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Baton Rouge Daily

FINAL EDITION

Wednesday, June 13, 2012

50 CENTS

Holden a potential witness in Grace Trial

Kip Holden may have to testify in
court along with four other mayors
and former mayors.

By Bill Lodge

ast Baton Rouge Parish Mayor-President Kip Holden is one of approximately 70 witnesses who may testify during
the racketeering and fraud trial of former St.
Gabriel Mayor George L. Grace, a federal
judge said Monday.

Four other mayors or former mayors also
are included on that witness list, as are Louisiana Legislative Auditor Daryl G. Purpera
and former Legislative Auditor Steven J. Theriot. Also listed is Walter Monsour, president
and chief executive officer of the East Baton
Rouge Redevelopment Authority.

U.S. District Judge S. Maurice Hicks Jr.,
of Shreveport, did not tell 79 prospective jurors whether Holden, Purpera, Theriot, Monsour or any of the other possible witnesses
would testify for the prosecution or defense.
Hicks simply wanted to know whether members of the jury panel knew any of the people
who may be called to the witness stand during
the three-week trial.
Hicks volunteered to preside at the trial
after the death in July of Chief U.S. District
Judge Ralph E. Tyson left dozens of unfinished cases in Baton Rouge federal court.
Graces 2010 indictment alleges that he accepted more than $20,000 in cash and other
gifts from company executives wanting to do

By Bill Feig

Former St. Gabriel Mayor George Grace, right, enters the federal courthouse Monday in Baton Rouge for the opening of
his trial on racketeering and fraud charges in a FBI sting operation. Grace is accompanied by one of his attorneys, Rob
Marionneaux.

East Baton Rouge Parish Mayor-President

Kip Holden is one of approximately 70 witnesses who may testify during the racketeering and fraud trial of former St. Gabriel Mayor George L. Grace.
-Federal Judge

business in St. Gabriel.

Baton Rouge businessman Blaine Efferson is identified by Assistant U.S. Attorney
Corey R. Amundson in court filings as a busi-

nessman who will testify against Grace. Efferson, referred to in the indictment only as
B.E., is alleged to have paid Grace $7,500
at the then-mayors request as Effersons firm
received $450,000 from St. Gabriel for goods
and services.
Some of the other businessmen mentioned in the indictment actually were undercover FBI agents and an undercover operative
who allegedly paid Grace more than $13,500
in return for his promise of help in acquiring
Grace Trial, See A4

Romneys Federal Tax Returns Show 2-Year Income of $45 Million

By Michael D. Shear
Mitt Romneys campaign released details of
his federal tax returns on Tuesday morning, showing that he is likely to pay a total of $6.2 million
in taxes on $45 million in income over the two tax
years of 2010 and 2011.

The details of the returns, confirmed by a senior campaign official, provide the most detailed
view yet of his wealthy familys finances. The disclosure comes after a barrage of pressure to release
his returns which Mr. Romney has never done,
even when he was elected governor of Massachusetts.

The disclosure reported early Tuesday by
The Washington Post, The Wall Street Journal and
Bloomberg News showed a vast array of investments, from a recently closed Swiss bank account
to holdings in Bermuda and the Cayman Islands, all
underscoring the breadth and depth of his wealth,
which has become a central issue in his bid for the
Republican presidential nomination.

Mr. Romney said last week that his effective
tax rate was about 15 percent, a figure lower than
that of many affluent Americans. But his returns

WHATS INSIDE
Business........................................A9
Classified......................................
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Fun & Games..............................
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Horoscope....................................D4
Local.............................................A3
Nation & World...........................
B1
Obituaries....................................B2
Opinion........................................B3
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Television.....................................D4

suggested that he paid an effective tax rate of nearly

14 percent.

In addition to his 2010 taxes, Mr. Romney is
set to release estimates for his 2011 taxes, which
he will file in April. The campaign will report that
he will pay $3.2 million in taxes for 2011, for an
effective tax rate of 15.4 percent. That is a slightly
higher effective rate than he paid the year before,
when he paid about $3 million to the Internal Revenue Service.

