Dallas real estate developer pleads guilty to bribing two City Council members

A Dallas real estate developer pleaded guilty to bribing two City Council members, U.S. Attorney for the Northern District of Texas Leigha Simonton announced.

Sherman Roberts, 70, previously led City Wide Community Development Corp. and was indicted in December 2020. He pleaded guilty Tuesday to conspiracy to commit bribery, Simonton said in a news release.

Court documents state that Sherman bribed Dallas Mayor Pro Tem Dwaine Caraway and City Council Member Carolyn Davis in order to gain their support for loans and low income housing tax credits for his apartment projects, the news release said.

Authorities said that Davis lobbied for Roberts' real estate projects, including Serenity Place, Runyon Springs and Patriot's Crossing, in return for thousands of dollars in cash, as well as promised future payments after her council tenure ended.

Officials said she promoted Serenity Place to the city's Housing Committee, demanded that developers who also were seeking real estate funding withdraw their applications to boost Roberts' chances of success, recommended that Serenity Place get a 9% low income housing tax credit, and voted to OK a $1.9 million city of Dallas loan.

Records show that soon after the vote, Roberts texted Davis: "Right now you and me are making money."

Records also show that about a month later, she repeatedly asked for more money, "just a few dollars."

He agreed.

She and Roberts met with Caraway over a problem with Roberts' Patriot's Crossing project.

In return for hundreds of dollars in cash and a $2,000 monthly stipend, Caraway agreed to stop the city from issuing a request for proposal for the Patriots Crossing project and to deliver the project to Roberts.

"How much is the project worth?" Caraway asked. "Once you're successful with this project, don't forget about me."

Roberts responded: "I won't forget about you. That's where the money is ... the money has never been an issue."

Roberts now faces up to five years in a federal prison. He is set to be sentenced March 12, 2025.

Caraway pleaded guilty in 2019 to conspiracy to commit honest services fraud and tax evasion and was sentenced to more than four years in federal prison, the news release said.

Also in 2019, Davis pleaded guilty to conspiracy to commit bribery concerning an agent of a local government receiving federal benefits, but she died in a car crash before she was sentenced.

In all, three real estate developers were charged in the bribery scandal.

Devin Hall, the developer behind the Grand Park Place apartment project, pleaded guilty in August 2020, the news release said.

Ruel Hamilton, the AmeriSouth Realty Group executive who backed the Royal Crest housing project, is awaiting retrial on conspiracy and bribery charges.

The FBI's Dallas Field Office investigated the case with help from the IRS – Criminal Investigation's Dallas Field Office.

Assistant U.S. Attorney Marcus Busch is prosecuting the case with help from Assistant U.S. Attorney Donna Max.