ST. TAMMANY PARISH, LA (WVUE) - The prosecution rested its case in the Walter Reed trial Tuesday. Testimony focused on referral fees, gift certificates, and alleged unreported income for Reed and his son, Steven.
On the stand, IRS agent Tim Moore testified that in 2009 alone, Reed had more than $60,000 in unreported income, and over a four-year period he failed to pay $40,000 in taxes.
That testimony came on the heels of testimony from Pentecostal preacher the Rev. Joel Holmes, from Little Rock, who said that Reed paid $4,700 for a prime rib dinner for a group of ministers and their wives. He said Reed also purchased an ad in a Pentecostal magazine and paid for it through the campaign fund.
Testimony has indicated that reed made thousands of dollars off of private legal settlements generated through those church associations.
Next up, attorney Michael Sistrunk testified about Reed becoming an associate of his firm after Hurricane Katrina. Sistrunk said that Reed earned $400,000 on an accident case brought to him through his connections with the Rev. Jerry Cox. Sistrunk also said the Cox then tried to get the firm to help pay $75,000 for a church expansion project. Sistrunk said he told Cox that "can't happen because that would be unethical fee splitting."
Later Sistrunk testified that he was unaware that Reed had paid for another minister's meal worth $2,600 through his campaign account, then sought reimbursement from the law firm. Reed left the firm in 2014 after stories began to surface about questionable spending.
The Walter and Steven Reed defense begins its portion of the case Wednesday at 8:30 a.m.