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8/9/2019 Hastie Updated Indictment
1/23
hl,
GBK
SK
UNI'TED
ST'A'I'ES
T}F AMERICA
v.
KIMBERLY
SMTTH
HAST}E,
RAMONA
MCARDLE
YEAGER,
and
JOHN
MELVIN
HASTIE
JR.
F/IED
/A1
rnr._,,*^,,
'
' :
\l
{-,(
}t
tti,
IJAfi
2
s
2.8t5
L,i:t;
;
i.
,
;1.4i1,,
,,..
r
;r.;
"r
i;1.
IN THE
UNITED
STATES
DISTRICT
COUITT
FOR
THE
SOUTHERN
DISTRICT
OF
ALABAMA
SOUT}IBRN
DIVISION
)
CRIMII\AL NO.:
14-00291-CG
)
)
Yiolatioers:
l8
rj.s.c.
$
1349
18
U.S.C.
$
1343
18
U.S.C.
S
131r
18
U.S.C.
$
resl{a}
l8
Lr.s.c.
$
r0{il
l8
U.S.C.
$
2721(a)
18 U.S.C.
$
37r
STJPNRSNDING
INI}ICTMIINI'
THtr
GRAND JLTRY CHARGES:
At all times relevant
to this Sunersedins Indictrnent:
on*r'ui*'"
ol
Mobil"
courrtn Gno*rr,**rrt
1.
Mobile County' is
a
ccrurty
in Mobile.
Alabama in
the
Southern
District
o{
Alabarna.
fufobile County
roceir,es
funding
frorn,
among
other
sources,
the
citizens
of
Mobile
County through
taxes ancl
l'ees.
2.
Molrile
County
is
governed
by the
Mobile
County C'omrnission,
an
agency that
provides
general
administlation
and
other
services
to the
citizens o1'Mobile
CoLlnty
(the
"County
Conrmission"). As
part
of its responsibilities,
tlre County
Comnrission
oversees
the
management
and
distribution o1'cor:nty lunds.
The County
Comrnission is
cornprised
nf three
comrnissioners
who
are
electeci
b,v
the
citizens
of
l\4clrile
Countv and u.{ro
each represent
a
district
in
Mobile
Countv.
Case 1:14-cr-00291-CG-B Document 45 Filed 01/29/15 Page 1 of 23
8/9/2019 Hastie Updated Indictment
2/23
3.
"fhe
Mobile
Ccunty
Administrator's
Of1lce
is responsible for
coordinating
with
the County Clommission
and other elected
county officials to
provide
services
to
the citizens
of
Mobile
Cormty
(the
"Administrator's Otfice").
4.
Mobile
Counly
is
further
sen'ed
by
various depafiments, which include
the
Molrile County
Revenue Cornmissicln antl the Mobile County
License
Commission
(respectively,
the
"Revenue
Commission"
ancl
the "License Commission").
5.
The llevenue Commission
is
responsible
lor
rnapping. apirriris;rls,
assessments,
and
the collection
of ad
valorem taxes
in
N4obile
Clountv.
The Revenue
Coinmission is led and
managed
by
an
elected
Revenue
Commissioner.
6.
The License Clommission is responsible for
vehicle registration
in Mobile
Clounty
as
rvell
as
overseeing business
licenses,
sales and
Lrse
taxes,
ancl other services. The License
Commission
is led and manased bv
an
elected License Commissioner.
7.
In
the
course of conducting
gclvernment
business,
the
Lioense
Commission
sutrmits
invoices to the County Commission for
payinent.
After
these invoices are
reviewed
by
the
{)ounty
Cornrnissicln
and
the
Administrator's
Office, the
County
Commission
initiates
payments
through the distribution of county lunds.
Defendanfs
in
this Case
8.
KIMFERLY
SPIITH
TIASTIE
("rlASTlE")
is
currentl_v
the
L,icense
Comlnissioner
fbr
Mobile
County. She
was
elected License
Comrnissioner
on or
about
November 4. 2008 and
begern
her
term
an
or
about January
19.
2009.
HASTIE
r.vas
reelected
as
License Commissioner on or
abclut
November
6"2012.
