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Alabama State Senator Indicted in Federal Two-year College Probe

by Associated Press , June 5, 2008

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BIRMINGHAM, Ala. — State Sen. E.B. McClain was indicted Thursday on bribery, conspiracy and other federal charges accusing him of pocketing more than $300,000 in government money routed through a nonprofit organization.

McClain, 68, already faces state theft charges in the case that stemmed from an investigation into corruption and cronyism in Alabama’s two-year college system.

U.S. Attorney Alice Martin said the Midfield Democrat used “pass-through pork” and the two-year college system to direct $751,245 in grants to the Heritage to Hope Foundation, Inc., an organization headed by the Rev. Samuel Pettagrue.

Pettagrue, 65, of Leeds, was also named in the 50-count indictment that includes charges of mail fraud and money laundering. Pettagrue is accused of passing along $305,000 to McClain as payment for helping secure government funds for the foundation.

The prosecutor said the bribes were fraudulently labeled as “consulting fees” or “wages” and that McClain did little or no consulting work for the foundation.

“My reaction is not guilty,” said McClain, who was in Montgomery for a special legislative session.

The senator said he expected the federal indictment and planned to turn himself in “rather than be handcuffed and hauled away.”

“I’m a little bit relieved because we knew it was coming,” he said. “I want to get started with the process and go about clearing my name.”

Pettagrue’s attorney, Richard Jaffe, did not immediately return a message left at his office.

The alleged fraud occurred from April 2001 through November 2006 and began with McClain securing discretionary fund grants from the Legislature, also known as “pass-through pork,” for Pettagrue’s organization.

Prosecutors claim the scheme shifted to issuing grants through the two-year college system after stronger restrictions were put on the use of pass-through grants in 2003.

According to the indictment, the first grant was $65,000 from the Alabama Department of Economic and Community Affairs for senior citizen projects and educational outreach in the Birmingham area.

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