Thursday, November 6, 2014

EPPS and McCrory indicted. Feds allege McCrory paid off Epps mortgage for sweetheart deals.

Copy of indictment is posted below. 

Highlights: 
-McCrory spent over $350,000 (allegedly) to pay off  Epp's home mortgage
-Epps awarded numerous no-bid contracts to companies owned or represented by McCrory. 
-Feds seek forfeiture of all Epp's properties, cars, and funds for tax evasion. 
-Epps & McCrory had a kickback scheme making monthly payments based on "consulting" fees. 
-Epps and McCrory used a money laundering scheme  
-McCrory served on the Penitentiary Committee in the Mississippi House of Representatives from 1990-96.

A federal grand jury indicted former MDOC Commissioner Chris Epps and former Rankin County School Board President Cecil McRory on 49 counts of fraud, tax evasion, .  Here are the highlights from the indictment:


*McCrory sent a cashier's check for $100,000 to Countrywide in 2008 to be paid towards the mortgage on Mr. Epps' home (#16) after Epps "solicited" him to do so (#15).
*McCrory sent another cashier's check for $100,000 to Countrywide again in 2008 to be paid towards the mortgage.  The funds went from his personal bank account through the cashier's check to the account at Countrywide.  Paper trail indeed. (#17)
*Mr. Epps awarded a no-bid contract three weeks later to a company that paid Mr. McCrory for her "services" (my quotes. #18).  Mr. Epps signed a lease with a company owned by Mr. McCrory in December for a new facility at Walnut Grove.
*McCrory sent yet another payment ($50,000) to Countrywide to be used towards the retirement of the Epps mortgage in January 2009. Total now is $250,000.
*Epps & McCrory inked a deal for a McCrory Company (American Transition Services) to operate the Walnut Grove facility (#22).
*Time for a mortgage payment.  McCrory sent a $101,309 cashier's check to the lender to be used to pay off the Epps mortgage.  Total is now $351,000 (we will round off.). The home was thus completely paid off. 
*"Epps told McRory that McCrory could get anything he wanted in the future from MDOC."  (#24).
*Epps deposited $9,000 in cash at five different bank accounts on July 30, 2009. This is important because it means Epps was trying to keep the deposits below the $10,000 threshold that triggers federal suspicious activities reporting requirements.
*Epps and McCrory signed yet another contract for Walnut Grove. More contracts were awarded to companies that were owned or represented by McCrory in 2010, 2011, and 2012.
* McCrory  wired $14,000 to Wells Fargo to  be used towards the mortgage on his Biloxi condo in September 2012  So Mr. Epps awarded another contract to a company that used McCrory as a consultant.  Epps allegedly told McCrory "I got us $12,000 per month."
*Time for another payment.  McCrory wires $14,00 again to Wells Fargo for the condo loan. This resulted in another no-bid contract in October to a company that paid McCrory.
*McCrory sent another $40,000 to Epps account at Edward Jones in on Valentines Day in 2013. . Make that $28,000 to condo and $40,000 to Epps since the home mortgage was paid off by McCrory. Damn, this really was a sweetheart deal. Allegedly.  A non bid contract went to the same company in July. Guess they were tired of writing checks. (#36)
*McCrory sent $50,000 to Epps' Edward Jones account in September 2013. Epps wrote a letter to Personnel Board that stated Adminpros as the only vendor who could provide Medicaid services for inmates.
*McCrory paid Epps four payments of $8,000 from November 2013 to March 2013 from his "consulting fees". (#42)
*Epps "structured over $900,000 in cash" by depositing cash in his checking accounts or by purchasing cashier's checks while staying below the $10,000 reporting requirement so as to hide the "kickback scheme."   See #45 on page 10 for a list of the payments of kickbacks.

Then there is the reporting of income.  The indictment states Mr. and Mrs. Epps slightly under-reported their income and submitted false tax returns. This is probably the basis for the seizures of cars and property.  The actual income is in parenthesis.

2008: $205,540 ($405,540)
2009: $206,511 ($357,820)
2010: $217,444 ($249,144)
2011: $239,245 ($276,245)
2012: $217,109 ($330,109 That's more like it.)

The government seeks the forfeiture of all property:

*the condo in Pass Christian
*the home in Rankin County at 511 Shalom Way in Flowood
*all funds in accounts at Edward Jones, Regions Bank,  Bankplus, and Mississippi PECU.
*A 2010 Mercedes Benz S550 and 2007 Mercedes Benz S65.

The government also seeks all other property that might have been transferred.
2013: $209, 901 ($386,901)

Mr. Epps and Mr. McCrory will be arraigned today at 1:00 in U.S. District Court. 





