Post on 19-Apr-2020
a FTLED tN OPEN COURT
T
MEM N()1/ 23 2011
IN THE UNITED STATES DISTRICT COURCHARLES R. DIARD, JR.FOR THE SOUTHERN DISTRICT OF ALABAMA CLERK
SOUTHERN DIVISION
UNITED STATES OF AMERICA
v.
* CRIMINAL NO. 11.00262?L
* usAo No.11R00091&
STANLEY MARSHALL wRrcHT * violations: 18 usc g 371MARY L. WRIGHT aka * 18 USC g 2
MARY W. STRACHAN aka * 18 USC g 666MARY W. COOK and 'r t8 USC g 1956(a)(1)
JANEY GALBRAITH 'r 18 USC g 1513(e)* 18 USC $ 134918 USC $ 1343
SUPERSEDING INDICTMENT
THE GRAND JURY CHARGES:
INTRODUCTION
At all times relevant to the indictment:
1. Bayou LaBatrewas a municipality located in Mobile County, in the Southern
District of Alabama.
2. STANLEY MARSHALL WRIGHT was Mayor of Bayou La Batre.
3. MARY L. wRrcrrr aka MARY w. STRACHAN aka MARy w. cooK was
the daughter of STANLEY MARSHALL WRIGHT.
4. JANEY GALBRAITH was hired to assist Bayou La Batre in applying for grants
from federal agencies and then hired to administrate the grants.
5. Alabama statute S 134-10-62 requires a public servant to disclose a conflict of
interest if he exercises any substantial discretionary function in connection with a government
contract, purchase, payment or other pecuniary transaction. According to the statute, a potential
conflict of interest exists when the public servant owns directly or indirectly a substantial portion
of any non-govemment entity participating in the transaction
6. The FEMA Grant Agreement contains the terms and conditions required by FEMA
to award 515,667,293.00 to the City of Bayou La Batre. The terms of the grant agreement
required the Grantee to comply with all applicable laws and regulation including 44 CFR
13.36(bX3) which states that "No employee, officer or agent of the grantee or subgrantee shall
participate in selection, or in the award or administration of a contract supported by Federal funds
if a conflict of interest,real or apparent, would be involved.
According to the regulation, such a conflict would arise when:
A. The employee, officer or agent;B. Any member of his immediate family;C. His or her partner, orD. Anorganization which employs, or is about to employ, any of the above,
has a financial or other interest in the firm selected for award.
Alabama Statute $ 134-10-62 requires a public servant to disclose a conflict of interest
if he exercises any substantial discretionary function in connection with a govemment contract,
purchase, payrnent or other pecuniary transaction. According to the statute, a potential conflict
of interest exists when the public servant owns directly or ind.irectly a substantial portion of any
non-govefilment entity participating in the transaction.
The FEMA Grant Agreement was signed by STANLEY MARSHALL WRIGHT,
acting as Mayor of Bayou LaBatre, on August 20,2007.
COUNT ONE
From on or about Jwre 2007 and continuing through and including the date of this
indictment, the exact dates being to the Grand Jury unknown, in the Southern District of
Alabama and elsewhere.
STANLEY MARSHALL WRIGHT andMARY L. WRIGHT aka MARY W. STRACHAN aka MARY W. COOK and
JANEY GALBRAITH
defendants herein, did knowingly, willfully and unlawfully combine, conspire, confederate, and
agree with each other and with others, known and unknown to the Grand Jury:
(A) to defraud the United States, and
(B) to knowingly and wilfully embezzle, steal, obtain by fraud and otherwise without
authority convert to the use of a person other than the rightful owner and intentionally misapply
property valued at $5,000.00 or more from Bayou La Batre which in the year of 2007, received
more than $10,000.00 from FEMA, in violation of Title 18, United States Code, Sections
666(aX1XA) and2.
BACKGROUND
Bayou La Batre applied for a grant for funds from approximately $400 million
appropriated by Congress and intended, inpart, to fund a pilot program to identify, implement,
and evaluate alternatives to the Federal Emergency Management Agency's (FEMA) traditional
disaster housing options for disaster survivors. The Alabama Alternative Housing Pilot Program
(AAHP) was part of the appropriation and was intended to fund permanent housing solutions
rather than FEMA's traditional response of providing funding for temporary housing for disaster
vlctrms.
