In Washington, it usually pays to know people in high places.But even Sen. Frank Murkowski (R-AK) couldn’t help Nicholas Bush,the ex-president of the Natural Gas Supply Association (NGSA), whowas sentenced to 3 1/2 years in federal prison for embezzlementlast week and ordered to pay restitution in the amount of $3.5million.

U.S. District Judge Emmet G. Sullivan wasn’t moved at all by aletter that Murkowski sent on behalf of Bush. In fact, he said hewanted to give Bush a sterner sentence to match the pain he hadcaused NGSA, but his hands were tied under the federal sentencingguidelines, which prescribed a maximum sentence of 41 months forBush. “I do not have any discretion to increase” the prison termfor Bush, the judge said almost apologetically to the current andformer NGSA employees, who were among those that packed the D.C.courtroom last Monday.

“I don’t believe 33 to 41 months [is] appropriate for a scam”that went on for 16 years, Sullivan remarked. Under the sentencingguidelines, he said he’s required to give a stiffer sentence tosomeone who possesses a few ounces of cocaine than to someone,like Bush, who steals millions of dollars. It just didn’t seemright to him. The Bush case underscores the shortcomings of theguidelines, he noted, and suggested that maybe it was time for thefederal government to overhaul them.

In addition to the 41-month term, of which Bush will serve about85% (34.8 months), Sullivan ordered six years of supervised parolefor Bush when released from prison and 1,000 hours of communityservice. The court-ordered restitution includes the nearly $3million that Bush stole from NGSA, $268,020 in back taxes and about$232,000 in investigative and attorney fees incurred by theassociation. (Sullivan set precedent in this case by orderingdefendant Bush to pay for the injured party’s attorney fees). IfBush should fail to make a serious effort at restitution, Sullivancould bring Bush before him again, said NGSA attorney EugenePropper. He estimated that Bush has made restitution for “around $1million” so far.

Bush, who has dealt with powerbrokers on Capitol Hill and at theWhite House during his reign at NGSA, could spend the next fewyears of his life rubbing elbows with inmates at a “minimum”security facility in Cumberland, MD. He will remain at a D.C.halfway correctional facility, where he has been the past fourmonths, until the Bureau of Prisons assigns him to a permanentfacility. His time served at the halfway house – where he isidentified as DC28-335 – will not go towards a reduction in hissentence. He was sent to the facility in July after he plead guiltyto one count of mail fraud and one count of tax evasion inconnection with the phony consulting scheme he carried out todefraud NGSA. Bush, who is 54 years old, will be well into his 60sbefore he’s done paying for his crimes.

For most of the NGSA staff at the hearing, it was the first timethey had seen Bush since the nightmare began last January. That’swhen Bush’s fraud activities were first detected and he was removedfrom the association’s office in Washington. They came to thesentencing hearing last week not to see Bush squirm or suffer, oneobserver said, but rather to achieve some type of closure to thewhole affair. Did they feel better after sentencing? “No, notreally,” remarked one. Did they feel they got justice? “We got whatthe law permitted.”

Despite the sentencing restrictions, Sullivan said he meted outthe strongest punishment possible primarily because Bush’s illegalactivity had left so many victims in its wake. “There are a lot ofvictims in your case — your family, NGSA and [the association’semployees].” He noted the scandal has had a “domino effect” onothers, “tainting” possibly forever the reputations of NGSA as agroup and its individual staff members. Sullivan said this taintmay follow NGSA staff members even when they seek employmentelsewhere. “I feel very strongly” about this, he said.

The fact that Bush used NGSA’s telephone calling card numberafter he was remanded to the halfway facility last July alsoworked against him at sentencing. He made about 20 calls to hisattorneys and ex-wife using the NGSA number, which resulted incharges of $98. This is another indication that the “scam stillcontinues,” said Sullivan.

The Bush who stood before Judge Sullivan last week was starklydifferent from the assured and sometimes arrogant Bush known to thegas industry. This Bush spoke in almost hushed tones, kept his eyescast downward and often broke into tears as he apologized to NGSAand its employees. He said he was “deeply sorry” for “my actionsand behavior,” and regretted any pain he “may have caused” NGSAstaff members. “They’re wonderful people. They’ve worked very, veryhard…They’re first-class people.” He said he would try to “repay”those he had hurt, and would “try to rebuild” his life. Bush alsodenied for the first time that he had any accomplices in hisembezzlement scheme. “There was no one else…”

But Cheatham painted Bush as anything but remorseful. Hecontinues to “make excuses today” for his actions, and he has”falsely accuse[d]” others because in the end he doesn’t want totake responsibility, she said. In short, he “excuses [his]thievery” by blaming others. Last week, he blamed the media forblowing the case out of proportion. “Mr. Bush does not deserveleniency because he…knows powerful people,” Cheatham toldSullivan, adding that his was a “very deliberate, well thought outscheme to defraud.”

After hearing from the prosecutor and Bush, Sullivan gave NGSAemployees their day in court. A tearful Jodi Jackson, thebookkeeper who helped to uncover Bush’s fraud, told the court howBush’s actions have marred the association and its employees, andhow they have been “left with the task of rebuilding” it. Hisillegal activities have eroded producer-members’ support for NGSA,she said, and employees “have become victims of guilt byassociation.”

She also recounted that while Bush enjoyed a life of luxuryfinanced by mostly embezzled money, the association’s support staffwas denied annual raises, bonuses and “struggled to support [their]families.” This was how Bush was able to continue his fraud and yetbalance NGSA’s budget every year, Cheatham pointed out. He did it”on the backs of NGSA staff.”

Charlotte LeGates, who formerly handled public relations forNGSA, told Sullivan that Bush’s crimes were “less about money andmore about the ability of one person to undermine the reputations”of others. She said the association and its employees will have to”battle for years to regain the position [of respect] we onceheld.”

Susan Parker

©Copyright 1999 Intelligence Press, Inc. All rightsreserved. The preceding news report may not be republished orredistributed in whole or in part without prior written consent ofIntelligence Press, Inc.