Developers Sentenced in City Hall Scandal

Developer Brian Potashnik received a sentence of 14 months in prison, while his wife, Cheryl received two years probation for their roles in a Dallas City Hall bibery scandal.

Cheryl Potashnik admitted making payments to former State Representative Terri Hodge who was convicted and sentenced to prison time earlier.

Lynn said that Cheryl Potashnik deserved credit for pleading guilty early in the case and accepting responsibility for her actions.

Supporters of the Potashniks were at the federal courthouse today for the sentencing, including tenants of the affordable apartment complexes that their company built.

Rival developer Bill Fisher was also at the courthouse. He wore a wire for the FBI and gathered evidence that helped build the case against public officials who received bribes from Brian Potashnik in return for their support of his projects.

Fisher is seeking $1.8 million restitution from Potashnik in return for alleged losses he suffered from the conspiracy. (Editor's Note: Earlier stated figure in restitution amount was in error. Correct amount is $1.8 million.)

Judge Lynn ruled that Fisher and his company are not entitled to restitution under the law but she thanked Fisher for his role in bringing justice.

The judge wants to divert the profit from two Potashnik projects in the amount of $1.25 million to the City of Dallas.

Brian Potashnik had made a plea agreement with the government in 2009 that called for a maximum prison sentence of three and a half years.

The judge did not accept the deal because she wanted to insert the forfeiture of profits from the projects covered in the bribery scheme.

Former Dallas City Councilman Don Hill, his wife Sheila and former Dallas Plan Commissioner D'Angelo Lee are serving prison sentences in the case. Hill recieved an 18-year sentence and is at a Federal prison in Ashland, Kentucky while his wife received nine years in Marianna, Florida.

Judge Lynn told Brian Potashnik that probation would be insufficient given the seriousness of his crimes.

She ordered the forfeiture and reduced the prison term from the plea agreement given evidence of Brian Potashnik's service to the community.

One defendant remains to be sentenced in the case, businessman Ron Slovacek.

Potashnik must surrender on Jan. 11.

See the complete statement from the Department of Justice here.

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