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.

JACKSON - The five defendants stood before a federal judge Wednesday morning and one by one entered pleas to judicial corruption charges that could send them to jail for years if convicted.

"Absolutely not guilty," said Mississippi Supreme Court Justice Oliver Diaz Jr. of Biloxi, holding his arm around the waist of his former wife and co-defendant, Jennifer Diaz. She pleaded not guilty as did the three other defendants, including two former Coast judges, Wes Teel and John Whitfield.

The five were indicted July 25 on counts of bribery and fraud.

Paul Minor, the multimillionaire Ocean Springs lawyer accused of bribing the judges and racketeering, was the last defendant to walk into the courtroom, but first to enter his not guilty plea. His father, Bill Minor, a veteran newspaper columnist who has covered Mississippi politics for more than half a century, sat on the row behind him, carefully watching the proceedings. Paul Minor's mother kept her eyes shut while charges against her son were read.

U.S. Magistrate James Sumner set a $10,000 bond for each defendant. He set an Oct. 6 trial date, which will most likely be postponed because of scheduling conflicts among lawyers. Judge Henry Wingate will hear the case.

Justice Diaz kept his arm around his ex-wife's waist through most of the proceedings, removing it only to sign his bond agreement.

The Diazes arrived and left the courthouse together, walking swiftly past news cameras and refraining from comments. Their lawyers also made no statements.

Minor, in his first public statement since news of the investigation broke in October, asked people to keep an open mind.

"I know that when these matters are resolved, the jury will find me innocent of all charges. I just ask one thing, that is the people of Mississippi, and more importantly the media, afford me the presumption of innocence, which I, like you, am constitutionally entitled to," he said.

Lawyers for Teel and Whitfield said the case against their clients is based on politics, not evidence.

Michael Crosby, Whitfield's lawyer, stood on the courthouse steps after the hearing and gave a statement to the media.

"This is a criminalization of the political system and a politization of the criminal system," Crosby said. "As an elected official, John Whitfield has conducted himself with the highest level of integrity and honesty. He is a man of strong faith and a firm conviction in God. When all the evidence is in, the people are going to see that John Whitfield's decisions have never been influenced by anything improper. All of his decisions have been based upon the facts and the evidence as he saw them."

Albert Necaise briefly answered questions as he walked from the courthouse with Teel, his client.

"I think the government, as I've stated before, has done some over-reaching to make this a federal case, but we'll settle all of this when it gets in the courtroom, and we'll let the jury decide what will happen," Necaise said.

U.S. Attorney Dunn Lampton and his team of prosecutors said little during Wednesday's half-hour hearing. He said in an interview after court that he is confident of his team's ability and looks forward to proving the government's case in court.

The grand jury that delivered the 16-count indictment is still meeting. Another grand jury, believed to be hearing testimony about large jury verdicts in Jefferson County involving pharmaceutical lawsuits, also continues. When asked whether more indictments are coming, Lampton said, "We'll have to wait and see."

The U.S. Attorney's Office, along with the FBI, Internal Revenue Service, postal inspectors and state banking and auditing authorities, worked for more than a year on the investigation that resulted in the indictments.

JACKSON - The five defendants stood before a federal judge Wednesday morning and one by one entered pleas to judicial corruption charges that could send them to jail for years if convicted.

"Absolutely not guilty," said Mississippi Supreme Court Justice Oliver Diaz Jr. of Biloxi, holding his arm around the waist of his former wife and co-defendant, Jennifer Diaz. She pleaded not guilty as did the three other defendants, including two former Coast judges, Wes Teel and John Whitfield.

The five were indicted July 25 on counts of bribery and fraud.

Paul Minor, the multimillionaire Ocean Springs lawyer accused of bribing the judges and racketeering, was the last defendant to walk into the courtroom, but first to enter his not guilty plea. His father, Bill Minor, a veteran newspaper columnist who has covered Mississippi politics for more than half a century, sat on the row behind him, carefully watching the proceedings. Paul Minor's mother kept her eyes shut while charges against her son were read.

U.S. Magistrate James Sumner set a $10,000 bond for each defendant. He set an Oct. 6 trial date, which will most likely be postponed because of scheduling conflicts among lawyers. Judge Henry Wingate will hear the case.

Justice Diaz kept his arm around his ex-wife's waist through most of the proceedings, removing it only to sign his bond agreement.