Bayou LaBatresubmitted a grarftapplication, prepared by JANEY GALBRAITH,
which primarily focused on transitioning families directly from post-storm FEMA trailers to
permanent housing to be built with the grant funds.
On June 27 ,2007 , FEMA entered into a Grant Agreement with the City of Bayou La
Batre. The Grant Agreement was signed by STANLEY MARSHALL WRIGHT, Mayor of
Bayou LaBatre, on August 20,2007.
FEMA provided the grant funding directly to the City of Bayou La Batre. Expenditures
for this grant could be approved with only the signature of the Mayor, along with the signatures
of two City Council members.
The AAHP housing development was a two-part development called Safe Harbor Estates
and Safe Harbor Landing. The original proposal submitted by the City inctuded plans for the
construction of 194 housing units. However, during the course of the project, the number of
units was scaled back and only 100 housing units were actually produced. These homes are
factory-built modular units varying in size from 820 to 1360 square feet.
After the project was under construction, the City of Bayou La Batre determined that it
was necessary to purchase two small tracts of additional land to widen the entrance to the
AAHPP development. One of the two small tracts of land that was selected for prrchase by the
City of Bayou La Batre was part of a larger parcel that was owned by Mayor STANLEY
MARSHALL WRIGHT. Mayor STANLEY MARSHALL WRIGHT had purchased this
parcel of approximately 7.5 acres of landin 1997 for a total purchase price of $29,000.00.
On October 16,2007, Mayor STANLEY MARSHALL WRIGHT transferred
ownership of aparcel of 0.208 acres out of the larger 7.5 acres parcel to his daughter, MARY L.
WRIGHT aka MARY W. STRACHAN aka MARY W. COOK for no financial
consideration.
4
On October 24,2007, MARY L. WRIGHT aka MARY W. STRACHAN aka MARY
W. COOK transferred the same parcel of 0.208 acres to the City of Bayou LaBatre.
On December 13, 2007,Bayou La Batre paid MARY L. WRIGHT aka MARY W.
STRACHAN aka MARY W. COOK $27.249.00 for the 0.208 acres in the form of a check
drawn on Regions Bank on an account owned by the City of Bayou La Batre andtitled "FEMA
AHPP Grant" with the aceount number endins in 1176. The check had amemo notation of
"Purchase right-of-way. "
On December 17.2007 " MARY L. WRIGIIT aka MARY W. STRACHAN aka
MARY W. COOK wrote three checks payable to STANLEY MARSHALL WRIGHT and one
check to STANLEY MARSHALL WRIGHT',s wife. These four checks totaled $27.300.00
and were each deposited into an account owned by STANLEY MARSHALL WRIGHT and his
wife.
OVERT ACTS
In furtherance of the aforementioned conspiracy and in order to effect the objects thereof,
the following overt acts, among others, were committed by the defendants in the Southern
District of Alabama and elsewhere:
1. On October 16,2A07, Mayor STANLEY MARSHALL WRIGHT transferred
ownership of aparcel of 0.208 acres to his daughter, MARY L. WRIGHT aka MARY W.
STRACHAN aka MARY W. COOK for no financial consideration.
2. On October 24.2407. MARY L. WRIGHT aka MARY W. STRACHAN aka
MARY W. COOK transferred the same parcel of 0.208 acres to the City of Bayou La Batre.
3. OnNovember 15, 2007, JANEY GALBRAITH presented a funding request to the
City Council to pay MARY W. COOK .
4 On November 15, 2007, JANEY GALBRAITH assured a concerned citv council
member tfat the transaction was legal and that the Cit5" Council should trust JANEY
GALBRAITH'S opinion.
5. on December 13,2007, MARY L. WRTGHT aka MARY w. STRACHAN aka
MARY W. COOK received $27,249.00 in the form of a check drawn on Resions Bank on an
account owned by the City of Bayou La Batre and titled "FEMA AHPP Grant" with the account
number ending in 1176. The check had a memo notation of "Purchase right-of-way."
6. on December 17,2007 , MARY L. WRTGHT aka MARY w. STRACHAN aka
MARY W. COOK wrote three checks payable to STANLEY MARSHALL WRIGHT drawn
on RBC Bank on an account owned by MARY W. STRACHAN and STANLEY MARSHALL
WRIGHT's wife with an account number ending in 0521. Check No. 714 in the amount of
$10,000.00, Check No. 715 in the amount of $10,000.00, and Check No. 716 in the amount of
$5,000 were made payable to STANLEY MARSHALL WRIGHT. Check No. 717 in the
amount of 2,300.00 was made payable to STANLEY MARSHALL WRIGHT's wife. These
four checks totaled $27.300.00.
