Shetler to testify this week in Edwards trial

Natalie Gott

Monday, Feb. 21, 2000 | 8:53 a.m.

BATON ROUGE, La. - Five weeks into his federal racketeering trial, former Gov. Edwin Edwards still strolls into the courthouse with his head held high and a confident smile on his face.

Spectators say the smile is for good reason because Edwards has not been directly linked with working out a deal with anyone or physically accepting money from anyone.

"A lot of people still question whether the government has ever proved that the money found its way into Gov. Edwards' pocket," said former U.S. Attorney Harry Rosenberg. "That was the theme that Gov. Edwards' attorney kept pounding in opening statements. 'They cannot connect the dots.' They know the government is not going to be able to show that any money was placed in the governor's hands."

While not claiming that they can prove Edwards directly took any money, prosecutors say their allegations charging the four-term governor with wrongdoing will be sharpened this week when one of their star witnesses, Ricky Shetler testifies against Edwards and his son, Stephen.

Prosecutors claim the Edwardses and five other defendants manipulated the licensing process of riverboat casinos during and after Edwards' fourth and final term as governor from 1992 to 1996.

Shetler, a former consultant to Players Lake Charles casino and longtime friend of Stephen Edwards, pleaded guilty in October 1998 to conspiracy to funnel more than a half million dollars in cash, cars and home furnishings to the Edwardses.

It's unclear how Shetler will stand up on the witness stand. He left the courthouse in tears when he pleaded in 1998.

Shetler's testimony is expected to be most damaging to Stephen Edawrds, who prosecutors say told Players to hire Shetler if they wanted a riverboat casino license. Stephen Edwards also told Players that it would cost them $300,000 if they wanted a monopoly in Lake Charles for three years, and $600,000 if they wanted a monopoly forever, said prosecutor Peter Strasser.

Strasser also said Shetler brought payoff money to the Edwardses law offices.

Edwards' role in this part of the case is less involved, although he is accused of taking "official action" to block another casino from coming to Lake Charles. In return for his actions, Shelter purchased a Chevrolet Suburban that was taken to Edwards' condominium in Vail, Colo., prosecutors said.

Stephen Edwards later told Shetler that he should go to the condominium "for the purposes of legitimacy," according to the indictment.

None of the 22 witnesses who has testified so far has said he made direct payments to Edwards or that he worked out an agreement with Edwards.

"(Edwards) is very sophisticated, very bright individual," Rosenberg said. "If any criminal activity occurred, I would be stunned to hear him say, 'yes thank you for the payoff, thank you for the bribe."'

The closest testimony in that regard came from Treasure Chest casino owner Robert Guidry, who testified under a plea agreement.

Guidry claimed he sealed a deal with Edwards in a Baton Rouge hotel room after promising an Edwards' aide $100,000 in monthly payments in 1994. In exchange, Edwards was to help Guidry get a riverboat license.

"He said 'You and Andrew got an understanding?' I said, 'That's right,"' Guidry said, recounting the meeting with Edwards.

When Guidry assured Edwards that he had the finances for the riverboat, Edwards said "I'm going to see about getting you a hearing,"' according to Guidry.

Under cross examination from Edwards' attorney, Dan Small, Guidry admitted that Edwards never asked him for money or talked about the details of the deal at that meeting.

Guidry also claimed that he dropped off about $100,000 in the back of Edwards' vehicle at Edwards house in 1996. Defense attorneys countered that claim by questioning whether Guidry, a millionaire tugboat operator, had enough money on hand to make the payments.

Defense attorneys pointed out that Guidry, who faces up to $3.5 million in fines, stood to lose $214 million under federal criminal forfeiture laws if he had been indicted and found guilty in the Edwards case. They also noted that prosecutors stopped a separate investigation of Guidry's tugboat company in return for the plea.

Another strong piece of evidence came from Edwards himself. In a secretly-recorded conversation in February 1997, the Edwardses and Edwards then-aide and now-co-defendant, Andrew Martin, discussed a plan to buy a tugboat and rent it to Guidry at inflated costs.

With the boat, "you've got some showable income," Edwards said later in the conversation.

Edwards also said he was worried about Guidry taking so much money out of the bank. "If he ever gets checked, he's gonna have a hard time explaining what happened to all that," Edwards said.

Several conversations like that could be enough for a jury to decide to convict even if the conversations use cryptic or vague words, say attorneys following the case.

"You have them talking about it. You have to make a reach from them talking about it to what actually occurred," said John Volz, who unsuccessfully tried Edwards twice on federal racketeering charges involving a hospital and nursing home venture. "If they talked about it, even if you didn't see the money get into some, there could be some sort of conspiracy."

Defense attorneys have been successful in poking holes in the testimony of several witnesses so far, Volz said.

One government witness, former Riverboat Gaming Commission Ken Pickering, admitted that Edwards never asked him to do anything illegal as chairman of the group that awarded tentative approval riverboat casino applicants when Edwards was in office.

Pickering also said he had no knowledge of whether other commissioners acted improperly when they voted on the riverboat applications.

A group of witnesses trying to get a riverboat license claimed they paid $350,000 to defendant Cecil Brown because of his contacts with Edwards. They said they paid Brown because they believed they would not get a license if they didn't. The men never said they paid any money to Edwards and they never saw Brown give Edwards any money.

Because federal prosecutors have charged Edwards with conspiracy and racketeering charges, they do not have to prove that Edwards participated in every action, Rosenbeg said.

"That is the reason you have to have circumstantial evidence, it doesn't have to be direct evidence," Rosenberg said.