In county judge’s case, U.S. says threats made

EL DORADO — Ouachita County Judge Mike Hesterly threatened an FBI agent, U.S. attorneys said at Hesterly’s Friday arraignment on federal charges of conspiracy to commit fraud and bribery.

Assistant U.S. Attorney Kenny Elser requested that Hesterly be detained until his March trial, on the basis of evidence of “threats made to witnesses and FBI agent [Nick] Powe and his family,” Elser said.

Hesterly, 47, shook his head and looked down when Elser mentioned the purported threats at the 10 a.m. arraignment at the El Dorado federal courthouse, where Hesterly and Harry Clemons Jr., 39, appeared before U.S. District Judge Barry Bryant.

They were each charged with one count of conspiracy to defraud an agency of the United States and one count of bribery concerning a program receiving federal funds. Both pleaded innocent.

Hesterly is accused of awarding Clemons — owner of Bearden-based Clemons Construction — a storm-cleanup contract with Federal Emergency Management Agency funds in exchange for a donation to Hesterly’s 2010 campaign, according to the indictment.

Hesterly denied the threat allegations. His attorney, James Pratt Jr. of Camden, requested Friday that Hesterly’s bail hearing be postponed because he had just received the specifics of the threat allegations, he said.

Hesterly has previously been accused of making threats.

In 2008, his then-estranged wife, Leigh Hesterly, obtained a temporary restraining order against him. That September, she accused him of threatening her after a dispute about their two children, according to a Camden police report. He denied the allegation, the report said.

Another Camden police report details a July 2007 dispute in which Leigh Hesterly accused Mike Hesterly of slapping her during an argument about their pending divorce. Mike Hesterly’s statement to police said his wife had pushed him down, the report said.

No arrests were made either time, Camden police Capt. Evin Zeek said.

Bryant is to preside over Hesterly’s bail hearing at 2 p.m. Tuesday at the federal courthouse in Hot Springs. Hesterly will be kept in custody of the U.S. Marshals Service until the hearing.

Neither U.S. Attorney Conner Eldridge nor FBI Supervisory Special Agent Kim Brunell would comment on the nature of the threats Hesterly is accused of making against Powe and witnesses.

“I’ll let those details come out at the bond hearing,” Brunell said Friday by phone. “I don’t want to appear to the court that I’m trying to influence the results of the case at all.”

Clemons, represented by attorney William McLean of El Dorado, was released on a $5,000 appearance bond — meaning he would have to pay the money if he fails to appear at trial. He also was ordered not to have contact with any victims or witnesses related to the case, specifically Jeff Davis — owner of Davis Dozers — Davis’ family or Randy Powell.

U.S. attorneys wouldn’t comment on Powell’s involvement in the case. A number listed for Davis Dozers in Camden has been disconnected.

The trial for Clemons and Hesterly is scheduled for 9 a.m. March 13 before U.S. District Judge Susan Hickey in El Dorado.

The bid Clemons submitted to Hesterly in 2010 for FEMA funds to clean up debris left on county roads after two tornadoes in 2009 was on behalf of Clemons’ company and Davis Dozers, according to the indictment.

“Clemons arranged for two other bidders to submit intentionally inflated bids to Hesterly through fax,” according to a statement released by Eldridge’s office Thursday.

Hesterly accepted Clemons’ $120,730 bid, which was less than the others submitted, and applied for the funds from FEMA on April 8, 2010. In October 2010, Clemons received a check for $69,865 from Ouachita County for his part of the work, the indictment said.

Clemons agreed to give a campaign contribution to Hesterly in exchange for the contract, according to the indictment. The indictment doesn’t say whether or how much Clemons actually donated to the campaign.

Hesterly’s 2010 campaign contribution and expenditure report doesn’t list any contribution from Clemons. The report shows seven contributions totaling $1,350 and $150 worth of contributions less than $50, which don’t have to be itemized.

Contributions of more than $50 came from Charles Sponer of Camden Wholesale, lawyer Robert Jeffrey, Jerry Milner, Bill Glover, Mike Suttle, Jim Martin and Hesterly.

As Hesterly was escorted out of the courtroom Friday in ankle cuffs and the same khakis and red plaid shirt he was wearing when he surrendered Thursday, he briefly touched the elbow of his mother, who had tears in her eyes and was consoled by a few people after the hearing adjourned.

Two U.S. marshals escorted Hesterly, who also was put in handcuffs, to a black Impala shortly afterward. He will be kept at the Union County jail until his bail hearing Tuesday.

Hesterly’s administrative assistant, Amy Olvey, said she could not comment on who is assuming the duties of the county judge while he is away from the office.

In Hesterly’s absence, Circuit Judge Hamilton Singleton may be able to approve bill payments and payroll matters, Ouachita County Clerk Britt Williford said Friday.

“We are covered until Tuesday evening,” Williford said. “If [forms aren’t signed] by Tuesday, bills could start piling up, which is a concern, and it definitely could affect payroll.”

Phone calls to Singleton’s office went unanswered Friday, and there was no voice-mail option.

Hesterly’s signature is usually required to pay bills and employees. But circuit courts have “superintending control over the judgments, final orders and proceedings of county courts and county boards or officers,” Arkansas Code Annotated 16-13-203 states.

Chris Villines, executive director of the Arkansas Association of Counties, confirmed late Friday that a circuit judge could step in to ensure that official business is handled for a county judge who is unavailable.

“It’s going to be a little bit messed up for a little while, but it does not prevent the county from functioning — the circuit judge is there to help step in and make sure of that,” Villines said.

If Hesterly is convicted of a felony or chooses to resign, his position would be considered vacated, according to the association’s website. The Ouachita County Quorum Court would then take applications and appoint a new county judge.