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YEAH.[Press Conference: “Criminal Corruption Charges – Midtown TIRZ”]
TEND, JOHN, LOOK OUT THERE AND SEE IF THERE'S ANYBODY OUT THERE THAT NEEDS TO BE IN HERE.JUST STICK MY, BRING EVERYBODY ELSE IN.
EVERYBODY IN THE HALL CAN COME IN.
BARBARA, THERE'S CHAIRS UP THERE.
I'VE SAID IT BEFORE, AND I'LL SAY IT AGAIN.
PEOPLE HATE PUBLIC CORRUPTION, AND THAT'S BECAUSE WE EXPECT THE EMPLOYEES OF GOVERNMENT, THE ELECTED OFFICIALS AND GOVERNMENT AND THE APPOINTED OFFICIALS TO TREAT OUR TAX DOLLARS THE SAME WAY THEY WOULD THEIR FAMILY'S LIFE SAVINGS IN THIS CASE.
AND TODAY, THREE PEOPLE HAVE BEEN ARRESTED IN CONNECTION WITH A, UM, SCHEME TO SEAL AND MISUSE ABOUT EIGHT AND A HALF MILLION DOLLARS IN PUBLIC FUNDS FROM THE MIDTOWN REDEVELOPMENT AUTHORITY.
ARRESTED TODAY ARE TODD EDWARDS, THE REAL ESTATE ASSET MANAGER, VERONICA U GORGE, A CONTRACTOR FOR THE MIDTOWN REDEVELOPMENT AUTHORITY, AND KENNETH JONES, A SECOND CONTRACTOR FOR THE SAME AUTHORITY.
I WANT TO THANK THE TEXAS RANGERS.
UH, DARREN PARKER IS HERE NEXT TO ME.
THE RANGERS HAVE DONE AN EXCELLENT JOB FOR US ON PUBLIC CORRUPTION INVESTIGATIONS.
THEY'RE AN INDEPENDENT AGENCY THAT WE CALL IN, IN CASES JUST LIKE THIS.
AND ALONG WITH PROSECUTORS WHO ARE HERE TODAY, STANDING NEXT TO THEM, SARAH, SARAH
NOW, IN ADDITION TO THANKING THE TEXAS RANGERS, THIS CASE DIFFERS A LITTLE BIT FROM THE LAST PUBLIC CORRUPTION PRESS CONFERENCE WE HELD.
BECAUSE IN THIS INSTANCE, THERE WERE TWO CITIZENS WHO CAME FORWARD, NOT YESTERDAY, NOT LAST YEAR, BUT STARTING IN THE MID 20 15, 20 17, COMPLAINING, ATTENDING MIDTOWN REDEVELOPMENT AUTHORITY BOARD MEETINGS, AND COMPLAINING ABOUT A LACK OF REDEVELOPMENT.
THE CONTINUED, UH, NUISANCES THAT THE VACANT PROPERTIES AND ABANDONED HOUSES PRESENTED ALONG WITH THE PUBLIC SAFETY THREAT THAT THAT BROUGHT.
AND THESE TWO INDIVIDUALS ARE HERE WITH US TODAY.
ONE IS BRIAN VAN TUBERGEN, A RESIDENT OF THIRD WARD, THE OTHER, UH, OF THIS BATMAN ROBIN TEAM, OUR ED PETIT, ANOTHER RESIDENT OF THIRD WARD.
THESE INDIVIDUALS NOTICED BECAUSE THEY LIVED IN THE NEIGHBORHOOD THAT PROPERTIES IN THE THIRD WARD WERE NOT BEING REDEVELOPED AS PROMISED THAT VACANT HOUSES THAT WERE SUPPOSED TO BE DEMOLISHED WERE STILL CRIME HUBS THAT LOTS THAT WERE SUPPOSED TO BE MAINTAINED WERE OVERGROWN WITH WEEDS, AND AGAIN, PRESENTED A PUBLIC SAFETY THREAT TO THE RESIDENTS OF THE THIRD WARD.
NOW, MR. EDWARDS AND HIS CO-DEFENDANTS SCHEME TO STEAL AND MISUSE THIS MONEY HAS RESULTED IN FIRST DEGREE FELONY CHARGES AGAINST EACH OF THEM.
ALL OF THOSE CHARGES CARRY UP TO LIFE SENTENCES.
THEY'RE FIRST DEGREE FELONIES.
SO, MR. EDWARDS, WITH THE FIDUCIARY RESPONSIBILITY OF UTILIZING THE MONEY TO ITS PURPOSE, WHICH WAS TO REDEVELOP AND MAKE THIRD WARD BETTER FOR THE PEOPLE WHO LIVED THERE, INSTEAD LINED HIS OWN POCKETS, AND THOSE OF MISS YOU GORGE AND OF MR. JONES, UNFORTUNATELY, OUR TAX DOLLARS MEANT TO IMPROVE THE LIVES OF HOUSTONIANS WERE SPENT ON FLASHY CARS, NICE HOUSES, SUPER LIVING TRIPS, AND PORNOGRAPHY OF ALL THINGS.
YOU KNOW, OUR REDEVELOPMENT AUTHORITIES ARE PART OF TAX INCREMENT REDEVELOPMENT ZONES KNOWN AS TIERS, AND THE RELATIONSHIP IS CONFUSING TO THE PUBLIC.
BUT IN SHORT, THEY ARE FUNDED THROUGH TAX DOLLARS ALL INTENDED TO
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IMPROVE THOSE SPECIFIC AREAS.THE OVERSIGHT OF THE EXPENDITURE OF THOSE TAX DOLLARS AND THE REDEVELOPMENT AND THE IMPROVEMENT OF THE TIERS IS UP TO THE BOARD OF DIRECTORS.
THESE INDIVIDUALS ARE APPOINTED GENERALLY BY THE MAYOR AND BY COMMISSIONER'S COURT.
AND IT IS THE DUTY AND OBLIGATION OF THESE DIRECTORS TO NOT JUST RUBBER STAMP THINGS THAT ARE PUT FORTH BY INDIVIDUALS WHO WORK FOR THESE TIERS, BUT TO HAVE AND DO SOME DUE DILIGENCE IN THESE CASES, THE SCHEME WAS SO UNSOPHISTICATED THAT THE SLIGHTEST REALLY INVESTIGATION OR EVEN SECOND LOOK WOULD'VE REVEALED A GREAT DEAL OF SELF-DEALING.
