An Arkansas state representative pleaded guilty today to
conspiring to authorize and direct a total of $600,000 in state government
funds to two non-profit entities in exchange for tens of thousands of dollars
in kickback payments, announced Assistant Attorney General Leslie R. Caldwell
of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Elser
of the Western District of Arkansas.
Micah Neal, 42, of Springdale, Arkansas, pleaded guilty
today before U.S. District Judge Timothy L. Brooks of the Western District of
Arkansas to one count of conspiracy to commit honest services fraud. Sentencing will be scheduled at a later date.
As part of his guilty plea, Neal admitted that, between
January 2013 and January 2015, while serving in the Arkansas House of
Representatives, he conspired with an Arkansas state senator to use their
official positions to appropriate government money known as General Improvement
Funds (GIF) to a pair of non-profit entities in exchange for bribes. Specifically, Neal and the senator authorized
and directed the Northwest Arkansas Economic Development District, which was
responsible for disbursing the GIF, to award a total of $600,000 in GIF money
to the two non-profit entities. Of the
$600,000, Neal personally authorized and directed a total of $175,000 to the
entities. In return for his official
actions, Neal received approximately $38,000 in bribes from officials at those
non-profit entities.
The Federal Bureau of Investigation and the Internal Revenue
Service investigated the case. Trial
Attorney Sean Mulryne of the Criminal Division’s Public Integrity Section and
U.S. Attorney Elser and Assistant U.S. Attorney Kyra Jenner of the Western
District of Arkansas are prosecuting the case.
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