FBI informant's firm files civil suit over Dallas City Hall corruption case

Mar 10, 2010 — The Dallas Morning News

Jason Trahan

Mar. 10, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- The first civil suit seeking millions in damages as a result of the bribery and extortion in the Dallas City Hall corruption case has been filed in a county civil court.

Odyssey Residential Holdings LP is seeking millions in damages from developer Brian Potashnik and his wife, Cheryl, and their former firm, Southwest Housing, for bribing former Mayor Pro Tem Don Hill and his plan commissioner, D'Angelo Lee, to get lucrative affordable housing tax credits.

In 2004 and 2005, Odyssey's vice president, James R. "Bill" Fisher, was competing with the Potashniks to get city approval of tax credits for dueling low-income housing developments in Hill's council district.

Fisher, who became an FBI informant, testified in last year's corruption trial about how Hill, Lee and others demanded money from him in exchange for political support. When he initially refused to pay, Hill and Lee shifted their support to the Potashniks, who were awarded the sought-after tax credits.

The Potashniks have pleaded guilty to bribery. Brian Potashnik testified for the prosecution during the months-long trial. Obiamaka Madubuko, one of his attorneys, said Tuesday she could not comment on the suit.

Fisher remains a vice president for Odyssey.

"Bill's business was severely damaged," said attorney John Carney, who filed the suit. "They had millions of dollars of expense in the projects that were delayed, denied and unfairly influenced by the corruption."

He declined to say exactly how much money they were seeking but said it was in the "seven figure" range.

Carney said that federal prosecutors had asked that he wait to file the civil suit until after last year's trial, which ended in convictions. Hill is serving 18 years; Lee is serving 14.

The Potashniks will be sentenced May 7.

Kevin Dean, Andrea Spencer, John Lewis and Allen McGill, who face three to five years in prison, will be sentenced. They pleaded guilty to helping former Mayor Pro Tem Don Hill and Plan Commissioner D'Angelo Lee funnel money from developers in exchange for votes. All four testified at last year's corruption trial in which Hill, Lee, Sheila Farrington Hill, Darren Reagan and Rickey Robertson were found guilty.

State Rep. Terri Hodge, D-Dallas, will be sentenced. She faces up to three years in prison after pleading guilty on Feb. 3 to failing to pay taxes on $74,000 in income from 2001 to 2005. That income was mostly bribes from prominent developers Brian and Cheryl Potashnik. At the sentencing hearing, prosecutors plan to show that the Potashniks let Hodge live at one of their Dallas housing complexes and paid her rent and utilities and bought her carpet in exchange for her political support. Hodge, who agreed to resign after 14 years in the Texas House, also used campaign contributions for personal gain, prosecutors say.

Brian Potashnik, who faces a maximum of about 3 1/2 years, will be sentenced. He pleaded guilty to paying Hill and Lee bribes in exchange for their votes in support of lucrative tax credits. Cheryl Potashnik also pleaded guilty and will be sentenced. She faces up to 16 months in prison for giving Hodge rent and utility money as bribes. Jibreel Rashad, convicted Feb. 10 of conspiring with Hill and others to extort money from a developer, will be sentenced the same day. He faces up to 20 years.

Newstex ID: KRTB-0046-42735822