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THE
FBI AND PAGE COUNTY VIRGINIA
Federal
authorities routinely investigate and prosecute state and
local government corruption and various white collar
crimes. Among the FBI’s top ten priorities for 2003
only terrorism, espionage and cyber-based attacks ranked
higher than corruption.
The FBI’s authority
to deal with corruption is broadly based. Their
jurisdiction extends to any public official who trades
integrity for personal gain.
In 2001, after state and
local law enforcement authorities failed to act on
evidence of fraud and embezzlement we gave the FBI our
evidence of corruption and our documents on associated
white collar crimes committed by Page County officials.
We were received cooly and not encouraged to return.
The others at our
meeting had never before dealt with Federal special
agents. I apologized to the others for the reception we
got and assured them that this meeting was not typical of
my previous experiences as a Federal officer and
consultant. But I agreed that the lack of interest shown
did not warrant a return visit.
We never returned but we
did send information periodically that was rarely if ever
acknowledged.
From the information we
sent FBI agents knew
millions of dollars in tipping fees collected by
Tellurian at the Stanley landfill disappeared. FBI agents
may not know who got how much or even exactly how much
money was collected at Stanley during 1993-1995. But they
knew that under its contract with Page County Mike
Perkins and Tellurian Inc. had no right to collect any
money at all; let alone make off with it.
It is hardly conceivable
that Page County officials got nothing in return for
letting Mike Perkins and Tellurian Inc. make millions
illegally.
But for the sake of
argument let’s suppose no County Official got a
penny for letting these millions disappear; therefore
Federal prosecutors might have difficulty making a
corruption rap stick.
The prosecuting
alternative here is obvious. Money laundering is a
Federal crime and the tipping fee millions were laundered
by Page County by not being shown as receivable income in
the County’s financial records.
And the $200,000 loan to
Mike Perkins was laundered as an expense paid to a law
firm. Such obvious frauds no FBI Agent could mistake.
Page County Citizens who
ask, “when are they going to do something”
deserve an answer. Unpunished crimes encourage more crime.
Payoffs from criminals
to public officials are made in secretive and disguised
ways. Citizens do not have the means to uncover insider
trading, rigged stock investments, phony loans and
illusory purchases. But the FBI specializes in finding
hidden money trails.
It would not be
difficult for federal investigators to dscover how many
Page County officials got rich from hidden payoffs.
“Fortunate
fires” and money-making bankruptcies are other ways
to pay off corrupt officials, as are deals for future
employment and under-the-table dollars for election
campaigns. And there are even more subtle ways to make
payoffs without leaving a money trail. Favors for friends
and relatives, free sex and free transportation to
playgrounds around the world are just a few of them.
Corrupt payoffs can be
surprisingly venial.\. For example, In Connecticut
recently he FBI found state contractors renovated the
Governor’s aging vacation cottage.
Though corruption is
given high priority by the FBI nationally Page County
corruption and garbage-related corruption throughout
Virginia thrives. Critics say the FBI’s corruption
ivestigations are for insignificant crimes like misusing
local government credit cards. They compare this to
Hennessy’s prosecution of the Bread Man.
Credit card prosecutions
may look good in FBI statistics but they trivialize the
Federal presence needed to restore honest government in
Page County.
Assuming the FBI was
actively looking for a corruption money trail a Page
County woman called the Winchester FBI office to report
suspicious-looking money transfers involving two Page
County elected officials. More than a half million
dollars was moved in a single day. She felt rebuffed and
angry by the FBI’s disinterest and complained to me
about it.
I called the FBI Agent
with whom she spoke. He said the lady “must have
misunderstood” his response. I let it go at that.
Similar experiences
soured other local citizens toward the FBI which once
enjoyed high prestige in Page County. Honest citizens
believe the FBI should have clamped handcuffs on corrupt
officials long ago. It’s hard to disagree because
the FBI exells at investigating white collar crimes and
finding corruption’s money trails.
By standard definition,
money laundering means concealing illegal payments or
disguising them so they appear legitimate Laundering
money is a federal crime even if corruption is not
involved.
For three years the FBI
has known Page County Supervisors loaned Tellurian
President Mike Perkins $200,000 through a laundered check
disguised in County accounts as an “expense.”
The loan repayments were also laundered. They went into
the County’s books as “income.”
The loan was approved in
secret. As aresult the County’s auditors never
reported this fraudulent transaction.
To complete the money
laundering deception a false Tellurian invoice for $200,000
was placed in the County’s files. County
Administrator Wilson and Allen Louderback then claimed
the County’s $200,000 illegal loan was a payment to
Tellurian for getting the Battle Creek Landfill permit.
Like many lies told by
county officials to conceal corruption this one was
plainly visible to the FBI.
The FBI knew the
County‘s $200,000 check was dated March 16. 1994.
The permit for Battle creek was not obtained until
February 21, 1995. But the FBI never acted even when
Commonwealth’s Attorney Branscom said there was
understandable confusion as to whether the check was a
loan or a payment for the permit.