52 comments:

Anonymous said...

All of this started under Haley's watch.

Anonymous said...

They're toast.

Anonymous said...

after reading all those $$ transfers DAMN how could you not get caught red handed? Typical example of greed and power that has always existed.

Anonymous said...

Wow -- I"m depressed for them. That's some indictment and will be hard to refute by their defense attorneys. In today's electronic world, how did they EVER think they were going to get away with this? Wonder who "blew their cover"????

Anonymous said...

It appears that Epps was not only morally corrupt, but also extremely stupid.

Anonymous said...

Real life Shawshank. Hope Epps enjoys his time in the hole.

Anonymous said...

No wonder Corrections is a big cost on the state.

Anonymous said...

It all started on Haley's watch.

Anonymous said...

It's too bad that this is a Federal offense and if convicted Mr. Epps will go to one of the country club Federal prisons. He'd be better rehabilitated at one of Mississippi's highly accredited privatized prisons like those featured recently in the Clarion Ledger. Oh, but I forgot that Mr. Epps was head of the accreditation organization that awards those high accreditations.

Anonymous said...

After reading parts of the indictment, anyone out there know how I could (I'm planning on winning big) cash $50,000 in casino chips without paying taxes? Apparently there's a limit at MS casinos on how much in chips you can cash a day. $10,000 daily limit. I guess you cash $9,500 every couple of days, stuff it in a safe and pay cash for daily items. Then again, I sure don't want to be doing time with Epps.

Anonymous said...

He just fell for the pitch of a very experienced GOP legislator and Tea Party guy. That guy was on PEER. McCrory, like Farmer, is filthy rich, yet spewing Tea Party venom about "taxes" and "GubMint" spending. He got 3.3 Million just from a single lawsuit. Yet being rich never stops the Rich from wanting to screech that Big Ole Bad Ole GubMint is trying to take your cookie and shooting down school bonds. Look at Scruggs. It's the hypocrisy of the TAXED ENOUGH ALREADY Party. Tax delinquents and militia types from the 1990s found a new cause to further enrich themselves and the Grover Norquists and Koches know they will profit immensely. It's not stupidity. It's their way of life. Government contracts are a great way to get rich, but all govt employees are "lazy" and "crooked." Remember the state Rep who steered 300K to his own printing firm in Rankin? His only mistake was getting elected so he was vulnerable. Brandon and Pelahatchie love the FLowood Tax Base paying for their schools, yet Farmer and McCrory have paid campaign minions in the Tea Party to shoot down Flowood school bonds after building new schools in their areas. Being morally bankrupt and hypocritical pays very well. Look through the property tax rolls in Rankin for all these guys. They don't even live in the area where they get elected. They know which way the wind blows and who to rile up come election time wearing Bib Overalls and screeching about "Big GubMint." But, yes, the tradecraft was pretty bad. You only get that way after a long time of doing it and letting your guard down, I bet.

Anonymous said...

Jerry Mitchell takes credit in 3 ... 2 ... 1.

Anonymous said...

It really all started with Musgrove, technically. Neither Haley or Musgrove are to blame.

McCrory must have made a deal. The feds have a lot of bank and check info that is very specific. It most likely came from McCrory directly once he realized the feds were on to something. Ill bet he makes a plea deal within a few days or weeks, if he hasnt already.

Anonymous said...

This is much bigger. Hopefully the feds will further investigate McCrory. He is owned by the street gangs in our State.

Anonymous said...

Musgrove was out of office by Jan2004. The buck stops at the top.

Anonymous said...

@10:11 AM, did you get your shoe wet?

Anonymous said...

I wouldn't be surprised if it were the Edward Jones' deposits. Under the Patriot Act, B-Ds make damn sure that they know the source of funds. If something seems off, they investigate at the home office level. Maybe the mortgage folks did it?

Anonymous said...

10:27. I have no idea whether or not McCrory made a deal but the detailed bank and check information can very easily be obtained from the banks. All the FBI had to do was subpoena monthly statements and research each item which is very easy given the imagining technology that banks use.

Anonymous said...

I'm not sure what the big deal is? Anyone with a brain can see that this indictment is the work of the devil. My suspicions were confirmed when I aw they had used Section 666 of Title 18 to make these allegations. The work of the devil I tell you...
NOT!

Anonymous said...

Also ironic that the Rankin County School Board's board attorney's office burned to the ground a few weeks ago. May not have a thing to do with the board itself, but if I were betting, I'd say he did some work for Cecil.

Anonymous said...

10:11, Who is "Farmer"? Is that a code word for Epps???

