Judge nixes plea deals for pair accused of embezzling millions from hospital

Feb. 16--It's been close to 10 years since former hospital executive Richard Crabtree and his then love interest, Loretta Mares, allegedly began to embezzle some $3 million from what is now Christus St. Vincent Regional Medical Center to buy a vehicle, a home and country club memberships.

State Attorney General Gary King's office knew about the allegations for about three years before filing fraud and conspiracy charges against Crabtree and Mares, and the charges have been pending for two years. The case was close to a resolution, but a spokesman for King's office said the agency is now "back to square one."

Phil Sisneros said last week that a judge has rejected plea agreements with Mares and Crabtree because he thought the deals weren't punitive enough.

"It's not our fault," Sisneros said. "The judge in the Mares case said he wasn't comfortable without there being some restitution clause included, something stronger, so he wants us to come back with something that does include that. So we are in negotiations with her attorney. And with Crabtree, the judge seemed upset that there was not a specific jail time penalty included or restitution, so that is being renegotiated."

Crabtree was chief financial officer at the hospital when he and his then girlfriend, Mares -- who also has been romantically linked to three-term Albuquerque mayor Martin Chavez -- allegedly collaborated to steal millions of dollars. They are accused of billing the hospital for fake or unnecessary computer system upgrades and funneling the payments through companies owned in part by Mares and her two brothers.

The crimes allegedly occurred between 2005 and 2008, according to court documents. The hospital reported them to King's office in 2008. But it wasn't until February 2o12 -- after an insurance company that had compensated the hospital for the loss filed a civil suit against the pair -- that King's office indicted Crabtree and Mares on numerous counts of felony fraud and conspiracy.

In March, Crabtree -- who faced a possible maximum sentence of 148 years in jail and fines of up to $140,000 for the 19 felony charges pending against him -- pleaded guilty to four of those counts in a deal that called for him to serve five years of probation and pay an undetermined amount of restitution.

The deal was reached while District Judge Michael Martinez was sitting in for District Judge Ross Sanchez, who was out on medical leave. But when Sanchez returned from leave in August, he rejected the deal.

Mares -- who also has used the name Bernadette Gallegos -- pleaded guilty in March 2013, as well, admitting to three of the 11 counts pending against her in a deal that would have called for an undetermined amount of restitution. She was scheduled to be sentenced in December, then January. But, according to Sisneros, that plea also has been rejected by Sanchez.

"It doesn't mean they were bad agreements," Sisneros said Friday. "It just means that a particular judge doesn't like them, and that's the way it is in any of the cases. The judge has the power to say, 'I don't like these. Go back to the drawing board.' "

Sisneros said they agreements might have been all that the defendants' attorneys would agree to at the time, but, he said, "I can tell you that we are at the point now that if this doesn't work, we are happy to go to trial."

For now, Sisneros said, Assistant District Attorney Michael Sanchez, who is prosecuting the case for King's office, will try again to reach a deal with Crabtree and Mares' attorneys that the judge will accept. The time frame for negotiating new deals, Sisneros said, is indefinite.

Michael Sanchez declined to comment on the cases. And neither Crabtree's attorney, B.J. Crow, or Mares' attorney, Robert Gorence, returned calls seeking comment Friday.

Judge Ross Sanchez's secretary said Friday that the judge could not comment because the case was ongoing. Sisneros said there is no written record of the judge's reasons for denying the pleas, or of the exact terms of the proffered plea agreements.

Meanwhile, the civil suit filed in federal court by the hospital's insurance company against Crabtree and Mares is still pending, although Mares' brothers, Michael Gallegos and Steven R. Gallegos, have been dismissed as defendants in that case.

Contact Phaedra Haywood at 986-3068 or phaywood@sfnewmexican.com.

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