Superseding Indictment Details How Rhonda Skillern Jones and Her Cohorts Stole from HISD

Case 4:21-cr-00588 Document 42 Filed on 04/07/22 in TXSD Page 1 of 21

United States Courts Southern District of Texas FILED

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION UNITED STATES OF AMERICA

s

V.

$

April 07, 2022 Nathan Ochsner, Clerk of Court

$

czuMINAL NO. H-21-CR-588

$

ANTHONY HUTCHISON and BRIAN BUSBY,

$

$ $

Defendants.

$

SUPERSEDING INDICTMENT THE GRAND ruRY CHARGES:

Introduction At all times material to this Indictment:

1.

The Houston Independent School District ("HISD") was a public entity providing

prekindergarten through high school education

for students in Houston, Texas. HISD was

govemed by a Board of Education consisting of nine elected Trustees. HISD received directly,

and indirectly through the Texas Education Agency, approximately $300 million per year in federal program funds and grants from the United States Department of Education and other federal agencies. The administration of HISD included a Chief Operating Officer who managed

various departments within HISD, including the Construction Services group and the Facilities, Maintenance, and Operations group.

2.

ANTHONY HUTCHISON ("HUTCHISON"), operating as Southwest Wholesale

LLC (Southwest Wholesale) and Just Partners Construction LLC (Just Construction), obtained contracts and purchase orders from HISD

to

provide grounds maintenance, landscaping,

construction, and repair services to HISD schools and other properties. Operating as AL Custom Homes LLC, HUTCHISON also engaged in home remodeling.

&H

Case 4:21-cr-00588 Document 42 Filed on 04/07/22 in TXSD Page 2 of 21

3.

BRIAN BUSBY ("BUSBY") was the HISD Chief Operating Officer (COO). As

part of his responsibilities, he oversaw the Construction Services group and the Facilities, Maintenance, and Operations group.

4.

Derrick Sanders ("Sanders"), who has been charged separately, was the HISD

Officer of Construction Services.

5.

Alfred Hoskins ("Hoskins"), who has been charged separately, was at various times

the HISD General Manager Manager

of Maintenance

of

Facilities, Maintenance, and Operations, the HISD General

Services and Repairs, and the HISD Senior Manager

of Facilities

Maintenance.

6.

Gerron Hall ("Hall"), who has been charged separately, was the HISD Area

Manager for Maintenance (South).

7.

Luis Tovar ("Tovar"), who has been charged separately, was the HISD Area

Manager for Maintenance (North).

8.

Rhonda Skillem-Jones ("Skillem-Jones"), who has been charged separately, was

elected to the HISD Board of Education as a Trustee and served two terms, from 2012 to 2019.

She was the President of the Board

9.

in20l5

and 2018.

Company A was a business in Cleveland, Texas, that engaged in invoice factoring

and check cashing.

10.

Businessman A owned and operated Company A.

COUNT ONE - ConsPiracY)

(18 U.S.C. $ 371

11.

Beginning in or

around2}ll

and continuing through in or around2020, in the

Southem District of Texas and elsewhere, the Defendants,

2

Case 4:21-cr-00588 Document 42 Filed on 04/07/22 in TXSD Page 3 of 21

ANTHONY HUTCHISON and BRIAN BUSBY, did knowingly combine, conspire, confederate, and agree with each other, with Sanders, Hoskins,

Hall, Tovar, Skillern-Jones, and with others known and unknown to the Grand Jury, to commit offenses against the United States, namely:

a.

to comrptly give, offer, and agree to give anything of value to any person, with intent to influence and reward an agent of an organization and local government that receives more than $10,000 in federal assistance in any one-year period, in connection with any

business, transaction, and series

of

transactions

of

such organrzatron and local

government involving anything of value of $5,000 or more, in violation of Title 18,

United States Code, Section 666(a)(2);

b.

being an agent of an organization and local government that receives, in any one-year

period, benefits in excess of $10,000 in federal assistance, did corruptly solicit and demand for the benefit of any person, and accept and agree to accept, anything of value

from any person, intending to be influenced and rewarded in connection with any business, transaction, and series

of

transactions

of

such organization and local

government involving anything of value of $5,000 or more, in violation of Title 18,

United States Code, Section 666(aX1)(B); and being an agent of an organization and local government that receives, in any one-year period, benefits in excess of $10,000 in federal assistance, didembezzle, steal, obtain by fraud, knowingly convert without authority, and intentionally misapply property that is valued at $5,000 or more and is owned by and is under the care, custody, and control

of, such organization and local government, in violation of Title 18, United Code, Section 666(aXlXA).

