Something is very wrong in the Land of Cotton



Dr. Robert Bullard
Environmental Justice Movement Founder

Tuesday, April 12, 2011

Three More Individuals Plead Guilty In $7.3 Million Dollar Theft Indictment Case of M. William Campbell, Jr.

Governor Bob Riley presented ASBDC State Director, William
Campbell, Jr.(3rd from left next to ASBDC Public Relations Director Lauren Young) with a proclamation August 21, 2008 to commend
Mr. Campbell and the ASBDC’s committment to making the
Alabama Rural Action Commission a success.

**Updated April 13, 2011 additional indictments posted below

Employees of State Consortium and Non-Profit Institute Agree to Plead Guilty to Tax and Fraud Charges

Press Release
U.S. Attorney’s Office
April 08, 2011

Northern District of Alabama
(205) 244-2001

BIRMINGHAM—One employee of a state business development consortium and two employees of a non-profit institute associated with the consortium have entered into plea agreements with the federal government on income tax and fraud charges, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Pat Maley and IRS Criminal Investigation Special Agent in Charge Reginael D. McDaniel.

LAUREN YOUNG, 33, head of marketing for the Alabama Small Business Development Consortium, has agreed to plead guilty to charges of wire fraud and filing false tax returns.

MICKIE DAVIS, 49, bookkeeper for the Alabama Small Business Institute of Commerce, has agreed to plead guilty to charges of conspiracy, wire fraud and filing false tax returns.

BENJAMIN JOHNSON, 35, executive director of the Small Business Institute, has agreed to plead guilty to charges of conspiracy and filing false tax returns.

Federal prosecutors brought charges against Young, Davis and Johnson, all of Gadsden, by informations either filed or unsealed today, along with the plea agreements.

The Alabama Small Business Development Consortium is composed of universities in the state, each with its own small business development center, as well as a procurement technical center and an international trade center. The consortium’s purposes are to enhance economic growth, to provide management and technical assistance to small businesses, and to develop Alabama’s workforce.

A federal grand jury indictment was unsealed last week charging the state director of the Alabama Small Business Development Consortium, Maurice William Campbell Jr., with fraud, money laundering and conspiracy. The indictment charges Campbell with using his position as the consortium’s director to obtain more than $7 million from the State of Alabama.

It charges Campbell, 59, of Rainbow City, with conspiracy to defraud the state and the Alabama Small Business Institute of Commerce, a private non-profit institute he incorporated, and with making financial transactions intended to conceal the proceeds of the fraud.

The Institute of Commerce received nearly all of its funding from the state through grants, contracts and appropriations in the education budget. From 2005 through 2010, the private, non-profit institute received more than $7.3 million in public funds intended to provide services including education and training to Alabama workers.

Campbell hired Young in 2006 as marketing director for the Alabama Small Business Development Consortium. In October 2006, she received a business check card for the consortium and, over more than three years, used it to make about $195,000 in illegitimate expenditures for herself or others, according to her plea agreement. She made efforts to conceal that she was improperly spending Institute funds, according to the plea agreement.

Young also received thousands of dollars in state funds for reimbursement of travel expenses that Young had paid with Institute funds, according to her plea agreement.

Young acknowledges that she under-reported her income on tax returns for 2008 and 2009.

Davis acknowledges in her plea agreement that, as bookkeeper of the institute, she “received hundreds of thousands of dollars in cash, services, clothing, lodging, meals, and other items for personal benefit, financed by the Institute and its state funding. Moreover, she knowingly and willfully assisted others in using institute funds for their personal benefit, including the incorporator” of the institute, Campbell.

In July and August 2005, Davis opened bank accounts for the institute and knew it received its funding from the state, according to plea agreement. That same year, she began writing checks, at Campbell’s request, from the institute to women he referred to as the Little Sisters, the plea agreement says. From 2006 to 2010, Davis used and witnessed others using business check cards on the institute’s accounts for personal expenses, including jewelry, clothing, event tickets and meals, according to her plea agreement. She acknowledges that in 2008, she financed a trip to the Bahamas using institute funds.

