HOUSTON — "People hate public corruption."
That's how Harris County District Attorney Kim Ogg began a news conference on Friday at which she announced that three people had been arrested and charged in connection with a scheme that took millions of dollars away from redevelopment plans in Houston's Third Ward.
Ogg said about $8.5 million in public funds from the Midtown Redevelopment Authority was stolen by Todd Alan Edwards, Veronica Ugorji and Ken Jones.
The trio worked with the Midtown Redevelopment Authority, a TIRZ that uses tax money to improve specific areas across the city. Edwards was the real estate asset manager and Ugorji and Jones were contractors.
According to court documents, the scheme occurred from Sept. 27, 2018, through Feb. 22, 2023.
In this case, two Third Ward residents notified officials that work wasn't being done in their neighborhoods and that's what led to the Texas Rangers investigating. Brian Vantubergen and Ed Pettitt said they complained for years about a lack of redevelopment and continued problems with nuisance properties. They said redevelopment and maintenance weren't happening as it was promised and lots weren't being maintained like they were told they would be and had become magnets for crime.
According to Ogg, Edwards was in control of spending the money for the betterment of the neighborhood but instead used it to line his own pockets as well as the pockets of Ugorji and Jones. She said they spend the money on houses, cars, trips and pornography.
Edwards is facing charges of corruption, abuse of official capacity, theft and money laundering while Ugorji and Jones are both charged with abuse of official capacity and money laundering. According to court documents, Jones posted bond and was due back in court on July 8. The status of the other two suspects was unknown.
Ogg said the TIRZ positions are generally appointed by the mayor and city officials have to make sure the money is being spent correctly and the work is being done. She said this particular scheme was very unsophisticated and anyone who took the time to look into it could have seen the money was being misused.
"The TIRZ play a real, real important role in the maintenance and redevelopment of our city," Houston Mayor John Whitmire said. "Due to the revenue cap, they often have discretionary funds to spend on neighborhood quality-of-life issues. It's outrageous that we have discovered that they have criminal intent."
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, the background and any conflict of interest possibility when we make these TIRZ appointments," Whitmire said.
Whitmire said leaders have started discussions about the process of reviewing all of the TIRZs across the city.
"The public expects better," Whitmire said.
Anyone with concerns of their own on how public money is being used is asked to call the Texas Rangers at 281-517-1400.
Midtown Redevelopment Authority issued this statement:
The charges detailed in today’s indictment by our former real estate manager and two others are entirely contrary to the values and principles under which MRA operates.
Midtown Redevelopment Authority (MRA) has taken comprehensive steps to enhance all financial and procurement controls to ensure public trust and the execution of the affordable housing program.
Midtown has cooperated fully with state and federal law enforcement agencies throughout this investigation, including providing the District Attorney and other authorities with all investigative materials from MRA’s own internal investigation.
Recognizing the importance of rebuilding trust, we have taken significant steps to address the activities detailed in the indictment. They include:
- Strengthening internal controls to ensure increased oversight and accountability within our organization.
- Improving the procurement process to include a larger evaluation team, third-party verification of potential vendors, and ongoing evaluation after selection.
- Reviewing financial and operational procedures to detect and prevent any potential future misconduct.
- Enhancing community outreach to provide regular progress updates and maintain open lines of communication with stakeholders.
MRA remains steadfast in its commitment to providing affordable housing and maintaining its properties. We value the insights and feedback from those we serve and are open to hearing your concerns and suggestions as we move forward.
We also pledge active collaboration with Mayor Whitmire and his staff to ensure the highest levels of accountability and transparency. We are determined to earn back the public’s trust and continue to serve the community responsibly.