Former Rey Feo, family members sentenced in million-dollar housekeeping scheme at Army hospitals, medical centers

SAN ANTONIO – Three members of a San Antonio family, including a former Rey Feo, were sentenced in federal court Friday in connection with a million-dollar housekeeping scheme at Army hospitals and medical centers.

U.S. District Judge Fred Biery sentenced Kenneth Flores to four years in prison, Christopher Flores to two years in prison, and Irma Flores to five years of probation. As part of their plea agreements, they agreed to pay $3.7 million in restitution.

“The actions of these three family members—defrauding our institutions and corrupting the integrity of government contracts intended to support military facilities—were a betrayal of the public trust,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Our office remains committed to rooting out corruption and holding those accountable those who seek to exploit government resources for personal gain.”

The trio, who were indicted on wire fraud and money laundering charges, pleaded guilty in August to conspiring together to defraud the United States by eliminating competition and fixing contract awards and prices for housekeeping and janitorial services at Army hospitals and medical centers, according to a news release from the U.S. Attorney’s Office.

Ken Flores was named Rey Feo in 2018, according to the San Antonio Report. The Rey Feo Consejo Education Foundation declined to comment on the conviction.

The suspects fixed housekeeping and janitorial service contracts with government employees Karisa Waysepappy Kelley and John Jordan “Chip” Mathes in exchange for bribes and kickbacks, according to the U.S. Attorney’s Office.

The scheme eliminated their competition, and in return, they received contracts worth millions of dollars for housekeeping and janitorial service contracts at the hospitals and medical centers, the release adds.

The U.S. Attorney’s Office said Christopher Flores’ company, Alliance Supply, paid $216,719.46 to Mathes’ company, C&S Consulting.

“From Feb. 21, 2019, until July 17, 2020, Alliance Supply paid Kelley’s company Waysepappy Consulting $57,906.50,” the U.S. Attorney’s Office said.

Irma Flores was the bookkeeper for Allegiance Environmental Services, which operated under Alliance Supply and was owned by Kenneth Flores, federal officials said.

Mathes and Kelley pleaded guilty in February 2023 and are scheduled to be sentenced in the coming weeks.

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