Kelli Williams: Whistleblower in $1.1-billion lawsuit over Mississippi power plant.
The former speaker of the Mississippi House of Representatives has joined a subsidiary of the Birmingham-based Balch & Bingham law firm -- in what seems to be a peculiar move, according to a post today at banbalch.com.
What makes it seem peculiar? For one, it comes as two former Balch attorneys reside in federal prison. Second, it comes three months after public disclosure that Balch’s top client, the sprawling Southern Company utility, had been sued for fraud in Mississippi,
So what is going on? K.B. Forbes, publisher of the Ban Balch blog and CEO of its parent organization, the CDLU public charity and advocacy group, tries to sort things out under the headline "Dumb Career Move! Former Mississippi Speaker Joins Balch Firm with Two Former Attorneys Currently Sitting in Federal Prison." Forbes writes:
A former speaker, a child predator, and a money launderer enter a bar near the Pearl River…
The former Speaker of the Mississippi House of Representatives has made the dumbest career move.
Philip Gunn has joined Balch Policy Advisors, LLC, a subsidiary of embattled law firm Balch & Bingham, according to news reports today.
Gunn joins the firm of the former esteemed Balch partner Joel I. Gilbert, federal inmate 35504-001, who was convicted in 2018 of bribery and money laundering among other crimes in the North Birmingham Bribery Scandal. He also joins the firm of the former eight-year Balch attorney Chase T. Espy, federal inmate 04104-510, who was convicted for possession of kiddie porn.
Forbes then turns his attention to the huge money judgment that could be coming down against Balch's No. 1 client, Southern Company:
The move comes three months after the public disclosure that Balch’s top client, Southern Company, had been sued for fraud in Mississippi in regards to the Kemper Plant debacle. The false-claims suit was unsealed five years after it was filed and seeks up to $1.1 billion in damages. The suit alleges that Southern Company and its subsidiary, Mississippi Power, repeatedly defrauded the U.S. Department of Energy.
Note that the law firm has set up a subsidiary to funnel money to the former Speaker. Why is that? To reduce any chance of transparency? To hide uncomfortable truths from clients? To live off more government pork?
Does Gunn intend to take Balch in new, more ethical, direction? Or should the public look for a more-of-the-same approach? Forbes writes:
Balch appears to be seeking more contractual cronyism.
As we reported last August:
In Mississippi, Balch, has obtained 76 government contracts worth more than $43 million since 2014, according to a state-transparency website.
However those financial numbers have plummeted, too.
In 2020, Balch obtained more than $12.2 million in Mississippi state contracts that included $2.1 million in consulting fees related to the rental-assistance debacle.
In 2021, Balch was given $5.7 million in state-government contracts in Mississippi when The Washington Post investigative report was published, rocking the Magnolia State.
Last year, in 2022, their reputation damaged while in the spotlight, Balch was only able to obtain a mere $1.6 million in Mississippi state contracts.
That equals less that a third of what the firm earned the year before and a mere 13 percent of the 2020 contract numbers.
Contractual cronyism appears to be coming to a chilling close.
Will Gunn turn the tide for Balch and expand contractual cronyism? Will Gunn and others cash in I.O.U.’s and bring in clients?
Time to pull out the magnifying glasses and alert the watchdogs.
A former speaker, a child predator, and a money launderer enter a bar near the Pearl River…