Posted on Thu, Sep. 04, 2003


Ex-Texas college VP pleads guilty in laundering sting


Associated Press

A former Texas college administrator who was a protege of former University of South Carolina President James Holderman was sentenced Thursday to 14 months in federal prison for his role in a $2 million money-laundering deal with an undercover agent posing as a Russian mobster.

Prosecutors had planned to recommend that Rafael Diaz Cabral receive a two-year term, but lowered that even further based on Diaz's cooperation with the investigation. Defense attorneys asked for probation.

"It's a very serious crime and requires something more than probation," said U.S. District Judge Paul Huck. "I'm quite sure this was an aberration in your otherwise quite stellar career."

Diaz was accused of joining Holderman, in a nine-month money laundering and visa fraud plot. Holderman faces trial next month. Both former academics hold doctoral degrees.

Diaz, his wife and his mother spoke through tears at the hearing.

"I trusted Dr. Holderman because he had been my mentor for many years," Diaz, a Dominican-born U.S. citizen who faced a maximum term of 20 years, told the judge. "He took me under his wings and tried to serve as a second father to me. ... I made the mistake of letting the situation drive my conduct."

Diaz, 39, of Greenville County, S.C., quit as a vice president of Brookhaven College, a Dallas community college, after his arrest in March when agents delivered $400,000 for laundering.

Brookhaven was to be used as a front for issuing student visas to the agent and others, investigators said. Holderman and Diaz allegedly offered to get a Dominican passport stamped with U.S. visas for $15,000 as part of the undercover operation.

Holderman has two prior fraud convictions and is under treatment for depression. He allegedly boasted about high-level connections in the U.S. and Dominican governments. On one tape, Holderman said he was calling from the White House.

Diaz is a cousin of Dominican President Hipolito Mejia, and his brother Fausto Diaz is an official in the foreign ministry responsible for visas.

He cooperated from the moment of his arrest, has agreed to testify against Holderman and explained videotapes and Holderman's plans, Assistant U.S. Attorney Richard Gregorie said.

But he said he couldn't recommend probation because "this is what the government describes as a just-say-no offense," and Diaz didn't change his mind until his arrest.

"He's a remarkable guy who made a mistake and a lot of people are going to suffer for it," said defense attorney Joseph Rosenbaum.





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