Also, if Chris McDaniels would have won, none of this crap would have happened!!

Anonymous said...

"Farmer" is Grumpy Farmer on the Board.

Anonymous said...

No surprise that GOP empty suit Pickering suddenly wants to look like an active participant in the investigation and indictment.

Strother Martin said...

Going back to the Epps quotes Kingfish uses, and they may come from the indictments, who else would be able to provide those to the government besides McCrory?

Related; I knew contracting with schools (usually by previous administrators) was big money, especially when one man has the authority to grant and sign off on contracts for services. BUT, SHIT AMIGHTY! Look at the money involved here, and that's just the amount that's been discovered so far. A couple of cars and a house ain't gonna cover that.

The man was making about 135k per year. All this lavish lifestyle was not a red flag to hundreds of people? Hell, he was living like the high sheriff back during Mississippi prohibition days.

(My robot word is inevitable)

Anonymous said...

Is Grumpy Farmer involved in this? His business partner is a guy named Ben Turnage, I doubt he's in bed with Cecil.

Anonymous said...

Pickering has been diligently investigating this!!! Since 2010...

Anonymous said...

10:11 AM

You imply that this is the result of the TP, or a TP guy. A guy who is rich, who espouses venom about "taxes" and "GubMint" spending...

I believe you will find that Democrats and establishment Repubs who are rich are equally known for their "hypocrisy and have found new causes to further enrich themselves".

Although preachers are considered to be a highly respected bunch, some have faltered. It certainly doesn't condemn them all - the message should continue to be spread. So it is with the "taxes" and "GubMint" spending message.

Although I'm not a TP'r, (I'm sure you would attempt to pigeon-hole me into that), I am glad this guy's been caught.

There's hypocrisy in all groups.

Anonymous said...

Epps hired Colette. Showing further poor judgment.

Anonymous said...

Hold on - hear there is much more to come. McCrory is only one of the beneficiaries of this type scheme. Imagine there are several folks around the metro area and elsewhere that have puckered up rear-ends.

McCrory knew he was caught and probably has 'cooperated' to some degree, as has Epps. Once caught, they naturally would try to cut the best deal they could and that requires talking. Understand that the deal still ain't going to be too good; hope they don't drop the soap in the shower.

Anonymous said...

The Mississippi prison system corrupts all who touch it -county and State.

Anonymous said...

Epps did this with several people

Anonymous said...

Cecil McCrory (GT Enterprises, Inc./Wholesale), (Zip Code 39043) $5000 To HALEYS PAC on 02/19/08

Anonymous said...

These two obviously aren't the two brightest crayons in the box. If they're found guilty, I hope they are put under the jail. This of course is federal, but it would be nice if they could spend time in the general population at Parchman. Hopefully they won't get a slap on the wrist like Scruggs did.

Anonymous said...

Sounds just like Claiborne, CE, Austin and Nan Frazier! Guess they will be able to all swap stories in the fed pen

Anonymous said...

Damn 1:25, we get it. You don't like Haley. I'm sure that contribution was what put all this in motion. (BTW, $5k was not a particularly significant contribution in that cycle, or today for that matter. And I'm sure you have checked McCrory's other contributions to other candidate/politicians. While you are at it, don't overlook the fundraiser Epps held at Parchman in 2003 for Musgrove.)

Guess in the future every politician should take every contribution and ask for a complete investigation, background check, etc of the source.

Just so that you are happy, rest assured that we are aware of your unhappiness with Barbour. You don't have to keep posting every few hours!

Anonymous said...

I'm way past surprised that one sees the Walnut Grove Facility mentioned in the indictment. Odds might be slightly greater than zero that William Grady Sims was talking to the feds.

Anonymous said...

The thing to remember is that people who have done it once usually do it again per the indictment. What will be interesting as this case and/or investigation continues is whether or not there are any other companies, agencies and individuals who get named that have no business dealing with the correctional system. I am sure that there will be more to come.

Anonymous said...

McCrory has been featured on JJ in the past.

http://kingfish1935.blogspot.com/2009/09/rankin-county-jury-awards-33-million-in.html

I remember his son, (Rankin Co. Justice Court Judge) Josh, from Ole Miss. Very quiet, respctful guy; surprised to hear his dad was up to no good and hope the apple has fallen far from the tree and rolled down the hill to another garden.

Anonymous said...

$500 million in contracts with MDOC in the last 10 years. Lets see, who was the Sate Auditor back in 2004 through 2008? Was that Musgove, no, maybe Scruggs, no no, maybe FEEL? Wonder why Haley and Feel kept Epps on at MDOC when he came from Toes Musgrove originally?

Anonymous said...

