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Unease Spreads in Atlanta as a City Contracting Scandal Brews Unease Spreads in Atlanta as a City Contracting Scandal Brews
(about 17 hours later)
ATLANTA — The brick, adorned with a threatening message, crashed through the window of a prominent contractor’s dining room here in September 2015, apparently sometime between dusk and dawn. For some time, news of the incident failed to reverberate much beyond the home itself. ATLANTA — The brick, marked with a threatening message, crashed through the window of a prominent contractor’s dining room here in September 2015, apparently sometime between dusk and dawn. For some time, news of the incident failed to reverberate much beyond the home itself.
The same went for the dead rodents that had been simultaneously placed on the doorstep of the contractor, Elvin R. Mitchell Jr., and the message: “ER, keep your mouth shut!!! Shut up.”The same went for the dead rodents that had been simultaneously placed on the doorstep of the contractor, Elvin R. Mitchell Jr., and the message: “ER, keep your mouth shut!!! Shut up.”
But in recent weeks, the brick, the rodents and the threat have become troubling symbols of a widening federal bribery and corruption investigation revolving around the granting of city contracts. The inquiry has already resulted in Mr. Mitchell and a second contractor pleading guilty to federal bribery charges, and it is spreading unease through the civic culture of Atlanta. Municipal contracting here has served a historically important role in the effort to spread wealth to minority businesses, but it has also, at times, been a source of explosive scandal. But in recent weeks, the brick, the rodents and the threat have become troubling symbols of a widening federal bribery and corruption investigation revolving around the granting of city contracts. The inquiry has already resulted in Mr. Mitchell’s and a second contractor’s guilty pleas to federal bribery charges, and it is spreading unease through the civic culture of Atlanta. Municipal contracting here has served a historically important role in the effort to spread wealth to minority businesses, but it has also, at times, been a source of explosive scandal.
None of the evidence has implicated the city’s term-limited Democratic mayor, Kasim Reed, one of the South’s most prominent African-American politicians. But the situation has prompted Mr. Reed to defend his legacy, and to make a forceful, and disarmingly personal, proclamation of innocence. On Tuesday, more tremors rippled through City Hall as Jenna Garland, a spokeswoman for Mayor Kasim Reed, said in an email that city’s chief procurement officer, Adam Smith, had “been relieved of his duties effective immediately.” Federal investigators also removed some items from Mr. Smith’s office on Tuesday. Justice Department representatives declined to comment on the matter.
“I have never taken a bribe,” Mr. Reed, 47, said at a recent news conference at City Hall, where he made public 406 boxes of documents that he said federal investigators had demanded from the city. Mr. Reed, who took office in 2010, added: “Day in and day out I have poured myself into this job. I wanted to be mayor of Atlanta since I was 13. And you think that I would throw my life away for some short-term gratification?” None of the evidence has implicated Mr. Reed, the city’s term-limited Democratic mayor and one of the South’s most prominent African-American politicians. But the situation has prompted Mr. Reed to forcefully defend himself — in part because an individual has surfaced in connection with the federal investigation who worked on Mr. Reed’s 2009 election campaign and later at City Hall; and in part because of the memory of similar scandals that have rocked the city in the past.
At a Feb. 9 news conference, Mr. Reed, 47, made a forceful, and disarmingly personal, proclamation of innocence.
“I have never taken a bribe,” Mr. Reed said as he made public 406 boxes of documents that he said federal investigators had demanded from the city. He added: “Day in and day out I have poured myself into this job. I wanted to be mayor of Atlanta since I was 13. And you think that I would throw my life away for some short-term gratification?”
The brick and the rodents at Mr. Mitchell’s home were detailed in a police report on Sept. 11, 2015. In it, officers responding to a damage-to-property call said that Mr. Mitchell told them the incident had to do with “a federal case.” He also told them that he was going to contact the Federal Bureau of Investigation, which he said would be investigating.The brick and the rodents at Mr. Mitchell’s home were detailed in a police report on Sept. 11, 2015. In it, officers responding to a damage-to-property call said that Mr. Mitchell told them the incident had to do with “a federal case.” He also told them that he was going to contact the Federal Bureau of Investigation, which he said would be investigating.
