Musgrove In The News

Another Guilty Plea In Beef Case

Defendant Admits Giving $45,000 To Influence Musgrove

A Georgia businessman pleaded guilty Monday to conspiracy to corruptly influence a public official in connection with Mississippi's costly and failed beef plant venture -- a decision that could spill over into a U.S. Senate race.

Robert Moultrie, chairman and chief executive of The Facility Group of Smyrna, Ga., admitted he gave $45,000 in contributions to the re-election campaign of then-Gov. Ronnie Musgrove, who is now running for the Senate.

Moultrie, 67, is the latest to plead guilty in the scandal that already has resulted in convictions for three other people, including former beef plant owner Richard Hall Jr.

U.S. District Judge Mike Mills is set to sentence Moultrie in 45 to 60 days.

As part of the plea agreement U.S. attorneys, Mills and Moultrie agreed to a 34-month sentencing cap. The charge carries a maximum 10 years in prison, $250,000 fine or both and three years of supervised release.

Prosecutors also agreed to dismiss the other charges from the initial 16-count indictment against Moultrie, who was set to go on trial Aug. 25 with two other executives.

Moultrie has agreed to cooperate with authorities. He first gave Musgrove $20,000 through a PAC Moultrie formed in July 2003. In September 2003, "Musgrove contacted Moultrie for another campaign contribution of $25,000," according to court documents.

The contributions were made with the intent to influence or reward Musgrove for the "performance of his official acts in connection with the management of the design and construction of the Mississippi Beef Processors project." [More]

Five Days Until Ronnie Musgrove Day

Democrat candidate Ronnie Musgrove named a day after himself - is he still proud of his leadership?

WASHINGTON, DC -- Five days left until the anniversary of Ronnie Musgrove Day -- the day then-Governor and now Democrat Senate candidate Ronnie Musgrove proclaimed in honor of himself. (See the proclamation here.) In the next five days, will Ronnie Musgrove tell the voters of Mississippi that he's still proud of his leadership as Governor?

Specifically, will Musgrove tell voters how, through his leadership as Governor, Mississippi lost more than 51,000 manufacturing jobs and had a net loss of more than 38,000 nonfarm jobs? [More]

Ronnie Musgrove Day - The Countdown is On

Democrat candidate Ronnie Musgrove named a day after himself - is he still proud of his accomplishments?

WASHINGTON, DC -- When he was Governor of Mississippi, now-Democrat Senate candidate Ronnie Musgrove named July 29, 2002 as a day in honor of himself proclaiming he was a great leader. (See the proclamation here.) Six years later, will Ronnie Musgrove still be proud of his leadership when the anniversary of "Ronnie Musgrove Day" occurs next Tuesday?

Specifically, will Musgrove be proud of the failed Beef Processors Plant project that was approved while Musgrove was Governor of Mississippi?

Under Musgrove's watch, the state approved the Beef Processors plant project which later failed. This time, Musgrove's 'accomplishment' left taxpayers to foot a $55 million bill. [More]

MS-SEN: DSCC Violates Coordination Laws To Help Ronnie Musgrove

Last week, Talking Points Memo caught the DSCC at-best skirting campaign finance laws in Oregon. Even TPM doesn't buy DSCC spin.

This week, they are at it again, but it is Mississippi. This ad is running (sorry for the poor quality. This guy videotaped his television)

As you can see, the ad ends with a DSCC bug, but has the "likeness" of Ronnie Musgrove. Roger Wicker's campaign documents that this is not stock footage, but actually shot last week with DSCC and Musgrove staff. [More]

Scruggs Gets 5 years, $250,000; Will Report To Prison Aug. 4

Dickie Scruggs received the maximum 5 years in prison in $250,000 in fines for a crime Judge Neal D. Biggers Jr. called "reprehensible." ...

Scruggs faced a maximum sentence of five years but argued that he should be sentenced to 30 months.

He pleaded guilty in March to conspiring in 2007 to bribe Circuit Court Judge Henry L. Lackey, who cooperated with federal investigators.

Biggers entered the courtroom at 10 a.m. sharp and it was soon obvious from what he said about the findings in the pre-sentencing report, that the judge would hand down a stiff sentence.

He said, "There is no question in the court's mind that Mr. Scruggs, Mr. Richard Scruggs, was a leader and a planner (in the conspiracy). He has said he came into the scheme late. Regardless, he was the leader, he was the money man."

