Handy, three others charged in ongoing public corruption probe

McALLEN — A six-count federal indictment against Hidalgo County Commissioner Sylvia Handy is only the "tip of the iceberg," law enforcement officials said.

FBI agents arrested the embattled elected official and her husband at their Weslaco home Thursday morning, alleging they paid two women - both of them illegal immigrants - to work as servants using taxpayer funds.

Prosecutors accuse the pair of women of providing child care and housekeeping services to Handy's family while collecting county paychecks under assumed identities over a period of five years.

But authorities close to the case said their initial probe into the 52-year-old commissioner's hiring practices has since spawned separate investigations into allegations of witness tampering, bid-rigging and kickbacks involving county contracts.

Further state and federal indictments are expected against the commissioner and other alleged accomplices, they said.

"The government will be seeking a superseding indictment that will increase Ms. Handy's exposure before this case goes to trial," Assistant U.S. Attorney Daniel C. Rodriguez said.

Handy's camp denied any wrongdoing outside of McAllen's federal courthouse Thursday afternoon, suggesting that federal agents had been duped by political operatives looking to wreck her career.

"I just ask that all my constituents have faith in me," she said, refusing to discuss specific allegations. "I'm going to continue working the way I've been working, and I'll have my day in court."

COMPLEX SCHEME

The detailed, 70-page indictment outlines a complex scheme in which the commissioner's personal staff assumed numerous fake jobs in her office, collected county paychecks and received retirement contributions, sick time and vacation leave.

Money paid to them for their fraudulent jobs went toward their living expenses and regular payments on a $53,000 loan Handy took out to purchase a parcel of land in Mercedes in July 2004, the document states.

In all, the four named defendants are accused of bilking the county of out of more than $111,000. The other three are:

>> Handy's 35-year-old husband, Juan Gabriel Espronceda.

>> One of the so-called "phantom employees," Maria de los Angeles Landa de Hernandez.

>> Eloisa Andrade Uriegas, a U.S. citizen and McAllen school district employee who allegedly allowed the commissioner to use her identity to hire an illegal immigrant.

The indictment also identifies another immigrant woman - Adelina Viveros Contreras - who purportedly participated in the scheme but was not named as a co-defendant in the case. Federal prosecutors did not return calls Thursday afternoon to comment on her status in the investigation.

According to court documents, Handy first directed her human resources staff to fill out fraudulent job applications in 2001 for the two illegal immigrants she had hired to work as housekeepers and babysitters.

On paper, both were employed under assumed names as maintenance workers, but prosecutors allege neither did any actual county work for the thousands of dollars in pay and benefits they received between 2001 and 2006.

Before granting the positions to her household help, the commissioner conducted sham interviews with legitimate candidates, the documents states.

Hernandez, who purportedly worked for the commissioner for the full five years, also received promotions, used her salary to make regular $600 payments on Handy's Mercedes land loan, and resigned and was rehired under a number of fake and real identities, including Uriegas', prosecutors said.

Hernandez finally gave up her position in January 2006, just over a year before a county audit first raised questions about payroll practices in Handy's office.

Handy's attorney, Ralph Martinez, conceded Thursday that his client had employed both women in her home and helped them to obtain county jobs after they left her personal employment. But he insisted she never had any knowledge of their immigration status.

Blame for any work they did or didn't do for the county should fall on the shoulders of their direct supervisors in the Precinct 1 office, he said.

"She was duped much like other county officials," he said. "She confidently asserts her innocence and will put on her battle gear to fight these charges."

‘TOTAL SURPRISE'

The commissioner has consistently denied any wrongdoing and reacted to the indictment unsealed Thursday with her usual aplomb. She called her arrest a "total surprise."

During her first appearance in federal court, Handy initially appeared distraught and answered U.S. Magistrate Judge Peter Ormsby's questions in clipped and concise tones. U.S. Marshals ushered her before the judge in a wheelchair, to which she has been confined since an earlier ankle injury.

But by the time Handy exited the courthouse on bond just after 6 p.m., her mood appeared to have lightened considerably. She said she was relieved to return home to her children after what she described as a long day.

Handy waved to onlookers, flashed a smile and bade them goodbye as a friend drove her away in an awaiting car.

Across the county, the allegations sent tongues wagging among political watchdogs and government employees, who have been eyeing her activities closely since the Hidalgo County Sheriff's Office and the FBI first began investigating Handy two years ago.

At her offices in Weslaco, Chief Administrator Joseph Palacios met with department heads and instructed them to continue with day-to-day operations as normal.

"They know they should stay mindful of the work that's at hand out of respect for the commissioner," he said. "We have a job to do."

Hidalgo County Judge J.D. Salinas said he would wait for the case to proceed through the court system before making any comment on the arrest.

"My office is cooperating with federal authorities and will guarantee that all vital public services for the families of Precinct 1 continue," he said.

‘I BELIEVE HER'

Handy and Espronceda, her husband, now face multiple counts of conspiracy and harboring an illegal immigrant, crimes punishable by up to 10 years in prison and $250,000 in fines.

Should they be convicted, she could also lose thousands of dollars in property the government is seeking under criminal forfeiture laws.

The indictment identifies both Handy's spacious Weslaco home and the Mercedes property she allegedly paid off through fraudulent hiring as eligible for seizure.

Handy became the first woman elected to the Hidalgo County Commissioners Court in 1996 and remains the longest-serving member of the body. She won re-election to a fourth term in November with more than 60 percent of the vote even under the shadow of the ongoing investigation.

The commissioner said Thursday that she planned to return to work this morning and would continue in her office as long as she was able. Should she be convicted, she could be forced out.

"She intends to keep her job," said Martinez, her attorney. "I've looked at some of the evidence, and there's no reason for her to resign. I believe her when she says she's innocent."

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Jared Janes covers Hidalgo County government, Edinburg and general assignments for The Monitor. He can be reached at (956) 683-4424. Jeremy Roebuck covers courts and general assignments for The Monitor. He can be reached at (956) 683-4437.

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THE DEFENDANTS:

SYLVIA SUE HANDY-ESPRONCEDA

>> Hidalgo County Precinct 1 Commissioner

>> Pleaded not guilty Thursday to three counts each of conspiracy and harboring illegal immigrants

>> Released Thursday afternoon on a $100,000 uncertified bond

>> Next court date on May 1

JUAN GABRIEL ESPRONCEDA

>> Handy's husband

>> Charged with one count each of conspiracy and harboring illegal immigrants

>> Remains in the custody of U.S. Marshals

>> Set to enter a plea at a hearing Tuesday

MARIA DE LOS ANGELES LANDA DE HERNANDEZ

>> One of Handy's alleged "phantom employees"

>> Charged with three counts each of conspiracy and harboring illegal immigrants

>> Released Thursday afternoon on a $50,000 uncertified bond

>> Set to enter a plea at a hearing Tuesday

ELOISA ANDRADE URIEGAS

>> A U.S. citizen who allegedly allowed "phantom employees" to use her identity to seek county work

>> Charged with one count each of conspiracy and harboring illegal immigrants

>> Released Thursday afternoon on a $50,000 uncertified bond

>> Set to enter a plea at a hearing Tuesday