Kansas Prosecutor Gets New Trial Date: Extortion

A new trial date has been set for a Kansas prosecutor who is facing federal charges related to favors and money he is accused of receiving at a Galena strip club.^[1] Cherokee County Attorney Michael Goodrich, who has resigned effective Dec. 1, was supposed to go to trial on Nov. 27 in U.S. District Court in Wichita.^[2] His new federal criminal defense attorney, Michael Hepperly, requested the trial date be pushed back because he had recently taken over the case.^[3]

U.S. District Judge Monti Belot has set a new trial date for Feb. 5 to give Hepperly more time to review evidence and discuss possible plea negotiations.^[4]

Goodrich is charged with two counts of extortion, one count of wire fraud and one count of intimidating a witness.^[5] He has pleaded not guilty to the charges; his indictment alleges that Goodrich received money and favors from the owner and employees of Sensations Gentleman's Club from Jan. 1, 2005, to September 2007 in return for favorable legal treatment.^[6] The indictment also accuses Goodrich of dismissing a traffic ticket club manager Tom Dekeyser received March 29, without Dekeyser paying any fines and costs.^[7]

If convicted, Goodrich could face a maximum penalty of 20 years in prison and a $250,000 fine on each of the extortion and wire fraud charges, and up to 10 years in prison and a fine of $250,000 on the intimidation charge, according to the U.S. attorney's office.^[8]

Federal criminal attorney Douglas McNabb has also previously discussed extortion in his blog, which can be found here; he has also discussed the federal crime of wire fraud which can be found here.

---

^[1] AP Staff, Trial pushed back to February for prosecutor accused of extortion, Associated Press Newswire, November 13, 2007, available at LEXIS, News Library, Wire News Services File.
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] Id.
^[7] Id.
^[8] Id.

FBI Moves into New Palm Beach Office to Fight Public Corruption

The FBI has shifted six agents and one supervisory position from Miami to West Palm Beach to help investigate public corruption cases which is now the office's top priority.^[1]

The West Palm Beach office now has 16 agents focused on white-collar crime, including corruption, cyber crime and health care fraud, said Timothy Delaney, assistant FBI special agent in charge of white-collar crime from Key West to Vero Beach.^[2]

Whereas white-collar crime investigators typically follow the money, the shift in manpower stems from an effort to follow land deals.^[3] Unlike Miami-Dade and Broward counties, Palm Beach still has a lot of farmland and other open tracts, and much of the area's corruption is tied to development-related transactions, Delaney said.^[4]

Since 2006, federal prosecutors have won guilty pleas from two county commissioners, two West Palm Beach city commissioners and a power broker attorney, mostly for acts related to real estate; these are the crimes that prompted the increase in investigative staff.^[5]

The additional staff also allows the bureau to do more public speaking and other community outreach, which in turn encourages people to come forward and report corruption that they otherwise might just see as a normal and intractable part of doing business, Delaney added.^[6]

In pursuing public corruption, the bureau does not limit itself to investigating public officials, but also probes others involved in the crimes, asserted Delaney.^[7] With most classes of crime, such as mortgage or credit card fraud, the FBI can decline to investigate a case.^[8] But federal authorities in South Florida place such a high priority on public corruption that the bureau is required to investigate "every instance," unless the U.S. Attorney's Office determines otherwise, Delaney said.^[9]

Public Corruption encompasses a large number of white collar crimes, the primary goals of which are to receive, offer, or give, preferred treatment or performance in return for monies, gifts or favors. There are several offenses an individual may be charged with which concern bribery, extortion, government fraud, procurement fraud, kickbacks, and misuse of public authority. We will highlight only a few of them here.

