u.s. v. siegelman: theft or bribery concerning programs receiving federal funds 18 usc 666 -...

8/9/2019 U.S. v. Siegelman: Theft or Bribery Concerning Programs Receiving Federal Funds 18 USC 666 - California Courts -…

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Case 2:05-cr-00119-MEF-CSC Document 3-1 Filed 05/17/05 Page 1 of 11

FILED

I THE NITED STATES DISTT OUT MAY 1 7 THE MIDDLE DISTIT O A

N O RTH E D I VIS IO N CL ERK U. S DITRC MLE OF A

ITED STATES O AMERIA )

v.

DON EUGENE SIEGELMAN and IHAD SUSHY

� . NO. ·.os� J/q- ) [18u.s.c. § 31; ) 18 U.S.. § 666(a) ) 18u.s.c § 2] ) ) INDITMENT

THE GD JUY HARGES THAT

COUN ONE

(8 § 3)

Introductio

At all times mateial o is Indictmen

1. Dendt DON EGENE SIEGELMAN was elected as the

Goveo of e Stae of Aabama (he "State) in Novembe 1998, was

deated fo reeection in Novembe 2 e held e posion of Goveo om

Ju 1999 though Januay 23.

2. Dendt RICHAD SCRUSHY is e foe ief Executive

cer of Heou c "Heo a cooron provdes eace

eices in e Sae.

SCANN

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on Ineae Healh Services, Inc, made payable o he ALF, nt

checking accoun of he AEF a First Commercial B, in Birmi� laaa nd he direc a pp licaio n of a c he ck, in he amo un t of $25 ,00, aw n

Healhso u h mae paya ble o he AEF, o redu ce b a s ila ot

ndebeness on an ousding o of he AEF a Firs Cercial B i

Birngham, Aabama, knowing hese sacions were esigne n who n

p o conceal isguise he naure, ocaion, source, ownersh, an conol of

he procees of sai specie unlawl aciviy, ha whil conuctng

aemping o conduc such nancial sacions ew hat h pope vov

in he nancial ansacions represene he procees of som of a

aciviy

ThePurpose

of theonspiracy

10 I was he puose of he cnspiracy for SIEGELN to ta

$500,000 om SCRSHY o inuence and rewar SIEGEL in coecon

wih ocial acs conceng membershp ad busiess of he CO Bo, an to

hide an conceal he naure of heir cospacy an he acts cote n

rherance of he conspiracy

Manner and Means o heonspiracy

11. was a pa o he cospac a EGELMAN CRSHY

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l agree at SIEGELN oul appoint SCRUSHY t the CON

a , re, SCRSHY oul give SIEGELN $500,000 t ai

SGLNs erts associated i the lottery campai.

12. It as a rther part of the conspiracy that SIEGELN oul

se his fcial position as Goveor to appoint SCRUSHY to the CON .

13. It as a rther p of e conspiracy at SCRSHY oul i

pay $500,000 to SIEGELN in installments of $250,000 each; one

istallment paid before SIEGELN appointe SCRSHY to the CON o,

ne installment pai after the appointment.

14. It as a rther part f the conspirac that SIEGELN d

SCRUSHY uld and di take steps t hide conceal the e nature f their

cnspiracy by, among other thngs: a ging that the rst of the $250,000

payments ould be made in the of a check om a third-party corpration;

otting the rst $250,000 paent om ofcial reports that ere require to list

e conibutons to the ELF ad using the secon check for $250,000 t reuce

a debt for hich SIEGELN had oblgated himself as a persoal gutr.

OVR ACS

15. Beeen on or about November 8, 998, and July 6, 1999, e

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exact ates being unown to he g juy, SIEGELM SU

engage in one o moe convesations ung which ey eache � aee wheeby SIEGELMAN aee to appoint SCRSHY o the CO o ad

SCRSHY agee to give $500,000 o SIEGELMA

16. Beween in o about Apil 1999, and on o about July 19, 999,

he exact daes being own o he gran juy, SCRSHY, aie abette y

othes own an unown to he an juy, brokee agemen involving

Healthsouh, an invesent bank known o he gan juy that ha a business

relationship wih Healhsouth, an Inegae Health Sevices, Inc, {"IS)

wheeby he investmen bank woul rgive an indebteness o IS e

approximae amoun of $50,000 m exchange fo IHS issuing a hec o

$50,000 o he AELF

17. On o about July 18, 1999, he exac date being unown to e

gand juy, IHS issue a check in he amount of $50,000, mae payable to e

ALF, and on o about a same dae, caused is ceck to be elivee to

SCRSHY

18 Beeen on o about July 19, 1999, and on o about July 26 1999,

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xact dats being own to h gand y, SCRUSH pesonally mt i

SIGELM at th Goveos oc in Montgomey, Alabama, d ga

SIEGELM the $250,000 check om IHS.

19. On o about July 6, 1999, e exact dat being uno to

and uy, SIEGELMAN appoined SCRUSH to h CO Bod.

