THE GRAND JURY CHARGES:
BACKGROUND TO ALL COUNTS
At all times relevant to this Indictment:
- The United States Department of Agriculture ("USDA") was a department of the
United States Government. The mission of the USDA was, among other things, to improve and
promote agricultural development and production in the United States.
- From on or about January 22, 1993 until on or about December 31, 1994, defendant
ALPHONSO MICHAEL ESPY ("ESPY") was the Secretary of Agriculture. Defendant ESPY
was selected by the President-Elect to be Secretary of Agriculture on or about December
24, 1992.
- The Secretary of Agriculture was the senior official in charge of the USDA, a member of
the President's Cabinet, and ninth in line to succeed the President of the United States
should it be necessary.
The Duty of Honest Services
- Public service is a public trust. As the Secretary of Agriculture, an employee and
official of the United States and the Executive Branch, the honest services owed by
defendant ESPY to the United States, its citizens, the officials of the Executive Office
of the President, and the USDA included the duties to: (A) neither solicit nor receive
gratuities in violation of federal law; (B) perform his job as a Cabinet official free
from deceit, fraud, dishonesty and self-enrichment; (C) obey the criminal and civil laws
of the United States and regulations promulgated by the authority of the President and
Executive Branch agencies in the performance of his official duties; and (D) disclose to
the government and the public material information as required by law and regulation.
- Beginning on or about January 5, 1993 and continuing thereafter through on or about
February 16, 1995, in the District of Columbia and elsewhere, defendant ESPY and others
known and unknown to the Grand Jury did devise, and intend to devise, a scheme and
artifice: (1) to defraud and to deprive the United States, its citizens, the officials of
the Executive Office of the President, and the USDA of their right to honest services; and
(2) to obtain money and property by means of false and fraudulent pretenses,
representations and promises.
- The rights of the United States, its citizens, the officials of the Executive Office of
the President, and the USDA contravened by defendant ESPY's scheme and artifice included,
but were not limited to:
- the right to defendant ESPY's conscientious, loyal, faithful, disinterested services,
actions, and performance of his official duties, free from dishonesty, deceit, official
misconduct, willful omission, and fraud;
- the right to have defendant ESPY conduct his official duties in accordance with the
relevant laws and regulations, free from his receipt of gifts and gratuities from persons,
firms and entities that were: (i) seeking official action from the USDA; (ii) doing
business with the USDA; (iii) conducting activities regulated by the USDA; (iv) having
interests that may be substantially affected by the performance of the official duties of
the Secretary of Agriculture and the USDA; and (v) having interests that may be
substantially affected by the non-performance of the official duties of the Secretary of
Agriculture and the USDA (collectively hereinafter sometimes referred to as
"prohibited sources") (all as is more fully set forth within the text of 5
U.S.C. § 7353);
- the right to not have the Secretary of Agriculture use government assets and expend
public funds for his personal benefit;
- the right to accurate and complete personal financial information disclosed by defendant
ESPY as was required by law and regulation, including, but not limited to, Executive
Branch Public Financial Disclosure Report, Standard Form 278, so that the public, and
responsible officials, agencies, and departments of the federal government would have
sufficient information concerning defendant ESPY's interests and activities to make an
informed judgment with respect to defendant ESPY's compliance with applicable
conflict-of-interest laws and standards of conduct regulations; and
- the right to truthful and complete responses from defendant ESPY when inquiries were
made by representatives of the President, the USDA Office of Inspector General ("USDA
Inspector General") and the Federal Bureau of Investigation ("FBI"),
concerning whether defendant ESPY received or solicited gifts, gratuities, or other things
of value.
The Solicitation and Receipt of Gratuities
- From on or about January 5, 1993, after the President-Elect announced that defendant
ESPY was selected for appointment as Secretary of Agriculture, and continuing through his
term as Secretary of Agriculture, defendant ESPY sought, solicited, received, and accepted
gifts, gratuities and things of value for himself and for his girlfriends and family
members, from corporations and individuals seeking official action by, doing or seeking to
do business with, and conducting activities regulated by the USDA.
- The prohibited sources from whom defendant ESPY solicited and received gifts, gratuities
and things of value, directly or indirectly, and who had interests that could be
substantially affected by performance or nonperformance of defendant ESPY's official
duties included, among others:
- Sun-Diamond Growers of California ("Sun-Diamond") and its officers and agents.
