AFTERNOON UPDATE: Hubbard Trial

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Posted by: Staff
Date: May 24 2016 8:50 AM

TRIAL IS SCHEDULED TO BEGIN AT 9AM. SEATING IN THE COURTROOM IS VERY LIMITED.  THE SEATING IN THE MEDIA ROOM IS BEYOND CRAMPED, ONLY 8 REPORTERS ARE ALLOWED TO BE PRESENT AND IF YOU LEAVE YOU LOSE YOUR SPOT. MEDIA FROM AROUND THE STATE ARE HERE TO COVER THE TRIAL. AS YOU MIGHT IMAGINE SECURITY IS EXTREMELY TIGHT.

9:10 ATTORNEYS FOR BOTH SIDES ARE NOW IN THE COURTROOM TRIAL HAS NOT YET STARTED. HUBBARD AND HIS WIFE ARE ALSO SEATED.

9:25 JUDGE HAS SENT A DEPUTY TO THE MEDIA ROOM AND ADVISED THAT NO MORE POSTS OR TWEETS WILL BE TOLORATED. WE WILL ONLY BE ABLE TO POST DURING BREAKS. JUDGE SPOKE TO LAWYERS AT 9:30 OPENING STATEMENTS WILL BEGIN AT 10AM EACH SIDE WILL TAKE ABOUT AN HOUR.

PART 1

10:09OPENING STATEMENTS HAVE STARTED MATT HART AYS HE WILL TAKE THE FIRST FEW MINUTES TO EXPLAIN TO JURORS JUST HOW PUBLIC SERVICE AND GOVERNMENT WORKS. HART EVEN BREAKS DOWN THE FUNCTION OF THE DIFFERENT BRANCHES OF GOVERNMENT. HART THEN DISCUSSES THE FUNCTION OF THE JUDGE IN THE CASE. HART SPENDS SEVERAL MINUTES DISCUSSING THE ROLE OF LEGISLATORS. HART ALSO DISCUSSES THE ETHICS LAW AND HOW IT APPLIES TO LAWMAKERS. HART SAYS THESE RULES ARE TO PREVENT LEGISLATORS FROM HAVING AN UNFAIR ADVANTAGE IN CONTRACTS. HART TELLS THE JURY THAT THE RULES EXSIST TO KEEP OFFICIALS HONEST. HE ASKS THE JURY TO USE THEIR COMMON SENSE TO JUDGE THE RIGHT AND WRONG OF THIS CASE.

HART USES CHARTS TO SHOW THE JURY ALL THE PEOPLE THAT ARE COVERED BY THE ETHICS LAWS. THE ORGANIZATIONAL CHART INCLUDES LAWMAKERS, PUBLIC OFFICIALS, LOBBYISTS AND OTHERS.HART SAYS THAT THE CHAIRMAN OF THE REPUBLICAN PARTY IS ALSO COVERED BY THE SAME RULES AS PUBLIC OFFICIALS. HART CONTINUES BY SHOWING THE JURY DIFFERENT PARTS OF THE ETHICS LAW. HE FOCUSES ON THE STATUETE THAT DOES NOT ALLOW A PUBLIC OFFICIAL RECEIVE A FEE OR ANYTHING OF VALUE FROM A LOBBYIST. HART REVEALS THAT HE PLANS TO CALL WITNESSES TO TESTIFY THAT WORK FOR THE ETHICS COMMISSION, LEGISLATORS PRESENT AND FORMER, AS WELL AS FORMER PUBIC OFFICIALS AND LOBBYISTS.