States

Case 4:21-cr-00588 Document 42 Filed on 04/07/22 in TXSD Page 4 of 21

Manner and Means of the Conspiracy It was part of the conspiracy that:

12.

Beginning in 2011, HUTCHISON, operating as Southwest Wholesale, entered into

contracts with HISD to provide grounds maintenance, landscaping, and irrigation services to numerous HISD properties over multiple years. Under these contracts, he provided mowing services to HISD, and he supplied HISD schools with a type of mulch known as "Kiddie Cushion,"

which is used on playgrounds.

13.

Over the span of the conspiracy, HUTCHISON systematically overbilled HISD for

mowing services and for mulch, causing millions of dollars in loss to the school district. He

inflated his mowing bills to HISD by invoicing for more cuts than he would instruct his subcontractors to perform, and he overbilled for mulch by invoicing for falsely inflated costs.

HUTCHISON paid a portion of his fraudulently boosted profits to BUSBY in the form of cash payments and free home remodeling.

14.

In addition to obtaining the long-term grounds maintenance contracts with

the

school district, HUTCHISON also obtained purchase orders for specific construction, repair, landscaping, and maintenance jobs at particular HISD schools and other properties. HUTCHISON obtained these jobs by paying cash bribes, mostly in the form of kickbacks, to HISD personnel

who assisted him in obtaining or retaining business with HISD, including BUSBY,

Sanders,

Hoskins, Hall, Tovar, and Skillern-Jones.

15.

In2077, HUTCHISON maintained a bribe ledger in which he tracked the bribe

payments he made in exchange for assistance with securing particular purchase orders. In the

ledger, HUTCHISON typically listed the HISD schools where his companies Southwest Wholesale or Just Construction did construction, repair, grounds maintenance, or landscaping

work, the type of work, the amount of the invoice paid by HISD for the work, the amount of the

Case 4:21-cr-00588 Document 42 Filed on 04/07/22 in TXSD Page 5 of 21

bribe that he paid, the identity of the bribe recipient (identified by initials or first name), the date

the bribe was paid, and, at times, the location at which the bribe was paid, such as at local restaurants or schools or while on trips to Las Vegas with the bribe recipients.

16. In

retum

HUTCHISON HISD

for bribe

jobs.

payments from HUTCHISON, BUSBY helped award

BUSBY also took steps

to expedite

payment

by HISD to

HUTCHISON, in part so that BUSBY could receive his bribe sooner. Sanders, Hoskins, Hall, and Tovar helped award, or refrained from interfering in the award

ol HISD jobs to HUTCHISON.

17. In return for bribe payments from HUTCHISON,

Skillem-Jones caused to be

placed on a 2017 HISD Board agenda, and voted to approve, an expenditure of funds for school landscaping and construction projects that were awarded to HUTCHISON. BUSBY facilitated the

bribery relationship between HUTCHISON and Skillern-Jones, and BUSBY personally delivered HUTCHI S ON' s bribe payments to Skillern-Jones.

18.

HUTCHISON frequently obtained the cash that he used to pay bribes to HISD

officials by writing company checks to vendors, who cashed the checks and provided the cash to

HUTCHISON. HUTCHISON often falsely stated on the memo line of the checks that they were in payment for work that had been performed on HISD properties, and he caused the checks to be improperly deducted on corporate tax returns as business expenses.

19.

HUTCHISON also caused his gambling losses to be improperly deducted on

corporate tax returns as alleged business expenses incurred by his companies on HISD construction

or landscaping projects. HUTCHISON wrote Southwest Wholesale and Just Construction checks payable to Company A for work that Company A allegedly, but had not actually, performed for

HUTCHISON's companies at HISD schools. Businessman A caused the checks to be deposited

into a Company A account and returned the funds as cash, which was then used to

5

pay

Case 4:21-cr-00588 Document 42 Filed on 04/07/22 in TXSD Page 6 of 21

HUTCHISON's gambling debts. To attempt to substantiate the payments to Company

A

as

business expenses, HUTCHISON caused Businessman A to provide him with fraudulent Company

A invoices for the work that company A had allegedly performed for HUTCHISON's companies at HISD schools. HUTCHISON caused the checks to Company

A to be improperly deducted on

corporate tax returns as business expenses.

