News and Press Releases

FOR IMMEDIATE RELEASE:

WEDNESDAY - February 10, 2010

TWO DEFENDANTS SENTENCED IN PUBLIC OFFICIAL BRIBERY CASE

RALEIGH - United States Attorney George E.B. Holding announced that in federal court today United States District Judge Terrence W. Boyle sentenced DAVID LEE BRADY, 75, of Raleigh, North Carolina, and JAMES ALBERT PERRY, JR., 62, of Wake Forest, North Carolina. Each defendant received 30 months’ imprisonment followed by three years supervised release. BRADY had a fine imposed of $60,000, while PERRY had a fine imposed of $10,000.

A Federal Grand Jury returned a Criminal Indictment on November 1, 2008. On June 1, 2009, each defendant pled guilty to Count 1 of the Indictment, conspiracy to commit extortion and to corruptly give anything of value to a public official in connection with the business of a state government receiving federal funds.

PERRY, the former Mayor of Wake Forest, BRADY, a successful businessman, 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, who was then Senior Field Officer in DENR’s Legislative and Intergovernmental Affairs Office, under which Hudson agreed to use his influence to assist AEP with permit issues in exchange for the promise of payments totaling approximately $196,000. (Because Agri-Ethanol’s proposed ethanol plant never got built, the defendants only ended up paying Hudson $5,000.) Hudson has pleaded guilty to extortion and money laundering and has been sentenced to 40 months.

Mr. Holding commented, “As the 30-month prison sentence reflects, the defendants attempted to gain a commercial advantage by bribing a public official. This type of buying and selling of official action must be stopped,” He further commended the agencies adding, “This case was a model of cooperation among federal and state agencies – the FBI, the IRS-CID, and the North Carolina SBI. These agencies are to be commended for their fine work.”

SBI Director, Robin Pendergraft, stated, “This case exemplifies the ongoing cooperation between federal law enforcement, federal prosecutors and the SBI.We will continue our joint efforts to root out corruption and reinstate public trust in our government.”

"Regardless of the size of the bribe or payoff, those who servein the public's trust will be held accountable by the FBI, our law enforcement partners and, ultimately, by the people whose trust was violated," said Owen D. Harris, Special Agent in Charge of the FBI for North Carolina.

Special Agent in Charge IRS-CI, Jeannine A. Hammett stated, “When someone bribes a public official in order to use public resources for private gain, they simply must, and will, be held accountable for their misdeeds.

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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