By Bill Britt
Alabama Political Reporter
October 21, 2014
MONTGOMERY—After a year’s worth of investigation by the Special White Collar Crimes Unit of the State’s Attorney General’s Office and a two-year investigation by this publication, Speaker of the House Mike Hubbard, R-Auburn, has been arrested and charged with 23 felony indictments.
Hubbard was allowed to turn himself in at the Lee County Courthouse around 4:00PM Monday evening.
Hubbard has been charged with using his office for personal gain, receiving cash and contracts from lobbyists and business associates, and receiving assistance with his business interests from high-profile individuals and companies, including former Gov. Bob Riley.
In what might be considered the ultimate irony, many of Hubbard’s indictments stem from the 2010 enactments of the Republican-sponsored Ethics Law. Under Section 36-25-5(a) “No public official or public employee shall use or cause to be used his or her official position or office to obtain personal gain for himself or herself, or family member of the public employee or family member of the public official, or any business with which the person is associated unless the use and gain are otherwise specifically authorized by law. Personal gain is achieved when the public official, public employee, or a family member thereof receives, obtains, exerts control over, or otherwise converts to personal use the object constituting such personal gain.”
If convicted on each count, Hubbard could face a minimum of 46 years in prison.
Many of Hubbard’s top associates and some of the State’s leading business figures are named as participating in Hubbard’s actions.
They include: former Gov. Bob Riley, his daughter, Minda Riley Champbell, BCA Chairman Billy Canary, Tim Howe, Will Brooke, Dax Swatek, Jimmy Rane, Rob Barton, Robert Abrams, James Holbrook as well as American Pharmacy Cooperative Inc. (APCI), the Southeast Alabama Gas District, (SEAGD) and Edgenuity, Inc. and/or E2020.
Each of these individuals and companies may very well be charged with the same crimes as Hubbard under Section 36-25-7(a) which states:
“No person shall offer or give to a public official or public employee or a member of the household of a public employee or a member of the household of the public official and none of the aforementioned shall solicit or receive anything for the purpose of corruptly influencing official action, regardless of whether or not the thing solicited or received is a thing of value.”
It is believed that Hubbard’s indictments are just the beginning of the charges that will be brought against other lawmakers and individuals.
The first three counts are related to Hubbard’s time as Chairman of the Republican Party, where he is accused of funneling money from the party to the Florida-based Majority Strategies, and back to his business interest, Craftmaster Printers, Inc.
In Count 4, Hubbard is accused of using is office for personal gain by funneling money through Tim Howe d/b/a The Howe Group, LLC and/or SRM Media and back to his business interest, Auburn Network.
According to State law, the Chairman of the Republican Party is legally held to the same standards as any elected official.
In Counts 5 and 6, Hubbard is charged with using his office and voting to secure an “exclusive” contract for American Pharmacy Cooperative Inc. (APCI), which would have given the company the right to be the sole provider for pharmacy benefits management under the State’s Medicaid program.
Under Counts 8 and 9, Hubbard is charged for his lobbying efforts for the Southeast Alabama Gas District, (SEAGD).
In Count 10, Hubbard is accused of receiving a thing(s) of value from Edgenuity, inc. and/or E2020 to Auburn Network.
Charges under Counts 11, 12, 13 and 14, stem from Hubbard’s relationship with Robert Abrams d/b/a CV Holdings. In 2013, CV Holdings received a $78 million, investment from the Retirements Systems of Alabama, (RSA), to build a manufacturing facility for Si02, in Auburn. In Count 12, Hubbard represented Robert Abrams before the Alabama Department of Commerce. In Count 13 Hubbard represented Robert Abrams before the Governor.
Counts 15 through 19 allege, that Hubbard received illegal investments for his business interest Craftmaster Printers, Inc.
These Counts charge that Hubbard received investments from Will Brooke, Dax Swatek, Jimmy Rane, Jim Barton, James Holbrook, contrary to the ethics law.
Brooke is a Birmingham-based investment banker, Swatek is a lobbyist and a longtime ally of Hubbard’s.
Barton, is the Chairman of Hoar Construction in Birmingham.
Rane, also known as the “Yella Fella,” is President and Chairman of Great American Woods, and Holbrook is the former head of investment house, Sterns Agee.
James Holbrook is currently under Federal investigation.
In Count 20, Hubbard is accused of receiving help from former Gov. Bob Riley to obtain new clients for his business interest, Auburn Network.
In Count 21, Hubbard is charged with receiving “consulting assistance and support” from Riley’s daughter, Minda Riley Campbell, for his Auburn Network.
Count 22, accuses Hubbard of receiving “assistance with obtaining new clients for Auburn Network,” from Billy Canary, the head of the Business Council of Alabama, (BCA).
In the final Count, Hubbard is charged with receiving assistance with obtaining new clients for Auburn Network and/or financial advice regarding Craftmaster Printers, from Will Brooke, Board Member of the Business Council of Alabama.
COUNT 1
Hubbard is charged as Chairman of the Republican Party: intentionally used his position or office for obtaining personal gain from the ALGOP by purchasing from Craftmaster Printers. (See articles here and here.)
COUNT 2
Hubbard is charged as Chairman of the Republican Party: intentionally used his position or office for obtaining personal gain from the ALGOP by purchasing from Auburn Network.
COUNT 3
Hubbard is charged as Chairman of the Republican Party: intentionally used his position or office for obtaining personal gain from the ALGOP by purchasing from Majority Strategies, for himself or a business he with which he is associated, to wit: Craftmaster. (See articles here and here.)
