STATE REPRESENTATIVE SCHMITZ INDICTED FOR FRAUDULENT
SCHEME WHICH NETTED HER $177,251.82 X

BIRMINGHAM, AL - SUZANNE L. SCHMITZ, 63, of Toney, has been charged in a nine-count Indictment with mail fraud and fraud involving The Community Intensive Training for Youth (“CITY”) Program, a federally funded program, in Huntsville. The CITY Program operated in 10 locations throughout Alabama and sought to develop social, behavioral, and academic skills possessed by “at-risk” youth.  Students were referred to CITY Program through the juvenile court system.  The charges state that SCHMITZ held the title of “Program Coordinator for Community and External Affairs,” at the CITY Program from January 2003 to October 2006, and received approximately $177,251.82 in salary/benefits despite performing little to no work.  The indictment  seeks forfeiture of the gains Schmitz realized through her criminal conduct. 

            Schmitz, who represented the Sixth District in the Alabama Legislature, is charged with having sought her position through illegitimate means, and facilitating her fraudulent activity by asking to work on a “flexible work schedule.”   The unsealing of the indictment and arrest of Schmitz is announced today by U.S. Attorney Alice H. Martin, Acting Alabama Attorney General Richard J. Minor, Inspector in Charge Martin Phanco, U.S. Postal Inspection Service, and Special Agent in Charge Carmen S. Adams, Federal Bureau of Investigation.  Schmitz appeared in federal court today, and after an initial appearance was released on a $25,000 unsecured bond.  She is scheduled to be arraigned on February 11, 2008.

            “We charge that Representative Schmitz’s only substantial ‘work’ was to work her official position in the legislature to land a job through the Postsecondary system,” stated U.S. Attorney Alice H. Martin.
           
            “The people of the State of Alabama have a fundamental right to honest and ethical elected officials,” stated Richard Minor, Acting Alabama Attorney General.  “The conduct charged in the indictment is a violation of the trust to which Representative Schmitz’s constituents and the citizens of Alabama are entitled.  As I have said before, public officials are elected to serve the public, not exploit their position for personal gain.”
           
            The indictment alleges that during the 3 1/2 years she was paid by the CITY Program, through its fiscal agent, Central Alabama Community College, Schmitz rarely went to her Huntsville office; performed virtually no services and generated virtually no work product; and submitted false statements to CITY Program regarding the volume and nature of work that she was performing, all in an effort to continue to collect her salary and benefits.
 
            “The first consumer protection law enacted by Congress was the U.S. Mail Fraud Statute of 1872.  The Postal Inspection Service is pleased with this indictment because it sends out the message that using the Postal Service to further a fraud scheme will not be tolerated, regardless of the sender,” stated Martin Phanco, Inspector in Charge, United States Postal Inspection Service, Atlanta Division.

            “The indictment of Representative Schmitz is yet another example of our efforts to work with our law enforcement partners to shine the light of justice on potential corruption,” stated Carmen S. Adams, Special Agent in Charge, Federal Bureau of Investigation, Birmingham Field Division.

            The maximum sentence for mail fraud is twenty years in prison and a fine of $250,000.  The maximum sentence for fraud involving a program receiving federal funds is ten years in prison and a fine of $250,000.