Federal Grand Jury Indicts EPISD Superintendent

United States Attorney John E. Murphy and Federal Bureau of Investigation Special Agent in Charge David Cuthbertson announced today the arrest of 56-year-old Lorenzo Garcia, superintendent of the El Paso Independent School District (EPISD), on mail fraud and theft charges.

The indictment, returned on Thursday and unsealed today, charges Garcia with 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.

According to the indictment, from February 1, 2006 until March 11, 2007, Garcia and others conspired to defraud EPISD by securing a $450,000 sole-source contract under false pretenses. The indictment specifically alleges that Garcia provided $5,000 to an unindicted co-conspirator (UCC) of which $4,000 was deposited into the UCC’s company bank account. Garcia also convinced UCC, with whom he had a personal relationship, to enter into a contract with EPISD and to represent the value of the contract to be approximately $500,000–$400,000 more than what the UCC believed was the true value of products and services rendered. The indictment further alleges that Garcia, in an effort to eliminate any possible competition for UCC, sought the assistance of an attorney to prepare and provide UCC with templates for a sole source contract with EPISD. In July 2006, UCC, at the direction of Garcia, submitted an affidavit and a letter to EPISD seeking a no-bid contract claiming that UCC’s company was the sole source of the products and services said vendor was offering to EPISD. In August 2006, the UCC received two checks from EPISD in the amount of $180,000 each. Finally, the indictment alleges that Garcia failed to disclose to the Board of Trustees his personal relationship to the UCC as well as his personal financial interest in the vendor company.

Each of the mail fraud related charges and the theft charges contained in the indictment call for up to 20 years and up to 10 years, respectively, in federal prison and a maximum $250,000 fine upon conviction.

“Today’s charges demonstrate the FBI’s unflinching commitment to the citizens of El Paso that we will vigorously investigate allegations of public corruption regarding elected or appointed public officials. The citizens of this community deserve to have a sense of confidence that their tax dollars are being spent efficiently for the public good and not for the private enrichment of a select few,” stated David Cuthbertson, Special Agent in Charge, Federal Bureau of Investigation, El Paso Division.

Assistant United States Attorney Debra Kanof is prosecuting this case on behalf of the government.

An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.