AND I THINK THIS IS EMBLEMATIC OF OUR CONCERN ABOUT TIERS AND REDEVELOPMENT AUTHORITIES ACROSS THE CITY OF HOUSTON AND HARRIS COUNTY, WHERE THERE'S A PUSH FOR MORE OF THESE.
AND I'D SUBMIT UNTIL THEY'RE BETTER SUPERVISED AND HAVE BEEN AUDITED AND CHECKED THAT THERE SHOULD BE NO MORE.
UNTIL THESE ARE VALIDATED, I WOULD TELL THE PUBLIC THAT THIS IS PHASE ONE OF A LENGTHIER INVESTIGATION, AND THAT IF THE PUBLIC HAS ANY INFORMATION ABOUT THE MIDTOWN REDEVELOPMENT AUTHORITY AND THE MISUSE OF FUNDS OR MISAPPROPRIATION OF FUNDS OR SELF-DEALING, PLEASE CONTACT THE TEXAS RANGERS.
THAT NUMBER IS 2 8 1 5 1 7 1400.
I'D LIKE TO INVITE THE MAYOR AT THIS TIME TO SPEAK.
MAYOR WHITMEYER, I WANNA THANK YOU BEFORE YOU DO FOR YOUR ADMINISTRATION'S TRANSPARENCY AND COOPERATION.
IT IS IN STARK CONTRAST TO WHAT WE'VE BEEN DEALING WITH THE LAST SEVEN AND A HALF YEARS.
THANK YOU, UH, DISTRICT ATTORNEY OG AND, AND YOUR TEAM FOR THEIR, UH, CONSCIENTIOUS WORK, CERTAINLY TO RANGER PARKER.
UH, THANK YOU FOR YOUR INVESTIGATIVE WORK AND THE TWO CITIZENS WHICH WE'LL HEAR FROM.
I WOULD ENCOURAGE ANY OTHER CITIZEN OR EMPLOY OF THE TURS TO, UH, BECOME A WHISTLEBLOWER.
WE'RE, WE'RE WILLING AND ABLE TO LISTEN TO ANY CONCERNS.
UH, THE INSPECTOR GENERAL'S OFFICE AT THE CITY IS A MUCH MORE USER-FRIENDLY AND OPEN TO WHISTLE BLOWING OR OUTRIGHT, UH, DECLARATIONS OF, OF CONFLICTS OF INTEREST.
AND IN THIS INSTANCE, UH, ALLEGATIONS OF CRIMINAL ACTIVITY.
THE TURS PLAY A REAL, REAL IMPORTANT ROLE IN THE MAINTENANCE AND REDEVELOPMENT OF OUR CITY.
DUE TO THE REVENUE CAP, THEY OFTEN HAVE DISCRETIONARY FUNDS TO SPEND ON NEIGHBORHOOD QUALITY OF LIFE ISSUES.
IT'S OUTRAGEOUS THAT WE HAVE DISCOVERED THAT THEY HAVE CRIMINAL INTENT.
UH, NONE OF THE CURRENT BOARD MEMBERS OF THIS TURF WERE APPOINTED BY MY ADMINISTRATION.
WE TAKE THEIR FIDUCIARY RESPONSIBILITY VERY SERIOUS, AND, UH, IN MY OFFICE, WE CLOSELY INSPECT THE, UH, PROFILE, THE BACKGROUND, AND ANY CONFLICT OF INTEREST, POSSIBILITY WHEN WE MAKE THESE TURS APPOINTMENTS.
SO LET'S, UH, SEND OUT THE WORD TODAY THAT CONFLICTS OF INTEREST, CRIMINAL ACTIVITY WILL NOT BE TOLERATED.
THANK YOU THIS ATTORNEY AG FOR BRINGING THIS TOGETHER TO, TO, UM, LET THE JUSTICE SYSTEM WORK.
WE SAW THE WATER CONTRACT SEVERAL WEEKS AGO, SO LET ME JUST EMPHASIZE, UH, IT WON'T BE TOLERATED.
MY OFFICE, THE INSPECTOR GENERAL'S OFFICE, ALL OF OUR DEPARTMENT HEADS HAVE BEEN PUT ON NOTICE THAT, UH, WE WON'T TOLERATE IT.
AND I WILL ADD THAT WE HAVE ALREADY DISCUSSED THE PROCESS OF REVIEWING ALL THE TURS ACROSS THE CITY OF HOUSTON.
THERE ARE SOME TURS THAT DO OUTSTANDING JOBS, AND I BELIEVE ARE, UH, USING, UH, BEST PRACTICES, TRANSPARENCY AND DO THINGS RIGHT.
BUT WE ALSO REALIZE THAT THERE'S SOME FOLKS THAT HAVE CONFLICTS OF INTEREST AND SOME SELF-DEALING.
SO THAT'S THE REASON THIS TEAM HAS BEEN PUT TOGETHER.
AND I DO BELIEVE THAT, UH, MORE INVESTIGATIVE WORK WILL REVEAL MORE CONFLICTS, THE, THE, UH, THE OUTRAGE OF CITIZENS ABOUT, UH, OVER 300 LOTS THAT HAVE BEEN ACCUMULATED BY THE TURS IN THE MANAGEMENT DISTRICT AND SIT VACANT, OFTEN UNATTENDED TO, I'D LIKE TO THINK THE PRESS, I'VE ACTUALLY READ ABOUT IT IN PREVIOUS YEARS ABOUT THE, UH,
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NEGLECT OF THE LOTS AND THE, UH, CONFLICTS OF INTEREST THAT EXIST IN THE MANAGEMENT OF THE MIDTOWN OPERATION.SO WITH THAT SAID, THANK YOU FOR ALL THE INTERESTED PARTIES.
UH, I HOPE, I HOPE EVERYONE THAT WOULD CONSIDER A SERIOUS CONFLICT OF INTEREST OR CON CRIMINAL ACTIVITY WILL REALIZE THAT IT WON'T BE TOLERATED.
