departments, and this procedure makes it easier to track expenses by the various departments,” the hospital administrator explained smoothly. “Makes sense to me,” Hill said. Hanging up, Will LeMasters smiled at his ability to easily deflect the inquiry about a regular maneuver which, in fact, 86
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allowed him to avoid state requirements for county agencies to solicit competitive bids if a single purchase order was over a certain dollar amount. Feeling confident after deflecting the question from Hill, LeMasters graciously granted the Crier publisher’s request to get copies of the full financial reports for the last 12 months. While the slick hospital administrator was extremely adept at controlling the hospital in every way, he didn’t notice some important “hidden” messages the invoices contained. As the Crier publisher went through the 12 monthly files of invoices, he noticed that a number of the companies were located in the state capital. Because of the significant number of bills from these companies, he went back and pulled out all the invoices for the individual companies. Then his old printer’s eye caught a significant coincidence – all seven Charleston companies, while having different addresses, had the same invoice format with the same type face. There were seven different groups of invoices – two were medical supply and equipment companies, three sold furniture, and two sold general supplies (including items for cleaning and maintenance). There were never invoices from all seven companies in the same month. Some were every other month, others maybe every three months, and others scattered throughout the year. When he completed his review, he called the administrator with some questions. “One thing I did notice is that the hospital seems to do a lot of business with different companies for the same types of items like furniture. Why’s that?” The hospital administrator smiled at what he considered a soft-ball question, “Well, we have to be on the lookout for the very best price and find that doing business with several companies like that ensures we get the best price.” Going over these invoices one more time, another “coincidence” hit Hill between the eyes – several of the companies 87
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had addresses on the same street, seemingly next door to each other. Three others had consecutive post office box numbers. On his final inspection, he found that in one month, there were four invoices from the same company – one for each of four components of the same piece of equipment. That one stumped the Crier publisher. Attempting to see how best to use the information in a Crier story, Hill had reviewed the seven Charleston company invoices, which totaled just over $150,000 for the 12 months. So far, the only mention of the matter in the Crier had been in a hospital board meeting story noting at the end that a new board member had requested information on the last 12 monthly financial reports. The Crier publisher decided to wait and see what came out at the next hospital board meeting. Following the treasurer’s report, the new member who had asked for the last 12 months’ financial records was recognized by the board chairman. Hill noticed that Will LeMasters was tense and fully focused. “I appreciate Mr. LeMasters providing me with the last 12 monthly financial records. I’ll probably have some comments and observations when I complete my review. And a special thanks to the business office for pulling it all altogether.” LeMasters relaxed when he realized there would be no pointed questions or comments on the matter, at least for now. The hospital administrator decided he would offer to meet with the board member in his office in a private meeting and answer his questions in hopes that maneuver would keep any further discussion about the invoices out of a future public board meeting. That would also keep the subject from being included in another Crier story.
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Chapter 15 Different Really Isn’t Meanwhile, Hill was continuing his examination of the hospital’s financial information. He kept coming back to the addresses of the companies on the invoices. Upon checking with the main Charleston post office, Hill found that all the boxes for the companies were located at the same post office branch on the same street as all but one of the other companies were located. He found out what time the mail was put in those boxes each morning. Getting up at 4:00 a.m., the publisher left Lawnsville so that he arrived at the Charleston post office branch about 7:30 a.m. The Crier publisher positioned himself in the lobby at a stand-up table which provided a view of those boxes. A half-hour later, a smartly dressed woman showed up and removed mail from each of the three boxes. Rick completed an envelope he was addressing, dropped it in the slot, and followed the lady about two blocks to a two-story building with offices on the ground floor and what appeared to be apartments on the top floor. The office had four entrances – three on the main street and the other around the corner in the same building but fronting on a different street. The numbers above the doors matched the addresses which appeared on some invoices sent to the hospital. However, there was only one company name – Business Management, Inc. – on the front window. None of the company names on the invoices were anywhere to be seen.
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It was interesting to Rick that the door around the corner on the other street – actually more like an alley – appeared to be a seldom-used private entrance but still had address numbers above the door which were on some invoices. And it appeared that the companies with the three mailboxes and four street addresses listed on the invoices were all part of Business Management. Rick walked around the building getting photographs – making sure to show the street numbers above each of the four doors. Next, it was time for the Crier publisher’s tried-and-true approach to news gathering, “get it from the horse’s mouth,” and into the belly of the beast he went. He explained to the receptionist that he was interested in doing a feature story on business consulting, particularly in the area of medical facilities, and would like to speak with whoever was in charge. He produced his Lawnsville Crier business card. After a short wait, Hill was ushered into a nicely furnished office down the hall behind the reception desk. At first, Franklin Bowman, the president of Business Management, Inc., seemed apprehensive but relaxed a bit when Hill started off conversation by complimenting the company about the extensive business with the Jordan County hospital. It went smoothly from there. The Crier publisher didn’t mention Will LeMasters but didn’t argue when the company president assumed Hill was referred to the company by the Lawnsville hospital administrator. Rick’s questions were general in nature and offered the opportunity for the president to wax eloquently about the company’s operation. The company president emphasized how Business Management helps smaller firms and organizations benefit from its ability to buy in bulk. When asked if the company works with many hospitals, the manager hesitated ever so slightly. Then mentioned that the company has several other 90
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smaller hospitals as clients who participated in a group buying arrangement for some medical supplies. The Crier publisher asked a few questions concerning whether the company worked with many governmental units in smaller cities and counties. “Oh, yes, and that is expanding all the time. We are very pleased with that side of the business.” Carefully exploring, but not with a brash frontal assault, what may be the reason for the other companies’ names not being visible, Rick asked if the company had many divisions. “Well, we have several based on the products, but we operate under one name Business Management, Inc. We’re working to build the company’s recognition statewide.” “So, there are no separate companies,” Rick asked gently. “Oh, no. There was at one time, but we’ve moved away from that. We found it just confused our customers,” the company president assured – a bit too quickly, Hill felt. Thanking the company president for his time, the Crier publisher quickly sat back down as if he just remembered another question, “Oh, I just thought of one other question,” giving absolutely no indication that it was one of the most important inquiries of the interview. “Do you all do any business with any state agencies being in Charleston and all?” “Oh, yes, until about six years ago, we worked with the state primarily with fill-in orders for furniture. It appears, with the new administration, we will be doing that again and even be expanding into several more product categories in the near future,” the manager said proudly. The Crier publisher thought, Wonder if Beauregard’s close relationship with the new governor had anything to do with that? On the drive back to Lawnsville, Rick assumed that the company president would call Will LeMasters about the interview. The Crier publisher had no doubt that the hospital administrator would be curious and perhaps even concerned about how Rick 91
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found the parent company since its name appeared nowhere on the invoices at the hospital – only the names and addresses of the other companies. It would be evident to LeMasters that Rick had done some serious research to track down the company and might be coming to him with some troubling questions. Hill wasn’t surprised that his first call the next morning was from the Jordan County Hospital. “Thought there might be a story there. It’s no doubt they have a successful and fast-growing operation. Was down to Charleston for a state bid opening to print the Rolling Hills college newspaper and decided to drop by the company. Hope the president doesn’t get upset but doesn’t seem to be a story there that would interest Crier readers,” Hill danced, leaving just enough wiggle room when (not if) such a story did develop. “How did you pick that company for a possible story?” the hospital administrator asked. “Oh, don’t remember. Somebody around town mentioned it in connection with something else,” the Crier publisher said, matching Will LeMasters’s nimble linguistic gymnastics and casual tone. As soon as the call with Hill ended, LeMasters called the hospital business manager to drop by his office. The business manager went back to his office puzzled by his boss’s request, “Search all your records to see if you find any reference to a company called Business Management, Inc. I don’t recall it, but it came up in a recent conversation.” After finding nothing during the examination of the hospital invoices for the last two years, the business manager decided to check Will Lemasters’s personal expense account file. There in the expense file from seven years before was an expense voucher for a trip to the state capital for “a meeting with the president of Business Management, Inc.” When he handed the copy of that voucher to the administrator, the business manager was cautioned 92
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that the matter was confidential and not to be discussed with any other staff member. Looking at the voucher, Will LeMasters remembered very well that meeting seven years ago between him, the company president, and Charles W. Beauregard, Jr. The meeting was a follow-up to a private one he and Charles had to discuss the hospital purchasing procedures. Charles had explained that Business Management was owned by a friend of his. He left no doubt that he wanted the hospital to develop a close relationship with the company. During that Charleston meeting with Charles and LeMasters, the president of Business Management explained in depth the various types of products it could provide – invoices that would show different companies making it appear the hospital was dealing with several companies rather than just favoring one. Then the three discussed how larger purchases could be broken down into several smaller orders to avoid the state statutory requirement that larger purchases by county agencies had to go through a competitive bid process. One result of that part of the conversation was the set of invoices Hill had found for the purchase of a large and expensive piece of medical equipment. There were four invoices – each for a different component of the machine. The hospital’s relationship with the companies created by Business Management had developed over the years, and now purchases totaled in the neighborhood of $150,000 annually. LeMasters was aware that most of the company’s prices were a bit above the norm. But he understood that the arrangement pleased Beauregard. And Beauregard controlled the county commission, which oversaw the hospital, including appointing members of the hospital board. The politically savvy hospital administrator was not about to rock that boat. While he had his suspicions, LeMasters was not aware of the “monetary reward” Charles received from the company as 93
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a result of the hospital purchases. In addition, Charles received an even more lucrative benefit for the business he secured for Business Management from the state furniture contract. Charles’s reaction to the hospital administrator’s call about Hill’s nosing around about Business Management surprised the hospital administrator. The political kingpin wasn’t worried at all. “Will, you followed all the purchasing regulations, so there’s nothing to worry about,” Charles assured, knowing that he couldn’t be connected to the hospital-company relationship should a problem arise.
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Chapter 16 Again Puppeteer Behind the Curtain As he placed the phone back in the cradle, LeMasters realized that if this situation did blow up, it was him, not Charles, who would be out in front. “Set-up” flashed before his eyes. Depending solely on Charles’ recommendation, the hospital administrator hadn’t even bothered to check out Business Management, Inc. with other hospital administrators around the state who he knew did business with the company. While disturbed a bit by the situation in which he found himself, LeMasters was confident he’d be able to handle any questions from the curious board member. With the Crier publisher, he was more concerned. The hospital administrator wondered if the board member and Hill might be working together in probing hospital purchasing procedures. At the next meeting, the treasurer began presenting his monthly financial report for the hospital, Hill noticed that LeMasters got a bit nervous when the board member took a large file out of his briefcase. “I’ve reviewed a bit closer the last 12 monthly financial statements and invoices and find something disturbing, Will. Why are we doing so much business with these companies down in Charleston? It’s about $150,000 the last 12 months.” Finding it hard to believe how easy it would be to answer the question, LeMasters leaned forward, hands folded on the table. “First, we have had the policy of purchasing from in-state companies as much as possible. We follow it because the county 95
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commission has indicated they prefer that. As you noticed, we do go out of the state occasionally. Generally, that is only when we can’t get the items from in-state firms at a competitive price,” he answered smoothly. “From time to time, we do monitor and contact out-of-state companies to make sure the prices we get in-state are competitive. In most instances, we find that they are,” he added. Satisfied that he’d made the hospital administrator squirm a bit, the board member thanked him and nodded at the two other new board members. Hill considered the hospital administrator’s answers, while true on the surface, to be just a little too slick and self-serving. Something’s just not right, Hill thought as he watched the exchange between the board member and the hospital administrator. Based on the results of his trip to Charleston, he was certain that something was out of plumb about the hospital’s relationship with Business Management. Edwards, a board member, made no eye contact with the Crier publisher but carefully followed the discussion between LeMasters and the new board member and took extensive notes. The following morning, no more had Hill turned his story in on the routine hospital board meeting than his phone clanged to life. “What do you think’s going on?” Edwards asked without introduction. “Whatever do you mean?” Rick responded flatly. “Is there any doubt in your mind something’s up with the hospital purchasing?” the reform faction leader pressed. “Not sure it’s that or just that Will likes to run the hospital in his own way without any questions whatsoever,” the Crier publisher responded, not rising to the bait. “It just seems that something is going on with those companies in Charleston,” Baxter concluded. 96
Chapter 17 Sunshine Attacks the Dark After the call ended and after digesting Baxter’s comments, Hill started digging and reviewing his notes from the Charleston trip, his interview with Will LeMasters, and last night’s hospital board meeting. Laying the notes on his desk and comparing all three, there were gaps. “Something’s just not right,” the Crier publisher concluded. He decided an overall story on the hospital, its importance to the county, and its operation might be in order. It would include pictures of a number of hospital employees. While the story would be positive for the most part, the problem areas would not be ignored. A small segment of the article would look at the hospital purchasing process. Initially, the Crier publisher had reservations. He didn’t want the story to damage the hospital’s ability to provide Jordan and surrounding counties with medical care. Then he realized that if his suspicions were on target, the financial stability could improve if purchasing procedures became more efficient. Rather than call Will LeMasters about the story idea, Hill decided on an approach that would paint the hospital administrator into a corner – announce the story idea at a hospital board meeting to ensure the administrator’s cooperation. All but two members, LeMasters’s closest allies, thought the story was a great idea. There was no way the hospital administrator could protest. Instead, he decided to try and steer the story to positive aspects of the hospital’s operation – emphasizing the 97
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number of jobs provided for county residents and the growth in the number of patients from several surrounding counties. Hill’s story started off with the complexity of managing such a multi-faceted operation like the Jordan County Hospital – third only to the school system and railroad in number of employees in the county. Illustrated by pictures of the recent parking lot extension, the story noted that the number of patients was increasing – particularly from adjacent counties. Next, the Crier feature examined the number of departments that had to be staffed, managed, and stocked with adequate supplies and equipment. To illustrate that point, the Crier publisher included the fact that over the last 12 months, the hospital had purchased items from more than 200 companies headquartered in West Virginia and several other states. In a “thrown-in” compliment, the story included a quote from the hospital administrator that his extensive logistical experience in the U.S. Army made him a good fit for managing the complexity of the hospital. Nestled down in the story’s middle paragraphs was a mention of the new board member’s request for information on the hospital bills for the last 12 months. It was noted that the member seemed satisfied with the hospital administrator’s responses to his pointed questions. In that connection, the story included Will LeMasters’ statement about trying to do as much business as possible with companies located in the state. That section introduced the relationship with Business Management in Charleston. While that specific company was nowhere to be found in the lists of hospital bills over the last 12 months, more than $150,000 in various purchases were from companies that are part of the Charleston firm. Also included was Will LeMasters’ explanation. “We do business with the entities that sell at a competitive price, the items we need to operate the hospital,” LeMasters 98
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explained. He didn’t mention that the purchases for all those companies were handled by a single Business Management sales representative. The story noted the complexity of the hospital operation and gave particular attention to one item – the four separate invoices for parts of the piece of equipment for a new hospital laboratory. It pointed out that the amount of each invoice was under the amount requiring a competitive bid. But the amount on one hospital purchase order would have triggered the competitive bid requirement. The hospital administrator was quoted as saying, “We had to do it that way because the various components were not available for delivery at the same time.” In a section Hill knew would cause the hospital administrator heartburn, Will LeMasters was quoted about how the hospital purchased from different furniture companies in order to get the best price. Then the story noted that all the seemingly “independent” furniture companies’ mail was delivered to addresses and post office boxes all connected to Business Management. “I don’t know how the overall company is managed. When we need to purchase items, I’ll locate companies interested in submitting quotes. I didn’t even know the companies were under Business Management until the Crier story several weeks ago,” the hospital administration lied. Throughout the story, the complexity of running the hospital was front and center. Crier readers – including a number of hospital employees – focused with great interest on the paragraphs dealing with the hospital purchasing process. A side-bar story examined the companies connected with Business Management, the Crier publisher used pictures taken in the Charleston post office branch showing the post office boxes with consecutive numbers and the outside of the Business Management headquarters showing the different street addresses 99
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above the doors. The company president was quoted saying that the firm was moving away from having any subsidiaries “to avoid confusing people.” Hill asked about the different companies and street addresses and post office boxes. In a somewhat disjointed response, the Business Management executive explained that that system was left over from now-retired company officials and was being phased out. Several days after the Crier story appeared, an interesting incident came to the Crier publisher’s attention. Billie Amherst, the Crier community news editor, related to Hill that the hospital story came up during a conversation with her friend who worked part-time at the local state police detachment. “Bessie told me something about two of the Charleston companies you mentioned in the hospital story. An office chair meant for the state police office got dropped off by mistake at the hospital, and she had to go pick it up, along with some cleaning supplies from a different company mentioned in the story. These got mixed in with a very large shipment for the hospital. “She said Will LeMasters was at the loading dock when she got to the hospital. He was really upset and apologized for the mix-up and told Bessie not to tell anyone about it since it would embarrass the trucking company involved. Bessie said that Business Management was on the door of the truck.” Rick shook his head. “This seems to be growing.” The community news editor chuckled. “Oh, I’m not done – there’s more. There was a guy from the county state road garage picking up a desk that got mixed up in the same shipment. It was from one of the other companies in the story,” Billie concluded. That last sentence got Hill’s full attention. “Billie, call her and confirm that the hospital, state police, and state road garage all got shipments from that truck,” the Crier publisher responded. Not believing in coincidences, Rick found it interesting that Business Management companies were supplying the hospital, 100
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the state police, and the Jordan County state road garage. “Wow, boss. Bessie confirmed that all three of those shipments were on the Business Management truck – and from different companies you had in the story,” Billie gushed, always glad to be connected with any story other than weddings and club meetings featured on her community news page. “What’s all this mean? Anything else I can do?” she asked, hoping she’d get to work with the Crier publisher on what she suspected could be a big story. “Billie, not sure this all means anything. Just keep your ears open. Stay low-key and check with her every now and then to see if anything else turns up,” he cautioned. Why in the world does Business Management use all these other companies’ names? It seems it would increase the cost of bookkeeping and labeling, Rick thought as he mulled the idea of what seemed to be unnecessary paperwork. I’m missing something, he pondered as he looked over the notes he’d taken while gathering information for the story, including his interviews with the president of Business Management and Hospital Administrator LeMasters. The next day’s Crier had a short four-paragraph story about the Jordan County state road garage and local state police detachment getting recent shipments from different Business Management companies on the same company truck as a shipment to the hospital. The Crier publisher was not the only one thinking about Business Management and its business practices. Not wanting a repeat of this shipping mix-up, Will LeMasters called the president of Business Management to let him know of his unhappiness with the foul-up. Given that Beauregard had a position with the state road department, the hospital administrator did not want a repeat of something which could possibly publicly connect the hospital closely with the old-line political faction leader. 101
Chapter 18 Curves Make Connecting the Dots Confusing Two and a half hours away in the state’s capital city, others were mulling over the situation, trying to connect the dots of this latest Jordan County maze featured in a Crier story. Copies of Lawnsville Crier stories were on the desks of the U.S. attorney, his top assistant attorney, and the office’s chief investigator. Of particular interest was the section in the Crier story dealing with the Jordan County Hospital’s extensive purchases from the Charleston company, which also had dealings with several state agencies, including the state road department. The assistant U.S. attorney had attached another Crier story – the one about Beauregard’s recent appointment to a “consulting” position with the state road department. Along with the two Crier stories, he had his notes from the meeting with the convicted felon and former Lawnsville Mayor Ben Howland who succeeded Wayne Adkins, another former Lawnsville mayor convicted of a federal crime. In that discussion, Howland related to the federal investigators that shortly after his complaint to Beauregard about state police patrols in front of Lawnsville bars, the patrols came to an abrupt halt. There is just no end to the twists and turns in Jordan County. Beauregard seems to be at the edge of a lot of this stuff, but he’s like a greased pig at a 4th of July picnic, the U.S. attorney thought. He was meeting with his top assistants to prepare for the upcoming trials for the Franklin County companies who supplied 102
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the beer and slot machines to the Lawnsville bars involved in the shakedown by the former mayor Howland and police chief. This aspect was particularly troubling because of the conversation between the state police superintendent and his close friend, who was also one of the federal investigators. The police official related that there were rumors that state police routine patrols in certain northern areas could be curtained in the near future. In preparing to implement the plan, the new secretary of public safety had shoved the superintendent aside and taken over operational control of the statewide law enforcement agency. This combined with reports that the vending machine company and beer distributor involved in the Lawnsville scheme were expanding into those same northern West Virginia areas slated for state police cutbacks. The U.S. Attorney had faint hope that the coming conference with the beer distributor would bear fruit. The federal prosecutor was certain he’d be in for a tough time when the owner of the Franklin County beer distributorship arrived. The beer man, Owen “O” Williamson, was about 6’ 4,” outwardly confident, wore a finely tailored suit, and was accompanied by two lawyers of similar demeanor, stature, and dress. The façade totally collapsed with the federal prosecutor’s first question, “Could you tell us why you are expanding into the northern part of the state?” The two lawyers asked for a 15-minute break to confer with their client. Completely confused, the federal team left the room. “They had to expect that question. What is going on?” one of the assistant U.S. attorneys said after they were out of the conference room. When the federal prosecutors returned, the senior attorney for the beer distributor spoke uneasily, “I want to inform you that this is a very delicate situation. We ask for some assurances 103
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that my client will get some consideration if he answers all your questions and becomes a witness for the prosecution in this and any other trials that might result from this situation.” Now, it was the U.S. attorney who asked for a 15-minute recess to confer with this staff in his personal conference room. “There’s only one explanation for all this,” the U.S. attorney said as he closed the door to his conference room. “It’s connected to what we’re hearing is being put together up north and likely involves the new governor, former governor Sonny Monroe and the secretary of public safety. They all grew up in Franklin County and went to high school together. Any ideas on how to move forward?” “The distributorship they bought up north is a much, much larger operation. According to the former owner, they made a very high offer. Said it was at least 30% above what he would have asked. He had no plans to sell until he heard the figure.” “How was the purchase financed?” one assistant offered. “Well, let’s just play it simple – follow the money,” the U.S. attorney said as he rose to lead his team back into the meeting. Up to now, “the meeting” had lasted a total of two minutes and the “recesses” nearly an hour. When the federal prosecutors reentered the room, they found the beer distributor even more nervous than before. “We were wondering why you made the move to expand into the northern part of the state,” the senior assistant U.S. attorney asked casually. “I was encouraged to do it by a fellow I went to high school with,” the beer distributor answered in a hushed voice that didn’t fit his 6’4” 250-pound frame. “Who was that friend?” “I’d rather not say.” The U.S. attorney’s hand slammed on the table bringing full attention and total silence from everyone on both sides of the table, “Damnit, we didn’t come here to play games. You’re 104
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charged with a federal crime that could carry a sentence of up to 10 years in a federal prison in California. Now, this is your last chance. Was it Sonny Monroe?” “Yes,” came the answer in an even-more hushed tone. “Now we’re getting somewhere. How did all this come about?” the U.S. attorney asked. “Sonny was aware of the arrangements we had in Lawnsville with the mayor and police chief for the bars there to buy from us, and we paid kickbacks to those two. “Several years before, we had the same thing going with the Franklin County Sheriff and his former chief deputy who Howland selected to become the Lawnsville Police Chief. Sonny called and asked if I’d like to expand to the northern part of the state with the same type of arrangements. I was ready to jump at the chance. I made really good money while we had it going in Lawnsville. “But I told him I didn’t have the money to buy one of the beer distributors up north. They are much bigger. It was just more than I could handle,” the beer distributor said. “But you did expand and bought one of the larger distributorships up there. How did you do that?” the U.S. attorney pressed. After a nod from his attorney, the beer distributor continued, “Sonny said he’d try to find me some help. About two weeks later, he called. Told me he had things worked out. Said he needed me to come to Charleston. “The meeting was in his office at the Capitol, and the other guy was Beauregard from Lawnsville. Sonny asked how much I’d need to close the deal with the folks up north. When I told him, Charles opened a briefcase and counted out $50,000 cash. I was amazed. He had a lot more in there after he gave me the $50,000. Charles had a legal agreement with him that I signed. It acknowledged his payment got him 50% of that distributorship. The agreement wasn’t going to be filed anywhere, just a private 105
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agreement between the two of us. Charles said we’d talk later about how he would get monthly payments once we were up and running. “Then the three of us talked details of how everything would work. The governor explained that several sheriffs up north were already laying the groundwork. They would put pressure on the beer joints to buy beer from me. If they didn’t buy beer from me and rent machines from our partners, deputy sheriffs would be posted outside their taverns and arrest their customers for DUI when they pulled out of the parking lots. We discussed that while the beer distributorship was already doing well, when our plan went into effect, its business would increase by at least 30%. He said everything would be in place in the next two to three months. The governor explained it’d be the same arrangement as in Lawnsville, only on a much bigger scale. The machine folks from Franklin County also expanded up north and would put in the machines – jukeboxes, cigarette machines, and slots. Later, poker and blackjack tables would be added,” the Franklin County beer distributor concluded. “Did Beauregard take part in this conversation?” the U.S. attorney pressed. “So, he was aware that the illegal pressure by the sheriffs would benefit your all’s beer distributorship?” “Oh, yes, we discussed how the entire plan would benefit the companies – machines (cigarettes, pinball, and slots) and beer distributorship. He asked about the state police being on patrol,” the beer distributor explained. “The governor told him that the state police patrols would be cut back in the counties where we were operating. He asked Charles if he wanted to buy into the machine company. Charles said no, he wanted to stay away from being directly involved with the slots. “Then the two of them got to talking, almost like they forgot I was there, about some state purchasing contracts Charles was handling with some company there in Charleston. Charles 106
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mentioned the payments from the state needed to get to the company early each month. The governor said he would make sure that was done. Then it was like they realized I was there and shut up. Charles said I should leave since there was nothing more to discuss about the plan for up north. It sounded like that other conversation they were having was a big deal. “I left the meeting thinking this would make the money we got in Franklin County and Lawnsville look like peanuts. I’ve taken over the operation of the northern beer distributor, and it’s making good money as it is. With the governor and Beauregard involved, the money would roll in. “Then I started thinking about it. And it came to me, maybe it wasn’t a good idea to get involved with Beauregard. I remember how he got acquitted in the bribery case and left the then-Governor and Bell hanging.”