20.

BUSBY concealed his involvement in the bribery scheme by making cash deposits

of bribe proceeds into multiple bank accounts and by filing false tax returns that failed to declare the cash bribes and other benefits as income.

21.

Once BUSBY and HUTCHISON learned of the federal criminal investigation, they

tried to interfere in the investigation. BUSBY encouraged Hoskins to lie about BUSBY's role in awarding jobs to HUTCHISON. HUTCHISON told Hoskins to falsely claim to the FBI that the payments reflected in HUTCHISON's ledger were for gambling rather than for bribery.

Overt Acts of the Conspiracv In furtherance of the conspiracy and to achieve the objects thereof, at least one of the coconspirators committed or caused to be committed, in the Southern District of Texas and elsewhere, at least one of the following overt acts, among others:

22.

On or about June 30, 2017, HUTCHISON, operating as Southwest Wholesale,

signed an annual Grounds Services Agreement with HISD.

23.

In or about 2014 and2015, HUTCHISON, individually or through his business

entities, paid approximately $73,000 in total to various contractors for the remodeling

of

BUSBY's home in Houston.

24.

On or about April 17, 2016, BUSBY filed a 2015 Form 1040 tax retum that

underreported his income.

6

Case 4:21-cr-00588 Document 42 Filed on 04/07/22 in TXSD Page 7 of 21

25.

In or about 2017, BUSBY delivered approximately $12,000 from HUTCHISON

to Skillem-Jones related to projects at Holland Middle School and Pleasantville Elementary School.

26.

On or about April 8, 2017, BUSBY filed a 2016 Form 1040 tax retum that

underreported his income.

27

.

On or about September 16,2017, HUTCHISON paid BUSBY approximately

$38,000 in Las Vegas, Nevada, related to projects at Elrod Elementary School, T. H. Rogers School, and The Rice School.

28.

On or about September 16,2017, HUTCHISON paid Sanders approximately

S12,000 in Las Vegas, Nevada, related to projects at Garden Oaks Montessori School.

29.

On or about October 4,2017, HUTCHISON paid BUSBY approximately $10,000

at Chatham Elementary School related to projects at Kashmere Gardens Elementary School,

Ashford Elementary School, and Holland Middle School.

30.

On or about October 24,2017, HUTCHISON paid Hoskins approximately

$10,000 at McCarty Street related to a project of providing sandbags to HISD.

31.

On or about October 24,2017, HUTCHISON paid Sanders approximately

$10,000 at a barbeque restaurant related to a project at Codwell Elementary School.

32.

On or about October 25,2017, HUTCHSION paid Hoskins approximately

$25,000 at Cullen Blvd. related to projects at Fonwood Elementary School.

33.

On or about October 25,2017, HUTCHISON paid BUSBY approximately

$21,000 at Cedar Street related to projects at Marshall Middle School, Ashford Elementary School, Jane Long Academy, Piney Point Elementary School, and Atherton Elementary School.

7

Case 4:21-cr-00588 Document 42 Filed on 04/07/22 in TXSD Page 8 of 21

34.

On or about November 4,2017, HUTCHISON paid BUSBY approximately

$20,250 at a seafood restaurant related to projects at Browning Elementary School, North Forest

High School, Barbara Jordan High School, and Mark Twain Elementary School.

35.

On or about November 7,2017, HUTCHISON paid Hall approximately $10,000

at Mandarin Immersion Magnet School related to projects at Bonner Elementary School,

Franklin Elementary School, and De Zavala Elementary School.

36.

On or about November 16,2017, HUTCHISON paid BUSBY approximately

$22,500 at a restaurant related to projects at Booker T. Washington High School, Francis Scott

Key Middle School, Durham Elementary School, and Pleasantville Elementary School.

37.

On or about November 16,2017, HUTCHISON paid Hoskins approximately

$20,000 at Lamar High School related to projects at the HISD McCarty Building, Fonwood Elementary School, Terrell Middle School, and Chatham Elementary School.

38.

On or about November 16,2017, HUTCHISON paid Sanders approximately

$20,000 at a restaurant related to projects at Kashmere Gardens Elementary School and Kashmere High School.

