July 2008

Dickie and Zach Scruggs were compelled to give depositions last week in McIntosh v. State Farm. It was reported (to no one’s surprise) that they invoked their Fifth Amendment rights. They wanted the depositions sealed, which State Farm opposed. On Wednesday, the transcripts were made public, and many of the questions posed by State Farm attorneys were certainly eye-openers, alleging details of a wide ranging scheme involving Trent Lott, Jim Hood, the Rigsbys and others. Y’all Politics has the details and the Sun Herald also has a story. State Farm on Tuesday filed an emergency motion to compel testimony, but considering the possible further criminal implications for both Dickie and Zach Scruggs, it would be surprising if the motion were granted.

Meanwhile, in a rewrite of Tuesday’s story, the Sun Herald reported Wednesday that the Rigsbys have obtained new counsel in the qui tam case, Gilbert Randolph of Washington.

It’s beyond our scope to delve into all the filings in ex rel. Rigsby, the qui tam case filed by Kerri Rigsby and Cori Rigsby Moran, formerly represented by Dickie Scruggs. But the latest ones are of importance because if true, they confirm what those of us without blinders have suspected all along: that the whole production was staged by Scruggs from the beginning, well before either he or the Rigsbys insist they met each other.

State Farm has filed a response opposing Provost Umphrey’s entry for the Rigsbys, as they earlier indicated they would. In support of certain of the arguments in that motion, State Farm also presented transcripts from adjuster Tammy Hardison and her assistant Dana Lee, former Rigsby coworkers at E. A. Renfroe. We won’t go into all the jaw-dropping details, but David Rossmiller has an excellent and hilarious review of the content. We agree with his assesment: “The Ride of the Rigsbys is definitely over, finished, bye-bye, ancient history, kaput, ausgespielt.” Anita Lee at the Sun Herald has a story here.

Provost Umphrey of Beaumont, Texas, the law firm which has picked up some of the clients from the now-disqualifed Scruggs Katrina group in the Shows v. State Farm RICO lawsuit, has filed a Motion for Leave to discuss and consider representing the Rigsby sisters in ex rel. Rigsby, the qui tam case. They also ask for an extension of the deadline for the Rigsbys to obtain representation. Oddly, the motion was filed in connection with a different civil action, Alford v. State Farm, yet it seeks relief for Provost Umphrey, not Alford. Attorneys for State Farm quickly filed a notice of intent to respond in opposition to the firm’s attempt to represent the Rigsbys, but will not oppose giving the Rigsbys more time to obtain new counsel The Sun Herald story has links to both filings.

The Bureau of Prisons has ordered Dickie Scruggs to report to the low security federal prison in Ashland, Kentucky on August 4. Zach Scruggs has been ordered to report to the minimum security federal prison camp in Pensacola, Florida on August 15. Co-defendant Sid Backstrom was assigned earlier to the low security federal prison in Forest City, Arkansas, as he had requested; he reports on August 4. (Sun Herald).

Now that legal proceedings have concluded, disbarment of the three defendants is imminent (Sun Herald). The Mississippi Bar’s earlier motions to suspend were never acted upon, possibly because of the Mississippi Supreme Court’s limited schedule after sprinkler flooding damaged the Court’s offices in May.

“Justice should be dispensed just as surely to the powerful and well-connected as anyone else.” Guest columnist Craig Ziemba has an excellent op-ed in The Meridian Star.

Attorneys for Zach Scruggs yesterday filed a motion (h/t folo) asking the court to recommend that the Bureau of Prisons assign him to serve his sentence at the minimum security Federal Prison Camp in Pensacola. This was not requested at sentencing because his attorneys were sure he wouldn’t be sentenced to prison. This is the same facility Dickie Scruggs has requested. As previously noted, Paul Minor is already housed there, and Dickie Scruggs testified against him.

Here’s the Zach Scruggs sentencing transcript. Judge Biggers determined that “with a total offense level of 16 and a criminal history category of one, the guideline range of imprisonment is 21 to 27 months…” He departed downward to reach the level 16 offense and then departed downward to the 14 month sentence, making the likelihood of a successful appeal of the sentence highly unlikely. Mike Moore’s performance can charitably be called oblivious — see pages 6 thru 11 of the transcript. He apparently relied on AUSA Thomas Dawson’s reiteration of the government’s probation recommendation to protect his client from a prison sentence, despite the umistakable language in the plea agreement, the court’s clear warning in the plea hearing and the court’s specific reference to Zach Scruggs’ role during Dickie Scruggs’ sentencing last week. Yet sources quote Moore saying on public radio,”We had no expectation that the judge would sentence him to jail today. None.” Judge Biggers has set August 15 as Zach Scruggs’ surrender date.

Apparently Zach Scruggs and attorneys Mike Moore and Todd Graves were stunned. Despite the government’s recommendation of probation, the sentence does not surprise us considering Judge Biggers’ comments at Dickie Scruggs’ sentencing last Friday concerning Zach’s involvement. Tom (NMC) Freeland at folo from the courtroom here and here, Clarion-Ledger. As in the sentencings of Dickie Scruggs and Sid Backstrom, Judge Biggers imposed a $250,000 fine which is an upward departure to include the cost of incarceration.

The Sun Herald has the story and the presentencing memorandum. Zach Scruggs will be sentenced tomorrow. He pleaded guilty on March 21 to misprision of a felony (earlier). While prosecutors recommended probation, his plea agreement and the plea hearing transcript make it clear that the court is not bound by the recommendation. While the US Probation Office’s presentence report is not public, it can be deduced from today’s memorandum that some prison time was recommended. US District Judge Neal Biggers can sentence him to as much as three years in prison, and given Judge Biggers’ remarks in the Dickie Scruggs sentencing transcript last Friday, Zach Scruggs has reason to be concerned.