ELECTRONICALLY FILED

2/27/2015 12:25 PM
43-CC-2014-000565.00
CIRCUIT COURT OF
LEE COUNTY, ALABAMA
MARY B. ROBERSON, CLERK

IN THE CIRCUIT COURT OF LEE COUNTY, ALABAMA

STATE OF ALABAMA,

)
)
)
)
v.
)
)
)
)
MICHAEL GREGORY HUBBARD, )
)
Defendant.
)

CASE NO.

CC-2014-000565

STATES RESPONSE IN OPPOSITION TO

DEFENDANTS MOTION FOR MORE DEFINITE STATEMENT
The State of Alabama hereby submits its Response in Opposition to
defendant Michael Gregory Hubbards (Hubbard) Motion for More Definite
Statement. The twenty-three-count indictment clearly and succinctly sets forth the
charges against Hubbard and he has failed to show good cause for the requested
relief. Accordingly, the Motion is due to be denied.
INTRODUCTION
Led by newly-elected Speaker Mike Hubbard, the Alabama House of
Representatives passed a new set of ethics law reforms on December 15, 2010. On
October 17, 2014 Hubbard was indicted for twenty-three felonies, most of which
involve violations of the ethics reforms he championed in 2010, but all of which
arise out of the ethics law statute, Ala. Code 36-25-1, et seq. (hereinafter Ethics
1

Laws). A Lee County grand jury charged Hubbard with using his elected position
in the House of Representatives and as Chairman of the Alabama Republican Party
to make money and obtain financial favors from lobbyists and others with interests
before the Legislature. Specifically, the grand jury returned an indictment charging
Hubbard with six counts of violating 36-25-5(a), Ala. Code (1975), Use of office
for personal gain (Counts 1, 2, 3, 4, 7, 11); one count of violating 36-25-5(b),
Voting for legislation with a conflict of interest (Count 5); eleven counts of
violating 36-25-5.1(a), Soliciting or receiving a thing of value from a lobbyist or
principal (Counts 6, 10, 15, 16, 17, 18, 19, 20, 21, 22, 23); four counts of violating
36-25-1.1, Lobbying an executive department or agency for a fee (Counts 8, 9,
12, 13); and one count of violating 36-25-5(c), Use of equipment, materials, etc.
(Count 14).
Even though the indictment clearly sets forth the charges against Hubbard,
he demands that the State specifically describe its evidence and explain to the
defense how the State intends to prove the requirements of each and every
statutory element contained in the indictment. There is no basis under Alabama
law for Hubbards request and his Motion should therefore be denied.
ARGUMENT
The indictment clearly and succinctly includes all of the elements of the
Ethics Laws Hubbard is accused of violating as the charges track the statutory
2

language of those laws.1 The indictment further concisely sets forth the factual
allegations forming the basis for each of the charges. As an additional matter, the
over 2.5 million pages of documents produced by the State in discovery also
sufficiently inform Hubbard of the nature of the crimes with which he has been
charged. As such, Hubbard failed to show good cause and he is therefore not
entitled to a more definite statement of the charges set forth in the indictment.
As this Court has already held, [t]he rule in Alabama is that an indictment
is sufficient if it charges the elements of the statutory offense in the words of the
statute. (June 13, 2014 Order, State v. Felix Barry Moore, CC-2014-226, at p. 2)
(citing Nance v. State, 424 So.2d 1358 (Ala. Crim. App. 1982); Ex parte Allred,
393 So.2d 1030 (Ala. 1980)). Indeed, Hubbard concedes that the indictment does
use the language of the statute, which means that the indictment is sufficient on its
face. (Motion, at 2); see Ex parte Allred, 393 So.2d 1030, 1032 (Ala. 1980) (An
indictment is sufficient [if it] substantially follows the language of the statute,
provided the statute prescribes with definiteness the constituents of the offense.);
Ex parte Harper, 594 So.2d 1181, 1183 (Ala. 1991) (The general rule in
Alabama, even before the adoption of Temporary Rule 15 (now Rule 13), was that
it was sufficient to charge the elements of the statutory offense in the words of the
Notably, Hubbards Motion does not allege that the State has omitted any elements of the
crimes for which he is charged.
2
This pleading is neither an exhaustive list of the States evidence and theories of criminal
liability, nor does it confine or limit the States ability to argue or present evidence at trial.
1

statute, provided the statute prescribed with definiteness the constituent elements
of the offense.) (citing Allred).
The purpose of this rule is to place the defendant on notice of the nature of
the accusation against him so that he may prepare a defense. (Order, State v. Felix
Barry Moore, at p. 2). As such, Alabama law merely requires an indictment to
contain a statement of legal conclusion and it is not required that an indictment
plead evidentiary facts necessary to a conviction. See Rule 13.2, Committee
Comments (citing Hochman v. State, 91 So.2d 500, 501 (Ala. 1956)); see also
Moore v. State, 697 So.2d 800, 802 (Ala. Crim. App. 1996) (An indictment is
sufficient if it apprises the accused with a reasonable certainty of the nature of the
accusation against him so that he may prepare his defense and plead the judgment
of conviction as a bar to any subsequent prosecution for the same offense.).
Accordingly, the indictment here is sufficiently definite to inform Hubbard of
the charges against him. Rule 13.2(a), Ala. R. Crim. P.
While the indictment alone is more than sufficient to put Hubbard on notice
of the crimes with which he has been charged, any possible doubt concerning the
legal or factual bases for the charges in the indictment disappears when the
indictment is read in conjunction with the States substantial document production.
On February 17, 2015, the State produced emails, bank records, business records,
witness statements, and other documents totaling over 2.5 million pages to
4

Hubbard. The States production, taken with the indictment is more than sufficient
to inform Hubbard of the nature of the charges against him. See R.A.S. v. State,
718 So.2d 117, 121 (Ala. 1998) (The Court of Criminal Appeals correctly noted
that any critical details that are available to the State could be gathered by the
defendant through a preliminary hearing, a motion for a more definite statement, as
authorized by Rule 13.2(e), Ala. R. Crim. P., or other pretrial discovery
procedures.) (emphasis added).

Hubbards request for additional details is

therefore due to be denied.

In his Motion, Hubbard erroneously asserts that he is entitled to a pre-trial
summary of the States presentation of the evidentiary facts necessary to convict
him at trial. Alabama law, however, does not require the State to provide the
defense with an advance blueprint of its trial presentation; instead, the law allows
the State to answer these questions during its case-in-chief. Ignoring Alabama law,
Hubbard essentially seeks a bill of particulars even though Alabama does not
recognize a bill of particulars and the practice has never prevailed in this State.
Jones v. State, 34 So. 236, 238 (Ala. 1903); see also Johnson v. State, 335 So.2d
663, 672 (Ala. Crim. App. 1976) (An accused is not entitled to a bill of particulars
under Alabama law.). For this additional reason, his Motion is due to be denied.
Finally, a defendant must show good cause before a motion for more
definite statement should be granted. Rule 13.2 (e), Ala. R. Crim. P.; see also id.,
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Committee Comments (Because of the good cause requirement, it is

contemplated that motions for more definite statement will not be routinely made
or granted.) (emphasis added). Here, Hubbard has failed to show good cause
because the indictment tracks the language of the statute and the discovery
provided by the State is more than sufficient to inform Hubbard of the charges
against him. See also Hunt v. State, 642 So.2d 999, 1026 (Ala. Crim. App. 1993)
(While the sufficiency of a criminal indictment is determined from its face and
within the four corners of the indictment, any vagueness or uncertainty in
Hunt's understanding of the indictment was removed by the Attorney General's
lengthy response to Hunt's motion for a more definite statement.).
As discussed below, the indictment and discovery show that Hubbard has
been charged with the following criminal schemes: (1) Hubbards use of his office
as Chairman of the Alabama Republican Party to obtain over one million dollars in
personal gain for himself, Craftmaster or the Auburn Network (Counts 1-4); (2)
Hubbards solicitation and receipt of $5,000.00 per month from principal
American Pharmacy Cooperative, Inc. (APCI) and his votes in favor of
legislation that uniquely benefited APCI, (Counts 5-6); (3) Hubbards use of his
office for personal gain through his $12,000.00 contract with Southeast Alabama
Gas District (SEAGD) (Counts 7-9); (4) Hubbards solicitation and receipt of
$7,500.00 per month from principal Edgenuity/E2020 (Count 10); (5) Hubbards
6

use of his office for personal gain through his $10,000.00 per month contract with
Bobby Abrams business (Counts 11-14); (6) Hubbards solicitation and receipt of
$600,000.00 from principals for Craftmaster (Counts 15-19); and (7) Hubbards
solicitation and receipt of financial favors from lobbyists and principals to help
Auburn Network obtain more clients (Counts 20-23).2
I.

