City alleges it was overcharged millions on office supplies from Office Depot

HOUSTON (KTRK) -- The city of Houston says a store you've likely shopped at bilked the city out of millions of your tax dollars. An audit released late Friday afternoon accuses Office Depot of overcharging city taxpayers for more than 4 years.

In all, the city says it was overcharged more than $6 million and there's suspicion the overcharging was no accident.

This is the latest in a string of complaints against Office Depot. Cities across the country have alleged similar overcharging. Much of it first brought to light by a former Office Depot employee who's notified cities across the county of potential problems -- issues now confirmed by the city of Houston.

Who would think that a few cents here on paper, and a few cents there on pens or cartridges or tape, would somehow add up to millions and millions of dollars? City of Houston Controller Ronald Green does.

"This wasn't nickels and dimes on Office Depot's part?" we asked Green.

"Not at all," he replied. "We think an upwards of $6.5 million, on the high end."

According to the audit, thousands of supplies had no price on city invoices from Office Depot; other items had prices that changed without reason; and some items were delivered to the city without the proper discounts applied.

It was so frequent and so widespread that, Green says, there's no way it was an accident.

"It opened up the door really for a lot of fraud, if you will," Green said.

"That's a strong word," we said.

"And I think it is," Green said. "I think someone knew what was going on here."

"And they made a lot of money of the taxpayers of Houston?" we asked.

"They made a lot of money," he said.

Here is just one of the irregularities the city auditor found: The first time the city bought easel pads, it paid $7.50 under this Office Depot contract. Then the auditor says the price climbed to $31.49, then dropped down to $30.99, and then back again to $7.50, before climbing again to $30.99 toward the end of the contract. All the price change were without explanation, says the auditor, and while the city should've been getting the cheapest price available.

"The vendor should be successful and make money, and we're for that. But the whole thing should be clear, it should be up front and then it should be honored," city of Houston auditor Dave Schroeder said.

Houston is far from the only city alleging overcharging by Office Depot.

According to government audits available online and press reports nationwide, Dallas settled with the company for $1.7 million, Florida for $4.5 million; Phoenix says it was overcharged by $5.3 million, while San Francisco alleges $4.25 million. Add in some other smaller cities and the alleged nationwide overcharges easily top $16 million nationwide.

Now Houston wants cash, too.

"I think that there is some nefarious intent on the side of Office Depot. We've been shown that by the way they've responded to us and not being transparent in providing information," Green said.

In a written reply to the Houston audit, Office Depot denies the charges and challenges the way the audit was conducted. The company says:

"The City of Houston auditor's assertion that the City was entitled to certain additional discounts is simply wrong. The auditor's report rehashes old claims originally made by a disgruntled former employee, that are based on inaccurate legal interpretations of Office Depot's former contract that the City was not a party to and which contract expired at the end of 2010.

"These very claims were considered and expressly rejected by the Florida Attorney General's office back in 2010, after it conducted a two-year investigation into the same allegations. Office Depot cooperated with the City of Houston's auditor and appreciated the City's patronage of Office Depot on the contact."

(Copyright ©2012 KTRK-TV/DT. All Rights Reserved.) Get more In Focus »

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Car smashes into dental office in NW Harris County

SkyEye 13 HD was over a dental office in northwest Harris County where a car crashed into the building

  SkyEye 13 HD was over a dental office in northwest Harris County where a car crashed into the building.

It happened at Oral Dental Cares on FM 1960 at Steepletop just before 10am Thursday. The crash left a giant hole in the building. The car was quickly removed.

There's no word on the cause of the crash, but deputies say there were no injuries.

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Harris Co. Attorney to testify before grand jury investigating possible wrongdoing inside Victor Trevino's office

HOUSTON (KTRK) -- There's a surprise in that criminal probe of Victor Trevino's constables office.

