Witness in Edwards trial says he disapproved of payments

Natalie Gott

Thursday, Feb. 17, 2000 | 9:23 a.m.

BATON ROUGE, La. - A St. Louis businessman who tried to get a Louisiana riverboat casino license testified at Edwin Edwards' federal racketeering trial that he disapproved that his partners were paying so much money to a consultant who had boasted about his friendship with the former governor.

But Carl Bolm, who received immunity in exchange for his testimony, said he grew furious when he learned that the Louisiana consultant, Cecil Brown, had entered into a deal worth more than $4.5 million with another group of investors who also were seeking a casino license.

The testimony Wednesday came as prosecutors continued pressing their case against Edwards, his son Stephen, Brown and four others charged in a series of illegal schemes to profit from the riverboat casino licensing process before and after Edwards left his fourth term in office in January 1996.

Defense attorneys today began trying to discredit Bolm, drawing from him an admission that he submitted inaccurate information on applications for riverboat casinos in New Orleans and Lake Charles.

For example, fellow investor Eugene Redmond's name appeared on an application for the Lake Charles boat, but not the New Orleans boat, Bolm testified. However, Bolm said, he was to split his interest in the New Orleans boat with Redmond if the New Orleans boat were approved and the Lake Charles area boat were not.

Also, the riverboat application stated that Bolm was to have a 16 percent interest in the New Orleans boat, but Bolm admitted on the stand that he had no stock certificate or shareholder's agreement.

"This document is a lie, isn't it sir?" Edwin Edwards' lawyer, Daniel Small, asked.

Bolm responded that he was he was not in control of who received what percentage of interest in the project.

Under cross examination from Patrick Fanning, attorney for another co-defendant, Bobby Johnson, Bolm would not admit that he believed he was committing a crime at the time he was dealing with Cecil Brown. But, he said, some of his actions were indeed "unethical, questionable and, yes, criminal."

Bolm was working with a group of St. Louis-area businessmen on a bid to get licenses for riverboat casinos in New Orleans and Westlake, near Lake Charles. On Wednesday, Bolm reiterated earlier testimony that Brown had guaranteed the men a riverboat license, although ultimately they never did get it.

Bolm testified that he found Brown and investor Luke Daly, who had said his company would invest in Bolm's casino project, in a meeting on June 16, 1993, two days before the Riverboat Gaming Commission was to award preliminary certificates of approval to casino applicants.

Brown and Daly were not discussing Bolm's project, however, Bolm said. They were discussing a bid for another casino applicant, Bolm said. Brown had signed a contract with Daly that would guarantee Brown $4.5 million and 3 percent interest if that applicant received a license, which it never did, Bolm said.

"I was tremendously upset," Bolm said. "I felt betrayed."

Bolm had testified earlier that he had told his partners, Russ Meyer and Eugene Redmond, he was skeptical because Brown was receiving so much money from the company.

Originally Brown was to get two advance payments of $75,000 for preliminary work on two license applications for boats in Lake Charles and New Orleans, Bolm said. Once the licenses were granted, he was to get two more such payments.

In fact, Bolm said, Brown got all of the payments and more - monthly payments that escalated from $4,500 to $10,000. The payments eventually added up to $350,000, prosecutors said.

"Would you agree that these two companies paid Cecil Brown whatever he wanted?" Greenberg asked.

"Cecil Brown received whatever he requested, yes," Bolm said.

Bolm said Meyer, an Alton, Ill., attorney, and Redmond told him several times before that meeting that Brown complained because Bolm asked too many questions.

Bolm said the men told him "I just didn't understand that this was the way it was done in Louisiana."

Meyer, who testified before Bolm on Wednesday, said he paid Brown the money because he was afraid that, if he didn't, Brown would not help them get a license.

Under cross-examination from Brown's attorney, Rebecca Hudsmith, Meyer admitted that Brown never threatened to pull the license if they did not pay him. But Meyer said he was under the impression that Brown would not help them if they did not pay him.

Meyer agreed with Hudsmith that Brown performed many of the functions that any legitimate consultant would do, including entertaining investors and encouraging them to meet with lawmakers.

But then, Hudsmith asked if Brown had guaranteed them a license with the stipulation that they had to have a good application.

"We were led to believe we could put together a proposal that was a piece of crap as long as we met the minimum requirement and we would get a license," Meyer replied.

Meyer also testified Wednesday that his company paid Stephen Edwards $25,000 to kill legislation that would keep them from getting a riverboat license.

Stephen Edwards had advised them of a pending bill that would requiring Calcasieu Parish voters to decide whether casinos should be allowed.

Stephen Edwards said he would lobby against the bill, and investor Eugene Redmond wrote him a $25,000 check dated April 30.

But Meyer testified Stephen Edwards never told the investors what he did to fight the bill.

"It effectively prevented us from receiving a license," Meyer said.

Meyer at first testified that the bill that Stephen Edwards was hired to fight was passed and signed into law. On cross-examination by Stephen's lawyer, Jim Cole, however, Meyer acknowledged that the bill was indeed defeated. Similar legislation was approved, however, later in the 1993 legislative session that would require the vote.