SAN ANTONIO — A Texas businessman has copped to a years-long conspiracy that gutted public trust and lined his pockets with dirty commissions. Samuel Mullen, former Chief Financial Officer of the Mullen Pension & Benefits Group, LLC., pleaded guilty yesterday to one count of conspiracy to commit honest services wire fraud, admitting he funneled over $80,000 in bribes to secure health insurance contracts for school districts and a water utility.
Appearing before U.S. Magistrate Judge John W. Primomo, Mullen, a resident of Mission, TX, confessed to rigging the system from March 2007 through June 2014. The scheme targeted San Antonio ISD, Edgewood ISD, South San Antonio ISD, and the Bexar Metropolitan Water District (BexarMet)—all of which hired independent consultants to vet benefit plans. Mullen paid one such consultant more than $80,000 in kickbacks to sway decisions in favor of insurers tied to his company.
The Mullen Group was locked in fierce competition with other firms to land these lucrative public contracts. Instead of winning fair and square, Mullen chose corruption—slipping bribes and hiding critical financial ties while steering deals that profited him directly. His actions didn’t just break the law; they betrayed taxpayers, employees, and retirees who depended on transparent, honest management of their health benefits.
By greasing the wheels with illicit payments, Mullen ensured his group locked down contracts that should’ve been awarded on merit. In return, he collected commissions on insurance policies shoved through by fraud. The dollar amount of those commissions isn’t yet public, but prosecutors say the scheme systematically undermined the bidding process for years.
Mullen now faces up to five years in federal prison. He remains on bond as he awaits sentencing before U.S. District Judge Xavier Rodriguez on January 25, 2017, in San Antonio. The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Mark Roomberg and Joseph Blackwell.
United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs confirmed the plea, calling it a gut punch to public corruption. ‘This wasn’t just fraud—it was a betrayal of public servants and their communities,’ Combs said. ‘We’re peeling back layers, and others should expect the same fate.’
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Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Public Corruption
- Source: Official Source ↗
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