Through our sources, 13 Undercover has learned the grand jury has now subpoenaed the testimony of another high-ranking public official. It's Harris County Attorney Vince Ryan. He's been told to appear Friday morning under oath. What we don't know is what the grand jury wants to ask the guy elected to be the county's ethics watchdog.

Just last week, 13 Undercover had tough questions for the County Attorney Vince Ryan.

"Is the end game protecting Victor Trevino?" we asked Ryan.

"Of course not," he said.

Now sources tell us the grand jury probing the constable has questions for Mr. Ryan too.

"The bottom line is you ran for public office as the ethics watchdog for this county," we told Ryan.

"I think the ethics are being much more cautiously observed by county officials," he said.

But we've been fighting for months for the voters' right to know.

Documents we have show Ryan's office had about reports of mismanagement and possible criminal wrongdoing in Precinct 6 months before the May primary. There was even a final internal investigative report done by this county lawyer for Vince Ryan. But the watchdog won't make it public. Trust me, we've tried to get it.

"You issue your Doug Ray document in its entirety and let the public see everything Vince Ryan knew before the election, that he didn't think the voters had a right to see," we told Ryan.

"I think that would be inappropriate," Ryan said.

"Really?" we said.

"Yes it would."

"You could do it tomorrow," we said.

Emails from Ryan's office acknowledge at least some of the revelations could be "the source of high embarrassment" and "black eyes for the justice system."

Ryan says he has a right to keep what he learned a secret because he's the county's lawyer, even from the county judge. Trevino was re-elected in May. Now it's Ryan who faces voters in November.

"He covered up wrongdoing that he was aware of and chose to look the other way. Instead of being the watchdog that he should be, he's a lapdog," said Robert Talton, Ryan's opponent in the November election.

We don't know from our sources if Ryan has been told to bring the report he won't show you to show them. The county attorney says his office has done a lot to clean up the constables' operations; he has given some records to the DA but not the final report of his investigation.

Just last week it was Constable Trevino on the hot seat.

"Do you expect for there to be an indictment?" we asked attorney Chip Lewis.

"I don't think the grand jury will see anything on the lines of Constable Trevino personally enriching himself, but as they are still working through the process, we are not going to to comment on the issues before them," Lewis said.

We also know from the courthouse that a grand jury subpoena for a sitting county attorney is very rare. We will be watching the developments for you Friday morning.

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Harris Co. Sheriff's Office deputy indicted for possession, delivery of ecstasy tablets

Jesus Martinez, a Harris County Sheriff's Office deputy, has surrendered to federal authorities following the return of a federal indictment alleging he aided in the possession of a controlled substance, the U.S. Attorney's Office said.

  HOUSTON (KTRK) -- A Harris County Sheriff's deputy is off the job, accused of aiding in the possession and delivery of ecstasy tablets in the Houston area.

Jesus Martinez, of Humble, has surrendered to federal authorities following the return of a federal indictment that on or about July 23, Martinez allegedly aided others in the possession of MDMA, aka ecstasy, a schedule I controlled substance.

Harris Co. Sheriff Adrian Garcia released a statement Friday which read in part, "Every single one of the employees at the HCSO is expected to obey the law and play by the rules. If an employee becomes involved in criminal behavior then they should know that we will do everything in our power to make sure we find them the jail cell they deserve. Mr. Martinez owes an apology to his colleagues, his coworkers, and the residents of Harris County... His actions have tainted the good work of our deputies who risk their lives every day to keep Harris County safe."

Martinez, 30, had been employed with the HCSO since 2007 and was assigned to the patrol bureau.

If convicted, he faces up to 20 years imprisonment as well as a $1 million fine.

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Murder convict's lawyer calls DA's office 'schizophrenic'

HOUSTON (KTRK) -- A convicted killer's legal team convinced a judge Wednesday to listen to new evidence, and weeks ago convinced the Harris County district attorney to hire a special prosecutor.

With those two wins in their pocket, David Temple's legal team now wants the DA's office thrown off the rest of the case entirely. It's the latest move in an effort to get Temple out of prison after he was convicted of murdering his wife, Belinda.

