Texas state Rep. Terri Hodge has pleaded guilty to lying on her tax returns in connection with the Dallas corruption case, a move that ends her longtime political career.
It is the latest chapter in a case involving affordable housing developers Brian and Cheryl Potashnik, who owned Southwest Housing in Dallas.
Under the plea agreement, Hodge, who was seeking re-election, gives up her office and agrees not to seek public office in the future. She faces a maximum of three years in prison, according to court documents.
As part of the deal, the government is dropping the remaining charges against Hodge.
Prosecutors alleged that she accepted money from the Potashniks in exchange for supporting their affordable housing developments.
According to a factual resume filed, sometime on or before Feb. 27, 2002, Hodge asked Brian Potashnik for assistance in the form of affordable housing for herself within the geographic boundaries of her district. Beginning in April 2002, the Potashniks made arrangements for her to live at one of their developments. Hodge had a rental rate of $200 per month. As reflected in the executed lease agreements, the market rate for the unit was $899 per month, and the difference was paid by the Potashniks, according to the FBI.
The total value of the rental subsidies, utilities, and new carpeting provided to Hodge from 2002 through 2005 was $32,541, according to federal officials. None of this amount was included as income on Hodge’s federal income tax returns.
Cheryl Potashnik has pleaded guilty to bribery in connection with benefits given to Hodge, and Brian Potashnik has also pleaded guilty to bribery of various public officials, said officials. They are awaiting sentencing.