Sun-Diamond is a California agricultural cooperative corporation comprised of five member
cooperatives -- Diamond Walnut, Sun-Maid Growers of California, Sunsweet Growers, Inc.,
Valley Fig Growers, and Hazelnut Growers of Oregon -- with approximate annual revenues of
$648 million. Sun-Diamond did business with, was seeking official action by, and was
regulated by the USDA on a variety of matters;
- Richard Douglas ("Douglas"), the Senior Vice President for Corporate Affairs
for Sun-Diamond. Douglas was in charge of and responsible for (1) communicating with the
Secretary of Agriculture and other decision-makers at the USDA; and (2) directing
Sun-Diamond's federal government lobbying activities and representatives. Douglas was
seeking official action by the USDA on behalf of Sun-Diamond, its member cooperatives and
others;
- Tyson Foods, Inc. ("Tyson Foods") and its officers and agents. Tyson Foods is
a corporation with approximately $5 billion in annual revenues and which does business
from facilities in Arkansas, 17 other states, and in three foreign countries. Tyson Foods
processes, produces and markets poultry and red meat and conducts activities regulated by,
and did business with, the USDA;
- Jack L. Williams ("Williams"), a registered lobbyist for Tyson Foods in
Washington, D.C. and elsewhere. Williams was seeking official action by the USDA on behalf
of various organizations, including Tyson Foods, whose activities were regulated by the
USDA;
- Oglethorpe Power Corporation ("Oglethorpe Power") and its officers and agents,
which included but was not limited to, Smith Barney, Inc. ("Smith Barney"), an
investment, securities banking and brokerage firm. Oglethorpe Power is a Georgia
electrical power cooperative serving approximately 2.3 million customers, with approximate
annual revenues of over $1 billion. Oglethorpe Power was seeking official action by the
USDA on various matters, including the refinancing of over $3 billion in Rural
Electrification Association ("REA") bonds;
- EOP Group, Inc. ("EOP") and its officers and agents. EOP is a Washington, D.C.
political and business consulting company with approximate annual revenues of $2 million.
EOP was seeking official action by the USDA on behalf of various organizations, including
Oglethorpe Power, whose activities were regulated by the USDA;
- Quaker Oats Company ("Quaker Oats") and its officers and agents. Quaker Oats,
headquartered in Chicago, Illinois, is a corporation with approximately $5.7 billion in
annual revenues, does business in the areas of grain-based cereals and snacks, and has a
food division that processes red meat products. Quaker Oats' business is regulated by the
USDA; and
- Fernbank, Inc. ("Fernbank") and its officers and agents. Fernbank is a private
non-profit organization which runs the Fernbank Museum of Natural History in Atlanta,
Georgia, and was doing business with the USDA by virtue of a $71,000 Federal Financial
Assistance Grant for the 1994 Smokey Bear Exhibit.
- The gifts, gratuities, and things of value solicited and received, directly and
indirectly, by defendant ESPY for himself, his family and his girlfriends from the
specified prohibited sources, which totaled in value approximately $35,458, were all for
the benefit of defendant ESPY and included, but were not limited to, those listed
hereinafter:
a. SUN-DIAMOND/DOUGLAS: |
|
DATE* |
THINGS OF VALUE |
VALUE** |
(1) |
3/14/93 |
Luggage |
$ 2,427 |
(2) |
5/13/93 |
Cash to defendant ESPY's girlfriend |
$ 3,200 |
(3) |
9/11/93 |
Limousines in New York |
$ 246 |
(4) |
9/11-12/93 |
U.S. Open Tennis Tickets |
$ 4,200 |
(5) |
11/10/93 |
Tickets to Washington Bullets-NewYork Knicks
National Basketball Association
("NBA") Game |
$ 222 |
(6) |
1/17/94 |
Waterford Crystal Bowl |
$ 173 |
(7) |
4/1/94 |
Contributions to defendant
ESPY's brother |
$10,000 |
|
TOTAL VALUE: |
$20,468 |
* All dates in this Indictment are "on or about."
** All values in this Indictment are approximate.
b. TYSON FOODS/WILLIAMS: |
|
DATE* |
THINGS OF VALUE |
VALUE |
|
|
Inauguration |
|
(1) |
1/18/93 |
Four seats at Presidential
Inaugural Dinner |
$ 6,000 |
|
Russellville Birthday Party |
|
(2) |
5/14/93 |
Round trip airfare from Washington
National Airport to Russellville,
AR for defendant ESPY's girlfriend |
$ 830 |
(3) |
5/16/93 |
Lodging, meals and entertainment
at the Tyson Management
Development Center ("TMDC")
for defendant ESPY and his
girlfriend |
$ 1,726 |
|
Scholarship |
|
(4) |
1/4/94 |
Check to defendant
ESPY's girlfriend |
$ 1,200 |
|
Dallas Trip |
|
(5) |
1/15/94 |
Airfare from Washington National
Airport to Dallas, TX for defendant
ESPY's girlfriend |
$ 1,009 |
(6) |
1/15-16/94 |
Limousines and parking charges in
Dallas, TX |
$ 968 |
|
(7) |
1/16/94 |
Skybox Tickets to Dallas
Cowboys-Green Bay Packers
National Football League ("NFL")
Playoff Game |
$ 110 |
|
TOTAL VALUE: |
$11,843 |
c. OGLETHORPE POWER/EOP/SMITH BARNEY: |
|
DATE* |
THINGS OF VALUE |
VALUE |
|
1/30/94 |
Super Bowl Ticket |
$ 2,200 |
d. EOP: |
|
DATE* |
THINGS OF VALUE |
VALUE |
|
5/1/93 |
Employment for defendant
ESPY's girlfriend |
Not assigned |
e. QUAKER OATS: |
|
DATE* |
THINGS OF VALUE |
VALUE |
|
6/18/93 |
Tickets to Chicago Bulls-Phoenix
Suns NBA Championship Game |
$ 90 |
f. FERNBANK: |
|
DATE* |
THINGS OF VALUE |
VALUE |
|
1/30/94 |
Super Bowl Tickets |
$ 857 |
The Concealment of Material Information and Use of False Pretenses
- To ensure confidence in the integrity of the Federal Government, the Ethics in
Government Act (the "Act") imposed upon government officials, including
defendant ESPY, a duty to fully and accurately disclose publicly their personal financial
interests. This duty included, but was not limited to, the duty to accurately prepare and
file yearly, and at other times, a Public Financial Disclosure Report, SF-278, that
required disclosure of, among other things, "all gifts aggregating $250 or more in
value . . . from any one source." A purpose for such reports is to ensure that the
public and responsible officials, agencies, and departments of the federal government are
given sufficient information by reporting individuals concerning the nature of their
outside interests and activities so that an informed judgment can be made with respect to
compliance with applicable conflict-of-interest laws and standards of conduct regulations.
