More info about FBI investigation of John Wiley Price

By Ruth Ferguson

NDG Editor

Earlier this week the FBI raided the home and offices of long time Dallas County Commissioner John Wiley Price as well as his assistant and an adviser. Throughout the week info has continued to leak out about what the FBI is looking into. The reports show they are focused primarily on possible tax evasion, misuse of campaign funds and abuse of power and influence. It appears nearly every area of his public life is being examined including KwanzaaFest and the Inland Port deal.

Commissioner John Wiley Price

By extension, prominent African Americans, politicians and businesses are being drawn into the investigation – directly and indirectly. Former Dallas Cowboy Pettis Norman and local developer Jon Edmonds were subpoenaed earlier this week and are expected to testify on July 20. Neither are sharing what evidence they are being asked to provide. The two men are linked to allegations that they attempted to pressure California real estate developer Richard Allen to hire more minority contractors for the Inland Port project located in South Dallas. State Senator Royce West’ name has been brought up as another party who may have attempted to influence Allen. For sometime Allen has alleged that Price attempted to put roadblocks in place when Allen did not respond favorably to the pressure. At this point there is no indication Sen. West is under the FBI’s spotlight.

The Millennium 2000 Gallery at the popular venue South Side on Lamar, owned by Karen Manning, described as a longtime friend of Price was visited by the FBI on June 30. WFAA reported that several agents were present, they did not remove anything but photos were taken during their day long visit. According to reporter Brett Shipp, Price has spent over $48,000 with the business.

White Powder Letters Received by Two Schools in the Garland ISD

FBI Special Agent in Charge (SAC) Robert E. Casey is requesting the public’s assistance in identifying the person or persons responsible for sending two letters containing a white powder substance to the Ethridge School in Garland, Texas, and John Armstrong school in Sachse, Texas.

Earlier this week, two schools within the Garland Independent School District received letters, through the U.S. Mail, containing white powder. The Garland Police and Fire Department, along with the Sachse Police Department, the U.S. Postal Inspection Service, and the FBI responded to the scene.

Initial field testing indicated the substance within the envelopes was not toxic and there was no threat to anyone’s health or safety. Further laboratory testing is being done in an effort to identify the substance within the envelopes. One school district employee at Ethridge School, who had been exposed to the white powder, was taken to a local hospital as precautionary measure.

The sending of threatening or hoax letters containing a white powder substance is a violation of Title 18, Section 844 (e) and is punishable for up to 10 years in prison and a $250,000 fine for each letter sent.

 SAC Casey has previously stated, and reminds those who may be inclined to send a letter with powder in it, that sending a hoax letter threatening imminent death and containing unknown substances is a serious crime that drains precious, limited first responder resources.

The mailings resulted in police, fire, and hazmat teams responding to emergency calls in two separate locations, causing anxiety, disruption, and financial costs. Threatening letters, whether they contain white powder or not, even if their threat is a hoax, will be thoroughly investigated by the FBI, the United States Postal Inspection Service, and other law enforcement agencies.

 Anyone having information about who may be responsible for sending these white powder hoax letters should call the Dallas FBI office at 972-559-5000 or their local police agency.

Texas State Representative Terri Hodge pleads guilty to federal charge and agrees to resign from public office

(NDG Wire) Gladys E. Hodge, also known as “Terri Hodge,” who was to go on trial early next month on charges outlined in a 31-count indictment charging 14 public officials and their associates with various offenses related to a bribery and extortion scheme involving affordable housing developments in the Dallas area, has pleaded guilty, announced U.S. Attorney James T. Jacks of the Northern District of Texas. As a condition of her plea with the government, Hodge, who was elected to the Texas House of Representatives, District 100, in 1996, and re-elected to the same position in 1998, 2000, 2002, 2004, 2006 and 2008, has agreed to resign her office and never seek or hold future public office.

