Northwest Arkansas Democrat-Gazette
Jury selection process starts in Woods’ corruption trial
FAYETTEVILLE — Potential witnesses for the corruption trial of former state Sen. Jon Woods include at least two of the state’s constitutional officers and 22 current or former legislators.
About 70 prospective jurors were both shown and read 160 names Monday from merged prosecution and defense lists of witnesses who might be called.
U.S. District Judge Timothy L. Brooks presented the list while questioning jurors in detail about a wide range of possible conflicts of interests — prospective jurors’ legal histories, work histories, political inclinations and agreement with basic legal and constitutional principles.
The jury selection process resumes today at the federal courthouse in Fayetteville. Brooks warned the prospective jurors the trial is expected to take three weeks and could take four. The jury selection process resumes with the government and defense counsel asking their questions and making their picks.
The judge’s inquiries lasted from about 9:30 a.m. to 4:30 p.m. Monday and couldn’t be completed without at least another couple of hours, Brooks told the prospective jurors at the end of the session.
No jurors were picked Monday, although at least a dozen were excused, three for knowing someone on the list. Most jurors dismissed
were let go for personal conflicts that wouldn’t allow service in a monthlong trial.
Woods of Springdale; Oren Paris III, former president of Ecclesia College in Springdale; and consultant Randell G. Shelton Jr., formerly of Alma, were indicted in March 2017 by a grand jury for participating in a kickback scheme. Paris pleaded guilty just before a pre-trial hearing Wednesday to one count of conspiracy and will testify for the government.
Woods is accused of taking kickbacks from Paris in return for directing $550,000 in state General Improvement Fund grants to Ecclesia, all in 2013 or 2014. Paris disguised the kickbacks as consulting fees paid to Shelton who then passed the money along, the government contends.
Former state Rep. Micah Neal of Springdale pleaded guilty to also receiving kickbacks from Paris and is expected to testify in the trial. Neal pleaded guilty Jan. 4, 2017, to one count of conspiracy. His sentence is pending.
Woods faces 15 counts of fraud, all relating to either wire or mail transfers of money. Paris and Shelton were named in 14 of the fraud charges. All three were 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.
Paris pleaded guilty to transferring $50,000 of $200,000 in grant money from Woods and Neal to Shelton. Shelton sent $40,000 of the money to Woods as a kickback, according to Paris’ plea. Shelton’s defense will argue the money was a loan that had nothing to do with the Ecclesia grant, his attorneys have said.
Potential witnesses named so far include state Auditor Andrea Lea, state Treasurer Dennis Milligan and state Republican Party Chairman Doyle Webb, according to the list.
Woods and Neal are the only state lawmakers charged with receiving kickbacks from Ecclesia, but other lawmakers directed state grants to the private religious college in Springdale. Some of the lawmakers on the witness list steered grants to Ecclesia, but others didn’t.
Lawmakers in office who are on the list who steered at least some grant money to Ecclesia are Sen. Bart Hester, R-Cave Springs; Rep. Bob Ballinger, R-Berryville; Rep. Charlie Collins, R-Fayetteville; Rep. Jana Della Rosa, R-Rogers; Rep. Jim Dotson, R-Bentonville; and Rep. Stephen Meeks, R-Greenbrier. Former Rep. Randy Alexander, R-Springdale, was also named on the list and steered a grant to Ecclesia.
Lawmakers in office and on the potential witness list who didn’t grant money to Ecclesia are Sen Alan Clark, R-Lonsdale; Sen. Bryan King, R-Green Forest; Rep. Dan Douglas, R-Bentonville; Sen. Scott Flippo, R-Bull Shoals; and Rep. Trevor Drown, R-Dover.
Former lawmakers on the list include former House Speaker Bill Stovall of Quitman and current state Finance Director Duncan Baird.
Ten current or former legislators directed state grants to Ecclesia College from 2013 through March 2015 totaling $617,500. The figure doesn’t include $100,000 the college received where records are unclear who gave the money.
Bentonville Mayor Bob McCaslin and West Fork Mayor Heith Caudle were also named as potential witnesses. So is Washington County Judge Joseph Wood, formerly a member of Ecclesia’s governing board.
Shelton disputes statements made by Paris in his plea, defense attorney Shelly Koehler of Fayetteville, said after the pretrial hearing last week. The $50,000 was payment for consulting services rendered, she said. Testimony will show Shelton did the work he was paid to do, she said.
Patrick Benca, Woods’ attorney, also said Woods remains innocent of the charges and will prove it despite Paris’ guilty plea.
The case involves grants from the state General Improvement Fund, which is controlled by legislators. The state Supreme Court declared the method of distribution unconstitutional in a ruling Oct. 5 of last year.
Neal, a Republican, admitted in his Jan. 4, 2017, guilty plea he took two kickbacks totaling $38,000 in exchange for directing grants to two nonprofit groups.
The indictment doesn’t give a total figure of what Woods is accused of receiving in kickbacks because portions of it were reportedly paid in cash.
All three defendants initially entered not guilty pleas. Woods and Shelton face up to 20 years in prison on the fraud and conspiracy charges, if convicted. Woods faces an additional 10 years on the money-laundering charge, if convicted.
Arkansas legislators gave nearly $700,000 of taxpayers’ money from the state’s General Improvement Fund to the private Christian college in Springdale. Nine Northwest Arkansas legislators requested $592,500 for the school. Woods directed the most at more than $350,000.
Another $100,000 from the fund to Ecclesia came through the West Central Arkansas Planning and Development District in Hot Springs. The only documents from legislators provided by that district in support of the grants came from Woods.
In a related matter, Woods is accused of taking a kickback from indicted lobbyist Milton Russell “Rusty” Cranford of Bentonville. Neal’s guilty plea included his taking kickbacks along with Woods in $400,000 in state grants to a company of Cranford’s called AmeriWorks.
Cranford, 56, is set for trial May 7 in federal court in Springfield, Mo., on one count of conspiracy and eight counts of accepting bribes in his indictment. The $400,000 from the 2013 grant was returned in 2014, grant records show.