Hat Tip: By Alan Judd, Atlanta Journal Constitution
Greenville, S.C. —- In November 2004, Kai Franklin Graham’s life was unraveling.
Her husband of three years was a fugitive from justice, charged with operating a transcontinental drug-trafficking ring. One of his co-defendants —- a potential witness against him —- had been shot to death. Federal agents had searched the Grahams’ $650,000 house in suburban Atlanta. And the mortgage was due.
One day, about two weeks after her husband had fled to California, the oldest of Atlanta Mayor Shirley Franklin’s three children traveled to seven post offices. At each, she bought two $1,000 money orders, a total of $14,000 that she used for house payments. She paid cash.
The money, federal prosecutors said here Monday, came from drug dealing. And the transactions, Franklin Graham admitted to a judge, were designed to evade government reporting requirements that help authorities spot money laundering.
With her mother watching, Franklin Graham, 35, pleaded guilty Monday in a federal courtroom to a single charge of illegally structuring a financial transaction.
“Are you pleading guilty because you are guilty?” U.S. District Judge Henry M. Herlong Jr. asked her.
“Yes, sir,” she said.
Franklin Graham is likely to avoid jail time; her plea agreement calls for her to serve three months of home confinement, followed by three years of probation.
However, “she has to be fully and completely truthful” with federal investigators, Assistant U.S. Attorney Mark Moore said.
Otherwise, she could be sentenced to as much as five years in prison and be fined up to $250,000. Herlong is expected to sentence her in 60 to 90 days.
Authorities will ask Franklin Graham about a double homicide in Atlanta that is linked to her former husband, Tremayne Graham, 34.
Graham, whom she divorced in 2005, pleaded guilty to drug charges in 2006. He is serving a life sentence in a high-security federal prison in Kentucky.
Prosecutors have alleged that he ordered the killings of Ulysses Hackett III and his girlfriend, Misty Denise Carter. They were shot to death in Carter’s Virginia-Highland townhouse on Sept. 5, 2004. Hackett was thought to have incriminating evidence against Graham. Atlanta police never solved the case.
Franklin Graham will be asked to disclose what she knows about the killings and other matters, and might have to pass a lie-detector examination.
“We’re going to ask her a number of questions about a number of things,” Moore said outside Greenville’s federal courthouse. “I don’t know what, if any, information she has.”
Her testimony could be important to prosecutors, who might seek a death sentence for Graham or others implicated in the killings.
In court Monday, Franklin Graham was not accused of drug-related offenses.
However, Moore said: “We have looked into all the people who were involved. Not just limited to drug dealers, but people who assisted drug dealers, such as Ms. Franklin Graham.”
More than a dozen people have been convicted for their role in a ring that moved more than 2,200 pounds of Mexican cocaine through Atlanta to South Carolina.
Graham was indicted and arrested in 2004, several months after Hackett was arrested as he delivered cocaine to a “safe house” in Greenville.
On Nov. 12, 2004, 15 days after her then-husband skipped his $400,000 bond, Franklin Graham went to an Atlanta post office and used cash to buy two $1,000 money orders, Moore said in court.
Federal law requires postal officials to tell the Internal Revenue Service about any transaction exceeding $2,000.
Over the next several hours, Franklin Graham visited six more post offices, where she completed identical transactions, ultimately converting $14,000 in cash into money orders. She needed the money orders, Moore said, because her bank would have been required to report a cash payment of more than $10,000.
“This was a clear —- very clear —- transaction,” Moore said later.
The judge asked Franklin Graham whether she had known she was breaking the financial reporting laws.
“Yes,” she said, “in general, your honor.”
“You either did or you didn’t,” Herlong responded.
One of Franklin Graham’s lawyers, Richard Deane, a former U.S. attorney in Atlanta, told Herlong she knew reporting laws existed but not the details.
The guilty plea provided a dramatic coda to a series of indignities for Franklin Graham: personal bankruptcy, forfeiture of her home to the federal government, and the implication that she aided her husband’s drug ring.
Flanked by two lawyers, Franklin Graham stood facing the judge throughout Monday’s 22-minute hearing. Wearing a red turtleneck and black pants, her long, straight hair pulled into a ponytail, she answered Herlong’s questions in a quiet but clear voice.
Her mother watched alone from a second-row bench in the courtroom, her trademark fresh flower in her lapel. Asked outside the courtroom to comment on her daughter’s guilty plea, the mayor politely declined.