In contravention of this duty, and to conceal his receipt of things of value, gifts and
gratuities solicited and received in violation of law, defendant ESPY:
- on or about June 13, 1994, prepared, signed and submitted a Public Financial Disclosure
Report, SF-278, for the 1993 calendar year which failed to disclose the receipt of
approximately $9,561 in gratuities, gifts and things of value received by defendant ESPY
from Tyson Foods, Williams, Sun-Diamond, Douglas and others; and
- on or about February 16, 1995, prepared, signed and submitted a Public Financial
Disclosure Report, SF-278, for the 1994 calendar year which failed to disclose the receipt
of approximately $3,191 in gratuities, gifts and things of value received by defendant
ESPY from Tyson Foods, Williams, Oglethorpe Power, EOP, Smith Barney and Fernbank.
- To further conceal his acceptance of gratuities, gifts, and things of value from
prohibited sources, defendant ESPY made false representations and pretenses regarding his
travel and the necessity of his attendance in his official capacity at certain functions
including, but not limited to:
- on or about May 14, 1993, for the purpose of justifying his travel to and presence at
the TMDC in Russellville, Arkansas at the 40th birthday party of a Tyson Foods' official,
defendant ESPY accepted an invitation to speak in his official capacity to the Arkansas
Poultry Federation, while in truth defendant ESPY was in Russellville to attend the
weekend birthday celebration as a guest of Tyson Foods;
- on or about January 14, 1994, for the purpose of justifying his presence in Dallas,
Texas, defendant ESPY arranged to meet with a local agent of the USDA Inspector General to
discuss official USDA business, while in truth the reason defendant ESPY was in Dallas,
Texas was to attend a playoff football game as a guest of Tyson Foods; and
- on or after January 21, 1994, defendant ESPY was advised that there were no official
USDA events scheduled for the Super Bowl in Atlanta. Thereafter, defendant ESPY caused his
staff to schedule and attempt to schedule various meetings in Atlanta during the weekend
of January 29 through 30, 1994 to justify his travel to Atlanta, Georgia and his
attendance at the Super Bowl.
- Once questions arose on or after March 17, 1994, with the publication of an article in The
Wall Street Journal, as to whether and to what extent defendant ESPY had accepted
gratuities, gifts, and things of value from prohibited sources, including Tyson Foods,
defendant ESPY made false statements to various Executive Branch members and officials as
follows:
- on or about April 1, 1994, when questioned by Special Agents of the USDA Inspector
General about events surrounding his travel to Russellville, Arkansas on the weekend of
May 14 through May 16, 1993, defendant ESPY concealed the fact that he and his girlfriend
were at the TMDC as guests of Tyson Foods for a weekend birthday party, complete with
lodging, food, drink and professional musical entertainment, and falsely stated that he
returned to Washington, D.C. on a Tyson Foods' jet because there were no available
commercial facilities, when in truth defendant ESPY's staff had previously made commercial
reservations for ESPY's return which defendant ESPY had directed to be canceled so he
could fly in a Tyson Foods' jet;
- on or about April 8, 1994, in response to a request by Special Agents of the USDA
Inspector General to produce a copy of defendant ESPY's travel itinerary for the weekend
of January 15 through 16, 1994, defendant ESPY caused to be made and delivered to the USDA
Inspector General Special Agents an altered travel itinerary which deleted all references
to defendant ESPY's girlfriend, the Chairman of Tyson Foods, limousine service provided by
Tyson Foods and the Green Bay v. Dallas 2nd Round National Football Conference football
game which defendant ESPY and his girlfriend attended as guests of Tyson Foods;
- on or about June 1, 1994, when questioned by Special Agents of the FBI about the source
and nature of certain gifts provided to defendant ESPY and his girlfriend by Tyson Foods'
Chairman and others, defendant ESPY falsely stated that he attended the NBA Championship
playoffs in Chicago in 1993 with a ticket provided by Richard Douglas, and that defendant
ESPY could not recall any time when he accepted favors, benefits or gifts from any
organizations or companies other than Tyson Foods when in truth defendant ESPY directed a
member of his staff to solicit NBA Championship game tickets from the Chairman of Quaker
Oats, and defendant ESPY had accepted the gratuities, gifts, and things of value from the
organizations and companies specified in paragraphs 9.a., and 9.c. - 9.f., above; and
- on or about September 30, 1994, when questioned by the Chief of Staff of the President
of the United States concerning his receipt and solicitation of gifts, gratuities, and
things of value from prohibited sources, defendant ESPY, in substance and among other
things, stated "there's nothing else out there," well knowing at the time such
statement and representation was false when made and that he had concealed and covered up
the gifts, gratuities, and things of value he had received from the entities and
individuals set forth in paragraphs 9.a., 9.b.(1), (3), (5), 9.c., and 9.d.
