Former Tennessee Governor’s Mail-Fraud Conviction Voided

A federal judge Thursday threw out the mail-fraud conviction for which former Gov. Ray Blanton served time in prison but upheld his extortion conviction in the scheme to award liquor licenses to friends.

Two former aides also were cleared of the charges for which they served prison terms, and their fines were ordered refunded.

Judge Bailey Brown of the U.S. 6th Circuit Court of Appeals, who had presided at the seven-week trial in 1981 under a special arrangement, overturned the conviction on the basis of a U.S. Supreme Court ruling last year.

Protects Money, Property Rights

The high court said the federal mail-fraud statute is designed only to protect money or property rights and may not be used to prosecute someone for violating “the intangible right” of citizens to good government.

The ruling was cited Nov. 12 by a federal judge who threw out convictions of former Maryland Gov. Marvin Mandel and five co-defendants in a bribery case. Blanton, governor from 1975 to 1979, was convicted of mail fraud and conspiracy in 1981 along with former assistant Clyde Edd Hood and Blanton’s 1974 campaign manager, Jim Allen. Blanton, in addition, was convicted of extortion.

Blanton served two years of a three-year prison sentence before he was released in 1986. He was also fined $11,000. Hood served eight months in prison and Allen two years, and the two were fined $14,000 each.

In light of the Supreme Court ruling, Brown said: “Neither the substantive mail-fraud counts nor the conspiracy count, insofar as it purports to allege conspiracy to commit mail fraud, allege a crime under these statutes.”

No Refund of Blanton Fines

The judge ordered no refund of fines to Blanton.

Blaton, Hood and Allen were convicted of taking part in a scheme to have the state Alcoholic Beverage Commission award 12 licenses to Blanton’s friends in 1976.

Blanton also was convicted of allowing a liquor store owner to retire a $23,000 bank loan for Blanton in exchange for a liquor license.