City Manager Issues "Letter to the Community" After FBI Raid - KCBD NewsChannel 11 Lubbock

5/15/08

City Manager Issues "Letter to the Community" After FBI Raid

Thursday, Lubbock's city manager released a letter to all residents after Wednesday's FBI raid at City Hall.

The raid began Wednesday morning with federal agents serving a sealed warrant from a federal judge. Soon after, dozens of boxes of files, computers, hard drives, electronic storage devices and even computer passwords were seized and taken by the FBI.

The warrant states the crimes for which it was issued are - conspiracy; false statements, wire fraud, and health care fraud. Also in the warrant was a listing of several businesses all dealing with the health care benefits for city employees. The most prominent being the city's former health insurance provider, AAG Insurance, which is owned by Ted Parker's company the Parker Group. The city sued AAG citing more than $8.2 million in overpayments for claims. Two other companies listed are Jim White Insurance and Sanford Insurance, both Lubbock companies.

City Manager Lee Ann Dumbauld initially sent the letter regarding the raid to city employees and other high profile people around Lubbock. But the word from the city is that the following letter was really for all residents of Lubbock.

Subject: Letter to the community

Yesterday the FBI executed a search and seizure warrant for City documents relating to its previous health claims administrator.  The warrant was served as part of an ongoing FBI investigation.  The City welcomes the FBI's presence and has fully cooperated with the FBI and will continue to fully cooperate with their investigation.

I want to assure each of you that this City and all of its employees remain committed to open government, fair dealing, and public service. Each of us believe that we are individually responsible for delivering top service while judiciously guarding the public purse. 

Although this investigation provides great fodder for intrigue and innuendo, the fact remains that we will continue to: Put out fires, Patrol the streets, Put the bad guys behind bars, Fill the potholes, Run the buses on time, Mow the parks, Issue building permits, Enforce codes, Provide water, Treat wastewater, Check out books, And much much more. We will continue to run a professional organization of high moral caliber.  You can count on us--I promise!

It is the hard work of our community leaders that makes Lubbock a great place to live; your support is greatly appreciated.

Lee Ann Dumbauld
City Manager 
City of Lubbock                                                                                                                            1625 13th St. Lubbock, TX  79401

In the wake of the city hall raid we wanted to know just how Lubbockites are feeling one day after the raid. So we sat down with Wade Wilkes, host of The Wade Wilkes Show on AM 580 about what some of his listeners called in saying Thursday.

"The listeners this morning are not surprised by the FBI raid. But the sense I am getting off the air, as well as me myself, is the sense that they don't really know where to go," said Wilkes.

Wilkes says it's too early to speculate what this entire investigation will involve.

Coming up on NewsChannel 11 at 10, we'll get reaction to the raid at city hall directly from city residents.

5/14/08
The Feds Raid Lubbock City Hall
Just after 9:00 a.m. Wednesday more than two dozen federal agents entered city hall and began to seize boxes of documents all outlined in a warrant issued by US Magistrate Judge Nancy Koenig. NewsChannel 11's Justin Michaels has more.
get more-
Entire Search Warrant Issued by U.S. Magistrate Judge Nancy Koenig
FBI agents confiscate boxes of city records in a raid on Lubbock City Hall.  (You will need Acrobat to open this file.)

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