HOUSTON – Sidewalks, streets, drainage, police and fire -- we all pay taxes to keep the city running. But if you live or own a business in one of more than two dozen special districts or zones in Houston, like Mehdi Banijamali, you pay an extra tax.
"What do you see that you've gotten out of it as a business owner?" reporter Amy Davis asked Banijamali.
"Nothing," he answered. "We've gotten nothing out of it."
Banijamali owns ARCOT Manufacturing on Houston's southeast side inside the Five Corners Improvement District created in 2011. The district taxes some 1,200 businesses within its 22 square miles. Board members then use the tax dollars to improve the area. Five Corners recently spent $229,000 on private security services and another $155,000 to replace street signs with nicer ones bearing the Five Corners logo.
"This is a waste of money," said Banijamali.
But exactly who City Council appointed to "waste" his money angers Banijamali even more: Richard Gonzalez, the owner of the now-shuttered tow company.
KPRC Channel 2 News showed viewers his arrest last month. He's accused of scamming dozens of drivers out of thousands of dollars, reeling them in through the city's Safe Clear program. Council appointed him as a board member of Five Corners in January 2014 while he was on probation for felony insurance fraud.
"How can someone with a criminal history be allowed to make tax decisions?" Banijamali asked.
We asked the same question.
"Should someone that has insurance fraud associated with his business be on that improvement board?" Davis asked Councilman Larry Green, who recommended Gonzalez for the board appointment.
"Well, I would think not," Green replied. "But at the end of the day, as council members, we rely on our lawyers and staff."
Channel 2 Investigates confirmed the only check the city of Houston makes before appointing members to these taxing boards is for delinquent taxes, to make sure they've paid up.
"For me, what has come out of this is an opportunity, as chair of the Ethics Committee, to revamp the policy for background checks for not only tax liens," Councilman Dwight Boykins said. "We need to check for criminal, violent and non-violent backgrounds, before they're appointed to boards and commissions."
The Five Corners manager immediately removed Gonzalez from the board when we told him about Gonzalez's record, claiming the same law that says convicted felons can't run for public office restricts them from also acting as appointed public servants.
"Under the statute, if he is a convicted felon, whether he is on probation or not, he cannot serve on this board," said David Hawes.
Mayor Sylvester Turner told Channel 2 through his spokesperson that he was asking the City Attorney about that interpretation of the statute and if it would extend to appointed board members. Hours before this story aired, he sent this statement:
“We have determined the system in place is workable and has proven adequate for the current situation. We will continue to utilize fingerprinting and background checks for Uber and other TNCs.” TNC is short for Transportation Network Company.
