The U.S. Attorney’s Office District
of New Jersey released the below information:
PHILADELPHIA – A federal
grand jury today returned a 23-count indictment charging Philadelphia District
Attorney Rufus Seth Williams with bribery, extortion, and honest services wire
fraud in connection with tens of thousands of dollars’ worth of concealed
bribes that he received from two business owners in exchange for his agreement
to perform official acts. The indictment also charges Williams with defrauding
a nursing home and family friends of money earmarked for a family member’s
care.
The charges were announced
today by Acting New Jersey U.S. Attorney William E. Fitzpatrick, along with FBI
Special Agent in Charge Michael Harpster, Philadelphia Division; Acting Special
Agent in Charge Gregory Floyd of IRS-Criminal Investigation, Philadelphia
Office; and Special Agent in Charge Marlon V. Miller of U.S. Immigration and
Customs Enforcement’s Homeland Security Investigations (HSI) Philadelphia.
Williams, 50, of
Philadelphia, is charged with 10 counts of travel and use of interstate
facilities to promote and facilitate bribery contrary to Pennsylvania law (the
“Travel Act counts”), two counts of Hobbs Act extortion under color of official
right, five counts of honest services wire fraud, and six counts of wire fraud.
He will be arraigned in U.S. District Court in Philadelphia on a date to be
determined.
“The indictment alleges that
as District Attorney, Mr. Williams compromised himself and his elected office
by standing ready to help those who were willing to pay him with money, trips,
and cars,” Acting U.S. Attorney William E. Fitzpatrick said. “Mr. Williams’
alleged willingness to compromise his position of public trust in exchange for
private financial gain is all the more unfortunate given that he was elected to
protect the interests of the people of Philadelphia as their chief law
enforcement officer.”
“The alleged misconduct, as
specifically laid out in this indictment, is brazen and wide-ranging, as is the
idea that a District Attorney would so cavalierly trade on elected office for
financial gain,” FBI Special Agent in Charge Harpster said. “The immense
authority vested to law enforcement has to be kept in check, and that requires
decision-makers and leaders with a steady ethical compass. When elected or
appointed officials stray from their sworn oaths, they must be held
accountable. Combating public corruption remains the FBI's top criminal
priority."
According to the indictment:
From July 2010 to July 2015,
Williams solicited and accepted a stream of bribes from two business owners in
exchange for Williams performing and agreeing to perform official acts for the
business owners and their associates. In order to conceal these illegal
arrangements, Williams filed false and misleading personal financial statements
for the years 2012 through 2015, which intentionally omitted references to the
valuable items that Williams received from the business owners during those
years. After Williams learned of the federal investigation, he amended those
financial disclosure statements to list many of the items listed in the
indictment, excluding a pre-owned 1997 Jaguar he received in June 2013.
The Unlawful Arrangement with
Business Owner #1
From July 2010 through May
2015, Williams allegedly solicited and accepted a number of valuable items from
an individual identified in the indictment as “Business Owner #1,” including an
all-inclusive vacation to Punta Cana worth $6,381, a custom sofa worth $3,212,
a $502 dinner at a Philadelphia restaurant, a $7,000 check, approximately
$2,000 in cash, a Louis Vuitton tie worth $205, an iPad worth approximately
$300, a Burberry watch, and a Burberry purse for Williams’ girlfriend.
In exchange, Williams agreed
to help Business Owner #1 with security screenings when Business Owner #1
returned from foreign travel. On numerous occasions, Williams contacted a
Philadelphia police official in order to pressure and advise the police
official to assist Business Owner #1 with those border encounters. On March 15,
2013, Williams met with the police official and Business Owner #1 and asked the
police official to help Business Owner #1 avoid secondary screening. That same
day, Williams accepted a $7,000 check from Business Owner #1. Williams also
repeatedly offered to write an official letter, under his authority as the
District Attorney, on behalf of Business Owner #1 to pressure and advise the
police official to assist Business Owner #1 with the border encounters.
Williams agreed to assist
with criminal charges brought by the Philadelphia District Attorney’s Office
against Business Owner #1’s associate, an individual identified in the
indictment as “Person #1.” Between Feb. 1, 2012, and Feb. 5, 2012 – while on
the Punta Cana vacation paid for by Business Owner #1 – Business Owner #1 asked
Williams to help with Person #1’s charges, and Williams agreed. On Feb. 8,
2012, just days after returning from Punta Cana, Williams received a text
message from Business Owner #1 listing the docket number and hearing date for
Person #1’s case. The text message stated that Person #1 would “take any
punishment” but “just doesn’t wanna do jail!” Williams responded with a text
message stating: “I will look into it.” Moments later, Williams asked about a
second anticipated trip to Punta Cana paid for by Business Owner #1 and stated
“I am merely a thankful beggar and don’t want to overstep my bounds in
asking...but we will gladly go.”
