Public Corruption

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


March 1, 2010 - DALLAS—Today, U.S. District Judge Barbara M.G. Lynn sentenced the first three of the 13 defendants who have been convicted in what has become known as the “Dallas City Hall Corruption Case,” announced U.S. Attorney James T. Jacks of the Northern District of Texas.

Former Mayor Pro Tem Don Hill, 57, was sentenced to 18 years in federal prison and ordered to pay $112,500 in restitution. He must surrender to the Bureau of Prisons on April 27, 2010, to begin serving his sentence. Hill, who was on the witness stand for nearly six days during the June - October 2009 trial, was convicted on seven of nine counts charged, including one count of conspiracy to commit bribery concerning a local government receiving federal benefits; two counts of bribery concerning a local government receiving federal benefits; one count of conspiracy to commit extortion; one count of extortion by a public official; and one count of conspiracy to commit money laundering.

“The sentences imposed today on Mr. Hill, his wife and his plan commission appointee hopefully will serve as a powerful reminder to all public officials and those who work with them, that seeking to personally profit by abusing the power given them by the voters can and will result in a long prison sentence,” said U.S. Attorney Jacks. “Public corruption is one of the most insidious crimes confronting our communities today. It contributes to the cynicism we are seeing today from the public who feel as though all politicians are corrupt and the government does not serve the needs of those citizens who can’t pay for access to their elected officials.”

Jacks continued, “The investigation into the actions of these defendants was lengthy and complicated. Many questioned why the investigation was taking so long. Hopefully, the verdict and the sentences handed down today and in the future, will serve as proof of the quality of the work done by the FBI, the IRS and the prosecutors assigned to this case. Throughout the investigation, amid all the questions and criticism, they remained focused on their mission, to thoroughly examine the evidence and to present their findings in a court of law before an impartial jury. The jury’s verdict demonstrates that the facts as revealed by their investigation conclusively showed the guilt of the defendants and was not a matter of interpretation or misunderstanding or selective prosecution. When corrupt politicians are exposed and punished, the entire community reaps the benefits.”

Hill’s wife, Sheila D. Farrington, 45, was sentenced to nine years in prison and ordered to surrender to the Bureau of Prisons on the same day as her husband, April 27, 2010. Farrington was convicted at trial on five of six counts charged, including one count of conspiracy to commit bribery concerning a local government receiving federal benefits; one count of aiding and abetting bribery concerning a local government receiving federal benefits; one count of aiding and abetting extortion by public officials; and one count of conspiracy to commit money laundering

D’Angelo Lee, 43, Hill’s Plan Commission Appointee, was sentenced to 14 years in prison and ordered to pay $112,800 in restitution; he is currently in federal custody. Lee was convicted at trial on all seven of seven counts charged, including one count of conspiracy to commit bribery concerning a local government receiving federal benefits; two counts of bribery concerning a local government receiving federal benefits; one count of conspiracy to commit extortion; one count of extortion by public officials; and one count of conspiracy to commit money laundering.

Robert E. Casey, Jr., Special in Charge, Dallas FBI, said, “Communities have a right to expect that their elected leaders are ethical, trustworthy, and responsible, only representing the best interests of their constituents. Two of today's defendants betrayed the trust bestowed on them as public officials. The sentences imposed reflect the gravity of their crimes. The FBI, its law enforcement partners, and the U.S. Attorney's Office will continue to root out such graft in order to ensure that the citizens of Dallas receive honest representation by their elected officials.”

“Crimes committed by public officials violate the public trust. Part of IRS-Criminal Investigation’s mission is to assure honest taxpayers that everyone must abide by the same laws,” said Dallas Field Office, Acting Special Agent in Charge Bridget Marchetta.

Two other defendants were convicted at trial, Darren L. Reagan, 50, and Rickey Robertson, 43. Both are scheduled to be sentenced by Judge Lynn on March 1, 2010. Reagan, described as a community activist, and the chairman and CEO of the Black State Employees Association, was convicted on two of four counts charged, including one count of conspiracy to commit extortion and one count of aiding and abetting in extortion by public officials. Robertson, a local businessman/car dealer was convicted on two of three counts charged, including conspiracy to commit extortion. Robertson was also a principal of RA-MILL.

At that trial, the government presented evidence that 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. The government also presented evidence that Hill and Lee were involved in corrupt solicitation from developers in an effort to gain financial benefit. Brian and Cheryl Potashnik pleaded guilty prior to trial; Brian Potashnik pleaded guilty to one count of conspiracy to commit bribery concerning a local government receiving federal benefits and Cheryl Potashnik pleaded guilty to one count of bribery concerning a state government receiving federal benefits. Both are scheduled to be sentenced by Judge Lynn on May 7, 2010.

Other sentencing dates are as follows:

On March 19, 2010, Allen McGill, who pleaded guilty in April 2008 to one count of conspiracy to commit extortion; Andrea Spencer who also pleaded guilty in April 2008 to the same offense; Kevin J. Dean, who pleaded guilty in June 2009 to the same offense; and John J. Lewis, who pleaded guilty in March 2009 to the same offense, are scheduled to be sentenced.

On April 2, 2010, Terri Hodge, who pleaded guilty on February 3, 2010, to fraud and false statements on an income tax return, is scheduled to be sentenced.

On May 7, 2010, Jibreel A. Rashad, a.k.a. Vernon Cooks, Jr., who was convicted on February 10, 2010, following a one-week trial, of conspiracy to commit extortion, is scheduled to be sentenced.

A trial date has not been set for the charges pending against Ronald W. Slovacek. Last week the government filed a motion requesting that some of the counts be dismissed and indicating its intention to proceed to trial on only three counts: one count of conspiracy to commit bribery concerning a local government receiving federal benefits; one count of bribery concerning a local government receiving federal benefits; and one count of conspiracy to commit money laundering.

The case is being prosecuted by Criminal Chief Assistant U.S. Attorney Chad Meacham, Deputy Criminal Chief Assistant U.S. Attorney Sarah Saldaña, and Assistant U.S. Attorneys Chris Stokes, Stephen Fahey and Leigha Simonton.