The following examples of Public Corruption investigations are excerpts from public record documents on file in the court records in the judicial district in which the cases were prosecuted.

Former New Jersey Housing Authority Section Director Sentenced for Embezzlement

On September 24, 2010, in Newark, N.J., Tracy White, a former Section 8 program director with the Irvington Housing Authority, was sentenced to 18 months in prison, three years of supervised release, and ordered to pay $106,376 in restitution.  On August 19, 2010, White pleaded guilty to embezzling and obtaining Irvington Housing Authority funds by fraud, and making and subscribing to a false income tax return for tax year 2006.  According to court documents, from about August 2003 through May 2007, Tracy White and her sister deposited Irvington Housing Authority checks that were issued to landlords into their personal bank accounts and into the business account of a company named Exquisite Realty, which was controlled by White’s sister. The funds were used for their own personal benefit. White diverted more than $95,000 of HUD funds that should have been used for eligible and qualified Section 8 tenants. 

Five Sentenced in Union County, South Carolina, Public Corruption Probe

On September 21, 2010, in Spartanburg, S.C., five individuals were sentenced for their roles in a public corruption case in Union County.  Former Union County Sheriff Wesley Howard Wells was sentenced to three months in prison, followed by three years of supervised release, and ordered to pay $2,500 in restitution, a $100 special assessment, and a $5,000 fine.  According to court documents, Wells made sizeable loans to an individual resulting in significant interest income to Wells which he did not report as income.  Former County Supervisor Donald R. Betenbaugh was sentenced to 18 months in prison, three years of supervised release, and ordered to pay a $100 special assessment.  Former County Tax Assessor Willie E. Randall, Jr. was sentenced to 57 months in prison, four years of supervised release, and ordered to pay a $700 special assessment.  Court documents show that Betenbaugh and Randall demanded a $50,000 kickback bribe from an individual who was attempting to sell a building to Union County. In exchange for the bribe, Betenbaugh agreed to use his official position as County Supervisor to see that the transaction took place and Randall laundered the kickback through the bank account of his side business.  In addition, Randall allowed the Union County Tax Assessor’s Office to be used as a “stash house” to store and distribute cocaine and hydrocodone.  Union County residents Willie Dee Farr and Lapriest Darnell Beacham were each sentenced to 12 months and a day in prison, three years of supervised release, and ordered to pay a $100 special assessment. Farr was also ordered to pay $1,500 in restitution and a $3,000 fine.  According to court documents, Farr served as the “bagman” for the payment of a $4,500 kickback to the former Union Mayor and former Union Zoning Director. 

Former City Councilman Sentenced to 17 Years in Prison

On August 23, 2010, in New Orleans, La., Jonathan Bolar, former Gretna City Councilman, was sentenced to 204 months in prison followed by three years of supervised release. In addition, Bolar was ordered to pay $174,082 in restitution to his victims and the Internal Revenue Service (IRS), as well as forfeit $85,700.  Bolar was convicted by a federal jury on April 9, 2010, on charges of extortion, wire fraud, structuring and tax violations.  According to trial evidence, Bolar extorted from multiple victims payment of money in return for his support in various land use matters in the City of Gretna.  Bolar failed to file tax returns for tax years 2003 through 2006. Additionally, Bolar made cash deposits in amounts below $10,000 in order to avoid currency reporting requirements.

Former Member of Board of Directors of the Sewerage and Water Board of New Orleans Sentenced to Over 21 Years in Prison; Brother Sentenced to 4 Years

On July 29, 2010, in New Orleans, La., Bruce L. Edwards, Sr. was sentenced to 48 months in prison, to be followed by three years of supervised release, and ordered to pay a $15,000 fine. Bruce Edwards is the brother of the former Sewerage and Water Board (S&WB) of New Orleans member, Benjamin L. Edwards, Sr.  On June 24, 2010, Benjamin L. Edwards, Sr. was sentenced to 262 months in prison, followed by five years of supervised release, and ordered to pay approximately $3.6 million in restitution.  According to court documents, the brothers devised a scheme to defraud various businesses who performed work on behalf of the S&WB.  In the aftermath of Hurricane Katrina, Benjamin Edwards spoke with representatives of Montgomery Watson Harza (MWH) regarding work that the company was to perform in assisting the S&WB and the City of New Orleans with sewer inspections and debris cleanup.  Benjamin Edwards convinced MWH to hire a company called Management Construction Consultant Incorporated (MCCI) in order to perform these sewer inspections.  The Edwards’ concealed the fact that they controlled MCCI.  MWH wired nearly $3,000,000 to a MCCI bank account.  Bruce Edwards then wrote approximately $1,600,000 in checks from MCCI’s account to a tax-exempt, non-profit Third Shiloh Missionary Baptist Church (TSMBC) account which was controlled by Benjamin Edwards.  The money was then withdrawn from the TSMBC account to facilitate the purchase of vehicles, fund political campaigns, and obtain items of value for the Edwards and others.  By routing the money through the TSMBC account and using cashier’s checks and cash to disguise the source of the funds, the brothers attempted to conceal this income from the IRS.  For tax year 2005, Benjamin Edwards failed to report nearly $1,700,000 in income; Bruce Edwards failed to report nearly $750,000 in income.  

