LTC 270-2012 Arrest of Former Procurement Director0 1\A 1AM1 BEACH
OFFICE OF THE CITY MANAGER
NO. LTC # #270 -2012 LETTER TO COMMISSION
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Kathie G. Brooks, Interim City Manager
DATE: October 23, 2012
SUBJECT: Arrest of Former Procurement Director Gus Lopez
The purpose of this Letter to Commission (LTC) is to provide the City Commission with information
regarding the recent arrest of the City's former Procurement Director, Gus Lopez. The attached "Affidavit
in Support of Arrest Warrant" provides information relating to the charges being brought against Mr.
Lopez; his wife Maria Alejandra Pineda; and Pierre Landrin, Mr. Lopez' business partner. These charges
include: racketeering, money laundering, bribery, bid tampering, unlawful compensation and official
misconduct.
According to the Arrest Affidavit, Mr. Landrin was operating as a consultant for various companies
seeking to do business with the City's Job Order Contracts (JOC) Program. The City's JOC Program is a
construction program focused on managing projects ranging from several thousands of dollars to multi-
million dollar capital projects. The seven (7) categories in the JOC program include: Streetscapes,
Vertical, Horizontal, Electrical, Mechanical, Painting/Waterproofing, and Roofing.
Mr. Lopez allegedly assisted Mr. Landrin by exerting his influence as the Procurement Director and
providing Landrin with exclusive information and /or advice, with the intent of Landrin's clients obtaining a
competitive advantage that was not made available to other competing companies or the public. In
addition, as the City's Procurement Director, Mr. Lopez served as the City's point of contact for the JOC
Program. When a City department sought to utilize a JOC contractor for a specified project, Mr. Lopez
was responsible for.determining which contractor from the pre- approved rotational list would be selected
to perform the requested work.
A number of companies who are affiliated with performing work for the City (mostly via the City's JOC
Program) were named in the arrest affidavit as having utilized Landrin as a consultant. At this time, there
have not been any formal charges filed against any of the companies listed in the Arrest Affidavit.
However, I am working closely with the City's Legal Department to evaluate any potential implications,
particularly in terms of advising me as to what remedies the City may have under any of the current
contracts between the City and the respective companies name in the Affidavit. I have also instructed
Staff to immediately cease the issuance of any new purchase orders for any Job Order Contracts.
As you know, Mr. Lopez terminated his employment with the City in April 2012. Through a formal
recruitment process, the City has hired a new Procurement Director, Alex Denis, who is scheduled to
commence his employment on November 13, 2012. In addition, we will be reaching out to a number of
jurisdictions, and requesting participation from colleagues who work in the procurement field to assist
with an in -depth review of the City's procurement procedures, to identify areas where the City can
improve upon.
Should you have any questions, please feel free to contact me.
KGB /CMG
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AFFIDAVIT IN SUPPORT OF ARREST WARRANT
Your Affiant is Detective Ricardo Arias of the Miami Beach Police Department (MBPD).
Your Affiant has been a police officer with the Miami Beach Police Department for sixteen (16)
years. For the last (12) twelve years your Affiant has been a detective working in Economic
Crimes, Homicide, Narcotics. Your Affiant was previously attached to the South Florida Money
Laundering Strike Force and is currently attached to Miami Electronic Crimes Task Force, Your
Affiant has investigated various crimes, including Homicide, Robbery, Sexual Battery, Illegal
Narcotics, Cyber Crimes and Economic Crimes such as Money Laundering, Theft, Fraud,
Organized Schemes to Defraud, Identity Theft, and Embezzlement.
Your Affiant has probable cause, as detailed herein, to believe that, since May 18, 2005,
and extending to September 15, 2012, there operated in Miami -Dade County, Florida, a Florida
corporation called ALMANI MARKETING (hereinafter referred to as "ALMANI "), and that
ALMANI is an "Enterprise" within the meaning of Florida Statute §895. Your Affiant has
probable cause to believe that from May 18, 2005, and extending to September 15, 2012, the
subjects, GUS LOPEZ (hereinafter referred to as "LOPEZ ") and PIERRE LANDRIN
(hereinafter referred to as "LANDRIN "), were associated with the Enterprise and conducted or
participated, directly or indirectly, in such Enterprise through a pattern of Racketeering activity
by engaging in at least two incidents of Racketeering conduct that had the same or similar
intents, results, victims, or methods of commission, or were otherwise interrelated, and were not
isolated incidents, in violation of Florida Statute §895.03(3). Each of these incidents of
Racketeering conduct consisted either of Money Laundering under Florida Statute §896.101
and/or Bribery under Florida Statute §838.015'- and/or Bid Tampering under Florida Statute
§838.22 and/or Unlawful Compensation under Florida Statute §838.016 and/or Official
Misconduct, under Florida Statute §838.022 and will be detailed below.
