Feds: Guerrero a ‘minor’ player in scheme

Former Commonwealth Utilities Corp. executive director Anthony Guerrero played a “minor” role in an alleged scheme involving Lt. Gov. Timothy Villagomez and two others to bilk the government out of thousands of dollars with a series of needless chemical purchases, federal authorities said in a plea agreement signed last week.

On Monday, marshals led Villagomez into a federal courtroom in handcuffs to face indictment on three felony counts of wire fraud, conspiracy and theft involving federal funds. With him were Villagomez’s alleged coconspirators, Commerce Secretary James Santos and his wife Joaquina Santos, the lieutenant governor’s sister, who are also charged in the indictment.

Villagomez and the Santos couple pleaded not guilty Monday on all three counts.

In 1998, the indictment says, Villagomez, then CUC’s director, conspired with James Santos to arrange several large purchases of Rydlyme, a de-scaling agent, through a company he owned—sales that came with a 400-percent markup and violated conflict of interest laws. Most of the 8,000 gallons of Rydlyme sold under the deal was never needed and never used. Santos’ ISLA Sales Micronesia profited $280,000 through the plan from 1998 to 2000, it adds.

Villagomez later sought to revive the Rydlyme sales scheme in 2007 as lieutenant governor, this time under a sole source emergency contract with Joaquina Santos’ company, Blue Pacific, filling the order, the indictment says. He enlisted Guerrero’s help to execute the plan, it adds.

Court documents paint a picture of Villagomez at the time leaning hard on CUC staff to approve the contract and at one point haranguing them to “pay my sister.”

The contract in 2007 earned $120,000 for Blue Pacific, the indictment says, adding that CUC should have opened the contract for competitive bidding.

However, Guerrero inked a plea deal Aug. 11 with federal prosecutors that is likely to result in his testimony when the case reaches a jury trial in October. After pleading guilty to one count of conspiracy, he could see up to five years in prison or mere probation.

Guerrero’s role in the alleged scheme was a “minor” one, limited to signing the Rydlyme contract in 2007, a move he knew violated procurement regulations and conflict of interest laws, according to the plea agreement.

First Assistant U.S. Attorney Jeffery Strand in a press conference Monday shared concerns that Guerrero, released on a $10,000 bond, will face severe pressure in the local community due to the charges and his involvement with the government’s case. In addition, he commended Guerrero on his decision to cooperate.

Under the terms of the plea agreement, Guerrero is required to “truthfully testify before the grand jury,” provide any documents or information requested by federal authorities, and commit no further crimes. In return, he will not see charges for the remaining felony counts.

Guerrero’s attorney did not respond to several requests for comment at press time. Meanwhile, Richard Pierce, the attorney for the Santos’, said the couple’s not guilty plea will “speak for itself.” Villagomez’s attorney, David Lujan, has declined to comment on the case.