By Bill Zeeble, KERA reporter
http://stream.publicbroadcasting.net/production/mp3/kera/local-kera-634297.mp3
Dallas, TX – Bill Zeeble, KERA reporter: This massive case is tied to elected and other officials who allegedly helped Brian and Cheryl Potashnik secure millions in tax breaks for Potashnik's company Southwest Housing Development. The couple's expected in federal court this morning, accompanied by attorneys. They're part of the FBI's controversial examination into bribery and extortion, begun more than 2 years ago. U.S. Attorney Richard Roper said ex-Dallas Mayor ProTem Don Hill and his wife stand accused of bribery, money laundering, & conspiracy, all to help Potashnik. Roper said the developer needed elected officials to ok his apartment projects that would then qualify for federal funds.
Richard Roper, U.S. Attorney, Northern District: Some public officials and their associates extorted developers to pay them in order to obtain this much-needed support. At other times, these developers would bribe the officials to garner their support.
Zeeble: Roper says one of those officials is D'Angelo Lee, former Dallas Plan and Zoning Commissioner appointed by Hill. Lee and Hill allegedly advanced the interests of Brian and Cheryl Potashnik with zoning changes and tax credits for the Potashnik's low-income housing plans. In exchange Potashnik allegedly funneled money back to these officials and a business owned by Sheila Farrington. She's now married to Don Hill, who says he & his wife did nothing wrong.
Don Hill, former Dallas Mayor Pro Tem: We've had a chance to tell the world we're not guilty. And we're just going to prepare for that fight to prove our innocence.
Zeeble: Hill appointee D'Angelo Lee said the same after he walked out of the federal courtroom.
Dallas'Angelo Lee, former Dallas Plan and Zoning Member: I'm glad we're getting this thing moving forward. It's been a night mare. An ordeal . it's been difficult on me and family. I'm glad we have a chance to move forward and I believe when all is said and done I'm expecting to be exonerated in all of this.
Zeeble: State Legislator Gladys Terri Hodge was named too. Federal officials say she received more than 30 thousand dollars in free rent and utilities at a Potashnik apartment. In exchange, she wrote letters of support for Potachnik's Southwest Housing company, so it could receive tax credits. U.S. Attorney Roper.
Roper: The key element is - were benefits or fees paid with the idea and the intent to influence the action of the public officials? That's the key to the indictment in this case.
Zeeble: Hodge pleaded not guilty at her arraignment, then left the court without comment. Both she and Hill will also battle separate tax charges, for not declaring income with the IRS. In yet another City Hall corruption allegation, former council man James Fantroy, allegedly embezzled at least 5 thousand dollars intended for Dallas's historically black Paul Quinn College, Fantroy was the board treasurer. He didn't enter a plea, saying he first needed a lawyer. Fantroy may seek a federally appointed one, granted when defendants can't afford an attorney. Every defense lawyer, as well as prosecutors, have a challenge ahead, according to U.S. Attorney Roper, who's spent the last 25 years dealing with corruption cases.
Roper: In the years I've been a prosecutor, I haven't seen anything this complex and massive.
Zeeble: Those who've appeared in court yesterday were released on their own recognizance. Bill Zeeble KERA news.
Bzeeble@Kera.Org