Score:   1
Docket Number:   ND-TX  3:18-cr-00536
Case Name:   USA v. Duncan
  Press Releases:
Former Dallas City Councilman Larry Duncan was sentenced this morning on charges stemming from the public corruption investigation into Dallas County Schools (DCS), announced U.S. Attorney Erin Nealy Cox.

A former DCS Board of Trustees President, Mr. Duncan, 73, pleaded guilty in October to one count of tax evasion, admitting he failed to pay income tax on campaign contributions from a DCS vendor. He was sentenced this morning to six months of home confinement and three years of probation; he will also be required to repay more than $45,000 in back taxes and interest and perform community service for the City of Dallas.

“This particular investigation has netted six convictions to date,” said U.S. Attorney Nealy Cox. “We expect elected officials to be absolutely fastidious with money they receive as a result of their official position. When public officials behave unscrupulously, North Texas can count on federal prosecutors to intervene. We hope officials will heed our commitment to exposing corruption in any form it takes, and act accordingly.”

According to plea papers, between 2012 and 2016, Mr. Duncan accepted nearly a quarter of a million dollars in campaign contributions from Force Multiplier Solutions president Robert Leonard, who happened to be pursuing lucrative stop-arm camera contracts with DCS.

Instead of putting Mr. Leonard’s money towards legitimate campaign expenses associated with his DCS re-election bid, Mr. Duncan admits he used at least $184,726.03 for personal benefit, taking out cash withdrawals, passing on money to his wife, and even using funds to pay car-related expenses.

He then failed to disclose the money he diverted from the campaign on his tax returns, hiding the income from the IRS.

Mr. Duncan’s campaign contributor, Mr. Leonard, along with former Mayor Pro Tem Dwaine Caraway, pleaded guilty in August to conspiracy to commit honest services wire fraud, after the DCS investigation revealed that Mr. Leonard had funneled over $3 million in bribes to Caraway and Dallas County Schools Superintendent Ricky Sorrells. Mr. Sorrells pleaded guilty in April to conspiracy to commit honest services wire fraud. Another defendant, Slater Swartwood, who operated the shell companies used to conceal the bribes, admitted in December 2017 to conspiring to launder money.

Dallas County Schools, an agency that collected property taxes to fund its fleet of around 2,000 buses, was shuttered in November 2017, saddled with approximately $103 million in debt.

The Internal Revenue Service Criminal Investigation unit (IRS-CI) and Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Andrew Wirmani,  NDTX’s Public Corruption Coordinator, Marcus Busch, and Chad Meacham prosecuted the case.

This morning, four-term Dallas City Councilman Larry Duncan, a former president of Dallas County Schools’ Board of Trustees, pleaded guilty to one count of tax evasion before Chief Judge Barbara M.G. Lynn, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.  

The charge stems from the federal investigation into the Dallas County Schools bribery scandal, which has now claimed its fifth conviction.

According to plea papers, between 2012 and 2016, Mr. Duncan, 72, accepted nearly a quarter of a million dollars in campaign contributions from Force Multiplier Solutions president Robert Leonard, who happened to be pursuing lucrative stop-arm camera contracts with DCS.

Instead of putting Mr. Leonard’s money towards legitimate campaign expenses associated with his DCS re-election bid, Mr. Duncan admits he used at least $184,726.03 for personal benefit, taking out cash withdrawals, passing on money to his wife, and even using funds to pay car-related expenses.

He then failed to disclose the money he diverted from the campaign on his tax returns, hiding the income from the IRS. 

“Today marks another important step in our ongoing commitment to expose public corruption,” said Nealy Cox. “Those who seek to capitalize on positions of power undermine public trust in the very system they are meant to serve.  And that is something we cannot abide.”

“Being a public official comes with its share of rewards and responsibilities; part of those responsibilities is to report all of your taxable income and pay your taxes.  Deliberate failure to do so is a serious matter, and IRS Criminal Investigation is dedicated to ensuring everyone is properly reporting and paying in accordance with the tax laws,” said Tamera Cantu, Special Agent-in-Charge of the IRS Criminal Investigation Division’s Dallas Field Office.

“The FBI remains committed to investigating anyone associated with the financial exploitation at Dallas County Schools,” said Eric K. Jackson, Special Agent-In-Charge of the FBI Dallas Division. “This latest indictment continues the efforts of the FBI, along with our partners at the IRS and U.S. Attorney’s Office, to protect and defend Dallas taxpayers from those who would exploit their position for personal gain.”

Mr. Duncan now faces up to a year in federal prison. In his plea agreement, Mr. Duncan agreed to reimburse the government for its tax loss.

Duncan’s campaign contributor, Mr. Leonard, along with former Mayor Pro Tem Dwaine Caraway, pleaded guilty in August to conspiracy to commit honest services wire fraud, after the DCS investigation revealed that Mr. Leonard had funneled over $3 million in bribes to Caraway and Dallas County Schools Superintendent Ricky Sorrells. Mr. Sorrells pleaded guilty in April to conspiracy to commit honest services wire fraud. Another defendant, Slater Swartwood, who operated the shell companies used to conceal the bribes, admitted in December 2017 to conspiring to launder money.

Dallas County Schools, an agency that collected property taxes to fund its fleet of around 2,000 buses, was shuttered in November 2017, approximately $103 million in debt.