This, by now, is a 13 and a half year old murder case. But the alleged new evidence was apparently just discovered this summer. And on Wednesday, the defense team called the DA's office "schizophrenic" and tried to convince a judge to move the DA's office and all its case knowledge off the case.

For convicted killer David Temple's family this is about one thing -- "Freedom," as Temple's mother said as the elevator door closed.

"David Temple has been in prison for five years and he's an innocent man," said Dick DeGuerin, Temple's lawyer.

That's not what a jury said five years ago. And it's not what Belinda Temple's still grieving brother says now. We reached him by phone from north Texas.

"David Temple was found guilty and he needs to stay in the penitentiary for the rest of his life," Brian Lucas told us.

But Dick DeGuerin wants David Temple out now, and he's closer to that wish now than he's ever been. DeGuerin, Temple's original defense lawyer, assembled a team for this latest appeal that includes a former Harris County homicide chief who took the new evidence to an old colleague at the DA's office. Weeks later, the DA agreed to hire a special prosecutor. According to two DA sources, this is the first time DA Pat Lykos has ever done that during her four years in office.

"My role is as an outside, if you will, investigator," said special prosecutor Brad Beers.

And while that special prosecutor investigates the alleged new evidence and possibly charges two teenage burglary suspects with murder, DeGuerin Wednesday asked a judge to order the entire DA's office off the case, saying it can no longer be impartial. DeGuerin's team though would still be allowed to talk to the special prosecutor.

"I think the special prosecutor becomes an arm of the defense team," said Paul Doyle, Temple's lawyer.

The judge didn't rule on DeGuerin's request. All this is very different from virtually every other murder case ever tried in this courthouse. And this new path leaves the victim's family feeling trapped.

"I wish some day this would all just go away, this would end for the family. But I don't think it ever will," Brian Lucas said via phone.

The DA's office issued a statement late Wednesday afternoon saying it is handling the case appropriately. They're standing behind the conviction in the appeals courts while at the same time employing that special prosecutor to question it. Dick DeGuerin calls it "schizophrenic." In their statement, the DA's office calls it the right thing to establish the truth.

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Harris Co. Sheriff's Office celebrating 175th anniversary with photo exhibit

  HOUSTON (KTRK) -- The Harris County Sheriff's Office is celebrating its 175th anniversary this year and you can take a look back at the history of the agency.

Sheriff Adrian Garcia Monday helped open a photo exhibit at the Houston Public Library Central Branch in downtown Houston. The exhibit includes photos of former Harris County sheriffs and the early years of the office.

One guest who enjoyed the exhibit is Deputy Douglas Hudson, who is serving in his 48th year with HCSO.

"The sheriff's department has come a long way. The history and the management of the department has come, the technology has grown, and trying to keep the streets safer for the citizens of Harris County," Dep. Hudson said.

The free photo exhibit will be on display through the middle of July.

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Anderson wants to bring integrity back to DA's office

HOUSTON (KTRK) -- Harris County will soon have a new District Attorney running the show after an election night stunner. Voters wanted change in the DA's office and decided to replace Pat Lykos. The vote turned out to be a landslide win for Republican challenger Mike Anderson.

Anderson does have another election to win in November and is not overlooking that. But he can't help but think ahead at least a little bit.

It was a quiet Tuesday night at Pat Lykos' election watch party.

"I just wasn't aggressive," she said.

Lykos, running for re-election, maintains she simply didn't work hard enough on politics to win the race.

"I was being a DA, not a politician," she said.

For Anderson, it was just the opposite.

"It's an honor to be standing in front of you," he said Tuesday night.

And on Wednesday we asked him to speak about the now defeated DA. We asked him what should the voters of Harris County thank Pat Lykos for?

"I think she came in at a time when the office was in real trouble and she did the best she could.I just don't think it worked out," said Anderson.

