Thursday, November 13, 2014

LULAC National Unauthorized And Misuse Of Corporate Funds To Pay $120K For Empty Hilton NY Hotel Rooms

LULAC National has paid $120,000 for unused hotel rooms for partisan delegates during last Summer's 85th LULAC National Convention in New York.

By H. Nelson Goodson 
November 13, 2014

Washington, D.C. - On Wednesday, Hispanic News Network U.S.A. (HNNUSA) learned that the League of United Latin American Citizens  (LULAC) National has paid a controversial Hilton New York Hotel bill for $120,000, which none of the hotel rooms were ever occupied during the conference. The Hilton empty rooms were booked for alleged partisan delegates expected to support current termed-out LULAC National President Margaret Moran's candidate Roger C. Rocha Jr. from Texas who ran for national president, but was defeated by Magdalena "Maggie" Rivera from Illinois. Since then, Rivera has been kept from taking office by Moran and her supporters.
Moran and Brent A. Wilkes, the executive director for LULAC National paid the Hilton Hotel bill without the authorization of the LULAC Executive Committee (LULAC-EC). Where did Moran and Wilkes get the money to pay the $120K bill? Well, from the sponsorship and donated corporate funds, according to LULAC National Board members. LULAC even received $86,000 from a member to help hide and cover up the misuse of corporate funds. 
Moran and Wilkes are facing turmoil at the reign for misuse of sponsorship funds for partisan support for Rocha Jr. without authorization by the LULAC-EC. The LULAC-EC, which approves financial issues and debts is expected to meet in February. The LULAC-EC doesn't officially recognize Moran as the current national president. 
More than $30,000 has been used by Moran to pay for her lawyer fees on several legal cases pending, which were not authorized by the LULAC-EC. Wilkes made the legal payments for Moran, despite lack of approval by the LULAC-EC, HNNUSA has confirmed.
On Thursday, November 13,  Moran and her legal advisor Manuel Escobar are expected to get sanctioned by a Nueces County Civil Circuit judge for not submitting discovery documents as ordered pertaining to a LULAC property located at 2625 Greenwood Dr., in Corpus Christi, Texas that was sold to the Hacienda Senior Housing, LP (HSH) associated with investor Walter Martinez. The LULAC property was sold in 2012 to multiple identities including the San Antonio  Community Development Council, which Escobar was listed as a director and registered agent subject to conflict of interest allegations.
The lawsuit filed in June 2013 claims that Moran and Escobar conspired to commit fraud and failed to notify the LULAC membership, including the LULAC National Board of the sale before the property was actually sold for $1.7M. "After debt transactional fees were paid, LULAC received a mere $250,000," for the property. Moran authorized the sale and signed documents along with Escobar, the LULAC National Legal Advisor before they could get approval by the National Board. "The property sale was kept secret from the National Board and LULAC members," the Rick Dovalina and LULAC v. Moran and Escobar (case 2013ccv-61062-3 in the Nueces County Civil Court at Law Number 3) lawsuit claims.
Ten days after the property was sold, the commercial real estate value market price was $10M. The lawsuit against Moran and Escobar seeks to recover the difference of the market value that was not included in the purchase price. Escobar got $15K in that transaction for legal fees and another lawyer got $150K, according to a National Board member. 
Three other valuable properties were coming up for their 30 year free and clear pay off and were destine to be sold without authorization from the membership, but the lawsuit stopped any attempt by Moran and Escobar to sell them. Wilkes apparently knew of the clandestine sale of the property to HSH. Those three LULAC properties were also marked for sale for pennies to a dollar, but Dovalina's lawsuit halted any further sale of any properties.
The LULAC National under the direction of both termed-out President Moran and Wilkes can be jeopardizing the nonprofit federal status for the organization by misuse of funds and the alleged clandestine sale of LULAC property without authorization of the National Board and it's membership.
The City of Corpus Christi also filed a lawsuit against several Texas LULAC Councils under former LULAC National President Rosa Rosales for not fulfilling their promise in 2008 to built an 80 low housing unit project by 2010, which the City of Corpus Christi and the Corpus Christi Community Improvement Corporation paid them $400,000 to do so and nothing was ever built in the property. The City of Corpus Christi is seeking to get reimburse for $400,000 from the defendants.
Rosales financial transactions between 2008 to 2010 led to an allegation of giving away the LULAC Hacienda Housing project and the Kingsville Manor Apartment complex costing LULAC thousands of dollars in losses.
Moran, Rosales and Wilkes were contacted by HNNUSA for comment, but did not return any response.

Corpus Christi, Texas lawsuit:

Rick Dovalina, LULAC v. Margaret Moran and Manuel Escobar at link:

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