Guidry says Stephen Edwards did legal work for him through 1997

Natalie Gott

Wednesday, Feb. 2, 2000 | 4:07 a.m.

BATON ROUGE, La. - Defense attorneys in Edwin Edwards' federal racketeering trial Wednesday began trying to shake witness Robert Guidry's claim that bags of cash he dropped in trash bins, trailers and sport utility vehicles in 1996 were payoffs for a casino license.

The four-term former governor is on trial with his son, attorney Stephen Edwards, his former aide Andrew Martin and four others, accused of bribery and extortion in a case involving riverboat casinos.

Stephen Edwards' lawyer, Jim Cole got the first crack at Guidry, a former owner of the Treasure Chest casino in Kenner who was testifying under a plea agreement.

At issue was whether the share of the payments that went to Edwards' son Stephen was a payoff or a legitimate payment for the younger Edwards' work as a lawyer.

Throughout persistent questioning from Cole, Guidry stuck to his claim that the money was a payoff.

"Just keep saying that, Mr. Guidry. It'll stick," Cole said.

There was no disagreement that the $90,000 Guidry had paid Stephen Edwards in the early 1990s was for legal work and other items for Treasure Chest Casino.

Disagreements came after Guidry said the legal work stopped with the last $25,000 payment in 1993.

Confronted with evidence to the contrary, Guidry eventually acknowledged work Stephen Edwards had done for him as late as 1997.

But Guidry said he felt Stephen Edwards owed him the work, considering a lucrative and allegedly illegal deal he had made in 1994 with then-Gov. Edwin Edwards and Martin.

As part of the deal, the governor was to arrange for a state police hearing that was key to Guidry getting a license. In return, Guidry would pay Martin and the Edwardses $100,000 a month beginning in 1996, Guidry claimed. The payoffs eventually totalled $1.5 million, Guidry said.

"I had already made the deal with Andrew Martin for $100,000 and I knew Stephen was getting some," Guidry explained.

That opened a door for Cole.

"Are you saying that this was for legal work?" Cole asked.

"I can't say that," Guidry said.

Guidry said some of Stephen's work was part of the riverboat casino application process that led to the Treasure Chest license.

In 1997, Stephen Edwards also tried to line up a gambling company to run Treasure Chest, Guidry testified. The company that had been running the gaming division of Treasure Chest, Boyd Gaming, had decided to leave.

Guidry said he had been paying Boyd about $3 million a year and was hoping to find a company to run it for $1.8 million. If Stephen Edwards could have found someone who would charge less than $1.8 million, Guidry said he would have given Stephen Edwards the difference each year of the contract.

Defense attorneys played a secretly recorded conversation of Stephen Edwards trying to reach a contract with a gaming company for $1.2 million.

A deal was never reached because Guidry sold Treasure Chest in October 1997 for $72 million.

Stephen Edwards also tried to help Guidry sell his video poker company in 1997. He lined up several potential customers, but his work never produced a deal to sell A-Ace Video Gaming company, Guidry said.

"Stephen Edwards was going to receive a commission if the place was sold," Guidry testified.

Guidry has pleaded guilty to an extortion charge for paying the Edwardses and Martin a total of $1.5 million to ensure state approval of the Treasure Chest. Guidry was fined $3.5 million and could face five years in prison. He said he made about $34 million with the Treasure Chest between 1994 and 1997.