Prosecutors request leniency for lobbyist in state graft case

Philadelphia Inquirer/JESSICA GRIFFIN Donald "D.A." Jones exits Federal Court on Oct. 25 after an arraignment on charges he and another strategist conspired to hide a $90,000 payment the congressman made to pay a primary challenger to drop out of a 2012 race in Philadelphia.
Philadelphia Inquirer/JESSICA GRIFFIN Donald "D.A." Jones exits Federal Court on Oct. 25 after an arraignment on charges he and another strategist conspired to hide a $90,000 payment the congressman made to pay a primary challenger to drop out of a 2012 race in Philadelphia.

A political operative swept up in Arkansas' corruption scandal should go to prison, but for a shorter term than called for after he provided "substantial assistance" to investigators, federal prosecutors argued ahead of his sentencing hearing.

Donald "D.A." Jones of New Jersey conspired to steal from the nonprofit Preferred Family Healthcare of Missouri, according to his guilty plea two years ago. His sentencing hearing is scheduled for Monday in Philadelphia, where he was a political consultant and where he also awaits punishment for an unrelated guilty plea.

Jones, 64, was one of the earliest cooperators in a federal political corruption investigation that netted convictions of five former Arkansas lawmakers, including the governor's nephew. In December 2017, Jones admitted to the conspiracy charge in Missouri and to lying to investigators in Pennsylvania.

Preferred Family, formerly known as Alternative Opportunities, was Arkansas' largest Medicaid-enrolled provider of mental-health treatment before it left the state during the sprawling investigation.

Federal sentencing guidelines, based on an array of factors, suggest Jones deserves between two years, nine months and three years, five months in prison for both pleas, prosecutors wrote. The government suggested a lesser prison stay but argued repeatedly that "incarceration is warranted."

"Jones trampled over the nation's campaign finance laws in the Eastern District of Pennsylvania and further corrupted the political process in the Western District of Missouri by participating in a series of deceptions and fraud," the 18-page sentencing memo argues.

A message left Friday at the law firm representing Jones was not returned, and Jones' attorney had not filed a sentencing argument as of 6 p.m.

Preferred Family at its peak operated dozens of clinics under the Dayspring, Decision Point and Health Resources of Arkansas brands, collecting hundreds of millions of dollars in taxpayer funding, state data shows.

The nonprofit sold its clinics here after the state suspended it from the Medicaid program, which is state and federally funded insurance benefits for children, people with disabilities and impoverished residents.

Several of the firm's former executives have been charged with -- or convicted of -- bribing lawmakers to boost government funding, illegally paying lobbyists, improperly billing Medicaid and embezzling profits for themselves.

Former Arkansas lobbyist Milton "Rusty" Cranford tried to hire an unnamed informant to kill Jones in January 2018 after learning Jones was cooperating with investigators, the government has said.

Cranford, who was Preferred Family's director of Arkansas operations and its chief state lobbyist, pleaded guilty to a federal bribery charge in June 2018. He has since repeatedly met with investigators, according to court filings and testimony.

Prosecutors filed charges against top Preferred Family executives, as well as former Republican state Sen. Jeremy Hutchinson of Little Rock, after Cranford began cooperating.

Jones also testified in Pennsylvania about what he described as his role in funneling money from a congressman client's political campaign to his opponent as part of a scheme to buy the opponent out of the race, The Philadelphia Inquirer reported last year.

"We recognize Jones' substantial assistance, and believe that he should be rewarded for his timely cooperation with a [reduced prison term]," the sentencing memo says. "However, corruption of the electoral process and theft and misuse of grant funds destroys the public's trust in government, and must be punished."

Jones accepted nearly $1 million from Preferred Family from 2011 through January 2017 and doled out $264,000 of it in kickbacks to Cranford and his partner, former Democratic state Rep. Eddie Cooper of Melbourne, Jones said in his guilty plea.

Payments Jones accepted from Preferred Family were disguised as "consulting" and "training" fees but were actually for "political outreach that violated both law and public policy." Nonprofits such as Preferred Family are prohibited from excessive lobbying activities.

Jones admitted in his guilty plea to "direct contact with legislators and government officials" to peddle influence for the nonprofit. He "also solicited the assistance of elected and appointed officials in steering grants and other sources of funding" to Preferred Family, the government said.

The amount of money Jones must forfeit as part of the Preferred Family scandal also will be resolved through sentencing.

The government contends in its memo that Jones should repay $973,807.28, or the amount he received from the nonprofit from 2011-17.

Prosecutors said they anticipate that Jones will argue "he is entitled to some sort of 'credit' for the kickbacks he paid" Cranford and Cooper, but that they aren't aware of any legal justification allowing such a reduction.

Jones' Missouri case was transferred this year to Philadelphia, where he has pleaded guilty to lying about his role in the campaign-finance violations.

"The sentence imposed should reflect the seriousness of the violations, and counter the public cynicism that arises when insiders like Jones behave as though the rules do not apply or will not be enforced," the government argued.

Jones has remained active. He flew last month to Guyana, where he met with the Peoples Progressive Party to discuss consulting in the South American country's March presidential election, court filings show. The court granted the temporary return of Jones' passport to allow the travel, and prosecutors did not object to the business trip.

A Section on 12/14/2019

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