FAYETTEVILE — U.S. District Judge Timothy Brooks told federal prosecutors this morning to put the full context and full strings of email exchanges into evidence in the public corruption trial for former state Sen. Jon Woods.
Brooks’ ruling came after arguments away from the jury. Patrick Benca of Little Rock, Woods’ attorney, said the government had introduced single emails in isolation on a variety of topics in the trial when there are emails that contain the entire string of conversations that would provide full context.
Assistant U.S. Attorney Elser argued many of those “string” emails include names and other information that would have to be redacted.
Brooks ruled the government should introduce the full context and full strings of email exchanges, both as a matter of principle and as a practical matter to save time, even if redactions are needed.
“If you’re giving them the haystack and pulling out the needles, that doesn’t really sound fair,” Brooks said from the bench before the jury was brought in.
The emails at the center of the dispute this morning show, and legislative staff testified, that it is common for lawmakers to allow a third party to work with staff to draft measures, but not without permission of the lawmaker for whom the measure is being drafted.
The ballot-approved constitutional amendment legalizing medical marijuana in 2016 grew out of a draft drawn up for Woods by legislative staff in 2015, according to court testimony.
Ecclesia College, a private religious school at the center of kickback allegations, would have benefited from the amendment Woods had drafted, but that portion of the proposal did not make the ballot.
Woods is on trial in federal court, accused of taking kickback from Ecclesia’s president at the time in return for state grants.
Northwest Technical Institute in Springdale and Crowley’s Ridge Technical Institute in east Arkansas would also have drawn a share of state sales taxes on medical marijuana under Woods’ draft proposal and are named in the draft, the defense brought out out in cross-examination today. Other beneficiaries were the Arkansas Historic Preservation fund and the state Department of Career Education.
David Couch, an attorney in Little Rock, helped draft Woods’ proposed amendment, testified Matthew Miller of the Bureau of Legislative Research. Couch later led the petition drive that put a legalization amendment on the 2016 general election ballot. Voters approved it.
“I’ve never done a side by side [comparison], but a lot of things appeared similar to me,” Miller testified today about the draft amendment and the ballot initiative proposal. Miller also testified he cannot recall any party outside the Legislature or legislative staff but Couch helping in the draft of that proposal, but could not guarantee that under oath.
In effect, Woods and Couch used legislative staff to write the early drafts of what became a ballot initiative, and planned to use the initiative route rather than the legislative option while the resolution was being drafted, Miller said during cross-examination by Benca.
“You have a certain set of skills others do not have, correct?” Benca asked.
“You could say that,” replied Miller, who drafts all constitutional amendment proposals to go before the Legislature.
Miller’s response set off the 45 minute discussion away from the jury. Benca argued the government “cherry picked” records to introduce as evidence, particularly emails and legislative records. The government only sought emails on the draft marijuana resolution that directly concerned the defendants they are pursuing, he argued. The full record could show other parties such as Couch who were at least equally involved, Benca argued.
Woods was indicted in March 2017, accused of a kickback scheme involving grants issued in 2013 and 2014 from the state General Improvement Fund. Two alleged co-conspirators — Randell Shelton, formerly of Alma, and Oren Paris III, former president of Ecclesia — were indicted with Woods. Former state Rep. Micah Neal pleaded guilty for his part in the scheme on Jan. 4, 2017.
Neal was the government’s first witness in the trial, which began April 9. The trial is expected to last at least through next week.
Paris pleaded guilty April 4 to one count of conspiracy and will testify for the government. He resigned as Ecclesia’s president and from the college’s board the previous day. His sentence and Neal’s are pending. Paris disguised the kickbacks as consulting fees paid to Shelton’s company, Paradigm Strategic Consulting, according to the indictment. Shelton then passed the money back to Woods and Neal, the government contends.
Woods directed the most grant money Ecclesia received from the General Improvement Fund at more than $350,000, court records show.
Woods directed a $200,000 grant to Ecclesia in September 2013, grant records show. Neal, of Springdale, supported a $50,000 grant to the college and Woods another $150,000 in December 2014, also according to grant records. The amount of money Woods is accused of receiving as a kickback isn’t specified in the indictment. It claims much of that money was paid in cash, except for one transaction made to Woods by wire transfer for $40,000.
In one transaction, Paris authorized $50,000 to Shelton’s firm Sept. 27, 2013 — the same day Paris signed an agreement for the college to accept a $200,000 state General Improvement Fund grant, the indictment says. Shelton used the $50,000 that day to open an account for his business, which had been incorporated the day before, the document reads.
Less than a week later, on or about Oct. 1, 2013, Shelton transferred $40,000 by wire from that business account into the personal bank account of Woods, according to prosecutors. Defense attorneys have said the money transfers to and from Woods were loans and money to pay back loans.
Woods faces 15 counts of fraud, all relating to either wire or mail transfers of money. Paris and Shelton were named in 14 of the fraud charges. All three were charged with one count of conspiracy to commit fraud. Woods is also charged with one count of money laundering in connection with the purchase of a cashier’s check.
Woods and Neal also directed $400,000 in grant money to AmeriWorks, court and state records show. Neal said he received $20,000 delivered by Woods for steering $125,000 to AmeriWorks. Grant records show Woods directed $275,000 to the company.
AmeriWorks was incorporated by lobbyist Russell “Rusty” Cranford and described in a grant application as a work-training program. Cranford, 56, is set for trial June 11 in federal court in Springfield, Mo., on one count of conspiracy and eight counts of accepting bribes in an unrelated indictment.