Wednesday, January 20, 1988

01201988 - News Article - Spann admits accepting bribes





Spann admits accepting bribes
Post-Tribune (IN)
January 20, 1988
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.

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