Public corruption scheme uncovered in the city of Houston TIRZ

HOUSTON — “People hate public corruption. »

That’s how Harris County District Attorney Kim Ogg began a news conference Friday in which she announced that three people had been arrested and charged in connection with a scheme that took millions in dollars to redevelopment plans for Houston’s Third Ward.

Ogg said approximately $8.5 million in public funds from the Midtown Redevelopment Authority were stolen by Todd Alan Edwards, Veronica Ugorji and Ken Jones.

The trio worked with the Midtown Redevelopment Authority, a TIRZ that uses tax dollars to improve specific areas of the city. Edwards was the real estate asset manager and Ugorji and Jones were contractors.

According to court documents, the scheme ran from September 27, 2018 to February 22, 2023.

In this case, two Third Ward residents notified authorities that work was not being done in their neighborhood and that led the Texas Rangers to investigate. Brian Vantubergen and Ed Pettitt said they have complained for years about the lack of redevelopment and ongoing problems with nuisance properties. They said redevelopment and maintenance was not happening as promised and the lots were not maintained as had been said and had become magnets for crime.

According to Ogg, Edwards controlled spending on neighborhood improvements, but instead used it to line his own pockets as well as those of Ugorji and Jones. She said they spent their money on houses, cars, trips and pornography.

Edwards faces charges of bribery, abuse of official power, theft and money laundering, while Ugorji and Jones are both charged with abuse of official power and money laundering. According to court documents, Jones posted bond and was due back in court July 8. The status of the other two suspects was unknown.

Ogg said TIRZ positions are typically appointed by the mayor and city officials must ensure the money is spent properly and the work gets done. She said this particular project was very simple and anyone who took the time to look into it could have seen that the money was being misused.

“TIRZs play a very important role in the maintenance and redevelopment of our city,” said Houston Mayor John Whitmire. “Because of the income cap, they often have discretionary funds to devote to neighborhood quality-of-life issues. It is outrageous that we have discovered they have criminal intentions.”

Whitmire said none of the current members of the Midtown Redevelopment Authority were appointed by his administration.

“In my office, we closely inspect the profile, background and any potential for conflicts of interest when we make these TIRZ appointments,” Whitmire said.

Whitmire said leaders have begun discussions about the process of reviewing all TIRZs in the city.

“The public expects better,” Whitmire said.

Anyone with concerns about how public money is being used is asked to call the Texas Rangers at 281-517-1400.