Grace’s attorney rips into witness
An attorney for indicted former St. Gabriel Mayor George L. Grace Sr. and the prosecution’s principal undercover witness sparred for a second day before a jury Tuesday in Baton Rouge federal court.
The friction produced a bitter argument over the witness’ interference in a plan by Grace to obtain housing construction tax credits from a California man. That man now is under a permanent federal injunction that bars him from distributing or selling phony tax credits.
“Does the Federal Bureau of Investigation allow you to interfere with legitimate business?” defense attorney Lewis O. Unglesby demanded of William Myles, an undercover FBI operative who earned $104,000 annually to pose as a corrupt businessman.
Unglesby had just played a secretly recorded conversation between Myles and Grace, who told the fast-talking businessman that he believed he could obtain tax credits from a California man to fund a housing development in St. Gabriel.
Myles told Grace in that conversation that he could complete the project faster and better than any builder benefiting from any tax credits from the Brea, Calif., man, Lamar Ellis.
Unglesby suggested Myles and the FBI impermissibly interfered in St. Gabriel’s municipal business.
But Myles said he already was familiar with Ellis and that the California promoter had often promised tax credits that “never happened.”
Federal court records in Los Angeles show that Ellis was permanently enjoined by U.S. District Judge John A. Kronstadt on Dec. 22 from promoting “or selling his tax-credit scheme.” Kronstadt also permanently prohibited “statements that Ellis possesses and can sell or otherwise transfer tax credits that can be used by participants to reduce their federal income tax liabilities.”
Kronstadt acted against Ellis after Justice Department attorney Sean M. Green alleged: “For years, Ellis has fraudulently represented that he acquired billions of dollars … from the United States as a reward for alleged scientific breakthroughs.”
Green added: “In reality, Ellis does not, and never has, possessed any of these credits. Ellis knows that the credits are a fiction.”
In Baton Rouge, Grace faces felony charges of racketeering, fraud and extortion as a result of a two-year FBI sting that offered bribes to area municipal officials in return for help in gaining government contracts for sanitizing garbage cans.
The sting was known as Operation Blighted Officials. The fictional can-cleaning company was Cifer 5000. And five elected officials in Port Allen, New Roads and White Castle have been convicted on felony charges as a result of the sting.
Myles engaged those five officials and Grace in conversations that were secretly recorded. Myles began the probe in early 2008 by approaching Grace, offering money and other gifts totaling approximately $15,000 and persuading Grace to introduce him to potentially helpful officials in other cities.
Those introductions resulted in felony convictions against three other former mayors — Derek Lewis, of Port Allen; Tommy Nelson, of New Roads; and Maurice Brown, of White Castle. Nelson has been sentenced to a prison term of 11 years. Brown is serving a 10-year sentence. Lewis has not yet been sentenced.
Also awaiting sentencing are former Port Allen Police Chief Fred Smith, who was convicted at trial, and former Port Allen Councilman Johnny Johnson Sr., who pleaded guilty.
In other action Tuesday, Unglesby was critical of news articles about Myles that appeared in publications in New Orleans and Hartford, Conn., prior to his first meeting with Grace.
“Was that a true article or was that planted by the FBI?” Unglesby asked Myles about a story that ran in a weekly publication in New Orleans.
Myles said a writer in New Orleans picked up on a story that earlier appeared in Connecticut and flattered Myles’ business abilities.
The Connecticut article was purchased, Myles said. “It’s like an infomercial.”
“These articles are planted articles,” Unglesby insisted.
Myles said they were necessary to provide him a believable and public professional history for his undercover work.
“It’s not to mislead,” Myles said.
Unglesby then expressed disbelief over Myles’ statements to Grace that he had been in charge of $5 billion in reconstruction and development projects in New Orleans.
“You’re telling Mayor Grace you’re in charge of $5 billion of work in New Orleans?” Unglesby asked.
“Yes,” said Myles.
Myles then added that he provided unpaid assistance to those projects through a nonprofit organization.
“Where do you tell him (Grace): ‘My $5 billion worth of work in New Orleans is volunteer work?’ ” Unglesby asked.
“I didn’t think I had to tell him that,” Myles replied.
Testimony in the trial is scheduled to resume Tuesday.
Advocate librarian and researcher Judy Jumonville contributed to this report.