Former Hidalgo school finance director allegedly stole $111K from district

EDINBURG — The Hidalgo school district’s former finance director faced allegations Friday that she stole $111,100 in tuition money before it could get to the district’s coffers.

Hidalgo County sheriff’s deputies launched an investigation into the alleged theft by the public servant in July, after Hidalgo school officials learned the tuition money had been collected but was missing from the district’s coffers.

Witnesses told investigators Ruiz personally collected the tuition money — charged to students who do not live in the Hidalgo district, typically in Mexico — and would not allow other finance department employees to deposit it into the district’s bank account, Hidalgo County Sheriff Lupe Treviño said.

“Nobody was to take in any money except for” Ruiz, he said. “When people inquired about tuition, employees were always instructed that they would only accept cash.”

Copies of tuition payment receipts revealed to investigators that Ruiz collected $111,100 that remains lost, deputies said.

Auditors confirmed that money was never deposited with the district, investigators said. Where it was spent remains unclear.

‘ABANDONED HER POST’

Sheriff’s deputies launched the investigation into Ruiz’s alleged theft July 19, when they received a letter from a law firm retained by the district asking the sheriff’s public integrity unit to launch a probe into Ruiz’s suspected misconduct.

Two days later, on July 21, sheriff’s investigators obtained a preliminary offense report alleging the theft from Alvin Samano, the Hidalgo school district’s assistant superintendent for human resources.

Samano reported that $111,100 in tuition payments had been collected but were not accounted for, deputies said.

Investigators asked Ruiz to turn over her tuition payment receipt books, but she left in the middle of the day and never produced the book, deputies said.

“She never went back to work,” Treviño said. “She abandoned her post. I’m sure she destroyed the (tuition) voucher book.”

Hidalgo school district spokeswoman Jennifer Villarreal said Ruiz was dismissed from her position prior to the fall 2010 school year. Treviño said she never returned to work when asked to produce her tuition receipt ledger.

On July 30, deputies obtained a statement from district Superintendent Edward Blaha, asking to file charges against Ruiz.

Investigators spent more than four months building their case and received an arrest warrant for Ruiz on Tuesday, but could not locate her at her Mercedes home, or at relatives’ properties in Brownsville and South Padre Island, the sheriff said.

“When it came time to arrest her, she was obviously hiding out,” Treviño said.

About 4:55 p.m. Thursday, CBP officers encountered Ruiz as she attempted to cross north at the Progreso International Bridge. A national warrant database flagged Ruiz, who was detained and turned over to sheriff’s deputies.

HOME IMPROVEMENT?

Investigators still do not know what motivated Ruiz to allegedly steal the six-figure sum from students’ families, Treviño said.

Hidalgo County Appraisal District records show Ruiz built a 1,512-sq. ft. addition at her family home at 248 N. Missouri Ave., Mercedes. Together the brick structure and the separate .14-acre lot where it sits has an assessed value of $73,250.

Treviño said he could not confirm whether investigators believe the allegedly stolen tuition money paid for the improvements at Ruiz’s home. But he did say that investigators continue to try and identify where the money was spent, which would lead to money laundering charges filed against Ruiz.

“If she deposited the money, expended it on anything, if she tried to convert it into another type of tender — that will constitute money laundering,” the sheriff said.

Attempts to reach anyone at Ruiz’s house Friday were unsuccessful, as were attempts to reach Blaha, the district superintendent.

Exactly when school officials first learned of the $111,100 in missing tuition money remains unclear.

In a statement, the Hidalgo district wrote it “can not comment on any issues” concerning Ruiz, because it is a personnel matter and the pending criminal investigation.

POSSIBLE LIFE SENTENCE

With her long black hair covering the sides of her face, Ruiz said nothing at her arraignment hearing Friday morning at the Hidalgo County Jail.

Handcuffed and clad in an orange jail jumpsuit, Ruiz listened as Hidalgo County Justice of the Peace Bobby Contreras formally charged her with theft by a public servant. Bond was set at $250,000.

Ruiz told the judge she already retained legal representation, but did not identify from which firm.

Because of the amount allegedly stolen, Ruiz could receive a life prison sentence and up to a $10,000 fine if she’s convicted.

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Jared Taylor covers courts, law enforcement and general assignments for The Monitor. You can reach him at (956) 683-4439.