Witnesses appear before federal grand jury in Tallahassee public corruption probe

Witnesses in Tallahassee’s long-running public corruption probe were summoned to the U.S. District Courthouse on Wednesday to testify before a federal grand jury.

It was a sure sign that the investigation didn't end with the guilty pleas of former City Commissioner Scott Maddox and former Downtown Improvement Authority Executive Director Paige Carter-Smith. The two pleaded guilty in August to fraud and tax evasion charges and may be cooperating with prosecutors to reduce their possible prison time.

Maddox and Carter-Smith are set to be sentenced Nov. 19, a couple of weeks after a third defendant, local businessman John “J.T.” Burnette, is scheduled to go on trial in the corruption case.

Among those spotted going into the courthouse were Gary Yordon, a one-time friend of Maddox and former employee of his Governance, Inc., firm; Melissa Oglesby, president of construction management firm KaiserKane, Inc., which had dealings with the Community Redevelopment Agency; and Trey Gardner, a vice president at G.M. Hill Engineering, former vice president at KaiserKane and a former business partner of Burnette.

The back story:

►The ABCs of a corruption case: Your guide to the businesses and people linked to Scott Maddox

►U.S. Attorney Larry Keefe comments on Scott Maddox, Paige Carter-Smith guilty pleas

►Prolific Tallahassee businessman J.T. Burnette indicted in FBI corruption investigation

Yordon, a political ad man, TV talk show host and former Leon County commissioner, acknowledged as he walked up the courthouse steps that he was appearing before the grand jury, which operates in secret. He was accompanied by his lawyer, Greg Noonan of Tallahassee.

“I’m a witness,” he said. “That’s all I can tell you. In my capacity as a witness, I’ve been asked not to discuss what I witnessed.”

Yordon walked out of the courthouse a couple of hours later, though he said his appearance before the grand jury was brief, perhaps only 20 minutes long.

“It was interesting,” said Yordon, who writes a regular column in the Tallahassee Democrat.

Oglesby and Gardner went into the courthouse with Jimmy Judkins, a well-known white-collar criminal defense attorney, who wouldn’t confirm whether his clients were appearing before the grand jury.

“I don’t remember what I’m here for,” Judkins told the Democrat.

Gardner, who co-owned the now-defunct Genghis Grill with Burnette and several others, didn’t say much as a photographer snapped his photo. “Be sure to get a good angle,” he said.

More coverage of the FBI probe:

►The Gateway Center that almost wasn't: Anatomy of a deal under FBI scrutiny

►311 E. Jennings labyrinth: Dizzying money trail for property at heart of FBI investigation

Witnesses in the corruption probe have been testifying off and on before the grand jury since at least last summer, when an executive with Waste Pro was seen going into the courthouse. The investigation itself dates back to the summer of 2015, when undercover FBI agents posing as businessmen and medical marijuana entrepreneurs began cozying up to Tallahassee’s political and business elite.

Maddox and Carter-Smith, the first to be charged in the investigation, were indicted in December on several dozen charges, including extortion and mail and wire fraud. They were accused of shaking down city vendors, including Uber and an FBI front company, for cash in exchange for official action. The three counts they pleaded guilty to carry a combined maximum prison term of 45 years in prison, though they could serve far less if they fully cooperate.

The extent of their cooperation remains a mystery. Court documents on the matter are sealed. U.S. Attorney Larry Keefe, during a news conference in August following Maddox and Carter-Smith’s sentencing, wouldn’t say whether they are cooperating. However, Keefe said at the time he hoped they would provide truthful information about their own case and any other criminal conduct outside it.

Back story:U.S. Attorney Larry Keefe launches Public Trust Unit to combat corruption

The FBI investigation became public in June 2017, when subpoenas hit City Hall demanding information about a number of prominent business people and their dealings with the city and the CRA. Among those named in the subpoenas and subsequent ones were Burnette, Oglesby and Yordon.

Yordon was listed, though not by name, in federal court documents that leaked early last year as a witness in the Maddox investigation. It was unclear whether Wednesday marked his first appearance before the grand jury.

Oglesby and Burnette were involved in development of the Gateway building at Tennessee and Monroe Streets, a project was pledged at least $1.4 million from the CRA. The building was touted as a key to creating an 18-hour downtown, but one of its major tenants, Walgreens, moved out in the fall of 2017, leaving the first-floor retail space empty ever since.

Back story:The Gateway Center that almost wasn't: Anatomy of a deal under FBI scrutiny

Contact Jeff Burlew at jburlew@tallahassee.com or follow @JeffBurlew on Twitter.