Mobile County License Commissioner Kim Hastie and her husband, John, entered not-guilty pleas in federal court this week on charges of tax fraud and the illegal use of personal information pulled from state motor vehicle records. Hastie’s attorney, Neil Hanley, told reporters outside the courthouse that he did not intend to negotiate a plea deal, saying flatly that his client was innocent and that he does not plea bargain for people who did not commit a crime.
The two newest charges, conspiracy to defraud the federal government and prohibited release of personal information from state vehicle records, add to a growing list of criminal counts Hastie has faced since November, when she was first indicted on 16 counts. According to an indictment unsealed last month, prosecutors allege the Hasties failed to report $58,633 in income to the IRS earned through land deal brokering and timber and land-clearing services.
Federal investigators have also accused Hastie of directing a scheme in 2013 to funnel thousands of Mobile County residents’ email addresses, pulled from License Commission records, to a political consulting firm working on behalf of then-mayoral candidate Sandy Stimpson. Prosecutors say a License Commission employee warned Hastie that sending the mass email would be improper before ultimately complying out of fear of retaliation. The resulting email, sent the day before the 2013 election, featured Hastie’s endorsement of Stimpson, who went on to defeat incumbent Mayor Sam Jones.
Prosecutors have separately alleged that the couple filed fraudulent federal tax returns in 2009 and tried to divert income earned by John Hastie Jr. to the couple’s daughter in order to shield it from the IRS. They also allege Hastie filed false economic interest disclosures with the Alabama Ethics Commission, understating income tied to a $1.9 million land sale.
The charges build on an earlier 16-count indictment handed up in November, which accused Hastie of using taxpayer resources to further her political ambitions and of pressuring a local businessman into covering a $1,800 qualifying fee for a run at revenue commissioner. Hastie has denied wrongdoing throughout the proceedings and has remained in charge of the License Commission despite the mounting legal pressure.
Deputy License Commissioner Ramona Yeager, who has served in that role since March 2014 after previously working as the office’s chief clerk, also faces criminal charges connected to the case.
Hastie, first elected License Commissioner in 2008 and reelected in 2012, had asked through her attorney to delay proceedings until May. A federal judge denied that request and instead set the case for an April jury trial, with jury selection scheduled to begin March 30.