The Diazes arrived and left the courthouse together, walking swiftly past news cameras and refraining from comments. Their lawyers also made no statements.

Minor, in his first public statement since news of the investigation broke in October, asked people to keep an open mind.

"I know that when these matters are resolved, the jury will find me innocent of all charges. I just ask one thing, that is the people of Mississippi, and more importantly the media, afford me the presumption of innocence, which I, like you, am constitutionally entitled to," he said.

Lawyers for Teel and Whitfield said the case against their clients is based on politics, not evidence.

Michael Crosby, Whitfield's lawyer, stood on the courthouse steps after the hearing and gave a statement to the media.

"This is a criminalization of the political system and a politization of the criminal system," Crosby said. "As an elected official, John Whitfield has conducted himself with the highest level of integrity and honesty. He is a man of strong faith and a firm conviction in God. When all the evidence is in, the people are going to see that John Whitfield's decisions have never been influenced by anything improper. All of his decisions have been based upon the facts and the evidence as he saw them."

Albert Necaise briefly answered questions as he walked from the courthouse with Teel, his client.

"I think the government, as I've stated before, has done some over-reaching to make this a federal case, but we'll settle all of this when it gets in the courtroom, and we'll let the jury decide what will happen," Necaise said.

U.S. Attorney Dunn Lampton and his team of prosecutors said little during Wednesday's half-hour hearing. He said in an interview after court that he is confident of his team's ability and looks forward to proving the government's case in court.

The grand jury that delivered the 16-count indictment is still meeting. Another grand jury, believed to be hearing testimony about large jury verdicts in Jefferson County involving pharmaceutical lawsuits, also continues. When asked whether more indictments are coming, Lampton said, "We'll have to wait and see."

The U.S. Attorney's Office, along with the FBI, Internal Revenue Service, postal inspectors and state banking and auditing authorities, worked for more than a year on the investigation that resulted in the indictments.

GULFPORT - W/MUGS

State Supreme Court Justice Oliver Diaz Jr. is expected to make an initial appearance in court Wednesday along with his ex-wife, two former Coast lower court judges and lawyer Paul Minor.

They won't be alone.

Following them up the steps of the federal courthouse in Jackson will be a team of lawyers, many of whom are very familiar with how the federal government investigates and tries cases.

Although not household names such as Johnnie Cochran or F. Lee Bailey, the lawyers include men who have defended and prosecuted presidents.

Diaz, his former wife, Jennifer Diaz, and former Coast judges Wes Teel and John Whitfield are accused of multiple counts of bribery and fraud. Minor also faces a charge of racketeering.

All are expected to plead not guilty.

Minor, a multimillionaire lawyer from Ocean Springs, began assembling his defense team months before the July 25 indictment was issued. Leading his team is James Neal, a Nashville lawyer who most recently defended former Vice President Al Gore against improper campaign finance allegations involving a California Buddhist temple.

But baby boomers will remember Neal as the Watergate prosecutor who successfully convicted White House counsel John Dean and others. Neal first garnered national headlines when he prosecuted Teamsters boss Jimmy Hoffa.

Joining Neal on Minor's team is Abbe Lowell, a Washington lawyer who helped represent Bill Clinton during his impeachment hearings and U.S. Rep. Gary Condit during the Chandra Levy case. Joe Hollomon, a Jackson defense lawyer, also is representing Minor.

On the other side of the aisle will be a team of federal prosecutors with more than 50 years of experience prosecuting public corruption cases. U.S. Attorney Dunn Lampton is a former Mississippi district attorney with a 20-year record. During his tenure, Lampton successfully prosecuted two sheriffs, two county supervisors, one coroner and other county officials.

Ruth Morgan, an assistant U.S. attorney based in Biloxi, will be a key player in the prosecution. In her 19 years as a federal prosecutor, she has handled many public corruption cases, including the "Operation Pretense" probe of county supervisors in the 1980s. More recently, Morgan was involved in the 1999 embezzlement and money laundering case against former Jackson County Chancery Clerk Lynn Presley.

The U.S. Attorney General's Office also is sending Nancy Newcomb, the senior trial attorney for the Department of Justice Public Integrity Section. She prosecuted "Operation Illwind," a corruption case involving defense procurements and, this year, the case against Ronald Bodenheimer for judicial corruption in Louisiana.

Newcomb said her office, which is based in Washington, D.C., specializes in public corruption cases. It is not unusual for her to work on a case at the district level, she said.

