STATE REPRSENTATIVE BRYANT MELTON CHARGED WITH PUBLIC CORRUPTION AND MONEY LAUNDERING
- AGREES TO PLEA GUILTY

BIRMINGHAM, AL - Alabama House Representative BRYANT MELTON, 66, of Tuscaloosa, has been charged in a two-count Criminal Information filed today in U. S. District Court in Birmingham. Count One of the Information charges MELTON with theft from programs receiving Federal funds, and Count Two charges laundering of monetary instruments.

The Criminal Information is announced today by U.S. Attorney Alice H. Martin, Alabama Attorney General Troy King, Special Agent in Charge Carmen Adams of the Federal Bureau of Investigation (FBI), Jeannine Hammett, Assistant Special Agent in Charge, and Katherine Henken, Supervisory Special Agent in Charge, Internal Revenue Service (IRS) at a press conference held in Birmingham.

“Representative Melton, used the Alabama Fire College Foundation as a ‘pass through’ to get taxpayer money, intended for the training of Alabama fire fighters, into his own pocket. This corrupt activity reaches a new low and is scandelous,” said U. S. Attorney Alice H. Martin. “We will continue our investigation and work to remove the ‘smoke screen’ that individuals have established around this Foundation.”

“It is always disappointing when a public official violates the public trust. The citizens of Alabama entrusted Representative Melton with their hard-earned tax dollars,” states Alabama Attorney General Troy King. “Sadly those citizens’ trust was misplaced and their interests betrayed. When evidence of this conduct was brought forward, our office, in conjunction with the U.S. Attorney’s Office, thoroughly investigated those allegations. The people of this state should be reassured and know that, while public corruption continues to exist in our state, as this case demonstrates, it is not being tolerated.” Attorney General King also states, “To those who serve our State in positions of trust, the message is loud and clear – Faithfully uphold your oaths, obey the law, or face severe consequences.”

According to the Information and the Plea Agreement filed today, MELTON as a member of the Alabama House of Representatives for the 70th District (Tuscaloosa), is an agent of the State of Alabama. In early Fall of 2000, MELTON was employed as the Director of Human Resources at Shelton State Community College (SSCC) a community college overseen by the Alabama Department of Postsecondary Education. The Alabama Fire College/SSCC is legislatively mandated to provide training for thousands of paid and volunteer fire fighters, industrial fire protection personnel, rescue squad members, and emergency medical personnel throughout the state of Alabama.

The Alabama Fire College Foundation is a non-profit organization that was established for the purpose of providing scholarships and general support to accomplish the purpose of the Alabama Fire College.

In the factual basis of the Plea Agreement MELTON admitted that he told a former president (Former President) of a community college overseen by the Alabama Department of Postsecondary Education, that he was incurring considerable expense funding his daughter’s medical education.

MELTON said the Former President told MELTON that, if he would direct State funds to the Fire College Foundation, then the Foundation would provide funds to MELTON for his daughter’s education.

MELTON also had conversations with an individual who was currently serving as the president (Current President) of a community college overseen by the Alabama Department of Postsecondary Education. MELTON discussed with Former President and with Current President the scheme wherein MELTON would direct his legislative discretionary funds to the Fire College Foundation and then receive “scholarships” for his daughter.

The scheme included the following transactions:

* On October 20, 2000, MELTON submitted a grant application to the Joint Legislative Committee on Community Service Grants (legislative discretionary funds) with the intent of directing $15,000 in legislative discretionary funds to the Fire College Foundation. The grant application falsely stated that the funds were to be used to purchase computer software for Fire College students and to provide service of over 300 students. The application was granted and a check for $15,000, payable to the Fire College Foundation from the State of Alabama, was delivered in the mail to MELTON on November 20, 2000.

MELTON delivered the check personally to a Fire College Foundation Board Member who deposited the check. Subsequently, the Board Member provided MELTON a one-page scholarship application which MELTON completed in April 2001. Board Member personally took the application and gave MELTON a check for $5,000 payable to MELTON’S daughter. MELTON endorsed the check and deposited funds into his personal bank account from which personal expenses were paid. The process was repeated in July 2001 and a check payable to MELTON’S daughter for $10,000 was received on August 11, 2001. MELTON endorsed and deposited the check into his personal checking account from which he paid personal expenses due, in large part, to his gambling activity.

