2010: Terri Hodge to Resign, Plead Guilty

Rep. Terri Hodge, D-Dallas, has agreed to resign her seat in the Texas House and plead guilty in federal court to making false statements on an income tax return, prosecutors announced this morning.

The embattled Hodge, facing a tough re-election against lawyer Eric Johnson, was scheduled to go on trial next month in connection with a multi-count indictment alleging bribery and conspiracy. 

Her office released a statement this morning shortly after the plea agreement was released by the U.S. Attorney's office in Dallas:

I will end my campaign for the Democratic nomination for State Representative of the 100th Legislative District of Texas.....

I have reached an agreement with the United States Attorney’s Office for the Northern District of Texas whereby I will enter a plea of guilty to one criminal charge alleging that I made false statements by failing to report income on my personal tax returns. I freely admit that I violated the federal income tax laws in this regard, and I am prepared and willing to accept the consequences of my actions.

Hodge now faces up the three years in prison, though likely less, and must pay as much as $10,000 in back taxes to the Internal Revenue Service. She has also agreed to cooperate with prosecutors in relation to a case that has more than 10 defendants, including other public officials.