Family friend delivers damaging testimony against former La. governor

Natalie Gott

Thursday, Feb. 24, 2000 | 3:37 a.m.

BATON ROUGE, La. - A former casino consultant fought back tears as he told a federal jury Thursday that he funneled hundreds of thousands of dollars in payoffs to former Gov. Edwin Edwards and his son Stephen - before and after Edwards left office in 1996.

Ricky Shetler's testimony was backed by Shetler's own ledgers and conversations secretly recorded by the FBI. It was the most damaging to date in the six-week-old trial, and, perhaps, in the 40-year public life of the often scandal-plagued four-term governor who was acquitted of federal racketeering charges in 1986.

Federal prosecutors say Edwin and Stephen Edwards and five other men took part in a years-long series of schemes to manipulate the licensing of riverboat casinos.

As governor, Edwards appointed the now-defunct Louisiana Riverboat Gaming Commission, which granted preliminary approval for riverboat licenses. And he appointed the head of Louisiana State Police, which issued the licenses.

Shetler is a lifelong friend of Stephen Edwards. But he turned on the Edwards' family in late 1998, pleading guilty to extortion conspiracy charges and agreeing to cooperate with federal authorities.

He fought back tears on the witness stand Thursday as Assistant U.S. Attorney Peter Strasser asked him how he felt about testifying against his friends.

"Terrible," Shetler replied in a shaky voice while Stephen Edwards looked on stoically. "I feel terrible."

Shetler said the cash, cars, furniture, appliances and vacations he provided the Edwardses were in return for their help in getting a state license for the Players riverboat casino at Lake Charles, for later state approval that granted Players a second boat at Lake Charles and for hindering competition for the lucrative floating gambling halls.

In testimony Wednesday, Shetler had described how Stephen Edwards used the power of his father's office to pressure Players to hire Shetler at a $60,000 annual salary with opportunities for large bonuses. The money, Shetler said, was to be secretly split with Stephen Edwards or with Edwin and Stephen Edwards.

On Thursday, prosecutors reviewed ledgers with Shetler in which he had detailed his payments to Stephen and Edwin Edwards. And they played tapes of conversations secretly recorded in the law office of Edwin Edwards in 1997 - when Edwards allegedly was continuing to accept payoffs for things he did before leaving office in January 1996.

In one conversation, on Jan. 9, 1997, the father and son seem to be bantering good naturedly about how much money one owes the other. Jurors heard the two discuss a flurry of numbers before the elder Edwards says to his son:

"The way you've been f------ me, you just double it."

Stephen later says "I have to get with Shetler. He still owes you the big check from November and all of December. That should be six, seven, eight, nine thousand dollars."

In a Feb. 25, conversation in the same office, Edwards appears to be making sure he does not have to deal first-hand with the money changing hands.

Stephen Edwards: "Shetler's been calling me. I think I should just stay in and meet with him. He's coming in with your money."

Edwin Edwards: "I'd rather you do that."

Among the payoffs Shetler detailed was one in the form of a $24,000 Chevrolet Suburban Shetler said he bought for Gov. Edwards' Vail, Colo., condominium in November 1993. It was in return for Edwards' help in attempting to prevent an Indian tribe from opening a casino in Kinder - potential competition for Players.

Shetler had been promised a $250,000 bonus by Players Casino if he could get Edwards to write a letter that would hinder the Coushatta Indian tribe's casino efforts.

Shetler said he had not received the bonus at that time and had to borrow money from the bank to pay for the Suburban.

"Stephen said this was for his daddy, pertaining to the $250,000 payment, pertaining to the letter," Shetler said.

Stephen Edwards had suggested the men park the vehicle at Edwards' condominium and suggested that Shetler visit at least once, apparently to give the impression that the vehicle was Shetler's and not Edwards'.

Defense lawyers are expected to contend that the vehicle was not a purchase for Edwards but that Edwards intended to sell the vehicle for Shetler.

Shetler testified that Stephen Edwards requested that Shetler give him the title to the car. Shetler said he signed the title but left the buyer's name blank. "I assumed from the beginning it was for his dad."

The title was notarized by Stephen Edwards and Edwards' daughter Anna was the witness.

Federal prosecutors have portrayed Players as the victim of an extortion rather than participant in a bribery scheme, although some former Players executives testified under immunity grants.

But the case brought pressure on Louisiana gambling regulators to revoke the company's licenses for its two Lake Charles riverboats. The company eventually agreed to pay the state $10.8 million and get out of Louisiana.

Harrah's Entertainment Inc. has offered $425 million to buy Players, a deal that has been approved in Louisiana and Missouri, but is being held up in Illinois over concerns over a new state gambling law allowing one operator to have two casinos. Harrah's has said it is working to resolve the problem before the two companies' self-imposed deadline of Feb. 29 to complete the deal.