Case 1:14-cr-00291-CG-B Document 45 Filed 01/29/15 Page 2 of 23
8/9/2019 Hastie Updated Indictment
3/23
9.
R.AMON,,
MCARDLE
YEAGER
("YEAGER")
is
currently
the Deputy
License Clornmissioner for hulobile Countv.
She sen
ed
as
the
Chief
Clerk of the
License
Commission
from
in
or ilbout
1992
or
1993
to
in or
about
March
2Al4,
when she
became
the
Deputy License
Commissioner.
10. JOHN MELVIN HASTIB
JR.
("HASTIE
JTt.") is
HASTIE's
spouse.
Individuals
Related
to this
Case
I
l. Victor
T'.
Craudrrd
("Crawfbrd")
is
an
at-will
contract
employee
of'the
Counf
Commissiott.
Crar.vford mallages
a
company that
provides
infbrmation
technology
services
to
the
License
Commissiott.
Crarvfbrd
has served
the
License Commission
on
an ongoing
basis
since in
or about
1991.
The
County Comrnission
compensates Crawforcl
in
exchange
lor
his
services.
CC}UNT ONE
r8tj.s.c.$1349
Conspiracy
12.
The
Grancl
Jur-v
realleges
and
incorporates
numbered
paragraphs
1-11
of this
Sr4rerseding
Indictment
as if
fully
set
fbrth
herein.
13. From in
or about l:u/ry
2AD
drrough in
or
about
July
2074,
in
the Southem
District
of Alabama,
Southern
l)ivision,
and elsewhere.
the
defbndants,
KIMBER],Y
SMITH
HASTIE
and
ITAMOI'{A M{]ARDI,E
YNAGNII,
did willlully, knowingly
and unlawlllly
combine,
conspire,
con{'ederate,
and
agree together
with
eaclr other and other
persons,
botJr
l
8/9/2019 Hastie Updated Indictment
4/23
to,
having
devised :rnd intending
to
devise
a
scheme ancl artifice to
defraucl.
and
lbr
obtaining money
and
property
by
means of
lzrlse
and
lraudulent
pretenses,
representations,
and
promises,
transmit and
cause
to
be transmitted
by
means
of
wire, radio,
and
television
corntnunication
in interstate and
foreign
colxmerce,
writings,
signs, signals.
pictures,
and
sounds
for the
purpose
of executing
such
scheme
and ar1ifice,
in
violation
of Title
18,
United
Stales Code"
Section
1343
(wire
fraud); and
to,
having devised and intending
to devise
a
scheme
ancl artifice to
clefraucl,
and
fbr
obtaining
mone.v
and
prr:perty
by
means
of {alse
and
li'audr"rlent
pretenses,
representations, and
promises.
for
the
purpose
of
exeouting
such
scheme
and
artifice and attempting so to do,
place in
any
post
office
and authorized
depository
fbr mail matter,
any
matter
and
thing
whatever
to be sent
and delivered by
the
Postal Sen,ice, and deposit
and cause
to
be depositecl
a
mattel
and thing whatever
to
be
sent and delivered by
any
private
and
con:mercial interstate
carrier, and
takes and receives therefrom,
any such matter
and
thing,
and
knowingly
cause
to
be
clelivered by
and such
carrier according
to
the
direction
thereon,
and
at
the
place
at i.vhich it is directed to
be delir.ered
by the
person
to rvhom
it
is
addressed,
an.v such matter and
thing.
in
violation
of Title 18,
United
States Clode.
Section
1341
fraud).
Obiective
of the
Consrlirncy
14.
'l'he
objective
of
the conspiracy
was to
trick
and deceive
the
County
Commission
and
the
citizens of
Mobile
CoLrnty
by
falsi$ring invoices
and rnisappropriating
lunds,
and
to
obtain
political
lotrbying and consuhing
services and personal
bencfits
without
the
knowledge
and
oversight of the
County Commission
and at the e.xpense
of h4obile
County
taxpa),er
dollars.
Manner
and Means
15.
HASTIE
aird
YEAGER
shared a common
plan
and
purpose
to hide
and disguise
expeirditur:es and
payments
from
the
County Conrmission.
16.
