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BROWNSVILLE — U.S. District Judge Fernando Rodriguez on Tuesday dismissed the indictment against former executives with International Educational Services, or IES, the nonprofit that provided services to unaccompanied minor children here without lawful immigration status.
Rodriguez dismissed the indictment without prejudice against Ruben Gallegos Sr., the former IES chief executive officer, Ruben Gallegos Jr., the former executive director, and Juan Jose Gonzalez, the nonprofit’s former financial officer, on charges of conspiracy to embezzle money meant for the nonprofit and theft concerning federal funds.
Because the indictment was dismissed without prejudice, the government could re-indict Gallegos, Gallegos Jr. and Gonzalez. However, Rodriguez said from the bench that prosecutors had indicated they do not not intend to do so.
Gonzalez previously pleaded guilty to the charges and also had sought the motion to dismiss the indictment. Rodriguez granted that motion, dismissing the indictment as moot.
As previously reported by The Brownsville Herald, IES was a nonprofit in the Rio Grande Valley that contracted with the federal government under the Unaccompanied Alien Child care and placement program to provide housing, food, placement and other services to children with no lawful immigration status and who did not have parents or legal guardians here to care for them.
The charges concerned activities at the nonprofit between 2014 and 2018 when it received millions of dollars in federal grant funds.
A 2016 audit of IES’s 2015 fiscal year found that the Gallegoses and Gonzalez violated executive compensation limits and committed less-than-arm’s-length transactions in violation of federal limits.
In the past few weeks, the parties had begun preparing for trial. Court records show that evidence existed that had not been turned over to defense attorneys.
Rodriguez said from the bench Tuesday morning that there was no evidence of bad faith on the part of the government. In the motion to dismiss, prosecutors only said that they were asking for the charges to be dropped in the interest of justice.
IES operated for years before abruptly shutting down and firing all of its employees on March 31, 2018.
Editor’s note: This story has been updated with new information.