WWW.USDOJ.GOV

JUSTICE DEPARTMENT DECLINES THIRD TRIAL FOR HOUSTON CITY COUNCILMEN

HOUSTON -- The Department of Justice announced today that it will not pursue a third trial on bribery and conspiracy charges against Houston City Councilmen John E. Castillo and Michael J. Yarbrough, and former Houston City Councilman John W. Peavy, Jr.

The defendants were initially indicted and tried together with former City Councilman Ben T. Reyes and former Port Commissioner and lobbyist Elizabeth Maldonado. The first trial of all five defendants ended in a hung jury and mistrial in May 1998. Reyes and Maldonado were subsequently tried alone and convicted of bribery and conspiracy in December 1998 after a three-month trial. Reyes, who was found to be the organizer of the conspiracy, was sentenced to a term of nine years in prison; Maldonado was sentenced to a term of four years, three months.

On March 29, 1999, defendants Castillo, Yarbrough, and Peavy were put on trial for a second time. The jury declared itself deadlocked on May 12, 1999, and Judge David Hittner declared another mistrial.

The Department of Justice and the court system have devoted substantial resources to the prosecution of these defendants over the course of 14 months. The evidence supporting the charges set forth in the indictment has been fully presented to two juries drawn from a cross-section of citizens residing in the Southern District of Texas. Although no unanimous verdict was reached after two trials of Castillo, Yarbrough, and Peavy, the prosecution recognizes that the juries carefully evaluated and weighed the evidence presented. The government has decided not to seek another trial on this matter.

At the sentencing of Reyes and Maldonado, Judge Hittner characterized both defendants as having engaged in systematic corruption that may cause loss of public confidence in government. The Department of Justice believes that their convictions and sentences will have substantial deterrent value in the fight against public corruption.

This case is being handled by the Public Integrity Section of the Department of Justice. The investigation was conducted by the Houston Division of the Federal Bureau of Investigation.

###

99-215