Former city Transportation Department employees Kurt Hough and Bobby Palomarez have been indicted by a Pima County grand jury on multiple felony counts including fraud, theft, and criminal enterprise.
The indictments were announced Wednesday afternoon.
Hough and Palomarez were among five transportation supervisors and workers who resigned or were fired on Sept. 6 following a lengthy investigation into allegations they misappropriated thousands of dollars worth of city materials and equipment for use on private construction jobs, many of which were performed by city workers on city time.
A Tucson Police Department press release announcing the indictments said the charges are part of an on-going investigatin and the depatment “will continue to investigate all complaints to determine whether criminal violations occurred.”
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The release did not include specific charges against either individual. But notices of intent to terminate they were given on Sept. 6 details a long list of questionable activities.
Findings in the notice given to Hough, the former streets administrator, included:
• In August 2010, he ordered the construction of an unauthorized/unnecessary concrete motorcycle pad at the city’s west lot near East Ajo Way and South Park Avenue because he and his "motorcycle buddies" didn't like parking on asphalt, at a cost to taxpayers of $7,883.
• In February 2009, he ordered Palomarez to deliver 15 tons of city dirt to help a friend, Ken Kelly, owner of Kelly Electric, build a BMX track at another friend’s home in Vail, outside the city limits. Kelly had not responded to calls seeking comment Thursday night. The cost was $600.
• Between October 2006 and July 2007 he directed use of at least five city workers, plus equipment and materials, to build a retaining wall and pave the parking lot at Kelly Electric, 1144 W. Miracle Mile. The report says the work was done for profit, but also notes Hough owed Kelly $5,000.
• In May 2010 and again in September 2011 he had a city crew pave a private road in the Midvale Park area.
Palomarez, who was a street supervisor, was accused in the termination notice of:
• In 2010, directing the delivery of multiple loads of dirt and sand to the Sunnyside High School baseball field, where his brother is a coach, and had city employees work on the field.
• In November and December 2009, clearing dirt for a private contractor. The dirt was stored on a city lot and used later for his private side jobs.
• In 2007, grading and paving a parking lot at a small south-side church that couldn't afford to pay. The taxpayer cost was $1,007.
• In November 2004, clearing, grading and paving a parking lot at the now-closed Shakey's Pizza at 4802 S. Sixth Ave. Cost $1,712.
• In November 2007, grading and paving drives at Evergreen Cemetery on North Oracle and West Miracle Mile. Cost $17,043.
For more on this story, see Thursday’s Arizona Daily Star.
