Press Release from the US Attorneys office:
FORMER LIBERTY COUNTY JUDGE AND COMMISSIONER INDICTED IN HURRICANE FRAUD SCHEME
Public officials alleged to have violated conflict of interest laws; pocketed over a half-million in disaster relief funds
BEAUMONT, Texas – A former Liberty County Judge and Commissioner, and a local businessman have all been indicted in a hurricane fraud scheme in the Eastern District of Texas announced U.S. Attorney John M. Bales today.
John "Phil" Fitzgerald, 51, of Liberty, Texas, Herman "Lee" Groce, 62, of Cleveland, Texas, and Mark Wayne Miksch, 52, of LaVernia, Texas, were named in a 25-count indictment returned by a federal grand jury on Jan. 26, 2011. The defendants have been summoned and will make their initial appearances on Feb. 1, 2011 before U.S. Magistrate Judge Earl S. Hines.
The indictment alleges that following Hurricane Ike's landfall on Sep. 13, 2008, Fitzgerald, the Liberty County Judge, and Groce, the Liberty County Precinct 2 Commissioner, used their elected positions to fraudulently influence and award debris removal contracts to a company in return for sub-contracts being awarded to Fitzgerald's brother-in-law and businessman, Miksch. As part of the scheme, Fitzgerald is alleged to have received approximately $611,000.00 in kickbacks disguised as legitimate business transactions.
Additionally, Fitzgerald is charged with the unauthorized use of a 155 kilowatt generator which was purchased by and for the benefit of Liberty County and then reimbursed by FEMA. Instead, Fitzgerald is alleged to have commandeered and used the generator to power Fitzpak, a convenience store and gas station in Moss Hill, which Fitzgerald owned and operated.
As a result of the conspiracy, approximately $3,269,456.76 in debris removal contracts were fraudulently awarded by Fitzgerald and Groce in violation of state and federal laws.
Fitzgerald and Groce both lost their bids for re-election in November 2010, thus concluding their respective positions with Liberty County on Dec. 31, 2010.
This case was brought as part of this District's partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing the hotline at (225) 334-4707, emailing at disaster@leo.gov or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
If convicted, the defendants face up to five years in federal prison for the conspiracy charge. Additional charges range from five to 30 years in federal prison.
This case is being investigated by the FBI, the Department of Homeland Security – Office of Inspector General, and the Office of the Texas Attorney General – Criminal Investigations Division. This case is being prosecuted by Assistant U.S. Attorney Joseph R. Batte.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
11 comments:
We've only just begun....
No indictments in chambers county?
WELL ALRIGHTY!!!! what do you say say now JYo???? You posted comments in that rag Cleveland paper defending Groce to the end. Well, here comes the end!!!!
Didn't Bill Buchanan from the Democratic radio station declare Phil innoent a few months ago? If Buchanan ends up being right he should get an honorary law degree. If he is wrong it seems to me that the claims that he tries to convince his listeners, "all potential jurors, to line up with him in evalauting people.
Philmight convince a jury to say he is not guilty but there is no way he will be found innocent!
Isn't it true that some law enforcemnet officials were stopped in the middle of an investugation that would have led to the indictment of Phil earlier? Is Mike Little under investigation for aiding and abetting?
read the indictment for yourselves:
http://dig.abclocal.go.com/ktrk/EDTX_Groce%20INDICTMENT_012811.pdf
I now see why Phil issued a no news coverage and a no fly over Liberty County after the Hurricane. He didn't want people to see what a scam they were pulling. I am now wondering how many of the other Commissioners, that voted to pay these bills were also in on this SCAM.
your right. even if the commissioners were not directly related to the scam one would expect them to have enough since to say no. or have enough courage to call for an investigation instead of allowing the stealing to continue. something still stinks in liberty county. there has to be many more fingers in the hurricane money pie.
All of the Commissioners had to vote to ok the bids.Sounds like they all should be investigated.Maybe the rest rolled over on Phil and Lee for Imunity.
What about Winston Sizemore and the 8 million dollar contract he got? The Vegas trip? His new house on the hill?
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