Chris Epps, Cecil McCrory plead guilty to corruption

Former Mississippi Corrections Commissioner Chris Epps pleaded guilty to two federal charges Wednesday — and officials talked of more indictments in the continuing investigation.

"I'm sorry for what I've done," Epps told U.S. District Judge Henry T. Wingate. "I've repented before God. I apologize to my family and the state of Mississippi."

He first met Cecil McCrory in 1997 when he was serving in the Mississippi Legislature. "He gave me gratuities," said Epps, who was working for the state Department of Corrections but was not yet commissioner.

In 2008, after McCrory sold GT Enterprises and Epps gave McCrory a favorable recommendation, McCrory sent $200,000 in payments to pay off the mortgage that Epps had on his 3,800-square-foot home in Flowood with a $360,000 price tag, Epps said.

McCrory, who also pleaded guilty Wednesday, said Epps was the one who approached him about paying off the Flowood home. "He talked me into making that first payment," he told the judge. "It's something I never thought I would do, but I can't take it back."

Assistant U.S. Attorney Mike Hurst of Jackson described how Epps used that home equity to take out a loan for a condominium in Biloxi. After McCrory paid off that condo, Epps used that equity to get a bigger condominium in Pass Christian.

Epps, who was originally indicted on 40 counts of bribery, money laundering, conspiracy and tax charges, also pleaded guilty to filing a false tax return for tax year 2008. Epps pled guilty to telling the IRS he earned only $205,540 when he actually received at least $405,540.

McCrory pleaded guilty Wednesday to being a part of the same money laundering conspiracy. If Epps had not pleaded, McCrory would have been a witness against him.

McCrory told the judge that he had received $2 million directly from the state Department of Corrections and another $3 million as a consultant for other companies.

He agreed to forfeit $1.2 million in cash, plus condominiums and a 2013 Chevy Avalanche to federal officials.

Epps' sentencing is set for June 9, and McCrory is set to be sentenced June 10.

Under the counts he pleaded guilty to, Epps faces up to 23 years in prison and $750,000 in fines. McCrory faces up to 20 years in prison and $500,000 in fines.

State Auditor Stacey Pickering said Wednesday that the guilty pleas are "another testament to the strength of this case and state, federal and local officials working together."

The pleas are "just the second step in a very high-profile, very ugly chapter in Mississippi history" and he expects the case, which the FBI dubbed the "Mississippi Hustle," will continue."I would not be surprised to see other indictments and other charges come forward, and other individuals involved," he said.

Gov. Phil Bryant has appointed a task force to study state government contracts, especially no-bid contracts.

He said he appreciated the U.S. Attorney's Office and the Office of the State Auditor for "vigorously prosecuting this case, and I hope it serves as an example that there are consequences for public corruption. As former state auditor, I will not tolerate corruption at any level, and I am continuing to work with the Legislature to implement meaningful reform to the state contracting process."

Federal prosecutors laid out a scheme in which they said Epps received about $2 million in bribes and kickbacks over the last eight years in exchange for hundreds of millions of dollars in prison contracts. He resigned his $132,700 a year government job in November just before his indictment.

McCrory was also indicted at the same time, on 15 counts. He is accused of bribing Epps and raking in cash from sweetheart contracts and consulting fees. He resigned the school board a few days before Epps.

When the FBI arrested Epps, agents found $69,600 in cash in his safe. There was also about $1 million in his investment-retirement account, prosecutors said.

Epps agreed Wednesday to forfeit all that money, along with his Flowood home, his Pass Christian condo and two Mercedes-Benz cars.