Dallas / Fort Worth Local News

by Tracy Rowlett
DALLAS (CBS 11 News) ― In June 2005, Dallas City Hall was hit by a whirlwind.

FBI agents descended. They seized documents, searched cars, and stirred up a storm.

Nearly two years later, the cloud still hangs over the city.

Armed with a federal search warrant, agents hauled off records from Mayor Pro-Tem Don Hill's office and searched the BMW he was driving. "They've not read me my rights or anything like that," said Hill.

Council member James Fantroy's business office was raided. "I'm an elected official," he said. "I have not heard zero."

They raided the offices of Southwest Housing Development, a company owned by a man named Brian Potashnik.

The investigation seemed to center on "affordable housing," apartments which rent below market rate.

To get developers like Potashnik and Southwest Housing to build them, the federal government offers them tax credits. Tax credits are good as gold because they're transferable and can be sold to investors for millions of dollars.

But to qualify, local government officials must approve the projects.

We met D'Angelo Lee, Hill's appointee to the Dallas Plan Commission. It wasn't long before CBS11 began connecting the dots.

"Records show there's a connection between Hill, Lee and Southwest Housing," said CBS 11 News Reporter Jack Fink. "Her name is Sheila Farrington. She's Hill's political consultant."

"Plan Commissioner Lee lists Farrington as a source of income, and Southwest Housing Development has paid Farrington as a project consultant," said Fink.

Then there was the car Hill was driving. He didn't own it.

"You are an elected official," said CBS11 News Reporter Sarah Dodd during an interview with Don Hill. "I think we have a right to know why you're driving a car you don't know who owns it."

"It's a friend's car," Hill said. "It's a car that I've earned the right to use because I've been working on behalf of that person."

It was owned by Farrington. That car and a car Lee was driving were provided by auto dealer Rick Robertson, who worked on an affordable housing project developed by Odyssey Holdings.

Lee voted to approve zoning for an Odyssey development proposal, and Hill pushed the council to approve $6 million in tax credits.

But the FBI was interested in more than just city officials.

When asked who paid her rent, State Representative Terri Hodge said, "I'm gonna answer that question with the FBI investigation."

"Our investigation found that Hodge accepted approximately $33,000 worth of unreported rent money from developer Brian Potashnik," said Riggs.

So was it developers bribing officials? Or were officials shaking down developers?

CBS11 learned that former Potashnik partner Bill Fisher wore a wire for the FBI and tried to get Dallas businessman Comer Cottrell to offer Hill a bribe.

"Cottrell says that you are the person that accompanied the two other people that were trying to bribe Don Hill," said Riggs during an interview with Fisher.

"I can't comment on that," he responded.

Two years later brings us to the present.

Hill divorced his wife and married Farrington. If indicted, neither would have to testify against the other.

Hill is running for mayor.

Fantroy is in ill health.

Hodge was re-elected to the state legislature.

Lee resigned from the plan commission and reportedly left town.

Potashnik remains in town, but his life is on hold.

CBS11 reported the search warrants executed at city hall involved extortion, wire fraud, bank fraud, money laundering and bribery of public officials.

Yet to this day, no indictments have been handed down, and a federal grand jury continues to hear from witnesses and sift through evidence.

Sources tell us several indictments may come now in a matter of months, and well after the Dallas city elections.

We're told this is a very complicated case. Add that to a manpower shortage, and maybe you have a viable excuse for the delay.

But justice delayed is justice denied, and one lawyer familiar with these matters says it's ridiculous that it's taken this long.

Hill said this week the FBI investigation is in part politically motivated, designed to keep him from becoming mayor. I find that far fetched.

But I would agree that if Hill is elected, and then is indicted, it would be a bitter pill for the people of Dallas. The city would again catch unfavorable national attention.

Then there's that ugly matter of race. Most of the key players here, with the exception of developer Brian Potashnik, are black.

I don't see racism here, but I do see a process that has taken far too long. We must know the outcome of this investigation, and the sooner the better.


Click on a headline below to see video related to this commentary.

January 4, 2007: Dallas Councilman Now Running For Mayor
August 16, 2006: Check The Salaries Of Key Dallas City Hall Leaders
June 2, 2006: Dallas Housing Company Prospers Despite FBI Probe
July 6, 2006: Dallas Mayor Laura Miller Calling It Quits
June 2, 2006: Dallas Housing Company Prospers Despite FBI Probe
March 1, 2006: Dallas City Hall Investigation Gets Deeper
January 6, 2006: Infamous BMW Still Registered To Previous Owner
November 18, 2005: Developer's Contributions To Miller Examined
August 23, 2005: Civil Rights Leaders Question The FBI Investigation Of Dallas City Hall
August 18, 2005: Community Reacts To FBI Investigation Involving Several African American Members
August 17, 2005: Dallas City Council Decides Not To Remove D'Angelo Lee
August 17, 2005: Two Additional Dallas City Plan Commissioners Added To FBI Investigation
July 28, 2005: FBI Investigation of Dallas City Plan Commissioner D'Angelo Lee
July 15, 2005: Luxury Cars Driven By Key Figures In FBI Investigation
June 22, 2005: Local Businessman, Dallas Planning Commissioner Included In FBI investigation
June 21, 2005: FBI Investigation Centers On President Of Affordable Housing Corporation


Dallas City Hall FBI Investigation Unfolds: CBS11 News Coverage
October 7, 2005
August 31, 2005
August 29, 2005
August 26, 2005
August 25, 2005
August 24, 2005
August 19, 2005
August 17, 2005
August 16, 2005
August 16, 2005
August 12, 2005
August 9, 2005
July 27, 2005
July 1, 2005
June 30, 2005
June 29, 2005
June 22, 2005


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(CBS 11 News)