Ex-Access CEO, two former Socorro ISD trustees to be sentenced Monday [El Paso Times, Texas]

Sept. 30--The man who directed a flow of bribes to local elected officials in order to benefit his health insurance company is scheduled to be sentenced on Monday, along with two former school district trustees who aided in the scheme.

Last year, former CEO of Access HealthSource Francisco "Frank" Apodaca pleaded guilty to one count of racketeering in a scheme to bribe members of the El Paso County Commissioners Court and trustees of the El Paso, Ysleta and Socorro school districts in exchange for taxpayer business.

Federal prosecutors have argued that Access did not deliver on its obligations, costing district employees and taxpayers millions.

Two former Socorro Independent School District trustees, Raymundo "Ray" Rodriguez and Charles "Charlie" Garcia, are also scheduled to be sentenced Monday along with Apodaca. Garcia pleaded guilty last year to a count of conspiracy to commit mail fraud, and Rodriguez pleaded guilty to a count of conspiracy to commit wire fraud.

Eight others who were indicted in the case in 2010 also pleaded guilty to various charges of fraud or violating the Racketeer Influenced and Corrupt Organizations Act, known as RICO. They were Access spokesman Marc Schwartz; former El Paso County Judge Luther Jones; former El Paso County District Clerk Gilbert Sanchez; lawyer David Escobar; former Ysleta Independent School District board trustees Linda Chavez and Milton "Mickey" Duntley; former city representative and County Commissioner Larry Medina; and former SISD trustee and former Socorro mayor Guillermo "Willie" Gandara Sr.

According to a factual basis document read in court by prosecutors at Apodaca's plea hearing last year, Apodaca became president and CEO of Access in 2000. That same year, the company began bribing then-EPISD board trustee Salvador "Sal" Mena and a business partner with a $40,000 "consulting contract."

Mena later pleaded guilty to the conspiracy in a separate proceeding and is scheduled to be sentenced in November.

By the end of 2002, Mena had persuaded other board trustees to overlook the district's $4 million claim against Access and sign a contract with the company. Once Access began doing business with the district in early 2003, it paid Mena's partner $6,300 a month in "consulting fees" for the life of the contract, which was five years. Mena's partner then split the proceeds with Mena.

Jones, a former county judge, and Escobar pressured Ysleta school officials to support the Access deal in exchange for Apodaca and other Access officials' support in a scheme to force a new law firm on the Ysleta school district. The new firm would give Jones and Escobar a cut of its fees.

Apodaca and other Access officials asked Jones for help in 2004 when the Ysleta school board voted unanimously to fire Access and award its business to Blue Cross Blue Shield. In September 2004, the Ysleta school board began to consider reopening Blue Cross Blue Shield's five-year contract, and on Oct. 27, 2004, it voted to shift its business back to Access.

YISD trustees Duntley and Chavez have admitted taking bribes in exchange for their votes.

In mid-2005, an insurance consultant projected that Access was on pace to not provide $6 million in hospital discounts it had promised. Most of the expense fell on district employees, who eventually began paying higher co-payments and deductibles.

Jones and Escobar began to push the school board to fire its law firm, Mounce, Green, Myers, Safi and Galatzan, and hire one of his choosing that would give Jones and Escobar 20 percent of the revenue it got from the school district.

The indictment charges that Jones and Escobar received almost $17,000 as a part of the conspiracy.

As Apodaca, Luther Jones and Escobar conspired to rig contracts in the Ysleta district, a seat was opening up on the El Paso County Commissioners Court. Dolores Briones, then the county judge, appointed Medina to fill the seat at the start of 2006.

Federal prosecutors have called Briones a close friend of Schwartz's, and picked Medina after he assured her he would support Access.

Medina solicited - and Access offered - a $10,000 bribe for his help in awarding Access the county's business. He was paid at least $500 in the form of a campaign contribution.

The Access indictment says that Briones also received improper gifts from Access and she voted with Medina to hire the company. She has pleaded guilty to a separate corruption conspiracy, but she was not charged in the Access case.

At about the same time Access was embroiled in controversy over its contract with YISD, Charlie Garcia was talking to Access officials about how to help it keep its contract with the Socorro school district, which was set to expire on Sept. 1, 2005, according to documents.

Garcia joined a successful vote in August 2006 to keep Access even though the school district's insurance committee recommended another company, Cigna. The deal ultimately unraveled after a school trustee, apparently Gandara, reported that Access had violated the prohibition against talking to trustees. The school district ended up contracting with Cigna.

According to an Aug. 22, 2005, wiretap by federal agents, Garcia apparently knew he wasn't supposed to be talking to Schwartz, who told Garcia that they had "never talked," and Garcia agreed.

Garcia's attorney has denied Garcia ever accepted any bribes from Access.

Rodriguez, a former medical-supply salesman, was accused of trading his vote for Access for the sale of a hospital bed to a company controlled by Access.

Federal prosecutors had also alleged Gandara Sr. assisted Rodriguez's election campaign for Socorro board trustee by "securing money for Rodriguez from certain vendors to whom Gandara and Rodriguez would be indebted," according to court documents filed in the case.

As part of the agreement, prosecutors said, Rodriguez would vote to secure school district contracts with vendors of Gandara's choice, while Gandara would vote for contracts with vendors of Rodriguez's choice.

Last year, Jones was sentenced to five years in prison in the Access case, and Sanchez was sentenced to two years in prison.

In February, Escobar and Duntley each received about three years in prison. Escobar was ordered to pay $52,000 in fines and restitution. Duntley was ordered to pay $30,000.

Medina was sentenced to a year and four months in prison and ordered to pay $156,000 in fines and restitution. Chavez was given five years of probation and ordered to pay $9,000.

Schwartz is scheduled to be sentenced next month, Gandara is scheduled to be sentenced in November.

The sentencing hearing for Apocada, Garcia and Rodriguez is scheduled to begin at 9 a.m. Monday before U.S. District Judge Frank Montalvo.

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Adriana M. Chavez may be reached at 546-6117.

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