Thursday, January 18, 2018
Politics

Jesse Jackson Jr., wife to plead guilty over use of funds

WASHINGTON — In a spectacular fall from political prominence, former U.S. Rep. Jesse Jackson Jr. and his wife agreed Friday to plead guilty to federal charges growing out of what prosecutors said was a scheme to use $750,000 in campaign funds for lavish personal expenses, including a $43,000 gold watch and furs.

Federal prosecutors filed one charge of conspiracy against the former Chicago congressman and charged his ex-alderman wife, Sandra, with one count of filing false joint federal income tax returns for the years 2006 through 2011 that knowingly understated the income the couple received. Both agreed to plead guilty in deals with federal prosecutors.

Both face maximum penalties of several years in prison; he faces hundreds of thousands of dollars in fines and forfeitures.

The son of a famed civil rights leader, Jackson, a Democrat, entered Congress in 1995 and resigned last November. Sandi, as she's known, was a Chicago alderman, but resigned last month amid the federal investigation.

Jackson, 47, used campaign money to buy such things as a $43,350 gold-plated men's Rolex watch and spent $9,587.64 on children's furniture, according to court papers filed in the case. His wife spent $5,150 on fur capes and parkas, the document said, including a black and red cashmere cape for $1,500 and a mink reversible parka for $1,200.

"I offer no excuses for my conduct, and I fully accept my responsibility for the improper decisions and mistakes I have made," the ex-congressman said in a written statement released by his attorneys. "I want to offer my sincerest apologies . . . for my errors in judgment, and while my journey is not yet complete, it is my hope that I am remembered for things that I did right."

The government said, "Defendant Jesse L. Jackson Jr., willingly and knowingly, used approximately $750,000 from the campaign's accounts for personal expenses" that benefited him and his co-conspirator, who was not named in the one-count criminal information filed in the case.

The prosecutors' court filing said that upon conviction, Jackson must forfeit $750,000, plus tens of thousands of dollars' worth of memorabilia items and furs. The memorabilia includes a football signed by U.S. presidents, a Michael Jackson and Eddie Van Halen guitar, a Michael Jackson fedora, Martin Luther King Jr. memorabilia, Malcolm X memorabilia, Jimi Hendrix memorabilia and Bruce Lee memorabilia — all from a company called Antiquities of Nevada.

The conspiracy charge carries a maximum statutory penalty of up to five years in prison, a fine of up to $250,000, and other penalties.

Tom Kirsch, an attorney for Jackson's wife, said she has signed a plea agreement with federal prosecutors and would plead guilty to one tax count. The charge against Sandi Jackson, 49, carries a maximum of three-year prison sentence. But Kirsch says the agreement "does not contemplate a sentence of that length."

The court papers said that Jackson filed false financial reports with the U.S. House of Representatives in an attempt to conceal his and his wife's conversion of campaign funds for their personal benefit. According the government's court papers:

• Jackson and his wife carried out the scheme by using credit cards issued to Jackson's re-election campaigns to pay personal credit card bills for $582,772.58 in purchases by Jackson. Jackson provided his wife and a long-time campaign treasurer $112,150.39, solely for having the two carry out transactions that personally benefited Jackson.

• In a false filing with the House, the owner of an unidentified Alabama-based company issued a $25,000 check to pay down a balance on one of Jackson's personal credit cards. Jackson's financial disclosure statement with the House omitted the payment made on Jackson's behalf.

• In a false campaign filing with the Federal Election Commission, an unidentified treasurer for Jackson's campaigns reported that the campaign spent $1,553.09 at a Chicago Museum for "room rental-fundraiser." In fact, said the court papers, Jackson spent those funds to buy porcelain collector's items.

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