Arkansas Blog: Feds indict: NLR corruption UPDATE

News from the U.S. attorney's office of a major indictment with a tantalizing indication of more to come in the area of public corruption in North Little Rock.

George Wylie Thompson, 64, of Cabot, has been indicted for possession, as a felon, of a huge arsenal of firearms, silencers and ammunition; for running a bookmaking operation; for drug dealing; for conspiring to commit marriage fraud, and for conspiring to commit wire fraud by working with an unnamed North Little Rock alderman on an alleged kickback scheme on city concrete and landscaping projects.

Thompson was arrested in Bangkok and made an initial court appearance in Los Angeles last week. The indictment was returned in October and kept sealed until his arrest.

The indictment, after a lengthy description of conversations between an unnamed city vendor and the alderman, stops short of saying whether any deals actually were completed. Direct quotes in these conversations suggest that somebody was wearing a wire. The indictment said the vendor and the alderman were working on the schemes with Thompson to pay off debts they owed him.

From U.S. Attorney Jane Duke's news release:

"Not only do illegal gambling operations threaten legitimate business, they can also open the door to involvement in other crimes," remarked Special Agent in Charge Thomas J.Browne. "The allegations of public corruption contained in this indictment are among the most serious, and fall within the FBI's number one criminal investigative priority."

Duke echoed Browne’s sentiments and noted that, “ the investigation is on-going and further charges are anticipated in connection with the public corruption piece of the investigation.”

She refused to elaborate on the indictment or provide more information except to say through a spokesman, "Stay tuned."

I'm going to give you the official documents and then get on the phone to try to piece together more.

Duke's news release is here.

Here's the main indictment against Thompson, which includes details of the major charges.

Here's a separate cocaine indictment.

UPDATE: Ward Three Alderman Cary Gaines confirms in a phone call to me that he's the person of interest in the count of the indictment alleging a kickback scheme with a developer and an alderman. He said he has an attorney, Chuck Banks, and he doesn't know if he'll be indicted. He said he'd like to talk further, but he's fearful of comments being taken out of context by federal investigators. He said no illicit deals alleged in the indictment took place. He declined for the time being to discuss his relationship with Thompson, though he said he'd be happy to in the future. He said he planned to "go through the system" and hoped for a good outcome. He commented: "It's so scary."

Note: The conspiracy to commit wire fraud count says Thompson dealt with a long-term North Little Rock alderman from Ward 3, first elected in 1992, who was "re-elected" in 2007. Ward 3 Alderman Sam Baggett was first elected in 2008. The other Ward 3 alderman, Cary Gaines, was not "re-elected" in 2007. His last election was 2006. So I draw no conclusions from this indictment narrative. I did leave messages with Gaines on his home and cell phone to ask him if he could clarify.

Comments

Drill, baby, Drill.

Posted by: eLwood | November 16, 2009 05:42 PM

Thomas R. "Boo" McDonald won the 1992 Ward 3 election. The other wards in that election were Clark B. McGlothin (1) and L.N. Spinelli (4). Link is to Pulaski County's results from that year.

Posted by: anoncow | November 16, 2009 07:21 PM

That was some mighty interesting reading. There are few gun shops in this area that well stocked.
The man like his .22's. So, being a newcomer to the Rock, will this being something that affects the Mayor in NLR? He seems to like city projects with no bids and lending out city resources to projects of his liking.

Posted by: Scottie | November 16, 2009 08:23 PM

What's with all the .22's? Is this the gun of choice for common criminals?

Posted by: GPR | November 16, 2009 08:28 PM

.22's are very deadly, especially at close range. He also had quite a few .17 HMR rounds and weapons, which is even more deadly than a .22 caliber because the round 'explodes' inside anything it penetrates.

Maybe he was just an avid squirrel hunter. I can see where the silencers would be useful if you needed to be stealthy in the forest on a squirrel hunt.

Posted by: Scottie | November 16, 2009 08:59 PM

This isnt Cary's first brush with the wrong side of the law, is it? Was it him or his spouse that pilfered some money from a sheriffs organization which is why he had a vacation from being an alder boy? I guess it was his spouse cause if he had been convicted of something I reckon he wouldnt be able to run for high office.

Posted by: Sanford | November 16, 2009 09:09 PM

Scottie:

Every gun shop has more guns than that.

Posted by: blackberry | November 16, 2009 09:15 PM

And .22s and .17s are particularly lethal to anything over 15-20lbs...

Posted by: blackberry | November 16, 2009 09:17 PM

Wonder if he is connected with Fort Thompson gun shop in Rose City?

Posted by: CammackLife | November 16, 2009 09:46 PM

Not to be technical, but Fort Thompson hasn't been in Rose City for a couple of years now.

Posted by: cozmosis | November 16, 2009 09:58 PM

I am curious though, the endictment says "Felon in Possession"...are they refering to Thompson or one of his partners? And if he is a felon, was he previously convicted of othe crimes? Can you be on a city government and be a felon?

Posted by: Scottie | November 16, 2009 10:10 PM

Scottie, Thompson is the guy charged with felon in possession -- not Alderman Gaines.

Posted by: cozmosis | November 16, 2009 10:15 PM

>What's with all the .22's? Is this the gun of choice for common criminals?
Posted by: GPR<<

They're usu easier to sell and more plentiful. The mob used to use them for "hits" when it
was possible to get off a shot within a short distance. The bullets are not easy to trace.
Ammo is relatively cheap and easy to find.

Posted by: eLwood | November 16, 2009 11:42 PM

What will be revealing, if it's ever disclosed, is tracing the serial #'s from all those weapons.
Could turn up some real violations and bring mucho heat on some licensed dealers.

Posted by: eLwood | November 16, 2009 11:48 PM

God, I LOVE this shiz! Reminds me of the Lee Orsini "Widow's Web" case years ago, which Mary Steenburgen didn't have the sense to option THEN either.

Ted? It's up to you.

Posted by: NormaBates | November 17, 2009 02:05 AM