4 appear in federal court, only 3 enter guilty pleas in ongoing public corruption probe

Four people were scheduled to enter pleas before U.S. District Court Judge Frank Montalvo on Thursday afternoon in an ongoing public corruption case.

Only three of the four ended up entering a plea.

Former El Paso District Clerk Gilbert Sanchez, former Ysleta Independent School District trustee Milton “Mickey” Duntley, and former Socorro Independent School District trustee Raymundo “Ray” Rodriguez pled guilty.

Attorney David Escobar did not enter a plea at all.

The four men are part of a group of 11 El Pasoans who turned themselves in to the FBI in September 2010 after they were indicted that same week on federal Racketeer Influenced and Corrupt Organizations or RICO charges.

The case centers around Access HealthSource and its contracts with El Paso County and three school districts from 1998-2007.

The school districts were El Paso Independent School District, Ysleta Independent School District, and Socorro Independent School District. The indictment states there was a pattern of racketeering mail fraud and wire fraud.

RICO indictments returned in September 2010:

Charges Frank Apodaca Jr and Marc Schwartz with two counts of conspiracy to commit mail fraud and deprivation of honest services, two counts of mail fraud, two counts of conspiracy to commit mail and wire fraud.

Charges Larry Medina with one count of conspiracy to commit mail fraud and deprivation of honest services and one count of mail fraud.

Luther Jones, Gilbert Sanchez, David Escobar, Mickey Duntley, Ray Rodriguez with one count each of conspiracy to commit mail fraud.

Charges Willie Gandara Sr. and Linda Chavez with one count each of conspiracy to commit mail and wire fraud.

Schwartz and former Ysleta Independent School District trustee Linda Chavez entered guilty pleas Friday before Montalvo in connection with the El Paso corruption investigation focusing on the now-defunct ACCESS Health Source.

Schwartz pleaded guilty to one count of conspiracy to engage in racketeering activity and faces eight years in federal prison under the plea agreements. According to discussions within Federal court on Friday, Schwartz’s plea is a binding agreement that will result in a 96 month sentence, or eight years.

Chavez pleaded guilty to one count of conspiracy to commit mail and wire fraud and deprivation of honest services and faces up to 20 years in federal prison and a maximum $250,000 fine, however, details of her adjusted plea have not yet been discussed.

By pleading guilty, Schwartz admitted that he carried out schemes on behalf of former ACCESS President Frank Apodaca, former CEO of the National Center for the Employment of the Disabled (NCED) and ACCESS owner Robert “Bob” Jones, and El Paso attorney Luther Jones to pay bribes to elected officials.

Those elected officials included former El Paso Independent School District Trustee Salvador “Sal” Mena, Duntley, former El Paso County Commissioner Elizabeth “Betti” Flores, Medina and former El Paso County Judge Dolores Briones to perform acts in their official capacity which would aid ACCESS in securing and retaining lucrative health care management service contracts.

Chavez, by pleading guilty, admitted to conspiring from June 2004 to July 2005 with Schwartz, Apodaca, Luther Jones and Duntley to secure an Ysleta ISD healthcare services contract with ACCESS. She also admitted to conspiring to secure a YISD contract for legal services with a local law firm at Luther Jones’ and Escobar’s bidding.

ACCESS was a third party administrator of healthcare benefits for self-insured entities.

“(Friday’s) pleas send a strong message regarding the FBI’s continued aggressive targeting of individuals in the El Paso community involved in public corruption. Nothing erodes the public trust more than those who illegally conspire to benefit from taxpayer dollars in order to line their own pockets,” stated FBI Special Agent in Charge Mark Morgan.

Both defendants remain free on bond pending sentencing. A sentencing date has not been set.

Rodriguez, a former Socorro Independent School District trustee, was present during Friday’s hearings when his two co-defendants entered pleas. He did not enter his own plea.

He was called behind closed doors moments before the hearing. Rodriguez appeared in the audience during the plea hearing and left after the pleas were entered.

Rodriguez could be overheard in the hallways following the case telling his attorney, “Well, that was painful,” but declined to comment further on how he felt about the case when questioned.

Another defendant in this case, Medina, has asked Montalvo to disallow some evidence at his trial that pertains to another bribe prosecutors say he received that isn’t part of this case.

Medina’s attorney said he wasn’t even a county commissioner at the time he is alleged to have accepted that other bribe. Montalvo didn’t immediately rule on that motion.

Between 1998 and 2007, ACCESS contracted with self-insured El Paso government entities, including the County and three school districts, to provide administrative services for their health insurance programs.