39.

In or about 2011, HUTCHISON paid Sanders approximately $15,000 related to

projects at Waltrip High School.

40.

On or about November 21,2017, HUTCHSION paid Hall approximately $7,500

at The Rice School related to projects atCage Elementary School, Poe Elementary School, and

Davila Elementary School.

4I.

On or about December 12,2017, HUTCHISON paid Hall approximately $20,000

at 4241Purdue Street related to projects at J. P. Cornelius Elementary School and Las Americas Newcomer School.

8

Case 4:21-cr-00588 Document 42 Filed on 04/07/22 in TXSD Page 9 of 21

42.

On or about December 13,2017, HUTCHISON paid BUSBY approximately

$50,000 at a gas station related to projects at approximately forty different HISD schools.

43.

In or about 2017, HUTCHISON made a first payment to Tovar of approximately

$10,000 related to projects at HISD schools.

44.

In or about 2017, HUTCHISON made a second payment to Tovar

of

approximately $10,000 related to projects at HISD schools.

45.

On or about January 11,2078, HUTCHSION paid Hall approximately $20,000 at

Lamar High School related to projects at Gross Elementary School and The Rice School.

46.

On or about April 15, 2018, BUSBY filed a 2017 Form1040 tax retum that

underreported his income.

47.

On or about October 16,2018, HUTCHISON filed a2017 Form 1720 tax retum

for Southwest Wholesale that overstated Cost of Goods Sold.

48.

In or about 2019, HUTCHISON, individually or through his business entities,

paid approximately $293,000 in total to various contractors for the remodeling of BUSBY's home in Houston.

49.

On or about May 29,2019, BUSBY filed a 2018 Form 1040 tax return that

underreported his income.

50.

On or about September 20,2019, HUTCHISON filed a2018 Form I120 tax

return for Southwest Wholesale that overstated Cost of Goods Sold.

51.

On or about October 75,2020, BUSBY filed a 2019 Form 1040 tax return that

underreported his income.

All in violation of Title

18, United States Code, Section 371.

9

Case 4:21-cr-00588 Document 42 Filed on 04/07/22 in TXSD Page 10 of 21

COUNTS TWO - SEVEN (Bribery Concerning Programs Receiving Federal Funds, 18 U.S.C. S$ 666 and2)

52.

The Grand Jury adopts, realleges, and incorporates herein the Introduction section

of the Indictment and paragraphs 10 through 16 of the Manner and Means section of Count One of the Indictment as if set out fully herein.

53.

On or about the dates listed below, in the Southern District of Texas and elsewhere,

the Defendant,

ANTHONY HUTCHISON, did comrptly give, offer, and agree to give anything of value to the persons listed below, with intent to influence and reward an agent of an organization or local govemment that receives more

than $10,000 in federal assistance in any one-year period, in connection with any business, transaction,

ffid

series

of transactions of such organization and local government involving

anything of value of $5,000 or more, as listed below: Count

Approx.

Date of Payment

Payment Recipient

Related to Construction, Repair, or Landscaping Project(s) at the Listed School(s) or Building

Approx.

Amount of Payment

2

r012412017

Sanders

Codwell Elementary School

$10,000

J

a

r012512017

BRIAN BUSBY

Marshall Middle School, Ashford Elementary School, Jane Long Academy, Piney Point Elementary School, Atherton Elementary School

$21,000

4

r1lt6120rl

Hoskins

HISD McCarty

$20,000

Building,

Fonwood Elementary School, Terrell Middle School, Chatham Elementary School 5

Utll20t8

Hal1

Gross Elementary School, The

$20,000

Rice School 6

2017

Tovar

Various HISD Schools

$

10,000

7

20t7

Skillern-Jones

Holland Middle

$

12,000

School, Pleasantville Elementary School

In violation of Title 18, United States Code, Sections 666(a)(2) and2.

10

Case 4:21-cr-00588 Document 42 Filed on 04/07/22 in TXSD Page 11 of 21

COUNTS EIGHT - THIRTEEN (Bribery Concerning Programs Receiving Federal Funds, 18 U.S.C. SS 666 and 2)

54.

The Grand Jury adopts, realleges, and incorporates herein the Introduction section

of the Indictment and paragraphs 10 through l6 of the Manner and Means section of Count One of the Indictment as if set out fully herein.