MY ADMINISTRATION OR KIM AUGUST'S ADMINISTRATION IN THE RANGERS WILL DO THEIR JOBS.
SO, UH, SO GOOD, GOOD ANNOUNCEMENT TODAY THAT, UH, YOU WILL BE CAUGHT AND PROSECUTED, WHETHER IT'S A VIOLENT CRIME OR WHETHER IT'S A WHITE COLLAR CRIME, IT'S A CRIME AND THE PUBLIC EXPECTS BETTER.
I THOUGHT YOU MIGHT LIKE TO HEAR FROM ONE OF THE CITIZENS WHO WAS A DRIVING FORCE IN THIS INVESTIGATION.
BRIAN, I'M GONNA GO THE OTHER SIDE OF IT.
HOPEFULLY YOU DON'T MIND ME READING THIS.
UM, POPE FRANCIS ONCE SAID CORRUPTION IS PAID FOR BY THE POOR.
WE HAVE LIVED IN THE HISTORIC THIRD WARD FOR 15 YEARS.
DURING THOSE 15 YEARS, WE BEGGED AND PLEADED WITH MIDTOWN REDEVELOPMENT AUTHORITIES, BOARD OF DIRECTORS, CITY OFFICIALS, AND COMMUNITY LEADERS TO HEAR OUR COMPLAINTS REGARDING HUNDREDS OF EMPTY LOTS OWNED BY MIDTOWN.
AND THAT SAT IDLE, OVERGROWN WITH WEEDS AND HAD BECOME MAGNETS FOR CRIME.
FOR THOSE NOT FAMILIAR WITH THE MISSION OF MIDTOWN REDEVELOPMENT AUTHORITY, THEY'RE, THEY ARE TO USE PUBLIC TAX REVENUE TO BUILD AFFORDABLE HOUSING ON THOSE HUNDREDS OF LOTS IN THE THIRD WARD.
WHEN YEARS WENT BY WITH NO PROGRESS, WE, THE RESIDENTS OF THIRD WARD ORGANIZED, INVESTIGATED, AND UNCOVERED UNDENIABLE EVIDENCE THAT THERE WAS CORRUPTION DIVERTING THE TAX FUNDS TO PRIVATE ACCOUNTS.
THE MESSAGE TODAY SHOULD BE LOUD AND CLEAR TO THOSE WHO WOULD NEGLECT OUR NEIGHBORHOOD ON PURPOSE TO BENEFIT THEMSELVES.
WE ARE PAYING ATTENTION AND WE WILL HOLD YOU ACCOUNTABLE FOR YOUR ACTIONS.
COULD YOU GIVE US YOUR NAME AND SPELL IT? UH, UH, BRIAN VAN TUBBERGEN.
IT'S B-R-I-A-N-V-A-N-T-U-B-E-R-G-E-N.
I WORKED ON THAT VAN TUEN PRONUNCIATION A LOT AND STILL LEFT IT AT BRIAN.
UH, ARE THERE ANY QUESTIONS FROM THE PRESS OR THE CITIZENS IN THE AUDIENCE, KIM AND BRIAN CREDIT TO YOU, BECAUSE I KNOW THAT YOU WERE RELENTLESS IN GETTING THIS PUSHED TO THE ADMINISTRATION EDIT.
DO YOU WANT HIM TO SAY, BUT KIM DID THE PREVIOUS ADMINISTRATION, WHEN BRIAN RECEIVED HIS LETTER STATING THAT THE OIGS OFFICE SUSTAINED WHAT HE HAD BEEN COMPLAINING WITH, WAS THERE ANY ACTION FROM THE PREVIOUS ADMINISTRATION DIRECTED TOWARDS YOUR OFFICE WITH REGARDS TO EXAMINERS? THERE WERE NO COMPLAINTS FILED BY THE OIG DURING THE ENTIRE TIME THAT I HAVE BEEN THE, UH, ELECTED DISTRICT ATTORNEY, EVEN THOUGH THE OIG FOUND THAT MR. EDWARDS, ACCORDING TO CITY DOCUMENTS, WAS USING THE OFFICE TO HIS METHOD.
I HAVEN'T SEEN THE LETTER, BUT WHAT I WOULD TELL YOU IS THE OFFICE OF THE INSPECTOR GENERAL DID NOT REACH OUT TO US, AND WHEN WE WOULD REACH OUT TO THEM, WE DID NOT RECEIVE THE SAME AMOUNT OF COOPERATION AS THE, AS WE HAVE HAD IN THIS ADMINISTRATION, WHICH HAS BEEN TOTAL.
AND I KNOW THAT SOME OF THESE HOUSES OR SOME OF THESE LOTS THAT WERE DESIGNATED FOR LOW INCOME HOUSING OR PEOPLE MM-HMM.
DO WE KNOW OUT OF THE APPROXIMATELY 300 LOTS OR OVER HOW MANY ACTUALLY HAD BLUEPRINTS FOR HOUSING THAT WERE ALREADY PRETTY MUCH SET IN STONE AND BECOMES NEEDED? I DON'T THE CITIZENS MIGHT, BUT WHAT I WOULD TELL YOU IS THE FOCUS OF OUR INVESTIGATION HAS BEEN THE MONEY FOR MAINTENANCE, FOR DEMOLITION, AND FOR REDEVELOPMENT.
PHASE TWO OF OUR INVESTIGATION WILL FOCUS ON THE REAL ESTATE TRANSACTIONS.
AND THAT, THAT JUST HASN'T HAPPENED YET.
FOR CLARITY THAT THESE WERE HOUSES THAT WERE THESE, SOME, SOME OF THESE LOTS WERE DESIGNATED FOR LOWER INCOME HOUSING, CORRECT? THEY WERE, THEY WERE.
DID EITHER OF YOU, ED OR BRIAN KNOW THE ANSWER TO THAT? COME ON UP.
YOU GOTTA STAND IN FRONT OF THE MICROPHONE.
THEY HAVE, THEY HAVE AT THEIR PEAK WAS PROBABLY LIKE 450 LOTS WITHIN HISTORIC THIRD BOARD, BUT THERE'S ALSO LOTS THAT THEY OWNED OFF OF MLK, UH, SOUTH UNION, OTHER, OTHER NEIGHBORHOODS.