"Some cases we handle alone," Newcomb said. "Many cases we handle jointly with U.S. attorneys. It might be some area of expertise we have. Sometimes we handle cases alone in a district because of recusal issues. This happens to be one we're working jointly."

Besides the entering of pleas and the setting of bonds at an initial appearance, the federal magistrate judge usually sets a trial date and a cutoff time for the filing of motions.

Wednesday's initial appearance is expected to occur without fanfare, but if the case goes to trial as expected, legal observers and fans of courtroom drama will likely not be disappointed.

One sure defense strategy will be to attack the government's bribery charges. The government believes that Minor paid off loans and made other cash gifts to the three judges in exchange for favorable rulings in court.

"I think the federal government has stretched the charges to make them federal violations," said Albert Necaise, a Gulfport lawyer representing Wes Teel.

"I think a lot of it is political," Necaise said. "I want my client to be tried based on evidence, not innuendos. I think when it is finally resolved he will be acquitted."

He knows the criminal justice system from both sides. He served as a district attorney on the Coast in the 1970s and has been a defense lawyer in several high-profile cases over the past 20 years.

Representing Oliver Diaz Jr. are Brad Pigott and Robert McDuff. Pigott served as the U.S. attorney for the Southern District before Lampton was appointed to the position by the Bush administration. Pigott helped prosecute former Biloxi Mayor Pete Halat for his part in the murder of Circuit Judge Vincent Sherry and his wife, Margaret.

Jim Kitchens, also a former district attorney, is representing Jennifer Diaz.

Whitfield is represented by Michael Crosby, who has practiced criminal defense in Gulfport for the past 16 years. In 1999, he successfully defended a former Harrison County sheriff's deputy who was accused of sexual battery.

JACKSON - A special seven-judge tribunal will be selected Tuesday that will decide whether to temporarily suspend state Supreme Court Justice Oliver Diaz Jr.

Diaz, his ex-wife, two lower court judges and lawyer Paul Minor were indicted on multiple bribery and fraud charges July 25. Minor, who prosecutors believe paid off loans and gave money to judges in exchange for favorable rulings in court, was charged with an additional charge of conspiracy.

Earlier this week, all five pleaded not guilty.

Secretary of State Eric Clark will draw seven names of about 100 state chancery and circuit court judges on Tuesday morning in Jackson at the state Commission on Judicial Performance, the state judicial watchdog agency.

Normally the Supreme Court votes on the recommendations of the Judicial Commission. But when a state supreme court justice is involved, a special tribunal of randomly selected lower court judges must decide a judge's fate.

A special tribunal was convened once before in the 1990s when Justice Chuck McRae was charged with driving under the influence.

JACKSON, Miss. - At least one of the seven chancellors selected to decide whether to suspend a Mississippi Supreme Court justice charged in a judicial bribery scheme will likely be disqualified, officials said.

Secretary of State Eric Clark on Tuesday drew the names from circuit and chancery judges throughout the state. Those selected with Chancery Judges Patricia Wise, Denise Owens and Stuart Robinson, all of Hinds County, Sarah Springer of Lauderdale County, Carter Bise of Harrison County, William Willard Jr. of Coahoma County and Hollis McGehee of Franklin County.

Wise will be disqualified because she's a member of the Commission on Judicial Performance, which recommended Mississippi Supreme Court Justice Oliver Diaz's suspension, said Brant Brantley, the commission's executive director.

"When she is notified that she's on the special committee, she will then notify the clerk of the Supreme Court of her disqualification so then another name will have to be selected," Brantley said.

Other chancellors who may have conflicts have 30 days to file the appeal. Clark will draw new names.

Biloxi attorney Paul Minor is accused in the federal indictment of funneling hundreds of thousands of dollars in loans and gifts to Diaz; the justice's former wife, Jennifer; and former Harrison County Judges Wes Teel and John Whitfield.

The much anticipated federal indictment alleges a somewhat complicated good old boy trail dating back to 1998 - one of guaranteed loans and debt payoffs for three judges and beneficial treatment of a lawyer's cases in their courtrooms.

The defendants have pleaded innocent. They are scheduled for trial Oct. 6 in Jackson.

The judicial watchdog commission on July 30 asked that Diaz be barred from taking part in Supreme Court deliberations while the federal case against him is pending.

The Supreme Court has approved a leave of absence with pay for Diaz. Diaz would not participate in cases while on the leave of absence, justices said.