He will face a Democratic challenger in November, but if he wins he already has plans for immediate changes.

"First, I think it's important to get back integrity," Anderson said.

He wants to free up prosecutors to stop worrying about wins and losses and focus on justice, he will end the DWI divert program that pushes first-time offenders into treatment before trial, and stop the Lykos policy that prevented prosecutions of minor drug cases, even if it means an increased jail population.

"You don't make decisions based on jail population," he said.

The office is still under a special prosecutor's investigation over the now months-old grand jury probe and Anderson does not want to get in the way of it. However, he told us Wednesday he wants the probe to finish and if there was wrongdoing, for it to be punished.

It's not just philosophy he wants to change, he's already identified at least one member of the Lykos team not likely to be part of his office.

He does not see how Rachel Palmer, a prosecutor who took the Fifth during a grand jury probe, can continue if he takes over.

"I don't know how you can gain the public trust or regain the image you want to have in the public if you have someone in the office that the public believes committed a crime and just won't testify about it," Anderson said.

During the campaign, Anderson was accused of wanting to bring back a "win at all costs" DA's office. He doesn't agree and sees his brand of justice as a way to restore the integrity he wants crime victims and the accused to both see from the office.

"Take that oath for what it means and do justice. Justice sometimes means you dismiss a case, sometimes it means a guy gets the death penalty. It doesn't always mean either one. Everything is different and you have to have the freedom to use your experience to make the right call," he said.

We invited Pat Lykos to join us for an interview. She was at the office, but we were told she was too busy with work to conduct one.

(Copyright ©2012 KTRK-TV/DT. All Rights Reserved.) Get more Politics »

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DA's office still deciding about seeking death penalty against woman accused of killing new mom, kidnapping her baby

Verna DeAnn McClain allegedly kidnapped Keegan Schuchardt because she wanted to present him as her own baby following a miscarriage

  HOUSTON (KTRK) -- The Montgomery County District Attorney's office says it's still deciding if it will seek the death penalty against a woman accused of killing a new mother and kidnapping her newborn.

Verna McClain is accused of gunning down Kala Golden Schuchardt outside a pediatrician's office, then abducting her 3-day-old son back in April. Investigators believe McClain wanted to pass the baby off as her own.

The DA's office says it's going through all the evidence that's been gathered in this case and is almost ready to take it to the grand jury.

"At this point, we're convinced that she acted alone, that no other participants helped her out," said Assistant District Attorney Warren Diepraam.

The DA's office plans to decide on the death penalty issue in the next couple of weeks. They have 90 days to get the case to grand jury for consideration of an indictment.

(Copyright ©2012 KTRK-TV/DT. All Rights Reserved.)
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Activists arrested outside DA's office

  HOUSTON (KTRK) -- Local activist groups angry about the not guilty verdict of a former Houston police officer had a private meeting with the Harris County District Attorney this morning, but not everyone was happy about that.

The district attorney agreed to meet with some community leaders after hundreds showed up Thursday afternoon protesting that verdict for Andrew Blomberg. Things took a dramatic turn when some of the rally's organizers weren't allowed in that meeting.

"Come on let's go to jail. Come on please let's go," deputies said.

They're calling this arrest an act of civil disobedience.

"We're not resisting arrest," a demonstrator said. "We are not resisting arrest! Ouch!"

Three community activists blocked District Attorney Pat Lykos's lobby for nearly four hours, hoping to make a point about the not guilty verdict a jury gave former HPD Officer Andrew Blomberg this week.

Community activist Krystal Muhammad said, "She can come out and let us in. They can come out and let us in."

The protesters were hoping to be part of a meeting between the DA and several ministers discussing the criminal justice process after outrage broke out over the verdict exonerating Blomberg in the videotaped kicking and beating of Chad Holley. Holley, who was 15 years old at the time, was arrested for a burglary he was later convicted of.

Demonstrators chanted, "No justice, no peace!" No Justice, no peace!"