In January, Mr. Mitchell, 63, the owner of several Atlanta-area construction companies, was arraigned on conspiratorial bribery and money laundering charges of paying more than $1 million to win city contracts. As part of a guilty plea, Mr. Mitchell agreed to cooperate with federal investigators.In January, Mr. Mitchell, 63, the owner of several Atlanta-area construction companies, was arraigned on conspiratorial bribery and money laundering charges of paying more than $1 million to win city contracts. As part of a guilty plea, Mr. Mitchell agreed to cooperate with federal investigators.
On Feb. 8, the second contractor, Charles P. Richards Jr., 64, was arraigned on charges of paying $185,000 in bribes. The authorities said Mr. Richards conspired with Mr. Mitchell in the pay-to-play scheme from 2010 to August 2015.On Feb. 8, the second contractor, Charles P. Richards Jr., 64, was arraigned on charges of paying $185,000 in bribes. The authorities said Mr. Richards conspired with Mr. Mitchell in the pay-to-play scheme from 2010 to August 2015.
Last week, Mr. Richards also pleaded guilty in federal court and is cooperating with investigators. In both cases, the authorities said, the men gave money to an unidentified individual on the belief that it would get them city contracts.Last week, Mr. Richards also pleaded guilty in federal court and is cooperating with investigators. In both cases, the authorities said, the men gave money to an unidentified individual on the belief that it would get them city contracts.
“It’s a big deal,” said Angelo Fuster, a longtime political consultant who worked for three of Atlanta’s mayors. “And the mechanics of it, the way that this seems to have been developing since — what is it, 2010? — is very unusual.”“It’s a big deal,” said Angelo Fuster, a longtime political consultant who worked for three of Atlanta’s mayors. “And the mechanics of it, the way that this seems to have been developing since — what is it, 2010? — is very unusual.”
City contracting here has long been both a source of civic pride and lingering suspicion. After his election in 1974, the city’s first African-American mayor, Maynard Jackson, sought to combat decades of economic injustice by increasing minority participation in city contracts to more than 35 percent from less than 1 percent.City contracting here has long been both a source of civic pride and lingering suspicion. After his election in 1974, the city’s first African-American mayor, Maynard Jackson, sought to combat decades of economic injustice by increasing minority participation in city contracts to more than 35 percent from less than 1 percent.
But high-profile contracting scandals have also resulted in prison terms for several Atlanta politicians and business executives. In 2006, a five-year federal investigation of William C. Campbell, a former mayor who served from 1994 to 2002, ended with a jury finding him not guilty of charges of bribery and racketeering. He was, however, found guilty of tax evasion and sentenced to 30 months in prison.But high-profile contracting scandals have also resulted in prison terms for several Atlanta politicians and business executives. In 2006, a five-year federal investigation of William C. Campbell, a former mayor who served from 1994 to 2002, ended with a jury finding him not guilty of charges of bribery and racketeering. He was, however, found guilty of tax evasion and sentenced to 30 months in prison.
The targets of the previous investigations were a multicultural group, as are those involved in the current scandal: Mr. Mitchell is black, and Mr. Richards is white.The targets of the previous investigations were a multicultural group, as are those involved in the current scandal: Mr. Mitchell is black, and Mr. Richards is white.
It is unclear where the evidence will lead, but court documents suggest that investigators have been paying attention to a woman named Mitzi Bickers, a pastor, political consultant and former president of the Atlanta school board.It is unclear where the evidence will lead, but court documents suggest that investigators have been paying attention to a woman named Mitzi Bickers, a pastor, political consultant and former president of the Atlanta school board.
In January, soon after Mr. Mitchell’s arraignment, The Atlanta Journal-Constitution reported on the threatening attack on his home. In November, the Atlanta police arrested a man named Shandarrick Barnes in the incident. He has been charged with terroristic threats and criminal damage to property.In January, soon after Mr. Mitchell’s arraignment, The Atlanta Journal-Constitution reported on the threatening attack on his home. In November, the Atlanta police arrested a man named Shandarrick Barnes in the incident. He has been charged with terroristic threats and criminal damage to property.
State records show that Mr. Barnes had business ties with Ms. Bickers, who worked on Mr. Reed’s election campaign and in the city’s human services department from 2010 to 2013.State records show that Mr. Barnes had business ties with Ms. Bickers, who worked on Mr. Reed’s election campaign and in the city’s human services department from 2010 to 2013.
