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Hubbard/Riley Accuse US Senator of Running “Shakedown Routine, Racket”

Bill Britt

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By Bill Britt
Alabama Political Reporter

MONTGOMERY—Emails recently released by the State at the request’s of Speaker Mike Hubbard’s criminal defense attorney J. Mark White show that former Gov. Riley and Hubbard believed Alabama’s Senior US Senator was involved in a “shakedown routine.”

In an email exchange between Riley and Hubbard in October 2011, the pair state that Republican US Senator Richard Shelby and Ray Cole have engaged in a “racket” and a “shakedown routine,” to make money off the Senator’s office.

In one exchange Riley writes to Hubbard, “Ray Cole has a racket…someone said he makes over 2 million a year and doesn’t do anything but get people in to see Shelby.”

According to his bio at Van Scoyoc Associates Inc., Cole, “specializes in Federal legislative policy issues.” It further states that he “worked for US Sen. Richard Shelby of Alabama from 1993 until 1999.  In 2001, the Bush-Cheney Transition Team picked Mr. Cole as an adviser on the US Department of Commerce.  Mr. Cole also worked as a consultant to Bush for President 2000 and for Bush-Cheney 2004, Inc.”

Cole is listed as serving on the “UA President’s Cabinet and is a member of the Advisory Board for the Blackburn Institute.”

Hubbard and Riley say that Cole has made millions through his association with Shelby. Later in the exchange Hubbard writes Riley saying, “Ray Cole has made millions off Shelby. Those two have a shakedown routine like you wouldn’t believe.”

The word “shakedown” according to the online dictionary is, “Another word for extortion/blackmail, or the obtaining of a good or service through means of force, threats/intimidation, or abuse of power.”

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Riley tells Hubbard that he would like to mimic the operation saying, “I may need to just hire a few lobbyist [sic] and become a principle [sic]–if I can do that; doesn’t seem like I could do that but who knows maybe I can.”

Hubbard replies that he has already “checked it out” with then director of the State’s ethics commission, Jim Sumner, and he will confirm that it is okay.

Hubbard to Riley:
“You can do it. I have already checked it out. Sumner can confirm. You could hire John Ross (or any one of our friends) for $1 per year and they would do it.”

Ross is currently a lobbyist for Swatek, Azbell, Howe and Ross in which he, along with Swatek and Howe, are mentioned in the indictments and evidence in Hubbard felony public corruption case.

Riley asks Hubbard how Cole funnels the money back to Shelby? Hubbard answers by saying it is done through “campaign contributions.” He specifically says that Cole uses “FedEx PAC, every PAC that FexEx (sic) has influence over, every client that wants access to Shelby… [campaign contributions].”

Hubbard lays out for Riley how they could accomplish a similar scheme by hiring a middle man to contract work with Hubbard’s Auburn Network, “I still believe that you are a ‘strategic business consultant’, not a lobbyist. You could hire a lobbyist for BR&A—a Riley Team person who will do it for virtually nothing—which will allow BR&A to hire Auburn Network, Inc. to handle your marketing needs. We could do media buying, polling, focus groups, design work, printing, anything you need.”

Riley was a registered lobbyist at the time, but Hubbard said that he felt Riley was a “‘strategic business consultant’ not a lobbyist.”

On the face of it, the Riley and Hubbard allegations against Shelby and Cole are quite serious. But, knowing these schemes exist and how these men make money off of their public offices is just as important. This is exactly what the State says Hubbard has repeatedly done in violation of the law.

Quotes From Hubbard and Riley Emails October, 2011

Riley to Hubbard:
“Ray Cole has a racket…someone said he makes over 2 million a year and doesn’t do anything but get people in to see Shelby. I may need to just hire a few lobbyist [sic] and become a principle [sic]–if I can do that; doesn’t seem like I could do that but who knows maybe I can.”

Hubbard to Riley:
“You can do it. I have already checked it out. Sumner can confirm. You could hire John Ross (or any one of our friends) for $1 per year and they would do it.n Ray Cole has made millions off Shelby. Those two have a shakedown routine like you wouldn’t believe.”

Riley to Hubbard:
“How does it get back to Shelby?”

Hubbard to Riley:
“Campaign contributions.”

Riley to Hubbard:
“From who though?”

Hubbard to Riley:
“FedEx PAC, every PAC that FexEx (sic) has influence over, every client that wants access to Shelby…[campaign contributions]

“If you will build polling/focus groups into your strategic consulting plans for BR&A clients, that is something that could benefit me.