18 U.S.C. § 201 covers several forms of bribery of public officials and witnesses and states in part that whoever directly or indirectly, corruptly gives, offers or promises anything of value to any public official or person who has been selected to be a public official, or offers or promises any public official or any person who has been selected to be a public official to give anything of value to any other person or entity, with intent to influence any official act;^[10] or to influence such public official or person who has been selected to be a public official to commit or aid in committing, or collude in, or allow, any fraud, or make opportunity for the commission of any fraud, on the United States;^[11] or to induce such public official or such person who has been selected to be a public official to do or omit to do any act in violation of the lawful duty of such official or person;^[12]

Furthermore §201 defines a public official as: a Member of Congress; a Delegate; or a Resident Commissioner; an officer or employee or person acting for or on behalf of any department, agency or branch of Government of the United States, including the District of Columbia, in any official function; or a juror.^[13]

An official act is defined as any decision or action on any question, matter, cause, suit, proceeding or controversy, which may at any time be pending, or which may by law be brought before any public official, in that official's official capacity, or in that official's place of trust or profit.^[14]

18 U.S.C. § 210
Whereunder it states that it is a crime for a person to pay or offer or promise any money or thing of value, to any person, firm, or corporation in consideration of the use or promise to use any influence to procure any appointive office or place under the United States for any person, a violation of § 210 is punishable by fine, or imprisonment for not more than one year, or both.^[15]

18 U.S.C. § 211
Under section 211 it is a crime for a person to solicit or receive, either as a political contribution, or for personal emolument, any money or thing of value, in consideration of the promise of support or use of influence in obtaining for any person any appointive office or place under the United States, solicit or receive any thing of value in consideration of aiding a person to obtain employment under the United States eitherby referring his name to an executive department or agency of the United States or by requiring the payment of a fee because such person has secured such employment.^[16]

---

^[1] AP Staff, FBI adds staff to West Palm Beach for corruption investigations, Associated Press Newswire, October 21, 2007, available at LEXIS, News Library, Wire News Services File.
^[2] Id.
^[3] Tony Doris, Expanded FBI staff targeting corruption, Palm Beach Post, October 21, 2007, available at http://www.palmbeachpost.com/politics/content/local_news/epaper/2007/10/21/s1c_FBI_1021.html (last visited October 22, 2007).
^[4] Id.
^[5] Id.
^[6] Id.
^[7] Id.
^[8] Id.
^[9] Id.
^[10] 18 U.S.C. § 201(b)(1)(A)(2007).
^[11] Id., at § 201(b)(1)(B).
^[12] Id., at § 201(b)(1)(C).
^[13] Id., at § 201(a).
^[14] Id.
^[15] 18 U.S.C. § 210 (2007).
^[16] 18 U.S.C. § 211 (2007).

Louisiana Judges Charged with Public Corruption and RICO crimes

A federal grand jury has charged two Caddo Parish, Louisiana judges with taking bribes to give light sentences.^[1] District Judges Michael Walker and Vernon Claville, along with bondsmen Robert Bradford and Larry Williams, all of Shreveport, were indicted on multiple RICO violations.^[2]

Federal authorities began their investigation of Walker in 2003. Investigators were able to substantiate that Walker was fixing cases through a review of the sentences he imposed over a period of time in the Caddo drug court.^[3] Bradford and a cooperating witness are alleged to have acted as middlemen for Walker. ^[4]

FBI authorized wiretaps on cellular telephones aided authorities in investigation that was dubbbed code name "Broken Gavel."^[5] A series of calls intercepted in late February and early March detailed a plan of one man to gain Walker's favor with a state probation hold of his girlfriend.^[6]

RICO is the Racketeer Influenced and Corrupt Organizations Act, a U.S. law that aims to curb organized crime and public corruption by prohibiting activities such as racketeering, bribery, extortion and mail, wire and bank fraud.

RICO crimes are outlined under 18 U.S.C. § 1962, and under this section, there are three different crimes that can be committed, plus an additional conspiracy provision.

The first crime is detailed in §1962 as being unlawful for any person who has received any income derived, directly or indirectly, from a pattern of racketeering activity or through collection of an unlawful debt in which such person has participated as a principal within the meaning of section 2, title 18, United States Code, to use or invest, directly or indirectly, any part of such income, or the proceeds of such income, in acquisition of any interest in, or the establishment or operation of, any enterprise which is engaged in, or the activities of which affect, interstate or foreign commerce. A purchase of securities on the open market for purposes of investment, and without the intention of controlling or participating in the control of the issuer, or of assisting another to do so, shall not be unlawful under this subsection if the securities of the issuer held by the purchaser, the members of his immediate family, and his or their accomplices in any pattern or racketeering activity or the collection of an unlawful debt after such purchase do not amount in the aggregate to one percent of the outstanding securities of any one class, and do not confer, either in law or in fact, the power to elect one or more directors of the issuer.^[7]