Former Bureau of Land Management Official Sentenced to Prison

On July 12, 2010, in Medford, Ore., Luis Ramirez was sentenced to 36 months, three years of supervised release, and ordered to pay $481,602 in restitution to the Bureau of Land Management (BLM).  Ramirez pleaded guilty in April 2010 to five counts of wire fraud, along with separate counts of personal financial conflict of interest and making a false tax return statement. Ramirez was employed as a Contracting Officer’s Representative for the BLM in the Medford District Office.  At the time of his plea, Ramirez admitted that from May 2004 until July 2007, he defrauded BLM by approving work for private contractors that was unnecessary, unwarranted, or was never performed at all.  In addtion, Ramirez arranged for BLM contractors to subcontract work to his son that were being administered by him. Ramirez would then falsely certify that the work he approved was completed by the contractor, and then obtained payment from BLM for the contractor. According to court documents, Ramirez arranged through various deceptive means to have the private contractors issue checks to Ramirez’s son, Evan, either directly or through third parties and the contractors were reimbursed with the BLM payments. Large portions of the money was deposited into Evan Ramirez’s primary bank account and then transferred to Ramirez’s personal bank account. Evan Ramirez, also of Medford, was sentenced to three years of supervised release with 12 months of home detention, fined $2,000 and ordered to pay $6,988 in restitution.  Evan Ramirez pleaded guilty in April 2010 to making a false tax return statement. At the time of his plea, Evan Ramirez admitted that he filed a false 2006 income tax return that omitted $18,055 in income.

Former New York County Legislator Sentenced for Filing False Tax Returns, Tax Evasion, and Making False Statements to Federal Agents

On June 28, 2010, in Central Islip, N.Y., Roger Corbin, a former Nassau County Legislator who represented the Second Legislative District from 1995 until December 31, 2009, was sentenced to 18 months in prison, followed by three years of supervised release, and ordered to pay a $700 special assessment and $92,170 in restitution.  Corbin pleaded guilty in January 2010 to tax evasion and filing false federal tax returns for the years 2005, 2006, and 2007, and making false statements to special agents of the Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS).  According to court documents, while serving as a Nassau County legislator, Corbin received more than 80 checks, totaling more than $229,000, from a developer who was doing business in Corbin’s district. Corbin deposited those checks, which were all made payable to “Cash,” into his personal bank accounts and used the money to support his lifestyle, but did not report any of the money as income on his 2005, 2006, and 2007 tax returns and did not pay any taxes on that income. Moreover, when he was interviewed by special agents of the FBI and IRS in November 2008, Corbin falsely denied using any of the money from the developer for his personal benefit.  He claimed that he had given the money to an individual who was purportedly paying workers at the developer’s New Cassel construction sites. Subsequent investigation determined that the individual to whom Corbin claimed to have given the money died on November 9, 2005, and that Corbin received and deposited 73 of the checks, totaling approximately $206,500, after the death of that individual.  In an April 2009 interview with federal prosecutors and agents, Corbin admitted that he used significant portions of the money derived from the developer’s checks for his own personal benefit and that he did not report that income on his tax returns in 2005, 2006, or 2007. Corbin further admitted that he made false statements to the agents during the November 2008, interview.

Chicago Alderman Sentenced on Bribery and Tax Charges

On June 24, 2010, in Chicago, Ill., Isaac Carothers, former Chicago Alderman, was sentenced to 28 months in prison, followed by three years of supervised release and ordered to pay $17,680 in restitution.  According to his plea agreement, from approximately June 2004 through September 2004, Carothers accepted things of value, including approximately $40,000 worth of home improvements on his residence in exchange for influence over the change in zoning of city property.  In addition, Carothers filed a false Individual Tax Return whereas he failed to report additional income he received in calendar year 2004, including the gross income received in the form of home improvements paid for by the individual seeking the Alderman's political influence.

Former Mayor Sentenced to Over Five Years in Prison

On June 17, 2010, in New Orleans, La., Edward J. Price, III, aka Eddie Price, former Mayor of Mandeville, La., was sentenced to 64 months in prison, followed by three years of supervised release, and ordered to pay $17,756 in restitution to the Internal Revenue Service (IRS).  Price pleaded guilty in October 2009 to honest services mail fraud and tax evasion.  According to court documents, Price, as an elected Mayor, was a public official who was prohibited by state law from receiving gifts and gratuities from professional service contractors for the City of Mandeville.  Beginning in 2003 and continuing through 2007, Price accepted numerous trips valued in excess of $45,000 from the City's engineer and a developer. In his guilty plea, Price admitted that he illegally used money from his campaign fund to pay for various personal expenses such as gambling debts, membership fees in fishing clubs and carnival (Mardi Gras) organizations, and other family expenses.  In addition, Price admitted that he failed to file a tax return for the tax year 2007; thereby evading taxes on his income as a mayor, as well as the value of the gifts and gratuities he received and funds he had taken from his campaign account.

