***MUD/ECO Scandal Update***
Just in from FortBendNow.com (http://www.fortbendnow.com/news/371/texas-rangers-may-investigate-mud-scam)
TEXAS RANGERS MAY PROBE MUD SCAM
by Bob Dunn, Nov 11, 01:38 pm
The Texas Rangers may wind up investigating a scam through which several local municipal utility districts were bilked of nearly $200,000.
In September, managers for Sugar Land’s ECO Resources discovered evidence of an apparent scheme through which several MUDs – all ECO customers – had been falsely billed for a total of more than $185,000 in work or services never performed.
The company fired Janet E. Trentham, of Missouri City, one if its client managers, in connection with the scheme.
ECO, which manages and operates more than 120 municipal utility districts, agreed to make restitution for the $185,000-plus in losses to MUD districts that’s been identified so far, and also hired a forensic accounting firm to conduct an audit and determine if there were any further losses.
ECO alerted Fort Bend County District Attorney John Healey to the apparent scam, and agreed to turn findings of the forensic audit over to his office once it’s complete.
On Thursday, Healey said he’s spoken with Jeff Cook of the Texas Rangers about the matter. If the audit shows a criminal investigation is warranted, Healey said, he intends to ask the Rangers for assistance, and the Rangers “will accept any request I make.”
ECO Resources, which was founded by Fort Bend County Judge Robert Hebert, now is owned by Southwest Water Co., a publicly traded company headquarterd in Los Angeles, with whom Hebert has a consulting agreement.
Southwest’s John Boardman, who manages ECO operations, said the forensic audit still is being worked on, but may be completed by the end of November.
“I’m trying to push them to a resolution,” Boardman said of the auditors, “and they’re trying to remind me that they need to be thorough.”
Meanwhile, Trentham has been served notice that she’s being sued for fraud by one of the victimized MUDs.
First Colony MUD #9 filed suit against Trentham last month in Fort Bend County District Court. The lawsuit alleges Trentham obtained more than $25,000 from the utility district through fraud, and seeks actual and punitive damages, an accounting of Trentham and all her financial records, interest on money taken by fraud, and attorney’s fees
Trentham, who does not have a listed phone number, could not be reached for comment for this story.
Comments:
1 CyberInvestigator - Nov 11, 03:12 pm
Thanks for keeping us posted on this. Thank God someone other than the “good ole’ boys” network here in FB county is looking into this. Given the relationships bringing in outside agencies is almost required. Well done FBN!
posted by responsible_dvlpmnt at Saturday, November 12, 2005
13 Comments:
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I guess my question is why the manager who supposedly lead this raid on customer funds wasn't arrested for criminal behavior?
I wonder who else was involved and if they can get the manager to turn states evidence in this to expose them?
Here's one for you joke fans:
A small town prosecuting attorney called his first witness to the stand in a trial -- a grandmotherly, elderly woman. He approached her and asked, "Mrs. Jones, do you know me?"
She responded, "Why, yes, I do know you Mr. Williams. I've known you since you were a young boy. And frankly, you've been a big disappointment to me. You lie, you cheat on your wife, you manipulate people and talk about them behind their backs. You think you're a rising big shot when you haven't the brains to realize you never will amount to anything more than a two-bit paper pusher. Yes, I know you."
The lawyer was stunned. Not knowing what else to do he pointed across the room and asked, "Mrs. Williams, do you know the defense attorney?"
She again replied, "Why, yes I do. I've known Mr. Bradley since he was a youngster, too. I used to baby-sit him for his parents. And he, too, has been a real disappointment to me. He's lazy, bigoted, he has a drinking problem. The man can't build a normal relationship with anyone and his law practice is one of the shoddiest in the entire state. Yes, I know him."
At this point, the judge rapped the courtroom to silence and called both counselors to the bench. In a very quiet voice, he said with menace, "If either of you asks her if she knows me, you'll be in jail for contempt of court in a heart beat!"
One thing I can agree with you guys is this:
"Thank God someone other than the “good ole’ boys” network here in FB county is looking into this."
Some of you might be interested in the MS school naming debate going on at the SOS site (SP MS off Sienna Pkwy & Sienna Ranch Road):
Chronicle article -- http://www.chron.com/cs/CDA/ssistory.mpl/metropolitan/3456028
SOS discussion group on this issue -- http://www.save-our-schools.blogspot.com/
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I sure wish someone would look at the other connections on this case. For example the developers assign/appoint many of the MUD boards who then decide which vendors to contract with until resident boards are elected.--Do you all think the T.Rangers will widen the scope of these investigations?
Try this one JK:
An honest lawyer
An independent woman started her own business. She was shrewd and diligent, so business kept coming in. Pretty soon she realized she needed an in-house counsel, and so she began interviewing young lawyers.
"As I'm sure you can understand," she started off with one of the first applicants, "in a business like this, our personal integrity must be beyond question." She leaned forward. "Mr. Peterson, are you an 'honest' lawyer?"
"Honest?" replied the job prospect. "Let me tell you something about honest. Why, I'm so honest that my dad lent me fifteen thousand dollars for my education and I paid back every penny the minute I tried my very first case."
"Impressive. And what sort of case was that?"
He squirmed in his seat and admitted, "My dad sued me for the money."
Can we get a copy of the audit in this scandal once it is completed? Is the DA/T-Rangers going to do their own external audit and look at additional years and possible others involvement as well as begin to look at MUD operations in this area for compliance issues? Don't the voters in this county have a right to know that the MUDs are operating within the law and in a responsible manner (especially the ones appointed by developers)?
What makes you think the audit will say anything different than what they want it to say?
I wonder if the IRS needs to get involved or if theya re already watching the situation here?
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