Former Senior Policy Advisor for an Austin city official, Frank Rodriguez, was sentenced Monday to three years of federal probation and ordered to pay a restitution of $21,375. This sentencing comes in light of Rodriguez's involvement in a financial scheme that aimed to misapply federal funds, according to a statement from the U.S. Attorney's Office for the Western District of Texas. His actions essentially misrepresented his commitment to a federal project while serving as an executive director for an Austin-area nonprofit that he himself had founded.
The scheme unfolded back in 2015 when Rodriguez, then a full-time city employee, applied for federal funds on behalf of the nonprofit for Affordable Care Act enrollment services. As reported by the U.S. Department of Justice, he falsely claimed he would work full-time on the project, securing approximately $190,000 in grants. Subsequently, Rodriguez entered into a “consulting agreement” with the nonprofit and started receiving payments amounting to the sum for which he had been ordered to pay restitution.
During his tenure, Rodriguez not only negotiated for city business on behalf of the nonprofit but also allegedly gave the group confidential city information while undercutting competitors. These actions violated the ethical standards expected of city employees. When under scrutiny by the city auditor, Rodriguez went as far as producing false testimony and documentation to cover his tracks, as the investigation by the FBI and the U.S. Department of Health and Human Services Office of Inspector General later uncovered.
The prosecution, helmed by Assistant U.S. Attorneys Gabriel Cohen, Keith Henneke, and Alan Buie, highlighted the breach of trust by Rodriguez in his capacity as a public servant. “Rodriguez caused the nonprofit to send a letter to the city auditor that falsely described his relationship with the organization,” states the press release. This misrepresentation, in addition to Rodriguez’s sworn false testimony at a city ethics commission hearing, culminated in the charges that led to his sentencing.
While Rodriguez will not face prison time, the federal probation and restitution are measures aimed at addressing the consequences of his actions. The case was rigorously investigated and stands as an example of the legal repercussions awaiting those who misuse their position for personal gain.