Counts 1-4: Hubbard used his office as Chairman of the Alabama

Republican Party to obtain personal gain for himself, Craftmaster or
the Auburn Network.
Hubbard served as Chairman of the Alabama Republican Party (ALGOP)

from 2007 to 2011. Under the Ethics Law, this position qualifies as a public
official. See 36-25-1(27), Ala. Code (1975). The Ethics Law forbids a public
official from using his office to obtain personal gain for himself or a business with
which he is associated. See 36-25-5(a), Ala. Code (1975). Counts 1 through 4 in
the indictment allege that Hubbard used this position to obtain personal gain for
himself, Craftmaster, or the Auburn Network. Since Hubbard is an owner of
Craftmaster and the Auburn Network, these are businesses with which he is

This pleading is neither an exhaustive list of the States evidence and theories of criminal
liability, nor does it confine or limit the States ability to argue or present evidence at trial.
Instead, the States Response merely provides examples by which the indictment and the States
discovery production adequately inform Hubbard of the nature of the charges against him,
illustrating that Hubbard cannot show good cause for the granting of his Motion. See Hunt,
642 So. 2d at 1026. All of the facts set forth here can be found in the indictment and the
discovery provided to the defense. In other words, nothing recited herein cannot be known by
Hubbard by simply looking at the indictment and the discovery produced by the State.
7

associated. See 36-25-1(2) (defining business with which the person is

associated).
Count 1 alleges that Hubbard used his position as ALGOP chairman to
benefit himself or Craftmaster by spending approximately $101,926.00 of ALGOP
money directly with Craftmaster in exchange for printing services. (See
Indictment, Count 1). That is, Hubbard directed money he controlled by virtue of
his office to be spent with his printing business in order to obtain financial gain for
himself and his printing business.
Likewise, Count 2 alleges that Hubbard used his position as ALGOP
chairman to benefit himself or Auburn Network by spending approximately
$41,836.00 of ALGOP money directly with Auburn Network in exchange for
media services. (See Indictment, Count 2). Specifically, Hubbard directed money
he controlled by virtue of his office to be spent with his media business in order to
obtain financial gain for himself and Auburn Network.
Count 3 alleges Hubbard also directed ALGOP money to Craftmaster
through an intermediary, Majority Strategies. That company received $787,379.00
from the ALGOP, which then provided $697,479.00 to Craftmaster. (See
Indictment, Count 3). Hubbard used his position as ALGOP chairman to require
Majority Strategies to subcontract printing services from Craftmaster, even though
Craftmaster was not the lowest-cost printer. This fact is shown by, among other
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things, an email between Majority Strategies executives Randy Kammerdiner and

Brett Buerck where they lamented being forced to use the high-priced Craftmaster:
Its fine to explain that we could actually send [Craftmaster] business
if their prices were more in line with what we pay other places ...
Based on a message I got from Hubbard last night, our relationship
relationship [sic] with them is still very tenous [sic]. And because I
am a greedy bastard I would rather us swallow our pride and also
make a lower profit margin in order to keep the client rather than
getting black-balled in a state because we think the printer is making
too much money and we dont like being forced to use them.
(AG2278395, email from Kammerdiener to Buerck, attached hereto as Exhibit 1);
(see also AG2171242 email from Kammerdiener to ALGOP employee Michael
Joffrin, attached hereto as Exhibit 2) (Per Mike, were printing at Craftmaster and
just passing the actual charges on to you all [ALGOP].).
Hubbards decision to force Majority Strategies to use Craftmaster caused
friction between the two businesses. Craftmaster President Barry Whatley
complained that Buerck routinely sent [him] emails blasting us about price, turn
time and quote turn time. (AG2243495, attached hereto as Exhibit 3). Whatley
also noted that he was not able to find a single job since 2009 that did not come to
Craftmaster via Majority Strategies that is not directly linked to Mike Hubbard.
(Id. at AG2243496). Hubbards frustration with Majority Strategies complaints
about Craftmaster prompted him to email ALGOP Executive Director John Ross as
follows: I am going to pay a printing company I own part of DIRECTLY. Not
through a company that is ungrateful for business and insists on being difficult. Is
9

that clear to everyone? (AG2278663, attached hereto as Exhibit 4). Kammerdiner

explained Majority Strategies position on the issue by telling Hubbard: I dont
think Brett [Buerck] has an issue with you or Craftmaster. Hes just a numbers guy
who likes to print where we get the best pricing. (AG2260766, attached hereto as
Exhibit 5). Thus, Hubbard used his position as ALGOP chairman to force Majority
Strategies to sub-contract printing services with the more expensive Craftmaster to
benefit Hubbard and the business he owns.
Similarly, Count 4 alleges Hubbard directed ALGOP money to Auburn
Network through an intermediary, Tim Howe and his business entities, which were
nothing more than a pass through for Hubbard to conceal and launder ALGOP
money to the Auburn Network. (See Indictment, Count 4). Specifically, Hubbard
spent approximately $171,203.00 of ALGOP money through Howes companies
on services provided by Auburn Network. (AGdoc0064449-AG2168868-042,
attached hereto as Exhibit 6).
As shown above, Hubbard repeatedly used his position as ALGOP chairman
to essentially embezzle over one million dollars (approximately $1,012,444.00) in
ALGOP money to Hubbards printing and media businesses. Since the State has
provided this information to the defense through the indictment and discovery,
then Hubbards Motion for More Definite Statement is due to be denied as to
Counts 1-4 in the indictment.
10

II.

Counts 5-6: Hubbard Voted for Legislation that Uniquely Benefited

Auburn Networks Client, American Pharmacy Cooperative, Inc.
In September 2012, the Alabama Medicaid Agency (Medicaid) began

researching the financial benefits of implementing a pharmacy benefit manager

program (PBM) for Medicaid. (AGdoc0235246, Wren Plea Agreement, attached
hereto as Exhibit 7). American Pharmacy Cooperative, Inc. (APCI), an Alabama
based pharmacy cooperative, represented the interests of independent pharmacies.
(Id.). APCI was not initially in favor of Medicaids idea of a commercial PBM.
(AGdoc0092716, attached hereto as Exhibit 8). Accordingly, during 2012 and
2013, APCI engaged in efforts to influence the Alabama Legislature and affect
legislation related to the implementation of a PBM by Medicaid. (See Ex. 7). As
part of these efforts, APCI employed lobbyist Ferrell Patrick to advocate for their
interests in the PBM legislation. (See AGdoc0229507-38, attached hereto as
Exhibit 9).
At the same time that it was paying Patrick for his lobbying efforts, APCI
was paying Hubbard $5,000.00 per month (approximately $95,000.00 total from
August 2012 to December 2013) to work as a consultant. (See APCI Contract,
AGdoc0107456, attached hereto as Exhibit 10). While he was being paid by APCI
to act as its consultant, Hubbard sent an e-mail to Ferrell Patrick in which
Hubbard agreed to send a letter to the Chair of the Alabama Medicaid Transition
Taskforce, Dr. Don Williamson, which would disparage Medicaids attempt to
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implement a PBM program. (Letter, AG0166380, attached hereto as Exhibit 11);

