A former partner with the law firm of Linebarger, Goggan, Blair & Sampson has been indicted on six counts of felony tampering with a government record in connection with false entries on campaign reports for an Arlington ISD school trustee.
Mario X. Perez, who was a partner in the Linebarger firm when the alleged tampering occurred, was indicted by a Tarrant County grand jury in Fort Worth yesterday.
According to the indictment, Perez made false entries on the campaign reports of Arlington ISD Trustee Aaron Reich during Reich’s 2009 campaign.
Numerous questions about the Linebarger firm’s ethical conduct were at the forefront of a recent controversy over whether Katy ISD should contract with the firm for delinquent tax collection and tax office operation services.
In the Arlington case, the false campaign reports occurred at the same time Perez was directing Linebarger’s efforts to secure contracts with both Arlington ISD and Fort Worth ISD.
In late 2009, the Arlington school board voted to switch to Linebarger from Perdue, Brandon, Fielder, Collins & Mott, which the district had used for nearly 30 years. The following year, Fort Worth ISD voted to contract with Linebarger over Perdue, Brackett, Flores, Utt and Burns, a joint venture the district had used for almost two decades.
The Fort Worth school board later terminated the contract with Linebarger after concerns were raised bidding process had been compromised because Perez had contact with school trustees during a no-contact period. The contacts included text messages containing sample questions for trustees to ask when publicly discussing the two competing proposals.
Court documents related to this week’s indictment said Perez falsified four campaign transactions on Reich’s May 1, 2009, campaign report. Included in those transactions were two donations – one cash and one in-kind – totaling $1,338.70 from Perez’ in-laws, an in-kind contribution of $4,216.06 from a Mansfield, Tex., resident and two in-kind contributions from Murphy Turner & Associates, a political consulting firm, totaling $4,554.76.
None of the contributions were legitimate, according to the indictment.
In the case of the Murphy Turner & Associates “contribution,” it is alleged Perez arranged for the firm to be paid for their services and there was no in-kind donation.
Craig Murphy, a partner in the Murphy Turner firm confirmed to the Fort Worth Star-Telegram that the firm did robo-calling to voters and produced campaign mailers for the Reich campaign. He declined to discuss the matter further, saying the Tarrant County DA’s Office asked the company not to discuss the case publicly.
Reich, who is currently running for re-election to the Arlington school board, has not been charged and has not commented publicly on Perez’ indictment.
Greg Westfall, Perez’ defense attorney called the charges “a political stunt” but did not elaborate.
The allegedly false contributions to the Reich campaign were similar to those that sparked a Fort Worth ISD board member to file an amended campaign finance report in 2010.
In that case, Trustee Tobi Jackson initially reported an in-kind contribution of more than $4,000 from Murphy Turner & Associates. That was later changed to reflect a loan from Perez in the same amount after Perez reportedly warned Jackson she needed to file the amended report or face possible ethics charges.
According to company officials, Perez left the Linebarger firm last October but continued to hold a consulting contract with the company until recently.
The charges against Perez are state jail felonies carrying penalties of up to two years’ incarceration and a fine of up to $10,000 per charge.
*Grabs Popcorn*
This will be fun!
There is nothing fun about it. This is the same firm who today collects our back taxes. The reasons they do so are:
1. We have used them for years and always blindly renew their contract.
2. Bill raised such a stink about using them, the motion to renew was tabled
3. Later Bill and Terry said they were ready to vote, but Alton and Joe refuse to bring it up for an up or down vote.
so
4. They are left to simply collect the taxes on a month to month basis as we don’t have sufficient leadership to put it on the agenda again.
Agenda items can be scheduled if any one of the following things happen.
1. Joe Adams as president places it there.
2. Alton Frailey as superintendent places it there.
3. If Bill and Terry can find ONE other trustee to sign on with them for the third vote then this group of 3 trustees can force the issue onto the agenda. Neal Howard currently running for another term as TRUSTEE has refused to be the third vote forcing the vote onto the agenda.
Current state of affairs: NOTHING is happening.
I suspect some will blame Bill and Terry for this as they are the ones who said “not so fast” and brought this firm’s shady dealings into the light of day.
