BILOXI - Allegations by federal prosecutors that Coast judges took bribes from a lawyer add another chapter to an already troubled history.

In the last 17 years, Coast judicial scandals have included accusations of drunkenness, corruption, perjury and murder. The scandals have added to the perception of many Mississippians that the Coast is a corrupt place, even though a majority of its judges have had unblemished records.

But Friday's indictment of a state Supreme Court judge and two former lower court judges is more far reaching than the isolated scandals of the past. The investigation has given the state's entire judicial system, already facing national criticism, a black eye.

National business groups have criticized Mississippi in recent years for a series of multimillion-dollar jury awards. The U.S. Chamber of Commerce last year warned companies about doing business in Mississippi because of the state's litigious environment.

Friday's indictments allege that state Supreme Court Justice Oliver Diaz Jr., former Circuit Court Judge John Whitfield and former Chancery Court Judge Wes Teel made rulings in exchange for money and loans from Paul Minor, a multimillionaire lawyer.

"I really hate this, not just as image problem and how it would be perceived for South Mississippi," State Rep. Diane Peranich said. "I'm disturbed that this would happen at all. I do believe in the basic principle that people are innocent until proven guilty. (But) right now, it's rather like unringing a bell."

The indictments come after the 2001 resignations of two Coast Chancery Court judges, who stepped down from the bench to avoid prosecution for reportedly falsifying mileage reimbursements and meal expenses. The indictments also come on the heels of the trial last year of Teel, who was found not guilty of embezzlement charges.

The 1990s was the decade of the judicial DUI charges, with two high court judges arrested on charges of drinking and driving.

In 1997, Court of Appeals Judge James E. Thomas of Biloxi was arrested for drunken driving. Mississippi Supreme Court Justice Chuck McRae, who is from Pascagoula, was arrested for DUI in 1995 and pleaded no contest.

During the 1980s, Coast judges had more serious problems.

Walter L. Nixon Jr., a former federal judge, was convicted in 1986 for lying to a federal grand jury. He served several months in a federal prison.

But the most notorious Coast legal-system scandal is the 1987 murder of Circuit Court Judge Vincent Sherry and his wife, former Biloxi Councilwoman Margaret Sherry. The murders stemmed from a prison telephone scam, the proceeds of which were funneled through the law office Sherry shared with former Biloxi Mayor Pete Halat. Halat was later convicted of participating in the conspiracy that ran the phone scam and had the Sherrys killed.

Halat was sentenced to 18 years in prison in 1997 for his role.

The Sherry murders remain vivid, often featured on television documentaries and discussed. But a college history professor who grew up on the Coast says the area has no monopoly on corruption.

"I do not believe that there is any more corruption in politics in South Mississippi or on the Coast than anywhere else," said William "Pat" Smith, a professor at the University of Southern Mississippi. "That would be inaccurate because human sin rains from the sky without regard to cultural regions or geographical boundaries. This just happens to be the story of the day."

He questions the timing of the indictments, which were handed down less than two weeks from state political primaries.

"I would point you to (former U.S. Secretary of Agriculture) Mike Espy, who had his name thrown through the mud and was probably the Mississippian most likely to pull us through our racial divisions," Smith said. "He was smeared in an indictment that did not lead to a conviction."

Espy was accused of accepting improper gifts from an industry he regulated. He later was exonerated.

Smith said that a federal sting operation in the mid-1980s resulted in convictions of county supervisors from throughout the state, not just the Coast. Smith believes that North Mississippians are moving past their negative perceptions of the Coast. So does Peranich, but for many the stereotypes remain.

"We've had a tendency (in predominantly Baptist Mississippi), because of the Catholic population on the Coast, for any foible to be perceived as something wrong with people who are Catholic," Smith said. "Of course, that is inane. That is a distortion. Sometimes it is about religious prejudice upstate."

JACKSON - One of Mississippi's wealthiest, most powerful lawyers was indicted Friday on charges that he bribed three judges, including a state Supreme Court justice, to help his law firm win cases.

Paul Minor, an Ocean Springs lawyer who first gained fame and fortune with asbestos litigation, funneled more than $450,000 to three state court judges over several years, the indictment says.

Supreme Court Justice Oliver Diaz Jr., his former wife, Jennifer, and former Harrison County lower court judges Wes Teel and John Whitfield all were indicted Friday on counts of bribery and fraud.

Minor also faces a charge of racketeering.

Diaz is the first Supreme Court justice in recent history to be indicted on federal felony charges.

Friday's indictments are likely the first in a series involving the state's lawyers and judges.

U.S. Attorney Dunn Lampton said more indictments may follow, but he would not elaborate.

The more than a year-long investigation into the state's judiciary has prompted calls for campaign-finance reform not only for the judiciary but for statewide elected leaders. Media reports have raised questions about the campaign loans of Gov. Ronnie Musgrove, Lt. Gov. Amy Tuck and other judges and politicians.

The indictment alleges Minor guaranteed and paid off loans, gave judges cash and footed legal bills as a means to persuade judges to rule in his favor. The indictment also says that Minor and the judges concealed many of these transactions by using third parties.

Jim Neal, Minor's lead lawyer, stressed that the indictment was simply an allegation.

"Mr. Minor... is not guilty of any of the allegations in this indictment and will enter a plea of not guilty," Neal said.

Jim Kitchens, a lawyer who represents Jennifer Diaz, agreed with Neal.

"Jennifer Diaz is no criminal, so she will be cleared of the accusations in the indictment," Kitchens said. "She works long hours operating a small business in Biloxi at the same time she's a marvelous mother of her children, ages 8 and 5, and she's a good citizen of Mississippi and of the United States."

Minor, the Diazes, Whitfield and Teel likely will turn themselves in to federal authorities sometime next week.

Diaz will temporarily step down from the bench until the charges against him are resolved, his lawyers said.

"Justice Diaz has done nothing wrong," said Brad Pigott, his lawyer and a former U.S. Attorney for Mississippi.

Lampton praised the work of the FBI, the state attorney general, State Auditor's Office and state banking regulators. He singled out the Internal Revenue Service, "without whom the investigation could not have proceeded as quickly and as efficiently as it did."

Whitfield and his lawyer did not return telephone calls Friday.

Teel's lawyer, Albert Necaise, said he could not comment until later.

The indictments list a long, complicated trail of bank transactions with the three judges and how they ruled on Minor's cases:

Diaz

Diaz served on the state Court of Appeals from 1994 until March 2000.

In March 2000, Diaz voted to rehear a personal injury case involving one of Minor's clients. The next day Diaz was appointed to fill a vacancy on the Supreme Court. Minor funneled more than $45,000 into Diaz's campaign for 2000 to retain his high court seat, the indictment says.

In October 2000, a notice of appeal in a lawsuit involving Minor's father, political newspaper columnist Bill Minor, was filed with the court.

That same day, Minor guaranteed a $75,000 loan for Jennifer Diaz. Jennifer later transferred that money into Oliver Diaz's campaign account.

Diaz also lived rent-free in a condominium partly owned by Minor from late 2001 until 2002. Minor also funneled money into the Diazes' Green Oaks Bed and Breakfast bank accounts.

