3 are guilty in housing inquiry

THE BALTIMORE SUN

A federal investigation into corruption at the Baltimore Housing Authority resulted in three more convictions this week -- bringing the total to nine -- including those of two contractors and a city construction chief.

The latest to plead guilty yesterday are the Lanocha brothers, Timothy and William, who lied to a federal grand jury to conceal payments and gifts -- including $3,000, a pair of binoculars and an air rifle with telescopic sight -- they gave Housing Authority analyst Charles Morris in 1993.

Prosecutors said the Lanochas initially were treated as witnesses in the case in exchange for their testimony that they paid $1,400 to corrupt housing engineer John L. Dutkevich. But they were charged when they falsely said under oath that they had not paid any other officials.

The Lanochas, who own a Jarrettsville construction firm, did not reveal that they had given money and gifts Mr. Morris, prosecutors said. Mr. Morris ran a housing rehab program and pleaded guilty in August to accepting gifts and $22,000 from contractors.

The Lanochas, who likely will receive no more than 18 months in prison at their sentencing in May, were awarded more than $3 million in contracts from the city Housing Authority to refurbish vacant rental units, according to facts of the case read in U.S. District Court in Baltimore.

Three city Housing Authority officials and six construction contractors have pleaded guilty in the investigation, which has uncovered tens of thousands of dollars in unlawful payments. The FBI says it still is investigating, and prosecutors say more people will be charged soon.

"The investigation has followed leads developed in the Dutkevich case that gave us indications there was more widespread corruption in the Housing Authority. We'll take those leads to their logical end," said First Assistant U.S. Attorney Gary L. Jordan.

Dutkevich was the first housing manager to be charged. A Housing Authority engineer, he was indicted in December 1993 and pleaded guilty a month later to taking more than $25,000 in bribes in connection with Housing Authority contracts.

One company attempting to win work from the agency gave him $16,000 and treated him to an expense-paid trip to the PGA National Resort in Palm Beach Gardens, Fla.

Daniel P. Henson III, the authority's executive director, said the criminal charges are welcome.

"If you find people who are doing something wrong, they should go to jail. If folks steal or take bribes, they ought to go to jail. So this is good news to me, I don't take it personally," Mr. Henson said.

On Wednesday, Edward J. Simmons, a Housing Authority construction chief, pleaded guilty to federal program bribery for taking about $2,000 from the Lanochas. At the time, he was overseeing renovation projects of two shelters by the Lanocha construction firm, court records said.

Simmons said he wanted to "borrow" money from William Lanocha to help defray the cost of car repairs, court records said.

But the money, some of which was given to him at a 1991 Christmas party thrown by Lanocha Construction, was never repaid, prosecutors said.

Like many of those convicted in the probe, Simmons is unlikely to be sentenced to more than 18 months in prison under federal sentencing guidelines.

Herbert Better, an attorney for the Lanochas, wouldn't comment on the continuing federal probe. But he said his clients were suffering the consequences of poor judgment.

"Back in fall of 1993, they had an agreement with the government under which they would be treated as witnesses rather than targets," Mr. Better said. "At that point they made a bad judgment out of concern for others. They are now suffering the consequences of that."

Other contractors who have been convicted include Anthony Snell, owner of Bryce Construction, who pleaded guilty to paying $5,500 in kickbacks to Dutkevich. Snell inflated work invoices, paid Dutkevich the excess and passed the inflated costs to the Housing Authority. He was sentenced to a-year's probation Jan. 4.

Another contractor, Sedrick Chavis, who owns Sedrick F. Chavis Construction, which received more than $3.5 million in the rehab program, pleaded guilty last October to paying Morris $1,000 cash and making another $1,000 worth of repairs at the home of Morris' estranged wife. He received 18 months' probation.

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