Opinion ID: 728163
Heading Depth: 2
Heading Rank: 6

Heading: Jackson's Interest is Discovered

Text: 26 Shortly after the vote was blocked, the City Attorney and Mayor Jackson confronted Jackson about his interests. Jackson denied any financial connection with D. Paradies. On March 8, 1992, Jackson resigned his position, stating that I now find that a loan which I extended to a sub-concessionaire at the airport some time ago, and which has long been repaid, has become an issue of concern. 12 27 Soon thereafter, D. Paradies wrote a letter to Max Walker, the acting Commissioner of Aviation, stating that he was 28 surprised and distressed to learn of Mr. Ira Jackson's alleged interest in and receipt of funds from Hartsfield Concessions, Inc.... At all times, Paradies Midfield has dealt with Hartsfield Concessions, Inc. through Mr. Mack Wilbourn, who represented himself to be the sole owner of Hartsfield Concessions, Inc.... Paradies is unaware of any alleged interest of Mr. Jackson in Hartsfield Concessions, Inc. 29 See Govt. Exhibit 106. The government claims that when the newspapers learned of the Goldston/Maudestine Simmons transaction, D. Paradies claimed that he did not know that Maudestine Simmons was Jackson's wife, even though he had hosted their wedding reception and Mimi was his own wife's close friend.G. Direct Payoffs to City Council Members 30 The other scheme involved D. Paradies and his agreement to make corrupt payments with Echols to Atlanta City Council Members, including Jackson. Echols testified at trial that he and D. Paradies had been close for 22 years. He testified that he and D. Paradies had a long-standing agreement that Echols would make payments to certain council members, and that D. Paradies would reimburse him. 31 Echols testified that he made routine payments to Jackson, Buddy Fowlkes, and less frequent payments to Marvin Arrington, President of the City Council. Echols explained that between mid-1980 through 1992 he would meet Jackson for breakfast on Wednesday mornings at the Castlegate Hotel. Echols always paid for breakfast, and afterwards would pay Jackson several hundred dollars folded in a handshake. He had a similar routine with Fowlkes on Thursday mornings. Further, Echols paid for Fowlkes to fly back from vacation to vote for Amendment Six. Additionally, Echols paid for Fowlkes and his family to take a Florida vacation. As for Arrington, Echols paid him once or twice every two months, usually at breakfast, depending on what was before the Council. On two occasions, Echols paid Arrington to appoint Buddy Fowlkes to Chairman of the Transportation Committee. Echols paid $5,000 on one occasion, and $6,000 on another. 32 In 1987 and in 1990, D. Paradies allegedly reimbursed Echols for the payoffs. In 1987, D. Paradies paid Echols for consulting fees in three payments of $10,000 each. Echols did not do any counselling for this money. Although consulting agreements were drawn up, Echols told Ron Wright that the money was not for consulting, but was for political payoffs. 33 In 1990, soon after Echols had flown Fowlkes back to vote for Amendment Six, D. Paradies reimbursed Echols in three payments for $1,666, $333, and $2,000. That time, no consulting agreements were drawn up; three invoices were sent to account for these payments. 34 The evidence also showed that Jackson accepted a $5,000 payoff from Echols and another subconcessionaire, Dave Gammill. In December of 1988, Gammill allegedly brought $25,000 in cash to Echols, who distributed the money to Jackson, Arrington, Fowlkes, and others. H. Proceedings Below 35 On July 9, 1993, a federal grand jury returned a 133-count indictment charging the defendants with various offenses. Counts 1-83 charged all the defendants with mail fraud (one count for each check) in violation of 18 U.S.C. §§ 1341, 1346, and 2 based upon the scheme involving Jackson's interest in Paradies Midfield. Count 84 charged defendant Wilbourn, who was acquitted, of witness tampering in violation of 18 U.S.C. § 1512(b)(1). Count 85 charged D. Paradies with conspiring with Echols to violate 18 U.S.C. § 666 by making corrupt payments to public officials in violation of 18 U.S.C. § 371. Counts 86-128 charged Jackson with the receipt of corrupt payments from Echols in violation of 18 U.S.C. § 666. Counts 129-133 charged Jackson with subscribing to false income tax returns underreporting his income in violation of 26 U.S.C. § 7206(1). 36 At trial, Jackson denied the charges against him, maintaining that his dealings with Wilbourn, D. Paradies, and others were neither illegal nor fraudulent. He claimed he acted upon the advice of his attorney and his accountant. D. Paradies and his companies claimed that under their concession contracts at the Atlanta airport under Atlanta ordinances they were required to enter into minority participation agreements with persons such as Wilbourn and others in their business enterprises. They denied knowingly doing anything unethical, illegal, or fraudulent, or having knowledge of Jackson's allegedly fraudulent activity and conflicts of interest. D. Paradies and his companies particularly contended that they only made contractually obligatory payments of dividends and fees to Jackson and others. 37 The jury was sequestered, and the case was tried for three straight weeks, including weekends. After six hours of deliberations, the jury returned a verdict of guilty for all defendants on all counts, except for Jackson's acquittal as to Count 129, and Wilbourn's acquittal. Jackson received 42 months in prison, a $7,500 fine and a special assessment of $6,500. Paradies received 33 months in prison, a $7,500 fine and a special assessment of $4,200. The Paradies Shops was fined $1,500,000 and assessed $16,600. Paradies Midfield was assessed $16,600. Jackson and D. Paradies remain free on appeal bonds. The fine imposed on the Paradies Shops was stayed pending appeal.