Nicholas J. Ganjei United States Attorney for the Southern District of Texas | U.S. Attorney for the Southern District of Texas
A federal jury in Houston has found the former chief operating officer of the Houston Independent School District (HISD) and a contractor guilty of involvement in a fraud scheme over several years. The announcement was made by U.S. Attorney Nicholas J. Ganjei for the Southern District of Texas.
Brian Busby and Anthony Hutchison were convicted on charges including conspiracy, bribery, false tax returns, and witness tampering. Additionally, Hutchison faced seven counts of wire fraud. The verdict came after a four-week trial and only six hours of jury deliberation.
The trial involved testimonies from over 50 witnesses concerning 33 charges of bribery, false invoicing, and tax violations. Five former HISD officials testified, including Rhonda Skillern-Jones and Derrick Sanders, who admitted to receiving bribes.
According to testimony, Busby exerted pressure on HISD officials to award contracts to Hutchison’s companies, especially for projects following Hurricane Harvey. Skillern-Jones stated that Busby persuaded her to use Hutchison’s company for projects funded by a 2012 school bond. She described an incident where Busby handed her $12,000 in cash from Hutchison outside a Walmart.
Sanders recounted accepting bribes during trips to Las Vegas with Busby and Hutchison. He described the opulent lifestyle funded by the scheme. Alfred Hoskins provided testimony regarding the reluctance of his maintenance team to use Hutchison’s company due to high costs while recounting Busby’s insistence on awarding contracts to Hutchison.
A handwritten ledger seized from Hutchison’s residence detailed HISD projects awarded to his company, Just Construction, and included records of bribe payments. The jury reviewed evidence of an invoicing fraud scheme through Southwest Wholesale, Hutchison’s company since 2015. The contracts involved extensive overbilling, resulting in a loss exceeding $6 million for HISD.
Further evidence showed Busby’s unjustified cash deposits to more than 18 bank accounts totaling nearly $3 million, which were not declared in his tax returns. Hutchison also filed false tax returns, disguising bribes as legitimate business expenses to fund gambling debts and cash bribe payments.
Hoskins testified about attempts by Hutchison and Busby to obstruct the investigation. This included instructions from Busby to Hoskins to deny Busby's involvement in awarding contracts to Hutchison.
Nicholas J. Ganjei remarked, “People need to have faith in their public institutions, and they can become understandably cynical when they hear of public servants stealing from school kids by taking bribes and over-billing.” He emphasized the importance of the investigation to restore public trust.
Douglas Williams of the FBI Houston Field Office highlighted the impact of the fraud on taxpayers and students, expressing hope that the verdict marks justice being served.
Both Busby and Hutchison remain on bond until their sentencing on July 28. They could face significant prison time and financial penalties. Hutchison faces an additional potential 20 years for each count of wire fraud.
The FBI and IRS conducted the investigation, with Assistant U.S. Attorneys Robert S. Johnson and Heather R. Winter leading the prosecution.