Alton says he does not care which firm to use, but is only pushing this criminal enterprise because his key financial people WANT them, otherwise, he could not care less.
If this is true maybe it is time to reexamine these key players and see if they have been compromised? Or in the alternative, their boss has been compromised? Or if key players on the BOT have been compromised?
And we worry about Bill and Terry walking out of a meeting so that they might have time to review contracts and also allow the public an opportunity to speak on the issue.
For the party faithful, where are the lies or half truths in this postings?
I was sent this last night. The case is real and I understand it is still in the legal system. http://galvestondailynews.com/story/198070
Given we are told the primary reason for voting for one of the candidates is his CFO experience and ability to work with contractors and others, what does he have to say about the charges of defrauding a school district during a time of great personal sorrow for tens of thousands of families?
I am not taking sides, but I believe some sort of explanation is in order and there isn’t much time to offer it. Of course this might be a company with no working relationship to the one we know in Katy, Texas. In which case, this is much to do about nothing. Hopefully this will be the situation. If not, then we have a serious problem on our hands as we go to the polling places.
If this is for real, no contract as large as this would bypass the CFO’s office of what was then a much smaller company. Same goes for the billing and invoicing functions.
http://galvestondailynews.com/story/198070
Can’t wait for the defenders to be out here soon talking up their faves and following their usual tendency of disregarding the obvious. Anyway, anyone who’s bothered to follow/research Linebarger’s heavily spotted past shouldn’t be surprised that their the favorite of our current district leadership – and don’t give me any bull about “Bill Moore strongly requests them”.
As for the issue brought up by Mr. Fraileeeeeeeey – I knew about it before but actually had forgotten to broach it in our forum here. Thanks for taking care of it afraileeeey!
Silence speaks volumes……….
Tomorrow my vote goes to Terri Majors and Cynthia Blackman
Considering this is a legal issue with his company and we don’t know any details of 1) the case or 2) his involvement (if any), it would be reasonable for me not to have much of a comment until something is said about it. Unlike some, I will wait until I “know” what I’m talking about in lieu of acting irresponsibly…
Griffin/Michalsky get my vote.
Oh, speaking of that, acting irresponsibly…
Babytigersays: How to get DIRTY, Katy style!
http://babytigersays.blogspot.com/2012/04/how-to-get-dirty-katy-style.html
baby tiger, I read your comments (other thread) questioning Ms. Blackman ethics because she ran previously for school board and invested her own money in her campaigns, plus I suspect a few dollars of other people’s money.
You wondered what the motivation was to spend money to get a volunteer job. I too have wondered about that for years. It seems the most money is generally spent by those already on the BOT. They fight hard to stay there and somehow manage to attract many contributors to their cause. Even law firms doing business with the district get in on the act. Venders do love those in power. This love crosses all party lines and comes in all flavors. Pull the disclosure forms from last year’s losers, members who were turned OUT by the voters. It is instructive to say the least.
In open races like Bryan’s, venders like to size up who they think will win and send in the cash. But they are smart and when they back a loser, they turn around and offer money to the winner. It makes your head spin.
As we voters watch this dance of money and influence it makes us question their motives, and from the tenor of your posting you question it as well. Money and politics do make for strange bedfellows. Why is she willing to spend her own money to get a seat on the BOT?
I note on the most recent disclosure statements you have made $3,000 worth of contributions to the campaigns of the two men you publicly speak of and at least one of them turned around and did business with your company. Looking over ALL the candidate’s disclosure forms, your contributions are by far higher than anyone else’s, to any candidate. If we were the suspicious type, we might say you are the super big influence buyer this year.
At the debates when asked about money and budgets Bryan often says he will look closely at all items and ticks off “contract services” as a place for change. I don’t know the scope of your services, but I hear printing is one of them. Would you be interested in getting a slice of the district’s printing services (we use a private vender for this) if Bryan and Griffin are elected to the BOT and want to make changes to our contract services budget?
Should we draw conclusions from Bryan’s statements and your very large contributions?
I want to believe the correct response is “no” and you are above board.
So why the slight towards Ms. Blackman who has used mostly her OWN money in her races? Bryan and Griffin get a pass and use YOUR money, Blackman gets a slap and uses her own. Strange bedfellow indeed!