(E-mail, AG0166383, attached hereto as Exhibit 12).
As it became clear that Medicaid was going to continue its efforts to
implement a PBM program despite Patrick and Hubbards efforts to oppose such a
program on behalf of APCI, APCIs position evolved from trying to stop Medicaid
from implementing a commercial PBM program to introducing APCIs own
legislative language that would benefit APCI. To that end, in February 2013, APCI
provided language to Rep. Greg Wren for inclusion in legislation.3 The language
provided to Rep. Wren by APCI set forth specific requirements that any entity
operating as a PBM for Medicaid would have to meet in order to be eligible to
perform that function. Based on the requirements in that language, APCI was the
sole potential PBM provider that would be eligible to function as a PBM for
Medicaid.
Rep. Wren, and Patrick, had various meetings with members of the Alabama
Legislature in which Rep. Wren sought support for the APCI drafted language.
Relevant leadership of the Alabama House of Representatives, including Hubbard
and his staff, attended some of those meetings. After attending such meetings,
Hubbard endorsed the language APCI drafted that would result in it being the sole
3

Greg Wren was a Representative in the Alabama House of Representatives until April 1, 2014
when he resigned his office and pleaded guilty to using his office for personal gain in violation
of 36-25-5(a). See State of Alabama v. Greg David Wren, DC-2014-000809 (Montgomery
County District Court); (see also Ex. 7).
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Medicaid PBM, and Hubbard directed his staff to add the language to Medicaids
section of the General Fund Budget. In fact, Hubbards Chief Legal Advisor, Jason
Isbell, e-mailed the APCI language to Norris Green, the head of the Legislative
Fiscal Office, for inclusion in the General Fund Budget Bill. (AGdoc0223151,
attached hereto as Exhibit 13). Shortly thereafter, the APCI drafted language
became a part of the House of Representatives substitute version of the General
Fund Budget. (AGdoc0232108-09, attached hereto as Exhibit 14). The President
and CEO of APCI, Tim Hamrick, then sent a letter to Hubbard thanking him for
adding the APCI drafted language in the legislation. (AG0170228, attached hereto
as Exhibit 15).
On April 23, 2013, the substitute version, Senate Bill 143 (SB 143), was
voted on and approved by the House of Representatives. Hubbard voted yes on
SB 143 even though it contained the APCI drafted language that would make
APCI, for whom Hubbard was employed as a consultant, the exclusive PBM for
Medicaid. (AGdoc0232147, attached hereto as Exhibit 16). Accordingly, the
indictment charges that Hubbard was receiving money from APCI while directly
participating in and voting for legislation that uniquely benefited APCI by giving it
a monopoly over the State Medicaid prescription drug business. By voting for this
legislation, and participating in the legislative process to bring the bill to a vote in
the House, Hubbard violated the Ethics Laws prohibition against legislators voting
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for legislation on which they have a conflict of interest. See 36-25-5(b), Ala.
Code (1975); (Indictment, Count 5).
Also, because APCI had active interests before the legislature and employed
lobbyists, Hubbard ran afoul of the ban on soliciting or receiving things of value
from a principal, (i.e., one who employs a lobbyist). See 36-25-5.1(a), Ala.
Code (1975); (Indictment, Count 6). The fact that APCI lobbyist Ferrell Patrick
and APCI consultant Hubbard simultaneously worked to pass APCIs legislation
containing language that would make APCI the sole PBM for Medicaid in
Alabama underscores the impropriety of Hubbards soliciting and receiving money
from APCI.
Thus, the indictment, along with the States discovery, clearly informs
Hubbard of the nature of the crimes with which he has been charged regarding
APCI namely, that Hubbard was paid $5,000.00 per month by a principal and
that he had a conflict of interest in voting for legislation that uniquely benefited
APCI. Thus, his Motion for More Definite Statement should be denied as to
Counts 5-6.
III.

Counts 7-9: Hubbard used his office for personal gain through his
contract with Southeast Alabama Gas District.
Shortly after his election as Speaker of the House on December 8, 2010,

Hubbard began experiencing serious financial problems. For example, his primary
employer, IMG, informed Hubbard that he was being laid off effective March 31,
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2011 and would receive severance pay through March 31, 2012. (AGdoc0200585,
attached hereto as Exhibit 17). After March 31, 2012, Hubbard, through Auburn
Network, only received commission sales income from IMG. (AG0200586-90,
attached hereto as Exhibit 18). Hubbard immediately sought to find clients for
Auburn Network that could replace Hubbards lost income from IMG.
Through the assistance of former Governor Bob Riley and others, Hubbard
was able to obtain a $12,000.00 per month contract with the Southeast Alabama
Gas District (SEAGD). SEAGD paid Hubbard a total amount of $208,848.88 to
work as an economic development consultant from March 2012 to August 2013.
SEAGD obtained a letter from the General Counsel for the Ethics Commission,
Hugh Evans, regarding Hubbards employment with SEAGD. In his letter, Evans
advised SEAGD that the Ethics Law mandated that the Speaker may not use his
position or the mantle of his office to assist him in obtaining consulting
opportunities or providing benefits to his consulting business or his clients..
(Evans Letter, AGdoc0063381, attached hereto as Exhibit 19).
Hubbard submitted monthly activity reports to SEAGD detailing his work
for which SEAGD was paying him $12,000.00 per month. Despite the clear
guidance in the letter from the Ethics Commission to SEAGD, Hubbards activity
reports show that he repeatedly wore the mantle of his office in activities for which
SEAGD compensated him. That is, Hubbard sought compensation from SEAGD
15

for his activities as a public official and therefore used his public office for
personal gain. See 36-25-5(a), Ala. Code (1975); (see Indictment, Count 7).
On one occasion, Hubbard reported to SEAGD that he met with Commerce
Secretary Greg Canfield regarding the relocation of a truck plant from
Pennsylvania to the Abbeville area. (AGdoc0051085, attached hereto as Exhibit
20). Hubbard also reported meeting with Secretary Canfield on several occasions
to discuss projects in Abbeville and Ozark. (AGdoc0051086, attached hereto as
Exhibit 21). These projects were important to SEAGD because one of the reasons
it hired Hubbard was to recruit new businesses to the southeast Alabama area that
would directly and indirectly result in the purchase of additional amounts of
natural gas from SEAGD.
Hubbard also reported meetings he arranged or attended in his official
capacity with Governor Robert Bentley as work for which he sought compensation
from SEAGD. For example, Hubbard reported meeting with Governor Bentley
about the Abbeville project and Hubbard outlined to the Governor what the state
would need to provide to land the project. (AGdoc0051088, attached hereto as
Exhibit 22). In that same report, Hubbard informed SEAGD that the Governor
would provide the necessary resources. (Id.). On another report to SEAGD,
Hubbard stated he had arranged a meeting for July 19, 2012 with Governor

16

Bentley and others to discuss the relocation of a business from Miami to the
Dothan Airport. (AGdoc0051090, attached hereto as Exhibit 23).
Hubbard also wore the mantle of his office in recruiting an industrial
refurbishing business, Commercial Jet, to relocate its business operations to the
southeast Alabama area. Hubbard reported to SEAGD that on July 12, 2012, he
had a meeting with Governor Bentley and his Chief of Staff, David Perry, to
discuss with them the Commercial Jet project and the commitment the State of
Alabama would need to make as well as funding sources. (AGdoc0051091,
attached hereto as Exhibit 24). Hubbard also reported to SEAGD that he had set up
and led a meeting on July 18, 2012 with Governor Bentley and others regarding the
Commercial Jet project. (Id.). In August 2012, Hubbard submitted a report to
SEAGD describing his coordinating a second meeting with Governor Bentley
regarding Commercial Jet on August 31, 2012. (AGdoc0051092, attached hereto
as Exhibit 25). Hubbard further reported Governor Bentley, Representative Paul
Lee, Representative Steve Clouse, Blaine Galliher, David Perry and local officials
were present at that August meeting. (Id.).
Hubbard continued to seek compensation from SEAGD for his duties as a
public official regarding Commercial Jet in September 2012. Hubbard reported to
SEAGD for that month as follows: The Commercial Jet project continues to move
forward. I participated in a conference call with Governor Bentley, Greg Canfield
17

and David Perry regarding the incentive package the state will offer. I continue to
be a cheerleader for the project and point out the obvious economic and political
benefits created by the successful recruitment of the company.