HART GIVES THE JURY A HISTORY LESSON ON DEFENDANT MIKE HUBBARD, STARTING IN 1983 WHEN HE WAS WORKING AT THE UNIVERSITY OF GEORGIA, THE AUBURN, AND EVENTUALLY CREATED THE AUBURN NETWORK. HUBBARD ALSO WORKED TO GET BOB RILEY ELECTED TO THE HOUSE OF REPRESENTATIVES IN WASHINGTON. LATER HUBBARD RAN FOR AND WAS ELECTED TO THE ALABAMA HOUSE. HE THEN JOINED COACH PAT DYE IN PURCHASING A PRINTING BUSINESS CALLED CRAFTMASTER PRINTERS. THE BUSINESS WENT BANKRUPT BUT WAS REORGANIZED BUT STRUGGLED TO MAKE MONEY. IN 2007 AS HEAD OF THE REPUBLICAN PARTY HUBBARD AND OTHER PARTY LEADERS DEVELOPED A PLAN TO TAKE CONTROL OF THE ALABAMA HOUSE BY RAISING LARGE SUMS OF MONEY. THAT MONEY WAS GIVEN TO CANDIDATES THAT PROMISED TO USE CRAFTMASTERS PRINTERS FOR THEIR CAMPAIGN MATERIALS.

AFTER THE 2010 ELECTION HUBBARD HAD SOLD HIS COMPANY TO A COMPANY CALLED ISP, ISP KEPT HUBBARD ON AS A PAID EXECUTIVE. ISP THEN SOLD THE COMPANY TO IMG WHICH CHOSE NOT TO KEEP HUBBARD ON THE PAYROLL. HUBBARD THEN ASKS FOR AND IS APPROVED TO WORK FOR THE SEAGD AS A CONSULTANT, BUT WITH RESTRICTIONS WHICH THE STATE CONTENDS HUBBARD IGNORED. THE JUDGE TELLS HART HE HAS EXCEEDED 1 HOUR AND TO WIND IT UP. FORMER HEAD OF THE BCA WILL BROOK OFFERS TO ASSIST HUBBARD WITH HIS FAILING PRINTING BUSINESS. BROOK THEN HELPED GET INVESTORS LIKE JIMMY RANE TO INVEST $150,000 DOLLARS ALONG WITH BROOK TO HELP SAVE THE BUSINESS. HUBBARD WAS LATER SENT TO THE PARIS AIR SHOW ON BEHALF OF SEAGD BUT WORE A NAME TAG THAT IDENTIFIED HIM AS SPEAKER OF THE ALABAMA HOUSE. RECESS…

HART SAYS HUBBARD USED HIS POSITION TO DIRECT MONEY TO HIS BUSINESSES. HART ALEDGES THAT HUBBARD USED MONEY DONATED TO THE REPUBLICAN PARTY TO PROP UP HIS BUSINESSES BY REQUIRING CANDIDATES TO USE ONLY CRAFTMASTERS. HART SAYS HUBBARD CONCEALED THE USE OF PARY FUNDS BY DIRECTING MONEY THROUGH HIS AUBURN NETWORK. HART SAID HUBBARD USED HIS OFFICE TO BE PAID OVER $700,000 DOLLARS IN CONSULTING FEES WHILE SERVING AS SPEAKER OF THE HOUSE. HART SAID HUBBARD RECEIVED $5000 DOLLARS A MONTH FROM PHARMACY COMPANIES WHILE DEVELOPING PERSCRIPTION POLICIES FOR MEDICAID. HUBBARD WAS ALSO PAID $10,000 DOLLARS A MONTH TO HELP SELL CUPS FOR CAPITAL CUPS, BUT NEVER SOLD A CUP, ACCORDING TO HART. HART TELLS THE JURY HUBBARD WAS WARNED BY THE ETHICS COMMISSION NOT TO VOTE ON CERTAIN BILLS BUT IGNORED THEM.

HART TOLD JURORS THAT FORMER GOVERNOR BOB RILEY WARNED HUBBARD WHEN HUBBARD APPROACHED HIM ABOUT CONSULTING FEES, THAT HE WOULD ADVISE HIM TO MAKE UP HIS MIND, “MIKE YOU CAN BE GOVERNOR IF YOU WANT TO OR YOU CAN BE RICH, BUT YOU CAN’T DO BOTH.” ACTIVITY REPORTS SUBMITTED TO SEAGD SHOW THAT HUBBARD WAS LISTING PUBLIC APPEARANCES AS CONSULTING JOBS FOR THE GAS DISTRICT. HART SAYS THE CASE SPEAKS FOR ITSELF AND COMMON SENSE IS ALL THEY NEED TO FIND THE DEFENDANT GUILTY. HART CONCLUDE HIS REMARKS.