“I still believe that you are a “strategic business consultant” not a lobbyist. You could hire a lobbyist for BR&A—a Riley Team person who will do it for virtually nothing—which will allow BR&A to hire Auburn Network, Inc. to handle your marketing needs. We could do media buying, polling, focus groups, design work, printing, anything you need.

“Less focus on you and your clients.”

Bill Britt is editor-in-chief at the Alabama Political Reporter and host of The Voice of Alabama Politics. You can email him at [email protected] or follow him on Twitter.

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Economy

New unemployment claims held steady in June, state says

Micah Danney

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The number of Alabamians filing for unemployment insurance held more or less steady over the course of June, with 18,340 new claims added during the last week of the month, according to the Alabama Department of Labor.

There were 19,950 new claims in the first week of June and 18,367 in the second week, then a slight jump to 18,671 in the third week. 

The month’s total of 75,328 new claims comes after Gov. Kay Ivey relaxed some restrictions meant to slow the spread of COVID-19 and allowed more businesses to open. The numbers vary by industry and county, but generally represent some stabilization, according to department spokesperson Tara Hutchison.

“They remain significantly down from a high in excess of 100,000 in April, which is good news. I don’t know if we can really expect anything one way or another in this unprecedented situation, but the decline from early in the pandemic is of course welcome news,” Hutchison said.

About 60 percent of last week’s new claims were attributed to COVID-19. 

The state’s unemployment rate dropped from 13.8 percent in April to 9.9 percent in May. That compares to a rate of 3 percent in May 2019.

Jefferson County had the highest share of new claims last week at 2,626, followed by Mobile and Montgomery counties at 1,900 and 1,400, respectively.

The worst-hit industries that are categorized were administrative and support services, food service and bars, transportation equipment manufacturing, general merchandise stores, nursing and residential care facilities and educational services. 

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As of May, counties with the lowest unemployment rates are Clay County at 5.6 percent, Geneva County at 6.3 percent and Shelby County at 6.5 percent. 

Counties with the highest unemployment rates are Wilcox County at 19.3 percent, Lowndes County at 18.3 percent and Greene County at 16.4 percent.

Major cities with the lowest unemployment rates are Vestavia Hills at 5.2 percent, Homewood at 5.4 percent and Madison at 6.2 percent.  

Major cities with the highest unemployment rates are Prichard at 18.6 percent, Selma at 17.1 percent and Gadsden at 15.7 percent.

Wage and salary employment increased in May by 42,500, according to the department.

Average weekly earnings increased to a record high in May, rising to $905.25 per week, representing an increase of $66.43 over the year.

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Health

Jones urges public to heed surging COVID-19 cases, hospitalizations

Eddie Burkhalter

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U.S. Sen. Doug Jones, D-Alabama, on Thursday pleaded with the public to take COVID-19 seriously, especially now, as reopening of schools and Fourth of July celebrations near. Meanwhile, the state continues to see record numbers of new cases and hospitalizations. 

Alabama on Thursday saw a fourth straight day for record-high COVID-19 hospitalizations — and a record number of newly reported COVID-19 cases, when taking into account data collection problems that inflated Monday’s total.

As of Thursday afternoon, 843 people were being treated in Alabama hospitals for COVID-19, according to the state health department. That number is an increase of nearly 22 percent over this time last week, and a near 40 percent increase compared to the beginning of June.

At least “961 of our neighbors and family members have lost their lives to COVID-19, and we need to be cognizant of that as well, as those numbers continue to grow,” Jones said during a press briefing Thursday, also noting that over the last 14 days Alabama has seen 11,091 new cases of the virus, which is 28 percent of all the state’s COVID-19 cases. 

Jones said that while we’re testing more people in recent weeks, The Alabama Department of Public Health’s statistics show that a greater percentage of the tests are coming back positive.

Based on a seven-day average, roughly 14 percent of the tests conducted in the state are now coming back positive. Public health experts believe that such a high percentage of positives is a sign that there continues to be community spread of the virus, and that there still isn’t enough testing being done. 

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Jones said he’s concerned, too, about the timing of the surge in new cases, coming in the weeks after Gov. Kay Ivey lifted her more rigorous restrictions and after Memorial Day celebrations.  

“People did not seem to get the message about social distancing and wearing masks, and we are seeing these numbers increase and increase and increase,” Jones said. 

Jones noted the state’s long lines for people seeking help with their unemployment applications, some even camping out overnight to get that help, and said he’s written a letter to Senate leadership asking for federal funding to state departments of labor to better service those in need. 

