A Chicago grand jury indicted the 67-year-old owner of a debt collection company on charges that he targeted court clerks in Florida — including Brevard County — and Illinois with bribes and gifts to law enforcement charities to garner business.
The 23-page indictment charged Donald Donagher Jr., a Palm Beach Gardens resident and owner of Penn Credit Corp., with one count of conspiracy to commit federal program bribery and five counts of federal program bribery.
No other individuals were indicted.
Federal prosecutors said Donagher spent tens of thousands of dollars while seeking to bribe the clerks of court. Among the offerings were gifts, free lunches and donations to charity events favored by the clerks.
The goal was to get the offices to reward debt collection contracts to Penn Credit, while also increasing fees paid to the Harrisburg, Pennsylvania, company.
The company also offered "discounted robocalls made by Penn Credit on behalf of certain clerks’ campaigns," according to the indictment handed down Thursday in U.S. District Court in Chicago.
All of the clerk of court offices involved received federal funding, allowing agencies like the FBI to conduct an investigation. In 2013, Donagher met with Brevard County Clerk of Courts Scott Ellis to discuss the bidding process for a debt collection contract.
Prosecutors said Donagher offered campaign contributions to Ellis to help pay for a clerk’s office picnic and to purchase shirts for employees to wear at charity events.
Donagher persisted with the offers, even after learning of Ellis’ practice of not accepting campaign contributions or other gifts from those seeking to do business with the office, according to the indictment.
The indictment also lists a December 16, 2014, meeting with Brevard County Sheriff Wayne Ivey and Titusville Fire Chief Michael Woodward.
Prosecutors said Donagher had "checks totaling approximately $15,500, made out to Brevard County charities." Some of the money went to the Brevard County Animal Services overseen by Ivey and also the Shop with a Cop gift program for children and another toy program overseen by the Titusville Fire Department.
Federal prosecutors said Donagher "met with (Sheriff Ivey) and asked the sheriff to call (Ellis)." A photo of the sheriff and Donagher — dressed as Santa Claus — was published to the sheriff's Facebook page on Dec. 16, 2014. Ivey called the donation a "surprise," and personally thanked Donagher and Penn Credit for "'their gracious donation this time of year and for everything he does across the country to help various charitable organizations."
The indictment said that at the time the donation was made, Donagher wanted Ivey to call and let (Ellis) know Donagher was "a good guy" and that Donagher didn’t want to lose his contract with the Brevard County Clerk of the Court.
Ivey later placed the call.
On Dec. 17, 2014, Donagher forwarded an email regarding the charitable donations he made the day before in Florida and wrote to a Penn Credit salesperson to “pray for (Ellis) to pick us as one of the agencies.”
The clerk’s office, however, did not select the company or its services.
The sheriff sent an emailed statement to FLORIDA TODAY.
“Our agency partnered closely with the FBI and United States Attorney’s Office in this case to ensure that the perpetrator was brought to justice. Anyone who attempts to illegally influence the process of government must be held accountable so that others are not encouraged to do so.”
Another push from Donagher to Ellis came in January after Donagher learned that his company did not win the bid to continue debt collection for the clerk's office. He emailed Ellis and his staff with a proposal to fund more charitable services "and if you feel comfortable, they can be charities of your choice," he wrote.
"We have recently made sizeable donations to charitable cause in Brevard County in the amount of $5,500," he wrote. "...We estimate that within the next four months we can both do a great thing and donate anywhere between $75,000 and $112,500 and make a lot of animals and children of Brevard County happy."
Attorneys for Donagher denied claims of wrongdoing.
“The allegations against Don Donagher and Penn Credit are false and the Department of Justice should not have brought this case,” said Donagher’s attorney Theodore T. Poulos in a statement.
“Donagher and Penn Credit acted legally and in good faith, and we will prove that in court,” Poulos stated.
An arraignment date has not been set.
Contact Gallop at 321-242-3642, jdgallop@floridatoday.com and Twitter @JDGallop
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