In fact, no permit
payment to Tellurian was due under the County’s
contract and none was ever paid. The FBI has the
documents proving this.
The Virginia State
Police Bureau of Criminal Investigation investigated the
Perkins loan but either failed to report the money was
laundered or Commonwealth’s Attorney Branscom just
ignored under Section 18.2-246.3 of the Virginia code
which says money laundering is punishable by up to forty
years in prison.
Federal investigators do
not normally ignore money laundering. Yet three years
after the Perkins loan was reported to the FBI no Federal
indictments have been announced. Perhaps there are
legitimate reasons; perhaps not.
Among those approving
the Perkins loan was Delegate Allen Louderback. As of
this writing he has been welcomed back to Virginia’s
General Assembly after another victorious election
campaign.
Mail fraud and Financial
Institution Fraud (FIF) are also Federal crimes. The
fraudulent compactor deal made by the Page County Board
of Supervisors with Tellurian Inc. was largely handled by
mail. And of course, the Financial Institution loaning
the money for the compactor was swindled because the
interest was fraudulently set at government rates. In
addition, a Federal Tax Form was falsified by Page County
officials.
I used the compactor
transaction as one clearly documented example of Federal
crimes when queried by Department of Justice officials
soon after The Corrupt County was published.
The FBI knows
Commonwealth’s Attorney John Hennessy convinced the
Special Grand Jury nothing could be done about frauds
associated with the compactor lease-purchase until state
tax authorities were heard from. If Henessy ntentionally
misled the jury by misrepresentations or ommissions it
would constitutes obstruction of justice, a Federal Crime.
It is also a Federal
crime for a Commonwealth’s Attorney to
“influence, delay or prevent court testimony.”
A review of the special grand jury tapes should quickly
show the FBI if Henessy obstructed justice by shepherding
the jurors to conclusions which were contrary to evidence
already in Hennessy’s possession.
Though Mr.
Hennessy’s behavior before the Special Grand Jury
was reported to federal authorities they never responded
to our correspondence or even acknowledged
receiving it. Mary Gay Whitehead’s follow-up
through Congressman Frank Wolf also produced no response.
Congressman Wolf’s
staff has a splendid reputation for client service.
Therefore it may be that Congressman Wolf was asked by
the Department of Justice to drop his inquiry. Some day
perhaps the answer to this puzzle will surface.
The FBI’s
corruption efforts in states such as Kentucky and
Mississippi are well-publicized. A single FBI
investigation of contract corruption in rural Mississippi
led to the conviction of 55 county supervisors; roughly
13% of all Supervisors in that State.
In rural Eastern
Kentucky Counties FBI investigations are the main
occupational hazards faced by Sheriffs. In one operation
the FBI arrested the corrupt Sheriffs of Lee, Wolfe,
Owsley and Breathitt Counties for protecting drug dealers
and extorting money from them.
In rural Mississippi and
Kentucky there is no big gap between the FBI’s
priorities and its performance in investigating
corruption. The contrasting FBI efforts over the past
three years in rural Page County speak for themselves.
Whether this is due to
the corporate presence of Marvin Bush is a question now
being debated. Another vexing question is why Governor
Warner keeps DEQ Director Burnley in office. Both
questions raise the troubling thought that
corruption’s grip on Page County is so powerful
because it is being sheltered from above.
RECOVERING
COUNTY FUNDS
Weary of waiting for
Federal action, Bradley Pollack decided to act on his own.
On November 5th 2003 he filed a case in Page County
Circuit Court to recover moneys illegally diverted from
Page County. Among those served in Pollack’s suit
was Stephen Frey, Marvin Bush’s fellow director in
Winston Partners.
To obtain legal standing
for his suit Pollack became a Page County taxpayer. No
Page County Official was willing to act as plaintiff for
money recovery. In legal terminology,
“standing” means that whoever brings a civil
action has a right to bring it because his legally
recognized interests have been injured or threatened.
Pollack believed he could prove case law and common law
gave taxpayers standing so he filed suit as a taxpayer.
I was among those shown
an early draft of Pollack’s suit. I voiced no
opinion on the legal technicalities of
“standing” but to the best of my knowledge, the
facts presented in Pollack’s suit (below) are
correct. Even if the court rules Pollack has no standing
to sue, the incoming Page County Board of Supervisors can
sue for recovery of the missing millions simply by
becoming the plaintiff.
--------------------------------------------------------------------------------------
IN THE CIRCUIT COURT FOR
THE COUNTY OF PAGE
Bradley Glenn Pollack,
Plaintiff,
v.
National Waste Services
of Virginia, Inc.
Serve:
Stephen W. Frey, Director
798 Sherlin Lane
Great Falls, VA 22066
FAIRFAX COUNTY
and
Olver Incorporated
Serve:
Robert M. Roberts,
Registered Agent
1116 South Main Street
Blacksburg, Virginia
24060
MONTGOMERY COUNTY,
Defendants.