If found guilty does Diaz pay back all the absence with pay?

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.

This is the second time in state history that such steps were taken. The first time was in 1997 when a tribunal ordered a public censure for Supreme Court Justice Chuck McRae for his 1995 drunk driving arrest.

There is no timetable for the tribunal to make a decision on the suspension, Brantley said.

"The purpose of the commission's recommendation for an interim suspension is to preserve the integrity and the public's confidence in the integrity of our judicial system," Brantley said.

Gov. Ronnie Musgrove appointed Diaz, 43, of Biloxi, to the Supreme Court in 2000, filling a vacancy left by the death of Justice Michael Sullivan. The next year, Diaz was elected to an eight-year term.

"Of course, that tribunal is looking at fitness to serve on the bench more so than deciding guilt and innocence," Marty Wiseman, director of the Stennis Institute of Government at Mississippi State University, said Tuesday.

"I can't imagine that the political agenda that brought the accusations would enter too much into the deliberations of this tribunal as they were determining Oliver Diaz's fitness to serve on the bench," Wiseman said.

Less than a year after allegedly receiving a $40,000 campaign loan guarantee from a tobacco lawyer, Mississippi Supreme Court Chief Justice Ed Pittman sided with tobacco lawyers in two important decisions.

The lawyer who guaranteed the loan, Paul Minor, reportedly earned $71 million when the state's landmark lawsuit against big tobacco companies was settled. The settlement was negotiated after the high court dismissed challenges by then-Gov. Kirk Fordice and the tobacco companies about whether Attorney General Mike Moore had the authority to file the case.

Fordice claimed that the tobacco suit was just a way to thicken the wallets of trial lawyers. Moore countered that Fordice was a puppet of tobacco companies and well-heeled lobbyists. The verbal jibes between the two men eventually ended up in court.

The loan, which had not been disclosed on campaign finance reports, came to light due to media coverage of an ongoing federal probe into alleged state judicial corruption. The Clarion-Ledger newspaper of Jackson has reported that Minor guaranteed a $40,000 campaign loan in 1996 for Pittman's re-election campaign to the high court. Pittman's campaign paid off about half of the $40,000, but Minor wound up paying off the remainder, the newspaper said.

Pittman, who has not been accused of any crime in an ongoing federal probe of the state judiciary, also voted on several cases involving monetary awards for clients of Minor. Justice Oliver Diaz Jr., who has recused himself from voting on Supreme Court cases involving Minor, was indicted last month on multiple charges of bribery and fraud. Minor also guaranteed and paid off loans for Diaz.

"I don't think either one of them (Diaz or Pittman) violated federal law, and I don't understand why Oliver Diaz is being prosecuted here," said Robert McDuff, the lawyer representing Diaz.

U.S. Attorney Dunn Lampton and Nancy Newcomb, senior trial attorney for the public integrity section of the U.S. Department of Justice, declined to answer questions about Pittman or Diaz.

Minor, Diaz and his former wife, Jennifer, and two lower court judges were indicted July 25 on multiple bribery and fraud charges. Minor was charged with a separate count of racketeering. All have pleaded not guilty.

The tobacco lawsuit, filed in Jackson Chancery Court in 1994, became a source of contention between Fordice and Moore. Moore used private lawyers to pay for and litigate the case on behalf of the state's Medicaid clients.

In 1996, the tobacco companies appealed to the state Supreme Court, asking it to decide whether Moore could sue for loss of Medicaid money without the approval of Fordice.

Fordice filed a separate Supreme Court suit against Moore, asking the same question.

The court voted 6-1 to dismiss the appeal and allow the lower court to make a decision regarding Moore's standing to bring the case. Pittman voted with the majority, with two justices not participating. The court voted 7-0 in the Fordice case, with two justices again not participating.

Records provided Monday by the state Supreme Court show Minor was not listed as an "interested person" in one of the two appeals. Judges use such lists to decide whether they have any conflict that requires them to withdraw from the case.

"At the time, we thought the decision was very important," said Philip Gaines, a lawyer who represented Fordice. "It basically was the legal maneuver that the governor used to try to stop Mississippi's lawsuit against the tobacco companies. When we lost that case, no further legal action was taken by the governor. We accepted that as our loss."

Both decisions were issued on March 13, 1997. News of the decisions resulted in a drop in tobacco company stock prices. Less than three months after the high court's decisions, lawyers for the tobacco companies approached Moore and lawyer Richard "Dickie" Scruggs, who led the litigation against Big Tobacco, about reaching a settlement agreement. The case was settled in July 1997.

