Jury continues deliberations in corruption trial of former state senator

Randell Shelton Jr. (left) and Jon Woods
Randell Shelton Jr. (left) and Jon Woods

FAYETTEVILLE — The jury is still out in the corruption trial of former state Sen. Jon Woods.

The five-man, seven-woman jury began deliberations at 4 p.m. Tuesday, but had to recess at 5 p.m. because of unspecified commitments a juror needed to meet. Deliberations resumed at 8:30 a.m. Wednesday. U.S. District Judge Timothy L. Brooks told the jurors they would have all the time they need to decide on the case, which has 15 charges against each of two defendants and two more on Woods alone.

Woods’ indictment was the first in what the U.S. attorney’s office and Brooks have said is a wide-ranging investigation into public corruption in Arkansas and other states. Since Jan. 4, 2017, four current or former legislators have pleaded guilty to corruption involving state General Improvement Fund grants.

Woods and Randell Shelton Jr., of Kemp, Texas, are charged in a kickback scheme involving Ecclesia College in Springdale. Woods is also charged in a similar scheme for AmeriWorks, a Bentonville nonprofit company.

“The government’s investigation into these and related matters is still ongoing, and it extends beyond the individuals and acts that have been charged in this particular case,” Brooks said in a March 2 ruling.

“Among other things, the investigation involved the tracing of legislative acts, the making and approval of GIF grants on a regional level, and the ensuing paper trail of disbursements, receipts and proof that all of the proceeds were used as authorized. This dragnet involved the collection of an enormous number of documents — a number that has been represented to the court as extending into the millions.”

Freedom of Information Act requests by the Northwest Arkansas Democrat-Gazette in January 2017 found at least three of the state’s eight economic development districts, which administered the General Improvement Fund grants, had been subpoenaed by federal investigators. Another development district would not confirm nor deny whether it had.

Since that time, staff for the state Legislature obtained permission to hire outside legal counsel to represent them in dealing with federal investigators who have requested more records relating to the improvement fund grants. The records include state legislators’ working papers.

Known to be overseeing the investigation are: U.S. attorneys for the Eastern District of Pennsylvania, Western District of Missouri, Western District of Arkansas and the Eastern District of Arkansas. Federal agencies involved in at least one of those investigations are the FBI, the IRS, Housing and Urban Development and Health and Human Services.

Woods faces 15 counts of fraud, all relating to either wire or mail transfers of money. Shelton is named in 14 of the fraud charges. Both are charged with one count of conspiracy to commit fraud. Woods is also charged with one count of money laundering in connection with the purchase of a cashier’s check. Woods cooperated with federal investigators from November 2015 through early 2016.

Woods and Shelton face up to 20 years in prison on each of the fraud and conspiracy charges, if convicted. Woods faces an additional 10 years on the money-laundering charge, if convicted. They may also be ordered to forfeit any money or property obtained through their actions, if found guilty.

Read Thursday's Arkansas Democrat-Gazette for full details.

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