When Business Owner #1 sent a
text message in September 2012 again asking Williams to assist Person #1,
Williams responded with text messages saying, among other things, “It seems
like he has the possibility of having it thrown out or continued ... if it gets
continued I will then ask for the file and see what can be done to make it a
county sentence...”
The Unlawful Arrangement with
Business Owner #2
From March 2012 through July
2015, Williams solicited and accepted from a Philadelphia bar owner identified
in the indictment as “Business Owner #2” approximately 16 round-trip airline
tickets to Florida, San Diego, and Las Vegas for himself, his girlfriend and
members of his family. Williams also solicited and accepted from Business Owner
#2 a 1997 Jaguar XK8 convertible and at least $900 in cash.
In return for the benefits
that he received from Business Owner #2, Williams appointed Business Owner #2
as Special Advisor to the Philadelphia District Attorney’s office in November
2012, including issuing an official badge, writing an official letter of
appointment, and giving certain assignments to Business Owner #2 as Special
Advisor. At the time, Business Owner #2 was on federal probation resulting from
a June 2010 federal tax conviction.
In May 2013, Business Owner
#2 requested that Williams write an official letter, as the Philadelphia
District Attorney, acknowledging Business Owner #2’s appointment as Special
Advisor to his office. On May 10, 2013, Williams provided the letter to Business
Owner #2. In June 2013, Williams accepted the Jaguar from Business Owner #2.
On June 2, 2014, Williams
issued a second official letter to the California Department of Alcoholic
Beverage Control in order to influence a then-pending hearing to revoke or suspend
Business Owner #2’s California liquor license.
In July 2015, Williams
obtained a police accident report at Business Owner #2’s request. During this
time, Williams sent text messages to Business Owner #2 saying, among other
things, “I wish I could help more,” “Can I be a greeter or celebrity bartender
to work off my debt…?” and “…I was serious about just doing whatever I can to
help you guys!”
The Fraud on the Nursing Home
and Family Friends
From February 2012 through
November 2013, Williams allegedly diverted a relative’s pension and Social
Security payments to pay for his own personal expenses instead of applying them
to the relative’s nursing home costs, as was his obligation under agreements
with the nursing home. Williams also falsely told a nursing home employee his
relative spent the pension and Social Security payments. In addition, after
accepting $10,000 from friends of his relative intended to cover expenses for
the relative’s nursing home care, Williams spent the money on his personal expenses
instead.
“Rooting out public
corruption remains one of the IRS-Criminal Investigation’s highest priorities,”
IRS Acting Special Agent in Charge Gregory Floyd said. “Today’s indictment
underscores our commitment to work in a collaborative effort to promote honest
and ethical government at all levels and to prosecute those who allegedly
violated the public’s trust.”
“Homeland Security
Investigations will continue to work with our law enforcement partners to bring
to justice public officials who betray the trust of the community by engaging
in unscrupulous behavior,” Marlon V. Miller, special agent in charge of HSI
Philadelphia, said. “The public places an enormous amount of trust in elected
officers, as such, they should be held accountable to a higher standard of
conduct. HSI is pleased with the results of this criminal investigation and the
collaborative efforts between our agency and our counterparts at the FBI and
IRS.”
Each of the Travel Act counts
is punishable by a maximum potential penalty of five years in prison. The Hobbs
Act extortion under color of official right and the wire fraud charges are
punishable by a maximum potential penalty of 20 years in prison. Each count
carries a potential fine of $250,000 or twice the gross gain or loss from the
offense. The indictment also seeks forfeiture of a total of $54,466,
representing the sum of $34,146 worth of bribe proceeds and $20,320 worth of
fraud proceeds.
Acting U.S. Attorney
Fitzpatrick credited special agents of the FBI, under the direction of Special
Agent in Charge Harpster; special agents of IRS-Criminal Investigation, under
the direction of Acting Special Agent in Charge Floyd; and special agents of
the HSI Philadelphia, under the direction of Special Agent in Charge Miller,
with the investigation leading to today’s indictment. He also thanked the U.S.
Department of Health and Human Services-Office of Inspector General, under the
direction of Special Agent in Charge Nick DiGiulio, for its participation in
the investigation.
The U.S. Attorney in the
Eastern District of Pennsylvania recused his office from the investigation
involving the Philadelphia District Attorney’s Office, and the matter was
assigned to the U.S. Attorney’s Office for the District of New Jersey. Two
prosecutors from the Eastern District of Pennsylvania office were assigned to
the case, subject to the supervision of prosecutors in the New Jersey office.
The government is represented
by Deputy Chief Eric W. Moran of the U.S. Attorney’s Office Criminal Division
in Newark and Chief of Appeals Robert A. Zauzmer and Assistant U.S. Attorney
Vineet Gauri of the U.S. Attorney’s Office in Philadelphia.
The charges and allegations
contained in the indictment are merely accusations, and the defendant is
considered innocent unless and until proven guilty.
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