Your Affiant also has probable cause, as detailed herein, to believe that the subjects,
LOPEZ AND LANDRIN, have committed nine (9) counts of Money Laundering in an amount
equal to or greater than twenty thousand dollars ($20,000.00) but less than one hundred thousand
dollars ($100,000.00), a Second Degree Felony, in violation of Florida Statute §896.101(5)(b),
seventeen (17) counts of Money Laundering in an amount greater than three hundred dollars
($300.00) but less than twenty thousand dollars ($20,000.00), a Third Degree Felony, in
violation of Florida Statute §896.101(5)(a), six (6) counts of Bribery a Second Degree Felony, in
violation of Florida Statute §896.101, three (3) counts of Bid Tampering in violation of Florida
Statute §838.22, thirteen (13) counts of Unlawful Compensation, a Second Degree Felony, in
violation of Florida Statute §838.016 and as to LOPEZ, one (1) count of Official Misconduct, a
Third Degree Felony, in violation of Florida Statute §838.022.
Your Aunt also has probable cause, as detailed herein, to believe that MARIA
ALEJANDRA PINEDA AKA MARIA. ALEJANDRA PINEDA (hereinafter referred to as
"PINEDA ") and LOPEZ, have committed one (1) count of Money Laundering in an amount
greater than three hundred dollars ($300.00) but less than twenty thousand dollars ($20,000.00),
a Third Degree Felony, in violation of Florida Statute §896.101(5)(a) and one (1) count of
Unlawful Compensation, a Second Degree Felony, in violation of Florida Statute §838.016.
ASA: Affiant: Judge:
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It should be noted that this affidavit is being submitted for the purpose of establishing
probable cause, your affiant has not included every aspect, fact, or detail of this investigation.
LOPEZ (DOB 7/26/60 SSN was the Procurement Director for the City of
Miami Beach (hereinafter referred to as "the City ") from April 2000 through March of 2012.
LOPEZ is married to PINEDA. According to Miami -Dade Clerk of Courts records, they were
married in November of 201.0.
As Procurement Director, LOPEZ' responsibilities included an emphasis. on planning,
assigning and reviewing the work of professional procurement coordinators, buyers and clerical
employees engaged in the purchase of various commodities and services for use by the City. As
part of his duties as Procurement Director, LOPEZ had access to Requests for Qualifications
(hereinafter "RFQ ") and Requests for Proposals (hereinafter "RFP ") that the City was seeking
bids in advance of the release of the RFQ or RFP. LOPEZ also had access to Invitations to Bid
(hereinafter "ITB ") and complete access to the JOC program (hereinafter "JOC "). JOC is a
construction program focused on managing relatively small projects ranging from several
thousand dollars to multi- million dollar capital projects. The City works with a consultant, the
Gordian Group, to manage 31 contractors over seven general contracts. The seven categories in
the JOC program are Streetscapes, Vertical, Horizontal, Electrical, Mechanical,
Painting /Waterproofing and Roofing, The benefit of having JOC is that it allows the City of
Miami Beach to have quality contractors on -call for a quick response to construction projects and
being able to bypass the bid process since the contractors were already selected through an ITB.
Overall, the process normally is able to save the City time and money while securing a contractor
at a fair market price. However, there are contracts within the JOC program that require multiple
bids (also known as cost proposals) amongst the JOC contractors. At the direction of the City
Commission, any project with estimated costs over a million dollars requires multiple bids
whereby the City must request quotes from at least three contractors. Additionally, within the
JOC program, the City has the discretion to require multiple bids on any project, if necessary.
RFP, RFQ, ITB, JOC BIDDING PROCESSES
The bidding processes for RFPs, RFQs and ITBs are different from the bid process
(request for proposals) in JOC. Most significantly, the bid or request for proposal process in
JOC is less formal. As a result, it is more susceptible to tampering and manipulation.
When a RFP, RFQ or ITB is issued to the public for bidding, there is a deadline and the
submitted bids are sealed. The deadline is strictly adhered to and all the bids remain sealed until
they are opened at the same time, after the deadline. So, there is no opportunity for one company
to find out a competitors bid prior to submitting their own bid.