It shall also be unlawful for any person through a pattern of racketeering activity or through collection of an unlawful debt to acquire or maintain, directly or indirectly, any interest in or control of any enterprise which is engaged in, or the activities of which affect, interstate or foreign commerce.^[8]

Furthermore it shall be unlawful for any person employed by or associated with any enterprise engaged in, or the activities of which affect, interstate or foreign commerce, to conduct or participate, directly or indirectly, in the conduct of such enterprise’s affairs through a pattern of racketeering activity or collection of unlawful debt.^[9]

Lastly it shall be unlawful for any person to conspire to violate any of the provisions of subsection (a), (b), or (c) of this section.^[10]

---

^[1] AP Staff, 2 Louisiana judges indicted, Associated Press Newswire, October 11, 2007, available at LEXIS, News Library, Wire News Services.
^[2] Id.
^[3] Vickie Welborn, Federal grand jury indicts two Caddo judges, Shreveport Times, October 11, 2007, available at http://www.shreveporttimes.com/apps/pbcs.dll/article?AID=/20071011/NEWS03/710110321/1062/NEWS03 (last visited October 11, 2007).
^[4] Id.
^[5] Id.
^[6] Id.
^[7] 18 U.S.C. § 1962 (a)(2007).
^[8] Id., at § 1962 (b)(2007).
^[9] Id., at § 1962(c)(2007).
^[10] Id., at § 1962(d)(2007).

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.

---

^[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).

Judge Overturns Jury Verdict in Public Corruption Case

Former Mayor Ted LeBlanc was found guilty last April as a result of a probe that also netted convictions of former Norristown administrator Anthony Biondi and contractor Thomas Carbo.^[1]

LeBlanc was also found guilty of honest services fraud, bribery, bank fraud, and tax charges.^[2] LeBlanc, a republican, allegedly accepted a $10,000 bribe from borough insurance agent Herbert Bagley in exchange for LeBlanc insuring that Bagley (who is charged with paying a bribe to LeBlanc) continued to be appointed the borough’s insurance broker.^[3] Bagley was in danger of losing his contract because his business partner had been charged in state court with stealing hundreds of thousands of dollars of borough insurance payments in late 2002.^[4]

Carbo, who owned Tommy's Paving & Excavating and was involved in the contracting with the other men, was convicted of mail fraud and conspiracy in June 2006 and was facing 24 to 30 months in prison. ^[5] The jury deliberated for a little more than four hours following a six-day trial.^[6]

However now a federal judge has taken the rare action of overturning the jury’s verdict, saying no "rational" jury would have found a suburban contractor guilty in a public corruption case.^[7] According to testimony, Biondi paid Carbo for use of a truck that Biondi needed to do moonlighting jobs, and then awarded Carbo borough work without disclosing their financial relationship.^[8]

Federal criminal defense lawyer Dino Privitera had argued that Carbo should not be held criminally responsible for Biondi's lapse.

In a 75-page ruling issued Friday, Aug 10, U.S. District Judge Mary McLaughlin agreed.^[9] "The evidence presented is insufficient to allow a rational jury to find beyond a reasonable doubt that Mr. Carbo knew that Mr. Biondi was required to disclose their relationship to the state," she wrote.^[10]

Honest Services Fraud
When a person is convicted of some type of “honest services” fraud, it really means that 18 U.S.C. § 1346 is being used. Under section 1346, the term “scheme or artifice to defraud,” as found in the mail fraud statute, is understood to include a scheme or artifice to deprive another of the intangible right of honest services.

Mail Fraud
Under 18 U.S.C. § 1341, it is a crime for a person to devise a scheme or artifice to defraud, and then use the nation’s mail system to carry out that scheme. The punishment for a violation of section 1341 is a fine, imprisonment for up to 20 years or both. If a financial institution is harmed in the scheme, the fine can be as high as $1,000,000, and the prison sentence can be as long as 30 years.

Federal criminal defense attorney Douglas McNabb has previously discussed the federal crime of bank fraud in his blog, here.