I now have a much better understanding of why you are able to get fast responses from both Bryan and Griffin. If I run for office and have someone back me as you have, I would be responsive to them too. “Money, the mother’s milk of politics!” (Phil Gramm) Drink up!
JW2, where to start. You really have no ida how far off the mark you are… But here goes…
First, I am not now, nor do I plan to be a vendor for Cotton or KISD. What I do, they don’t need. What I charge, they wouldn’t like. So, let me try to explain what I do and answer your questions.
My professional training is in advertising and graphic design I spent 15+ years in the industry and was one of the first in the area to embrace electronic publishing and prepress. I no longer work in that field but I do posses the vast experience and talents to perform those tasks if I wanted to do so. I do not want to, so I don’t.
I am currently self employed (and have been for 15 years) as a computer consultant for the advertising, graphic design and corporate graphics industries. My background spans the proficient use and implementation of graphic design systems, software, digital preparation for printing, prepress imaging and system support. I am in a boutique industry and have very little real competition. My client base pans from single designers to Fortune 100 companies. I like them and they like me.
My actual cash donation to both campaigns 9combined) is no greater than $50 (which includes their domain registration and testing for their website donation systems). The remaining funds shown are what’s known as an “in kind” donation for their website design as I have charged several clients for that service over the last two years. It simply is a reporting issue because it is not something I do as part of my normal business but as a hobby to keep my design skills sharp. Since I did charge for that type of service during the last couple of years I felt it qualified as a reporting item, so it was reported.
The invoices from my company to the campaigns for printing are reimbursements where I personally purchased items over the internet and issued invoices (at cost) to record the reimbursement transactions. I am not now nor have I ever been in the printing business.
My comments regarding Mrs. Blackman were based on her questioning why some board members would want to be on the board for so long and implying that they were getting a little wealthy because of that. I’m not questioning her ethics just looking for clarity. I’m not saying it’s a bad question but you also have to ask why someone would spend so much of their own money for a free seat too. Seemed like a fair question, do you not agree? If we’re going to ask it, ask it all the way around.
Regarding Bryan and Charles getting a pass, well you’re wrong on that point. I would hardly call $50 a giant investment and the only large investment I have made is in my time and God given talents. Crappy design costs just the same as good design. When it’s free you get what you get.
I also can tell you that I know for a fact that money has been returned to people because they are vendors of the district. I know it’s hard to believe but some people really do try to live by what they preach.
So, do you see me a little more clearly now? Do you see how jumping to a conclusion without having the facts can get you the wrong answer? I’ll always be as open as I can if you will just ask.
Do you agree that this should get personal and private? Is that something you would support? I don’t and wouldn’t.
I will go to the link you have listed. I am amazed you express no reservation about voting for a person accused of defrauding a school district out of hundreds of thousand of dollars. What would it take for you to question a candidate’s fitness to sit on our board of trustees?
The facts will ultimately be determined by a court of law. That is true. Here is what we do know.
1. Ike came to town
2. Cotton was smaller and needed business
3. They got the contract for Clear Creek
4. Something went terribly wrong.
Since the district is the only one talking and Cotton refused comment than and now we have only the word of a school district and the belief of their legal team they will prevail in court. Unless you feel the district is lying in order to keep Bryan off the Katy ISD BOT they seem very much certain that Cotton stole from them.
So far Bryan is content to ask for votes, but can’t or won’t tell us what the deal is.
So let me ask you one question, and I know it is theoretical.
IF everything in the article is true and you come to find it is TRUE would it influence your vote? I am NOT asking you to comment on the case, or to say we have no crystal ball, or to say anything other than IF YOU came to believe the article is true, would you vote for Bryan?
Don’t make it too tough. Let me make it clear. If I have reason to suspect any candidate I had been supporting was involved is a similar incident I would RUN away from them. How about you?
I’ll let Bryan tell you in his own words about this and other topics when he sits down for a Babytigersays interview.
I was always taught to be very careful to accuse someone of theft (especially in writing) without having all of the facts. Could make for a bad day.
Babytiger
Only after Bryan sits down for an interview with one of his disciples or with Tough Talking Tony we will get the facts??
