FROM ELPASOTIMES.COM -
El Paso Independent School District Superintendent Lorenzo García once proudly talked about his aspirations to become the state's commissioner of public education.
On Tuesday, it was unclear if García would even be able to keep his job leading the city's largest school district as he stood before a U.S. judge in a blue jail jumpsuit with handcuffs around his wrists and ankles.
García, 55, pleaded not guilty to federal charges of fraud and embezzlement.
His attorney said he plans to return to his job at the district today after being released for paying $5,000 of his $50,000 bond.
But school board president Isela Castañon-Williams said late Tuesday
night that she sent a message to García, through the district's attorney, asking that he take personal leave until after the school board meets Thursday to discuss his standing with the district.
García faces the possibility of federal prison time for a plan he allegedly devised with others to defraud the district upon becoming its leader five years ago.
According to a federal indictment, García allegedly began working to steer a $450,000 no-bid contract to someone with whom he had a personal relationship. He also had a personal financial interest in the company, the indictment said.
The Houston-based company appears to be Infinity Resources and Associates, which was run by Tracy Rose, according to documents obtained by the El Paso Times. The listed location for the business seems to be a private mailbox, not a physical address.
Ray Velarde, García's defense attorney, said his client plans to continue with his normal routine upon release. That includes immediately returning to work to lead the more than 60,000-student district.
"I'm confident that he'll be acquitted," Velarde said about García.
The attorney and García did not get into the specific charges in the case when they briefly addressed reporters as they were leaving the jail Tuesday night. A Spanish-language reporter asked García if he would like to make a comment for the 80 percent of the population of El Paso who speak Spanish.
García simply replied "Exactly."
Velarde then added, "At this precise moment, we are not prepared to make a statement regarding these allegations. They have not shown us any information that supports these charges."
García faces one count of conspiracy to commit mail fraud, two counts of mail fraud and one count of aiding and abetting theft from programs receiving federal funds.
Each mail fraud charge carries a penalty of up to 20 years in prison, the theft charge is punishable by up to 10 years in prison and a fine of up to $250,000 could be assessed if García is convicted.
García, usually a forceful speaker, had a softer tone as he replied "yes" and "yes, sir" when asked if he understood the charges against him.
As part of the conditions of García's bond, he was ordered to turn over his passport
remain in El Paso County and not have any weapons.
An officer with U.S. Probation and Pre-trial Services must also supervise García while he is out on bond.
The FBI claims that on Sept. 9, 2005, before García was hired at EPISD, he gave $5,000 to an unindicted co-conspirator with whom he had a personal relationship. About $4,000 from that payment was deposited into the bank account of the company run by the co-conspirator.
García took the helm of the El Paso district in February 2006. The indictment says that same month he allegedly persuaded the co-conspirator to try obtain a no-bid contract with the district by presenting itself as the only company that could provide such services and products.
The co-conspirator believed the contract to be worth about $100,000 but set the value of the services at $500,000 with the encouragement of García, according to the indictment.
In March 2006, García had district employees "devote their time and efforts to preparing to assist" the company in fulfilling the contract, and he got a lawyer to help create a template for the company that would exclude competition, the indictment said.
The co-conspirator, on or about July 6, 2006, submitted an affidavit claiming that the company was the only source for the products and services provided to the district, according to the indictment.
Documents obtained by the Times show that Rose signed and presented an affidavit that July 6 and presented it to the district. In the notarized letter, she said her company was the sole-source provider of specialized data-driven materials that would help boost student math scores in the state's standardized test.
An executive summary obtained by the Times for a July 11, 2006, school board meeting indicates that administrators asked trustees to approve a $450,000 contract for math materials and staff development from Infinity Resources and Associates. The indictment includes mention of an executive summary with the same date and amount.
EPISD sent two checks of $180,000 each to a Houston company on Aug. 4 and Aug. 18, according to the indictment.
The executive summary presented to school board trustees suggested that the district would pay the company $360,000 at the start of the contract in August. In return, the company was to provide the district with products for kindergarten through fifth grade and pay the company's travel costs for 18 trips to the district. The company would later receive an additional $90,000 for staff development, travel costs and services for middle schools and high schools.
School district officials did not return calls or emails seeking more information.
Some school board members also did not return phone calls. Others declined to comment on the issue and directed questions to Castañon-Williams.
Castañon-Williams said trustees are gathering information and the board will make decisions about García's future with the district at a meeting Thursday.
"At this point, our focus has to be making sure the business of the district moves forward," she said. "We will do what is right for the district. We make decisions based on solid information."
García served as a deputy superintendent in the Dallas Independent School District before he was hired as the leader of EPISD in December 2005. He officially took charge of the district two months later.
Garcia also served as an assistant and area superintendent at Houston's Spring Branch Independent School District.
Administrators on Tuesday sought to reassure community members that the district would withstand García's arrest.
Fort Bliss Garrison Commander Col. Joseph A. Simonelli Jr. said on his Facebook and Twitter accounts that he was contacted by Terri Jordan, the district's chief of staff. He called Jordan "the interim Superintendent" of the district.
"She wanted to express to me EPISD's commitment to educating our children as best as possible and promised her personal dedication to do so in this turbulent time," he said in the posts. "I have full faith and confidence in her and ask you provide the same."
The past year has been a rough one for the school district.
It has been under scrutiny from multiple investigations and audits by the Texas Education Agency, the U.S. Department of Education and the FBI.
The district also failed to get voter approval for a tax increase and will be shorted millions of dollars because of state budget cuts. It was, however, one of five districts in the county to receive a recognized rating on the state's accountability system.
"We're a recognized district steadily standing -- despite the many challenges we've had," Castañon-Williams said. "We're standing stronger than ever."
No administrators, friends or family were at the court on Tuesday. A district parent and Helene Solomon, a retired EPISD employee who is one of García's biggest critics, were present.
García's case has been assigned to Senior U.S. District Judge David Briones, but his next court date has yet to be set.
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