Austin, TX – Construction firm Guido Construction and its owner, Jose Villarreal Ibarra, have been convicted of fraud related to the Texas Emissions Reduction Plan (TERP), a program designed to improve air quality across the state. The guilty pleas, entered September 5, 2013, in the 167th District Court of Travis County, represent the culmination of a multi-agency investigation into falsified documentation submitted by the company.
The investigation, spearheaded by the TCEQ Environmental Crimes Unit, the U.S. Environmental Protection Agency Criminal Investigation Division, the Texas Parks and Wildlife Environmental Crimes Unit, and the Texas Environmental Enforcement Task Force, revealed a scheme where Ibarra fraudulently reported the destruction of vehicles as part of the TERP program. TERP offers grants to offset the cost of replacing older, high-emission diesel trucks and equipment with cleaner alternatives, aiming to reduce smog-forming emissions and meet federal air quality standards.
According to court records, Ibarra and Guido Construction falsely claimed to have properly disposed of vehicles received under TERP contracts, allowing them to illegally collect grant funds. The deception involved submitting fabricated documentation regarding the disposition of the vehicles, effectively defrauding the state program. Prosecutors from the Travis County District Attorney’s office successfully demonstrated the fraudulent intent and execution of the scheme.
Penalties and Restitution
Jose Villarreal Ibarra pleaded guilty to a second-degree felony charge of Securing Execution of a Document by Deception. He received a five-year probationary sentence, a mandated restitution payment of $220,000 to the TCEQ TERP program, and a requirement to publish a public apology in the Dallas Morning News within 30 days of the sentencing. Guido Construction, Inc. itself pleaded guilty to a first-degree felony of the same charge and was ordered to pay a $30,000 fine.
Broader Implications
This case highlights the TCEQ’s commitment to safeguarding the integrity of the TERP program and ensuring that funds are used for their intended purpose: improving air quality for all Texans. The collaborative effort between state and federal agencies underscores the seriousness with which environmental crimes are being investigated and prosecuted. The successful prosecution serves as a deterrent to others who might attempt to exploit environmental programs for personal gain.
Key Facts
- Defendant: Guido Construction, Inc. & Jose Villarreal Ibarra
- Crime: Securing Execution of a Document by Deception (Fraud)
- State: Texas
- Year: 2013
- Statutes Violated: Texas State Law – Securing Execution of a Document by Deception
- Penalties: Ibarra – 5 years probation, $220,000 restitution, public apology. Guido Construction – $30,000 fine.
- Program Affected: Texas Emissions Reduction Plan (TERP)
- Investigating Agencies: TCEQ, EPA CID, TPWD, Texas Environmental Enforcement Task Force
GrimyTimes will continue to follow this case and report on any further developments. The incident serves as a stark reminder of the financial and environmental consequences of fraudulent activity targeting vital state programs.
Source: EPA ECHO Enforcement Case Database
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