LITTLE ROCK, Ark. (AP) – The former head of a defunct Arkansas nonprofit that
helped at-risk youth has pleaded guilty to diverting more than $120,000 from the
group to an unnamed state senator in a widening corruption probe that has
already ensnared several former lawmakers.
Jerry Walsh pleaded guilty on Thursday in federal court to conspiring to
divert more than $380,000 from South Arkansas Youth Services without the
authority of the organization’s board of directors.
Federal prosecutors say the scheme involved diverting the money to a state
senator and the lobbying firm of Rusty Cranford, who pleaded guilty last month
to bribing two former lawmakers and a state senator.
Prosecutors say Walsh made the payments in exchange for the senator agreeing
to influence Arkansas officials regarding the awarding of state contracts.
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