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Sunday, September 10, 2000

Informants in corruption cases to talk

Immunity terms must still be decided for case involving Houston mayor

Associated Press

HOUSTON - A courtroom is expected to be packed on Monday when the prosecution outlines the terms of the immunity that two twice-convicted felons received for informing in corruption cases involving former Louisiana Gov. Edwin Edwards, former Houston Mayor Fred Hofheinz and Andy Collins, former head of the Texas prison system.
   Brothers Patrick and Michael Graham helped federal authorities in New Orleans build their case against former Edwards, who was convicted in May on 17 counts of racketeering, extortion and fraud charges.
   They also are the prosecution's star witnesses in federal corruption cases against Collins and Hofheinz.
   U.S. District Judge Lynn Hughes ordered the Grahams to give depositions regarding the details of their immunity and financial agreements with the government after finding out federal officials had made oral agreements with the brothers for their help.
   Hughes, who is presiding over the alleged kickback case of Collins and Canadian businessman and VitaPro owner Yank Barry, also has ordered U.S. Attorney Jim Letten of New Orleans and FBI agent Geoffrey Santini to detail the verbal agreements with the Grahams.
   Collins is accused of accepting kickbacks from VitaPro foods in exchange for approving a $37 million contract to buy the company's soy-based meat substitute to feed prisoners.
   Hofheinz is accused of making $2 million in payoffs to a high-ranking Louisiana public official in an effort to win public contracts for prison construction, waste disposal and other services.
   Such verbal agreements are a departure from Justice Department procedure, which outline that such agreements need to be written into a legal document.
   Michael Tigar, a law professor at American University in Washington, D.C., said the oral agreement is highly unusual and could be detrimental to the defendants.
   "I can't think of any good reason why a prosecutor would not reduce the details to writing," Tigar told the Houston Chronicle for its Saturday editions. "I can think of many bad reasons."
   Michael Ramsey and Kent Schaffer, Barry's lawyers, contend the government is illegally withholding the details of financial rewards, plea agreements and immunities given the Grahams.
  
  

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