Maverick County faces possible lawsuit by former Financial Advisor

By: Jose G. Landa, Copyright 2015, Eagle Pass Business Journal, Inc.

Maverick County Commissioners Court will be addressing the pending request for payment for financial advisory services made by former Maverick County and Maverick County Public Facility Corporation financial advisor Roberto Rodriguez and Southwestern Capital Markets, Inc. of San Antonio, Texas at its Friday, May 29, 2015 special meeting under Agenda Item No. 31 in Executive Session pursuant to Section 551.071 of the Texas Open Meetings Act, Texas Government Code, Chapter 551, for consultation with attorney regarding alleged claims for payment by Southwestern Capital Markets, Inc. as they relate to the Public Facility Corporation and Maverick County.

Southwestern Capital Markets, Inc. has demanded request for payment for services rendered to both Maverick County and the Maverick County Public Facility Corporation pursuant to its financial advisor contract, but both Maverick County entities have demonstrated an unwillingness to pay Southwestern Capital Markets, Inc. Both entities terminated their financial advisor contracts with Southwestern Capital Markets, Inc. on January 29, 2015 and subsequently approved a new contract with First Southwest Capital Markets, Inc. of San Antonio, Texas on that same date.

Recently, the Maverick County Public Facility Corporation Board of Directors voted to deny payment to Southwestern Capital Markets, Inc. at a meeting held on May 11, 2015 after consultation with new legal counsel, Law Office of Luis Vera of San Antonio, Texas.

The Maverick County Public Facility Corporation Board of Directors unanimously approved a motion made by Board member and County Commissioer Gerardo “Jerry” Morales and seconded by Board member and Sheriff Tom Schmerber “to not approve any payments to Soutwestern Capital Markets, Inc..”

The Maverick County Public Facility Corporation Board of Directors include President and County Commissioner Roberto Ruiz, Vice-President and Sheriff Tom Schmerber, Secretary-Treasurer and Maverick County Human Resources Director Jesus Sanchez, and Board members and Commissioner Rosy Cantu and Jose Luis Rosales and County Judge David R. Saucedo.

The exact amount in controversy between Southwestern Capital Markets, Inc. and Maverick County and the Maverick County Public Facility Corporation is unknown as of press time but believed to be close to $20,000. The dispute with Southwestern Capital Markets, Inc. is believed to have arisen when Maverick County Treasurer Rito J. Valdez, III, either declined to pay or stopped payment to Southwestern Capital Markets, Inc.

Unless Maverick County and the Maverick County Public Facility Corporation reach an agreement with Southwestern Capital Markets, Inc, it appears that Southwestern Capital Markets, Inc. may file a lawsuit against both Maverick County and the Maverick County Public Facility Corporation for breach of contract and request damages, reasonable attorney’s fees, and court costs and expenses.

Southwestern Capital Markets, Inc. alleges that they entered into a financial advisory agreement with both Maverick County and the Maverick County Public Facility Corporation and that some of their monthly invoices have not been timely paid pursuant to their former financial advisory agreement. Southwestern Capital Markets, Inc. further alleges that Maverick County Treasurer Rito J. Valdez, III, has refused to endorse an order of payment to them for services rendered.

Maverick County and the Maverick County Public Facility Corporation’s new legal counsel. the Law Office of Luis Vera, are researching the legal issues and whether Southwestern Capital Markets, Inc. may actually owe monies to both or one of these entities for alleged overpayment for services rendered.

Maverick County Commissioners Court are scheduled to take possible action on this pending dispute with Southwestern Capital Markets, Inc. in open session after consultation with legal counsel in executive session at their Friday, May 29, 2015 special meeting.