Flores Family Members, Defrauding Government, Texas 2023

San Antonio Family Members Sentenced for Defrauding Government

San Antonio, Texas - Kenneth Flores, 51, Christopher Flores, 55, and Irma Flores, 75, were sentenced in federal court on Friday for their roles in a scheme to defraud the government.

The three San Antonio family members pleaded guilty to government fraud and gratuities charges in August 2023. According to court documents, they conspired together to eliminate competition and fix contract awards and prices on Army contracts for housekeeping and janitorial services at Army Hospitals and Medical Centers.

Kenneth Flores pleaded guilty to conspiracy to defraud the U.S. government. His siblings, Irma and Christopher Flores, pleaded guilty to paying gratuities to government officials who helped in the scheme to defraud government contracts.

The scheme involved a corrupt partnership between the Flores family members and co-conspirator government employees Karisa Waysepappy Kelley and John Jordan "Chip" Mathes. The scheme brought in millions of dollars in work on Army healthcare housekeeping and janitorial services contracts to the Flores family in return for bribes and kickbacks, which helped induce Kelley and Mathes to aid the Flores in eliminating competition in the process.

From November 15, 2018, until June 25, 2020, Christopher Flores's company, Alliance Supply, paid $216,710.46 to Mathes' company, C & S Consulting. From February 21, 2019, until July 17, 2020, Alliance Supply paid Kelley's company Waysepappy Consulting $57,906.50. Irma Flores served as the bookkeeper for Allegiance Environmental Services, a company owned by Kenneth Flores, under which Alliance operated.

Mathes and Kelley pleaded guilty in February 2023 and are scheduled to be sentenced in the coming weeks.

On Friday, U.S. District Judge Fred Biery sentenced Kenneth Flores to four years in prison, Christopher Flores to two years in prison, and Irma Flores to five years of probation. As part of their plea agreements, they agreed to pay restitution in the amount of $3.7 million.

"The actions of these three family members—defrauding our institutions and corrupting the integrity of government contracts intended to support military facilities—were a betrayal of public trust," said U.S. Attorney Jaime Esparza for the Western District of Texas. "Our office remains committed to rooting out corruption and holding accountable those who seek to exploit government resources for personal gain."

"The Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service, is committed to protecting the integrity of the DoD procurement process," said Acting Special Agent in Charge Ryan Settle for the DCIS Southwest Field Office. "Today's outcome represents the extraordinary efforts by our law enforcement partners, alongside the law enforcement agencies, to hold accountable those who seek to enrich themselves by fraudulent means and pilfer precious taxpayer resources."

"Today's sentencing illustrates Army CID's commitment to protecting the integrity of the Army's procurement process and ensuring that Department of the Army resources are safeguarded against unlawful and unfair practices," said Special Agent in Charge Maria E. Thomas for the Department of the Army Criminal Investigation Division's Central Texas Field Office. "We will continue to work diligently with our law enforcement partners to expose fraudulent activity and hold individuals accountable who attempt to defraud the U.S. Army and government for services Soldiers and families rely on."

"Government contracts support the missions of the United States and its military," said Special Agent in Charge Jamie Willemin for the U.S. General Services Administration Office of Inspector General's Southwest and Rocky Mountain Investigations Division. "Those who do business with the federal government are expected to engage in fair and honest business practices. GSA OIG will work diligently with investigative partners to investigate fraudulent activity and hold offenders accountable for their actions."

Mandatory Facts:

• Defendant: Kenneth Flores, Christopher Flores, Irma Flores
• Criminal Charges: Conspiracy to defraud the U.S. government, paying gratuities to government officials
• City and State: San Antonio, Texas
• Exact Date: August 2023 (pleaded guilty), Friday (sentencing date)
• Sentence: Kenneth Flores - 4 years in prison, Christopher Flores - 2 years in prison, Irma Flores - 5 years of probation
• Dollar Amounts: $3.7 million (restitution), $216,710.46 (paid to C & S Consulting), $57,906.50 (paid to Waysepappy Consulting)

Source: https://www.justice.gov/usao-wdtx/pr/family-members-who-conspired-defraud-us-sentenced-san-antonio