Later, Diaz voted in favor of Minor's father in the lawsuit.

Whitfield

Whitfield was first elected as a Circuit Court judge in 1994, the first black person to hold the post. Minor personally guaranteed a $40,000 loan for Whitfield in October 1998. In November 1998, Whitfield was re-elected to the Circuit Court. That same month, Minor guaranteed a second loan of $100,000 to Whitfield, the indictment states.

In May 1999, Whitfield was assigned a personal injury case involving Minor. In June of that year, Minor began paying off some of Whitfield's loans. In July 2000, Whitfield ruled in favor of Minor, awarding his client $3.7 million. After the ruling, Minor made payments toward Whitfield's loan.

In December 2000, Whitfield resigned from the bench. In April 2001, Minor gave Whitfield a check for $15,000. He later gave Whitfield an additional $10,000. And he later wired-transferred $125,000 to an account in New Orleans, $118,000 of which was later transferred back to The Peoples Bank of Biloxi to pay off the Whitfield loan.

Teel

Teel was elected to the Chancery Court in 1998. Paul Minor guaranteed a $25,000 loan for Teel in 1998. He renewed the loan in 2000.

In August 1998, Minor represented The Peoples Bank in an insurance case. That case was later assigned to Teel in 2000.

A second person, who was not named in the indictment, paid off the loan in February 2000.

Minor then wrote a check to that person to cover the loan in March 2000.

From October to December 2001, Teel made a series of rulings in favor of Minor's client, The Peoples Bank. The case later was settled in February 2002 for $1.5 million in favor of The Peoples Bank. Later, Minor paid Teel's $10,000 lawyer fees in another matter.

BILOXI - Friday's indictments could be the first wave in a series of charges that, at the very least, cast more doubt on whether Mississippi's judicial system is fair and impartial. At worst, they could result in the retrying of hundreds of cases at taxpayer expense.

Judges and the lawyers who appear before them also are likely to keep closer tabs on their social interactions. Friday's indictments stem from a cozy relationship between multimillionaire trial lawyer Paul Minor and judges.

Minor used his wealth to manipulate the judicial system, the federal indictments charge. The judges allegedly in his pocket were state Supreme Court Justice Oliver Diaz Jr., along with former Coast Circuit Court Judge John Whitfield and former Chancery Court Judge Wes Teel.

Diaz's former wife, Jennifer Diaz, also played a central role in the bribery schemes, according to the indictments, allegedly using her business, the Green Oaks Bed and Breakfast, to funnel the money.

The future seemed boundless

In April 2000, the future seemed as endless as the views from Green Oaks, the Diazes' beachfront mansion, when Oliver Diaz was sworn in as a Supreme Court justice at the age of 40.

After having successfully fought the city of Biloxi to open the bed and breakfast in a residentially zoned area, Jennifer Diaz was seeking to put a casino on a city-owned property. She hosted parties for Mississippi's social and political elite at Green Oaks.

Business leaders, who allege that trial lawyers have controlled the state's judiciary for too long, hailed the news of Friday's indictments. The business community, including the U.S. Chamber of Commerce, has long been critical of the state's "jackpot justice" system.

"In Mississippi, the courts were setting national policy," said Mike Hotra, spokesman for the American Tort Reform Association. "Those cases were not being reversed on appeal to the Supreme Court of Mississippi. That, I think, brought national focus to what was happening in Mississippi... Many of these counties were really over the line in being unabashedly pro plaintiff."

Developments suggest flaws in system

Another grand jury is investigating multimillion-dollar lawsuits against pharmaceutical companies filed in Jefferson County, an area the American Tort Reform Association has called a "judicial hellhole." No indictments have been issued as a result of that ongoing investigation.

The indictments from the Coast prove the need for judicial reform, Hotra said.

"For more than two years, personal injury lawyers have been saying that the Mississippi civil justice system works just fine, that there are no problems with it, that the status quo should remain as such," Hotra said. "Clearly these indictments suggest that the system has serious flaws. We hope the proper steps are taken to rectify those flaws."

Corporations and others who have been sued and lost cases in Mississippi courts are likely to look for reasons to appeal their cases, depending on the outcome of the charges brought Friday.

In recent years, medical and business groups in Mississippi have organized political advocacy groups to combat the influence of trial lawyers on the judicial system. Dick Wilcox, president of the Business and Industry Political Education Committee, said trial lawyers had invested in candidates and failed to report the details for years.

"This really makes trial lawyer money radioactive for candidates now," Wilcox said.

John Christopher, the head of the Mississippi Trial Lawyers Association, worries that consumers and citizens may lose legal rights in the fallout from the investigations. He said Wilcox's statement was crafted to influence state elections, which are only two weeks away.

"As a trial lawyer, we deal in facts," Christopher said. "I don't know what facts Mr. Wilcox is relying on to make his assertions, but if you'll look at the latest Supreme Court race, the U.S. Chamber of Commerce and business groups put a lot more into the race that resulted in Justice Jess Dickerson being elected to the Supreme Court than trial lawyers did."

Christopher stressed that the indictments are allegations that must be proven before a jury.

"Of the five individuals charged, only one is a member of the Mississippi Trial Lawyers Association," Christopher said. "I don't think one member being indicted can serve as an indictment of over 1,200 members."

More judges recuse themselves

Since news of the investigation broke in October, the number of judges recusing themselves from cases where there appears to be the appearance of impropriety has dramatically increased, as has the state's budget for appointing judges to hear those cases.

The massive investigation, which has included the FBI, Internal Revenue Service, investigators from state Attorney General Mike Moore's office, banking regulators, postal inspectors and the Coast's district attorney's office, has been plagued by questions about the appearance of impropriety.

Those questions came to a head in May, when Richard "Dickie" Scruggs, the famed tobacco lawyer, was driven to the federal courthouse in Jackson by Attorney General Mike Moore to testify before the grand jury investigating loans to judges.

Scruggs, who has maintained that he is a cooperating witness in the investigation, was one of the federal government's star witnesses.

Scruggs has said he paid off a 1999 loan for Diaz, when Diaz was running for the Supreme Court.

Scruggs doesn't expect he'll be indicted

Scruggs has said he does not have an immunity agreement with federal authorities, but he has no reason to think he will be indicted.

In the other federal investigation focusing on Southwest Mississippi, federal investigators have subpoenaed records of a Fayette pharmacy concerning cases involving the diet drug fen-phen and other pharmaceuticals.

There were hundred of plaintiffs in the multimillion-dollar cases, many from out of state.

Friday's indictments will spur more debate about whether judges should be elected or appointed, or selected by "merit selection," a hybrid means of choosing judges.

Deborah Goldberg, who heads the Democracy Program for the Brennan Center for Justice at New York University School of Law, said Friday's indictments are an indication that electing judges using private money leads to problems.

"As it takes more and more money, there will be a temptation to play fast and loose with the rules," Goldberg said.

Other judicial watchdog groups found a silver lining in the indictments.

Bert Brandenburg, communications director of Justice At Stake, a nonprofit organization, said, "So often, it is a scandal that leads to reform."

JACKSON - Supreme Court Justice Oliver Diaz Jr. will step down from the court until charges against him are resolved, his lawyers said Friday.

