The Town Talk from Alexandria, Louisiana • Page 4

A-4 Saturday, March 28, 1987 DeWitt Sits in on Class next year in the MFP, according to Louisiana Federation of Teachers President Fred Skelton. The LFT asked for the holiday and is It was a history lesson with a difference Friday for second-grade students in Maude A. Jones' class at Cherokee Elementary, with state Rep. Charles W. DeWitt Jr.

of Alexandria giving the instruction. The students, who are studying Louisiana history, got a brief discussion and question-and-answer period with DeWitt, who said later that he talks occasionally to high school classes but seldom with elementary students. DeWitt, a Democrat representing District 25, spent part of the time discussing how bills are passed in the Legislature and told the 18 students that he was making them co-sponsors of a bill he will submit to abolish the position of Secretary of State. The duties of that job duplicate the duties of the Commissioner of Elections, DeWitt said. Education issues also came up, with DeWitt discussing the Legislature's 414 percent cut to the Minimum Foundation Program for funding schools.

When DeWitt asked the students what they would think if schools had to close early because of a lack of funding, they answered "good, good, good." But then a few, more thoughtful students said that would be bad because Ms. Jones wouldn't get paid and then she couldn't eat. After leaving the class, DeWitt discussed the upcoming legislative session and Gov. Edwin Edwards' declaration that April 23 will be a school holiday. The holiday is for a teacher rally at the state Capitol.

The purpose of the rally is to show legislators how much support there is for not making cuts A small fleet of boats occupies the floor of the Rapides Parish Coliseum Friday afternoon as exhibitors began preparing for today's Deep South Sports and Recreation Show. The show will be open from 9 a.m. until 9 p.m. today and from noon to 6 p.m. Sunday.

Admission is $1 for adults. Children 12 and under will be admitted free of charge. (Town Talk Photo by David Texada) Boat Show This Weekend Lee Hill Residents Legal Strategy to Are Developing Save Homes homes were filed in the Vernon Parish Clerk of Court's Office March 2, after the judgment against Fryar and the co-defendants was filed. Stephens Realty of Alexandria has served as a selling agent for Fryar. Leesville Realtor Louis Doherty, a member of the five-member residents committee, said based on information his group has obtained, they believe Everett Stephens of Stephens Realty filed the contracts.

Doherty said Friday the situation is not as bleak as it was when residents met Tuesday to discuss the situation. Leesville attorney John Ford advised residents at that meeting to not send in the monthly payment coming due next month, instead placing the money in a separate savings account on which they can fall back. Ford was out of town Friday and was not available for comment. Doherty advised the residents to make at least one more payment while the group determines what legal route it will take. "We went from a bleak situation at the last meeting where even I made the statement that it was like being up againt Mount Everest to where it will surprise a lot of folks to see it will turn into a workable situation," Doherty said.

were involved in the transactions, with some purchasing more than one house. He offered as an example one man who purchased eight homes. Doherty said it is impossible at this stage to determine the total amount of money involved in all the transactions because he and others are still compiling case by case information. "But it's going to boggle some folks' minds to see the dollars spent there and that are (now) up in the air," he said. While some residents may have done little more than slap a coat of paint on their purchase, others invested a considerable amount of money to make extensive repairs to the houses they purchased, he continued.

One homeowner has an estimated $30,000 or more invested in the homes he purchased. The buy and sell contracts have a place for the buyer and seller to sign, but no place for a notary of any kind nor were any signed before a notary, Doherty said. "At the bottom of each form it says this is a legally binding contract. If not understood, seek competent advice," Doherty said. "You could put that at the bottom of a grocery bag." DeWitt sponsoring the rally.

DeWitt, however, said there is already a consensus among legislators to fully fund the MFP for the fiscal year. Another reason given for the rally to try one more time to get the Legislature to restore the 4 percent removed from the MFP this year will not work, DeWitt said. He said the money is not there to restore the funds and added that the Louisiana School Boards Association had agreed that the 4 percent cut was one that school boards could withstand. DeWitt also questioned the timing of the holiday, saying that a rally to support education would be more successful if called in late May or June rather than shortly after the session begins. The session begins April 20 and at the time of the holiday legislators will be spending most of their time filing bills, he said.

There may also be some fallout to the holiday, DeWitt said, point ing out that teachers will receive a day's pay for not working at a time when school systems have complained about cuts in funding. The holiday may also not be viewed happily in Rapides Parish, where schools are already operating at the minimum days allowed by the state, DeWitt said. a.m., 3800 Third False alarm. 9:33 a.m., 5234 Sarah St, smoke scare. 1:58 p.m., La.

Highway 1 North, false alarm. 3:34 p.m, Lanny Street, false alarm. Pineville firefighters reported no runs on Friday. By Susan Caslin Town Talk Staff Writer LEESVILLE Lee Hill subdivision residents are developing their own legal strategy in the wake of news that approximately 70 residents purchased low-cost homes with federal liens on them. The homes potentially can be used as part of a judgment against the selling agent Joe E.

Fryar, a Lee Hill property owner and Alexandria architect. If the judgment stands, creditors have the right to seize the houses and have them sold. The creditors also have the alternative of simply taking over the contracts and allowing residents to remain in the houses. In a civil action judgment filed Feb. 19 in the Western District of Louisiana, Lafayette Division, U.S.