In fact, Biggers said Scruggs had entered into the scheme so easily that it made him wonder whether Scruggs had done such a thing before and indeed evidence indicates that he may have. [More]

Questionable Judgment

As we approach the June 27 sentencing date for Dickie Scruggs, leave it to the National Republican Senatorial Committee (NRSC) to remind us of his connections to Ronnie Musgrove. Their web page (www.MusgroveFacts.com) hosts a litany of articles and attacks against the former governor. Yes, it is politics as usual; but, they provide us context in the campaign between Musgrove and Senator Roger Wicker.

Scruggs pleaded guilty to conspiring to bribe a Lafayette County circuit judge regarding $20 million in attorney fees. The federal prosecution also took down Scruggs' son and law partner Zach Scruggs, attorneys Sidney Backstrom and Timothy Balducci, and former Mississippi State Auditor Steve Patterson.

This is Mississippi's second recent federal prosecution of a prominent trial lawyer misbehaving with a judge. Last year, a Mississippi jury found Paul Minor guilty of racketeering, mail and wire fraud, and bribery in a case that also sent chancery judge Wes Teel and circuit judge John Whitfield to prison.

Over the years, Musgrove received more than $150,000 in campaign contributions from Minor and $92,000 in contributions from Scruggs, who also secured Musgrove a $75,000 loan during his run for lieutenant governor. The NRSC dubs Scruggs and Minor: Musgrove's "dependable duo."

The NRSC notes Musgrove's official 2000 Inaugural program recognizes both Minor and Scruggs, and both attended a birthday party Musgrove hosted for himself at the Mississippi Governor's Mansion. (Joey Langston, Scrugg's attorney until Langston himself pleaded guilty to conspiracy to corruptly influence another judge, was also on the guest list.)

Musgrove is not the first politician to take money from shady characters, but in addition to Scruggs and Minor, Musgrove reported $60,000 in campaign contributions relating to Mississippi's failed $55 million beef plant. [More]

UPDATE: Beef Plant Scam Defendants Indicted Again

A new 16-count indictment accuses a previously indicted Georgia company and three executives of knowing the Mississippi Beef Plant was doomed to fail and not telling anybody, federal court documents show today.

As in a May indictment, they are accused of submitting fraudulent invoices to recover political contributions to an unnamed and unindicted public official's re-election campaign. They also are charged with conspiring and executing a scheme to obtain money by submitting invoices for work not performed and by fraudulently overstating and inflating costs associated with the plant's construction. ...

The plant built in Yalobusha County opened in 2004 and failed three months later, costing the state of Mississippi millions in loan defaults. Two men associated with the plant's construction and operation are serving prison sentences related to their own actions in the scandal. ...

While no one publicly has identified the official as then-Gov. Ronnie Musgrove, contributions by TFG and others match up with Musgrove campaign finance reports from his failed re-election campaign in 2003. Now a Democratic candidate for U.S. Senate, he maintains he has done nothing wrong.

But what appears to be new are charges that Cawood and The Facility Group learned about March 6, 2003, from one of its design engineers that national beef producers considered the operation a "money pit" and that it might not be economically viable in the long run without enough livestock to support the kill facility for more than about 24 months.

The engineer's memo speculated the state could face serious problems with its "unsecured loan."

Cawood and The Facility Group concealed these warnings from the state and Community Bank.

Last March, TFG and the executives were indicted by a federal grand jury and accused of a conspiracy to corruptly influence and reward this same "public official," who was not indicted, and to defraud numerous individuals, companies and the state in connection with the Beef Plant. [More]

The Bribe

Upon leaving the courtroom, Dickie Scruggs began to prepare for his sentencing, which is likely to take place next month. He has his plane flown to Houston, where is was put up for sale. The Scruggs Law Firm was closed, and the big block lettering was taken down from the building on the square, leaving only the faint imprint of the firm's name, traced by the sun, on the facade. Scruggs also wrote to Chancellor Khayat, asking that his name be removed from Scruggs Hall. [More]

Musgrove Linked To Beef Plant Case

A new round of felony indictments in a failed state-sponsored beef processing plant could cause political trouble for former Mississippi Gov. Ronnie Musgrove, who's now running for the U.S. Senate.

Musgrove was not charged or named in the indictments of three executives of a Georgia-based architecture, construction and engineering company. But an attorney for one of the executives is asking the court for permission to use two polygraph examinations his client took in 2006.

