A filing today by special prosecutors cites evidence and emails that portray Alabama House Speaker Mike Hubbard as a man who, despite wearing the fine cloth of one of the state's most powerful men, teetered on the brink of financial collapse and desperately pleaded with friends, lobbyists and principals for money and jobs in a way that put him on the wrong side of the law.
Hubbard was indicted last year on 23 felony counts of using his office for personal gain. The revelations today come in response to a motion by Hubbard's defense team to more specifically describe the charges against the Speaker.
The filing and the cited evidence indicate Hubbard was facing tremendous financial pressure. After being elected Speaker in 2010, he was laid off by his primary employer, Auburn's IMG Sports Network. His own company, Craftmaster, failed to pay employee withholding taxes to the federal government in 2011, which led to the company defaulting on a $600,000 loan from Regions Bank personally guaranteed by Hubbard.
Hubbard went to Will Brooke, a financial advisor at Harbert Management Corporation and a board member at the Business Council of Alabama (and a former candidate for the U.S. House in the 6th District) to develop a plan.
"Failure is not an option as it means personal and political ruin," Hubbard wrote to Brooke, who was mentioned in the indictment.
The filing says Hubbard asked for financial favors from Brooke -- who would be considered a principal under the Ethics Law, and thus out of bounds for such activity.
"It's ironic that I was the 'architect of putting a pro-business legislature in place yet businesses seem to want to avoid any personal association with me like the plague," he wrote to Brooke. He went on to lament that he was "Too much of a lightning rod. I suppose, as they say, no good deed goes unpunished."
Brooke sent him a warning back.
"No Mike," he wrote. "That's not it. I think that folks are afraid to mess up, on either their or your side of the equation."
Because it is illegal.
But Brooke did work on a plan for him. He put together a free financial investment plan to raise $1.5 million from 10 investors at $150,000 each. In addition to the free plan, Brooke - believing Hubbard would step down as Speaker if he could not right his financial ship -- kicked in the first $150,000.
Hubbard went to former Sterne Agee CEO Jim Holbrook, who agreed to "do one of the $150,000 deals." He went to Auburn Trustee and Great Southern Wood chief Jimmy Rane and Hoar Construction CEO Rob Burton, and each supplied another $150,000.
In all they raised $600,000.
Hubbard also took his troubles to former Gov. Bob Riley -- a registered lobbyist -- saying he had to sell off stocks to live and lamenting that his "quest to be an effective Speaker" had "been a detriment to personal and financial well-being."
Riley sent him an email back, advising him to "quit telling people you may have to step down as Speaker due to financial concerns."
Hubbard even begged for a job from Riley.
"Can I just come work for BR&A?" he wrote Riley in an email. "I need a job and this way I would work for someone I respect."
Hubbard, according to the filing, knew it would be illegal for him to work for Riley, because Riley is a lobbyist. He suggested Riley could "de-register" as a lobbyist to get around the law.
"I need to be a salesman for BR&A," Hubbard wrote. "Except for those ethics laws. Who proposed those things?! What were we thinking?"
gue in cheek. Both Hubbard and Riley were instrumental in passing revisions of the Ethics Law, citing a "culture of corruption" among the Democrats that long held power.
Still, Hubbard "proposed an alternative scheme" to get around that law.
"I still believe that you are a 'strategic business consultant,' not a lobbyist," he wrote to Riley. "You could hire a lobbyist for BR&A ... which will allow BR&A to hire Auburn Network Inc. to handle your marketing needs."
Riley did not bite. Instead he advised Hubbard to make a choice.
"From now on you and I are going to be suspect in everything we do," Riley wrote. "The question now is DO YOU 'WANT' to be Gov. - or - make a lot of money: good thing is you could do either but I am not sure it's possible to do both."
Riley helped Hubbard get a $12,000 a month job as a consultant with Southeast Alabama Gas District, but Hubbard continued to ask him for help with that job.
"I hope you can help me with the suppliers in locating in SEAGD areas," Hubbard later wrote. "I need to deliver something in order to justify my existence."
After SEAGD cut his monthly pay to $7,500, Hubbard pleaded with Riley.
"I desperately need to get some site visits set up to show I am generating interest," he wrote Riley. "Any help or advice would be appreciated." He went on to write "I need to visit with you and try to figure out what I need to be doing. I don't want SEAGD to cut me loose."
As the filing puts it, Hubbard "violated the ethics law by soliciting and receiving things of value from lobbyist Bob Riley. It argues he did the same with Riley's daughter, Minda Riley Campbell and BCA lobbyist Billy Canary.
