Foddrill Conspiracy Overview

CORRUPT CITY OF SAN ANTONIO TEXAS OFFICIALS HAVE USED THE POWER OF THEIR OFFICES,

THE SAPD, CITY STAFF AND TAX DOLLARS TO CONCEAL DECADES OF CRIMINAL ACTIVITY

INSIDE THE CITY AND THEIR DIRECT INVOLVEMENT IN THE ILLEGAL COVER-UP. THEY HAVE

ISSUED ILLEGAL/UNCONSTITUTIONAL CRIMINAL TRESPASS WARNINGS, CONFISCATED

PROOF OF THE CRIMES AND INSTRUCTED CITY STAFF TO IGNORE REPORTS OF THE CRIMINAL

ACTIVITY. MAYOR JULIAN CASTRO, COUNCILPERSON DIEGO M BERNAL, COUNCILPERSON CRIS

MEDINA, SAPD CHIEF WILLIAM MCMANUS, CITY MANAGER SHERYL SCULLEY, CITY AUDITOR

KEVIN BARTHOLD AND OTHERS HAVE TAKEN AN ACTIVE ROLE IN THE CRIMINAL CONSPIRACY.

Corrupt City of San Antonio, Texas officials and employees have for most of the past three (3) decades secretly

dumped invoices, bills, fake statements, etc. into an internal telephone billing account called the “telephone

variable” and fraudulently billed individual city departments, grantors and others supposedly for overhead

telephone expenses- grant funded, city funded and alternately funded phones alike. These invoices and bills were

not for telephone costs, were not associated with state/federal grants, were not the responsibility of the department/

entity billed, were altered to hide the true identity of the user, contained known fraudulent accounting of hours

worked, were for illegal contracts with unauthorized vendors containing huge markups, were NEVER approved by

Council/taxpayers, etc. Fraudulent use of the “variable” violated City Administrative Directives, City ordinances,

municipal/state open bidding regulations, state/federal grants rules, etc. Internal City documents describe the

magnitude of the fraud as “a bottomless pit of money” and “millions of dollars of goods and services”. Up to $5.2

million a year for every year since 1982 was funneled thru the “variable”- most of the money for illegal purposes.

City Attorney Bernard, SAPD Chief McManus and City officials ignore police reports, sworn affidavits, Municipal

Integrity intake reports and documented evidence of the violations of law and the ensuing perjury/obstruction

committed to keep the crimes secret. All proof of the crimes was confiscated, instructions were issued not to

discuss the criminal activity and an unconstitutional “Criminal trespass Warning” letter was issued by Bernard and

SAPD Chief McAnus barring entry into City Hall / public meetings that remained in effect from July 1, 2009 to

April 1, 2013…almost four years. Another illegal, unconstitutional ban was issued prohibiting yet another law-
abiding whistleblower from entering City Hall and public meetings that remained in effect for seven months in

2012-3. They use the “color of the law” to hide the criminal activity and continue to violate the law in an effort

to hide decades of criminal activity including theft of public funds, bond fraud, accounting fraud, grant fraud,

perjury, “ fraud upon the court”, falsification of government documents, official oppression, terroristic threats,

Constitutional abuses, etc.

OMB circulars (especially A-87), individual grant guidelines, State of Texas rules/procedures (especially the

State of Texas Uniform Grant management Standards), City of SA Administrative Directives ( especially AD

8.10), etc. detail how prior approval must be on file for any grant funds to be used to pay for such indirect costs as

the “telephone variable”. These regulations also detail how expenses incurred that provide no benefit to the grantee

are prohibited. Texas Local Government Codes and the City Charter detail procedures required by law that must be

followed to spend public funds. The City ADs detail how required funding is procured through submission, review

and approval by Council. AD 6.12 provides clear and concise rules/regulations for the governance, administration

and use of the” telephone variable”. These documents prove that Mayor Julian Castro, Councilperson Bernal,

Councilperson Cris Medina, City Attorney Bernard, City Attorney Deborah Klein, former CIO Varn, IT Director

Miller, Chief McManus and others conspire to hide criminal activity inside the City.

As early as October 2005 the Office of Municipal Integrity (Quinn and Harrison) issued a fraudulent statement

that no wrongdoing was found concerning reports of criminal violations including fraud/misappropriation of funds,

threats to keep quiet, falsification of government documents, contract fraud, etc. yet internal documents show that

Budget Director Peter Zanoni, CIO Michael Armstrong (currently the CIO for Corpus Christi, Tx), IT Director

Hugh Miller, MI Manager Virginia Quinn and others were aware of the criminal activity as early as October/

November 2005. Virginia Quinn, Tom Schmidt, CIO Richard Varn ( RJV Consulting , a Senior Fellow with the

Center for Digital Government ,Technology Policy Adviser to the National Retail Federation, Director of the

Coalition for Sensible Public Records Access, and serves on the Board of Trustees for the Educational Testing

