MCALLEN, TX—Former officials with the City of Hidalgo Housing authority have been arrested and charged with conspiracy to commit bribery and embezzlement along with several counts of bribery, officials announced Tuesday
Susana Munguia, 61, and Lubina Pedraza, 54, both of Hidalgo worked directly with the Department of Housing and Urban Development Housing Choice Voucher Program, authorities state.
Munguia was the executive director and Pedraza was a secretary.
The indictment charging them was returned under seal Feb. 3, 2015, and unsealed Tuesday after the pair was arrested.
If convicted, Munguia and Pedraza face up to 15 years in federal prison for the bribery charges and up to five years for the conspiracy charges, according to officials.
The investigation was conducted by HUD-Office of Inspector General and the FBI.
According to the indictment, these are the allegations:
- From July 2011 to May 2014, Munguia and Pedraza allegedly used their positions as public officials to engage in a bribery scheme.
- The two women solicited and received bribes in exchange for allowing individuals to skip the Section 8 waiting list and immediately obtain housing assistance from the housing Voucher Program.
- People paid through a third party, a monetary bribe to Munguia and Pedraza in order to bypass the waitlist system and to receive immediate approval to obtain vouchers for housing subsidies under the HCVP, according to the indictment.
- Pedraza was responsible for assigning housing to the payee or beneficiary and issued checks to subsidize their rent payments.
- After Munguia and Pedraza received the bribe, the person would immediately receive their subsidized housing.
The indictment further states that from July 2013 to May 2014, Munguia and Pedraza also engaged in an embezzlement scheme, during which they took more than $5,000 in HUD funds through the issuance of false and fraudulent checks for Section 8 housing assistance.
Pedraza was also responsible for the processing of rental subsidies to various landlords/owners.
The indictment alleges that upon preparing the legitimate checks to pay the subsidies, Pedraza had fraudulent check requests to be issued based on a falsified need for monthly Housing Authority payments to a particular landlord.
These fraudulent checks were made out to landlords who either did not own or maintain a rental property and property was not occupied by a Section 8 tenant, according to the allegations.
Munguia was responsible for the verification of the payment and the authorizing signature on the check.
The indictment alleges that after Munguia issued and signed the fraudulent checks, Pedraza would then cash the fraudulent checks at Casa de Cambio or deposit the check at a BBVA Compass Bank and subsequently withdraw the money.
Both women allegedly shared in the fraudulent proceeds.