Jury finds Draper guilty of charges in beef plant case

Paul Quinn, a student intern writing from Oxford for the Clarion Ledger, has the story.

A refrigeration company sales representative accused of pocketing funds for equipment at a beef processing plant has been found guilty of charges related to the failed business.

A jury in Oxford this afternoon convicted James Draper of Mount Juliet, Tenn., of money laundering and interstate transportation of money obtained by fraud.

Draper faces up to 30 years in prison and $750,000 in fines on two charges.

It is the first time someone charged in connection with the failed venture in Yalobusha County has gone on trial.

Einstein applied to the politics of insurance

We can’t solve problems by using the same kind of thinking we used when we created them.

We surely can’t - particularly if we’re thinking about an entirely different problem than the one we’re trying to solve.

Einstein, of course, would never have given doing such a moments thought. I, on the other hand, am no Einstein but take some measure of comfort in knowing he understood how the rest of us could mismatch problems and solutions.

A human being is a part of a whole, called by us _universe_, a part limited in time and space. He experiences himself, his thoughts and feelings as something separated from the rest… a kind of optical delusion of his consciousness.

In our post-Katrina world, property insurance has become “a kind of optical delusion” of all things insurance.

This realization - AKA my Aha! Moment on the politics of insurance - came as I was reading the first paragraph of the draft policy statement of the National Council of State Legislatures (NCSL) on Insurance Regulatory Modernization.

Insurance serves as the cornerstone of the economy.

Perdigao files for reconsideration of recusal and renewed request for evidentiary hearing

Brass, just gotta be brass.

As more fully set forth herein, defendant respectfully requests that the court reconsider its order denying the defendant’s motion to recuse, forthwith hold an evidentiary hearing, and issue more specific findings of fact and conclusions of law in order to properly comply with Fed.R.Crim.P. 12(d).

Proposed Memorandum in Support of Motion for Reconsideration and Renewed Request for Evidentiary Hearing here

Undersigned counsel had no notice that the status conference scheduled for June 6, 2008 would be anything other than a status conference preparatory to the evidentiary hearing scheduled for June 19, 2008. Without any notice to defense counsel, the court turned the status conference into a formal court hearing wherein the court ruled on the motion to recuse and request for evidentiary hearing.

Subsequently, the court issued its Order and Reasons entered on July 9, 2008 denying the defendant’s motion to recuse and request for evidentiary hearing (hereinafter the “Order and Reasons”). See R. Doc. 117. The defendant respectfully suggests that the Order and Reasons are inadequate and deficient in that Fed.R.Crim.P. 12(d) requires that the court state its essential findings on the record. As more fully set forth below, the court failed to review and summarize the evidence, identify and address the hotly contested factual issues, and resolve them on the record as required by law.

News and views re: Scruggs, Scruggs, and Backstrom UPDATED

The Daily Journal reports

Court documents released today show Dickie will spend his 60 months in a federal facility in Ashland, Ky., while Zach will spend his 14 months in Pensacola, Fla.

Item #1 - or rather Items #1 and #2 - are identical motions regarding the recent deposition of Dick Scruggs and his son Zach filed by State Farm in the McIntosh case.

COMES NOW, the Defendant, State Farm Fire and Casualty Company (hereinafter “State Farm”), by and through its counsel of record, and files this, its Motion for Leave to File its EmergencyMotion to Compel Richard Scruggs and supporting Exhibit A [Richard Scruggs deposition transcript taken July 22, 2008] under seal, and would show unto the Court as follows, to-wit:

Counsel for State Farm took the deposition of Richard Scruggs in this case on July 22, 2008.

Counsel for Richard Scruggs has stated that they intend to move this Court to seal Mr. Scruggs’s deposition transcript. State Farm is, therefore, as a courtesy to Mr. Scruggs, asking that this motion be filed under seal, only so as not to frustrate and render moot the relief Mr. Scruggs seeks. State Farm does so without prejudice to, and without waiver of, any position it may take on Mr. Scruggs’s motion to seal.
WHEREFORE, PREMISES CONSIDERED, for the foregoing reasons, State Farm respectfully moves this Court to enter an Order allowing State Farm to file its Emergency Motion to Compel Richard Scruggs (including Exhibit A) under seal pending ruling on Richard Scruggs’ motion to seal his deposition transcript.

