Guilty plea in $13 million fraud

ATLANTA - A Georgia businessman has admitted taking part in a scheme to defraud a California construction company of nearly $13 million.

Edgar J. Beaudreault of Alpharetta pleaded guilty Wednesday to conspiracy to commit wire fraud. Federal prosecutors say the 60-year-old Beaudreault and two others conspired to defraud Cornell Corrections of California Inc., which operates private corrections facilities.

In 2003, Cornell was hired to build a prison in Canon City, Colo., and the $13 million purchase price was to be placed in escrow until completion.

Cornell was induced to transfer the money to an Atlanta account, and most of it was then diverted to other accounts.

Beaudreault could receive up to 20 years in prison and fined $250,000 at sentencing on March 18.

SCLC veteran Lowery to offer prayer at inaugural

ATLANTA - The Rev. Joseph Lowery has been invited to participate in the inauguration of President-elect Barack Obama.

The 87-year-old Lowery co-founded the Southern Christian Leadership Conference with the Rev. Martin Luther King Jr. and headed the Atlanta-based organization for 20 years.

Lowery says Obama personally asked him to deliver a prayer at the ceremony. He says he's "very humbled and very honored by the invitation to this historic event."

Lowery was an early supporter of Obama, but doesn't see the invitation as a quid pro quo.

"He didn't owe me anything," Lowery said. "All he owes me is being a good president."

Asked what he might say on Jan. 20, Lowery replied, "I don't know ... The Lord and I will get together a few days before the inauguration."

Court upholds conviction in 'Cuban' cigar case

ATLANTA - A federal appeals court has upheld the conviction of a Florida man for selling counterfeit Cuban cigars under trademarks registered in the United States after Fidel Castro took power.

Juan Jose Penton claimed he did nothing illegal because his shop sold replica "Cuban" brands taken over when Castro nationalized cigar manufacturers in 1960. The Cuban trademarks are not recognized in this country, but the names are also owned by companies registered here.

A jury convicted Penton of violating the Trademark Counterfeiting Act after he sold 60 boxes of cigars in October 2005 to a Miami-Dade undercover officer, including purported Cohiba Esplendidos and Montecristo products. He was sentenced to five years probation and fined $7,500.

An 11th U.S. Circuit Court of Appeals panel upheld the conviction Wednesday.

Black Mafia member sentenced to 20 years

ATLANTA - A man prosecutors call a "senior member" of the Black Mafia Family has been sentenced to 20 years in federal prison for cocaine conspiracy.

Fleming Daniels of Roswell, Ga., also was fined $10,000 for participating in the violent drug gang, the focus of federal prosecution in Atlanta, Detroit, Los Angeles, Louisville, Ky., Orlando, Fla., and elsewhere.

The 35-year-old Daniels is the first of 16 defendants indicted in Atlanta to go to trial. Eleven entered guilty pleas. Three others are in custody and one is a fugitive.

Evidence showed that during 2003-2004, the gang moved hundreds of kilograms of cocaine into Atlanta, Detroit, and other points. Prosecutors say Daniels was responsible for distributing over 50 kilograms valued at more than $1 million.