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Businessman Chilo Madrid sentenced to 15 years in prison in public corruption case

By Staff Report
Published On: Apr 15 2013 02:40:47 PM CDT
Updated On: Jan 15 2014 07:08:11 PM CST

Former Aliviane CEO faces up to 20 years.

EL PASO, Texas -

Cirilo “Chilo” Madrid was sentenced on Monday to 15 years in prison, to be served concurrently, for his role in defrauding the United States, theft or embezzlement of federal funds and mail fraud.

He also was ordered to pay a $100,000 fine and $500,000 restitution.

Madrid, 67, was found guilty of the public corruption charges in mid-December 2012.

Judge Frank Montalvo ordered Madrid immediately taken into custody after the verdict in December.   Defense attorney Leon Schydlower asked Montalvo to consider granting bond, saying that Madrid is not a flight risk.

Montalvo said at that time that the facts of the case have not changed, but said, "He has reasons, several years worth of reasons to abscond." Madrid was not cuffed in the courtroom, but instead led by bailiffs to a small chamber adjacent to the courtroom to prepare for transfer to detention.

Before leaving the courtroom in December, the judge admonished Madrid not to make any unusual financial transactions prior to sentencing.  He gave specific examples, telling Madrid not to give a family member a large Christmas gift, not to make a large lump sum payment on a mortgage, and, "If you've been wanting a new car, don't go into that showroom, or you'll make things very difficult for your family."

Federal prosecutors had said Madrid, who once served as CEO of the nonprofit behavioral treatment center Aliviane, worked with others to bribe a former county judge in exchange for government contracts.

His alleged co-conspirator was Ruben "Sonny" Garcia, the former head of LKG Enterprises. Federal authorities say from 2005 to 2006, Madrid and Garcia bribed former county judge Dolores Briones $24,000 in exchange for government contracts for LKG totaling $600,000.

According to the ABC-7 archive, LKG was supposed to conduct evaluations of children being treated in the Border Children's Mental Health Collaborative, a federally funded program that aimed to keep children from being sent out of town for treatment of mental and behavioral issues.

ABC-7 reported that the county, which was in charge of the federal grant to fund the collaborative, eventually dropped LKG for not conducting the evaluations despite receiving hundreds of thousands of government dollars to do so.

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