Former Lakewood Township, New Jersey, Housing Inspector Sentenced for Taking Bribes and Filing False Tax Returns

On June 17, 2010, in Trenton, N.J., Jeffrey Williamson, former Lakewood Township housing inspector, was sentenced to 37 months in prison and Charles Amon, a former property manager in Lakewood, was sentenced to 12 months and a day in prison. In addition to their prison terms, Williamson and Amon were each ordered to serve three years of supervised release.  Williamson pleaded guilty in January 2010 to attempted extortion under color of official right and two counts of subscribing to a false tax return.  Amon pleaded guilty to conspiracy to commit extortion under color of official right.  At his plea hearing, Williamson stated that from as early as April 2007 through July 2009, he served as a housing inspector for Lakewood Township in New Jersey. In that capacity, Williamson was responsible for, among other things, performing inspections and certifying housing units for compliance with pertinent federal, state, and local standards, codes, regulations and procedures.  Williamson admitted that he accepted a total of $17,500 in bribes to provide lenient inspections on rental and other properties.  Additionally, Williamson failed to include approximately $7,500 in taxable income on this tax return for 2007 and failed to include approximately $8,000 in taxable income on his 2008 tax return.

Former Haitian Government Official Sentenced for Role in Foreign Bribery Scheme

On June 1, 2010, in Miami, Fla., Robert Antoine, a former official of the Republic of Haiti’s state-owned national telecommunications company, was sentenced to 48 months in prison, to be followed by three years of supervised release, and ordered to pay $1,852,209 in restitution and to forfeit $1,580,771.  Antoine pleaded guilty on March 12, 2010, to conspiracy to commit money laundering in connected with a foreign bribery scheme.  According to the indictment, Antoine was the director of international affairs for Haiti’s state-owned national telecommunications company, Telecommunications D’Haiti (Haiti Teleco) from May 2001 to April 2003.  In that position, Antoine had primary responsibility for the relationships between U.S. telecommunications companies and Haiti Teleco.  Antoine admitted that he accepted bribes from three U.S. telecommunications companies and thereby defrauded Haiti Teleco. To disguise the origin of these funds, Antoine laundered them through intermediary companies, including J.D. Locator Services.  Juan Diaz, the president of J.D. Locator, pleaded guilty in May 2009 to conspiracy to commit violations of the Foreign Corrupt Practices Act (FCPA) and money laundering.   Antoine admitted that a portion of the J.D. Locator funds were also laundered by Jean Fourcand of Fourcand Enterprises. Fourcand pleaded guilty in February 2010 to money laundering.  In addition, Antoine acknowledged that $800,000 of these bribes were intended to be given to him by a U.S. telecommunications company for which Joel Esquenazi was the president and director, Carlos Rodriguez was the executive vice president, and Antonio Perez was, at times, the controller.   Perez pleaded guilty on April 27, 2009, to conspiring to commit FCPA violations and money laundering.  Esquenazi and Rodriguez, as well as Jean Rene Duperval, who was director of international relations of Haiti Teleco from June 2003 to April 2004, and Duperval’s sister, Marguerite Grandison, were indicted along with Antoine in December 2009.  The remaining defendants are awaiting trial.

Former City Housing Authority Employee Sentenced to Prison

On April 29, 2010, in Denver, Colo., Doris Abeyta was sentenced to 37 months in prison, to be followed by three years of supervised release, and was order to perform 200 hours of community service and to pay $416,932 in restitution.  Abeyta pleaded guilty to theft of federal funds and money laundering.  According to her plea agreement, Abeyta was employed by the Housing Authority of the City of Alamosa. Between 1998 and 2006, she embezzled more than $400,000 that was owned by the housing authority or was under its care, custody or control.  She did so by preparing housing authority checks payable to her husband, daughter, and mother knowing that these persons were not entitled to the money and converting the proceeds of the checks to her own use and benefit.  Almost all the checks were signed by the executive director of the housing authority, who was aware of and facilitated Abeyta’s embezzling.

Former Branch Chief of Space and Naval Warfare Systems Command, a Department of Defense Subcontractor, and Others Sentenced for Defrauding the U.S. Navy