7. OnDecember 20,2007, STANLEY MARSHALL WRIGHT deposi.ted or caused to
be deposited these four checks into an RBC Bank account owned by STANLEY MARSHALL
WRIGHT and his wife with an account number ending in 3871.
All in violation of Title 18, United States Code, Sections 37I and2.
COUNT TWO
From June2007 continuing through on or about December 3I,2007, in the Southern
District of Alabama, Southem Division and elsewhere, the defendants.
STANLEY MARSHALL WRIGHT andMARY L. WRIGHT aka MARY W. STRACHAN aka MARY W. COOK
together with others, did knowingly and willfully embezzle, steal, obtain by fraud and otherwise
without authority convert to the use of a person other than the rightful owner and intentionally
misapply property valued at $5,000.00 or more owned by and under the care, custody, and
control of City of Bayou La Batre, which received more than $10,000.00 from FEMA in2007,in
that defendants did convert to their own use monies in an amount in excess of $5.000.00 from the
Regions Bank account owned by the City of Bayou La Batre and titled "FEMA AHPP Grant"
with the account number ending in 1176.
All in violation of Titte 18, United States Code, Section 666 and2.
COTJNTS THREE THROUGH SIX
On or about December 17,2007, continuing through on or about December 20,2A07,in
the Southern District of Alabama, Southem Division and elsewhere, the defendants,
STANLEY MARSHALL WRIGHT andMARY L. WRIGHT aka MARY W. STRACHAN aka MARY W. COOK
knowingly conducted and attempted to conduct financial transactions affecting interstate
corlmerce, namely, issuing a series of checks in the amounts listed below, held in the name of
MARY W. STRACHAN and STANLEY MARSHALL WRIGHT's wife at RBC Bank on an
account number ending in}52l,which transactions involved the proceeds of a specified
unlawful activity, namely Theft from an Organization Receiving Federal Funds, in violation of
Title 18, United States Code, Section 66,6,thedefendants then knowing that the property
involved in said financial transactions represented the proceeds of some form of unlawful
activity, and engaging in said financial transactions (a) with the intent to promote the carrying on
of the specified unlawful activity; and (b) knowing that the transactions were designed in whole
or in part to conceal and disguise the nature, locaiion, source, ownership and control of the
proceeds of the specified unlawful activity, as follows:
COTINT DATE CHECK NO. AMOL]'NT
THREE t2-17-2A07 714 $10.000.00
FOUR 12-17-2007 7Is $10.000.00
FM t2-17-2007 716 $ s.000.00
sIX r2-t7-2007 717 $ 2.300.00
All in violation of Title 18, United States Code, Sections 1956(a)(1) and,2.
COUNT SEVEN
From January 2011 continuing through on and through the date of this indictment, in the
Southern District of Alabama, Southern Division and elsewhere, the defendant,
STANLEY MARSHALL WRIGHT
did knowingly, with the intent to retaliate, take an action harmful to an individual known to the
Grand Jury and identified as D.W. which was harmful to and which interfered with the lawful
employment and livelihood of D.W., for providing to a law enforcement officer truthful
information relating to the possible commission of a Federal offense.
All in violation of Title 1 8, United States Code, Section 1 5 I 3 (e).
COUNT EIGHT
From on or about June27,2006 through on or about September 30,2010, in the Southem
District of Alabama, Southern Division, and elsewhere, the defendants,
STANLEY MARSHALL WRIGHT andJANEY GALBRAITH
knowingly and willfully did cornbine, conspire, confederate , and, agreewith each other.to commit
the following offense against the United States of America, to-wit:
To devise and intend to devise a scheme and artifice to defraud and transmits and causesto be transmitted by means of wire communication in interstate and foreign commerce anywritings, signs, signals and pictures and signs for the purpose of executing such scheme andartifrce, in violation of 18 USC $ 1343.
Specifically, from-on or about June 1, 2010,though on or about September 2010, the
Department of Housing and Urban Development through their Office of the Inspector General
(HUD-OIG) conducted an audit to determine whether the State of Alabama and the City of
Bayou La Batre were administering the HUD Grant Program in accordance with the requirements
of their agreements and specifically determining whether the procedures and controls
implemented by the City of Bayou LaBatre prevented the duplication of benefits and that the
City of Bayou La Batre ensured that its payment requests were adequately supported and
expended only for eligible costs.
