kepdawg
06-05-2007, 10:50 PM
School officials accused of corruption
Indictment alleges bribes-for-contracts scheme in Valley district
10:16 PM CDT on Tuesday, June 5, 2007
Associated Press
McALLEN, Texas – A superintendent for a Rio Grande Valley school district, several board members and others have been charged in connection with a scheme to steer lucrative contracts to certain firms in exchange for more than $600,000 worth of bribes, federal officials said Tuesday.
Charged with extortion and conspiracy were Arturo Guajardo, superintendent of the Pharr-San Juan-Alamo Independent School District, and school board members Raul Navarro, Evangelina De Leon and Rogelio Rodriguez.
Ricardo De Leon, Mrs. De Leon's husband, was charged with conspiracy as were two businessmen: George Hernandez, who owns a contracting business and is also president of the Donna ISD school board, and Harlingen insurance agency owner Arnulfo Olivarez. Mr. Hernandez was arrested Tuesday; Mr. Olivarez was expected to turn himself in, officials said.
Mr. Hernandez and Mr. Olivarez are accused in the 22-count federal indictment of offering bribes that included payments of up to $210,000, Las Vegas trips, guns, prostitutes and $14,000 worth of tickets to the NCAA Final Four.
"In a nutshell, we had millions of dollars at the disposal of trustees," U.S. Attorney Don DeGabrielle said. "The allegations in this indictment say that these people who are entrusted with this obligation failed miserably."
The contracts included insurance for district employees and construction work on schools and athletic fields in two bond issues totaling just over $100 million. The 35-campus school district draws students from Pharr, San Juan and Alamo – three cities just east of McAllen.
"It is unfortunate school board members have been arrested in relation to their duties and positions as school board members," Pharr school board President Ben Garza said. "It is a very serious matter. I would nonetheless remind everyone that everyone is innocent until proven guilty."
Mr. Guajardo, Mr. Navarro, the De Leons, and Mr. Hernandez appeared before U.S. Magistrate Judge Dorina Ramos on Tuesday.
Judge Ramos ordered all but Mr. Hernandez to pay $100,000 bail and said they must not conduct school business until a formal arraignment Friday. She said Mr. Guajardo should use his administrative leave to step down as superintendent for the final month of his term.
The judge ordered Mr. Hernandez to reappear today on his request for a court-appointed attorney. Mr. Hernandez said he hadn't worked since January and was facing foreclosure on his $250,000 home.
Mr. DeGabrielle said the indictment followed a corruption investigation dating to January 2005, when federal agents armed with search warrants carted boxes of paperwork and other items from school district offices, Mr. Guajardo's home and Mr. Navarro's home.
The case is federal because the districts receive federal funds, Mr. DeGabrielle said.
Indictment alleges bribes-for-contracts scheme in Valley district
10:16 PM CDT on Tuesday, June 5, 2007
Associated Press
McALLEN, Texas – A superintendent for a Rio Grande Valley school district, several board members and others have been charged in connection with a scheme to steer lucrative contracts to certain firms in exchange for more than $600,000 worth of bribes, federal officials said Tuesday.
Charged with extortion and conspiracy were Arturo Guajardo, superintendent of the Pharr-San Juan-Alamo Independent School District, and school board members Raul Navarro, Evangelina De Leon and Rogelio Rodriguez.
Ricardo De Leon, Mrs. De Leon's husband, was charged with conspiracy as were two businessmen: George Hernandez, who owns a contracting business and is also president of the Donna ISD school board, and Harlingen insurance agency owner Arnulfo Olivarez. Mr. Hernandez was arrested Tuesday; Mr. Olivarez was expected to turn himself in, officials said.
Mr. Hernandez and Mr. Olivarez are accused in the 22-count federal indictment of offering bribes that included payments of up to $210,000, Las Vegas trips, guns, prostitutes and $14,000 worth of tickets to the NCAA Final Four.
"In a nutshell, we had millions of dollars at the disposal of trustees," U.S. Attorney Don DeGabrielle said. "The allegations in this indictment say that these people who are entrusted with this obligation failed miserably."
The contracts included insurance for district employees and construction work on schools and athletic fields in two bond issues totaling just over $100 million. The 35-campus school district draws students from Pharr, San Juan and Alamo – three cities just east of McAllen.
"It is unfortunate school board members have been arrested in relation to their duties and positions as school board members," Pharr school board President Ben Garza said. "It is a very serious matter. I would nonetheless remind everyone that everyone is innocent until proven guilty."
Mr. Guajardo, Mr. Navarro, the De Leons, and Mr. Hernandez appeared before U.S. Magistrate Judge Dorina Ramos on Tuesday.
Judge Ramos ordered all but Mr. Hernandez to pay $100,000 bail and said they must not conduct school business until a formal arraignment Friday. She said Mr. Guajardo should use his administrative leave to step down as superintendent for the final month of his term.
The judge ordered Mr. Hernandez to reappear today on his request for a court-appointed attorney. Mr. Hernandez said he hadn't worked since January and was facing foreclosure on his $250,000 home.
Mr. DeGabrielle said the indictment followed a corruption investigation dating to January 2005, when federal agents armed with search warrants carted boxes of paperwork and other items from school district offices, Mr. Guajardo's home and Mr. Navarro's home.
The case is federal because the districts receive federal funds, Mr. DeGabrielle said.