Sentence handed down in bribe case

Ex-county exec given 33 months

A federal judge in El Dorado on Thursday sentenced Mike Hesterly, former county judge of Ouachita County, to 33 months in prison and one year of supervised release for accepting a bribe.

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A federal grand jury indicted Hesterly in January 2013 after investigators accused him of rigging the bidding process on a Federal Emergency Management Agency storm-cleanup contract in return for a 2010 campaign contribution.

In June, Hesterly, 50, pleaded guilty to one count of bribery concerning a program receiving federal funds.

His co-defendant, Bearden contractor Harry Clemons Jr., 41, pleaded guilty to one count of conspiracy to commit fraud in connection with federal disaster benefits and was sentenced to two years of probation.

Hesterly appeared Thursday before U.S. District Judge Susan Hickey, who also presided over Clemons' hearing and sentencing proceedings.

Hesterly's mother, Mamie Hesterly, said Thursday afternoon by telephone that her son was at her home but did not want to make a statement about the case.

A message left for Hesterly's attorney, Jamie Pratt of Camden, wasn't returned Thursday. Federal officials didn't say Thursday when or where Hesterly will begin serving his sentence.

In a statement released after Hesterly's sentencing, U.S. Attorney Conner Eldridge said the amount of prison time the former county administrator received sends "a strong message ... regarding our office's continuing commitment to aggressively pursue individuals who violate the public's trust through their own greed and complete abdication of the duties they were sworn to uphold."

"This type of conduct by a public official offends taxpayers and citizens as well as all of the other public officials who are truly dedicated to their service," Eldridge said.

David Resch, special agent in charge of the FBI's Little Rock office, said Hesterly breached the public's trust through his actions.

"Today's sentencing demonstrates the United States Attorney's Office and the FBI are committed to pursuing those who choose to use their official position for personal gain," Resch said in the same news release.

"Mr. Hesterly held a position of trust and responsibility to act appropriately in order to maintain a fair and competitive bidding process."

According to documents filed in court, beginning in March 2010, Hesterly proposed awarding Clemons a FEMA-funded contract to clean up storm debris in Ouachita County without proper competitive bidding in exchange for a payment to Hesterly for his re-election campaign.

The debris was the product of two tornadoes that struck the county in October 2009. In furtherance of this conspiracy, court documents said, Clemons arranged for two other bidders to fax inflated bids to Hesterly.

Clemons then met with Hesterly at his office and submitted a bid on behalf of himself and another company for the contract in the amount of $120,730, a total amount below the inflated bids, court documents said.

Hesterly accepted Clemons' bid, and on April 8, 2010, applied for funds from FEMA to help Ouachita County pay for the contract. Hesterly represented to FEMA that Clemons was the lowest bidder among the three bids he had received, court documents showed.

After FEMA approved and fulfilled the request, Hesterly requested that the contract price be increased by $4,000, saying the increase was necessary to cover higher costs for Clemons' disposal of the debris, according to court documents. FEMA also approved that request.

Federal regulations require that such contracts be awarded through a sealed bidding process and in compliance with all applicable state law, court documents said. While state law requires the bid to be advertised for 10 days, the bid in this case was advertised for only one day, according to the documents.

In August 2010, Clemons submitted documentation to Hesterly stating that all work on the contract had been completed and requesting a payment of $69,865 for Clemons Construction, the documents showed.

That same month, Hesterly certified to the state and FEMA that the work set forth in the contract had been completed, according to court documents. The documents showed that on Oct. 13, 2010, Hesterly signed an order allowing Clemons' claim for payment to go through and, later that month, Clemons received a check from Ouachita County for $69,865.

Clemons then paid Hesterly the $4,000 that Hesterly had requested from FEMA for the added cost of debris disposal, according to court documents.

Hesterly resigned as county judge in March, and the Ouachita County Quorum Court appointed Amy Olvey as interim county judge until the end of the year. Robert "Robbie" McAdoo was elected Ouachita County judge in June and will take office Jan. 1.

State Desk on 12/19/2014

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