Corruption Probe Brought To Light By Sailor Case May Be Wider Than Many Think

(3/19/08) The corruption probe brought to light by Rep. Ron Sailor's plea to money laundering charges may be wider than many think. InsiderAdvantageGeorgia has learned from a highly placed source in the legal community that at least one state legislator has“been wearing a wire for the past year” in an on-going and potentially widespread investigation of public corruption in Georgia.

This suggests that the federal government may have been involved in an investigation of corruption under the Gold Dome prior to the December, 2007 date suggested in data released Tuesday in connection with Sailor's plea. According to one source, the investigation may reach across both aisles of the House and potentially the Senate according to the source. We will update you as we are able.

Sailor pleaded guilty Tuesday and said he will resign from the Legislature.

Federal investigators said the case started as a drug money laundering investigation but evolved into what they described as "an active public corruption investigation." They said others who may be involved should understand they will fare better if they come forward rather than waiting for the FBI to come to them.

In the Legislature, top House Democrats responded with shock and sadness.

"Our credibility and trust is all we have, and it is sad when that trust is broken," said Rep. Calvin Smyre, chairman of the House Democratic Caucus. "This is an unfortunate matter where the public trust has been broken. There are honorable men and women in the House, and this should not be a reflection on all of them that serve..."

Speaker Glenn Richardson, a Republican, issued this statement: “I am disappointed in the bad decisions made by Representative Sailor. The House of Representatives does not condone his actions.”

Sailor has held office since 2001. He holds the District 93 seat, which includes parts of DeKalb and Rockdale County.

Here are the details released by the U.S. Attorney's office:

Walter Ronnie ("Ron) Sailor, Jr., 33, of Norcross, Georgia, pleaded guilty today in federal district court to a felony criminal information charging him with laundering and attempting to launder what he believed to be drug proceeds, after taking possession and agreeing to launder a total of approximately $375,000 of cash from the purported sale of cocaine. SAILOR serves as the Representative of District 93 (parts of DeKalb and Rockdale Counties) in the Georgia General Assembly. He has been cooperating with the Government in an ongoing public corruption investigation since shortly after being confronted by the FBI on December 19, 2007. He is resigning from his position today.

“This case did not start as a public corruption matter, but rather as a drug money laundering investigation -- part of our diligent efforts to identify, investigate, and prosecute significant drug traffickers and money launderers, whomever they may be,” said United States Attorney David E. Nahmias. “Rep. Sailor’s actions in that regard were very disturbing, because he was a person entrusted by his community with enacting the law, who instead violated the law in a serious way, seeking to assist the drug traffickers who sell their poison in our communities. Shortly after he was confronted by the FBI, however, Mr. Sailor decided to do the right thing by admitting his misconduct and agreeing to cooperate regarding potential criminal activity by others. As a result, we now have an active public corruption investigation. With respect to that investigation, all I will say at this time is the following: As Mr. Sailor and others have learned, people in public office who have violated the law and the public’s trust should know that their situation will be much better if they come knocking on the FBI’s door than if the FBI comes knocking on theirs.”

FBI Atlanta Special Agent in Charge Greg Jones said of the case, “The trust of the people in its elected officials is the foundation that our system operates on and depends on. This trust was broken. The willingness demonstrated by Rep. Sailor to become involved in this type of criminal activity is disturbing to say the least. This investigation, and its successful outcome, was the result of close coordination among those involved at the FBI and with the U.S. Attorney's Office. Because of the nature of these cases, the FBI will continue to pursue corruption in government wherever the investigation takes us.”

According to United States Attorney Nahmias and the information presented in court: On November 10, 2007, SAILOR met at a metro Atlanta hotel with an undercover law enforcement employee using the name “Jay,” who was working with and at the direction of the FBI. The meeting was at the request of SAILOR, who had previously been seeking a drug dealer who had the ability of provide him with $300,000 in drug proceeds to launder for a fee and believed that “Jay” was a drug dealer from the Florida area. During the November 10 meeting, SAILOR indicated that he had the ability to launder money and had done so in the past for others, and offered various scenarios for laundering the drug money to make it appear that it came from a legitimate source. After SAILOR and the undercover employee discussed the source of the money – that is, drug trafficking – the undercover employee asked SAILOR if he was sure he wanted to go forward. SAILOR agreed to go forward and negotiated a fee of 10 percent.

In a second meeting about an hour later, SAILOR took possession of $25,000 in cash, which was represented to be proceeds from the sale of cocaine. On November 30, 2007, SAILOR met with the undercover employee and gave him a certified check in the amount of $22,000. The check concealed the true source of the funds by falsely stating that the undercover employee was being paid for contracting work at a church with which SAILOR said he is associated. In fact, no such church existed and the undercover employee had never performed such work.

In a second series of meetings and telephone conversations, SAILOR agreed to launder another $50,000 in drug proceeds for a fee of 10 percent. On December 1, 2007, the undercover employee met with SAILOR at a metro Atlanta hotel and delivered $50,000 in cash, which was again represented to be drug money. On December 4, 2007, SAILOR contacted the undercover employee and indicated that he was prepared to return the laundered funds and requested an additional $300,000 to launder. On December 6, 2007, SAILOR flew to Florida, where he met with the undercover employee and gave him two checks, in the amounts of $15,000 and $30,000, drawn on the accounts of separate local Atlanta businesses and signed by a third party. Both checks falsely indicated that they were for a business loan.

SAILOR and the undercover employee then arranged to engage in a third laundering transaction. On December 19, 2007, SAILOR and the undercover employee met in an Atlanta area hotel, where SAILOR was given $300,000 in cash, which was again represented to be drug proceeds. Shortly after taking the money, SAILOR was confronted and detained by FBI agents. After waiving his Miranda rights, SAILOR admitted to the agents that he had laundered the $25,000 and $50,000 cash that he believed to be drug proceeds and that he intended to launder the additional $300,000 cash that he had just received from the undercover employee.

SAILOR was charged today in a Criminal Information with one felony count of knowingly conducting and attempting to conduct a financial transaction involving $370,000 in United States currency represented by a law enforcement officer to be the proceeds of the sale and distribution of a controlled substance, with the intent to conceal and disguise the source of those funds. SAILOR pleaded guilty to that charge today before Chief United States District Judge Jack T. Camp. SAILOR’s plea agreement requires him to cooperate fully and truthfully with the Government.

SAILOR could receive a maximum sentence of 20 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders, as well as the extent of SAILOR’s truthful cooperation. SAILOR also has agreed to forfeit all property involved in and traceable to his crime, including $8,000 in commissions and fees paid to him for the money laundering.

Sentencing is scheduled for May 22, 2008, at 10 a.m., before Chief Judge Camp.