I can image how well you would receive this bit of news if the shoe were on the other foot and Ms. Majors agreed to be interviewed by one of her strongest supporters and the rest of us should all wait for the “results” to be passed along.
Given we have a couple of news sources in Katy ask him to go directly to the press. I suggest he call Tracy at the Times and John at Instant News Katy and let them ask the questions and allow them to print his replies without a third party filter or shill.
If you are taking questions to pass along, and I am sure there will be others how about some of theses?
Bryan, Were you with Cotton when this took place and if so what was your role with the company at that time?
Bryan, Please tell us the facts surrounding the bidding process, the shell company, and why Clear Creek ISD has filed suit?
Bryan, who set up the dummy companies and bilked the taxpayers out of an extra 10% for overhead and 10% for profit? Did you sign off on that paperwork? Did you see the paperwork? Did you know of this arrangement?
Bryan, Why did FEMA kick back the invoices and why were the charges so out of line with what FEMA was accepting for similar work?
Bryan, Given the charges leveled in this article, do you feel voters should vote for the CFO of Cotton without certain reservations? Why?
Bryan, Do you think this is a material fact (the lawsuit) you should have disclosed earlier and on your own? Why didn’t you?
Bryan, How can we have confidence in the future about your behavior when issues come before the Katy ISD school board which might represent a conflict of interest?
Bryan, since coming to work for Cotton are you aware of other lawsuits filed against the company? What are they?
If he won’t take questions from the press, maybe he can offer a press release??? Maybe someone will believe it?
Pick up the phone and call him.
Number please?
Given this story will only get bigger, don’t you think he should take charge of the story line and be proactive?
I read the postings above. The question is a fair one, assuming there is truth to the story and Cotton did cheat the ISD, would you still support him for a BOT slot? When does your interview take place?
Look it up. It’s not that difficult.
Thus far we only have speculation with no official comment from either party.
For a guy who wants to clear his guy, you don’t seem to be in too big a hurry to do so.
There is smoke all over this and you know it. One side is talking. the people who claim to have been defrauded: Clear Creek I. S. D. We are willing to hear the other side.
http://galvestondailynews.com/story/198070
Maybe John Pape can be persuaded to look up the hotline number and give Bryan an interview? And unlike Tony, I suspect John will ask the tough questions.
http://galvestondailynews.com/story/198070
I suspect it will be a headline story and even the other paper will pick up on it. The longer Bryan and the cheerleaders drag this out, the worse it will be on Election Day when most votes are cast.
http://galvestondailynews.com/story/198070
A fundamentally flawed candidate? Your guy might turn out to be the poster child. Maybe you are just too ill to share the hotline number you use because you are sick about this and should have done a better job vetting? My dad had the same feeling over Dick Nixon who proclaimed he was not a crook.
Take heart it is NOT your fault. You did all you could, stand down little cub.
http://galvestondailynews.com/story/198070
Lawsuits about DEFRAUDING school districts are news especially during a trustee election. This is a story and it has legs UNLESS your guy has got something like facts, to counter it, most will assume the story is good to go as is. They will wonder why he won’t talk about it and clear the air?
http://galvestondailynews.com/story/198070
The earlier post about the silence might well be right.
http://galvestondailynews.com/story/198070
All the moaning about two trustees walking out of a meeting, and from the same corner, silence about the possibility of Enron like fraud. Double standard? Too close to home? Can’t take the tiger heat? Where is Charlie Sheen’s tiger blood when little tigers need him most?
http://galvestondailynews.com/story/198070
“Enron like fraud”?
Really?
Having a sitting CEO set up a secondary, directly related firm to his original position, with the intent to broaden his earning power by keeping his hand in both pockets?
I believe Jeff Skilling, Ken Lay and Andrew Fastow and others had a run-in with federal officials over matters similar to these. While Cottonwood/Cotton Industries isn’t on that scale, there SEEMS to be some pretty indentifiable similarities.
Maybe it was a little too much. Chalk that up to anger and quick fingers on a keyboard.
I was thinking about setting up the shell company. However fraud if fraud, price gauging is price gauging, double billing is double billings. Something is not right.
