Posted October 11, 2007 to Politics | Section Home | Print

Political Corruption, Who Can We Trust?

By Gordon Jackson

DALLAS (NNPA) - The gloom over the city of Dallas on Oct. 1 was not because the Dallas Cowboys lost that weekend. They in fact won.

The gloom was because a significant sector of the city's Black community and political leaders may have just lost a huge chunk of respect - and their future.

A 27-month federal investigation culminated into the indictment of 16 former and current Dallas area public officials and business people on a total of 31 counts of corruption.

"It's a sad day for the political arena in Dallas," said the Rev. Dr. Jerry Christian, President of the African- American Pastors Coalition and pastor of Kirkwood Temple CME. "I hope that justice will be served and that this does not divide the community. I'm just waiting on the facts."

The investigative team, headed by U.S. Attorney Richard B. Rober, Special Dallas FBI Agent-in-Charge Robert Casey and Erick Martinez, Special Agent-in-Charge of the Dallas Field Office of the IRS have submitted, through their 166-page indictment, that defendants conspired to participate in a money-laundering ring, illegally abusing a low-income housing tax credit program and pocketing monies through fraud, bribery and extortion.

"This was a complex bribery and extortion scheme," Roper said at the press conference held inside the Earl Cabell Federal Building. "The FBI and the IRS put their best and experienced and professional agents on this case to work hand in hand with prosecutors in my office."

Brian Potashnik, president of Southwest Housing Development Company, and his wife Cheryl, stand in the center of the alleged scandal. They built several attractive apartment complexes, mostly in the southern sector of Dallas, geared toward low- to moderate-income families. In many cases, they replaced once blighted and deteriorating housing property. Southwest Housing received tax incentives for their projects, approved with the backing of city officials such as former Mayor Pro Tem Donald Hill and D'Angelo Lee, a former city Planning Commissioner. Authorities claim they crossed the line of bribery of extortion.

"These extortion and bribery payments would take many forms," Roper said. "They were disguised in a manner to hide the fashion payments were made to influence the public officials' access, including the payment of consultant fees, the payments to subcontractors and cash payments disguised as gifts."

Martinez said, "In this particular case, the money found its way from these projects into the hands of the local elected officials."

State representative Terri Hodge, the only current elected official among the defendants, received some of those gifts in the form of rent and utility payments, authorities charge. Darren Reagan, president of the Black State Employees Association of Texas (BSEAT) is, among other things, accused of "falsely claiming that he had no blood, marital, or other familial relationship to a person known to the Grand Jury, a tenant of the Dallas Housing Authority (DHA) Section 8 program, when in truth and fact the tenant was related to the defendant by marriage, causing DHA to pay housing assistance payments to the defendant of which he was not entitled...."

Several of the defendants maintained their innocence as they turned themselves in for fingerprinting and briefing, being allowed to leave on bond.

"I'm not guilty of any of the things they've alleged of me," said Hill, charged with conspiracy to commit bribery and extortion.

"When all is said and done, I'm expected to be exonerated," said Lee, a former city planning commissioner, appointed by Hill and receiving the same charges. "It's been a grueling two and a half years and we're waiting to get this thing over with."

Former city councilman James Fantroy was indicted on a separate charge. According to the indictment, Fantroy, " did unlawfully and knowingly embezzle, steal, obtain by fraud, and convert to the use of any person other than the rightful owner something of value of $5,000 or more, that is, federal monies held in trust for Paul Quinn College."

Although Fantroy made no comments as he entered the courthouse via wheelchair, he told reporters last week that he's done nothing wrong. Fantroy is currently suffering from cancer and renal failure.

"This is going to be the biggest mess since O.J.," he told a local newspaper. "I'm ready for a fight." Fantroy said he received a letter three months ago offering him the opportunity to make a deal in exchange for cooperation in the investigation, but he refused.

Many in the Black community stress the need to reserve judgment regarding the guilt or innocence of the defendants until the facts are out.

"You would think something would have happened before then," said C.W. Whitaker, president of the Dallas Park and Recreation board of directors. "We want it resolved, but I tell you, you're still innocent until proven guilty. I believe everybody should have their day in court. People put things in newspapers to make news."