In
or
about
July 2012,
HASTIil
and
YEAGER
sought
to
retain
services
liorn
a
political
consuiting
firm and
to conceai
the
firm's
$10,500.00
retainer
fee
fronr
the
County
Cotntnission. Ou
or abor-rt Augr"rst
21,
2072,
the
consulting
lirm
sr:brnitted
an invoice
to
f{AST'I}i fcrr
the retainer fce.
HASTIE instructed
the consulting
firm
to
seek
paymenl
of the
fee
A,
Case 1:14-cr-00291-CG-B Document 45 Filed 01/29/15 Page 4 of 23
8/9/2019 Hastie Updated Indictment
5/23
liom
Cranfbrd, even
thor"rgh
Crawford had neither
benefitted
fi"om
nor
sought
out the
finn's
sen'ices, nor
even
palticipated
in
any manner
in
the
selices. I{ASTIE tildrer
instructed
Clarvfbrd to
pay
the
f'ee. even
though
the
consulting firm
harl
done
no work fbr
clr
witl"r
Crarvford.
On
or
about
August 27, 2A12"
the
political
consulting
lirrn
e-mailed its
invoice
to
Crawford.
17,
ln or
about
August 2A12,
HASTIE reviewed
the consulting firm's
invoice.
She
instructed
YEAGBIT
to
clisguise
and falsity
the
firm's
retainer
fbe.
In
a meeting r.vith
Crawfbrd,
TIASTIE
and YEAGER
directed him
to
falsify his
invoice
and
adcl
an item called "Web
&
Social Media
Expenses"
to
Crau'forcl's
invoice.
HASTIII
and
YEAGER
directed Crawfclrd to
lalsely
state
that
such expenses \,\rere
$10.500.00.
In
truth, Cran'fr:rd
did not
incur
"Web
&
Social
Media
Expenses" as stated
in
his
invoice
and
was
being instructed
b-v
HASTIE
and
YIIAGER
to
pay
their
political
ccnsulting
bill.
Clrar.vford complied
with the instructions
because
he l'eared that HASTIE
would
retaliate
against
hinr
if
he
did not
comlrly.
Crawfbrd
sent the
fhlse
invoice to YEAGER.
HASTIE
signed and
approved the invoice
on or about
August
22,2012.
YE,AGER
sutrmittecl
the false invoice to the
CJor-rnty Commission.
Not knou"ing
that Crawiord's
invoice was 1-alse
and
actually
in
part
represented
services
sought
by
HASTIE
and YEAGER"
the
Corurty
Cournrission mailed
a
check
tcl
Crawfbrd
on
or
about September
5,2012
as
pa_vment
for
lris
services
lbr
July
2012.
On
or about
September
7,
2012, Clravrfbrd paid
the consulting
firm's
$10,500.00
retainer
fbe
from personal
funds
due to
f-ear
of
consequences
of'not fulfilling
I{ASTIE
and
YEACER's
instructions.
18.
Commencing
in or
about January
or Febluary
2014,
HASTIB
and YEAGER
sought
to
have
the County
Clommission
turknowingly
finance
HASTIf,'s
aspirations
of
serving
Case 1:14-cr-00291-CG-B Document 45 Filed 01/29/15 Page 5 of 23
8/9/2019 Hastie Updated Indictment
6/23
as Revenue
Commissiouer in
a
merged
License /
Revenue
Commission
in
or about
October
2415.
19. In
or
about
February 7014,
HAST'III,
YEAGER.
Crawfbrcl,
and
the
License
Commission's
comptroller met at
the License
Corrmission to
discuss
a
potential
merger
of
the
License
and
lLevenue Commissiclns.
During
the
meeting,
HASTIE
asked
Crawford
if
he
supported the
nrerger.
flrawford
responded
"yes"
because
he was tbarful
that
IIASTIE
would
seek to terminate his
employment
if
he said "no."
24. During
her tenure
as
License
Clommissioner.
HASTIE
cultivated
a work
environment
of
intimidation at the
otl'rce
ancl
repeatedly
threatened
to
terminirte Crarvfbrd's
employment
as
u.ell
as the employment
of
several
License L'ommission
employees.
On repeated
occasions, HAS'I'IE led
Crar,vford
to belier.,e
that he
had
nei
choice
but to
complv
with
HASTIE's
requests.
