Jesse Jr. and Sandi Jackson arriving in federal court in Washington today.
Former U.S. Rep. Jesse Jackson Jr. pleaded guilty this morning to conspiring with his wife, former Ald. Sandi Jackson, to siphon about $750,000 in federal campaign funds for the couple’s personal use, and could face years in prison.
Sandi Jackson was scheduled to plead guilty this afternoon to a single charge of tax fraud tied to the same allegations that the couple repeatedly tapped the ex-congressman’s campaign fund, used the money for personal use and then made fraudulent campaign and tax disclosures to cover up the misconduct.
Documents filed with Jackson Jr.'s plea agreement state that in January 2006, Jackson Jr. personally opened a bank account under the name “Jesse Jackson Jr. for Congress," and the following year withdrew $43,350 he used to buy a gold Rolex watch.
Between 2007 and 2011, he withdrew more than $14,000 to pay down personal credit cards, prosecutors stated. Between 2005 and April 2012, he was using campaign funds to fund a life of luxury, according to the documents.
“These expenditures included high-end electronic items, collector’s items, clothing, food and supplies for daily consumption, movie tickets, health clud dues, personal travel, and personal dining expenses,” the court filing states.
Items paid with a campaign credit card included more than $4,000 on a cruise and $243 at a Build-a-Bear workshop.
“Records from Best Buy reveal that defendant purchased multiple flat-screen televisions, multiple Blu-Ray DVD players, numerous DVD’s for his Washington, D.C. home,” the records state.
As part of the plea deal with Jackson Jr., the parties have agreed that sentencing guidelines in the case call for a term of between 46 and 57 months in prison, but the sides reserved the right to argue for a sentence above or below that range for him when he is sentenced June 28.
After his release from an expected prison term, he might face three additional years of supervised release, or probation.
Also under the guideline range agreed to by Jackson Jr. and lawyers on both sides, what had been a maximum fine of $250,000 drops to one in the range of $10,000 to $100,000. In addition, he remains subject to a forfeiture of $750,000.
After entering the courtroom this morning, Jackson Jr. gave his wife Sandi a peck on the cheek and took his seat. He spoke softly during the hearing and sometimes dabbed his eyes with a tissue.
When asked by Wilkins how he would plead, Jackson answered: “I am guilty, your honor.”
Asked to sum up his conduct, Jackson acknowledged misusing campaign funds. “I used money I shouldn’t have. . .for personal purposes, and I acknowledge that,” he told the judge.
Pressed by the judge on whether he was freely entering the plea, the former congressman acknowledged he had been under psychiatric care but said he had not been treated for addiction to alcohol or narcotics.
Asked whether he understood what was happening, he answered, "Sir, I've never been more clear in my life."
The judge said Jackson could be released before sentencing and ordered him to be processed by the U.S. Marshal's Service, surrender his passport and undergo drug testing while awaiting sentencing.
His attorney asked if Jackson Jr. could be allowed to travel back and forth from Chicago, saying he essentially lived in both places, and the judge agreed.
Before the 55-minute hearing began, Jackson Jr. stepped from the defense table and shook hands with a lead FBI agent in the case, Tim Thibault, who was seated with government prosecutors.
Leaving the courtroom, Jackson Jr. told a reporter, "Tell everybody back home I'm sorry I let 'em down, OK?"
At a press conference following the hearing, Jackson Jr. attorney Reid Weingarten said Jackson's health problems contributed to his crimes.
"It turns out that Jesse has serious health issues," he said. "Those health issues are directly related to his present predicament. That's not an excuse, that's just a fact."
Jackson entered the anticipated plea in Act One of a two-part drama playing out in federal court not far from the House chamber where he served. Act Two is on tap this afternoon, when his wife, former Chicago Ald. Sandi Jackson, is expected to plead guilty to filing false tax returns.
Jackson Jr. entered a negotiated plea of guilty on one felony count of conspiracy to commit false statements, wire fraud and mail fraud. Prosecutors say he spent campaign contributions to buy luxury items, memorabilia and other goods.
As the Jacksons arrived at federal court in Washington, D.C. this morning, neither responded to questions from reporters. The two stepped out of a black SUV, and Sandi Jackson walked ahead of her husband, carrying a satchel. Jackson Jr. looked up when reporters shouted questions but said nothing and looked down as he went into the building.
Minutes later, his father, the Rev. Jesse Jackson Sr., and other family members walked through the front entrance of the courthouse, their arms linked together.
Jackson Jr., who resigned three months ago after 17 years in Congress, entered the plea before U.S. District Court Judge Robert Wilkins. Jackson Jr. was represented by three Washington lawyers: Brian Heberlig, Reid Weingarten and William Drake.
The U.S. attorney’s office in D.C., which handled the case, plans to hold a news conference this afternoon after both hearings are over.
Attorneys familiar with public corruption investigations said the amount of campaign cash that prosecutors said was converted to personal use in this case is the largest of any that they can remember.
Jackson Jr., 47, was in the House of Representatives for 17 years until he resigned last November. Sandi Jackson, 49, was a Chicago alderman from 2007 until she stepped down in January. Both are Democrats.
Jackson Jr. began a mysterious medical leave of absence last June for what was eventually described as bipolar disorder. Though he did not campaign for re-election, he won another term last Nov. 6 while being treated at the Mayo Clinic in Minnesota. He left office two weeks later, saying he was cooperating with federal investigators.
Married for more than 20 years, the Jacksons have a 12-year-old daughter and a 9-year-old son. The family has homes in Washington and on Chicago’s South Side.
Washington defense attorney Stan Brand, the former general counsel of the House of Representatives, said Tuesday that Jackson Jr.’s case involved the largest sum of money he’s seen in a case involving personal use of campaign money.
“Historically, there have been members of Congress who either inadvertently or maybe purposefully, but not to this magnitude, used campaign funds inappropriately,” he said.
Brand said that when the dollar figure involved is low, a lawmaker may be fined and ordered to reimburse the money. “This is so large, the Department of Justice decided to make his case criminal,” he said.
Earlier this morning, Judge Wilkins disclosed that he had a past link to Jackson Jr.’s father. But both prosecutors and the Jackson defense waived any attempt to transfer the case, the judge noted in a court memorandum.
Wilkins wrote that he has no interest or bias in the case, but disclosed the following:
“In 1988, while a law student, Judge Wilkins served as a co-chair of Harvard Law School students supporting the presidential campaign of Rev. Jesse L. Jackson, Sr., and on October 24, 1988, Judge Wilkins introduced Rev. Jackson when he came to speak at a campus event supporting the presidential candidacy of Governor Michael Dukakis. On March 21, 1999, while an attorney, Judge Wilkins appeared as a guest on a show hosted by Rev. Jackson on the CNN network entitled ‘Both Sides with Jesse Jackson’ to discuss a civil rights lawsuit in which Judge Wilkins was a plaintiff. Judge Wilkins believes that he has spoken to Rev. Jackson only on these two occasions, and he does not believe that he has ever met or spoken to the two defendants in these cases.”
kskiba@tribune.com
