Dallas / Fort Worth Local News

DALLAS (CBS 11 / TXA 21) ― Former Dallas Mayor pro-tem Don Hill says he felt upbeat as he and wife Sheila walked into federal court Monday morning for opening statements in the Dallas Public Corruption trial.

Mr. Hill said, "I feel great, feel great. I have the two best attorneys."

But a short time later, they learned that Developer Brian Potashnik and his wife Cheryl have agreed to plead guilty in the case and cooperate with prosecutors in exchange for lighter prison sentences.

Once a co-defendant, Mr. Potashnik, who pleaded guilty to one count of bribery in the extortion-bribery trial, will now testify against the Hills, former Dallas plan commissioner D'Angelo Lee, Black State Employees Association President Darren Reagan, and car dealer Rickey Robertson.

Don Hill will testify during trial in his own defense.

Potashnik's wife has pleaded guilty to one bribery count in a case also involving state representative Terri Hodge of Dallas who has pleaded not guilty and faces a separate trial at an undetermined date.

Mrs. Potashnik admitted to signing nearly $28,000 in checks from their company Southwest Housing for Hodge in the form of reduced rent at one of the company's housing developments.

In exchange for their cooperation with prosecutors, Mrs. Potashnik faces a maximum prison sentence of 16 months.

Under his deal with prosecutors, Mr. Potashnik faces a maximum of 41 months in federal prison.

Records show Brian Potashnik signed his agreement on Sunday, June 21, one day before jury selection began.

Cheryl Potashnik signed her plea deal ten days before her husband.

Their attorneys have declined comment citing U.S. District Judge Barbara Lynn's gag order.

Hodge's attorney Jeff Kearney has also declined comment because of the judge's gag order.

But after court proceedings Monday afternoon, Sheila Hill's attorney Victor Vital reacted to the Potashniks' plea deal this way. "We pleaded not guilty and are undeterred."

Attorneys for Lee, Reagan, and Robertson declined comment.

During opening statements, prosecutor Chad Meacham told jurors that the Hills, Lee, and Reagan violated the public trust to enrich themselves.

In one example, the prosecutor said the Potashniks funneled $282,000 through Farrington and associates for Don Hill and Lee, in exchange for their approval for the developers' low income housing developments.

In another example, the prosecutor showed surveillance photos of Reagan giving Don Hill an envelope with $10,000 after voting for another project.

Hill's attorney says it was a campaign contribution and that the evidence will show "He was not motivated by money."

Sheila Hill's attorney told jurors, "Bribery was never on Sheila's mind."

Reagan's attorney Ted Steinke told jurors his client was not guilty of extortion as accused by prosecutors.

Lee's attorney Douglas Greene said Lee and others at city hall were caught in the middle of a fight between two low income housing developers, Brian Potashnik and Bill Fisher, who used to work for Potashnik's Southwest Housing Development before going into business himself.

The prosecutor said in court that Fisher went to the FBI in November, 2004, and wore a wire to record conversations with public officials for FBI agents.

Meacham the prosecutor also revealed before the FBI raided Dallas City Hall in June, 2005, the Potashniks declined to cooperate with agents, and denied they were victims of extortion.

During opening statements, prosecutors played some of the undercover video and audiotapes and showed some surveillance photos.

The trial is expected to last a couple of months.

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