On April 12, 2010, in San Diego, Calif., Gary Alexander, the former Space and Naval Warfare Systems Command (SPAWAR) Branch Head Chief, was sentenced to 75 months in prison and ordered to forfeit $332,072 and to pay $171,288 in restitution. Department of Defense subcontractor Elizabeth Ramos was sentenced to 18 months in prison and ordered to pay $123,448 in restitution. Ramos’ spouse, Louis Williams, was sentenced to twelve months and one day in prison. All three had pleaded guilty last year to defrauding the United States Navy in connection with the award of several defense subcontracts. In addition, Alexander had pleaded guilty to filing false tax returns. According to court records, federal employees Gary Alexander and his wife, Kelly Alexander, worked at SPAWAR and for almost eight years accepted cash bribes and other items of value from individuals in exchange for employment as government subcontractors. Gary Alexander used his influence at SPAWAR to ensure that Ramos and Williams, owners of Technical Logistics Corporation (TLC) received $4.8 million in military subcontracts. In return, he demanded and received cash bribes equaling a percentage of Ramos’ salary. Similarly, Alexander demanded and received cash bribes from Pamela Banks, owner of Advance Technical Solutions, in return for $400,000 in subcontracts awarded to her company. Banks pleaded guilty to paying bribes to the Alexanders. From 1999 through 2008, when they were arrested, Gary and Kelly Alexander were paid over $400,000 in cash bribes and given items of value, such as a $5,600 Rolex watch, expensive dinners and vacations. Court records reveal that the subcontracts were arranged through Jackie Godwin, a former Vice President of Kratos Defense Security Solutions, a nationwide defense prime contractor based in San Diego. Godwin pleaded guilty and admitted to hiring the co-conspirators as requested by Alexander. In addition to the bribery scheme, plea agreements disclose that Alexander directed both Ramos and Godwin to provide Government-funded jobs to Alexander’s mistress, Sinthia Nares, who pleaded guilty to lying to Government investigators. In addition, Alexander also directed Godwin and Ramos to buy and charge to the Government $14,000 in high-tech audio-visual equipment which were ultimately seized from the residences of Alexander, Godwin, and Nares. Gary and Kelly Alexander were fired from their jobs at SPAWAR, and Godwin and Nares were fired from Kratos. On April 6, 2009, Banks was sentenced to 24 months in prison. On February 22, 2010, Kelly Alexander was sentenced to 18 months in prison and ordered to pay $36,676 in restitution. On April 6, 2010, Jackie Godwin was sentenced to 12 months in prison, to be followed by six months in a half-way house and ordered to pay $137,763 in restitution. On March 15, 2010, Nares was sentenced to 3 months in a half-way house as a condition of probation.

Former Detroit City Council President Pro Tem Sentenced on Charges of Conspiracy to Commit Bribery

On March 10, 2010, in Detroit, Mich., Monica Conyers was sentenced to 37 months in prison as a result of her guilty plea to one count of conspiracy to commit bribery.  According to court records, Conyers admitted to misusing her office of Detroit City Council President pro tem, and her position as a trustee of the City of Detroit General Retirement System pension, for personal gain.  Specifically, Conyers and an aide received payments from persons who sought contracts, money and/or favorable treatment from the City Council or the pension fund.

Former Birmingham Mayor Sentenced to 15 Years for Bribery Scheme

On March 5, 2010, in Tuscaloosa, Ala., Larry Langford, former Birmingham Mayor and former Jefferson County Commission president, was sentenced to 180 months in prison, ordered to pay $119,985 in restitution to the Internal Revenue Service (IRS) and to forfeit $241,843 to the government.  The restitution to the IRS is a result of filing false tax returns for the years 2003, 2004 and 2005, in which he failed to report his income from the bribes. Langford was sentenced for a long-running bribery scheme in which he sent more than $7 million in county bond business to Montgomery investment banker, Bill Blount.  In October 2009, a jury convicted Langford of conspiracy, bribery, money laundering, and filing false tax returns. According to court documents and evidence presented at trial, Langford conspired with Blount and lobbyist Al LaPierre to solicit and accept bribes for his influence as Jefferson County Commission president to help Blount and his company, Blount Parrish, in county financial transactions. Between 2002 and 2007, while Langford was president of the Jefferson County Commission and chairman of its finance committee, he solicited and accepted $241,843 in cash, loan payoffs, expensive clothing and jewelry from Blount and LaPierre. In return for the bribes, Langford used his power and position on the county commission to include Blount Parrish in financial transactions that generated about $7.2 million in fees for Blount and his companies. Blount, in turn, paid LaPierre hundreds of thousands of dollars in consulting fees. Langford, Blount and LaPierre also attempted to obstruct justice. In late 2006, the Securities and Exchange Commission (SEC) began investigating Jefferson County financial transactions and the relationship between the three men. It issued subpoenas for testimony and documents to all three. Langford testified before the SEC in June 2007 that he borrowed money from LaPierre and the loans were secured by real property.  The men earlier had conspired to conceal the bribes by calling them loans.

Main Defendants in Dallas City Hall Corruption Case Sentenced to Substantial Prison Sentences

On February 26, 2010, in Dallas, Texas, Former Mayor Pro Tem Don Hill was sentenced to 216 months in prison and ordered to pay nearly $113,000 in restitution after being convicted on charges of conspiracy to commit bribery, bribery, conspiracy to commit extortion, extortion by a public official, and conspiracy to commit money laundering. Hill’s wife, Sheila Farrington was sentenced to 108 months in prison, and Hill’s Plan Commission Appointee D’Angelo Lee was sentenced to 168 months in prison.  According to court documents, beginning in 2004, Hill and his co-defendants entered into an association in which thousands of dollars in bribes were paid by co-defendants Brian L. Potashnik and his wife, Cheryl L. Potashnik, owners of Southwest Housing Development Company, Inc., through sham business contracts to the defendants.  Furthermore, Hill and Lee were involved in corrupt solicitation from developers in an effort to gain financial benefit.  In addition, on March 1, 2010, Darren Reagan was sentenced to 168 months in prison and Ricky Robertson was sentenced to 36 months in prison for their roles in the corruption scheme.  According to court documents, Reagan was a community activist and the chairman and CEO of the Black State Employees Association of Texas (BSEAT) and Robertson, a local businessman/car dealer, was a principal of RA-MILL, a sham construction firm that pressured firms into paying large sums of money to get city contracts. On wiretapped conversations played during trial, Reagan told then Mayor Pro Tem Hill to pull developer Bill Fisher’s contracts off the city council agenda while he made more extortionate demands for money from Fisher.  Fisher was working as an FBI informant.  A total 23 defendants were convicted or pleaded guilty to numerous charges stemming from this investigation.

