El Paso Indictments Expected
Michael Webster, Investigative Reporter
March 03, 2008
by Michael Webster: Investigative Reporter March 2, 2008 3:00 PM PST
The El Paso Journal has learned from a reliable source that five of the seven current El Paso Community College trustees and a local businessman whom had direct dealing with the board will be indicted by the U.S. Justice Dept El Paso division as part of and as a result of the FBI's on-going public corruption investigation.
A secret grand jury is believed to have been convened or is about be convened and indictments are expected top be handed down and could determine different or additional charges and will include many more El Paso officials and business persons.
The U.S. Attorneys Star witness Roberto Gerardo "Bobby" Ruiz, a former managing director of Bear Stearns Dallas office who pleaded guilty to fraud and bribery charges in December, stated in court records that while he worked for the investment firm, he bribed EPCC trustees.
The charges will stem from the awarding of a contract or contracts to Bear Stearns Dallas office totaling at least $66 million.
No specific date for the fraud has been ascertained as of this writing. However documents obtained by the Journal clearly show the fraud scheme occurred over a 15 year period between June 1992 and November 2007.
EPCC's executive assistant to the president, Ernie Roberts in the past told the news media EPCC contracted Bear Stearns, a worldwide financial company, only once during that 15-year period
The contract linked to a $66.2 million bond issue was awarded during an EPCC Board of Trustees special meeting in December 2006, college records show.
During that meeting, Hector Zavaleta, who then was working for First Southwest as a financial adviser, told trustees they would be hearing presentations from three bond underwriting firms, including Bear Stearns.
Zavaleta resigned from First Southwest last year and is believed to be co-operating with federal investigators and is expected to testify at the grand jury hearings and at trial. As a result may cut a lighter sentencing deal with the feds.
Minutes of EPCC board meetings, show that Trustee Brian Haggerty recommended that all three companies be contracted as bond underwriters for the bond issue. His motion failed.
Trustee Art Fierro then suggested that the contract be awarded to Bear Stearns. His motion was seconded by Trustee Nicolás Dominguez. It passed on a 5-2 vote.
Also supporting the award to Bear Stearns were Trustees Arturo Huerta, Gracie Quintanilla and Carmen Olivas Graham. The dissenting votes were cast by Trustees Haggerty and John Uxer.
All trustees have denied any participation or any knowledge of any wrong doing by the EPCC or its trustees.
The FBI's on-going public corruption investigation here in El Paso County are believed to involve probes of possible illegal conduct by elected officials under color of law, illegal use of office under color of law, misuse of authority, conspiracy corruption, racketeering, obstruction of justice, cover up, perjury, kickbacks, illegal campaign contributions, fundraising bribes; jobs sold for donations. the thwarting of accurate public disclosure, indecent sexual activities, sexual favors, and the illegal use of government property. The Journal has learned it is a crime for one or more persons acting under color of law willfully to deprive or conspire to deprive another person of any right protected by the Constitution or laws of the United States. "Color of law" simply means that the person doing the act is using power given to him or her by a governmental agency (local, state or federal). Criminal acts under color of law include acts not only done by local, state, or federal officials within the bounds or limits of their lawful authority, but also acts done beyond the bounds of their lawful authority. Off-duty conduct may also be covered under color of law, if the perpetrator asserted their official status in some manner. Color of law may include public officials who are not law enforcement officers, for example, elected officials, city, state, county, school boards, judges and prosecutors, as well as, in some circumstances, non governmental employees who are asserting state authority, such as private security guards. While the federal authority to investigate color of law type violations extends to any official acting under "color of law", the vast majority of these allegations are against elected and appointed officials the law enforcement community.
Violations of Federal RICO statutes are being probed. The Journal has been told by reliable sources that the FBI is investigating the matter because it may involve highly placed elected officials. The same source believes the U.S. Attorneys office has formed a special task force which includes sheriff Dept and the El Paso Police Dept investigators. This investigation is expected to develop federal cases against some county officials and is expected to involve a secret federal grand jury where secret witnesses will give testimony.
Highly placed U.S. Government officials say RICO or the Racketeer Influenced and Corrupt Organizations Act is a United States law which provides for extended penalties for criminal acts performed as part of an ongoing criminal enterprise organization. Under RICO, a person or group who commits any two of 35 crimes--27 federal crimes and 8 state crimes--within a 10-year period and (in the opinion of the U. S. Attorney bringing the case) has committed those crimes with similar purpose or results can be charged with racketeering.
