Public Corruption Conspiracy Indictment Unsealed

January 29, 2010 - United States Attorney A. Brian Albritton and James Casey, Special Agent in Charge, Federal Bureau of Investigation, Jacksonville Division, announced the unsealing of a 44-count indictment charging Tony DeVaughan Nelson (age 50, of Jacksonville), and Frank S. Bernardino (age 45, of Tallahassee) with various federal charges stemming from allegations of public corruption. The indictment names Nelson in all 44 counts and Bernardino in 36 counts. It alleges that both defendants committed conspiracy to commit mail fraud, bribery concerning programs receiving federal funds, and money laundering; and it charges both defendants jointly with 12 substantive counts of mail fraud, 11 substantive counts of bribery, and 11 substantive counts of money laundering. The indictment also names Nelson alone in seven additional substantive counts of mail fraud and one additional substantive count of making a false statement to the Federal Bureau of Investigation. If convicted on all counts, Nelson faces a maximum penalty of 715 years in federal prison and $13.5 million dollars in fines, and Bernardino faces a maximum penalty of 575 years in federal prison and $11.5 million dollars in fines. The indictment also notifies Nelson and Bernardino that the United States intends to seek forfeiture of $143,500, an amount alleged to be traceable to proceeds of the offenses.

According to the indictment, Nelson, while a board member for the Jacksonville Port Authority (Jaxport), corruptly demanded more than $100,000 from Subaqueous Services, Inc. (SSI), a company with Jaxport contracts, in exchange for influence in his duties as a board member. Nelson allegedly received the bribe money from Lance William Young, SSI’s owner. The indictment further alleges that Bernardino, a licensed lobbyist, acted as a conduit between Young and Nelson to hide and conceal the nature of the bribe payments.

The additional substantive mail fraud counts against Nelson alone stem from allegations of fraud connected to a November 2005 Jaxport dredging contract. The indictment alleges that Nelson wrongfully exploited a Jaxport small-business goal regarding the contract and forged signatures on fraudulent documentation submitted to Jaxport in connection with the contract. The charge against Nelson for making a false statement stems from allegations that Nelson represented to the FBI that a $50,000 bribe from Young was a loan when Nelson knew that statement to be false.

An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.

This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Mac D Heavener, III, and Mark B. Devereaux.