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FOR IMMEDIATE RELEASE:

TUESDAY - October 7, 2008

RALEIGH - United States Attorney George E.B. Holding announced that a Federal Grand Jury returned a sealed Criminal Indictment on October 1, 2008, charging DAVID LEE BRADY, 75, OF Raleigh, North Carolina and JAMES ALBERT PERRY, JR., 62, of Wake Forest, North Carolina with conspiring to commit extortion under the color of official right (Hobbs Act) and bribery concerning programs receiving federal funds, aiding and abetting extortion, aiding and abetting bribery. PERRY was charged individually with two counts of perjury, while BRADY was charged individually with three counts of perjury and one count of making a false statement to a federal agent. The Indictment was unsealed today.

As alleged in the Indictment, PERRY, the former Mayor of Wake Forest, BRADY, a successful business, and others formed a company named Agri-Ethanol Products LLC (AEP) for the purpose of building a $220 million ethanol production facility in Aurora, North Carolina. In order to attract the capital investment and bank financing necessary to fund this project, it was necessary to first secure the necessary permits from the North Carolina Department of Environment and Natural Resources (DENR). In order to expedite the permit process, PERRY, BRADY, and others entered into an agreement with a high-level DENR official named Boyce Hudson under which Hudson agreed to use his influence to assist AEP with permit issues in exchange for the payment of approximately $196,000. Hudson has pleaded guilty to extortion and money laundering and has been sentenced to 48 months.

For the charge of conspiring to commit extortion and bribery, in violation of Title 18, United States Code, Section 371, PERRY and BRADY each face a maximum penalty of up to five years imprisonment followed by three years supervised release and a fine of up to $250,000. As to the charge of aiding and abetting extortion under the color of official right, in violation of Title 18, United States Code, Sections 1951 and 2, each defendant faces a maximum penalty of up to 20 years imprisonment followed by three years supervised release and a fine of up to $250,000. As to the charge of aiding and abetting bribery concerning programs receiving federal funds, in violation of Title 18, United States Code, Section 666(a)(2) and 2, each man faces a maximum penalty of up to 10 years imprisonment followed by three years supervised release and a fine of up to $250,000. With regards to the charges of perjury, in violation of Title 18, United States Code, Section 1623, each man faces a maximum penalty of up to five years imprisonment followed by three years of supervised release and a fine of up to $250,000. As to the charge of making a false statement to a federal agent, in violation of Title 18, United States Code, Section 1001, BRADY faces a maximum penalty of up to five years imprisonment followed by three years of supervised release and a fine of up to $250,000. PERRY and BRADY each face the same maximum penalty as to each individual perjury charge against them.

An Indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent unless and until proven guilty in court. This Indictment does not allegel wrongdoing by anyone other than the named defendants.

Investigation of the case was conducted by the Internal Revenue Service - Criminal Investigation Division, the Federal Bureau of Investigation and the North Carolina State Bureau of Investigation. First Assistant United States Attorney John Stuart Bruce and Assistant United States Attorney Dennis Duffy served as prosecutor for the government.

 

News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release.

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