Complaint filed for misuse of taxpayer funds
By Kassia Micek
In a complaint filed July 24, Woodlands resident Adrian Heath claims the district illegally paid fees to Education for Tomorrow Alliance and requested the district “cease and desist granting money to EfTA,” follow sanctions under Texas law and demote CISD Superintendent Don Stockton and reduce his salary, according to the complaint.
CISD is charged $1.25 per student for a total of $60,652 paid on Sept. 11, 2008, according to documents Heath posted online from CISD.
Stockton and CISD board members John Husbands and Ann Snyder sit on the EfTA 2008-09 board.
Heath also alleges The Woodlands Township approved $40,000 for EfTA programs illegally, citing Texas Penal Code Chapter 39.02 and Texas Constitution Article III, Section 52(a).
Texas Penal Code Chapter 39.02 states “a public servant commits an offense if, with intent to obtain a benefit or with intent to harm or defraud another, he intentionally or knowingly … misuses government property, services, personnel, or any other thing of value belonging to the government that has come into the public servant’s custody or possession by virtue of the public servant’s office or employment.”
Texas Constitution Article III, Section 52(a), states “any bonds or other obligations of a county, municipality, or other political subdivision of the state that are issued for the purpose of making loans or grants in connection with a program authorized by the legislature under this section and that are payable from ad valorem taxes must be approved by a vote of the majority of the registered voters of the county, municipality, or political subdivision voting on the issue. ...”
Heath originally filed a complaint with the Montgomery County District Attorney’s Office April 20, citing the CISD and The Woodlands Township for “illegal use of public funds for private purposes.”
He requested that the DA’s office apply the laws of Texas, intervene on behalf of the public and order the EfTA to repay the funds to the district and township.
“We are taxpayers, and people need to take care of our money and spend it on appropriate things,” Heath said. “Using taxpayer funds on charitable donations is wrong. They cannot misuse our funds. … They need to cease and desist from using our funds for charitable donations. That’s something for us to spend our money on. That’s our decision, thank you very much.”
After he said he received no response from the DA, he filed a complaint against CISD.
First Assistant District Attorney Phil Grant declined to comment, saying, “It is our policy not to comment on complaints that are filed with our office.”
CISD and The Woodlands Township do not find merit in Heath’s complaint.
“The Township is authorized, among other matters, to contract with any entity to provide special or supplemental services for economic development and educational improvements, enhancements and services within or adjacent to the Township’s boundaries,” according to an e-mail to The Courier from Nick Wolda, The Woodlands Township vice president of Marketing and Public Affairs. “The Board of Directors of the Township determined that the Alliance’s GOALS Program is an appropriate program for promoting full employment with and adjacent to the Township by allowing area businesses, students, parents and their schools to participate in and enhance the educational opportunities of young people.”
The Woodlands Township has not seen the complaint, Wolda said.
In response to Heath’s complaint, in which he pointed out six concerns against the district, board members and the superintendent, the CISD retained the services of an independent hearing officer (Richard Hightower) to hear Heath’s complaint and make a recommendation to the board regarding a resolution/disposition, according to a letter from CISD to Heath dated July 30.
Hightower is expected to contact Heath to schedule a hearing conference. Heath said Tuesday morning he had not heard from Hightower.
EfTA, a 501(c)(3) nonprofit organization, serves both public and private schools in Montgomery County for a fee based on school enrollment figures, according to www.efta-us.org. Educational partners include the Conroe, Magnolia and Montgomery school districts, Christ Community School, The John Cooper School, Rubicon Academy, Covenant Christian School, Sacred Heart Catholic School, St. Anthony of Padua Catholic School, The Woodlands Preparatory School and The Woodlands Christian Academy.
“We provide this service to the school district on a fee basis,” EfTA Executive Director David Norton said.
The fee charged to schools is a quarter of the cost to run the program, Norton said. The remaining funds come from the business community.
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Reader Comments
countycitizen wrote on Aug 4, 2009 10:41 PM:
Gene Strong wrote on Aug 5, 2009 1:57 AM:
Start in the White House and finish up in Conroe... "
billofrights wrote on Aug 5, 2009 8:40 AM:
The Penal Code section Mr. Heath cites requires that the the public official intend to obtain a benefit (and that has been interpreted to mean personal benefit) or intend to harm or defraud another. If Dr. Stockton and the two board members don't get paid for serving on EfTA's board, then I don't see how they are getting a personal benefit from the contract.