The Internal Revenue Service Criminal Investigation unit (IRS-CI) and Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Andrew Wirmani, Marcus Busch, Chad Meacham, and Joseph Magliolo prosecuted the case.

 

Description: The fiscal year of the data file obtained from the AOUSC
Format: YYYY

Description: The code of the federal judicial circuit where the case was located
Format: A2

Description: The code of the federal judicial district where the case was located
Format: A2

Description: The code of the district office where the case was located
Format: A2

Description: Docket number assigned by the district to the case
Format: A7

Description: A unique number assigned to each defendant in a case which cannot be modified by the court
Format: A3

Description: A unique number assigned to each defendant in a case which can be modified by the court
Format: A3

Description: A sequential number indicating whether a case is an original proceeding or a reopen
Format: N5

Description: Case type associated with the current defendant record
Format: A2

Description: A concatenation of district, office, docket number, case type, defendant number, and reopen sequence number
Format: A18

Description: A concatenation of district, office, docket number, case type, and reopen sequence number
Format: A15

Description: The status of the defendant as assigned by the AOUSC
Format: A2

Description: A code indicating the fugitive status of a defendant
Format: A1

Description: The date upon which a defendant became a fugitive
Format: YYYYMMDD

Description: The date upon which a fugitive defendant was taken into custody
Format: YYYYMMDD

Description: The date when a case was first docketed in the district court
Format: YYYYMMDD

Description: The date upon which proceedings in a case commenced on charges pending in the district court where the defendant appeared, or the date of the defendant’s felony-waiver of indictment
Format: YYYYMMDD

Description: A code used to identify the nature of the proceeding
Format: N2

Description: The date when a defendant first appeared before a judicial officer in the district court where a charge was pending
Format: YYYYMMDD

Description: A code indicating the type of legal counsel assigned to a defendant
Format: N2

Description: The title and section of the U.S. Code applicable to the offense committed which carried the highest severity
Format: A20

Description: A code indicating the level of offense associated with FTITLE1
Format: N2

Description: The four digit AO offense code associated with FTITLE1
Format: A4

Description: The four digit D2 offense code associated with FTITLE1
Format: A4

Description: A code indicating the severity associated with FTITLE1
Format: A3

Description: The FIPS code used to indicate the county or parish where an offense was committed
Format: A5

Description: The date of the last action taken on the record
Format: YYYYMMDD

Description: The date upon which judicial proceedings before the court concluded
Format: YYYYMMDD

Description: The date upon which the final sentence is recorded on the docket
Format: YYYYMMDD

Description: The date upon which the case was closed
Format: YYYYMMDD

Description: The number of days from the earlier of filing date or first appearance date to proceeding date
Format: N3

Description: The number of days from proceeding date to disposition date
Format: N3

Description: The number of days from disposition date to sentencing date
Format: N3

Description: The code of the district office where the case was terminated
Format: A2

Description: A code indicating the type of legal counsel assigned to a defendant at the time the case was closed
Format: N2

Description: The title and section of the U.S. Code applicable to the offense that carried the most severe disposition and penalty under which the defendant was disposed
Format: A20

Description: A code indicating the level of offense associated with TTITLE1
Format: N2

Description: The four digit AO offense code associated with TTITLE1
Format: A4

Description: The four digit D2 offense code associated with TTITLE1
Format: A4

Description: A code indicating the severity associated with TTITLE1
Format: A3

Description: The code indicating the nature or type of disposition associated with TTITLE1
Format: N2

Description: The number of months a defendant was sentenced to prison under TTITLE1
Format: N4

Description: The number of months of probation imposed upon a defendant under TTITLE1
Format: N4

Description: A code indicating whether the probation sentence associated with TTITLE1 was concurrent or consecutive in relation to the other counts in the indictment or information or multiple counts of the same charge
Format: A4

Description: A period of supervised release imposed upon a defendant under TTITLE1
Format: N3

Description: The fine imposed upon the defendant at sentencing under TTITLE1
Format: N8

Description: The total prison time for all offenses of which the defendant was convicted and prison time was imposed
Format: N4

Description: The total probation time for all offenses of which the defendant was convicted and probation was imposed
Format: N4

Description: The total fine imposed at sentencing for all offenses of which the defendant was convicted and a fine was imposed
Format: N8

Description: A count of defendants filed including inter-district transfers
Format: N1

Description: A count of defendants filed excluding inter-district transfers
Format: N1

Description: A count of original proceedings commenced
Format: N1

Description: A count of defendants filed whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1

Description: A count of defendants terminated including interdistrict transfers
Format: N1

Description: A count of defendants terminated excluding interdistrict transfers
Format: N1

Description: A count of original proceedings terminated
Format: N1

Description: A count of defendants terminated whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1

Description: A count of defendants pending as of the last day of the period including long term fugitives
Format: N1

Description: A count of defendants pending as of the last day of the period excluding long term fugitives
Format: N1

Description: The source from which the data were loaded into the AOUSC’s NewSTATS database
Format: A10

Description: A sequential number indicating the iteration of the defendant record
Format: N2

Description: The date the record was loaded into the AOUSC’s NewSTATS database
Format: YYYYMMDD

Description: Statistical year ID label on data file obtained from the AOUSC which represents termination year
Format: YYYY

Data imported from FJC Integrated Database
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