Federal Bureau of Investigation - The El Paso = Division: Department of Justice Press Release

From: Subject: Federal Bureau of Investigation - The El Paso Division: Department of Justice Press Release Date: Thu, 16 Jul 2009 08:16:19 -0400 MIME-Version: 1.0 Content-Type: multipart/related; type="text/html"; boundary="----=_NextPart_000_000C_01CA05ED.B2CD56B0" X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.5579 This is a multi-part message in MIME format. ------=_NextPart_000_000C_01CA05ED.B2CD56B0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Content-Location: http://elpaso.fbi.gov/dojpressrel/pressrel09/ep_070209.htm Federal Bureau of Investigation - The El Paso = Division: Department of Justice Press Release

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Department of Justice Press=20 Release


For Immediate=20 Release July 2, 2009	United States = Attorney=92s Office Western District of=20 Texas Contact: (915) 534-6884 =
Former=20 Executive of National Center for the Employment = of the=20 Disabled Pleads Guilty to Embezzlement, Tax, and = Public=20 Corruption Charges John E. Murphy, Acting United = States=20 Attorney, announced that in El Paso this = morning,=20 63-year-old Robert Edward Jones, former CEO and=20 President of the National Center for the = Employment of=20 the Disabled (NCED), pleaded guilty to six = federal=20 charges related to embezzling millions of = dollars in=20 government program funds and to conspiring with = others=20 to deprive the community of the right to honest = services=20 of elected officials. Appearing before United States = District=20 Judge Frank Montalvo, Jones pleaded guilty to = two counts=20 of conspiracy to commit theft or embezzlement of = federal=20 program funds; one count of conspiracy to make = false=20 statements and to defraud the United States; one = count=20 of making a false statement to a financial = institution;=20 one count of aiding and abetting in the = preparation of a=20 false tax return; and, one count of conspiracy = to commit=20 mail fraud, wire fraud and the deprivation of = honest=20 services. By pleading guilty, Jones = admitted that=20 during a three-year period beginning in June = 2003, he=20 schemed to steal or embezzle at least $5,000 = from NCED,=20 an organization that received at least $10,000 = in=20 federal government program money in each year = charged=20 and, without authorization of the NCED Board of=20 Directors, directed the money for his use or = others. Jones also admitted that from = November 22,=20 2003, until March 6, 2006, he conspired to make = false=20 statements and defraud the United States by = lying to the=20 Committee for Purchase from the Blind and = Severely=20 Disabled, falsely claiming NCED was in = compliance with=20 the Javits Wagner-O=92Day Act (JWOD). By doing = so, Jones=20 fraudulently secured no-bid contracts from = government=20 agencies=97contracts which are set aside for=20 not-for-profit organizations who employ blind or = other=20 severely handicapped individuals to perform at = least 75=20 percent of the work on the government contracts. = According to the superceding indictment in this = case,=20 NCED did not employ sufficient numbers of blind = or=20 severely disabled workers to qualify for JWOD=20 contracts. Jones further admitted that in = 2003, he=20 submitted false information to a financial = institution=20 in order to secure a $975,000 mechanic=92s lien = on his new=20 home. In addition to pleading guilty = to the=20 above charges=97all of which were contained in = federal=20 grand jury indictments=97Jones pleaded guilty to = two=20 criminal Informations filed yesterday by the = United=20 States Attorney=92s Office. The first = Information charges=20 Jones with aiding and abetting in the = preparation of a=20 False 2003 Income Tax Return. By pleading = guilty, Jones=20 admitted that he knowingly failed to report $1 = million=20 dollars in income the Jones Family Trust = received in=20 2003. The second Information charges = that from=20 late 1998 until March 2006, Jones conspired with = elected=20 officials and others to commit mail fraud, wire = fraud=20 and to deprive El Pasoans of the right to the = honest=20 services of elected officials. By pleading = guilty, Jones=20 admitted that he was involved in a scheme to = defraud the=20 County of El Paso, the El Paso, Ysleta and = Socorro=20 Independent School Districts as well as the = citizens=20 living and voting in El Paso County of the right = to=20 honest services of elected officials. = Furthermore, Jones=20 admitted to paying cash and other bribes in the = forms of=20 campaign contributions and gratuities in order = to secure=20 vendor contracts between Access Healthsource and = the=20 above mentioned entities. This ongoing investigation is being conducted = by=20 agents of the Federal Bureau of Investigation = (FBI); the=20 U.S. Army Criminal Investigation Division-Major = Fraud=20 Unit; the General Services Administration-Office = of the=20 Inspector General (GSA-OIG); the United States = Postal=20 Service-Office of the Inspector General = (USPS-OIG); and=20 the Internal Revenue Service-Criminal = Investigation=20 Division (IRS-CID). The case is being prosecuted = for the=20 government by Assistant United States Attorneys = William=20 F. Lewis, Steve Spitzer and Debra Kanof. Press=20 Releases \| El = Paso=20 = Home