Investment Banker and Lobbyist Sentenced for Bribing Former Birmingham Mayor While He was Jefferson County Commission President

On February 26, 2010, in Tuscaloosa, Ala., Bill Blount, an investment banker, and Al LaPierre, a lobbyist, were sentenced for their roles in bribing former Birmingham Mayor Larry Langford while he was president of the Jefferson County Commission.  Blount was sentenced to 52 months in prison, to be followed by three years of supervised release and ordered to forfeit $1 million to the government. In addition, Blount was ordered to not practice law without permission from the court and may not have any business with a government agency as an advisor. Al LaPierre was sentenced to 48 months in prison, to be followed by three years of supervised release and ordered to pay $98,433 in back taxes to the Internal Revenue Service (IRS) and to forfeit $371,932. In addition, LaPierre is prohibited from being a lobbyist or serving as a consultant to the government. According to court documents, LaPierre served as the middle man between Blount and Langford in a long-running bribery scheme that sent more than $7 million in county bond business to Blount's Montgomery investment banking firm. Most of the financial business Langford funneled Blount's way involved bond and swap transactions related to Jefferson County’s multi-billion dollar sewer debt.  Blount and LaPierre bought expensive clothing and jewelry for Langford between 2002 and 2007, while he was Jefferson County Commission president. The gifts were intended to influence Langford to include Blount and his company, Blount Parrish, in lucrative Jefferson County financial transactions. Langford solicited and accepted the items, totaling about $235,000, and used his power and influence to include Blount Parrish in county financial. 

Former New York City Police Commissioner Sentenced to 48 Months in Prison

On February 18, 2010, in White Plains, N.Y., Bernard B. Kerik, former Commissioner of the New York City Police Department was sentenced to 48 months in prison, to be followed by three years of supervised release, and ordered to pay $187,931 in restitution.  At his guilty plea hearing in November 2009, Kerik admitted, among other things, that in 1999 and 2000 he received substantial renovations to his Riverdale apartment through Interstate (a metropolitan area-contractor) and conceded that Interstate paid approximately $255,000 for the renovations. Kerik also admitted that around the same time, that he contacted New York City regulators concerning Interstate, which at the time was seeking various approvals to do business in and/or with New York City. Kerik further admitted that he failed to report the value of the renovations he received through Interstate on his federal tax returns. According to court documents, Kerik also made false statements to the White House concerning the renovations he received on his Riverdale apartment and his relationship with Interstate when he was being vetted for the position of Secretary of the United States Department of Homeland Security.

Former Louisiana State Senator Sentenced for Role in Money Laundering Conspiracy

On February 11, 2010, in New Orleans, La., Derrick D.T. Shepherd, former Louisiana State Senator, was sentenced to 37 months in prison, to be followed by three years of supervised release and ordered to pay a $45,000 fine. Gwendolyn Joseph Moyo, a co-defendant, was sentenced to 20 years imprisonment.  Another co-defendant, James Zoucha was sentenced to three years probation.  According to court documents, in November 2006, Moyo, AA Communications, CMAG, Zoucha, and certain of their officers and employees were ordered by the 19th Judicial District Court, State of Louisiana, to cease and desist from engaging in the business of insurance.  After Moyo and AA Communications were ordered to cease and desist and their bank accounts had been seized by state regulators, Shepherd, an attorney and former Louisiana State Senator, was employed by Moyo to launder construction bond premiums for Moyo and AA Communications.  In so doing, Shepherd promoted and facilitated Moyo’s and AA Communications’ unlawful activity. Shepherd pleaded guilty to one count of conspiracy to commit money laundering in October 2008.

Two in North Carolina Sentenced in Public Corruption Case

On February 10, 2010, in Raleigh, N.C., David Lee Brady and James Albert Perry, former mayor of Wake Forest, were each sentenced to 30 months in prison, to be followed by three years of supervised release. Brady was ordered to pay a $60,000 fine; Perry was ordered to pay a $10,000 fine. On June 1, 2009, each defendant pleaded guilty to conspiracy to commit extortion and to corruptly giving anything of value to a public official in connection with the business of a state government receiving federal funds. According to court documents, Perry, Brady, and others formed a company named Agri-Ethanol Products LLC (AEP) for the purpose of building a $220 million ethanol production facility in Aurora, North Carolina. Before building the facility, the defendants needed to secure the necessary permits from the North Carolina Department of Environment and Natural Resources (DENR). In order to expedite the permit process, Perry, Brady, and others entered into an agreement with a high-level DENR official named Boyce Hudson, who was then Senior Field Officer in DENR’s Legislative and Intergovernmental Affairs Office.  Hudson agreed to use his influence to assist AEP with permit issues in exchange for payments totaling approximately $196,000. Hudson pleaded guilty to extortion and money laundering and was sentenced to 40 months.

