Ex-Rhode Island Speaker Fox pleads guilty to corruption charges
Former House Speaker Gordon Fox pleaded guilty Tuesday to charges of bribery, wire fraud and filing a false tax return following an investigation that included a dramatic federal raid on the Statehouse.
Fox maintained his composure in U.S. District Court in Providence, but his voice broke when admitting to the conduct and acknowledging he'd likely lose his law license.
Outside the courthouse, Fox was asked if he feels remorse.
"Absolutely, absolutely, without question," he replied.
Fox began to cry when asked to comment on the charges. He said he could not because the case is still pending.
"I don't want to be callous to any of the people in the state of Rhode Island, any donors, including the people close to me, the people that looked up to me. My family. It's tough," he said.
Tuesday's plea brings an end to nearly a year of speculation about what the FBI, Internal Revenue Service and state police were investigating when they raided Fox's home and Statehouse office March 21, 2014.
Fox was once considered among the most powerful politicians in state politics.
Fox acknowledges he received a $52,500 bribe in cash and checks in 2008 to help grant a liquor license to a bar near Brown University when he served as vice chairman of the board of licenses for Providence. He also acknowledges making about 28 interbank transfers totaling $108,000, taking the money from his campaign account and using it for personal expenses.
Prosecutors and Fox agreed to request a three-year prison sentence.
U.S. Attorney Peter Neronha grew angry as he described what he called "political corruption amnesia" in Rhode Island.
"You can have someone who's violated the public trust, and they're back running for office again eight years later," Neronha said in an apparent reference to former Providence Mayor Buddy Cianci, who ran unsuccessfully for mayor last year after twice being convicted of felonies.
"It's in incredible privilege to serve the people," Neronha continued. "It's a privilege, not a right."
Prosecutors say the personal expenses Fox paid with campaign money included mortgage payments, car loan payments, his American Express bill and purchases at Tiffany's, Urban Outfitters, TJ Maxx, Target, Wal-Mart and Warwick Animal Hospital. They say the diverted funds represent about 15 percent of the campaign donations he received, and he overstated the account balance in campaign finance reports to hide his actions from the board of elections.
He was charged with filing false tax returns for knowingly failing to include the personal income he received from the bribe and the fraudulent transfers.
Neronha left the door open for going after the business that paid the bribe, Shark Sushi Bar & Grill, saying it was "under review."
The bar's owner, Raymond Hugh, told The Associated Press on Tuesday that he didn't know his bar was involved in the case and was accused of paying a bribe.
"That's news to me. I have no idea what's going on. We'll get to the bottom of it. I'm sure my lawyer is working on it," he said in a brief phone conversation.
Providence Mayor Jorge Elorza said his administration is investigating whether the bar's license can be legally revoked.
Fox was forced to resign his speakership after the raids, when federal agents were seen carting out boxes of evidence from his home and office at the Statehouse.
The Democrat announced he was stepping down as speaker the following day, but he finished out his term in the House, representing a neighborhood on Providence's upscale East Side. That term ended in January.
Fox's successor, current Speaker Nicholas Mattiello, said Tuesday that he was disappointed to hear about the charges and that there's no place for public corruption in the General Assembly.
In his law practice, Fox had represented businesses before the city's board of licenses and performed loan closings. He paid a $1,500 civil fine to the state ethics commission before the raids happened last year for failing to disclose more than $40,000 in loan closing work he did for a Providence economic development agency.
Fox also had a Statehouse employee doing his campaign books and acted as his own campaign treasurer, practices criticized by watchdog groups.
In June, Fox disclosed to the ethics commission that he had received a personal $10,000 loan from a registered legislative lobbyist in 2009 and had not paid it back over a period of years.
Jim Martin of the U.S. Attorney's office confirmed that Fox will be sentenced on June 11. Martin said Fox misspoke on the steps of the courthouse today when he said June 15 for his sentencingWatch entire Government Press Conference Gordon Fox - Statement of Facts