Those found guilty of racketeering can be fined up to $25,000 and/or sentenced to 20 years in prison. In addition, the racketeer must forfeit all ill-gotten gains and interest in any business gained through a pattern of "racketeering activity." The act also contains a civil component that allows plaintiffs to sue for triple damages.
When the U. S. Attorney decides to indict someone under RICO, he has the option of seeking a pre-trial restraining order or injunction to prevent the transfer of potentially forfeitable property, as well as require the defendant to put up a performance bond. Some have said this provision is intended to force a defendant to plead guilty before indictment.
Although some of the RICO predicate acts are extortion and blackmail, one of the most successful applications of the RICO laws has been the ability to indict or sanction individuals for their behavior and actions committed against witnesses and victims in alleged retaliation or retribution for cooperating with law enforcement or intelligence agencies.
The RICO laws can be alleged in cases where civil lawsuits or criminal charges are brought against individuals or corporations in retaliation for said individuals or corporations working with law enforcement or against individuals or corporations who have sued or filed criminal charges against a defendant. Anti-SLAPP (strategic lawsuit against public participation) laws can be applied in an attempt to curb alleged abuses of the legal system by individuals, officials or corporations who utilize the courts as a weapon to retaliate against whistle blowers, victims, or to silence another's speech.
RICO could be alleged if it can be shown that law enforcement, lawyers and/or their clients conspired and collaborated to concoct fictitious legal complaints solely in retribution and retaliation for themselves having been brought before the courts. An operated and managed a criminal enterprise that engaged in such acts, under section 1964(c) of the RICO Act, the victims can sue civilly and recover the economic losses they sustained by reason of the pattern of racketeering. Pattern of racketeering activity Section 1962(d) makes it unlawful for a person to conspire to violate subsections (a), (b) or (c) of the RICO Act. Common civil RICO claim is found under section 1962(c), which makes it unlawful for a person to manipulate an enterprise for purposes of engaging in, concealing, or benefiting from a pattern of racketeering activity pattern of criminal activity it can also be an individual or simply a relatively loose-knit group people or legal entities. These latter groups are referred to as "association-in-fact" enterprises under the statute. 18 U.S.C. § 1961(4).
EPCC Board of Trustees
Chairman Arturo Huerta
Vice Chairman Gracie Quintanilla
Secretary Art Fierro
Trustee Nicolás Domínguez
Trustee Carmen Olivas Graham
Trustee Brian Haggerty
Trustee John Uxer
The El Paso Journal has learned from a reliable source that five of the seven current El Paso Community College trustees and a local businessman whom had direct dealing with the board will be indicted by the U.S. Justice Dept El Paso division as part of and as a result of the FBI's on-going public corruption investigation.
A secret grand jury is believed to have been convened or is about be convened and indictments are expected top be handed down and could determine different or additional charges and will include many more El Paso officials and business persons.
The U.S. Attorneys Star witness Roberto Gerardo "Bobby" Ruiz, a former managing director of Bear Stearns Dallas office who pleaded guilty to fraud and bribery charges in December, stated in court records that while he worked for the investment firm, he bribed EPCC trustees.
The charges will stem from the awarding of a contract or contracts to Bear Stearns Dallas office totaling at least $66 million.
No specific date for the fraud has been ascertained as of this writing. However documents obtained by the Journal clearly show the fraud scheme occurred over a 15 year period between June 1992 and November 2007.
EPCC's executive assistant to the president, Ernie Roberts in the past told the news media EPCC contracted Bear Stearns, a worldwide financial company, only once during that 15-year period
The contract linked to a $66.2 million bond issue was awarded during an EPCC Board of Trustees special meeting in December 2006, college records show.
During that meeting, Hector Zavaleta, who then was working for First Southwest as a financial adviser, told trustees they would be hearing presentations from three bond underwriting firms, including Bear Stearns.
Zavaleta resigned from First Southwest last year and is believed to be co-operating with federal investigators and is expected to testify at the grand jury hearings and at trial. As a result may cut a lighter sentencing deal with the feds.
Minutes of EPCC board meetings, show that Trustee Brian Haggerty recommended that all three companies be contracted as bond underwriters for the bond issue. His motion failed.
Trustee Art Fierro then suggested that the contract be awarded to Bear Stearns. His motion was seconded by Trustee Nicolás Dominguez. It passed on a 5-2 vote.
Also supporting the award to Bear Stearns were Trustees Arturo Huerta, Gracie Quintanilla and Carmen Olivas Graham. The dissenting votes were cast by Trustees Haggerty and John Uxer.
All trustees have denied any participation or any knowledge of any wrong doing by the EPCC or its trustees.