55.

On or about the dates listed below, in the Southern District of Texas and elsewhere

within the jurisdiction of the Court, the Defendant,

BRIAN BUSBY, being an agent of HISD, an organization and local govemment that receives, in any one-year period, benefits in excess of

$

10,000 in federal assistance, did comrptly solicit and demand for the

benefit of any person, and accept and agree to accept, anything of value from ANTHONY

HUTCHISON, intending to be influenced and rewarded transaction, and series

in connection with

any business,

of transactions of such organization and local govemment involving

anything of value of $5,000 or more, as listed below: Count

Approx. Date of Related to Construction, Repair, or Landscaping Project(s) at the Listed Payment School(s)

8

91t612011

Elrod Elementary School, T. H. Rogers School, The fuce School

$38,000

9

t0l4l20t7

Kashmere Gardens Elementary School, Ashford Elementary School, Holland Middle School

$

10

r012512017

Marshall Middle School, Ashford Elementary School, Jane Long Academy, Piney Point Elementary School, Atherton Elementary School

$21,000

11

tU412017

Browning Elementary School, North Forest High School, Barbara Jordan High School, Mark Twain Elementary School

920,250

11

Approx.

Amount of Payment

10,000

Case 4:21-cr-00588 Document 42 Filed on 04/07/22 in TXSD Page 12 of 21

l2

r1lt6l20t7

Booker T. Washington High School, Francis Scott Key Middle School, Durham Elementary School, Pleasantville Elementary School

$22,500

l3

t2lt3l20t7

Approximately forty HISD Schools

$50,000

In violation of Title 18, United States Code, Sections 666(aX1XB) and2.

COUNTS FOURTEEN _ TWENTY-FOUR (Wire Fraud, 18 U.S.C. $$ 1343 and 2)

A.

INTRODUCTION

56.

The Grand Jury adopts, realleges, and incorporates herein the Introduction section

of the Indictment and paragraphs 10 and 11 of the Manner and Means section of Count One of the Indictment as if set out fully herein.

B.

THE SCHEME AND ARTIFICE

57.

From in or about 2077, and continuing until in or about2020, in the Southern

District of Texas and elsewhere, the defendant,

ANTHONY HUTCHISON, knowingly devised and intended to devise a scheme and artifice to defraud HISD, and to obtain money by means of materially false and fraudulent pretenses, representations and promises, in that he submitted false proposals and false invoices to HISD for providing mowing services and

mulch in order to overbill HISD for materials and services.

C.

MANNER AND MEANS OF THE SCHEME

58.

Starting

in

2011, HUTCHISON, operating as Southwest Wholesale, obtained a

series of contracts to provide grounds maintenance, landscaping, and irrigation services to HISD

(the..grounds maintenance contracts") over multiple years, until HISD canceled the hnal contract

in2020. pursuant to these contracts, HUTCHISON provided mowing services at HISD properties,

t2

Case 4:21-cr-00588 Document 42 Filed on 04/07/22 in TXSD Page 13 of 21

as

"Kiddie Cushion," which is used on

HUTCHISON emailed mowing proposals

to HISD that claimed Southwest

and he supplied HISD schools

with a type of mulch known

playgrounds.

59.

Wholesale would cut each property four times per month during the growing season (March

-

September) and set pricing accordingly. Consistent with the proposals, HUTCHISON emailed invoices to HISD that billed HISD for four cuts per month during the growing season, even though

two, or at most three, cuts had actually been performed each month. HISD paid the falsely inflated invoices.

60.

In contrast to his communications with HISD, HUTCHISON provided mowing

schedules to his subcontractors that instructed them to cut each properly twice per month during

the growing season.

61.

Pursuant

to the

grounds maintenance contracts, HUTCHISON, operating

as

Southwest Wholesale, also supplied HISD with Kiddie Cushion mulch. The grounds maintenance contracts provided for a cost-plus-twenty-percent markup fee structure for supplying landscaping materials such as mulch.

62.

HUTCHISON overbilled HISD for supplying mulch by falsely inflating the cost he

incurred in procuring the mulch from his supplier and then multiplying that inflated cost figure by the twenty-percent markup rate. Typically, he falsely claimed to HISD that he had purchased more

mulch than was actually delivered to HISD and that he had paid a higher price per volume than his

supplier had charged. HUTCHISON also falsely billed HISD for inflated transportation and delivery costs for the mulch.