I received a

commitment that the state will provide the necessary incentives. (AGdoc0051093,
attached hereto as Exhibit 26).
In October 2012, Hubbard reported to SEAGD that an executive from
Hankook Tire, Mr. Kim, suggested that Hubbard travel to South Korea to visit with
him. (AGdoc0051094, attached hereto as Exhibit 27). Hubbard explicitly noted
the importance of his public office to Kim in his October 2012 activity report: Mr.
Kim believes that my role in government would mean a great deal and put
Alabama at the top of the list if I were to visit. (Id.). Hubbard further reported
that he had spoken with Secretary Canfield and ensured that our area is
considered and we are included in the mix. (Id.).
Hubbard also wore the mantle of his office when he attended the Paris Air
Show in June 2013. Even though SEAGD paid for Hubbard to attend the Air
Show, Hubbard wore a name tag that identified him as Speaker of the House. (See
AGdoc0047918, AGdoc0047921, Invoices, etc., attached hereto as Exhibit 28);
(AG0742807, AG0742802, photos, attached hereto as Exhibit 29); (see also
AG0742798, Email from lobbyist Minda Riley Campbell to Hubbard, attached

18

hereto as Exhibit 30) (Here are the pictures I took of Mr. Speaker/Economic
Development Superstar).
Hubbard also acted as a paid representative for SEAGD in his dealings with
the Alabama Department of Commerce and the Office of the Governor for the
State of Alabama, which violated section 36-25-1.1, Ala. Code (1975). (See
Indictment, Counts 8-9). That section of the Ethics Law forbids members of the
Legislature from being paid to represent a person or business entity before an
executive department or agency. See 36-25-1.1, Ala. Code (1975). Hubbard met
with the Department of Commerce and the Governors Office on matters such as,
among other things, obtaining tax credits for Commercial Jet to relocate their
business in southeast Alabama. SEAGD paid Hubbard to incentivize Commercial
Jet to locate its business in that region in order to increase the sale of natural gas by
SEAGD. Thus, when Hubbard had meetings and other dealings with the
Department of Commerce and the Governors Office on behalf of SEAGD, he
violated the Ethics Law.
Since all of this information regarding Hubbards actions on behalf of
SEAGD is contained in the indictment and the States discovery production, the
indictment along with the States discovery clearly informs Hubbard of the nature
of the crimes with which he has been charged in Counts 7-9. Specifically, those
sources show that Hubbard wore the mantle of office in performing duties for
19

which he was compensated by SEAGD, and that he acted as a paid representative

for SEAGD during certain interactions with the Executive branch of state
government. Thus, his Motion for More Definite Statement should be denied as to
Counts 7-9.
IV.

Count 10: Hubbards Contract with Principal Edgenuity/E2020.

Similar to his contract with APCI, Hubbard was paid $7,500.00 per month

from another principal, Edgenuity, Inc. and/or E2020, beginning in April 2012.
That company, like APCI, employed lobbyist Ferrell Patrick in Alabama and had
active interests in state government. Hubbard was therefore prohibited from
accepting things of value from Edgenutiy while Hubbard held public office. See
36-25-1.1, Ala. Code (1975); (Indictment, Count 10).
It is no mere coincidence that both APCI and Edgenuity employed Patrick
and Hubbard because Patrick assisted Hubbard in obtaining lucrative consulting
contracts with Patricks clients. Indeed, Hubbard emailed Patrick after meeting
with him and wrote he was: very excited about the opportunity to work with some
of your clients and appreciate your assistance. (AG0164395, Hubbard email to
Patrick, attached hereto as Exhibit 31). In the same email, Hubbard told Patrick
that he had helped one of Patricks other clients: On another note, I met with
[State Superintendant] Tommy Bice and talked to him about iTeach. He is

20

reviewing the material and will get back with me on setting up a meeting. I will let
you know. (Id.) (emphasis added).
Even though Hubbard was prohibited from taking things of value (i.e.,
$7,500.00 per month) from Edgenuity because they are a principal, Hubbard took
the money and his employment activities directly involved his public office.
Edgenuitys internal emails show that Hubbard served as the companys contact
for House Speakers in all 50 states. (AGdoc0158228, attached hereto as Exhibit
32). Hubbard emailed the President of Edgenuity, Michael Humphrey, to report
that he assisted Edgenuitys lobbying efforts with the South Carolina Speaker of
the House, Bobby Harrell.4 Hubbard emailed Humphrey and said: I hope the
contract in Charleston you were having issues with a while back is still going well.
I know Speaker Harrell got involved in that one following my call to him.
(AGdoc0158088, attached hereto as Exhibit 33) (emphasis added). Hubbard
therefore solicited and received a thing of value from a principal and his
compensation was provided for reasons directly related to Hubbards position as a
public official.
Thus, the indictment, along with the States discovery, shows that Hubbard
solicited and received $7,500.00 per month from Edgenuity, lobbyist Ferrell
4

Bobby Harrell was Speaker of the South Carolina House of Representatives from 2005 to 2014.
On October 23, 2014, Harrell resigned and pleaded guilty to misusing campaign funds for his
personal benefit. See Jeremy Borden, Bobby Harrell pleads guilty to 6 counts, resigns from
House seat, The Post and Courier, October 23, 2014,
available at: http://www.postandcourier.com/article/20141023/PC1603/141029750.
21

Patricks principal, under circumstances that indicate that the money was provided
for reasons related to Hubbards position as a public official. The State is not
required to provide Hubbard any further clarification, meaning his Motion for
More Definite Statement is due to be denied as to Count 10.
V.

Counts 11-14: Hubbard used his office for personal gain through his
contract with Bobby Abrams business.
Counts 11 through 14 arise out of Hubbards contract with Bobby Abrams

and his businesses operating under CV Holdings, LLC. Hubbard solicited Abrams
in September 2012 to have Abrams hire Auburn Network, Inc., to help his plastic
cup company with sales, even though Hubbard candidly admitted that he did not
know anything about the cup business. (AG0541121, attached hereto as
Exhibit 34). In October 2012, Abrams hired Hubbard as a Consultant for
$10,000.00 per month. (AGdoc0119880, attached hereto as Exhibit 35).
Hubbard once again used the mantle of office to perform activities for
which he was compensated by Abrams company, in violation of 36-25-5(a) Ala.
Code (1975); (See Indictment, Count 11). Hubbard also used state equipment,
facilities, time, human labor and other public property under his control for the
private benefit of himself and his employer, Abrams. See 36-25-5(c), Ala. Code
(1975); (See Indictment, Count 14).
For example, in July 2013, CV Holdings requested Hubbards assistance
with a patent for which Abrams had applied. (AGdoc0120055, attached hereto as
22