The FBI's on-going public corruption investigation here in El Paso County are believed to involve probes of possible illegal conduct by elected officials under color of law, illegal use of office under color of law, misuse of authority, conspiracy corruption, racketeering, obstruction of justice, cover up, perjury, kickbacks, illegal campaign contributions, fundraising bribes; jobs sold for donations. the thwarting of accurate public disclosure, indecent sexual activities, sexual favors, and the illegal use of government property. The Journal has learned it is a crime for one or more persons acting under color of law willfully to deprive or conspire to deprive another person of any right protected by the Constitution or laws of the United States. "Color of law" simply means that the person doing the act is using power given to him or her by a governmental agency (local, state or federal). Criminal acts under color of law include acts not only done by local, state, or federal officials within the bounds or limits of their lawful authority, but also acts done beyond the bounds of their lawful authority. Off-duty conduct may also be covered under color of law, if the perpetrator asserted their official status in some manner. Color of law may include public officials who are not law enforcement officers, for example, elected officials, city, state, county, school boards, judges and prosecutors, as well as, in some circumstances, non governmental employees who are asserting state authority, such as private security guards. While the federal authority to investigate color of law type violations extends to any official acting under "color of law", the vast majority of these allegations are against elected and appointed officials the law enforcement community.
Violations of Federal RICO statutes are being probed. The Journal has been told by reliable sources that the FBI is investigating the matter because it may involve highly placed elected officials. The same source believes the U.S. Attorneys office has formed a special task force which includes sheriff Dept and the El Paso Police Dept investigators. This investigation is expected to develop federal cases against some county officials and is expected to involve a secret federal grand jury where secret witnesses will give testimony.
Highly placed U.S. Government officials say RICO or the Racketeer Influenced and Corrupt Organizations Act is a United States law which provides for extended penalties for criminal acts performed as part of an ongoing criminal enterprise organization. Under RICO, a person or group who commits any two of 35 crimes--27 federal crimes and 8 state crimes--within a 10-year period and (in the opinion of the U. S. Attorney bringing the case) has committed those crimes with similar purpose or results can be charged with racketeering.
Those found guilty of racketeering can be fined up to $25,000 and/or sentenced to 20 years in prison. In addition, the racketeer must forfeit all ill-gotten gains and interest in any business gained through a pattern of "racketeering activity." The act also contains a civil component that allows plaintiffs to sue for triple damages.
When the U. S. Attorney decides to indict someone under RICO, he has the option of seeking a pre-trial restraining order or injunction to prevent the transfer of potentially forfeitable property, as well as require the defendant to put up a performance bond. Some have said this provision is intended to force a defendant to plead guilty before indictment.
Although some of the RICO predicate acts are extortion and blackmail, one of the most successful applications of the RICO laws has been the ability to indict or sanction individuals for their behavior and actions committed against witnesses and victims in alleged retaliation or retribution for cooperating with law enforcement or intelligence agencies.
The RICO laws can be alleged in cases where civil lawsuits or criminal charges are brought against individuals or corporations in retaliation for said individuals or corporations working with law enforcement or against individuals or corporations who have sued or filed criminal charges against a defendant. Anti-SLAPP (strategic lawsuit against public participation) laws can be applied in an attempt to curb alleged abuses of the legal system by individuals, officials or corporations who utilize the courts as a weapon to retaliate against whistle blowers, victims, or to silence another's speech.
RICO could be alleged if it can be shown that law enforcement, lawyers and/or their clients conspired and collaborated to concoct fictitious legal complaints solely in retribution and retaliation for themselves having been brought before the courts. An operated and managed a criminal enterprise that engaged in such acts, under section 1964(c) of the RICO Act, the victims can sue civilly and recover the economic losses they sustained by reason of the pattern of racketeering. Pattern of racketeering activity Section 1962(d) makes it unlawful for a person to conspire to violate subsections (a), (b) or (c) of the RICO Act. Common civil RICO claim is found under section 1962(c), which makes it unlawful for a person to manipulate an enterprise for purposes of engaging in, concealing, or benefiting from a pattern of racketeering activity pattern of criminal activity it can also be an individual or simply a relatively loose-knit group people or legal entities. These latter groups are referred to as "association-in-fact" enterprises under the statute. 18 U.S.C. § 1961(4).
EPCC Board of Trustees
Chairman Arturo Huerta
Vice Chairman Gracie Quintanilla
Secretary Art Fierro
Trustee Nicolás Domínguez
Trustee Carmen Olivas Graham
Trustee Brian Haggerty
Trustee John Uxer
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