Architect Bernardo Lucero Jr. pleaded guilty to two counts of conspiracy to defraud the El Paso Independent School District and the citizens of El Paso. Count one is conspiracy to commit mail fraud and the deprivation of honest services and count two is conspiracy to make false statements to obtain credit.
The plea came this morning before U.S. District Judge Frank Montalvo, U.S. Attorney Johnny Sutton announced in a news release.
"By pleading guilty, Lucero admitted that from January 2002 to July 24, 2007, he agreed to assist an elected official secure a $25,000 home improvement loan from United Bank of El Paso Del Norte by providing false and fraudulent information," stated the news release. "In addition, Lucero admitted to conspiring to provide and help others provide money to an elected trustee of the EPISD in exchange for acts on the part of the official in his or her official capacity."
From the web page of the company: "The firm was founded in 1988 as Lucero / Melendez Architects combining the firms of B. Lucero Architects and Jose Melendez Architects. Since then, the Firm has grown from a four-person firm to a team of twelve; licensed architects, graduate architects, CADD technicians, and administrative personnel. All contribute to provide quality architectural services to the community.
"Lucero / Melendez has maintained its excellent reputation by consistently providing architectural design services in the highest tradition of the profession." [link]
The plea document states that Lucero "conspired to submit a letter and a mechanics lien to United Bank of El Paso Del Norte ... for the purpose of influencing the bank to fund a $25,000 loan which purported to be a home improvement loan for the remodeling of the residence of a family member of an elected official, when the defendant knew the money was not intended for that purpose."
The El Paso Times reported that the a mechanics lien contract filed by by United Bank of El Paso Del Norte in February 2006 "shows that Lucero worked on a $25,000 project at the home of Katherine E. Mena in the 3200 block of Altura Avenue.
"Katherine Mena is the daughter of EPISD Trustee Sal Mena Jr. ... whose offices were searched by federal investigators in December 2006," reported the El Paso Times.
El Paso Independent School District minutes indicate that Lucero received a contract worth about $1 million for profesisonal services in relation to the Northwest Middle School on June 8, 2004. The item was on the consent agenda. [minutes]
Lucero also was a consultant on the Aoy Elementary School project.
Lucero is the third person to plead guilty to a crime in connection with the wide FBI public corruption investigation.
Travis Ketner, former chief of staff for County Judge Anthony Cobos, was the first person to plead guilty. His plea came in June, in a detailed document that gave information but did not name multiple unindicted co-conspirators. The information was detailed enough that the identities of many of the co-conspirators could easily be guessed. [ketner plea]
Ketner's guilty plea and the events that followed have implicated leaders of El Paso's political, legal and business communities in a web of backroom dealings that resulted in govrnment contracts and personal favors. However, because of the volume of information being processed by investigators, it has been difficult for the public and for those involved to assess who is part of the web, and who is merely caught in the second-hand smoke.
Former County Commissioner Betti Flores pleaded guilty in early July to various charges of public corruption. [story] [plea document]
In addition to the guilty pleas, several high-ranking officials of various companies that do business with governmental entities in El Paso have left their companies.
On Thursday (Aug. 16, 2007), The Bond Buyer, which tags itself as "The Daily Newspaper of Public Finance," reported in a story datelined out of Dallas that RBC Capital Markets managing director Mel Schonhorst and vice president Steven Fuller no longer were with the company. "It is our policy not to comment on personnel matters," the company stated, also noting that it "understands that it is not a subject or target of the investigation."
According to the article, Schonhorst previously worked for First Southwest. That company has represented most of El Paso's major government institutions. The article also noted the recent departures of Hector Zavaleta, a vice president of First Southwest who said through his lawyer he is cooperating in the investigation, and Roberto "Bobby" Ruiz, managing director of Bear, Stearns & Co.
In addition, the El Paso Times reported that Frank Apodaca, president and CEO of Access HealthSource, was fired, according to the company's quarterly report filed this week.
There also has been legal action surrounding the FBI investigation.
Mary Stillinger, who represents three people named as targets in the investigation, was ruled to have a conflict in representing all three. She has appealed. [background]
And Martie Jobe, who has said in court filings that she is one of the co-conspirators name din Ketner's plea, has filed a defamation lawsuit against Ketner and has asked Judge Montalvo to recuse himself from hearing any issues related to her. [background]
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