Former Four-Term Dallas City Councilman Guilty of Tax Evasion Involving Bribery Case

DALLAS

A four-term Dallas City Councilman Larry Duncan, a former president of Dallas County Schools’ Board of Trustees, plead guilty Monday to one count of tax evasion, according to federal authorities.

The charge stems from the federal investigation into the Dallas County Schools bribery scandal, which has now claimed its fifth conviction.

Robert Leonard (left), CEO of Force Multiplier, and Larry Duncan, former president of the board of trustees for the Dallas County Schools bus agency, at a social gathering. (Photo: Dallas News)

Duncan is facing up to a year in federal prison. In his plea agreement, Duncan agreed to reimburse the government for its tax loss, according to officials.

According to plea papers, between 2012 and 2016, Duncan, 72, accepted nearly a quarter of a million dollars in campaign contributions from Force Multiplier Solutions president Robert Leonard, who happened to be pursuing lucrative stop-arm camera contracts with Dallas County Schools.

Instead of puttingLeonard’s money towards legitimate campaign expenses associated with his Dallas County School re-election bid, Duncan used at least $184,726.03 for personal benefit, taking out cash withdrawals, passing on money to his wife, and even using funds to pay car-related expenses, according to officials.

He then failed to disclose the money he diverted from the campaign on his tax returns, hiding the income from the IRS.

“Today marks another important step in our ongoing commitment to expose public corruption,” said U.S. Attorney Erin Nealy Cox. “Those who seek to capitalize on positions of power undermine public trust in the very system they are meant to serve. And that is something we cannot abide.”

“Being a public official comes with its share of rewards and responsibilities; part of those responsibilities is to report all of your taxable income and pay your taxes. Deliberate failure to do so is a serious matter, and IRS Criminal Investigation is dedicated to ensuring everyone is properly reporting and paying in accordance with the tax laws,” said Tamera Cantu, Special Agent-in-Charge of the IRS Criminal Investigation Division’s Dallas Field Office.

Duncan’s campaign contributor, Leonard, along with former Mayor Pro Tem Dwaine Caraway, pleaded guilty in August to conspiracy to commit honest services wire fraud, after the County School investigation revealed that Leonard had funneled over $3 million in bribes to Caraway and Dallas County Schools Superintendent Ricky Sorrells.

Sorrells plead guilty in April to conspiracy to commit honest services wire fraud. Another defendant, Slater Swartwood, who operated the shell companies used to conceal the bribes, admitted in December 2017 to conspiring to launder money.

Dallas County Schools, an agency that collected property taxes to fund its fleet of around 2,000 buses, had about $103 million in debt.