06/13/02

William S. Duffey, Jr., United States Attorney for the Northern District of Georgia; Theodore Jackson, Special Agent in Charge, Federal Bureau of Investigation; and Andre Martin, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, today announced that JONATHAN B. DODD, former Director of the Bureau of Motor Transport Services for the City of Atlanta, 40, of Atlanta, Georgia, pled guilty today to embezzling hundreds of thousands of dollars from the City and filing a false tax return that failed to report the embezzled funds as income. According to Duffey:

At the plea hearing today, the government stated that DODD embezzled in excess of $400,000 from late 1999 through February, 2002. According to the evidence presented at the plea hearing, DODD used this money to enrich himself and to entertain his employees and supervisors. For example, DODD used the embezzled money to renovate and build houses; purchase professional basketball season tickets at a cost of more than $17,000; buy jewelry, clothes and furniture; and pay for his wedding and honeymoon in Hawaii.

DODD diverted City of Atlanta money in various ways. His scheme depended upon his access to and control over savings and checking accounts that were maintained by the Bureau of Motor Transport Services (BMTS). The purpose of the savings account was to hold proceeds from the vending machines used by bureau employees until such time as those funds were needed to pay for office parties or to send flowers to an ill colleague. The purpose of the checking account was to hold a limited amount of petty cash to cover miscellaneous expenses incurred by the bureau. Neither account should have contained more than $500 at any one time. DODD's position as the Director of the Bureau, gave him control over deposits and withdrawals from the accounts.

Beginning in 2000, the City of Atlanta had agreements to sell fuel to certain third parties. Payments for the purchase of this fuel were made by check, and the checks were delivered to DODD. Rather than depositing the fuel payment checks into the City's general fund, DODD diverted these payment checks, which totaled more than $370,000, by causing them to be deposited into the Bureau's savings and checking accounts.

DODD similarly diverted other payment checks, totaling more than $100,000, that the Bureau of Motor Transport received for the sale of scrap metal and waste oil to private companies.

Finally, DODD used his position as Director of the Bureau to cause the City's Finance Department to issue checks made payable to the "BMTS Employee Fund", totaling approximately $84,000. DODD submitted disbursement requests to the Finance Department falsely claiming that the BMTS Employee Fund was entitled to reimbursement for having purchased supplies, parts and equipment for the Bureau. After the checks were issued by the Finance Department, DODD caused them to be deposited into the Bureau's checking and savings accounts. Once each check was diverted and deposited into the savings and checking accounts that DODD controlled, DODD treated most of the money as his own by making cash withdrawals and using a debit card, spending as much as $40,000 a month on personal expenses.

During the year 2001, DODD embezzled approximately $300,000 from the City. When he filed his tax return on or about April 1, 2002, however, DODD failed to report any of this stolen money as income on his tax return. Specifically, DODD falsely stated that his total income during the year 2001 was $78,412, when he knew that the truth was that his total income for that year was at least $370,000.

According to Duffey, "This case evidences a strong and cooperative relationship between federal law enforcement and Mayor Franklin's administration. Mr. Dodd's guilty plea was a direct result of this relationship. Mayor Franklin directed her law department to investigate allegations of Mr. Dodd's embezzlement. The law department immediately provided to our office the evidence they uncovered and have been working hand-in-hand with our office to complete the investigation. With the City's help and cooperation Mr. Dodd today was held accountable for stealing money that belonged to the citizens of Atlanta."

JONATHAN B. DODD could receive a maximum of 13 years in prison and a fine of up to $500,000. Sentencing is scheduled for August 29, 2002, at 10:30 a.m., before United States District Judge Richard W. Story.

This case was investigated by Special Agents of the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation.

Assistant United States Attorneys Daniel P. Griffin and Sally Quillian Yates are prosecuting the case.

For further information please contact William S. Duffey, Jr., United States Attorney or F. Gentry Shelnutt, Chief, Criminal Division, through Patrick Crosby, Public Affairs Officer, U.S. Attorney's Office, at (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.usdoj.gov/usao/gan.