- The Washington Times - Wednesday, February 16, 2011

The 16th county resolution of 2010 was one of two items introduced before the Prince George’s County Council last March 3 in the 24 minutes between the time members reconvened from a lunch break and they adjourned their weekly session, according to a meeting agenda.

The seemingly inconsequential resolution sought council approval to spend about $7 million associated with a federal program known as the HOME Investment Partnerships Program that gives local governments money to disburse for the construction, purchase or renovation of affordable housing.

But nearly a year later, the resolution is a prominent part of an eight-count indictment announced Monday against former County Executive Jack B. Johnson that charges him with conspiracy, extortion and bribery related to the performance of his official duties, along with charges of tampering with a witness and with evidence.

In the indictment, prosecutors reference two developers who were expecting to receive federal funds from the resolution, the official name of which was CR-16-2010. The developers are not named in court papers, which list them only as Developer A and Developer B. The documents say the developers together paid hundreds of thousands of dollars to Mr. Johnson and another high-level public official.

The indictment says Mr. Johnson requested in February that County Resolution 16 be introduced, “thereby enabling Developer A’s project to receive HOME funds from the county.”

Former Prince George's County Executive Jack Johnson has pleaded not guilty to a series of charges stemming from a corruption investigation. (Associated Press)
Former Prince George’s County Executive Jack Johnson has pleaded not guilty to ... more >

The court papers do not explicitly say how much Developer A expected to receive from Council Resolution 16 but note that Developer A in May complained to Mr. Johnson “that his development project had not yet received an expected $1,700,000 in HOME funds.”

According to court papers, Developer A gave more than $200,000 to Mr. Johnson, who expected to receive at least $300,000 more from the person.

The indictment also states: “On or about April 5, 2010, defendant Jack Johnson signed County Resolution CR-16-2010, which approved the $1,000,000 in HOME funds for Developer B’s project in the County.” It goes on to say that Developer B provided an unnamed public official with a total of $30,000 from June through October. The indictment does not name the public official, who is referred to as Public Official A.

It says that “In or about September 2009, defendant Jack Johnson appointed Public Official A to serve as the Director of DHCD” — a period that would correspond with the term of James Johnson, no relation to the former county executive, as director of the Department of Housing and Community Development.

The identities of the developers remained unclear, and no additional arrests had been made as of Thursday.

Marcia Murphy, a spokeswoman for U.S. Attorney Rod J. Rosenstein, said she could not comment beyond what was in the indictment.

“The investigation is ongoing,” she said.

Council Resolution 16, posted on the county’s website, adds five projects to those receiving federal HOME Investment Partnership funds:

• The redevelopment of elderly housing units at Rainier Manor in Mount Rainier was granted $1 million in Council Resolution 16. The project was handled by Stavrou Associates. The Washington Post reported last year that N. Stephen Stavrou was one of the biggest recipients of HOME funds in the county over the past eight years and that his companies donated $1,070 to Mr. Johnson’s campaign in 2003.

A message left for Mr. Stavrou on his company phone line was returned by company Vice President Stephen Moore, who read a brief statement and declined to answer questions.

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