Diaz, his former wife, and two lower court judges were indicted on a series of bribery and fraud charges stemming from their relationship with Paul Minor, an Ocean Springs trial lawyer who has made millions from asbestos, tobacco and personal injury cases.

The indictment alleges that Minor paid off and guaranteed several loans to Diaz and his former wife in exchange for favorable treatment in court.

"He is taking a leave of absence from his duties in the Supreme Court until this case is resolved," lawyers Brad Pigott and Robert McDuff said in a written statement. "He has great respect for that institution and does not want these unfortunate accusations to detract from the work of the Court."

State Supreme Court Chief Justice Edwin Pittman said in a prepared statement Friday that the work of the court will continue.

"Justice Diaz voluntarily removed himself from any involvement in the proceedings of this court, effective immediately," Pittman said. "He took this action so that his personal legal matters would not impede the workings of this court. I thank him for this consideration in regard to the court's business."

No one will be appointed to replace Diaz. According to the state Constitution, only a majority is needed to decide cases. Cases that were assigned to Diaz to hear will be randomly re-assigned, a spokeswoman for the court said.

"I assure the citizens of this state, on behalf of a majority of the justices of this court, that the court is accountable and will strive to render fair and impartial justice," Pittman said.

Pittman said he would not comment on Diaz's charges.

State law says a public official can continue with his or her duties even if indicted of a crime. Only after a felony conviction can an official be removed from the court.

Mike Martz, general counsel of the Mississippi Bar Association, which oversees disciplinary action for lawyers, said Minor would not be sanctioned at this time. Only after a felony conviction would the bar move to have him disbarred, he said. After three years, an attorney can apply to have his bar license reinstated.

Diaz, who was first elected to the Supreme Court in 2000, will go on paid leave. Diaz was appointed to the court after the death of Justice Michael Sullivan in 2000. Before being appointed to the state's high court, he was a state Court of Appeals judge.

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF MISSISSIPPI, JACKSON DIVISION

UNITED STATES OF AMERICA v. PAUL S. MINOR, JOHN H. WHITFIELD, OLIVER E. DIAZ JR., JENNIFER DIAZ, AND WALTER W. "WES" TEEL

The grand jury charges:

Count 1

At all times relevant and material to this indictment:

INTRODUCTION

1. PAUL S. MINOR was an attorney licensed in the State of Mississippi and owned and operated a private law firm in Biloxi, Mississippi, incorporated since 1985 with the Mississippi Secretary of State's Office as Paul S. Minor, P.A., but which was known by various names over the years, including most recently "Minor and Associates."

2. From in or about January 1995 through March 2000, OLIVER E. DIAZ JR., a public officer and elected official, served in the capacity of judge on the Mississippi Court of Appeals, a subdivision of the judicial branch of the state government of Mississippi. From in or about March 2000, continuing up to and including the date of the return of this indictment, OLIVER E. DIAZ JR., a public officer and appointed and elected official served in the capacity of justice on the Mississippi Supreme Court, a subdivision of the judicial branch of the state government of Mississippi.

3. JENNIFER DIAZ and OLIVER E. DIAZ JR., who were married from June 1988 until March 2002, jointly owned Green Oaks, LLC, a Mississippi limited liability company. Green Oaks, LLC, owned a bed and breakfast known as Green Oaks Bed and Breakfast, which was located in Biloxi, Mississippi.

4. From on or about December 30, 1994, through December 2000, JOHN H. WHITFIELD, a public officer and elected official, served in the capacity of circuit court judge for the Second Circuit Court District, a subdivision of the judicial branch of the state government of Mississippi, which encompassed Hancock, Harrison and Stone counties, Mississippi.

5. From on or about December 30, 1998, through December 2002, WALTER W. "WES" TEEL, a public officer and elected official, served in the capacity of chancery court judge for the Eighth Chancery Court District, a subdivision of the judicial branch of the state government of Mississippi which encompassed Hancock, Harrison and Stone counties, Mississippi.

6. The Mississippi Constitution provided that Mississippi judges must support the Constitution of the United States and the Constitution and laws of the state of Mississippi and must faithfully and impartially discharge and perform all the duties incumbent upon them according to the best of their ability and understanding.

7. Mississippi law 97-11-11 stated in pertinent part: Every person who shall promise, offer or give to any officer, agent or trustee, either public or private, while holding such office, agency or trust, or after he has become a candidate or applicant for the same, any money, goods, chattels, right in action, or other property, real or personal, with intent to influence his vote, opinion, action or judgement on any question, matter, cause or proceeding which may be then pending, or may be thereafter subject to vote, opinion, action or judgement of such officer, agent or trustee, shall, on conviction, [be guilty of an offense under this section].

8. Mississippi law 97-11-53 stated in pertinent part: No person shall directly or indirectly offer, promise, give or agree to give to any public official or his spouse any money, property, or other tangible or intangible thing of value as an inducement or incentive for... the accomplishment of any official act or purpose involving public funds or public trust.

THE ENTERPRISE

9. Paul S. Minor, P.A., (also known as Minor and associates) was, at all times material to this indictment, a legal entity, which constituted an enterprise as defined in Title 18, United State Code, Section 1961 (4), which was engaged in , and the activities of which, affected interstate commerce.

10. PAUL S. MINOR, and employees of Minor and Associates, participated in the operation and management of the enterprise.

PURPOSE OF THE RACKETEERING ACTIVITY

11. It was a purpose of the racketeering activity for PAUL S. MINOR to use Minor and Associates to unlawfully obtain an advantage for himself and his clients.

MEANS AND METHODS OF THE RACKETEERING ACTIVITY

12. As owner and operator of Minor and Associates, PAUL S. MINOR provided things of value to several judges in the state of Mississippi, including OLIVER E. DIAZ JR. , JOHN H. WHITFIELD, and WALTER W. "WES" TEEL, including providing money and guaranteeing loans.

13. In return for providing loan guarantees and money, PAUL S. MINOR sought and received favorable treatment for himself and his clients in cases pending before OLIVER E. DIAZ JR., JOHN H. WHITFIELD, and WALTER W. "WES" TEEL.

THE RACKETEERING VIOLATION

14. From approximately 1998 and continuing up to and including the date of the return of the indictment, in Hinds County in the Jackson Division of the Southern District of Mississippi, and elsewhere, defendant PAUL S. MINOR, being a person associated with and employed by the enterprise described above, which was engaged in, and the activities of which affected interstate commerce, did knowingly, intentionally, and unlawfully conduct and participate, directly and indirectly, in the conduct of the affairs of the enterprise through a pattern of racketeering activity, as specified below:

THE PATTERN OF RACKETEERING ACTIVITY

15. The pattern of racketeering activity as defined in Title 18, United States Code, Sections 1961 (1) and 1961 (5) consisted of the following acts:

RACKETEERING ACT ONE

16. From in or about October 1998 and continuing up to and including the date of the return of this indictment, defendant PAUL S. MINOR guaranteed a loan for approximately $40,000.00 and provided money to JOHN H. WHITFIELD seeking favorable treatment of cases pending before JOHN H. WHITFIELD.

17. With respect to the approximate $40,000.00 loan guarantee and money, defendant PAUL S. MINOR committed the following acts of racketeering, either of which alone constitutes the commission of Racketeering Act One.