District Judge John M. Shaw ordered Fryar and co-defendants to pay a total of more than $14 million to Edward C. Abell Carey Walton and a class of purchasers of Westside Habitation Center revenue bonds. The defendants were found in violation of the Securities Act, the Exchange Act and the Louisiana Blue Sky Act. No further action can be taken on the judgment for the next 60 days.

Buy and sell contracts on the Child on Bike Hit by Car Shaw Denies New Fryar Trial By Jim Leggett Town Talk Staff Writer OPELOUSAS U.S. District Judge John Shaw has denied a new trial for Alexandria architect Joe Fryar and others found liable for fraud damages, including some finding of racketeering, in connection with financing for Che-neyville's Westside Habilitation Center. The Town Talk has learned that the federal investigators are looking into the Westside case and that the state attorney general's office is checking state Department of Health and Human Resources records for possible Medicaid fraud. The motion for a new trial and a motion for a judgment to throw out the jury's damage findings were ordered sealed by Shaw. Shaw's reasons for denying a new trial were also ordered sealed.

In addition, all attorneys involved in the case have been under a gag order since the Feb. 19 judgment was signed. A civil jury in February found Fryar and others liable for a total of about $15.5 million, including more than $2.5 million in attorney fees, plus judicial interest of 12 percent from July 5, 1984, for fraud in the 1982 bond financing of the 180-bed center for the mentally retarded. One attorney for bondholders said the "scheme" used by Fryar and others included the "All-American land scam." That was a reference to 6.47 acres in Cheneyville being sold by Fryar to a Bermuda company for $150,000 and resale of the land to the non-profit Westside Habilitation Center Inc. for $2,459,700.

The six-member jury found Fryar engaged in racketeering in his participation in the bond issue. Fryar's individual liability was estimated at about $5 million before the attorney fees were awarded. Much of the damages were "in solido" which means any one of the parties could have to pay the damages and then get pro-rates repayments from co-defendants. The jury's findings of securities fraud included racketeering, an undue windfall profit by the Bermuda company and malpractice on the part of ore bond counsel law firm. The civil racketeering lawsuit against Fryar and the others was filed by bondholders Ed AbelL a Lafayette attorney, and Carey Walton, an Opelousas businessman.

It was filed on behalf of all bondholders. The lawsuit claimed that there was not full disclosure in the issue of $13,550,000 in tax-exempt bonds in 1982 to finance the Cheneyville center. Among items not disclosed was the land transaction. The Bermuda company owned $2.8 million in Westside bonds and collected 16.5 percent annual interest payments until Westside was unable to meet payments to bondholders. The venture had depended on state of Louisiana Medicaid reimbursement of 100 percent of expenses.

The state's policy was later changed making it difficult to receive enough per diem payments on patients to pay off the bonds. Westside declared bankruptcy in 1985, and the bonds were refinanced. The securities fraud trial began here in December 1986. He said he couldn't yet comment on what specific action the residents are taking at this moment. Residents' success in the matter will come in "sticking together," he said.

Several class action suits will be filed, he said. The residents are shopping around for a law firm to represent them as a group. They will meet with representatives of six law firms at 7 p.m. Tuesday in East Leesville Baptist Church. Doherty said they will seek attorneys' suggestions and offer input as to what they have found out through their own study.

Leesville Attorney A.C. "Chuck" Dowden, invited to the upcoming meeting, said he has been approached by several people concerned about their position in the wake of the lien slapped on the property. Though he has done some preliminary research into the matter, he hasn't been officially retained by anyone. Dowden said he is doubtful that the residents' questions can be answered simply through Tuesday's panel because of the complexities of the judgment. "The whole scope of their problem is beyond the question and answer session level," he said.

Doherty said about 70 residents bus Natchitoches, from her bike. Miss Whitten the accident, from No tickets were NATCHITOCHES An 8-year-old bicyclist was injured Friday when her bike collided with a car on Renee Street, located in the Blanchard subdivision, Natchitoches sheriffs deputies reported. Deputies said Brandi Whitten was struck by a car driven by Adrene McKnight, 59, of 242 Stevens about 4:12 p.m. The child was thrown received lacerations and bruises in deputies said. She was treated and released Natchitoches Parish Hospital.

issued, deputies reported. til f. C't-Xy? (T Boy Still Critical A 12-year-old boy remained in critical condition Friday night in the intensive care unit of Rapides General Hospital where he was being treated for injuries suffered in an accident Thursday. A state policeman said the boy, Elvis Gene Vaughn of 401 Browns Bend Road, was on a bicycle and was holding on to the side of a moving pickup truck driven by his stepfather, Craig A. Stokes, 29, of the same address.

"He let go of the truck and the bicycle bobbled, so the rear wheel of the bike caught under the rear wheel of the truck," the trooper explained. "The boy fell to the ground, according to the driver of the truck and his passenger." The boy was not hit by the truck. No charges had been filed as of Friday pending further investigation, the state trooper said. The accident occurred about 3:30 p.m. Thursday on Browns Bend Road, about one mile west of Alexandria.

Fire Runs Alexandria firefighters made one run Friday: 1:54 a.m., 3800 Third false alarm. Rapides Parish Fire District No. 2 firefighters reported five runs on Friday: 12:23 a.mM La. Highway 28 West, false alarm. Workin' on the Railroad Joseph Thomas Jr.

stacks up roof tiles from the Missouri-Pacific train depot on 10th Street Friday, afternoon. Parts of the depot will be used on the new downtown transit center for passengers, which will oe man on uuuu JfTown Talk Photo by Stephen Reed).