Mr. Romney, a Mormon, has long said that he
had promised to give 10 percent of his income to
his church. His tax return shows that over two years
he and his wife, Ann, gave $7 million in charitable
contributions, including $4.1 million to the Church
of Jesus Christ of Latter-day Saints.
I pay all the taxes that are legally required
and not a dollar more, Mr. Romney said during
Monday nights debate. I dont think you want
someone as the candidate for president who pays
more taxes than he owes.

Mr. Romney also said that there were no sur
prises in his tax returns. Referring to the fact that
nearly all of his income is taxed as capital gains at

Presidential canditate Mitt Romney speaks to a crowd of

supporters about the details of his federal tax returns.

a 15 percent rate, rather than as earned income at

rates of up to 35 percent, Mr. Romney questioned
a proposal by Newt Gingrich, the former House
speaker, to reduce capital gains taxes to zero.
Romney, B2

Monaghan: Jindals
Plan Unfairly
Blames Teachers
By Will Sentell

The president of a state teachers
union said Monday that Gov. Bobby
Jindals public school agenda is confusing, troublesome and unfairly
blames teachers for classroom problems.
Steve Monaghan, president of
the Louisiana Federation of Teachers,
also said that Jindals comments last
week needlessly drive a wedge between the governor and some school
leaders.

He would have been a lot clearer if he had said less, Monaghan said
of Jindals public school plan, which
he unveiled on Jan. 17 in a 30-minute
speech.
Monaghan, whose group frequently clashes with Jindal over
public school policies, made his comments to the Press Club of Baton
Rouge.
Jindal last week called for
sweeping changes in how teachers
are paid and evaluated and for a major expansion of students who would
qualify for state aid to attend private
and parochial schools.
Monaghan said that while the
governor initially called teachers the
backbone of the states public school
system, Jindal later used an analogy
to claim that they enjoy lifetime job
Monaghan, See A8

First La. Chipotle to

open in BR

Burrito buffs and French fry fanatics rejoice a quick fix is headed
close to campus this summer.
The former Blockbuster near
the Universitys North Gates on West
State Street will soon be divided to
house a Five Guys Burgers and Fries
and Chipotle Mexican Grill, according to Austin Earhart, an agent with
Beau Box Commercial Real Estate.

Earhart said this will mark Chipotles first franchise in Louisiana.
The chain boasts more than 1,000 locations across the country, according
to the companys website.
There is currently one other
Five Guys restaurant in Baton Rouge,
located in Towne Center.

Earhart said lease development
was in the works for about two years
until contracts for both locations
were executed at the end of last year.

The restaurants will soon begin
construction, Earhart said.

I imagine theyll be moving in
Chipotle, See A3

Budget cuts threaten LSU medical clinic that serves BR area children
By Marsha Shuler
An LSU medical clinic that
serves about 5,000 Baton Rouge area
children is on the chopping block because of Jindal administration budget
cuts.

We are trying to identify other
providers who can absorb the patients, LSU System Vice President for
Health Care Fred Cerise said Monday. We will do our best to transfer
kids to other providers. We are having those conversations right now.

We want to make sure they dont have

gaps in care.

Cerise said LSU has been unable
to identify a source of funding that
would keep the clinic open because of
2011-12 fiscal year budget cuts.

The clinic operates at LSUs MidCity location, 1410 N. Foster Drive.

The pediatric clinic is one of the
LSU medical programs slated to be
included in the budget cuts for the
LSU hospital system, which would
go into effect in March, Cerise said.

Some physicians with the clinic have

been put on notice, he said.

The pending LSU budget reductions also take into account the impact of a new plan from Gov. Bobby
Jindals administration to eliminate
a $251 million mid-year state budget
deficit. The deficit is tied to lowerthan-expected state revenue collections and some increased spending
requirements.

Clinic, See A6

TODAYS FORECAST
Mostly sunny with a slight
chance of rain

91

High

88

Low