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.