In a written statement released by one of his spokespersons on Monday, Scruggs said, "I have no basis to comment on any purported transactions between Justice Pittman and Mr. Minor.

"With respect to the tobacco litigation, Justice Pittman was one of seven justices to vote for the State of Mississippi proceeding with the litigation. The opinion of the Mississippi Supreme Court authorizing the State of Mississippi to pursue the litigation was written by Justice James Smith, an appointee of then-Governor Kirk Fordice.

"As a result of the litigation going forward, the wrongdoings of the defendant tobacco companies were exposed. The litigation resulted in recovery for the taxpayers and children of Mississippi of $4.2 billion.

"Any attempt by (executive editor) Stan Tiner's Sun Herald to imply or suggest any impropriety by Justice Pittman with respect to this litigation is far-fetched and would be just another example of Tiner overreaching with The Sun Herald to manufacture stories to hype circulation."

Over the past several years, Pittman also voted in favor of Minor in other cases. In one case he reduced damages to one of Minor's clients in a personal injury case. Pittman voted with a 9-0 majority in a case that reversed a wrongful death suit for one of Minor's clients.

In 2002, Pittman sided with the majority in a 5-4 vote, which affirmed a $2 million jury verdict in a wrongful death case involving one of Minor's clients.

Diaz, who was indicted for his financial links to Minor, received loans from Minor during his 2000 re-election campaign to the Supreme Court. Diaz recused himself from Supreme Court cases involving Minor with the exception of a case involving Minor's father, political columnist Bill Minor. Diaz voted with an 8-0 majority in the case, in favor of Minor's father.

But Diaz did vote on a decision to uphold a $2 million financial award in a wrongful death lawsuit for a client of Minor's as a judge on the Court of Appeals.

Jim Neal, Minor's lawyer, said he had no comment about the loan or the tobacco case.

Pittman is on vacation and could not be reached for comment. But a spokesperson for the court said Friday that federal authorities were aware of Minor's loan.

"Both federal authorities and the court have information and some knowledge about these matters," said Beverly Pettigrew Kraft, the spokesperson for the court. "I've talked to Chief Justice Pittman and he said it would inappropriate for him to discuss the subject matter in that it might interfere with the defense of Justice Diaz or the prosecution by the U.S. Attorney."

Minor loaned Pittman the money before campaign laws were changed in 1999 to place a $5,000 cap on individual donations.

Pittman has never filed a campaign finance report with the secretary of state disclosing the loan guarantee from Minor.

Supreme Court Justice Oliver Diaz Jr. and his former wife, Jennifer Diaz, want separate trials from two former lower court judges who were indicted along with the Diazes for allegedly receiving bribes.

Former Circuit Judge John Whitfield also has asked to be tried separately, but for different reasons.

Lawyers for the Diazes filed a motion this week in federal court saying it would be prejudicial for a jury to also hear evidence against Whitfield and former Chancery Court Judge Wes Teel. The evidence against the Diazes is "much weaker" than the evidence against Whitfield and Teel, according to the motion filed by lawyers Robert McDuff and Jim Kitchens.

Justice Diaz is represented by McDuff, while Jennifer Diaz is represented by Kitchens.

The facts of the case against the Diazes are "vastly different" from the case against Whitfield and Teel, the lawyers said in their joint motion. Trying all of the judges at the same time "creates a danger that the jury will lump all of them together and conclude that any improper motives of one were shared by all," the lawyers said.

Federal prosecutors indicted the Diazes, Whitfield and Teel along with prominent trial lawyer Paul Minor on July 25 on a host of bribery and fraud charges. Federal prosecutors believe that Minor, who also was charged with racketeering, paid off campaign and other loans for the three judges in exchange for favorable rulings in court.

All five of the defendants have pleaded not guilty.

U.S. Attorney Dunn Lampton declined to say whether prosecutors would oppose a separate trial for any of the defendants. A hearing has been set for Sept. 22 before U.S. District Judge Henry Wingate. The trial is scheduled to begin Oct. 6, but continuances could be granted.

Whitfield wants to move the trial from Jackson to the Coast and is opposing a request to delay the trial. Michael Crosby, Whitfield's lawyer, said he had a different strategy from the other defendants and that a separate trial would make it easier for a jury to follow the evidence.