- Further, as questions arose as to whether and to what extent defendant ESPY had accepted
gratuities, gifts, and things of value from prohibited sources and as those questions and
concerns were published in media accounts and made known to defendant ESPY through
interviews by the USDA Inspector General and the FBI, defendant ESPY made payments to the
prohibited sources for certain of the gratuities, gifts, and things of value in order to
conceal, cover up and disguise his activities and intent regarding his solicitation and
receipt of the gratuities, gifts, and things of value. Moreover, in response to these
published reports, defendant ESPY also made payments to the USDA to disguise his intent to
take, convert and misappropriate public funds for his personal benefit for transportation.
Defendant ESPY's deceptive payments included, but were not limited to the following:
- March 18, 1994 payment of $68 to the Chairman of Tyson Foods for the January 16, 1994
Dallas Cowboys - Green Bay Packers NFL Playoff Game Ticket, which payment followed an
article in The Wall Street Journal on March 17, 1994;
- June 2, 1994 payment of approximately $69 to the Arkansas Poultry Federation for lodging
at the TMDC on May 15, 1993, which payment followed the June 1, 1994 interview of
defendant ESPY by Special Agents of the FBI, wherein defendant ESPY was questioned about
his travel to Russellville;
- August 25, 1994 payment of $90 to the Chairman of Quaker Oats for tickets to the Chicago
Bulls - Phoenix Suns NBA Championship game on June 18, 1993, which payment followed
published press reports on or about August 7, 1994 stating that the Chairman of Quaker
Oats was the source of the tickets used by defendant ESPY and Douglas;
- September 14, 1994 payment of $700 to a Trustee of the Fernbank Museum for four tickets
to the January 30, 1994 Super Bowl following the appointment of the Independent Counsel on
September 9, 1994 to investigate, inter alia, defendant ESPY's acceptance of gratuities,
gifts and things of value, including tickets to sporting events; and
- September 15, 1994 payment of approximately $6,204 to the USDA for defendant ESPY's
personal use of a Jeep Cherokee vehicle, leased by the USDA, following the September 9,
1994 appointment of the Independent Counsel.
The Use of Government Assets and
Expenditure of Public Funds for Personal Benefit
- From on or about January 22, 1993 through on or about February 16, 1995, defendant ESPY
used government assets and expended public funds for his personal benefit including, but
not limited to, a Jeep Cherokee as follows: (i) while serving as a member of the United
States House of Representatives from Mississippi, defendant ESPY was entitled to lease an
automobile for official use at the expense of the House of Representatives; (ii) on
December 21, 1992, three days prior to the President-Elect's announcement of defendant
ESPY as his selection for appointment as Secretary of Agriculture, defendant ESPY obtained
in Mississippi a lease on a 1993 Jeep Cherokee valued at approximately $27,000; (iii) upon
assuming the position of Secretary of Agriculture, defendant ESPY was entitled to a
USDA-leased limousine and a USDA driver; (iv) wanting to keep the Jeep Cherokee in
Mississippi for his personal use, defendant ESPY, on or about January 22, 1993, requested
the USDA to assume the lease payments, falsely representing to officials of the USDA that
he would use the Jeep Cherokee in the Washington, D.C. area as his official automobile,
eliminating the necessity for the USDA to furnish him with a limousine and driver; (v) in
reliance upon defendant ESPY's representations, the USDA paid a total of approximately
$6,200 for the Jeep Cherokee for the months of February 1993 through September 1993; and
(vi) contrary to defendant ESPY's representations, (1) defendant ESPY did not bring the
Jeep to the Washington, D.C. area but, instead, it remained in Mississippi through in or
about November 1993 where he used the vehicle for non-official purposes, and (2) on or
about April 5, 1993 and continuing through on or about December 31, 1994, defendant ESPY
requested and used a USDA limousine and driver in Washington, D.C.
COUNTS
ONE THROUGH SEVEN
WIRE FRAUD
- Paragraphs 1 through 14 of this Indictment are realleged and incorporated by reference
as though fully set forth herein.