Service), Aida Anguiano, Steve Harrison and others have declared (at times under oath in a court of law) that no

rules, laws or regulations were broken or that there were no rules regulating the “variable” yet Administrative

Directive 6.12 “Use of Telephone: Monthly Billing” published on 01-04-82 clearly “outlines the process for the

monthly billing to the departments for charges which the City incurs for telecommunications services”. CIO

Richard Varn’s and other employee’s courtroom testimonies concerning “investigations” finding the “variable”

legal, contact of Washington DC, reasons why City created the “variable”, etc. are directly contradicted by 2007

depositions, City records and published Administrative Directives on the books since 1982. City employees/

attorneys lied to keep the fraud secret. The AD clearly describes the make-up of the “Variable Base Charge”

as the “pro rata share of the Centrex common service and equipment costs, municipal tax, plus administrative

overhead costs (simply the monthly telephone phone bill, taxes and the cost to divide the bills up) .” NOT included

in this list of allowable costs are trophy cases, office painting, office remodeling, travel, radio goods/services,

network goods/services, building cabling invoices, department specific purchases, training, wireless invoices, no-
bid contracts steered to “friends”, “padded” invoices submitted to Avaya across state lines ( mail/wire fraud) ,

illegal purchases from non-authorized vendors, “things that would pop up”, “software mandates”, “ things that

would come up that wouldn’t neatly fit into one of those things that still needed to be done”, a means “ to adjust

the budgets”, invoices that were “altered”, or many of the other costs secretly dumped into the “variable ”. These

costs are not allowed under Administrative Directive 6.12 and violate city policy, city budgets, city ordinances,

bond issues, state/federal grants, AACOG regulations, etc. A majority of the $5.2 million a year funneled thru the

“variable” was used illegally as far back as 1982 when the billing account was created.

The siphoning of funds from telephone budgets under the guise of overhead telephone costs but in reality were for

anything but phones violated ordinance (law)/budget/bond mandates. Funds set aside by city ordinances/bonds

but used at the discretion of corrupt City employees violated the legally binding terms of the ordinances/bonds

/ laws. Funds obtained thru bond issues mandating allocations for city telephones but used instead for anything

corrupt city employees cared to spend the money on violated the terms of the legally binding agreement between

citizens and the City on how their tax dollars were to be spent. Citizens thru action by City Council and only

citizens can decide how their tax dollars are to be spent. Every time corrupt city employees used funds for other

than their intended purpose they broke the law, violated grants, violated bond issues, violated ordinances/budgets

and violated the trust of our citizens to protect their tax dollars.

The pilfering of public funds violated City/State/Federal regulations, laws, etc. CIO Varn’s courtroom testimony

is a total fabrication concocted by ITSD and the City Attorney to hide decades of criminal activity. In 2007 he

testified when deposed that he didn’t even recognize the term “variable” ( “I don’t know what that is” , “if there is

an account for that, I just don’t know”, “I don’t have knowledge of that”) and knew little of City budget processes.

In 2009 under oath in court he falsely testified that in 2005 he became aware of the “variable”, investigated the

bill-back process, contacted Washington DC, found the variable usage legal, discovered that the City created the

variable to help adjust the budgets, pay for pop-up costs, pay for things that needed to be done, etc. yet FOIA

requests reveal that the City has no records of any “investigation” (deposition and trial testimony on record with

City Clerk). Each of twenty-eight (28) state/federal agencies or their governing agency contacted concerning

the federal/state grant fraud have submitted documentation declaring that they cannot locate any “indirect cost

rate proposal” or approvals of such proposals thus allowing the City of SA to use grant funds to pay expenses

commonly known as the “telephone variable”. The City of SA has submitted a similar declaration stating that they

cannot locate any such approval. Numerous grants covering a wide range of years awarded by 28 state/federal

agencies have been investigated and NO approval can be located. Hence, the costs associated with the “telephone

variable” are not allowed under state/federal grant rules/regulations/guidelines. The magnitude of costs not

associated with grant programs but billed to grants via the “variable” is not allowed and is illegal. Grant Fraud is a

crime and each violation of law is subject to criminal prosecution, fines, restitution and civil penalties.

HUD-IG Donahue submitted a fraudulent audit/investigative report to members of Congress and allowed the City

to hide decades of grant fraud. HUD- OIG agent Victoria Marquez told taxpayers that she didn’t care about their

many reports concerning the theft of tens of millions of dollars and helped the City close HUD case HL-10-0465

while concealing the decades of fraud/theft. Marquez interviewed Mr. Frank Wells, steered the conversation

in a direction that allowed her to incorrectly state that the reports were nothing but “hearsay” / “second-hand

information” and then refused to interview principal witnesses to the crimes. Months of certified mail , documents,

audits, emails, correspondence and an audio recording of a meeting with Agent Marquez and HUD auditor

Michael Hall prove that Marquez, Hall and their supervisors at HUD helped conceal the long-term grant fraud.

