Federal Jury Returns Guilty Verdicts in Dallas City Hall Corruption Case

Former Mayor Pro Tem Don Hill, his Wife Sheila Farrington Hill,and a Cadre of
Associates are Convicted Following Three Month Trial

DALLAS, Oct. 5 /PRNewswire-USNewswire/ -- Following a trial that began in June
2009, and after several days of deliberation, a federal jury has convicted
former Dallas Mayor Pro Tem Don Hill, 57, his wife, Sheila Farrington Hill,
45, Hill's Plan Commission Appointee, D'Angelo Lee, 43, and others who were
involved in a bribery and extortion scheme, in what was referred to locally as
the "Dallas City Hall Corruption Case," announced U.S. Attorney James T. Jacks
of the Northern District of Texas. U.S. District Judge Barbara M.G. Lynn will
sentence the defendants on a date to be determined.

U.S. Attorney Jacks said, "At the end of the day, the citizens of a community
are the ones that ultimately decide what type of government they will have in
that community. Whether at the ballot box or, as in this case, through its
verdict as a jury, the citizens decide what is expected of their elected
officials. Through this lengthy investigation and subsequent trial, the
government presented compelling evidence showing that an elected official and
many of those non-elected officials working around him, sought to use that
position as a means to line their own pockets at the expense of the public.
The jury's verdict today shows that the citizens of this community do not want
a government where the game is rigged and the people in positions of power
seek to further their own interests before that of the citizens they are
supposed to be serving."

FBI Special Agent in Charge Casey said, "The FBI did its duty in this case and
now the jury has spoken. The FBI followed the evidence - wherever it led - in
a professional and impartial way. The FBI Agents, analysts, and other
professional staff served the community exceedingly well in this investigation
into the allegations of corruption within Dallas City government. I also
extend my appreciation to the Agents of the Internal Revenue Service -
Criminal Investigative Division for their assistance in the investigation.
Finally, I want to recognize the dedicated and skilled prosecutors in the
United States Attorney's Office for their strong partnership with us in the
pursuit of justice."

"The citizens of this community are truly the victims of this crime. They must
believe that they can trust the officials they elect to do what is right and
this verdict is a validation of that principle. Part of IRS-CI's mission is to
assure these honest taxpayers that everyone must comply with the same laws,"
said Michael P. Lahey, Dallas Special Agent in Charge of the IRS Criminal
Investigation.

Donald W. Hill, aka Don Hill, who was on the witness stand for nearly six
days, was convicted on seven of nine counts charged, including one count of
conspiracy to commit bribery concerning a local government receiving federal
benefits; two counts of bribery concerning a local government receiving
federal benefits; one count of conspiracy to commit extortion; one count of
extortion by a public official; one count of conspiracy to commit deprivation
of honest services by wire fraud, and one counts of conspiracy to commit money
laundering.

Sheila Farrington was convicted on five of six counts charged, including one
count of conspiracy to commit bribery concerning a local government receiving
federal benefits; one count of aiding and abetting bribery concerning a local
government receiving federal benefits; one count of aiding and abetting
extortion by public officials; one count of conspiracy to commit deprivation
of honest services by wire fraud; and one count of conspiracy to commit money
laundering.

D'Angelo Lee, 43, Hill's Plan Commission Appointee, was convicted on all seven
of seven counts charged, including one count of conspiracy to commit bribery
concerning a local government receiving federal benefits; two counts of
bribery concerning a local government receiving federal benefits; one count of
conspiracy to commit extortion; one count of extortion by public officials;
one count of conspiracy to commit deprivation of honest services by wire
fraud; and one count of conspiracy to commit money laundering.

Darren L. Reagan, 50, described as a community activist, and the chairman and
CEO of the Black State Employees Association, was convicted on two of four
counts charged, including one count of conspiracy to commit extortion and one
count of aiding and abetting in extortion by public officials.

Rickey Robertson, 43, of Cedar Hill, Texas, a local businessman/car dealer was
convicted on two of three counts charged, including conspiracy to commit
extortion. Robertson was also a principal of RA-MILL.

The government presented evidence that, beginning in 2004, Hill and his
co-defendants entered into an association in which thousands of dollars in
bribes were paid by co-defendants Brian L. Potashnik, 51, of Highland Park,
Texas, and his wife, Cheryl L. Potashnik, 40, owners of Southwest Housing
Development Company, Inc., through sham business contracts to the defendants.
The government also presented evidence that Hill and Lee were involved in
corrupt solicitation from developers in an effort to gain financial benefit.

Prior to trial, others charged in the indictment pleaded guilty to their
involvement in the scheme, including Brian and Cheryl Potashnik. In addition,
Allen McGill, 66, the former president and vice chair of the Black State
Employees Association of Texas, pleaded guilty to one count of conspiracy to
commit extortion. Andrea Spencer, 35, pleaded guilty to her role in the
scheme, as have Kevin Dean, 44, and John Lewis, 46. Spencer admitted funneling
bribes to Hill and Lee. Dean and Lewis admitted their role in extorting money
from developer Bill Fisher. U.S. District Judge Barbara M.G. Lynn will
sentence these defendants on a date to be determined.

The government seeks forfeiture of more than $700,000 arising from the
convicted defendants' criminal activity. The defendants waived a forfeiture
trial before the jury and the Court will announce its findings at sentencing.

An indictment is an accusation by a federal grand jury and a defendant is
entitled to the presumption of innocence unless proven guilty.

U.S. Attorney Jacks praised the excellent investigative efforts of the FBI and
IRS-CI. Assistant U.S. Attorneys Marcus Busch, Sarah Saldana and Chad Meacham
are prosecuting the case.

SOURCE U.S. Department of Justice

Kathy Colvin of the Office of United States Attorney James T. Jacks, Northern
District of Texas, +1-214-659-8600, WWW.USDOJ.GOV/USAO/TXN