Chicago Suburban Mayor Sentenced in Kickback and Tax Fraud Scheme

On January 29, 2010, in Chicago, Ill., Nicholas Blasé was sentenced to 12 months and a day in prison, to be followed by two years of supervised release.  According to court documents, Blasé was charged with federal corruption, mail fraud, and filing false tax returns for tax years 2000 through 2005.  During those tax years, Blasé failed to report $421,450 in kickbacks as income.  Blasé later pleaded guilty to the tax fraud and mail fraud counts.  Since at least 1989, Blasé used his position as mayor of Niles, Illinois to influence business owners in Niles to purchase insurance through a co-defendant’s agency. In turn, the agency paid bribes and kickbacks to Blasé by secretly funneling a percentage of the premiums and fees collected from clients. To disguise the bribes and kickbacks, the payments were made by checks drawn on the insurance agency’s account and made payable to a sham insurance agency, S.M.P. Insurance Service Inc. (SMP).  SMP was operated by an employee of Blasé’s law office performing work related to personal injury claims. The payments to SMP were purported to be shared commissions paid to an insurance producing sub-broker, but neither SMP nor Blasé’s employee performed such work. The kickbacks deposited into SMP’s account were used by Blasé.  SMP received at least 20 percent of all commissions earned from Niles-based insurance customers of the co-defendant's insurance agency.

New Orleans Man Sentenced to 10 Years in Prison

On January 28, 2010, in New Orleans, La., Mose Jefferson was sentenced 120 months in prison, to be followed by three years of supervised release, and ordered to pay a $175,000 fine and $913,000 in restitution. Jefferson was convicted on August 21, 2009 by a jury on charges of bribery in connection with a program receiving federal funds and of obstruction of justice.  According to evidence introduced at trial, Jefferson paid former Orleans Parish School Board member, Ellenese Brooks-Simms two $50,000 bribes totaling $100,000 as a reward for Brooks-Simms’ support and approval of two Orleans Parish School Board contracts involving the lease of a computer-based educational software system called “I Can Learn”.  When the contracts were approved in June 2003 and November 2004, Jefferson was an exclusive sales agent for the vendor who paid Jefferson approximately $913,168 in sales commissions for his role in securing the 2003 and 2004 contracts with the School Board.  Evidence at trial also indicated that after Jefferson discovered his activities were under investigation, he approached Brooks-Simms on several occasions and encouraged her to use several fabricated stories he had concocted to obstruct and impede the federal investigation.

Former U.S. Armey Officer Sentenced on Bribery and Weapons Conspiracy Charges

On January 21, 2010, in Trenton, N.J., Michael Wheeler, a former lieutenant colonel in the U.S. Army Reserves, was sentenced to 42 months in prison, to be followed by three years of supervised release, and ordered to pay $1,200 in restitution.  Wheeler was charged in February 2007, along with former U.S. Army Colonel Curtis G. Whiteford, former Lt. Col. Debra M. Harrison, and civilians William Driver and Seymour Morris Jr., with various crimes related to his participation in a wide-ranging bribery conspiracy involving the U.S. government, the Republic of Iraq and the Coalition Provisional Authority-South Central Region (CPA-SC) in Al-Hillah, Iraq.  Wheeler was an adviser and project officer for CPA reconstruction projects. According to testimony at trial, Wheeler, along with Whiteford and Harrison, conspired from December 2003 to December 2005 with Robert Stein, Philip H. Bloom, and Bruce D. Hopfengardner to rig the bids on contracts being awarded by the CPA-SC so that more than 20 contracts were awarded to Bloom.  In total, Bloom received approximately $8 million in rigged contracts.  Testimony revealed that Bloom, in return, provided Whiteford, Harrison, Wheeler, and others with more than $1 million in cash, vehicles, jewelry, computers, airline tickets, promise of future employment with Bloom and other items of value.  

Former Housing Authority Executive Sentenced to Six Years for Embezzlement

On January 15, 2010, in Denver, Colo., Patricia Ann Martinez was sentenced to 72 months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,275,956 to Bank of America and $461,150 to victims. Martinez, the executive director of the Housing Authority of the City of Alamosa from 1989-2007, pleaded guilty on November 9, 2009 to embezzling more than $1 million from the housing authority.  According to information contained in her plea agreement, on or about April 1, 1989, through about October 17, 2007, Martinez embezzled money by signing more than seven hundred checks, which were drawn on the housing authority's operating account, and were made payable to family members, relatives and a business associated with housing authority employees; none of whom were entitled to the money.  She then arranged for much of the money to be diverted to herself. In addition, Martinez conducted numerous financial transactions involving the proceeds of the embezzlements to conceal and disguise the nature, source and control of the proceeds.

