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A WEB OF VOLUNTEERS?
Paso Del Norte Group names linked to the ongoing fraud and corruption investigation
“I am proud to have been a member of the Paso Del Norte Group. It's a non-profit group of volunteers who have only the city’s best interest at heart.”
—District 8 rep. Robert O’Rourke, PDNG founder William Sanders’ son-in-law
“We want the public to have great confidence that their elected officials are making decisions based on the best information and the best ideas, not on who contributed to whose campaign.”
—City rep. Susie Byrd, PDNG supporter
Here is a list of Paso Del Norte Group members publicly linked by the FBI and the media to ongoing fraud and public corruption investigations:
1. Thomas Chris Balsiger- former president of the International Outsourcing Services. Current PDNG member.
Balsiger has been indicted for a $250,000,000 international coupon fraud scheme. The criminal indictment alleges that Balsiger and 8 other defendants submitted millions of dollars worth of coupons that had never been legitimately redeemed in connection with the purchase of a product. He is a contributor to the political campaigns of City reps Robert O’Rourke and Susie Byrd who signed a “No Corruption Pledge” this summer near El Paso’s Scenic Drive. In December 2007, "conspiracy to obstruct justice" charge was added by a federal grand jury to the 25 other charges filed previously against Chris Balsiger and other former International Outsourcing Services executives. Read FBI indictment.
2. Roberto "Bobby" Ruiz- Investment banker & former managing director of Bear Sterns financial services company. Current PDNG member.
On December 21, 2008, Roberto Ruiz pled guilty to four counts of conspiracy to commit mail, wire fraud and a scheme to defraud the citizens of their right to the honest services of elected officials of the City of El Paso, the El Paso Independent School District, the El Paso Community College District, and the members of the El Paso County Commissioner’s Court by seeking to bribe elected members of those respective boards and councils to secure their votes for certain vendors seeking to do business with the various public entities.
Bear
Sterns is the financial service company for Thomason Hospital. Thomason
president James Valenti denies charges by ex-County Commissioner Betti
Flores that she sold her vote to award " financial advisory contracts
at the county and for the Thomason bond initiative." Jim Valenti, also
a current PDNG member, told the El Paso Times he made the decision to
hire fellow PDNG member Roberto Ruiz' financial advisory company, a
decision that was approved by the Thomason hospital board.
3. Charles F. “Paco” Jordan-Founding owner of C.F. Jordan construction company. Current PDNG member.
County Commisioner Betty Flores was paid $10,000 in exchange for a favorable vote on a contract for the $20 million El Paso County Parking Garage Annex, and to advocate change orders to the contract. The contract was awarded to C.F. Jordan in May 2004. The former county commissioner’s son Adrian Pena, worked for CF Jordan. His phone was tapped by the FBI. The C.F. Jordan company has completed nearly $4 billion in projects including border patrol stations, health care centers, processing centers, hotels, resorts, medical facilities, industrial plants, warehouses, sports complexes, apartments, airports, zoological facilities and military defense projects. Other works include Sea World in San Antonio, the Insights Science Museum in El Paso, and Hotel ZA ZA in Dallas. It is a 300 + million dollar a year company. Chairman Charles "Paco" Jordan started the firm in 1988. The company has satellite offices in Dallas, San Antonio, Tucson Arizona, and Hawaii. C.F. Jordan contributed $3000 to Texans for Rick Perry. He is one of more than 70 current PDNG members who contributed to the Robert O’Rourke campaign.
4. Darren Woody-President and CEO of C.F. Jordan construction company. Current PDNG member.
He has denied charges by a former county commissioner that his company was part of the $10,000 bribe she received in exchange for awarding a 20 million dollar contract to his company, C.F. Jordan. He told the El Paso Times (7-10-07): "At this time, we do not know the facts surrounding Ms. Flores' information or even if they involve our company or its employees. We are attempting to ascertain more information at this time." Darren Woody contributed $1500 to Texans for Rick Perry. He is also an O’Rourke contributor.