Exhibit 36). Hubbard directed his Chief of Staff, Josh Blades, to assist Abrams
with speeding up the patent process. (See phone records of Blades call to the US
Patent office, AGdoc0197873, attached hereto as Exhibit 37). Hubbard also made
calls on Abrams behalf to the patent office. (AGdoc0016221-22, attached hereto
as Exhibit 38). With Blades assistance, Hubbard successfully helped Abrams
obtain the patent, which was issued in August 2013. Hubbard then commented to
Abrams that he hope[ed] [his] calls and pushing help speed it up a bit..
(AGdoc0119931, Hubbard email to Abrams, attached hereto as Exhibit 39).
Hubbard also used his position for personal gain by assisting Abrams with
lobbying the Alabama Department of Commerce and the Office of the Alabama
Governor to build a training center for workers that could be hired by Abrams
company. (See AGdoc0119901, attached hereto as Exhibit 40). Hubbard personally
spoke with Secretary Canfield and Governor Bentley on Abrams behalf on that
issue. (Id.). Hubbard also utilized another state employee under his control, Kristen
Hull, to arrange meetings with Canfield regarding Abrams businesses.
(AGdoc0119904, attached hereto as Exhibit 41). As a result, just like his activities
for SEAGD, Hubbard acted as a paid representative for Abrams in his dealings
with the Department of Commerce and the Governors Office, which is a violation
of 36-25-1.1, Ala. Code (1975); (see Indictment, Counts 12-13).

23

Hubbards Motion for More Definite Statement should therefore be denied

as to Counts 11-14 because the indictment, along with the documents produced by
the State during discovery, clearly informs Hubbard that he has been charged with:
(1) using his position as public official to obtain $10,000.00 per month from
Abrams business; (2) acting as a paid representative for Abrams in interactions
with the Executive branch of state government; and (3) using state equipment and
Hubbard and his staffs time and human labor for his and Abrams private business
benefit.
VI.

Counts 15-19: Hubbards Craftmaster Investment Scheme.

Hubbard again violated the Ethics Laws ban on soliciting or receiving

things of value from lobbyists or principals in his efforts to raise $1,500,000.00 in

capital for Craftmaster. Hubbard solicited and received a $150,000.00 investment
from ten individuals four of whom have active interests in state government,
employ lobbyists, and are otherwise considered principals under Alabama law.
Hubbard also solicited lobbyist Dax Swatek to participate in the Craftmaster
scheme, but Swatek declined to invest. (See Indictment, Count 15). At the time of
the solicitation, Swatek was a registered lobbyist representing, among others, Hoar
Construction. (AGdoc0229159, attached hereto as Exhibit 42). Hubbard
successfully solicited and received investments from the following principals: (1)
Will Brooke, a Board Member and prior Chairman of the Business Council of
24

Alabama (BCA); (2) Stern Agee, an investment firm led by then-President and
CEO, James Holbrook; (3) Jimmy Rane, the President of Great Southern Wood;
and (4) Rob Burton, the President of Hoar Construction. (See Counts 16, 17, 18,
19). In all, Hubbard solicited and received $600,000.00 from these principals.
The Craftmaster investment scheme arose out of Craftmasters failure to pay
employee withholdings taxes to the federal government in 2011 and its
accumulation of a large amount of debt. (See Regions Amendment,
AGdoc0187173-76, attached hereto as Exhibit 42A); (Regions Extension
Agreement, AGdoc0187308-19, attached hereto as Exhibit 42B). Previously, in
2005, Craftmaster filed for Chapter 11 bankruptcy protection. (See Ex. 42A at
AGdoc0187174). Much of the debt that caused Craftmaster to file for bankruptcy,
however, was forgiven and the company was allowed to exit bankruptcy and
restructured its business. (See id.).
Although Craftmasters next few years were profitable, the company started
experiencing cash flow problems in 2008. (Id.). As Craftmasters revenues
slowed, their operating expenses outpaced the cash flowing back into the
operation and, as a result, Craftmaster remained under-capitalized and continue
to struggle with cash flow and debt service. (Id.). Craftmasters financial
problems were compounded by their failure to pay employee payroll taxes to the
federal government. (See id.) ([D]ue to the cash flow shortage during FY2011, the
25

borrower slowed in payroll tax payments and is currently, delinquent for

approximately $350[,000]. This situation has been turned over to their outside CPA
for appropriate action to repay and settle any fines or penalties. The borrower is
now paying its ongoing payroll taxes.).
Craftmasters failure to pay the taxes due also caused the company to default
on its $600,000.00 loan from Regions Bank. (See Ex. 42B, at AGdoc0187308)
(Various Events of Default have occurred under the Loan Documents,
including without limitation, the failure of [Craftmaster] to pay all payroll
withholding taxes to the IRS). This loan was personally guaranteed by
Hubbard. (Id.).
A.

Hubbard Solicited and Received Things of Value from BCA

Principal Will Brooke.

Due to the tax and loan issues, Hubbard approached Brooke, a financial
advisor for Harbert Management Corporation and BCA Board member, for advice
on Craftmasters financial problems. Hubbard emailed Brooke and said: I know
you have a lot more important things on your mind, but I wanted to touch base on
my situation that we discussed a few weeks ago to see if youve had any more
thoughts. I am starting to get very nervous and am anxious to pursue any options
you might suggest.. (AGdoc0222553, email from Hubbard to Brooke, attached
hereto as Exhibit 43).

26

Hubbard expressed to Brooke, among others, that his financial problems had
the potential to ruin him personally and politically. (See AGdoc0221903, Hubbard
email to Brooke, attached hereto as Exhibit 44) (I will be anxious to hear your
thoughts, but I believe if I take the reins of the business, rIse [sic] the capital
necessary to eliminate the debt and most importantly take care of the tax debt I
can turn [Craftmaster] around. Failure is not an option as it means personal and
political ruin.) (emphasis added). That is, if Craftmaster could not raise sufficient
funds to pay the tax bill and its debts, then it would most likely file for bankruptcy
and Hubbard would be personally liable to Regions for the defaulted $600,000.00
loan.
Hubbard expressed to Brooke that he was very concerned personally and
politically about Craftmasters financial problems and Auburn Networks loss of
the IMG income. Hubbard further expressed that his work as Speaker was very
time-consuming and did not generate much income. After expressing those
concerns, Hubbard explained that he needed financial favors from Brooke in order
to avoid resigning his position as Speaker and a member of the House:
Personally, however, my employment with IMG, Auburns multimedia rights holder, ends at the end of this month As you know,
my concern is financial and the fact that serving as Speaker
consumes a enormous amount of time and generates virtually no
income. I have been in discussions with Governor Riley and believe I
would have an opportunity to work with him and his company if I
were to give up being Speaker and resign from the Legislature.
Although I believe I am making positive changes in Montgomery, I
27

need to think of my obligations to my family. Please keep me in your

thoughts as I make this decision.
(AGdoc0221916-17, Hubbard email to Brooke, attached hereto as Exhibit 45
(emphasis added). Brookes response to Hubbards email indicates that he was
eager to help Hubbard fix his money problems to ensure that Hubbard would keep
his job as Speaker:
There should be a solution to this. I have spoken to many business
people about it, and have found no answer. I even spoke to Governor
Riley about it, and he told me that you two had discussed it and were
working on some options. I did not realize that path would lead to
your resignation but, on reflection, I guess that is a given. It is quite a
quandary.
(Id.).
After Hubbard made clear to Brooke in the course of these and other emails
that the financial problems of Craftmaster, among other things, could ruin Hubbard
personally and politically and might even cause Hubbard to resign as Speaker
Brooke provided a solution. Brooke gave Hubbard a free financial investment plan
and advised Hubbard to raise $1,500,000.00 in capital from ten investors at
$150,000.00 per person. In exchange for the money, each investor would be given
preferred stock in Craftmaster, which would pay the investor interest and dividends
over time. Hubbard later explained the plan to former Governor Bob Riley as
follows:
With regard to the Craftmaster deal I mentioned to you on Thursday,
Will Brooke has helped me put together a scenario that I believe will
28