(A) From on or about October 12, 1998, and continuing up to and including the date of the return of this indictment, in Harrison County in the Southern Division of the Southern District of Mississippi, and elsewhere, defendant PAUL S. MINOR committed an act involving bribery, that is he directly and indirectly offered, promised, gave and agreed to give to JOHN H. WHITFIELD money, property, and other tangible and intangible things of value, that is, guaranteed a loan for approximately $40,000.00 and provided money, as an inducement and incentive for the accomplishment of official acts and purposes involving public funds and public trust, in violation of Mississippi Code 97-11-53.

(B) From in or about October 1998 and continuing up to and including the date of the return of this indictment, in Harrison County in the Southern Division of the Southern District of Mississippi, and elsewhere, defendant PAUL S. MINOR committed an act involving bribery, that is, he promised, offered and gave to JOHN H. WHITFIELD, money, goods, and other property, that is, guaranteed a loan for approximately $40,000.00 and provided money, with intent to influence JOHN H. WHITFIELD's vote, opinion, action and judgment on questions, matters, causes and proceedings which were then pending, and were thereafter subject to vote, opinion, action and judgment of JOHN H. WHITFIELD, in violation of Mississippi Code 97-11-11.

RACKETEERING ACT TWO

18. From in or about November 19, 1998, and continuing up to and including the date of the return of this indictment, defendant PAUL S. MINOR guaranteed a loan for approximately $100,000.00 and provided money to JOHN H. WHITFIELD seeking favorable treatment of cases pending before JOHN H. WHITFIELD.

19. With respect to the approximate $100,000.00 loan guarantee and money, defendant PAUL S. MINOR committed the following acts of racketeering, either of which alone constitutes the commission of Racketeering Act Two.

(A) From on or about November 19, 1998, and continuing up to and including the date of the return of this indictment, in Harrison County in the Southern Division of the Southern District of Mississippi, and elsewhere, defendant PAUL S. MINOR committed and act involving bribery, that is he directly and indirectly offered, promised, gave and agreed to give to JOHN H. WHITFIELD money, property, and other tangible and intangible things of value, that is, guaranteed a loan for approximately $100,000.00 and provided money, as an inducement and incentive for the accomplishment of official acts and purposes involving public funds and public trust, in violation of Mississippi Code 97-11-53.

(B) From in or about November 19, 1998, and continuing up to and including the date of the return of this indictment, in Harrison County in the Southern Division of the Southern District of Mississippi, and elsewhere, defendant PAUL S. MINOR committed an act involving bribery, that is, he promised, offered and gave to JOHN H. WHITFIELD, money, goods, and other property, that is, guaranteed a loan for approximately $100,000.00 and provided money, with intent to influence JOHN H. WHITFIELD's vote, opinion, action and judgment on questions, matters, causes and proceedings which were then pending, and were thereafter subject to vote, opinion, action and judgment of JOHN H. WHITFIELD, in violation of Mississippi Code 97-11-11.

RACKETEERING ACT THREE

20. From in or about February 2000 and continuing up to and including the date of the return of this Indictment, defendant PAUL S. MINOR guaranteed a loan for approximately $75,000.00 and provided checks and cash to OLIVER E. DIAZ JR. and JENNIFER DIAZ seeking favorable treatment of cases pending before OLIVER E. DIAZ JR.

21. With respect to the approximate $75,000.00 loan guarantee and checks and cash, defendant PAUL S. MINOR committed the following acts of racketeering, either of which alone constitutes the commission of Racketeering Act Three.

(A) From in or about February 2000 and continuing up to and including the date of the return of this indictment, in Hinds County in the Jackson Division of the Southern District of Mississippi, and elsewhere, defendant PAUL S. MINOR committed an act involving bribery, that is, he directly and indirectly offered, promised, gave and agreed to give to OLIVER E. DIAZ JR., and JENNIFER DIAZ money, property, and other tangible and intangible things of value, that is, guaranteed a loan for approximately $75,000.00 and provided checks and cash, as an inducement and incentive for the accomplishment of official acts and purposes involving public funds and public trust, in violation of Mississippi Code 97-11-53.

(B) From in or about February 2000 and continuing up to and including the date of the return of this Indictment, in Hinds County in the Jackson Division of the Southern District of Mississippi, and elsewhere, defendant PAUL S. MINOR committed an act involving bribery, that is, he promised, offered and gave to OLIVER E. DIAZ JR., and JENNIFER DIAZ, money, goods and other property, that is, guaranteed a loan for approximately $75,000.00 and provided checks and cash, with intent to influence OLIVER E. DIAZ'S vote, opinion, action and judgment on questions, matters, causes and proceedings which were then pending, and were thereafter subject to vote, opinion, action and judgment of OLIVER E. DIAZ JR., in violation of Mississippi Code ss 97-11-11.

RACKETEERING ACT FOUR

22. From in or about November 1998 and continuing up to and including the date of the return of this Indictment, defendant PAUL S. MINOR guaranteed a loan for approximately $24,500.00 and provided money to WALTER W. "WES" TEEL seeking favorable treatment of cases pending before WALTER W. "WES" TEEL.

23. With respect to the approximate $24,500.00 loan guarantee and money, defendant PAUL S. MINOR committed the following acts of racketeering, either of which alone constitutes the commission of Racketeering Act Four.

(A) From in or about November 1998, and continuing up to and including the date of the return of this Indictment, in Harrison County in the Southern Division of the Southern District of Mississippi, and elsewhere, defendant PAUL S. MINOR committed an act involving bribery, that is, he directly and indirectly offered, promised, gave and agreed to give to WALTER W. "WES" TEEL money, property, and other tangible and intangible things of value, that is, guaranteed a loan for approximately $24,500.00 and provided money, as an inducement and incentive for the accomplishment of official acts and purposes involving public funds and public trust, in violation of Mississippi Code 97-11-53.

(B) From in or about November 1998 and continuing up to and including the date of the return of this Indictment, in Harrison County in the Southern Division of the Southern District of Mississippi, and elsewhere, defendant PAUL S. MINOR committed an act involving bribery, that is, he promised, offered and gave to WALTER W. "WES" TEEL money, goods and other property, that is, guaranteed a loan for approximately $24,500.00 and provided money, with intent to influence WALTER W. "WES" TEEL'S vote, opinion, action and judgment on questions, matters, causes and proceedings which were then pending, and were thereafter subject to vote, opinion, action and judgment of WALTER W. "WES" TEEL, in violation of Mississippi Code 97-11-11.

All in violation of Section 1962©, Title 18, United States Code.

Counts 2, 3, 4, and 5

1. The allegations contained in paragraphs 1, 4, and 6 through 8 of Count 1 of this indictment are realleged and incorporated herein as though fully set forth herein.

THE SCHEME

2. From in or about October 1998, and continuing through the date of the return of this Indictment, in Harrison County in the Southern Division of the Southern District of Mississippi, and elsewhere, the defendants, PAUL S. MINOR and JOHN H. WHITFIELD, devised and intended to devise a scheme and artifice to defraud and deprive the state of Mississippi and its citizens of their right to the honest services of JOHN H. WHITFIELD, performed free from deceit, bias, self-dealing and concealment.