---

^[1] AP Staff, U.S. judge overturns contractor's guilt in Norristown corruption, Associated Press Newswire, August 13, 2007, available at available at LEXIS, News Library, Wire News Services File.
^[2] Rich Manieri, U.S. Attorneys Office Press Release, Former Norristown, PA, Mayor Found Guilty, April 17, 2007, available at http://www.usdoj.gov/usao/pae/News/Pr/2006/apr/LeBlanc.html (last visited August 13, 2007).
^[3] Id
^[4] Id.
^[5] AP Staff, supra note 1.
^[6] Manieri, supra note 2.
^[7] AP Staff, supra note 1.
^[8] Id.
^[9] Id.
^[10] Id.

Former North Carolina Speaker to be Sentenced

Jim Black, who at one point was the Speaker of the North Carolina House, will receive his sentence Wednesday after he plead guilty in February to accepting illegal gratuities.^[1] Black was first elected to the House in 1980, Black lost a re-election bid in 1984.^[2] He returned to Raleigh in 1991 and won his first race for speaker eight years later by a single vote. He went on to serve four terms in the House's top job.^[3]

In federal court, prosecutors presented evidence in February showing Black accepted a total of about $25,000 in cash on four occasions between February 2002 and December 2005 from three chiropractors as a "reward" for his efforts in state government.^[4] Black and the chiropractors met twice in restaurant bathrooms to make the cash transfers.^[5]It is also alleged Black received a $500,000 check from a lobbyist in June 2000 that was deposited directly into his campaign account.^[6] Black then supposedly wrote a check from his campaign account for the same amount back to the lobbyist. But shortly thereafter, Black made another $500,000 deposit into his campaign account and reported it in campaign filings as a personal loan.^[7]

Bribery
Bribery is covered under 18 U.S.C. § 210 (2007) wherein it states that under section 210, it is a crime for a person to pay or offer or promise any money or thing of value, to any person, firm, or corporation in consideration of the use or promise to use any influence to procure any appointive office or place under the United States for any person, The punishment for a violation of section 210 is a fine, imprisonment for not more than one year, or both.

Bribery of public officials and witnesses is covered under 18 U.S.C. § 201(b) and states that whoever;

1) directly or indirectly, corruptly gives, offers or promises anything of value to any public official or person who has been selected to be a public official, or offers or promises any public official or any person who has been selected to be a public official to give anything of value to any other person or entity, with intent - A) to influence any official act;^[8] or B) to influence such public official or person who has been selected to be a public official to commit or aid in committing, or collude in, or allow, any fraud, or make opportunity for the commission of any fraud, on the United States;^[9] or C) to induce such public official or such person who has been selected to be a public official to do or omit to do any act in violation of the lawful duty of such official or person;^[10]

2) being a public official or person selected to be a public official, directly or indirectly, corruptly demands, seeks, receives, accepts, or agrees to receive or accept anything of value personally or for any other person or entity, in return for: A) being influenced in the performance of any official act;^[11] B) being influenced to commit or aid in committing, or to collude in, or allow, any fraud, or make opportunity for the commission of any fraud, on the United States;^[12] or C) being induced to do or omit to do any act in violation of the official duty of such official or person;^[13]

3) directly or indirectly, corruptly gives, offers, or promises anything of value to any person, or offers or promises such person to give anything of value to any other person or entity, with intent to influence the testimony under oath or affirmation of such first-mentioned person as a witness upon a trial, hearing, or other proceeding, before any court, any committee of either House or both Houses of Congress, or any agency, commission, or officer authorized by the laws of the United States to hear evidence or take testimony, or with intent to influence such person to absent himself therefrom;^[14]

4) directly or indirectly, corruptly demands, seeks, receives, accepts, or agrees to receive or accept anything of value personally or for any other person or entity in return for being influenced in testimony under oath or affirmation as a witness upon any such trial, hearing, or other proceeding, or in return for absenting himself therefrom;^[15] shall be fined under this title or not more than three times the monetary equivalent of the thing of value, whichever is greater, or imprisoned for not more than fifteen years, or both, and may be disqualified from holding any office of honor, trust, or profit under the United States.

