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SOUTHEAST TEXAS RECORD

Thursday, November 21, 2024

Stockman’s fraud case keeping U.S. District Court docket busy

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HOUSTON – The New Year promises to be a busy one for the Houston Division of the Southern District of Texas with a docket that includes pending cases against a former Texas lawmaker and two of his aides.

In 2017, a federal grand jury passed down an indictment against former U.S. Rep. Steve Stockman alleging that he fraudulently secured $1.25 million in donations and used funds intended for charity to finance his political campaigns, Politico previously reported.

In addition to Stockman, two of his aides – special projects director Jason Posey and special assistant Thomas Dodd – were charged in connection with the case, though both aides have since entered guilty pleas and have said they will cooperate with the prosecution.  

In the purported scheme, Stockman allegedly used Nevada-based Life Without Limits to collect charitable donations. He allegedly used most of the money for personal expenses and directed some of the remaining funds to his campaign through third parties.

A federal grand jury in March 2017 handed down an indictment against Stockman on 28 charges in connection with his role in the scheme with Posey and Dodd. He pleaded not guilty and his trial is slated to begin Jan. 29.

Posey in July 2017 filed an unopposed motion to certify the case as complex, which the court granted.

According to the U.S. Department of Justice, Posey then pleaded guilty in October 2017 before Chief U.S. District Judge Lee Rosenthal to one count each of wire fraud, mail fraud and money laundering.

Posey’s plea came after Dodd had pleaded guilty March 20 to two conspiracy charges and agreed to cooperate with prosecutors.

Posey is scheduled to be sentenced on March 29 and could "face up to 45 years in federal prison and a fine of more than $4.8 million plus hundreds of thousands of dollars in restitution," the Washington Examiner reported.

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