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Johnathan Woods, Bribery and Money Laundering, Arkansas 2018

Fayetteville, AR – In a shocking turn of events, former Arkansas State Senator Johnathan Woods (41) was sentenced to 220 months in federal prison for orchestrating a brazen bribery scheme that saw state funds diverted to non-profit entities in exchange for kickbacks.

Woods, a Springdale resident, was found guilty of 15 counts, including conspiracy, honest services wire and mail fraud, and money laundering, after a jury delivered its verdict on May 3, 2018. In addition to his prison sentence, U.S. District Judge Timothy L. Brooks ordered Woods to serve three years of supervised release and pay $1,621,500.00 in restitution.

According to the evidence presented at trial, Woods served as an Arkansas State Senator from 2013 to 2017. Between 2013 and 2015, Woods used his official position to appropriate and direct government money, known as General Improvement Funds (GIF), to two non-profit entities. Specifically, Woods and former State Representative Micah Neal (43) authorized and directed the Northwest Arkansas Economic Development District to award approximately $600,000 in GIF money to the non-profits.

The scheme involved bribes from officials at both non-profits, including Oren Paris III (50), the president of a college. Woods initially facilitated $200,000 of GIF money to the college and later directed another $200,000 to the college, all in exchange for kickbacks. To pay and conceal the kickbacks, Paris paid a portion of the GIF to a consulting company controlled by Randell G. Shelton Jr. (39).

U.S. Attorney Duane “DAK” Kees praised the hard work of the assigned Assistant United States Attorneys and the special agents from the IRS and the FBI, stating, “Today’s sentence is the result of very hard work by the assigned Assistant United States Attorneys and the special agents from the IRS and the FBI.”

Assistant Attorney General Brian A. Benczkowski added, “Jonathan Woods abused his position as an Arkansas State Senator and betrayed the public trust by taking bribes and kickbacks.” Special Agent in Charge Diane Upchurch with the Little Rock FBI Field Office noted, “Jonathan Woods violated the public’s trust and misused his authority for the purpose of lining his own pockets.”

The sentence should serve as a warning to those who would abuse the trust of Arkansas voters and citizens. As U.S. Attorney Kees stated, “This sentence should send a message to the people who would abuse the trust of Arkansas voters and citizens. It should serve as a serious warning to those who would intentionally steal money from taxpayers and use their elected office to both commit and conceal their crimes.”

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