But tensions in the lobby escalated when members of the National Black United Front, New Black Panther Party and Occupy Houston showed up a few minutes late and weren't allowed to participate in the last 45 minutes of that hour-long meeting.

As the group took positions on the lobby floor, the district attorney appeared from another door.

"I'm asking you to leave now," Lykos said. "If you are sincere, schedule the meeting. Please leave."

At the same time several deputies gave the three protesters three warnings to leave.

"We will not be intimidated," Lykos said. "We will not be harassed. And we will not permit you to obstruct our office."

As the group ignored those warnings, they were each arrested for criminal trespassing.

Those arrested community activists are facing misdemeanor charges.

Pat Lykos issued the following statement: "As District Attorney, it is my duty to pursue justice under the law. The people must have trust and confidence in the legal system. My record clearly reflects that I listen to the people and have made remarkable improvements to the criminal justice system.

The ministers scheduled a meeting with me today. We met to discuss the law and the criminal justice process.

Later this morning, a group obstructed the lobby of the District Attorney's Office. Profane language was directed against the employees of this office. They were disruptive and impeded our work.

Should anyone wish to meet with me, there is an appropriate manner in which to schedule it. I expect people to treat the dedicated professionals in my office with respect.

I will not permit any group to occupy our office. I will not allow the administration of justice to be held hostage. I will not capitulate to threats.

I swore to uphold the Constitution, the laws of the United States and of the sovereign state of Texas. I live by that vow. The DA's Office is both sword and shield to defend and protect the people of Harris County. Justice and order are inextricably intertwined."

Blomberg is one of four officers charged in the 2010 beating case of burglary suspect Chad Holley. Blomberg had been accused of official oppressio. The beating took place in March of 2010 after the then 15-year-old Holley broke into a home and ran from police.

Surveillance video shows what happened when police caught up with him.

Several officers were reprimanded for the incident. Four officers were fired and charged in the case. Blomberg was the first to go to trial.

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Fire torches mail room, office at NW Houston apartments

  HOUSTON (KTRK) -- A fire at a northwest Houston apartment complex overnight may have started in the mail room.

It happened at the complex off Keith Harrow near Queenston. Firefighters tell us it started in a trash can in the mail room and quickly spread through the leasing office and clubhouse.

Several mail boxes were burned and the flames shot through the roof. No one was hurt.

Arson investigators are now looking into the fire.

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State fire marshal's office probing Houston firefighter's death

  HOUSTON (KTRK) -- The state fire marshal's office is now investigating the death of a Houston firefighter.

Daniel Search, 27, was at work at Fire Station 16 in the Montrose area on Friday. The next day, he was found dead at his home.

Search was a rookie firefighter, and his father told us his job was his passion.

The medical examiner has yet to determine how he died. The state fire marshal's office investigates all firefighter deaths to see if they are job related.

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Shuffle in DA's office in wake of 'BAT van' case

  HOUSTON (KTRK) -- We have an update now on a grand jury probe into the Harris County DA's handling of the alcohol testing vans.

We learned Friday that an assistant prosecutor who pled the Fifth in that investigation will no longer handle DWI cases.

Rachel Palmer refused to testify before the grand jury under the Fifth Amendment, protecting her from self incrimination. The investigation centered around what and when the DA knew about problems with the so called 'BAT' vans. Our 13 Undercover investigations exposed those problems back in March.

Palmer will now work within the appellate division, in what the DA's office calls a lateral move.

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Sheriff's Office cuts back on jail visitation hours

  HOUSTON (KTRK) -- The Harris County Sheriff's Office is cutting visiting hours at the jail to save money.

Sheriff Adrian Garcia says visitation days will drop from seven to four a week, but visiting hours are being extended on some of the days. State law requires visits two days per week. The sheriff says the move will save the department $1.3 million a year. (Copyright ©2011 KTRK-TV/DT. All Rights Reserved.) 

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