For the JOC program, when the City requests proposals (bids) from specific companies,
the companies can submit the response (bid) via email, hand delivery, fax, etc. There is no
requirement that the bids be sealed. Additionally, there are instances where the City does not
strictly adhere to the deadline. Companies are sometimes allowed to submit proposals (bids)
after the deadline passes. Because of that, the individuals with the City who receive or have
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access to the submitted proposals are able to see one companies' bid before they may receive a
competitor's bid,
FINANCIALS (LOPEZ AND PINEDA)
Other than the salary he received from the City, LOPEZ was not permitted to receive
compensation in any form for work relating to his duties as Procurement Director. LOPEZ was
required to file Source of Income Statements as part of his employment with the City. The
Source of Income Statements required LOPEZ to list every source of income LOPEZ received
each year. According to the Source of Income Statements filed by LOPEZ for the years 2006
through 2010, he received no income other than his salary from the City. No Source of Income
Statements were filed for the years 2011 and 2012.
A review of LOPEZ' SunTrust account statements and deposits (account
-) reflects that over $40,000 in cash was deposited into the account from January
2009 through December 2009, $58,000 in cash was deposited from January 2010 through
December 2010 and over $30,000 cash was deposited from January 2011 through December
2011. It should be noted that his paycheck from the City was deposited via direct deposit into
his account, so his salary from the City was not the source of the cash deposits.
As part of this investigation, a subpoena was issued to the Florida Department of
Revenue for a Wages and Hour Information Report for PINEDA. The Wage Report for
PINEDA indicates that no company in the State of Florida has paid taxes on any monies paid to
her since 2003. During the course of executing a search warrant on the home of LOPEZ and
PINEDA, the 2010 joint tax returned they filed was obtained along with LOPEZ' 2010 Federal
W -2 Wage and Tax Statement. According to their joint tax return, their only source of income in
2010 was LOPEZ' salary from the City in the amount of $133,761.60. During the execution of
the search warrant, Detective Raul Busquet interviewed PINEDA. PINEDA told Detective
Busquet that she met LOPEZ approximately four years earlier at a charity event on Miami
Beach. PINEDA said that prior to meeting LOPEZ she had done some freelance modeling,
appearing in infomercials and magazines, but had not worked since they were married, She
indicated that she had not received a paycheck or cash salary since they were married.
PINEDA's Regions Bank accounts for the time period of January 2006 through March
2012 were obtained and reviewed during the course of the investigation. The following three
accounts were discovered as part of this investigation:
1
a. Open from 2002 through August 2010;
b. From January 2007 through August 2010 deposited total of just over $36,000;
2.
a. Open from August 2010 through September 2011;
b. Opened with a $5,000.00 check from International Data Depository;
3.
ASA: V Affiant: Judge:
a. Open from October 2011 through March 2012.
b. Opened with $4,000.00 cash deposit.
According to the records, PINEDA received money from few companies during that
time period that would be consistent with work related compensation. There is nothing in the
records to indicate that she had continuous or frequent income from any one source that would
indicate consistent employment or contracted work. Over the course of a five year period from
the beginning of 2007 through the end of 2011, PINEDA deposited just over $51,000.00 total in
the three accounts which averages out to approximately $10,000.00 per year.
Account was opened in August of 2010 with a $5.000.00 check from
International Data Depository Inc. (hereinafter "IDD ") made out to Maria Alejandra PINEDA. It
should be noted that one of IDD's clients is the City, for which it provides off site records
management, which is discussed in more detail later in this affidavit. Bank records indicate that
account( I was open from August 2010 through September 2011. A total of just over
$10,000.00 was deposited in the account during that 13 month time period.
On October 21, 2011 account ` was opened with a $4,000.00 cash deposit.
The account was closed in March of 2012. There was another deposit of $554.00 made on
December 9, 2011. No other money was deposited into the account during the five months it
was open.
PEER-RE LANDRIN AND ALMANI NURIKE
LANDRIN has been a friend of LOPEZ since they worked together at the Miami -Dade
School Board. They have known each other for approximately 20 years. In the early 1990's,
LOPEZ and LANDRIN worked together as buyers in the purchasing department for the School
Board. Over the years LOPEZ and LANDRIN stayed in touch and in 2000 LOPEZ became the
Procurement Director at the City.
In 2005, LOPEZ planned with LANDRIN to form a consulting company to obtain clients
who were companies seeking to do business with the City. The company that was formed and
that LANDRIN operated under was known as ALMANI Marketing. The plan was for
LANDRIN to get hired on as a consultant with companies wanting to do business with the City
and then LANDRIN would split all proceeds with LOPEZ 50150. There were numerous times
over the course of the years that LOPEZ would exert influence on or provide information and
advice to LANDRIN relating to the clients ALMANI had obtained that were doing business or
seeking to do business with the City. The same influence, information and advice was not
available to other companies who sought to do the same or similar business with the City. On
multiple occasions, ALMANI clients obtained competitive advantages due to information
provided by LOPEZ that was not available to competing companies or the public. Many of the
companies that hired LANDRIN to assist with getting business for the City were referred by
LOPEZ. All but a few of the companies that hired LANDRIN as a consultant ended up getting
contracts with the City. With the exception of a couple of clients, all of ALMANI's success and
income was tied directly to contracts its' clients obtained with the City.
