DALLAS (WBAP/KLIF News) – Former Dallas City Councilwoman Carolyn Davis pleaded guilty to accepting more than $40,000 in bribes.
In a press conference Friday, U.S. Attorney for the Northern District of Texas Erin Nealy Cox said Davis actively sought out these bribes from real estate developer Ruel Hamilton, a principal with AmeriSouth Realty Group, for his low-income housing project while she served as Chair of the Dallas Housing Committee.
Prosecutors said in return for the money, Davis admitted she lobbied and voted for the authorization of a $2.5 million development loan to fund the Royal Crest housing project, along with a City of Dallas resolution supporting 9 percent tax credits for Royal Crest.
Royal Crest was competing with another project at the time of the bribe.
Court documents show Hamilton allegedly paid out about a quarter of the bribe money to Davis’ in cash that was withdrawn from his account and the remainder was funneled through a not-for-profit intermediary.
Prosecutors said in an attempt to hide the payment, Hamilton allegedly issued checks to the owner of the not-for-profit, then handed the checks to Davis, who then gave them to the not-for-profit owner.
The money was deposited or cashed and then given back to Davis, according to court documents.
According to prosecutors, Davis did not disclose any of these payments to the City Council, to the Housing Committee or on her financial disclosure report.
Davis, who left office in 2016, is facing up to five years in federal prison for pleading guilty to conspiracy to commit bribery concerning an agent of a local government receiving federal benefits.
Hamilton has been indicted for allegedly paying Davis the bribe. According to the indictment, Hamilton allegedly bribed another public official, referred to in court documents as Council Person A in August of 2018.
In return for Council Person A’s help in getting a referendum on the council agenda and promoting another housing project, Hamilton allegedly wrote a check for $7,000 to cover Council Person A’s personal needs.
The documents indicted Council Person A left office August 9, 2018.
Former Dallas Mayor Pro Tem Dwaine Carraway resigned from office in August of 2018 and pleaded guilty to federal corruption charges for accepting kickbacks involving the Dallas County Schools scandal.
If convicted, Hamilton faces up to 20 years in prison for two counts of bribery.
Hamilton’s attorney Abbe David Lowell said his client is innocent.
“Prosecutors make mistakes all the time. Today, they added to the list by staging a set-up to trap and then bring charges against my client Ruel Hamilton. People in this city knew Ruel to be a pillar of the community, a fierce advocate for civil rights and fairness to working people and an honest man. When this case is heard and the truth is known, Mr. Hamilton will be exonerated and we will look forward to our day in court to defend him,” he said.
Cox said she hopes Davis guilty plea sends a message to public officials across North Texas.
“When you prioritize your own financial interests ahead of your duty to your constituents, we will dig as deep as we have in order to uncover the scheme and we will bring you to justice,” she said.
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