Go figure. However, if State Farm has added common courtesy to its legal strategy, I want to be the first to offer praise and positive reinforcement.

Latest bull on the beef plant

According to today’s Daily Journal, only closing arguments remain before the jury begins deliberation in the trial of James Draper.

Testimony in the federal fraud and money laundering trial of James Draper ended Tuesday after the defendant said he knew nothing of plant owner Richard Hall’s intentions to defraud the state of Mississippi.

Draper’s charges stem from the failed Mississippi Beef Processors plant that the state helped fund in Oakland.

Draper, the refrigeration equipment salesman, deposited a $187,725 check from the state for equipment that was never purchased, then turned over all but $20,000 - an amount he said he was owed for expenses incurred in helping Hall research equipment purchases - to Mississippi Beef Processors. Hall allegedly then converted the $167,725 to personal use. Hall created an invoice to justify the check.

All of that we’ve heard before but it’s what comes next that inspired the title of this post.

USA v Moultrie in hurry-up-and-wait phase

Seems as if the delay in getting Carothers home yesterday was an omen of more hurry up and wait to come.

Today, Judge Mills granted an Agreed Order granting the request of Moultrie’s defense for a 48-hour extension of today’s deadline for filing motions.

Magistrate Judge Alexander, on the other hand, issued an Order granting the expedited consideration of Carothers’ motion to quash the subpoena duces tecum and setting 5pm Friday as the deadline for interested parties to file a response.

Alexander’s order set 5pm Tuesday, the 29th, as the deadline for all replies to such response.

Wonder how much coffee sales will increase in Oxford over the next week. Want to bet another sweet potato, Sop? How about you, belle?

Concise statement of fact? Nope, try again!

Since Rossmiller has been gone so long, I decided to go to Oregon and see what was up. Whatever it was, he proceeded to get a settlement including his own lawyer’s fees. Good job Rossmiller! But I also found another matter — federal question of breach of contract suit where Rossmiller is defending his client. Maybe he could give the Rigsbys some counsel on that in their defense against Renfroe? Maybe not such a good idea. It turns out Rossmiller had to eat a little crow from the judge when filing his concise statement of fact with the court.

The Concise Statement of Material Facts filed by Defendant in supporting her Motion for Summary Judgment is not in compliance with Local Rule 56.1 (c), which requires that citation to evidence supporting the party’s statement. The Clerk is directed to link a copy of Local Rule 56.1, including Appendix of Form #17, to this Order. The Local Rules can also be accessed at the Court’s website, www.org.uscourts.gov.

Defendant’s Motion for Summary Judgment is held in abeyance pending filing of a Concise Statement of Material Facts in compliance with Local Rules 56.1

Thanks to Freedom of Information it is not only Scruggs and the Rigsbys that are under the spotlight.

More Media Coverage of the Congressional Visit Part II: Natalie Chandler on the Insurance Specifics

The Clarion Ledger and Natalie Chandler were at Gene’s insurance town hall gathering last year and were impressed enough to come back for a repeat visit. She does a great job drilling down the policy and the politics for today’s Clarion Ledger:

House Democrats told hundreds of residents here Monday that legislation to provide wind and flood insurance may have to be piecemealed together but assured them it is moving forward.

The author of the bill, 4th District Rep. Gene Taylor, said conversations recently initiated by a key Senate chairman signal that negotiations are forthcoming between House and Senate leaders.

Taylor, a Democrat from Bay St. Louis who lost his home in Hurricane Katrina, said Senate Banking Committee Chairman Christopher Dodd indicated his interest after tornadoes hit the Midwest.

More Media Coverage of the Congressional Visit: Anita Lee Puts the Meeting on the Record

I’ll be sharing my own observations in a later post. Here is the story from the front page of today’s Sun Herald.

U.S. House leaders assured an overflow crowd Monday night that they are behind U.S. Rep. Gene Taylor, D-Miss., as he joins a conference committee to push for multiperil insurance coverage for coastal Americans. 

Residents and community leaders gave House Speaker Nancy Pelosi,D-Calif., a standing ovation for her support of the bill, which passed the House earlier this year but failed in the Senate. Pelosi has appointed Taylor to a conference committee that will work on compromise legislation.

WLOX News Coverage of Last Night’s Town Hall Meeting

H/T to Cowboy for capturing the story last night.