THE PURPOSE OF THE SCHEME

3. The purpose of the scheme was for PAUL S. MINOR to provide things of value to JOHN H. WHITFIELD to cause WHITFIELD to use his position as judge to take official actions and use his official authority and position to provide MINOR with an unfair advantage over litigant opposed to MINOR or his clients.

MANNER AND MEANS OF THE SCHEME

4. PAUL S. MINOR and JOHN H. WHITFIELD executed the scheme through the following manner and means:

5. PAUL S. MINOR arranged for and personally guaranteed loans for, and provided cash, to JOHN H. WHITFIELD in order to gain an unfair advantage with JOHN H. WHITFIELD, whom PAUL S. MINOR had or would have cases pending before, and who was or would be in a position to make decisions on court cases which would be favorable to PAUL S. MINOR and his clients.

6. JOHN H. WHITFIELD covered-up and concealed the objectives of the scheme and his involvement therein, by among other things, failing to disclose his financial relationship with PAUL S. MINOR on reports required under the laws of the state of Mississippi and from counsel and parties opposite MINOR in cases pending before JOHN H. WHITFIELD.

7. PAUL S. MINOR covered-up and concealed the objectives of the scheme and his involvement therein, by among other things, using intermediaries and by causing false documents to be created to disguise the source of funds paid on behalf of JOHN H. WHITFIELD.

ACTS IN FURTHERANCE OF THE SCHEME

8. In furtherance of the scheme, PAUL S. MINOR and JOHN H. WHITFIELD committed the following acts, among others:

9. On or about October 12, 1998, PAUL S. MINOR arranged for and personally guaranteed a loan made to JOHN H. WHITFIELD in the amount of $40,000.00.

10. On or about November 3, 1998, JOHN H. WHITFIELD was re-elected to the Circuit Court.

11. On or about November 19, 1998, PAUL S. MINOR arranged for and personally guaranteed a loan made to JOHN H. WHITFIELD in the amount of $100,000.00.

12. On or about February 10, 1999, PAUL S. MINOR filed the case of Archie Marks, et al v. Diamond Offshore Drilling Company, Cause No. A-2401-99-00063, ("Diamond Offshore") in Circuit Court.

13. On or about May 3, 1999, Diamond Offshore was assigned to be handled by JOHN H. WHITFIELD.

14. On or about June 25, 1999, PAUL S. MINOR instructed an employee of his law firm to withdraw $6,500.00 cash from a bank account which he controlled.

15. On or about June 25-28, 1999, PAUL S. MINOR and JOHN H. WHITFIELD met at MINOR'S law office.

16. On or about June 28, 1999, a cash payment of approximately $5,030.00 was made toward the JOHN H. WHITFIELD loans which had been personally guaranteed by PAUL S. MINOR.

17. On or about January 10, 2000, JOHN H. WHITFIELD signed an order for extension of time in Gardache v. Gulf Oaks Hospital, Cause No. 99-0272.

18. On or about June 20-22, 2000, a trial was held in the case of Diamond Offshore, before JOHN H. WHITFIELD, who heard the case as Circuit Court judge, without a jury.

19. On or about July 12, 2000, JOHN H. WHITFIELD, in his capacity as circuit court judge, ruled in favor of PAUL S. MINOR's client, Archie Marks, in the case of Diamond Offshore, by entering a judgment awarding MINOR'S client the sum of $3,750,000.00.

20. On or about September 8, 2000, PAUL S. MINOR instructed an employee of his law firm to withdraw $7,000.00 cash from a bank account which he controlled.

21. On or about September 8, 2000, PAUL S. MINOR and JOHN H. WHITFIELD met at MINOR'S law office.

22. On or about September 8, 2000, a cash payment of approximately $6,900.00 was made toward that JOHN H. WHITFIELD loans which were previously guaranteed by PAUL S. MINOR.

23. In or about December 2000, JOHN H. WHITFIELD resigned his position as judge on the Circuit Court.

24. On or about April 30, 2001, PAUL S. MINOR provided JOHN H. WHITFIELD a check in the amount of $15,000.00.

25. On or about May 4, 2001, the two loans guaranteed by PAUL S. MINOR for JOHN H. WHITFIELD were consolidated into one loan and JOHN H. WHITFIELD made a payment on that same date of $15,000.00.

26. On or about December 5, 2001, PAUL S. MINOR mailed to JOHN H. WHITFIELD a check in the amount of $10,000.00.

27. On or about December 10, 2001, JOHN H. WHITFIELD made a payment on the consolidated loan in the amount of $10,000.00.

28. On or about May 31, 2002, PAUL S. MINOR instructed an employee of his law firm to withdraw $5,000.00 cash from a bank account which MINOR controlled.

29. On or about June 3, 2002, PAUL S. MINOR instructed an employee of his law firm to withdraw cash in the amount of $4,500.00 from a bank account which MINOR controlled.

30. On or about June 6, 2002, PAUL S. MINOR instructed an employee of his law firm to withdraw cash in the amount of $3,500.00 from a bank account which he controlled. On or about that same date, two cash payments on the consolidated loan were made, one in the amount of $9,500.00 and one in the amount of $500.00.

31. In or about July 2002, PAUL S. MINOR learned from a bank officer at the bank which held the consolidated loan for JOHN H. WHITFIELD that the WHITFIELD loan needed to be paid off immediately because bank examiners were questioning the loan.

32. On or about August 27, 2002, PAUL S. MINOR wire transferred the sum of $125,000.00 to a person located in New Orleans, Louisiana ("Intermediary #1").

33. On or about August 27, 2002, PAUL S. MINOR arranged for Intermediary #1 to wire transfer $118,652.42 from a bank in New Orleans, Louisiana, to a bank in Biloxi, Mississippi to pay off the WHITFIELD loan.

34. On or about September 8, 2002, PAUL S. MINOR caused to be created a backdated promissory note between Intermediary #1 and JOHN H. WHITFIELD in order to disguise the fact that he, MINOR, had provided the money to pay off the WHITFIELD consolidated loan.

USE OF THE MAILS AND COMMERCIAL CARRIER

35. For the purpose of executing and attempting to execute the scheme and artifice to defraud, in the Southern District of Mississippi and elsewhere, on or about the dates listed below, defendants PAUL S. MINOR and JOHN H. WHITFIELD did knowingly cause to be placed in a post office and authorized depository for mail matter or used a private interstate commercial carrier, the matters and things listed below to be sent and delivered by the United States Postal Service or the commercial carrier:

Count 2: February 22, 1999 - Service of summons and complaint by Minor and Associates on defendant in Diamond Offshore via U.S. Mail.

Count 3: August 23, 1999 - Subpoena Duces Tecum sent to Witness #1 in Diamond Offshore via U.S. Mail

Count 4: September 20, 2002- Promissory Note from JOHN H. WHITFIELD to Intermediary #1 via commercial carrier.

