Sep 28, 2007 12:07 am US/Central
Company At Center Of FBI Probe Selling Assets
by Jack Fink
DALLAS (CBS 11 News) ―
There is new information about the company at the center of the FBI's investigation at Dallas City Hall.
CBS 11 News has learned Southwest Housing is in the process of selling its affordable housing complexes.
Allegations of bribery center on this and other affordable housing projects built by Southwest Housing.
The company, owned by Brian Potashnik, received federal tax credits to build the apartments.
CBS 11 News has learned Southwest Housing is under contract to sell most or all 54 of its affordable housing complexes built here in Texas and in other states to a Seattle company.
Basil Rallis, the Director of Cascade Affordable Housing, confirms the deal, but wouldn't comment further.
Experts say the deal could be worth up to $25 to $30 million.
In another development, the city claims Southwest Housing owes the city $200,000 in fees in lieu of the company paying property taxes.
Potashnik wasn't at his office when we stopped by Thursday, and no one came to the door at his Highland Park house.
The news comes one day after we first reported that federal indictments are imminent in the corruption probe.
We were unsuccessful in contacting a number of those under investigation, including former Mayor Pro-Tem Don Hill, his former political consultant, who he has since married, Sheila Farrington, and State Representative Terri Hodge.
An attorney for former plan commissioner D'Angelo Lee says his client received a target letter from federal prosecutors last month.
Former Councilman James Fantroy says he also received a target letter recently.
On Wednesday, Fantroy said he hadn't spoken with federal prosecutors and hadn't been offered a deal to cooperate in the investigation.
Fantroy vowed to fight any charges. "I am asking the community to stick with me on this because I don't feel like I did anything wrong," he said. "I said that from day one, and I'm saying that again today."
The FBI and federal prosecutors aren't commenting.
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