A U.S. District judge has amended conditions of release for the former CEO and president of IES or International Education Services for immigrant children, who earlier this year were indicted on embezzlement charges.
According to the orders for Ruben Gallegos Sr. and Ruben Gallegos Jr., signed by Judge Fernando Rodriguez Jr. Nov. 9, the father and son will be able to attend school sponsored events (including, as examples, for sports, and religious and holiday activities) of the son and grandson.
On the day of the event, each Gallegos’ curfew is modified and they may return to their homes no later than 11 p.m., according to the signed order. They must notify their pretrial officer or supervisor prior to attending the events.
The Gallegos’, along with Juan Gonzalez, face theft and embezzlement charges that they are accused of committing during the time they worked and operated IES.
Gallegos Sr., Gallegos Jr., and Gonzalez were indicted on the charges in August. Count one of the indictment charges them with conspiracy. Count two charges them with theft concerning programs receiving federal funds.
According to the Aug. 30, unsealed federal indictment, from 2014 through 2018, Gallegos Sr., Gallegos Jr. and Gonzalez knowingly conspired with another unnamed person to commit an offense against the United States, to “embezzle, steal, obtain by fraud knowingly convert without authority, and intentionally misapply property that is valued at $5,000 U.S. dollars or more, and is owned by, or is under the care, custody, or control of, an organization that receives more than $10,000 U.S. dollars in federal assistance in any one-year period.”
The indictment reads that from 2014 to 2017, Gallegos Jr., Gallegos Sr. and Gonzalez caused IES to use federal grant funds to pay themselves salaries that were hundreds of thousands of dollars above the salary cap imposed by federal regulations.
Among the charges and according to a portion of the indictment, Gallegos was paid salaries way over the $183,000 cap limit with his 2017 salary at $435,416.88.
The indictment also states Gallegos Sr. was paid $506,0032.22 and Gonzalez $377,060.96 — also in violation of the salary caps — but their names are redacted in the document.
The IES contracted with the Unaccompanied Alien Children Program and provided temporary shelter care and other related services to unaccompanied alien children, according to the federal indictment.
IES received almost all of its funding in the form of federal grants, and for each fiscal year from 2014 through 2018, it received millions of dollars in federal grant funds.
Gallegos Jr. served as CEO of IES from 2014 to 2018, Gallegos Sr. as president, and Gonzalez as finance director until the federal government decided it would not renew its funding for the IES shelter.
The United States Congress prohibited use of grant funds to pay salaries above a certain rate. In addition, federal regulations further limited spending of grant funds.
The indictment also states that Gallegos Jr., Gallegos Sr. and IES did not comply with federal regulations requiring competitive bidding and did not comply with federal regulations setting rental cost limits in less-than-arms-length transactions.
The indictment further states the “defendants caused IES to lease properties, such as vacant lots and residential properties that were not used to provide any meaningful services to alien children.”
All three have pleaded not guilty to the charges and are out on bond.