 The City Attorney’s Office illegally denied open records access to documents beginning in 2005 in an effort

to keep the crimes secret. The City’s Office of Municipal Integrity published false reports covering up the

violations of law. Fake audits were published and city witnesses testified in court that they knew one audit was

flawed but used it anyway. Rather than adhere to City mandates or follow state/federal grant rules/regulations

and immediately contact the grantors, perform an audit and refund the misspent funds the City began a crusade

to sweep all the criminal activity under the rug compounding the fraudulent activity with additional crimes of

aggravated perjury, obstruction, falsification of government documents, fraud upon the court, whistle blowing

violations, subornation of perjury, etc. Hundreds of thousands of dollars of public funds have been used by corrupt

persons to hide the crimes and ongoing illegal cover-up. City Attorney Michael Bernard and Police Chief McAnus

issued a criminal trespass warning barring entry into City Hall and Council meetings before issuing instructions

to City Council and staff to ignore reports from citizens. Councilperson Clamp was sent an email from Bernard

instructing him to not investigate reports of criminal activity, aggravated perjury and obstruction. In September

2010 City Attorney Bernard informed Civil Rights Attorney Edward Pina that he would lift the criminal trespass

warning and thus avoid a lawsuit but Bernard’s lie was exposed when the ban remained in place until April1, 2013

when US District Judge Xavier Rodriguez issued an injunction in a similar case of Cuellar V City of San Antonio.

Every citizen of every City and every State has been affected by the ongoing corruption and fraud. Corrupt City

of San Antonio employees pilfered public funds from every city department, city program, grant funded program,

etc. via fraudulent and illegal use of funds under the guise of a “telephone surcharge over the past three decades.

City, State and Federal taxes, fees, etc. collected from citizens across the State and our Nation were raided by

this unscrupulous scheme of fraud and arrogant disregard for published rules, ordinances and laws. Every citizen

of San Antonio was affected as funds were secretly and illegally pilfered from budgets of every City department

including Police, Fire, Public Works, Animal Care, Aviation, Convention Services, etc. Support and emergency

services such as 311 and E911 were drained of critical funding. Our Libraries and parks were denied funding via

the fraud. Critical “safety-net” programs ( Senior Services, Nutrition Programs, Healthy Start, WIC, Head Start,

Childcare, Homeless assistance, Youth Programs, the Carver Center, Job Training support, Financial Assistance,

Health Immunizations, HIV/AIDA/STD Services, Bio-terrorism/Emergency Preparedness, Food Inspections,

the Public Center for Environmental Health, Air Quality monitoring, the Lead Program, Project Worth, Steps to

a healthier SA, Dept. of Education funded initiatives, etc. ) were robbed of urgently needed funds designed to

support our young/ elderly/ ill/ less fortunate citizens or all citizens in time of emergency.

Participants (inside / outside of the City) in the fraud who benefited via the “padded” invoices, illegal contracts,

“no-bid” awards, fake statements, etc. must be investigated. Public funds must be reimbursed. Safeguards must be

instituted to halt further abuses. Persons who participated in the fraud and ensuing cover-up including those guilty

of committing aggravated perjury, subornation of perjury and obstructing justice must be identified and punished

as a deterrent to future crime.

City employees and witnesses who assisted in this illegal endeavor to hide criminal activity including theft, fraud,

falsification of documents, perjury, grant fraud, bond fraud, etc. inside the City’s IT Department cannot simply

skip the state as former CIO Richard Varn has done because they reside here in Texas. Most of them remain on

the City payroll (City Manager Sculley, mayor Julian Castro, Councilperson Bernal, Councilperson Cris Medina,

City Attorney Michael Bernard, IT Director Hugh Miller, City Auditor Kevin Barthold, City Attorney Deborah

Klein, IT Fiscal Manager Deborah Segovia, IT Manager Diana Gonzalez, IT manager Kelly Gray, IT employee

Aida Anguiano, IT employee Barbara Moore, etc.) and continue to have access to our money in spite of the fact

that they have conspired to hide violations of law and cover up the theft of our money. If City employees and law

enforcement officers are willing to lie under oath in court to hide decades of criminal activity one must wonder

what else they are willing to do. If the City can hide decades of fraud, theft, corruption, perjury, etc. from auditors,

banks, underwriters, etc. then what else have they been able to conceal?

The City is currently facing TWO federal Free-Speech lawsuits – 5:13-cv-00051 and 5:13-cv-00091 – because

corrupt city persons violated the Constitution, the Texas Open Meeting Act and other laws when they banned law-
abiding citizens from City Hall and public meetings in an effort to conceal the criminal conspiracy. City attorney

Bernard, Chief McManus, Mayor Castro, Councilperson Bernal, Councilperson Cris Medina and others have been

reported to the DOJ, the FBI, HUD-OIG and the Court for submitting known false statements in an effort to have

the Free-Speech lawsuit simply disappear and to conceal the underlying criminal conspiracy.

The criminal conspiracy being financed with tax dollars continues.