13

Case 4:21-cr-00588 Document 42 Filed on 04/07/22 in TXSD Page 14 of 21

63.

HUTCHISON emailed proposals to HISD to supply the mulch and emailed

invoices to be paid for the mulch, both of which contained the inflated cost figures. HISD approved the proposals and paid the falsely inflated invoices.

D.

EXECUTION OF THE SCHEME

64.

On or about the dates set forth below, in the Houston Division of the Southern

District of Texas and elsewhere, the Defendant, ANTHONY HUTCHISON, for the purpose of executing the aforementioned scheme and artifice to defraud and to obtain money by material false and fraudulent representations, pretenses, and promises, did knowingly cause to be transmitted by means of wire communication in interstate commerce, the emails listed below:

Count

Approx. Date

Wire Communication

Approx.

Amount(s)

14

61712017

Accountsreceivable@s wat424l.com to p adams4 @houstoni sd. org with attachments: Southwest Wholesale June 2017 Monthly Maintenance Invoices, Main Bldg., North & South Prop, Old Grimes

$247,923.59

15

81912017

Hutchison@ swat424 l. com to padams4 @houstonisd. org with attachments: Southwest Wholesale Monthly Mowing Proposals Aug.2017 - Jan. 2018 and Feb. - June 2018

$815,059.70 91,128,544.20

t6

6t26t2018

Accountsreceivable@s w at424l.com to padams4@houstonisd. org with attachment: Southwest Wholesale June 2018 Monthly

$250,787.59

Maintenance Invoice 17

8t312018

Accountsreceivable@s w at424 l.com to

padams4@houstonisd.org with attachments:

Southwest Wholesale Monthly Mowing Proposals July 2018 - Dec. 2018 and Jan. - June 2019

t4

$1,187,615.40 $ 1,000,097.30

Case 4:21-cr-00588 Document 42 Filed on 04/07/22 in TXSD Page 15 of 21

18

tU8l20t8

Accountsreceivable@sw at424 l.com to hi sd_vendorinvoices@houstoni sd. org with attachment: Invoice for 2018 Wilson ES Landscape Additions - Kiddie Cushion

$17,119.80

t9

tzt5t20t8

Accountsreceivable@swat424l.com to hisd_vendorinvoices@houstonisd. org with attachment: Invoice for 2018 Herod ES Landscape Additions - Kiddie Cushion

8t3,407.54

20

12tsl20t8

Accountsreceivable@s wat424l.com to hisd_vendorinvoices@houstonisd. org with attachment: Invoice for 2018 Garden Oaks ES Landscape Additions - Kiddie Cushion

$

15,120.56

2\

t2l5l20t8

Accountsreceivable@s w at424l. com to

$

13,416.46

hisd_vendorinvoices@houstonisd. org with attachment: Invoice for 2018 Brookline ES Landscape Additions - Kiddie Cushion 22

t2114120t8

Accountsreceivable@s wat4241.com to hisd_vendorinvoices@houstonisd. org with attachment: Invoice for 2018 Wainwright ES Landscape Additions - Kiddie Cushion

$11,686.28

Z3

6l18l20t9

Hutchison@ swat424 l. com to padams4 @houstoni sd. org with attachments: Southwest Wholesale Monthly Mowing Proposals July 2019 - Dec 2019, Jan 2020 - Jlune 2020

$988,303.39 $1,173,610.10

24

712912019

Accountsreceivable@swat4247.com to hisd_vendorinvoices@houstoni sd. org with attachment: Southwest Wholesale JuJy 2019 Monthly Maintenance Invoice

$250,731.74

In violation of Title 18, United States Code, Sections 1343 and2.

15

Case 4:21-cr-00588 Document 42 Filed on 04/07/22 in TXSD Page 16 of 21

COUNT TWENTY-FIVE (Witness Tampering, 18 U.S.C. $ 1512(b)(3))

65.

The Grand Jury adopts, realleges, and incorporates herein the Introduction section

of the Indictment and the Manner and Means section of Count One of the Indictment as if set out

fully herein.

66.