work. If I can find 10 people to invest $150,000 (total of $1,500,000),

I can pay all of the back payroll taxes, virtually all of the remaining
debt (including 1/3 of the LOC) and free up roughly $40,000 per
month in cash flow. The offer is to pay a 6% return on the investment
beginning 3 months after the investment with a payback of the
original $150,000 in five years.
(AG0541955, attached hereto as Exhibit 46).
With Brookes financial plan for Craftmaster in hand, Hubbard met with
Regions bank to discuss Brookes financial plan. In an email sent after the meeting
with Regions, Hubbard told Brooke that he laid out the plan that [Brooke]
developed in a meeting with the [Regions] Trouble Asset Division.
(AGdoc0222186 and 187, attached hereto as Exhibit 47). In addition to providing
the free financial plan, Brooke also personally invested $150,000.00 in
Craftmaster. (AGdoc0232037, attached hereto as Exhibit 48). That is, even though
Brooke is a principal for the BCA, Hubbard solicited and received from Brooke
a free financial investment plan for Craftmaster and a $150,000.00 investment in
Hubbards failing printing business.5 (See Indictment, Counts 16 and 23). Hubbard
did so with the clear implication that Brookes failure to help Hubbard would very
likely result in Hubbard stepping down as Speaker.

Hubbard is charged with soliciting and receiving Brookes free financial plan in Count 23 of
the indictment. As discussed in Section VII, infra, Hubbard is charged in that same count with
soliciting and receiving assistance in obtaining new clients for the Auburn Network from
Brooke. (See Indictment, Count 23).
29

B.

Hubbard Solicited and Received a $150,000.00 Investment in

Craftmaster from Principal Stern Agee.

Hubbard also solicited the President and CEO of Stern Agee, Jim Holbrook
who, like Brooke, is a principal under the Ethics Law to participate in the
Craftmaster investment scheme. After meeting with Holbrook, Hubbard emailed
Brooke as follows: I met with Jim Holbrook today in Bham. It went very well.
He indicated that he would almost certainly do one of the $150,000 deals and may
have its investors who would be interested on one []or two more!.
(AGdoc0222185, attached hereto as Exhibit 49) (emphasis added); (see also
Indictment, Count 17). Holbrook ultimately chose to invest Stern Agees money in
Craftmaster instead of personally investing in the business. (AGdoc0184125,
attached hereto as Exhibit 50).
C.

Hubbard Solicited and Received a $150,000.00 Investment in

Craftmaster from Great Southern Wood Principal Jimmy Rane.

In September 2012, Hubbard solicited Jimmy Rane, also a principal under

the Ethics law, to participate in the Craftmaster investment scheme. When Hubbard
approached Rane about the investment, Rane told Hubbard to speak with Great
Southern Woods financial person Gene Woodham. (See AGdoc0221619,
Hubbard email to Rane, attached hereto as Exhibit 51). Just as Hubbard had
previously explained to Brooke, Hubbard told Rane that failure is not an
option. (Id.). In that same email, Hubbard added that Ranes [p]articipation
30

would be a huge help. (Id.). After Woodham signed off on the investment, Rane
invested $150,000.00 of his personal funds in Craftmaster. (See AGdoc0221603,
attached hereto as Exhibit 52).
D.

Hubbard Solicited and Received a $150,000.00 Investment in

Craftmaster from Hoar Construction Principal Rob Burton.

Around the same time, Hubbard solicited Rob Burton, the CEO of Hoar
Construction and principal under the Ethics Law, to invest in Craftmaster. In one
of the emails Hubbard sent to Burton in the course of soliciting his investment,
Hubbard wrote as follows: I just wanted to check in with you regarding the
investment in Craftmaster. I have received the money from three (3) of the six (6)
investors thus far and am trying to get it all in so we can pay off Heidelberg (at a
discount) as well as the other parts of the plan I outlined for you.
(AGdoc0221787, email from Hubbard to Burton, attached hereto as Exhibit 53).
Burton later invested $150,000.00 of his personal funds in Craftmaster. (See
AGdoc0221812, attached hereto as Exhibit 54).
*

As demonstrated above, Hubbard believed Craftmasters dire financial

condition, among other money problems, could cause him personal and political
ruin. It is clear that [f]ailure was not an option for Hubbard, and his desperation
to avoid having to resign as Speaker motivated him to solicit lobbyists and
principals for money, even though the Ethics Law prohibits such activities. Indeed,
31

the States discovery production shows that Hubbards scheme to solicit and
receive $600,000.00 from principals was directly related to Hubbards service as a
public official. The indictment along with the States discovery thus clearly
informs Hubbard of the nature of the crimes with which he has been charged
regarding his scheme to solicit or receive money from lobbyists and principals for
Craftmaster. As a result, his Motion for More Definite Statement with regards to
Counts 15-19 is due to be denied.
VII. Counts 20-23: Hubbards Auburn Network Scheme.
In addition to soliciting and receiving investments in Craftmaster from
lobbyists and principals, Hubbard also solicited and received assistance with
obtaining new clients for the Auburn Network from lobbyists and others with
interests before the Alabama Legislature. Specifically, former Alabama Governor,
Bob Riley, who became a registered lobbyist after he left office, helped Hubbard
with obtaining potential new clients for the Auburn Network. (See Indictment,
Count 20). Lobbyists Minda Riley Campbell and Billy Canary, as well as BCA
principal Will Brooke, provided similar assistance. (See Indictment, Counts 21-23).
Additionally, as discussed above, Brooke also developed and provided a free
financial investment plan for Craftmaster. (See Indictment, Count 23).
Hubbards Auburn Network scheme arose out of, among other things, the
loss of Hubbards employment with IMG. As discussed above in Section III,
32

supra, IMG told Hubbard that his employment would be terminated effective
March 31, 2011. (AGdoc0200585, attached hereto as Exhibit 55). Hubbard told
Riley that IMG complained that Hubbard spent too much time on politics and
told [him] to choose. (AG0595776, attached hereto as Exhibit 56). Hubbard later
remarked to Riley that he was upset with Auburn University regarding IMGs
termination of Hubbard and said: AU doesnt seek my advice or even treat me
very well. As you know, they allowed IMG to kick me to the curb.and I am the
Speaker of the House!. (AG0536195, attached hereto as Exhibit 57) (emphasis
added).
Like Craftmasters potential bankruptcy and/or defaulting on loans
personally guaranteed by Hubbard, Auburn Networks financial problems similarly
concerned Hubbard both personally and politically. For example, Hubbard told
Riley that he had to sell stocks now to live off of, which isn't very comfortable for
the long term. (AG0546395, Hubbard email to Riley, attached hereto as Exhibit
58). Hubbard likewise remarked that his quest to be an effective Speaker had
been to the detriment to [his] personal and financial wellbeing. (AG0569373,
Hubbard email to Riley, attached hereto as Exhibit 59). In response to such emails,
Riley advised Hubbard to quit telling people you may have to step down as
speaker due to financial concerns. (AG0569790, attached hereto as Exhibit 60).

33

A.

Hubbard Solicited Lobbyist Bob Riley for Things of Value.