The senator also discussed Oklahoma’s recent expansion of Medicaid, and said that the action made clear state leaders there understand that during the pandemic they needed to get all the help they can to their fellow citizens. 

“It is my hope that Alabama will also do likewise. We continue to see a rise in the number of people that could benefit from expanded Medicaid,” Jones said, adding that he’s still working to get another round of incentives to states to encourage expansion of Medicaid. 

Asked if there would be another round of stimulus checks sent to individuals, Jones said “maybe.” 

Jones said the next round of COVID-19 legislation is being drafted behind closed doors by Sen. Mitch McConnell, the Republican Senate majority leader from Kentucky, and that it’s uncertain whether more direct payments to individuals will be included in the final bills. 

“I’ve heard mixed messages coming out of the administration and Senator McConnell’s office,” Jones said, adding that he’s for the additional payments and thinks it will be needed going forward. 

Montgomery Mayor Steven Reed, speaking during the press conference, said the Montgomery City Council could take up at the next council meeting a measure that would place guidelines on businesses within the city to be held accountable for helping enforce the city’s mask ordinance for the public. 

In the absence of a statewide mask order, local governments have been instituting their own in recent weeks. Wearing masks, staying home when at all possible and maintaining social distancing when one can’t are the best ways to reduce spread of the virus, public health experts say.

Montgomery currently has a mask order in place, which carries the possibility of a $25 fine for individuals not following the order. 

Reed said at the next meeting, council members may deliberate on a measure to require businesses help ensure the public adheres to the mask order or face possible suspension of their business license “for a couple of weeks, so that is yet to be voted on, and we will look at that.” 

Reed said that the point of the city’s mask order isn’t to fine people, however, but to encourage them to wear masks and help save lives. He noted that Montgomery’s mask order has been followed by similar orders in Mobile and Selma, as local municipalities make independent decisions to protect their fellow citizens.

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Health

Alabama’s COVID-19 surge is not slowing

Eddie Burkhalter

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The number of patients in Alabama hospitals being treated for COVID-19 surged past 800 on Thursday, marking a fourth straight day of record-high hospitalizations as concerns grow over the possibility that hospitals could become stressed due to the influx of patients.*This story was updated throughout at 4 p.m. on July 2 to reflect updated hospitalization data for Thursday.

As of Thursday afternoon, 843 people were hospitalized with COVID-19, according to the Alabama Department of Public Health’s data. That’s more than any point prior and an increase of more than 20 percent compared to this time last week — and an increase of 40 percent compared to the beginning of June.

The number of newly reported COVID-19 cases also reached a new high Thursday, as the state added 1,162 cases. On Monday, there were 1,718 cases, but because of delays in data collection, Monday’s numbers included figures from Saturday and Sunday.

The previous daily high was June 25, when the state saw an additional 1,129 cases.

The seven-day and 14-day rolling averages of daily cases both reached record highs this week. The seven-day average reached 981 Tuesday, a record, and remains high at 979. The 14-day average reached 843 Thursday for the first time. Rolling averages are used to smooth out daily inconsistencies and variability in case reporting.

Additionally, the number of tests that are positive remains high. Taking into account incomplete data in April that inflated the numbers then, on Thursday the seven-day average of percent positivity was at 13.64, the third highest percentage since the start of the pandemic. The 14-day average of percent positivity on Thursday of 12.16 was the highest it’s been, taking into account the inflated April numbers. 

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Public health officials and experts believe the percentage of tests that are positive should be at, or preferably below, 5 percent. Any higher, and the data suggests that the state is not performing enough tests and many cases are still being missed.

At least 81 deaths have been reported in the last seven days, bringing the state’s death toll from COVID-19 to 961. In the last two weeks, 160 people have died from COVID-19.

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Guest Columnists

Opinion | Gov. Ivey: This is our time, Alabama

Gov. Kay Ivey

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My fellow Alabamians:

In a few days, America will celebrate her 244th birthday. 

Traditionally, many towns and cities around the country light up the night with fireworks and music festivals. In 1776, John Adams predicted that Independence Day would be “celebrated by succeeding generations” with “pomp and circumstance…bonfires and illuminations.”

However, largely because of COVID-19, this year’s observance of our country’s birth will likely be a bit more subdued than previous years. While unfortunate, this is certainly understandable.

Today – and very likely in the days that will follow – instead of talking about what unites us as one nation – other conversations will occur that are, quite frankly, a bit more difficult and challenging. 