A subpoena that was discovered among the 406 boxes of City Hall documents showed that federal officials have asked the city to turn over all correspondence to and from Ms. Bickers. Ms. Bickers has not been charged with any crime.A subpoena that was discovered among the 406 boxes of City Hall documents showed that federal officials have asked the city to turn over all correspondence to and from Ms. Bickers. Ms. Bickers has not been charged with any crime.
State records show Mr. Barnes spent years as the chief financial officer of the Bickers Group, a political consulting company. And when Ms. Bickers led the Chateau Land Company, she designated Mr. Barnes as the corporation’s secretary.State records show Mr. Barnes spent years as the chief financial officer of the Bickers Group, a political consulting company. And when Ms. Bickers led the Chateau Land Company, she designated Mr. Barnes as the corporation’s secretary.
Efforts to reach Mr. Barnes and Ms. Bickers were unsuccessful.Efforts to reach Mr. Barnes and Ms. Bickers were unsuccessful.
Mr. Reed, a lawyer, has said that he planned to enter the private sector after finishing his term in January. While many here believe he would like to seek statewide office, his chances do not appear great in a state that remains a bastion of Republicanism. But he has also said he could return to politics someday. Mr. Reed, a lawyer, has said that he plans to enter the private sector after finishing his term in January. While many here believe he would like to seek statewide office, his chances do not appear great in a state that remains a bastion of Republicanism. But he has also said he could return to politics someday.
Mr. Reed has earned wide praise as mayor for reining in a ballooning, unfunded pension system, and argues that he has presided over a building boom and plummeting unemployment and crime rates. (The city, however, has been struggling with a spike in homicides: Last year there were 111 here, the first time it had more than 100 since 2008.)Mr. Reed has earned wide praise as mayor for reining in a ballooning, unfunded pension system, and argues that he has presided over a building boom and plummeting unemployment and crime rates. (The city, however, has been struggling with a spike in homicides: Last year there were 111 here, the first time it had more than 100 since 2008.)
Steve Fennessy, editor in chief of Atlanta Magazine, said there was often an “unfair pressure” on African-American mayors here. “It’s like there’s a portion of the community that is waiting to say, ‘Gotcha,’” he said.Steve Fennessy, editor in chief of Atlanta Magazine, said there was often an “unfair pressure” on African-American mayors here. “It’s like there’s a portion of the community that is waiting to say, ‘Gotcha,’” he said.
Mr. Fennessy describes the mayor’s political style as “elbows out”: Mr. Reed has quarreled publicly with journalists, engaged in a lengthy funding dispute with the public school board, and taken hits for his use of flashing emergency lights and sirens when he travels around town in his official vehicle. The initial release of the 1.4 million pages of documents on paper, rather than in electronic form, was viewed by some as a passive-aggressive gesture toward the news media.Mr. Fennessy describes the mayor’s political style as “elbows out”: Mr. Reed has quarreled publicly with journalists, engaged in a lengthy funding dispute with the public school board, and taken hits for his use of flashing emergency lights and sirens when he travels around town in his official vehicle. The initial release of the 1.4 million pages of documents on paper, rather than in electronic form, was viewed by some as a passive-aggressive gesture toward the news media.
Jenna Garland, a spokeswoman for the mayor, said on Friday that about 350,000 pages were available electronically, with more than a million total pages scheduled to be available electronically this week. Ms. Garland, the spokeswoman for the mayor, said on Friday that about 350,000 pages were available electronically, and more than a million total pages were scheduled to be available electronically this week.
Mr. Reed has also been criticized for two events that garnered national attention: the Atlanta Braves’ decision, in 2013, to leave central Atlanta for suburban Cobb County, and the near-paralysis of the city after a snowstorm in 2014. Mr. Reed has also been criticized for two events that garnered national attention: the Atlanta Braves’ decision, in 2013, to leave central Atlanta for suburban Cobb County, and the near paralysis of the city after a snowstorm in 2014.
He has made a strong case that neither event was wholly his fault, but for some, the narrative cake was already baked.He has made a strong case that neither event was wholly his fault, but for some, the narrative cake was already baked.
At his news conference, Mr. Reed said he expects wrongdoers to be prosecuted to the full extent of the law. At his news conference, Mr. Reed said he expected wrongdoers to be prosecuted to the full extent of the law.
“We will not rest until this case is fully resolved,” he said, “and justice has been served.”“We will not rest until this case is fully resolved,” he said, “and justice has been served.”