FORMER STATE FIRE COLLEGE PRESIDENT LANGSTON CONVICTED IN CORRUPTION CASE

BIRMINGHAM, AL—WILLIAM LUTHER LANGSTON, 66 was found guilty today in Tuscaloosa on the thirty-eight count indictment by a federal jury after an eight-day trial. The jury deliberated for approximately 3 hours before finding him guilty of all counts. Additionally, the jury found that Langston must forfeit approximately $1.7 million dollars to the government. The $1,700,000.00 represents the amount diverted from state coffers that Langston received through all of the charged schemes listed in the indictment. Prior to Langston’s departure from the courthouse, the Court, as a condition of his release, required him to pledge his house as collateral. He was further ordered to submit to electronic monitoring.

"The quick verdict shows the jury dismissed outright the defense claims, and saw the Langston crooked deals for what they were—crimes,” stated United States Attorney, Alice H. Martin. "I thank the trial team and agents who have worked diligently for justice to be done in this case. We hope this prosecution will ensure future leaders at the fire college work for Alabama firefighters' benefit".

Langston’s sentencing hearing has not yet been scheduled by the Court. He faces imprisonment of up to twenty years and/or a fine of $250,000 on each count of the four counts of mail and wire fraud. He faces imprisonment of 20 years and a fine of $500,000 or twice the value of the property laundered on each of the two money laundering conspiracy counts. He faces imprisonment of not more than five years and/or a fine of $250,000 on each of the remaining four conspiracy counts. He faces ten years imprisonment and/or a fine of $250,000 for each count of the 25 counts alleging theft from an organization receiving federal funds.

In August, 2007, U. S. Attorney Alice H. Martin and Acting Alabama Attorney General Richard Minor announced that Langston was charged in a thirty-eight-count indictment with mail fraud, wire fraud, conspiracy, money laundering conspiracy, and theft from an organization receiving federal funds.

Langston was an Alabama state employee who served as the Executive Director for the Alabama Fire College (“Fire College”). He was responsible for the overall management of the Fire College and as such he signed contracts and obligated state funds for the Fire College. The Fire College was created to provide vital training and certification for Alabama’s firefighters, paramedics, and other first responders. It was located on the campus of Shelton State Community College (“Shelton State”), and Langston was on the payroll of Shelton State, which is an Alabama Department of Post Secondary Institution.

The Fire College created a private non-profit foundation whose purpose was to support the mission of the Fire College. Langston served as the foundation’s President and as Chairman of the Alabama Fire College Foundation (“Foundation”) Board of Directors.

"The jury's verdict today marks another victory for the citizens of Alabama,” stated Richard J. Minor, Acting Attorney General. Their verdict is a vindication to all who strive to have honest and transparent government. We will continue to seek to hold those accountable who have raided the state treasury for their own personal greed."

"Today's verdict should serve as a reminder to the citizens' of north Alabama that the FBI will not cease in our efforts to combat public corruption at every level,” stated Carmen Adams, Special Agent In Charge, Federal Bureau of Investigation. “I thank the many men and women of the FBI, the U.S. Attorney's Office, the IRS and the Alabama Attorney General's Office who worked tirelessly to bring this case forward."

"Public Officials who choose to be part of the fraud problem rather than part of the solution should understand that their future may include criminal prosecution,” stated Reginael McDaniel, Special Agent in Charge, IRS Criminal Investigation. “The evidence in this case illustrates what can happen when a public official chooses greed over integrity."

Langston was found guilty of a mail and wire fraud scheme to defraud the Foundation. Specifically, Langston used his various positions with the Fire College and its Foundation to divert Foundation funds of approximately $65,000 for his personal benefit and for the benefit of family members and friends. Langston diverted tens of thousands of dollars for merchandise for his personal use; $5,000 for each of his two grandsons; over $8,000 for his grandsons’ elementary school tuition and after school care; approximately $5,000 for appliances for his son’s new house in Millbrook; $7,500 for Gail Phillips, his former secretary who was recently convicted for stealing state money to repair her daughter’s house; and $335,000 for a residence he intended to make his personal home.

