Bettendorf Men Indicted in Public Corruption Case and Additional Prosecutions Unsealed

DAVENPORT, IA—On January 28, 2014, an indictment charging Robert L. Budd, Jr. (Budd), formerly of Brown Traffic Products Inc. (Brown Traffic) of Davenport, Iowa, and Robert W. Webster (Webster), a former city electrician for the city of Bettendorf, Iowa, was unsealed, announced United States Attorney Nicholas A. Klinefeldt. The 13-count indictment charges Budd and Webster with conspiracy and bribery in connection with Webster’s work at the city of Bettendorf. The city of Bettendorf, Iowa, is a government agency that has received funds under federal programs involving grants, contracts, or other forms of federal assistance in excess of $10,000 each year over the past several years and has conducted transactions with Brown Traffic in amounts exceeding $5,000.

The Budd and Webster indictment alleges that Webster received money; airfare to such places as Florida, Texas, and Nevada; tickets for racecar events and other forms of entertainment; lodging expenses for hotels and resorts in such places as Florida, Texas, Nevada, Kansas, and Illinois; meals; drinks; cigars; and golf and resort fees.

The court also unsealed two other files involving David Schiltz (Schiltz), the former CEO of Brown Traffic, and Daniel Fuchs (Fuchs), a former high-level manager and sales representative of Brown Traffic. Schiltz and Fuchs have entered guilty pleas and agreed to cooperate with the government’s investigation. Within their plea agreements, both men admitted they conspired with Budd to corruptly giveand offer to give things of value to Webster and others, acting with the intent to influence and reward Webster in connection with transactions between the city of Bettendorf and Brown Traffic for traffic control devices and services.

Budd has entered a plea of not guilty and a trial is presently scheduled for April 7, 2014. Webster is expected to appear in court later this week.

The public is reminded that an indictment is only an accusation, and the defendant is presumed innocent unless and until proven guilty.

The case is being investigated by the Federal Bureau of Investigation and is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.