I do, however, think that it is wrong for CISD money to be paid out to a third-party (whether a for-profit or non-profit) that is even partially governed by a CISD administrator or board member. Too much opportunity for things to go wrong and it just looks bad. "
mdonn wrote on Aug 5, 2009 9:11 AM:
Conroe ISD Education Foundation boasts a winning lineup of community supporters, including its current Board of Directors.
President: Nelda Luce Blair - Ms. Blair is an attorney with The Blair Law Firm, P.C., and a 1976 graduate of Conroe ISD.
Secretary/Treasurer: Tom Cox - Mr. Cox is a homebuilder in The Woodlands, and a long-time supporter of Conroe ISD and its continued growth.
Board members:
Jim Blair - Mr. Blair is a retired attorney, and Senior Advisor with Linebarger Goggan Blair & Sampson, L.L.P.
Doris M. Golemon - Ms. Golemon is the Executive Director of the Montgomery County Food Bank.
James Holcomb - Mr. Holcomb is a principal with Holcomb Schubert Investment, a real estate development company.
Scott Kidd - Mr. Kidd is Corporate Counsel and Director of Community Development for The Arrow Project, and is a 1981 graduate of Conroe ISD.
Stephen McClain - Mr. McClain is an attorney with McClain & Harrell in Conroe, and is a 1965 graduate of Conroe ISD.
Alan “Barb” Sadler - Judge Sadler is in his 5th term as County Judge of Montgomery County, and is a graduate of Conroe ISD.
Kenneth Speight - Mr. Speight is an independent insurance agent, and current Chairman of The South Montgomery County/Woodlands Chamber of Commerce.
Ever notice all the same people are on the Non-Profits? Think about this.
44 arrested in N.J. corruption probe
Suspects include rabbis, mayors;
It was found or alledged that they funneled, laundered millions through non profits and charities.
We have more non-profits than we have trees and all the same people are on all of them as board members.
Cathy Swaby - Ms. Swaby is an adjunct faculty member at North Harris College, Department of Biology.
Amanda Devlin Trapp - Ms. Trapp is an attorney with Stibbs & Company, P.C., and a 1976 graduate of Conroe ISD. "
countycitizen wrote on Aug 5, 2009 9:33 AM:
The irony was that they had a bond conversion on the agenda and the Bond salesman from RBC was their to coo over his 20 year experience and ALL the money he is saving CISD. The funniest part was at the end of his presentation, the board asked few probing question and then a bunch of leading question and he sat down when one Board member had a very inmprtant question. He ran back to the podium and was asked this - What will the bond conversion save the district? Answer, - er um - nothing! he had just got thru telling the board about his fees and how they were rolled into the new bond! Thanks to Mr. Irons for the question.
The bond salesman from the Royal Bank of Canada ( Thats the CISD anthem now "Owe Canada" not Oh! Canada) told the board about all the low rates , fixed and adjustable he had got them but avoided discussion of deferred interest and deferred principle which is costing us taxpayers tens of millions more than we need to pay.
The bonds are primarily structured to minimize impact on tax rate, total cost is ignored.
Chris Irish asked the Bond salesman who denied refinanced bond were set at new terms.
If that is so - how do we explain the refunding portion of new issues?
The board does not seem sufficiently concerned.
The board ( husbands in particular) made a point of asking the bond salesman self serving questions, Only Mr Irons asked the single important question above.
data from http://www.brb.state.tx.us/
Issue Name New-Money Portion of Par Refunding Portion of Par Issue Par Amount
Unl Tax Schoolhouse Bonds Ser 2000 12,970,000 12,970,000 2/15/2001
Unl Tax Ref & Schoolhouse Bonds Ser 2001A 31,000,000 11,585,000 42,585,000 2/15/2002
Unl Tax Schoolhouse Adj Rate Bonds Ser 2001B 33,000,000 33,000,000 2/15/2002
Unl Tax Schoolhouse and Ref Bonds Ser 2003 50,000,000 1,244,000 51,244,000 2/15/2004
Unl Tax Schoolhouse & Ref Bonds Ser 2003A 30,000,000 65,445,000 95,445,000 2/15/2004
Unl Tax Schoolhouse Bonds Ser 2004A 38,940,000 38,940,000 2/15/2005
Unl Tax Adj Rate Current Interest & CAB Ref Bonds Ser 2004B 43,862,646 43,862,646 2/15/2005
Unl Tax Schoolhouse Bond Ser 2005B 25,000,000 25,000,000 2/15/2006
Unl Tax Ref Bonds Ser 2005A 70,485,000 70,485,000 8/15/2005
Unl Tax Schoolhouse Bonds Ser 2005C 141,400,000 141,400,000 2/15/2006
Unl Tax School Bldg & Ref Bonds Ser 2006 88,590,000 36,800,000 125,390,000 2/15/2007
Unl Tax School Bldg Bonds Ser 2008 84,885,000 84,885,000 2/15/2009 "
mdonn wrote on Aug 5, 2009 9:45 AM:
The whole list is to long to print.
