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Justice News

Department of Justice
U.S. Attorney’s Office
Western District of New York

FOR IMMEDIATE RELEASE
Tuesday, January 22, 2013

Former Niagara Falls Building Commissioner Pleads Guilty to Corruption Charge

BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that
Guy A. Bax, 66, of Niagara Falls, N.Y., pleaded guilty before U.S. District Judge Richard
J. Arcara, to corruptly accepting gratuities in connection with his role as the Building
Commissioner for the City of Niagara Falls. The charge carries a maximum penalty of 10
years in prison, a fine of $250,000 or both.

First Assistant U.S. Attorney James P. Kennedy, Jr., who is handling the case,
stated that between 2007 and early 2009, the defendant, in his capacity as Acting Building
Commissioner for the City of Niagara Falls, routinely recommended and promoted John
Gross and his company, David Gross Contracting, to individuals and entities seeking
permits and approvals from the city. Bax also created a perception that it would be in the
best interest of those seeking permits from the City to use Gross and his company and if
they did so, they would have an easier time obtaining the approvals they sought. In
exchange for, and as a reward for Bax's practice of steering business to John Gross and
David Gross Contracting, the defendant received, at no cost, various items of value from
John Gross and David Gross Contracting. The items included home repairs and
maintenance services at Bax's personal residence, such as the remodeling of his bathroom
and plowing of his driveway, an expense paid trip, free golf outings, and other benefits.

"As we have said in the past, this Office intends to root out public
corruption wherever it occurs," said U.S. Attorney Hochul. "Every person or business is
entitled to a level playing field when it comes to dealings with Government officials.
Public employees, for their part, may not illegally or personally benefit from their
position. While instances of public corruption are fortunately rare in Western New York,
such will be treated firmly and decisively when they come to our attention."

John Gross was sentenced to 33 months in prison in January 2012 for mail fraud
and filing a false tax return.

The plea is the culmination of an investigation on the part of Special Agents of the
Federal Bureau of Investigation, under the direction of Christopher M. Piehota, Special
Agent-in-Charge, Buffalo, Division, and the Internal Revenue Service, Criminal
Investigation Division, under the direction of Toni Weinrauch, Special Agent-in-Charge.

Sentencing is scheduled for May 10, 2013, at 12:30 p.m. before Judge Arcara.