Former Memphis mayor is target of federal probe

Wednesday, October 28, 2009
NASHVILLE, Tenn. – Former Memphis Mayor Willie Herenton may be the target of a federal criminal probe, but his campaign manager says it's not distracting him from making a run for congress.
The Commercial Appeal on Tuesday received a copy of a letter Herenton sent to U.S. Attorney General Eric Holder in which he says he was informed by the local U.S. Attorney's Office that he is the target of an investigation involving 'personal business transactions' while he was mayor.
Sidney Chism, a longtime friend and his congressional campaign manager, told The Associated Press that Herenton called the probe 'a lot of bogus accusations.' Chism said Herenton was not immediately available to comment.
'They're going to do everything they can in order to make sure that he does not get back into the political arena again,' Chism said. 'He's going to do everything he can to defend himself and go on and run for Congress.'
Herenton is running for the 9th Congressional District seat held by fellow Democrat Steve Cohen.
In his letter to Holder, Herenton writes that the notice 'identifying me as a target of a federal investigation, coming just weeks prior to my first formal campaign event, is grounded solely in politics and is nothing more than a well-orchestrated attempt to influence the outcome of the congressional election next year.'
Herenton, who served 18 years as the city's first black mayor before his resignation in June, acknowledged that the investigation involves 'a local Greyhound bus line property.'
Records obtained by The Commercial Appeal show businessmen who paid Herenton for an option to buy the Greyhound site hoped to build a luxury hotel there.
Herenton's resignation came as federal investigators questioned how he used extra money from a pricey annual Christmas party attended by prominent business people, the newspaper has reported. The money, acknowledged by Herenton's lawyer, is being scrutinized by FBI and IRS agents.
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Information from: The Commercial Appeal, http://www.commercialappeal.com