Any junior high school kid with a library card or access to Google could have figured out how to hide the money better than these two idiots. They didn't even think to funnel the payments through a third party or dummy corp. I wonder how corrections commissioners fair in fed prison.

Anonymous said...

Word at the time was that Barbour kept Epps around because he wanted to cut employees, particularly at the big farm. And having a black Dem commissioner made it easier getting it past the Dem House of Rep and McCoy (DOC was only agency removed from Personnel Board in 2004 - resulted in cutting employment by almost 20%.) This even after Epps had been major worker for Musgrove's reelection.

Don't know about any auditor activity in '04-'08, but understand that Auditor office was deeply involved in joint investigation with feds over past two years.

Will be interesting to see who all does get drawn into this cesspool. Word on the street is that there are many more indictments to come, and will include some common names in and around High and President Streets.

Anonymous said...

Also from April 24, 2012. Possibly Commissioner Epps wasn't totally in the loop?

Miss. Prison Operator Out; Facility Called A 'Cesspool'

One month after a federal court ordered sweeping changes at a troubled juvenile prison in rural Mississippi, the private company managing the prison is out. A report by the Justice Department describes "systemic, egregious and dangerous practices" at the Walnut Grove Youth Correctional Facility.


Commissioner Epps advocated for... the contractor.

A GEO spokesman said via email that the abuses documented by the government occurred before GEO took over Walnut Grove in late 2010. Another private prison company, Cornell Companies, ran the Walnut Grove facility until Cornell was purchased by GEO.

At the Justice Department, Jonathan Smith does not accept that statement. He said troubles at the prison continued after GEO stepped in.

In an interview last Thursday, Mississippi state Corrections Commissioner Chris Epps had nothing but praise for GEO. He pointed out the prison had recently received a perfect score by outside auditors from the American Correctional Association.

Since GEO took over in August 2010, "have there been incidents? The answer is yes," he said. "Will there be more? The answer is yes. But they're doing better, and I'm pleased with it."

On Friday, the news broke that GEO would be out as manager of its three Mississippi prisons by July.

Later that day, Epps had changed his tune.
He told The Associated Press that a new operator at all three state prisons may "do a better job in the operation of the facilities" than GEO did.

Anonymous said...

Kingfish:

Who are the two goofballs being represented by?

What Defense Attys will take care of these two?

Jane said...

Minute Entry for proceedings held before Magistrate Judge F. Keith Ball:Initial Appearance as to Christopher B. Epps, Cecil McCrory held on 11/6/2014, Arraignment as to Christopher B. Epps (1) Count 1,2-13,23,24-27,28-41,42-43,44-49 and Cecil McCrory (2) Count 1,14-22,23,24-27 held on 11/6/2014 in Jackson, MS. Appearing: Michael Hurst, AUSA; John Colette, retained attorney for Defendant Epps; Don Leland, retained attorney for Defendant McCrory. Reading of Indictment waived. Plea of not guilty to all counts entered. The government did not object to bond and the Court placed each defendant on bond. Defendants will be released after processing by the U.S. Marshal Service. Tape Number: 11-6-2014-FKB; 13:10-13:29. (JEJ) (Entered: 11/06/2014)
11/06/2014 13 TRIAL ORDER as to Christopher B. Epps, Cecil McCrory. Jury Trial set for 1/5/2015 09:00 AM in Courtroom 6A (Jackson) Wingate before District Judge Henry T. Wingate; Motion Dispositive Deadline due by 12/29/2014; Oral Argument due by 12/29/2014; Motion N-Dispositive Deadline due by 12/11/2014; Instruction/Exhibit/Witness List due by 1/2/2015. Signed by Magistrate Judge F. Keith Ball on 11/6/14. (JEJ) (Entered: 11/06/2014)
11/06/2014 14 ORDER Regarding Discovery as to Christopher B. Epps, Cecil McCrory. Signed by Magistrate Judge F. Keith Ball on 11/6/14. (JEJ) (Entered: 11/06/2014)
11/06/2014 15 Unsecured Bond Entered as to Christopher B. Epps in the amount of $ 25,000. (JEJ) (Entered: 11/06/2014)
11/06/2014 16 ORDER Setting Conditions of Release as to Christopher B. Epps (1) Unsecured Bond of $25,000. Signed by Magistrate Judge F. Keith Ball on 11/6/14. (JEJ) (Entered: 11/06/2014)
11/06/2014 17 Unsecured Bond Entered as to Cecil McCrory in the amount of $25,000. (JEJ) (Entered: 11/06/2014)
11/06/2014 18 ORDER Setting Conditions of Release as to Cecil McCrory (2) Unsecured Bond of $25,000. Signed by Magistrate Judge F. Keith Ball on 11/6/14. (JEJ) (Entered: 11/06/2014)

Anonymous said...

