Gov. Edwards’ Retrial Opens Today With Reduced Cast

NEW ORLEANS —  The spring rerun of Louisiana Gov. Edwin W. Edwards’ fraud and racketeering trial involving a $10-million hospital venture begins today with a reduced cast and changes that might speed things up.

This time, Edwards has a new lawyer, U.S. District Judge Marcel Livaudais has granted U.S. Atty. John Volz’s motion to sequester the new jury throughout what could be a two-month trial, and everyone will work longer hours.

The first trial lasted 14 weeks and ended Dec. 18 with a hung jury.

Edwards called it a victory because only one or two of the 12 jurors voted to convict him on any count. Nevertheless, Volz decided to go ahead with a retrial.

Basic Allegation Is Same

The number of charges have been reduced going into the retrial but the basic allegation remains the same: that Edwards, his brother, Marion, and three others used their political influence to gain state certification for hospital and nursing home construction projects in which they held interests.

Edwards, a third-term Democrat, first served as governor from 1972 to 1980. He acknowledged that before he took office again in March, 1984, that he made almost $2 million on the hospital deals. But he insisted the deals were legal and that he broke ties with the venture when he became governor.

There will be fewer defendants in this trial. Eight people were tried the first time, but Livaudais declared three of them innocent before the case went to the jury so there are only five defendants this time.

This trial is expected to be over sooner than the first one. Livaudais plans to work six days a week instead of four. And prosecutors have said they are calling fewer than the 40 witnesses they called last time.

Familiar Character Absent

But Edwards is bound to miss the opening weeks of the new legislative session, which starts April 21.

A familiar character is absent for this trial. The flamboyant James Neal, a Tennessee lawyer who represented Edwards in the first trial, has withdrawn because of a major trial in California. Edwards’ new lawyer is Michael Fawer, a New York native who was on the defense team in the first trial representing Phillip Brooks, one of those declared innocent.

Each defendant faces one count of violating the federal Racketeer Influenced and Corrupt Organizations act. The governor, lawyer James Wyllie Jr. and Baton Rouge businessman Ronald Falgout each face an additional 45 counts of mail and wire fraud. Marion Edwards, an insurance agent, faces eight mail and wire fraud counts. Shreveport businessman Gus Mijalis is charged with three mail fraud counts.

Each racketeer act count carries a maximum penalty of 20 years in prison, a $25,000 fine and forfeiture of all property acquired in the criminal enterprise. Each mail and wire fraud count carries a maximum punishment of five years in prison and a $1,000 fine.