BREAKING: Indictments Announced In Christus St.Vincent Fraud Case

Attorney General Gary King announced today grand jury indictments against Loretta Mares, also known as Bernadette Gallegos, and Richard Crabtree on numerous counts of fraud and conspiracy in connection with alleged fraud at Christus St. Vincent Hospital in Santa Fe.

Crabtree is a former executive at the hospital. According to a lawsuit filed in December by an insurance company attempting to recover funds from the alleged fraud, he conspired with Mares and others to direct contracts for information services to companies Mares and others controlled and that the hospital was charged for services never provided or was overcharged, to the tune of at least $3.2 million.

Mares has been described as the “significant other” of former Albuquerque Mayor Martin Chavez, who is currently running for Congress. Crabtree, who now lives in Castle Rock, Colo., recently resigned from a job as an associate chief financial officer for Denver Health Medical Center.

Chavez’s campaign issued a statement Thursday afternoon saying that said Mares’ case “has nothing to do with Marty or his campaign” and that Chavez and Mares are no longer living together.

The events for which she is charged “happened before their relationship began,” the statement said.

The statement adds that “there will be nothing further about the relationship” from the Chavez campaign.

Crabtree is charged with nine counts of fraud of over $20,000; eight counts of fraud of over $2,500 but not more than $20,000; one count of attempt to commit felony, to wit, fraud over $20,000; and one count of conspiracy to commit fraud of over $20,000.

According to the indictments: “For a three-year period from early 2005 to early 2008, Richard Crabtree authorized numerous payments on behalf of St. Vincent to various companies operated and/or controlled by Loretta Mares and/or her associates. Crabtree, in turn, received payments from these same companies and/or people.”