Local News
'A sad day for Dallas' 
08:51 PM CDT on Monday, October 1, 2007
DALLAS — Federal prosecutors this morning announced sweeping conspiracy charges against State Rep. Terri Hodge, former Mayor Pro Tem Don Hill, low-income housing developer Brian Potashnik and 13 others.
The charges contained in a 166-page indictment include bribery and kickbacks that Hodge and Hill allegedly accepted in exchange for using their offices to help Potashnik's company, Southwest Housing, gain construction contracts.
In a separate indictment, prosecutors accused former council member James Fantroy and commercial developer Darren Reagan of embezzling federal funds in excess of $5,000 from Paul Quinn College.
Former city planning commissioner D'Angelo Lee and Sheila Farrington, Mr. Hill's wife, also were named, along with Cheryl Potashnik, Allen McGill, Jibreel Rashad, Rickey Robertson, Andrea Spencer, Ronald Slovacek, Kevin Dean and John Lewis.
A grand jury handed up sealed indictments late last week. The indictments culminate an FBI investigation into public corruption in Dallas that began publicly 27 months ago, when federal agents raided Mr. Hill’s City Hall office.
"It's no doubt complex and multilayered," U.S. Attorney Richard Roper said during a news conference about the indictments.
Mr. Roper said thousands of man hours were spent investigating what he described as a "complex bribery and extortion scheme."
He did not rule out further indictments. "I hate to say whether the investigation is over or not."
FBI Special Agent in Charge Robert Casey also attended the news conference.
"We were motivated only by a sense of duty to this community and this country," he said.
Mr. Hill and Ms. Hodge were among the first officials to arrive at the Earle Cabell Federal Building and Courthouse Monday morning. Mr. Hill was accompanied by Ms. Farrington, a consultant also under investigation.
Mr. Hill professed his innocence as he was leaving the courthouse Monday morning with his wife, a former political consultant. They were released on their own recognizance after entering not guilty pleas and agreeing to surrender their passports.
"We're not guilty of any of the things alleged here,” Mr. Hill, a onetime mayoral candidate, said. "We’ve had a chance to tell the world we’re not guilty. We’re iust going to prepare for the fight. “
His attorney, Michael Heiskall, said the public should not pass judgment too quickly on Mr. Hill and his wife.
The government, he said, has had 27 months to prepare its case, which he characterized as “vicious lies and accusations" and “a nightmare.”
"As true as the morning sun comes up, there will be a new day," the lawyer said.
Mr. Reagan surrendered to the U.S. marshall’s office with his attorney, Ron Wells, who said that Mr. Reagan has been indicted on bribery and extortion charges.
Ms. Hodge refused to comment as she left the courthouse. She was with her attorney, Larry Jarrett, a former assistant U.S. attorney who was a candidate for Dallas County district attorney in the last election.
Mr. Jarrett said another client, former NFL athlete Kevin Dean, would also surrender Tuesday. Mr. Dean’s company, KDAT, was named in a federal subpoena during the FBI investigation.
Albert Black, former chairman of the Greater Dallas Chamber of Commerce, went to the courthouse to offer support for his friend, Ms. Hodge.
“She’s as tough as she can be,” Mr. Black said. "I think they’ll do just fine. We think this is a distressful moment for her.
"With the kind of counsel she has, they’ll be able to sort it out, and that’s what’s important about a fair jurisprudence process.”
Mr. Lee professed his innocence as he walked into the courthouse.
“I am ready for it to all be over,” he said. “It’s been going on for too long – two and a half years – and I’m just ready for the chips to fall.”
Former City Council member James Fantroy arrived at the courthouse in a wheelchair shortly before 10 a.m. He was accompanied by his attorney, Cheryl Wattley.
"I am not making any comment except to say, 'Get out of our way,' " Ms. Wattley said. Mr. Fantroy made no comment.
In the weeks and months leading up to the release of Monday's indictments, some current City Council members, including Mayor Tom Leppert, were critical of the way the federal investigation seemed to be dragging on. They called it a cloud over city government. Some political allies of those targeted in the probe, meanwhile, speculated that the FBI lacked sufficient evidence to build an effective case.
After months of silence, federal officials on Monday pointedly rebutted such statements.
“That criticism, in my view, is unfounded,” Mr. Casey, the FBI agent, said.
“There are those who called into question the motivations of the FBI as we conducted this investigation … . We were motivated only by a sense of duty to this community and the country. We did our duty, and that made some people nervous. But we did it with integrity, professionalism and objectivity, without regard for politics, power, wealth, status or any other considerations."
He added: “If you read the details spelled out in this lengthy indictment, I think you’ll begin to see that the conspiracies and other crimes that had to be unraveled by our agents were complex and designed to be hidden from authorities. In cases like this, we encounter people during the course of the investigation who are not that eager to cooperate and oftentimes don’t tell us the truth. These factors contributed to the length and direction of many aspects of this investigation.”
Mr. Casey said that federal officials conducted hundreds of interviews, executed more than 40 search warrants, collected two terabytes of electronic information, examined 3,000 events, and analyzed 200 bank accounts and hundreds of boxes of documents as part of their investigation.
Mr. Roper declined to discuss specific evidence, such as the number of wiretaps used.
But he said: “We used every legal means we could use."
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