USE OF THE WIRES

36. For the purpose of executing and attempting to execute the scheme and artifice to defraud, in the Southern District of Mississippi and elsewhere, on or about the date listed below, defendants PAUL S. MINOR and JOHN H. WHITFIELD did knowingly transmit and cause to be transmitted writings, sounds, and signals by means of wire in interstate commerce as follows:

Count 5: August 27, 2002 - Wire transfer of $118,652.42 from New Orleans, Louisiana, to Biloxi, Mississippi

All in violation of Sections 1341, 1343, 1346, and 2, Title 18, United States Code.

Counts 6,7, and 8

1. The allegations contained in paragraphs 1 through 3 and 6 through 8 of Count 1 of this Indictment are realleged and incorporated as though fully set forth herein.

THE SCHEME

2. From in or about February 2000, and continuing through the date of the return of this Indictment, in Hinds County in the Jackson Division of the Southern District of Mississippi, and elsewhere, the defendants, PAUL S. MINOR, OLIVER E. DIAZ JR., and JENNIFER DIAZ, devised and intended to devise a scheme and artifice to defraud and deprive the state of Mississippi and its citizens of their intangible right to the honest services of OLIVER E. DIAZ JR., performed free from deceit, bias, self-dealing and concealment.

THE PURPOSE OF THE SCHEME

3. The purpose of the scheme was for PAUL S. MINOR to provide things of value to OLIVER E. DIAZ JR. and JENNIFER DIAZ to use his position as judge to take official actions and use his official authority and position to provide MINOR with an unfair advantage over litigants opposed to MINOR or his clients.

MANNER AND MEANS OF THE SCHEME

PAUL S. MINOR, OLIVER E. DIAZ,JR., and JENNIFER DIAZ, executed the scheme through the following manner and means:

4. PAUL S. MINOR arranged for and personally guaranteed a loan for, and provided checks and cash to, OLIVER E. DIAZ JR. and JENNIFER DIAZ, in order to gain an unfair advantage with OLIVER E. DIAZ JR. whom PAUL S. MINOR had or would have cases pending before, and who was in a position to make decisions on court cases which would be favorable to PAUL S. MINOR and his clients.

5. OLIVER E. DIAZ JR. covered-up and concealed the objectives of the scheme and his involvement therein, by among other things, failing to disclose his financial relationships with PAUL S. MINOR on reports required under the laws of the state of Mississippi and from counsel and parties opposite MINOR in cases pending before OLIVER E. DIAZ JR.

6. PAUL S. MINOR, OLIVER E. DIAZ JR., and JENNIFER DIAZ covered-up and concealed the objectives of the scheme and their involvement therein, by among other things, using intermediaries to funnel money and things of value to OLIVER E. DIAZ JR.

ACTS IN FURTHERANCE OF THE SCHEME

7. In furtherance of the scheme, PAUL S. MINOR, OLIVER E. DIAZ JR., and JENNIFER DIAZ, committed the following acts, among others:

8. On or about March 14, 2000, the Mississippi Court of Appeals announced that the court had voted 5-4 in favor of PAUL S. MINOR'S client on MINOR'S Motion for Rehearing in Accu-Fab & Construction, Inc. v. Beverly Ladner, Case No. 96-CT-00692-SCT, with OLIVER E. DIAZ JR. voting with the majority.

9. On or about March 15, 2000, OLIVER E. DIAZ JR. was appointed by the Governor to serve on the Mississippi Supreme Court and resigned from the Court of Appeals.

10. From in or about September 2000 and continuing through November 2000, PAUL S. MINOR funneled approximately $45,000.00 of his own money through the use of third party names into the election campaign of OLIVER E. DIAZ JR., who was seeking to retain his seat on the Mississippi Supreme Court.

11. On or about October 10, 2000, a Notice of Appeal to the Mississippi Supreme Court was filed in the case of Archie Marks v. Diamond Offshore Management Company, Case No. 2000-CA-01680-SCT, in which PAUL S. MINOR represented plaintiff Archie Marks.

12. On or about October 27, 2000, a Notice of Appeal to the Mississippi Supreme Court was filed in the case of Armistead v. Bill Minor, No. 2000-CA-01914-SCT, a case involving PAUL S. MINOR'S father and in which PAUL S. MINOR was listed as an interested person.

13. On or about October 27, 2000, PAUL S. MINOR arranged for and personally guaranteed a loan for JENNIFER DIAZ in the amount of $75,000.00.

14. On or about October 31, 2000, JENNIFER DIAZ caused to be deposited $73,000.00 of the loan proceeds from the loan guaranteed by PAUL S. MINOR into the campaign fund account of OLIVER E. DIAZ JR. who, at that time, was serving as an appointed justice on the Supreme Court and running for election to that position.

15. On or about November 21, 2000, OLIVER E. DIAZ JR. won the election to the Supreme Court.

16. Beginning sometime in 2001 and continuing until sometime in 2002, the exact dates unknown, OLIVER E. DIAZ JR. lived rent free in a condominium in Biloxi, Mississippi, which was owned, in part, by PAUL S. MINOR.

17. Beginning in or about October 2001, and continuing through January 2002, PAUL S. MINOR persuaded a number of trial attorneys, some of whom had cases pending in the Supreme Court, to write checks made payable to Green Oaks, LLC or to PAUL S. MINOR.

18. On or about December 20, 2001, PAUL S. MINOR instructed an employee of his law firm to withdraw $10,000.00 cash from a bank account which MINOR controlled. On that same date, $60,000.00 in checks previously obtained by PAUL S. MINOR from the trial attorneys was deposited into the bank account of Green Oaks, LLC, along with $9,000.00 cash.

19. On or about January 14, 2002, JENNIFER DIAZ called for PAUL S. MINOR at his law office, and left a message for him to return her call.

20. On or about January 16, 2002, OLIVER E. DIAZ, JR. called for PAUL S. MINOR at his law office, and left a message for him to return his call.

21. On or about January 22, 2002, OLIVER E. DIAZ JR. was assigned to the three judge panel to hear the case of Armistead v. Bill Minor.

22. On or about January 24, 2002, OLIVER E. DIAZ JR. called PAUL S. MINOR at MINOR'S law office and left a message for MINOR to call him on his, DIAZ'S, cell phone.

23. On or about January 25, 2002, the remainder of the checks previously collected by PAUL S. MINOR from the trial attorneys was deposited into the checking account of Green Oaks, LLC, along with $9,000.00 cash.

24. On or about May 9, 2002, the Supreme Court announced that it upheld a lower court ruling in favor of Bill Minor in Armistead v. Bill Minor, and that OLIVER E. DIAZ JR. voted in favor of Bill Minor.

USE OF THE MAILS AND COMMERCIAL CARRIER

25. For the purpose of executing and attempting to execute the scheme and artifice to deprive, in the Southern District of Mississippi and elsewhere, on or about the dates listed below, defendants PAUL S. MINOR, OLIVER E. DIAZ, JR., and JENNIFER DIAZ did knowingly cause to be placed in a post office and authorized depository for mail matter or used a private interstate commercial carrier, the matters and things listed below to be sent and delivered by the United States Postal Service or the commercial carrier:

Count 6: November 28, 2000 - Certificate of Compliance with Rule 11B to Mississippi Supreme Court in Armistead v. Bill Minor via US Mail.

Count 7: April 26, 2001 Rule 10 (B)5 Statement and Certificate Regarding Proposed Corrections to Transcript in Diamond Offshore via U.S. Mail.

