Subpoena lists 10 state acts
Law by ex-senator seen to align with co-defendants’ firm
FAYETTEVILLE — An act sponsored by then-state Sen. Jon Woods created a state account to benefit the roof shingle recycling industry, a business in which his two co-defendants in a pending public-corruption case are involved, a federal subpoena and legislative records show.
Act 441 of 2015, which created the shingle recycling account, was one of 10 legislative acts named in a subpoena under a court order issued Tuesday.
The subpoena also names a bill that did not pass and two draft bills that were never introduced. The acts and the bill that did not pass are available to the public, but the subpoena asks for the “bill files” for these measures, which contain the working papers and other documentation used in the drafting of the bills.
Woods is scheduled for trial beginning April 9 along with co-defendants Randell Shelton Jr. and Oren Paris III. Woods, R-Springdale,
was sole sponsor of Act 441 of 2015.
Paris is accused of paying kickbacks to Woods and then-state Rep. Micah Neal of Springdale in return for state grants to Ecclesia College, where Paris is president. The kickbacks were passed through in the form of consulting fees paid on Ecclesia
College’s behalf to Shelton, according to the government’s case.
Shelton is also Paris’ partner in Shingle Resource Recycling LLC, which the two incorporated in 2015, according to secretary of state records.
Both the shingle company and Shelton listed their addresses in
2015 and 2016 as 8532 Carrie
Smith Road in Springdale, a property owned by Ecclesia College.
The account created by Act 441 never had any money appropriated to it by the Legislature and was never specific to Shingle Resource, said Shelly Koehler, defense counsel for Shelton.
“Had the act been funded, which it was not, ADEQ
would’ve been able to provide grants to any entity that fit ADEQ’s requirements,” Koehler said in a statement, referring to the state environmental quality agency.
“ADEQ would have had to come up with the requirements, not Sen. Woods. ADEQ, independently, would have had to make any decisions on the issuance of the grant or even if they were going to issue it.”
The Arkansas Department of Environmental Quality officials were checking the agency’s records on the matter Wednesday afternoon and did not answer by the office’s closing time whether the account had remained dormant.
The other legislation listed in the subpoena — including regular budget bills passed by the Legislature in which Woods was not a sponsor — are all appropriation bills regarding use of the state General Improvement Fund.
One of the bills set up an account similar to the shingle recycling account at the state Department of Higher Education that would have benefited a work study college such as Ecclesia, but no money was ever put into that account either, the department confirmed earlier this year.
The General Improvement Fund was the source of the grants to Ecclesia College in the federal case. The fund consists of state tax money left unallocated at the end
of each fiscal year and interest earned on state deposits. Each legislator was given a share of the fund to be directed to nonprofit groups or government entities.
The state Supreme Court declared that method of funding distribution unconstitutional in a ruling Oct. 5. Woods, Paris and Shelton have pleaded innocent. Woods faces 15 counts of fraud, all relating to either wire or mail transfers of money. Paris and Shelton are named in 14 of the fraud charges. All three are charged with one count of conspiracy to commit fraud. Woods is also charged with one count of money laundering in connection with the purchase of a cashier’s check.
The trial is expected to last three weeks. A pretrial hearing is set for April 4. Hearings on motions are set for Jan. 10 and Jan. 25.
Also Tuesday, U.S. District Judge Timothy Brooks approved an order to subpoena records from Apple Inc. on a computer used by an investigator in the case. The computer’s memory was wiped in what the defense has called an improper manner. The government has turned the matter over to the FBI for investigation.