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FEDERAL BUREAU OF INVESTIGATION

Date of transcription 01/ 02/2008

BOBBY B. DELAUGHTER, white male, date of birth, February 28, 1954, Mississippi Driver's License Number, 800201794, Social Security Account Number, 587-18-8036, address, 45 Coopers Well Street, Raymond, Mississippi, 39154, employment, Mississippi Circuit Court Judge, Seventh District, was advised of the identity of the interviewing agent and of the purpose of the interview. Thereafter, he voluntarily provided the following information:

It should be noted that this interview was conducted in accordance to Rule 11 of the Rules of Criminal Procedure. A proffer agreement was executed and signed by Assistant United States Attorney (AUSA) ROBERT H. NORMAN, DELAUGHTER, and DELAUGHTER'S' attorney, CYNTHIA H. SPEETJENS.

Those present during the interview are as follows: First AUSA TOM DAWSON, AUSA DAVID SANDERS, AUSA NORMAN, Department of Justice, Public Integrity attorney, TIM KELLY, and STEWART. The interview took place at the United States Attorney's Office in Oxford, Mississippi.

DELAUGHTER graduated law school in 1977. He wanted to prosecute, but there were no openings. In December of 1977, he went to work for attorney ALVIN BINDER. BILL KIRKSEY was also working with BINDER at this time. In May of 1983, DELAUGHTER and KIRKSEY left BINDER and formed their own law firm. In May of 1987, DELAUGHTER left KIRKSEY and went to work for Hinds County, Mississippi District Attorney ED PETERS.

DELAUGHTER worked for PETERS for thirteen years. DELAUGHTER described PETERS as a combination of an .older brother and father figure. DELAUGHTER and PETERS would do anything for each other. The two men worked together on the prosecution of BYRON DELA BECKWITH. They still maintain contact and remain close friends.

DELAUGHTER first became a judge when he was appointed to be a county court jUdge by Mississippi Governor KIRK FOROleE in December of 1999. In the spring of 2002, BRELAND HILLBURN retired as a Mississippi Circuit Court Judge, Seventh District. In June of 2002, DELAUGHTER was appointed by Mississippi Governor RONNIE MUSGROVE to fill this position vacated by HILLBURN. In November of

Investigation 011 12/21/2007

ile # 194A-JN-32628

by SA John Quaka

Date dictated 01/02/2008

cr recommendations nor conclusions of the FBI. be distributed outside your agency.

It is the property of the FBI and is loaned to your agency; \ \Q

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2002, DELAUGHTER won the election to retain his seat on the Circuit Court. \

One of the cases that DELAUGHTER inherited from HILLBURN was the matter involving RICHARD "DICKIEIf SCRUGGS and ROBERT WILSON. WILSON and ALWYN LUCKEY had filed suit against SCRUGGS in 1994. The dispute was in regard to money that was owed to them from asbestos settlements.

WILSON was originally represented by MIKE ALLRED. He was later represented by VICKI SLATER and BILL KIRKSEY of Jackson, Mississippi.

SCRUGGS was represented by JACK DUNBAR, JOHN JONES, and STEVE FUNDERBURK. Some time in 2006, TIM BALDUCCI assisted with SCRUGGS' representation. JOEY LANGSTON also assisted, but his time of representation unclear,

When DELAUGHTER became involved in the WILSON/SCRUGGS matter, BOBBY SNEED was acting as Special Master for the case. SNEED had been appointed Special Master by HILLBURN. DELAUGHTER kept SNEED in place as Special Master. Prior to HILLBURN retiring, he had recommendations from SNEED. HILLBURN accepted SNEED's recommendations and signed orders enforcing them.

WILSON qppealed the orders. The case remained stagnant until May of 2005 because of the interlocutory appeal.

On December 29, 2005, DELAUGHTER rejected SNEED'S recommendation, to dismiss the breach of fiduciary claim.

Just before SCRUGGS filed a motion for partial summary judgement, DELAUGHTER was contacted by PETERS. PETERS told him that he had been contacted by LANGSTON. pgTERS told him that LANGSTON was going to represent SCRUGGS. SCRUGGS was not happy with DUNBAR and that LANGSTON was taking over the representation. PETERS asked DELAUGHTER how WILSON's attorney, KIRKSEY, was going to affect his rulings in this case. DELAUGHTER told PETERS that KIRKSEY I S involvement would not affect him" at all. PETERS said that he would tell LANGSTON that DELAUGHTER will not be influenced by KIRKSEY. PETERS told him that he is helping LANGSTON and may become more involved in the case at a later date. However, PETERS never did enter an appearance in the case.

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Once DELAUGHTER was contacted by PETERS about the SCRUGGS/WILSON matter, their communication increased. Most of the communication was by telephone. He stated that he talked to PETERS on more than three occasions as he had indicated to two female FBI Special Agents. He' did not purposefully mislead them.

In January of 2006, before DELAUGHTER ruled upon a motion that involved fiduciary duty, PETERS called him again. PETERS told him that LANGSTON could help him get the United States Magistrate position that was open in the United States Federal Court, Southern District of Mississippi. DELAUGHTER did not see how they could help because magistrates are screened by a committee. PELAUGHTER told PETERS that their help would be fine, but that there would be no "quid pro quo". PETERS did pass this message to LANGSTON.

PETERS told DELAUGHTER that LANGSTON would file a motion of fiduciary duty claim. After the motion was filed, DELAUGHTER ruled in WILSON's favor.

PETERS called DELAUGHTER and stated that LANGSTON did not understand his ruling. LANGSTON filed a motion for reconsideration. DELAUGHTER did not change his ruling.