5. Ruben “Sonny” Garcia Jr.- owner and president of LKG Enterprises. Current PDNG member.
El Paso Times reports that the FBI suspects him of having bribed officials to protect him and LKG "from a referral for criminal activity, repayment to the County of El Paso of over $600,000 of fraudulently obtained federal funds and a lawsuit by the county." The company was dumped by the county earlier this year for not providing services that were paid for and required for the Border Children’s Mental Health Collaborative.
In December 2007, County Attorney José Rodríguez filed suit against LKG Enterprises Inc. and its president Ruben "Sonny" Garcia Jr., earlier this week. In the lawsuit, Rodriguez accuses LKG and Garcia of failing to provide professional services for the Border Children's Mental Health Collaborative, a federal grant program. The county seeks to recover the $550,000 it paid to LKG under the contract.
6. Frank Apodaca-President and CEO of Access HealthSource, city’s leading administrator for public health benefits. Current PDNG member.
Frank Apodaca, is an apparent target of the FBI and U.S. attorney's office public corruption investigation in El Paso,” the El Paso Times wrote on 7-9-07. “In one of those [six conspiracy] charges, Flores pleaded guilty to taking a bribe for her vote to extend the county's contract with Access HealthSource last year. Access' parent company, Access Plans USA, put Apodaca on paid leave last week and warned stockholders of a potential $2 million loss if Access lost its government clients in El Paso. According to Access' public documents, the company managed more than 700,000 claims for more than 60,000 public employees and dependents last year totaling more than $400 million. The FBI has conducted searches of Apodaca's Access offices and his home. Apodaca, whose assets along with two cars and a motorcycle have been seized by the FBI, was recently placed on paid administrative leave by Access' parent company, the publicly traded Access Plans USA.” Frank Apodaca contributed $2250 to state senator Eliot Shapleigh.
7. Charles Roark- El Paso school district trustee, Former executive Director of Hospice El Paso. Current PDNG member.
“In June, the U.S. attorney's office leveled the first allegations at Access and its contracts with school districts,” reported the El Paso Times (7-9-07) “Charles Roark, an El Paso Independent School District trustee and executive director of Hospice El Paso. Hospice was searched by FBI agents in April 2006. Court records filed by prosecutors last month claim Roark is connected through ‘a free-rent scheme’ provided by NCED for Hospice." He received a $500 contribution from fellow PDNG member and huge contributor to Republican causes, Stanley Jobe, whose wife has also been named as part of the FBI investigation.
8. Raymond Telles- public finance lawyer and former City Council representative. Current PDNG member.
His name appears on a search warrant issued by Federal Judge Frank Motalvo as part of the FBI’s public corruption investigation.
9. David Bernard-current PDNG member.
Bernard is the chairman of the El Paso law firm —Scott, Hulse, Marshall, Feuille, Finger & Thurmond, P.C.—that is being investigated for possible ties to the IOS international coupon fraud scam. According to the El Paso Times (7-30-07): “Prosecutors have told U.S. District Judge Patricia J. Gorence of Wisconsin that federal investigators are looking into the possibility that lawyers for International Outsourcing Services, or IOS, may have obstructed justice by giving false information to officials, that some lawyers were used to harass one or more government witnesses and that some witnesses were coached before they were interviewed by federal investigators.”
10. Hector Zavaleta- Former vice president of First Southwes Company, current PDNG member.
The El Paso Times reported on August 8, 2007, that Zavaleta, former vice president of First Southwest Company who has been the bond counsel “to the city of El Paso and the county in numerous bond-sale transactions involving hundreds of millions of dollars in recent years, has been cooperating [with the FBI corruption investigation] concerning various ‘government entities and officials.’” According to the El Paso Times, it is not clear if Zavaleta is cooperating with the FBI under the advice of his attorneys to get a lighter sentence."Maybe he did something wrong and the lawyers are starting as right now to put a good spin on their client," William Pizzi, a criminal law professor and public corruption expert, said.
County Commissioner Veronica Escobar, a pro-PDNG politician who initially rejoiced that her political enemies were among those under suspicion of receiving bribes, recently went to bat for Zavaleta, calling him a "victim." Now that those doing the bribing are increasingly among her list of Paso Del Norte Group allies, she has called for an end to the federal investigation. "Folks need a sense of closure," Escobar told the El Paso Times.
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