BILL BAXLEY FOR THE DEFENSE…BAXLEY BEGINS BY SAYING HE WAS SORRY HART WASTED ALMOST AN HOUR OF THE JURYS TIME WITH A CIVICS LESSON. BAXLEY SAYS FOR THE MOST PART HE DOESN’T UNDERSTAND WHAT HART IS TALKING ABOUT. BAXLEY SAID THE GOVERNOR AND MANY OTHER PUBLIC OFFICIALS WENT TO THE AIRSHOW, AND THERE WASN’T ANYTHING IN THE INDICTMENT ABOUT IT.

JUDGE DISMISSES FOR LUNCH…

BACK FROM LUNCH BAXLEY WILL CONTINUE WITH HIS OPENING…BAXLEY SAID THERE IS NO EVIDENCE TO BACK UP THE PROSECUTIONS ACCUSATIONS. BAXLEY SAYS THERE IS NOT ONE PIECE, NOT A SMIDGE OF EVIDENCE THAT WILL BE PRESENTED AGAINST HIS CLIENT.BAXLEY SAYS ALL HART HAS IS SPECULATION, AND GOSSIP BUT THERE IS NO TRUTH TO ANY OF IT. BAXLEY SAID THAT NONE OF THE MONEY THAT HART SAID WAS SPENT WENT TO HUBBARD. IT WAS FOR PRINTING, AND POSTAGE, AND TO BUY TV AND RADIO TIME. NONE OF THE MONEY WENT TO HUBBARD ACCORDING TO BAXLEY.

BAXLEY TALKED ABOUT HOW HUBBARD HAS WORKED SINCE HE WAS A YOUNG BOY. HE GOT HIS FIRST JOB IN RADIO AT AGE 14. HE WAS IN THE CUB SCOUTS. WORKED AT GEORGIA WHILE ATTENDING THERE. HUBBARD BAXLEY SAID IS A HARD WORKING FAMILY MAN WHO MET AND MARRIED AN AUBURN GIRL, AND THEN BUILT A SUCCESSFUL BUSINESS AND FAMILY LIFE. BAXLEY TELLS THE JURY A STORY ABOUT HOW THE FORMER OWNER OF CRAFTMASTERS PRINTING BECAME ILL AND HIS DAUGHTER TOOK OVER, MOVED THE COMPANY FROM OPELIKA TO AUBURN. THEY BUILT A NEW BUILDING, BOUGHT NEW EQUIPMENT BUT SALES FELL OFF AND HUBBARD AND A GROUP OF INVESTORS TOOK OVER TO HELP THE FAMILY AND TRY TO MAKE THE BUSINESS PROFITABLE. BAXLEY EXPLAINS WHAT HART CALLS INVESTORS IS REALLY LOANS THAT WILL HAVE TO BE PAID BACK. BAXLEY SAID HUBBARD ONLY SOUGHT LOANS AFTER HE FOUND OUT THERE WAS AN OUTSTANDING TAX PROBLEM HE INHERITED WHEN HE BOUGHT THE BUSINESS. HUBBARD NEVER TOOK A CENT IN SALARY OR COMMISSION FROM THE PRINTING COMPANY, ACCORDING TO BAXLEY.

BAXLEY SAD HUBBARD BUILT THE AUBURN NETWORK FROM THE GROUND UP. HUBBARD HAS MADE THE NETWORK SO SUCCESSFUL THAT EVEN ALABAMA AND TROY USE THE NETWORK FOR THEIR BROADCAST SIGNAL. BAXLEY SAYS THE INDICTMENT DOESN’T MAKE SENSE. HE CLAIMS THAT THE CHARGES DON’T INDICATE A CRIME. FOR INSTANCE HUBBARD WAS HIRED BY CAPITOL CUPS TO HELP THE COMPANY BREAK INTO THE COLLEGE FOOTBALL MARKET. HUBBARD ALSO BROUGHT CHICK-FIL-A AND WAFFLE HOUSE TO THE TABLE BY FRIENDS HE HAD AT THE COMPANIES. BAXLEY SAID IT WAS HIS FRIENDS NOT HIS POSITION THAT HELPED HUBBARD BE SUCCESSFUL.