The loss of the IMG business caused Hubbard to seek the assistance of Riley
and others to obtain new clients for Auburn Network. As discussed above, this led
to Hubbards $12,000.00 per month contract with SEAGD. In addition to this,
however, Hubbard went so far as to directly solicit Riley to have his lobbying firm,
Bob Riley & Associates (BR&A) hire Auburn Network on several occasions. In
fact, Hubbard once directly solicited lobbyist Riley for help and asked: Can I just
come work for BR&A? I need a job and this way I would work someone I
respect. (AG0594186, attached hereto as Exhibit 61). Hubbard and Riley later
discussed this possibility and Hubbard then emailed Riley that he: certainly
appreciate[d] your willingness to allow me to be a part of your next venture(s).
(AG0596605, Hubbard email to Riley, attached hereto as Exhibit 62).
Hubbard also communicated to Riley that Hubbard wished [he] could just
run [BR&A] for [Riley]. (AG0592859, attached hereto as Exhibit 63). In addition
to soliciting Riley to let Hubbard personally work for BR&A, Hubbard also
solicited Riley to have BR&A hire Auburn Network to handle marketing.
(AG0570038, attached hereto as Exhibit 64). Knowing that this would be illegal
under Alabama law so long as Riley was a registered lobbyist, Hubbard told Riley
that he could de-register as a lobbyist in order for Hubbard to be able to form a
business relationship with BR&A. (Id.). In fact, in one email Hubbard expressly
34

acknowledged that the Ethics Law forbids Hubbard from working for BR&A
because Riley was a lobbyist. (See Hubbard email to Riley, AG0670566, attached
hereto as Exhibit 64A) (I need to be a salesman for GB&R. Except for those
ethics laws. Who proposed those things?! What were we thinking?) (emphasis
added).
Hubbard then proposed an alternative scheme which, in Hubbards view,
would allow BR&A to legally hire 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.
(Hubbard email to Riley, AG0632622, attached hereto as Exhibit 64B); (see also
Hubbard email, AG0632828, attached hereto as Exhibit 64C) (The Governor is
NOT a lobbyist he is a strategic consultant!!!).
Riley did not, however, de-register as lobbyist. Nor did he change his title
to strategic consultant. Instead of hiring Hubbard, Riley tried to help Hubbard
obtain new clients for the Auburn Network. Riley also advised Hubbard that he
could either be Governor or be wealthy, but he could probably not be both:
I understand---believe me I went 14 years on a Gov payroll and it
was a challenge. Now and from now on you and I are going to be
suspect in everything we do. However the ability to make great
change is given to few people and you are one of the rare ones that
can make it happen. Again question now is DO YOU WANT to be
35

Gov ----or---make alot of money: good thing is you could do either

but I am not sure its possible to do both. Talk to Rob and we
will get together next week.
(AG0575264, Riley email to Hubbard, attached hereto as Exhibit 65) (emphasis
added).
After Riley helped Hubbard obtain his lucrative SEAGD contract, Hubbard
regularly sought assistance from Bob Riley in identifying new business
opportunities for SEAGD. (See, e.g., AG0546395, Hubbard email to Riley,
attached hereto as Exhibit 66) (I hope you can help me with the suppliers in
locating in SEAGD areas. I need to deliver something in order to justify my
existence.); (AG0528214, attached hereto as Exhibit 67) (emphasis added) (If
you have any clients/prospects for econ dev that you can help me set up meetings
with SEAGD, that would really help me.) (emphasis added).
Hubbards requests for assistance from Riley became desperate after
SEAGD reduced Hubbards salary from $12,000.00 per month to $7,500.00 per
month effective March 1, 2013. (See AGdoc0047945, attached hereto as Exhibit
68). Hubbards fear that SEAGD might terminate the entire contract contributed to
his desperation. (See AG0536175, attached hereto as Exhibit 69) (SEAGD cut my
monthly pay in half and some of the mayors want to cut if off completely. I
desperately need to get some site visits set up to show I am generating interest.
Any help or advice would be appreciated.); (AG0545282, Hubbard email to
36

Riley, attached hereto as Exhibit 70) (I need to visit with you and try and figure
out what I need to be doing. I dont want SEAGD to cut me loose!) (emphasis
added).
In addition to seeking Rileys assistance in identifying clients for SEAGD,
Hubbard also sought Rileys assistance with obtaining new clients for Craftmaster.
For example, on February 18, 2013, Riley mentioned his lobbying client, Allan
McArtor, the Chairman and CEO of Airbus Group, Inc., in an email to Hubbard.
(See AG0534038, attached hereto as Exhibit 71). In response, Hubbard wrote to
Riley: I would like to meet [McArtor], if possible. I really need to get some of
their printing business somehow. (Id.). Riley then replied that Hubbard should
solicit Wayne Smith, the CEO of Community Health Systems a principal
represented by lobbyist Dax Swatek.
On February 19, 2013, Riley asked Hubbard: Does Wayne Smith not have
printing business --- looks like that would be a good client a hospital has nothing
to [d]o with your position. (Id.). Hubbard then told Riley that he had already
solicited Wayne Smith for printing business for Craftmaster: I have asked him
and he [p]ut us in contact with the person doing the printing, but each individual
hospital does their own. We are pursuing. (Id.).
Accordingly, Hubbard violated the Ethics Law by soliciting and receiving
things of value from lobbyist Bob Riley.
37

B.

Hubbard Solicited Lobbyist Minda Riley Campbell for Things of

Value.

Hubbard also solicited Rileys daughter and BR&A business partner,

lobbyist Minda Riley Campbell, for assistance with obtaining new clients for the
Auburn Network. Shortly after BR&A was formed on February 9, 2011, Hubbard
proposed to Campbell that he should quit as Speaker and just go to work with
Riley. (AG0593122, attached hereto as Exhibit 71A). Campbell responded and
said: you are where you need to be, Mr. Speaker. BR&A will be there when the
time is right. (Id.). Campbell later discussed Hubbard working for Riley and
proposed: what if dad dropped his lobbyist classification? I could be his lobbyist,
since i [sic] am already registered. BR and A could be a client. Then he could hire
you to build a pr/political machine. Or can we unring the bell? (AG0781036,
attached hereto as Exhibit 71B). Hubbard responded: The BR&A would work
great and is, in fact, what I had thought we were going to do. When he registered
as a lobbyist, it messed that up. I hope he can and will unring the bell, but Rob
seems to think it might be a problem. Im not sure. He should be a strategic
consultant, not a lobbyist. I dont know why he ever registered. (Id.)
Further, Campbell, like Riley, similarly gave Hubbard assistance with his
Auburn Network business. For example, in the summer of 2013, Hubbard attended
the Paris Air Show. Hubbard solicited lobbyist Minda Riley Campbell for
assistance with setting up meetings with prospective clients while in Paris.
38

Campbell agreed to do so and provided the assistance. (See AG0527448, Campbell

email to Hubbard, attached hereto as Exhibit 72) (I have started a list of
appointments for you while in Paris.). Hubbard wrote to Campbell: I will go
wherever you think is best. (Id.). Campbell set up a meeting in Paris for Hubbard
with Mr. Tan Pheng Hock, the President of Singapore Technologies Engineering
Ltd., an international aerospace company. (Id.); (see also AG0527452, attached
hereto as Exhibit 73).
In fact, Campbell actually coordinated and scheduled Hubbards entire 2013
Paris Air Show itinerary, including his transportation. (See AG0525651, Campbell
email to Hubbard, attached hereto as Exhibit 74) (Please find attached the
Speakers schedule for Paris. The car information is being worked out right now.).
Campbell also obtained tickets for Hubbard to attend an exclusive Tea at the
Ritz. (See AG0749674, attached hereto as Exhibit 75). Campbell sent Hubbard
the final schedule with details on June 13, 2013. (AG0742371, attached hereto as
Exhibit 76). Thus, Hubbard violated the Ethics Law by soliciting and receiving
things of value from lobbyist Minda Riley Campbell.
C.

Hubbard Solicited BCA Lobbyist Billy Canary for Things of

Value.