Former Oklaoma Public Works Official Sentenced in Bribery Case

On January 11, 2010, in Tulsa, Okla., Albert S. Martinez, formerly the Field Engineering Manager at the Tulsa Public Works Department, was sentenced to 42 months in prison and ordered to pay $341,000 in restitution to the City of Tulsa.  According to court documents, Martinez pleaded guilty in August 2009 to charges of bribery conspiracy, mail fraud conspiracy and procurement fraud. Martinez admitted he accepted bribes from a local construction company in return for approving inflated invoices and from several local contractors in return for favorable influence during the approval of city contracts.

Former County Sheriff Sentenced for Racketeering Activities

On December 18, 2009, in Harrisonburg, Va., Daniel W. Presgraves, former Sheriff of Page County, was sentenced to 19 months in prison and ordered to forfeit $75,000 for his admitted role in a pattern of racketeering activities. Presgraves pleaded guilty in August 2009 to one count of racketeering. According to court documents, Presgraves admitted to attempting to persuade certain former employees of the Page County Sheriff’s Office, and their families, from speaking to Federal authorities about his illegal activity. Presgraves also admitted that he improperly used inmates from the Page County Jail, which as sheriff was under his supervision, to perform unapproved personal and commercial tasks at his home and in relation to his business as a contractor. This illegal labor was used by the defendant for both personal and financial gain.

Construction Company President Sentenced to Prison in Tulsa Public Works Bribery Case

On December 14, 2009 in Tulsa, Okla., Max Elliot Wolf was sentenced to 57 months in prison for taking part in a bribery scheme involving millions of dollars in taxpayer funds intended for city streets, bridges and other public works projects in the City of Tulsa.  He was also ordered to pay restitution in the amount of $939,078 which will be restored to the City of Tulsa.  According to court documents, Wolf admitted that from mid-2005 until June 2008, he made numerous bribery payments to a former Tulsa Public Works Field Engineering Manager with the intent to influence and reward him for certifying fraudulent inflated invoices submitted by Horizon Construction Company, Inc., where Wolf served as president.

Former U.S. Army Officer Sentenced to Five Years in Prison for Role in Bribery Conspiracy in Al-Hillah, Iraq

On December 8, 2009, in Trenton, N.J., Curtis Whiteford, a former colonel in the U.S. Army Reserves, was sentenced to 60 months in prison, to be followed by two years of supervised release, and ordered to pay $16,200 in restitution. Whiteford, of Deweyville, Utah, was charged in a 25-count indictment, along with former U.S. Army Lt. Col. Debra M. Harrison, former U.S. Army Reserves Lt. Col. Michael Wheeler, and civilians William Driver and Seymour Morris Jr., with various crimes related to a scheme to defraud the Coalition Provisional Authority-South Central Region (CPA-SC).  On November 7, 2008, a federal jury convicted Whiteford of conspiracy to commit bribery and the interstate transport of stolen property (ITSP).  Wheeler was convicted of conspiracy to commit bribery, honest services wire fraud, ITSP and possessing unregistered firearms. According to testimony at trial, Whiteford and Wheeler conspired from December 2003 to December 2005 with at least three others to rig the bids on contracts being awarded by the CPA-SC so that more than 20 contracts were awarded to a co-conspirator, Philip H. Bloom, a U.S. citizen who owned and operated several companies in Iraq and Romania.  Bloom received approximately $8 million in rigged contracts. Testimony revealed that Bloom, in return, provided Whiteford, Harrison, Wheeler and others with more than $1 million in cash, SUVs, sports cars, a motorcycle, jewelry, computers, business class airline tickets, liquor, promise of future employment with Bloom and other items of value. Bloom was sentenced in February 2007 to 46 months in prison and ordered to forfeit $3.6 million for his role in the bribery and money laundering scheme. Debra Harrison was sentenced in June 2009 to 30 months in prison and ordered to pay over $360,000 in restitution. On December 11, 2009, William Driver was sentenced to three years probation of which six months will be in home detention. Wheeler will be sentenced at a later date. Morris was acquitted at trial.

Army Officer, Wife, and Relatives Sentenced in Scheme Related to Department of Defense Contracts

