As Seen in Journal
|
 E-mail Story Print Friendly
News breaking |
Play Puzzles and Free Games
Thursday, August 23, 2007
- First Superseding Indictment PDF download
- Department of Justice, District of New Mexico Web site
- Metro Court Scandal Likely to Grow april 1 story
- Feds Allege Inflated Bills Cost Taxpayers march 30 story
- Key Players as of march 30
- Senate Mixed on Indictments march 30 story
- State Works Closely With Feds march 30 story
New Indictment Names Businessman in Courthouse Fraud Case
Associated Press
A federal grand jury on Thursday returned a revised indictment in a courthouse corruption scandal that includes new charges against an Albuquerque businessman hired to represent court officials during the construction of the $83 million Bernalillo County Metropolitan Courthouse.
Michael Murphy, identified by the superseding indictment as the owner of Public Private Projects, Inc., entered a contract with the judges in June 2002 to help oversee the project. He's accused of conspiracy, money laundering and mail fraud.
Murphy's attorney, Jason Bowles of Albuquerque, said Thursday evening that he did not expect his client to be named in the indictment.
"We will study the indictment and respond in court,'' Bowles said.
Other defendants include former Senate President Pro Tem Manny Aragon; Raul Parra, an Albuquerque engineering contractor; Toby Martinez, a former Bernalillo County Metropolitan Court administrator; and his wife, Sandra Mata Martinez.
They are accused of bilking the state out of $4.2 million during the courthouse construction.
Norm Cairns, a spokesman for the U.S. attorney's office, said Murphy likely will be arraigned on the charges next week.
The other four defendants, who previously pleaded not guilty, will be entitled to second arraignments in light of the superseding indictment, Cairns said. Those could also happen next week.
Three other people — architect Marc Schiff; Ken Schultz, a lobbyist and former Albuquerque mayor; and subcontractor Manuel Guara — have pleaded guilty to one count of conspiracy and one count of mail fraud in the case.
Prosecutors allege Aragon, Parra, the Martinezes and Murphy conspired to submit and approve false invoices for payment and to make excessive requests for payment for work on the courthouse.
Under part of the scheme, Aragon, Toby Martinez, Parra and Murphy are accused of including millions of dollars of fraud in contract proposals and change orders for the installation of audio-visual equipment and communication wiring in the courthouse.
Martinez and Parra also have been linked to a proposal by the state Transportation Department to relocate a district office in Santa Fe.
According to the indictment, Aragon recommended to the department that it hire Martinez to serve as a project manager. Martinez would then tell the bidder on the project that Parra should be hired as a consultant to put together a construction team.
The indictment said Parra had plans to receive a percentage of the project's total cost for his consulting services and share that with other people.
The indictment states the defendants — and others unknown to prosecutors — planned to keep the alleged conspiracy secret.
Transportation Secretary Rhonda Faught said Thursday she was recently made aware of allegations that Martinez and Parra may have been plotting to defraud taxpayers by manipulating the department's District 5 relocation project.
"That District 5 redevelopment project never moved forward, and I am confident that Martinez and Parra were not able to carry out the alleged scheme,'' she said in a statement.
Faught said Martinez was hired as a temporary employee in 2005, overseeing the planning stages for a redevelopment project at the department's headquarters in Santa Fe.
As a result of the allegations against Martinez in the courthouse scandal, Gov. Bill Richardson ordered a review of the project by the Transporation Department's inspector general to ensure there are proper safeguards to protect taxpayer money.
Faught also said the governor plans to hire an independent law firm to provide an external reivew of the inspector general's report.
Copyright ©2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.