"We want a trial as soon as possible," Whitfield said. "We're not going to give up our right to have a speedy trial. We don't need half a year."

The motion filed on behalf of the Diazes points out that the lower court judges had the sole discretion to decide cases, an authority that Justice Diaz lacked. As an appellate judge, Diaz could have voted on cases that Minor had before the Supreme Court, but he chose to recuse himself.

"It makes little sense for the federal government to accuse (Justice Diaz) of favoring Minor in the Supreme Court when he never ruled on any of Minor's cases there," the motion states. "It makes even less sense to accuse Jennifer Diaz, who had nothing to do with any judicial decisions."

Jennifer Diaz, who owns and operates a bed and breakfast, is not a lawyer.

Whitfield and Teel heard cases involving Minor after accepting campaign contributions from Minor, according to the indictment.

The charges against Justice Diaz stem from three cases named in the July 25 indictment.

In the first, Diaz participated in a Court of Appeals decision before he was appointed to the state's highest court. He voted with the majority in a 5-4 decision in the Accu-Fab & Construction Inc. v. Beverly Ladner case. The decision favored Ladner, who was a client of Minor's. However, Diaz recused himself when the case was later appealed to the Supreme Court, the motion points out.

The second case named in the federal indictment is Archie Marks v. Diamond Offshore Management Co., but the indictment does not specify why this case is mentioned in context with Diaz. McDuff points out that Diaz again recused himself from voting as a Supreme Court justice.

The third case is a libel lawsuit against Minor's father, columnist Bill Minor. The indictment alleges that Paul Minor arranged for money to be loaned to Justice Diaz's election campaign on the same day a notice of appeal was filed with the Supreme Court. Jennifer Diaz allegedly accepted the money and forwarded it to the campaign.

Justice Diaz did not recuse himself from the decision involving Bill Minor. He voted with a unanimous Supreme Court in favor of the columnist. In the motion, McDuff and Kitchens point out that Paul Minor was not an attorney on the case.

"There is nothing to indicate that Justice Diaz voted any differently than he would if he had never met Paul Minor," the motion states.

BILOXI - An early morning fire at former Judge John Whitfield's law office destroyed some documents that he was preparing to use in his defense of federal fraud and bribery charges, his attorney said.

Biloxi Police officers were summoned to Whitfield's Lameuse Street office shortly before 4 a.m. Monday in response to a burglar alarm. The officers found flames coming out of one of the doors of Whitfield's office. Only one room in the house-turned-office was damaged by fire.

The fire was out by 4:30 a.m., said Biloxi Fire Chief David Roberts.

The cause of the fire is still under investigation, Roberts said.

Damage was estimated between $15,000 to $20,000.

Whitfield was indicted July 25 on a series of bribery and fraud charges stemming from an investigation into judicial corruption. Federal prosecutors believe lawyer Paul Minor paid off campaign and other loans for Whitfield, a former Circuit Court judge, in exchange for favorable treatment in court. A state Supreme Court judge and his wife and a former Coast chancery judge also were charged.

All five have pleaded innocent.

Whitfield's lawyer Michael Crosby said he has copies of many of the documents that were in the secretary's office that was destroyed.

BILOXI - Investigators search for evidence at the law office of former Coast Circuit Judge John Whitfield in Biloxi on Monday morning. Whitfield's lawyer says arson is suspected.

An early morning fire at former Judge John Whitfield's law office may have destroyed some documents he was preparing to use in his defense of federal fraud and bribery charges, his lawyer said.

Authorities said the fire remains under investigation, but a private fire investigator hired by Whitfield concluded it was arson.

Biloxi police officers were called to the former Circuit Court judge's Lameuse Street office shortly before 4 a.m. Monday after the office burglar alarm went off. Officers found flames coming out a door. Only one room in the house-turned-office was damaged by the fire.

The fire was extinguished by 4:30 a.m., Biloxi Fire Chief David Roberts said.

Damage was estimated at $15,000 to $20,000, Roberts said.

Whitfield leased the tan one-story house from the Swetman family, who own Swetman Security, adjacent to Whitfield's office.

Whitfield was indicted July 25 on bribery and fraud charges. Federal prosecutors believe lawyer Paul Minor paid off campaign and other loans for Whitfield, a Coast Circuit Court judge until 2000, in exchange for favorable treatment in court. A state Supreme Court judge, his ex-wife, and a former Coast chancery judge also were charged. Minor faces a separate charge of racketeering.

