Donald Hill Charged with Extortion, Bribery

Federal authorities unsealed indictments Monday, Oct .1, alleging a bribery and extortion scheme within Dallas City Hall involving state Rep. Terri Hodge, numerous past and present city officials, and a prominent real estate developer.^[1] The indictments charge 16 defendants with illegal dealings with contractors who were building publicly funded affordable-housing developments in Dallas.^[2] At the heart of the indictments is the allegation that public officials accepted bribes and kickbacks to help Potashnik's company, Southwest Housing, receive construction contracts.^[3]

Donald Hill, specifically, faces four counts of bribery, two counts of extortion, two counts of conspiracy to commit money laundering and one count each of tax evasion, conspiracy to commit bribery, conspiracy to commit extortion, and conspiracy to commit deprivation of honest services.^[4]

Extortion
Interference with commerce by threats or violence (extortion) is covered under 18 U.S.C. § 1951, wherein it states that whoever in any way or degree obstructs, delays, or affects commerce or the movement of any article or commodity in commerce, by robbery or extortion or attempts or conspires so to do, or commits or threatens physical violence to any person or property in furtherance of a plan or purpose to do anything in violation of this section shall be fined under this title or imprisoned not more than twenty years, or both.^[5]

(b) As used in this section the term “extortion” means the obtaining of property from another, with his consent, induced by wrongful use of actual or threatened force, violence, or fear, or under color of official right.^[6]

To convict a defendant under section 1951, the government must prove "two essential elements, (1) extortion or attempted extortion, and (2) that such extortion or attempted extortion affect interstate commerce."^[7] Extortion extremely well defined by section 1951(b)(2), to the extent that only "a de minimus showing is necessary to establish the interstate nexus required for” an extortion charge.^[8]

Federal criminal defense attorney Douglas McNabb has previously written about the federal crime of bribery here.

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^[1] Jeff Carlton, 16 indicted in Dallas public corruption case, Associated Press Newswire, October 1, 2007, available at LEXIS, News Library, Wire News Services.
^[2] Id. The 31-count main indictment names 14 defendants. Among the key figures are Hodge; former Mayor Pro Tem and one-time mayoral candidate Donald W. Hill and his wife, Sheila D. Farrington; and real-estate developer Brian L. Potashnik and his wife, Cheryl L. Potashnik. Jack Potashnik, Brian Potashnik's father, is named in a separate indictment.
^[3] AP Staff, Housing developer pleads not guilty in city hall corruption case, Associated Press Newswire, October 2, 2007, available at LEXIS, News Library, Wire News Services.
^[4] Id.
^[5] 18 U.S.C. § 1951(a).
^[6] Id., at § 1951(b)(2).
^[7] United States v. Floyd, 228 F.2d 913, 919 (7th Cir. 1956).
^[8] United States v. Silverio, 335 F.3d 183, 186 (2d Cir. 2003).