FROM THE AUDIT REPORT:
"The land was acquired in connection with a discussion GBIC was having with Steel Dynamics, Inc. (SDI) for a project related to proposed construction of a steel mill. Interest by SDI in Brownsville had developed because of the signing of an option agreement between Big River Steel (BRS) and the Port of Brownsville for a $1.6 billion steel mill and distribution facility.
SDI would, excluding any work created by their construction of the steel mill and related apparatus, bring to the area 600 jobs at an average annual salary of $75,000 each.
Rene De Coss was the attorney representing GBIC in connection with the April 2019 acquisition of the three tracts of land (Shades/Orestes). Mr. De Coss was also the attorney for the City of Brownsville at the time.
According to Mr. De Coss, “What I do know is that when GBIC started trying to negotiate the purchase of tracks of land surrounding its property, they found out that land speculators had already entered into options with many of the land owners and GBIC was forced to negotiate with them to acquire the tracts.”
QUESTIONS THAT WERE NEVER ASKED:
"Another factor in SDI moving on was securing industrial zoning. GBIC had not been successful in its bid to get approval to zone the properties as heavy industrial."
And guess who was on the Planning and Zoning board and who suggested that the plant be moved closer to the port (where he and confederates had property to sell)?
Would you believe board member Abraham Galonsky, of the $2.3 million sale of Casa del Nylon infamy?
Why didn't the audit list the name(s) of the "land speculators" who had acquired options on the three properties? Why didn't they say that it was none other than Patricio Sampayo who had purchased the options? Sampayo is the president and Cowen is the director of the Brownsville Housing Opportunity Corporation. Cowen was then a board member of the GBIC and requested and received at least two individual reports on the three parcels from then-GBIC CEO Mario Lozoya.
Why didn't the auditors ask Sampayo where he had found out the GBIC was interested in those particular three parcels? If the GBIC had agreed to buy the lots from Sampayo at his asking price (at $25,000 or more per acre?) that would make it 142 x $6,000 to pocket a neat $852,000 based on insider information.
It never got to that point because Sampayo insisted on negotiating directly with the plant's represenatives, a clear violation of the Non-Disclosure Agreement signed by the GBIC and SDI.
In the end, however, SDI elected not to extend its letter of intent, which expired on March 6, 2019. Among the reasons given was the time it was taking to aggregate the land. GBIC never bought he land from Sampayo and waited until his option on the land expired. It now owns the land that it purchased from the original sellers.
Because of the insider trading, the city lost 600 jobs at $75,000 and lost a doubling of its property tax revenue.
Instead, the audit focuses on recommendations of procedure which the city commission recently adopted. Cowen is now the chairman of the GBIC. “That transaction wasn’t properly vetted and executed in my opinion,” Cowen piously told the Brownsville Herald.“Those types of things raised are big red flags in terms of the expectations that we have as a commission,” he said. “We want things done right, and that transaction never came to the commission either for approval. That’s law. We need to approve those. Whenever GBIC expends funds, the commission has to approve it. We approved their budget and that transaction was not in their budget. It needed to come to the commission.”
Cowen said he referred the matter to the Cameron County District Attorney and federal law enforcement. Will he include evidence of the insider trading that gave his pal Sampayo control off the land the GBIC needed to foster the economic development the residents of our city so baldy need?
34 comments:
Let's see if the DA listens to Cowen? Anyone for bets?
It will all be swept under the rug at the CC DA's office
with all the other cases that keep getting postponed.
John Cowen has lost the trust of the Mexican people. He will not win re-election, bro.
He has the face of our historical oppressor. Look at him. He ain't posing with viejitas in Southmost anymore, is he?
GBIC conspired with third parties to try an execute a “flip”. Lots of money to be made in a short time with insider help to be divided up post transaction. If there is no criminal activity in this deal, then pig’s really do fly.
The DA and the FBI are going to need bigger offices. Ask about needing more land and ask GBIC...
Since when are there land speculators here? Not since the gringos arrived here. The only difference is that the first land speculators took by force with help of los rinches, estos pendejos have to pay, hire a rinche idiotas
Businessman know how to do business and make profit.
The rest of us: we buy junk, trinkets, and sparkly things and we never save.
Alvarez makes easy work of Yildirim
What a mismatch but nothing new here it will happen again and again eat shit gringos...