Hodge entered her guilty plea this morning, before U.S. District Judge Barbara M.G. Lynn, to fraud and false statements on an income tax return. She faces a maximum statutory sentence of three years in prison, a $100,000 fine, and restitution to the IRS. At the hearing, Judge Lynn indicated that she would be setting the sentencing date as expeditiously as possible.

According to the factual resume filed in the case, over the course of her tenure as a state representative, Hodge supported Southwest Housing Development Company, Inc. (SWH) developments which, among others, included affordable housing developments in District 100. Co-defendant Cheryl L. Potashnik, the wife of co-defendant Brian L. Potashnik, a real estate developer and the founder, president and a principal of SWH, served in multiple roles in management and development of SWH, including that of chief operating officer and principal of SHW. Cheryl Potashnik pleaded guilty to bribery in connection with benefits given to Hodge by the Potashniks and SWH.

Brian Potashnik also pleaded guilty to bribery of various public officials. Both Potashniks are awaiting sentencing.

According to the factual resume filed, sometime on or before February 27, 2002, Hodge asked Brian Potashnik for assistance in the form of affordable housing for herself within the geographical boundaries of her political district. She indicated that she had financial problems and could not afford to pay the full rate for housing. Beginning in April 2002, the Potashniks made arrangements to provide Hodge with housing in one of SWH’s market-rate affordable housing development units, which was located at Rosemont at Arlington Park in District 100. Hodge moved into the apartment on April 1, 2002, and renewed her lease, at the same rental rate of $200 per month, in November 2002 and again in March 2003. As reflected in the executed lease agreements, the market rate for this unit was $899 per month, and the difference in rent was paid by the Potashniks.

In addition, the Potashniks paid the utility bills on the apartment from their development funds and provided new carpeting for her house located on Abrams Road in Dallas. The carpeting cost $1,995 and was paid for by the construction arm of SWH, a company named Affordable Housing Construction, Inc.

The total value of the rental subsidies, utilities and carpeting provided to Hodge by the Potashniks from 2002 through 2005 was $32,541. None of this amount was included as income on the corresponding federal income tax returns for the tax years in which it was received by Hodge.

The plea documents further state that Hodge had additional income, in tax years 2001 through 2005, totaling $41,465, comprised, in part, of campaign contributions which she used for her own personal benefit and which she did not include as income on the corresponding federal income tax returns for the tax years in which she received it.

Hodge admits that she filed a U.S. Individual Income Tax Return, Form 1040, with the IRS, that she knew she omitted income of $6,914 in 2001; $27,062 in 2002; $13,402 in 2003; $19,908 in 2004; and $6,720 in 2005. Hodge further admits that as a result, she owes the following in taxes (excluding penalties and interest) to the IRS: $1,937 for 2001; $1,496 for 2002; $1,908 for 2003, $3,887 for 2004, and $1,680 for tax year 2005, for a grand total of $10,908.

FBI Arrests Jordanian Citizen for Attempting to Bomb Skyscraper in Downtown Dallas

(NDG Wire) James T. Jacks, the U.S. Attorney for the Northern District of Texas, and Robert E. Casey, Jr., Special Agent in Charge for the Dallas Office of the FBI, announced today that Hosam Maher Husein Smadi, 19, has been arrested and charged in a federal criminal complaint with attempting to use a weapon of mass destruction. Smadi, who was under continuous surveillance by the FBI, was arrested today near Fountain Place, a 60-story glass officejttfjacket260tower located at 1445 Ross Avenue in downtown Dallas, after he placed an inert/inactive car bomb at the location. Smadi, a Jordanian citizen in the U.S. illegally, lived and worked in Italy, Texas. He has repeatedly espoused his desire to commit violent jihad and has been the focus of an undercover FBI investigation.

“The highest priority of the FBI and the Department of Justice remains the prevention of another terrorist attack within the United States,” said U.S. Attorney Jacks. “In that effort, it is the job of the FBI to locate and identify individuals intent upon carrying out any type of attack upon this country and its citizens/residents. Whether as part of a group or acting alone, persons contemplating such acts need to know that all components of the government are working together to ferret out their activities and to insure that such individuals face the full measure of the law. The identification and apprehension of this defendant, who was acting alone, is a sobering reminder that there are people among us who want to do us grave harm,” Jacks continued.