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Chapter 19 Trap That Didn’t Spring It took great effort for the U.S. attorney not to jump right out of his chair, cheering and high fiving his staff. Instead, he just shrugged his shoulders, “That’s interesting, but I’m not sure what we can do with this – not anything in the way of hard evidence. Can you give me the date of the meeting you and Charles had with the governor? But I just don’t think the whole thing is that important. Have you and Charles met recently about the operation up north?” “No. But I expect we will meet to work out the details in the next two or three weeks. I can let you know what goes after I meet with Charles,” he said, obviously willing to do all he could to lessen the charges he was facing from the kickback scheme in Lawnsville. “We want you to give us a call when the date is set. We want to meet with you before the meeting takes place,” the U.S. attorney carefully explained. After the beer distributor and his lawyers were gone, the U.S. attorney smiled to his staff, “Just maybe we might be able to develop a case against Beauregard that will stick. “Where did Beauregard get the $50,000 cash for that deal? Don’t think he could have gotten it all from what was left over from the 1960 Presidential Primary.” Owen Williamson was sitting in his office at the new distributorship in Hamilton County in northern West Virginia
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when his secretary announced that Beauregard was on the line. With some hesitation, Williamson picked up the phone. “Owen, how’s it going up there,” Charles said in an almostjovial tone. “Charles, good to hear from you – business is good right now, even before the plan begins next month,” the beer distributor announced with some pride. “I knew business would be good, but I’m surprised at how good.” Williamson said that he’d be back in Franklin County at the end of the week and he would be glad to come to Lawnsville so he and Charles could work out the terms of their partnership and would have a detailed financial report on the northern distributorship’s first two months under their agreement. When he got the call from Owen Williamson about the meeting with Beauregard to discuss the payout from the beer distributorship, the federal investigator immediately requested a meeting with U.S. attorney. A meeting was set up to discuss Williamson wearing a wire and how the conversation was to be steered. The aim was to connect Charles with the gambling and shakedown of bar owners up north. Owen and Beauregard met in Charles’s home office, and the discussion got right to the financials about the northern beer distributorship, with Owen answering questions as Charles devoured the details. “Wow, Owen, we’re doing really well. I’m like you, surprised at the business we are doing. Seems like a monthly payment to me for $1,500 now, and we’ll examine the figures again once we’re up and running,” Charles said. “That’ll be in cash, of course.” “I was thinking more of $1,000 to start off until we’re sure of the business,” Owen countered. “Well, let’s stick with $1,500. I think we’ll be alright,” Charles said in a tone that left no room for Owen to further question the figure. 109
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“Have you talked to the governor about the overall plan,” Owen asked. “Owen, I want to be very clear. This beer distributorship is between you and me, a straight business deal which, as you explained to me, will be a great money-maker for both of us. I look forward to working with you. If it goes well, I’ll give you a chance to buy me out in three or four years,” Charles added. “Sure glad the Governor put us together on this. No doubt this distributorship is going to do well once the sheriffs talks to the club owners and make us the beer distributor of choice,” the beer distributor pressed. Charles didn’t reply, remembering when Red wore a wire that ended with him being indicted for bribery along with the governor. Williamson added, “If it works for you, I’ll bring the check for your share of the company profits to Lawnsville between the first and fifth of each month.” Charles smiled, knowing he had dodged a bullet, “That’ll work just fine. Sometimes, I might be in Charleston, so we might meet there sometimes. Would that be okay?” “That wouldn’t be a problem. Look forward to a profitable partnership. Have you talked with the governor lately seems plans are on schedule to start the operation up there in the next several weeks?” Again, Charles didn’t answer, just said “Look forward to getting the profit check,” and ended the call. “This was a wasted effort. Seems Beauregard suspected Williamson was wearing a wire. There’s nothing on the tape that does us any good,” the U.S. attorney said. “We need to go in another direction.”
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Chapter 20 Good Eyes not Enough Following the Money From the monitoring of the Lawnsville Crier’s stories, the U.S. attorney knew the Jordan County political kingpin panicked at the thought of someone doing an extensive legal search of his financial assets in connection with the River Play land development scheme. “Those two Lawnsville Crier stories might point us in the right direction. They’re about the state road Flower Fund scheme of past years and the hospital purchasing through the Charleston company that also does business with state agencies. We’ve got to start digging,” the U.S. attorney concluded. “Boss, I might should take a trip to Lawnsville to see if that bank employee that helped us with the voter fraud case might help us here. She handles the safe deposit box vault. I’ll give Edwards a call.” “It’s a long shot, but hell, we don’t have much hard evidence. Give it a try,” the U. S. attorney said warily. Sally Jones, who handled safe deposit records at the Lawnsville bank, drove her mother to Baxter’s mother’s house for a visit. Sally and Baxter’s mothers had worked together at the same Jordan County school and remained friends after retiring. The visit would be a cover for Sally to meet with Baxter and the federal investigators while the two old friends chatted. “Yes, I’ll check the bank’s safe deposit box records for when Charles has signed in,” she responded.
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The federal investigator carefully explained that he needed a copy of any signature cards showing dates Charles got into the boxes. He was concerned that those records might disappear once the investigation became known. “He’s been coming to the safe deposit vault several times a month recently. Give me a week or so. I’ll need to get the new copying machine to myself. If I get caught, I’ll lose my job for sure,” she said nervously. As with her prior time assisting the federal prosecutor’s office, Sally Jones agreed to undertake the clandestine task only because she felt Beauregard and Bell had set up her cousin to take the fall when the 1960 primary election voter fraud scheme was discovered by federal investigators. Her cousin only escaped time in federal prison by testifying against Bell, who was convicted for the illegal activities in the precinct where her cousin worked on the 1960 primary Election Day. Sally made copies of the safe deposit box log and notified the federal investigator who came to Lawnsville to pick up the information. He compared the dates on the copies Sally had made to the dates of state paydays and dates the state paid its bills over the last year or so. “Not sure this is all we need. But we appreciate your help. Keep this between us,” he said. “Don’t worry. If anybody finds out, I’d be fired from the bank that very day,” she responded. “Beauregard signed into the box early the morning of the afternoon meeting with the governor and the beer distributor. And signed back in the next morning,” the investigator reported. “The beer distributor said Beauregard had a lot of money left in his briefcase after the $50,000 payment, so it seems he returned the remaining cash to the safe deposit box the next morning.” “It’s very circumstantial. It’s not against the law to have a lot of cash, but it could point us in the right direction,” the federal prosecutor reacted. 112
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Noticing a pattern on the signature card, he said, “It seems Beauregard signs into this box three times a month – once in the first week, once about the 15th, and once the third week. Two dates seem to match the state paydays and the other right after the state sends out checks to pay its bills.” “You don’t think Charles would be getting a check from the state?” the investigator asked the U.S. attorney. “I may be really, really wrong. But it seems that Beauregard might be responsible for a lot of state business going to Business Management. They’d be getting paid by the state around the 10th-15th. If there is a kickback, the company president would pay Beauregard only after the state check was received. “Now comes the hard part. Beauregard likes to stay in the background. ‘Follow the money,’” the U.S. attorney concluded. He was right. Beauregard’s planning was detailed and designed to make him money while he stayed in the background setting others up to take the fall if anything went wrong. In past Democrat administrations and even in the first year or so of two rare Republican administrations, Charles worked with his key contact in the state purchasing division to fix the bid on the statewide furniture contact. Charles’s lucrative scheme abruptly came to a halt when the new Republican administration made changes in the purchasing division, and his old contact was removed from administering the furniture contract. With the next election, Charles was able to again turn on his politically driven stream of illegal cash. The new Democrat Governor followed up on Sonny Monroe’s promise and agreed to reinstate Charles’ friend to again oversee the furniture contract. Charles assured the new governor that he would receive a generous portion of the “1% kickback I receive from Business Management for the state furniture purchases.” The chief executive was happy at the prospect of supplementing the $17,500 annual salary he made as governor. While he was pleased with this arrangement – it was peanuts compared to the 113
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payments he got from those contractors who received tens of millions of dollars in state road contracts. Wilson McDuff, the new governor, doubled down on the scheme, assured Charles his friend would once again oversee the state furniture contract, and committed that furniture purchases by the state would increase significantly over the next few months. Charles was being consistent in his schemes. He was double-crossing the governor. Business Management was actually paying him a 3% kickback. Working with this friend in the state purchasing department, Charles was assured that Business Management’s bid would be the lowest. It was a simple scam. Charles’s friend merely illegally opened all the other bids as they were received. He then let Charles know the amount of the lowest bid, which Charles passed along to Business Management’s president, who then submitted a lower bid for his company. Charles’ co-conspirator was well aware of the amount of state furniture purchases under the contract but did not know the details of Charles’ lucrative arrangement with Business Management. So the low-paid state bureaucrat was happy with the $250 cash he received from Charles each month. Contemplating the money he’d receive for again turning on this illegal spigot of state funds brought a broad smile to Charles’s wrinkled countenance. But his scams didn’t end there. With the blessing of Sonny Monroe’s successor, Beauregard had reimplemented the Flower Fund. After nearly eight years of not having this illegal revenue stream, the crook from Jordan County was elated at its return. With the “fee” he skimmed while running the Flower Fund for about 15 years and helping himself to the balance in the fund when the Republicans took over the Governor’s mansion, Charles still had well over a hundred thousand dollars in cash in his safe deposit boxes after paying for his Lawnsville home, a stunning beachfront house at Myrtle Beach which he rented to vacationers 114
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most weeks in the spring and summer, and a plush oceanfront Florida home in Boca Raton. A few people in Lawnsville were aware of the Myrtle Beach property, but nobody was aware of the Beauregards’ beachfront home in the posh Florida community. When talking of his family’s trips to Florida, he always spoke of renting a place there. Charles was confident his careful planning protected him from any prospect of being uncovered by the U.S. attorney whose office was just six blocks from where Charles collected the Flower Fund “contributions” from the ten division collectors twice a month. It certainly appears that the Flower Fund might be alive and well. What we know is that each month two of Beauregard’s visits to the safe deposit box are the days after each state payday. If he’s doing it the same way Wayne Adkins told us, it’s done by region. The division collectors would take those envelopes they picked up from the county state road garages to Charles at the state road headquarters in Charleston. Beauregard took great care covering his tracks – just like he did to set up Bell to take the fall in the voter fraud and bribery cases. In the Flower Fund scheme, while Charles would receive the money personally, he made sure that only he and the person – the state road collector from each division – delivering the county garage envelopes were in the room. There were no witnesses to Charles taking the sealed cash-filled envelopes. To make sure that the collectors didn’t take a cut like he did, Charles instructed that each of the 55 county envelopes was to be sealed, and the county road supervisor signed across the envelopes’ seal. Before depositing the cash in the Flower Fund checking account, Charles took an appropriate $2,000 “collection fee” each state payday. The following day Charles would put his cash fee in one of his Lawnsville safe deposit boxes. So each year, Charles’s Flower Fund “fee” amounted to $48,000 cash. Only the governor 115
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could order Beauregard to make disbursements from the Flower Fund account. Beauregard was just as careful when receiving the monthly furniture kickbacks. When he received the 3% cash kickback from Business Management, only Charles and the company president were in the room. Presently, state department furniture purchases were running about $7 million to $8 million annually. That made Charles’ kickback from Business Management at least $210,000 a year. “Being a puppeteer is just my calling,” he chuckled to himself as he neared the state capital to fulfill his Flower Fund assignment. He was listed as an “organizational consultant” in the state road department’s employee list – a position that paid a full-time salary despite the fact he was only in his Charleston office two days a month.
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Chapter 21 Finding Leaks in Dirty Money Pipeline Beauregard’s planning indeed was thorough as the U.S. attorney’s federal investigators would find as they unsuccessfully confronted the dead ends and twists and turns that were Charles’s maze of carefully planned deceptions. The U.S. attorney felt that the Crier stories on the purchasing procedures at the Jordan County Hospital and the feature on the state road department Flower Fund pointed to the sources of Beauregard’s illegal financial pipeline. The federal prosecutor’s stomach churned at the thought of a repeat of Beauregard’s earlier acquittal in the bribery trial. “As a first step, we need to figure out a way to have some surveillance to get evidence about the Flower Fund on state paydays,” the federal prosecutor instructed his chief investigator. The U.S. attorney unfolded a state map marked with the state road department’s ten divisions on his desk. “I suggest that the collectors start at the furthest county garage in their divisions from Charleston and make their pickups moving toward the state capital.” Handing the map to his lead investigator, he said, “See if you can figure out which county garages would fit that pattern, and we’ll have someone at each of them next state payday.” It was a wild guess, but he felt it was about the only chance to confirm how the Flower Fund collection operation worked. Following the mapping exercise, the U.S. attorney informed his skeptical top assistant U.S. attorney and his equally questioning 117
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lead investigator of his plan. All of his investigators and most of the assistant U.S. attorneys would be on the road come the next state payday. It worked – surprising himself almost as much as his top two assistants. It turned out that a state car showed up at the ten selected county garages early on state payday. The federal investigators and attorneys witnessed the initial envelope pickup, then followed the ten to the other county road garages in their respective divisions. In what appeared to be a well-thought-out procedure at each garage, the county supervisor came out to the collector’s car and gave the driver an envelope. Each hand-off was photographed by the U.S. attorney’s staff member. After they visited the last county state road garage in their division, each of the ten division collectors drove to the Charleston state road department headquarters where, between noon and 4:30 p.m., they – watched by a federal investigator – went separately into Beauregard’s office. The investigator who had followed Charles from Lawnsville earlier that day followed Beauregard as he left the office at about 4:45 p.m. carrying a wellworn but bulging leather briefcase. Starting his day, Charles left his Lawnsville house at 6 a.m. payday morning bound for a small office whose door had no name, only a room number, in the state road department headquarters across from the state Capitol. After leaving his office, Charles stopped by his favored Charleston bank to deposit in the Flower Fund account before returning to Lawnsville. The federal investigator, who had followed Charles from Lawnsville, chose a chair in an adjacent public sitting area that would allow him to look down the hall toward Charles’s office. During the late morning and into the afternoon, ten men arrived separately about 20 minutes apart and upon arriving sat in a reception area around the corner from Charles’s office. Charles would come out and escort the men individually back to his office after the previous visitor departed. There was no one 118
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in Charles’s office other than him and a division collector – no one to witness Charles receiving the cash-filled envelopes from the county state road garages. The meetings with the division collectors last only about 5-10 minutes. Between the meetings, Charles would open the envelopes, and take his “collection fee,” which he placed in a small compartment in his briefcase, while putting the larger amount in the larger compartment. Once the last of the ten regional collectors left his office, Charles would lock the door, total the remaining cash, and make a deposit slip for the favored Charleston bank. At his banker friend’s discretion, Charles made sure that a state government non-interest-bearing state road department account with a multi-million-dollar balance was maintained at the bank. The federal investigator trailed the shiny Cadillac to the Charleston bank, where Beauregard was admitted through a side door. The investigator photographed Charles and the bank official who greeted Charles. When Charles emerged, the investigator trailed Charles all the way to Lawnsville. The following morning the federal investigator followed Charles from his house to the local bank, where Charles entered carrying the same scruffy briefcase he had when he left the state road department’s office the previous day. Sally Jones offered her normal cheery greeting as Beauregard signed the card to gain access to one of his safe deposit boxes. In the afternoon of the day after the state payday, the U.S. attorney listened as each of his ten investigators gave individual reports on their state payday experience – each a duplicate of the others. Next came the report of the investigator who followed Beauregard the entire time of the state payday. While the extent of the information was impressive, the attorney knew there was no proof that anything illegal took place – the photographs of the country road supervisors passing the envelopes didn’t show any cash. 119
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“We have to break people participating – state line employees, county road supervisors, and collectors,” the U.S. attorney said. “A number of state road employees would have to roll over to provide clear evidence of a statewide conspiracy. At an appropriate time, we will visit the banking official who admitted Charles after-hours on the state payday. That will give us some important information but won’t provide evidence as to where the money came from. “In fact, the only ones who actually see the cash in the envelopes are the county state road garage supervisors and Beauregard. How in the hell can we connect the Flower Fund scam to Beauregard?” the U.S. attorney blurted out to a startled investigator. “On the one hand, it’s simple – We need to get marked bills into the collections. On the other hand, we have to find several county state road garage employees to make that move,” the investigator said in a barely audible, cautious tone. The U.S. attorney said, “Easier said than done.” While he felt this case was proving to be almost impossible, another was falling into place. Facts he had made the U.S. attorney believe that Beauregard was a major conspirator in another sinister activity – the governor’s plan for illegal gambling operations and kickbacks in the northern part of the state. Under questioning, the indicted Franklin County beer distributor revealed that Beauregard paid him $50,000 cash for 50% ownership of a beer distributorship connected to the planned shakedown conspiracy in the northern part of the state. To turn this information into hard evidence that would stand up in a trial, the federal prosecutor had to show the $50,000 was from illegal sources.
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Chapter 22 Corruption Requires Election Wins In addition to the state road Flower Fund and the suspected kickbacks from fixing the state furniture procurement contract, the U.S. attorney was certain that the leader of the Jordan County old-line political faction was involved in other illegal activities. With the coming off-year primary election, the U.S. attorney suspected Charles would be an active participant in Election Day skullduggery as the old line fought to regain political control in Jordan County. “Maybe I should just open a branch office in Jordan County,” he said, chuckling as he pondered all the active investigations that touched on the rural county nestled in the majestic mountains and along the three beautiful rivers in southern West Virginia. The U.S. attorney understood that the old line’s hope to regain its political power depended on being victorious in three key races. Since there were no statewide offices on the ballot, Charles would be limited to where he could collect “organizational” fees for the old line. First, the money would come from local candidates for Jordan County’s races – two for the school board and one for the county commission. Second, Charles would visit Jordan County businesses that hoped to get business from county contracts if the old-line candidates were successful. But the old-line organization was not running as smoothly as when Bell and Beauregard were in charge.
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Joe Brown, who Red personally selected to succeed him as the Jordan County Democrat Executive Chairman, would assume the on-the-ground election precinct organization of the old-line faction and found himself in a sensitive situation. He was talking to Beauregard nearly every day about strategy for the upcoming primary election. Brown was also in frequent contact with Bell concerning the nuts and bolts of the old-line Election Day precinct organization, including the vote-buying scheme at the seven precincts where the practice was an art form and Jordan County Election Day tradition. Despite his own break with Charles, in Red’s mind, his meetings with Brown were the natural and right thing to do. Joe Brown’s father had worked with Red’s father on behalf of oldline candidates for about 25 years up until 10 years ago when the senior Bell died. At least once a week, he and Joe Brown had been spending many long evening hours in the back office at the cleaners going over the details of the on-the-ground old-line Election Day precinct operations. Discussing the details was important despite the fact that specific candidates had not been selected. Candidate filing deadlines were still a few weeks away, with several names still being mentioned on the informal Jordan County political gossip network for the three important offices. The two board of education seats up are now held by Board President Sam Keaton and Hattie Mae Cooper. Keaton was a solid reformer, so it was certain there would be an old-line candidate opposing him. But Hattie Mae was unpredictable. Since the reformers now had a board majority, she tended to vote with them. In the past, when the old line was in control, she leaned toward that faction. A retired cook at an out-in-the-county elementary school, she was extremely well liked among school retirees across Jordan County. Joe Brown didn’t believe she was dependable and was considering looking for someone to oppose her. 122
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An ideal candidate would be a woman from out in the county who, like Hattie Mae, was a retired school employee and active in the retired county school employees’ group. Tom Arrington, a former Lawnsville city council member, had told some folks he might run against Keaton. While he was once close to former mayor and now convicted felon Ben Howland, Arrington had run against Howland in the most recent city election. So, in a board race, he might come across as an independent-minded candidate. No one, including Joe Brown, was aware of the behind-thescenes deal Arrington had with Howland in that city election. Arrington agreed to run as the third candidate for mayor in the race to take votes away from the other candidate allowing Howland to win. Arrington agreed to the deal when Howland said a member of his council slate was in poor health and would resign from the council shortly after being sworn in. Howland promised to appoint Arrington to that vacancy. But to the people of Lawnsville and Jordon County, it appeared that in that campaign, Tom Arrington stood up to Ben Howland and fought for honest, principled government. Joe Brown set up a breakfast meeting with Arrington at the Bluestem State Park Lodge dining room to discuss a possible board race. The former Lawnsville city councilman agreed that the present makeup of the Jordan County Board of Education needed to be changed. In addition, he made it clear that he was running to return the faction to its rightful place of power in county politics. He also supported the old-line tradition of using the county education system to reward political friends and, at times, punish those who opposed it. Arrington added that he had $5,000 ready to throw into the campaign and felt he had strong supporters in every precinct in Lawnsville as well as friends and relatives that he could count on in every area of the county. A handshake across the table sealed the deal. 123
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The two turned to a discussion of Hattie Mae Cooper. While they agreed that she was not a dependable vote, Arrington thought it could be difficult to oppose her given her popularity among school system retirees. It was a dilemma for Brown. Should he lead the old-line faction into a battle to win back control of the school board in one election with two 100% old-line candidates, or should he take a more prudent, less risky route and support Hattie Mae? There was no doubt that if the old-line opposed Hattie Mae Cooper, the retired school employees from across Jordan County would become enthusiastically involved to protect one of their own and possibly in the process defeat Tom Arrington who otherwise was a very strong candidate. Such a move could also defeat the oldline county commission candidate. On the other hand, if the old line endorsed Hattie Mae and put its entire effort behind Arrington, the old line could have a 2-2 tie on the board with Hattie Mae the deciding vote. Brown felt he could get Hattie Mae’s vote about 50% of the time. “Some of the time” is better, – much better – than “none of the time,” he thought. That would be the number one subject at the next meeting of the old-line election war council. The race for the county commission seat might be a bit less complicated. The seat to be filled on the county commission was now held by reformer Lacy Little. That meant Brown had to decide if the old line would primary the Democrat incumbent as happened two years ago when the reform faction knocked off an old-line incumbent, Bill Joe Hamrick, in the fierce 1960 primary campaign. For that 1960 General Election, the oldline Democrat faction forged a clandestine alliance with Jordan County Republicans behind Marvin Wood, who was soundly defeated. Joe had heard rumors of several, including Bill Joe Hamrick, who were considering the race, but none had yet come to talk with him directly. That position also would be discussed at the 124
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next meeting of the old-line war council. Likewise, all was not smooth for the reformers as they faced the upcoming election. Reform faction leader Edwards also, was a bit troubled. He was certain that the old line would go all out as it tried to regain control of Jordan County government. The county commission seat would determine which faction controlled that powerful body for the next two years. Presently, the reformers held a 2-1 majority with one of its members up for re-election. On the board of education, the Baxter-led faction had a solid 3-1 majority, with the fifth member – the unpredictable Hattie Mae Cooper – voting with the reformers on nearly every issue. A loss of reformer Sam Keaton’s seat would result in the two factions being tied at 2-2, with Hattie Mae the deciding vote. Keaton and Hattie Mae would be running for re-election in the upcoming primary.