---

^[1] Gary D. Robertson, Ex-NC speaker Black arrives in court, Associated Press Newswire, July 11, 2007, available at LEXIS, News Library, Wire News Services File.
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] Id.
^[7] Id.
^[8] 18 U.S.C. § 201(b)(1)(A)(2007).
^[9] Id., at § 201(b)(1)(B).
^[10] Id., at § 201(b)(1)(C).
^[11] Id., at § 201(b)(2)(A).
^[12] Id., at § 201(b)(2)(B).
^[13] Id., at § 201(b)(2)(C).
^[14] Id., at § 201(b)(3).
^[15] Id., at § 201(b)(4).

El Paso Public Corruption Investigation Goes Further Than Expected

Elizabeth “Betti” Flores, a former El Paso County commissioner pleaded guilty to conspiracy to commit mail fraud and wire fraud for accepting bribes in exchange for votes, the latest plea in an ongoing public corruption investigation.^[1]

In recent months, the FBI has raided the offices of El Paso County Judge Anthony Cobos, two county commissioners and other local officials, including Cobos’ former chief of staff. The latest plea came from former County Commissioner Flores, who admitted in her plea to taking bribes in exchange for votes on county contracts and other issues.^[2] According to one count, she was paid $10,000 to vote in favor of a contract for the $20 million El Paso County Parking Garage Annex and to advocate change orders to that contract. The contract was awarded in 2004.^[3]

Flores pleaded guilty Friday to four charges of conspiracy to commit mail fraud and the deprivation of honest services and two charges of conspiracy to commit wire fraud. Each count could bring her 20 years in prison.^[4]

Cobos’ former chief of staff, John Travis Ketner, pleaded guilty last month to corruption charges and claimed he was hired specifically to solicit bribes from vendors looking for county contracts.^[5] He filed an 18-page document in federal court implicating others and describing how a campaign donation, cash or trip could secure a lucrative taxpayer-funded contract.^[6]

We have previously blogged at length about the following crimes: Mail Fraud, Wire Fraud, and Public Corruption

---

^[1] AP Staff, Ex-El Paso Official Pleads to Corruption, Associated Press Newswire, July 9, 2007, available at LEXIS, News Library, Wire News Services File.
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] Id.

Dallas School Board Members Accused of Bribery

William Frederick Coleman III, the former deputy superintendent and chief operating officer for Dallas schools, and former chief technology officer Ruben B. Bohuchot were accused of taking bribes to help win contracts for Frankie Logyang Wong’s company, Micro Systems Engineering Inc.^[1]

The two former Dallas school district officials are accused of taking bribes from a Houston businessman whose company was awarded nearly $40 million in technology contracts, according to a federal indictment unsealed Tuesday.^[2] The indictment alleges Coleman served as a facilitator between Wong and Bohuchot, who was in charge of technology contracts for Dallas public schools. The district eventually awarded two contracts worth $39 million to the Houston-based company.^[3]

The men face charges of bribery, conspiracy to commit bribery through a program receiving federal funds and conspiracy to commit money laundering. Bohuchot and Coleman are facing charges of obstruction of justice, and Bohuchot is charged with making false statements on tax returns.^[4]

Bohuchot, and Wong, pleaded not guilty in federal court Tuesday to an indictment that alleges the three men took bribes and also laundered about $2.5 million to disguise payments from Micro Systems to Bohuchot, Coleman and others.^[5]

Bribery
Bribery is covered under 18 U.S.C. § 210 (2007) wherein it states that under section 210, it is a crime for a person to pay or offer or promise any money or thing of value, to any person, firm, or corporation in consideration of the use or promise to use any influence to procure any appointive office or place under the United States for any person, The punishment for a violation of section 210 is a fine, imprisonment for not more than one year, or both.

We have previously spoken about the crime of money laundering, here.

We have previously discussed the crime of bribery through a program receiving federal funds, here.

---

^[1] Jeff Carlton, Former Dallas school officials, Houston man face bribery charges, Associated Press Newswire, May 29, 2007, available at LEXIS, News Library, Wire News Services.
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.