Special Agent in Charge Casey said, “Today’s arrest of Hosam Maher Husein Smadi underscores the FBI’s unwavering commitment to bring to justice persons who attempt to bring harm to citizens of this country and significant danger to this community. Smadi made a decision to act to commit a significant conspicuous act of violence under his banner of “self jihad.” He will now face justice. The many agents, detectives, analysts, and prosecutors who helped to bring about Thursday’s arrest deserve special thanks for their efforts. This case serves as a reminder of the continuing threats of terrorism we face as a nation and the FBI’s resolve to meet those threats. The arrest of Smadi is not in any way related to the ongoing terror investigation in New York and Colorado.”

“The criminal complaint alleges that Hosam Smadi sought and attempted to bomb the Fountain Place office tower, but a coordinated undercover law enforcement action was able to thwart his efforts and ensure no one was harmed,” said David Kris, Assistant Attorney General for National Security.
Smadi will make his initial appearance tomorrow in U.S. District Court before U.S. Magistrate Judge Irma C. Ramirez.
According to affidavits filed today with the complaint and search warrants:

* Smadi was discovered by the FBI espousing his desire to commit significant acts of violence.
* Smadi stood out because of his vehement intention to actually conduct terror attacks in the U.S.

The FBI developed an investigative plan to determine Smadi’s true intent while also protecting the public’s safety. Smadi made clear his intention to serve as a soldier for Usama Bin Laden and al Qaeda, and to conduct violent jihad. Undercover FBI agents, posing as members of an al Qaeda “sleeper” cell, were introduced to Smadi, who repeatedly indicated to them that he came to the U.S. for the specific purpose of committing “Jihad for the sake of God.” Smadi clarified that he was interested in “self-jihad,” because it was “the best type of jihad.” Smadi was interested in violent jihad against those he deemed to be enemies of Islam. The investigation determined Smadi was not associated with other terrorist organizations.

Throughout the investigation, undercover FBI agents repeatedly encouraged Smadi to reevaluate his interpretation of jihad, counseling him that the obligations a Moslem has to perform jihad can be satisfied in many ways. Every time this interaction occurred, Smadi aggressively responded that he was going to commit significant, conspicuous acts of violence as his jihad.

In June 2009, Smadi identified potential targets in the Dallas area; but in mid-July, he notified an undercover FBI agent that he had changed his mind regarding the targets. On July 21, 2009, Smadi met with an undercover FBI agent and directed the agent to drive them to a Wells Fargo Bank in downtown Dallas. Smadi and the undercover FBI agent then drove to 1445 Ross Avenue where the Fountain Place office tower is located. A Wells Fargo Bank is located in that building. Smadi went into the building where he conducted his own reconnaissance.

In late August 2009, while meeting with one of the undercover FBI agents in Dallas, Smadi discussed the logistics and timing of the bombing, stating that he would have preferred to do the attack on “11 September,” but decided to wait until after the month of Ramadan, which ended on September 20, 2009. At the conclusion of the meeting, Smadi decided that a vehicle-borne improvised explosive device (VBIED) would be placed at the foundation of the Fountain Place office tower. Unbeknownst to Smadi, the FBI ensured the VBIED contained only an inert/inactive explosive device which contained no explosive materials.

A federal complaint is a written statement of the essential facts of the offenses charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The offense of attempting to use a weapon of mass destruction carries, upon conviction, a maximum statutory sentence of life in prison and a $250,000 fine.

The case is being investigated by the FBI in conjunction with members of the FBI-sponsored North Texas Joint Terrorism Task Force. Assistant U.S. Attorney Dayle Elieson is in charge of the prosecution. The Counterterrorism Section of the Justice Department’s National Security Division is assisting in the prosecution.