Former Clay County School Superintendent Sentenced 293 Months for Racketeering and Money Laundering Conspiracies

FRANKFORT, KY—A man considered to be one of the most powerful individuals in Clay County was sentenced today to 293 months in prison for helping lead a criminal enterprise that made millions of dollars and controlled the politics in the county.

U.S. District Court Judge Danny C. Reeves sentenced 59-year-old Douglas C. Adams, the former Clay County School Superintendent, for conspiring with a former circuit court judge and other county officials in schemes that involved racketeering and money laundering.

Stephen Smith, a prosecutor with the U.S. Attorney’s Office, said that Adams abused his trust as school superintendent.

“He abandoned his duty to take care of children to join a criminal enterprise,” said Smith.

Last March, a jury convicted Adams and seven of his co-defendants for their roles in the above mentioned schemes. The jury also found that the eight men were jointly liable for $3.4 million that represented the salaries and contracts they were able to get as a result of the conspiracies.

Smith also added at sentencing that Adams recruited other members from the school board to join the conspiracies and used his power to bribe others to get prominent jobs in the county for individuals who cooperated with the conspiracies.

Prosecutors described Adams as a political boss and a conspiracy leader in the county who used his influence over others to corrupt the election process in the county. His criminal actions helped the Clay County board of elections control the outcomes of the primary and general elections for the years 2002, 2004, and 2006; As a result, the enterprise gained power and authority over the county’s politics.

Smith said Adams solicited bribe money from candidates for city and county offices. He told the candidates that they had to contribute money to the enterprise in order to get elected. In 2004, he told one city councilman that the councilman had to pay $1,000 to the enterprise in order to win the election.

Testimony proved that he also bribed other county residents to join the criminal scheme. In one instance, he promised an individual that drug charges against him would be dropped if he joined the enterprise.

Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky; Elizabeth A. Fries, Special Agent in Charge of FBI; and Christopher R. Pikelis, Special Agent in Charge, Internal Revenue Service jointly made the announcement today after the sentencing.

The investigation was conducted by the FBI and the IRS. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorneys Stephen Smith and Jason Parman.