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U.S. Department of Justice

Ronald C. Machen Jr.

United States Attorney for the

District of Columbia

Judiciary Center555 Fourth St. N.W.

Washington, D.C. 20530

PRESS RELEASE

FOR IMMEDIATE RELEASEWednesday, Aug. 14, 2013

For Information Contact:

Public Affairs

(202) 252-6933http://www.justice.gov/usao/dc/index.html

Former Congressman Jesse L. Jackson, Jr. SentencedTo 30 Months in Prison for Conspiring to Defraud Campaign

His Wife, Sandra Stevens Jackson, Sentenced to One Year on Tax Charge

WASHINGTON Former Congressman Jesse L. Jackson, Jr., 48, was sentenced today to30 months in prison for conspiring to defraud his re-election campaigns of about $750,000 infunds that were used to pay for personal items and expenses, including high-end appliances andelectronics, and then filing misleading reports to conceal seven years of the illegal activities.

Jacksons wife, Sandra Stevens Jackson, 49, a former Chicago alderman, was sentencedto one year for filing false tax returns as part of the scheme. The judge permitted the Jacksons tostagger their prison sentences, with Mrs. Jackson beginning to serve her sentence following herhusbands release from incarceration.

The sentencings, in the U.S. District Court for the District of Columbia, were announcedby U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of theFBIs Washington Field Office, and Richard Weber, Chief of the Internal Revenue Service-Criminal Investigation (IRS-CI).

Jesse Jackson Jr.s journey from the halls of Congress to federal prison is a tragedy ofhis own making, said U.S. Attorney Machen. Jacksons political potential was unlimited, buthe instead chose to treat his campaign account as a personal slush fund, stealing from the peoplewho believed in him so he could live extravagantly. He squandered his great capacity for publicservice through outright theft. The prison sentence imposed today should serve as a wake-up callto other public officials who believe there are no consequences for betraying the public trust.

In a betrayal of his oath of office and his duty to the citizens he represented, Mr. Jacksonviolated the integrity of our government and disrespected those he served, said AssistantDirector in Charge Parlave. Mr. Jackson and his wife selfishly supported themselves with

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campaign funds and went to great lengths to hide their illegal activity, but they can hide no moreas they pay the price with todays sentences. Public corruption will not be tolerated in ourcommunity no matter the position or names of the individuals involved.

Today justice is served for the American public, said IRS-CI Chief Weber. This case

exposed layers of greed and corruption masked by the illusion of success. The Jacksons weregranted the privilege of political office to better the lives of others but used it instead for theirown selfish benefit. The Jacksons failed to report over a half-million dollars in taxable incomeover a six year period. Regardless of circumstances, no one is granted an exemption to commitcrimes with impunity. IRS-CI remains committed to the fight against political corruption and taxevasion. This case exemplifies the strong impact we are making in this arena working incooperation with our law enforcement partners.

Jesse Jackson, Jr. pled guilty in February 2013 to one count of conspiracy to commit wirefraud, mail fraud and false statements. Sandra Stevens Jackson also pled guilty in February2013. In her guilty plea, she admitted to filing false tax returns for calendar years 2006 through

2011. According to the governments evidence, she knowingly and willfully failed to reportnearly $570,000 in taxable income for those tax years. This led to an estimated tax loss ofapproximately $159,000.

**

Jesse Jackson, Jr. was elected to Congress in 1995 and served until November 2012 asthe representative for the 2nd Congressional District of Illinois. Sandra Stevens Jackson was analderman in Chicago from May 2007 until January 2013. Additionally, she had various roles inher husbands re-election campaigns, starting in January 2005, working at different points astreasurer, consultant, and campaign manager.

According to the governments evidence, Jackson and his wife carried out the fraudscheme from in or about August 2005 until in or about April 2012. Rather than using fundsdonated to the Campaign as they were intended for legitimate expenses associated withJacksons re-election they used a substantial portion for personal expenditures.

Jackson, who has residences in Chicago and Washington, D.C., also admitted takingsteps to conceal seven years of illegal activities, including the filing of false and misleadingreports with the Federal Election Commission (FEC) and the U.S. House of Representatives.

According to the governments evidence, money was channeled from the Campaign tothe Jacksons in the following ways:

DIRECT EXPENDITURES: Jackson made $57,792 in direct expenditures from theCampaigns bank account from January 2006 through July 2011. In July 2007, for example, hewithdrew $43,350 in Campaign funds to purchase an official check made payable to a jeweler fora mens gold-plated Rolex watch. In addition, he used $14,442 in Campaign funds to pay downbalances on person credit cards maintained by the Jacksons.

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CREDIT CARD EXPENDITURES: The Campaign maintained a credit card account,Jackson for Congress, from at least August 2005 through August 2012. Individual credit cardmembers on this account included Jackson and his wife. During this period, the Jacksons usedthe credit cards to purchase merchandise and services that were personal in nature, includinghigh-end electronic items; a washer, a dryer, a range and refrigerator; collectors items; clothing,

food and supplies; movie tickets; health club dues; personal travel, including a holistic retreat,and personal dining expenses. Campaign funds were used to pay $582,772 of personal purchases.

OTHER EXPENDITURES: In March 2006, Jackson directed that a $36,000 checkfrom the Campaign be issued to his wifes business for billboard expenses. Sandra StevensJackson transferred this money from the business account to a personal account. Jackson and hiswife, who controlled the personal account, used nearly all of the money that purportedly was forbillboard expenses to pay down personal debts.

Additionally, Jackson paid a congressional staffer with funds from the campaign accountso that the staffer could pay expenses on Jacksons behalf, or, in some instances, give cash to

Jackson. The Campaign issued about $76,150 in checks to the staffer from about October 2008until about March 2012, even though the staffer actually was entitled to only about $11,409 forher work. The staffer then expended nearly all of the remaining $64,741 for the personal benefitof Jackson and his wife. For example, the staffer used checks from the Campaign to pay for$26,347 worth of work performed on the Jacksons home.

According to the governments evidence, the Jacksons took steps from 2005 until 2012 toensure that materially false and misleading reports were filed with government entities. Thesereports were filed with the FEC and the House of Representatives. These actions were critical tocarrying out the conspiracy because they enabled the conduct to continue without question for alengthy period of time and without the questions from regulators and the public that likely wouldhave ensued had truthful, accurate reports been filed.

**

In announcing the sentences, U.S. Attorney Machen, Assistant Director in ChargeParlave and Chief Weber commended the work of those who investigated the case for the FBIand IRS-CI. They also expressed appreciation for the assistance provided by the U.S. MarshalsService on the asset forfeiture aspects of the case. In addition, they commended those whoworked on the case from the U.S. Attorneys Office, including Paralegal Specialists TashaHarris, Lenisse Edloe and Gail Price, and former Paralegal Specialist Sarah Reis.

Finally, they acknowledged the work of Assistant U.S. Attorneys Matt Graves, MichaelK. Atkinson, and Jonathan W. Haray, of the Fraud and Public Corruption Section of the U.S.Attorneys Office for the District of Columbia, who are investigating and prosecuting the matter,as well as Assistant U.S. Attorneys Catherine K. Connelly and Anthony Saler, of the AssetForfeiture and Money Laundering Section.

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