However I am willing to water it down to shoplifting if you like. Still a big “no no” in my book.
Pape sent an email to Bryan at 2:30 this afternoon and received this response within the hour:
—————————
April 30, 2012
Re: CCISD- Cotton lawsuit
As this is pending litigation I cannot discuss the details of the case. I would, however, like to issue the following facts related to the case:
1. Cottonwood Debris Company was a subcontractor hired by Cotton to perform debris removal and other services.
2. The work in question was performed in 2008 in the aftermath of Hurricane Ike. I was and am the CFO of Cotton and had no management responsibilities for Cottonwood in 2008.
3. Cottonwood was acquired by Cotton in 2010 at which time this claim came under my responsibility.
4. CCISD was satisfied with the work performed in 2008, and their schools re-opened 13 days after the hurricane, much sooner than many in the Houston area had even restored power.
5. Cotton has a counterclaim in the amount of $705,123 for services unpaid by CCISD related to the work performed by Cottonwood.
The article in Galveston Daily News took its information from the original court document filed by CCISD. One would have to look at subsequent filings by Cotton to get a better picture of what occurred.
The only relevance to my candidacy related to this case is the value that my professional experience in matters such as these would bring to our Board of Trustees.
Bryan Michalsky
—————————
The concept of email communication works pretty well. Probably not what your’e looking for but it’s what you get. Feel free to speculate all you want.
So how hard was that to get out in the open? I don’t know the rest of the story but for the time being that seems to answer most of the questions. I assume John will dig a big and let us know what checks out and what does not.
So it seems Cotton and Cottonwood don’t have a good experience working with at least one ISD.
From the earlier post it certainly seems you DO have some serious stroke with Bryan and Griffin. He sent the response to you and the press. Did you help him write it too?
I did not help him write it and I did not see it before it was sent to INK.
I’m sure it wasn’t hard at all but as everyone knows when your company is involved in a legal action it is a prudent step to have your press releases reviewed before they go out. I’m not saying he did but I would hope he would have.
Regarding CCISD and Cotton, I hope we are never in the position to need a disaster recovery company in our district.
robert tiger:
1. babytigersays? How many personalities do you have?
2. Your journalism degree is from…..
3. Your media background includes……and……and……
THough I’m all for competition, I certainly hope that John here at INK and the rest of global society is able to handle a true media expert like you tiger baby!
(PS: I’ll be very impressed you can get him to talk substantively about ongoing litigation while the official word from his company is “no comment”.)
WSB, I have twelve personalities that I know of. You have met three. Some you might like, others not so much.
A blog, by definition is not journalism and therefore a degree is not required. I will state that I am, in fact, the world’s foremost authority on my own personal opinion. You may choose to challenge that point but you will fail in the debate.
One does not require a media background to tell the truth and offer one’s opinion on the truth.
I’m not offering competition to INK, only another viewpoint to the putrid comment section of this site. And while some may visit the blog for comparison or clarity I find it interesting that the 550 page views since Friday seems to show some are interested in the content. It will get better. I promise.
Are you W.E. Crockett, Jr.?
For the record, I’m not looking to impress you only inform others…
WSB, See comment above, it might give you insight into how he gets responses when we get silence.
What a fantastic day. Went to the polls, brought four others with me who cast their votes, so five in total. The place was empty per normal. Don’t know about the other polling places but today at THS in our tiny exit poll, the score was 5 for Blackman and Majors and 0 for the boys.
When people sit down and carefully think this election through they will come to their own conclusions. Most won’t care enough to vote. Some who vote will have no idea who that person is associated with the name on the ballot (this goes for all candidates) but pull the lever anyway.
The truth is all are no doubt good people seeking one of two seats up for grabs. Each feels they will make a positive contribution, and I hope whomever is installed will do so.
If they keep the pledges they have offered and do follow through with what they claim as core values, we should be in good shape.
I want to be in even better shape and that is why after careful consideration I voted for Blackman and Majors. They have worn all the hats; mother, wife, teacher, manager, neighbor, volunteer, supporter of teachers, students, and taxpayers, and the venders don’t like either of them.
Between them they have 64 years of working in the classroom and campuses with our kids. Maybe it is time to put that kind of experience to work on our BOT? We have never had it before and I think it is time to open the club to those who understand the impact of BOT and central office directives votes on our classrooms.
