'It is affirming to see this issue taken so seriously': Former senior policy adviser to Adler pleads guilty to mishandling funds

Local Government
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Austin Deputy City Auditor Jason Hadavi | Facebook

Austin's deputy auditor is pleased to the attention federal officials paid in the case of a former city senior policy adviser who plead guilty last week to mishandling funds.

Frank Rodriguez, former senior policy adviser to Mayor Steve Adler, is expected to be sentenced in March following his guilty pleas in federal court, according to a Friday, Jan. 7 U.S. Department of Justice news release. Rodriquez, 71 of Dripping Springs, pled to conspiring to misapply federal funds and falsify records with the intent to impede, obstruct or influence an investigation.

Austin Deputy City Auditor Jason Hadavi, who led the probe, provided a statement to the Austin Monitor saying his office "was pleased to see that federal authorities relied on work related to our Ethics Review Commission (ERC) complaint against Mr. Rodriguez when supporting their case."

"It is affirming to see this issue taken so seriously at the federal level after similar issues were deemed to be ‘minor or unintentional’ violations by the ERC," Hadavi continued in his statement published in the Austin Monitor's Wednesday, Jan. 12 news story. "Discrepancies in outcome like this are a great example for why the upcoming audit of the ethical structure and environment of the city is so important and timely."

Hadavi said his office was pleased with the work of other officials in the case as well.

"Our office appreciates the followup work done by the FBI and U.S. Attorney’s Office to bring accountability to this case," he said. "We also appreciate the hard work completed by our outside investigators when this matter first arose."

Rodriguez was executive director of a local nonprofit organization and city advisory commission member before he went to work for Mayor Adler's office in 2015, according to the DOJ's news release.

The news release did not identify the nonprofit but the Austin Monitor said it was the Latino HealthCare Forum, of which Rodriguez is a co-founder.  

Rodriguez is alleged to have been instrumental in securing a federal grant for the nonprofit and then later demanded, in email, a "fee" for the grant, according to the news release.

"Rodriguez falsely stated that he was the nonprofit's 'chief development officer' and 'authorized representative,'" the news release said.

The "consulting fees" Rodriquez demanded "were in fact a commission on the federal grant in return for his preparation of the grant application," the news release said.

Hadavi's office began its investigation in 2017.

The Austin American-Statesman also took credit in the case.

Rodriguez's sentencing is scheduled March 24. He faces a maximum penalty of five years in prison.