Further research into Galveston County Judge Jim Yarbrough’s service on American National Insurance’s board of directors has revealed that his entire nine-year tenure has been illegal. Judge Yarbrough’s service violates not only the county’s ethics policy but more importantly Section 81.002 of the Texas Local Government Code which prohibits county judges and commissioners from serving as an officer or as part of the governing body of a publicly traded corporation.
According to Greta Bassett with American National Insurance Company’s investor relations department, ANICO has been a publicly traded company since 1972 not 2009 as first reported by Fox’s Randy Wallace.
This raises serious questions regarding the tax breaks that American National received from Galveston County for the construction of their two buildings in League City, Texas. Although Judge Yarbrough recused himself from voting, this to, is in violation of state law. According to Attorney General Opinion JC-0061 the judge “cannot avoid a conflict of interest under section 81.002 by recusing himself.” This opinion was recently reaffirmed in 2008 by Attorney General Abbott in Opinion GA-0645. Which begs to question, what influence did he wield over the other county commissioners in the weeks and months prior to the vote authorizing these tax breaks?
AG Opinion JC-0061 also states “that the county commissioner’s oath of office precludes the commissioner, or in this case judge, from receiving payments” under section 81.002. Again this opinion was reaffirmed by Attorney General Abbott in 2008.
As reported earlier this week Judge Yarbrough earns substantially more in his position on American National’s board. The judge earned $131.000.00 in his position with the County but received nearly $200.000.00 in compensation from ANICO according to their annual report. In case you were wondering, that is nearly $70,000.00 more from American National which raises the question; how can the judge act in the county’s best interest when he earns considerably more from American National?
Does this mean that Judge Yarbrough should repay all the money he has earned during his nine-year tenure with American National?
Has American National broken any SEC rules?
Is American National in violation of the Sarbanes Oxley Act?
Judge Yarbrough’s relationship also raises a multitude of questions regarding his position on the American National Insurance Company’s board of directors and their symbiotic relationship with Moody Bank, which has several contracts with the county worth millions of dollars.
As of this writing I am still waiting for this information from county officials and will post an update once I receive it. However, Moody National Bank has the County Lock Box contract which processes deposits from the County Tax Collector, as well as most of the cities within the county, several school districts, and municipal utility districts amongst other institutions.
The original stories focused on the paltry $366.00 annual lease that Galveston County pays American National for antenna placement on the roof of their Galveston headquarters, however, this appears to be small potatoes when you look at the big picture.
The real concern is that controlling interest of American National Insurance is owned by Moody National Bank, other Moody companies, and family members. In fact the Moody’s own more than seventy-five percent of American National’s stock according to Standard and Poor’s.
Because of this Moody National Bank is in a position to exert a great deal of influence over Judge Yarbrough as well as receive critical information to the county’s inner workings. Perhaps it is in the best interest of Galveston County if Judge Yarbrough resigns his position as county judge. One thing is clear; Judge Yarbrough has a whole host of new questions to answer.
Correction: T.J. Aulds of the Galveston Daily News reported that ANAT was a publicly traded company on the NASDAQ Exchange.
Resources:
Code - http://law.onecle.com/texas/local-government/81.002.00.html
Stock Chart - http://www.google.com/finance?q=anat
My Fox Houston - http://www.myfoxhouston.com/dpp/news/investigates/101006-questions-surrounding-galveston-county-judges-2-jobs
GalvestonDaily - http://galvestondailynews.com/story/181802
Dividend 1911 - http://www.fundinguniverse.com/company-histories/American-National-Insurance-Company-Company-History.html
ANICO Annual Report - http://www.anico.com/annual_reports.dhtml
SEC Ownership Rep. -http://www.sec.gov/Archives/edgar/data/904163/000095012310029989/c98443def14a.htm#104
Comments
This is Galveston. Not the U.S.
What???
Judge Yarbrough should step down immediately.
am so glad karma is catching up with him: the man is ruthless! His "aw, shucks,I'm just a country bumpkim" fools quite a few people; he's in the pockets of labor unions AND trial lawyers in Galveston/Galveston County.
He - and his cronies in the Commissioners' Court - just refused to second/allow voting locations to be added ... making it difficult (Black Panther anyone?) for people to early vote/vote; citizens - still rebuilding from IKE - now has to drive 10 miles (to 1 location) or 15 (to another) to vote. Dig deeper ... for he's no fool!!!
I have received several other pieces of information that I will be pursuing.
The dude wears a pinky ring! "Que Boss Hogg!"
He dosen't care about Galveston county! He cares about Jim Yarbrough!
All you who want term limits. Wait no more! Push the "R" button on Oct. 18th-Oct.29 (early voting)! Stop the Good 'ol Boy network!
You know what You guys should stop complaining because, one the health care we have now isnt as good as it was supposed to be. also the law has just been signed so give it some time. so if u want to say u have the right to choose tell that to ur congress men or state official. If you do not have insurance and need one You can find full medical coverage at the lowest price by calling 877-882-4740 or check http://bit.ly/9EwL4G If you have health insurance and do not care about cost just be happy it and trust me you are not going to loose anything!
Where in this article do you see anything mentioning healthcare?
Healthcare? Yarbrough needs to hire his wife a maid with some of the extra money that he has been "payed". At least then we would not have to continue to watch that STUPID commercial! LOOSER!
Will charges be filed ASAP? If it had been a Republican, he would have already been "under the jail" that "Jimbo built to get the criminals off our streets." Thank you, Carol Yarbrough for those quotations.
You mean the jail that was like $50 million over budget.
Is the current D.A. going to present this to the GRAND JURY or Do we need to wait until we get the new D.A.?
This is the VERY reason I won't practice in Galveston County, if you don't "pay" you don't "play" Too bad, I'm sure it costs much more to do business down there and I guess the taxes reflect that.
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