Charlotte Mayor Patrick Cannon arrested on federal corruption charges......... Charlotte Mayor Patrick Cannon was arrested by FBI agents on Wednesday on allegations that he violated federal public corruption laws. A criminal complaint filed in U.S. District Court in the Western District of North Carolina charges Cannon with theft and bribery, wire fraud and extortion, accusing him of accepting bribes from undercover FBI agents on five separate occasions. According to the charging documents and affidavits filed by law enforcement, the FBI began investigating Cannon, a Democrat, in or about August 2010, after receiving a tip that he was potentially involved in illegal activities associated with his position as an elected official. The complaint and affidavit allege that during the course of that investigation, Cannon solicited and accepted money and things of value from undercover agents who were posing as commercial real estate developers and investors wishing to do business in Charlotte, in exchange for the use of his official positions as mayor, mayor pro tem and as a Charlotte City Council member. The documents allege that on Feb. 21, the most recent occasion, Cannon accepted $20,000 in cash in the mayor’s office. And the documents contend that between January 2013 and February 2014, Cannon accepted $48,000 in cash, airline tickets, a hotel room and use of a luxury apartment. In the criminal complaint, the FBI cites Cannon’s dealings with an unnamed “prominent local businessman.” The complaint states that Cannon alluded to an undercover agent that he had “assisted and intervened in a major project — using his official position — on behalf of (a) prominent local businessman.” An affidavit from FBI special agent Eric Davis states that Cannon accepted $6,000 in cash and an all-expense-paid trip to Las Vegas for him and his wife in July 2013. The purpose was to tell foreign investors about his ability to make projects get through regulatory process in Charlotte, the affidavit says. Cannon told undercover agents he would accept payments to his campaign account, prosecutors allege. Among other allegations outlined in the FBI agent’s affidavit: Cannon requested a key and access to an apartment in SouthPark for his personal use on two occasions in March 2013. Cannon was worried about the possible appearance of taking a bribe for accepting $12,500 from an undercover agent posing as a real estate investor who was worried about red tape in opening an uptown nightclub. Cannon assured the agent he would take care of city inspectors. Cannon solicited an investment in a business he was organizing. An FBI investigation found no evidence that the business was real. And despite several attempts by the agent to take back the money, Cannon never returned it. Cannon said he looked good “in an orange tie, but not an orange suit.” On July 19, Cannon accepted $10,000 payment after the foreign investors, who were undercover agents, agreed to invest $25 million in a Charlotte project Cannon agreed to help with. Cannon called a city zoning official in the presence of the agent regarding the nightclub. “That same day, Cannon again requested a key to the (undercover) apartment.” The undercover agent gave Cannon a key to the apartment, which leased for $2,100 per month, on Dec. 11, shortly after Cannon was inaugurated as mayor. Cannon then gave the undercover agent the name and contact information for a city department head, who would pay “special attention” to the undercover agent’s needs, Cannon said. Also according to court filings: A second undercover agent dealt with Cannon over possible investments along the gold streetcar line. In a meeting, Cannon agreed to work with the agent, who was posing as an investor, so that he could “time his purchase of real property along the Gold Line.” Cannon called the city manager in the presence of the agent to ask about the timing of construction on the line. Cannon also touted his ties to Gov. Pat McCrory because of a possible state role in funding the line. After meeting with an undercover agent posing as a “skeptical investor” and touting his ability to get deals done, Cannon was told by another agent that his assurances paved the way for an investment in Charlotte worth $125 million. Cannon said he had told his wife, Treena, that “she has a point” in the deal, which the FBI says meant a payment of 1 percent of the investment, or $1.25 million. Instead, Cannon accepted a payment of $20,000 in cash on Feb. 21. The agent said the payment was a “token of thank you for today” and the rest would come after the investor funds were received. Cannon told an undercover agent that an unnamed city official would be good to know. The FBI shields the official’s identity and gender, but quotes Cannon as saying the “city manager’s made (him/her) part of his executive team. (He/she) could be a city manager but (he/she) doesn’t want to. (He/she) wants to continue to do planning and all that kind of stuff.” When the undercover agent says the city employee sounds like a good ally to have, Cannon responded: “Oh (he/she)’s gonna be good. You’ve gotta have (him/her). And I’ll need to just kind of make sure I’m positioning (him/her) in case you need different things.” In a reference to a local real estate person, Cannon told an undercover agent about an abundance of real estate opportunities in Charlotte and mentioned one developer in particular. The FBI deleted the identification of the developer. “I can connect you with (prominent Charlotte developer), who owns a lot of dirt and real estate around that area. He owns a company called (prominent Charlotte commercial real estate company).” Cannon had his initial court appearance today and has been released on bond, pending indictment, according to a statement from the U.S. Justice Department. If convicted, he faces a maximum sentence of 10 years in prison and a $250,000 fine for the theft and bribery charge; up to 20 years in prison and a $1 million fine for the fraud charge; and up to 20 years in prison and a $250,000 fine for the extortion charge. The case is being prosecuted by Assistant United States Attorney Michael E. Savage of the U.S. Attorney’s Office for the Western District of North Carolina. In a brief press conference, Mayor Pro Tem Michael Barnes said the city staff and council members learned of the charges when a warrant was served at Cannons offices at noon on Wednesday. The news came as a complete surprise, he said. Barnes said the city is cooperating with federal officials on their ongoing investigation. Asked whether Cannon would be permitted to remain in office, Barnes replied that state law prohibits the council from removing the mayor from office. Cannon was interviewed briefly by WCNC reporter Rad Berky as the mayor left the federal courthouse Wednesday afternoon. He responded to a handful of questions, declining to discuss the charges, as he walked away. “There’s not too much I can say at this point,” he said. When asked what happened, he said, “At this point, there is nothing to respond to at this juncture.” When asked what he would say to the voters, he responded, “There’s nothing too much I can say at this point. When I’m able, I’ll certainly touch base back with you.” Reaction: Gov. Pat McCrory, local officials react to mayors arrest The U.S. attorneys news release about the arrest is available here. A pdf of the federal complaint against Cannon is available here. Jen Wilson coordinates the Charlotte Business Journals online operations and social-media efforts, chronicles local events for CBJ Seen and takes photographs. Related links: Politics, Crime Promoted by TaboolaWe Recommend Patrick Cannon reaction: Gov. Pat McCrory, local officials react to mayors … City Council, county manager react to Charlotte mayor’s arrest Lennar plans single-family homes at Pappas Properties’ Berewick exp… Can wonks help bridge Charlotte transits funding gap? From Around The WEB Johnny Harris on whats next at Quail Hollow Amelies facing wage-theft complaint from ex-employee? Charlotte Golf Links owners study development options Chicken Salad Chick to open south Charlotte location NBA: No Charlotte all-star game without arena renovations
Posted on: Wed, 26 Mar 2014 22:48:40 +0000
Trending Topics
Recently Viewed Topics
© 2015