Birmingham Mayor Larry Langford, investment banker William Blount and lobbyist Al LaPierre forged documents supporting a defense argument that payments to Langford were actually loans, according to a plea agreement between federal prosecutors and LaPierre.

Al LaPierre

In June 2007, Langford told the Securities and Exchange Commission that the money he received was loaned to him. When SEC investigators asked Langford if he had any documentation to support that argument, Langford told him he didn’t know.

“After reviewing Larry P. Langford’s false testimony, Langford, William B. Blount, and defendant Albert W. LaPierre agreed to further that false account of their illegal transactions by creating false promissory notes to make it appear as if the transactions were loans and not bribes,” the agreement says. “William B. Blount created the false promissory notes and then met with Larry P. Langford and defendant Albert W. LaPierre to sign the false promissory notes and get their story straight.”

Even before the federal indictment was unsealed last December, Langford’s lawyers have argued that the promissory notes proved Langford was innocent.

However, after the indictment was unsealed, the defense appeared caught off guard by new allegations, including charges that Blount and LaPierre lavished expensive clothes and jewelry on Langford while on trips to New York and at a downtown clothing story, Remon’s.

In his plea agreement, LaPierre says that he and Blount set up an account for Langford at Remon’s, where Langford would charge clothing purchases. Later Blount and LaPierre would pay the balance on the account. Remon’s is in the same building as LaPierre’s downtown office.

Also revealed in the plea agreement is an allegation that Langford recieved $3,500 cash from LaPierre and Blount so that Langford could go to Mississippi with John Katopodis. It is not specified why Langford needed the cash beyond the Mississippi trip. Last month, a federal jury found Katopodis guilty of using a public funded charity as his personal piggy bank. During that trial, Langford’s wife, Melva Langford, testified that she and her husband had accompanied Katopodis on trips to casinos in New Orleans. Langford himself has said in depositions that he frequently went with Katopodis to casinos in Mississippi and Alabama.

In exchange for LaPierre’s testimony in this case and possibly others, the government agrees to ask for a sentence of 48 months in prison. In addition, LaPierre will pay the government restitution of $371,932, in addition to unpaid taxes.

LaPierre is expected to appear Thursday in federal court to plead guilty to two counts of conspiracy and one count of tax fraud.

Langford told the Birmingham News he expects LaPierre’s testimony “should be a help” to his defense.