Dallas developer pleads guilty to bribery scheme involving city officials

Dallas, Texas – In a significant development in a Dallas corruption case, Sherman Roberts, a former Dallas real estate developer, pled guilty to charges of conspiracy to commit bribery. This plea marks a critical turn in a high-profile investigation, shedding light on an illicit exchange of cash and political favors aimed at advancing specific real estate projects in Dallas.

Details of the Bribery Scheme

Roberts, 70, formerly led the City Wide Community Development Corporation. According to court documents, he admitted to bribing two prominent city officials: Mayor Pro Tem Dwaine Caraway and City Council Member Carolyn Davis. His goal was to secure support for low-income housing tax credits and loans that would benefit his development projects, including Serenity Place, Runyon Springs, and Patriot’s Crossing.

Through this scheme, Roberts allegedly offered Davis several thousand dollars in cash during her tenure and even promised future payments after her time on the city council ended. Davis, in turn, lobbied to endorse Roberts’ projects to the City Housing Committee, pressured rival developers to withdraw their applications to give his projects priority, and supported a $1.9 million City of Dallas loan for his development initiatives.

Evidence in court highlighted text messages exchanged between Roberts and Davis. Shortly after Davis backed his project in a City Housing Committee vote, Roberts texted her, “Right now you and me are making money,” indicating their financial partnership. Only a month later, she reached out again, requesting more money, referencing “just a few dollars,” to which Roberts readily agreed.

Collaborations with Mayor Pro Tem Caraway

In a parallel arrangement, Roberts and Davis met with Mayor Pro Tem Caraway, bringing him into the scheme to prevent the city from issuing a Request for Proposal (RFP) that could hinder Roberts’ plans for Patriot’s Crossing. Caraway reportedly received several hundred dollars in cash upfront, with a monthly stipend of $2,000 to support Roberts’ projects. Caraway’s commitment was solidified in a meeting where he asked Roberts about the project’s value, adding, “Once you’re successful with this project, don’t forget about me.” Roberts assured him, “I won’t forget about you…the money has never been an issue.”

This partnership with Caraway facilitated Roberts’ continued influence over city processes, helping bypass regulatory hurdles that could have slowed or derailed his developments.

Sentencing and Other Developments

Roberts now faces up to five years in federal prison for his role in the bribery conspiracy. His sentencing is scheduled for March 12, 2025. Both officials involved in the scheme faced consequences. Caraway, who pled guilty in 2019 to conspiracy to commit honest services fraud and tax evasion, received a federal prison sentence of over four years. Davis also admitted guilt to conspiracy to commit bribery but tragically passed away in a car accident before sentencing.

Roberts is not the only developer implicated in this far-reaching investigation. Two other developers have faced charges in relation to the same scandal. Devin Hall, a developer behind Grand Park Place apartments, pled guilty in August 2020. Additionally, Ruel Hamilton, head of AmeriSouth Realty Group and a supporter of the Royal Crest housing project, awaits retrial on charges of conspiracy and bribery.

Broader Implications and Continuing Investigations

The bribery case underscores a broader investigation into unethical practices in Dallas’ real estate and government sectors. The Federal Bureau of Investigation’s Dallas Field Office led the inquiry, with essential assistance from the IRS – Criminal Investigation’s Dallas Field Office. Assistant U.S. Attorneys Marcus Busch and Donna Max have handled prosecution efforts, drawing significant evidence from wiretaps, financial records, and communication exchanges.

“This case is an example of the FBI’s commitment to investigating and holding accountable those who seek to misuse public trust for personal gain,” stated an FBI spokesperson, reinforcing the agency’s dedication to dismantling corruption at all levels of government.

Roberts’ guilty plea emphasizes the FBI’s findings of a system where monetary incentives and political power intersected to bypass regulations. The plea serves as both a warning and a milestone in efforts to curb corruption in Dallas and highlights the significant role of collaborative efforts between federal and local agencies.

Restoring Integrity and Transparency

This corruption case involving multiple real estate developers, elected officials, and influential projects in Dallas has reinforced the need for transparency and accountability in city governance. Through the exposure of these illegal exchanges, Dallas city officials are under increased scrutiny to restore public trust. Current Dallas officials have since voiced their commitment to preventing future incidents, implementing internal checks to ensure that development decisions align with ethical and legal standards.

By concluding the case against Roberts, federal prosecutors have taken another step toward reinforcing the importance of integrity within public office. The case serves as a reminder that the justice system will pursue anyone who leverages power for personal advantage, assuring the public that abuse of authority will not go unchecked. With Roberts’ sentencing on the horizon, this chapter in Dallas’ ongoing battle against corruption marks a pivotal moment for accountability in public service.