SO IT WASN'T JUST OUR, UH, THIRD WARD, HISTORIC THIRD WARD WHERE THEY WERE CONCENTRATING THEIR ATTENTION.
BRIAN, DO WE KNOW APPROXIMATELY HOW MANY FAMILIES WERE NOT PROVIDED WITH A ROOF OVER THEIR HEAD BECAUSE OF THE ACTIONS
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THAT THESE MEN, THESE INDIVIDUALS CHARGED WELL AT IN OUR NEIGHBORHOOD BECAUSE OF THE PRESSURE WE PUT ON THEM, THEY BUILT THE HOUSES IN OUR NEIGHBORHOOD, WHICH IS THE AREA BETWEEN, UH, SCOTT AND CULLEN AND 45 AND ELGIN.SO THAT WAS ABOUT 40 HOUSES THAT THEY BUILT.
THEY BUILT ANOTHER PROBABLY 10 HOUSES ON THE OTHER SIDE OF SCOTT, AND THAT WAS IT IN THIRD WARD.
SO ABOUT 50 HOUSES OUT OF THE 450.
LET HIM, ED, WOULD YOU IDENTIFY YOURSELF? SURE.
MY NAME IS ED PETIT, EDPE, DOUBLET, I DOUBLET.
UM, I SERVE AS THE VICE PRESIDENT OF THE THIRD WARD SUPER NEIGHBORHOOD.
AND SO OUR BOUNDARIES COVER THE ENTIRE SUPER NEIGHBORHOOD, INCLUDING UNIVERSITY VILLAGE WHERE BRIAN RESIDES.
SO I CAN SAY THAT THE REST OF THE SUPER NEIGHBORHOOD HAS NOT SEEN THOSE HOUSES BUILT, AND WE'VE BEEN ASKING THE MIDTOWN RE REDEVELOPMENT AUTHORITY AND ITS CONTRACTORS FOR YEARS TO GIVE US AN UPDATE ON WHAT IS IN THE PIPELINE TO BE BUILT, WHAT HAS BEEN SOLD FOR OTHER PURPOSES, UM, AND WHAT'S UNDER CONSTRUCTION OR UNDER CONTRACT.
AND WE'RE REPEATEDLY TOLD WE DON'T HAVE THAT INFORMATION.
WE HAVE INTERNS PUTTING MAPS TOGETHER.
THEY'VE NEVER GIVEN US A STRAIGHT ANSWER.
THE LAST TIME THEY MADE A PLAN WAS IN 2017, AND THEY HAVEN'T UPDATED THAT PLAN SINCE THEN.
DESPITE REPEATED REQUESTS BY OUR SUPER NEIGHBORHOOD, UM, INCLUDING SPEAKING AT THEIR BOARD MEETINGS, WHICH HAVE BEEN RECORDED, WE'VE ASKED THEM TO UPDATE THEIR PLAN AND TO TELL US THE STATUS OF THESE LOTS.
UM, HUNDREDS PROBABLY OF FAMILIES HAVE NOT HAD HOUSES OVER THEIR HEADS BECAUSE OF THIS MISMANAGEMENT.
ARE Y'ALL ABLE TO SORT OF DESCRIBE THE DETAILS OF WHAT THIS SCHEME WAS? I MEAN, IT, IT SOUNDS LIKE THEY WERE SAYING THEY WERE GOING TO BE BUILDING THINGS, CREATING INVOICES, LIKE HOW DID THAT WHOLE THING WORK, HECTOR, IDENTIFY YOURSELF.
I'M ONE OF THE ASSISTANT DISTRICT ATTORNEYS IN THE PUBLIC CORRUPTION DIVISION.
UM, I WAS ACTUALLY ASSIGNED TO THIS CASE.
UM, SOME OF THE DETAILS ARE ACTUALLY OUTLINED IN THE TWO B WARRANT FOR ONE OF THE CHARGES FOR TODD EDWARDS.
UH, THAT DOCUMENT IS UNDER THE ABUSE OF OFFICIAL CAPACITY.
UM, IN THERE IT'LL DETAIL A LOT OF DETAILS ABOUT THE SCHEME IN REGARDS TO THE SPAN OF IT FROM WHETHER IT WAS FROM 2011 TO 2021 AND SEE WHICH VENDORS WERE ACTUALLY INVOLVED IN IT.
UH, IT DOES IDENTIFY THE THREE PARTIES, VERONICA YORGIE, TODD EDWARDS AND KENNETH JONES.
UM, GIVE A BRIEF EXPLANATION OF THE SCHEMES.
IT'S, IT'S, IT'S NOT ROCKET SCIENCE.
SO WHAT WE LEARNED, UM, FROM OUR INVESTIGATION AND THINKING TO THE RANGERS AND OUR STAFF IN THE PUBLIC CORRUPTION DIVISION THAT ALL PITCHED IN TIME AND EFFORT INTO THIS, WHAT WE LEARNED IS THAT TODD EDWARDS WAS A MEMBER, UH, OF THE MIDTOWN REDEVELOPMENT AUTHORITY IN WHICH HE WAS THE REAL ESTATE PROPERTY MANAGER.
AS A REAL ESTATE PROPERTY MANAGER.
HE WAS IN CHARGE OF RECEIVING, UH, INVOICES, CONTRACTING WITH, WITH POSSIBLE VENDORS TO D TO PROVIDE SOME SERVICES.
UM, WE MENTIONED EARLIER THAT THERE ARE OVER 300 PROPERTIES AND A THIRD WARD AREA.
WELL, AS WE COME TO KNOW, WHEN YOU OWN A PROPERTY, UM, THERE'S SOME MAINTENANCE TO IT.
GRASS GROWS, ESPECIALLY IN MAY, ESPECIALLY IN JUNE, ESPECIALLY IN THE FALL WHEN IT'S RAINING ALL DAY.
UH, SO THOSE PROPERTIES HAVE TO BE TENDED TO.
SO PART OF THE SCHEME WAS ABOUT THE LAWN MAINTENANCE ITSELF AND WHETHER OR NOT THOSE LAWNS WERE BEING CARED FOR.