This story is interesting enough without the idiots who keep trying to make it all Haley Barbour's fault. Some of you people are obsessed with him!

Anonymous said...

http://www.mdoc.state.ms.us/PressReleases/2009NewsReleases/2009-03-18%20Walnut%20Grove%20Transition%20Center.pdf


Date:
March 18, 2009

New Inmate Re-entry Facility Opens In Walnut Grove
(Jackson) – The Mississippi Department of Corrections (MDOC) today announced the opening of a new re-entry facility,
the Walnut Grove Transition Center, located in the old Camo Kids garment factory building on the west side of Highway
35 South in Walnut Grove. The goal of the new facility is to provide opportunities to reduce recidivism by offering job
training and placement, as well as housing for qualified inmates.
The Walnut Grove Transition Center will be operated by American Transition Services of Brandon under the direction of
former MDOC commissioner Steve Puckett. House Corrections Committee Chairman Bennett Malone and MDOC
commissioner Christopher Epps have been working to bring the 200 bed facility to fruition for over a year.
Offenders in the Walnut Grove Transition Center (WGTC) will be offered educational programs and alcohol and drug
treatment while they are in the facility. The facility will provide housing with a dormitory layout. Offenders in the facility
will have more privileges than those in a prison; however, offenders will be secured and supervised when not at work.
The WGTC will serve two populations; probationers sentenced to reside in a restitution center and earned release
supervision offenders.
The restitution center portion of the facility will help relieve the backlog of offenders waiting to enter into the restitution
program. Restitution centers are one of Mississippi’s alternatives to conventional incarceration. There are currently four
restitution centers located in Greenwood, Flowood, Jackson and Pascagoula. Offenders in the restitution program work in
private sector jobs. Their wages are maintained by the center where they are distributed to victims for restitution, the courts
to cover court costs and fines, to family for their support, to the offenders’ accounts and to the center for room and board
costs.
The other population that will be served at the center are offenders eligible for earned release supervision (ERS) that do not
have an approved residence in Mississippi (ERS outside of the state is not permitted). When offenders have served 85% of
their eligible sentence they may be released to a period of earned release supervision. During this transition time they are
still classified as inmates but are released to an approved address to begin employment and re-establish themselves in the
community.
Offenders without an approved address for ERS either remain in custody or go to the Mississippi Prison Industries
Corporation Transition Center (MPICTC). The MPICTC has been successful obtaining employment for offenders and
transitioning them back into society. It has served as a model in the development of the WGTC. ERS offenders in the
WGTC will have their wages managed in the same manner as the restitution population.
Corrections officials and American Transition Services representatives have been in talks with local businesses to ensure
that jobs will be available for the offenders in the center. Tyson Food Inc. and Peco Foods of Mississippi are among the
employers that are willing to hire the facility’s residents, with wages of more than $8.00 per hour.
Commissioner Christopher Epps states, “Representative Malone and I have worked hard for this facility, because the
successful transition of offenders back into the community and workforce is essential to reducing recidivism.

Anonymous said...

This story is interesting enough without the idiots who are obsessed with correcting others!!!

Anonymous said...

1:25 - yes i'm sure that $5,000 contribution to Haley's PAC meant so much compared to the other $15,000,000 raised by Haley. get a clue.

Anonymous said...

Did someone say that the Special Assistant Attorney General assigned to the Department of Corrections (to represent Epps) is recently married to Epps' communications director mouthpiece?

Aside from obvious nepotism, is this another of Epps' maneuvers to keep a lid on his activities? A closer look at all the players is in order. The drama deepens.

Anonymous said...

Okay. These guys are dirty and no one seems real surprised. Now if the feds and Auditor can get over being proud lets get on Rudy Warnock and his Madison cronies and the Hinds Supervisors.

Anonymous said...

anonymous said...

because of my husband being in ms. prison & the treatment he received( attacked while guards watched, no medical treatment when needed, medical equipment supplied by the prison dr. taken away by prison guards & lots more) I contacted Epps office very often, I know my husband was in prison, but I have NEVER dealt with such a group of arrogant people as the people that work for the ms prison system, I think the whole system needs to be looked at & all the personal looked at, you have the criminals guarding the inmates.

Anonymous said...

what was up with Epps, McCrory, & Irl Dean Rhodes? Irl Dean's son Jeffrey was arrested for his 2nd & 3rd felony crimes in Madison while he was on probation for another felony in Brandon. Instead of going to jail, he left the state.



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