Former University at San Antonio Projects Manager Indicted by Federal Grand Jury in Connection with an Alleged Bribery Scheme

August 26, 2013

The Federal Bureau of Investigation (FBI) on August 23, 2013 released the following:

“A federal grand jury in San Antonio this week returned a bribery indictment against 41–year-old James Paul Council, a former project manager in the Facilities Department at the University of Texas at San Antonio, and three other San Antonio area residents in connection with a bribery scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez. As of today, all four defendants have surrendered to federal authorities.

The 17-count indictment charges Council; 47-year-old Alfredo Romero Gonzalez, owner of Power Source Electric, an electrical construction and repair business in San Antonio; 60-year-old Power Source Electric chief estimator and project manager Magin Villalon (a.k.a. “Buddy”); and Villalon’s wife, 56-year-old Sarah Anne Luna, with one count of conspiracy to commit bribery concerning programs receiving federal funds and four counts of mail fraud. Council is also charged with six counts of receiving a bribe; the other defendants, six counts of paying a bribe.

According to the indictment, from approximately August 2011 through September 2012, the defendants allegedly conducted a scheme to bribe a purchasing officer in order to secure UTSA construction contracts. The indictment further alleges that the defendants colluded in the submission of fraudulent, inflated bids to UTSA under the names of sham companies, GNZ Enterprise LLC and Vista Contracting, and fixed at least 40 UTSA contracts. Authorities estimate the submitted bids totaled more than $200,000. Furthermore, the indictment alleges that Council received cash, as well as improvements to his residence for his role in the scheme.

Upon conviction, the defendants face up to five years’ imprisonment on the conspiracy count, up to 10 years’ imprisonment for each bribery related count, and up to 20 years in federal prison for each mail fraud count. All four defendants are on bond pending further court proceedings.

This indictment resulted from an investigation conducted by the agents with the Federal Bureau of Investigation, together with the San Antonio Police Department and the University of Texas at San Antonio Police Department. Assistant United States Attorney James Blankinship is prosecuting this case on behalf of the government.

An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.”

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

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To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


Federal Contractors Accused of $6.5M Fraud

November 7, 2011

Courthouse News Service on November 7, 2011 released the following:

“By DAVID LEE

(CN) – A federal grand jury in San Antonio accused three government contractors of conspiring to defraud the Air Force of $6.5 million through false invoices. Donald Dean Brewer, 62, of Clovis, N.M., his wife, Sherri Lynn Brewer, 62, and James McKinney, 60, of San Antonio, were named in a 17-count indictment.

They are charged with one count of conspiracy to defraud the United States, 12 counts of wire fraud and four counts of major fraud against the United States, the U.S. Attorney for the Western District of Texas said.

The Brewers and McKinney are accused of creating a sham subcontracting business, Enterprise and Deployment LLC, to insert it as an extra subcontractor between prime contractors and Ark Systems, a company for which McKinney worked for as vice president of government systems.

By submitting false invoices, the defendants allegedly caused prime contractors to overcharge the Air Force by including Enterprise and Deployment’s fraudulent charges in the prime contractor invoices.

The indictment claims that from July 2002 through 2008, the obtained about $33.5 million in subcontracts for Enterprise and Deployment, enriching themselves by almost $6.5 million.

Donald Brewer worked for KARTA Technologies, as medical systems infrastructure modernization program manager at Brooks City Base in San Antonio. Both KARTA and Ark contracted with the Air Force. KARTA provided engineers and analysts to evaluate projects and proposals and Ark installed electronics at government medical facilities.

“Allegedly, the taxpayers were overcharged $6 million by a company created by the defendants,” General Services Administration Inspector General Brian D. Miller said in a statement. “This is why we need ethics laws for federal contractors who can in effect steer taxpayer dollars to their own pockets.”

The conspiracy charge carries a statutory maximum penalty of 5 years in federal prison. Each wire fraud charge is punishable by up to 20 years in federal prison and each major fraud charge by up to 10 years.”

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

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To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.