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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Perry pleads not guilty to bribery


Former Airway Heights Mayor Dale R. Perry, left, and Assistant Federal Defender Amy Rubin walk toward the entrance of the fderal courthouse in Spokane on Tuesday morning. 
 (Holly Pickett / The Spokesman-Review)

The former mayor of Airway Heights entered not guilty pleas Tuesday in U.S. District Court to four federal bribery charges associated with his financial ties to Orville Moe, formerly the operator of Spokane Raceway Park.

Dale R. Perry was indicted last month on four counts alleging he violated federal anti-public corruption laws. He is charged with two counts of soliciting a bribe and two counts of accepting a bribe.

At the direction of his attorney, Assistant Federal Defender Amy Rubin, the 53-year-old mayor had no comment as he left federal court in downtown Spokane after his brief arraignment.

The indictment, returned Sept. 19, alleges that Moe loaned Perry $18,000 in October 2002 and $109,000 in October 2004 in exchange for the mayor agreeing to cause Airway Heights City Council votes favorable to Moe and Spokane Raceway Park.

First Assistant U.S. Attorney Thomas Rice told U.S. Magistrate Judge Cynthia Imbrogno that prosecutors weren’t seeking a bond for Perry because he doesn’t pose a flight risk or danger to the community.

The magistrate allowed Perry to remain free without bond, pending trial, but ordered him to remain within the Eastern District of Washington and not to possess firearms.

Moe is scheduled to be arraigned Thursday on two counts of bribery.

In June, the 69-year-old drag-racing legend was removed as operator of Spokane Raceway Park by Superior Court Judge Robert Austin. The previous year, the state judge appointed a receiver to take over operations at Spokane Raceway Park.

The state court judge is presiding over a protracted civil suit, brought by limited partner investors who contend they were swindled out of $2 million they gave Moe in the early 1970s to buy 640 acres of land in Airway Heights that became home to Spokane Raceway Park’s drag strip, oval track and road course.

The state court litigation was temporarily frozen in mid-August when Moe filed a bankruptcy petition for Spokane Raceway Park.

Court-appointed receiver Barry Davidson has asked a U.S. Bankruptcy Court judge to enter an order that would allow the state court case to proceed.

In court documents, the receiver said Orville Moe filed the bankruptcy action for the apparent purpose of interfering with the state court lawsuit being handled by Superior Court Judge Robert Austin.