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HomeUSAAllegations element allegations in opposition to migrant shelter CEO

Allegations element allegations in opposition to migrant shelter CEO

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September 4—Ruben Gallegos Jr., CEO of Worldwide Schooling Companies, or IES, earlier than US Justice of the Peace Choose Ronald G. Morgan was spending the weekend and Labor Day in federal custody after he was ordered held with out bond on Friday.

A federal grand jury handed up an indictment on August 30 charging Gallegos with embezzlement and theft.

Gallegos was paid $183,000 over the cap restrict, together with his 2017 wage of $435,416.88, in line with the indictment and a part of the indictment. The indictment additionally says others have been paid increased salaries, one $506,0032.22 and the opposite $377,060.96 — additionally in violation of wage caps — however their names are redacted within the doc.

Gallegos served as CEO of IES from 2014 to 2018 till the federal authorities determined it could not renew its funding for the IES shelter. Federal courtroom paperwork present Morgan was taken into custody Thursday after a bench warrant was issued for his arrest.

In accordance with the federal indictment, IES contracted with the Unaccompanied Alien Kids Program and supplied non permanent shelter care and different associated companies to unaccompanied alien youngsters. IES receives almost all of its funding within the type of federal grants, and for every fiscal yr from 2014 via 2018, it acquired tens of millions of {dollars} in federal grant funds.

Gallegos faces one depend of conspiracy and two counts of theft of federally funded packages.

As of August 30, from 2014 to 2018, in line with the partially unsealed federal indictment, Gallegos knowingly conspired with one other unspecified individual to commit a criminal offense in opposition to the US, “by embezzlement, theft, fraud To knowingly switch with out authorization, and knowingly misappropriate property valued at $5,000 US {dollars} or extra, and owned by an establishment receiving greater than $10,000 US {dollars} in federal assist in anyone yr interval. is, or is beneath his care, custody, or management.”

The indictment states that from 2014 to 2017, Gallegos and one other unidentified individual compelled IES to make use of federal grant funds to pay themselves salaries that exceeded the wage limits imposed by federal rules by tens of millions of {dollars}. have been

In accordance with the indictment, the cap restrict for Gallegos’ wage was $183,000. In a 2014 assembly, Gallegos advised the defendant he needed his wage elevated by about $300,000, authorities stated. With the defendant’s approval, IES paid him roughly $491,540.04 in wage, in violation of the cap restrict of $181,500, in line with officers. Gallegos acquired a $1,000 increase in 2015, bringing his wage to $492,001.62, the indictment states. His 2017 wage was $435,416.88, officers stated.

The USA Congress has prohibited the usage of grant funds to pay salaries above a sure price. As well as, federal rules additional restrict the expenditure of grant funds.

The indictment additionally alleges that Gallegos, the defendants and IES didn’t adjust to federal guidelines that require aggressive bidding and set rental value limits in arm’s-length transactions. shouldn’t be achieved

Gallegos, via an affiliated group, bought property in San Benito at a value of $100,000 that was to develop into the location of the IES San Benito shelter, in line with the indictment. In 2014, the defendants submitted a grant software to the ORR (Workplace of Refugee Resettlement) and requested funds to function the shelter, officers stated. “Respondents falsely claimed that the shelter was operational and would serve roughly 1,040 youngsters throughout FY-2015. The IES San Benito Shelter was not operational throughout FY-2015,” the indictment stated.

As well as, Gallegos and others used IES federal grant funds to lease properties to themselves and others, “at charges exceeding the boundaries imposed by federal rules,” officers stated.

The indictment states that Gallegos and others took steps to hide the scheme, together with however not restricted to utilizing actual property holding firms to hide possession of the properties they have been leasing to IES; failure to report related-party leases in audits; Paying elevated salaries and related-party leases as oblique prices; itemizing prohibited development prices as working prices; and failing to reveal contracts for companies to associated events.

The federal indictment reads that the federal authorities is searching for to grab a number of properties on Maverick Highway that Gallegos owns. One of many properties on Maverick Highway is a small body home with a big tract of land subsequent to it.

In accordance with courtroom paperwork, Gallegos’ case was scheduled to be heard earlier than U.S. District Choose Rolando Olvera Jr., nevertheless Olvera recused himself from the case on Friday and it has been reassigned to U.S. District Choose Fernando Rodriguez Jr. .

If convicted of depend one of many costs, Gallegos faces as much as 5 years in federal jail, or a $250,000 high quality and three years of supervised launch. If convicted on depend two of the indictment, he might withstand 10 years in federal jail, or a $250,000 high quality and three years of supervised launch.

Gallegos’ subsequent courtroom look is scheduled for Sept. 7 earlier than Justice of the Peace Choose Morgan.

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