WHY DID D.A., SHERIFF, DO BUSINESS WITH COUNTY TAX DEBTOR ZAYAS?

By Juan Montoya
In the wake of the news that Cameron County District Attorney had sold 505 eight-liner machines or gambling devices to Lowkes International or its Brownsville subsidiaries represented by attorneys Carlos Masso and Rick Zayas, we came upon an old piece of information that makes the sale the more intriguing.

Apparently, a gaming company owned by Zayas – and now with Masso's nephew Rick Masso as president – has submitted a request for tax clearance for its reinstatement. But there's a catch.
The company – Southwest Arcades, Inc. – owes Cameron County some $22,300.12 in county taxes.
Additionally, the company was headed by Zayas and his former business partner Ruben Cortez, a former Brownsville Independent School District board member and now member of the Texas School Board of Education.
Interestingly, the Cameron County Appraisal District lists 5704 Heron Cove belonging to one Jorge Garcia as the owner.
Intrigue Me Investments which lists Ricardo Masso Jr, as its owner in 2010 also listed the address as their headquarters. And yet another gaming company – Meatball Entertainment Inc. is listed as still active and lists Rick Masso Jr. as its registered agent and Rick Masso as its president since May 24, 2014 with an address at 5575 FM 802, Ste. G. Arnie Creinin of South Padre Island is listed as a director and vice president.
There is, however, no indication that Creinin or Meatball is involved in gaming activities.
What's going on here?
Zayas and Cortez used to hold the Cameron County Jail Commissary contract until it was awarded to Aramark Correctional Services in  November 2014. Aramark was among six companies that submitted proposals for the jail commissary contract to sell goods to inmates. Zayas and Cortez owned Snakre Vending LLC, which bid but was not chosen. However, it had held the contract for about six years before, the last two which was awarded after bidding was implemented by Sheriff Omar Lucio.
Lucio never explained if the department or the purchasing office of the county – represented by Michael Forbes – ever did a background check on Zayas and the standing debt of one of his companies to Cameron County.
Since the D.A. has been allowed to pretty much control the sales of forfeited eight-liners, it is also doubtful that Saenz or any of his trusted employees performed their due diligence in doing business with Zayas or Rick Masso. Rick Masso at one time was heavily involved in the rental of the eight-liners machines to various operators in the county and beyond. He is said to be living in Las Vegas, Nev., the same place where Lowkes International has one of its offices.
Aside from the outstanding franchise tax debt, is there anything else that we don't know about the Zayas-Rick Masso connection? Below is the tax history of Southwest Arcades from the Cameron County Tax Assessor-Collector's office website:

Officers and Directors

SOUTHWEST ARCADES, INC.

Report Year: Not Available

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Officer and director information on this site is obtained from the most recent Public Information Report (PIR) processed by the Secretary of State (SOS). PIRs filed with annual franchise tax reports are forwarded to the SOS. After processing, the SOS sends the Comptroller an electronic copy of the information, which is displayed on this web site. The information will be updated as changes are received from the SOS.

You may order a copy of a Public Information Report from open.records@cpa.state.tx.us or Comptroller of Public Accounts, Open Government Division, PO Box 13528, Austin, Texas 78711.

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Title	Name and Address
PRESIDENT	RICHARD MASSO 5704 HERON COVE BROWNSVILLE , TX 78526

As of: 01/12/2015 12:48:49 PM

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This Page is Not Sufficient for Filings with the Secretary of State

Obtain a certification for filings with the Secretary of State.

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SOUTHWEST ARCADES, INC.
Texas Taxpayer Number	32003369082
Mailing Address	3100 E 14TH ST BROWNSVILLE, TX 78521-3316
Right to Transact Business in Texas	FRANCHISE TAX INVOLUNTARILY ENDED Request tax clearance to reinstate entity
State of Formation	TX
Effective SOS Registration Date	04/27/2001
Texas SOS File Number	0162635300
Registered Agent Name	RICHARD E ZAYAS
Registered Office Street Address	3100 E. 14TH STREET BROWNSVILLE, TX 78521

Account #	Owner Name	Mailing Address	Legal Description
0001000204700603	SOUTHWEST ARCADE, INC	3100 E 14TH ST BROWNSVILLE, TX 78521-3316	EQPT AT 3451 PABLO KISEL, BROWNSVILLE

BACK

DELINQUENT TAXES DUE

Tax Year	Base Due	Penalty/Interest	Attorney Fees/Other Fees	Total
2005	$2,965.28	$3,558.35	$1,062.89	$7,586.52
2004	$2,669.21	$3,523.36	$999.87	$7,192.44
2003	$2,680.38	$3,859.76	$981.02	$7,521.16

TOTAL

$8,314.87

$10,941.47

$3,043.78

$22,300.12