United States Attorney
Northern District of Texas

1100 Commerce St., 3rd Fl.
Dallas, Texas 75242-1699

Telephone (214) 659-8600
Fax (214) 767-0978

Former FWISD Official and Contractor
Agree to Plead Guilty to Federal Charges

United States Attorney Jane J. Boyle announced that Fort Worth, Texas, residents, Tommy E.T. Ingram, age 54, and Raylate Brooks, age 57, have each agreed to plead guilty to one count of mail fraud on the Fort Worth Independent School District (FWISD) and one count of subscribing to a false tax return, as charged in an Information filed today in United States District Court in Fort Worth.

They each face a maximum sentence of eight years imprisonment, a $350,000.00 fine and restitution. They are each scheduled for Initial Appearance before the Honorable United States Magistrate Judge Charles Bleil this afternoon at 2:00 p.m., in United States District Court in Fort Worth. They will be arraigned by the Honorable United States District Judge John H. McBryde at a date that will be set this afternoon at the Initial Appearance.

The government contends that Ingram and Brooks' scheme resulted in a loss to the FWISD of approximately $10,000,000.00. The investigation remains ongoing.

U.S. Attorney Boyle said, "The corrupt actions by Ingram and Brooks as described in the Information, reflect our collective worst nightmare about what happens when the wrong people are placed in positions of trust within our school districts. The message from this prosecution is clear: The financial integrity of our school systems will not be compromised--by anyone."

Guadalupe Gonzalez, Special Agent in Charge, Federal Bureau of Investigation, said, "The Information filed today is proof that the FBI will continue to work with the U.S. Attorney's Office in pursuit of public officials who mishandle or abuse public funds intended for our schools."

From 1995 until February 1998, Tommy E. T. Ingram was Assistant Athletic Director of the FWISD and from February 1998 through 2000 was Director of Maintenance for the FWISD.

From approximately 1991 through 2000, Raylate Brooks held the Unit Price Concrete Contract with the FWISD. This was a contract issued by FWISD each year to the low bidder to perform concrete/asphalt work for the FWISD at fixed unit prices contained in the contract. Brooks operated Brooks Contractors, Inc., primarily for this purpose and also acquired, during this period of time, Goldstar Concrete Inc., to produce concrete for sale and use on FWISD jobs.

From 1991 through 2000, when the FWISD needed non-competitive bid small jobs of concrete or asphalt performed on school properties, the Unit Price Concrete Contractor, Brooks Contractors, Inc. - Raylate Brooks, was contacted to meet an FWISD maintenance official at a school property to identify to Brooks the scope of concrete work needed. Most of the work was sidewalks connecting buildings, pads for temporary buildings, removal of concrete or asphalt pads for relocation of temporary buildings, additions of concrete for walks or drainage to improve student movement on campus, and improvement of student athletic facilities. The maximum amount for jobs covered by the unit price contract changed from $10,000.00 in 1992 to a "not to exceed" price of $25,000.00 in 1998.

When Raylate Brooks met with an FWISD official to identify the scope of work needed under the Unit Price Concrete Contract, Brooks would measure the concrete or asphalt necessary, and the excavation and haul necessary, to prepare and clear the work site. He would also measure the dimensions of concrete walks, curbs or gutters needed and then write a statement of the volume of work needed multiplied by the Unit Price Contract price for each category of work. This statement-proposal was given to the FWISD and used to create a purchase order issued to Brooks and his company Brooks Contractors, Inc. Then, after the work was performed, Brooks prepared an invoice or application and certification for payment, which duplicated the purchase order descriptions and prices of work, and submitted the application and certification for payment to the FWISD Maintenance Department for approval and payment.

At some point in the early to mid-1990's, FWISD personnel improperly began using the Unit Price Contract system with Brooks not only to do the small concrete/asphalt jobs it was designed for, but to also use this system to get around the competitive bid process for major concrete and construction projects costing up into the millions of dollars. For these large projects Brooks would also quote a price for the entire job and, if accepted, be instructed to break the agreed on price down into increments less than $25,000.00 so that individual purchase orders could be generated by the district purchasing office for amounts under $25,000.00. The Maintenance Department forwarded to the FWISD Purchasing Department approved applications and certifications and FWISD then mailed checks to Brooks and Brooks Contractors, Inc., in payment for the approved applications and certifications for payment.

