FOR IMMEDIATE RELEASE
Thursday, May 11, 2017
Former U.S. Congresswoman Corrine Brown Guilty of Fraud Scheme Involving Bogus Non-Profit Scholarship Entity
Former
U.S. Congresswoman Corrine Brown was convicted by a federal jury in
Jacksonville, Florida, today for her role in a conspiracy and fraud
scheme involving a fraudulent scholarship charity.
Acting Assistant Attorney
General Kenneth A. Blanco of the Justice Department’s Criminal Division,
Acting U.S. Attorney W. Stephen Muldrow of the Middle District of
Florida, Special Agent in Charge Charles P. Spencer of the FBI’s
Jacksonville, Florida, Division and Chief Richard Weber of the of
Internal Revenue Service-Criminal Investigation (IRS-CI) made the
announcement.
“Former Congresswoman Corrine
Brown violated the public trust, the honor of her position, and the
integrity of the American system of government when she abused one of
the most powerful positions in the nation for her own personal gain. She
shamefully deprived needy children of hundreds of thousands of dollars
that could have helped with their education and improved their
opportunities for advancement, and she lied to the IRS and the American
public about secret cash deposits into her personal bank accounts,” said
Acting Assistant Attorney General Blanco. “The Department of Justice is
committed to fighting corruption and fraud wherever we find it, at all
levels of government, regardless of their power and influence.”
“Former Congresswoman Brown
chose greed and personal gain over the sacred trust given to her by the
community that she served for many years,” said Acting U.S. Attorney
Muldrow. “These guilty verdicts underscore our Office's resolve in
holding public officials at all levels of government accountable for
their actions. In this case, former Congresswoman Brown stole money that
was donated on the false promise of helping further the educational
goals of underprivileged children.”
“Former Congresswoman Brown
took an oath year after year to serve others, but instead she exploited
the needs of children and deceived her constituents to advance her own
personal and political agendas,” said Special Agent in Charge Spencer.
“Corrupt public officials undermine the integrity of our government and
violate the public’s trust, and that is why investigating public
corruption remains the FBI’s top criminal priority. I am proud of our
special agents, analysts and support personnel who spent countless hours
following the money trail in this case, and thank our law enforcement
partners at the IRS-CI and U.S. Attorney’s Office for their efforts to
hold Brown and her associates accountable for their inexcusable
actions.”
“Former Congresswoman Corrine
Brown failed to deliver and uphold her duty to file true and correct tax
returns by lying about her income and charitable contributions to feed
her greed. No one is above the law, including those in a position of
public trust, and there isn’t a separate standard when it comes to
paying taxes, said Chief Weber. “IRS CI, along with our law enforcement
partners, will hold accountable those who violate the tax laws and cheat
the taxpayers.”
Brown, 70, of Jacksonville,
was convicted on 18 counts of an indictment charging her with
participating in a conspiracy involving a fraudulent education charity,
concealing material facts on required financial disclosure forms,
obstructing the due administration of the internal revenue laws and
filing false tax returns.
Judge Timothy J. Corrigan of the Middle District of Florida noted that he would schedule Brown’s sentencing for a later date.
Brown’s co-conspirators, Elias
“Ronnie” Simmons, Brown’s long-time Chief of Staff, and Carla Wiley,
the president of the fraudulent charity, previously pleaded guilty to
their roles in the education charity scheme on Feb. 8, 2017, and March
3, 2016, respectively.
Evidence at trial showed that
between late 2012 and early 2016, Brown participated in a conspiracy and
fraud scheme involving One Door for Education – Amy Anderson
Scholarship Fund (One Door) in which Brown, Simmons, Wiley and others
acting on their behalf solicited more than $800,000 in charitable
donations based on false representations that the donations would be
used for college scholarships and school computer drives, among other
charitable causes. Testimony by One Door donors showed that Brown and
her coconspirators solicited donations from individuals and corporate
entities that Brown knew by virtue of her position in the U.S. House of
Representatives. Many of the donors were led to believe that One Door
was a properly registered 501(c)(3) non-profit organization, when, in
fact, it was not.
Contrary to Brown’s
representations, Brown, Simmons, Wiley and others used the vast majority
of One Door donations for their personal and professional benefit,
including tens of thousands of dollars in cash deposits that Simmons
made to Brown’s personal bank accounts, according to trial evidence. In
one instance, Simmons deposited $2,100 of One Door funds into Brown’s
personal bank account the same day that Brown paid $2,057 to the IRS for
taxes she owed. Likewise, trial evidence showed Brown and Simmons used
the outside consulting company of one of Brown’s employees to funnel One
Door funds to Brown and others for their personal use.
Trial evidence also showed
that more than $300,000 in One Door funds were used to pay for events
hosted by Brown or held in her honor, including a golf tournament in
Ponte Vedra Beach, Florida; lavish receptions during an annual
conference in Washington, D.C.; the use of a luxury box during a concert
in Washington, D.C.; and the use of a luxury box during an NFL game in
the Washington, D.C., area. According to trial evidence, despite raising
over $800,000 in donations, One Door granted only two scholarships
totaling $1,200 that were awarded to students to cover expenses related
to attending a college or university.
Additionally, trial evidence
demonstrated that Brown failed to disclose, among other things, the
reportable income she received from One Door and claimed deductions on
her tax returns based on false statements that she made certain
donations to One Door, as well as to local churches and non-profit
organizations in the Jacksonville area.
The FBI and IRS-CI
investigated the case. Deputy Chief Eric G. Olshan of the Criminal
Division’s Public Integrity Section and Assistant U.S. Attorneys A.
Tysen Duva and Michael J. Coolican of the Middle District of Florida
prosecuted the case.
Topic(s):
Public Corruption
Component(s):
Press Release Number:
17-520
Updated May 11, 2017
