FBI Joins Harris Probe

The Federal Bureau of Investigation has entered the probe into questionable payments by Harris County to two brokers involved in county investment transactions.

FBI agents met with financial services director Jack Yuran and other county officials late last week to determine when they first learned about allegations that former county finance head Edwin Harrison was involved in the payments to two traders with Morgan Stanley Smith Barney and UBS Financial Services.

An investigation by the county attorney’s office found the overpayments could total more than $1.1 million.

Yuran said the agents were interested in what the county did when it discovered the possible improper payments.

County Judge Ed Emmett, who has called for the state district attorney to investigate possible felony charges against Harrison, said he was glad to see the FBI’s interest in the case.

“We need to get to the bottom of what’s gone on here,” Emmett said.

An FBI spokeswoman said she could not confirm or deny the existence of an investigation.

Chip Lewis, Harrison’s attorney, said his client would cooperate with the FBI..

“Mr. Harrison welcomes and will fully cooperate with any investigation, FBI or otherwise, as all of the transactions at issue were both lucrative for the county and wholly legal,” Lewis said.

“Mr. Harrison never received any payments, kickbacks, or whatever you want to term anything term anything,” the attorney added. “He executed all the transactions because they were good for the county.”

Representatives of Morgan Stanley and UBS met with county officials last week to discuss possible reimbursement of the alleged overpayments.

Harris County has recovered more than $300,000 from five law firms for undocumented travel and entertainment expenses approved by Harrison for 30 county bond issues.

Harris County’s general obligation debt is rated triple-A by all three agencies.

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