...Langford and two associates were investigated by the Securities and Exchange Commission for actions which occurred during his tenure as County Commission president involving allegedly illegal transactions which steered County bond business to particular companies in exchange for bribes.
On April 30, 2008, the Securities and Exchange Commission sued Langford in federal court. The lawsuit alleged Langford accepted more than $156,000 in cash and benefits from Montgomery banker Bill Blount in exchange for county bond business.
On the morning of December 1, 2008, Larry Langford was arrested by the FBI on a 101 count indictment alleging conspiracy, bribery, fraud, money laundering, and filing false tax returns in connection with a long-running bribery scheme. He was led into the courtoom in leg-irons. Also indicted were lobbyist and former state Democratic Party executive director Al LaPierre, and Montgomery investment banker and bond underwriter, and former state Democratic Party chairman, William B. Blount of Parrish & Co.
While Langford was head of the Jefferson County commission, he engaged in a variable rate auction, and bond swaps, to raise money to help improve the county's sewer system. During that time, Langford is alleged to have received $235,000 in bribes from Blount, some routed through Al LaPierre, to help influence the bond deals. According to the indictment, William Blount helped Langford receive a $50,000 loan, which was used to purchase jewelry, including a Rolex watch, and designer clothes. Blount's firm earned $7.1 million in fees from the bond deals while LaPierre was paid $219,500 by Blount for his help the scheme. Jefferson County banks made approximately $120 million by encouraging the county to refinance nearly all of its bonds using swaps. The result of the bonds has resulted in a $3.2 billion sewer debt which now threatens to bankrupt the county. The government is currently seeking $7.6 million in forfeiture from the three men....