The key is to Google and see who the directors are, then go to:
http://www.montgomerycountymonitor.com/
Look at the check registers for the Township and notice the amount of money, tax payer money paid to these non profits. In one year almost a million dollars.
Google the vendors and find out who owns them.
Look at the board members financials and see how they collect money from them. Notice all the non-profits invest with Raymond James which is Senator Tommy Williams. Notice how they all bank with Woodforest. Woodforest is Tommy Williams, Michael Richmond, Robert Marling, former big wigs The Woodlands Developer. Then go look at the SEC documents for Woodforest and search Sadler. Look at the disclosure for Nelda Blair and Tommy Williams and see what they own.
Look at who does the legal work and check to see the board members financial connection through office share or law firm. The Statute fits, we just need the DA to act.
The picture pops out at you.
44 arrested in N.J. corruption probe
Suspects include rabbis, mayors;
It was found or alledged that they funneled, laundered millions through non profits and charities.
The Woodlands Commercial Owners Association, Inc.
All the Woodlands associations are non-profits.
The Woodlands Convention & Visitors Bureau
Founded in 1990, The Cynthia Woods Mitchell Pavilion is part of The Center for the Performing Arts at The Woodlands, a nonprofit 501 (c)(3)
Education For Tomorrow Alliance (EFTA)
Friends of Conroe, Inc.
Heart of Montgomery County
South Montgomery County Woodlands Chamber of Commerce
Interfaith of The Woodlands
Interfaith of The Woodlands Counseling Center
International Association of Administrative Professionals - Woodlands Area Chapter
Montgomery County Hispanic Chamber
Montgomery County Performing Arts Society
Entertaiment and Education for The Woodlands and Montgomery County
Montgomery County United Way
Serving The Woodlands Area
Music on the Plaza at Portofino
South Montgomery County Community Center
The Gathering Place (A Program of Interfaith Care Partners)
The Woodlands Chapter of National Charity League "
mdonn wrote on Aug 5, 2009 10:00 AM:
Check Nelda Blairs Financial:
Look at which bonds she owns. Look at who underwrites those Bonds. Hint:
CISD, Raymond James.
Occupation: President, Woodforest Financial Services
Janet Anna and Tommy Williams
Registered Principals, RJFS
RJFS is Raymond James
Remember Nelda Blair owns an interest in Woodforest and the Township invest with Raymond James, in fact all the non profits do, Raymond James handles her bonds and Stocks, and all the non profits invest with Raymond James, they have their accounts with WF and Vivki Richmond from the TS handles the Taxpayers money and her husband is WF.
It is not rocket science. Why do you think we don't incorporate?
They build and build, with bond money, they buy the bonds, Tommy underwrites them and you pay the then as you pay back the bonds with your taxes.
As we get all their financials we find the same scenerio with all of them.
http://www.montgomerycountymonitor.com/modules/happy_search/index.php?action=init&andor=AND&query=nelda+blair "
panthers010 wrote on Aug 5, 2009 12:46 PM:
L Concern wrote on Aug 5, 2009 1:23 PM:
great back ground work, makes me wonder if any one realizes there are wolves and foxes running the hen house.
great work once again mdonn, seriously this is not rocket science, if the DA doesn’t move on this we all know the real deal, one thing is for sure, Kharma gets you, one way or another they all will fall, they all will fall hard and we will be here laughing our azzs off.
mdonn for county judge. "
mdonn wrote on Aug 5, 2009 2:53 PM:
The document below is a formal complaint send to the Montgomery County District Attorney by Adrian Heath.
The complaint claims The Woodlands Township illegally provided public funds to a private entity.
This complaint also claims Conroe Independent School District (CISD) engaged in the same illegal activity.
ComplaintTownship-2.pdf "
AppreciativeTeacher wrote on Aug 5, 2009 11:27 PM:
Thunder2 wrote on Aug 6, 2009 5:45 AM:
.
Would we all not have lower taxes and a higher quality of like if these shenanigans did not take place? Easy to answer......... It's time to face the music, it's time to start cleaning up and out the mess, tough decisions need to be made, and the guilty will not go quietly. "


onedayatatime wrote on Aug 4, 2009 10:21 PM: