Cameron County auditor arrested

BROWNSVILLE — Longtime Cameron County Auditor Mark Yates spent a few hours in a county jail cell on Monday following his arrest on a charge that he violated the competitive bidding process for an insurance contract.

Yates was required by law to get approval of the Commissioners Court before renewing the contract at a premium.

Yates was arrested without incident shortly before 4 p.m. Monday at his office inside the Cameron County Courthouse on East Monroe Street.

He was taken by sheriff’s deputies to the Carrizalez-Rucker Detention Center in Olmito.

Wearing an orange county inmate jumpsuit and beige sandals, Yates was arraigned Monday evening before Justice of the Peace Linda Salazar on a count of violating the competitive bidding process.

He was given a $2,500 personal recognizance bond and was expected to be released from the detention center later that evening.

Israel Cano, Yates’ attorney, declined comment.

The contract in question is a $1 million policy with United of Omaha Life Insurance.

Under government rules, only contracts $25,000 and under may be renewed without soliciting bids. Contracts greater than $25,000 must go through the competitive bidding process, District Attorney Armando Villalobos said.

Authorities said the unauthorized renewal of the insurance contract is costing county taxpayers an extra $600,000.

“It is quite a bit of money that we are alleging that is costing the county more by this renewal,” Villalobos said.

‘The allegations are that (Yates) was told by Commissioners Court several times” to seek bids, but “he just renewed it on his own,” Villalobos said.

Villalobos said the County’s Civil Legal Division requested the District Attorney’s Office review the contract renewal.

He said the charges are merely allegations and that authorities will continue to investigate the case including the insurance brokers involved.

He stressed that Yates did not receive any kickbacks for renewing the contract.

The offense is a Class B misdemeanor punishable by up to 180 days in jail and a fine of up to $2,000. Yates would also be unable to work for any government agency for the next 10 years if found guilty of the offense, Villalobos said.

When presented to a Cameron County grand jury for review, a visiting judge must preside since Yates works for the county’s State District Judges.

State District Judge Benjamin Euresti Jr., who leads the State District Judges, could not be reached for comment on Monday.

County Judge Carlos H. Cascos said he had heard something involving the county’s insurance premium contract was being reviewed, but didn’t know to what extent and the circumstances of Yates’ arrest.

“Nothing that happens in Cameron County shocks me anymore. I don’t know really what happened, how it happened and why it happened. We just have to let the justice system take its course.”

Precinct 3 Commissioner David Garza said Yates’ arrest is, “unbelievable. Of all county employees, he would be the least I would think would be arrested. But as I’ve told you before, nothing surprises me in county government anymore.”

Garza pointed out that Commissioners Court has been discussing the request for a proposal situation for months, having openly long discussions and trying to remedy any defects or problems.

“This is a complete surprise,” Garza said.

The contract renewal came to light in December after county commissioners questioned why the annual insurance premium contract was signed without being approved by Commissioners Court.

Then-County Judge Gilberto Hinojosa questioned why his office didn’t receive the information.

Carey S. Malek, of United of Omaha Life Insurance, said he had e-mailed Yates and County Personnel Director Manuel Villarreal about the increase.

Yates acknowledged receiving the e-mail while Villarreal said he never received it.

Yates signed the acknowledgement form in October to indicate the county was aware of the increase. He said the county’s policy with the insurance company renews automatically every fiscal year.

Yates said the insurance policy and increase had been effect for 90 days by the time he received the renewal form.

“We had to act accordingly to keep our policy in place,” Yates said in December. “If we failed to pay, then we are subject to cancellation.”

Malek reiterated Yate’s statement, saying the county has an “evergreen clause,” which means the policy is automatically renewed unless it is notified otherwise.

Yates has served as County Auditor since Sept. 20, 1993, according to the county’s personnel department. The County’s State District Judges appointed him to the position.

It is unclear whether Yates will continue to work for the county or be placed on administrative leave. The decision is to be made by the District Judges.