UH, MR. VAN TUBERGEN AND BRIAN AND MR. PETIT DESCRIBED SOME OF THE CONDITIONS THAT THEY WERE GOING THROUGH IN THE THIRD WARD WHERE THE PROPERTIES WERE NOT BEING MAINTAINED AND IT CAUSED SAFETY CONCERNS FOR THE COMMUNITY.
AND THEY DID THEIR JOB TO BRING THAT FORWARD, UM, AS THEY DID THEIR CIVIL DUTY AS CITIZENS TO BRING IT FORWARD TO THE CITY.
SO THE SCHEME WAS MORE TO THE MAINTENANCE OF THOSE PROPERTIES TO MAKE SURE THAT THEY WERE BEING MAINTAINED THROUGH LAWN MAINTENANCE OR WHETHER OR NOT IT WAS DEMOLISHING STRUCTURES THAT HAD BEEN BLIGHTED IN THE AREA.
IN OTHER WORDS, THEY WEREN'T DOING THE WORK THEY WERE PAYING THEMSELVES, YOUR HONOR, YES.
THERE ARE SOME ALLEGATIONS OF SELF-DEALING, CONTRACTING WITH, UH, CONFLICTED PARTIES, PARTIES THAT ACTUALLY, THAT HAD AN INTEREST TIED TO MR. EDWARDS.
AND SO THERE IS A QUESTION ABOUT WHETHER OR NOT THEY AC ACTUALLY PROVIDED THOSE SERVICES, UH, FOR THE SAFETY OF COMMUNITY MEMBERS IN THE THIRD WARD.
BUT IS THAT WHAT THE CHARGES ARE BASED ON OR, YES.
THE FACT THAT THE WORK WASN'T PERFORMED, OR YOU'RE SAYING IT'S UNCLEAR WHAT PORTION OF THE WORK.
SO THERE IT IS A LITTLE UNCLEAR AS TO WHAT PORTION OF THE WORK IS CON WAS IS PERFORMED, UH, BECAUSE THOSE CHARGES DON'T NECESSARILY GO TOWARDS WHETHER OR NOT A PROPERTY WAS MAINTAINED, THE CHARGES ARE ABUSE, SUFFICIENT CAPACITY, MONEY LAUNDERING AND THEFT.
WHEN WE'RE TALKING ABOUT ABUSE OFFICIAL CAPACITY, IT'S WHETHER OR NOT HE USED THIS OFFICE IN ORDER TO OB OBTAIN A PERSONAL BENEFIT FOR HIMSELF.
WHAT, WHAT ARE THE FULL CHARGES? YES.
SO MR. EDWARDS IS CHARGED WITH ABUSE OFFICIAL CAPACITY, UH, WHICH IS A FIRST DEGREE FELONY, UH, WHERE GOVERNMENT FUNDS WERE MISUSED.
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UH, FOR HIS OWN BENEFIT, IT'S OVER $300,000.HE'S ALSO CHARGED WITH THEFT OF, UH, THEFT OF MONEY CAUSE OF SERVICES.
UH, HE'S ALSO CHARGED WITH MONEY LAUNDERING WITH THE UNDERLYING CRIMINAL ACTIVITY BEING THEFT, ABUSE, SUFFICIENT CAPACITY, AND I BELIEVE, UH, MISAPPLICATION BY A FIDUCIARY.
UM, MISS Y GORGE IS CHARGED WITH ABUSE OFFICIAL CAPACITY AS A PARTY AIDING IN THAT SCHEME.
AND SHE'S ALSO CHARGED WITH MONEY LAUNDERING.
KENNETH JONES IS CHARGED WITH ABUSE, OFFICIAL CAPACITY AND MONEY LAUNDERING AS WELL.
IN YOUR OPINION, UM, I THINK FOR THOSE DETAILS, I'LL REFER YOU TO THE TUBI DESCRIBING THE INVOLVEMENT OF EACH OF THE PARTIES.
WHAT IS YOUR UNDERSTANDING OF THE RELATIONSHIP BETWEEN EDWARDS AND THE TEAM VENDORS? HOW DID THEY KNOW EACH OTHER? IS THERE A PERSONAL RELATIONSHIP? WHAT IS THE CONNECTION? SO THE CONNECTION BETWEEN THE VENDORS AND VEN AND MR. EDWARDS IS A PERSONAL RELATIONSHIP ON ONE HAND BETWEEN MR. YOR OR MR. GORGE AND MR. EDWARDS AND THE RELATIONSHIP BETWEEN MR. UH JONES AND MR. EDWARDS.
WE'RE STILL DOING AN ONGOING INVESTIGATION TO SOME OF THOSE DETAILS.
UM, SO I WOULD REFER YOU TO THE TWO B WARRANT AND THE DESCRIPTION OF THAT RELATIONSHIP.
WHEN YOU SAY PERSONAL RELATIONSHIP, DO YOU MEAN LIKE DATING OR LEBANON WITH HIM OR? YES, MA'AM.
SO ACCORDING, UH, SO FROM OUR INVESTIGATION AS DETAILED IN THE TUBY WARRANT, THERE IS A PERSONAL RELATIONSHIP TO THAT EVIDENCE THAT LENT ONE TO BELIEVE THAT THERE WAS SOME SORT OF DATING RELATIONSHIP BETWEEN THE PARTIES.
AND YOU MENTIONED FURTHER STEPS IN THIS INVESTIGATION THAT THE PROPERTY TRANSACTIONS, ARE THERE OTHER THINGS THAT YOU'RE LOOKING AT? AND IT WAS UNCLEAR.
IS IT JUST THIS ZONE OR IS IT ALL TWO DOZEN? I CAN ANSWER THAT.
AS YOU KNOW, THE DA'S OFFICE UNDERSTAFFED, AND WE DO NOT GO ON SCAVENGER HUNTS LOOKING FOR CRIMES.
WE DEPEND ON AGENCIES, LAW ENFORCEMENT AGENCIES TO INVESTIGATE CRIMES REPORTED TO THEM.
SOMETIMES CRIMES ARE REPORTED DIRECTLY TO US, AND WHAT WE DO IS WE BRING IN AN INDEPENDENT AGENCY TO INVESTIGATE.
