Corruption Trial: Jones, Sanchez Both Found Guilty On All Counts

Former County Judge Luther Jones and former District Clerk Gilbert Sanchez were found guilty by a federal jury Wednesday afternoon on two counts each of conspiracy to commit mail fraud and deprivation of honest services.

Shortly after 2 p.m., in a packed courtroom, Sanchez and Jones were told by a rather stern Judge Frank Montalvo to stand up for the verdict. Jones and Sanchez both bowed their heads as they heard the guilty verdict. Jones’ daughter began sobbing and Sanchez’s mother put her head down in her hands.

Jones and Sanchez were immediately taken into custody and face up to 20 years in prison on each count. Jones’ daughter cried even more when she heard Montalvo say her father had to be taken into custody immediately.

Jones, an attorney, was accused of conspiring with Sanchez to steer a county contract to Altep in late 2003 through 2004. The contract was never awarded to any company.

Orlando Mondragon, Sanchez’ attorney, said his client did not say anything after the verdict was read.

“He was prepared for the worst,” Mondragon said. “I mean, we’re disappointed, but not surprised, because you never know what’s going to happen in trial.”

“That’s my son,” Sanchez’s mother said as her husband led her away from the courthouse.

Stephen Peters, Jones’ attorney, said he was surprised at the verdict but he did not comment on if he was surprised that Jones and Sanchez were taken into custody right away.

Meanwhile, the U.S. Attorney’s Office said the verdict is a victory, one they hope will restore honor and serve as a warning for politicians in the Borderland.

“People that do these backroom deals will get caught,” said Assistant U.S. Attorney Antonio Franco. “They may not get caught today, they may not get caught tomorrow but they will eventually get caught. We elect them to do what’s in the best interest of El Paso or El Paso County, not what’s in their best interest.”

For now, Jones and Sanchez will remain in custody. Montalvo revoked their bond immediately following the verdict and ordered them not to transfer any money or assets to anyone, likely because of the potential for steep fines in the sentencing period.

The next step will be sentencing and that is entirely Montalvo’s decision. He will review a special report that includes a summary of all the evidence discovered in the trial.

Attorneys on both sides can choose to chime in with their own sentencing recommendations. The process usually takes about 90 days. The judge’s sentence isn’t expected to come down for at least another couple of months.

Sanchez earned $85,156 a year as district clerk. He was first elected to the position in 2002 and lost his re-election bid in 2010. Jones has been elected to county and state positions. From 1973 until January of 1981, he served as a member of the Texas House of Representatives. In 1986 he was elected to a full term as County Judge. He left office in Dec. 1990.

Closing arguments in their federal corruption trial concluded early Tuesday afternoon and the jury began deliberations.

Defense attorneys for Jones and Sanchez were given 45 minutes to make their closing arguments in front of a completely packed courtroom. The government was given an hour-and-a-half total, including a final rebuttal, before the case was handed over to the jury at about 2 p.m.

In the government’s initial closing argument, they detailed the two charges against Jones and Sanchez – conspiracy to commit wire and mail fraud, which each carry a sentence of up to 20 years in prison.

U.S. Attorney Laura Gregory pointed out that in a conspiracy, only two people — in this case Jones and Sanchez — have to agree to conspire, and both parties must know of the unlawful plan.

Gregory said it was clear by the communication between Jones and Sanchez, including numerous allegedly incriminating emails the government presented during trial, that they knew of the plan to steer a digitization contract for the district clerk’s office toward Altep.

Peters then gave his closing argument, saying right off the bat, “Luther Jones was not a member of a conspiracy to commit a crime. There was no conspiracy to commit a crime. There is no evidence he had any understanding he was committing an unlawful act.”

Peters pointed out the government spent a lot of time presenting evidence which he said had nothing to do with this case, including Jones’ alleged dirty dealings with the Ysleta Independent School District and the Catalina Land Deal.

U.S. attorneys said during closing arguments that those matters did have relevance because it showed the complete picture of what Jones was up to.

Like Peters, in Sanchez’ closing argument, Mondragon, said there is no documentation or proof that his client engaged in a conspiracy.

Mondragon said the only two witnesses to testify that there was a conspiracy was Sanchez’ former office manager, Fernando Parra, who is facing child porn charges, and former County Commissioner Betti Flores, who has pleaded guilty to receiving a bribe. Neither has been sentenced, which Mondragon told the jury, “Should be a big red flag.”

Key testimony for the prosecution came from Sanchez’s former “right hand man.”

Parra testified during the trial that Sanchez and Jones made shady, corrupt deals. Parra said Jones and Sanchez would meet with leaders of Altep and would even joke about the shady deals they allegedly schemed. Altep hired Jones in 2004 to handle a proposal for a potential multi-million dollar contract with the county to digitize records.

Parra testified Altep representatives went to the district clerk’s office in late 2003 when they found out Sanchez was considering finding a way to digitize county records. Parra testified Jones soon became involved because his friend owned Altep.

Parra explained that he met with Altep’s Bud Moore and that together, they wrote the requirements for companies that wanted to apply for the contract to digitize records with the county of El Paso.

The purpose, Parra said, was to make it impossible for any other vendor to compete, except Altep. He said he, Sanchez, Jones, and Altep’s Roger Miller and Bud Moore had meetings in which they plotted how to steer the contract toward the company.

He said Sanchez came up with the idea of adding a requirement that stated the companies had to be no more than 15 miles away from the courthouse, in case a judge needed a document immediately.

Altep, at that time, was steps away from the county courthouse. At last check, no one from Altep has been charged with a crime.

Parra also testified Jones and Flores schemed together.

“Mr. Jones aimed to advance particular interests, particular vendors and he would meet with her to promote those interests,” Parra said.

Flores testified during the trial that Jones offered her cash for her vote on the Altep contract.

Parra also said Jones schemed with Flores to get Parra a pay raise in 2003 – something Flores admitted to on the stand on Tuesday, as well.

Parra, who used to be the office manager for Sanchez, said he, too had a close relationship with Jones. The two met when Parra was building databases of voters to help local public office candidates. Jones eventually hired him to build these political databases.

“I would visit with him often, even when I was not working for him,” Parra said. “I regarded him as a mentor as a paternal figure.”

Parra also portrayed Jones as power-hungry. He said that on New Years Eve of 2003, when they were plotting the Altep contract, they went out for drinks at a bar on Cincinnati Avenue in West El Paso.

“We were recollecting that 2003 had been a good year for us. We had put a new mayor into office,” Parra said during his testimony. “He had basic control of the city and of the (city) council and said he’d have even more control if he secured the Altep contract.”

Joe Wardy won the mayoral election that year. He has not been charged with a crime in this case.

ABC-7 Reporters Gaby Loria, Darren Hunt and Maria Garcia contributed to this report