Former governor’s appearance called off for now

Friday, June 6, 1997 | 5:47 a.m.

Lewis Unglesby, attorney for former state Sen. Larry Bankston, said it would be unfair for prosecutors to use information from the Edwards investigation in cross examining the former governor.

Assistant U.S. Attorney Robert Boitman said he wanted to use information from the current grand jury investigation to possibly impeach Edwards' credibility as a defense witness for Bankston.

Unglesby said Edwards would be entitled to take the Fifth Amendment against self-incrimination if certain questions were asked in the video poker case, but he said he would be concerned about what the jury would think.

Unglesby said he intended to limit Edwards' testimony to the issue of grandfathering video poker truck stops during a 1995 local referendum bill that failed. Prosecutors contend that Bankston and former Sen. B.B. "Sixty" Rayburn took bribes to scuttle the measure.

In his opening arguments in the trial, Unglesby said Edwards insisted that any local option bill include clauses to protect existing video poker truck stops.

Unglesby also said he would not use Edwards as a character witness for Bankston.

The nature of the federal inquiry into Edwards' activities has not been specified, but the FBI recently seized more than $441,000 in cash from his house and office. Papers filed in federal court by prosecutors contend the money came from mail-wire fraud and extortion.

"I want them to fish or cut bait - reveal their evidence about Edwin or fold it," Unglesby said. He represents Edwards' son Stephen in the grand jury investigation.

U.S. District Judge Sarah Vance set Monday as a deadline for attorneys to submit written statements on what the government can use while cross-examining Edwards.

"I cannot let you bring in a former governor, with the aura of his office, and let you insulate him totally from cross examination," she said.

Bankston, once head of the Senate gambling oversight committee, and Rayburn are accused of taking money from Fred Goodson, who once ran the O'Aces video poker truck stop in Slidell.

On trial with the two former lawmakers and Goodson are Goodson's daughter, Maria Goodson; Goodson's attorney, Carl Cleveland; and Goodson's accountant, Joe Morgan.

On Thursday, a state police attorney testified that he worked with Bankston's committee on video poker regulations. The legislative panel had veto authority over proposed rules governing the games.

Lawyer Brett Sulser was asked specifically about working with Bankston in March 1995, three months after the FBI began tapping Bankston's telephone and law office.

"Did Mr. Bankston at any time put pressure on you to make the regulations favorable to Fred Goodson or any other truck stop operator?" asked Karl Koch, a defense attorney for Bankston.

"No, he did not," Sulser said.

A $1,500 condominium rental payment to Bankston, called a bribe by prosecutors, also surfaced again Thursday.

According to earlier testimony, Goodson sent the $1,500 check to Bankston's realty company in June 1995 to rent Bankston's condo for a week on the Alabama Gulf Coast.

However, Goodson never used the condo - and prosecutors say the deal was an example of "travelless renters" that was used to maintain the condo. The FBI also took pictures of the Bankstons using the condominium during the time Goodson was supposed to have rented it.

Defense attorneys have said that Goodson's vacation plans were interrupted by business.

Two Denham Springs officials testified Thursday that Goodson attended a meeting at that time - June 29, 1995 - to discuss building a video poker truck stop.

Ellis Chavers, an assistant to the Denham Springs mayor, and city building inspector Robert Godwin, both said Goodson never mentioned having a vacation interrupted by the meeting, which was called after the city blocked Goodson from working on the truck stop site.

According to previous testimony, Mrs. Bankston ordered the $1,500 returned to Goodson after an Aug. 15, 1995, interview by FBI agents.

Other testimony Thursday in the multi-faceted case turned to whether Goodson illegally used his adult children's names as the owners of Truck Stop Gaming Ltd., his video poker company.

Prosecutors contend that Ms. Goodson and her brother, Alex Goodson, who was not charged, were listed as the owners because Goodson and Cleveland, had financial problems that would have kept them from getting a license.

Testifying for Cleveland, tax attorney Grant Coleman said it is not unusual for parents to list their children as owners of a company while the parents run the firm. This lets the children pay less in estate taxes when the parents die, Coleman said.

Although the parents do not legally own the company, they can have the management authority to make major business decisions, Coleman said.

"It is usually done this way," Coleman said.

On cross-examination, Boitmann pointed to a wiretapped conversation in which Maria Goodson said she would be pleased to get 1 percent of Truck Stop Gaming Ltd.'s profits. Boitmann contended that showed that Ms. Goodson knew she was not the true owner.

"It would be evidence she did not realize she had ownership, but she did have ownership," Coleman replied.

The trial is the first resulting from FBI affidavits filed in August 1995 alleging bribery involving legislators, lobbyists and gambling interests. Rayburn was defeated for re-election in November 1995 after 48 years in the Legislature. Bankston did not seek re-election.