Brooklyn Judge Found Guilty of Accepting Bribes

A jury, Thursday April 19, convicted former Brooklyn state Supreme Court Justice Gerald Garson of accepting expensive gifts in exchange for helping fix divorce cases.^[1] The crimes were actually captured on hidden-camera videos made in his chambers. Despite the video evidence, the jury deliberated two days before finding Garson guilty of receiving bribes and accepting rewards for official misconduct.^[2]

During the trial, which lasted five-weeks, jurors viewed surveillance videos showing a divorce lawyer, Paul Siminovsky, giving Garson a $250 box of cigars and $1,000 in cash.^[3] It was alleged that the judge was being bribed so he would award the lawyer lucrative guardianships in child custody cases and give him advice on winning divorce cases.^[4] Prosecutors alleged that Garson violated his neutrality by letting the lawyer buy him thousands of dollars worth of meals and drinks.^[5]

The bribery was discovered in 2002, when a woman came forth after receiving information that her husband, a client of Siminovsky, had arranged to bribe Garson.^[6] Garson was the presiding judge in the couple's divorce. Investigators arrested Siminovsky who agreed that day to wear a wire while having lunch with Garson.^[7] Jurors heard were then played audiotapes of Garson sharing strategy with Siminovsky, and questioning why Siminovsky slipped the box of 25 Dominican cigars into the judge's desk.^[8]

This case arose from a larger investigation spurred by allegations that civil judgeships were being bought and sold for up to $50,000.^[9] Hard evidence of such brokering was never found, but the ensuing scandal did bring down the longtime head of the Brooklyn Democratic Party and resulted in convictions of courthouse staff and other lesser figures.^[10]

We have previously discussed the crime of bribery in this blog, available here.

---

^[1] Tom Hayes, Ex-judge convicted of accepting bribes in divorce cases, Associated Press Newswire, Apr. 20, 2007, available at LEXIS, News Library, Wire News Services File.
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] Id.
^[7] Id.
^[8] Id.
^[9] Id.
^[10] Id.

NJ State Senator in Court Today on Fraud and Bribery Charges: Bryant

New Jersey State Senator Wayne Bryant is expected in federal court this morning, Apr. 9, where he will plead not guilty to fraud, bribery and pension-padding charges.^[1]

He is accused of using his clout as head of the Senate Budget Committee to steer millions in grants to two state schools that gave him no-show jobs.^[2] Bryant was named in a 20-count indictment accusing the senator with tripling his taxpayer-funded pension through jobs at the University of Medicine and Dentistry of New Jersey in Stratford (UMDNJ), Rutgers-Camden Law School and Gloucester County Board of Social Services.^[3]

Former UMDNJ dean R. Michael Gallagher, who was indicted along with Bryant also faces multiple fraud charges; the indictment alleges that Gallagher capitalized on Bryant's influence to become dean, then put Bryant on the school's payroll.^[4] In exchange, the senator, who at one time was one of Trenton's most powerful lawmakers, helped out the school's interests at budget time.^[5]

Bryant and Gallagher face mail and wire fraud charges that could result in lengthy prison terms and large fines if they are convicted.^[6] Bryant also faces bribery charges in connection with salaries he drew from jobs for which he allegedly performed little work.^[7]

Mail fraud
Mail Fraud is criminalized by 18 U.S.C. § 1341. Section 1341 is a rather dense and convoluted statute. Under this section, it is a crime for a person who has devised or intends to devise any scheme or artifice, to defraud, or to obtain money or property by means of false or fraudulent pretenses, representations, or promises, or to sell, dispose of, loan, exchange, alter, give away, distribute, supply, or furnish or procure for unlawful use any counterfeit or spurious coin, obligation, security, or other article, or anything represented to be or intimated or held out to be such counterfeit or spurious article, for the purpose of executing such scheme or artifice, to place in any post office or authorized depository for mail matter, any matter or thing whatever to be sent or delivered by the Postal Service, or to deposit or cause to be deposited any matter or thing whatever to be sent or delivered by any private or commercial interstate carrier, or to take or receive therefrom, any such matter or thing, or to knowingly cause to be delivered by mail or such carrier according to the direction thereon, or at the place at which it is directed to be delivered by the person to whom it is addressed, any such matter or thing.

Honest Services Fraud
When a person is convicted of some type of “honest services” fraud, it really means that 18 U.S.C. § 1346 is being used, which it is in Bryant’s case. Under section 1346, the term “scheme or artifice to defraud,” as found in the mail fraud statute, is understood to include a scheme or artifice to deprive another of the intangible right of honest services.

