Political intrigue in San Antonio criminal case against ex-WellMed consultant and former SBA boss

At first glance, Miguel A. Gutierrez’s role at WellMed Medical Management Inc. seemed unremarkable — even a little dull. For more than 14 years, he served the San Antonio-based operator of clinics for seniors as an executive-level consultant. In reality, his job was anything but boring. He was the “right-hand man or political fixer” for Dr. George M. Rapier III, WellMed’s founder, chairman and CEO, said Donald H. Flanary III, a lawyer for Gutierrez. That all came to an end last year when a San Antonio federal grand jury indicted Gutierrez for illegally using hundreds of thousands of dollars in donations Rapier and his then-wife intended for two nonprofit organizations. Gutierrez has since pleaded guilty to two of the indictment’s 10 counts. But before he took a plea, he accused Rapier of hiding his political activity, including get-out-the-vote campaigns for conservative candidates and to stymie the Affordable Care Act, known as Obamacare.

If Gutierrez’s allegations are true, a court filing in which he spelled out his claims against Rapier is a window on the world of dark money — funds from undisclosed donors to nonprofit organizations that spend lavishly on efforts to sway public opinion and elect their favorite candidates. Gutierrez accuses Rapier of using the nonprofit organizations to conceal his political spending, which is not illegal. He also alleges that the San Antonio physician and entrepreneur intended to take federal tax deductions for his political advocacy, which is not allowed under the tax code. It’s unclear whether Rapier deducted the contributions from his federal taxes. “The doctor didn’t go to the FBI and say someone’s stealing from me,” Flanary said. “If the doctor would have told the complete picture to the FBI, then I don’t know that (Gutierrez) would have been indicted.” Rapier was not only fully aware of the political activity conducted for the benefit of WellMed but took an active role by helping design many of the political messages, Gutierrez said. In 2009 and 2010, the owner of WellMed — a business heavily dependent on government programs such as Medicare Advantage — became “very concerned” about funding cuts Obamacare might bring. “Dr. Rapier wanted to fund his political advocacy … for conservatives but wanted to be able to receive a tax deduction for the expenditures,” Gutierrez said in his court filing.