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Chapter 23 She Can’t do It; She’s Just a Little Old Lady Like old-line leader Joe Brown, Baxter was wrestling with whether or not to take on Hattie Mae or endorse her. To get a better grasp of the subject, Baxter decided it was time to have tea with Eva Newland as soon as possible. He was aware that Eva and Hattie Mae had some level of contact but did know what influence, if any, Eva had on Hattie Mae’s decisions on the school board. Baxter had about decided that Eva Newland could well be the craftiest politician in Jordan County. In both the 1960 primary and general elections, the long-retired elementary school principal had put together the Golden Caravan in all 30 of the county’s precincts. The Caravan hauled hundreds of retired school employees and their families to the polls. And she did it without a word of the plan leaking out. In the “tea times” before both those elections, Baxter was certain Eva was almost on death’s doorstep and would be lucky to be able to cast a vote on Election Day. That memory brought a smile as he opened the gate in the pristine white picket fence that surrounded Eva’s home. “Baxter, you know that Hattie Mae is really popular among retired school employees all across the county. In fact, the last time she ran, she finished second in all 30 precincts. Retirees just think she makes sure the board hears our concerns. Are you all going to support her?” Eva casually asked as she freshened the hot water in his delicate china teacup.
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It was the first time Baxter could remember Eva putting him on the spot with such a direct question. Shifting in the antique chair, he stammered, “Errrr, we’re just starting to look at it.” Recovering his composure, he quickly added, “I think she’s done a great job on the board. Some of our folks really like Hattie Mae. Could get behind her,” he scrambled realizing his earlier noncommittal answer could spell disaster for the reformers in the race for the other board seat and the commission position. Baxter was unaware that Eva would play the same game with the new old-line leader Joe Brown when he stopped by for “teatime.” The purpose of these specific “tea times” was simple to Eva – make sure Hattie Mae Cooper was supported by both Jordan County political factions in her re-election bid. That dual support would be an accomplishment not duplicated in Jordan County in anyone’s memory. Hattie Mae would be her guest the day after tomorrow. Although it was totally unnecessary, she would have Bell to tea to talk about the election, given she was sure he felt left out since he’d stepped down as an old-line co-leader. Red would be reporting to a federal prison in Kentucky a week prior to Election Day. She was correct – the invitation was very much appreciated by her former pupil of some 25-plus years ago. And the conversation hardly touched on politics but was dominated by Red’s talking about how much he was going to miss his family. He did work in some kind words about Joe Brown, his successor as the old-line’s on-the-ground operative. “Teatime” with Hattie Mae Cooper was much more comfortable. Of course, she and Eva had talked many times at retired school employees’ functions, and the board member regularly called or dropped by to discuss school board issues. “How’s your re-election looking?” Eva said as she passed the lemon to her afternoon guest. “Oh, not any different from the other two times I’ve run. Just doing what I’ve always done, go around and listen to what’s on 127
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folks’ minds,” Hattie Mae said in her delicate, slight Southern drawl. “I stay away from all that fighting between the old line and Baxter’s bunch. To me, the kids are what’s important. But it’s tough to keep totally away from it. But I try real hard,” she added. “From what I hear, Joe Brown and them are going hard after Sam Keaton this time,” Eva said to watch her guest’s reaction – there was none. “I guessed as much. Oh, I get along with Sam just fine. But like the other times, I’m just going to run my own campaign. Maybe an ad or two in the Crier, but don’t want to be tied in with either side.” “That seems like a smart thing to do. I see this one as going to be a mess. Before it’s over, they’ll be fighting like cats and dogs,” Eva said, chuckling as she passed the warm oatmeal cookies. “When’s Elwood’s contract up?” she added deceptively as if she was totally in the dark. “We’ll approve a new one at the next board meeting. I’ll tell you something – seems to me he’s doing the best job he’s done since he’s been superintendent. Of course, except for that dustup when he had us have that meeting up to Bluestem. We made a mistake on that one. Crier really got after us. But I think overall Elwood’s doing a really good job,” Hattie Mae said. Eva didn’t react, but Hattie Mae’s comments were music to the retired principal’s ears. As Hattie Mae left through the white picket fence, the only tea time left for this election cycle was the one with Joe Brown tomorrow. If that went well, Eva’d have Hattie Mae’s reelection assured. She chuckled to herself. Good thing I bought extra tea on that last trip to the grocery store. “Joe, it’s been a while,” Eva said as she greeted her fourth political tea-time guest in four days. “Too long if you ask me,” Joe Brown responded. “Hope all’s well for you, Eva.” 128
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After chatting about their children and their delightful grandchildren, Eva moved on to the real purpose of her invitation. “How’s the election shaping up? Don’t know how it could be as wild as the last primary,” Eva said, then chuckled. For Joe Brown, the purpose of his accepting the invitation was to find out somehow how Jordan County’s retired school employees felt about Hattie Mae Cooper’s re-election bid. He was surprised he didn’t have to maneuver the conversation to ferret out that information. Eva was locked and loaded and ready for the question. “Joe, it’s really something this time. You know that the retirees have always supported Hattie Mae, but this time is totally different. They been calling me from all over the county, asking what they can do to help her. Of course, I’m not involved at all – and haven’t been for years,” Eva sand-bagged. “I just tell them to call her. They are going to be out in force for her,” Eva said in her most gracious, genteel tone. Not reacting outwardly, Joe Brown knew the old line would be supporting Hattie Mae and put all its effort behind Tom Arrington’s campaign for the other board seat. “I’m not surprised. We’ve all been talking about what a good job she does on the board,” Brown lied. Since Arrington and Hattie Mae were running from different districts, both could be elected. In the next meeting with the old-line election war council, Joe Brown found agreement that it was better not to oppose Hattie Mae. Then the old line could all go hard for Tom Arrington on the board and its county commission candidate in a strong effort to get the old line back to its dominant position in Jordan County politics. That would bring, if successful, a sure 2-2 tie on the board with a chance to get Hattie Mae’s vote every now and then. Joe knew the next subject would be interesting.
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Chapter 24 Must Glance Back to Move Forward The discussion on the county commission seat was a bit more spirited. It wasn’t two sides of an argument yelling at each other. But rather, with growing volume, those on the same side were trying to talk louder than the others expressing their personal desire for revenge. Everyone around the table agreed it would be a tough fight but felt that the old line had to go all out in the effort to unseat the reformer Democrat incumbent. Some expressed the feeling that Red and Charles’ decision to throw in with Jordan County Republicans in the last general election to beat the Democrat reformer candidate had been a mistake. They also said that a major reason old-line Democrat Bill Joe Hamrick was beaten in the 1960 primary was the stupid actions of the old-line incumbent board of education President Edward Whitmore and the commission’s vote not to fund lifeguards for the 4-H Camp pool. They agreed. Whitmore’s actions took the whole slate down to defeat. They cited two primary reasons – Whitmore’s threatening to fire a respected elementary school principal and his rumored affair with a young school teacher who he then beat up when she tried to end the affair. All felt now it was essential for the oldline to make a stand and fight to take back the commission seat the reformers “stole” in the primary two years ago. All agreed with Jim Bob that Bill Joe should be approached to see if he was interested in another run for the commission.
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Joe Brown agreed the idea had merit and said he’d meet with Bill Joe the following week. On the other side, Edwards was hoping that the convictions of old-line supporters and officeholders would remind the people of Jordan County how corrupt the old-line faction was and allow the reformers to retain their control of Jordan County government. He knew that Tom Arrington and Bill Joe Hamrick would be strong candidates as the old line fought to get back the power that came with controlling county government. The thought of Hattie Mae Cooper holding the balance of power on the Board if reformer Sam Keaton was beaten in the coming election gave him little comfort. He could only hope that Eva Newland’s influence would keep Hattie Mae from going over to the old-line side on too many key votes. In analyzing the Jordan County political scene, Baxter had thought long and hard about the reformers having control of the Jordan County Commission and the Board of Education as well as the Lawnsville City Council. He knew if anything went wrong at any of the governmental bodies, the reform faction would be blamed. Right now, all three of the bodies were functioning well and effectively – implementing reasonably good policies and ensuring that citizens’ tax dollars were being spent wisely. But he was keenly aware that could change quickly with a wrong decision or policy. Lawnsville Crier stories reported meetings – in the same manner as when the old line was in control – occasionally disagreeing with decisions in editorials. The big difference - now is that the Crier publisher generally questioned the details of policy decisions rather than – as in former years – questioning the overall basic policy of a decision. Surprisingly, many old-line supporters thought the Crier coverage was even-handed. Hill did not hesitate to take on the reformers if they took actions he felt were not in the public interest. Two major examples were Page One editorials blasting 131
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a former board member for trying to ease out a long-tenured elementary school principal to make way for his daughter-in-law and the secret meeting the board held at Bluestem State Park. There was no doubt that the old line would use the two editorials in the campaign to unseat the reformer serving as school board president. Edwards’ primary concern going into this election was whether the reformers’ supporters would show up in the same numbers they had to bring the upset wins in 1960. Baxter thought to himself, they must understand it was their hard work that won then, and that same level of effort is essential now to keep those gains. On the other hand, the old-line organization is hungry to regain its power. Baxter knew that Joe Brown was moving across Jordan County, getting his troops ready. The reform leader also suspected that Bell had left a considerable nest egg for Brown to fund an aggressive old-line precinct-level campaign. One wild card was whether Bell would spend much time helping Joe Brown get ready for his first election as the new leader of the old-line faction’s Election Day precinct operations. Right before the primary, Red would be reporting to a federal prison in Kentucky. The former old-line leader was spending a lot of time with his family and getting his wife up to speed so she could run the cleaners in his absence. Brown’s lack of experience meant that Beauregard would have to become involved in the nuts and bolts of precinct organization. Baxter thought that could be a real handicap for the old line since, for the last several election cycles, Charles’s attention had been more on state politics. Charles was now attending the old-line campaign war council meetings. But he planned to maneuver things so Joe Brown would handle the election day “specialists” who did the actual vote buying in the seven precincts where such activities are a time-honored Jordan County Election Day tradition. 132
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Because of the federal charges from two years ago, it was generally expected there would be no repeat of the voter fraud plan to cast illegal ballots in the five precincts after the polls closed. Charles felt added pressure for the old line to have wins in this election since he knew politicians around the state were watching to see if he still “had it” and would be able to return the old line to power in Jordan and continue to have influence in surrounding counties. The Crier publisher was spending considerable time making sure that readers were informed about the issues and how important this election was to both county political factions. Hill made it a point to visit a couple of times a week with one or two of the Crier route drivers to get a feel for how the campaigns were going out in the county. The drivers were well-known in their communities. There were more old-line supporters but also several strong reform faction supporters. Because of the mix, the Crier publisher felt he got a balanced overview from these conversations. One tidbit he got from each side that he hadn’t heard before really got Hill’s attention. Old-liner Bill Joe Hamrick was itching to avenge that earlier loss in the 1960 primary to a fellow Democrat backed by Edwards’ reform faction. “He thinks the only reason he lost that last time was because of that shit that Edward Whitmore was into,” one driver who was a staunch old-line supporter told the Crier publisher in a “just between you and me” conversation in Rick’s private office. “I thought this election was going to be quiet until I heard that damned Bill Joe is going to get back into it. If that happens, this is going to be a real dog fight,” a reform supporter said in another “don’t quote me” chat with Hill. “Who seems to be ahead out your way?” Hill asked. “I’m not sure. Some say Bill Joe is doing a good job campaigning and believe that it was stolen from him last time. 133
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I just can’t get a feel for how it’s going. But one thing I’ll tell you sure – it’s going to be hotter’n a 4th of July firecracker by Election Day,” came the spirited response. As Election Day got closer, Beauregard was getting more confident about the coming election’s outcome. Now, he was fine with the candidates – Tom Arrington for one of the board seats, reluctantly accepting Hattie Mae for the other. And he thought Bill Joe Hamrick had a solid chance to regain the county commission seat he lost in that fouled-up 1960 primary. That’s when Edward Whitmore’s misadventures took the whole oldline slate down in a countywide butt-kickin’. Remaining firmly in place was his faith in the Golden Rule of politics – money, money, and more money – to bring Election Day wins. But it was the nuts-and-bolts organization on the ground in the precincts that was giving him the most trouble. Years ago, when Charles moved to an increased statewide presence, Bell took over all the minutia of precinct organization – recruiting and training volunteers to turn out the vote, getting the cars needed Election Day to haul voters to the polls, making sure the all-important candidate yard signs were out across the county and, of course, handling the vote-buying “election specialists.” Red was experienced, having helped his father in election efforts for decades before taking over those aspects of campaigns. Charles maneuvered Bell into handling all the precinct vote buying and other unsavory and outright illegal aspects of electioneering that had a history in Jordan County politics. Now, Charles was having private meetings with Joe Brown about those, eliminating any witnesses to his being part of the conspiracy. They never discussed them at the election strategy committee meetings. While Red would have nothing to do with Charles, he did discuss the details of precinct organization with Joe Brown. But these became fewer as the date approached when Red was to 134
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report to federal prison. One positive contribution Red made to this old-line primary election effort was to give Joe Brown a second $5,000 from his remaining “election fees” accumulated over the years. Charles and Brown knew that Red’s decades of on-the-ground experience and expertise would be sorely missed. But Charles was confident his Golden Rule of Politics and the absence of Edward Whitmore on the ballot could very well make up for the loss of Bell’s experience managing the precincts’ organization.
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Chapter 25 What You See Not Always What You Get The confidence prevailed even now that Charles again was in charge of the statewide Flower Fund collections. Each state payday, he was in Charleston to handle that scam, including making a bank deposit into an innocent-looking account maintained at a Charleston bank whose president was a close friend. Only Charles could sign checks drawn on the account. He could not make a withdrawal without getting instructions in a personal face-to-face meeting with the governor. For his banker friend’s discretion about the Flower Fund account, Charles made sure that a non-interest-bearing state road department account with a multi-million-dollar balance was maintained at the bank. Beauregard would not have been so comfortable if he knew about the ongoing federal investigation. For months, the U.S. attorney had one of his assistants trying to figure out a way to get inside the state road and find several county road garage employees and supervisors who would agree to testify about the operation of the Flower Fund. Great caution was required, because if word got out about the inquiries, the whole investigation could be lost. About the same time as the U.S. attorney was reviewing the Beauregard information, his top assistant received a call from his close personal friend, the superintendent of the State Police, who called from one of the payphones at the end of a seldom used capitol corridor. Taking great care to make the conversation 136
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seem innocent in case he was overheard, the superintendent asked, “Can we get together Saturday morning to talk about those tomatoes you’re going to put in your garden?” With a horselaugh cackle, the assistant federal prosecutor responded, “That would be great. I always enjoy talking to you about planting – about 10:30 will work. I’ll have the garage door open.” The superintendent, rather than drive his state car, drove his wife’s car to avoid being noticed by neighbors. Upon his arrival, he drove into the garage as his friend quickly brought down the door. “I haven’t planted tomatoes in ten years,” he said, smiling. “Can’t wait to hear what this is all about.” “First of all, I’m planning on retiring shortly. I’ve got a feeling that the governor and department secretary have some bad stuff planned that I don’t want to be within a country mile of. And there was a recent change you might find interesting.” “Sorry to hear about your retirement, but I certainly understand it,” the federal prosecutor said. “Well, I’ve been assigned administrative duties to get me away from the day-to-day management of the force. One of my new duties is budget management. Last week, a directive came out of the governor’s office expressing concern about the rundown conditions in some departments’ offices around the state. It urged quick action, particularly in the area of new furniture.” “Two days later, the public safety secretary sent a follow-up memo to all regional barracks instructing that all state police detachments purchase new furniture as soon as possible. Then yesterday, I got a copy of a state road department notice sent out to county garages just like the one to state police detachments,” the superintendent explained. “Included in the notices was the fact that the state has recently signed an emergency no-bid purchase agreement for furniture with a Charleston company that I had never heard of before. I 137
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might just be overly suspicious, but the notices just didn’t feel right,” the superintendent concluded as he handed over a copy of the directive and notices to the federal investigator. “This is really unusual since all the barracks bought new furniture just last year,” the superintendent related. “Not sure if there is any ‘there, there’ but we’ll take a look at it,” the federal prosecutor said, seemingly uninterested in the information. He knew it could be an important piece of the jigsaw puzzle that had become the Beauregard investigation. The investigator was waiting when the U.S. attorney arrived for work the following Monday morning. “Not sure when and where the state police and state road buy furniture is important to us. Why does this interest you?” the U.S. attorney asked after scanning the information provided by the state police superintendent. “I just remember that the Lawnsville Crier story noted the hospital down there making a lot of purchases from Charleston companies, and I went back, checked the names, and the one in the directive is one mentioned in the Crier story,” he offered. “Holy shit, good catch.” the U.S. attorney said, slamming his hand down on his desk. And two hours away, two seemingly unrelated bits of information which could prove important in bringing Beauregard to justice fell into Hill’s lap. Despite he and his three brothers splitting the more than $300,000 first settlement payment for the river land swindle, John McDowell kept up with his custom carpentry business, so Hill was not surprised when he came in the Crier office and asked to talk with the publisher “privately.” “Don’t worry, this isn’t about getting more carpentry work from you, Rick,” John said with a chuckle when the publisher’s office door closed. “What are you up to now?” Rick responded. 138
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“You still looking about that Flower Fund thing up at the county state road garage?” “Haven’t done anything lately but still interested to find out if it’s still going on.” “You bet it is. My nephew just got on at the county garage. My brother’s close to the county road supervisor. Same setup as years ago. They told him when he was hired that every payday, the county garage supervisor would come around and get 5% cash of his pay for the Flower Fund. My nephew says the supervisor doesn’t like the setup but has to go along to keep his job. Every payday, a guy comes by the garage, and the supervisor gives him an envelope with the cash. Just wanted you to know,” John concluded as he got up to leave. “Can’t leave without saying it; I’m still doing carpentry work if you need any,” he said over his shoulder, laughing. I’ll bet anything that Charles is running this Flower Fund for the whole state. But how in the hell can I prove it? the publisher thought as John McDowell closed the Crier front door. Right after he returned from a quick lunch at home with Anne, the unrelated piece of information walked into his office. Community New Editor Billie Amherst came into Rick’s cubbyhole with that smirk that he knew meant she had a gem. “What have you done now?” he said, chuckling. “I just bumped into my friend who works at the state police, and she told me that they have just gotten a notice from Charleston to buy all new furniture for their office. It’s supposed to be delivered in the next month or so. Said it was real strange since they bought all new stuff just last year,” she said, grinning from ear to ear. “That’s interesting. Not sure there’s a story there, but I’ll check,” Rick responded, not indicating his deep interest in Billie’s report. But she wasn’t finished.
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Unable to hold the best part any longer, Billie blurted out, “They are to order it from one of the same companies that sell furniture to the hospital.” “Oh, shit. Don’t mention this to anyone,” Rick said, flabbergasted at the implications of what Billie had just said. What can I do with this? the Crier publisher thought as he pondered the implications. Rick dialed the senior office at the local state police detachment, “Thanks for getting back to me. I look forward to stopping by tomorrow. The story will help folks understand what all the state police do,” Rick said as he hung up the call to the senior officer at the local state police detachment. After the interview, Rick took several pictures of the two officers manning the local state police detachment making sure to include as much as possible what looked like new furniture in the offices. “You all really have nice offices, the furniture really brightens up the place,” he remarked. “Yes, we got all new stuff last year,” the younger trooper responded, not realizing that he’d just confirmed a key element in the Crier publisher’s suspicions. After the story ran and Billie had confirmed, just two weeks later, the even-newer furniture had just been delivered, Hill dropped by the local state police office to drop off copies of the photographs featured in the Crier story. “Wow!!! Looks like you all have gotten new furniture again. Really looks even nicer than what was in the pictures,” the Crier publisher observed. “It is nice; the main office wanted us to have some new furniture. From what I hear, the headquarters, regional offices, and the local detachments in the state all are getting new furniture this month,” the young trooper replied. Rick decided his “straight to the horse’s mouth” approach was needed and a call to the state purchasing office was in order. He confirmed the Charleston company had the low bid for the 140
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recent new state furniture contract. With a Crier story in mind, he also got the name of the company that held the previous contract. “I don’t know how we lost the bid. Our price was actually lower than the one last year because we found a couple of new furniture manufacturers who were hungry for business,” the frustrated president of that company told the Crier publisher. “It’s a big question for me. A different person handled the bid process this time. This one was an old-timer at the purchasing department. He told me he has been there nearly 30 years and had handled the furniture contract until about seven years ago. I just don’t know how I lost that damned bid,” he concluded. The Crier publisher noted the time frame – the purchasing department staffer got taken off handling the furniture procurements when the Republicans took over the governor’s office and returned to it when the Democrats regained the governorship. There’s a connection here, he thought as the conversation continued. “Do you know anything about the company that won the bid,” Rick asked. “Heard a little about it. They had the state furniture contract about eight years ago. After they won this latest bid, I did some checking. Seems like they do business with some counties. They don’t supply retail stores. Just can’t figure out how they underbid us,” he concluded. Just on a hunch, Hill called John McDowell. “This is very on the Q-T, John. Could you check with your nephew and see if the county state road garage office has gotten new furniture in the last few weeks? Just have him look and not mention it to anybody.” This has Beauregard written all over it. Between this and the Flower Fund – he might just get what’s coming to him, the Crier publisher thought as he hung up the return call from John 141
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McDowell, confirming new furniture had just arrived at the county state road garage. The next day, the Crier publisher called the state road division office in Princeton to see if he could schedule an interview on road projects planned for Jordan County. The division director jumped at the chance to make the governor look good in that part of the state. Hill made sure the pictures he took in the director’s office showed several pieces of the new furniture. Coupled with the report from John McDowell’s nephew and from his own observations, it was evident to Hill that both the state police and state road departments purchased new furniture for their offices across the state for the second time in two years. The stories on the two local offices of state agencies (state police and state road garage) ran in the Crier about two weeks apart. They concentrated on the services each provided to the people of Jordan County. With the state police, there was cooperation with both the city police and the sheriff ’s department. For the state road garage, the emphasis was on the road projects around the county, especially the extensive snow plowing done in the winter.
