01201988 - News Article - Spann admits accepting bribes

Spann admits accepting bribes

Post-Tribune (IN)

January 20, 1988

http://infoweb.newsbank.com

Thirty minutes before he was to go on trial here Tuesday, former Lake County Commissioner Atterson Spann pleaded guilty to racketeering in connection with accepting bribes from two janitorial firms.

Also pleading guilty at the last moment was Rudy Byron Sr., Spann's longtime associate and co-defendant. Byron pleaded guilty to three counts of filing a false tax return.

"We were notified by defense counsel Mr. (J. Michael) Katz at 12:30 p.m. that his client wanted to plead guilty to Count 1," said U.S. Attorney James G. Richmond. Katz represents Spann.

U.S. District Judge James T. Moody accepted the guilty pleas and will sentence both men on March 25.

Spann, 49, of East Chicago, faces up to 20 years in prison, a fine of up to $25,000 and forfeiture of $29,615 he admitted accepting from the janitorial firms.

Byron, 51, of Gary, faces up to nine years in prison, a fine of $505,000 and paying taxes on the income he failed to report.

Of the government's decision to drop five other counts against Spann, Richmond said, "The interest of justice would not be served by going to trial on the other counts."

Katz, who said the government didn't try to strike a plea agreement Tuesday, added, "The action today was appropriate under the circumstances."

Both Richmond and Katz said there were no negotiations about a plea agreement Tuesday.

"We don't enter into plea agreements on public corruption cases without cooperation," said Richmond.

Spann faces two more years in prison than he would have under a plea agreement proposed by the government last fall but rejected by Spann. Under that proposal, Spann would have pleaded guilty to three counts and faced up to 18 years' incarceration.

The proposed plea, however, would also have required Spann to cooperate with the government in its Operation Lights Out investigation into corruption in Lake County government.

Sources said Spann probably would have entered the federal witness protection program if he had decided to tell the government what he knows about corruption in the county.

Although he admitted his guilt, Spann said he didn't solicit the money in exchange for cleaning contracts at the Lake County Government Center.

"I accepted the money with the intent of them having the contract," Spann said in reference to General Maintenance Co. of Highland and PBM (Professional Building Maintenance) Inc. of Gary. "I didn't solicit. They gave me the money and I accepted."

Spann disagreed with Assistant U.S. Attorney David Capp's contention that Spann inflated the janitorial contracts to allow the bidders to recover the money they paid in kickbacks.

Byron pleaded guilty to failing to report $63,199 in income he received from General Maintenance and Kleen Maintenance Inc. between 1983 and 1985. Byron owned Kleen Maintenance.

The pleas preclude the need for a trial that would have included the testimony of former Lake County Sheriff and Commissioner Rudy Bartolomei.

It is Bartolomei's cooperation that launched the Lights Out investigation. Bartolomei entered the federal witness protection program shortly after being sentenced on an extortion conviction.

01121998 - News Article - Money was loan, Spann co-defendant told FBI

Money was loan, Spann co-defendant told FBI
Post-Tribune (IN)
January 12, 1988
http://infoweb.newsbank.com
Rudy Byron, who goes on trial with former Lake County Commissioner Atterson Spann next week, told the FBI the money he was paid by a janitorial firm was to be considered a loan.

FBI summaries of its 1986 and 1987 conversations with Byron were filed in U.S. District Court here Friday.

Byron, who worked as a consultant for General Maintenance Co. of Highland, and PBM (Professional Building Maintenance) Inc. of Gary, is charged with extorting money from the janitorial firms and filing false tax returns for 1983 through 1985. Spann faces the same charges and an additional charge of racketeering. The two firms had contracts with county government.

Byron worked for the Lake County Commissioners as a building inspector while he was on the General Maintenance payroll.

Gary attorney Hamilton Carmouche, who represents Byron, is seeking to have Byron's statements to the FBI suppressed, alleging his client wasn't advised of his rights or that he was a target of investigation.

In its written response, the U.S. attorney's office said the government complied with federal law in its dealings with Byron.

In the summary, Byron told the FBI and the Internal Revenue Service that Larry Crowel, one of the owners of General Maintenance, told him the money he received from General Maintenance should be considered a loan.

Byron, 50, of Gary, said there were no discussions as to when the loans were to be repaid.

