Former Congressional Chief of Staff Pleads Guilty to Honest Services Fraud Conspiracy

07 Dec, 2007, 00:00 ET from U.S. Department of Justice

    WASHINGTON, Dec. 7 /PRNewswire-USNewswire/ -- Russell James Caso, Jr.,
 34, of Rockville, Md., a former Chief of Staff to a Member of the U.S.
 House of Representatives (Representative A), pleaded guilty today to
 conspiracy to commit honest services wire fraud, the Justice Department
 announced today.
 
 
 
     Caso's guilty plea was taken before U.S. District Judge Henry H.
 Kennedy, Jr. Caso faces up to five years in prison and a fine of $250,000.
 A sentencing date has not been set.
 
 
 
     According to the evidence presented by the government at today's plea
 hearing, Caso served as a Chief of Staff from 2005 until 2007. His guilty
 plea stems from his relationship with a firm (Firm A) that had a stated
 mission of helping American businesses to operate in Russia and
 facilitating the flow of trade between the United States and Russia.
 
 
 
     Firm A sought to submit its proposals to various Executive Branch
 agencies seeking federal funding for these efforts. Firm A's General
 Secretary met frequently with and sought official action from Caso,
 Representative A, and Representative A's staff, including their assistance
 in obtaining funding for the proposals.
 
 
 
     In or about April and May 2005, Firm A's General Secretary paid Caso's
 wife $1500 to edit written drafts of its proposals.
 
 
 
     After being paid for editing the proposals, Caso's wife received and
 deposited three more checks from Firm A totaling $17,500: a check dated May
 27, 2005, in the amount of $2,500; a check dated July 21, 2005, in the
 amount of $10,000; and a check dated Aug. 25, 2005, in the amount of
 $5,000. Caso knew that his wife did very little additional work in return
 for this money, and that the market value of the additional work that his
 wife ultimately performed for Firm A was far below $17,500.
 
 
 
     In the middle of 2005, roughly contemporaneous with the payments that
 his wife was receiving from Firm A, Caso organized meetings in which
 Representative A and Caso made presentations to various Executive Branch
 agencies, including to high-level officials in the Departments of State and
 Energy and the National Security Council. Representative A and Caso argued
 that Firm A's proposals should be federally funded.
 
 
 
     As Representative A's Chief of Staff, Caso was required to submit
 annual financial disclosure statements, listing, among other things, the
 source of any income earned by his wife. On the disclosure statement for
 2005, Caso intentionally failed to disclose that his wife received any
 payments from Firm A, even though he knew that he was required to do so.
 One reason for this non-disclosure was that Caso knew that his wife's
 financial relationship with Firm A created a personal conflict of interest
 because Firm A was seeking his help to obtain federal funding.
 
 
 
     Caso is cooperating with the Justice Department's ongoing
 investigation.
 
 
 
     In announcing today's guilty plea, U.S. Attorney Jeffrey A. Taylor, the
 Justice Department, Federal Bureau of Investigation, and Internal Revenue
 Service thanked FBI Special Agents Robert Schwinger, Julie Shields, and
 Michelle Rankin, and IRS Special Agent Randolph Gregory for the outstanding
 work that they performed on the case. They also praised the efforts of the
 prosecutors assigned to the case: Assistant U.S. Attorney Howard Sklamberg
 and former Assistant U.S. Attorney Jeannie Rhee, DOJ Trial Attorneys
 Jennifer Shasky Calvery and Gregory C.J. Lisa of the Justice Department's
 Organized Crime & Racketeering Section, Trial Attorney Armando O. Bonilla
 and former Trial Attorney Natashia Tidwell of the Justice Department's
 Public Integrity Section.
 
 
 
 
 
 
 

SOURCE U.S. Department of Justice
    WASHINGTON, Dec. 7 /PRNewswire-USNewswire/ -- Russell James Caso, Jr.,
 34, of Rockville, Md., a former Chief of Staff to a Member of the U.S.
 House of Representatives (Representative A), pleaded guilty today to
 conspiracy to commit honest services wire fraud, the Justice Department
 announced today.
 
 
 
     Caso's guilty plea was taken before U.S. District Judge Henry H.
 Kennedy, Jr. Caso faces up to five years in prison and a fine of $250,000.
 A sentencing date has not been set.
 
 
 
     According to the evidence presented by the government at today's plea
 hearing, Caso served as a Chief of Staff from 2005 until 2007. His guilty
 plea stems from his relationship with a firm (Firm A) that had a stated
 mission of helping American businesses to operate in Russia and
 facilitating the flow of trade between the United States and Russia.
 
 
 
     Firm A sought to submit its proposals to various Executive Branch
 agencies seeking federal funding for these efforts. Firm A's General
 Secretary met frequently with and sought official action from Caso,
 Representative A, and Representative A's staff, including their assistance
 in obtaining funding for the proposals.
 
 
 
     In or about April and May 2005, Firm A's General Secretary paid Caso's
 wife $1500 to edit written drafts of its proposals.
 
 
 
     After being paid for editing the proposals, Caso's wife received and
 deposited three more checks from Firm A totaling $17,500: a check dated May
 27, 2005, in the amount of $2,500; a check dated July 21, 2005, in the
 amount of $10,000; and a check dated Aug. 25, 2005, in the amount of
 $5,000. Caso knew that his wife did very little additional work in return
 for this money, and that the market value of the additional work that his
 wife ultimately performed for Firm A was far below $17,500.
 
 
 
     In the middle of 2005, roughly contemporaneous with the payments that
 his wife was receiving from Firm A, Caso organized meetings in which
 Representative A and Caso made presentations to various Executive Branch
 agencies, including to high-level officials in the Departments of State and
 Energy and the National Security Council. Representative A and Caso argued
 that Firm A's proposals should be federally funded.
 
 
 
     As Representative A's Chief of Staff, Caso was required to submit
 annual financial disclosure statements, listing, among other things, the
 source of any income earned by his wife. On the disclosure statement for
 2005, Caso intentionally failed to disclose that his wife received any
 payments from Firm A, even though he knew that he was required to do so.
 One reason for this non-disclosure was that Caso knew that his wife's
 financial relationship with Firm A created a personal conflict of interest
 because Firm A was seeking his help to obtain federal funding.
 
 
 
     Caso is cooperating with the Justice Department's ongoing
 investigation.
 
 
 
     In announcing today's guilty plea, U.S. Attorney Jeffrey A. Taylor, the
 Justice Department, Federal Bureau of Investigation, and Internal Revenue
 Service thanked FBI Special Agents Robert Schwinger, Julie Shields, and
 Michelle Rankin, and IRS Special Agent Randolph Gregory for the outstanding
 work that they performed on the case. They also praised the efforts of the
 prosecutors assigned to the case: Assistant U.S. Attorney Howard Sklamberg
 and former Assistant U.S. Attorney Jeannie Rhee, DOJ Trial Attorneys
 Jennifer Shasky Calvery and Gregory C.J. Lisa of the Justice Department's
 Organized Crime & Racketeering Section, Trial Attorney Armando O. Bonilla
 and former Trial Attorney Natashia Tidwell of the Justice Department's
 Public Integrity Section.
 
 
 
 
 
 
 SOURCE U.S. Department of Justice