Papers filed with the court Tuesday night show Robert Moultrie, chairman and chief executive officer of The Facility Group, was asked during one of the exams about Ronnie Musgrove, a Democrat who was governor from January 2000 to January 2004 -- the period covering the development and failure of the beef plant. [More]

Beef Plant Indictees Gave To Musgrove's Re-Election Campaign

Former Gov. Ronnie Musgrove received campaign contributions from three men and a Georgia company indicted Tuesday in connection with the continuing Mississippi Beef Plant scandal.

Musgrove's 2003 re-election campaign financial reports with the Mississippi Secretary of State's Office show donations totaling $50,000 from Facilities Management Group of Smyrna, Ga., and three of its executives -- Nixon Cawood Jr., 58, Robert Moultrie, 67, and Charles Morehead, 57.

Tuesday, the company and the three men were accused in a 16-count conspiracy  to corruptly influence and reward a public official  and to scheming to defraud numerous people, entities and the state of Mississippi in connection with the beef plant constructed in Yalobusha County.

The Oakland plant closed in August 2004, three months after it opened, because of faulty equipment and a lack of money to operate it. It left 400 people unemployed and cost taxpayers $55 million.

Their indictment says that to avoid Mississippi's $1,000 per candidate per election limit on corporate contributions, they used company employees as  straw contributors,  who gave to an unnamed political campaign and were reimbursed by the company.

They also are accused of creating a political action committee that gave another $45,000 to the candidate.

Musgrove's financial report shows donations totaling $5,000 from the three men and an aggregate of $45,000 from The Facility Group Political Action Committee of Smyrna, Ga. [More]

New Indictments In Failed Beef-Plant Case

Three Georgia businessmen face a 16-count federal indictment involving the defunct Mississippi Beef Processors Plant, including allegations that their company tried to influence a Mississippi public official through campaign contributions.

The indictment charges Robert Moultrie, 67, of Smyrna; Charles Morehead, 57, of Lilburn and Nixon Cawood, 58, of Woodstock with one count of conspiracy to corruptly influence a public official and 15 counts of mail fraud.

In addition to charging that officials of The Facility Group of Smyna tried to influence a public official, the 30-page indictment made public Tuesday says the company submitted invoices containing "fraudulent, overstated and inflated costs" for work as project managers of the beef plant construction. ...

Federal officials would not identify the "public official," but former Gov. Ronnie Musgrove's 2003 re-election campaign finance records match the contributions listed in the indictment. Musgrove is now a candidate for U.S. Senate. [More]

Musgrove Took $92K+ From Dickie Scruggs

According to the NRSC, Ronnie Musgrove has accepted over $92K in direct campaign contributions from Dickie Scruggs since 2001.

More info is at MusgroveFacts.com. [More]

Judge Calls Scruggs' Actions "Unacceptable"

OXFORD, Miss. -- A federal judge says the defense team of indicted trial lawyer Richard "Dickie" Scruggs attempted to violate an order submitted Friday calling for the Monday deposition of Scruggs in State Farm Insurance Cos.' lawsuit against Mississippi Attorney General Jim Hood.

U.S. District Judge Michael Mills made the remarks in responding to State Farm's motion to clarify his Friday order and extended the deadline until which Scruggs has to submit to the company's questions to 5 p.m. Tuesday.

Mills threatened the parties with contempt if the deposition is not performed. His Friday order gave a 5 p.m Monday deadline.

"It was the court's intent, as should have been clear to all parties, that Scruggs' deposition be completed by this time," Mills wrote. "However, Scruggs refused to make himself available for deposition prior to 3 p.m. on Monday, and he appears to have used the 5 p.m. deadline for tactical purposes, to limit the duration and scope of State Farm's deposition.

"This is clearly unacceptable, and the court will not tolerate any further attempts to violate its Feb. 1 order." [More]

It's Ronnie Musgrove Day! It's Ronnie Musgrove Day!

From the archives, we have a gubernatorial proclamation on July 29, 2002, by then Governor and now US Senate candidate Ronnie Musgrove proclaiming "Ronnie Musgrove Day"

The proclamation celebrates his interns and his influence thereon. [More]

NRSC Asks Musgrove 'Where Is The Beef?'