- On or about the dates set forth below, in the District of Columbia and elsewhere,
defendant ESPY, for the purpose of executing and intending to execute the aforesaid scheme
and artifice to defraud the United States, its citizens, the officials of the Executive
Office of the President and the USDA of the intangible right of honest services and to
obtain money and property by means of false and fraudulent pretenses, representations, and
promises, transmitted and caused to be transmitted by means of wire communications in
interstate commerce writings, signs, signals, pictures and sounds, the following:
COUNT |
DATE |
DESCRIPTION |
ONE |
5/4/93 |
Telephone communications between the USDA in Washington, D.C.
and Tyson Foods in Springdale, Arkansas, to accept Tyson Foods' invitation to a weekend
birthday party hosted by Tyson Foods. |
TWO |
5/12/93 |
Facsimile communication between Tyson Foods in Springdale,
Arkansas and the USDA in Washington, D.C. to provide defendant ESPY travel and lodging
arrangements for a weekend birthday party hosted by Tyson Foods. |
THREE |
6/17/93 |
Telephone communications between the USDA in Washington, D.C.
and Quaker Oats headquarters in Chicago, Illinois to solicit two 1993 NBA Championship
tickets from Quaker Oats. |
FOUR |
1/18/94 |
Facsimile communication between the USDA Office of Inspector
General in Temple, Texas and in Washington, D.C. to report the results of a meeting
between defendant ESPY and an official of the USDA Inspector General in Dallas, Texas. |
FIVE |
1/27/94 |
Facsimile communication from the President of Oglethorpe
Power in Tucker, Georgia to defendant ESPY at the USDA in Washington, D.C., transmitting a
letter and map, and to confirm a meeting on January 29, 1994 at Oglethorpe Power corporate
headquarters. |
SIX |
1/27/94 |
Telephone communications between the USDA in Washington, D.C.
and Fernbank Museum in Atlanta, Georgia to request a total of four 1994 Super Bowl
tickets. |
SEVEN |
2/4/94 |
Facsimile communication from the President of Oglethorpe
Power, in Tucker, Georgia to defendant ESPY, USDA in Washington, D.C. requesting that
defendant ESPY elevate to other government officials Oglethorpe Power's proposal to
pre-pay REA bonds after the proposal was rejected by the administering federal bank. |
(In violation of 18 United States Code §§ 1343, 1346 and 2)
COUNTS EIGHT THROUGH TWELVE
MAIL FRAUD
- Paragraphs 1 through 14 of this Indictment are realleged and incorporated by reference
as though fully set forth herein.
- On or about the dates set forth below, in the District of Columbia and elsewhere,
defendant ESPY, for the purpose of executing and intending to execute the aforesaid scheme
and artifice to defraud the United States, its citizens, the officials of the Executive
Office of the President and the USDA of the intangible right of honest services and to
obtain money and property by means of false and fraudulent pretenses, representations and
promises, and attempting to do so, did place and cause to be placed in an authorized
depository for mail matter, the items described in Counts Eight through Twelve, to be
sent, as addressed, by the United States Postal Service, and did knowingly cause to be
delivered by mail according to the direction thereon, as described in each of the Counts
Eight through Twelve, such mail matter described below:
COUNT |
DATE |
DESCRIPTION |
EIGHT |
4/6/93 |
Purchase Order for $6,204 for the period of February 1993
through September 1993 sent from the USDA, 14th & Independence Ave., S.W., Rm. 1547,
South Building, Washington, D.C. 20250 to Chrysler Credit, P.O. Box 1050, Ridgeland,
Mississippi 39158-1050, for the lease of a 1993 Jeep Grand Cherokee. |
NINE |
3/18/94 |
Handwritten note from defendant ESPY, Department of
Agriculture, 14th Street & Independence Avenue, S.W., Rm. 200-A, Washington, D.C.
20250, to P.O. Box 2020, Springdale, Arkansas 72765, with a $68 personal check as payment
for the January 16, 1994 Dallas Cowboys -Green Bay Packers NFL Playoff game. |
TEN |
6/2/94 |
Letter from Speaking/Travel Coordinator, Department of
Agriculture Office of the Secretary, Washington, D.C. 20250, to the Arkansas Poultry
Federation, P.O. Box 1446, Little Rock, Arkansas 72203, containing defendant Espy's
personal check in the approximate amount of $69 for lodging expenses at the TMDC on May
15, 1993. |
ELEVEN |
8/25/94 |
Letter from defendant ESPY to The Quaker Oats Company, P.O.
Box 049001, Chicago, Illinois 60604-9001, stating that tickets to the Chicago Bulls -
Phoenix Suns NBA Playoff game provided to defendant ESPY and Douglas had not been repaid
due to an oversight, and containing defendant ESPY's personal check for $90. |
TWELVE |
9/14/94 |
Letter from defendant ESPY to Trustee, Fernbank Museum of
Natural History, 767 Clifton Road, N.E., Atlanta, Georgia 30307-1221, stating that
defendant ESPY is sending his personal check to reimburse the Fernbank Museum for four
tickets to the Super Bowl on January 30, 1994, and including a personal check for $700. |
(In violation of 18 United States Code §§ 1341, 1346 and 2)
COUNTS THIRTEEN THROUGH TWENTY-FIVE
ILLEGAL GRATUITIES
- Paragraphs 1 through 14 of this Indictment are realleged and incorporated by reference
as though fully set forth herein.
