Guidry says Stephen Edwards did legal work for him through 1997

Thursday, Feb. 3, 2000 | 9:17 a.m.

BATON ROUGE, La. - Defense attorneys in Edwin Edwards' federal racketeering trial tried to discredit claims by government witness Robert Guidry that bags of cash he dropped off in trash bins, trailers and a sport utility vehicle 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 Wednesday was whether the share of the $100,000 monthly payments 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.

Guidry has said he paid Stephen Edwards about $90,000 in the early 1990s for legal work and other items related to Treasure Chest casino.

Guidry originally had testified that Stephen Edwards did not perform any more work for him after receiving $25,000 in July 1993.

When Cole showed him evidence to the contrary, Guidry eventually acknowledged that Stephen Edwards had done work for him as late as 1997.

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 totaled $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 Edwards' work was part of the riverboat casino application process that led to the Treasure Chest licensure.

In 1997, Stephen Edwards also tried to line up a gambling company to run Treasure Chest because the boat's current company, Boyd Gaming, was ending its contract, Guidry testified.

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.