* In December 2001, after the start of the 2002 legislative/fiscal year, MELTON asked the Board Member how much money MELTON could get out of the Fire College Foundation in the form of scholarship checks to his daughter. The Board Member said he could get any amount as long as he got an equal or greater amount directed into the Fire College Foundation in legislative discretionary funds.

In January 2002, MELTON submitted a grant application to the Joint Legislative

Committee on Community Service Grants with the intent of directing $40,000 in legislative discretionary funds to the Fire College Foundation. The grant application falsely stated that the money would provide scholarships to volunteer fire fighters and to purchase additional software for the Fire College to benefit about 450 students. The application was granted and a check for $40,000 payable to the Fire College Foundation was, once again, mailed to MELTON who personally delivered it to the Board Member. Over the next six months, from January 2002 until July 2002, Board Member gave MELTON four separate checks, each payable to his daughter, in the amount of $10,000 each. Each check was again endorsed by MELTON, deposited into his personal checking account from which he paid personal expenses, due in large part to the defendant’s gambling activity.

* In March 2003, MELTON submitted another grant application to the Joint Legislative Committee on Community Service Grants with the intent of directing $30,000 in legislative discretionary funds to the Fire College Foundation. The grant application falsely stated that the money was to be used to provide scholarships for students in the West Alabama area, and to purchase up-to-date, state-of-the-art computer software for the benefit of approximately 2,000 students. The application was granted and a check for $30,000 payable to the Fire College Foundation was, once again, received by MELTON who personally delivered it to the Board Member. Shortly thereafter in March 2003, the Board Member gave MELTON a check, payable to his daughter, in the amount of $10,000. Again MELTON endorsed the check and deposited the funds into his personal account.

In the Summer of 2003, MELTON’s daughter completed her medical school education. In the Fall of 2003 MELTON told the Board Member he wanted to get some more of the remaining $20,000 he moved to the Fire College Foundation in discretionary funds, but MELTON’S name could not be connected with the transaction. Board Member told MELTON to find a friend to whom Board Member could direct the funds and “work with” MELTON. Later in September 2003, MELTON got a friend to accept a check for $3,000 from the Fire College Foundation, to cash the check, and to divide the proceeds with MELTON.

Count Two of the Information charges that MELTON did on or about February 25, 2002, negotiate from the Alabama Fire College Foundation a check in the amount of $10,000 knowing that he was concealing and disguising the proceeds of criminal activity. This is commonly referred to as “money laundering.”

MELTON has admitted that he used his position as a legislator to obtain money by fraud from the State of Alabama, and his scheme to use his daughter’s “scholarship” money to conceal and disguise the source and ownership of the proceeds. He has admitted the he received all funds for his personal benefit and that neither his daughter nor any member of his family was aware of the scheme.

“Public Corruption remains a high priority within the FBI, and this Criminal Information is evidence of how the FBI continues to aggressively pursue public corruption at the highest levels,” stated Carmen S. Adams, Special Agent in Charge, Federal Bureau of Investigation.

“IRS Criminal Investigation is committed to pursuing corruption at all levels of government and will use its financial expertise to identify and prosecute any public official who engages in illegal activities,” states IRS Criminal Investigative Special Agent in Charge Rebecca A. Sparkman.

MELTON has agreed to pay restitution in the amount of $85,000 to the State of Alabama. The statutory penalty for theft from an organization receiving federal funds is not more than10 years in prison and a $250,000 fine. The penalty for laundering of monetary instruments is not more than 20 years, and the maximum fine is $500,000.

MELTON has entered into a cooperation agreement and is cooperating with the government in its continuing investigation into the Alabama Fire College and the Alabama Fire College Foundation.

A plea hearing will be set by the court at a later date.

This case is being prosecuted by Assistant United States Attorneys Matt Hart and Tamarra Matthews Johnson, and Special Assistant United States Attorney John Gibbs. The investigation is being conducted by the North Alabama Public Corruption Task Force through investigators with the Alabama Attorney General’s Office, the Federal Bureau of Investigation, and the Internal Revenue Service.

United States Attorney’s Office Press Releases are also on the Internet visit www.usdoj.gov/usao/aln Jill Ellis, Public Information Contact, 205-244-2015