In order to conceal the fact that the HUD Grant Program was not administered in
accordance with the agreement and to convince HUD-OIG that they were complying with the
Grant Agreement, JANEY GALBRAITH instructed her staff to alter or omit documents which
documented a duplication of benefits. JANEY GALBRAITH then transmitted and caused to be
transmitted the fraudulent information by e-mail to HUD-OIG.
All in violation of Title 18. United States Code. Section 1349.
COUNTS NINE THROUGH ELEVEN
From on or about Jwte 27,2006 through on or about September 30,2010, in the Southern
District of Alabama, Southern Division, and elsewhere, the defendant,
JANEY GALBRAITH
knowingly and willfully devised and intended to devise a scheme and artifice to defraud the
United States by transferring false documents that contained material misrepresentations and
omissions concerning applications for Housing Assistance Grants.
Specifically, from on or about June 1, 2010, though on or about September 2010, the
Department of Housing and Urban Development through their Office of the Inspector General
(HUD-OIG) condueted an audit to determine whether the State of Alabama and the City of
Bayou La Batre were administering the HUD Grant Program in accordance with the requirements
of their agreements and specifically determining whether the procedures and controls
implemented by the City of Bayou La Batre prevented the duplication of benefits and that the
City of Bayou La Batre ensured that its paynent requests were adequately supported and
expended only for eligible costs.
In order to conceal the fact that the HUD Grant Program was not administered in
accordance with the agreement and to convince HUD-OIG that they were complying with the
Grant Agreement, JANEY GALBRAITH instructed her staff to alter or omit documents which
documented a duplication of benefits. JANEY GALBRAITH then transmitted and caused to be
transmitted the fraudulent information by e-mail to HUD-OIG.
On or about each of the dates set forth below. in the Southern District of Alabama and
elsewhere. defendant.
JANEY GALBRAITH
for the purpose of executing the scheme described above, and attempting to do so, caused to be
10
transmitted by means of wire communication in interstate commerce from the Southern District
of Alabama to Mississippi, the signals and sounds described below for each count, each
transmission constituting a separate count:
COUNT
9
DATE
8-24-10
8-24-1010
DESCRIPTION
E-mail transmission from Janey Galbraith akagrantslady@msn.com to Kimberly Sandifer akaKmichael-S andifer@hudoi g. gov identifi ed bySubject Lite"#l of 5 more Duplication ofBenefits Files" aniJ- attaching Charles LaForce.pdf
E-mail transmission from Janey Galbraith akagrantslady@msn.com to Kimberly Sandifer akaKmichael-Sandifer@hudoig. gov identified bySubject Line"#l of 5 more Duplication ofB enefits File s " artd attaching Chandra Kim. pdf
11 8-20-10 E-mail transmission from Janey Galbraith akagrantslad)'@msn.com to Kimberly Sandifer akaKmichael- Sandifer@hudoi g. gov identifi ed bySubject line and attaching Allen LaForce.pdf
A11 in violation of Title 18 of the United States Code" Sections 1343 and 1349.
FgRFEITURE NOTICE
The allegations of Counts Three through Six are hereby realleged and incorporated by
reference for the purposes of alleging forfeitures pursuant to provisions of Title 18, United States
Code, Section 982 (a) (1).
Upon conviction of the aforesaid violations of Title 18, United States Code, Sections
1956 (a) (1), defendants STANLEY MARSHALL WRIGHT and MARY L. WRIGHT aka
MARY W. STRACHAN aka MARY W. COOK shall forfeit to the United States any right,
11
title, and interest they may have in any property, real or personal, wherever located and in
whatever rutmes held, involved in said violation, or any property traceable to such property,
pursuant to Title 18, United States Code, Section 9S2 (a) (1).
Such forfeiture shall include, but is not limited to the following property:
(A) $27,249.00
A TRUE BILL
f-offireo $hArrs cnaNp runySOUTHERN DISTzuCT OF ALABAMA
KENYEN R. BROWNUNITED STATES ATTORNEYBy:
z_Maria E.Assistant
MurphyUnited States Attorney
NOVEMBER 2011Chief. Criminal Divrsron
12