All five have pleaded innocent.

Whitfield's lawyer, Michael Crosby, said he has copies of many of the documents that may have been destroyed in the secretary's office. Crosby said Monday's fire may be a tactic to thwart Whitfield's defense of the federal charges or other litigation, although he didn't say who might be behind it.

"If someone thinks this is going to stop us from fighting this federal indictment or any... lawsuit, then they don't know John Whitfield," Crosby said.

Crosby said private insurance investigator Gary Jones determined within about 15 minutes that the fire was intentionally set. Jones is a former law enforcement investigator, he said.

"How is a fire going to start outside a building, near the main gas line?" Crosby said. "Three more minutes and it would have been gone."

Roberts said he could not comment on the private investigator's findings but said the cause of the fire was still being determined.

"We're going to wait until we get results of some samples," he said. Roberts said he could not elaborate on what investigators were testing.

If it is determined to be arson, he said, the Fire Department and police investigators would take over the investigation.

Roberts said fire investigators were at the scene all day Monday.

The fire couldn't have come at a worse time for Whitfield. Besides trying to fight the fraud and bribery charges, he also is in a legal battle with Grand Casino and its parent company, Park Place Entertainment. Grand Casino filed a motion two weeks ago to have a case about a disputed jackpot, over which Whitfield presided, reheard.

Grand Casino contends in court documents that Whitfield tried to get then-casino executive Tom Brosig to pay off his campaign debt during the course of the trial. Whitfield eventually ruled against the casino. The state Supreme Court later affirmed Whitfield's decision. The casino case was not mentioned in the federal indictment. But the casino lawsuit was one of a half dozen that federal investigators subpoenaed from the Supreme Court.

Whitfield sued Grand Casino and others on Friday for $600 million for alleged libel and slander and said the charges made by the casino in court documents were false.

Whitfield watched from the parking lot of the Biloxi courthouse, where he once heard cases as a judge, as fire investigators combed through the debris early Monday morning. A burned office chair and desk and other debris were piled on the front porch. He declined to comment, referring all questions to Crosby, who was also at the scene.

BILOXI - The attorneys for Justice Oliver Diaz Jr. and his former wife, Jennifer Diaz, accused the government of "trying to build a prosecution based on unfounded speculation and innuendo" in court papers filed Wednesday.

The Diazes, who were indicted last summer on federal fraud and bribery charges, are scheduled for trial March 1 along with three co-defendants. Paul Minor, a successful lawyer, is accused in the indictment of receiving preferential treatment from judges in exchange for financial favors. Two former lower court judges, John Whitfield and Wes Teel, also are accused of fraud and bribery.

All five defendants have pleaded innocent.

The reply brief filed Wednesday was in response to the government's opposition to a Dec. 5 motion that defense attorneys filed to strike language in the indictment. Lawyers have said allegations in the indictment are prejudicial and would prevent the defendants from having a fair trial.

U.S. Attorney Dunn Lampton was unavailable for comment on Wednesday, but his team of prosecutors filed papers in December to back up assertions made in the indictment. The government has alleged that Diaz benefitted from Minor through campaign contributions, campaign loans and the use of a condominium.

The brief filed on Wednesday by Robert B. McDuff, the attorney for Justice Diaz, and James W. Kitchens, the attorney for Jennifer Diaz, contends that the indictment fails to connect judicial decisions to any alleged favors. They point out that Diaz, as a Supreme Court justice, recused himself from cases involving Minor.

"Accordingly, the allegation that this assistance caused Justice Diaz to give Mr. Minor or his clients an unfair advantage in cases before the court is ludicrous," the lawyers wrote. "(Of course, Jennifer Diaz had no role in the Supreme Court decisions, and the allegation that she somehow was involved in favoring Minor in court decisions is even more ridiculous.)"

Jennifer Diaz owns Green Oaks LLC, a Biloxi bed and breakfast, which received checks from Minor and other lawyers, according to the July indictment.

The lawyers also use timelines to challenge a government allegation about a vote Diaz made when he was on the Court of Appeals. McDuff and Kitchens said the government had not explained how a $25,000 loan guaranteed by Minor in 1994 affected the 2000 decision by the Court of Appeals.

They object to the use of the adjective "trial" before the word lawyer in the indictment. U.S. District Judge Henry Wingate will decide whether the indictment as it is written should stand.