FAYETTEVILLE — The defense for a consultant accused in a kickback scheme involving two former Arkansas legislators finished its case Monday morning.
Randell Shelton Jr. is charged with passing along kickbacks from Ecclesia college in return for $550,000 in state grants directed to the school by two lawmakers.
He didn’t take the stand in his defense. The prosecution has two rebuttal witnesses it plans to call to the stand Monday, and the judge will then send the jury home.
Closing arguments will take place Tuesday.
Assistant U.S. Attorney Kennth Elser described Shelton’s firm, Paradigm Strategic Consulting, in opening statements April 10 as a “bogus” company created to pass along the kickbacks.
According to Monday's testimony, Shelton lived rent-free in the basement apartment of a friend’s parents while his consulting business received $115,000 in payments from Ecclesia College.
Dr. George Schroeder, a Little Rock ophthalmologist and co-owner of a weight loss clinic there, said he allowed Shelton to move into a basement apartment at his home near Bigelow in the late autumn of 2013.
Shelton is a friend of his son, Daniel, and needed a place to live, Schroeder testified. The doctor also employed Shelton to do marketing for the weight loss clinic, New Creations MedSpa.
Shelton’s consulting company received a $50,000 check from Ecclesia on Sept. 27, 2013, Assistant U.S. Attorney Aaron Jennen reminded the jury in cross-examination.
“Do you think someone who had just been paid $50,000 ought to be able to find a place to live?” Jennen asked Schroeder. Schroeder replied “Yes.” Jennen went on to show another $65,000 in checks issued to Paradigm from Ecclesia before Shelton moved out of the basement apartment in early June 2014.
But Shelton defense attorney Chad Atwell asked if showing checks a business received without showing expenses and other records gives a clear picture of his income from either his ophthalmology clinic or the weight loss business. No it would not, Schroeder replied.
His client’s defense is based on the contention the government’s investigation was inadequate, Atwell told the judge Friday during a conference away from the jury.
Shelton’s defense Monday called character witnesses such as his pastor, Robert Parry, and a longtime friend and former business associate, David Glosup. Each attested to Shelton’s honesty and business acumen.
Shelton is on trial along with former state Sen. Jon Woods, R-Springdale. The two were was indicted in March 2017, accused of a kickback scheme involving state General Improvement Fund grants issued in 2013 and 2014. An alleged co-conspirator, Oren Paris III, former president of Ecclesia College in Springdale, was indicted with Woods.
Paris pleaded guilty April 4 to one count of conspiracy.
Paris resigned as Ecclesia’s president and from the private, Christian college’s board before his plea. His sentence is pending. Paris disguised the kickbacks as consulting fees paid to Paradigm Strategic Consulting, according to the indictment. Shelton then passed the money along to Woods and former state Rep. Micah Neal of Springdale, the government contends.
Neal pleaded guilty Jan. 4, 2017, for his role in the scheme and was the government’s first witness in the case. His sentence is also pending.
The trial of Woods and Shelton began April 9 in federal court in Fayetteville and is expected to end this week.
Read Tuesday's Arkansas Democrat-Gazette for full details.
