Roy Dixon Indicted for Embezzling More Than $3 Million from Detroit and Pontiac Pension Funds and for Bribing Public Officials
|U.S. Attorney’s Office December 07, 2012|
An Atlanta man was charged in an indictment, unsealed today, with defrauding and embezzling more than $3 million from the two city of Detroit pension funds and a city of Pontiac pension fund U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Robert D. Foley, III, Special Agent in Charge, Federal Bureau of Investigation, Detroit Division.
McQuade announced that Roy Dixon also was charged with conspiring with former city of Detroit Treasurer Jeffrey Beasley to give Beasley and others bribes to obtain approval of Dixon’s requests for investment money from pension funds. Dixon was added as a defendant in a superseding indictment that had charged Beasley with conspiring with others to enrich himself and his co-conspirators by accepting bribes in return for approving investment requests to the Detroit pension funds. The superseding indictment also adds a new charge against Beasley for taking a bribe from Dixon.
According to the 13-count second superseding indictment, between January 2006 and September 2008, defendant Dixon conspired with Beasley and other individuals to defraud current and retired city of Detroit employees of their right to the honest services of Beasley. In 2006 and 2007, Dixon’s company, Onyx Capital Advisers, received approval to invest $25 million from the General Retirement System, the Police and Fire Retirement System of the City of Detroit, and the General Employees Retirement System of the City of Pontiac. Subsequently, the three pension funds suffered a total loss of $23.8 million.
The superseding indictment alleges that Beasley and his co-conspirators demanded and accepted bribes and kickbacks from Dixon and others. Beasley received more than $100,000 from Dixon and others having business before the two pension funds. Beasley and others also demanded contributions to the Kilpatrick Civic Fund in exchange for approval of their investment requests from the pension funds. Dixon and his business partner contributed $45,000 to the Civic Fund.
Dixon is also charged with conspiring with a business partner to commit wire fraud by deceiving three pension funds into giving him millions of dollars and then embezzling more than $3 million and bribing another Detroit city official with $15,000 cash in exchange for support for a real estate investment in the Turks & Caicos Islands.
Dixon is also charged with bribing Beasley by paying for a vacation for Beasley and his family in the Turks & Caicos Islands. Dixon is charged with wire fraud for submitting a forged letter to the Pontiac pension board to convince the trustees to release money to Dixon’s company and for using pension money to pay part of the cost of building his $8 million, 12,000-square foot home in Atlanta.
The indictment adds a charge against Beasley for taking a bribe from Dixon in the form of the family vacation. Beasley is also charged with five counts of extortion. He demanded $10,000 from persons doing business with the two pension funds at a “birthday party” in his honor. He demanded $250,000 from the owner of an investment company in exchange for support of $44 million in investment monies. He demanded and received $20,000 from Marc Andre Cunningham, an aid to former Mayor Kwame Kilpatrick, who acted as a consultant for a communications company that received $30 million from the two pension funds. Beasley and his co-conspirators demanded and received trips, private plane flights, and entertainment from an investment manager of the Police and Fire Retirement System, who managed $150 million in properties.
FBI Special Agent in Charge Foley said, “The embezzlement of funds and bribing of public officials robs citizens of honest government and retirees and beneficiaries of what they earned. The FBI-led Detroit Area Public Corruption Task Force is committed to ensuring those who commit these crimes face severe consequences.”
U.S. Attorney McQuade said, “The municipal employees and retirees in Detroit and Pontiac are entitled to pension trustees and investment sponsors who make investment decisions without being influenced by bribes, kickbacks, or embezzlement.”
Upon conviction, Dixon faces up to 20 years in prison and a fine of up to $250,000. The indictment seeks $3 million in forfeiture. An indictment is only a charge, and the defendants are presumed innocent unless convicted at trial.
The case was investigated by agents of the FBI. It is being prosecuted by Assistant U.S. Attorneys Robert Cares and David A. Gardey.