Judge JAG Accused of Abuse of Office in 2nd Audit

Update - Audit of Judge JAG’s Court finds “Fabricated adjustments and missing cash”

Judge Joe A. Gonzalez who has been a high profile figure in Corpus Christi championing education for delinquent youth, has come under scrutiny for some of the practices in his court that are alleged to be improper and illegal, yet he refuses to release a confidential agreement with Texas Commission on Judicial Conduct that reviewed the matter. One confidential source in the legal community says that agreement may have forced the judge to resign and thus led to his current run for County Commissioner.

The Judge, who is running to replace the retiring District 2's Betty Jean Longoria, requested an audit of his office upon leaving office, a normal transition responsibility. The audit by County Auditor Margaret Hayes office found what it termed “significant weaknesses” including: “untimely deposits, lack of daily closeouts, security password systems compromised, untimely receipting, inadequate documentation on adjustments, late posting of delinquent cxase collections and lack of separation of duties.” and lack of “proper reporting of hours and fabricated adjustments and missing cash.”

The audit indicates a clear lack of oversight with clerks being given the authority to adjust fines at will, account for and deposit money weekly instead of daily, allow missing money to be zeroed out on the books, security codes being passed around, endangering citizens of re-arrest even though they have posted bond, and making adjustments to fines without supporting documentation of condition completion. In addition to the outline of questionable accounting practices by court staff the Audit faults the Judge directly for allowing defendants to donate to charities of his choice instead of paying fines or completing community service in violation of county and state statutes. Defendants were given double credit on fines for their donations. Several candidates including Judge Gonzalez long term program assistant Joe Benavides are running to replace him as Justice of the Peace in Precinct 1, Place 1.

The surprise cash audit was performed on August 25, 2009 found ten discrepancies it recommended be corrected.

1. Fabricated Adjustments and Missing Cash - In reviewing July 2009 it was discovered a court clerk, using the ID and password of a prior employee assessed, received, and receipted two transactions totaling $405 and then voided them. A senior clerk found it when preparing the deposit and required the clerk to repost them using her own password and ID. The money which was mission had fabricated adjustments that reduced the case balances to zero. The clerk personally covered money from one of the cases.
2. Deposits were made weekly instead of daily as required by county and state statutes. Cash and checks for as much as $16,281 a week accumulated and were accessible by employees.
3. Daily Closeouts were not done; meaning fines accumulated during the day were not posted on a daily basis but allowed to accumulate until a deposit was made.
4. Security Password System Compromised. Staff shared IDs and passwords and used ones that were from past employees. Temporary employees were allowed to use other employee’s access information for up to two years.
5. On the day of the audit $5,827 was found that was not receipted including six cash bond checks for $3,600 from the Sheriff’s bond account. These were so old that they had to be reissued and 37 unreceipted checks for civil process. This risks citizens being rearrested after posting bond because of a lack of receipt processing.
6. Inadequate Documentation of Adjustments – Community service, time served and other adjustments to fines are supposed to be documented they were actually done. The audit found adjustments were given without proof, leaving the process open to fraud or corruption.
7. Late posting of delinquent collections. The County contracts with Linebarger law firm to collect delinquent accounts. Money collected is forwarded to the appropriate court or department where it is credited to the case file. The audit found that $6,937.54 collected on cases prior to January 2005 had been pending processing since December of 2007.
8. Lack of separation of duties. Every clerk had the authority to assess a case, adjust fines and fees, collect payment, receipt payments to a case, and request disbursements. In other words no one was checking on anyone else’s work to insure that deals outside the court process were not being made.
9. Improper reporting of temporary employee hours. Instead of paying overtime, temporary workers hours were used to offset hours below forty hours in violation of the Fair Labor Standards Act and county policy. Employee payroll records were kept by hand circumventing the County’s electronic timekeeping system.
10. Improper adjustments to Cases for Donations Made. The judge supplied a list of charities to which donations could be made in lieu of payment of court ordered fines. Defendants were credited for twice what they paid to the charity. Defendants were also allowed to substitute community service for fines without proving they were indigent. The County Attorney found that practice to be “a contravention of statutory authority.” And stated … “it is impermissible for a justice court to allow defendants to donate money to a nonprofit organization in exchange for fewer community service hours or in lieu of a fine or court cost.”

Audit Part II
The audit was extended to explore direction of money to non profits. That revealed a diversion of $20,890 to non profits, schools and community organizations and a loss of double that amount to the County in 2008. The organizations included Nueces County Senior Assoc., Catholic Charities, CASA, Corpus Christi Literacy Council, Salvation Army, Universal Little League, Holy Family Catholic Church, Lamar Elementary, CPS Rainbow Room, International Westside Little League, Trinity Adult Daycare, Rose Shaw Elementary, Roy Miller HS, Flour Bluff YOuth League, Holy Cross Church, Girl Scouts, Crockett Elementary, Sacred Heart Church, Broadmore Park Senior Center, Adult Learning Center (Joe Benavides workplace), Fanin Elementary and Nueces County Juvenile Probation department.

While most of these organizations received only a couple of hundred dollars,.the majority ($17,475) going to the top seven and over half ($11,080) going to just two organizations, the Nueces County Senior Citizens Organization (NCSCO) which funds JAG's Education is our Freedom organization and the Diocese of Corpus Christi Catholic Charities. Documents given to defendants on the subject indicate that checks sent to the NCSCO should be sent to the city owned senior center Att: Gabina Bazan who is reportedly JAG's aunt and c/o Joe Benavides who was JAG's right hand man in the operation and is running for his Justice of the Peace seat. One way to clear up questions about the use of this money which was not looked at by the audit would be for the judge to release copies of his IRS 990's which are the federal income tax statements filed by 501 (3) c NON PROFITS showing all income, officers and expenses.

The audit concluded while the diversion did not constitute fraud it was "...an abuse of office..." and "could subject the court to formal disciplinary action by the Commissioners Court and/or the Board of Judicial Conduct." The final report went on to say, "It goes without saying that based on the opinion of the county attorney and the general counsel, this practice needs to cease immediately. The comissioners court may discuss whether further action toward investigation should be considered."

In the meantime JAG is reportedly making campaign speeches saying he knows he was wrong and maybe broke the law, but he, "did it for the kids." Meanwhile, Joe Benavides who wants to succeed JAG continues to promote the program and says he, "will continue the Judge's good work."

The Caller Times printed an article edited to emphasize the "no fraud" part of the report and in general whitewash the whole affair. This adds to the intrigue of the case in that Republican County Judge Loyd Neal did not make the original audit public. WtP obtained it through our own sources. One source in the courthouse who wished to remain anonymous out of fear of retaliation stated, "They planned on waiting until after the primaries hoping JAG would win and then use it on him in the general election." Watch for more on this story.