The Following Complaint has been filed with FBI HOUSTON, The same complaint said to warrant further investigation by Texas Secretary of State which forwarded the matter to Texas Attorney General Ken Paxton who so far has failed to act.

We agree campaign cash has a lot to do with how government executes its duties in texas

Mr. Perrye K. Turner
Federal Bureau of Investigation
1 Justice Park Drive
Houston, TX 77092

 

Supporting documentation for this complaint can be accessed online https://drive.google.com/drive/folders/0B8kblcrgwfDgVWpIeEI1Vlphd0U?usp=sharing

9/26/2016

 

ELECTION COMPLAINT OF CRIMINAL VIOLATIONS

 

Developers, Law Firms and Directors of the special districts named in this complaint constitute a combination that appears to repeatedly use a wide-ranging network of contacts to facilitate creation of special districts using means that violate Texas and Federal  law with a pattern of behavior  that warrants immediate and exhaustive State and Federal investigation.

It is believed criminal violations are about to take place in 
November 2016 election  in at least two Districts and numerous violations
have already occurred in Montgomery County and in at least 18 other Texas Counties
in District elections spanning May 2016 to as far back as ten years at least. 

18 U.S.C. 597 – Expenditures to influence voting

 

Whoever makes or offers to make an expenditure to any person, either to vote or withhold his vote, or to vote for or against any candidate; and  Whoever solicits, accepts, or receives any such expenditure in consideration of his vote or the withholding of his vote— Shall be fined under this title or imprisoned not more than one year, or both; and if the violation was willful, shall be fined under this title or imprisoned not more than two years, or both.

Texas Penal Code Sec. 36.02. (a) (1) BRIBERY (knowingly offers consideration for vote)

TEXAS PENAL CODE TITLE 8. OFFENSES AGAINST PUBLIC ADMINISTRATION

CHAPTER 36. BRIBERY AND CORRUPT INFLUENCE

Sec. 36.02.  BRIBERY.  (a)  A person commits an offense if he intentionally or knowingly offers, confers, or agrees to confer on another, or solicits, accepts, or agrees to accept from another:  (1)  any benefit as consideration for the recipient’s decision, opinion, recommendation, vote, or other exercise of discretion as a public servant, party official, or voter;

SUMMARY

This complaint outlines the longstanding and widespread actions of multiple parties
with peculiar vested interest in the creation, control  and operation of Special Purpose
Districts in Montgomery County, Texas  and the unusual governmental powers that such political
subdivisions  yield to those named in this complaint.  Namely PROPERTY DEVELOPERS  and their
specialist LAW FIRMS, along with “elected” BOARDS of the Special Purpose Districts listed below.
The pursuit of a legitimate Special Purpose District is supposed to emerge out of the intention,
volition and actions of existing citizen voters in a community who desire local means to address
service and or infrastructure needs with specific public benefit. Instead the inception of Special
Purpose Districts having NO VOTERS in the district regularly emerge from the intention, volition
and actions of profit seeking PROPERTY DEVELOPERS and their servant LAW FIRMS leading to the wide
spread corruption by literally renting voters (RENT-A-VOTER) for hire for the purpose of voting
affirmatively in confirmation elections that empower a handpicked board and approve various bond
initiatives designed specifically for the developer. Put simply, a corruption of voting practices
in Texas. Two RENT-A-VOTER “election services” companies, Stingray Services Llc and Baja Interests
Inc. were utilized by Developers in this complaint.
 
Texas Commission on Environmental Quality (TCEQ) which monitors Special Districts advises in
TCEQ Publication RG-238 (1996) “The developer is the major force behind the creation and
development of a district. A developer initiates and coordinates the district's development.”
And continues “Even after approval (by TCEQ or Legislators), the district must still be confirmed
by qualified voters within the boundaries of the proposed district. The temporary board meets to
qualify the directors, employ the district's consultants and call an election.” 
And citing Chapter 38 of Texas Penal Code cautions “A director would commit bribery by asking for,
accepting, or even agreeing to accept, something of value as consideration for some decision or
exercise (whether past, present, or future) of discretion as a public servant.”
 
The Montgomery County case examples detailed below are indicative of a broad breakdown of rule of
law in developer controlled election arena.
 

HOW BRIBERY AND INFLUENCE RELATED IN THIS COMPLAINT IS COMMITTED

Property Developers send Petitions or Model Legislation to TCEQ or a Texas Legislator for approval or creation containing hand-picked developer nominated temporary board Directors. The Directors rarely have any connection to the District and qualify for their position solely based on a tiny Directors Lot virtually gifted by the Developer.

Once the petition has been approved or enabling legislation is passed into law the temporary board Directors meet to qualify the Directors and call an election.

Each Developer in coordination with their Law Firm expends out of pocket election expenses including costs to place a “voter residence” inside the District.  The Developer then turns to the task of identifying and recruiting qualified voters to the district who can be influenced to perform the sole purpose of affirmatively confirming the temporary directors and any bond and tax levy ballot propositions in the upcoming election. “Election services” companies are routinely used.

 The recruited voters hold the election and act as both election judge and compliant voter in exchange for some present or future benefit, usually living accommodations at sharply reduced or free rent or other valuable consideration.

Once the election is successfully completed the confirmed Directors hold a regular board meeting where among their first official acts, the board approves a reimbursement agreement between the developer or other service providers and the district. This agreement enables the developer or other service providers to recover any election costs incurred including voter recruitment and residence costs.

It is the well-worn pattern of behavior described above, or a variation of it in conjunction with the act of offering valuable consideration like reduced rent to a voter in exchange for a specific affirmative vote, that along with the expenditure of funds to finance the process which are subsequently reimbursed by the newly “elected” Directors all carefully orchestrated by the cooperation of Developers, Law Firms and Directors in concert that violates Texas Penal Code Sec. 36.02 and 18 U.S.C. 597

STATEWIDE PROPORTIONS OF RENT-A-VOTER ABUSE CAUSE FOR STATE AND

 FEDERAL INVESTIGATION

STATEMENT OF FACTS

In 2015 leading up to the November 2015 election a call placed to a leading law firm in the Special District business revealed the extent to which Texas and Federal election laws are routinely violated. The relevant selected excerpts of the conversation dovetail with the presumptuous attitude demonstrated by EMCID CEO Frank McCrady with regard to MUD formation and elections recorded in the statements of fact for EMC MUD #3 above.

 

10/20/2015 Caller Adrian Heath speaks with Cathy Campbell Legal Assistant for Law Firm ABHR

 

AH :So Cathy do you mean you just move the voters in there for the purpose……

CC: …….to create the District, Yes.

AH: and then once the election is over they’re gone.

CC: Yes.

AH: And that was what was done with MUD 107?

CC: That’s what’s done with every MUD, uh huh, because, you have no one….you don’t have any…..it’s just vacant land.

AH: So they just had temporary voters go there and they left after the election?

CC: Yes.

AH: Is that OK??

CC: Yes. That’s how every MUD is created…. unless it’s done through the legislature.

AH: So there’s a company that I’ve found called Stingray Services that provides voters.

CC: Yeah, they do a lot of that uh huh.

AH: But the idea of just hiring voters seems unusual.

CC: Well, it’s not and it’s….uh….that……that is how the MUDs are created.

 

 Further  convincing evidence of the widespread incidence of election violations in the special district formation business come directly from the Texas Secretary of State Elections Division which responded to public records request for a list of voters (RENT-A-VOTERS) recruited by elections services company Stingray Services aka Stingray Elections, Llc evidenced by voters who have registered to vote at addresses inside newly forming MUD districts while specifying their mailing address during voter registration to be Stingray Services address. The responsive list in excel format contained an astonishing 123 voters in 18 Texas counties.

 

Before

Stingray Services actually foretold this result on their own now defunct website https://web.archive.org/web/20140103081910/http://stingrayservices.com/

www.stingrayservices.com

Which  announced – “We have completed over 70 trailer installations in Texas over the last 10 years, and have supported nearly 100 elections. We locate residents, perform landlord services, support residents in changing their license and voter registration, and assist with the district election. We have worked with a host of major developers and engineers including Lennar, Toll Brothers, Friendswood, Land Tejas, Taylor Morrison, Pate Engineers, Brown & Gay … to name just a few.”

 

Similar to Stingray Services is a second Election Services provider known as Baja Services, Inc  who’s archived website offered  “UTILITY DISTRICT SERVICES (MUD/PUD voter home installations, election services)” on their “About us” page.  https://web.archive.org/web/20150810212859/http://bajainterests.com/aboutus.aspx

 

 

November 2016 Federal/State Election

EAST MONTGOMERY COUNTY MUD 3

District called election for May 7, 2016 to fill expired Directors positions but because there are no voter /residents in the district the incumbents were reconfirmed by action of law.

District has called election for November 6, 2016 to approve Road Bond and Park Bonds. Had no registered voters in the district until 8/3/2016

Parkhurst address is currently occupied by a RV trailer. Property at 20125 Gene Campbell Blvd is tax exempt property owned by overlapping taxing jurisdiction East Montgomery County Improvement District (EMCID).

1/14/2016 EMCID CEO Frank McCrady is recorded in MUD #3 Director meeting minutes stating – “Mr. McCrady next stated that he will begin the process of preparing the District to hold a Road Powers Bond Election in November 2016.”

3/10/2016 Directors considered an Order presented by MUD District Attorney David Marks declaring 3 board members re-elected because there were no voters in the District to contest their seats.

 

5/20/2016 Parkhurst first registered to vote in Montgomery County 19197 Meadow Lake Rd; Cleveland TX 77328.

6/24/2016 – 6/29/2016  EMCID contracted electrical, sewer, gravel pad and dumpster services for the vacant site at 20125 Gene Campbell Blvd.

8/3/2016  Tracy Parkhurst registered to vote inside the district at 20125 Gene Campbell Blvd, New Caney, Texas 77357

9/13/2016 phone conversation between Frank McCrady and Adrian Heath, McCrady stated There is no rental contract between the district and Tracy Parkhurst.  How did Parkhurst come to be a resident then?

McCrady explained the basis for the verbal  six month agreement for free rent on government property:

“She needed a place to stay and we needed some things taken care of in the District, You know how it works”

Asked if the things needed to be taken care of included voting, McCrady replied “yes, You know how it works, that how MUDs are done, you know how it works”

 

District has no written rental agreement between Parkhurst and the District.

District has a reimbursement agreement in force with Developer  EMCID

District has a reimbursement agreement in force with Developer  CREIGHTON PARK LIMITED

District has a reimbursement agreement in force with Developer  WHITINGTON LIMITED

District law firm is MARKS RICHARDSON, PC

Developer and or District have made expenditures to influence voting.

Directors for the District are KEN PARMER JIM DEATON PHIL MAYBEE DARELL BRIDGES ANDREW PERSSON

EMCID Directors are SCOTT HESSON BRENDA WEBB DALE MARTIN ISIDOR YBARRA STEPHEN CARLISLE KATHERINE PERSSON

 

 

BLAKETREE MUD


8/5/2016 Via completed ENTITY FACT SHEET District notifies County Elections they expect 2 voters in November 6, 2016 election.

 

9/19/2016 District  has no responsive documents to TPIA request for voters in District. Refers requester to County Elections.

Blaketree MUD #1 was formed in November 2009 when voters confirmed five temporary directors and $210 Million bond.

District Board of Directors have called a $257 Million bond election for November 2016

As of September 21, 2016 County records confirm there are no registered voters present in the district.

The District claims to have no records of voters for November 2016 election District Entity Fact Sheet notified Montgomery County elections they expect 2 persons to vote.

Attorney for the District is the law firm COATS ROSE YALE RYMAN & LEE PC

District has a reimbursement agreement in force with The Bluejack Company, LLC

District has a reimbursement agreement in force with Developer is 1404 Blaketree, LP.

Developer and or District have made expenditures to influence voting.

Directors for the District are TAMMY PIZZITOLA, ROBB CLARK, LORIE VARNAS, ALREDO SAENZ, JIMMY THORNTON.

                                                                                                               

May 2016 State Election.

MONTGOMERY COUNTY WCID #4

3/6/2016  Alisha Horn first registered to vote in the district at 15815 FM 1488, Magnolia Texas 77354

3/6/2016  Jeffrey Thibedeau registered to vote in the district at 15815 FM 1488, Magnolia Texas 77354

3/9/2016 Gerald Thibedeau first registered to vote in the district at 16120 FM 1488, Magnolia Texas 77354

3/23/2016 Krystal Thibedeau first registered to vote in the district at 16120 FM 1488, Magnolia Texas 77354

 

Temporary Directors called an election for May 7, 2016

District law firm is SCHWARTZ PAGE & HARDING LLP

Elections services were provided by Baja Interests, Inc.

District has a reimbursement agreement in force with 1488 Corp.

District has a reimbursement agreement in force with Magnolia 1138, Ltd.

Developer and or District have made expenditures to influence voting.

Directors for the District are SHAY SHAFIE JANET RHODES JASON MCWHORTER DAN POULSON

TIM ONEIL

 

MONTGOMERY COUNTY MUD 130

3/9/2016 Gerald Thibedeau first registered to vote in the district at 16120 FM 1488, Magnolia Texas 77354

3/23/2016 Krystal Thibedeau first registered to vote in the district at 16120 FM 1488, Magnolia Texas 77354

Temporary Directors called an election for May 7, 2016

District law firm is SCHWARTZ PAGE & HARDING LLP

Elections services were provided by Baja Interests, Inc.

District has a reimbursement agreement in force with 1488 Corp.

District has a reimbursement agreement in force with Magnolia 1138, Ltd.

 

2/19/2016 Montgomery County issued Permit 141296-16 for “Voter Home”

A layout sketch prepared by Baja Interests titled  “Voter Home Layout Sketch” included hand written notations by Baja Interests stating “ Voter Home To Be Onsite For Residency & Removed After 5/7/16 Successful Election Completion & Lease.”

An official survey prepared by surveying division of Jones | Carter dated February 2016 bares the title “EXHIBIT of VOTER HOME TRACT BEING 1.00 ACRE OF THE JOHN SCOTT SURVEY”

Developer and or District have made expenditures to influence voting.

Directors for the District are JARED BOWLIN, GREG BERGERON, MILTON H. FRIED, NICK BAILEY, BLAKE GIBSON,

 

 

MONTGOMERY COUNTY MUD 131

3/6/2016  Alisha Horn first registered to vote in the district at 15815 FM 1488, Magnolia Texas 77354

3/6/2016  Jeffrey Thibedeau registered to vote in the district at 15815 FM 1488, Magnolia Texas 77354

Temporary Directors called an election for May 7, 2016

District law firm is SCHWARTZ PAGE & HARDING LLP

Elections services were provided by Baja Interests, Inc.

District has a reimbursement agreement in force with 1488 Corp.

District has a reimbursement agreement in force with Magnolia 1138, Ltd.

Developer and or District have made expenditures to influence voting.

Directors for the District are JONATHAN HUBBARD, KRISTEN MCDADE, MARTHA MCMANUS, PETER MAINGUY, KELI M. SCHROEDER.