- On or about the dates set forth below, in the District of Columbia and elsewhere,
defendant ESPY, having been selected to serve and while serving as Secretary of
Agriculture, other than as provided by law for the proper discharge of official duties,
directly and indirectly demanded, sought, received, accepted and agreed to receive and
accept the following things of value, totaling approximately $25,458, and the benefit
thereof personally from the respective entities and persons listed below, for and because
of official acts performed and to be performed by defendant ESPY:
a. SUN-DIAMOND GROWERS/DOUGLAS: |
COUNT |
DATE |
THINGS OF VALUE |
VALUE |
THIRTEEN |
3/14/93 |
Luggage |
$2,427 |
FOURTEEN |
5/13/93 |
Cash to defendant ESPY's girlfriend |
$3,200 |
FIFTEEN |
9/11-12/93 |
U.S. Open Tennis Tickets and Limousines |
$4,446 |
SIXTEEN |
11/10/93 |
Tickets to Washington Bullets-New York Knicks NBA Game |
$ 222 |
SEVENTEEN |
1/17/94 |
Waterford Crystal Bowl |
$ 173 |
b. TYSON FOODS/WILLIAMS: |
COUNT |
DATE |
THINGS OF VALUE |
VALUE |
EIGHTEEN |
1/18/93 |
Four seats at Presidential
Inaugural Dinner |
$6,000 |
NINETEEN |
5/14-16/93 |
Russellville birthday
party, including airfare,
meals, lodging and
entertainment |
$2,556 |
TWENTY |
1/4/94 |
Check to defendant ESPY's girlfriend |
$1,200 |
TWENTY-ONE |
1/15-16/94 |
Weekend trip to Dallas,
TX, including airfare,
limousines and tickets to
Dallas Cowboys - Green
Bay Packers NFL
Playoff Football Game |
$2,087 |
c. OGLETHORPE POWER/EOP/SMITH
BARNEY: |
COUNT |
DATE |
THINGS OF VALUE |
VALUE |
TWENTY-TWO |
1/30/94 |
Super Bowl Ticket |
$2,200 |
|
d. EOP: |
COUNT |
DATE |
THINGS OF VALUE |
VALUE |
TWENTY-THREE |
5/1/93 |
Employment for defendant ESPY's girlfriend |
Not assigned |
e. QUAKER OATS: |
COUNT |
DATE |
THINGS OF VALUE |
VALUE |
TWENTY-FOUR |
6/18/93 |
Tickets to Chicago
Bulls-Phoenix Suns NBA
Championship Game |
$ 90 |
f. FERNBANK: |
COUNT |
DATE |
THINGS OF VALUE |
VALUE |
TWENTY-FIVE |
1/30/94 |
Super Bowl Tickets |
$ 857 |
(In violation of 18 United States Code §§ 201(c)(1)(B) and 2)
COUNTS TWENTY-SIX THROUGH TWENTY-EIGHT
MEAT INSPECTION ACT
- Paragraphs 1 through 14 of this Indictment are realleged and incorporated by reference
as though fully set forth herein.
- On or about the dates set forth below, in the District of Columbia and elsewhere,
defendant ESPY, while serving as Secretary of Agriculture, an official and employee of the
USDA authorized to perform the duties prescribed under the Meat Inspection Act, did
knowingly receive and accept the gifts and things of value totaling approximately $4,221
set forth below from the respective persons, firms, and corporations engaged in commerce
and subject to the Act:
a. TYSON FOODS/WILLIAMS: |
COUNT |
DATE |
THINGS OF VALUE |
VALUE |
TWENTY-SIX |
5/15-16/93 |
Russellville birthday
party, including airfare,
meals, lodging and
entertainment |
$2,044 |
TWENTY-SEVEN |
1/15-1/16/94 |
Weekend trip to Dallas,
TX, including Airfare,
Limousines and Tickets
to Dallas Cowboys -
Green Bay Packers NFL
Playoff Game |
$2,087 |
|
b. QUAKER OATS: |
COUNT |
DATE |
THINGS OF VALUE |
VALUE |
TWENTY-EIGHT |
6/18/93 |
Tickets to Chicago
Bulls - Phoenix Suns
NBA Championship
Game |
$ 90 |
(In violation of 21 United States Code § 622 and 18 United States Code
§ 2)
COUNT TWENTY-NINE THROUGH THIRTY-THREE
TRAVEL ACT
- Paragraphs 1 through 14 of this Indictment are realleged and incorporated by reference
as though fully set forth herein.
