A former Liberty County Judge and Commissioner, along with a business owner, have been indicted in a Hurricane Ike fraud scheme by a federal grand jury.
Former judge John 'Phil' Fitzgerald, 51, former commissioner Herman 'Lee' Groce, 62, and Mark Wayne Miksch, 52, were listed in a 25-count indictment on Wednesday. A summons has been issued to all three men and they are scheduled to make their initial appearances Feb. 1 before U.S. Magistrate Judge Earl S. Hines.
After Hurricane Ike made landfall in southeast Texas on Sept. 13, 2008, Fitzgerald and Groce, who served as Liberty County Precinct 2 Commissioner, used their elected positions to influence and award debris removal contracts to a company in exchange for sub-contracts to be awarded to Miksch's business, according to the indictment. Miskch is Fitzgerald's brother in law.
Fitzgerald, according to the indictment, received more than $600,000 in "kickbacks" accounted for as legitimate business transactions. He has also been charged with "unauthorized use of a 155 kilowatt generator," which was purchased by and for the benefit of Liberty County and then reimbursed by FEMA. Fitzgerald is "alleged to have commandeered and used the generator" to power Fitzpak, a convenience store and gas station in Moss Hill that he owned and operated.
The alleged conspiracy resulted in more than $3 million in debris removal contracts fraudulently awarded by Fitzgerald and Groce in violation of state and federal laws.
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