Edwards’ former law partner faces trial

Monday, April 21, 1997 | 11:59 a.m.

The criminal charges against William Broadhurst, former law partner of former Gov. Edwin Edwards, are the first in Louisiana stemming from riverboat casino gambling. Other charges have been lodged following investigations into video poker.

A federal indictment returned last year accused Broadhurst of skimming money from construction contracts for twin casinos that operated for six weeks in New Orleans in 1995 before going broke.

Broadhurst has said he is innocent and will prove it.

He is charged with four counts of mail fraud and one of conspiracy to commit mail fraud. Each count carries up to five years in prison and a $250,000 fine.

The indictment did not specify how much money Broadhurst allegedly gained, but accused him of four counts of mail fraud involving checks totaling $255,555.

The failed New Orleans project, known as River City, was a partnership of Grand Palais Riverboats, headed by resort developer Christopher Hemmeter, and a New Jersey-based company, Capital Gaming International.

Broadhurst served as a consultant to Grand Palais, the indictment said.

The partners paid Bender Shipyard Inc. $50 million for the two boats. Broadhurst and another person, who was not named in the indictment, made arrangements to get 3 percent of those proceeds without the knowledge of the River City partners, according to the indictment.

The indictment alleged the commission was paid to Republic Corporate Services Inc., with half of it going to Broadhurst. Republic was headed by Sammy Mijalis, the nephew of longtime Edwards crony Gus Mijalis.

In 1987, Broadhurst chartered the yacht "Monkey Business" for a trip from Florida to Bimini. The passengers included Hart, then running for president, and Rice. A photograph of Rice sitting on Hart's lap during the trip later appeared in newspapers and led to Hart's withdrawal from the campaign.

The indictment against Broadhurst was part of a wide-ranging federal investigation into Louisiana's gambling industry.

The probe also resulted in racketeering charges against former state Sens. Larry Bankston and B.B. "Sixty" Rayburn, who are accused of scheming to take bribes from a one-time Slidell video poker truck stop operator. in exchange for protecting video poker against a local-option referendum bill in 1995.

Bankston and Rayburn are scheduled to be tried May 21 in New Orleans federal court.