COUNT 4
Hubbard is charged as Chairman of the Republican Party: intentionally used his position or office for obtaining personal gain through Tim Howe d/b/a The Howe Group, LLC and/or SRM Media and Advertising, LLC for himself or a business with which he is associated, to wit: Auburn Network.
COUNT 5
Hubbard is charged as Speaker of the Alabama House of Representatives: “did intentionally vote for legislation to wit: Senate Bill 143 of the 2013 Regular Legislative Session, and he knew or should have known that he had a conflict of interest.”
SB143 was the bill in which Hubbard attempted to add 23 words making American Pharmacy Cooperative Inc. (APCI), the sole eligible provider for pharmacy benefits management in Alabama. (See article here.)
COUNT 6
Hubbard is charged as Speaker of the Alabama House of Representatives: soliciting or receiving a “thing of value” from APCI to Auburn Network.
COUNT 7
Hubbard is charged as Speaker of the Alabama House of Representatives of “such use and gain were not otherwise specifically authorized by law” from Southeast Alabama Gas District (SEAGD) to Auburn Network. (See article here.)
COUNT 8
Hubbard is charged as the Speaker of the Alabama House of Representatives as representing a person, firm, corporation, or other business entity, (SEAGD) before an Executive department or agency, The Alabama Department of Commerce.
COUNT 9
Hubbard is charged as the Speaker of the Alabama House of Representatives as representing a person, firm, corporation, or other business entity, (SEAGD) before an Executive department or agency, The Governor for the State of Alabama.
COUNT 10
Hubbard is charged as the Speaker of the Alabama House of Representatives for receiving from a lobbyist, subordinate of a lobbyist, or principal of Edgenuity, inc. and/or E2020 (a data provider specializing in online education software in Wetumpka) to Auburn Network.
COUNT 11
Hubbard was charged with using his office for personal gain in receiving money from Robert Abrams, DBA, CV Holdings, LLC., to Auburn Network, in violation of Section 36-25-5(a) of the Code of Alabama (1975), against the peace and dignity of the State of Alabama.
COUNT 12
Hubbard was charged with intentionally, for a fee, reward, or other compensation, “represent a person, firm, corporation, or other business entity, to wit,” Robert Abrams, DBA, CV Holdings, LLC., before an executive department or agency, The Alabama Department of Commerce, in violation of Section 36-25-1.1 of the Code of Alabama (1975), against the peace and dignity of the State of Alabama. (See article here.)
COUNT 13
Hubbard is charged as the Speaker of the Alabama House of Representatives as representing a person, firm, corporation, or other business entity, Robert Abrams d/b/a CV Holdings, LLC before an executive department or agency, The Governor for the State of Alabama.
COUNT 14
Hubbard is charged as the Speaker of the Alabama House of Representatives as using equipment, facilities, time, materials, human labor, or other public property under his discretion or control, to wit: a State computer, a State email account, or the human labor and/or the time of himself and another State employee for the private benefit or business benefit of the public official from Robert Abrams d/b/a CV Holdings, LLC to Auburn Network.
COUNT 15
Hubbard was charged with: did materially solicit a thing of value, to wit: an investment in Craftmaster Printer, from a lobbyist, subordinate of a lobbyist, or principal, to wit: Dax Swatek, in violation of Section 36-25- 5.1(a) of the Code of Alabama (1975), against the peace and dignity of the State of Alabama. (See article here.)
COUNT 16
Hubbard was charged with intentionally soliciting, of receiving a $150,000.00 investment in Craftmaster Printer, from Will Brooke, Board Member of the Business Council of Alabama (BCA), violation of Section 36-25- 5.1(a) of the Code of Alabama (1975), against the peace and dignity of the State of Alabama.
COUNT 17
Hubbard was charged with intentionally soliciting, of receiving a $150,000.00 investment hin Craftmaster Printer, from James Holbrook and/or Sterne Agee Group, Inc., in violation of Section 36-25-5.1(a) of the Code of Alabama, against the peace and dignity of the State of Alabama.
COUNT 18
Hubbard was charged with intentionally soliciting, of receiving a $150,000.00 investment in Craftmaster Printer, from Jimmy Rane, President of Great Southern Wood, in violation of Section 36-25-5.1(a) of the Code of Alabama (1975), against the peace and dignity of the State of Alabama.
COUNT 19
Hubbard was charged with intentionally soliciting, of receiving a $150,000.00 investment in Craftmaster Printer, from Robert Burton, President of Hoar Construction, m violation of Section 36-25-5.1(a) of the Code of Alabama (1975), against the peace and dignity of the State of Alabama.
COUNT 20
Hubbard was charged with intentionally soliciting, of receiving a thing of value from Bob Riley, in violation of Section 36-25-5.1(a) of the Code of Alabama (1975), against the peace and dignity of the State of Alabama.
COUNT 21
Hubbard was charged with intentionally soliciting, of receiving a thing of value, consulting assistance, from Minda Riley Campbell, in violation of Section 36-25-5.1(a) of the Code of Alabama (1975), against the peace and dignity of the State of Alabama.
COUNT 22
Hubbard was charged with intentionally soliciting, of receiving a thing of value from Billy Canary , in violation of Section 36-25-5.1(a) of the Code of Alabama (1975), against the peace and dignity of the State of Alabama.
COUNT 23
Hubbard was charged with intentionally soliciting, of receiving a thing of value by receiving assistance with obtaining new clients for Auburn Network and/or financial advice regarding Craftmaster Printers, from Will Brooke, Board Member of the Business Council of Alabama (“BCA”), in violation of Section 36-25-5.1(a) of the Code of Alabama (1975), against the peace and dignity of the State of Alabama.