Still many questions abound regarding the motivation of the investigation. Roper and Casey made strong statements, insisting the investigation was not conducted along any special lines, hoping to quiet concerns that defendants were targeted because of their race and their position.

"We were motivated only by a sense of duty to this community and the country," Casey said. "We did our duty and that makes people nervous, but we did it with integrity, professionalism and objectivity, without regards to politics, power, wealth, status or any other consideration or agenda."

"Since I've been a federal prosecutor, I always, in my career, based my decisions, not on race but on what the facts and the law show," Roper said. "I don't think I've changed one iota in 25 years. I think I can speak for the investigators in this case. The only thing we're interested in is due justice."

But despite FBI claims of impartiality, many in the city's Black community find it suspicious that 12 of the 16 individuals being indicted are Black and believe the investigation could be biased.

"I believe they have been targeted," said LaDonna Flagg, 48, Black, business owner. "They've really been digging and digging and digging on our Black politicians, until they just barely find something. I really feel they're trying to make us look bad. To me, you're innocent until proven guilty."

Christian is well aware of the fear that the defendants are being targeted and cautions against rushing to judgment. "There's always been a great argument. African Americans have always been targeted; I just hope that's not the case in this incident."

"I don't have any insight on why the investigation came out in the first place. I hope the whole truth comes out. It's not my place to judge. I always look at what Jesus did. The only way to make a conclusion is to see it through."

Christian said, adding, "We've got to stop basing everything on race and look at everyone individually."

County District Attorney Craig Watkins, understands Blacks' suspicions. "It makes Dallas looks bad," said Watkins, "because people just have the general sense of the city being unfair to people of color."

Donald Parish, pastor of True Life Missionary Baptist Church in South Dallas still has faith in the fairness of the justice system. "I think there must be something to it because if there wasn't, I don't think that the government would pursue it," Pastor Parish said. "Now, if they're doing it in error, I think the people that have been falsely accused, they will find redemption through court process. As bad as I hate to think, there's something to it."

Dallas County Commissioner John Wiley Price, speaking to Willis Johnson on his radio show on KKDA AM, tried to quell fears that the image of the Black politician in Dallas will be severely damaged. He sounded off a list of other Black elected officials, such as District Attorney Craig Watkins, State Senator Royce West and state representative Helen Giddings, further pointing out how much of their work is correcting administrations once corrupted by Anglos over the past several decades.

"I'm just so proud of the way they run their offices," Price told Johnson. "(The indictments) does not reflect all Black elected officials in Dallas. Hell, we (Blacks) have a cloud from the day we're born. So what else is knew? Don't buy into all of that. Let's just go individually. I'll put my record in against any of my colleagues," he said.

Mayor Tom Leppert, sworn in three months ago, said the news will not distract him and the city council, consisting of seven new members, from going into a new fresh direction.

"From the standpoint of the council, I think we've been making good progress over the last couple of months. I am concerned that all of a sudden, that will divert the attention from some of the good things that are happening," Leppert said. "I'm happy with the way the council is going and I want us to continue to focus on the issues that are making a difference for the city of Dallas."

Reporters asked investigators about former mayor Laura Miller's status in the investigation. Miller was reported to have a close business relationship with Southwest Housing, receiving substantial campaign contributions from the Postashniks.

"I don't ever want to get in a situation where I'm saying somebody had been pardoned or not," Roper said. "The problem with playing that game is that you can go down a list and saying they're not targets and then you get to somebody and say 'I can't comment.' I don't want to speak to that, the only way we speak is through an indictment."

News of the alleged corruption scheme first surfaced in June 2005, when FBI agents raided the homes and offices of Hill, Reagan, the Potashniks and several others.

The breaking news, Oct. 1, was still stunning. Yet, given a deep history that African-Americans had long been targets of false trumped-up charges, entrapment and racial profiling by law enforcement authorities, in spite of the detailed accounts in the indictment report, citizens were not yet ready to concede that the defendants were totally guilty.