Davis under-reported her income on tax returns for 2007, 2008 and 2009, according to the plea agreement.

Johnson was hired as executive director of the institute in September 2006. He acknowledges in his plea agreement that he knew less than 20 percent of the state money coming to the institute was being awarded in grants to member schools. Johnson acknowledges that he used institute funds for personal expenses, including trips, clothing, and car maintenance, and that he was aware other institute officials were spending the state funds for personal expenses.

In August 2008, Johnson created Johnson Marketing Group, which he and Campbell used to obtain money from the institute, according to Johnson’s plea agreement.

Johnson acknowledges that he under-reported his income on tax returns for 2008 and 2009.

IRS-Criminal Investigation and the FBI investigated this matter. Assistant U.S. Attorney Tamarra Matthews Johnson and George Martin are prosecuting the case.

(This story follows our previous article from April 1 when the indictment was unsealed)


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  1. Who's being protected by these three falling on the sword?
    You know something is odd.
    The press release is not on the Northern District website. I have seen an official copy, but why isn't there one on the ND website?
    An attempt to keep press coverage down perhaps?
    Any explanation Mr. Martin?

  2. Page 12 in essence states that since she admitted to wrongdoing let's go easy on her fellas.
    What message does that send to others who may do the same thing?
    Alabama's US Attorneys are not interested in getting tough, just doing away with cases. Unless certain interests demand a public flogging like the bingo case.
    These individuals have willfully and corruptly stolen millions from the state and deserve harsh and swift justice!
    This is beyond reprehensible.

  3. Why is the press so silent on this?
    Is that not news worthy that these crooks intentionally had a good ol' time on the Alabama taxpayers dime?

  4. Silence is not golden it's beholden to the string pullers.
    For this to go on for so long just shows how inept the state is at oversight and accountability. I don't believe there is any!
    What I do believe is there are thieves a plenty on the loose in this state stealing us blind!

  5. Tax fraud is federal, their theft is state level isn't it? So shouldn't they being having trouble from both ends?
    Leniency? For what? Because they admit they did wrong? Is this some sort of christian forgiveness gone wrong? Throw the damn book at all of them!

  6. This is worse than the bingo case by far.
    Press = crickets.
    I agree, who is covering for who?

  7. This isn't white collar crime, this is redneck inbred I'm a buddy of the gov BS.
    Not possible the Reagan haired one isn't involved in this somewhere. The list of questionables during his two terms is way too long.

  8. BarT is right, it's not there, on the web in one other place, but not at the ND site..how about that?
    That's very interesting to contemplate.

  9. For such a serious case, looks like this is what I call 'throw the dog a bone.'

    They are giving what appears to be the least information, the least amount of bail (100k on Sir William) and going lightly on the perps.

    Either we have some of the laziest journalists in the nation in this state or someone has been given a gag order. Perhaps the editors and others had business with the Lil Sisters and although it is late to be placing distance, this is the best the MSM can manage.

  10. I can't help but have a natural curiosity for people like this, such as what qualifications did Mr. Campbell have for the former governor to appoint him to this position?
    Was he recommended by someone or did Mr. Riley know him beforehand?
    Is there any relation to his son-in-laws family?
    Still waiting on an explanation from Mr. Martin and the US Attorney's Office Northern Division about the press release being mysteriously absent from their site.
    Two phone calls have gone unreturned thus far.

  11. I am seeing nothing short of suppression of news with this case and it is highly disappointing ans suspicious.
    When we look at the rabid dog response of not only state, but national media, in the bingo case, and compare that response to the non-response with this story, it just doesn't add up.

  12. BarT asks some compelling questions.
    The answers should be interesting when they are found, and I bet they will be found.

  13. Mr. Campbell was on the Birmingham Business Alliance Board of Trustees as recently as October 25, 2010.

    The indictment was sealed in March of 2010.
    Seven months after the indictment Campbell is still a Trustee. They didn't know? Not likely.

    The BBA, due to the seriousness of the indictment, should have tossed him and distanced themselves from Campbell immediately.