My personal hope – and prayer – for this year’s 4th of July is that the marvel of our great country – how we started, what we’ve had to overcome, what we’ve accomplished and where we are going – isn’t lost on any of us.

We are all searching for “a more perfect union” during these trying and demanding days.

Over the past several weeks, our nation has been having one of those painful, yet overdue, discussions about the subject of race.

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The mere mention of race often makes some people uncomfortable, even though it is a topic that has been around since the beginning of time.

Nationally, a conversation about race brings with it the opportunity where even friends can disagree on solutions; it also can be a catalyst to help total strangers find common ground and see things eye-to-eye with someone they previously did not even know.

Here in Alabama, conversations about race are often set against a backdrop of our state’s long – and at times – ugly history on the subject.

No one can say that America’s history hasn’t had its own share of darkness, pain and suffering.

But with challenge always comes opportunity. 

For instance, Montgomery is both the birthplace of the Civil Rights Movement, as well as the cradle of the Confederacy. What a contrast for our Capital City.

The fact is our entire state has, in many ways, played a central role in the ever-evolving story of America and how our wonderful country has, itself, changed and progressed through the years.

Ever since the senseless death of George Floyd in Minneapolis, thousands of Alabamians – of all races, young and old – have taken to the streets of our largest cities and smallest towns in protest to demand change and to seek justice.

These frustrations are understandable. 

Change often comes too slowly for some and too quickly for others. As only the second female to be elected governor of our state in more than 200 years, I can attest to this. 

Most of us recognize that our views on issues such as race relations tend to grow out of our own background and experiences. But, fortunately, our views can change and broaden as we talk and learn from each other.

As a nation, we believe that all people are created equal in their own rights as citizens, but we also know that making this ideal a reality is still a challenge for us.

Even with the election of America’s first African American president 12 years ago, racial, economic and social barriers continue to exist throughout our country. This just happens to be our time in history to ensure we are building on the progress of the past, as we take steps forward on what has proven to be a long, difficult journey.

Folks, the fact is we need to have real discussions – as an Alabama family. No one should be under the false illusion that simply renaming a building or pulling a monument down, in and of itself, will completely fix systemic discrimination.

Back in January, I invited a group of 65 prominent African American leaders – from all throughout Alabama – to meet with me in Montgomery to begin having a dialogue on issues that truly matter to our African American community in this state. This dedicated group – known as Alabama United – is helping to bring some very legitimate concerns and issues to the table for both conversation and action.

As an example, Alabama will continue to support law enforcement that is sensitive to the communities in which they serve. We have thousands of dedicated men and women who put their lives on the line to protect our state every single day. But we can – and must – make certain that our state’s policies and procedures reflect the legitimate concerns that many citizens have about these important issues.

I am confident all these conversations – and hopefully many more – will lead to a host of inspirational ideas that will lead to a more informed debate and enactment of sound public policy. 

We must develop ways to advance all communities that lack access to good schools, jobs, and other opportunities. As governor, I will continue to make education and achieving a good job a priority – it distresses me that some of our rural areas and inner cities face some of the greatest challenges in education.

There are other critical issues that must be addressed, and I will continue to look for solutions along with you.

Everyone knows government cannot solve these problems alone. Some of the greatest solutions will come from private citizens as well as businesses, higher education, churches and foundations. Together, we can all be a part of supporting and building more inclusive communities.

In other words, solving these problems comes from leaning on the principles that make us who we are – our faith – which is embodied in the Golden Rule: “Do unto others as you would have them do unto you.”

My beliefs on how to treat people were shaped in Wilcox County and my faith was developed at the Camden Baptist Church. 

The bible tells us over and over that our number one goal is to love God with all of one’s heart and then to love our neighbor as we love our self. That is what I strive to do every day.

When anyone feels forgotten and marginalized, compassion compels us to embrace, assist and share in their suffering. We must not let race divide us. We must grow and advance together.

Being informed by our past, let us now carefully examine our future and work towards positive change. Together, we can envision an Alabama where all her people truly live up to the greatness within our grasp. We cannot change the past or erase our history… But we can build a future that values the worth of each and every citizen.

So, in closing, my hope and prayer for our country as we pause to celebrate America’s 244th birthday, is that we make the most of this moment.

As for our state, let’s make this a time to heal, to commit ourselves to finding consensus, not conflict, and to show the rest of the nation how far we have come, even as we have further to go. 

These first steps – just as we are beginning our third century as a state – may be our most important steps yet.

This is our time, Alabama. May God continue to bless each of you and the great state of Alabama.

 

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