SO THERE'S NOT A PLAN AT THIS TIME BY THE DA'S OFFICE TO INVESTIGATE OTHER TIERS OR REDEVELOPMENT OR MANAGEMENT DISTRICTS.
BUT I WOULD ENCOURAGE THE PUBLIC IF THEY KNOW OF PROBLEMS IN ANY OF THESE OTHER GOVERNMENTAL ENTITIES TO CONTACT THE TEXAS RANGERS AT THE NUMBER THAT I'VE PROVIDED, BECAUSE WE DO FOLLOW UP ON CITIZENS' TIPS.
THE POLICE DO THE INVESTIGATIVE WORK, THEY ARE THE FIRST RESPONDING AGENCY, AND WE PROVIDE LEGAL SUPPORT TO THEM THROUGH WARRANTS, LEGAL COUNSEL, THAT KIND OF THING, ALL THE WAY THROUGH CHARGING, AND THEN WE PICK IT UP AT CHARGING.
DO YOU ANTICIPATE ANY OTHER CHARGES IN CONNECTION WITH THIS PARTICULAR SCHEME? IT'S UNKNOWN AT THIS TIME.
I MEAN, THERE'S, YOU KNOW, A DA JORDAN IS DEVELOPING, HE'S OUR FINANCIAL ANALYST IN PUBLIC CORRUPTION.
HE'S DEVELOPING, UM, THE EVIDENCE THAT WE'VE GOT AND WE CA WE MOVE FORWARD TO TRY AND RECOVER WHAT WE CAN FOR THE MANAGEMENT DISTRICT.
WE HOPE TO RECOVER SOME FUNDS OR SOME ASSETS OF VALUE.
KIM, YOU INDICATED THAT YOU HAVEN'T SEEN THIS LEVEL OF TRANSPARENCY FROM AN ADMINISTRATION IN TERMS OF SECURING INFORMATION, RIGHT, FOR INVESTIGATIONS UNDER THE PREVIOUS ADMINISTRATION? YES.
WE ALSO HAVE LEARNED FROM BRIAN'S LETTER AND THAT HE RECEIVED THE OIG, THAT THAT WAS SOMETHING THAT WASN'T ALERTED TO YOUR OFFICE BACK LAST FALL UNDER THE PREVIOUS ADMINISTRATION.
AND WE KNOW THAT OBVIOUSLY YOU'RE WATCHING HEADLINES THAT ARE BEING MADE AND YOU'RE WATCHING TIPS FROM INDIVIDUALS.
THIS SAID, IS THERE ANY KIND OF PUSH OR IS YOUR OFFICE GOING BACK IN TIME AND LOOKING AT SOME POTENTIAL ACTIVITIES THAT MAY HAVE NOT BEEN COMPLIANT WITH TEXAS LAW? ALL WE REQUIRE IS A COMPLAINANT.
ALL WE REQUIRE IS A COMPLAINANT POINT US IN THE RIGHT DIRECTION.
IF THERE'S REASONABLE SUSPICION TO BELIEVE THAT A CRIME HAS OCCURRED, WE CALL THE RANGERS OR ANOTHER INDEPENDENT LAW ENFORCEMENT AGENCY AND SEE WHAT THEY DEVELOP.
THEY'RE LIMITED BY BANDWIDTH JUST LIKE WE ARE.
AND SO IT'S IMPORTANT THAT THE PUBLIC KNOW WHEN WE GET TIPS THAT CHECK OUT, THAT INDIVIDUALS EMPLOYED BY THE GOVERNMENT WILL BE HELD ACCOUNTABLE LIKE EVERYBODY ELSE, REGARDLESS OF WHO APPOINTED THEM OR WHO YOU KNOW, DIDN'T COOPERATE.
YOU MENTIONED THAT THE MONEY HAD BEEN USED FOR LUXURY ITEMS HOUSING.
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INTO ANY MORE DETAIL ABOUT THAT? LIKE HOW MUCH MONEY, HECTOR, WHAT KIND OF TRIPS, HOW MUCH MONEY? SO, UH, I DON'T WANNA GO INTO TOO MUCH DETAIL BECAUSE THIS CASE IS EVENTUALLY GONNA BE TRIED AND SOME OF THESE DETAILS MIGHT COME OUT DURING TRIAL, BUT WHAT WE CAN SAY IS THAT THE MONEY THAT WAS MISUSED, THE GOVERNMENT MONEY DID GO TO PERSONAL EXPENDITURES FOR AT LEAST TWO OF THE PARTIES THAT WE'VE SEEN.UM, THAT MONEY WAS NOT USED TOWARDS THE AFFORDABLE HOUSING PROJECT.
IT WAS USED FROM THEIR OWN PERSONAL EXPENSES.
AND THAT'S WHAT THE EVIDENCE IS SHOWING US.
CAN YOU SAY LIKE WHERE THEY KEEP THE TRIPS OR WHERE THESE HOUSES ARE? I DON'T WANT TO GO INTO TOO MUCH DETAIL OF THAT.
'CAUSE I BELIEVE THOSE, THOSE DETAILS WOULD BE COMING OUT DURING TRIAL.
UM, THERE MAY BE SOME DETAIL IN THE TWO B WARRANT, UH, RELATED TO MR. EDWARDS' ABUSE CAPACITY CHARGE.
AND I, I APOLOGIZE IF YOU ALREADY SAID
UH, AS OF RIGHT NOW, ALL THREE SUSPECTS HAVE EITHER BEEN IN CUSTODY OR HAVE, UH, PRESENT THEMSELVES TO THE DISTRICT COURT.
THEY WERE ARRESTED THIS MORNING.
MR. GORGE AND, UH, MR. EDWARDS WERE ARRESTED THIS MORNING.
MR. EDWARDS TURNED HIMSELF IN.
THEY SHOULD BE ARRAIGNED, I WOULD PRESUME, ON MONDAY SOON.
AND WE CAN GET THAT INFORMATION FROM YOU, LIKE WHAT DISTRICT CLERK'S WEBSITE AND WE WILL, I'M SURE WHAT DISTRICTS NOT TURNED HIMSELF IN.