Yesterday, Ronnie Musgrove went and put a foot in his mouth again. In railing against earmarks, Musgrove said he opposed pork. Even though he opposes pork, it seems Musgrove has no problem with beef. As most Mississippians are aware, due to Musgrove's administration taxpayers were saddled with a $54 million bill after the Mississippi Beef Processors Plant failed.

Adding to the intrigue factor is the generosity of Facility Group of Smyrna, Ga., who found it in their hearts to donate $60k to Musgrove during his losing reelection bid. For those that don't know, the Facility Group was hired by Musgrove's Mississippi Development Authority to act as project manager for the Beef Processor plant construction.

Additionally, Musgrove confirmed that he has spoken to a grand jury regarding this issue.

According to Musgrove in yesterday's Sun Herald -- "When you spend money, it ought to be on things that matter."

We guess that means beef, not pork for Ronnie Musgrove. [More]

Musgrove's Imprisoned Sugar Daddy

Musgrove's Imprisoned Sugar Daddy

Looks like Ronnie Musgrove has to explain more that just his bad economic policies as Governor and his willingness to work against the people of Mississippi when it comes to Katrina recovery. Now he needs to explain why one of his largest campaign contributors is in jail for bribing judges.

Ronnie Musgrove has taken more that $159,000 from Paul Minor. [More]

Democratic Party Challenged By Indictments

Mississippi's Democratic Party could be both hurt and helped to reshape by indictments and pleadings in federal court related to charges against nationally prominent plaintiffs' attorney Richard "Dickie" Scruggs of Oxford, longtime observers said this week. . . .

Wilkie said he is uncertain about what impact the prosecutions and indictments might have on Democratic senatorial campaigns of Ronnie Musgrove and Ronnie Shows.

Musgrove is a former governor who lost his re-election bid to Republican Haley Barbour in 2003. Shows is a former state senator and was a Democratic congressman from the former 4th District from 1999 to 2003.

Both are running in a special election against U.S. Sen. Roger Wicker, appointed by Gov. Barbour to the seat vacated by the stunning, unexpected resignation in late 2007 of former Sen. Trent Lott, a Republican. Wicker, a Republican from Tupelo, is the former 1st District congressman.

Lott is Scruggs' brother-in-law, but his name so far has not been linked to alleged illegality.

"A hard look needs to be taken internally by the Democrats," Wiseman added. "They have been wandering in the wilderness, and the core of the party has to be rebuilt." [More, Full-Text (PDF)]

Musgrove's Ties To Big Insurance Smells To High Heaven

When it comes to seeing clearly the insurance industry's responsibility in creating the economic devastation it caused South Mississippi's Katrina-ravaged home and business owners, former Governor Ronnie Musgrove can't see past the end of his paycheck. Since July 2004, Musgrove has been on the payroll of the law firm Copeland, Cook, Taylor & Bush, the same law firm that Gulf Coast News reported "is involved what with almost every Mississippi insurance case." And not on the side of home and business owners, either. [More]

Musgrove Insults Gulf Coast, Writes Off South Mississippi Voters

When former Governor Ronnie Musgrove traveled to Gulfport, Miss., to announce his campaign for the U.S. Senate seat recently vacated by Senator Trent Lott, he stood on the property across from the harbor . . . and totally missed the boat.

Not once did his speech utter the phrase Katrina recovery. Not once did his speech mention insurance reform. Not once did his speech tell Mississippi's Katrina survivors that he intends to work shoulder-to-shoulder with Congressman Gene Taylor, our much beloved local hero, to pass Taylor's ground-breaking insurance reform legislation, which is now awaiting action in the US Senate. Not . . . one. . . word. Nope. None. Nada. Zero. Zilch.

Talk about a slap in the face. Come to our home area and not deliberately tell us in your SPEECH that our primary problems with insurance and other Katrina-related recovery issues are your priorities?! What an insult to every man, woman, and child whose lives Katrina impacted. [More]

Governor's Race Offers Clear Choices

Of course, the state's budget deficit also ballooned under Musgrove's watch -- from a surplus of about $230 million when he took office in January 2000 to a deficit currently estimated at between $450 million and $700 million.

The governor shares some responsibility for this. After all, two of the largest spending increases occurred in state agencies that report directly to the governor: corrections and social services. [More]

Scruggs Aided Musgrove With Bank Loan

GULFPORT -- Amy Tuck followed in Ronnie Musgrove's footsteps when she received financial favors from multimillionaire lawyer Richard "Dickie" Scruggs.

