GALLEGOS CHOOSE BENCH TRIAL, RESET TO OCTOBER 21

Special to El Rrun-Rrun

An order signed by Federal Judge Fernando Rodriguez has given defendants Ruben Gallegos Sr. and Ruben Gallegos Jr. a continuance and instructed the U.S. Office of the Inspector General (OIG) to give the defendants any documentation related to the defense of their charges of conspiracy and theft of federal funds.

This will move the trial past the last date set from October 11 to October 21. The men have also asked the court to give them a bench trial – to be heard by Rodriguez – instead of a jury trial that they had requested up to now. 

Known as the Brady law, it requires the government to make available any and all potentially exculpatory evidence to the defense. The trial of the Gallegos has been continually reset as their defense seeks any documentation that may have approved the raising of their salaries above the $183,000 cap set on the salaries of non-profit officers.

The Gallegos claim that that the amount above the salary cap had been justified as "indirect costs" by the government. 

At the time of the indictments, both men had awarded themselves salaries topping $500,000. Gallegos Sr. was president of  International Education Services (IES), and Gallegos Jr. was it's Chief Executive Officer. Juan Gonzalez, the Chief Financial Officer, has already pleaded guilty to conspiracy and theft charges and will turn state's evidence. Gonzalez is brother-in-law to Gallegos Sr. and uncle to Gallegos Jr.

In the latest round of motions by their attorneys, the Gallegos want the IG to turn over any and all communications with IES of by the Cost Accounting Standards, which requires certain contractors and subcontractors to comply with Cost Accounting Standards Administration (CAS) and to disclose in writing and follow consistently their cost accounting practices.

The men have repeatedly argued that their salary increases past the $183,000 cap were known to CAS and that they were under the impression that the increases were within the federal guidelines and considered "indirect costs" despite evidence that they warned Gonzalez – who in turn told the Gallegos – that as far back as 2016 the OIG had warned them of the potential violations of the cap.

The judge's order for the OIG did not dismiss the charges or affect the other charges resulting from the three men buying and renting properties to themselves (IES) at exorbitant prices. A government report stated that IES misapplied an estimated $17million.