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Ex-court official sentenced for fraud

The former clerk of the U.S. Bankruptcy Court is sentenced to 27 months in prison.

By GRAHAM BRINK

© St. Petersburg Times, published April 20, 2001


The former clerk of the U.S. Bankruptcy Court is sentenced to 27 months in prison.

TAMPA -- As the official who once oversaw the U.S. Bankruptcy Court for the Middle District of Florida, Carl R. Stewart had walked into the federal courthouse hundreds of times.

On Thursday, he returned with remorse in his heart and a prison sentence on his mind.

In a short hearing, U.S. District Judge James H. Hancock sentenced Stewart to 27 months in prison and three years of probation for his role in a bribery scheme that shocked courthouse workers when it became public last year. Stewart also must pay $260,431 in restitution and perform 100 hours of community service.

Stewart, 50, trembled and nearly broke down as he read a short statement. He said he was sorry and felt awful about letting down the courthouse employees, the bankruptcy judges in particular.

"I admit to it," he said. "It was unconscionable, out of character and just plain stupid." Stewart then turned to his wife, sitting nearby in the courtroom, and told her that he loved her.

Hancock was brought in as local federal judges had recused themselves, citing a potential conflict given their familiarity with Stewart. He agreed that Stewart could visit his 80-year-old father in Houston, and attend his son's graduation, before reporting to prison June 5.

Last year, Stewart agreed to plead guilty to conspiracy and bribery charges after authorities uncovered a scheme that enriched Stewart, court employee Christopher Muratore, and Roger Ralston, the president and owner of Ralston Communications, Millennium Integration Services and NetPlanet.

Muratore and Ralston have entered into plea agreements but are yet to be sentenced.

Stewart admitted he used his position to help one of Ralston's companies sell close to $1-million worth of equipment to federal courts across the country. Ralston paid Stewart part of the profits. Stewart also agreed that he accepted money from the sale of overpriced computer equipment and that he facilitated the purchase of equipment that was never delivered.

In one instance, Stewart and Muratore took a payment in return for giving government-owned video-conferencing equipment to Ralston, according to the indictment.

They then bought it back from Ralston knowing it was already owned by the government.

"It's nothing short of egregious," said federal prosecutor Rita Glavin, who also added that Stewart was quick to admit his guilt when confronted and cooperated thoroughly with investigators.

Stewart became clerk of the bankruptcy court when he was 36 years old, making him one of the youngest ever to achieve the position, Glavin said. The Middle District of Florida, an area that includes St. Petersburg and Tampa, has 10 bankruptcy judges and receives about 42,000 new cases each year.

Stewart retired in July, shortly after judicial officials performed a second audit of his office in two years. Stewart said at the time his retirement had nothing to do with the audits and that he was just ready to move on.

According to court documents, Stewart is financially destitute and cuts grass at a golf course to make ends meet.

"His immediate goal is to keep his family afloat, and to atone for this horrendous mistake," Stewart's attorney, William Jung, wrote in a court document.

- Graham Brink can be reached at (813) 226-3365 or brink@sptimes.com.

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