ASA: �� Affiant: Judge: � D
FINANCIALS (ALMANI AND LANDRIN)
From the inception of ALMANI through the end of LOPEZ' employment as Procurement
Director for the City, approximately 16 companies who sought to do business with the City
either hired ALMANI or LANDRIN personally as a consultant or compensated ALMANI or
LANDRIN personally in some fashion for business relating to the City. LOPEZ was given cash
by LANDRIN from every one of the 16 companies. Twelve of the 16 companies who hired
LANDRIN as a consultant sought to get business within the JOC program. The twelve
companies and the compensation agreements they had with ALMANI and LANDRIN personally
are listed below:
1. Harbour Construction (Streetscapes JOC 37 -09/10 and Vertical JOC 22- 08/09)
a. $7,500 initial payment;
b. $7,500 when awarded Vertical JOC;
c. 3% of all payments made under contract awarded.
2. Ric Man Construction (Streetscapes JOC 37- 09/10)
a. $5,000 initial payment;
b. $5,500 when awarded Streetscapes JOC;
c. 1% of all payments made under contract awarded.
3. Trans Florida Development (Streetscapes JOC 37- 09/10);
a. $3,000 initial payment;
b. $5,000 when awarded Streetscapes JOC;
c. $5,000 fee for committee ranking error;
d. 2% of all payments made under contract awarded.
4. Matrix Construction!(Vertical JOC 22- 08/09);
a. $3,000 initial payment;
b. $5,000 when awarded Vertical JOC.
5. Gerrits Construction (Vertical JOC 22- 08/09);
a. $7,500 initial payment;
b. $7,500 when awarded Vertical JOC;
c. 1% of all payments made under contract awarded.
6. Coastland Construction (Vertical JOC 22- 08/09);
- $93,000 fee for assignment ($105,000 less $12,000 payout to Gerrits).
7. H.A. Contracting (Horizontal JOC 23- 08/09);
a. $5,000 initial payment;
b. $5,000 when awarded Horizontal JOC.
8. Ric Man International (Horizontal JOC 23- 08/09);
a. $3,000 initial fee;
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b. $5,000 when awarded Horizontal JOC;
c. 1 % of all payments made under contract awarded.
9. David Mancini and Sons Incorporated (DMSI) ( Horizonal JOC 23- 08/09);
a. $60,000 fee for assignment ($100,000 less $40,000 payout to Unitech);
b. 1% of all payments made under contract awarded.
10. Downrite Engineering Corporation (Horizontal JOC 23- 08/09);
a. $3,000 initial fee;
b, $5,000 when awarded Horizontal;
c. 1% of all payments made under contract awarded.
11. Unitech Builders Corporation (Horizontal JOC 23- 08/09);
- no fee agreement
12. Coastline Painting Systems Incorporated (Painting /Waterproofing JOC 26- 08/09).
a, $3,000 initial fee;
b. $5,000 when awarded Painting JOC;
c. I% of all payments made under contract awarded.
There are four the companies that hired ALMANI (LANDR.IN) as a consultant and had
compensation agreements, but who were not in the JOC program. They are listed below:
1. Blissberry LLC (RFP 34- 08/10);
a. $2,500 initial fee;
b. $2,500 when awarded contract.
2. Neighborhood Maintenance (08- 04/05);
- 5% of all payments made under contract awarded.
3. RAS III Incorporated (ITB 12- 05/06);
- $85041,000 per month of payments made on contract awarded.
4. Security Alliance (34- 05/06);
- $2,000 per month of payments made on contract awarded.
A review of bank records for ALMAM Marketing and LANDRIN indicate he received in
excess of $600,000.00 over the course of approximately seven years from the above- listed
companies. Testimony from LANDRIN indicates he paid LOPEZ approximately fifty percent of
all the money he received. It should be noted that every payment made from LANDRIN to
LOPEZ was made in cash so there was no record of the transactions. This was an understanding
between LANDRIN and LOPEZ.
