Samuel Mullen, Health Benefit Plans Scheme, Texas 2017

Local Businessman Pleads Guilty to Role in Health Benefit Plans Scheme

San Antonio, TX - In a shocking turn of events, Samuel Mullen, former Chief Financial Officer of the Mullen Pension & Benefits Group, LLC (Mullen Group), pleaded guilty to a federal conspiracy charge for his role in a bribery and kickback scheme that victimized several local school districts, a municipality, and their constituents regarding health care benefit plans.

According to court records, the scheme, which lasted from March 2007 until June 2014, involved Mullen and others using bribes, kickbacks, and concealment of material information to defraud various school districts and the Bexar Metropolitan Water District (BexarMet). The entities affected included San Antonio ISD, Edgewood ISD, South San Antonio ISD, and BexarMet.

Mullen admitted to paying an independent consultant hired by the school districts and BexarMet over $80,000 for help in securing contracts with those entities on behalf of insurance companies with whom the Mullen Group had a financial interest. By providing bribes and kickbacks, Mullen personally profited by receiving commissions on those insurance contracts.

The investigation into Mullen's activities is being conducted by the Federal Bureau of Investigation (FBI). Assistant United States Attorneys Mark Roomberg and Joseph Blackwell are prosecuting this case on behalf of the government.

Mullen faces up to five years in federal prison. He remains on bond pending sentencing scheduled for January 25, 2017, before U.S. District Judge Xavier Rodriguez in San Antonio.

The guilty plea marks a significant victory for the FBI and the U.S. Attorney's Office in their efforts to root out corruption and ensure accountability in the business community.

As a result of Mullen's actions, several school districts and the BexarMet have been left to pick up the pieces and deal with the consequences of their dealings with the Mullen Group.

The case serves as a reminder of the importance of transparency and accountability in business dealings and the severe consequences that can result from engaging in corrupt activities.

Source: https://www.justice.gov/usao-wdtx/pr/businessman-pleads-guilty-role-health-benefit-plans-scheme