US Attorney Press Release Makes it Official: Maddox, Carter-Smith Indicted

US Attorney Press Release Makes it Official: Maddox, Carter-Smith Indicted

FOR IMMEDIATE RELEASE
December 12, 2018 For more information, contact:
U.S. Department of Justice Office of Public Affairs 202-514-2007
U.S. Attorney’s Office Northern District of Florida Amy Alexander, Public Information Officer 850-216-3854, amy.alexander@usdoj.gov

TALLAHASSEE CITY COMMISSIONER AND POLITICAL CONSULTANT CHARGED IN RACKETEERING CONSPIRACY
TALLAHASSEE, FLORIDA – Tallahassee City Commissioner Scott Charles Maddox, 50, and Tallahassee political consultant Janice Paige Carter-Smith, 53, both of Tallahassee, have been indicted in a forty-four count indictment for conspiring to operate a racketeering enterprise that engaged in acts of bank fraud, extortion, honest services fraud, and bribery. Maddox and CarterSmith are also charged with substantive counts of bank fraud, false statements to financial institutions, extortion, honest services fraud, use of interstate facilities in furtherance of bribery, false statements to federal officers, conspiracy to interfere with the lawful function of the Internal Revenue Service (“IRS”), and filing false tax returns.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Attorney for the United States Karen Rhew-Miller of the Northern District of Florida Acting Under Authority Conferred by 28 U.S.C. § 515, Special Agent in Charge Charles Spencer of the FBI’s Jacksonville Field Office, and Special Agent in Charge Mary Hammond of the IRS – Criminal Investigation Tampa Field Office made the announcement.

The initial appearance is scheduled for today, Wednesday, December 12, 2018, at 3:00 p.m. EST at the United States Courthouse in Tallahassee in the Magistrate Judge’s Courtroom on the main floor. The trial date will be determined at this hearing.

Maddox and Carter-Smith allegedly conspired to operate two companies, Governance, Inc., and Governance Services, LLC, as one entity they referred to as “Governance.” Per the indictment, Governance was part of a racketeering enterprise that extorted money and accepted bribes from Governance clients under color of Maddox’s office and through fear of the economic harm that Maddox could inflict in his position as an influential City Commissioner. The indictment alleges that Maddox voted on matters and exerted influence on City employees to take actions that benefitted the businesses that paid Maddox and Carter-Smith through Governance.

According to the charges, Maddox and Carter-Smith made false statements to the FBI concerning Maddox’s affiliation with, and management of Governance and Governance Services. The indictment alleges that during the course of the conspiracy, Maddox made false statements under oath to a Florida Commission on Ethics investigator and in a sworn deposition about his affiliation with Governance. He also concealed from the Tallahassee City Attorney and the City Commission the fact that he was being paid by companies doing business with the City.

The indictment further alleges that Maddox and Carter-Smith also defrauded a bank of more than $250,000 through two fraudulent short sales of real property, lied to federal agents about Governance and other matters, and violated federal tax laws by conspiring to interfere with the IRS and filing false tax returns.

The investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Stephen M. Kunz of the Northern District of Florida and Trial Attorneys Simon J. Cataldo and Peter M. Nothstein of the Department of Justice Criminal Division’s Public Integrity Section.

The maximum terms of imprisonment for the offenses are as follows: • 30 years: Bank Fraud, False Statements to a Financial Institution • 20 years: Racketeering Conspiracy, Extortion and Honest Services Fraud • 5 years: Use of Interstate Facilities in Furtherance of Bribery, Making False Statements to a Federal Officer, Conspiracy to Defraud the United States • 3 years: False Statement on a Tax Return

An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

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27 Responses to "US Attorney Press Release Makes it Official: Maddox, Carter-Smith Indicted"

  1. Curtis
    Curtis   December 12, 2018 at 10:07 am

    This morning, Tallahassee is waking up to headlines that Commissioner Scott Maddox has been indicted. If he has violated the law, he should be held accountable. There is nothing worse than violating the public trust. In the meantime, let us not forget the good service Commissioner Scott has provided to the city.

    Reply
    • Really Curtis?   December 12, 2018 at 12:22 pm

      “In the meantime let’s not forget the good service….” RIDICULOUS – Curtis! Every single decision this CROOK has ever made for COT requires review and reassessment! Major Dailey – please make this a priority! Governor Scott – get Maddox out of there – like yesterday.

      Reply
    • Hope   December 12, 2018 at 6:39 pm

      Have you lost your mind, Curtis?

      Reply
  2. Catherine Baer   December 12, 2018 at 10:10 am

    Wow!! Just “Wow!”

    Reply
  3. Mark   December 12, 2018 at 10:15 am

    Rocky Hanna should take note of what a real investigation looks like and yeilds. Hanna admitted to the school board attorney Hank Coxe that he made up the false summaries in his notebook that cost taxpayers $600,000 to investigate so that he could discredit the former Superintendent. When will law enforcement, the school board and the Florida Department of Education hold Rocky Hanna accountable for knowingly piecing together documents to purposely misrepresent facts for the sole purpose of winning an election? Rocky Hanna broke several education ethics rules, cost taxpayers $600,000, purposely mislead state and federal authorities with no accountability. Wow.

    Reply
    • Get O. Verit   December 12, 2018 at 9:26 pm

      Hey Snarky Mark and The Funky Bunch- You seriously need to get over it. A few months after the election, ok, it’s still fresh – but years later? Dang. MOVE ON WITH YOUR LIFE! We all have! And Rocky is doing a great job!

