Dallas Bribery Scandal Ends in Acquittal for Previously Convicted Developer

An infamous local affordable housing developer previously convicted on federal bribery charges secured an acquittal in his retrial on Thursday, with jurors siding with the defense’s argument that the defendant didn’t break federal law when he paid two Dallas City Council members tens of thousands of dollars.

Ruel Hamilton, who until his indictment was best known for heading AmeriSouth Realty Group, was convicted back in 2021 for bribing former Council Members Dwaine Caraway (District 4) and Carolyn Davis (District 7). Hamilton was sentenced to eight years in federal prison but the Fifth Circuit Court of Appeals ordered a retrial, finding that the jury received improper instructions regarding bribery law.

Davis Pleads Guilty to Bribery Charges, Hamilton Indicted

The appellate court argued that the jurors in Hamilton’s first trial were permitted to convict based on gratuities instead of being required to find proof of an actual quid pro quo. Apparently, as decided by the Supreme Court, it’s not bribery if you’re just paying a state or local official for an act they’ve already taken.

In Hamilton’s case, he was accused of paying Davis at least $40,000 and promising her a consulting gig after she left public office in exchange for lobbying for and voting in favor of one of his housing projects — Royal Crest Apartments at 3558 Wilhurt Ave. in Oak Cliff, according to the indictment.

For his part, Caraway cooperated with federal authorities. He secretly recorded conversations with Hamilton regarding a $7,000 payment that followed a discussion about Caraway getting a particular item on the city council’s agenda. The disgraced council member, however, insisted at trial that the money was for his mother’s medical care and not for any services rendered.

Caraway was not charged with any crimes related to Hamilton’s payments, however, he did resign from office in 2018 after pleading guilty to corruption charges in a separate bribery scandal involving school bus contracts. He was released from prison in 2022.

As previously reported by CandysDirt.com, Davis pleaded guilty to taking bribes from Hamilton.

“In return for the money — plus the offer of a consulting contract once her tenure at the City Council concluded — Council Member Davis admits she lobbied and voted for the authorization of a $2.5 million development loan to fund the Royal Crest housing project, along with a City of Dallas resolution supporting 9% tax credits for Royal Crest, which was competing with another project,” the Department of Justice said at the time.

Wiretaps purportedly yielded conversations in which she bragged about how much money she was taking and how she thought she wouldn’t get caught. Davis died in a car crash in 2019 before she could testify at Hamilton’s first trial.

A nonprofit by the name of Hip Hop Government was also wrapped up in the scandal, with the organization’s head Jeremy Scroggins getting hit with charges for funneling the money from Hamilton to Davis.

BREAKING: Hip Hop Government Head Pleads Guilty to To Alleged Bribe Funneling

Tom Melsheimer, Hamilton’s lead attorney, told WFAA that Hamilton’s second jury “saw through the weaknesses in the government’s case and reached the right result.”

“We never believed this case should have been retried, but when we were forced to go to court, we were grateful we found 12 people who could listen to the evidence objectively,” he said.