 

November 2015 Federal/State Election

MONTGOMERY COUNTY MUD 142

8/5/2015  Tracy Viehe first registered to vote in the District at 5283 Old Hwy 105 W, Conroe Texas 77304

8/18/2015  Nikolas Mitchell first registered to vote in the District at 5283 Old Hwy 105 W, Conroe Texas 77304

 

District has a reimbursement agreement in force with Stoecker Corporation

Elections services were provided by Stingray Services, Llc.

 

11/3/2015 Voters Confirmed Directors  & $100 Million in Bonds and tax Levy.

 

District law firm is ALLEN BOONE HUMPHRIES ROBINSON LLP

Developer and or District have made expenditures to influence voting.

Directors for the District are MARY DAILY RICHARD BRENT, MICHAEL JACKSON. DOOLEY, TIMOTHY JOHN. DAVIS, ZACH GOODLANDER.

 

 

MONTGOMERY COUNTY MUD 148

8/7/2015  Daniel Spiecher first registered to vote in the District at 1713 Southern Oaks Dr, Conroe Texas 77301

8/7/2015  Deborah Spiecher first registered to vote in the District at 1713 Southern Oaks Dr, Conroe Texas 77301

11/3/2015 Voters Confirmed Directors , $500 Million in Bonds and $3.10 / 100 tax Levy

11/3/2013 Daniel Spiecher was also used by Stingray Services, Llc for Elections in KB HOME MUD 132 in 2013 and 2014 at an address on Longmire Rd. Conroe, Texas.

District has a reimbursement agreement in force with FRIENDSWOOD DEVELOPMENT COMPANY

Elections services were provided by Stingray Services, Llc.

8/4/2015  City of Conroe permit BC-15-005893 issued for Stingray Services Llc recorded “Temporary Voter Trailer MUD 148”.

10/21/2015He ( Spiecher ) told us ( ABC13 TV NEWS Houston) he signed a nine-month lease with Stingray Services and pays “cheap rent” of $150 per month. He said Stingray Services helped him change his driver’s license to the 1713 Southern Oaks Drive address.

11/1/2015 Daniel Spiecher, who is originally from Lufkin, said he was enticed into signing a nine-month lease for the trailer by Stingray Services Inc. because the rent was cheap, only $150 a month. “It’s better than an apartment,” he said.

April 15, 2016  Trailer was removed from MUD 148 following area flooding– At this date the Speicher’s’ are still registered to vote at that address.

Developer and or District have made expenditures to influence voting.

District law firm is COATS ROSE YALE  RYMAN & LEE PC

Directors for the District are KEITH SCHOONOVER JIM C. PLATT, CHRISTOPHER L. DIPAOLO, JOE MATTINGLY, KAY WHITE

 

CONROE MMD #1

2/17/2015  Sara Woehle first registered to vote in the District at 200 Camp Strake Dr, Conroe Texas 77304

2/17/2015  Michael Wallin first registered to vote in the District at 200 Camp Strake Dr, Conroe Texas 77304

 

Elections services were provided by Stingray Services, Llc.

District has a reimbursement agreement in force with CONROE CS TEXAS HOLDINGS, LP

District has a reimbursement agreement in force with GCP LOAN SUBSIDIARY 1, LP

11/3/2015 Voters Confirmed Directors, $468 Million in Bonds and $1.10/100  tax Levy.

District law firm is THE MULLER LAW GROUP

Developer and or District have made expenditures to influence voting.

Directors for the District are CHRISTOPHER M. DENISON, HENRY E. KULESZA, CHARLES REINHARDT, DENNIS BAILEY, STEVE BAILEY.

 

May 2014 State Election

WOODLANDS ROAD UTILITY DISTRICT No.1

District (RUD) was formed by Woodlands Development Company

“Holdover” board was hand-picked by Developer.

District boundaries were carefully drawn to preclude woodlands voter participation.

District law firm is SCHWARTZ PAGE & HARDING LLP

Between 1993 and 2010, fifteen election cycles were skipped by  the RUD and the only residences  in the district, 9700 -9706 Grogans Mill Rd were torn down by the Developer.

