Dallas Mayor Pro Tem Dwaine Caraway pleaded guilty to conspiracy and tax evasion and resigned from the Dallas City Council this morning (Aug. 9). The U.S. attorney in charge of the investigation called it a “scheme to defraud” taxpayers and the U.S. government.
Caraway asked for and received payments in connection to Dallas County Schools’ red light camera scandal that led to voters closing Dallas County Schools after the agency incurred what the U.S. attorney who investigated the case called “an intolerable level of debt.” The agency closed last week.
Up to $3.5 million in payments were made.
Payments from the company selling the cameras were made from a pass-through entity. Caraway received payments through a shell company. He also set up a sham consulting company. Some of the checks were made out to cash and cashed in a liquor store.
Sentencing will take place on Dec. 14. The U.S. attorney recommended 84 months (seven years) in prison.
The U.S. attorney said the investigation is continuing but wouldn’t say if other people at Dallas County Schools were part of that investigation.
— David Taffet