LITTLE ROCK — A detention hearing for a defendant in a federal public corruption and drug-trafficking case included testimony Wednesday about illegal gambling machines at a business tied to the charges.
At Michael Webb’s hearing in U.S. District Court in Little Rock on Wednesday, authorities also played a recording of a wiretapped phone conversation in which he said his father had been paying to keep him out of jail.
On Wednesday, U.S. Magistrate Judge Joe Volpe decided against bail for Webb.
Webb is one of 71 people indicted this month over allegations they participated in a drug-trafficking operation spanning three states.
During the hearing, an Internal Revenue Service agent accused Webb’s father, Wayne, of running an illegal gambling-machine operation not only at his restaurant/nightclub, The Queen of Clubs, but also at AC Customs — which authorities have said is the center of the drug-trafficking ring.
AC Customs, which was listed online as a car-painting shop, served as a storage unit and transaction center where large amounts of illegal drugs and money changed hands, FBI agents have said.
The shop’s owner, Leon Edwards, is accused in a federal indictment of being one of the biggest drug dealers in the Helena-West Helena area. So is Sedrick Trice, whose mother co-owned AC Cus- toms with Edwards.
Michael Webb, on the other hand, receives only a minor mention in the lengthy Trice-Edwards indictment that was part of the investigation authorities dubbed Operation Delta Blues. Between 1999-2007, seven criminal cases against Michael Webb — which included allegations of drug possession, battery, kidnapping and assault — were dropped, records show.
Each of these cases was nolle prossed, assistant U.S. attorney Julie Peters noted. This legal term, formally known as “nolle prosequi,” is a declaration by prosecutors that they will not pursue a case. At Wednesday’s federal court hearing, investigators and Peters pointed to the elder Webb when they played a recording of a wiretapped phone conversation in which Michael Webb said, “My daddy’s paid over a quarter million dollars to keep me out of jail.”
In another recorded phone call, this one to his girlfriend, Michael Webb referred to how his father managed to get rid of a criminal case involving his sister, who was arrested in 2008 on drug and gun charges.
Webb’s defense attorney, Arkie Byrd, asked FBI agent Ward Seale if he knew for certain that money changed hands to keep Michael Webb and other family members out of court.
Seale said he based his findings on the recorded calls and a report from the National Crime Information Center, which documents arrests, charges and the disposition of criminal cases.
When asked afterward whether Wayne Webb has been charged or indicted, Peters said she couldn’t comment.
In earlier testimony, Michael Webb’s mother and aunt had pleaded for his release, saying they would supervise him until his case goes to trial.
Webb’s mother, Jenny, said her son has three young children with his girlfriend, Amy Hart. She described him as an outstanding father and denied having any detailed knowledge of his criminal record.
Webb’s aunt’s testimony mirrored his mother’s.
A Helena-West Helena teacher also took the stand, praising Michael Webb and Amy Hart’s parenting.
Hart is named in the same indictment as Michael Webb but has been released on bond.
U.S. prosecutors called IRS special agent Dan Elliott to the stand to support their position that Michael Webb shouldn’t be allowed to return to his parents’ home.
Elliott testified that he found 11 illegal video-game machines at Wayne Webb’s nightclub.
He also uncovered eight additional machines at AC Customs, along with a sawedoff shotgun, which Wayne Webb said belonged to him, Elliott said.
He said his investigation revealed that Wayne Webb installed the machines for Edwards and that anytime Edwards had problems with the machines, he called Wayne Webb.
Wayne Webb told Elliott that he thought his gambling operation was legal, but employees disputed this, saying Webb had told them to lie about how patrons were paid, Elliott said.
Typically, gamblers took their tickets to a bartender, who paid out $5 in cash per ticket, Elliott said. But Webb told his workers to say that the nightclub compensated patrons with food or drinks, he added.
In a recorded wiretapped phone conversation, Wayne Webb explained to Edwards that if Edwards took in $1,000 tickets, he paid out $5,000, Elliott said.
Also at Wednesday’s hearing, U.S. prosecutors played recordings in which they said Michael Webb arranged drug deals and discussed beating up or killing people.
Children can be heard in the background on most of the calls.
In denying Webb’s release, Volpe said that, based on testimony from both sides, there appeared to be “two different Webbs.”
While testimony from Michael Webb’s aunt and the teacher was convincing, the recordings offered “an opportunity to look at the real Mr. Webb,” Volpe said, adding that he was disturbed to hear the children’s voices in the background.
The problem, Volpe told Michael Webb, is that “I’ve got to release both parts of you.”
As for the allegations of payoffs made by Michael Webb’s father, Volpe said he’s heard that cases are often dropped in Phillips County.
“I don’t quite know what to make of that,” he said. “But it is what it is.”’
He later wondered: “Are we talking about corruption or the good pursuit of a good defense?”
After the hearing, as Michael Webb’s mother sobbed outside the courtroom, Wayne Webb was asked to comment on the IRS and FBI agents’ allegations.
“I don’t really feel like there have been any allegations yet,” he said, just before the family’s attorney steered him away.
Arkansas, Pages 9 on 10/27/2011