- On or about the dates set forth below, in the District of Columbia and elsewhere,
defendant ESPY traveled in interstate commerce as set forth below with intent to promote,
manage, establish and carry on, and to facilitate the promotion, management, establishment
and carrying on of unlawful activities, that is, the unlawful acceptance and receipt of
unlawful things of value in violation of 18 U.S.C. § 201(c) and 21 U.S.C. § 622, and
thereafter defendant ESPY accepted and received the following:
|
COUNT |
DATE |
TRAVEL |
THINGS OF VALUE |
|
|
|
TWENTY- NINE |
5/15/93 |
Washington, D.C.- Russellville, AR |
Lodging,
Entertainment and
Airfare |
THIRTY |
6/18/93 |
Washington, D.C.- Chicago, IL |
Chicago Bulls-Phoenix
Suns NBA
Championship
Game Tickets |
THIRTY-ONE |
9/11/93 |
Washington, D.C.- New York, NY |
U.S. Open Tickets and Limousines |
THIRTY-TWO |
1/15/94 |
Washington, D.C.- Dallas, TX |
Dallas Cowboys-Green Bay
Packers NFL Playoff Tickets
and Limousines |
THIRTY-THREE |
1/29/94 |
Washington, D.C.- Atlanta, GA |
Super Bowl Tickets |
(In violation of 18 United States Code § 1952)
COUNT THIRTY-FOUR
FALSE STATEMENT
- Paragraphs 1 through 14 of this Indictment are realleged and incorporated by reference
as though fully set forth herein.
- The USDA Office of Inspector General was a law enforcement organization charged with
investigating potential violations by USDA employees of federal laws and, among other
things, applicable Executive Branch and USDA ethics regulations. Beginning on or about
March 17, 1994, USDA Inspector General Special Agents were conducting an investigation
regarding the acceptance by USDA employees of gifts and gratuities from Tyson Foods, a
"prohibited source." It was material to the USDA Inspector General investigation
to determine whether Tyson Foods had given, and USDA employees had accepted, anything of
value and whether defendant ESPY had received anything of value from Tyson Foods.
- On or about April 1, 1994, in Washington, D.C., defendant ESPY was interviewed by
Special Agents of the USDA Office of Inspector General and made false statements and
representations. During the interview, defendant ESPY referred to trip itineraries for
official travel he undertook in May 1993 and January 1994. At the conclusion of the
interview, defendant ESPY was asked to produce these trip itineraries. On or about April
8, 1994, defendant ESPY caused to be delivered to USDA Inspector General Special Agents an
altered and false trip itinerary for the weekend of January 15 through 16, 1994, which
concealed and covered up material facts.
- From on or about April 1, 1994 until on or about April 8, 1994, in the District of
Columbia, defendant ESPY knowingly and willfully falsified, concealed and covered up by
trick, scheme and device material facts and made false, fictitious and fraudulent
statements and representations to a department and agency of the United States, the USDA
Inspector General, in a matter within its jurisdiction, namely, its investigation of
allegations of the unlawful receipt of gratuities by defendant ESPY in that:
- On or about April 1, 1994, defendant ESPY, in response to questions posed by Special
Agents of the USDA Inspector General, stated and represented that following an overnight
stay at the TMDC, on Sunday, May 16, 1993, Tyson Foods flew him back to Washington
National Airport in its corporate jet because defendant ESPY was directed to return to the
White House for dinner with the President and there were no available commercial airline
facilities to return him to Washington, D.C. in time to attend the dinner. In truth and
fact, (1) as early as May 6, 1993, defendant ESPY had planned to return to Washington,
D.C. on a Tyson Foods' corporate jet; (2) commercial airline flights were available to
defendant ESPY from Arkansas to the Washington National Airport; and (3) defendant ESPY's
staff had previously made commercial reservations from Arkansas to the Washington National
Airport which defendant ESPY had directed to be canceled;
- On or about April 8, 1994, defendant ESPY caused his staff to prepare and deliver to the
USDA Inspector General an altered and false trip itinerary which concealed and covered up
material facts, in that references on Saturday, January 15, 1994, to: (1) defendant ESPY's
girlfriend, (2) arrangements for "Limo service" in Dallas, Texas, (3) the
Chairman of Tyson Foods and his girlfriend at the "Mansion on Turtle Creek," and
references on Sunday, January 16, 1994, to (4) a "brunch at Stadium in Irving,
Texas," (5) the "Green Bay vs. Dallas 2nd Round National Football Conference
Playoffs," and (6) defendant ESPY's girlfriend were deleted and deliberately
concealed from the USDA Inspector General.
(In violation of 18 United States Code §§ 1001, 2)
COUNT THIRTY-FIVE
TAMPERING WITH A WITNESS
- Paragraphs 1 through 14 and 26 through 28 of this Indictment are realleged and
incorporated by reference as though fully set forth herein.
- On or about April 8, 1994, in the District of Columbia, defendant ESPY engaged in
misleading conduct toward another person, that is, an employee of the USDA, with the
intent to:
- withhold a record, document, and other object from an official proceeding, that is, an
investigation by the USDA Inspector General;
- cause and induce that person to alter, destroy, mutilate and conceal an object with
intent to impair the object's integrity or availability for use in such official
proceeding; and
- hinder, delay and prevent the communication to law enforcement officers of the United
States, that is, Special Agents of the USDA Inspector General, information relating to the
commission and possible commission of Federal offenses by defendant ESPY.