9700-9706 Grogans Mill Rd property was de-annexed by the board for the developer then luxury apartments were constructed.

Resident of those luxury apartments, like the majority of Woodlands residents cannot vote in the District.

Between 1993 and 2010 Woodlands population surrounded by the District grew from 30,000 to 90,000.

In 2009 The Woodlands Township purchased their headquarters building on Technology Forrest Drive from Dirk Laukien.

In 2010 when residents worked to bring voter control to the RUD the developer reintroduced hand-picked voters Dirk & Katie Laukien.

Dirk & Katie Laukien are the only persons granted exclusive permission from the developer to establish a residence within the boundaries of the RUD at their commercial property at 2630 Technology Forrest Drive.

In March 2010 legal counsel for the RUD denied there were any voters within the district when 12 existing were identified via County Election records. Two weeks later same legal counsel “discovered” 2 voters, Dirk & Katie Laukien but still denied the presence of the others.

Future property Woodlands commercial property owners who wish to have their property converted to residential use must apply to the Community Service Corp (CSC) for change of land use. CSC is privately owned and operated by Woodlands Development Corp.

Woodlands Development Corp offices are located in building owned by Dirk Laukien.

District “public” meetings were conducted inside the developer offices until mid-2010.

Dirk Laukien’s many commercial properties on Technology forest drive have been granted tax abatements by the District.

When Adrian Heath challenged Developer candidate Gil Staley for board seat Dirk & Katie Laukien, the only Developer approved voters in the district voted for Staley.

Staley votes 2, Heath Votes 0

In 2010 there were actually 22 voters registered in the district at Hotels and Business addresses.

In 2016 there are more than 30 voters registered at hotels and Business addresses inside the District.

Quote in Houston Press – “It should be noted that Stingray didn’t invent the borrowed-voters approach. For the Woodlands Development Company in the late 1990s and early 2000s, there were four residents “with four houses in the middle of a bunch of trees,” said Paul Lazarro, who spent a decade as the development company’s vice president of marketing and public affairs. “They were the voters. I do not know if the rent was free or cheap, but the ulterior motive was, obviously, they would vote for the district.”

Woodlands Development Company Co-President Alex Sutton’s own daughter and son-in-law were recruited to vote in Woodlands confirmation election of Harris-Montgomery County MUD 386 in 2005

In 2014 Board members included, Bill Neill, Richard Debone, Winton Davenport

END OF STATEMENT OF FACTS

 

Such evidence goes far beyond the litany of legal but questionable practices expressed in a  2007 Fordham law Review paper “Wrestling with MUDs” which warned “Developers’ control is troubling primarily because the existence of MUDs disguises the facts:  One interest group controls their governance; their formation, at least at first, serves primarily  private ends; and long-term democratic participation in MUDs is poor. The lack of public involvement may be understandable for special districts that follow the traditional model of handling a specific problem that experts are best left to address.  But for special districts with broad powers, such as MUDs, the lack of involvement opens the door for widespread private abuse and capture of public entities.

 

Even that scholarly report did not foresee the actual RENTING of VOTERS to ensure the fulfilment of developer business objectives in the name of public benefit. And those objectives are infused with almost irresistible financial motives.

 

The Houston Chronicle reported, Since 2000, 207 water districts were created in Harris, Fort Bend, and Montgomery counties, with voters (RENT-A-VOTERS) approving more than $39 billion in bonds to be used for various infrastructure projects. There is more than $60 billion in outstanding debt statewide, according to the most recent financial audits that water districts are required to submit to TCEQ.

Developers, Law Firms and Directors of the special districts named in this complaint constitute a combination that appears to repeatedly use a wide-ranging network of contacts to facilitate creation of special districts using means that violate Texas and Federal law with a pattern of behavior  that warrants immediate and exhaustive State and Federal investigation.

Documentation for this complaint can be accessed online https://drive.google.com/drive/folders/0B8kblcrgwfDgVWpIeEI1Vlphd0U?usp=sharing


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