21.
Specifically.
HAS'IIE
sought
to
have
Crarvfbrcl
pay
HASTIE's
$1,800.00
qualilying
fee to run
for
Revenue
flomrnissioner.
C)rawiord
gave
I{ASTIE
a
$1,800.00 check i1
or
about January
or
lrebruary
2014.
Based
on Clrawforcl's
numerous
interactions
rvith
I{ASTIE
and
his
experience
of
providing
services
to the
License
Cornmission.
Clrar.dord
believed
HAS'IIE
would
seek
to terminate his
employment
if he
did
nclt
provide
HASTIE
the check
fur
her
qualif1.'ing
1be.
22.
On or
about Febnrary
5,2014, HASTIE
deposited
Crawforcl's
$1,800.00
check
iuto
a
BBV;\
Compass
Batrk
account
ending
in 2808.
I{ASTIE
used
the morley
providecl
b,v-
Crai.r'forcl
to
submit
her
qualifying
fbe
t
8/9/2019 Hastie Updated Indictment
7/23
23.
From in
or
about
February 2014 to
in
or
about
July
2414,
HASTIE
ancl
YEACER sought
to
falsity invoices and misrepresent
to
the
County
Comrnission
services
pr"ovided
to
the
License
Commission.
HASTIE
requestecl
the
services of consultants
and
lobbyists to support her
plan
to
merge the License
and
Revenue Llommissions.
tlnbeknownst to
the
County Commission,
HASTIE and
YEAGEI{ instructed a
politic;rl
consulting firm
to
falsify
their invoices and
have them contain false and misleading statements. Specificali-v, HASTIE
ancl
YEAGER
signed
riff on the
faise invoices. knou'ing
they
contained lies
to trick the County
Commission.
The
defendants
submitted the false invoices to the County Commission,
u,'hich
unknowiugly
reliecl
on the false invoices
signecl
b"v
IIASTIE
and
YEAGER
and then
paid
the
invoices.
24.
In
or about
May
2014,IIASTIE
had.
unbeknownst
to
the
County Commission,
directed
the License t'ommission's cornptroller
to
pa-y
a
lobbying firm rvith
unauthorized
funds
in know'ing
violation
of
Mobile County
law,
Act
2A13-292,
as clescribed
below.
The
firm
rvorked for
IIASTIE
to draft legislation
in
support
of
her
plair
to merge
the l-icense
and
Revenue
Commissions.
HASTIE
arranged to
pay
the
lobbying
firm
rvith
rnoney from
a
segregated
account
of
the
License
Commissioir.
I{ASTIE, YBAGER,
and the l,icense
Commission's
comptroIler
have
signature
irr"rthority on
the segregatecl
account.
25. Enacted on or about
Ma.v
20,2013,
A$2Afi-292
describes
the
purpose
and
scope
of
a
segregated
account, wfiich
is
funded b"v
the
public.
'l'he
lalr,'states that money
in
the account
shall come
from
"a
special
issuance
fee
not
to
exceed
five
dollars ($5)
to
be collected
by
the
l,icsnse
Commissioner
of
Mobile
County on each motor vehicle registratiou,
boat
rener,val
or
registration.
manufacturecl home registration,
business license application.
or other
instrument
Case 1:14-cr-00291-CG-B Document 45 Filed 01/29/15 Page 7 of 23
8/9/2019 Hastie Updated Indictment
8/23
registered
or
application applied
for in the offioe of
the license commissioner." The
License
Clonrmissioner
may spend
nioney
in
the accoutlt
only
as
authorized
by
Act
2013-292, namely,
when such spending
is
"fi:r the
preservation
and
storage
of records r:elating to motor vehicle
registration, boat
registration, ancl business
licenses
as
prescribed
by
the
Department
of
Examiners
of
Public
Accounts
and ftrr
the
purchase,
installation, improvement, development,
upgrading.
and mairitenance
of equipment ancl technology
in the
office
of
the
License
Comrnissioner
of Mobile Ceiunty."
26. f)n
or
about ,}.4ay
29, 2014"
the
License C)ommission comptroller
provided
a
$10,000.00
checl