Bernard Joseph Tully, a Former Massachusetts State Senator, Pleads Guilty to Wire Fraud

September 1, 2011

The Federal Bureau of Investigation (FBI) on August 31, 2011 released the following:

“WASHINGTON— Bernard Joseph Tully, a former Massachusetts state senator, has pleaded guilty for devising a scheme to defraud a Boston-area businessman out of approximately $18,000 by falsely representing that Tully and his co-conspirator were using the funds to bribe public officials. Unbeknownst to Tully, the businessman reported Tully’s overtures to the FBI.

The guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Carmen M. Ortiz for the District of Massachusetts and Richard DesLauriers, Special Agent in Charge of the FBI’s Boston Field Office.

Tully, 84, of Dracut, Mass., pleaded guilty yesterday before U.S. District Judge Patti B. Saris to one count of wire fraud. According to court documents, Tully formerly served as the city manager for Lowell, Mass., from approximately 1979 to 1987. Prior to serving as city manager, Tully was a state senator representing Lowell and other areas.

According to information presented at the plea hearing and in court documents, the Massachusetts Registry of Motor Vehicles (RMV) determined in early 2009 that it needed to discontinue its lease for the Lowell RMV, due to lack of funds. According to court documents, Tully became aware of the possible closure of the Lowell RMV and contacted the Boston-area businessman who owned the space where the Lowell RMV was housed. Tully told the businessman that if he paid Tully, Tully would ensure a state senator would find money in order to keep the RMV in the space owned by the businessman. Later, according to court documents, Tully again contacted the businessman and told him that he need to pay Tully so that Tully could pay the public official, otherwise the RMV would have to move out of the space.

On July 3, 2009, the RMV announced it was closing the Lowell office as well as other RMV offices on July 23, 2009. Tully and a co-conspirator subsequently visited the businessman and told him that he would need to pay $20,000 to keep the RMV in Lowell. The businessman agreed that he wanted the RMV to stay, and Tully said he would start making telephone calls while his co-conspirator said he would talk to the public official.

On July 15, 2009, the businessman gave the co-conspirator a $5,000 check, which the co-conspirator cashed and gave a portion of the funds to Tully. On July 17, 2009, the businessman received a 90-day extension on the lease from the RMV to Oct. 31, 2009.

Thereafter, according to court documents, the businessman had a series of meetings and telephone conversations with Tully and his co-conspirator about securing another lease extension from the RMV. During these conversations, Tully and his co-conspirator falsely represented to the businessman that they needed additional money to make payments to various public officials in exchange for their official acts to secure the RMV’s continued presence in the businessman’s building. Between November 2009 and March 2010, the businessman, while cooperating with the FBI, paid Tully and the co-conspirator approximately $18,000 as bribe payments designed to secure the official assistance of various public officials.

In fact, Tully and his co-conspirator never paid any money to any public officials. According to court documents, Tully admitted in a May 2010 interview with FBI agents that he received approximately $12,000 in cash and checks from the businessman, and that he split the money with his co-conspirator. Tully also admitted that he had heard about the RMV’s plan to move the Lowell office out of the businessman’s office building from people who worked in the office, and that the businessman had contacted him for assistance. Tully admitted that he spoke with friends of friends of the Lowell legislative delegation about obtaining a lease extension and preventing the move of the Lowell RMV.

Tully admitted that he told the businessman that he was “throwing money around” at elected officials, but in actuality he did not. He admitted that he did this to give the businessman the impression that he, Tully, was influencing the legislative delegation.

Sentencing is scheduled for Dec. 1, 2011, at 3:00 p.m. According to the plea agreement, the government has agreed not to seek punishment beyond home confinement, 36 months of supervised release, a fine to be calculated under the U.S. Sentencing Guidelines and restitution of $18,000.

The case was investigated by the FBI, with assistance from the Massachusetts Inspector General’s Office and the Lowell Police Department. It is being prosecuted by Senior Litigation Counsel William M. Welch II and Kevin Driscoll of the Criminal Division’s Public Integrity Section, with assistance from the U.S. Attorney’s Office, Public Corruption Unit.”

To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

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Paul Conrad Ward, Jr., a California Lawyer, Receives 21-Month Prison Sentence for Defrauding New Mexico Investor

July 6, 2011

The U.S. Attorneys Office District of New Mexico on July 5, 2011 released the following:

“ALBUQUERQUE—United States Attorney Kenneth J. Gonzales announced that, on July 1, 2011 in federal court in Albuquerque, Paul Conrad Ward, Jr., 63, was sentenced to a 21-month term of imprisonment to be followed by three years of supervised release for his wire fraud conviction. Ward, a lawyer who resides in La Jolla, California, also was ordered to pay $530,000 in restitution to the victim of his fraud. At his sentencing hearing, Ward tendered a $200,000 check that will be applied to his restitution bill; he is required to pay the balance within a year of his release from prison. Ward was ordered to self-surrender to a federal correctional facility to be designated by the U.S. Bureau of Prisons within 60 days.

Ward was indicted on August 10, 2010 and charged with devising a scheme to defraud an investor in New Mexico (the Victim) under false pretenses. According to the indictment, which was superseded on February 24, 2011, Ward perpetrated his fraudulent activity between December 11, 2006 through August 20, 2008 by inducing the Victim to give $500,000 to a business entity controlled by Ward, purportedly to be invested in an overseas trading program. However, instead of investing the money as promised, Ward used the $500,000.00 for his own personal use and that of others.

Ward entered a guilty plea to Count 1 of the six-count superseding indictment on March 31, 2011. In his plea agreement, Ward admitted soliciting and accepting $500,000.00 from the Victim under false pretenses. He further admitted that he did not invest the money as promised, but instead spent almost all of the money for his own personal use and the use of others in less than three weeks. Under the terms of the plea agreement, the remaining five counts of the indictment were dismissed after Ward was sentenced.

The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney George C. Kraehe.”

To find additional federal criminal news, please read The Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

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