On December 2, 2009, in San Antonio, Texas, a former U.S. Army contracting officer, his wife, his sister, and his niece were sentenced for their participation in a scheme related to bribes paid for contracts awarded in support of the Iraq war.  John L. Cockerham, a major in the U.S. Army, was sentenced to 210 months in prison, to be followed by three years of supervised release, and ordered to pay $9.6 million in restitution. Melissa Cockerham, John Cockerham’s wife, was sentenced to 41 months in prison, to be followed by three years of supervised release, and ordered to pay $1.4 million in restitution.  Carolyn Blake, John Cockerham’s sister, was sentenced to 70 months in prison, to be followed by three years of supervised release, and ordered to pay $3.1 million in restitution.  Nyree Pettaway, John Cockerham’s niece, was sentenced to 12 months and one day in prison, to be followed by two years of supervised release, and ordered to pay $5 million in restitution. John Cockerham pleaded guilty in February 2008 to conspiracy, bribery, and money laundering for his participation in a complex bribery scheme while working as an Army contracting officer in Kuwait in 2004 and 2005. Cockerham was responsible for awarding contracts for services to be delivered to troops in Iraq. Cockerham admitted that in return for awarding contracts, he received more than $9 million in bribe proceeds. Cockerham directed the contractors to pay his wife and sister, among others, in order to conceal the receipt of bribe payments. Melissa Cockerham pleaded guilty in February 2008 to money laundering for accepting $1.4 million on John Cockerham’s behalf and admitted that she stored the money in safe deposit boxes at banks in Kuwait and Dubai. Blake pleaded guilty in March 2009 to money laundering for accepting more than $3 million on John Cockerham’s behalf and admitted that she stored the money in safe deposit boxes at banks in Kuwait. Both Melissa Cockerham and Blake also admitted that they obstructed justice by impeding and obstructing the investigation. Nyree Pettaway pleaded guilty in July 2009 to conspiring with John Cockerham, Blake and others, to obstruct the investigation of money laundering related to Cockerham’s receipt of bribes. Pettaway admitted that Cockerham solicited her help in creating cover stories for the millions of dollars he received and in returning $3 million in cash to co-conspirators for safekeeping.

Tribal Leader in Arizona Sentenced for Theft of $300,000 in Tribal Funds

On November 30, 2009, in Phoenix, Ariz., Evelyn James, of Tuba City, Arizona, and a Tribal Council member of the San Juan Southern Paiute Tribe in Arizona, was sentenced to 24 months in prison and fined $75,000 for making false statements, theft from a tribal government receiving federal funds, and money laundering. In pleading guilty, she admitted to stealing almost $300,000 in tribal funds.  James intermittently served as the Tribal President of the San Juan Southern Paiute Tribe and in that capacity, completed, signed and submitted false statements and records to obtain funds for the tribe from the Community Oriented Policing Services (COPS) program. COPS provides financial assistance to eligible police departments to help improve community policing efforts. James submitted falsified accountings in which she asked for reimbursement from the COPS program for expenditures that were never made by the tribe. The false submissions indicated that the tribe hired and paid three police officers when no officers were ever hired, trained or employed. Through James’s false submissions, the tribe wrongfully received approximately $224,997 in grant funds from the COPS program. Beginning in 2005, James wrote checks to herself from money drawn on the tribal bank account. During 2005, James stole approximately $300,000 in tribal funds in this fashion.

Former Ukrainian Prime Minister Sentenced to 97 Months in Prison

On November 18, 2009, in San Francisco, Calif., Pavel Ivanovich Lazarenko was sentenced to 97 months in prison, ordered to pay a $9 million fine and forfeit $22,851,000 and various specified assets resulting from his money laundering convictions. The court deferred decision on restitution.  Lazarenko was convicted on June 3, 2004, on 29 counts of money laundering, wire fraud and interstate transportation of stolen property. During the trial, evidence showed that starting in the early 1990s, when he was the governor of an industrialized region in Ukraine, Lazarenko abused his official authority to extort Ukrainian businessman Peter Kiritchenko of 50 percent of his profits. Over time, and as Lazarenko rose in office to become the Prime Minister, Kiritchenko paid Lazarenko $30 million, which was half of Kiritchenko’s $60 million in profits. At Lazarenko’s direction, Kiritchenko assisted him in laundering the proceeds of that extortion through accounts in Poland, Switzerland, Antigua, and, ultimately, the United States, where Lazarenko used a shell company to conceal his purchase of a multi-million dollar residence in Marin, Calif.  Kiritchenko pleaded guilty to one count of receipt of stolen property and testified against Lazarenko.  After trial, the court dismissed fifteen counts and sentenced Lazarenko on fourteen counts. The Ninth Circuit Court of Appeals later affirmed all of Lazarenko’s money laundering convictions (eight counts) dismissed the other charges and vacated the original sentence. This sentencing was on the eight counts of money laundering. This case is the first prosecution of a foreign leader for laundering the proceeds of extortion through financial institutions in the United States.

Former Officers of VECO Corporation Sentenced for Roles in Alaska Public Corruption Scheme

On October 28, 2009, in Anchorage, Alaska, Bill J. Allen and Richard L. Smith were each sentenced for their participation in a corruption scheme in which they provided approximately $395,000 in corrupt payments to public officials from the state of Alaska.  Allen, the former chief executive officer of VECO Corporation, was sentenced to 36 months in prison, three years of supervised release, and ordered to pay a $750,000 fine. Smith, the former vice president of community and government affairs for VECO Corporation, was sentenced to 21 months in prison, three years of supervised release and ordered to pay a $10,000 fine.  Both defendants pleaded guilty in May 2007, to an Information charging them with bribery; conspiracy to commit bribery, extortion under color of official right, honest services, mail and wire fraud, and conspiracy to defraud the Internal Revenue Service (IRS). According to court documents, Allen and Smith conspired with at least five members of the Alaska legislature to provide illegal financial benefits to several Alaska elected officials in exchange for those officials’ support on legislation pending before the Alaska state legislature. Allen and Smith also admitted that they provided approximately $395,000 in benefits to public officials from the state of Alaska in connection with the scheme.

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