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Chapter 26 Little Becomes Big A sentence down in each story noted the fact that each had gotten new furniture twice in two years. The story also noted that – Business Management – the same company that sold furniture to the Lawnsville hospital had recently won the state furniture contract. Jordan County Hospital Administrator Will LeMasters reread those parts of the stories several times, wondering why it was included. What’s Hill up to? What has Beauregard gotten me into? he mused to himself. LeMasters wasn’t the only one to examine the section of the Crier’s stories mentioning the new furniture. One of the federal investigators – a Crier subscriber – picked up on that same sentence immediately. Prior to joining the federal prosecutor’s office, he had worked briefly at the state attorney general’s office and recalled the battles that used to go on just to get an old, scarred desk replaced. And he recalled his recent conversation with his friend, the state police superintendent, concerning a directive that had been sent out urging new furniture purchases. A couple of weeks after the stories ran, Hill ran a short follow-up noting that since the stories, both local state offices again had gotten new furniture. The Crier publisher’s call to the governor’s office got a statement that he could barely write down without laughing out loud, “The new furniture is all part of the new governor’s effort to make offices more friendly to the public.” 143
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The U.S. attorney took one look at the stories and called in his chief investigator, “See if you can check out the history of how the state advertised and awarded this bid and who had the contract before this company got it,” he instructed. For some reason, Hill thought his phone’s ring sounded a bit different right before he picked it up. He was right. “Oh, no. What did I do now?” he said, chuckling upon hearing the U.S. attorney’s gruff tone. “Nothing I know about – yet, but it’s still early in the day,” the U.S. attorney said, returning the banter. “Just read your stories on the county state road garage and the state police detachment. Why’d you include the part about the furniture in both stories and then again in the follow-up?” “Well, I’ve been watching the governor and legislature talk about how tight money was in the state budget, and these furniture purchases just didn’t fit with all that BS. Thought I might get something stirred up and get a call from our members of the legislature. But that didn’t happen,” Hill responded. “So I called our legislators and asked about it. They just said that the budget does not list an overall furniture budget for the state, but it’s included under “office maintenance and upkeep” for each agency. So it’s nearly impossible to sort it all out. I’m thinking about writing an editorial on the whole thing.” “What do you think?” the U.S. attorney asked. “I think we might want to sit down and talk a bit. Then – as Paul Harvey would say – you’d have ‘the rest of the story.’ Day after tomorrow, in the morning, okay? About 10?” “This ought to be good. See you then.” “Damn. I can’t believe he dropped his prices and still lost the bid. Did he say he thought the bid was rigged?” the U.S. attorney asked. “Only thing he said was that this time the bid process was handled by a guy who had formerly managed the furniture procurement contracts for years. Several years ago, when a 144
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Republican governor was elected, the guy was removed from overseeing furniture purchases. Seems he was moved back when the new administration took over,” Hill responded. He could almost hear the wheels turning in the U.S. attorney’s balding head. “On the way out of town, I’m going to stop by the Capitol and get copies of the last two furniture contract bids so I can quote from them in my editorial.” The U.S. attorney shook his head, “This stuff never stops in Jordan County.” “I almost forgot. You might not even be interested in this,” Rick said sarcastically. “The Flower Fund collections are still being made at county state road garages every morning of a state payday.” “We here in West Virginia love to hold on to our timehonored political traditions,” the U.S. attorney said, returning the sarcastic tone, careful not to reveal the status of the office’s investigations. “I appreciate your bringing these things to me. Don’t know if they fit anywhere.” The Crier publisher perked up, “What do you mean ‘fit’ – are you all working on a puzzle?” Realizing he’d given an unintended clue about the work of his office, the U.S. attorney hurriedly added, “Oh no, nothing like that. Life’s a puzzle sometimes,” to the now fully focused Crier publisher. After a brief discussion about the general state of Jordan County politics, Hill, after his stop at the Capitol, began his twoand-a-half-hour drive back to Lawnsville. I’d bet the U.S. attorney is investigating the Flower Fund and state furniture contact, and Beauregard might well ‘fit’ in the middle of all of it, he thought, recalling the U.S. attorney’s slip of the tongue.
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Chapter 27 Plans for Old-line Comeback Moving Forward The very confident veteran old-line political kingpin had more on his mind than siphoning off state money. Beauregard was becoming more optimistic about the oldline’s chances in the coming primary election as he listened to positive comments from members at the last meeting of the oldline election war council. Picking Tom Arrington for the board seat seemed to be a popular move out in the county – unusual for a candidate from Lawnsville. And not opposing Hattie Mae Cooper for the other board seat was turning out to be a prudent move. Defeating Board President Sam Keaton, the popular reformer, would be a difficult task, but Charles’s optimism was growing after the meeting. With Bill Joe Hamrick’s announcement, the county commission race was shaping up as a “knock-down-drag-out” campaign. Members of the old-line campaign committee were split on what the old-line prospects were. “A lot of folks out our way haven’t forgotten that commission vote Bill Joe made two years ago not to fund lifeguards at the 4-H camp pool,” Jim Bob from up on the mountain said, indicating a real problem with that decision. “Not sure Bill Joe can live that one down.” “I get a different view. I’m hearing at my church and what the wife is hearing at hers – folks are a bit uneasy having Baxter’s bunch in charge of both the Board and the county commission,” said Jimmy Ed, who was the most tenured member of the old-line 146
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faction campaign planning committee. He and his wife attended different churches, which was very unusual for a Jordan County couple. Both knew how to listen and together were plugged into the thinking of two of the largest congregations in Jordon County. All eyes turned to Charles Woolen when he began to speak. He was known for an ability to offer a clear analysis based on very focused observations. “I believe that last point from Jimmy Ed is important for us to use. With the fight we had two years ago with Baxter’s group, I believe folks would be more comfortable with split control rather than one faction holding all the power. We can play that all over the county. I’m assuming that the schools will have Candidate Nights for those running for the board. Tom Arrington will be able to do well at those given his experience on the Lawnsville council and running against Ben Howland,” he concluded to nodding heads around the table. Never before in its nearly 70-year history as a pillar of Jordan County politics had the old-line faction faced such an arduous task – trying to regain power on both the board of education and county commission. Charles saw all of these as fading in the minds of Jordan Countians, and he felt good about both the old-line candidates and the on-the-ground precinct organization which was falling into place earlier than in most other elections. And Joe Brown, Bell’s hand-picked successor, had been doing something Red hadn’t done in years – making personal visits to all the old-line precinct captains in their homes. Brown didn’t go to tell them what they were doing wrong but to ask their advice on changes needed for success in the coming primary. He took notes, asked questions, and let them know how important they were to the overall election effort in Jordan County. Beauregard’s relationship with Joe Brown was nowhere near as close as the one he had with Bell. With Red, it had been a 147
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combination of friendship, business partnerships, and profitable politics. Joe Brown considered Bell a friend and had had little contact with Charles before succeeding Red as an old-line leader. Caution was the keyword for Brown when he dealt with Charles. He remembered well the fact that Red and Charles seemed to be very close. But when the two, along with the governor, were charged with bribery, the governor and Red were convicted, and Charles surprisingly walked away a free man. So Joe was going to get Charles involved in the “on-theground” Election Day operation as much as possible so he (Brown) wouldn’t be left holding the bag if any of the old-line’s illegal tactics were uncovered. His plan was to have Charles work directly with the district captains for 15 of Jordan County’s 30 precincts. Four of those are “vote-buying” precincts which made Joe Brown comfortable knowing Charles would be out on a limb with him. Joe’s first priority was to take back the county commission seat. That would give the old line a majority – vaulting the faction immediately back into power. With only two seats up on the school board, a win would still leave the old line in a 2-2 tie and dependent on Hattie Mae Cooper for a majority vote. Members of the old-line election war council were cautiously optimistic about the upcoming election and were working harder than normal. The sting of the 1960 mess was fresh in their minds. Hill had noticed Tom Arrington regularly attending school board meetings – he sat in the rear of the room and took notes. The Crier publisher approached, “Heard you might be running for the school board. Is that right?” “Oh, just want to see how the school board is doing. I have four grandkids in school – just trying to keep up,” Arrington replied with a grin. “Don’t forget to bring in a story and picture for a front-page story in the Crier. It’s free,” Rick said, returning the grin. While 148
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outwardly there was nothing to even indicate that an election was only three months away and an important filing date was rapidly approaching, Beauregard, recognized as one of the best political tacticians in the entire state, was hard at work. He realized that to ensure his reputation was intact, the old-line faction had to regain power in the coming primary. That would ensure that in future elections, thousands of dollars would continue to flow to the old line from candidates for statewide office in the big primary election two years away. Those statewide candidates would realize they had to shell out the “organization expenses” to secure a place on the old-line slate in Jordan and surrounding counties. They understood that a heavy vote in those counties where Beauregard reigned could well bring victory in a crowded statewide race. Even without the statewide and presidential candidates of 1960, the “leftover” election cash in the 1962 primary would be in the neighborhood of $15,000-plus for him and Joe Brown to split. For this primary, the old-line campaign fund had a bit left over from two years ago and Red had given Joe Brown an additional $10,000. That was a good start. And there would be good donations from Tom Arrington and Bill Joe Hamrick – old-line candidates in the upcoming primary. In addition, Charles would approach some of the statewide officeholders who would be running in two years, offering them the opportunity to maintain good relations with him by giving a bit now, even if they weren’t on the ballot this election. Then of course, there would be money from Jordan County business owners who looked forward to getting county business if the old line was successful. As in past years, old-line candidates would be funding their own advertising – Crier and radio ads, yard signs, and bumper stickers. 149
Chapter 28 The Flowers Growing, Furniture Moving Beauregard wasn’t solely depending on this election’s “leftover” money to grow his cash reserve. His reinstituting the Flower Fund was proving lucrative with him collecting his “fee” of about $2,000 each of the state’s 24 paydays during the year. His illegal revenue stream didn’t stop there. Furniture purchases by state agencies were moving along well, particularly in the state police and state road departments. Charles’ close ally, the secretary of public safety, in the last two months, had ordered all local state police detachments in the state, the regional barracks, and the state headquarters to purchase all new furniture which would total nearly $2 million. In his talk with the state road commissioner last week, Charles felt that the department would be spending about $2.5 million on furniture in the next six months. Charles’s talks with the new governor indicated that total state furniture purchases this year could reach $6 million in the next 6 to 18 months. All the purchases were going through Business Management’s two dummy furniture companies. After Charles provided monetary recognition to the governor for pushing the department heads to “spruce up” offices, he would pocket about $135,000 cash in the next 12 months just from the purchases by those two departments. In the next two years, Charles expected several additional departments would make similar purchases. I
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might have to open another safe deposit box or two. He chuckled as he contemplated his wallet growing. While the political kingpin was pondering the multiplication of his ill-gotten gains, the U.S. attorney and his investigators were pressing on to come up with a way to provide Beauregard with free room and board for about 10 years in federal housing surrounded by high walls and barbed wire. While progress was being made, at times it seemed like it was one step forward and two steps backward for the federal prosecutors. The primary problem for the U.S. attorney was getting the hard evidence linking Beauregard directly to criminal activities. There was no doubt that the statewide Flower Fund was up and running in all 55 counties. The search effort to find individuals who would testify to it was dead in the water. The U.S. attorney feared word of the investigation would get back to Beauregard, who would then take the operation even further underground. This lack of progress and the number of other active cases piling up in the U.S. attorney’s office put the Beauregard investigations down a bit on the priority list for the time being. Meanwhile, across Jordan County, Charles and Joe Brown were making progress in getting the old-line precinct operation up to 1960 efficiency. Election Day teams had already been organized in more than one-half of the county’s 30 precincts. Normally, this level of organization didn’t take place until two weeks or so before Election Day. Charles felt that this off-year election offered an excellent opportunity for the old line to regain its position of political dominance in Jordan County. He had received reports from some old-line supporters with friends in the reformer camp that Edwards was having some real trouble getting his people organized at the precinct level. Walking up to Charles’s spacious house, Joe Brown knew this one-on-one meeting could be the most important the two would 151
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have regarding the coming election. Decisions had to be made on how to expand the vote-buying effort on Election Day and the budgets for the 30 precincts. “I believe you need to meet with the captains at those precincts that have the most votes for sale,” Charles urged – keeping with his long-time tactics of putting others out in front when it came to illegal activities. Joe Brown had expected such a move, “Charles, you and I need to have a ‘heart-to-heart’ with these precinct captains. I suggest separate meetings with each one – just the three of us there.” Sensing Joe’s resolve on the matter, Charles reluctantly agreed to these meetings prior to the next old-line campaign war council get-together. “Joe, we need to increase the buys by 10-15 percent. That would get us up to over 1,200 or so. We have to get the captains to meet with some of their most dependable guys and have them recruit folks who don’t normally even bother to vote. That needs to be done just as quickly as possible, so we can make sure they are registered.” Brown was surprised by Charles’s enthusiastic approach to the issue. He had expected Charles to try and avoid being directly involved with this illegal Jordan County Election-Day tradition. Brown added, “Another thing – I’ll get with Tom Arrington and have him work the city extra hard. He seems to be strong in all the Lawnsville precincts. He’s maintained friendships with most city employees from his time on the council. Tom’s been pushing for us to pay one or two city employees to become active on the ground in the campaign. I think that could be money well spent.” Charles cautioned, “Make sure you talk to them first and lay out exactly what we want them to do – door-to-door visits to make sure city employees and their families all turn out for us. And don’t talk to them at all about becoming involved with the 152
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vote-buying in the two Lawnsville precincts. For that, we’ll stick with the folks that have been handling that for the last several elections. We’ve got to be very careful. Wouldn’t be surprised if the feds don’t have folks in the county Election Day.” Bill Joe Hamrick’s announcement as a candidate for county commission ran on Page One of the Crier. As was the custom, it appeared as the candidate had written it – no edits. A story the following day by Hill would delve into the county commission race and the issues. That analysis would include the fact that many in the county felt that Hamrick’s defeat in the 1960 primary was due to his vote to not fund lifeguards for the 4-H Camp swimming pool, meaning campers had to swim in the Greenbrier. Parents of 4-H kids throughout the county were outraged and took their revenge at the polls.
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Chapter 29 Golden Rule Not Always Golden Charles cringed as he read the story. He had hoped that this issue was long–forgotten. “Charles, this one seems like the most important and heated off-year election I can remember. We need to take back that commission seat and at least one of the two board seats. How’s it looking to you?” Joseph Ballengee asked his old friend. “Damn it, Joseph, I wish to hell you hadn’t sold the Crier. Some of Rick’s stories are really hurting us. Is there any way to get him to back off?” Charles asked, almost pleading. “I’ve noticed in the last couple of weeks the advertising isn’t what it should be. Let me nose around, and we can talk next week,” Ballengee responded. Saying he had noticed Crier advertising was a bit light during the past week or so and given his inquisitive (some might call it nosey) nature, the former Crier publisher probed Hill. “Hell, Joseph, you know how this business is – it’s like a roller-coaster – you just hope the ‘ups’ are more than the ‘downs.’ We’re up for the year, but we can always use more advertising,” the present Crier publisher said to his predecessor. After talking about his grandkids and golf game, Ballengee left believing that the financial position of the Crier was not as rosy as the new young publisher had boasted. “Charles, he needs advertising, and you might get some leverage with Hill if you have some of your friends to advertise a bit, get Hill depending on that business, then have some of them 154
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threaten to stop when the news coverage puts the old line in a bad light. I think he’d get the message and back off. That could be important as we come down the stretch in this election.” “Joseph, let me think about that. It could certainly help. This one is going to be hard-fought. We really need to win back both of those board seats. And the county commission seat would put us back in the driver’s seat. How many businesses could make a difference?” the old-line kingpin asked – the wheels turning. “Three or four. Your friend at the car dealership could make a big difference,” Ballengee said. Crier ad manager Larry Loom called on every business in Lawnsville the first part of each week – including those who weren’t regular advertisers. “Boss, something’s in the water today. Greenbrier Motors and Jones Furniture both will be running something this week, and it looks like they could be in every week,” Loom gushed, bursting into Hill’s office. “Miracles never cease. Congratulations, Larry. Take some of that energy to some of the other ‘hard-rocks,’” the Crier publisher responded to his always optimistic advertising manager. The next week two more of the chronic ad holdouts – one of the two Lawnsville’s grocery stores and the city’s lone men’s clothing store – scheduled ads for the mid-week Crier editions. Together the four new advertisers accounted for two full pages a week – significant additions to the Crier ad revenue. Rick even mentioned to Anne how the advertising had increased. “Not sure what happened, but four of the toughest sales in town have come with a regular schedule.” Following their first ads, Hill personally visited each of the new advertisers and thanked the business owners for the advertising. He noticed that none of the four seemed too optimistic about getting new business from the ads and almost uniformly said, “I decided to give it a try.” 155
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During the two weeks that the ads had been running, the Crier carried several stories about the coming election that, while accurate, didn’t show the old-line candidates in a positive light. In addition, to having regular retail sales operations, three of the four also sold to the county and board of education and had been close to the old line over the years. The fourth – the men’s clothing store – was strictly retail, but the owner had always been an old-line supporter. Charles, who occasionally visited the businesses, made it a point to visit each of the four the day after one of the offending Crier stories appeared. During the visits, he steered the conversations to the election and noted how troubled he was by the tone of recent Crier stories. He recalled that he had talked the business owner into trying the Crier but had become disappointed by what appeared to be biased coverage toward the old line. Based on his earlier conversation with Joseph Ballengee, he was certain that his suggestion would move the business owners to put pressure on Hill to tone down the negative coverage of the old line. All four agreed to send word to Hill that they felt the stories were unfair and they would stop their advertising if he didn’t back off. They let Larry Loom know how they felt when he came in to pick their ads for the next week. “All four said almost the same thing,” Larry explained to Hill. He knew what the Crier publisher’s response would be. “Larry, I won’t do that. What did you tell them?” Loom said, “I said I’d let you know what they said. They seemed pleased and were certain you’d back off.” “I’ll visit each of them today and explain the facts of life,” Rick assured his ad manager. “Jim, Crier advertising is a good buy,” the Crier publisher told the furniture store owner. “You pay for the ad space which puts your business before our readers in about 75% of the homes in Jordan County. Your 156
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ad buys don’t give you the right – and never will as long as I run the Crier – to determine what I do and do not run in the news columns. You certainly have the right to advertise or not with us, but stopping your ads will hurt your business. I hope you’ll think about what I’ve said.” He repeated the same message to each of the other three surprised business owners who had expected that the young publisher would readily agree to tone down the news stories rather than lose their ad dollars. When he didn’t, they felt that they had no choice but to fulfill their promise to Beauregard – they all canceled their advertising. After two weeks of no Crier advertising, they realized that stopping it indeed negatively affected their business – noticeably. The least affected was the men’s clothing store. Of the four, he was the one that had the least real competition in Lawnsville. Rick had an idea where this all started, and he decided to send a message of his own. “Joseph, you know what that son-of-a-bitch tried to do? He got those four businesses to threaten to pull their advertising if I didn’t tone down the news coverage. Well, I told them I wouldn’t do it – not now, not ever. I told them stopping Crier advertising would hurt their business – and you know it will,” Hill fumed when Ballengee brought in his next day’s column. “Guess he just feels pressured – the campaigns are really heating up,” the former publisher responded. “Charles should know that he did the one thing that gets to me – trying to pressure me to not print the truth. Beauregard made a big mistake,” Rick said, knowing the conversation would be carried back to the old-line kingpin. Stunned by the young Crier publisher’s heated outburst, Ballengee responded, “I can see you’re upset,” as he made his way for the door.
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“Charles, I’ve never seen Rick so upset. Sounds like he really told off those four. Did you hear back from them?” the former Crier publisher asked. “That’s what they said. But all of them are still dropping their advertising. They are sticking with us.” On his next visit to three – the auto dealership, furniture store, and grocery – Charles came face-to-face with the power of advertising. The auto dealer explained that the Crier advertising had brought a noticeable increase in business, particularly from areas of adjacent counties with Crier readers. And he noted that once he became a regular Crier advertiser, his competition – the other auto dealer in town – had increased its advertising, so Charles’ friend felt his business would suffer if he didn’t again start advertising in the Crier. He heard the same at the furniture store and grocery. Both owners explained to Charles that their business had dropped off significantly since they stopped their Crier advertising. As for the men’s clothing store, the owner told Charles that his business had dropped off a bit since he stopped advertising. He was the only one of the four who agreed to discontinue advertising in the paper – at least for now. In his scheming, Charles had failed to connect the benefits old-line candidates got from Crier advertising during election campaigns and the benefits that a business received from that same type of exposure. Bottomline, it worked. He would never have suggested that an old-line candidate not run campaign ads in the Crier. After all, it reached 75% of Jordan County homes! Such ads were effective at selling the oldline product – its candidates. When Larry Loom informed the Crier publisher that three of the four had renewed their advertising, the two laughed that Beauregard might deserve an award for best Ad Salesman of the Month. 158
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Hill decided not to do a front-page column on the episode. Businesses do indeed have the right to advertise or not, for whatever reason. He did not want to be a whiner. However, he was hopeful that the business owners would tell folks what Beauregard had tried and what the publisher’s response had been. The Crier publisher wanted people to know that such pressure would not keep the paper from providing its readers with truthful and accurate news coverage. The clanging of his phone abruptly ended his pondering. “How’s the advertising business?” Edwards asked without any introductory chit-chat. “Whatever makes you ask about advertising?” Rick answered, his voice full of sarcasm. “Oh, nothing, just wondering if our local businessmen were trying to mix politics and advertising,” Baxter probed. “Now, now, Baxter, you really don’t believe such a thing could happen here in Jordan County. Everybody is pure as the driven snow,” the Crier publisher continued in a low-key tone. “Well, I guess those folks around town talking about it are all wrong then.” Pleased that the information had gotten out, Rick continued, “Don’t know what’s going around, but it’s news to me.” “Just wanted you to know that Charles didn’t do himself any favors. Folks see it as a desperate move going into the election. A lot of folks are saying Charles is trying to keep them from getting the truth,” Baxter relayed. “In his world, he sees all problems solved by money, money, and more money.” “There’s not a day goes by folks don’t learn things,” Rick said, chuckling. “Baxter, how’s the election looking?” “The old line is making a fight for it all over the county. They’re working harder than I’ve ever seen them here in the city. Out in the county, they are working like they did in the 1960 primary – it’s a real dogfight all over.” 159
Chapter 30 Is the Unbeatable – Beatable? Edwards was as pessimistic as he’d been for any of the last five elections. It did seem the old line was more organized than usual. Outwardly, the corrupt faction did not seem to lose a step from Red’s not running the on-the-ground precinct operations across Jordan County. Beauregard was much more visible and had been seen “out in the county” at community events and even making short talks when comments were sought. Baxter surmised that politicians around the state had let it be known to Charles that they were watching to see if the old line could bounce back from the debacle two years earlier, which ousted the old line from total control of Jordan County’s political structure. Charles was out to prove that the old line’s 1960 election disaster was an unfortunate blip and that the faction would retake its rightful place of power in southern West Virginia politics. The only source of optimism for the reform faction leader over the last couple of months on the campaign trail was the unexpected reaction out in the county to the Crier publisher’s story about the county commission race. 4-H parents are still mad about Bill Joe Hamrick’s vote over two years ago against funding the 4-H Camp lifeguards. After the vote, Bill Joe told parents the decision was because the county just didn’t have the money because of a drop in tax revenue the previous year. Shortly after his statement, there was a Crier story by publisher Hill about county money being deposited in a Lawnsville bank in non-interest-bearing accounts. The story showed that if the 160
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county money had been in one of the bank’s regular interestbearing accounts, it would have generated more than enough to pay for the 4-H camp lifeguards. In that 1960 primary, while Hamrick ran close in Lawnsville precincts, he was beaten soundly out in the county where nearly every family had at least one child who attended 4-H camp. Because of that commission decision, the pool couldn’t be opened, and campers had to swim in the river. Since two years had passed, Beauregard assumed that the issue had long been forgotten and wouldn’t even be mentioned in the present campaign. While his confidence was growing daily about the election results, there were some other formative issues that Charles would have to contend with shortly after Election Day.
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Chapter 31 The Past Looms Big in the Future As the Crier publisher reviewed the stories about the Flower Fund, Business Management entanglement with both the Lawnsville hospital and at least two state agencies, it seemed that the paths could lead back to Beauregard. Charles’s connection with the Flower Fund was clearer, while the connection with Business Management was nothing more than Hill’s suspicion. He did not know about the cash in Charles’s safe deposit boxes, but he had enough information to develop some estimates about the cash that could be derived from the illegal practice of requiring state road department employees to “contribute” part of their salary to the Flower Fund. He was certain that Charles would take a collection fee each payday of about 5-10% of the collection ,which would be up to $45,000 plus a year. Indications were that Charles had run the Flower Fund for 10-15 years during previous state Democrat administrations. Even given a lower salary rate in those earlier years, Rick estimated that Charles could have easily scammed $300,000 to $450,000 cash during that time. On top of that, Charles could have made off with a considerable balance in the fund when the Republican administration took over. Charles’ standard of living didn’t indicate such wealth – he lived in a modest house in Lawnsville, and he and his wife drove medium-priced automobiles. Then Rick remembered Charles had the beach house in Myrtle Beach – the one he banished Edward Whitmore to in the heat of the 1960 primary election 162
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campaign. Edward threatening an elementary principal’s job if she didn’t support his reelection and beating his school-teacher girlfriend made him a liability to the old line’s slate of candidates. The Crier publisher wondered if Flower Fund money was used to buy that beachfront property.