Count 8 - October 24, 2001 $25,000 check payable to Green Oaks from an attorney sent to PAUL S. MINOR via commercial carrier.

All in violation of Sections 1341, 1346, and 2, Title 18, United States Code.

Counts 9 and 10

1. The allegations contained in paragraphs 1 and 5 through 8 of Count 1 of this Indictment are realleged and incorporated herein as though fully set forth herein.

THE SCHEME

2. From in or about November 1998, and continuing through the date of the return of this Indictment, in Harrison County in the Southern Division of the Southern District of Mississippi, and elsewhere, the defendants, PAUL S. MINOR and WALTER W. "WES" TEEL, devised and intended to devise a scheme and artifice to defraud and deprive the state of Mississippi and its citizens their right to honest services of WALTER W. "WES" TEEL, performed free from deceit, bias, self-dealing and concealment.

THE PURPOSE OF THE SCHEME

3. The purpose of the scheme was for PAUL S. MINOR to provide things of value to WALTER W. "WES" TEEL to cause TEEL to use his position as judge to take official actions and use his official authority and position to provide MINOR with an unfair advantage over litigants opposed to MINOR or his clients.

MANNER AND MEANS OF THE SCHEME

4. PAUL S. MINOR and WALTER W. "WES" TEEL executed the scheme through the following manner and means:

5. PAUL S. MINOR arranged for and personally guaranteed a loan for, and provided cash to, WALTER W. "WES" TEEL, in order to gain an unfair advantage with WALTER W. "WES" TEEL, whom PAUL S. MINOR had or would have cases pending before, and who was or would be in a position to make decisions on court cases which would be favorable to PAUL S. MINOR and his clients.

6. WALTER W. "WES" TEEL covered-up and concealed the objectives of the scheme and his involvement therein, by among other things, failing to disclose his financial relationships with PAUL S. MINOR on reports required under the laws of the state of Mississippi and from counsel and parties opposite MINOR in cases pending before WALTER W. "WES" TEEL.

7. PAUL S. MINOR covered-up and concealed the objectives of the scheme and his involvement therein, by among other things, using intermediaries to funnel money and things of value to WALTER W. "WES" TEEL.

ACTS IN FURTHERANCE OF THE SCHEME

8. In furtherance of the scheme, PAUL S. MINOR and WALTER "WES" TEEL, committed the following acts, among others:

9. On or about August 25, 1998, PAUL S. MINOR, representin

JACKSON - Gov. Ronnie Musgrove has emerged as an enigmatic figure in the federal probe of the state's judiciary.

Musgrove said Monday at a Jackson press luncheon that he doesn't remember whether Paul Minor, a lawyer indicted Friday on bribery, fraud and racketeering charges, talked to him about appointing Supreme Court Justice Oliver Diaz Jr. in 2000.

Diaz, his former wife and two lower court judges were indicted Friday on charges that Minor bribed the judges in exchange for favorable treatment in court.

Federal investigators have looked at the connections among Musgrove, Minor and other trial lawyers and judicial appointments.

Musgrove said on Monday that he has not talked to federal investigators nor have his records been subpoenaed.

The judicial scandal has provided political fodder for the governor's race, with state Republican leaders calling for Musgrove to return all of his contributions from Minor, one of Musgrove's top contributors.

"To avoid the appearance of impropriety, he should refund the money," said Jim Herring, state Republican Party chairman, during a news conference Tuesday.

Musgrove's camp retaliated, pointing to money Haley Barbour earned as a lobbyist. Barbour, a Republican candidate for Musgrove's job, is former head of the Republican National Committee and a former Washington lobbyist.

"We will consider Mr. Herring's proposal when Haley Barbour returns the $5.5 million he received from Big Tobacco, the $2.1 million he received from drug companies, the $1.2 million he received from HMOs, and the $1.7 million he received to be an agent for foreign governments," said Lisa McMurray, Musgrove's campaign manager.

Minor has contributed more than $100,000 to Musgrove over the governor's 16-year political career. Many of Musgrove's judicial appointments are noted friends and colleagues of Minor. Musgrove appointed Diaz to the Supreme Court in March 2000 after the death of Justice Michael Sullivan. Diaz, who was first elected to the Court of Appeals in 1994, had limited experience as a judge or a lawyer before being appointed to the state's highest court.

Musgrove said in November, shortly after news of the investigation broke, that character, not campaign contributions, determines whom he appoints to fill judicial vacancies.

"Paul Minor has been a longtime supporter of mine as I have had longtime supporters all across the state, in all walks of life," Musgrove said. "He has voiced support, like hundreds of others. He, like many others, has been disappointed by my appointments."

BILOXI - Friday's indictments could be the first wave in a series of charges that, at the very least, cast more doubt on whether Mississippi's judicial system is fair and impartial. At worst, they could result in the retrying of hundreds of cases at taxpayer expense.

Judges and the lawyers who appear before them also are likely to keep closer tabs on their social interactions. Friday's indictments stem from a cozy relationship between multimillionaire trial lawyer Paul Minor and judges.

Minor used his wealth to manipulate the judicial system, the federal indictments charge. The judges allegedly in his pocket were state Supreme Court Justice Oliver Diaz Jr., along with former Coast Circuit Court Judge John Whitfield and former Chancery Court Judge Wes Teel.

Diaz's former wife, Jennifer Diaz, also played a central role in the bribery schemes, according to the indictments, allegedly using her business, the Green Oaks Bed and Breakfast, to funnel the money.

The future seemed boundless

In April 2000, the future seemed as endless as the views from Green Oaks, the Diazes' beachfront mansion, when Oliver Diaz was sworn in as a Supreme Court justice at the age of 40.

After having successfully fought the city of Biloxi to open the bed and breakfast in a residentially zoned area, Jennifer Diaz was seeking to put a casino on a city-owned property. She hosted parties for Mississippi's social and political elite at Green Oaks.

Business leaders, who allege that trial lawyers have controlled the state's judiciary for too long, hailed the news of Friday's indictments. The business community, including the U.S. Chamber of Commerce, has long been critical of the state's "jackpot justice" system.

"In Mississippi, the courts were setting national policy," said Mike Hotra, spokesman for the American Tort Reform Association. "Those cases were not being reversed on appeal to the Supreme Court of Mississippi. That, I think, brought national focus to what was happening in Mississippi... Many of these counties were really over the line in being unabashedly pro plaintiff."

Developments suggest flaws in system

Another grand jury is investigating multimillion-dollar lawsuits against pharmaceutical companies filed in Jefferson County, an area the American Tort Reform Association has called a "judicial hellhole." No indictments have been issued as a result of that ongoing investigation.

The indictments from the Coast prove the need for judicial reform, Hotra said.

"For more than two years, personal injury lawyers have been saying that the Mississippi civil justice system works just fine, that there are no problems with it, that the status quo should remain as such," Hotra said. "Clearly these indictments suggest that the system has serious flaws. We hope the proper steps are taken to rectify those flaws."

Corporations and others who have been sued and lost cases in Mississippi courts are likely to look for reasons to appeal their cases, depending on the outcome of the charges brought Friday.

