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Posted on October 26th, 2009 in Citizen's Digest

Langford testifies (sort of)

By Kyle Whitmire

A federal jury in Tuscaloosa heard the testimony of Birmingham Mayor Larry Langford Monday morning, but not because he took the stand in his own defense. Rather, prosecutors read into the record portions of Langford’s deposition with Securities and Exchange Commission investigators.

Larry Langford leaving the federal courthouse in Tuscaloosa.

Larry Langford leaving the federal courthouse in Tuscaloosa.

In that deposition, Langford said that he had spent his own money while shopping in New York. While on trips there to meet with bond insurers and ratings agencies, Langford said he would go to men’s clothiers Oxxford and Century 21.

He denied to investigators that Montgomery investment banker Bill Blount ever bought him anything while on those trips. He allowed that Blount might have bought him a birthday present, such as a shirt and tie, once.

When asked directly whether Blount had bought him anything beyond a birthday present on these trips, Langford said that he had not.

In fact, documents introduced into evidence show that Blount and lobbyist Al LaPierre bought Langford more than $80,000 worth of clothes and jewelry, much of it while on these trips to New York. On two separate occasions in New York, Blount bought Langford watches worth more than $10,000 each. Blount testified last week that these purchases were meant to bribe Langford.

Langford also told investigators that he could not remember if he had any documentation, such as promissory notes, that the payments from LaPierre to him were loans.

Blount and LaPierre have testified that they made up fake promissory notes, which they all signed together after Langford’s testimony to the SEC.

In those promissory notes and in the SEC deposition, Langford claimed that he intended to pay the money back to LaPierre after he sold some property in Hoover. Langford was one of four people in a real estate partnership that included Birmingham Budweiser Vice President Pat Lynch and Moore Oil Company owner Ron Moore. Langford has worked for more than 25 years as a public relations representative for Birmingham Budweiser.

Another employee at that company and partner in the land deal, Keith Nelson, testified that Langford never contributed any money to the partnership to cover interest payments and other costs, even though Langford kept an equal stake in the deal. The other partners covered those costs for Langford, Nelson said.

Before lunch, prosecutors called Kelly O’Donnell to the stand. O’Donnell is an employee at RBC bank, formerly NBC Bank in Birmingham. NBC served as Jefferson County’s financial advisor under Langford and consulted on most of the bond deals and interest rate swaps during his tenure.

O’Donnell said there was no reason to include Blount in the bond deals because NBC Bank provided all the services Blount supposedly performed. She also said that she had not known that Blount was included in some deals until she had read about it in the newspapers.

Blount had major investment banks disclose his involvement through “side letters,” which were not included in the typical bond documentation.

According to O’Donnell, after NBC became the county’s financial adviser, Langford obtained a credit card from NBC bank. Defense attorneys challenged whether O”Donnell was the proper custodian of records for the credit card. As of the lunch break, U.S. District Judge Scott Coogler seemed ready to declare the credit card records admissible.

Testimony resumes after lunch.

Madison Underwood contributed to this report.

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  • azikweabdullah
    things look shaky for mayor langford ,so much potential wasted,so much trust betrayed.the question that beg answer is,where do we go from here?
    birmingham has the potential to be a progressive modern city ,but the citizens of this city must learn to elect principled persons rather than persons without principles.
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