Ronnie Gilley says he turned to McGregor out of desperation

MONTGOMERY – On the brink of seeing his life savings — and millions in loan obligations — dissolve with the implosion of Country Crossing, developer Ronnie Gilley testified Wednesday he took money from Milton McGregor and formed an alliance with the casino owner to buy pro-gambling votes in the Alabama Legislature.

“We were in dire straits and severe financial trouble,” Gilley said Wednesday during testimony in the gambling corruption retrial.

Gilley said threats of raids by then-Gov. Bob Riley’s Task Force on Illegal Gambling made it “next to impossible” to secure funding from private investors or banks for the Country Crossing development in Houston County. Gilley said McGregor, who owned the VictoryLand casino in Macon County, initially opposed Country Crossing. Gilley said McGregor told him the opening of Country Crossing would cut into VictoryLand’s profits by 22 percent.

However, Gilley said he had a meeting with McGregor in Montgomery in December of 2008 and the two agreed to work together. Gilley said they both agreed that legislation paving the way for legalized electronic bingo was “vital” to their survival. Gilley said McGregor loaned him several million dollars to kick-start a public relations/political campaign to promote the legislation. Gilley said he and McGregor also agreed the money could be used to buy votes, if necessary. In exchange, Gilley said McGregor would receive 14 percent of Country Crossing’s gross profits.

Prosecutors introduced a written agreement between Gilley and McGregor executed in January of 2009. The agreement only stated that money would be used for construction, marketing and public relations efforts.

“Why was it not specified, in the agreement, everything that you and Mr. McGregor agreed the money would be used for?” U.S. Attorney Kendall Day asked Gilley during testimony.

“Part of it was, obviously, that some of the money was being spent illegally,” Gilley replied.

Gilley testified further that he and McGregor, along with lobbyist Jarrod Massey and others, targeted specific legislators whose votes could be bought.

Prosecutors also played a recording of a conversation Gilley had with Massey in which Gilley suggested lobbyist Jennifer Pouncy use a part of her anatomy to persuade then-Sen. Jim Preuitt to vote for pro-gambling legislation.

“What do you have to say about that?” Day asked.

“I’m ashamed of myself,” said Gilley, who went on to apologize to the courtroom, Pouncy, Preuitt and his wife. During the first trial, attorney for McGregor used the recording during their cross examination of Gilley.

Gilley also reiterated testimony from the first trial that Country Crossing took in $18 million during its grand opening weekend in December of 2009. Gilley said the $18 million was not profit, but total money taken in before winners were paid.

Gilley is expected to be under direct examination by Day for most of Thursday.