Hubbard's lawyer, Mark White, responded this afternoon with a statement saying "Today's filing is bizarre, improper, and non-responsive. It is more argument and political statement than pleading. It is replete with false statements and empty rhetoric. Apparently designed to further mislead the public, the filing demonstrates a basic lack of knowledge about the state ethics laws and the relevant facts in this matter." He said the filing, "just days before the start of the 2015 legislative session," raises questions "about political timing and motivations surrounding this matter."
The following are expanded descriptions by the state of other counts in the indictment.
The Alabama Republican Party
In one count, Hubbard is charged with directing money from the Alabama Republican party to a printing company he owned, Craftmaster, through an intermediary, Majority Strategies.
"Hubbard repeatedly used his position as ALGOP chairman to essentially embezzle over $1,012,444 in party money to Hubbard's printing and media business," the filing said.
Hubbard used his position as chairman to force Majority Strategies to subcontract printing services from Craftmaster, even though Craftmaster was not cheapest, the filing said, citing emails from Majority Strategies executives Randy Kammerdiener and Brett Buerck complaining about the cost.
"Because I am a greedy bastard I would rather us swallow our pride and also make a lower profit margin in order to keep the client rather than getting black-balled in a state because we think the printer is making too much money and we don't like being forced to use them," Kammerdiener wrote to Buerck.
Kammerdiener wrote an employee of the Republican Party, Michael Joffrion, an email that said "Per Mike, we're printing at Craftmaster and just passing the actual charges on to you all (GOP)."
"Hubbard used his position as ALGOP chairman to force Majority Strategies to subcontract its printing business with the more expensive Craftmaster to benefit Hubbard and the business he owns," the state says.
Alabama Pharmacy Cooperative
APCI in 2012 and 2013 sought to influence the legislature on Medicaid issues. The group hired Ferrell Patrick as a lobbyist, while at the same time paying Hubbard $5,000 a month as a consultant.
Hubbard sent an email to Patrick in which he agreed to contact the chair of Alabama's Medicaid Transition Task Force, Dr. Don Williamson, in support of Patrick's position.
Hubbard eventually voted yes on a bill that would essentially give APCI a monopoly over state Medicaid drug business and, according to the filing, APCI president Tim Hamrick sent him a letter thanking him for adding the language.
"By voting for this legislation, and participating in the legislative process to bring the bill to a vote in the House, Hubbard violated the Ethics Law's prohibition against legislators voting for legislation with a conflict of interest," the filing said.
Southeast Alabama Gas District
With help from Riley, Hubbard got the $12,000 per month contract with Southeast Alabama Gas District (total of $288,848) as an economic development consultant.
The district got advice from the ethics commission prior to the employment, but in that letter commission lawyer Hugh Evans warned "the Speaker may not use his position or the mantle of his office to assist him in obtaining consulting opportunities or providing benefits to his consulting business or his clients."
Hubbard "repeatedly wore the mantle of his office," the filing said. "That is, Hubbard sought compensation from SEAGD for his activities as a public official and therefore used his public office or personal gain."
In his "activity reports" describing what he did for SEAGD, Hubbard wrote of meeting with Gov. Bentley, Commerce Secretary Greg Canfield and numerous other elected officials as work he had done.
Although it is illegal for members of the legislature to be paid to represent a person or business before an executive department, Hubbard met with Canfield and the governor's office to seek tax credits and other benefits for clients, the filing said. "Thus, when Hubbard had meetings and other dealing with the Department of Commerce and the Governor's office on behalf of SEAGD, he violated the Ethics Law."
Edgenuity
Hubbard was also paid $7,500 a month by Edgenuity Inc., which also employed Ferrell Patrick as a lobbyist.
Patrick, according to the filing, Helped Hubbard obtain "Lucrative consulting contracts" with his clients. Hubbard thanks Patrick in an email saying: "I am very excited about the opportunity to work with some of your clients and appreciate you assistance," he wrote.
According to the filing, "Hubbard solicited and received $7,500 per month from Edgenuity, lobbyist Ferrell Patrick's principal, under circumstances that indicate that the money was provided for reasons related to Hubbard's service as a public official."
Bobby Abrams and CV Holdings
In 2012, Abrams hired Hubbard as a $10,000-a-month consultant to help his plastic cup company with sales, even though Hubbard admitted he knew nothing about cups.
He later called the patent office on Abrams behalf and directed his chief of staff, Josh Blades, to help speed up the patent process, and phone records indicate Blades called the U.S. Patent Office.
The state says Hubbard used state equipment, time, people and property under his control to benefit himself.