Latest Legal News from the Criminal Courts in Houston, Texas

June 6, 2007

PSJA ISD TRUSTEES, SUPERINTENDENT AND OTHERS INDICTED IN BRIBERY SCHEME

[McALLEN, TX] – A 22-count federal indictment charging three current Pharr-San Juan- Alamo Independent School District (PSJA-ISD) trustees, the husband of a PSJA-ISD trustee, the superintendent of the PSJA school district, and two contractors for soliciting and receiving bribes in exchange for taking official action benefiting the contractors for PSJA-ISD contracts, has been unsealed and the defendants taken into federal custody.

At a press conference held in McAllen, TX, today, U. S. Attorney DeGabrielle, joined by Assistant Special Agent in Charge John A. Johnson of the Federal Bureau of Investigation San Antonio Division, Special Agent in Charge Jacqueline L. Collins of the Internal Revenue Service Criminal Investigation Division and Steven D. Anderson, Assistant Special Agent in Charge of the U. S. Department of Education Office of Inspector General, announce the indictment of Rogelio “Roy” Rodriguez, 43, of Alamo, Raul “Roy” Navarro, 58, of San Juan, and Evangelina “Vangie” De Leon, 46, of Alamo, all three PSJA-ISD trustees. Also charged are trustee DeLeon’s husband, Ricardo DeLeon, 44, and long-time PSJA-ISD superintendent, Arturo Guajardo, 59, of San Juan. All of these defendants are collectively referred to in the indictment as “Public Official defendants”.

The indictment also charges two persons, collectively referred to as “Contractor Defendants”, Donna Independent School District trustee George Alonzo Hernandez, 50, of Donna, and Harlingen insurance agency owner Arnulfo “Arnie” Olivarez, 57, of Rancho Viejo . Hernandez is charged as a contractor not in his capacity as a trustee at Donna ISD.

“Citizens have the right to expect that their elected trustees and school officials will conduct themselves honestly and in best interest of the district not themselves,” said U.S. Attorney Don DeGabrielle. “Public officials who violate the public’s trust for personal gain should expect to be and will be held accountable.”

“The FBI is engaged in the fight against public corruption and will continue to aggressively investigate officials who breach the public’s trust”, said Ralph G. Diaz, Special Agent in Charge of the FBI San Antonio Division.

“The Criminal Investigations Division’s expertise in conducting financial investigations has established our reputation as one of the leaders in the fight against fraud,” said Jacqueline Collins, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division. “We were glad to offer our expertise in the investigation of this case and will continue our efforts as part of a team determined to investigate corruption wherever it may be found.”

“This investigation is a prime example of what it takes to investigate public corruption today,” said John P. Higgins, Jr., Inspector General for the U. S. Department of Education. “I am very proud of the efforts of our OIG Special Agents and our colleagues in the FBI and IRS in pursuing allegations of fraud involving federal tax dollars by school officials and contractors.”

The Public Official defendants are accused of accepting money, trips, entertainment, gifts, and services from various contractors doing, or seeking to do, business with PSJA. Richard De Leon is alleged to have aided his wife as a go-between with contractors and by accepting items of value from contractors in exchange for his wife’s influence on contracts. Beginning in 1998 and continuing through 2004, the Public Official defendants are accused of accepting various items of value in exchange for favorable, official votes and influence regarding PSJA-ISD contracts related to construction projects for schools and other school district buildings. The Contractor defendants, Hernandez and Olivarez, are alleged to have provided various items, including money, to the Public Official defendants during the relevant time period in exchange for favorable action by the officials on district contracts.

Last evening, Evangelina “Vangie” DeLeon was arrested at her place of business in San Juan, TX. Earlier today investigating agents arrested Raul “Roy” Navarro, Ricardo DeLeon, George Hernandez, without incident. Arturo Guajardo surrendered himself to agents at the FBI office in McAllen, Texas late this morning. All of the defendants presently in custody are expected to make initial appearances today before a United States Magistrate Judge in McAllen, TX. Arnulfo “Arnie” Olivarez has been notified of the outstanding warrant for his arrest and is expected to surrender himself to law enforcement officials. Rogelio “Roy” Rodriguez, who is presently on bond in other pending matter, was notified of the new indictment and arraigned on Thursday, May 31, 2007.

The indictment, returned under seal on May 22, 2007 and unsealed today, charges all defendants with conspiracy to commit extortion. The Public Official defendants are all charged with counts of extortion based on items of value provided by contractors. PSJA-ISD, a large school district which receives substantial federal funds, is located in Hidalgo County, Texas. In 1997 and 1999, two separate bond issues for school construction totaling just over $100 million were passed. According to allegations in the indictment, between 1998 and 2004, the Public Official defendants received money and other items of value from contractors, including Hernandez, interested in doing business at PSJA-ISD. In addition to cash payments, the Public Official defendants allegedly accepted several trips to Las Vegas, Nevada and to South Padre Island; event tickets to sporting events, including an Oscar De la Hoya prize fight in Las Vegas, Final Four NCAA basketball tournament package (worth over $14,000), tickets to San Antonio Spurs and Houston Astros games, entertainment event tickets to a Cher concert in Las Vegas. Other items of value allegedly given to the public officials include guns, clothes, and work performed by contractors at properties owned by the Public Official defendants. The amount of money and other financial benefits described in the Indictment total over $600,000. All of the items of value are alleged to have been given in exchange for the use of the official’s powers of elected office to arrange and assist in the award of a number of PSJA-ISD construction-related contracts, and in the payment process related to the contracts.

All counts of the Indictment individually carry a maximum statutory sentence of twenty (20) years in federal prison per count and a maximum fine of $250,000. There is no parole in the federal system.

 

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