Adams and Reese “lawyering up” for Perdigao

Looks like folks at Adams and Reese are getting ready as there were three pro hac vice motions filed on their behalf by Williams and Connolly attorneys - the “Green Berets of high-stakes litigation,” according to the Legal Times.

Joining Bailey Smith and Stephen Kupperman of the NOLA firm Barrasso Usdin Kupperman Freeman And Sarver are two Williams and Connolly partners - Michael S Sundermeyer and Joseph M Terry along with associate Jason T. Wright.

Sally and NAAS give us your take on what this means.

News Town Hall Meeting Style: Dodd Open to Compromise

Anita Lee of the Sun Herald heard the same thing I did, that Senator Dodd is ready to bargain. More observations tomorrow:

House leaders gathered with U.S. Rep. Gene Taylor Monday afternoon to say they will continue to support his efforts to pass multiple-peril insurance legislation for coastal residents. 

House Speaker Nancy Pelosi indicated that if the U.S. Senate is unwilling to pass a bill offering wind coverage through the National Flood Insurance Program, a model project including Mississippi might be possible.

They said U.S. Sen. Chris Dodd, D-Conn., chairman of the powerful Senate Banking Committee, has indicated he is open to discussing a compromise measure.

Florida homeowners slabbed by State Farm request for 47.1% average rate increase

On my way out of town Friday, I filled my tank for $62.50 - exactly half of the monthly payment on my first car. I imagine State Farm policyholders in Florida are having similar thoughts about State Farm’s proposed rate increase.

After lowering rates 9 percent this year, State Farm, the state’s second largest home insurer, did an about-face Wednesday when it asked state regulators for permission to raise homeowners’ rates 47.1 percent on average.

The private insurer, with nearly 1 million policies statewide, said it isn’t generating enough cash to cover the claims that could result if a major hurricane strikes next year. In Hillsborough and Pinellas counties, State Farm has nearly 100,000 policyholders.

“Our current rates are inadequate and must change,” said Michael Grimes, a spokesman for State Farm Florida. “We’re making this filing so we can continue to do business in Florida.”

…State Farm Florida Insurance Co. says it needs to increase premiums to have the cash to pay claims if major storms strike.

The planned increase flies in the face of the Legislature’s efforts to curb property insurance prices that doubled or tripled in some cases after hurricanes in 2004 and 2005.

After I returned to my wired world on Sunday and saw Chip Merlin’s post, I realized I’d left town with this story still in draft - sorry - but now you get Chip’s perspective, Snookered Again, plus the news story.

The Clarion Ledger Opines on Today’s Pelosi Visit

Even if not there officially I may see some Republicans like Comissioner Chaney or perhaps Senator Wicker tonight. In any case today’s event merited mention on the C-L editorial page as the quest for insurance solutions should indeed cut across party lines.

U.S. Speaker of the House Nancy Pelosi is scheduled to visit with a congressional delegation in tow on the Coast today in a repeat of last year, and it might not be pretty.

Pelosi came to a town meeting almost exactly a year ago to meet with victims of Hurricane Katrina.

Despite two years having passed since the storm hit Aug. 29, 2005, people at the Bay St. Louis meeting told story after story of private insurers and government only handing them more hardship.

The subject of insurance reform brought Pelosi and other Democrats then to tour the region and to tout a bill originated by 4th District U.S. Rep. Gene Taylor, D-Bay St. Louis.

Carothers out of Prison. Prosecution Beefing Up the Team in Advance of Trial.

You heard about the government’s request to free star Beef Plant witness Sean Carothers here on Slabbed last week.  H/T to HD at Phunk & Wagnalls for the email and breaking news post. Here is the Patsy Brumfield story.

Sean Carothers, who pleaded guilty to defrauding the Community Bank of Rankin County during construction of the Mississippi Beef Plant, will be out of federal prison soon to help the government in its prosecution of others accused in the scandal.

Carothers has been in a federal prison in Pensacola, Fla., since soon after his March 2007 guilty plea.

His release was ordered today by U.S. District Senior Judge Neal Biggers Jr., who reduced Carothers’ sentence to 12 months and one day, with the rest of be served on house arrest.

Biggers also ordered Carothers to report within two days of his release to the U.S. Probation Service in north Mississippi.