Crowel is expected to be one of three key government witnesses against Byron and Spann. The others are former County Commissioner and Sheriff Rudy Bartolomei, who is an unindicted co-conspirator, and Johnny Garmon, vice president of PBM.

Byron, who worked for General Maintenance from 1983 to 1985, said he made one $350 payment back to the company during his three years there.

Byron told the agents Crowel told him later that he was unaware Byron had made the loan payment. Byron said he was paid about $18,000 during the period he worked for Crowel.

The summaries indicate that Byron said he was paid by both cash and check. Byron said he never received a W-2 Form, upon which wages are listed, from Crowel.

Byron said, however, that in March 1986 he received a Form 1099, upon which supplemental income is listed, from Crowel, who told him it represented the commissions General Maintenance had paid him in 1985. Byron said Crowel couldn't explain why he hadn't received a Form 1099 for 1983 and 1984.

Spann is accused of extorting $30,000 from the two janitorial firms that had contracts with the County Commissioners. The money allegedly received by Byron is not spelled out in the indictment.

Byron said Crowel hired him away from PBM because Crowel wanted him to get the contract with Lake County government.

Byron, according to the summary, told Crowel he had a lot of experience and knew a lot of people and could be helpful in getting the contract with the county.

Byron added that he accepted cash from Crowel for political fund-raising tickets.

Byron filed amended tax returns for 1983 and 1984 after he was contacted in mid-1986 by federal agents, the summaries state.

Spann and Byron have been friends for 40 years and frequently traveled together to Las Vegas and to New Orleans for Mardi Gras, the summaries explain.

01051988 - News Article - Spann rejects plea agreement

Spann rejects plea agreement

Post-Tribune (IN)
January 5, 1988

http://infoweb.newsbank.com.proxy.portagelibrary.info/iw-search/we/InfoWeb?p_product=AWNB&p_theme=aggregated5&p_action=doc&p_docid=1085376760244DA5&p_docnum=15&p_queryname=4

Former Lake County Commissioner Atterson Spann has rejected a proposed plea agreement and expects to go to trial in two weeks, Spann 's attorney said Monday. 

Merrillville lawyer J. Michael Katz said the U.S. attorney's office proposed a deal through which Spann would plead guilty to three of the six charges he faces. 

The proposed plea agreement carried a 15-year maximum sentence and would have required Spann to cooperate with the government's ongoing Operation Lights Out investigation into corruption in Lake County government. Spann faces up to 69 years in prison if convicted on all six counts. 

Katz declined comment on the proposed agreement other than to say, "I fully expect to go to trial." 

The U.S. attorney's office declined comment on the proposed agreement. The trial begins Jan. 19. 

Spann and co-defendant Rudy Byron, a longtime Spann associate and former county government employee, are charged with extortion and filing false income-tax returns. Spann faces an additional charge of racketeering. 

The charges stem from allegations they extorted money from two janitorial firms that had contracts with county government from October 1979 through April 1985. Spann is charged with extorting $30,000. The indictment doesn't specify the money allegedly extorted by Byron. 

Rudy Bartolomei, a former county commissioner and sheriff, is an unindicted co-conspirator and is expected to be one of the key government witnesses against Spann and Byron. Bartolomei pleaded guilty to an unrelated extortion charge and is in the federal witness-protection program. 

Meanwhile, both Katz and Gary attorney Hamilton L. Carmouche, who represents Byron, filed motions Thursday asking U.S. District Judge James T. Moody to order separate trials. 

Katz argued in his motion that the introduction of government tape recordings between Byron and Larry Crowel, one of the owners of General Maintenance Co. of Highland, could prejudice the jury against Spann . 

"The inclusion of such tape recorded conversations, even if admissible, are only admissible against the co-defendant Rudy Byron and would be highly prejudicial to Noah Atterson Spann ," Katz said. 

The 11 recordings are of both telephone conversations and face-to-face conversations between Byron and Crowel. The recordings were made after the alleged crimes were committed. 

The two attorneys also filed motions asking Moody to order the government to turn over grand jury testimony and other evidence the government has acquired. 

Federal rules of criminal procedure don't require the government to turn over transcripts of pre-trial testimony until after it has been presented in court. 

Assistant U.S. Attorney John F. Hoehner said the government expects to respond to the motions by the end of the week.