FBI inquiry targets 80 people, began in 2004

05/29/2008

By Ramon Bracamontes / El Paso Times

The federal judge presiding over the FBI's public corruption investigation on Wednesday denied a motion to make the case public, but in doing so revealed the immensity of the case, which began in the summer of 2004 and has uncovered widespread abuses.

U.S. District Judge Frank Montalvo disclosed in his 35-page ruling that more than 80 "persons of interest" have been linked to the investigation, including 35 past or current public officials, 13 lawyers and three current or former judges.

"As of this writing, approximately 12 separate investigations are in progress as a result of the investigatory work initiated in the summer of 2004. To date, the FBI has seized over 2,300 boxes of evidence from the execution of various search warrants and consensual searches," Montalvo wrote in the order that became public Wednesday.

In denying the motion by Carl Starr to unseal documents related to the indictments, Montalvo said confidentiality is necessary for the case to continue.

The investigation, the judge said, also includes 25 months of wiretaps involving thousands of conversations and text messages. Montalvo said in his ruling that 154 people were notified that their conversations were intercepted.

He also said that the FBI has executed 21 searches so far. He said the FBI estimates it has retrieved enormous amounts of computer data.

"The FBI executed the first search warrant at Hospice of El Paso on April 21, 2006," the judge wrote.

At Hospice, authorities seized 554 boxes of evidence.

A second series of search warrants were executed on May 9, 2006, at the National Center for Employment of the Disabled and its accounting firm. More than 1,300 boxes were seized at the time, the order states.

"The FBI executed the third search warrant on the residence of Marc Schwartz," Montalvo wrote.

Schwartz was the spokesman for NCED at the time. He no longer works for NCED, which is now ReadyOne Industries.

According to Montalvo's writing, the investigation then proceeded to the offices of Access HealthSource and its executives, and then on to Salvador "Sal" Mena's home and business. Mena is a former El Paso Independent School District trustee. He has since resigned from the board.

"Agents also seized $28,250 in cash from a third location: Mena's bank safe-deposit box," Montalvo wrote.

The order also revealed that during the May 15, 2007, search at the El Paso County Courthouse, agents took:

Sixteen boxes of evidence from County Judge Anthony Cobos' office.

Twelve boxes of evidence from County Commissioner Luis Sariñana's office.

Twenty-one boxes of evidence from County Commissioner Miguel Terán's office and home.

Sixteen boxes of evidence from the home of Arturo "Tury" Duran, a former Thomason Hospital board member. Duran's home was searched May 15, 2007.

Montalvo wrote that from former Access HealthSource President and CEO Frank Apodaca the FBI seized about $240,000 from one bank account; $89,000 from another account; a $32,000 Mercedes-Benz; a $29,000 Cadillac Escalade; and an $11,000 motorcycle. No charges have been filed against Apodaca.

Montalvo also wrote that he reviewed lengthy affidavits and was convinced that publicizing the content would jeopardize the investigation and "risk the livelihood and welfare of the persons who have cooperated in this investigation."

Montalvo also wrote: "FBI personnel have conducted interviews with numerous individuals. FBI personnel have interviewed some of these same people on multiple occasions. This is especially true of the defendants who have pleaded guilty and continue to debrief, and also of the confidential sources who continue to provide new information."

Montalvo further explained that the first guilty plea had to be taken in San Antonio "in response to security concerns."

The first person to plead guilty in the case was John Travis Ketner, the former chief of staff for Cobos. Ketner pleaded guilty June 8, 2007. Since then, six others have pleaded guilty.

"The court is not asking anyone to 'trust me because I say so.' Instead, the court is suggesting that the pubic should trust the system, because the procedures in place have withstood the test of time," Montalvo wrote in explaining his decision.

The only documents Montalvo agreed to unseal were the "order setting bond" for the seven who have pleaded guilty, as well as their release orders and the minutes from their hearings.

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The public corruption case by the numbers:

12 separate investigations.

80 persons of interest including 35 past or present public officials, 13 lawyers and three current or former judges.

2,300 boxes of evidence collected.

154 people notified telephone conversations have been intercepted.

21 searches conducted.

Seven guilty pleas.