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untanglingwebs
El Supremo
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Rizzo eventually pleaded guilty to two state offenses: misdemeanor insurance fraud for allowing
his friend to drive off in his Corvette and then falsely reporting it stolen, and for paying an illegal bribe
to Burton Mayor, Charles Smiley |
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Sat Jun 09, 2018 8:39 am |
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untanglingwebs
El Supremo
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No. 07-2278 United States v. Abbey Page 3
The government did not introduce any evidence establishing that, when the lot
was transferred, Rizzo and Abbey had an express agreement for a specific official act to
be done in return for Rizzo’s gift. The government did assert, however, that Abbey used
his influence and position to assist Rizzo with several land developments, including one
in particular—Pebble Creek. The government also produced evidence that, roughly a
year after the free lot transfer, Abbey proposed that the City issue municipal bonds to
finance Pebble Creek’s development. At that time, though Rizzo had already contracted
to purchase Pebble Creek, the title change had not yet become public. And, despite the
fact that the sale was already final, it was the seller—and not Rizzo—that publicly
petitioned for a municipal bond issue. After financing was agreed upon but without a
formal bidding process, Rizzo was named general contractor to develop Pebble Creek
(even though he owned it). The government characterized this arrangement as the City
of Burton paying Rizzo with municipal bond financing to develop his own property.
An initial contracting fee was agreed upon but Rizzo protested. In response,
officials substantially increased Rizzo’s fee after he met with city officials, including
Abbey. Thus, in 2003, Rizzo received an initial payment of $199,222.14 and, six months
later, another payment of $124,166.93. The City characterized this latter fee as
“Overhead and Profit” on the Pebble Creek project. Rizzo was allowed to handle the
improvements and contracting as he wished and to submit his invoice at the end, rather
than up front. |
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Sat Jun 09, 2018 8:41 am |
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untanglingwebs
El Supremo
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The jury found Abbey guilty of conspiracy to bribe a public official under
18 U.S.C. § 666(a)(2), solicitation of a bribe by a public official under 18 U.S.C.
§ 666(a)(1)(B), and extortion under color of right under the Hobbs Act, 18 U.S.C.
§ 1951. He was sentenced to fifteen months in prison, and now appeals. He remains free on bond |
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Sat Jun 09, 2018 8:43 am |
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