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When petitioner discontinued his employment with the City of
Phoenix in May 1988, Cindy Lizarraga, an employee of the City of
Phoenix, was given the responsibility of servicing and
maintaining the Phoenix loans. Upon discovering that the files
for these two loans were incomplete, she took the necessary steps
to obtain copies of the missing documentation. Ultimately, she
was unable to procure records that established whether the
proceeds of the Phoenix loans were actually used for their
intended purpose.
In July 1988, petitioner went to work as the assistant
director for business finance in the Economic Development
Division of the City of Austin, Texas (Austin Economic
Development Division). In this capacity, he had the authority to
generate and service loans primarily funded by HUD. On
October 9, 1989, the Austin Economic Development Division issued
a check in the amount of $250,000 to fund a loan granted to
Hilary Richard Wright Industries (HRW). Petitioner managed the
HRW loan, and the loan proceeds were deposited into an account at
Bank of the Hills, the repository and loan servicing agent for
the HRW loan.
On October 11, 1989, petitioner, in his official capacity
with the City of Austin, directed Bank of the Hills to issue a
cashier's check in the amount of $86,045.11 to Dunn's
International Group (Dunn) to purchase woodworking equipment for
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