Bribery Concerning Programs Receiving Federal Funds
Bryant is also being accused of violating 18 U.S.C. § 666(a)(2), which is bribery concerning programs receiving federal funds. A person commits a crime under this statute if they corruptly give, offer, or agree to give anything of value to any person, with intent to influence or reward an agent of an organization or of a State, local or Indian tribal government, or any agency thereof, in connection with any business, transaction, or series of transactions of such organization, government, or agency involving anything of value of $5,000 or more.

A violation of section 1341 alone can result in a fine of up to $1,000,000, imprisonment for up to 30 years, or both.^[8] Bryant, faces a maximum of 20 years on each of the most serious charges, however, he could be exposed to a maximum of 150 years in prison if convicted on all charges and sentenced to consecutive terms, according to federal prosecutor William Fitzpatrick.^[9] Gallagher faces a maximum 220-year term if convicted on all counts and is sentenced to maximum consecutive terms for each.^[10]

Bryant is also accused of violating 18 U.S.C. § 1343 (Wire Fraud) which has been previously discussed here.

---

^[1] Staff, Bryant due in court this morning, Newark Star-Ledger, Apr. 9, 2007, available at http://blog.nj.com/ledgerupdates/2007/04/bryant_due_in_court_this_morni.html (last visited Apr. 9, 2007).
^[2] Id.
^[3] Angela Delli Santi, Bryant, UMDNJ dean to plead not guilty, Associated Press Newswire, Apr. 7, 2007, available at LEXIS, News Library, Wire News Services File.
^[4] Id.
^[5] Id.
^[6] Id.
^[7] Id.
^[8] 18 U.S.C. § 1341 (2007).
^[9] Santi, supra note 3.
^[10] Id.

Judges Wait on Their own Jury Verdict

U.S. District Court Judge Henry T. Wingate placed a judicial bribery case into the hands of 12 jurors late Thursday, after a day of closing arguments from defense attorneys and a prosecutor whose voice cracked with emotion as she wrapped up the government's case.^[1]

Attorney Paul Minor and former state court judges John Whitfield and Wes Teel are counting on the justice system they tried to circumvent as they wait to their own verdict.^[2] Minor allegedly bribed Whitfield with $140,000 in loans and payments and other cash gifts; Teel allegedly received a $25,000 loan that Minor later repaid through a third party, plus assistance and $10,000 to defend him against unrelated state charges that didn't stick.^[3]

December 2001 Minor's client, The Peoples Bank, got a settlement of $1.5 million in a case Teel handled in Chancery Court.^[4] Minor's firm won a $3.6 million verdict Circuit Court Judge Whitfield awarded in July 2000 to an injured offshore worker.^[5] According to prosecutors, Minor’s bribed the judges by securing and making loan payments for the judges.^[6] Bribery is the root of 14 felony charges leveled against the defendants, including conspiracy and fraud and, in Minor's case, racketeering.^[7]

Bribery
Under 18 U.S.C. § 201, it is a crime for a person to corruptly give anything of value to any public official with the intent to influence any official act.^[8]The punishment for violating section 201 is a fine of up to $250,000 or not more than three times the monetary equivalent of the thing of value, whichever is greater, imprisonment for up to fifteen years, or both.^[9]

RICO Violations
Under 18 U.S.C. § 1962, it is a crime for a person associated with an enterprise engaged in interstate or foreign commerce to conduct or participate, directly or indirectly, in the conduct of that enterprise’s affairs through a pattern of racketeering activity.^[10]The term “racketeering activity” includes bribery and mail and wire fraud.^[11] The punishment for violating section 1962 is a fine, imprisonment for up to 20 years, or both.^[12]

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^[1] Anita Lee, Closing arguments given in bribery case, Bradenton Herald, March 30, 2007.
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] Id.
^[7] Id.
^[8] 18 U.S.C. § 201(b)(1)(A) (2007).
^[9] Id. § 201(b).
^[10] 18 U.S.C. § 1962(c) (2007).
^[11] Id. § 1961(1)(b).
^[12] Id. § 1963(a).