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Chapter 32 Storm on the Beach Rick and Anne Hill had talked about perhaps taking a beach vacation in a few months – Myrtle Beach would be perfect, and he could take an afternoon to visit the local courthouse and examine the property records. But he needed an address of Charles’s beachfront house. That could pose a problem. Then he recalled that Sheriff Eddy Bill Graves had slipped him the phone number for the house when he was trying to confirm Edward had been sent there for a “vacation” prior to that 1960 primary Election Day. Maybe the sheriff had the address too. “Damned, this has got to be trouble,” Sheriff Eddy Bill Graves chuckled when he heard Hill’s voice. “You got to be stirring something up. I should hang up and go fishing. What’s new?” Rick chuckled, “I’d like to come up to the courthouse today and wondered if you had a couple of minutes to catch up?” “Hell, I can hardly wait to hear what you’re up to now. Sure, come on up.” The Crier publisher was careful to use the old courthouse’s seldom-used back stairway up to the second floor so as not to arouse the curiosity of all the old-line supporters working in the county offices on the first floor. “It’s been a while,” the sheriff said as he ushered Hill into his private office. After exchanging pleasantries and comments about how the coming election might turn out, Eddy Bill blurted out, “Okay, I
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know you didn’t come all the way up here to see my handsome face – let’s have it.” “You don’t make it easy on a hard-working reporter,” Hill said. “Eddy Bill, I remember before the 1960 primary, your address book got out of your top drawer, flipped itself open to a certain page where there was an important South Carolina phone number I really needed. In fact, you weren’t even in the room when all that happened.” Laughing, the sheriff responded, “You know it’s hard to find such a smart address book – not many around. You really stirred up a hornet’s nest with that story.” Rick laughed right back, “Now I was wondering if that address book might have an address to go with that phone number?” “Why in the world would I have that?” the sheriff said in a mocking tone as he opened his top desk drawer, took out the address book, turned to a specific page, and got up. “Oh, I have to check something with the boys out front. Make yourself at home.” Alone in the office, Hill copied down the address and was settled back in his chair when the sheriff returned. “Well, I guess I’d better get back to the office,” the Crier publisher said. “Stop by anytime. That damned thing just won’t stay put,” the sheriff chuckled, returning the address book to his top desk drawer. Anne Hill had a philosophy about vacations – they were to be vacations with work left behind. But Rick was able to persuade her that he could be done at the Horry County Assessor’s and Register of Deeds offices while she was at the grocery store in Myrtle Beach. It only took him a half-hour longer – he was forgiven. Armed with the address of Charles’s beachfront house – Hill was able to work with the efficient staffs in both offices. 165
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A big “Wow! WOW!!!! ” almost escaped his mouth when he saw the records. Charles never had a mortgage on the property – according to the staffer, that meant he paid cash – just over $150,000! The records also included the house’s previous owner. The purchase took place about eight years ago. That would have been about eight years or so after Charles began running the Flower Fund. If Rick’s estimates were correct, Charles would have had ample cash from the Flower Fund scam to pay cash for the oceanfront house. Driving by Charles’s oceanfront house on the way back from the Horry County Courthouse, Rick found a house larger than most in the oceanfront community. He got out and took pictures which showed the house and the ocean. He took down the number of the real estate agency which was handling the house as a vacation rental. The Crier publisher was already contemplating how he would work the information and photographs into a story. He thought he had an idea that would work just fine. The Realtor told him the $400 weekly rate was in the upper range for 1962 oceanfront weekly vacation rentals in Myrtle Beach. Just before the coming primary, Rick planned to run the story reviewing the epic 1960 primary and general election that saw Jordan County’s political foundations shaken as the old line lost it majorities on both the county board of education and county commission. The article would not be complete without noting the old-line’s majority also being ousted from the Lawnsville City Council as well as the convictions of old-line kingpin Bell, two Lawnsville mayors, one city police chief and the indictment of Beauregard. The latter’s acquittal would also be prominent in the story. A particular aspect the Crier publisher looked forward to writing was the impact of the shenanigans of Edward Whitmore and his banishment by Charles to Myrtle Beach until after the 1960 primary election. This last portion of the story would justify 166
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use of the pictures and information about Charles’s beachfront house on South Carolina’s Grand Strand. But before writing the story, Hill had to track down the house’s former owner to confirm Beauregard indeed did pay cash for the beachfront property. Using the information in the Horry County real estate records, the Crier publisher was able to find the hometown and phone number of the former owner. His optimism disappeared when he got a message that the phone had been disconnected and shot up again when it included an alternative number to call. The second number turned out to be the son of the former owner who had passed away several weeks before. Rick explained the reason for the call. “I remember that very well. I was only 14. My dad took me to the lawyer’s office for the closing. He said I’d see something I’d never seen before and would never see again. He was right. The buyer, Mr. Beauregard, came in with a briefcase, opened it and counted out $150,000 in cash, and placed it on the table. It was really something. I couldn’t believe it. Afterward, dad took me to the bank, where he made the deposit. The bank teller nearly fainted when she saw the $150,000 cash. It was really funny. I was looking through dad’s stuff the other day and found copies of those closing papers.” He gladly agreed to send the Crier publisher one of the spare copies, which included a copy of the receipt for the $150,000 cash payment signed by both Charles and his father. In addition to the review of the 1960 elections, Hill’s 1962 primary election wrap-up story covered every aspect of the board of education and county commission races. Two sentences were devoted to noting Beauregard’s appointment as a consultant to the state road department to coordinate activities among the department’s 10 divisions. The last section dealt with the legendary 1960 primary election and Edward Whitmore’s forced Myrtle Beach vacation. 167
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The blockbuster phrase was in the caption under the picture of Charles’s beachfront house – “Whitmore’s beach vacation was spent in Beauregard’s free-and-clear beachfront home at 1013 Beach Road in Myrtle Beach, South Carolina.” The final part of Hill’s by-lined election wrap-up story reviewed the bribery trials for Red, Charles, and the then-governor Sonny Monroe noting Charles was the only one acquitted. The final paragraph reviewed the results of the McDowell brothers’ civil suit to recover the money they were cheated out of on the sale of the 300 riverfront acres and how River Play Development (Charles, Red, and Lawyer Bird) increased the settlement amount in exchange for the McDowell’s not seeking a review of the three River Play partners financial positions. “Thought you might find this interesting,” the federal investigator said as he placed the copy of the Lawnsville Crier in front of the U.S. attorney. “Hell, might find it interesting? – This could be the key to getting a conviction of Beauregard if ‘free and clear’ means what I think it means,” the lead federal prosecutor said as he excused his assistant and reached for the phone. “What in the world could you be calling about?” Rick said when the U.S. attorney identified himself. “Just to make sure that you and I agree on what the term ‘free and clear’ means under the picture of the beach house,” the U.S. attorney responded quickly. Once he got the affirmative confirmation, the federal prosecutor said, “I take it you have documentation to back up the use of the phrase.” “Absolutely – original copy in a safe and a copy in my safe deposit box at the bank and a couple more hidden away here and there,” the Crier publisher assured. Before being asked, Hill said, “I’ll be in your office at 8:30 tomorrow morning.” 168
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Hill returned the documents – which included the phone number to reach the former owner’s son – to his briefcase after the U.S. attorney finished taking notes. “Not sure how it’ll fit into things. Of course, anything discussed in our meeting today is totally off the record and can’t be used at all in a Crier story,” the U.S. attorney said aware that the newspaperman understood the importance of the documents. “Didn’t think they were important. Just wanted to enjoy the five-hour drive from Lawnsville and back during this rainstorm,” the Crier publisher answered with dripping sarcasm. Hill was certain the U.S. attorney would have members of his staff on the way to Horry County, South Carolina, by at least tomorrow morning (and maybe even by this afternoon) to get certified copies of the documents and follow up with the son of the property’s former owner. Since Beauregard owns a house in Myrtle Beach free and clear, it’s hard to imagine he’d have a mortgage on his home in Lawnsville, the Crier publisher posed in a sarcastic tone to himself. No way I could get that subject into a story. While nearly every Crier reader paid attention to the election wrap-up story, one had a much higher interest than all the others. Charles was curious about “free and clear” appearing in the photo cutline but wasn’t about to call Hill to discuss it. The political kingpin wasn’t disturbed by the inclusion of his state road consulting job since a Crier story had announced it several months ago. However, he was very concerned that the Crier publisher might have tied the Flower Fund to his paying cash for a beachfront vacation home. What were friends for? He called Joseph Ballengee with a request to probe the current Crier publisher discreetly. “Oh, I just wanted to make sure it was clear that Charles owned the house,” Rick explained to the former Crier owner. Rick’s use of the term “free and clear” was meant to convey 169
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“owned” WITHOUT a mortgage. He was careful to be literal so he couldn’t be accused later of misleading the former publisher. “Just seemed a strange use of the term. To most folks, ‘free and clear’ means that he owns it outright with no mortgage. Just curious, that’s all,” Ballengee explained. Rick didn’t expand to confirm Ballengee understood exactly what he intended to convey in the story. Hill was certain that Beauregard had asked Joseph Ballengee to inquire about the story to see if the Crier publisher actually knew about his unencumbered ownership of the Myrtle Beach property. But the Myrtle Beach real estate transaction wasn’t the only aspect of Beauregard’s financial dealings that had Hill’s attention.
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Chapter 33 Flowers Taking Root Everywhere Should I jump in? the Crier publisher thought as he evaluated the credibility of reports (from the route driver and a McDowell family member) that the Flower Fund was again operating. Feeling that given the sensitivity of the subject, he needed additional confirmation, Hill reached for the phone. “Baxter, I need to talk with you confidentially on something. Can we meet at your mother’s this evening?” Taken aback by the secretive approach, Baxter responded, “Must be important. Anything I need to do to prepare for this?” “I need to confirm something we’ve talked about before. And you’re right – it’s very important,” the young publisher said before hanging up. Baxter’s mother wasn’t about to leave the two men sitting at her kitchen table without an ample supply of her oatmeal cookies and hot cups of tea. Once the food was in place, she cautioned with a chuckle, “Now, don’t you two get yourselves in trouble.” “Let’s hope not,” her son responded, looking across the table at the serious expression he hadn’t seen before. “Baxter, your answer to my question will be the most important answer you’ve ever given me,” the Crier publisher explained. “Is the state road Flower Fund operating now?” Stunned, Baxter said, “You must be getting ready to jump into something with both feet. Yes, it is.” “How do you know that?” Rick pressed. 171
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“The son of a close friend of mine just started at the county road garage. He was informed about the payday cash ‘contributions’ when he was offered the job and came over to talk with me before he accepted it. That was just two weeks ago.” “Can you get him to speak with me directly?” “I’ll see if he’ll do it tomorrow evening,” Baxter responded certain that the Crier publisher was going to surpass all his other confrontations with the corrupt political system ensconced in Jordan County and, indeed, the entire state. After both he and Baxter assured the young man that his name would never be connected with the confirmation about the Flower Fund, he described making his first Flower Fund contribution just two days before. Reports Coming to Crier Say Flower Fund Still Shaking Down State Road Employees The headline greeted Crier readers in the next day’s edition. Carefully worded, it was difficult to identify exactly from what county or counties the reports were received or whether the scam was statewide. The relatively short article repeated a section from a previous story about how much would be “contributed” ($450,000 annually) if the Flower Fund was operating statewide.
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Chapter 34 Principle = Jail Three days later, the Crier publisher received a troubling but not entirely unexpected call from the U.S. attorney. “I can subpoena you or you can come before the Grand Jury voluntarily.” “You’ll have to subpoena me but expect to be blistered in a Crier front-page editorial which will call for your immediate firing by the attorney general,” the Crier publisher responded matter-of-factly. Hill appeared at the federal courthouse by himself. However, he was not alone; he’d let the Associated Press know of the subpoena, so nearly every large daily newspaper and television station in the state was there as he walked between the U.S. marshals into the grand jury room. Fifteen minutes later, he was led from the room, handcuffed between the same two U.S. marshals as the U.S. attorney announced to the press that the Lawnsville Crier publisher was being jailed for refusing to answer questions before the grand jury about his sources for the Flower Fund story. Before he left Lawnsville this morning, Rick had told Anne that that could be the outcome of his appearance before the federal grand jury, so his incarceration was not a total surprise. He brought Al along to get the picture of him in handcuffs for the Crier’s front page. The federal judge ordered Hill freed the next morning, saying he felt that a needed point was made. To most, the judge’s action was seen as a response to editorials 173
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and commentary in nearly every newspaper and television network in the country protesting the jailing of a reporter for not divulging news sources. The Crier publisher made good on his promised editorial calling for the firing of the U.S. attorney. The editorial and Hill’s jailing made Beauregard question his earlier feeling that the U.S. attorney and the Crier publisher at times worked together. While the Crier publisher had no problem voluntarily providing information to the U.S. attorney, he felt action forcing the press to divulge news sources was inappropriate, a threat to the free press the nation held so dear, and indeed was illegal. In fact, when he was led in handcuffs from the federal courtroom, Hill was prepared to stay jailed rather than give up his news sources for the story. Three days after the editorial appeared, his phone rang with a call again not unexpected. The conversation was cordial. Both parties understood and accepted that the actions of the other were in keeping with their respective responsibilities. Both the U.S. attorney and the Crier publisher were certain their overall relationship had not been irreparably damaged. In fact, the U.S. attorney had dispatched two investigators to South Carolina as the result of his recent conversation with the Lawnsville Crier publisher. To use that information in a trial, The federal investigators to secure it from official sources in South Carolina and conduct a personal interview with the former property owner’s son. If that information was confirmed, the case against Beauregard would take a giant leap forward.
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Chapter 35 Money, Money, and More Money The U.S. attorney had asked the Department of Justice headquarters in the nation’s capital to request a copy of Beauregard’s federal income tax returns from the Internal Revenue Service (IRS) for the last 15 years. This could be the first step in the lengthy process of evaluating whether Beauregard’s reported income on his federal income tax returns was in line with his lifestyle. At this point, the federal investigation had found that Charles’s lifestyle included paying $50,000 cash for an interest in a northern West Virginia beer distributorship and the $150,000 cash purchase of the oceanfront house in Myrtle Beach. The Crier publisher was not aware of the payment to the beer distributor. After re-reading his notes about Charles’s purchase of the oceanfront home in Myrtle Beach, the Crier publisher thought, I need to check out the records up at the courthouse. Knowing his asking for the records of Beauregard’s house would get back to the Jordan County political kingpin (by a call from the county clerk) before he got back to the Crier office. Hill knew he had to come up with a clandestine approach. On the way home from work, Rick took a detour and drove by Charles’s Lawnsville house. He noticed a house for sale in the same block – clandestine approach discovered. Hill headed for the courthouse.
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“Ruby, I noticed a house for sale up on Bluestone Avenue I might be interested in. Could you pull those records so that I could take a look?” the Crier publisher asked the county clerk. Wanting to accommodate Hill, the clerk not only pulled the records, but showed him a desk that offered privacy in the back of the records room. He began to take notes about the house for sale; then, when Ruby went back to her office in an adjoining room, Rick turned the pages until he found records for Beauregard’s home. He noted that the house was purchased about 15 years ago with a mortgage that was paid off four years later. Quickly he took down all the pertinent information on the Beauregard purchase turning back to the other house just minutes before the County Clerk re-appeared, checking to see if he needed any further help. Having finished his detective work, the Crier publisher hurried back to the office, trying to figure out how Charles would have been able to pay off that $50,000 mortgage balance. Putting his estimates of how much Charles skimmed from the Flower Fund scam with figures about the cash purchase of the Myrtle Beach house together with what he found about the payoff of the Lawnsville home mortgage, Hill tried to piece together Beauregard’s financial condition. First, the Jordan County political boss paid off his Lawnsville home mortgage about four years after buying it and just over three years following his initial running of the Flower Fund scam. About four years later, as he continued to run the Flower Fund, Charles paid $150,000 cash for the Myrtle Beach oceanfront house. He should have a huge flower garden outside both these houses, the Crier publisher thought as he looked over his notes. The Jordan County Courthouse records did not note whether Charles used cash to pay off the home mortgage at the local bank.
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There are a lot of veteran employees at the bank – wonder if any know details about that transaction and are willing to talk? Hill thought. Being relatively new (only three years) in Lawnsville, Rick picked up the phone to get the lay of the land about the internal workings of the bank. “Baxter, I need your advice on something. It’s really hushhush,” the Crier publisher said without any chit-chat. “Whoa, slow down; give me a chance to catch up. What in the world are you talking about?” the reform leader said, trying to gather his senses following such a stunning start to the call. “I can’t tell you details – only a really rough idea,” Hill bounced back. “You’re really pushing it,” Baxter chuckled. He could hear Rick take a deep breath. After they were seated at Baxter’s mother’s kitchen table, Hill took out his reporters’ notebook and thumbed through the pages. “Do you have someone really trustworthy – a retiree or someone working now at the bank?” the Crier publisher asked. “I mean that you can really vouch for?” “What else can you tell me? That’s not a lot to go on,” Baxter responded. “I need someone who would know about a large cash payment made to the bank eight years ago,” Rick explained. “This sounds like it could set off a powder keg,” Baxter whispered. “Okay, this is the deal. I’m doing a financial profile of Charles. If he finds out about it, he could skate on the Flower Fund and some other things with which he might be involved.” “There might be one who would know about something like that. He was fired several years ago. It never got out what the problem was. I understand he got a decent payout and had to sign an agreement to keep his mouth shut. But I might be able 177
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to get hold of him. Give me a couple of days. Not promising anything. This really sounds like trouble,” Baxter concluded. The next day he called the former bank employee, Lawrence Brownstone, only slightly confident of getting any important information. “I got hold of him and explained a little about what I wanted to know. He said, ‘Baxter, I don’t know what you’re talking about. Don’t ever call me about this again, ever.’ “And then he just hung up. Rick, you have to understand this is a guy I’ve known almost all my life. He was one of my dad’s best friends. There’s something there. Not sure it was illegal, but it might have been borderline. “I’d bet that he knows the whole story. He’s not about to open up. He still has family here. And I’m certain he doesn’t want to do anything to cause them any trouble. From his reaction, he seems to have been in the middle of whatever went on. But he just wouldn’t budge. I just can’t push him on this. He comes back for a visit every couple of years, and we’ve always gotten together. But it’s clear he won’t discuss this at all,” Baxter said. “Is there anyone else you think might know something?” Rick asked. Baxter responded, “No one that’s not close to Charles. Folks at that bank are really tight-lipped. This guy was the only exception I know about.” “I’m at a dead end,” the Crier publisher said, disheartened, and hung up the phone. The phone just seemed to have a different ring when Baxter picked it up. “Baxter, sorry I was so short with you the other day. What you brought up was really hush-hush when it happened. Cora Lee and I talked after your call, and she gave me fifty kinds of hell for treating you so badly. She reminded me your dad was our best man. We talked about stuff that went on at the bank. You know they fired Sally Jones just a few weeks ago. Folks still at the 178
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bank tell me she was fired because her cousin testified against Bell in that voter fraud case. “I got to thinking about your call, and after talking with Cora Lee, just couldn’t let him keep getting away with this stuff. I remember the day Charles paid off his home mortgage – he went to his safe deposit box while I waited in Joe’s office. Charles came in with an old briefcase, opened it, and counted out about $50,000 cash to pay off the balance. Joe had me take the cash, put it in the safe, handle the paperwork, and give Charles a receipt. In all my years at the bank, I’ve never seen a customer bring in that kind of cash.” Baxter responded gratefully, “Lawrence, I do appreciate your calling back. But your recollection might not be good enough without some proof.” The reform leader couldn’t believe the laughter coming through the phone. “Baxter, you know me better than that – I’ve got copies of everything from that deal. I have the paperwork right here in front of me. The date was June 8, 1954. Always had an uneasy feeling about how Charles operated,” Lawrence Brownstone explained. “I’ll make a copy and mail it to you. Will that help?” “You bet it will. You might be called to testify at a trial,” Baxter explained. “Well, hell, there’s nothing he can do to me, so that won’t bother me a bit,” Brownstone responded. Not wanting to give Hill the important information over the phone, Baxter just called and asked the Crier publisher to drop by his mother’s house that evening. “I’ve got some news that might have you dancing a jig on Courthouse Square,” he taunted. “Said he called back after talking to his wife and thinking about how Charles got Sally Jones fired at the bank a couple of weeks back. He was the one who originally hired Sally. Related that she was one of the very best, hardest-working employees 179
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he’d ever had. Said the real reason Charles went after her was because of her cousin, Jeremiah Jones, testifying against Red in the voter fraud trial. He’s mailing me copies of the documents. And he’ll be glad to testify at any trial that takes place,” Baxter concluded. Hill was in a predicament – how was he going to work these newfound facts into a story – there was no law against paying off a mortgage. He had no doubt that skullduggery was involved but had no proof. He did have some wiggle room with working the “free and clear” into the story about the Myrtle Beach house but not with this. Another trip to the state capital seemed in order. “So now it seems we have one house that Beauregard paid for entirely with cash and another he used a large amount of cash to pay off a mortgage,” the U.S. attorney observed after reviewing the information Hill had just handed him. “With the date of the Lawnsville mortgage payoff, we’ll be able to subpoena the bank records. We’ll need the contact information for the former bank employee too.” The Crier publisher shifted in his chair. “I sure wish there was a way to work this information into a story. Just don’t have a hook.” “Wish I could help, but at least you have solid background information for stories if this case results in an indictment and trial. This is very complicated,” the U.S. attorney concluded. Hill was not aware of the $50,000 in cash Beauregard used to purchase an interest in the northern West Virginia beer distributorship. “Anything new on the election down there,” the U.S. attorney said, not so subtly shifting the conversation. “According to what’s on the street in Lawnsville, this election campaign, particularly for the county commission seat, is going to be as heated as 1960. I’d say vote-buying will be going on in at least five precincts,” Hill said. 180
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“From what I’ve heard, Bell normally handled that for the old line. Without his involvement, a new person will be coordinating that and the possibility of some screw-ups is significant. I’m nosing around,” the Crier publisher said. “Damn, it would be great to tie Beauregard to that. We’re still not over his being acquitted on the bribery case when both Bell and the governor were convicted. I appreciate very much your bringing this information to me,” the U.S. attorney said, rising from his chair, signaling that the meeting had reached its conclusion.
