FOR IMMEDIATE RELEASE

T.J. CONNOLLY PLEADS GUILTY TO ELECTION CODE VIOLATIONS

San Antonio, Texas: March 4, 2010

Bexar County District Attorney Susan D. Reed announced today that Timothy Joseph Connolly ("Connolly") pled guilty to three counts of Making A Political Contribution In the Name of Another before County Court #9 Judge Laura Salinas. Each offense of Making a Political Contribution in the Name of Another is a Class A misdemeanor.

This case arose out of a joint investigation by the San Antonio Police Department and the District Attorney's Office that centered around the alleged manipulation of the May 2007 Bexar Metropolitan Water District Board elections.

Count One of the indictment charges that in March of 2007 Connolly, using money supplied by the Water Exploration Company, Ltd., ("WECO"), made a $4,000 contribution to BexarMet Board candidate Blanche Atkinson in Timothy Connolly's name thereby acting as a conduit to illegally funnel money to the Atkinson campaign.  Count Two of the indictment charged that on the same date in March of 2007 Connolly, using WECO's money, made a $4,000 contribution in the name of another, Lindsay Smith, to BexarMet Board Member James Fenimore.  Once again the effect of this action by Connolly was to facilitate an illegal undisclosed transfer of money to the Fenimore campaign before the board elections in May of 2007.  Count Three of the indictment further charges that in April of 2007 Connolly, on behalf of The Bailey Family Trust and in the name of another, Paul Canas, made a $2,500 contribution to Blanche Atkinson resulting in an illegal undisclosed campaign contribution to Atkinson by The Bailey Family Trust.   Both WECO and The Bailey Family Trust were clients of Connolly's company and had ongoing business with BexarMet.

Under the terms of the plea agreement Connolly must pay $10,000 in fines and faces up to a year in jail.  The State informed the court that it opposes Connolly’s application for Deferred Adjudication.  In light of the U.S. Supreme Court's decision in the Citizen's United case, which invalidated the century old prohibition on corporate expenditures to election campaigns, as well as the challenges currently pending in the Texas Court of Criminal Appeals in Ex parte James W. Ellis, Connolly's felony charges are being taken into consideration as part of his plea agreement. In Ex parte James W. Ellis, the constitutionality of the statute under which the State has charged Connolly is under attack.  The movants have asked the court to render the Election Code provision regulating corporate donations unconstitutional. After review by the Court of Criminal Appeals, there remains the possibility of further appeals to the U.S Supreme Court requiring additional years of litigation.

The case has been reset to April 21, 2010 at 9:00 a.m. for sentencing.

A Class A misdemeanor carries a range of punishment against an individual of confinement in jail for a term not to exceed one year and a fine not to exceed $4,000.

For more information contact Adriana Biggs, White Collar Crime Division Chief at (210) 335-2404.