Arkansas state representative Micah Neal of Springdale pleaded guilty Wednesday to conspiring to authorize and direct $600,000 in state government funds to two nonprofit entities in exchange for approximately $38,000 in kickback payments, according to a news release.
Correction
Micah Neal will serve as an Arkansas state representative until Monday. This story has been updated to reflect that.
Neal, 42, pleaded guilty to one count of conspiracy to commit honest services fraud before U.S. District Judge Timothy L. Brooks of the Western District of Arkansas. Sentencing will be scheduled at a later date.
As part of his guilty plea, Neal admitted that, between January 2013 and January 2015, while serving in the Arkansas House of Representatives, he conspired with an Arkansas state senator to use their official positions to appropriate government money known as General Improvement Funds to a pair of nonprofit entities in exchange for bribes, according to the release.
Neal and the senator, not named in the news release, authorized and directed the Northwest Arkansas Economic Development District, which was responsible for disbursing the funds, to award $600,000 to the two nonprofit entities, the release said. Of the $600,000, Neal personally authorized and directed $175,000 to the entities, and in return for his actions, Neal received approximately $38,000 in bribes from officials at those nonprofit entities, the release said.
The Federal Bureau of Investigation and the Internal Revenue Service investigated the case. Trial Attorney Sean Mulryne of the Criminal Division's Public Integrity Section and U.S. Attorney Elser and Assistant U.S. Attorney Kyra Jenner of the Western District of Arkansas are prosecuting the case.
Assistant Attorney General Leslie R. Caldwell of the Justice Department's Criminal Division and U.S. Attorney Kenneth Elser of the Western District of Arkansas made the announcement Wednesday.
NW News on 01/05/2017