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I-Team: The Fox Scandal

Reported by: Hagit Limor
Email: hlimor@wcpo.com
Last Update: 10/29 10:44 pm
CINCINNATI, Ohio -- Mike Fox rolled into the federal courtroom in a wheelchair, slowly got up and used his cane to walk past the benches toward the defendant's table in front.

It was a far cry from the halls of power in Columbus for more than 20 years, or the seat he held at the Butler County Commission for another decade, before his stint as head of Children’s Services.

The silver-haired Republican waved at familiar faces before a federal prosecutor ticked off the charges unsealed in a federal indictment Thursday –  charges that add up to more than 100 years in prison.

A federal grand jury indicted him on eight counts of mail and wire fraud, lying to a grand jury – and failing to disclose what prosecutors describe as “bribes” or “kickbacks” to the state ethics board and to the Internal Revenue Service.

Fox had been expecting the charges, as the FBI has been investigating him for three years.

It’s part of a larger investigation into public corruption in Butler County that’s brought down other high-powered officials, including former auditor Kay Rogers and the former president of Dynus Corporation, a fiber optics company that was trying to broker a deal through the county to land a multi-million dollar telecommunications contract.

Now, Federal Magistrate Judge Tim Black was reading the charges facing not only Fox,  but also prominent Republican attorney Robert Schuler from the Columbus area, son of another longtime state senator who recently passed away.

The charges boil down to this:  Prosecutors say Fox accepted money in exchange for helping facilitate a deal with a company called NORMAP Telecommunication, a company trying to do a fiber optics deal with the county.

NORMAP would later go bankrupt. Eventually Dynus Corporation would step in to take on a fiber optics system for the county, leading to other charges in the larger scandal.

How much money does the government say Fox made?

The federal indictment details $360,000 transferred in 2002 to a bank to pay off a line of credit in Fox's name.

It says another $100,000 was transferred later to a consulting company Fox owned.

There there was $300,000 in another business deal and several smaller amounts from $3,000 to $35,000 the indictment details.

Companies include a landscaping firm that got Butler County contracts. There are allegations he tipped off another contractor pre-bid in exchange for other funds.

Prosecutors say no only did he take money, but he failed to disclose that and conflicts of interest to the Ohio Ethics Commission – and failed to claim the money on his tax returns.

It’s not the first time Fox has faced ethics violations.

He apologized to the Ohio House in 1997 after accusations he accepted free plane tickets and hotels from a lobbyist.

Fox released a statement saying:  “At the advice of my lawyers, I will not comment on any specific information related to the government's allegations at this time ... I will do my best, with the limited resources that I have, to defend myself against these allegations. In my defense, I offer ‘The Truth’ and I will assert it to the best of my ability. “

Fox’s attorney, Ralph Kohnen, says after more than 30 years in public service, Fox has made some enemies, and the government is over-reaching.

“The prosecutors and FBI are believing stories that aren’t true,” Kohnen says. “Their sources of information are few and far between, so we look forward to examining those people and seeing what they have to say under the crucible of cross examination.”

Assistant U.S. Attorney Jennifer Barry said she expected the case back in court within a couple of weeks.

To her it’s a representation of the loss of public trust.

“Elected officials aren’t supposed to lie, cheat or steal while they’re elected,” said Barry. “That’s what the grand jury has found. Mr. Fox violated the public’s trust.”




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