(In violation of 18 United States Code §§ 1512(b)(2)(A)
and (B); 1512(b)(3) and 2)
COUNT THIRTY-SIX
FALSE STATEMENT
- Paragraphs 1 through 14 of this Indictment are realleged and incorporated by reference
as though fully set forth herein.
- On or about June 1, 1994, in the District of Columbia, defendant ESPY knowingly and
willfully made material false, fictitious and fraudulent statements and representations to
a department and agency of the United States, that is the FBI, in a matter within its
jurisdiction, that is, an investigation of allegations of wrongdoing by defendant ESPY.
- It was material to the FBI to determine whether defendant ESPY received anything of
value from companies or individuals regulated by the USDA, including companies or
individuals defined as "prohibited sources."
- On or about June 1, 1994, in the District of Columbia, defendant ESPY, in response to
questions posed by Special Agents of the FBI, falsely, fictitiously and fraudulently
stated and represented that:
- he attended the NBA Championship Playoffs in Chicago in 1993 with his friend Richard
Douglas who provided the tickets, when in truth and fact, as defendant ESPY well knew,
defendant ESPY had directed a member of his staff to solicit the playoff basketball
tickets from the Chairman of Quaker Oats; she had in fact done so; and the Chairman of
Quaker Oats made two playoff basketball tickets available to defendant ESPY; and
- he could not recall any time when he accepted favors, benefits or gifts from any
organizations or companies other than Tyson Foods, when in truth and fact, as defendant
ESPY well knew, he had solicited and accepted favors, benefits and gifts from the
organizations and companies specified in paragraphs 9.a., and 9.c. - 9.f., above.
(In violation of 18 United States Code § 1001)
COUNT THIRTY-SEVEN
FALSE STATEMENT
- Paragraphs 1 through 14 are realleged and incorporated herein by reference as though
fully set forth herein.
- In the calendar year 1993, for purposes of the Ethics in Government Act, 5 U.S.C. App. 6
§§ 101 et seq., defendant ESPY received gifts and gratuities totaling approximately
$6,761, which are listed herein below:
|
DATE |
REPORTABLE GIFT |
SOURCE |
VALUE |
(1) |
1/18/93 |
Seat at Presidential
Inaugural Dinner |
Tyson Foods |
$ 1,500 |
(2) |
3/14/93 |
Luggage |
Sun Diamond |
$ 2,427 |
(3) |
5/15/93 |
Entertainment at TMDC |
Tyson Foods |
$ 500 |
(4) |
9/11/93 |
Limousines in New York |
Sun Diamond |
$ 123 |
(5) |
9/11-12/93 |
U.S. Open Tennis Ticket |
Sun Diamond |
$ 2,100 |
(6) |
11/10/93 |
Ticket to Washington
Bullets-New York Knicks
NBA Game |
Sun Diamond |
$ 111 |
- In addition, in the spring of 1993, defendant ESPY received as a gift an inscribed
hand-colored monotype entitled "Spring Light" from artist William Dunlap with a
value of approximately $2,800.
- It was material pursuant to the Ethics in Government Act that defendant ESPY report all
sources of gifts so that those having responsibility for the review of reports filed
pursuant to the Act could make an informed judgment about defendant ESPY's compliance with
applicable conflict of interest laws and standards of conduct regulations.
- On or about June 13, 1994, in the District of Columbia, defendant ESPY, knowingly and
willfully, in a matter within the jurisdiction of the USDA, a department of the United
States, falsified, concealed, and covered up by trick, scheme, and device material facts
and made false, fictitious and fraudulent statements and representations, and made and
used a false writing and document knowing the same to contain false, fictitious and
fraudulent statements and entries, in that defendant ESPY, as required by law, prepared,
signed and submitted to the USDA a Public Financial Disclosure Report, SF-278 (covering
the calendar year 1993), on which he certified that the statements made were "true,
complete and correct" to the best of his knowledge and belief. In truth and fact, as
defendant ESPY well knew, said Public Financial Disclosure Report failed to disclose the
receipt of approximately $9,561 on Schedule B, Part II.
(In violation of
18 United States Code §§ 1001 and 2)
COUNT THIRTY-EIGHT
FALSE STATEMENT
- Paragraphs 1 through 14 are realleged and incorporated herein by reference.
- In the calendar year 1994, for purposes of the Ethics in Government Act, 5 U.S.C. App. 6
§§ 101 et seq., defendant ESPY received gifts and gratuities totaling approximately
$3,191, which are listed herein below:
|
DATE |
REPORTABLE GIFT |
SOURCE |
VALUE |
(1) |
1/15-16/94 |
Limousines and Parking
Charges in Dallas, TX |
Tyson Foods |
$ 484 |
(2) |
1/30/94 |
Super Bowl Ticket |
Oglethorpe Power/EOP/
Smith Barney |
$2,200 |
(3) |
1/30/94 |
Super Bowl Tickets |
Fernbank |
$ 507 |
|