Home Birmingham Press Releases 2009 Former City Councilman and County Commissioner Katopodis Convicted of Looting Charity Coffers
Info
This is archived material from the Federal Bureau of Investigation (FBI) website. It may contain outdated information and links may no longer function.

Former City Councilman and County Commissioner Katopodis Convicted of Looting Charity Coffers

U.S. Attorney’s Office July 01, 2009
  • Northern District of Alabama (205) 244-2001

BIRMINGHAM, AL—Joyce White Vance, United States Attorney for the Northern District of Alabama, Charles E. Regan, Acting Special Agent in Charge, Federal Bureau of Investigation, and Reginael McDaniel, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, announce that a federal jury returned a verdict finding GREGORY JOHN KATOPODIS guilty on 97 counts of mail and wire fraud in connection with his scheme to defraud and steal over $162,000 from Jefferson County and from Computer Help for Kids (CHK), a Jefferson County based charity.

“This verdict is especially appropriate and just given the egregious nature of the defendant’s crimes. To steal money intended to help disadvantaged children have a better future is inexcusable under any circumstances and deserves the full measure of justice,” said United States Attorney Joyce White Vance. “To those public servants that have committed crimes or are thinking about doing so, let this serve as notice to those that abuse the public trust that these cases will continue to be aggressively prosecuted by the United States Attorney’s Office.”

“We are pleased with verdict rendered by the Jury this afternoon. The theft of public funds are always reprehensible however, the actions of Mr. Katopodis were particularly abhorrent given that he stole from a children’s charity for his own personal gain,” stated Charles E. Regan, Acting Special Agent in Charge, Federal Bureau of Investigation.

Evidence proved that KATOPODIS, who was a member of the Birmingham City Council in the 1970s and the Jefferson County Commission in the 1980s, was involved in founding CHK and controlled its finances and bank account. CHK’s mission was to repair used computers donated by area businesses and distribute them to poor, needy, and disadvantaged children of Jefferson County, Alabama, to increase access to technology. From 2002 through 2007, the majority of CHK’s funding came from the Jefferson County Commission and totaled $815,000. During that time, KATOPODIS was the only signatory on the CHK bank account. He refused others associated with CHK access to those records to hide his theft of the charity’s money.

Evidence further proved that KATOPODIS caused Jefferson County to issue checks to CHK by making misrepresentations and promises about how the taxpayer’s money was being and would be used. KATOPODIS then went about spending a large portion of the charity’s money for personal expenditures. For instance, he caused approximately $24,000 of CHK’s money to be mailed and wired to Fleet Boston Bank in Massachusetts, into the bank account of Council for Cooperating Governments, an account that he also controlled and used to make personal purchases. KATOPODIS also used CHK’s debit card at casinos in Louisiana and Mississippi, and to withdraw cash from ATMs in various cities. The evidence also showed that he transferred money from CHK’s checking account into his personal checking account to pay personal credit card charges, and to pay for airline tickets and travel expenses for himself and for friends on trips to Cairo, Egypt and Nassau, Bahamas.

KATOPODIS faces a maximum sentence of 20 years in prison and a fine of $250,000 for each count. KATOPODIS agreed that the amount of forfeiture due the United States is $162,910.91. Following the return of the verdict, the court revoked Katopodis’ bond and remanded him into custody. He is scheduled to be sentenced on October 28, 2009 at 2:00 p.m.

This case was investigated by Special Agents of the Federal Bureau of Investigation and the Internal Revenue Service, and was prosecuted by Assistant United States Attorneys George A. Martin and Scarlett M. Singleton.

This content has been reproduced from its original source.