WBR malfeasance trial involving two brothers at State Fire Marshal continues into day two
PORT ALLEN - Day two of the trial of the two brothers accused of money laundering in West Baton Rouge resumed Wednesday. Robert McCormick and Thomas McCormick are accused of pocketing more $800,000 from the Office of the State Fire Marshal using statewide emergencies as covers to do so.
While the trial was slated to start at 9 a.m., it began late as the defendants parked their RV in front of the courthouse and were made to move it.
On Wednesday, Thomas Horne, who works with the Louisiana Legislative Auditor as a forensic accountant and fraud examiner gave testimony. The trial looked at bank documents, credit card purchases, invoices, and checks.
Horne said there was enough evidence to show the brothers were making money by having the Office of the State Fire Marshal enter purchase orders with certain companies for certain emergency items and then having those companies go somewhere else to get the goods or subcontract the services at a cheaper price. Those companies then made checks or payments to the McCormick Law Firm, many payments titled "legal fees."
Horne said he was unable to find evidence that legal services were dispensed. Horne said the evidence suggested the difference in the amount the Office of the State Fire Marshal spent and the actual cost appeared to make its way to bank accounts owned by the brothers, adding the situation looked like a pass-through scheme.
"This may have been used as a mechanism to transfer money to McCormick Law Firm," Horne said. "We did find evidence this might be indicative of a pass-through scheme."
Those goods and services included water bottles, portable bathrooms, building leases, and catering orders. In the case of Hurricane Laura, Horne said the Office of the State Fire Marshal paid a 170-percent mark-up on essential items like paper towels, toilet paper, and water. The state wrapped its questioning of Horne Wednesday.
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The defense started the cross examination, asking whether the legislative auditors were making assumptions on the nature of McCormick brothers' bank statements and said the brothers had their bank accounts linked for year and at the end of the day, Robert McCormick was just trying to do his job with the Office of the State Fire Marshal.
When asked, the defense team declined to comment. Assistant District Attorney Lonny Guidroz provided a statement to WBRZ, writing:
"The trial is ongoing, and the District Attorney's Office will continue to put on evidence to prove The McCormick Brothers committed financial crimes. We will not belabor the process. Our case is strong, and we will seek swift justice for the citizens of this state as we have always done."
The trial continues Thursday.