This article was corrected on May 20, 2024 to correct that Wayne Vandenburg was the track and field coach and not the basketball coach at UTEP.
In a story we first brought to you back in August 2022 about long-time El Paso businessman’s fraud tied to downtown redevelopment is reaching conclusion almost two years after the fraud was first alleged. The indictment released in July 2022 accused Russ Vandenberg and Scott Anthony Stuart of committing real estate fraud between 2015 and 2017. The indictment alleged that Stuart and Vandenberg defrauded El Paso investors by misusing the money invested for property development.
Vandenberg’s criminal trial ended when he died on April 10, 2023. However, his partner’s trial has continued. Although Vandenberg’s trial ended with his death, El Paso’s news media has largely ignored the alleged fraud and the trial. Bob Moore’s El Paso Matters has particularly been silent about Vandenberg.
The reason for the media’s silence appears to be Vandenberg’s standing among El Paso’s officials and his history with UTEP’s sports. Although not convicted for the alleged fraud because of his death, Vandenberg has a history of questionable business activities spanning over several years.
Although the fraud case is recent and the only known criminal indictment of Vandenberg, he was implicated in the 1991 NCAA investigation of UTEP’s basketball team. Several basketball players from the 1980’s alleged that they were provided free food and other incentives in violation of NCAA rules. Russ Vandenberg’s brother, Wayne Vandenberg was previously the UTEP track and field coach.
The NCAA placed UTEP on three-year probation and cut scholarships for the 1992-1994 season after it concluded its investigation into the Vandenbergs.
Notwithstanding the NCAA controversies, Russ Vandenberg was held up as a pillar of the community, while El Paso’s business community was concerned about his business practices, with one business owner stating, “stay away from Russ.”
Vandenberg’s public support stemmed from his support of the controversial downtown redevelopment by the controversial Paso del Norte Group (PDNG) business group, of which he was a member.
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In 2013, Vandenberg was accused by several subcontractors of not being paid for their work at the Hilton Garden Inn, a UTEP project. In addition to the UTEP hotel controversy, Citibank filed a lawsuit against Vandenberg for breach of contract. On August 20, 2013, the court ruled in favor of Citibank after Vandenberg failed to appear in court. In December 2013, Vandenberg’s Stanton 4433 Condominiums was foreclosed on.
On Wednesday, Vandenberg’s former partner told the court that the fraud was Vandenberg’s idea.
It’s Vandenberg’s Fault
Two days ago, Vandenberg’s former partner, Scott Stuart, told judge Frank Montalvo that the fraud he pleaded guilty to was Russ Vandenberg’s idea. According to Stuart, Vandenberg told him that the investors would be paid back as soon as the “next big deal” landed.
The fraud that Stuart pleaded guilty to started in 2015 and ended around 2017. Vandenberg allegedly defrauded his investors in apartment complexes and hotel properties. The indictment alleges that money was illegally transferred to pay for shortfalls on the other properties and for Vandenberg’s personal expenses.
Scott Stuart is scheduled to be sentenced on June 11.