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State Rep. Terri Hodge pleads guilty to tax charge

by Brad Watson / WFAA-TV

kens5.com

Posted on February 3, 2010 at 7:22 PM

DALLAS — The only sitting public official in the Dallas City Hall corruption case stunned her supporters Wednesday by taking a plea deal that could put her in prison for up to three years.

State Rep. Terri Hodge admitted lying on her tax returns. The unexpected plea deal ends the 69-year-old's political career.

After firm claims of innocence since a federal grand jury indicted her in 2007, Hodge said nothing after her sudden guilty plea.

“We're not commenting further because the matter is still unresolved,” said her attorney, Jeff Kearney.

Hodge admitted that she failed to report about $32,500 in income on her tax returns from 2002 to 2005. The money actually was in the form of rent subsidies and utility payments that Hodge accepted from Brian and Cheryl Potashnik, the developers of apartments where Hodge lived.

In exchange for living there, prosecutors say Hodge offered political support for state tax credits sought by the Potashniks. Cheryl Potashnik earlier pleaded guilty to bribing Hodge.

As part of the plea deal, Hodge will suspend her reelection campaign and resign from her state office when she is sentenced. But under state law, she will remain on the March 2 Democratic primary ballot. She could be re-elected in name only and then precinct chairs would choose the nominee.

Dallas County Democratic Party chair Darlene Ewing says there are indications some precinct leaders want that option. 

"Some of those who are loyal to Terri are saying, 'Well, let's go ahead and try to get her elected, and that way we get to say who our candidate is for November.' There are some rumblings like that,” Ewing said.

But Hodge has a primary opponent, Eric Johnson, who is running a strong campaign. If he wins, he'll be the nominee and the next state representative from District 100. That's because there's no Republican running in this heavily Democratic district that stretches from West Dallas to Pleasant Grove.

In a statement, Hodge apologized to her constituents and expressed remorse to her fellow lawmakers.

E-mail bwatson@wfaa.com

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