Langston was also found guilty of conspiracy and theft from the State of Alabama involving the use of ghost employees from January of 1998 until June of 2006. Specifically, Langston and coconspirators put relatives of friends on the Alabama Fire College payroll, and did not require them to provide services commensurate with their pay. These employees were referred to as “ghost employees.” Langston prevented others at the Alabama Fire College from taking any action to remove these “ghost employees” from the payroll. In addition, Langston obtained employment contracts and agreements for his two children at other Alabama Department of Post-Secondary institutions and provided documents and other assistance so that his relatives could obtain money from these institutions.

Langston was found guilty for annually, from 2002—2005, appointing Malinda Morgan as a “Curriculum Specialist” at the Alabama Fire College and causing Morgan to be paid $21,424 (2002-2005) and $18,924 (9/05—6/06) when in fact Morgan was a ghost or nominal employee who did little or no meaningful work. Additionally, Langston was found guilty for a similar ghost or nominal employee scheme which annually appointed Steve Johnson as an “EMS Coordinator” for $49,444 from September 2002—August 2004 and for raising the salaries of at least five Alabama Fire College employees by approximately $3,000 with the intent to request and in fact received $1,000 kickbacks from each employee. These events occurred in 2001—2003. Malinda Morgan and Steve Johnson are the children of Roy Johnson, the former chancellor of the State of Alabama Department of Post-Secondary Education.

Also, Langston was found guilty for a scheme that, between December of 1999 and October of 2004, involved the diversion of approximately $512,000 in Alabama Poison Center reimbursements owed to the Fire College into the Foundation account which Langston controlled. The Alabama Poison Center is a statewide non-profit poison center located within the Alabama Fire College. The Alabama Poison Center provided emergency poison management to Alabama residents and their health care providers. The Director of the Alabama Poison Center reported to Langston. The State of Alabama would make appropriations to the Alabama Fire College to pay the salaries and other costs of the Alabama Poison Center. The Alabama Poison Center’s salaries and other costs exceeded the State appropriation and it would reimburse the Alabama Fire College that amount.

Langston was also found guilty for the diversion of discretionary funds directed by coconspirator Bryant Melton, a former member of the Alabama House of Representatives. These funds were diverted into the Foundation and then dispersed back to Melton through phony scholarships to Melton’s daughter. Melton has previously pled guilty in connection with this investigation. Also, Langston was found guilty for the diversion of State funds to the Woodbank project, a house that the Shelton State Community College Foundation began building in May of 2003. The house, in the Woodbank subdivision in Tuscaloosa County, was to serve as the residence of the President of Shelton State. From May 2003 until August 2004, Langston diverted approximately $100,000 of State money from the Fire College and Shelton State to pay for this house. Langston and others attempted to conceal that State funds were being used by hiring contractors that did work for the Alabama Fire College or Shelton State to work on the house.

For several of the final Counts, Langston was found guilty for the diversion of State funds to coconspirator Robert Lloyd Nix through Access Group, Inc, a computer software firm that did business with the Fire College, and through the Poison Center. Co-conspirator James Winston Hayes was a principal owner of the Access Group. Nix was a longtime associate of Langston and Langston, through a series of fraudulent contracts with the Access Group diverted monies to Nix. Langston also had the Poison Center Director employ Nix even though Nix had no real duties related to the Poison Center. Nix has previously pled guilty in connection with this investigation.

This investigation was conducted by members of the North Alabama Public Corruption Task Force which includes the Alabama Attorney General’s Office, Acting Alabama Attorney General Richard Minor, the Federal Bureau of Investigation, and the Internal Revenue Service. The case was prosecuted by Assistant U. S. Attorneys George Martin, Tamarra Matthews-Johnson, and James Ingram with Special Assistant U. S. Attorney Bill Lisenby.

A copy of this press release may be found on the Web site of the U.S. Attorney’s Office for the Northern District of Alabama, www.usdoj.gov/usao/aln. Related court documents may also be found on the Web site of the U.S. District Court for the Northern District of Alabama at http://www.alnd.uscourts.gov.