Before he guaranteed more than $500,000 in loans for Tuck in 1999, Scruggs had guaranteed a $75,000 campaign loan for Musgrove four years earlier. Both were Democratic candidates for lieutenant governor when they received the loans.

Tuck, who switched her political allegiance to the Republican Party last year, succeeded Musgrove when he was elected governor.

Under the state's constitution, the lieutenant governor is a powerful executive who makes all appointments to state Senate committees and refers bills to committees. Important legislation can die in a committee without the full Senate ever having the opportunity to vote on a bill.

The position has been characterized by some political observers as having more power than the governor.

On Wednesday, the manager of Musgrove's gubernatorial re-election committee said he took out the $75,000 loan guaranteed by Scruggs from Merchants & Marine Bank, which is based in Pascagoula. [Full-Text (PDF)]

Musgrove Takes Illegal Campaign Donations

Elections in Mississippi don't come cheap. According to information from the Secretary of State, this year's gubernatorial campaign by June 16 had racked up a total of 51,200 for Republican Mitch Tyner, 3.2 million for Republican Haley Barbour and about 4 million for incumbent Democrat Ronnie Musgrove.

With these kinds of figures pouring in, it can be difficult keeping track of it all, as Musgrove campaign headquarters has recently discovered.

Musgrove's campaign office recently soaked in about 5,000 from Cortez Byrd Chips, Inc., 2,500 from JAV, Inc. and a total of 2,000 from Southern Industrial Contractors, Inc. While donations from businesses during
gubernatorial campaigns is certainly nothing new, donations over 1,000 from single businesses in Mississippi is a definite no-no-overshooting the legitimacy of the Cortez corporations of about 4,000, JAV of about 2,500 and Southern Industrial to the tune of 2,000.

Mississippi Republican Party Chairman Jim Herring pounced the figures June 11, calling on Musgrove to explain why his campaign had accepted contributions exceeding the 1,000 cap.

"Mississippians expect their elected officials to follow the law," Herring said. "I call on Governor Musgrove to explain why his campaign accepted these illegal contributions and to refund the money immediately." [Full-Text (PDF)]

Musgrove To Return $6,500 Contributions That Exceed Legal Limit

Democratic Gov. Ronnie Musgrove will return about $6,500 in corporate contributions that exceeded the state's campaign finance legal limit.

State law restricts corporations from donating more than $1,000 per year to a candidate's campaign. The campaign finance reports filed earlier this week with the secretary of state's office showed Musgrove accepted at least three contributions that exceeded the limit.

Court Rosen, Musgrove's communications director, said Thursday that accepting the contributions was a mistake and that the funds above the $1,000 limit would be returned. The amount of money being returned totals about $6,500. he said.

Quinton Dickerson, campaign spokesman for Republican gubernatorial candidate Haley Barbour, said the Musgrove campaign needs to play by the rules.

"I am glad to see they are returning those illegal contributions," Dickerson said. "They need to play by the same rules as everybody else." [Full-Text (PDF)]

Musgrove Defends Judicial Appointments; Feds Examining If Campaign Contributions Influenced Governor

Gov. Ronnie Musgrove said Tuesday that character, not campaign contributions, determines who he appoints to fill state judicial vacancies.

Musgrove responded to a report Sunday in The Clarion-Ledger that federal investigators are examining whether campaign contributions influenced his judicial appointments. Musgrove said he has not been contacted by investigators, and that his appointments are aboveboard.

Scrutiny of the governor's campaign contributions is apparently part of a broader investigation into the state's judiciary. Federal and state authorities are trying to determine if lawyers paid off judges' personal loans in exchange for favorable rulings, sources close to the investigation say.

No one has been charged in connection with the investigation. ...

As governor, Musgrove appoints judges to fill vacancies in the state court system until elections are held.

Biloxi lawyer Paul Minor donated $27,125 to Musgrove shortly before Musgrove appointed Jim Brantley to the state Court of Appeals in August. Minor spoke at Brantley's swearing-in ceremony.

Minor, who did not return phone calls, is one of the lawyers who has been named in the federal and state investigation into the state's judiciary.

Musgrove denied that Minor, or anyone else, has ever influenced his decisions.

"Paul Minor has been a longtime supporter of mine as I have had longtime supporters all across the state, in all walks of life," Musgrove said. "He has voiced support, like hundreds of others. He, like many others, has been disappointed by my appointments." [Full-Text (PDF)]