Federal jury finds Reksid guilty

Federal jurors reached a verdict yesterday finding a former Department of Public Lands official guilty of accepting a $3,000 bribe from an owner of a private company that obtained a federally funded contract from DPL.

Jurors reached the unanimous verdict at 9:47am, finding Franz B. Reksid, a former special assistant to the DPL secretary, guilty of bribery. The jury began deliberations Thursday afternoon. The trial of the 70-year-old Reksid started Monday.

His sentencing will be on Jan. 25, 2012 at 10am.

Bribery concerning a program receiving federal funds has a maximum sentence of 10 years imprisonment and a $250,000 fine.

Attorney Mark Hanson, counsel for Reksid, refused to comment about the verdict.

Assistant U.S. attorney Eric O’Malley prosecuted the case. U.S. District Court for the NMI visiting judge Michael Ponsor presided over the trial.

Alicia A.G. Limtiaco, U.S. Attorney for the Districts of Guam and the NMI, said in a statement yesterday that the Department of Justice and U.S. Attorney’s Office are committed to enforcing laws that protect the public’s trust and faith in the integrity of the government.

Limtiaco said ordinary citizens and community members should be able to rely on and expect government officials to exercise their duties with honesty and integrity.

“When government officials breach that public trust and violate laws, including soliciting and receiving things of value in return for being influenced in the performance of their official duties, the Department of Justice and U.S. Attorney’s Office commit to holding public officials accountable who abuse or misuse their office or misspend taxpayer dollars,” Limtiaco said.

Reksid, as then special assistant to DPL secretary, was responsible for overseeing U.S. Environmental Protection Agency grants to DPL. The grants included funding for removal and disposal of unexploded ordnance left behind from World War II in Marpi.

The indictment alleged that Reksid solicited a payment of $3,000 from John Scott, owner of the All-Hazard Management Professionals Inc. that obtained a contract with DPL. EPA’s grant funded the contract.

According to court documents, Reksid borrowed over $300,000 from friends, associates, and relatives and wired part of the money to Ivory Coast and Nigeria.

Federal agents from EPA’s Office of the Inspector General conducted the investigation. The FBI and the CNMI Office of the Public Auditor assisted in the investigation.

Reksid was on trial for only one count of bribery concerning a program receiving federal funds; the other wire fraud charges were dismissed.

Scott testified Wednesday that he gave Reksid $3,000 in February 2009, but that it was a personal loan and had nothing to do with AMPRO’s unexploded cleanup work.