Former Rey Feo, family members plead guilty in million-dollar housekeeping scheme at Army hospitals, medical centers
SAN ANTONIO – Three members of a San Antonio family, including a former Rey Feo, have pleaded guilty to federal charges in connection with a million-dollar housekeeping scheme at Army hospitals and medical centers.
Kenneth Flores, Christopher Flores, Antonio Flores Jr. and Irma Flores were indicted ON wire fraud and money laundering charges.
Kenneth, Christopher and Irma Flores all pleaded guilty to conspiring together to defraud the United States by eliminating competition and fixing contract awards and prices for housekeeping and janitorial services at Army hospitals and medical centers, according to a news release from the U.S. Attorney’s Office.
Antonio Flores Jr., a former Rey Feo, had his charges dismissed.
Ken Flores was named Rey Feo in 2018, according to the San Antonio Report. KSAT has reached out to the Rey Feo Consejo Education Foundation for comment.
The suspects fixed housekeeping and janitorial service contracts with government employees Karisa Waysepappy Kelley and John Jordan “Chip” Mathes in exchange for bribes and kickbacks, according to the U.S. Attorney’s Office.
The scheme eliminated their competition, and in return, they received contracts worth millions of dollars for housekeeping and janitorial service contracts at the hospitals and medical centers, the release adds.
The U.S. Attorney’s Office said Christopher Flores’ company, Alliance Supply, paid $216,719.46 to Mathes’ company, C&S Consulting.
“From Feb. 21, 2019, until July 17, 2020, Alliance Supply paid Kelley’s company Waysepappy Consulting $57,906.50,” the U.S. Attorney’s Office said.
Irma Flores was the bookkeeper for Allegiance Environmental Services, which operated under Alliance Supply and was owned by Kenneth Flores, federal officials said.
Christopher and Irma Flores each pleaded guilty to one count of gratuity paid to a public official. Their punishment carries a maximum penalty of two years in prison.
Kenneth Flores pleaded guilty to one count of conspiracy to defraud the United States. His punishment carries a maximum of five years behind bars.
The family members are scheduled to be sentenced on Nov. 27. They have also agreed to pay restitution totaling $3.7 million.
Mathes and Kelley had pleaded guilty previously in February.
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