A family from San Antonio entangled in a scheme to defraud the United States government through fixed contracts at Army hospitals and medical centers faced their sentencing yesterday. The three family members, Kenneth Flores, 51, Christopher Flores, 55, and Irma Flores, 75, had previously pleaded guilty in August 2023 to charges related to government fraud and gratuities, according to the U.S. Attorney's Office for the Western District of Texas.
In a detailed account of the conspiracy, court documents revealed that the Flores family, in collusion with government employees Karisa Waysepappy Kelley and John Jordan “Chip” Mathes, rigged the procurement process for their financial gain. As per the plea, Kenneth Flores admitted to conspiracy to defraud the U.S. government, while Irma and Christopher Flores acknowledged paying gratuities to the government officials in return for their help with the fraudulent activities. It was also revealed that from 2018 to 2020, significant financial transactions were made to these officials’ companies in what amounted to bribery and kickbacks.
During the sentencing, U.S. District Judge Fred Biery handed Kenneth Flores a four-year imprisonment term, Christopher received only two years, and Irma was sentenced to five years probation. The trios are also required to repay a combined $3.7 million in restitution. U.S. Attorney Jaime Esparza commented on the gravity of their actions, stating to U.S. Attorney's Office for the Western District of Texas, “The actions of these three family members—defrauding our institutions and corrupting the integrity of government contracts intended to support military facilities—were a betrayal of the public trust.”
Acting Special Agent in Charge Ryan Settle of the Defense Criminal Investigative Service (DCIS) Southwest Field Office and other officials expressed their commitment to maintaining the integrity of the Defense Department’s procurement process. These sentences underscore the collaborative efforts of law enforcement agencies including the DCIS, Army Criminal Investigation Division (CID), General Services Administration Office of Inspector General, and IRS Criminal Investigation, all of which played significant roles in unraveling the fraudulent scheme. Special Agent in Charge Maria E. Thomas for the Department of the Army CID's Central Texas Field Office reinforced this position, explaining to U.S. Attorney's Office for the Western District of Texas, “Today’s sentencing illustrates Army CID’s commitment to protecting the integrity of the Army’s procurement process.”
The guilty pleas entered by Kelley and Mathes back in February 2023 indicate that their sentencing may follow suit in the near future as the agencies continue their extensive work in protecting government resources and ensuring transparency in the administration of contracts vital to military operations. These latest developments serve as a firm reminder to individuals and businesses that the federal government demands fairness and honesty in its contractual relations.
