By Jeremy Peppas
Stephens Media

LITTLE ROCK — The FBI snared two North Little Rock aldermen in a probe launched after an informant told agents of a gambling operation run by a reputed mobster from Cabot involving public officials, the agency’s public corruption chief told a federal magistrate today.

The testimony came during a hearing on motions by North Little Rock alderman Sam Baggett and former city council colleague Cary Gaines to suppress evidence against them gathered in FBI wiretaps targeting George Wylie Thompson.

Baggett and Gaines are charged with Thompson in a wide-ranging indictment that includes allegations of a kickback scheme involving North Little Rock public works projects and illegal weapons dealing.

Lawyers for Baggett and Gaines contend federal agents illegally intercepted conversations involving their clients through wiretaps aimed at Thompson, whom the government says is a member of the New York Mafia. They contend agents intercepted phone conversations involving Baggett and Gaines well before a judge authorized wiretaps of Gaines.

U.S. Magistrate David Young did not rule on the motions Tuesday. His decision, which could come within 30 days, is key because evidence gleaned from the wiretaps form the foundation of the government’s cases against Baggett and Gaines.

At today’s hearing, FBI agent Carrie Land, in charge of public corruption investigations in Arkansas, testified for nearly an hour about the investigation of Thompson. Gaines lawyer Chuck Banks of Little Rock called her as his only witness.

The probe began in 2007, Land said, when a cooperating witness, identified in court filings as former Blytheville police officer Thomas Charles Warren, informed FBI’s Little Rock office of Thompson’s alleged gambling operation and how it involved public officials.

She said Warren did not identify Gaines as one of those officials, and that his information on other elected officials turned out to be false. Warren initially gambled with Thompson, then began working for him collecting gambling debts, according to Land.

Based on the information Warren provided, agents began their investigation, and “in the beginning it was just George Thompson, then various other people interjected themselves,” Land said.

In court filings, defense attorneys suggested Warren was unreliable and had a criminal history that caused him to leave law enforcement. The city of Blytheville said otherwise.
“He left on his own accord,” Blytheville personnel director Judy Andrews told Stephens Media last week. “I don’t see anything negative.”

At today’s hearing, Land repeated prosecutors’ assertion that Gaines’ drew attention to himself.

“He placed a bet with Thompson early on,” Land said. “He was gambling first.”

Prosecutors say electronic surveillance caught Gaines placing a bet with Thompson on a college football bowl game on Dec. 20, 2008. Two days later, according to prosecutors, Thompson called Gaines about getting a no-bid contract on city construction projects for another Cabot resident, Paul Mayfield, identified in court papers as a cooperating witness in the case.

Agents discovered more wrongdoing as further wiretaps were authorized and more calls were intercepted, Land said.

“Mr. Baggett began selling guns, and he got scrutiny,” she said.

Baggett also drew interest because he received a $500 campaign donation from Thompson in 2008 through the Arkansas Karate Association, the same organization Land said Thompson used to handle his banking and financial records.

A judge approved a wiretap of Gaines in February 2009. No wiretap of Baggett was ever approved. All of the government’s wiretap evidence against him came from electronic surveillance of Thompson’s conversations with the alderman.

Gaines faces two counts. He is accused of involvement in a kickback scheme related to city public works projects and of lying to the FBI about his dealings with Thompson.
Baggett faces six counts, including accusations that the former licensed weapons dealer knowingly sold guns and ammunition to a convicted felon, Thompson.

Thompson faces a wide range of charges – from gambling to drug trafficking to marriage fraud – in addition to the public corruption and weapons counts.

Baggett and Thompson are scheduled to be tried together Dec. 7. Thompson will be tried with Gaines later.