According to Contract Review Committee documents posted to the Alabama legislature's website, the $775,000 spent in pursuit of Alabama One encompasses the following:

$75,000 for Montgomery, Ala.-based attorney David Martin, $75,000 for Montgomery-based attorney James Douglas McElvy, and another $25,000 for Martin for litigation defense of the ACUA and former ACUA Administrator Larry Morgan;
$50,000 for Enterprise, Ala.-based accounting firm Carr Riggs & Ingram LLC, for "reviewing loan files/relationships within an agreed upon scope for credit quality, loan risk rating, adherence to the credit union's lending policies and critical loan documentation";
$250,000 for Atlanta-based law firm Bryan Cave LLP, for "filing an administrative action against a credit union for violating a Memorandum of Understanding issued by the Administration," which "will likely draw litigation";
$300,000 for Tuscaloosa-based law firm Reynolds Reynolds & Little LLC for representing the ACUA "in both administrative action and potential circuit court action."

While a number of events led to the credit union's filing of the federal lawsuit, Carruth said a major motivator was the fact that earlier in June, it came to light that Morgan, who called for the suspension of Carruth and three other Alabama One employees in February 2014, testified in court that he did so for no apparent reason. Morgan also testified that it was not his decision to suspend the employees, and that the suspension letters were in fact copies of memos sent by Smyth to Sen. Allen, according to the suit.

Instant Insights /

Alabama One CEO Discusses State Government Conspiracy

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