In or about 2O2l,in the Houston Division of the Southern District of Texas,

ANTHONY HUTCHISON, Defendant herein, did knowingly attempt to corruptly persuade Hoskins to falsely state to FBI

Agents that the payments reflected in HUTCHISON's ledger related to gambling winnings and losses rather than to bribes, and HUTCHISON instructed Hoskins to tell Hall and Tovar to repeat

the same false gambling story, with the intent to hinder, delay, and prevent the communication to a law enforcement

officer of the United States of information relating to the possible commission

of a Federal offense, namely, violation of Title 18, United States Code, Section 666, as described in paragraphs 9 through 43 of the Indictment.

In violation of Title 18, United States Code, Section 1512(bX3).

COUNT TWENTY-SIX (Witness Tampering, 18 U.S.C. $ 1512(bX3))

67.

The Grand Jury adopts, realleges, and incorporates herein the Introduction section

of the Indictment and the Manner and Means section of Count One of the Indictment as if set out

fully herein.

68.

In or about 2020, in the Houston Division of the Southern District of Texas,

BRIAN BUSBY, Defendant herein, did knowingly attempt

to comrptly

persuade Hoskins

to falsely state

to

investigators that BUSBY did not direct anyone to use any specific contract vendors, when in

t6

Case 4:21-cr-00588 Document 42 Filed on 04/07/22 in TXSD Page 17 of 21

reality BUSBY directed his subordinates to use HUTCHISON's companies, and to falsely state to investigators that BUSBY did not personally conduct project "walk-throughs" with contract vendors (part of the purchase order award process), when in reality BUSBY conducted walkthroughs with HUTCHISON, with the intent to hinder, delay, and prevent the communication to a

law enforcement officer of the United States of information relating to the possible commission of a Federal offbnse, namely, violation of

Title

18, United States Code, Section 666, as described

in

paragraphs 9 through 43 of the Indictment.

In violation of Title 18, United States Code, Section 1512(b)(3).

COUNTS TWENTY-SEVEN _ TWENTY-EIGHT (Willfutly Filing False Tax Return 26

69.

u.s.c.

$ 7206(1))

The Grand Jury adopts, realleges, and incorporates herein the Introduction section

of the Superseding Indictment and the Manner and Means section of Count One as if set out fully herein.

70.

On or about the dates shown below, in the Houston Division of the Southem

District of Texas and elsewhere,

ANTHONY HUTCHISON, Defendant herein, did willfully make and subscribe a U.S. Corporation Income Tax Retum, IRS

Form 1120, and related Schedules, for Southwest Wholesale for the following calendar years set forth below and filed with the Internal Revenue Service on or about the dates indicated below, which retums contained and were verified by a written declaration that they were made under the penalties of perjury, and which Defendant did not believe to be true and correct as to every material matter in that Defendant: (a) reported that Cost of Goods Sold, on Line 2 of Form 1 120, was the amount indicated below, whereas, as he then and there knew and believed, the amount

11

of

Case 4:21-cr-00588 Document 42 Filed on 04/07/22 in TXSD Page 18 of 21

Cost of Goods Sold, on Line 2 of Form 1120, was substantially less; (b) reported that Total Income, on Line 11 for Form 1120, was the amount indicated below, whereas, as he then and there knew and believed, the amount of Total Income, on Line l1 of Form 1120, was substantially more; (c) reported that Taxable Income, on Line 30 of Form 1120, was the amount indicated below, whereas, as he then and there knew and believed, the amount of Taxable Income, on Line 30 of Form 1120, was substantially more; and, (d) reported that Total Tax, on

Line 31 of Form 1120, was the amount indicated below, whereas,

as he then and there

knew and

believed, the amount of Total Tax, on Line 31 of Form 1 120, was substantially more: Count

Calendar Year

Approximate Date of Filing

of

Taxable Income, reported on Form 1120, Line 30

Total Tax, Reported on Form 1120, Line

Line2

Total Income, reported on Form 1 120, Line 1l

Cost

Goods Sold, reported on Form 1 120,

3l

27

2017

10tr612018

$4,635,282

$2,492,879

s705,917

$240,012

28

2018

0912012019

$8,090,597

$5,1 17,196

$2,989,596

$627,815

In violation of Title 26, United States Code, Section 7206(l).

COUNTS TWENTY-NINE _ THIRTY.THREE (Willfully Filing False Tax Return 26 U.S.C. S 7206(1))

7l-

The Grand Jury adopts, realleges, and incorporates herein the Introduction section

of the Superseding Indictment and the Manner and Means section of Count One as if set out fully herein.

