Re: Indictment in ethanol plant scam

Posted by Paul Chesser at 12:50 PM

So, Boyce Allen Hudson had his hearing today in federal court where he pleaded guilty to corruption charges. And who, it turns out, did Hudson end up taking his $15,000 payment (that was supposed to be just part of a bigger payoff) from?

The answer is: A federal agent posing as an official representing Agri-Ethanol Products, the company that sought Hudson's help in getting expedited environmental permits for their ethanol plant project.

I really know nothing about how the feds operate, but I can't imagine the FBI would go to this level of effort to only consume small potatoes like Hudson. Are there bigger things to come?

Update, 1:20 p.m.:

The News & Observer's account of Hudson's court plea is up:

Investors and officials with Agri-Ethanol, a Raleigh-based company needed lots of cash to build a $220 million plant. They began bragging to investors that they had bribed a state environmental official who had helped them get a permit in 29 days.

One investor called federal investigators who eventually had an undercover FBI agent pay the official, Boyce Allen Hudson....

The dealings became a federal case when the company used its ties with Hudson to try to recruit investors.

(Judge Terrence) Boyle said he found it interesting that the company would brag about a bribe in a sales pitch.

"Is that the sort of thing you want to put in a prospectus?" Boyle asked.

One investor wasn't impressed with the pitch and he called authorities, Bruce said.

Sounds like Rick Watson-ish behavior to me.

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