    But they did not.

    ADEM put out a small business booklet Good For The Environment, Good For The Economy when Glenn was the director that featured a picture of Glenn and Campbell on page 2 with the following text:

    Through the cooperative efforts of the Alabama Department of Environmental Management and the Alabama Small Business Development Consortium, we hope to extend our commitment to the entrepreneurs of Alabama in a new capacity. This guide was developed to assist the small business owner in navigating his or her way through the state regulation and permit process. We realize how difficult it is to begin your own business and we want you to know ADEM and ASBDC are here to help. We wish you much success with your new venture and we stand ready to assist you in achieving your goals.
    Trey Glenn, Director - Alabama Department of Environmental Management
    William Campbell, Jr., Director - Alabama Small Business Development Consortium

    Connections are interesting don't you think?

  14. Hey SledgeHammer---'This guide was developed to assist the small business owner in navigating his or her way through the state regulation and permit process. We realize how difficult it is to begin your own business and we want you to know ADEM and ASBDC are here to help. We wish you much success...'

    I just bet they are there to help.

    Great photo Max!!! Good job!!!

  15. Widget 24 - I see the media suppression. I think we all see it. I also see the court and or the authorities are suppressing this case, or at least parts of the case.

    A lot of suppression going on with this one.

  16. A little pat on the pretty little head for keeping her mouth shut perhaps?

    Gadsden Times October 30, 2009
    Around here section
    The Alabama Small Business Development Center Network State Director, M. William Campbell Jr. announced that Lauren Young has been selected as the 2009 State Star of the Alabama SBDC.

    Young is the marketing and communications manager at the network’s state office at the University of Alabama in Tuscaloosa. Young was chosen for being an exemplary performer, making a significant contribution to the program and showing a strong commitment to small business throughout the state.

    I could maybe feel sympathy for her if she had not kept doing it over and over even though she knew it was wrong!
    These young mushheads who come out of UofA and AU that are so eager to get into the big fish pond with the sharks should be a little smarter about what they are getting involved in.
    It's not like there are not any examples of bodies in the wake who have allowed their futures to be possibly ruined from this kind of chicanery before.
    If anyone had any clue how the less than honorable haunt UofA to co-opt upcoming graduates they would be shocked.

  17. Ask and ye shall receive.
    The ND site has the press release up today April 13th:


    Why the delay and calculated Friday release?

  18. How to throw away your future and ruin your reputation in one easy step-get involved with the Alabama machine and Riley rascals.
    Alternate title: How to ensure your future in Alabama politics--Be Corrupt First and Foremost

  19. The bias of the state press in favor of republicans is in full fan on this story.
    How many did we see on the bingo brouhaha? Far too many to count, every day and multiple stories and updates per day in some cases.
    This story, barely a whisper.
    The Birmingham No News relegated it to a blip on the radar in the business section, the rest just about the same.
    WHY? Does this make any sense to anyone?
    And while we are at it, why did it take a whole year to arrest Campbell? The excuse in the court docs gives non-plausible excuses of needing time to arrest and protecting the agents.
    That takes a whole year to do?
    Who signed the order to seal?
    I don't recognize the signature on the document as Judge Ott or Greene.
    So who's signature is it?
    This whole thing has a very bad odor surrounding it....

  20. Yeah Jackson, this is another one that does not pass the smell test.

  21. Most Alabamians are struggling to put food on their tables and this gang of four (and probably more) are living the high life on our dime.
    Shameful as it comes.

  22. Here we go again with a story by Bob Lowry in the Huntsville Times on similar shenanigans by state superintendent Joe Morton:
    Private group receives $13 million in state funds to contract for educational software without state school board approval
    Mike Hubbard our illustrious House Speaker is mentioned. That guy is dirty, dirty, dirty, but to hear him talk he's a "new day in Alabama" ethical republican.
    I bet if we were to carefully examine all state agencies that get Education Fund federal money we would find a whole lot of Sir Williams and Little Sisters at play in the kitty.


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