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Chapter 36 Election Recipe Means New Dish? Driving back to Lawnsville, the Crier publisher tried to sort things out. In all the prior dealings, the federal prosecutor always said he wasn’t sure if the information that Hill provided would fit into an investigation. But with this latest information on Beauregard’s real estate transactions, the U.S. attorney had just thanked him. That could be significant. Maybe he’s put the investigation of the Flower Fund scam on the back burner in favor of a concentration on Beauregard’s overall financial condition, the Crier publisher pondered. Hill was still not happy because he couldn’t figure out a way to work into a story the information on Beauregard’s real estate dealings in Lawnsville. He did console himself in feeling that the information might help the U.S. attorney “uncomplicate” the Beauregard investigation. But on reflection, Hill thought about the seemingly “slamdunk” bribery case the U.S. attorney had against Beauregard, Bell, and then Governor Sonny Monroe – Beauregard was acquitted, and the other two are awaiting sentencing to federal prison. Shaking his head, the Crier publisher thought perhaps Beauregard was just a charmed individual who would never answer for his crimes. Continuing to mull over Jordan County political corruption, Hill recalled the case where Bell was convicted of voter fraud in two Jordan County precincts. There was no doubt that 182
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Beauregard was part of that conspiracy – yet it is Bell and two others who face sentencing for that crime. The Crier publisher reflected on how Charles always appears to be there when the money is doled out. But at the same time has been able to manipulate situations, so he cannot be directly linked to criminal conspiracies. That could explain why indications are that the U.S. attorney now seems to be focusing on Charles’s financial dealings like the Flower Fund and possible kickbacks from Business Management companies for state agencies’ furniture purchases. All that was away from public knowledge. Jordan Countians’ attention was elsewhere. Interest in the coming election was increasing as control of both the board of education and county commission hung in the balance. Little did Hill realize the insight the ring of his phone would bring. Edwards’ seemingly innocent “What’s new?” began an interesting conversation. It started with Baxter’s observation that Beauregard had cut back his trips to the State Capitol and was devoting a lot of time to regaining the old line’s political power in Jordan County. Baxter indicates that the old-line election coordinating committee has moved into election mode earlier than usual – meeting every week rather than twice a month as had been normal at this point in earlier election cycles. Chuckling, Baxter added, “It seems that Eva Newland maneuvered us and the old line into going with Hattie Mae Cooper for the board. I can’t remember both factions ever going with the same person for anything. I think Eva indicated to both Joe Brown and me that the retired school employees would stick with Hattie Mae if one of us opposed her, which could affect the county commission race. Have to admit it was a pretty slick move.” 183
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“I thought Eve was pretty much out of it,” the Crier publisher responded. “She was until the last two elections. Two years ago, she sandbagged us all into thinking that. Then Edward Whitmore’s shenanigans got her all fired up. Without us picking up on it, she carried a big stick in the board election two years ago with that Golden Caravan of retired school employees hauling voters at all 30 precincts. We hadn’t heard anything before Election Day and then these cars showed up hauling voters all day. It’s really something the way she did it,” Baxter concluded, shaking his head. “If Tom Arrington beats Sam Keaton, then the board will be 2-2 between us and the old line, that puts Hattie Mae in the catbird’s seat. That’s the worst that can happen. If Keaton wins, then we will have three solid members on most issues. Arrington is making a strong run for it, especially here in Lawnsville. “The Commission race is a whole x’nother ballgame. If Bill Joe wins, Charles will control the most important agency in county government, and with his close relationship with the governor and by showing he’s back, he could expand his influence in the surrounding counties. “From what I’m picking up, the old line is way ahead of schedule on their organizing precincts. Planning door-to-door campaigning in nearly all precincts in the country. And I expect all the county state road garage employees will be out across the county too.” “How’s this any different from what they normally do?” the Crier publisher asked, questioning the reform leader’s premise. “It’s much different from what we’ve seen before. If anything, they are more organized, with more people. They’re putting a lot more money into this one. We must hold the commission seat. If we lose this one, the old line will have a 2-1 majority. That would be particularly bad since, under that new law, the state will be sending a lot more money down to the counties in the 184
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next couple of years. If the old line has the commission majority, you can be sure a lot of that money goes to buy things the county doesn’t need from their friends who own businesses around the county and donate to their campaign fund.” “And let’s not forget Business Management. It’s a sure bet that all the county offices would get new furniture, and if Tom Arrington wins a board seat, you can bet the old line will pressure Hattie Mae to go along with outfitting all the schools with new furniture to give the kids a ‘wholesome environment’ in which to learn,” Hill said. “Don’t forget new school buses, bought through Arrington’s brother-in-law’s auto dealership,” Baxter added. “Baxter, you sound like they will do all that the first day if they win,” Rick said with heavy skepticism. “Hell, Rick, there’d be nothing to stop them,” Baxter responded with certainty. “Charles won’t be able to help himself. When there’s money on the table, he goes after it – pure and simple. ” Rick felt Baxter was trying to plant information that would cause the Crier publisher to follow up and do a negative story about the old line. To let Baxter know his ploy hadn’t worked, Rick asked, “Any important things going on in this election that seems unusual?” Realizing his attempt to influence the young publisher had fallen flat, Baxter revealed something he had he had held close to the vest, “It seems that Ben Howland is staying completely out of this one. That’s strange given that in the past, he and Tom Arlington were close when Howland was mayor.” Hill was confused, “That doesn’t fit. Arrington ran for mayor against Howland and made some pretty strong charges.” Baxter responded, “That was all a smokescreen. Arrington was a stalking horse for Howland and got in the thing to take votes away from our candidate Preston Bigelow. It worked. 185
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Howland won easily. If it had been Preston and Howland headto-head, we would have had a chance. “Folks believe Howland is not involved for Arrington because of his conviction for bribery, and those kickbacks could hurt Arrington in the board race. “But if Sam Keaton comes on strong, I think Howland will get involved in the city, at least behind the scenes. We’re watching it closely. If he does and it gets out, it could not only hurt Arrington but could hurt the old line in the commission race,” Baxter explained. The Crier publisher leaned back in his chair, a clearly skeptical look across his face, “Baxter, that all seems a bit far-fetched.” “Rick, folks were really upset with all that came out in Howland’s trial – the bribes, kickbacks, and allowing gambling to get a foothold in the bars. If it looks like Arrington is in trouble in his board race, Howland could become involved,” Baxter concluded. “Baxter, you know very well that is the type of whispering campaign that I won’t touch. If Sam Keaton wants to make the charge publicly, that’s one thing, but my printing such a rumor is just not going to happen,” Rick said as he placed the phone back in its cradle. The Crier publisher would be astonished to know that as he hung up the call with Edwards, Ben Howland was completing a series of calls to his five most trusted political supporters in Lawnsville. The six would gather that evening in Howland’s basement family room to discuss how they could help elect Tom Arrington to the Jordan County Board of Education.
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Chapter 37 Behind the Curtain “Because of my conviction, my name cannot be connected in any way with Tom’s campaign. His being elected depends on us getting the same organization up and running that we used to get me elected mayor. Each of you will be responsible for the same precinct you ran in that election. “Also, Jim, you handled working with city employees to make sure they and their families all got to the polls. We need you to make those contacts in the next day or two. They didn’t turn out in the primary two years ago, so it’s important to get them involved as soon as you can.” The meeting went on for two hours, with those attending developing detailed plans to turn out the vote for Tom Arrington in the non-presidential year primary. Historically, the voter turnout in the off-year was much lower than for a year in which a president was being elected, so a strong grassroots campaign to turn out the vote could well carry the day. Joe Brown made sure it was understood that the budget for the five Lawnsville precincts would include ample cash for votebuying in the two precincts well-known for embracing that longbeloved West Virginia Election Day tradition. “Make your contacts this coming week. Don’t mention my name at all. This conviction thing has a lot of folks upset. If they knew I was involved, it could hurt Tom. If anyone asks, just tell them I’m sitting this one out. We’ll get together next Tuesday
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night to see where we are,” Ben Howland said as the meeting ended. The Crier publisher smiled when he picked up the phone and heard the creaky voice of his 85-year-old anonymous ace news source on the other end of the call. “That skunk Ben Howland has got his gang out campaigning for Tom Arrington for the school board. Theys out all over town meeting with folks – mainly at night.” Hill didn’t have a chance to acknowledge the call or ask any question before the click rattled through his brain. “How in the hell am I supposed to check this out?” Hill muttered to himself as he put the phone back into its resting place. “I’ll cover the Candidate Nights at the schools in Lawnsville to see if it comes up in the comments from the other board candidates,” he decided. The first three Candidate Nights at three of the four elementary schools in Lawnsville were low-key discussions of the physical condition of the schools, teacher vacancies, and the general operation of the schools. With only two left – the next one at West End Elementary and the last at the high school – the Crier publisher was convinced that the rumor of Ben Howland’s behind-the-scenes involvement was fiction and no more than an attempt by Baxter to get the subject into a Crier story avoiding connecting the rumor to his candidate – current board president Sam Keaton. As with most things in Jordan County politics, such conclusions were always subject to change without notice. Hill had nearly dozed off listening to the board candidates canned opening statements he had heard at the other three Candidate Nights when he was jarred from the nocturnal threat when the moderator (president of the PTA) opened the floor for questions from the audience. 188
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“Tom, I hear that Ben Howland has been out campaigning for you undercover-like all over Lawnsville. What’d you have to say about that?” asked one of Baxter’s supporters who was not known to be part of the Jordan County reformer political faction. Rick watched as Tom Arrington, blind-sided by the question, nearly turned his chair over as he hurried to the podium to give his answer. “Don’t know where you came up with that one. Last I heard, Ben Howland was out of town. And other than that, I haven’t asked and don’t intend to ask him to be involved in my campaign at all,” Arrington blurted out, stammering at first and finally regaining his composure. Many in the audience snickered at his difficulty with the question. The rest of the Candidate Night was filled with the same questions and issues as were discussed at the previous events. However, once the meeting had adjourned, a heated argument ensued when Tom Arrington approached the man who had asked about Ben Howland’s involvement in his campaign. “You know that’s not true. You’re trying to stir up trouble,” Arrington said, only inches separating the two men’s noses. “It’s around, and instead of going with rumors, I asked you here in front of folks,” the Baxter ally countered. “There will be trouble if I hear you saying something like that again. It’s not true, and you know it,” Arrington concluded before turning to talk with supporters. The Crier publisher listened to the confrontation but rather than interview the men separately, he decided to include in the story what they said to each other – both in the formal question and answer session and the argument following. Hill was looking forward to the Candidate Night at the high school, which was more heavily attended and traditionally was the final Candidate Night for Jordan County school board candidates. It would be two days after his story on the West End 189
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Elementary School Candidate Night, where Tom Arrington was grilled about Ben Howland being involved in his campaign. An irate Arrington supporter accosted the Crier publisher the moment he entered the high school gym to cover the Candidate Night. “Why in the hell did you put in the paper that Ben Howland is helping Tom? There’s not a word of truth in it.” “You need to talk to the fellow who asked the question – he said it; I just quoted him,” Hill calmly responded. The man got right up to the Crier publisher’s face, “That’s just a bunch of trash, and you better get stuff right before you print it.” He turned and stomped off, getting pats on the back from other Arrington supporters. After the candidates completed their standard campaign positions, the high school principal nervously opened the floor for questions from the standing-room-only audience. The first four questions were about repairs needed at the school and faculty vacancies that hadn’t been filled for two years. Just when it seemed the session was close to being adjourned, a hand went up in the rear of the gym, and a woman asked, “Mr. Arrington, is Ben Howland organizing people in Lawnsville to support your election to the school board?” Several Arrington supporters stood, pointed to the woman, and booed when she asked the question. The school principal called for order and turned to invite Mr. Arrington to respond. Obviously displeased that the principal didn’t call the question out of order, Tom Arrington stood to respond, “As I’ve said at the last Candidate Night, I have not asked Ben Howland to support my campaign. As far as I know, he is not involved at all.” When Arrington finished speaking, the high school principal immediately thanked everyone for coming and adjourned the event. 190
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Arrington motioned for the principal to join him away from the rest of the crowd. “Why in the hell did you let her ask that question?” “I’m not here to stop folks from asking what they want to. It’s an open session,” the principal answered, matching Arrington’s firm tone. “When I’m elected, I won’t forget this,” Arrington responded before turning to join his supporters. Hill made his way to the woman who had posed the troubling question to Tom Arrington, “That’s the second time that question has been asked at a Candidate Night. Do you have any proof that Ben Howland is involved in Tom Arrington’s campaign?” “It’s just around that people who supported Ben for mayor are all over town urging people to support Tom Arrington. They haven’t visited me but have talked to a lot of my neighbors,” she said. “What makes you think that Ben Howland is involved?” the Crier publisher pressed. Not backing down a bit, the woman moved closer, “When Ben ran in the city, he had a few that were really close to him, and from what I understand, all of them are pushing for Arrington. They wouldn’t get involved unless Ben asked them.” Hill listened closely, then thought as the woman turned and walked away, There’s just no way to be able to confirm this. Then he decided to use his go-to-the-horse’s-mouth approach on which he had always prided himself. “Ben, sorry to bother you, but it’s the only way I know to get the answer – are you involved in any way supporting Tom Arrington’s campaign for the school board?” “To tell you the truth, I’ve been waiting on the call ever since that question was asked out at West End School,” Howland replied. “I’ve known Tom for a long time. We worked closely together on the council. But I’ve not been out helping him at all.” 191
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The Crier publisher’s ears perked up at a big hole in Howland’s denial. “Ben, have you urged any of your political friends to work or organize on Tom’s behalf?” There was an uneasy silence on the other end of the call. “Well, I don’t know what some of my friends are doing. They can do what they want, but I haven’t been going out working for Tom.” Rick closed by offering Ben Howland space to write a Letter to Editor on what he’d just said. The Crier publisher was not at all satisfied by what he considered a very nuanced, qualified, and carefully crafted denial by Ben Howland. Hell, that doesn’t say anything about what I asked, Hill thought. The primary election was just over a week away, so time was very limited for Rick to check out the validity of the point raised by the questions at the two Candidate Nights. Rick was surprised the next morning when he found Ben Howland at the Crier front door when he arrived. “I decided to take you up on the Letter to the Editor offer,” he said, handing the Crier publisher an envelope. “We’ll try to get it in today, thanks,” Hill replied as he unlocked the office. When reading over the letter, the Crier publisher found that it repeated nearly verbatim what Ben had said over the phone.
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Chapter 38 Curtain Pulled Back And… As the Crier press began to rumble to life that day, Rick smiled as he heard the creaky voice on the other end, “Ben Howland and them are meeting over in Princeton at a meeting room at the Holiday Inn at 7 Thursday morning before Election Day.” Click. Rick nearly burst out laughing at the brashness of the tone and finality of the click as he absorbed the meaning of the message. It could turn this election, he thought, noting that the normal scene of Jordan County election skullduggery (breakfast at the dining room at Bluestem State Park) had given way to the still further out of town Princeton Holiday Inn. Parked in the back of the Holiday Inn parking lot, Hill watched as Ben Howland and Tom Arrington arrived in the Arrington family car. The five others arrived in two cars and entered the out-of-the-way side door of the sprawling Holiday Inn. The Crier publisher waited 10 minutes after the five entered and went in the same door. There were letters above the five closed meeting room doors; Rick didn’t have a clue on which one to enter. Just then two waiters wheeled a cart carrying a coffee urn and pastries to a stop in front of one, opened it, and entered, leaving the door open. Rick stayed in the darkened hallway and aimed his camera into the room between the two waiters. He got a picture of the seven men around the table covered with Arrington campaign signs and brochures without any of the seven men even knowing he was there. The Crier publisher knew he had a top-of-Page193
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One picture that would stun Jordan County the Friday before the 1962 Primary Election Day. Combined with the public denials from both Tom Arrington and Ben Howland, the picture could very well deliver the county’s old-line political faction a body blow in its effort to reclaim control of the Jordan County Board of Education. That was far from certain given the amount of money Beauregard had put into this election to regain the control the old line lost in the 1960 election. If Edwards’ observations were correct, there was nothing (not even the picture) that could derail the old line’s Election Day Express. The Crier publisher gave the roll of film to Al Friday morning. Rick purposely didn’t tell Al what the picture was to see his righthand man’s reaction. “Holy shit,” Al roared as he came through the door of Rick’s cubbyhole office. “How in the hell did you get this one, Boss?” Reared back with his feet on his desk, the Crier publisher laughed and said, “Just plain old clean livin’, Al, good clean living. They didn’t even see me take it.” “How in the world?” Al responded in kind. “My old ace anonymous source,” Rick responded as he took the story to go with the picture out of his typewriter. The story quoted every single denial Tom Arrington and Ben Howland had given about the convicted ex-mayor being involved in Arrington’s board campaign. One particular paragraph was bold-faced so people wouldn’t miss it. The Crier publisher had called both Tom Arrington and Ben Howland earlier that very morning as he was finishing up the story. Again, both denied Howland was in any way involved in the Arrington campaign. Those latest denials were in this story’s third paragraph.
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Convicted Former Mayor Helps Board Candidate With Campaign screamed the eight-column headline across the top of Page One of the Crier. Given the tradition of election blockbuster revelations in this edition over the years, it was one of the Crier’s most-read issues. This one surpassed any of the previous ones, with the line to buy extra copies stretching out the door and halfway down the block in front of the new Crier building. The Crier publisher made sure that “Photo by Hill” appeared just below the lower right-hand corner of the picture. He chuckled at the thought of Tom Arrington and Ben Howland trying to figure out how, first, he learned about the super-secret meeting and, second, then got a picture of it. Incumbent Board President Sam Keaton’s campaign manager bought enough copies to have one posted at every voting precinct in the county. Beauregard frantically called Sam Brown. “Get all our precinct captains at my house for a meeting tonight. This could sink our chances at the commission too.” To Charles’s surprise, the precinct captains didn’t think the picture would have much negative impact. “Folks already have their minds made up. I haven’t gotten one call about this,” said one old-line supporter in charge of a large precinct out in Jordan County. Another added, “I haven’t heard anything either. Our folks are ready to vote; nothing can change their minds.” Nearly all the others nodded in agreement. After the meeting, Charles and Joe Brown sat down to discuss how the meeting went. “Joe, from what they said, we might be in better shape than I thought after this,” Charles said. Joe nodded in agreement, “It’s amazing to me; I was sure that the picture and story would give us trouble all over. Tom has been caught in a lie he’s repeated over and over. Our guys have 195
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their ears to the ground from one end of the county to the other, and it seems this stuff in the Crier is just a dud.” Maintaining his optimism, Charles held strong, “They all can’t be wrong. I think the money and organization we have on the ground will carry us on Election Day. We’ve increased the budget in every precinct, especially those with heavy buys.” Joe Brown responded, “You’re right; we’ve never had such an effort countywide.”
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Chapter 39 When Sunny Means Dark The sun rose brightly on Election Day, polls opened, and voting was brisk – significantly more than the normal “off-year” primary. Charles and Joe’s confidence grew all day as reports from normally solid old-line precincts noted heavier than usual turnouts. In the high-ceilinged Jordan County Courtroom, Beauregard sat at the center of the old-line backers, concentrating on the commission race that appeared to offer an opportunity for the faction to again control the Jordan County Commission. Oldliner Bill Joe Hamrick was trying to regain the commission seat he’d lost in the 1960 disaster that swept the old line out of control of both the County Commission and the Board of Education. The incumbent reformer Commissioner Lacy Little was lowkey and known and respected for his commonsense approach to addressing county problems. However, his lack of “presence” on the campaign trail gave the old line confidence that control of the county commission was at hand. Given the usual low voter turnout in off-year primaries, Beauregard was concerned about a large turnout among the Hammer and Marcum families in opposite ends of the county. After years of estrangement, the two clans inexplicably came together in the 1960 primary to play a major role in administering an old-fashioned ass-whupping to the old line. Joe Brown had assured Charles that there was no evidence that the two families
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would again rise up to oppose old-line candidates. Of course, there was no evidence that they wouldn’t either. After years of not associating, the two clans came together when they learned in the 1960 campaign that Bell and Beauregard hatched a scheme to promise the same high school teaching job to granddaughters in both families. Somehow, the family patriarchs found out about the double cross and made sure their families turned out in record numbers to vote against all the oldline candidates. But this time, Charles was breathing easy as he watched Bill Joe Hamrick build up a slight lead as the votes came in from Lawnsville and some of the out-in-the-county precincts. Joe Brown did point out that the six precincts (Hammer’s three in the southern end of the county and the three Marcum precincts in the northern end) had not yet come in. Holding true to form, those six precincts were among the last to report to the Jordan County Courthouse and were the last six this Election Day. But Joe wasn’t worried because the reports he had gotten in the morning and afternoon indicated that turnout in all six was significantly below what it had been in prior elections. The question about whether the two large clans had no interest in this election or had forgotten the old-line double cross two years ago was quickly answered as the tallies from the six precincts were announced – Bill Joe Hamrick had gotten less than 35 percent of the vote in the six precincts where most members of the Hammer and Marcum clans cast their ballots. Joe Brown was so stunned that he asked the County Clerk to repeat the vote count for the six. The last late afternoon reports Joe received about the six precincts reflected a very low turnout. It didn’t reflect the strategy that came out of a conversation the two patriarchs – Basil Hammer and Edward “Big Ed” Marcum – had early the morning before Election Day: hold off voting until the hour and 198
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a half before the polls closed. The old line would think the two families were not interested in the outcomes this Election Day and would not have any time to react when the hundreds of late voters descended on the six precincts. Jordan County’s old-line faction had failed and failed miserably to regain control of either of the county’s two governing bodies. When the votes from the precincts began to be announced in the cavernous courtroom, it didn’t take long to see how the Board of Education race would end. Tom Arrington carried only one precinct – his own – and that by just five votes. But unbeknownst to Beauregard, this latest election debacle would be the least of his worries in the coming days, weeks, and months.
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Chapter 40 Lot of pluses, plus more pluses could = ZERO The U.S. attorney addressed his assembled staff of Assistant U.S. attorneys, investigators and U.S. Marshals. “In my 25 years as a federal prosecutor, I was never more certain of a conviction than the bribery case we put together against Beauregard. He was acquitted. I’m not sure I’ve ever spent as much time on a single case as that one. And he was acquitted. “While investigating those bribery and voter fraud cases, we became aware of other aspects of Mr. Beauregard’s activities that raised red flags more than a year ago,” he continued “As we turned over the rocks, the case grew. We are now investigating seven different activities of Beauregard, which could be criminal. The underlying thread that seems to connect them all is cash payments which could lead us to income tax evasion over a number of years. “Presently, we have three teams involved. I would expect in the next three months I will appoint one of you to coordinate the different aspects and bring it all together. Our plan is to present to the grand jury, which will convene in six months. “As we found out in Beauregard’s trial for bribery, he’s a slippery one. He’s extremely cautious and uses layers of deception to protect himself. “We have solid evidence about Beauregard’s paying $50,000 cash for an interest in the beer distributorship in northern West Virginia and the $150,000 cash purchase of the beachfront house in Myrtle Beach and paying off the $50,000 mortgage balance 200
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on his Lawnsville home. His income tax returns for the 15 years prior to those transactions don’t show income to allow for such cash payments. “Those could result in prison time for him if we can get a conviction. But we might not have strong enough evidence to successfully criminally prosecute for these crimes – or our other suspicions – kickbacks on state furniture purchases and the Flower Fund scam. “Our discussions with the president of the company that had the state furniture contract before Business Management has provided some interesting information which we are in the process of developing. Not sure if there’s strong evidence there. “However, the Flower Fund is proving to be much, much more difficult. Our primary concern is for Beauregard to be tipped off if we approach state road county garage employees, county road supervisors, or the regional collectors to testify that, indeed, such a scam is being perpetrated. “We will have to be very cautious here. To be safe we’ll hold that to be the last part of our investigation,” the U.S. attorney explained to his senior staff. Completely frustrated, the U.S. attorney was, for what seemed like the hundredth time, thumbing through the voluminous file when he turned over a page and came face-to-face with the Lawnsville Crier story that alluded to the fact that the state road Flower Fund might have been resurrected in the last year or so. Willing to try anything to breathe the breath of life into this part of the investigation, he took a business card from the pile on his desk and dialed the number in the town overlooking the ancient river. “Lawnsville Crier, Hill, how may I help you,” came the enthusiastic greeting. “You might not be so happy when you hear why I called,” the U.S. attorney said in an uncharacteristic tone that reflected his pessimistic state of mind. 201
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“My, my, you sound like you just came from your own funeral,” the Crier publisher responded. “From the way you sound, I doubt I can do anything to cheer you up.” “To be honest, I’m not sure you can either,” the federal prosecutor responded dejectedly. “Well, hell, at least I’ll listen to you,” Rick said. “I can’t discuss this over the phone. Is there any way you can come to Charleston in the next couple of days?” the U.S. attorney said, pleading without any hope in his voice. “It might be worth the trip just to hear what’s on your mind. Day after tomorrow could work. About 8:30?” “I’ll clear my schedule. It won’t take long to explain what I have in mind. See you then.” What in the world? Hill ruminated as he thought about the U.S. attorney’s almost mournful tone. “To you, that might seem a simple request. To me, I got to talk someone into not only pulling a scam that, in all likelihood, will cost them their jobs, but tell them they have to testify before a federal grand jury and then in a public trial that’ll be covered by every newspaper and television station in the state,” the Crier publisher said, shaking his head. “That’ll be nearly impossible, and it sets me up as a stoolie for a federal prosecutor.” Standing up and walking to his window looking up toward the Capitol, the U.S. attorney said, “We have been working on this for months and have not been able to come up with any other way to get the evidence to make the case credible. Even this is a long shot.” Hill said, “I’m willing to talk to the folks I interviewed for that Flower Fund story and let them know you’ve approached me. But if they agree to talk to you all, I’ll need your top investigator and an Assistant U.S. attorney to explain to them exactly what you’re asking.” “Agreed,” the U.S. attorney said, amazed that he was able to get this much. 202
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During the two-and-a-half-hour drive back to Lawnsville, the Crier publisher thought about the U.S. attorney’s request from every angle. Not answering any of Edwards’ barrage of questions, Hill prevailed on the reformer faction leader to have Rick’s two anonymous sources for the Flower Fund story to be in Mrs. Edwards’s kitchen the next evening. While the two knew each other as co-workers, they did not know that the other was also an anonymous source for the Crier story. So the meetings in the Edwardses’ kitchen would be two hours apart. Rick thought he’d lose Baxter when he explained that Baxter would not be allowed in the kitchen while the Crier publisher presented his “sticky proposal.” “Damn, you get me to have these two come in again, then I leave the room when the good stuff is explained,” Baxter mildly complained, knowing that this must be important given the precautions Hill had put in place. Checking in with the U.S. attorney the afternoon before the evening meetings, Hill confirmed that his role would only be to ask the two to meet with an investigator from the U.S. attorney’s office concerning what they knew about the Flower Fund.
