CHARLESTON, SC (WIS) -
The Florida developer who federal prosecutors say was involved in an
alleged kickback scheme with a South Carolina State University trustee
pleaded guilty in court Friday morning.
Richard Zahn
appeared at the Charleston federal courthouse to plea to a charge of
conspiracy to defraud the federal government, which he was charged of
earlier this week.
As a result of his plea, Zahn must fully
cooperate with U.S. Attorney's Office and the FBI in prosecution of
former South Carolina State Board of Trustees Chairman Jonathon Pinson.
"From
the FBI's standpoint and from the US Attorney's office, we're very
pleased Mr. Zahn's taken responsibility for his actions," said Assistant U.S. Attorney Nancy Wicker.
Prosecutors
say Zahn and Pinson plotted a scheme for the university to purchase a
120-acre stretch of land in Orangeburg County for around $3 million.
In
the deal, according to the feds, Pinson would get a $110,000 Porsche
Cayenne kickback once the university cut the check to Zahn.
The FBI says Zahn nearly had the land sold until the feds swooped in and shut it down.
"He didn't ask for the assistance for the
money," said Zahn's attorney, Andy Savage. "You heard the facts today. It became a cost of doing business
that if he wanted to do business there, it was expected because it was
the culture of the community there."
Zahn admitted to the land
deal as soon as the FBI caught him. Prosecutors plan to ask for a
reduced sentence for Zahn in exchange for his cooperation in the
investigation.
"He regrets what he did," said Savage."He regrets
succumbing to the pressure that was placed upon him, and he wants to do
everything he can do to redress the situation."
Pinson faced a federal kickback charge in court weeks ago.
Zahn remains free on a $100,000 bond until a sentencing hearing where he could face up 5 years in prison.
The
only person charged in this case who has not pleaded is Pinson. Despite
the wiretap evidence that forced two guilty pleas, Pinson's attorney
says the investigtion was flawed.
There are no dates for the sentencings or for Pinson's trial yet.
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