FORMER CITY COUNCILMAN AND COUNTY COMMISSIONER
KATOPODIS CHARGED WITH LOOTING CHARITY COFFERS OF $250,000

BIRMINGHAM, AL – GREGORY JOHN KATOPODIS, 61, a former resident of Birmingham now residing in Boston, Massachusetts, was arrested this morning on charges of 97 counts of mail fraud, wire fraud, and honest services fraud in connection with his theft of the funds of local charity, Computer Help for Kids (CHK).  The federal Indictment was unsealed this morning in U.S. District Court according to U.S. Attorney Alice H. Martin, Special Agent in Charge Carmen Adams, FBI; and Reginael D. McDaniel, Special Agent in Charge, Internal Revenue Service, Criminal Investigations.

KATOPODIS, who was a member of the Birmingham City Council in the 1970s and the Jefferson County Commission in the 1980s, was involved in founding CHK and controlled its finances and bank account.  CHK’s mission was to repair used computers donated by area businesses and to distribute them to poor, needy, and disadvantaged children of Jefferson County, Alabama to increase access to technology. From 2002 through 2007, the majority of CHK’s funding came from the Jefferson County Commission and totaled $815,000. During that time, KATOPODIS was the only signatory on the CHK bank account.  He refused others associated with CHK access to those records. The charity is now defunct.

“Katopodis apparently thought this was the GJK charity not CHK – Computer Help for Kids – as he used $250,000 of this charity’s money to pay for personal trips, gifts, bills and to make over 50 withdrawals from ATMs in or near casinos.  We’ll never know the good that money could have done the needy it was intended to benefit” stated U. S. Attorney Alice H. Martin.

“The use of public funds for personal gain violates the public’s trust and undermines our democracy.  That is why public corruption is the number one criminal priority for the FBI.  I want to assure the citizens of north Alabama that the FBI will continue to aggressively investigate public corruption at every level,” stated Carmen S. Adams, Special Agent in Charge, Federal Bureau of Investigation.

"Public service and any function connected to public service is a privilege.  Individuals who abuse that privilege and engage in illegal activity to benefit financially violate the public trust.  These individuals must be held accountable,"   stated Reginael D. McDaniel, Special Agent in Charge, Internal Revenue Service, Criminal Investigations.

The indictment charges that KATOPODIS, from November 2001 until June 2008 schemed to defraud CHK and Jefferson County by obtaining money from Jefferson County and other private donors, to use for his personal benefit.  Specifically, Counts 1 and 2 charge mail fraud in connection with KATOPODIS causing Jefferson County to issue checks to CHK.  Counts 3-5 charge mail and wire fraud in connection with KATOPODIS causing approximately $24,000 of CHK money to be mailed and wired to Fleet Boston Bank in Massachusetts, into another bank account that he controlled, between January and March of 2004. 

KATOPODIS is also charged with 27 counts of wire fraud (Counts 6-32) for using the charity’s debit card, from 2004 to 2007, at Harrah’s Casino in New Orleans, Jazz Casino in New Orleans, Global Casino either in Louisiana or Mississippi, and Silver Star Casino in Mississippi for a total of approximately $9,470. 

KATOPODIS is charged with 23 counts of wire fraud (Counts 33-55) for using the CHK check card to withdraw cash at ATMs at or near casinos in New Orleans for a total of approximately $6,356.

KATOPODIS is charged with 5 counts of wire fraud (Counts 56-60) for transferring $7,500 from CHK’s checking account into his personal checking account at Bank of America.  He also is charged with using transfers from CHK’s checking account  to pay his personal credit card accounts on 18 occasions between December 2003 and January 2006, totaling approximately $40,000 (Counts 61-78).

KATOPODIS bought airline tickets and paid for travel for himself and friends on 14 occasions from March 2005 to October 2007, including trips to Cairo, Egypt and Nassau, Bahamas (Counts 79-93 and 96-97) costing over $9,000. While traveling to Ft. Lauderdale, Florida and Nassau, Bahamas, he also used the check card to withdraw cash totaling $800 (Counts 98 and 99).

Criminal forfeiture in the amount of $250,000 is sought.

KATOPODIS faces up to 20 years in prison for each count, and also a fine of up to $250,000.00 for each count. 

This case was investigated by Special Agents of the Federal Bureau of Investigation and the Internal Revenue Service.  Assistant United States Attorneys George Martin and Tamarra Matthews-Johnson are prosecuting this case on behalf of the United States.

Members of the public are reminded that the indictment contains only charges.  A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant s guilt beyond a reasonable doubt at trial.