Hubbard also solicited Billy Canary, the chief lobbyist and Executive
Director of the BCA, to assist him with obtaining new clients for the Auburn
Network. On one occasion, Hubbard accompanied Canary to Washington, D.C. to
39

meet with potential new clients. Hubbard summarized the trip in an email to
Brooke as follows: I am going to DC with Billy [Canary] next week to visit some
folks, including FedEx and the U.S. Chamber of Commerce. (AGdoc0222546,
email from Hubbard to Brooke, attached hereto as Exhibit 77). Hubbard later
reported on his meeting with FedEx to Riley and said: Just met with FedEx. They
are spooked about me being an elected official. Dont think they will do anything
with me. At least I made a contact with their top governmental affairs person.
They said they would look for opportunities, but not hopeful. (AG0570048,
attached hereto as Exhibit 78).
Canarys assistance also extended to helping market and sell Hubbards
book, Storming the State House. The D.C. meetings Canary set up for Hubbard
also included meetings intended to be extremely beneficial for the marketing of
Storming the State House. (STSH) (AG0243637-AG0243640, attached hereto
as Exhibit 79). Hubbard further solicited Canary for marketing help by requesting
that Canary seek assistance from political consultant Karl Rove:
Bill: Do you think it would be possible to plant a seed with Karl
[Rove] (probably a little closer to October 2) for him to make mention
of STSH during his remarks at BCA? It would be a very nice plug and
would certainly raise my stature with the folks in the audience for him
to mention me
(AG0243349, attached hereto as Exhibit 80).

40

In addition to those meetings, Canary also arranged a meeting with Rainey

Foster, a partner in a multinational business, Leading Authorities, Inc. (Canary
email to Foster AG0351277, attached hereto as Exhibit 81) (Joining us for that
discussion would be our Speaker Mike Hubbard.). Canary also helped Hubbards
Auburn Network business by setting up meetings with several CEOs from
around the state for the Speaker. (AG0243272, attached hereto as Exhibit 82).
Therefore, Hubbards solicitation and receipt of things of value from BCA lobbyist
Billy Canary violated the Ethics Law.
D.

Hubbard Solicited BCA Principal Will Brooke for Things of

Value.

Hubbard also directly solicited Canarys fellow BCA Board member, Will
Brooke, for the same assistance. (AGdoc0222546, attached hereto as Exhibit 83).
Hubbard emailed his request to Brooke: Please let me know if you have had any
ideas I might explore with companies in Birmingham or elsewhere that might have
a need for a consultant with my skills. We also discussed the possibility of a
corporate board where I might be helpful in opening doors. Brooke later
responded to tell Hubbard that he had acted on Hubbards request and that Brooke
took part in a few discussions in Birmingham, but nothing has surfaced yet. (Id.).
Hubbard later followed up with Brooke on January 26, 2012 and asked: did
you ever run across any company or companies interested in my services? My
employment [with IMG] runs out on March 31. (AGdoc0222027, attached hereto
41

as Exhibit 83A). In that email, Hubbard expressed his frustration that the business
community was very reluctant to work with him: Its ironic that I was the
architect of putting a pro-business legislature in place yet businesses seem to
want to avoid any personal association with me like the plague!. (Id.).
Hubbard later followed up with Brooke on his request for help finding new
clients for the Auburn Network and reminded Brooke that Hubbard had previously
used his public office to help Brooke with a personal matter:
I enjoyed visiting with Maggie [Brooke] at the State House last
week and pledged my support again for the Boys and Girls Clubs. My
goal is to make sure she is never unhappy with me! I have not
pestered you because I know you are extremely busy, but thought Id
check with you one more time regarding any potential business
clients for my company, Auburn Network, Inc. I have signed up
Southeast Alabama Gas to assist them with marketing and economic
development which helps, but my employment with IMG ends at the
end of this month so I am getting very close to hitting the panic
button... It is ironic that my quest to change history and [g]ive
Alabama a pro-business legislature has resulted in issues in my own
personal business life. It is amazing how folks who urged me to be the
leader to overthrow the bad guys in Montgomery now dont want to
talk with me.
(AGdoc0222423, attached hereto as Exhibit 84) (emphasis added).
As discussed above, Hubbard later told Brooke that he was considering
resigning as Speaker due to his financial problems. (See Section VI, supra). Just
over one week before the IMG income would end, Hubbard again expressed to
Brooke his displeasure with the business community and their unwillingness to
work with him:
42

I will make it through this session, try to do as much good as I can,

and make a decision as to what to do. It is amazing, and quite
disappointing, that after the sacrifices Ive made personally and
professionally to finally get Alabama a pro-business legislature, no
one in the business community is willing to work with me
professionally to keep me there. Maybe Im too much of a lightning
rod. I suppose, as they say, no good deed goes unpunished.
(AGdoc0222864, attached hereto as Exhibit 85) (emphasis added). Brooke
responded: No, Mike, thats not it. I think that folks are afraid to mess up, on
either their or your side of the equation. (Id.) (emphasis added).
As shown in detail above, Hubbard violated the Ethics Law by soliciting and
receiving things of value from BCA principal Will Brooke.
*

Hubbards scheme to solicit and receive assistance with obtaining new

clients for the Auburn Network from lobbyists and principals is therefore clear
from the charges in the indictment and the discovery. As shown above, Hubbard
was motivated by his financial problems, including the loss of his employment
with IMG, to solicit lobbyists and principals for things of value (i.e, consulting
contracts for Auburn Network, financial favors, etc.). Hubbards solicitation of
persons with interests before the Alabama Legislature was also directly related to
his service as a public official. Thus, his Motion for More Definite Statement as to
Counts 20-23 is due to be denied.

43

CONCLUSION
For the reasons stated above, the State of Alabama respectfully requests that
this Court enter an Order denying defendant Michael Gregory Hubbards Motion
for More Definite Statement.

Respectfully submitted this 27th day of February 2015.

W. VAN DAVIS
ACTING ATTORNEY GENERAL
/s/ Miles M. Hart
Miles M. Hart
Deputy Attorney General
Chief, Special Prosecutions Division
mhart@ago.state.al.us

OF COUNSEL:
W. Van Davis
Supernumerary District Attorney,
Acting Attorney General
423 23rd St. North
Pell City, AL 35125-1740
vandclaw@centurylink.net
Michael B. Duffy
Deputy Attorney General
mduffy@ago.state.al.us
OFFICE OF THE ATTORNEY GENERAL
STATE OF ALABAMA
501 Washington Avenue
P.O. Box 300152
Montgomery, AL 36130-0152
(334) 242-7300
(334) 242-4890 FAX
44

CERTIFICATE OF SERVICE
I hereby certify that I have, this the 27th day of February 2015,
electronically filed the foregoing using the AlaFile system which will send
notification of such filing to the following registered persons, and that those
persons not registered with the AlaFile system were served a copy of the foregoing
by U. S. mail:
J. Mark White, Esq.
Augustus Dowd, Esq.
William Bowen, Esq.
William Chambers Waller, Esq.
White Arnold & Dowd P.C.
2025 Third Avenue North, Suite 500
Birmingham, AL 35203
Phone: (205) 323-1888
FAX: (205) 323-8907
mwhite@whitearnolddowd.com
adowd@whitearnolddowd.com
wmbowen@whitearnolddowd.com
cwaller@whitearnolddowd.com
R. Lance Bell
Trussell Funderburg Rea & Bell, PC
1905 1st Ave South
Pell City, AL 35125-1611
lance@tfrblaw.com
Phillip E. Adams, Jr.
Adams White Oliver Short & Forbus LLP
205 S 9th Street
Opelika, Alabama 36801
Phone: (334) 745-6466
Fax: (334) 749-2800
padams@adamswhite.com
/s/ Miles M. Hart
Deputy Attorney General

45