BILL OF COMPLAINT
To the Honorable Judges
of Said Court:
Your plaintiff, Bradley
Glenn Pollack, respectfully represents:
1. Your plaintiff,
Bradley Glenn Pollack, is a taxpayer of the County of
Page, Virginia, and brings this action on behalf of
himself and others similarly situated to compel the
restitution of public funds which have been illegally
diverted and lodged in the hands of defendants who are
not entitled to the same, who have taken them with notice
of the wrongful diversion, and the Board of Supervisors
for the County of Page will not act or take the necessary
steps to have such funds restored.
2. On April 23, 1992,
the Page County Board of Supervisors awarded Tellurian,
Inc., now defendant National Waste Services of Virginia,
Inc., a contract to construct the Battle Creek Landfill
and operate it for twenty years.
3. On June 14, 1993,
Page County established by County Ordinance a commercial
tipping fee schedule for the Stanley Landfill, to become
effective on July 1, 1993, of $15 per ton.
4. Tellurian, Inc.
President Michael Perkins has stated under oath that
tipping fees were collected and owed to Page County. The
County has not received those fees from Tellurian, Inc.
or defendant National Waste Services of Virginia, Inc.
5. In his sworn
deposition of September 7, 1995, County Administrator
Wilson confirmed that Tellurian, Inc. paid no tipping
fees to Page County for waste brought in from outside
Page and Warren Counties and that roughly 100,000 tons of
such waste were brought to the landfill during Tellurian,
Inc.’s stewardship. At rates set by County Ordnance,
payments for 100,000 tons would amount to approximately $1,500,000
dollars in tipping fees due to Page County.
6. An August 26, 1993,
Contract says Page County was to collect the Warren
County fees and give them to Tellurian, Inc. The County
did not collect these fees from Warren County. Instead
Tellurian, Inc. improperly and illegally collected all
tipping fees, including those from Warren County.
7. A check from Karen
Perkins for $64,887 for December 1994 tipping fees was
received by Page County. The $64,887 received from Karen
Perkins was later illegally turned over to Tellurian, Inc.,
by the County.
8. Tellurian, Inc.,
turned over no tipping fees to Page County during the
entire time it ran the Stanley Landfill and imported
garbage from out-of-state.
9. During the latter
part of 1993 and most of 1994, five thousand tons or more
per day often went into the Stanley landfill instead of
the 250 tons per day reported on Tellurian‘s books.
Between one and forty million dollars are therefore due
to the County of Page in tipping fees alone.
10. To this day,
defendant National Waste Services of Virginia, Inc.,
continues to avoid paying all tipping fees owed to the
County of Page for its dumping at the Battle Creek
landfill.
11. The County’s
financial obligation for closing the Stanley Landfill was
initially zero dollars. The August 26, 1993, Agreement
obligated Tellurian, Inc., to close the Stanley Landfill
wholly at its own expense. Without explanation, it was
later set at $250,000 and Tellurian, Inc., was
responsible for any costs beyond that figure. An
estimated 1.4 million dollars in closing fees was paid to
defendant Olver Incorporated by the Supervisors, all
without any compliance whatsoever with the Virginia
Procurement Act. The duplicity of this was compounded
because Olver Incorporated was hired to protect the
county’s environmental interests against damage by
Tellurian, Inc. However John Olver was Chairman of the
Board of Olver Incorporated as well as President of
Tellurian, Inc. His wife owned 50% of Tellurian’s
stock. Furthermore, Tellurian, Inc. and Olver
Incorporated shared the same office address.
12. On February 22, 2000,
Engineering Consultant John McNair gave the Board of
Supervisors a confidential report showing that the costly
job of closing the Stanley landfill had been botched and
misrepresented by Olver Incorporated.
13. The County’s
permit for Battle Creek authorizes a maximum daily
tonnage of 250 tons of waste per day. Putting in more
tonnage than 250 tons per day is a Class One Misdemeanor
punishable by up to a year in prison for each day’s
violation. Defendant National Waste Services of Virginia,
Inc., began dumping up to 2,000 tons per day to increase
their profits by as much as $43,750 per day. It is
estimated that the illegal dumping at the landfill owned
by the County of Page over the past two years have
brought illegal profits and have unjustly enriched
defendant National Waste Services of Virginia, Inc., over
ten million dollars.
14. Defendants are
therefore indebted to the County for millions of dollars.
WHEREFORE, plaintiff
requests an accounting; a decree ordering the defendants
to pay the debts they owe to the County of Page, Virginia;
attorney fees; costs; and that such other and further and
general relief as the nature of the case may require and
to equity may seem meet is prayed for and may be granted.
--------------------------------------------------------------------------------------
Money recovery would
undo the losses brought by corruption and put the County
on a better fiscal footing. If the new Board of
Supervisors does not go after the millions owed to Page
County the 2003 elections for will have changed the
Board’s faces without changing its direction.
Corruption will remain as entrenched as ever.
---------------------------------------------------------------------------------------
Page County
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