Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, October 6, 1993 TAG: 9310060073
SECTION: NATIONAL/INTERNATIONAL PAGE: A-8 EDITION: METRO
SOURCE: Associated Press
DATELINE: WASHINGTON LENGTH: Medium
Documents filed in U.S. District Court said Jack Russ embezzled $75,300 from the House bank by cashing 17 checks there that he knew were written on insufficient funds.
The department said Russ will plead guilty to embezzlement by a custodian of public funds, wire fraud and making a false statement. The wire fraud count charged Russ with defrauding investors in a company he owned. The false statement involved Russ' filing of a false financial disclosure statement.
Russ' attorney, Paul Knight, confirmed the government's announcement and said, "Jack has admitted everything. . . . He's not running from anything."
Hundreds of present and former lawmakers were implicated in the scandal, in which House members routinely cashed checks at the House bank without sufficient funds in their accounts to cover them over a 39-month period ending in October 1991.
Most have been cleared of any legal wrongdoing, but the political fallout was more severe than the legal repercussions. Some lawmakers lost re-election bids when their check-writing became an issue, while others decided to retire rather than have to face the voters.
"The investigating is continuing," said Justice Department spokesman John Russell, adding that the probe is being carried out by a special team of prosecutors.
Investigators originally checked overdrafts of 329 account holders at the bank, and Associated Press surveys have shown that all but a handful received Justice Department letters clearing them of wrongdoing.
by CNB