United Toll's Jim Allen said extorted by Alabama governor

Don Siegelman governor of Alabama 1999-2003 Emerald Mountain toll plaza Alabama River Parkway Bridge Black Warrior River Bridge Tuscaloosa Jim Allen, president UTS

A 30-count US indictment of former Alabama Governor Don Siegelman on charges of racketeering says he extorted money from United Toll System (UTS) president Jim Allen, among others. Siegelman is alleged to have threatened to harm the business of Allen unless he gave him $100k.

The Mobile Register newspaper reports the indictment of the governor, saying Allen gave him $40k. Then it adds: "Subsequently, the state spent millions of dollars on highway projects that helped Allen's toll bridge business."

Local report appears incorrect in citing UTS involvement

This newspaper account seems to be incorrect on that last point.

Allen who says he can't talk publicly yet, was, on our reading of the materials, extorted only in relation to a minority interest he had in a contracting firm called RainLine, not the toll operations.

UTS first toll operation in the state, the small Emerald River Expressway so-called, really a small bridge, opened in 1994. The two other bridges, quite large 2x2 lane affairs opened in 1998 - before Siegelman became governor in early 1999.

The way any money was given to Siegelman may be important. If the contribution was made to a political action committee (PAC) and was publicly reported that is very different from a payment made surreptitiously.

Allen is not charged with any wrongdoing.

Excerpts of indictments we have read make reference to threats against the business of RainLine Corp, described as a highway striping company in which Allen had a minority interest.

Major shareholder of RainLine was Forrest 'Mac' Mercato.

Siegelman is alleged to have demanded $250k from Mercato in return for a promise that the company would get the striping contracts on state highways. RainLine striping was heavily used on highways during Siegelman's term. Under the current administration of Bob Riley its use has been discontinued.

The indictment lists transfers of money from highway contractors to RainLine. Siegelman's transport sec Mack Roberts is accused of playing a central role in the overall corrupt scheme by helping Siegelman get money from hopeful DOT contractors and then using his power at the DOT to steer state business to people the governor had extorted from.

One of the counts mentions Jim Allen as playing a role in approving Siegelman's choice of Mack Roberts as director of Alabama DOT.

The racketeering operation by top government officials went from election year 1998 through 2003 when Siegelman's governorship ended. The alleged extortions by Siegelman and aides also involved HealthSouth and Waste Management.

Lawyers for those charged say the charges are unfounded.

Gov, sec transp, aide accused of "criminal enterprise"

The US Attorney's Office for Middle Alabama issued a press release this afternoon charging that Governor Don Siegelman (Dem), his Transportation Secretary Mack Roberts, the governor's chief of staff Paul Hamrick and others in government "established a criminal enterprise in which official actions were exchanged for bribes."

Siegelman is charged on 29 counts, Roberts 16 and Hamrick with 8. Also indicted is ousted HealthSouth chair Richard Scrushy - 3 counts.

Alleged go-between in many cases was Clayton 'Lanny' Young a landfill operator and "political consultant" who appears to have cooperated with the Feds in the run-up to the indictments.

Mentions of Allen

Excerpts of the indictments mentioning UTS president Jim Allen include the following:

"(Siegelman) would and did demand $100,000 to which he was not entitled from Jimmy Lynn Allen.

(Siegelman) would and did accept $40,000 to which he was not entitled from (Allen).

(Siegelman) and (Allen) would and did make (Sec Transp) Gary Mack Roberts aware of the scheme.

(Roberts) would and did monitor election polls prior to the 1998 general election in Alabama to advise (Allen) on the likelihood of (Siegelman) becoming Governor of the State of Alabama.

(Roberts) would and did accept the position of Director of ALDOT from (Siegelman) with (Allen)'s approval.

(Roberts) would and did use official action and official influence as the Director of ALDOT to facilitate (Allen)'s business interests involving ALDOT, including (Allen)'s investment of approximately $20 million in certain bridges affected by Alabama road construction contracts, and ALDOT's specifications of Rainline for use in Alabama road construction contracts.

(Siegelman) would and did demonstrate to (Allen) that (Siegelman) was aware of benefits to (Allen)'s business interests in Rainline from ALDOT actions under the Directorship of (Roberts).

UTS best known for toll systems work in Miami-Dade and Central Texas

UTS is now best known for its toll systems work in Florida and Texas but the company began in the 1990s by building and operating three toll bridges in Alabama, two in the Montgomery area and one in Tuscaloosa. The bridges were fully financed by UTS and are owned in perpetuity by the privately held company with no governmental controls over toll rates. But local and in one case the state government contracted to build and maintain road connections to the bridges, Allen told us at the time.

All those arrangements appear to have been in place before Siegelman ran for governor.

UTS three toll bridges are central to roadways named Emerald Mountain Expressway, Alabama River Parkway and Black Warrior Parkway.

Emerald River Parkway is a 2-lane bridge 116m (380ft) long in the northern part of Montgomery. It opened in 1994.

The Alabama River Parkway connects Montgomery to communities in the northwest of the metro area and is 20km (12mi) of mostly 2x2 lane road with a bridge of 4-lanes 328m (1,057ft) long over the Alabama River, and opened in Apr 1998.

The Black Warrior Parkway is a spur off I-59 and provides connections to the airport and industrial areas of the western portion of Tuscaloosa. It is 12km (7.5mi) of 2x2 lanes road with a bridge of about 300m (1,000ft). It opened Sept 1998. see www.unitedtoll.com TOLLROADSnews 2005-10-27