Federal Prosecutors Still Believe Sen. Derrick Shepherd Is Guilty

Federal prosecutors made clear at a hearing Tuesday morning that state Sen. Derrick Shepherd, whom they accused of federal crimes in open court a day earlier, remains in their sights.

A news release, however, indicates that Shepherd intends to rebut the Monday testimony of FBI Special Agent Peter Smith, who told a federal magistrate judge that Shepherd had laundered approximately $141,000.

A day after Smith testified that he views Shepherd's actions as money laundering, Assistant U.S. Attorney Mike Magner on Tuesday introduced two new documents into evidence, one purporting to be a contract for legal services between Shepherd and Moyo. That document was not signed by Moyo, Magner said.

The second item was a "settlement statement," Magner said. It was signed by both Shepherd and Moyo, he said.

Shepherd recently provided the documents to federal authorities, presenting them as evidence that his dealings with Moyo were honest, Magner said.

However, prosecutors regard them with suspicion.