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Chapter 41 Putting it All on The Line The Crier publisher expected the two county state road garage employees to turn down his request flat. It was one thing to be an anonymous source. However, it was something else altogether to testify in public at a trial. Rick was certain his request would bring an immediate negative response. As is customary at meetings in Baxter’s mother’s kitchen, a plate of warm, freshly baked cookies dominated the center of the large oak table. Rick was surprised at how calm the first man was. He seemed very interested to know why he had been asked to meet again with the Crier publisher. The answer came quickly. “I’ll be glad to meet with the investigator. I get pissed every payday when I have to give the boss part of my paycheck. It’s just a crock.” Rick was equally surprised when the second man reacted the same way. “It’s just not right – them making me pay money to keep my job. It smells to high heavens, but I don’t have a choice. Truth be told, I can’t make it without this job,” the second man seethed. “But I’ll talk with the investigator, won’t hurt none.” Two nights later, the federal investigator sat across the table from the first of two state road employees he would talk with in Mrs. Edwards’ quaint little kitchen. “We are seeking individuals who can testify that state road employees have to contribute to the Flower Fund in order to 204
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keep their jobs. We understand that you have that knowledge. Is that true?” the federal agent asked. The young state road employee became a bit nervous, “Is what I say to you secret?” “Yes, this conversation will not be made public,” the investigator assured. “I am requesting that you testify before a federal grand jury about how the Flower Fund operates at the county state road garage.” “Testify – what exactly does that mean?” the fidgety young man asked. “If you agree, first you would talk to an assistant U.S. attorney and tell them what you know. If that’s what we need, then you would appear before a federal grand jury, take an oath and tell what you know. “Then, if the Grand Jury indicts someone involved in the Flower Fund, you would be called to testify in an open trial,” the investigator explained. “Any questions?” Looking around the kitchen, the state road employee asked, “Just how big is this Flower Fund thing? I just thought it was in Jordan County.” “We believe it is statewide and takes tens of thousands of dollars from state road workers every payday,” the investigator responded. “It’s not right, it’s not legal, and we’re working to stop it.” With a look of amazement, the young state road employee shook his head, “I never thought it was that big. I can’t do it – hell, they’ll fire me sure. It’ll be tough finding another job.” The second conversation was even more disappointing for the federal investigator. This state road employee said, “Hell no, I’m going to get close to this – it’s a mess and will sure cost me my job. Forget about me,” as he got up and left Mrs. Edwards’ house. Driving back to the state capital, the federal investigator wondered, Without the testimony of someone at the grassroots of 205
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the Flower Fund, we don’t have a case. He knew the following day he’d have to report these dismal facts to the U.S. attorney. The next morning, while sitting at his cheap governmentissued desk getting ready to give the bad news to his boss, his phone rang. Without any introduction, the first man he talked to the night before blurted out, “My wife and I talked until after midnight. I’ve got to do the right thing. I’ll do whatever it takes to get those crooks. And I might know someone in Franklin County who might do it too.” The instant the stunned federal investigator hung up the phone, it clanged to life again. It was the now no-nonsense tone of the second state road employee he interviewed the day before that had the investigator throwing his initial report for the U.S. attorney in the trash with a broad smile on his face. Pleased with having the low-level employees agreeing to testify, the U.S. attorney turned pessimistic as the report moved up the state road organization chart. “Now we have to find a county supervisor or two and at least one division collection to ‘roll over’ for us,” the U.S. attorney said after hearing the investigator’s report. “Review the backgrounds of both the county supervisors and the collectors and see if we can identify some that might do that. Seems those near retirement might be the most likely. We need enough to show a pattern,” he instructed the investigator. In the back of the room, one of the younger assistant U.S. attorneys raised his hand, “I got an idea that might speed things up. We’ve got pictures of division collectors taking the envelopes from the county state road garage supervisors. Why don’t we go to a couple of division guys and a county supervisor or two, show them the pictures, indicate that we know what’s going on, and offer them a deal if they testify? We could tell them if they tell anyone about our approaching them, they could be charged with impeding a federal investigation.” 206
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Observing the nodding heads around the table, the U.S. attorney smiled, “It’s a long shot. But hell, it’s better than anything else we have. It might just work. Look over the lists for some that might be in debt or have been in trouble with the law before. I’d like at least five county supervisors, all from different divisions, and about three of the division collectors. We’ll meet in a week.” Back in his office, the enthusiastic countenance that the U.S. attorney had shown his staff was gone. “Secrecy” was the thing that had allowed the Flower Fund scam to survive for decades. The heavy odds are against us coming up with evidence we need to convict, he thought as he slumped in his chair. As he walked into the meeting with his staff the following week, the U.S. attorney was not optimistic. There’s just no way anyone will roll over, he thought. He had to admit, his staff ’s rationale for selecting the ten-county state road garage supervisors and four division collectors was thorough – some were in debt, others were near retirement, and several had had run-ins with the law in the past. His confidence was not high that the efforts would work as he approved his investigative team to begin contacting the 14 state road employees over two days. The targets would be informed that calling any of their colleagues about the investigators’ visit could result in them being charged for impeding a federal investigation. The contacts would be made at the targets’ homes – away from work.
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Chapter 42 Worth 10,000 Words!!! The plan conjured up by the U.S. attorney and his staff was for the federal investigators to show the county supervisors the photograph of them handing the envelope to the division collector on two separate state paydays. The division collectors would be shown photographs of them taking envelopes from all the county supervisors in their respective divisions. In addition, the division collectors would be shown a log of the times they took the county envelopes and arrived in Charleston and met with Beauregard on each of the two state paydays. As a result of the visits by the federal investigation, those who were the targets would see they could be charged with serious crimes if they didn’t agree to testify before the federal grand jury and at the trial. To maintain “lock-down” security, the investigators didn’t make any preliminary reports to the U.S. attorney’s office during the two days they were on the road visiting the targets. The report of the visits would be made to the U.S. attorney the morning following the completion of the interviews. The U.S. attorney couldn’t remember two more stressful days than those while the investigators were on the road. He couldn’t read the faces as the lead investigator and his field staff crowded into the U.S. attorney’s small conference room. The lead investigator had the full attention of his boss. Known for his bluntness, the lead investigator didn’t waste any time getting to the point, “This turned out better than we 208
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could ever expect. We did not get one outright turndown – two of the county supervisors said they’d have to think about it, and the division collectors all said they would testify. “Bottom line: they felt trapped. The photographs sealed the deal from the git-go,” he explained. “When we showed the division collectors the pictures of them at each of their county garages, they were worried. But when we showed them the log of visiting Beauregard’s office, they fell all over themselves agreeing to testify.” “We didn’t accept their offers until we explained in detail what exactly we were asking them to do. “The county supervisors all seemed uncomfortable taking the money from their people, but they saw it as a necessary part of their jobs. The rationale was it provided money for the campaigns of the people who gave them the jobs in the first place. “Pure and simple, both the county supervisors and the division collectors saw our offer as a way to keep out of jail. “Further, each of the county supervisors gave us the names of two or three of their employees who they thought might testify about giving him the money each payday. It seems most of the workers hate the hell out of the Flower Fund ‘contribution.’” The U.S. attorney was happily surprised at the results. He ordered his staff to move forward with preparing for the federal grand jury, which would convene in a little over a month. The federal grand jury returned the Flower Fund indictment against Beauregard promptly. Hill sensed that big news was on the other end of the line when his phone rang with the morning’s first call, “Be at 201 Bluestone Avenue in 15 minutes,” blurted out the U.S. attorney’s public information officer. The Crier publisher rushed out of this office and yelled at Al to grab a camera and get in the Crier car right outside the front door. 209
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They arrived in front of Beauregard’s house just as two blandlooking federal sedans pulled up in front. Four agents – three carrying shotguns – got out and moved to the front door. Charles came to the door already dressed for the day’s work. He was put into handcuffs and walked toward the cars to be transported to a hearing before a federal magistrate in Charleston. One of the agents handed Al a copy of the indictment. “Holy shit, it’s for his operating the Flower Fund,” Al yelled as if Rick was 100 yards away. The line to buy this Crier edition was in front of the counter, out the door, and halfway down the block. A picture of the political kingpin in handcuffs was across the top of Page One. Beauregard Arrested For Operating Flower Fund Shakedown of State Road Employees Three months later, Beauregard’s trial had the cavernous federal courtroom at standing-room only. The crowd was drop-dead quiet as each of the 30 state road employees (regular employees, county supervisors, and division collectors) told the enthralled jurors of their role in the statewide scam that forced contributions from state road employees at every county garage in the state.
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Chapter 43 The Envelope Please The employees told of giving cash to their respective county supervisors. The county supervisors told of giving the envelope to the division collectors. And the division collectors detailed how they delivered the envelopes from their counties to Beauregard in his Charleston office at the state road headquarters. If a poll had been taken of the courtroom crowd, at least 95 percent would have said they were 100 percent certain of guilty verdicts. After the strong closing argument was presented by the U.S. attorney, Beauregard’s chief defense attorney slowly and deliberately got up from the table, patted Charles on the shoulder, and approached the jury. “Ladies and gentlemen, I must apologize for this waste of your time. The federal case is a farce. Mr. Beauregard is charged with running a statewide shakedown involving tens of thousands of dollars, but no evidence was presented to show Mr. Beauregard with any cash – not one dollar. Regular employees said they gave money to their supervisor. The supervisors said they put the money in an envelope and gave that envelope to a division collector. No one testified that they saw the supervisor put money in an envelope. None of the division collectors testified that they gave cash to Mr. Beauregard. These collectors never saw any cash. They merely testified they gave the envelopes to Mr. Beauregard. But not one of them said they saw cash in those envelopes. And further, not one, not one testified that they saw 211
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Mr. Beauregard with any cash. There’s only one verdict you can return – not guilty.” The Crier publisher was jarred by this closing argument – it was almost a word-for-word replay of Beauregard’s trial from bribing the governor. In that trial, nobody could directly connect Beauregard with the $10,000 cash given to the governor. In that case, both the governor and Bell were convicted, but Beauregard – who many felt was the mastermind of the bribery scheme – walked out of the courtroom a free man. After the judge gave the Flower Fund jury brief instructions, the jurors left to begin deliberation only to return to the courtroom after only 32 minutes. The standing-room-only crowd erupted when the words “not guilty” came from the forewoman’s mouth and reverberated from wall to wall and off the towering ceiling in the federal courtroom. Beauregard, celebrating with his lawyers, turned toward Hill, smiled, and gave a smirky wink. As Charles turned to leave, the crowd became silent as three U.S. marshals split the crowd as they walked in lockstep down the courtroom’s wide center aisle – one carrying legal papers.
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Chapter 44 Always Have More than One Basket The marshal with papers went up to Beauregard and asked, “Are you Beauregard?” Upon Charles’ response, the officer announced, “Mr. Beauregard, you are under arrest for income tax evasion. Please accompany me to the U.S. magistrate’s office for a hearing.” Another of the federal agents handcuffed the stunned Jordan County political power, who walked up the aisle surrounded by three federal law enforcement officers as the gobsmacked crowd buzzed. The U.S. attorney’s public information officer came over and handed the Crier publisher a copy of the tax evasion indictment. Beauregard Not Guilty in Flower Fund Scam; Immediately Arrested For Income Tax Evasion It was evident that the U.S. attorney had not put all his eggs in one basket. Right after he ordered one assistant U.S. attorney to move forward with the Flower Fund case, he had ordered another to move forward at full tilt to prepare presentments on income tax evasion to the same federal grand jury session that handed down the Flower Fund indictments. The latter case was much more complicated than the Flower Fund case. It involved comparing Beauregard’s federal income tax returns over a number of years with his lifestyle (making cash payments of $50,000 for half-interest in a beer distributorship, $150,000 to buy a beachfront house, $50,000 to pay off the mortgage for his Lawnsville home, and paying cash every other year for new automobiles for his wife and two children). 213
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After the indictments were announced, federal search warrants would be executed for Beauregard’s three safe deposit boxes at the Lawnsville bank. The reason for the delay is that since the owner of the safe deposit boxes had to be present when they were opened, Charles would be tipped off if the searches were done prior to the the indictments for income tax evasion being announced. As Beauregard was standing before a federal magistrate in Charleston, bank officials in Lawnsville were handed an order to seal his safe deposit boxes until the next morning when federal prosecutors and Mr. Beauregard would appear to inspect the contents. That evening Hill got a call from Edwards, who had gotten a tip from a bank employee friend about the bank sealing the three safe deposit boxes and the search warrant to be executed sometime the next day. The Crier publisher got to work earlier than usual the next day and immediately called the U.S. attorney’s office to find out what time the opening of the safe deposit boxes would occur. “I guess I owe you that – it’ll be about 11 o’clock,” the U.S. attorney said and chuckled. Hill then called his contact at the bank and asked to stop by about 10:30 to discuss the Crier accounts. No mention was made of the federal search warrant. The Crier publisher showed up for the appointment with his camera in hand. He would be ready when the federal prosecutors, U.S. Marshals, and Beauregard and his lawyers arrived. Al Dill, camera in hand, was in the bank lobby in line, supposedly to make a deposit. As the group, including a sullen-faced Beauregard, walked across the bank lobby on the way to the safe deposit box vault, Al got the picture and scurried out the door as a U.S. marshal came toward him, motioning for the camera. The Crier publisher steered the conversation about the Crier accounts, so it concluded just as the Beauregard group was 214
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crossing the bank’s lobby and headed toward the safe deposit vault. He was signing in to visit his own safe deposit box just as the group entered the vault. Hill took a desk in the corner of the vault opposite where he thought the group would be. However, after Beauregard signed in to visit his safe deposit boxes and gave his keys to the vault attendant, the group went to a small conference room off the bank’s lobby. Three bank tellers filed out of the vault, each carrying an unopened safe deposit box. Rick snapped a picture of the procession. There were curtains on the small conference room windows facing the bank lobby, so Hill could not observe what was going on. The Crier publisher sat in a chair in the lobby opposite the conference door, camera at the ready in case the door was opened during the secretive goings-on. He was disappointed when he got no opportunity for such a shot. Finally, the door opened, and three members of the U.S. attorney’s staff came out with the safe deposit boxes and placed them in the trunk of one of the bland government cars in front of the bank. A dejected Beauregard came out the door with his attorneys and departed the bank. When Hill got back to the Crier office, the first person he ran into was a broadly smiling Al Dill. “What are you so sad about?” he asked his boss. “Hell, I couldn’t get a picture of what was going on in that conference room.” Al chuckled and said, “You should have come over to the Widow Browning’s dining room window; it’s right across the alley from the window of that bank conference room.” Hill perked up. “You didn’t.” Turning over a picture on Rick’s desk, he smiled, “You bet I did. Good thing you bought that telephoto lens last month.” The Crier publisher laughed out loud as he studied Al’s picture. “The U.S. attorney will go ape-shit over this one – the whole town will be clucking.” 215
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Al couldn’t contain himself. “Just an old country news reporter doing the best he can.” Feds Seize Beauregard Safe Deposit Boxes Filled with Thousands in Cash jumped off Page One of the next day’s Crier with a fourcolumn picture from Mr. Browning’s dining room window showing a pile of cash in front of the opened safe deposit boxes with an obviously depressed Beauregard watching as the bank teller who counted the money – a stack of $100 bills clearly visible. A lot of folks in Lawnsville suspected Beauregard made some money off his political activities, but they were stunned when they saw the pile of $100 bills. Seeing the table covered with thousands of dollars, many felt used. They had supported the old line for years and worked hard to get its candidates elected. The line of folks waiting to get an extra copy of this Crier edition stretched up the sidewalk. “Damn, that’s a lot of money,” “Where did he get all that?” and “He just used us” were among comments heard over and over. A couple of days later, the picture caused just as much of an uproar in the U.S. attorney’s office. “How in the hell did Hill get this picture? Now I know why he asked how much money was in Beauregard’s safe deposit boxes the day we opened them. He wouldn’t have believed the total if I’d answered his question. I was even surprised – $375,000! Now, I believe Beauregard has other safe deposit boxes around. We need to get a search warrant as soon as possible for his home office to see what records he might have, including for other safe deposit boxes,” the U.S. attorney instructed his top investigator.
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Chapter 45 Diamond at the Bottom of the Pile The following afternoon two federal sedans pulled up in front of 201 Bluestone Avenue in Lawnsville. Two U.S. marshals and two federal investigators got out. One of the marshals presented the search warrant to Beauregard, who led the four to his home office. He opened his safe and stepped back to watch. Specifically, the federal agents were looking for “any property records or bank records that reflected transactions and/or business dealings by Beauregard.” Prepared to spend several hours going through Beauregard’s file cabinets, the federal agents found what they were looking for and more in the first ten minutes. The U.S. attorney’s suspicions were correct. Keys were found for safe deposit boxes in three different banks in different parts of the state. The lead investigator had no doubt that he would be visiting the three banks in the very near future. Feeling the job in searching Beauregard’s home office was done, one of the agents dropped a tattered file folder on the floor when putting material back in the safe. Certain there was nothing of significance in the folder, but just to be safe, the agent opened it. In the front, he found some clipped-together property tax receipts from the City of Boca Raton, Florida. Upon close inspection, the agent found the receipts went back several years. “Oh, those are just some old papers, not important at all. Hell, not even sure why I kept them,” Beauregard said, stepping forward and reaching for the papers. 217
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Understanding the potential importance of the tax records, the agent pulled them away from Beauregard’s grasp, “Oh, I think we’d like to look at these back at the office.” With alarm on his face, the Jordan County political kingpin stepped back, fully aware the papers would reveal another transaction that would considerably strengthen the federal income tax evasion charges against him. The next morning, the agents put the stack of receipts and three safe deposit box keys on the U.S. attorney’s desk. As the U.S. attorney causally went through what he thought were property tax receipts, a folded piece of paper fell on the floor. Wondering how this odd-sized piece got mixed in with the tax receipts, the U.S. attorney carefully unfolded it and became fully focused when the word “Deed” was revealed. The legal description on the deed matched the property identification number on the tax receipts and included the purchase price of $350,000. The deed transfer was dated three years ago. He pressed the intercom as he re-read the deed, his voice suddenly rising, “Get Tom and Joseph in here now.” “I need you to fly to Florida as soon as possible and get certified copies of these receipts and any other records. See if you can locate the previous owner of this property, the real estate agent, and the settlement attorney. And take plenty of pictures of the house. The key is to be able to document if this was a cash transaction.” “Boss, we’re going to need another day or two. Folks down here are real close-mouthed. We’ve talked to the settlement attorney – he’s claiming attorney-client privilege. We’re going to try again tomorrow. Real estate agent is out of town and won’t be back until tomorrow. Also, tomorrow we’ll be hitting the county clerk’s office to check on the owner that sold it to Beauregard.” “Take whatever time you need. Explain to all of them that we will go to whatever lengths necessary to get their cooperation,” the U.S., attorney concluded. 218
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The settlement attorney was a bit more friendly during the second visit by the two federal investigators. “I remember it well. I’ve never had a settlement like that one. When Mr. Beauregard said ‘cash,’ I thought he meant he was going to bring a cashier’s check to the settlement. Well, he walked in with a briefcase filled with $350,000 cash. The seller and real estate agent just about walked out until I assured them it was legal. The settlement was in the afternoon, so the seller had to call his bank to make sure someone would be there for him to stop by and make the deposit. The bank was just across the street from my office, but he was afraid something might happen as he crossed the street. It was quite a settlement.” The lead agent asked, “So you saw Mr. Beauregard make the payment?” The attorney shifted in his chair, knowing his answer could lead to some uncomfortable news coverage. “This could very well fall into the category of attorney-client privilege.” Ready for the dodge, the lead federal investigator fired back, “No, it doesn’t. While you were hired by the seller, you did not represent either the buyer or the seller. You were the settlement agent, and further, on the witness stand, you will be asked whether you saw Mr. Beauregard give the cash to the seller. Not about any discussion you had with the seller.” The settlement attorney realized his refusal to testify would result in taking on the federal government, “Of course, I’ll cooperate in any way I can.” The real estate agent also remembered the settlement. “I have been in the real estate business for more than 30 years, and I have never seen anything like that one – a briefcase filled with $350,000 cash. Mr. Beauregard acted like he did that every day – it was all unreal,” he said as he slid across the desk a slip of paper with the seller’s name, address, and phone number. “I was reluctant to agree to the cash sale until he threw a $5,000 ‘consultant’ fee my way as an incentive. Mr. Beauregard 219
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explained to him cash deals ‘just made things simpler.’ It certainly seemed that he had a lot of experience with large all-cash deals.” The lead agent perked up at that, “Did he mention anything specifically?” “He said it was easier to do an all-cash real estate deal in Florida than it was in South Carolina despite the fact the one here was nearly twice as much. I believe he said several years before,” the real estate agent explained. With the addition of this Florida deal, the total of Beauregard’s all-cash deals were well over $1 million, and that didn’t include the all-cash purchase of cars for himself, his wife, and two children. At the same time he dispatched investigators to Florida, the U.S. attorney sent others with search warrants to the three banks from which safe deposit box keys were found in Beauregard’s home office. Because Beauregard had to be present when the boxes were opened, it took nearly two weeks to coordinate and complete this facet of the investigation. The U.S. attorney was not at all optimistic about finding any meaningful evidence in the three boxes since records showed Beauregard had not visited any of them in nearly two years. He was floored when each of the boxes had over $75,000 cash, with the total reaching nearly $265,000. That brought the total in Beauregard’s six safe deposit boxes to $640,000 cash. Because of these latest revelations, the IRS had to re-work its comparison of Beauregard’s lifestyle compared to what he had reported on his federal income returns over the last 15 years. As expected, the federal grand jury indicted Beauregard for federal income tax evasion. Remembering how Beauregard was found not guilty in the two previous open-and-shut cases – the bribery trial and the more recent Flower Fund case, the U.S. attorney restrained his optimism for convictions on the income tax evasion charges. If 220
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convicted on all counts, the Jordan County political crook could face 15-20 years in federal prison. The U.S. attorney’s staff was constantly working with the IRS to review minute details of each aspect of the income tax evasion evidence to eliminate any slipups in the prosecution of those cases. In fact, the U.S. attorney had turned down flat two attempts by Beauregard’s lawyers to negotiate plea deals. They wanted to settle the case with Beauregard to pay an amount for back taxes and not face any prison time. Negotiations were a bit tense at times. At one heated meeting with the defense attorneys, the U.S. attorney, after nearly laughing out loud at the outrageous offer, blurted out, “Your client is a crook, and he’s going to spend a lot of years in a federal prison for what he’s done.” The trial was expected to last no more than two days, and some expected it to be over in just a day.