HE WAS ARRESTED IN VIRGINIA COUNTY.
OKAY, SO ALL WE WERE ARRESTED TODAY? YEAH.
BO GORGE WAS ARRESTED AND JONES PRESENTED HIMSELF.
OKAY, KIM, VERY QUICKLY YOU TALKED, WE'RE HAVING A NEWS CONFERENCE ABOUT PUBLIC CORRUPTION AND THE ACTIONS OF PUBLIC OFFICIALS.
THERE'S BEEN A REPORT IN THE LAST 24 HOURS ABOUT A JUDGE AND A DUI STOP, THAT WAS ALLEGED TO BE A DUI STOP.
UM, WE WANTED TO KIND OF GET YOUR COMMENTS WITH REGARDS TO THAT.
I DON'T HAVE ANY COMMENTS ABOUT THAT RIGHT NOW.
IT'S MY UNDERSTANDING WE HAVE NOT HAD A CASE PRESENTED TO US.
I WANTED ASK ONE QUESTION, SOME OF THE INVOICES THAT, UM, SOME OF THE ADDRESSES AND THE INVOICES OF AC THAT MR. EDWARDS ADDRESS OF FORMER STATE REPRESENTATIVE CAMPAIGN OFFICE DENIED KNOWLEDGE.
UM, CAN YOU GIVE AN ASSESSMENT OF HIS STATUS? WAS THAT DETERMINED? I, I CANNOT.
MAYOR, CAN YOU COMMENT ON ANY, UH, STEPS THAT YOU MAY TAKE INDEPENDENT OF THIS CRIMINAL DRUG RELATED TO MIDTOWN OR, WELL, AS I MENTIONED LONG AGO, UH, THE APPOINTMENTS IN MY OFFICE ARE SCREENED.
WE DO A VERY THOROUGH RESEARCH FOR OCCUPATIONS, CONFLICTS OF INTEREST, AND, UH, I TAKE THAT I RESPONSIBILITY VERY SERIOUSLY.
YOU KNOW, T HAVE HUGE DISCRETION WHERE THEY SPEND THE MONIES.
SO, UH, IT JUST, IT JUST MEANS YOU'VE GOT TO DO YOUR JOB TO PUT GOOD PEOPLE.
THESE CITIZENS THAT HAVE STEPPED FORWARD, I THINK THEY'D BE GREAT CANDIDATES FOR, UH, TS BOARD MEMBERS, MANAGEMENT DISTRICT MEMBERS.
UM, IT EVEN OCCURRED TO ME AS WE WERE WALKING IN HERE, MAYBE PUT A PROSECUTOR ON THE BOARD'S OF MANAGEMENT DISTRICTS AND TS WE JUST NEED TO CONTINUE TO HAVE TRANSPARENCY AND REMIND AS WE DO WHEN WE INTERVIEW FOLKS, UM, THAT THEY HAVE A FIDUCIARY RESPONSIBILITY.
BUT DET DEAL WITH LARGE AMOUNTS OF MONEY, SOME MORE THAN OTHERS BECAUSE THAT'S WHERE THE CITY'S REVENUE'S GOING DUE TO REVENUE CAPS.
SO, YOU KNOW, THEY, THEY DECIDE, THEY COME TO MY OFFICE TO GET APPROVAL FOR STREETS AND AND INFRASTRUCTURE.
BUT I THINK I'M, AND I THINK I KNOW WE ARE DOING A LOT MORE INSPECTION, REVIEW AND OBSERVATION THAN, UH, THAN PREVIOUS ADMINISTRATIONS.
AND JUST TO BE CORRECT, SIR, SO CURRENTLY THERE REPORTING SYSTEM OCCURS HOW THEY, YOU KNOW, WHAT MONEY THEY TAKE IN OR HOW THEY SPEND IT.
THERE'S NO SORT OF OVERSIGHT AGENCY OR INDIVIDUALS.
CAN, CAN I CALL UP AN EXPERT
[00:30:01]
IS MY ECONOMIC DEVELOPMENT, UH, DIRECTOR AND HAS WORKED WITH T ACROSS THE CITY FOR MANY YEARS AND SHE'S HERE FOR TECHNICAL QUESTIONS.BUT I DO KNOW FOR A FACT 'CAUSE I'VE ALREADY KNOCKED HEADS WITH A COUPLE OF TURS.
UH, WE HAVE SOME TURS APPOINTMENTS BEING HELD UP THAT I'VE MADE.
AND, UH, I CAN SIMPLY SAY, AND IS SOME ARE MORE TRANSPARENT THAN OTHERS.
SOME LISTEN TO THE RESIDENTS MORE THAN OTHERS.
AND QUITE FRANKLY, SOME LISTEN TO CITY HALL MORE THAN OTHERS.
BUT I'VE TAKEN, I'VE TAKEN A VERY ACTIVE ROAD IN THE APPOINTMENTS.
AND, UM, IF YOU'RE A CITY VENDOR, NO, YOU'RE NOT A CANDIDATE FOR ONE OF MY APPOINTMENTS.
AND THAT IS ACROSS THE BOARD, WHETHER YOU'RE A METRO, UH, APPOINTEE OR A SPORTS AUTHORITY, HOUSTON FIRST, YOU KNOW, THE APPOINTMENTS.
SO MANY OF THESE COMMISSIONS REALLY PLAY MAJOR ROLES AND INVOLVE MILLIONS OF DOLLARS.
SO I'M ON REVIEW WITH MY STAFF FOR CONFLICTS OF INTEREST.
AND UM, THAT'S THE FIRST THING YOU LOOK FOR.
AND THEN YOU GET THESE FINE INVESTIGATORS INVOLVED AND IT BECOMES IF, UH, PROPER A CRIMINAL INVESTIGATION.
EXPLAIN THE, THE TECHNICAL? YEAH, I GUESS THAT'S THE BOTTOM LINE.
I JUST WANNA MAKE SURE I'M CLEAR.
THAT THERE IS NO OVERSIGHT OVER THE TERMS FOR HOW THE MONEY IS SPENT.
SO CITY COUNCIL IS RESPONSIBLE FOR APPROVING THE PROJECT PLAN, WHICH IS THE DOCUMENT THAT DICTATES WHAT KINDS OF PROJECTS.
