Feds probe City’s, County’s dealings with Dannenbaum Engineering

FBI agents in significant numbers made their way through City Hall, City facilities on Thomas Street and on Loop 20, as well as the Webb County Courthouse downtown in a Wednesday morning raid to gather evidence of public corruption, specifically for violations of the “Hobbs Act, Title 18, U.S.C. § 1951; Honest Services, 18 U.S.C. § 1346, 1341 (Mail Fraud) and 1343 (Wire Fraud); Theft or Bribery concerning programs receiving federal funds, 18; U.S.C. § 666; 18 U.S.C. § 1591, Destruction, alteration, or falsification of records in Federal Investigation and bankruptcy; aiding and abetting the offenses described above, in violation of 18 U.S.C. § 2, and 18 U.S.C. 371, Conspiracy.”

The documents that agents sought downtown and at City Hall Annex on Loop 20 and the Thomas Street offices of Public Works and Water Utilities span the time period from January 1, 2013 to the present and target City and County financial dealings with Dannenbaum Engineering and specifically on relationships between City and County employees with the Houston-based firm that been a repeat awardee for water and utility infrastructure projects in Laredo and Webb County.

The search warrant included a list of “Target-Subjects” and a secondary list of other City employees and elected Council members.

The “Target-Subjects” named in the warrant are former City Council member and former LISD trustee Johnny Amaya, Louis Jones of Dannenbaum Engineering, District III City Council member Alex Perez, former City Council member Juan Narvaez, District VIII City Council member Roberto Balli, Oscar Michael (Mike) Garza of Dannenbaum Engineering, State Rep. Richard Peña Raymond, James (Jim) Dannenbaum, David Anthony Garza, former City Council member Roque Vela Jr., City manager Jesus (Chuy) Olivares, Maruca Morales, Claudia Alviso, Juan (Johnny) Narvaez, developer Daniel (Danny) Wyers, Alberto Torres, and Rodolfo (Rudy) Gonzalez Jr.

According to the Department of Justice warrant, the names on the secondary list include assistant City Manager Robert Eads, City engineer Rogelio Rivera, Traffic Safety director Roberto Murillo, Traffic Safety Engineering Associate II Roberto Peña, Building Department director Ramon Chavez, Utilities director Riazul Mia, assistant City Utilities director Michael Rodgers, District II City Council member Vidal Rodriguez, District V City Council member Nelly Vielma, District VI City Council member Charlie San Miguel, and District VII City Council Member George Altgelt.

Webb County PIO Larry Sanchez reported that four County offices were subjects of the FBI raid — that of Pct. 4 Commissioner Jaime Canales, auditing, internet technology, and engineering — and will remain closed until further notice.

FBI spokesperson Michelle Lee confirmed that Dannebaum Engineering offices in Laredo, McAllen, San Antonio, and Houston were also visited by FBI agents on Wednesday.

Lee said that while some City buildings remain open to the public, others are closed until the agency’s work is completed. She stressed that agents are working quickly and efficiently to restore the normal operation of City and County offices.

She added that no arrests have been made.

Texas DPS troopers rather than local law enforcement officers assisted the FBI.

Among the high-dollar Dannenbaum projects for the City of Laredo was the $100,000,000 El Pico Water Treatment Plant, which the company designed and for which it served as the project’s construction manager for a ten-percent (ten million dollars) fee.

Dannenbaum was also awarded a million-dollar water line contract from the El Pico Water plant through the Hachar-Reuthinger properties to the northern boundary of the Hachar Loop, a contract that was awarded and let without requests for proposals from other contractors.

At a late afternoon press conference in the Webb County Commissioners Courtroom, Mayor Pete Saenz and County Judge Tano Tijerina spoke to discuss the day’s events and to dispel the exaggerated extents to which City and County business had been affected in the course of the day.

Webb County Pct. 1 Commissioner Jesse Gonzalez, Pct. 2 Commissioner Rosaura Tijerina, and Pct. 3 Commissioner John Galo were present at the conference, though Pct. 4 Commissioner Canales was not.

District IV City Council member Albert Torres and District V Council member Nelly Vielma also attended.

The warrants — there were four — sought to gather records and records relating to the individuals named on its two lists for financial and/or business relationships of any kind between them and Dannenbaum Engineering, as well as all documentation related to actions taken or to be taken on behalf of those Target-Subjects, City employees, and/or representatives of Dannenbaum Engineering, in their official or personal capacity, or by others acting on behalf of the subjects in their official capacity.

Among other things, the FBI searched for:

• Communication, emails, telephone calls, copies of checks, ledger receipts, cancelled checks, bank records, pass books, loan documents, contracts, MOUs, and income tax returns, foreign and domestic bank documents, safety deposit box keys.
• Computers, hard drives, data, software, cell phones, laptops, i-pads, flash drives, scanners, physical keys and locks.
• Papers, tickets, schedules, receipts, and other items relating to domestic and international travel.
• Records of training relative to policies and procedures related to the City of Laredo and to governing bodies to include City Councils, MPOs, RMAs, TxDOT, or other government entities and the use of official databases.