BAXLEY SAYS MOST OF WHAT HART CALLS CRIMES IS SIMPLY BEING FRIENDS WITH SUCCESSFUL PEOPLE, AND DOING BUSINESS WITH THEM. BAXLEY SAYS HE WILL SHOW THE JURY A LETTER FROM THE ETHICS COMMISSION THAT APPROVES HUBBARD WORKING FOR THE SEAGD. BAXLEY SAYS HUBBARD WENT THROUGH THE ETHICS COMMISSION AND WAS APPROVED TO DO ALL THE WORK HE DID.

BAXLEY SAYS THAT WITNESSES WILL TESTIFY THAT HUBBARD WAS HIRED BY THEM WITHOUT KNOWING HE WAS SPEAKER OF THE HOUSE. BAXLEY SAYS HE IS GOING TO CUT IT SHORT BECAUSE THERE IS NO NEED TO CONTINUE TO DISCUSS THE GOBBLEDGOOK THAT IS THE STATES CASE. BAXLEY SAYS THE WITNESSES AND THE EVIDENCE WILL PROVE THAT MIKE HUBBARD IS AN INNOCENT MAN AND THE STATE HAS NO CASE.

JOHN ROSS TAKES THE STAND AT 3PM. HE IS A LOBBYIST THAT STARTED HIS CAREER WORKING FOR BOB RILEY. ROSS TALKS ABOUT HOW HE, HUBBARD AND OTHERS WORKED TO DEVELOP THE HANDSHAKE WITH ALABAMA WHICH WAS A PLAN TO FOR REPUBLICANS TO TAKE CONTROL OF THE ALABAMA STATEHOUSE.

ROSS SAYS THAT HUBBARD MADE THE DECISION TO USE CRAFTMASTERS PRINTERS TO PRINT AND MAIL PUSH CARDS FOR CANDIDATES. ROSS SAYS MOST OF THE MAIL PIECES WERE INVITATIONS TO EVENTS AND INTERNAL MAILING. THERE WAS ALSO A STRATAGY TO USE A COMPANY CALLED CREATIVE STRATIGIES TO PURCHASE COMMERCIALS ON TV AND RADIO. ROSS SAYS HUBBARD TOLD HIM CRAFTMASTERS WAS LESS EXPENSIVE THN OTHER PRINTERS AND WOULD PRODUCE A BETTER QUALITY PRODUCT.  HART ASKS ABOUT THE FORMATION OF THE FINANCIAL OVERSIGHT COMMITTEE THAT WAS SET UP BY THE REPUBLICAN STEERING COMMITTEE TO MAKE SURE MONEY WAS BEING SPENT APPROPRIATLY. ROSS SAID HUBBARD WAS NOT A FAN.

ROSS IS LOOKING AT SOME 40 DOCUMENTS THAT ARE COPIES OF CHECKS FROM THE REPUBLICAN PARTY TO CRAFTMASTERS, AND OTHER CHECKS WRITTEN TO NETWORK CREATIVE MEDIA. THERE ARE 169 CHECKS WRITTEN TO MAJORITY STRATAGIES. ALL THE COMPANIES WERE CHOSEN BY HUBBARD ACCORDING TO ROSS. ANOTHER 50 CHECKS WRITTEN TO THE HOWELL GROUP FROM THE ALABAMA REPUBLICAN PARTY. THE OWNER IS A BUSINESS PARTNER OF HUBBARD. ROSS SAID HE WORKED AS A LOBBYIST IN 2013 TO HELP THE PHARMACY COOPERATIVE TO ADDRESS ISSUES THAT WOULD IMPACT INDEPENDENT PHARMACISTS. MET WITH HUBBARD SEVERAL TIMES. ROSS SAID HE FOUND OUT LATER AFTER THE MEETING WITH HUBBARD WHERE THE SPEAKER ASSURED THEM OF A FAVORABLE OUTCOME, THAT HUBBARD ACTUALLY WORKED FOR THE CO-OP. ROSS SAID HE TOLD HUBBARD HIS EMPLOYEMENT WITH THE CO-OP WAS A PROBLEM BUT HUBBARD SAID IT WAS NOT. ROSS SAID LATER THAT NIGHT HUBBARD VOTED FOR THE BUDGET. ROSS SAID THAT AFTER THAT HIS LOBBYING GROUP SEVERED ALL TIES WITH HUBBARD. ROSS SAID HE HAD ANOTHER CONVERSATION WITH HUBBARD ABOUT SEVERAL PEOPLE INVESTING IN CRAFTMASTERS. HUBBERD TOLD ROSS THAT WILL BROOK AND OTHERS WERE MENTIONED.

