Wednesday, September 28, 2016

RIGGED INSURANCE CONTRACTS SPILL FROM S.A. TO RGV

"In total, prosecutor Mark Roomberg said, the commissions resulting from the rigged contracts were $2.5 million for the entire group.”

Ex-Harlandale ISD trustee admits fraud conspiracy involving contracts at four San Antonio school districts. The FBI is also investigating the trio’s activity at school districts in the Rio Grande Valley, the documents show.

By Guillermo Contreras
San Antonio Express-News

(William O. Haff leaves the John Wood Federal Courthouse last March. Haff pleaded guilty to conspiracy to commit fraud charges related to an F.B.I. public corruption investigation that has spread to multiple school districts and the now-defunct Bexar Metropolitan Water District.)

A former Harlandale ISD board member pleaded guilty Tuesday in connection with an FBI investigation into millions of dollars in rigged insurance contracts at other area school districts and at the now-defunct Bexar Metropolitan Water District.

Joshua Cerna, 43, entered the guilty plea to a charge of conspiracy to commit honest services wire fraud, admitting he helped corrupt the insurance company selection process at San Antonio, Edgewood and South San Antonio Independent chsool districts and Bexar Met.

In total, prosecutor Mark Roomberg said, the commissions resulting from the rigged contracts were “$2.5 million for the entire group.” The conspiracy lasted from March 20, 2007, to June 30, 2014, court documents say. Though Cerna served on the Harlandale boaed for 10 years through 2012, that district is not among those listed as being defrauded.

As for how much in contracts was corrupted, and how much Cerna must pay back in restitution, that is going to be contested, Cerna’s lawyer, Chris Gober told U.S. District Judge Xavier Rodriguez.

“Goods and services were provided,” Gober said. “It’s just there’s an issue about a conflict of interest.”

Cerna was charged in May, but his charging document (known as a “criminal information”) was kept secret until Tuesday — after he pleaded guilty and after his former co-worker in the insurance industry, Samuel Mullen, was indicted and arrested Friday in the Rio Grande Valley on a similar conspiracy charge.

Cerna was released on an unsecured bond after his plea hearing Tuesday. He and his lawyer declined comment.
Cerna and Mullen both face up to five years in prison. Rodriguez set Cerna’s sentencing for Feb. 8. Mullen is scheduled for a bail hearing on Wednesday in McAllen.

5 comments:

Anonymous said...

I wonder why the FBI doesnt get involved or investigates Bisd and Cob

Anonymous said...

The FBI definetly needs to investigate all the wasted tax dollars that were used to purchase deplorable buildings that still sit unoccupied five years after they were bought. Accountability seems to be a word that doesn't exist in Brownsville and this abuse will continue if left unchecked.

Anonymous said...

This same shit is going on at BISD. Your have the Salazar and escobedo insurance wheeling and dealing to get insurance contracts awarded. Don't know what's worst corruption within certain majority board members and internal employees

Anonymous said...

Watch out Cesar Lopez and Escobedo insurance ...

Anonymous said...

Pura pinche ratas de dos patas tenemos como figures publicas.

rita