BLB city employee faces federal judge

MOBILE, Ala. (WALA) - In September, Mayor Stan Wright was indicted on a laundry list of charges, all stemming from a neighborhood called Safe Harbor Estates.

The community is home to Hurricane Katrina victims. The plot of land is right across the street from Mayor Wright's house, and prosecutors say it was a big cover-up.

Prosecutors allege Mayor Wright gave the land to his daughter, Mary Wright. The city then purchased it from her using federal money. Prosecutors said Mary then wrote her father four checks totaling more than $27,000. According to prosecutors, Mayor Wright also intimidated a witness.

In September, Mayor Wright and his daughter were indicted on charges of conspiracy, theft, money laundering, retaliation and conspiracy to commit wire fraud. The pair pleaded not guilty.

After a court appearance, Wright told FOX10 News, “I’m not quitting.”

He said no one has asked him to resign and he feels that he can still effectively serve the city.

However, there was someone else included in the case. Janey Galbraith is the city's grant writer. She has been charged with conspiracy to commit wire fraud.

"They can't prove it," said Galbraith’s attorney, Vincent Kilborn.

Prosecutors said she told a concerned city council member the land sale was legal, and on Wednesday in federal court, she pleaded not guilty on all charges.

"The lady is totally innocent. She's got an unblemished career of 30 years doing this - not one black mark, not one question, not one audit change, nothing. Spotless. And for her to be [dragged] into this silly indictment, it’s unconscionable. ”

All three defendants plan to fight these accusations in court.

Mayor Wright and his daughter will be back in court for a pre-trial hearing next week.

In the meantime, Wright has been ordered to report to a parole officer, and he cannot have contact with the witness he is accused of intimidating.

Galbraith's attorney plans to file a motion to have her trial heard separately.