Is this just the tip of the iceberg when it comes to the Federal Housing grant business?
...............................................................
Affidavit: Prince George's County MD executive took bribes from developers
November 12, 2010
wtop.com
WASHINGTON - Prince George's County Executive Jack Johnson and his wife, Councilmember-elect Leslie Johnson were arrested and charged Friday in an FBI sting following a four-year federal investigation allegedly involving bribes related to housing development funding.
The Johnsons are charged with tampering with a witness and evidence relating to the commission of a federal offense in connection and destruction, alteration and falsification of records in a federal investigation.
According to court documents, Johnson took bribes and kickbacks in exchange for helping a developer secure federal funding for housing developments in the area.
The charges are just the "tip of the iceberg" and federal officials expect additional charges and defendants to come from the investigation, United States Attorney for the District of Maryland Rod Rosenstein said at a Friday news conference.
The FBI and IRS investigation began in January 2006, when FBI agents discovered Prince George's County-based real estate developers and their associates were regularly providing things of value to public officials in exchange for official acts that were favorable to these individuals and their companies.
The investigation is related to funding for the HOME Investment Partnerships program, a U.S. Department of Housing and Urban Development maintained program that provides grants to states and counties to fund activities that buy, build or rehabilitate affordable housing for rent or home-ownership or provide rent assistance to low-income individuals.
According to court documents, the Johnsons accepted money from a developer who sought and received HOME funds from the county for development projects within the county.
Johnson began receiving checks - including one for $100,000 from the developer - as early as 2007, according to court documents.
On Nov. 5, the FBI videotaped a meeting between the developer and Johnson, in which the developer gave Johnson $5,000 in return for Johnson agreeing to help the developer.
Shortly before his arrest on Friday, the FBI videotaped the developer giving $15,000 to Johnson during another meeting.
After witnessing the exchange, FBI agents walked into the room, identified themselves and asked Johnson about the money.
Johnson told FBI agents that the money was for a party to mark the end of his term as county executive and denied having any business dealings with the developer.
FBI agents searched Johnson and found the $15,000 and a cell phone they had been monitoring through wiretaps since January 2010. However, agents told Johnson he was free to leave.
After FBI agents left, Johnson made a series of phone calls to his wife, Leslie, who was at their Mitchellville home.
At 10:10 a.m. Friday, FBI agents arrived at the Johnsons' home. According to court documents, Leslie Johnson called Johnson at 10:12 a.m. to tell him there were "two women" at the door. Johnson advised his wife not to answer the door and go into their bedroom and get a $100,000 check out of his underwear drawer.
The Johnsons discussed what to do with cash stored in a liquor cabinet, and Johnson advised his wife to rip up the check, put the cash in her underwear or "put it in your bra," according to court documents.
Leslie Johnson then told her husband the women at the door identified themselves as FBI agents, and asked her husband if he wanted her to put the check "down the toilet." Johnson told his wife to flush the $100,000 check and put "the cash" in her underwear.
Once FBI agents entered the home, they found $79,600 in cash in Leslie Johnson's underwear.
After an initial appearance in U.S. District Court in Greenbelt, the Johnsons were released on their own recognizance. Johnson was placed on home detention with electronic monitoring.
The Johnsons cannot make any transactions larger than $1,000, except for mortgage, utility bills and attorney's fees. Both must turn in their passports and stay in the country.
Jack, 61, and Leslie Johnson, 58, each face a maximum sentence of 20 years in prison for tampering with a witness and evidence relating to the commission of a federal offense and for destruction, alteration and falsification of records in a federal investigation.
Johnson gave a brief statement Friday, but did not talk about the details of the case, sheepishly saying "my lawyers will kill me if I do."
"To all the citizens of Prince George's County, you know I have served you long and I have served you well," Johnson says.
"I'm innocent of these charges, and I just can't wait for the facts to come out, and when they come out, I am absolutely convinced that we will be vindicated. I have three weeks to go, and I am going to put all of my efforts to this defense and to take care of the business for the people of Prince George's County."
The FBI is asking anyone with knowledge of illegal acts or information concerning corrupt officials or acts in Prince George's County to contact them at 410-265-8080.
Maryland Attorney General Doug Gansler tells WTOP he was not informed of the search warrants or arrest prior to Johnson being taken into custody.
Johnson has served as county executive since 2002. Prior to becoming county executive, Johnson served as Prince George's County State's Attorney.
Leslie Johnson ran unopposed for the County Council and was recently elected to represent District 6.
In 2006, a Washington Post investigation revealed that 15 of Johnson's friends and political supporters had been awarded more than 50 county contracts worth more than $3 million.
Johnson has not disputed he hired friends, but said the hirings were justified because they were "first-class people."
In 2007, a county police officer who once served as Johnson's driver, was charged in the shooting of two unarmed deliverymen. One of the men shot was killed.
The officer, Keith Washington, was the senior homeland security official for Prince George's County. He was convicted of involuntary manslaughter in 2008 and sentenced to 45 years in prison.
Johnson is nearing the end of his second term as county executive. Former state delegate Rushern Baker was recently elected as county executive after securing the Democratic nomination in the primary.
|
