Nov 4, 2009 3:43 pm US/Mountain
Alamosa Housing Authority Head Admits Embezzling
DENVER (CBS4) ―
The former executive director of the Alamosa Housing Authority admitted on Wednesday she embezzled $1.3 million in a wide-ranging scheme over nine years and used the money to gamble.
The amount admitted by Patricia Martinez is more than 10 times larger than what she was accused of embezzling in a one-year period when she was charged on Oct. 21 in U.S. District Court.
Martinez, 62, faces a possible sentence of six years or more in federal prison when she is sentenced on Jan. 15.
She pleaded guilty to embezzling and to money laundering.
Martinez and the prosecutor, Assistant U.S. Attorney Thomas O'Rourke, stated in an 18-page plea agreement that she involved her son in her crimes without his knowledge. They stated her sister knowingly helped with the scheme.
Martinez and O'Rourke also stated a housing authority employee helped and kept part of the money.
The plea agreement also states Martinez met in an alley behind the shop of a businessman, who assisted in the crime, and gave him checks of embezzled money.
The defendant and the prosecutor stated that two other housing authority employees asked to become part of the embezzling and then participated in it.
None of the others involved are identified.
Only one other person, Presiliano Bonifacio Romero, also known as Pres B. Romero, has been charged so far. Romero, 44, of Conejos County, worked for the authority and is charged with embezzling $42,900.
He is scheduled to plead guilty Dec. 16 in a plea deal.
The prosecutor would not say if the investigation is ongoing or completed.
However, Martinez's plea deal indicates the probe is still under way. She is obligated by her plea agreement to testify "before one or more grand juries investigating" the case.
The agreement details how Martinez committed the crimes, including getting second signatures from housing authority board members on checks. The members "often signed blank checks, relying on Martinez's representations that the checks would be used for legitimate purposes."
She was head of the authority staff from 1989 to 2007, when she lost her job during the investigation. She admitted she embezzled from 1998 until 2007.
(© MMX CBS Television Stations, Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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