Friday, July 27, 2012

by GAILANN JAROCKI

A federal grand jury returned indictments today against former Cook County Commissioner Joseph Mario Moreno, former Chicago Alderman Ambrosio Medrano, and six others that mirror the charges filed last month in criminal corruption schemes complaints. Today's indictment included a new defendant, Ronald Garcia, 53, of Lockport, owned and operated Chicago Medical Equipment & Supply Co., which was certified by Cook County as a minority business enterprise (MBE). Garcia, charged for the first time, allegedly engaging in an extortion scheme with Moreno during his tenure as an elected public official.

Between March 2008 and July 2009, Moreno and Garcia allegedly conspired to extort a company that won a county contract to force it to use Garcia’s company as a minority subcontractor.

The new allegations state that Garcia provided Moreno and his wife with a $100,000 home mortgage loan in July 2007. In November 2007, Cook County requested bids on a contract to assist county health facilities in reducing costs and increasing revenue. Company A submitted a bid that proposed using Garcia’s Chicago Medical company as a minority subcontractor, which was supported by Moreno. Company B submitted a bid that proposed using minority subcontractors but did not include Chicago Medical.

Moreno and Garcia allegedly schemed to use Moreno’s influence as a commissioner to take actions adverse to Company B’s attempts to obtain and maintain the county contract unless Company B used Chicago Medical as a subcontractor for that contract. During the time that Moreno allegedly was pressuring Company B, Garcia released the $100,000 mortgage even though Moreno had not fully repaid the loan. As a result of Moreno’s and Garcia’s actions, Company B paid Chicago Medical approximately $460,000, according to the indictment.

The indictment seeks forfeiture of approximately $100,000 from Moreno and approximately $460,000 from Garcia. The public is reminded that indictments contain only charges and are not evidence of guilt.

A second, single-count indictment was also returned today against Medrano, James Barta, 70, of Fremont, Nebraska; and Gustavo Buenrostro, 49, of Arlington Heights, charging them each with conspiracy to commit bribery. Barta, the president and owner of Sav-Rx, a Fremont, Nebraska-based national provider of managed care prescription medication services; and Buenrostro, an associate of Barta and former employee of Sav-Rx, were also released on bond following their arrests. This indictment alleges that the defendants conspired to bribe an undercover FBI agent and a fictitious official of the “County A” hospital system; with Barta allegedly making a $6,500 payment to the undercover agent last month; to do business with Sav-Rx. Medrano, Barta, and Buenrostro will be arraigned on dates to be determined in this case.