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Chapter 46 Taxing Can Be Taxing After the opening arguments, the prosecutors had seven large easels placed in front of the jury box. On three were placed posters containing enlargements of 12 federal income tax returns for Beauregard, and on the others were placed the allcash real estate and beer distributorship purchases. A separate poster had the automobiles he’d purchased from the Lawnsville automotive dealership, which supplied nearly all of the vehicles bought by Jordan County. Every other year, Beauregard bought four well above-average-priced cars (for himself, his wife, and two children) from 1955 and paid cash for a total of $126,000. The assistant U.S. prosecutor was meticulous in leading the jurors through Beauregard’s federal tax returns that showed income – (growing from $20,000 to $30,000 over the years) – from the middle management positions Beauregard held in the state road department during most of those years. For the two years he had been a partner in the beer distributorship, he reported no income. For the years he did not work for the state because Republican governors were in charge, the income level was the same from his brother-in-law’s Lawnsville real estate agency. The lead assistant U.S. attorney was certain that nearly all members of the jury did their own federal income returns and figured their own taxes and made sure to pay the correct amount. Smoothly he moved on to the next set of posters which showed all cash real estate and beer distributorship purchases Beauregard made over the same period. Just before he began this part of his presentation of evidence to the jurors, he called 222
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a federal photographer who had taken photographs (inside and out) of each of the properties. The photographs showed luxury beachfront houses with expensive furnishings. For the beer distributorship, the photographs showed six large, relatively new delivery trucks on a rail siding next to a large warehouse completely filled with pallets of beer cases and kegs and a map of the ten countries in which the beer distributorship served several hundred customers. As he led the jurors through the list of purchases, the federal prosecutor passed the photographs to the panel. He used the same procedure to present evidence about the automobile purchases. The cars were not the average Ford or Chevrolet but the higherpriced Cadillacs, Buicks, and Oldsmobiles. It was evident to Hill that the federal prosecutor had connected with the jurors and had their full attention. Next on the witness stand was an IRS statistician who would deliver the most complicated aspect of the federal case. The focus of this testimony is to explain what income level was reflected by Beauregard’s lifestyle – paying cash for homes in Myrtle Beach, Boca Raton, and Lawnsville, cars for his family, and the beer distributorship. Further, federal investigators would testify that they were present when Beauregard’s six safe deposit boxes (three in Lawnsville and three others around the state) containing a total of $640,00 were opened. In questioning each witness, the defense asked a single question, “Where did the cash come from?” Of course, the answer from each of the federal law enforcement officers/investigators and IRS agents was “I do not know.” While this strategy by Beauregard’s defense attorneys provided some courtroom drama, it did not alter the fact that the cash was found in Beauregard’s safe deposit boxes and totaled more than what he claimed on his tax returns for the last 15 years. However, the repeated negative answers forced by the defense attorneys’ strategy greatly concerned the federal prosecutors. 223
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They remembered how a similar strategy had resulted in Beauregard’s acquittals in the bribery and Flower Fund cases. In strong closing arguments, the U.S. attorney uses the poster boards to remind the jury of Beauregard’s lifestyle compared with the amounts shown on his federal income tax returns. Defense attorneys emphasized the only argument they had, “Where did the cash come from?” They read the names of 20 different prosecution witnesses who “despite their over 400 cumulative years of law enforcement experience, could not identify the source of this money.” It alarmed the federal prosecutors that the jurors were focused so intently on the defense attorneys as they made this point over and over. Beauregard, with a confident look, turned during his lawyers’ closing argument with a smirky smile and looked directly at the Crier publisher. Once the defense attorneys completed their closing arguments, the federal prosecutors approached the jurors for a final time. Again, they put in place the easels and posters displaying the evidence against the Jordan County political kingpin. “Ladies and gentlemen, this information clearly shows that the defendant’s lifestyle is not reflected in the federal income tax returns he filed in the last 15 years. These photos show plush beachfront houses, a luxury Lawnsville home, and a very profitable beer distributorship. Charles Beauregard paid for with more than one-half million dollars in cash. One-half million dollars – cash. “That would require an annual income of more than $250,000. $250,000!!! We might not know where he got the cash, but we know he also had $640,000 in cash in his six safe deposit boxes. “While we all pay our federal taxes that are due and on time, this evidence shows that for the last 15 years, the defendant Beauregard deliberately conspired to not pay what he owed 224
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in taxes to live in this great nation. These were not innocent mathematic errors. These were deliberate actions to defraud the federal government of taxes which were due,” the federal prosecutor concluded, cleverly comparing Beauregard’s crimes to how the law-abiding jurors paid their fair and just federal taxes. The jurors file out of the courtroom to begin their deliberations after the judge’s detailed instructions. Beauregard carried on a conversation with his attorneys that was laced with frequent laughter, showing not a care in the world as the jury decided his fate. In less than 30 minutes, the bailiff who had been posted outside the jury room returned to the courtroom and handed the judge a slip of paper. That caused a ripple of conversation among the now-small crowd in the courtroom that spread outside down the hall. The standing-room-only trial crowd quickly returned, jamming every inch of the cavernous federal courtroom. The solemn jurors filed in and took their seats. Matching the mood of the jurors, the judge asked, “Have you reached a verdict?” “We have,” the forelady answered as she handed a sheet of paper to the bailiff. Turning to the defense table, the judge said, “Will the defendant rise and face the jury?” A confident Beauregard rose and, smiling, faced the jury. “What say you?” “We, the jury, find the defendant Beauregard guilty of all charges,” the forelady said in a clear, firm voice that carried to every corner of the courtroom. “No, it’s wrong,” Beauregard wailed as he recoiled and fell back into his chair. The judge reacted, “Order in the court. Bailiff, take the defendant into custody.” 225
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When the roar quieted, he added, “Sentencing will be in two months. Court’s adjourned.” The stunned crowd watched as one of the state’s most powerful and feared political forces was led from the courtroom handcuffed between two uniformed U.S. marshals. Beauregard would be out on bail in an hour or so, but the sight of him in handcuffs made an impression on those in the courtroom. As he watched the stunned and seemingly broken and handcuffed Beauregard being led from the courtroom, the Crier publisher could not help but think of the biblical-inspired saying, “What goes around comes around.” Beauregard Convicted of Federal Income Tax Evasion; Faces 15-20 Years in Federal Prison screamed off Page One of the Crier the following day. Since nearly all Jordan Countians expected a repeat of the not-guilty verdicts in the bribery and Flower Fund trials, they paid little attention to Beauregard’s federal trial on income tax evasion. When word of the verdict began to circulate in Lawnsville the next day, folks headed to the Crier office, spilling out onto the sidewalk and into the street. In anticipation, the Crier publisher, fortunately, had increased the press run by 500. The carrier who sold the paper at the courthouse had already come back twice for more copies. Former Crier publisher Joseph Ballengee came into Hill’s office panting from nearly running from his house six blocks away to verify what he was certain was an unfounded rumor about his friend of some 30 years. “He could get 20 years for this. The sentencing will be in about two months,” Hill informed his predecessor. Shaking his head, Ballengee responded, “Surely the conviction will be overturned on appeal. Charles is just too careful.” “Joseph, the evidence was overwhelming. They had dates of the cash real estate transactions, photographs of the houses, and 226
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the $640,000 in cash they found in his six safe deposit boxes and other sections of the state. “Turns out there was $375,000 in cash in the three boxes here in Lawnsville,” Rick said. Ballengee got a look of disbelief, “Rick, that’s ridiculous. Where did you get such a stupid figure?” “Joseph, a teller from the bank testified at the trial. The day they opened the three boxes up at the bank, he counted it in front of Charles, IRS agents, and an assistant U.S. attorney here in Lawnsville.” Hill became alarmed. Ballengee looked like he was going to faint right there in his office. “You all right, Joseph?” “I’m just absolutely stunned. Oh, I knew Charles got into some stuff every now and then. But this. It’s like the Mafia in New York, someplace like that. Is he out on bail?” “Pretty sure he got out last night. Don’t know if he’s back in Lawnsville. Also, could be some more charges. Not sure, but the U.S. attorney seems to smell blood in the water,” Hill added to Joseph Ballengee’s discomfort. At that, the former Crier publisher got up and left with a curt “See you later.” Hill was right about one thing – the U.S. attorney did smell blood in the water and had ordered his staff to revisit all the information they had on Beauregard to see if another criminal charge was still a possibility. The lead investigator came up with a solid possibility that might be developed into a case against Beauregard. He pulled out the earlier Crier stories on furniture purchases by Jordan County branches of state departments and put that together with conversations he’d had with his friend, the former state police superintendent. “Agree, it’s time to visit the president of Business Management who has the state furniture contract,” the U.S. attorney responded to his chief investigator’s suggestion. 227
Chapter 47 Moving Furniture Cash and Carry Since he was fully aware of Beauregard’s very recent conviction for federal income tax evasion, the forehead of the president of Business Management was covered in sweat when the federal investigators entered his office. After very brief introductions, the lead investigator got to the point of the visit, “Did Beauregard have anything to do with your company winning the state furniture contract?” “Why would you think such a thing?” the now-frazzled executive asked. The investigator glanced at his partner and then said in a low voice, “We are aware that he visits you about a week after you receive the monthly check for furniture purchases by the state.” Slumping back in his chair, the Business Management president responded, “What do you want from me?” Calmly leaning back in his chair, the federal investigator said, “We want the full details of your relationship with Mr. Beauregard in regard to state furniture purchases and for you to wear a recording device the next time you two meet next.” For the next thirty minutes, the company executive explained everything from the bid-rigging to the method of pay-off to Beauregard – three percent of the furniture purchases paid in cash the week following Business Management receiving a state check. “How much did you pay Mr. Beauregard in the last two years since you got the state furniture contract?” 228
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“A little over $200,000 a year – all in cash.” Continuing to probe, the investigator asked, “Do you two have a meeting scheduled?” “I just got a state check this morning. Normally, I let him know I got it. And he comes in the following week.” After Beauregard took the chair in front of the desk, the Business Management president took a bulging envelope out of his top desk drawer. “What will happen to our deal after you’re sentenced?” “It’s over.” As Beauregard walked onto the sidewalk in front of Business Management’s headquarters, four federal agents stepped forward and announced he was under arrest. They ordered Beauregard to hand over the envelope containing the bills whose numbers were all on file at the U.S. attorney’s office. Two other federal agents went into the building and placed the company executive under arrest and took the recording device. Beauregard Arrested While Receiving Payoff From President of State Furniture Supplier For the second time in two weeks, Lawnsville Crier readers were shocked by the legal misfortunes of the Jordan County political power many considered to be untouchable. The story by Publisher Hill included details of the scheme. In the last two years, Beauregard had gotten over $400,000 in kickbacks based on a rate of three percent of all state furniture purchases. It also described Beauregard’s role in fixing the bids that resulted in the business going to Business Management. A manager in the state procurement office was also arrested for his role in the conspiracy and had provided details of the scheme to federal authorities. If convicted of these newest charges, Beauregard could get an additional 10-15 in prison on top of the 15-20 for the income tax evasion convictions. 229
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Al Dill made sure additional copies were printed for Lawnsville residents he was sure would crowd into the Crier office, clamoring for extra copies. To keep from coming back for more papers, the carrier for the courthouse took an extra 25 on his first run. There was a feeble knock on the Crier publisher’s office door. “Come on in,” Hill responded. It was Sara Jane Lively, one of the retired schoolteachers he often ran into while picking up the Crier mail at the Lawnsville post office. He stood and greeted her and offered her a chair. “What can I do for you, Mrs. Lively?” “Mr. Hill, I just want you to know that Lawnsville and Jordan County owe you a great debt. You uncovered all this stuff and got the ball rolling that put them all in jail. It wouldn’t have happened without you. Joseph Ballengee covered it all up for years. But you have cleaned it all up. You’ve made Lawnsville and Jordan County a better in which to live. May God bless you.” Standing, Hill said, “You have no idea how much that means to me, Mrs. Lively. You can be sure that we will continue to get you the truth. I appreciate very much your taking the time to stop by.” As she was leaving, Rick’s phone rings with what sounds like a joyful ring. “Is there anything else that can top these last two weeks?” Edwards’ gravelly voice asked. Smiling, the Crier publisher said, “If there is, I’m not sure we can handle it.” “Charles is liable to die in prison, could get nearly 40 years if he’s convicted of this furniture kickback thing,” Baxter offered. “Indeed he could. Might delay going to prison by appealing. But from what I saw in the courtroom, the tax evasion evidence was overwhelming. And from what I’ve seen about the furniture kickback case, the evidence is just as strong,” the publisher said. 230
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“Seems to me Brown will have a real job ahead trying to keep the old-line faction going forward,” he continued. A few seconds passed before Baxter responded, “Maybe. Some folks out in the county who have been old-line supporters for decades see it all as a setup just to get Charles, and they’ll never see it any other way. “But there’s a lot more who feel used. Brown could have trouble holding the precinct organization together. Folks will be embarrassed to be associated with the old line because of Charles’s convictions. And they are really upset because the income tax evasion conviction showed that Charles was using them to line his pockets. That money thing with the safe deposit boxes just has them mad as hell. We won’t have to say anything to get them stirred up – they already are.” With a skeptical look on his face, Hill asked, “Do you think it’ll last very long?” “Oh yeah, when folks around here feel used, it might never go away. They’ll pass it on down to their kids, neighbors, and at church. Of course, Brown will have a slate of candidates, but their grassroots support could well suffer for years,” the reformer leader said. Then he asked, “How do you see the trial?” “Well, on the local scene, it will confirm what came out at the tax evasion trial,” the Crier publisher responded. “But this could shake the governor’s administration to its foundation. He reinstated the guy who used to oversee the state furniture contract. Charles bribed the guy to make sure that Business Management won the bid which led to Charles getting $200,000-a-year kickback. I expect that the governor got a share of that,” “Oh my. You bet that’ll set off alarms all around the state. Can’t figure out why Charles bought into that beer distributorship up in the northern part of the state. In the tax evasion trial the guy who was his partner in that didn’t get into that very much. Since that company was connected to the beer distributorship over in 231
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Franklin County, it seems they might have been going to start a kickback operation up there like they had here in Lawnsville,” Baxter added. “Not sure the U.S. attorney will go into all that. He is certainly after Charles. It’ll be interesting to see what comes out at this furniture kickback trial,” Hill added. As the first witness, the president of Business Management explained the details of his relationship with Beauregard – a kickback of 3 percent of the amount of furniture the state bought from his company. Once the company received the state check for payment, the company president would meet with Charles in his office and make the cash payment. The company president, reading from his personal desk calendar, testified as to the dates that he met with Beauregard during the last year. Then the prosecutor played the tape secretly recorded by the Business Management president. Next, the Lawnsville bank employee who handled the sign-in book for safe deposit boxes testified, using the sign-in record, as to the dates Beauregard signed into his safe deposit boxes over the last year. Her testimony showed that Beauregard always visited his safe deposit boxes the day after meeting with the Business Management president. He then related making the last payment, after which both he and Beauregard were arrested. The final witness for the prosecution was the U.S. marshal who testified the numbers of the bills in the envelope taken from Beauregard matched the bills that had been given to the Business Management president prior to their meeting. To show a pattern, the prosecution had a manager from the payroll division testify about the dates of the state paydays over the last two years. Again, the bank safe deposit box clerk took the witness stand and gave additional dates Charles signed in to the safe deposit box vault. For those years, he signed in the day after each state payday. The prosecution made the point that this was 232
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evidence presented at the federal income evasion trial about the Flower Fund tying Beauregard’s visits to the safe deposit boxes to state paydays. Beauregard’s defense attorneys effectively confused the jurors about the dates of their client’s visits to his safe deposit boxes and the dates of state paydays and the dates Business Management received the state checks. Their main point was that the dates were merely coincidence rather than evidence of a broad conspiracy of kickbacks. They totally ignored the blockbuster issue of the matching numbers of the bills in the envelope in Charles’s suit coat pocket. Following the defense’s closing argument, the federal prosecutors were not as confident of a conviction. After about an hour of deliberations, the jury asked for a copy of the testimony about the dates of state paydays, Business Management receiving state checks, and Beauregard’s visits to his safe deposit boxes. This request deepens the concerns of the federal prosecutors. Just 30 minutes after receiving the information, the 12 solemn-faced jurors filed back into the courtroom under the towering ceiling. The standing-room-only crowd jamming the courtroom was silent. Following the tedious judicial procedures of this part of a trial, the jury foreman announced in a voice barely above a whisper, “Guilty of all charges.” Jubilation reigned at the federal prosecutors’ table while Beauregard slumped back in his chair, shaking his head. His lawyers stood motionless at their client’s second federal conviction in less than six months. The judge announced sentencing would be in two months.
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Chapter 48 What Goes around… While the crowd for the sentencing did not match the throng that attended the two trials, few seats were unfilled for the sentencing of one of the most powerful figures in the state’s colorful political history. Prior to pronouncing the sentence, the judge addressed Beauregard. “Your crimes are among the most serious ever perpetrated in the history of West Virginia state government. Your conspiracies are without equal. For the income tax evasion convictions, you are sentenced to 15-20 years in a federal prison. In addition, for the furniture kickback convictions, you are sentenced to 10-15 years in a federal prison. The sentences will be served consecutively.” The Crier publisher watched as the defense attorneys, standing beside Beauregard, shook their heads in stunned disbelief. They expected the sentences would be served concurrently, which is normal procedure. In that case, Beauregard would serve both sentences at the same time. But the consecutive sentences meant he could serve more than 30 years. Beauregard dropped into his chair, slumped back with his head down as the attorneys explained what the judge’s sentencing decision meant. “How in the hell did that happen?” Charles said in a booming voice that could be heard in most of the courtroom. Beauregard Could Serve 30+ Years In Federal Prison With Second Federal Trial Conviction
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Before these last two trials, people in Jordan County were convinced Beauregard lived a charmed life – getting acquitted in a bribery trial when both his co-defendants (the governor and another county political power) were convicted and sentenced to federal prison. Then his being acquitted in the Flower Fund case. In reading the earlier Crier stories about the other recent convictions, most folks thought that the political kingpin would wiggle out and find a way to avoid any serious consequences in the tax evasion and furniture kickback trials. The glaring headline across the top of Page One of the Lawnsville Crier eliminated any possibility in the minds of all but the strongest of Beauregard supporters that he was going to beat the rap this time. Charles himself is reeling from all that’s hit him in the last two months. The judge ordered him to report to a federal prison in Oklahoma in a little over three months. The IRS seized the Myrtle Beach and Boca Raton beachfront homes, his family cars, and all the cash in the six safe deposit boxes. By executing a loan with the local bank, Charles’s son was able to rescue the Beauregard home from the federal seizure order. As he reviewed that day’s Crier front page, Hill thought back to the day, nearly three months ago, when Beauregard was sentenced to what could be 30 years in federal prison. He looked up at the framed poster on his office wall – “It’s the duty of a newspaper to print the news and raise hell” in a fair and accurate manner, he silently added. The phone’s clang brought him back to reality. It was the stale voice of the U.S. attorney’s public information office (PIO), “There’s been a change in Mr. Beauregard’s surrendering to federal custody. The U.S. attorney would like to meet with you here in the morning in the next day or two.” “Day after tomorrow at 8:30 would work for me. Thanks.”
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Chapter 49 …Comes Around Standing near an innocuous door around the corner from the main entrance to the Petersburg Federal Prison, Crier Publisher Hill stood, camera at the ready. The familiar black Buick fourdoor sedan stopped on the street. Beauregard’s son got out of the driver’s side and went around and opened the passenger side front door. The former Jordan County political power got out, hugged his son, and began walking toward the door, hesitating for a moment when he saw Hill with the camera. Shaking his head, he continued not acknowledging his nemesis as he reached for the knob that would deliver him to federal custody for up to 30 years. After getting his Page One picture, the Crier publisher went to the prison’s main entrance and signed in for his visit with the prison’s public information officer (PIO). These arrangements resulted from his conversation with the U.S. attorney in Charleston two weeks before. Hill had been instructed that in the interview with the PIO, he could not bring up the name of Beauregard but rather generally ask about the daily routines of prisoners at the Petersburg federal lockup. Following the interview, the PIO handed the Crier publisher a small envelope his secretary gave him as the interview ended. It was 2 p.m. before Hill began the six-hour drive back to Lawnsville. Without looking inside, Hill put the small envelope
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on the seat of the paper’s 1959 Jeep station wagon with the Crier nameplate on both sides. Beauregard Reports to Federal Prison To Begin What Could Be 30-Year Sentence Other than the short story when Beauregard was sentenced, no mention had been made in the Crier of the date he would report to begin his sentence, so the story and pictures were a shock to Crier readers. In one, the one-time Jordan County political power was walking up to the prison side entrance in a casual open-neck shirt. Next to it was Beauregard’s prison mug shot. He wore an orange prison jumpsuit complete with an eight-digit identification number underneath. The latter image was a stark contrast to the always dapper politician, whose attire was always a perfectly tailored grey or blue three-piece suit, starched white shirt, gold cuff links, tastefully patterned silk tie, and highly polished dress shoes. To provide a contrast, the third picture on the Crier front page was of Beauregard in his stylish attire, shaking hands with then-presidential candidate John F. Kennedy. Quietly, folks crowded around the Crier front office counter to get several copies of this history-making issue. They read the story in silence as they came face-to-face with how far one they considered invincible had fallen. The eyes which stared from the Crier front page were those of a depressed, beaten man. The accompanying story reviewed the particulars of the crimes for which he was convicted, followed by a review of the normal routine for a prisoner at the Petersburg Federal Prison. The clang of his desk phone broke the deep concentration of the Crier publisher’s second reading of Page One. “This would have never happened if you hadn’t bought the Crier,” Edwards said in a whisper. “Your printing the truth opened people’s eyes.” Hill leaned back in his chair, “I appreciate that, Baxter. But all 237
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we did was do what the press is supposed to do in this country – hold public officials accountable. “That’s what we will continue to do no matter who’s in office,” the Crier publisher calmly responded. Taken aback by the blunt tone, Baxter said, “I’d expect nothing less. Just wanted to say congratulations.” As he hung up the phone, Hill looked at the framed poster on the wall across from his desk. The Crier publisher had carefully placed the poster so that when he looked up while writing a story, he was reminded of its message: “It’s the duty of a newspaper to print the news and raise hell.” “Damned right,” he said out loud.
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Acknowledgments When I embarked on writing Enough, my goal was to show the challenges a small-town newspaper publisher faces when confronting an entrenched crooked local political machine. It was to be a behind-the-scenes view of small-town journalism and the positive impact it can have in a community. No way did I envision a second novel; what could be left to tell, I mused. And if anyone had suggested that my efforts would grow to a trilogy, I would have suggested that they were in need of serious psychiatric help. But alas, those rascally characters in Enough kept pestering that they weren’t done yet. “You can’t leave us like this,” they continued to pester during their nocturnal visits. I relented. When I had completed And Raise Hell, there were some loose ends that just had to be tied up, so here’s …Comes Around. Also, I must admit I was curious to see where this hearty band of characters would next lead my fingers on the keyboard. I remembered Stephen King’s On Writing, containing sage advice about letting characters lead the plot. The first two books in the trilogy have been recognized with national awards. And Raise Hell received a Finalist award in The Next Generation Indie Book Awards and an Honorable Mention at the Hollywood Book Festival, and Enough earned Honorable Mention at the New York Book Festival. The screenplay for Enough was the winner in the category at the 2022 Hollywood Book Festival. Indeed, I am blessed. None of these accomplishments would have been possible without the support, help, and suggestions from a number of folks. First and foremost, I’m thankful for the love and guidance of my late parents Harriet Lee and Charlie Hylton. They were examples of how important the proper practice of journalism can be to a community. 239
After my parents, the greatest influence on my journalism career was Paul Atkins, the late revered journalism professor at the West Virginia University Perley Issac Reed School of Journalism (now the Reed College of Media). He taught me, with his notorious red pen, the importance of accuracy and fairness. Also influential were the conversations with my late uncle, Charles Martin Whited, the noted Miami Herald columnist. These discussions were instructive, spirited, and insightful. I’m fortunate for the guidance and patience of Cathy Teets, president of Headline Books. I could not have had a better mentor. Marshall Jarrett, director of the Executive Office for United States Attorneys (retired), U.S. Department of Justice, Washington, D.C., was kind enough to answer what must have seemed like endless questions about legal aspects, particularly of And Raise Hell. Support from my family – daughter Lee, granddaughter Maggie, son Chad, daughter-in-law Martha, and granddaughters Morgan and Reilly was vital. And when my spirit sagged a bit, the encouragement of Delores Hall was important for the completion of …Comes Around. Mark Brazaitis, Creative Writing Professor West Virginia University English Department, author of seven books, and director of the West Virginia Writers’ Workshop, introduced me to the world of novelists. Former Morgantown (WV) Mayor Bill Kawecki provided insights that, without a doubt, improved my writing. Retired Morgantown banker Barton Loar was kind enough to provide important information about the banking business.
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International award-winning author, C. D. “TONY” HYLTON, III is a journalism veteran and his career has taken many forms—Editor/publisher of the Hinton (WV) Daily News (now Hinton News); public relations practitioner for a Washington, D.C. based national trade association and Weirton Steel in West Virginia, Communications Director for AARP in Virginia, and Public Information Officer for a major U.S. Army Command in Vietnam. Comes Around is third in the Rick Hill series and continues Tony’s examination of the principled interaction journalism and the rough and tumble brand of local politics found in southern West Virginia in the 1960s. Enough, And Raise Hell are the first two books in the series. Enough won Honorable Mentions at the Paris, Hollywood, and New York Book Festivals. And Raise Hell is a Next Generation Indie Book Award Finalist, plus won a Southern California Book Festival Honorable Mention. Tony is a proud double graduate of West Virginia University— (Bachelor of Science, Journalism and Master of Arts, Political Science. He is a former member of the West Virginia House of Delegates.
WHAT GOES AROUND...
COMES AROUND
What goes around...COMES AROUND in this third book of C. D. “Tony” Hylton’s award-winning Rick Hill series. Lawnsville Crier publisher Rick Hill continues his crusade against the crooked politics that have ruled over the citizens of Jordan County—deep in the mountains of southern West Virginia—for decades. The dedicated newsman’s frustrations continue as he watches while a political crook—with Houdini-like escape abilities—suspiciously moves from local political mischief to statewide scams. At that level, the crook’s subterfuge continues with success. Again, the Crier’s publisher’s hopes soar when it appears that the U.S. Attorney has initiated a new strategy that takes an entirely different approach to bringing the political kingpin to justice. But Rick Hill’s frustrations surge as the new approach by federal prosecutor's floundering.
C.D. “TONY” HYLTON, III