20. On o about Novembe 5, 1999, exact dat being nown to

d y, SIEGELMAN aed a checking acount to b opened at Fist

oecial Bk in Bimingham, Alaba, in he nam o th Alabaa

Education Foundaion (AEF) and caued to b depoied into at account

$250,000 chck om IHS made payabl to AELF.

1. SIGELMAN caued he AELF to l wih h Oc o Secetay o

Sta ceain epot o ampaign conibutions made o he AELF ding t

lottey eendum campaign a we l in that he epos did not epot th

IHS check given o SIEGELMAN by SCRUSH.

. On o abou Marh 9, 000, he exact dae being unown o h

grand y, SIEGLMAN eeued a peonal guaranee o a loan o h AEF in

the amon o approximaely $730000 at Fit Coercial Bank in Bimingham,

Aabama, and he poceed o a loan were ued o ai an indebedness o

pprimey he me amn inced by e abama emcraic a a

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Colonial Bk to nanc uppot o th loy ndum, whic as l

about Ocob 12, 1999.

23. On o abou Mch 13, 2000, h xact dat big unow t I

gand uy, SIEGELMAN caud t $250,000 chck om IHS t� b us t

educ he amoun o h oylad db which h wa ponally liab

24 Bwen on o about May 18, 000, and on o about May 23, 200,

h xact da bing unown o h and juy, SCRUSH a SIGEL

mt in Bingham, Aabama, wh SCRUSH gav SIEGEL a s

$250,000 in h om o a cck in h amoun o $50,000 dawn on a also

bank accoun d mad payabl o th F.

25. On o abou May 23, 2000, he exac dat bing o to

gand juy, SIEGELMAN caud h Heao check in th amout o $250,000

o b ud o he reduc h amount o e oey-ead dbt whih h was

ponally liabl.

Al in violation o i 18, Unid Sae Cod, Scion 371.

COUNT TWO

(8 USC § 666(a)(l)( B))

6 xecuive banch o e Sae o Aabama civd bnts

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excess of $10,000 in evey twelve mon period om Janu 1998

pusuant to deral programs providing assistce to the State.

27. From on o about J uly 19, 1999, and contin u ing th oug o o a

l

May 23, 20 00, he exac t dates bei ng un lown to he gr j, i f t m

Cout y, Alabama, with i n he M iddle D itrict of a bama els ,

dent

DON EUGENE SIEGELMAN

being n gent of a State govement, aided d abetted by dend

RICHARD SCRUSHY

and others know and nown o he grnd j, which Sta get

received eral asitance in exess o $10,000 in a ne-ye peid, dd coy

oii nd emn or he bene of any peron, nd ccept d ae t acc,

yhing of vae om any person, inening o be inuence an d

necion wih y business, anaction, n eres of transactions of su Sta

veent involving anyhing of ve of $5,0 or more, to wi dendt

DON EENE SIEGELMAN, beig Goer f e Se of Alabama, coptly

liied emded epe d reed o e $500,000 o dendat

CA CRHY, ieig o be iee nd rewed i connection

e en e CRD CUSHY o the Aabam

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•

Cert icate of Nee Review Bod. A ll do ne in viola t ion of Title 18, Unted Sta ts

Code, Se c tio ns 66(a )(l )( B ) a nd 2.

COUNT THREE

(18 U.S.. § 666a)2))

28 The eecutive brch of the State of Alabama eceived enets in

excess of $10,000 in every weve mon period om Jua 1998 to e present

pusut to dera programs providing assistce to e State.

29. From on o about July 19, 1999, d continuing though on o abot

May 23, 2000, e exact daes being unknon to the grd ju, in Montgoe

ounty, Alabama, iin he Middle Disict of Aabama d elsehee, the

dendt

CHARD SRUSHY

aided and abetted y dendt

DON EUGENE SIEGELMAN

and others on d unkno o he grand jury, did coptly give, oe, d

agree to give anything of aue to any person, with he intent to inuence and

reward agent of Sae oement, hich Stae govement received deal

assisce in excess of $0 n a oneye perod, n coecion ith y

usness, sacon, and seres of ansacons of such Sae oemen nong

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•

yhing of value of $5,000 o moe, to wit: enant SCRUSH c g,

oered, d agee to give $500,000 to efent DON EUGEN S� GE, Goveo of e Stte of Alabama, intenin to inuence nd ewd dfet

I

DON EUGENE SIEGELMAN in connection with the appointment 'o def

CHARD SCRUSHY to the Alabama Ceicate of Need Revie Bo l

one in violation of itle 18, United States Coe, Sections 666(a )()

�

LOUISv.1KI SR. Acting

Uni d Stat s

Atoey Mile Disct of Aabma

NOEL HILLMAN Chief U.S. Depent of stice Crmnal DiviionPbic Inteit econ

By:

�·, . ? �

C. Pilerral Atoey

A RUE BILL

F

O

ERSON

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u.s. v. siegelman: theft or bribery concerning programs receiving federal funds 18 usc 666 -...

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