CITY COUNCIL IS ALSO RESPONSIBLE FOR APPROVING THE BUDGET AND CIP AS WELL AS THE ANNUAL APPROPRIATIONS OF REVENUE THAT'S APPROPRIATED TO EACH OF THE T ON AN ANNUAL BASIS.
WE ARE ALSO BY A SPECIFIC TYPE OF AGREEMENT WITH EACH OF THE REDEVELOPMENT.
AUTHORITIES HAVE CERTAIN RESPONSIBILITIES FOR APPROVING CERTAIN TYPES OF AGREEMENTS AND CONTRACTS.
SO THERE IS A LOT OF GOVERNANCE, THERE'S A LOT OF OVERSIGHT OF, OF THE TOURS, UH, INCLUDING COORDINATION OF THE BOARD MEMBERS WITH BOARDS AND COMMISSION.
SO FOR EXAMPLE, WAS THIS LONG CARE SERVICE THEN NITIALLY APPROVED BY, SO THE BUDGET WOULD'VE BEEN APPROVED.
THIS IS NOT AS CAPITAL PROJECT.
SO IT WOULD'VE BEEN PART OF THE OPERATIONS BUDGET AND THAT WOULD'VE BEEN APPROVED BY CITY COUNCIL.
THE DAY-TO-DAY OPERATIONS IS MANAGED BY STAFF.
UH, IN SOME CASES, SOME OF THE TOURS HAVE ADMINISTRATORS OR THEY'VE GOT INTERNAL STAFF.
AND IN THE CASE OF MIDTOWN AUTHORITY, THEY'VE GOT AN INTERNAL STAFF THAT MANAGES THE DAY-TO-DAY ACTIVITY.
THEY'VE GOT A FINANCIAL PERSON.
YES, THEY'VE GOT A FULL STAFF.
THERE ARE FINANCIAL PEOPLE THAT ARE STAFFED BY THE REDEVELOPMENT AUTHORITY.
THERE ARE ENGINEERS, UH, EXECUTIVE DIRECTOR, AND THEN THE BOARD OF DIRECTOR OF EACH OF THE REDEVELOPMENT AUTHORITIES HAVE RESPONSIBILITY FOR APPROVING CONTRACTS AND INVOICES.
SO THERE IS, THERE ARE LAYERS OF GOVERNANCE.
THERE ARE LAYERS OF OVERSIGHT.
SO THEN THE ALLEGATION HERE IS, IS THAT THESE MEN AND WOMEN, WOMEN WOULD, LIKE ALL PEOPLE ABOVE ARE SUPPOSED TO OVERSEE THE SITUATION.
I MEAN, I MAYBE
BUT THE BOARD DID NOT PROVIDE OVERSIGHT THAT WAS THOROUGH ENOUGH TO CATCH A VERY SIMPLE SCHEME.
AND, AND I WANT GWEN I WANT YOU TO KNOW GWEN GWEN'S ONLY BEEN IN HER CURRENT POSITION SINCE THE FIRST OF THE YEAR.
IT WAS ANDY AIKEN THAT WAS THE ECONOMIC DEVELOPMENT OFFICER, UH, PRIOR TO THE FIRST OF THE YEAR.
AND THEY ALSO HAVE SUCH AGREEMENTS WITH THE PRIVATE SECTOR.
THE MONTROSE TURS PUT $2 MILLION INTO A PRIVATE COMMERCIAL DEVELOPMENT.
WE GOT 20 PARKING SPACES OUT OF IT.
AND WHEN I ASKED THE TURS, WHY'D YOU DO THAT? WELL, OUR RESIDENTS WERE COMPLAINING ABOUT ON STREET PARKING.
SO WE THOUGHT IF WE HAD HELPED BUILD THIS GARAGE AT THE CORNER OF CALIFORNIA AND MONTROSE, THAT UH, IT WOULD, IT WOULD SOLVE THAT COMPLAINT OF GETTING CARS OFF THE STREET.
WELL, IT WAS PRETTY EXPENSIVE PARKING PLACES.
SO WE'RE UN CONSTANTLY STARTING TO REVIEW THESE PROJECTS, BUT, YOU KNOW, AND I WON'T COUNSEL TO PLAY A ROLE, BUT UH, THAT HASN'T ALWAYS BEEN THE CASE IN PREVIOUS YEARS.
SO THERE'S A LOT LEFT TO LEARN.
I DON'T WANT TO INTERRUPT YOU, BUT FOR THE DISTRICT ATTORNEY AND MAYOR, BEFORE WE LET Y'ALL GO, WE KNOW THAT CHARGES WERE JUST FILED IN THE CASE THAT THIS 12, THIS IS THE CASE THAT IS FOR OBVIOUSLY MANY PEOPLE IN OUR WHAT? ANYTHING WE WANT PEOPLE TO KNOW ABOUT THESE NEW CHARGES.
WHAT COMES NEXT? YEAH, THEY'VE BEEN CHARGED WITH CAPITAL MURDER, MAKING THEM ELIGIBLE FOR THE DEATH PENALTY.
[00:35:01]
THAT'S IMPORTANT TO KNOW AT THIS TIME IS THAT BOTH INDIVIDUALS HAVE BEEN CHARGED WITH CAPITAL MURDER MAKING THEM ELIGIBLE FOR THE DEATH PENALTY.AND THAT'S NOT A DECISION WE MAKE PRELIMINARILY, I'M JUST LETTING YOU KNOW THAT THAT CRIME CARRIES THE ULTIMATE SANCTION.
WHEN IT COMES ABOUT THE IMMIGRATION STATUS.
HOW DOES THAT SITUATION AFFECT POTENTIALLY THE CRIMINAL CASE? I KNOW THEY HAVE A, I SAW THE TEAM BY NOW HOW THAT AFFECTS THE, I AM NOT PREPARED TO COMMENT ABOUT THEIR IMMIGRATION STATUS OR THE ANY HOLD, I'M JUST NOT CONFIRMED ON ANY OF THOSE FACTS.
ALRIGHT, THIS CONCLUDES THE PRESS CONFERENCE.