BAXLEY CROSS EXAMINES…ROSS ADMITTS HE WAS NEVER TOLD HE MUST USE CRAFTMASTERS. ROSS SAYS HE WAS NEVER ASKED TO INVEST IN CRAFTMASTERS NOR DID HE HEAR HUBBARD ASK ANYONE. ROSS TESTIFIES THAT ABOUT 50% OF THE $700,000 DOLLARS PAID TO CRAFTMASTERS WENT TO PAY FOR POSTAGE.

TIM HOWE FORMER EXECUTIVE DIRECTOR OF THE REPUBLICAN PARTY. HOWE TESTIFIES THAT HE KNEW HUBBARD WAS PART OWNER OF MAJORITY STRATIGIES. HOWE SAID HE DID MEDIA BUYING FOR THE REPUBLICAN PARTY. HOWE ADMITTS HE WAS A PASS THROUGH AGENT FOR MEDIA BUYS FOR BOTH ROSS AND HUBBARD. HOWE SAID HE WAS PAID MONEY THAT HE THEN SENT ON TO ANOTHER BUSINESS BUT INVOICED FROM HIS COMPANY. HOWE RECEIVED A 5% FEE FOR HIS SERVICE. HOWE IS SHOWN 6 CHECKS THAT HE WROTE TO NETWORK CREATIVE MEDIA. HOWE CONFIRMS THAT HE WROTE CHECKS ON HIS ACCOUNT TO PAY NETWORK CREATIVE MEDIA FOR WORK THEY DID FOR THE REPUBLICAN PARTY. HOWE SAYS HE PROCESSED CHECKS FROM THE REPUBLICAN PARTY LESS HIS 5% AND THEN SENT THE REST OF THE MONEY ON TO NETWORK CREATIVE MEDIA WHO DID THE WORK.

HOWE SAID WHEN HE FOUND OUT THAT HUBBARD WAS A PAID CONCULTANT FOR APCI (PHARMACY CO-OP) HE SUGGESTED TO HUBBARD THAT IT WAS A PROBLEM. HOWE SAID HE, ROSS AND JOSH BLADES DISCUSSED THE ISSUE BUT HUBBARD HAD TOLD ROSS EARLIER THERE WAS NO PROBLEM. HOWE SENT A LETTER TO FERREL PATRICK OF THE APCI SEVERING THEIR RELATIONSHIP DUE TO THE FACT THEY COULD NOT LOBBY HUBBARD BECAUSE HE WAS A PAID CONSULTANT FOR APCI.

CROSS EXAMINE BY BAXLEY…BAXLEY ASKS IF BILL ARMISTEAD WAS CAUSING PROBLEMS FOR THE GROUP PLANNING TO TAKE CONTROL OF THE STATEHOUSE. HOWE SAID ALL HE HEARD WAS RUMORS. HOWE WAS ASKED ON REDIRECT ABOUT HOW THE MONEY HE GOT WAS DISTRIBUTED. HOWE SAID ALL HE KNOWS IS HE GOT 5% AND THAT’S ALL. RE-CROSS…BAXLEY SAYS THE AUBURN NETWORK CUT THEIR FEE FROM THE INDUSTRY STANDARD OF 15% TO 10%  TO NOT OVERCHARGE THE REPUBLICAN PARTY.

COURT ADJOURNED FOR THE DAY.

 

 

 

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