They both know how to use a pencil on a budget but understand the places where you can’t cut any deeper and still educate our children. We are at the edge, or tipping point between doing what is right by our kids or pushing them over the edge. Most parents don’t realize this. If they did, the turnout would be compelling. I urge you to think, pray if you must, and then go vote for all the right reasons.
I hope you will draw the same bottom line conclusion my friends and I have and support both Ms. Blackman and Ms. Majors for Katy ISD trustees positions.
babytiger:
I am not W.E. Crockett Jr.
For the record, I will not be confirming/denying any more identities for you. Guess away.
Thanks for the response about your “credentials”. As blatantly obvious as it was, it is nice to see that even YOU recognize that you have none.
If I were you WSbill I wouldn’t want people to know my identity either.
You’ll have to do better than THAT to insult me, after all THiS IS only a comment section to a half-baked news source. Get your own blog, then you can talk!
Haaahaaaahahaaahhahhaaaaaa… Seriously, you crack me up.
Have you been to Church lately or was that one of your running buddies?
This story is about Linebarger. Their proposal listed 30 lawsuits in the past three years. About half were settled and then dismissed. Some lawsuits are pending and some were dismissed. Settled, according to a Ft. Bend judge that I contacted, means that Linebarger made some concessions to the plaintiff. Their settlements include a confidentiality agreement.
Perdue listed one lawsuit which was dismissed. which was dismissed.
This is the reason that I gave the consultants a good grilling when they listed the reputation of both firms as equal.
Thank you for your service.
It has been refreshing to have some common sense in Katy ISD.
baby tiger,
Thank you for the explanation of your campaign contributions. You tell us on one hand they are worthless and on the other they are valuable. You sir set the value for your time and expertise. The guys posted the same figure on each of their disclosure sheets, so I can only assume you told them both the same song and dance about the value you bring to their campaigns.
So you either misled the boys about the value of your services, or you made a $3,000 contribution to their campaigns. If there is a third interpretation I can’t imagine what it is.
Unless we brand them and you a liar, which I would never do, I accept the valuation of $3,000 which makes you by far the single largest contributor to any campaign much less being the largest contributor to TWO different camps.
You have shown us since coming to the board you have their ear, and even led us to believe you could call them up and get a babytiger interview with Bryan. Sounds like a very active web master to me. Maybe puppet master is a better description?
No matter the voting has begun, it is now up to the people to weigh in on the subject.
I hope to see you in the Board room when we install the two newest BOT members whom I expect to be Ms. Blackman and Ms. Majors, both long time classroom qualified teachers, with solid managerial backgrounds, coupled with an understanding of budgets. They are clearly the best choices in 2012!
What’s up, pay attention… I never said they were worthless, only free.
I said there was no $3000 cash donation. This amount was selected to comply with the law because it is classified as an “in-kind” donation. It would be free to them just like it is free to Project Grad or any other of the many people I donate my time to – only the others do not have laws governing how people donate their time and talents or how those donations must be reported.
You can brand me however you want. I really couldn’t care any less.
Babytiger does have their ear because Babytiger asked questions and listened to their answers. Then Babytiger said I want to help. What can I do?
Tell you what B. T. I am surrendering the floor to you. Post as you like, I don’t think you are worth the keystrokes any more. Good luck to you and your’s.
With Love,
JW2
I’ll have to look back but… Didn’t you do that before?
Never-the-less, I’ll consider this a small victory for the side of truth.
Oh, your “Fantastic Day” at the polls on Monday was part of the largest first day turnout in TEN years… One of us isn’t going to be in a good mood the morning of May 13th.
B.T. can you help us settle a bet?
How do you see the timeline about who knew what and when did they know it?
This was on another thread. Maybe you missed it?
Hey everyone. Do you remember the statement Bryan made about the lawsuit and the timing of who owned what and when they owned it?
Please read this article look at the dates and tell me how this squares with his statement. I am not drawing any conclusion just yet, but want someone to fact check with me.
http://www.bizjournals.com/houston/stories/2008/09/22/story10.html?surround=etf&ana=e_article