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Tues: Hudson pleads
posted at 2008-05-27 23:30 | Last modified 2008-05-27 23:47
Former DENR Senior Field Officer Boyce Hudson appeared before US District Judge Terrence Boyle this morning to enter a guilty plea on two federal corruption charges.
One, "extortion under the color of official right," was for soliciting a bribe of $196K to expedite air and water permits for Agri-Ethanol Products of Raleigh. That one’s worth twenty years and a $250K fine. The second was for cashing a check that resulted from the arrangement, aka money laundering. That comes with a potential for 10 years behind bars and another $250K fine.
Hudson’s voice never wavered as he answered Boyle's questions about whether he understood what his plea entailed: “Yes, sir.”
What's new
We got a few interesting nuggets from the presentation of the federal case by Assistant US Atty. John Bruce.
- The $15K payment Hudson accepted came from an FBI plant. Apparently, the potential investor mentioned in the charges tipped off the FBI that AEP’s partners were “bragging” about the deal they’d cut to move their permits through.
In the day’s best laugh line, Judge Boyle asked Bruce, “Is that the sort of thing you’d want to put on a prospectus?”
In response to the tip, the FBI sent in an undercover agent posing as an interested investor to get the goods on Hudson -- and, one might surmise, AEP too , though no one’s saying at this point exactly whom Hudson “aided and abetted.” (N.B.: To date, no charges have been filed against anyone at AEP.)
- Judge Boyle seems to be very interested in potential connections between Hudson and powers higher up, particularly in the legislature. If AEP was seeking help with a permit, he asked Bruce, “why did they go to a legislative lobbyist to help them,” rather than someone in permitting? Bruce just shrugged.
- Hudson’s sentencing was scheduled for July 28th. In the meantime, his attorney said Hudson has agreed to cooperate with what US Attorney George Holding described repeatedly as “an ongoing and continuing investigation.”
At 67 years old, facing a possible 30 year sentence, Hudson has every conceivable reason to be as helpful as he can – and the fact the Feds are giving him the chance, despite their strong case against him, is a pretty clear signal they think he may know something they useful.
US Attorney George Holding wouldn’t speculate about future indictments. He also wouldn’t say much about what sentence Hudson might ultimately face. Holding says federal sentencing guidelines are now strictly advisory, as opposed to mandatory, so he has no idea what Hudson might get. On the other hand, he pointed out that Hudson “has pled guilty to some very serious offenses with serious penalties.”
Fallout
It's a pretty safe bet NCDENR’s going to get closer scrutiny. Spokeswoman Diana Kees told the N&O’s Ben Niolet Friday that Hudson had no real leverage. But as Holding said today, the facts indicate otherwise: It took Hudson’s “client” AEP 29 days to get permits most folks wait 1-2 years for.
Some observers (notably the Carolina Journal’s Don Carrington) have posited a link between AEP predecessor DFI, NCNP's Rick Watson, and Senate leader Marc Basnight. For now, though, it looks as though the Feds don’t see a connection. Basnight staffers said today they’ve had no formal or informal inquiries about the case from investigators.
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