      Reply
  4. Jerry Kimbro   December 12, 2018 at 10:25 am

    Now if they had just donated to the Clinton Foundation, there’d be no problem. (Sarcasm)

    Reply
    • David   December 12, 2018 at 11:33 am

      How do you think he got away with it for this long…….LOL.

      Reply
      • Disgusted   December 12, 2018 at 2:07 pm

        He had a lot of help from his friends in high places.

        Reply
        • airborne   December 12, 2018 at 3:51 pm

          Friends in high places indeed. How many thousands did Maddox donate to the re-election of Judges Dodson and Gievers, who repeatedlly ignored evidence, violated rules of procedure, to rule in his favor?

          Judge Karen Gievers, who just ordered an extension of the Palm Beach County recount, in violation of Florida election law, neither recused herself or disclosed she worked for The Florida Democratic Party and VP Gore, as an attorney filing motions to the Florida Supreme Court, in the November 2000 recount.

          She doesn’t have jurisdiction over Palm Beach County. Additionally, the assignment of judges to cases in Leon County Court is random, by computer. Her assignment to the case with the motion for extension was not random. How was judge Gievers assigned this case and how did the Palm Beach elections supervisor know Gievers would rule in their favor? Otherwise, why would they drive 8 hours during the night to file a motion in Leon County court other than forum shopping?

          Maybe the FDLE or US DOJ will look at “judge” Gievers emails and phone records.

          http://www.wtxl.com/news/leon-county-judge-orders-recount-extension-for-palm-beach-county/article_90b82376-e78c-11e8-a395-2fc9e1e59923.html

          See Gievers name at the bottom of page 35.

          http://www.floridasupremecourt.org/decisions/pre2004/ops/sc00-2346.pdf

          Reply
  5. Anhaica   December 12, 2018 at 10:30 am

    Thanks TR! Do you know if additional indictments are coming?

    Reply
  6. Mike   December 12, 2018 at 10:38 am

    My hope is that the FBI’s net is wide, very wide – and there’s more and bigger fish to catch in Tallahassee. I can imagine that suddenly today there’s a lot of shredding trucks moving around the city, and a lot of feverish phone calls going on.

    Reply
  7. Just Forty Four?   December 12, 2018 at 10:45 am

    Coincidentally weren’t about 40 City of Tallahassee Employees ‘Laid Off’ without any budgetary based reasons concurrently in July of 2017 via City Manager Rick Fernandez’s direction (who was given a ridiculous severance packet by Maddox/commissioners for just some of his unethical escapades)?

    Reply
    • Steve   December 12, 2018 at 3:00 pm

      The layoffs weren’t about budget issues. The city released a statement that said in part “Since 2016, the City of Tallahassee has been engaged in an ongoing evaluation process to
      ensure operations are functioning at maximum efficiency levels”
      The layoffs were to get rid of dead weight (inefficient workers).

      Reply
  8. Jon   December 12, 2018 at 11:37 am

    Wasnt he just re-elected without any opposition?

    Reply
    • mib8   December 16, 2018 at 12:07 pm

      I see 3 other names on the sample ballot for “seat 1”.

      Reply
  9. Mary   December 12, 2018 at 11:44 am

    If they are convicted I hope they spend the time. We need more accountability for violating the law and the public trust. Time to set an example. Doesn’t look like Washington will ever file charges against the corruption there in DC, maybe we will start a trend.

    Reply
  10. david   December 12, 2018 at 2:29 pm

    Hey Commissioner Richardson, do you see the DARK CLOUD NOW?

    Reply
    • ReDo   December 12, 2018 at 2:49 pm

      SIMPLY – Get rid of Richardson, Goad, Barber, Jackson, Blair, Keefe, Hendricks, Faris and about 22 more & let us get back to being a real town with real morals. New Commissioners and Mayor – support this, don’t let us down! YOU Can get this done!

      Our 4 New Commissioners can fire Goad and Cassandra Jackson and perform real searches as was suppose to be done!

      Reply
  11. Justice   December 12, 2018 at 3:28 pm

    Inefficient, meaning not following unethical and compromising orders.

    Reply
  12. lookingforward   December 12, 2018 at 4:52 pm

    wonder which city staff are first to be indicted…

    Reply
    • MoreIndictments   December 15, 2018 at 9:57 pm

      Well it won’t be any of the employees fired, now will it?

      Reply
  13. Mike Lavender   December 12, 2018 at 5:53 pm

    The bell tolls for thee, Andrew.

    Reply
  14. Past participle   December 12, 2018 at 6:38 pm

    Let’s hope this is finally the domino start with the first strike. Let’s see how many start to fall with this first move. Hope they get Fernandez who ( thinks right now he is sitting pretty) let’s see how far the long arm of the law can reach. Need about 45 more indictments to be handed out and I’d call that a GOOD START.

    Reply
  15. David Zimmer   December 13, 2018 at 10:17 pm

    I hope Steve applies for the vacated seat. He is by far the best man for Maddox’s position.

    Reply
  16. Hope   December 14, 2018 at 2:31 pm

    I agree.

    Reply
  17. Marlin   December 16, 2018 at 6:05 pm

    Shady Shelly Bell and Ridiculous Ricky Bell applied for the seat held by Maddox. Until they both tell the truth about what they did for Rocky Hanna in the election nobody should trust them. Ricky held back an affidavit that proves Rocky Hanna made up all of the information in the notebook while Mrs Bell was promoted to Lively without an interview.

    Reply

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