In recent years, medical and business groups in Mississippi have organized political advocacy groups to combat the influence of trial lawyers on the judicial system. Dick Wilcox, president of the Business and Industry Political Education Committee, said trial lawyers had invested in candidates and failed to report the details for years.

"This really makes trial lawyer money radioactive for candidates now," Wilcox said.

John Christopher, the head of the Mississippi Trial Lawyers Association, worries that consumers and citizens may lose legal rights in the fallout from the investigations. He said Wilcox's statement was crafted to influence state elections, which are only two weeks away.

"As a trial lawyer, we deal in facts," Christopher said. "I don't know what facts Mr. Wilcox is relying on to make his assertions, but if you'll look at the latest Supreme Court race, the U.S. Chamber of Commerce and business groups put a lot more into the race that resulted in Justice Jess Dickerson being elected to the Supreme Court than trial lawyers did."

Christopher stressed that the indictments are allegations that must be proven before a jury.

"Of the five individuals charged, only one is a member of the Mississippi Trial Lawyers Association," Christopher said. "I don't think one member being indicted can serve as an indictment of over 1,200 members."

More judges recuse themselves

Since news of the investigation broke in October, the number of judges recusing themselves from cases where there appears to be the appearance of impropriety has dramatically increased, as has the state's budget for appointing judges to hear those cases.

The massive investigation, which has included the FBI, Internal Revenue Service, investigators from state Attorney General Mike Moore's office, banking regulators, postal inspectors and the Coast's district attorney's office, has been plagued by questions about the appearance of impropriety.

Those questions came to a head in May, when Richard "Dickie" Scruggs, the famed tobacco lawyer, was driven to the federal courthouse in Jackson by Attorney General Mike Moore to testify before the grand jury investigating loans to judges.

Scruggs, who has maintained that he is a cooperating witness in the investigation, was one of the federal government's star witnesses.

Scruggs has said he paid off a 1999 loan for Diaz, when Diaz was running for the Supreme Court.

Scruggs doesn't expect he'll be indicted

Scruggs has said he does not have an immunity agreement with federal authorities, but he has no reason to think he will be indicted.

In the other federal investigation focusing on Southwest Mississippi, federal investigators have subpoenaed records of a Fayette pharmacy concerning cases involving the diet drug fen-phen and other pharmaceuticals.

There were hundred of plaintiffs in the multimillion-dollar cases, many from out of state.

Friday's indictments will spur more debate about whether judges should be elected or appointed, or selected by "merit selection," a hybrid means of choosing judges.

Deborah Goldberg, who heads the Democracy Program for the Brennan Center for Justice at New York University School of Law, said Friday's indictments are an indication that electing judges using private money leads to problems.

"As it takes more and more money, there will be a temptation to play fast and loose with the rules," Goldberg said.

Other judicial watchdog groups found a silver lining in the indictments.

Bert Brandenburg, communications director of Justice At Stake, a nonprofit organization, said, "So often, it is a scandal that leads to reform."

JACKSON - A Biloxi advertising executive and longtime political consultant testified Thursday before a federal grand jury that is investigating possible judicial corruption in Mississippi.

Reed Guice, former head of GodwinGroup's Coast division, would not comment about his testimony as he left the James O. Eastland federal courthouse in Jackson on Thursday.

Guice has done public relations work for Paul Minor, a millionaire lawyer from Ocean Springs who is a target of the federal probe. Federal and state investigators, with the help of the Internal Revenue Service and state banking authorities, have been trying to determine for more than a year whether Minor's financial relationships with judges compromised the independence of the judiciary.

Judges who have been named in the investigation include state Supreme Court Justice Oliver Diaz Jr. and former Harrison County lower court Judges Wes Teel and John Whitfield.

The grand jury investigating the matter was extended by six months in June.

The grand jury is expected to meet again today, and a decision on indictments could be reached as early as today.

The investigation, although focused on the judiciary, has touched some of the state's top officeholders.

Gov. Ronnie Musgrove's appointments to the bench and their connections to campaign contributors have been scrutinized.

Questions have arisen about campaign loans for Lt. Gov. Amy Tuck. Tuck at first would not disclose the source of more than $500,000 that she loaned her campaign in 1999. It was later learned that Richard "Dickie" Scruggs, a powerful Pascagoula lawyer, paid off the loans.

The lack of transparency on loans to political campaigns has prompted talk of more campaign-finance reform.

Investigators have subpoenaed records at The Peoples Bank in Biloxi and Merchants & Marine Bank in Pascagoula.

Agents also have looked at cases in Harrison County courts as well as the state Supreme and Appellate courts.

Guice, who has handled dozens of political campaigns in his career, is not listed as a campaign consultant in Diaz's reports for the 1999 Supreme Court race.

Guice also is not listed as a consultant for the previous campaigns of Whitfield or Teel.

Guice left Jackson-based GodwinGroup in December, saying he wanted to focus on political campaigns.

Earlier this month, Guice sued GodwinGroup, alleging it failed to pay him dividends and miscalculated his interest in the company.

Before merging with Godwin Group in 1998, Guice had his own agency, Guice & Guice Advertising.

A separate grand jury met earlier this week. That grand jury is reportedly investigating multimillion-dollar jury verdicts awarded in Jefferson County.

JACKSON - A special tribunal of state judges apparently will decide whether to suspend Supreme Court Justice Oliver Diaz Jr., who is facing federal fraud and bribery charges.

The Mississippi Commission on Judicial Performance filed a request Wednesday that Diaz be barred from taking part in Supreme Court deliberations while the case against him is pending.

Darlene Ballard, an attorney with the commission, said Thursday that the Mississippi Constitution provides that, when a justice is involved in such an action, the secretary of state impanels a tribunal to decide whether a suspension is warranted. She said members of the special court would be impaneled from chancery and circuit judges from throughout the state.

The request was also filed with the Supreme Court.

David Blount, a spokesman for Secretary of State Eric Clark, acknowledged receiving the commission's request. Blount said Clark would draw names for the tribunal in the next couple of weeks.

Biloxi attorney Paul Minor is accused of funneling hundreds of thousands of dollars in loans and gifts to Diaz and four others in a scheme to influence the judicial system.

Others named in the indictment returned last Friday are Diaz's former wife, Jennifer, and former Harrison County Judges Wes Teel and John Whitfield.

Chief Justice Edwin L. Pittman said earlier that Diaz had already taken a leave of absence, a fact noted by Diaz's attorney, Robert McDuff.

"I think all of these proceedings are unnecessary," McDuff said. "At this point, there is nothing for (a tribunal) to do.

"He has been wrongly caused of favoring a particular attorney even though he recused himself from participating in that attorney's cases. At the end of the day, the evidence will show that Justice Diaz is innocent."

The 43-year-old Diaz was appointed to the Supreme Court in March 2000 by Gov. Ronnie Musgrove to replace a justice who had died. He won election in November 2000 to an eight-year term. He served in the state House from 1988 to 1994.

The last time a member of the Supreme Court was indicted was in 1995. Justice Chuck McRae was charged with drunken driving, a misdemeanor, by a grand jury in Rankin County. McRae later pleaded no contest to a complaint separate from the grand jury indictment shortly before he was to go to trial.