Tornado fraud trial adds charges

County judge, contractor accused of making false statements

Ouachita County Judge Mike Hesterly and the Bearden contractor he is accused of conspiring with to defraud the federal government will each face three charges when their trial begins Nov. 4 in federal court in El Dorado.

Hesterly and Harry Clemons Jr. of Bearden pleaded innocent this week to federal charges of bribery, making a false statement to authorities and conspiracy to commit fraud in connection with major disaster benefits after a grand jury issued a superseding indictment Sept. 18.

Both were charged in January with bribery and conspiracy after the U.S.

attorney’soffice said the pair rigged a bid procedure involving a Federal Emergency Management Agency cleanup project in exchange for an agreementof a $5,000 payment to Hesterly’s re-election campaign.

The project involved cleaning up debris from two tornadoes that struck the county in October 2009.

The new false statement charge against each man stems from November 2011 conversations with FBI Special Agent Nick Powe. According to the newest indictment, Powe questionedboth men about allegations of improprieties related to a disaster relief contract - specifically asking Hesterly if he used the contract to solicit a campaign contribution from Clemons.

Both men denied the allegation in a transcript of the conversation, according to the indictment.

Hesterly’s attorney did not return a message Thursday, and a number listed for Hesterly rang unanswered.

Clemons’ attorney, William McLean of El Dorado, said the additional charges came as a surprise to him and his client, but “it didn’t really shock me, either. It’s too soon right now to know what action, if any, to take.”

Hesterly surrendered tofederal authorities Jan. 17. He was initially held in the Union County jail after the U.S. attorney’s office asked that he be kept in custody because of allegations that he made threats against potential witnesses Jeff Davis, Powe and Powe’s family.

Clemons was allowed to remain free on a signature bond.

Hesterly, who has served as Ouachita County judge for 16 years, has since been released from federal custody and has been allowed to remain free on a signature bond with the restrictions that he remain in the custody of his mother, Mamie Hesterly, and that he not have any contact with county judge’s office.

Northwest Arkansas, Pages 14 on 09/27/2013

Upcoming Events