In 1995, Tommy E. T. Ingram met Raylate Brooks at an FWISD athletic field to identify certain concrete work needed by the FWISD. Ingram was experiencing financial problems meeting his credit card debts. Ingram asked Brooks if they could add several thousand dollars to the job to generate extra money. Brooks agreed to do this and to split this money with Ingram.

The charges against Brooks and Ingram state that from 1995 to mid July 2000, they intentionally schemed to defraud the FWISD of millions of dollars based on the submission by Brooks and approval by Ingram of fraudulent statements of work, purchase orders, applications, and certifications for payment, and their receipt of FWISD checks which they divided in various ways. As part of the scheme, Ingram would meet Brooks at a school property ostensibly to identify needed concrete or asphalt work. Ingram and Brooks agreed on an amount of money to falsely add to and inflate the statements of work, purchase orders and invoices. From 1995 through 2000, approximately $24,000,000.00 of invoices and applications and certifications for payment were paid by FWISD and mailed to Raylate Brooks at his Brooks Contractors, Inc., business location in Fort Worth.

In February 1998, when Ingram was promoted to the FWISD Maintenance Department as Director of Maintenance, Brooks' and Ingram's scheme grew. Brooks submitted and Ingram approved fraudulent statements of work, purchase orders, and invoices for false, fictitious and fraudulent amounts of excavation and haul, concrete walks, curbs, gutters, earth moving, concrete pump trucks, jackhammer operations, city permits, tree and stump removal, and other units of work not performed under the FWISD Unit Price Concrete Contract. On some occasions Ingram and Brooks caused purchase orders to be issued and applications and certifications for payment paid where no work was performed at all. These payments were split 50/50 between Brooks and Ingram after Brooks cashed the FWISD checks which he received by mail. These transactions were in amounts as high as $100,000.00. A series of four or five false invoices were submitted to the FWISD in amounts close to $24,990.00 until they obtained the desired amount of money from the FWISD.

Brooks would give Ingram his portion of the fraudulently obtained FWISD monies at a meeting at a school job site and would hand the money to Ingram in a newspaper or paper sack. In one instance, on September 24, 1999, Brooks and Ingram caused an envelope with an FWISD check payable to Brooks Contractors, Inc., in the amount of $605,672.50 to be placed in an envelope by the FWISD addressed to Brooks Contractors, Inc., 4605 Miller Avenue, Fort Worth, Texas, 76119, and the check was delivered by the U.S. Postal Service to that address. That check was in payment by the FWISD for false and fictitious purchase orders and applications and certifications for payment for material and work represented to have been provided at Arlington Heights High School, The Outdoor Learning Center, Billingsley Field, Eastern Hills High School, Southwest High Schools, Oakhurst Elementary, Magnolia Building Accelerated High School, Meadowbrook Elementary, Eastland Elementary, Springdale Elementary, Shotts Street Administrations Building, and FWISD Transportation Facilities.

The information charges Ingram with knowingly failing to report $572,000.00 in income on his 1998 joint federal income tax return which were funds stolen from the FWISD. Brooks was charged with knowingly failing to report $2,060,311.00 in income, which funds were stolen from the FWISD, from his 2000 corporate federal tax return which resulted in a tax loss to the Internal Revenue Service of more than $700,000.00.

Oscar Villanueva, Inspector in Charge of the U.S. Postal Inspection Service, Fort Worth Division, said, "As long as there are individuals who use the U.S. Mail to defraud the public, especially officials who misappropriate funds intended for the education of our children, the U.S. Postal Inspection Service will vigorously investigate and bring to justice those responsible for violating the public trust."

Michael Lacenski, Special Agent in Charge of the Dallas Field Office of the Internal Revenue Service, Criminal Investigation, stated, "Crimes committed by public officials violate the public trust. These officials must comply with the same tax obligations as the citizens they serve. No one is above the law!" Mr. Lacenski continued, "The Internal Revenue Service will vigorously investigate all allegations of public corruption and tax fraud."

U.S. Attorney Boyle praised the investigative efforts of the Federal Bureau of Investigation, the IRS-Criminal Investigation, and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Ronald C.H. Eddins.

Information in this press release is disclosed pursuant to agreements with the defendants and their counsel.

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