In March of 2006, the magistrate position was filled. However, a United States District Court Judge, Southern District of Mississippi position became open.

PETERS often informed DELAUGHTER about motions that would be filed by LANGSTON. PETERS brought the copies of motions to DELAUGHTER to review before they were to be filed. PETERS did not ask DELAUGHTER to make any modifications to the motions.

DELAUGHTER stated that it was not normal business practice to see an advance copy of the motions. DELAUGHTER only did it because he was asked to by PETERS. He does not know if the motions were changed after he reviewed them and before they were filed.

DELAUGHTER does not remember making suggestions to any of the advance copies of the motions. However, he did send a draft of his opinion to PETERS in regard to the request by SCRUGGS for partial summary jUdgement. He did not send any of his research to PETERS for review.

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On March 6/ 2006/ CHIP REYNOLDS/ an employee of united States Senator TRENT LOTT came to DELAUGHTER's office. REYNOLDS asked DELAUGHTER suggestions in regard to his son's legal problems. He told REYNOLDS that he did not get the United States Magistrate position. REYNOLDS told him that he needed to send a letter and a resume to both Mississippi United States Senators.

A couple of weeks later/ DELAUGHTER received a telephone call from PETERS. PETERS told him that LANGSTON had said to expect a telephone call from Senator LOTT. PETERS called several people/ on behalf of DELAUGHTER/ to notify them of DELAUGHTER's interest in becoming a United States District Judge. STEVE PATTERSON had told PETERS that DELAUGHTER to telephone both Mississippi United States Senators to let them know that he was interested. DELAUGHTER did talk to Senator THAD COCHRAN. He also tried to call Senator LOTT.

On March 28th or 29th of 2006/ DELAUGHTER did receive a telephone call from Senator LOTT. LOTT said/ "My no good brother in law, Dickie, is here and said that you are a fine judge." LOTT asked him if he was interested in being a United States District Court Judge. He said that he was interested. LOTT stated that he could make no promises.

DELAUGHTER did not think to recuse himself from the case once he was contacted by PETERS. He stated that he ruled on all motions according to the law and not according to influence by PETERS. However, DELAUGHTER did state that he was glad this case did not go to trial because he probably would have sided with PETERS on the "grey" matters of the case.

DELAUGHTER stated that the original contract agreement between WILSON and SCRUGGS was poorly worded. However, SNEED had recommended that the contract was clear and unambiguous. DELAUGHTER agreed with this recommendation.

WILSON wanted adjudication to determine the specifics provisions of the contract and how they applied to the settlements recovered by ASBESTOS GROUP (AG). DELAUGHTER stated that this was a question of the law and not to be left to a jury. WILSON wanted this contract to be interpreted. This request was reviewed by SNEED.

The contract stated that WILSON would receive forty percent of all fees of existing settlements when WILSON departed

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from AG and ten percent on all other settlements. SNEED had recommended that certain settlements were modified or extended and therefore should be considered.

DELAUGHTER disagreed with SNEED. The contract only mentioned "existing settlements". DELAUGHTER stated that SCRUGGS and WILSON were both "savvy" individuals and should have known to write a more thorough document. DELAUGHTER thought SNEED was wrong in regard to the law.

In Mayor June of 2006, DELAUGHTER entertained a motion of quantification. Each party had expert accountants determine the money that was owed to WILSON. Each party tried to strike the other party's expert accountant. WILSON's accountant did not take into consideration past issues that SCRUGGS' accountant did.

In August of 2006, DELAUGHTER held a status conference. DELAUGHTER denied the partial summary judgement filed by SCRUGGS.

DELAUGHTER explained that punitive damages could not be considered unless there was a jury verdict for compensatory damages. If there is a verdict for the plaintiff, then the plaintiff would put on additional evidence. The judge makes the final decision to deliberate on punitive damages. The judge also determines if the punitive damages are proportional.

A day before or the day of trial, LANGSTON tendered a check to WILSON. LANGSTON stated that SCRUGGS had paid WILSON in full. He stated there were no longer any compensatory damages, thus no punitive damages. WILSON stated that SCRUGGS had no right to hold his money for ten or twelve years.

DELAUGHTER relied upon a May 2006, Mississippi Supreme Court case, BRADFIELD VS. SCHWARTZ, and agreed with SCRUGGS and said that there could be no jury verdict for punitive unless there was compensatory damages. However, he did agree that SCRUGGS could not hold WILSON's money for that period of time, and stated that attorney's fees are not part of compensatory damages.

Prior to the jury selection of the trial, DELAUGHTER did state that all that was left in the case was "bragging rights". He stated that the issues had been framed by applications of the law. DELAUGHTER adamantly stated that not all of his rulings were in favor of SCRUGGS. He stated that WILSON wanted the court to

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determine damage amounts. He did not understand why WILSON made this request.

On the day of trial, KIRKSEY performed the voir dire for WILSON. LANGSTON was to start the following day. On the second day of trial, SCRUGGS and· WILSON reached a confidential settlement in the case before him and in a cons.tructive trust case filed in federal court.

After the trial was over, DELAUGHTER telephoned SCRUGGS and asked for his help in getting a federal judgeship position. SCEUGGS said that he would help, but it was not related'to the favorable outcome of the case.

DELAUGHTER stated that he was not influenced by PETERS. He did not know that PETERS initially received fifty thousand dollars and nine hundred and fifty thousand dollars at a later date.

At the time, DELAUGHTER did not think that PETERS' and LANGSTON's help to receive a judgeship position was influencing, but looking back upon it now, he believes that PETERS and LANGSTON did attempt to influence him. DELAUGHTER agreed that a federal judgeship position is a thing of value.