Special to El Rrun-Rrun
Gallegos Sr. and his son Gallegos Jr. pleaded not guilty with conspiracy and theft concerning programs receiving federal funds. They are currently in the process of discovery and jury selection is currently scheduled for Sept. 3.
The are also accused in their indictment of misapplying millions of dollars in federal grant funds meant to be used for temporarily housing migrant children at IES, a nonprofit. The Brownsville Herald's Mark Regan reported that IES abruptly shuttered its doors and fired all of its employees on March 31, 2018, although neither the federal government or IES explained why the nonprofit suddenly closed.
The Herald filed a successful Freedom of Information Act request with the Office of Refugee Resettlement’s Administration for Children & Families for communication between those agencies and IES following the closure and also reviewed years of IES tax documents.
Th newspaper reported at the time that the information revealed how the organization used millions of dollars in federal grant monies, including that IES employees profited from leased properties owned by its executives and that those executives paid themselves salaries that were more than federal grant rules allowed.
“Ruben Gallegos Sr. and Juan Jose Gonzalez approved less-than-arms-length transactions in which IES used federal grant funds to pay for multiple leases on the same properties that were owned by Ruben Gallegos Sr., or related entities, in order to inflate rental income paid with federal grant funds to Ruben Gallegos Sr.,” the indictment stated.
That 13-page indictment also alleges they purchased a $1 million San Benito property and falsely claimed it was operational and would serve more than 1,000 children in Fiscal Year 2015.
“The IES San Benito Shelter was not operational during FY-2015,” the indictment stated.