Best to do would be to abolish this non-performing entity and re-design one that may yield success. GBIC has been a dismal failure.
Dare to be great, Brownsville!
That MEGA idiota snowflake hillbilly coco wanna be white is guarding the drop box at PUB, pinche pendejo that's NOT a ballot drop bos idiota the voting is OVER and your idol LOST estupido
Too bad CPAC did not invite you to fla idiot.
Call a business man a business man don't call a crook a business man not the same!
All this show from Cowen to help get Neece re-elected. If Lozaya did something shady why did they opt to pay him 500 thousand dollars? Power hungry Cowen looking to help power hungry Neece.
I’m confused. The city audit says no irregularities. But cowens opinion is different? Facts please. Opinions are like assholes, every has one and they all stink; especially John Cowen’s the filthiest of them all.
Sounds like John has the Crazy Cowen syndrome just like Phillip and Ralph.
Están bien locos esos inbreeders
Why dont the city begin an investigation of the purchase of the The Casa Del Nylon which was purchased at three times its value and was against the law. Pura pinche rata de dos patas.
Get the feds involved!
Investigate the Cowen - Sampayo connection.
Luis Saenz is too smart to let Cowen and Neece use the District Attorneys office for their political gain.
Neece is in trouble, he knows it and will stop at nothing to keep his seat.
February 28, 2021 at 12:49 PM
You are a very sharp person !!! A crook is not a business man. Right on.
Trump’s speech at CPAC was full of falsehoods and exaggerations.
Hillbillys are stupid that's why dumb ass pendejos.
How can you tell his is the filthiest? Hummmmm did you smell it or kiss it? just wondering...
February 28, 2021 at 1:59 PM
BOTH
Protesters demand ERCOT take responsibility for disastrous failure
Here the city wants to give that idiot a pay hike from 350k to 425k plus more incentives like a life time job - imagine that?
sure ifs not their money
Even their pockets are at arm's lenghts where's the DA on this and that and everywhere else where there's an elected official????
Nothing but PURE RATS HERE in Brownsville, always trying to make a fast buck with OPM-others people money.
Brownsville is famous for its internal audits. Crooks and thieves investigating crooks and thieves. Call the DA’s office and the FBI and ask them why they don’t investigate rampant corruption in browntown.
Y los chekes de Biden?
Attorney Richard D. Schnell is Orestes Investments LP and Shades of Earth LP. Follow the trail. Obviously, he is not the money behind the sale, just the attorney setting up for his important clients who screwed the city!
Juan its just a little flip of this property thats it not to worry, so who was the fink or finks that were going to benefit from this transactions? look for them juan. Will the super mostachon our favorite DA Luis Saenz do anything about this ? Really? luis ya ni la chingas do your work puto.
March 1, 2021 at 8:10 AM
Not only a shallow thinker but behind the times about 60 years - yea "right on" hahahahaha I needed that smh
Juan perhaps the GBIC should change their name to TRANSAS INC., think that is a better name for this outfits of Sin Verguenzas. Dont think the Cameron county DA would might the name change. lol
City Manager Bernal continues to line his pockets with the citizens of Brownsville $$$$. Not only with back door land deals but also with partnering up with investment companies to steal from the Police Officer's Retirement funds as the City of Brownsville Police Chief of PFelix "El CHapo" Sauceda has agreed to help by getting in bed with the Brownsville Police Officer's President and giving him a day office job with absolutely nothing to do so he will look the other way while Chief Felix "El Chapo" and City Manager Bernal
steal from the Brownsville Officers..
#worstchiefever...
@8:57 How does ese pendejo knows what Trump said??? Because he's so obsessed with Trump he watches him speak! Stop watching him pendejo if you don't like him! Nobody is forcing you to watch! Go watch numbnuts Biden struggling to complete sentences! Hahahahaha!
@10:20am - you should work on more realistic conspiracy theories.
@10:20
A que pinche Orlandita tan odiosa! Oye putito ya deja de llorar y disfruta tu jubilación. Corriste tu carrera y tuviste tu oportunidad. Hiciste lo que hiciste, así que ahora sigue adelante cabron! Disfruta de tu familia o disfruta de tus paseos de cincuenta millas en tu bicicleta sin asiento. Todo es cosa tuya
y nadie te juzgará.
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