72.

On or about the dates shown below, in the Houston Division of the Southem District

of Texas and elsewhere,

BRIAN BUSBY, Defendant herein, did willfully make and subscribe a U.S. Individual Income Tax Return, IRS

Form 1040, and related Schedules, for the following calendar years set forth below and hled with 18

Case 4:21-cr-00588 Document 42 Filed on 04/07/22 in TXSD Page 19 of 21

the Intemal Revenue Service on or about the dates indicated below, which returns contained and were verified by a written declaration that they were made under the penalties of perjury, and

which Defendant did not believe to be true and correct as to every material matter in that Defendant: (a) reported that Total Income, on Form 1040, Lines 22,6 and 7b, was the amount indicated below, whereas, as he then and there knew and believed, the amount of Total Income, on Form 1040, Lines 22,6 and 7b, was substantially more; (b) reported that Adjusted Gross Income, on Form 1040, Lines

37

, 7 and 8b, was the amount indicated below, whereas, as he then

and there knew and believed, the amount of Adjusted Gross Income, on Form 7040,Lines 37,7 and 8b, was substantially more; (c) reported that Taxable Income, on Form 1040, Line 43,10,

and 1lb, was the amount indicated below, whereas, as he then and there knew and believed, the amount of Taxable Income, on Form 1040, Line 43,10, and 1lb, was substantially more; and (d) reported that Tax, on Form 1040, Lines

44,ll,

and 12b, was the amount indicated below,

whereas, as he then and there knew and believed, the amount of Tax, on Form 1040, Lines 44, 11, and 12b, was substantially greater:

Count

Calendar Year

Approximate Date of Filing

Total Income, reported on Form 1040,

Lines22,6 and7b.

Adjusted Gross

Income, reported on Form 1040, Lines 37 ,7 and 8b

Taxable Income, reported on Form 1040, Line 43, 10, and llb

Tax, Reported on Form 1040, Lines 44,11, and 12b

.00

29

20t5

041t712016

s219,542.00

$217,850.00

$

101,852.00

$ 17,051

30

20t6

0410812017

$239,017.00

$237,315.00

$

106,686.00

$

31

2017

0411512018

$340,134.00

$336,025.00

s 173,195.00

$35,379.00

32

2018

0s12912019

$378,160.00

$374,556.00

$213,499.00

$39,819.00

JJ

20t9

t01r512020

$462,968.00

$460,873.00

s253,687.00

$49,234.00

In violation of Title 26,lJnited States Code, Section 7206(1).

19

1

8,214.00

Case 4:21-cr-00588 Document 42 Filed on 04/07/22 in TXSD Page 20 of 21

NOTICE OF FORFEITURE (18 u.S.C. $ e8l(aXl)(C); 28 U.s.c. $ 2a61(c))

73.

Pursuant to

Title

18, United States Code, Section 981(a)(1)(C), through application

of Title 28, United States Code, Section 2461(c), the United States gives notice to Defendants,

ANTHONY HUTCHISON and BRIAN BUSBY, that upon conviction of a violation of Title 18, United States Code, Sections 371,666 or 1343, all property, real or personal, which constitutes or is derived from proceeds traceable to such offenses,

is subject to forfeiture.

Property Subiect to Forfeiture

74.

The United States gives notice that the property subject to forfeiture includes, but

is not limited to, the following property:

a.

$90,150.00 in U.S. Currency seized on or about February 27,2020, from the residence of BUSBY;

b.

$73,474.00 in U.S. Currency seized on or about February 27,2020, from the residence of HUTCHISON; and

c.

$22,400.00 in U.S. Currency seized on or about February 27, 2020, from a farury pack placed under a seat in the vehicle of HUTCHISON. Monev Judgment and Substitute Assets

75.

The United States gives notice that it

will

seek a money judgment against each

of

the Defendants. In the event that one or more conditions listed in Title 21, United States Code, Section 853(p) exist, the United States

will

seek to

in substitution.

20

forfeit any other property of the Defendants

Case 4:21-cr-00588 Document 42 Filed on 04/07/22 in TXSD Page 21 of 21

A TRUE BILL:

JENNIFER B. LOWERY UNITED STATES ATTORNEY

�HNSON

Assistant United States Attorney

21