Executive's plea may aid Smyrna firm
Owner of design, engineering company pleads guilty in illegal-contributions case.


The Atlanta Journal-Constitution
Published on: 08/13/08

Over two decades, Smyrna businessman Robert Moultrie built a design and engineering firm that started with five employees and grew to a $440 million-a-year operation.

On Monday, Moultrie did something that probably enhances the Facility Group's survival —- he pleaded guilty to a felony charge.

Moultrie will get a reduced sentence by pleading guilty to making illegal campaign donations. And his plea may prevent a devastating blow to the politically connected firm that oversees a host of public construction projects, locally and internationally. It has doubled in size since 2006.

Under a plea agreement, felony charges against the Facility Group will be dropped. It also means, observers say, that the firm could again have a chance to do government work.

"This is a positive outcome for the company —- and the employees who depend on it," said former U.S. attorney Joe Whitley, an Atlanta lawyer who is not involved in the case. "A conviction could very well have put the company out of business."

A company spokesman declined comment Tuesday.

Moultrie pleaded guilty Monday in Oxford, Miss., to giving an illegal gratuity to the re-election campaign of then-Miss. Gov. Ronnie Musgrove in 2003.

Two co-defendants, chief operating officer Nixon Cawood and executive vice president Charles K. Morehead, are also expected to enter guilty pleas soon, Morehead's Atlanta lawyer, Jerry Froelich, said Tuesday. Cawood's attorney, Craig Gillen of Atlanta, said he was headed to Mississippi and declined further comment.

"Obviously, it's unfortunate for the individuals," said one of the company's lawyers, Richard Deane of Atlanta. "The company is now able to try to go forward without the stigma of either a charge or a conviction."

Musgrove, a Democrat currently running for U.S. Senate, has not been charged.

Moultrie, 67, is expected to be sentenced within two months. The agreement says federal sentencing guidelines call for a 12- to 18-month prison term. U.S. District Judge Mike Mills will have the final say on how long Moultrie must serve.

Moultrie was scheduled to go to trial on Aug. 25. He faced a 16-count indictment, which was dismissed as part of the plea.

The March indictment included allegations of conspiracy by company officials to "influence and reward" a public figure, and sent shock waves through Georgia political circles. The firm had spent tens of thousands of dollars in campaign contributions to local, state and national candidates.

State Rep. Earl Ehrhart (R-Powder Springs), chairman of the powerful House Rules Committee, served as a Facility Group marketing executive. He left the firm shortly after the indictment. He could not be reached Tuesday.

The company opened in 1986. By 2008, Facility Group had nearly 450 employees overseeing construction of jails, schools, courthouses and industrial plants.

Moultrie held political fund-raisers and high-end charity benefits at his lavish home in south Cobb County. He wielded credibility and influence, aided by well-connected friends.

In 1998, the Facility Group began a 10-year relationship with Cobb County schools, managing more than $1 billion in projects. The company's work building the $33 million jail in Cherokee County so impressed Sheriff Roger Garrison that he endorsed the company on its Web site.

The Facility Group sometimes seemed to overcome daunting odds in obtaining business.

Last year, in bidding to design the new Chatham County jail, the Facility Group was ranked third by a selection committee. But the sheriff backed the Facility Group, and commissioners immediately hired the firm.

Commissioner Patrick Shay, an architect, cast the only "no" vote, later saying it would be "hypocritical" to ignore those recommendations.

On Tuesday, Shay said Moultrie's plea has tarnished the Facility Group's reputation and darkened its future.

"I'd suggest they rebrand all aspects —- a new name, change their culture," he said. "Elected officials like me, given a choice, it'd be difficult not to go with the other guy. When you hire a professional, that relationship is based on trust."

Moultrie admitted making illegal campaign contributions to Musgrove's campaign with the intent to win influence over the design and construction of the ill-fated Mississippi Beef Processors project.

In March 2003, when the plant already was over budget and behind schedule, Mississippi officials turned to Facility Construction Management, a division of the Facility Group, to manage the plant to completion. Moultrie soon planned a fund-raiser at his home for Musgrove, and several company employees were invited to attend and donate $1,000 each. The July 23, 2003, event raised about $50,000, and the employees were reimbursed for their donations, prosecutors said.

Moultrie also created The Facility Group Political Action Committee, which gave $20,000 to Musgrove's campaign. But in September 2003, Musgrove asked for another $25,000, prosecutors said.

"Moultrie and Cawood subsequently had a conversation about giving this contribution to Musgrove intending to influence and reward him," should his assistance be needed later for any potential problems at the project, prosecutors said.

On Sept. 30, 2003, the PAC gave another $20,000.

In August 2004, the beef processing plant opened for business. But the plant closed three months later.

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