Gordon is accused of violating Article 216 of the Revised Penal Code and Section 3 (e, g and h) of the Anti-Graft Law (RA 3019) as amended.
Complainant Juan Montelibano, head of the Land and Asset Development Department, charged Gordon and Olongapo City administrator Ferdinand Aristorenas, former SBMA chief operating officer under Gordon’s administration. Aristorenas was implicated for "conspiring and confederating in violating the law" when he leased out several residential units inside the Freeport at prices and terms detrimental to the government.
In a six-page complaint filed by Montelibano with the Ombudsman, Gordon allegedly acquired two housing units at 24-A and 24-B Alpha st., Binictican, inside the Subic Bay Freeport by virtue of two residential lease agreements he executed with Aristorenas, as SBMA representative, on Aug. 18, 1997.
Aside from this, 16 other choice units in the Kalayaan and Binictican residential districts were rented out to Gordon’s relatives including his wife, Olongapo City Mayor Kate Gordon, his mother Amelia, a former mayor of Olongapo and sisters Veronica Lorenzana and Barbara de los Reyes.
The law strictly bans a public officer from possessing prohibited interest and engaging in transactions unpropitious for the government.
Montelibano also stressed that the two lease agreements entered into contained special provisions on rental rate and period of amortization that favored Gordon when he acquired the two houses at $54,400 each under a 25-year lease, when the rate of the other units were at least $76,800 each.
The complaint added that while the SBMA socialized housing program mandates amortized payments for ten years, Gordon was on the contrary allowed a period of 15 years.
Montelibano said that while "Dick Gordon lives in two elegant houses," he also allowed discounted rates to his wife at 188 Captain’s Circle, the best house in the Kalayaan area, and 13 others to his immediate family members.
Kate Gordon’s unit at West Kalayaan was leased out for $97,000, also for 25 years.
Meanwhile, the terms under several of these contracts were not fully met. The lessees have allegedly accumulated arrears in rentals and utilities, the complaint added.