ASA: Affiant: Judge:
OPERATION "GOOD NEWS"
As part of the investigation, LANDRIN cooperated with investigators and agreed to take
part in a proactive operation known as "Good News." As part of his cooperation, he agreed to
set up a meeting with LOPEZ on September 14, 2012. Prior to the meeting, LANDRIN was
provided $3,450.00 of documented U.S. Currency by your Affiant. The meeting took place
partly in LANDRIN's vehicle and partly in a restaurant. The meeting was video and audio
recorded. During the course of the meeting, LANDRIN informed LOPEZ that he had recently
received money from one of the companies that did business with the City, Ric -Man
Construction. In the video, LANDRIN is seen showing LOPEZ a bank envelope that contained
the $3,450.00 in cash that was provided to him by your Affiant. He told LOPEZ, "We got
something from Ric -Man Construction ... Not International ... So this is ... There was two checks. I
guess two P, O's came in totaling $6,900. It was good. That's for you to replenish your Puerto
Rico fund, " LANDRIN then set the money down and the conversation continued. There came a
point when the conversation turned to a discussion about money that was exchanged and
LOPEZ, referring to past monies that was paid to him by LANDRIN, says, "No matching... and
never the same day.,. Same thing with you and I ... They're not going to be able to prove that
connection... this amount came in ... a week later he deposited this amount ... It's never going to
show up like that. " Shortly thereafter they exited the vehicle to enter the restaurant. As they
exited, LOPEZ grabbed the envelope of cash. As part of the operation, investigators tracked the
whereabouts of LOPEZ after he left the meeting with LANDRIN. A traffic stop was initiated on
LOPEZ who was driving with an expired tag. Inside LOPEZ' vehicle, investigators found
$3,300.00 of the documented U.S. Currency that had been provided to LANDRIN. The other
$150.00 of documented U.S. Currency was found in the possession of an individual that had
been provided the money by LOPEZ after leaving the meeting with LANDRIN.
During the course of the investigation, sworn testimony was taken from witnesses
associated with numerous of the above - mentioned companies as well as a voluntary statement
provided by LANDRIN. Bank records were obtained for numerous accounts belonging to Gus
LOPEZ, PINEDA, the business account of Gus LOPEZ d/b /a "BIDS," LANDRIN and
ALMANI, Search warrants were authorized and subpoenas issued which enabled investigators to
obtain additional financial documents and emails between different individuals and companies
that will. be referred to in this warrant.
RACKETEERING INCIDENTS
(LOPEZ AND LANDRIN)
A. BID TAMPERING (F.S. 838.22), BRIBERY (F.S. 838.015), MONEY LAUNDERING
(F.S. 896.101), OFFICIAL MISCONDUCT (F.S. 838.022)
1. 35" STREET RESTROOM FACILITIES AND STREET END
IMPROVEM NTS
(PROJECT 236.00.CIP.22- 08/09)
ASA: Affiant: f Judge.
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As part of the JOC program, in August 2009 the City requested cost proposals from JOC
Vertical Contractors Harbour Construction, Matrix and BDI for construction work that was to be
done relating to the 35 Street Restroom Facilities. BDI construction bid $455,303.01, Matrix
bid $413,643.37 and Harbour bid $405,055.50. Harbour won the contract with the City.
According to testimony from Harbour employee David dip, when the City requested that
Harbour submit cost proposals in competition with other JOC companies, Harbour would often
be provided with the amount of the bids from the competing companies before they submitted
their bid. The bid information for the other companies was not public record when the
information was provided to Harbour. No other companies were given access to competitors'
bids prior to submitting their own bids. Tobin testified that he would receive the amount of the
competing companies' bid proposals from LANDRIN so that Harbour could make sure their bid
was lower.
Alexander Guy Lesseur, the person in charge of the JOC program for Harbour, testified
that for the 35 Street Restroom Project, he warted to submit Harbour's cost proposal until he
received the other companies' proposal amounts from Tobin. According to both Tobin and
Lesseur, this provided them a significant advantage because most of the projects were price
driven, meaning the lowest bidder was the likely winner. LANDRIN confirmed that he often
provided competing companies' bids to Harbour prior to the bids being public information.
According to LANDRIN, as the Procurement Director, LOPEZ had access to the competing
companies' bids as they were submitted and would contact LANDRIN with the amounts to relay
to Harbour. LANDRIN testified that he and LOPEZ chose to do this for Harbour because
ALMANI's compensation agreement with Harbour was three percent which was the highest
percentage ALMANI received from any of the companies within JOC. Harbour paid ALMANI
three percent of the entire value of the project and LANDRIN paid half of the three percent to
LOPEZ. The City paid Harbour in excess of $400,000.00 for this project. Three percent would
have been over $12,000.00. Testimony and bank records establish that Harbour paid ALMANI
and LANDRIN personally by check which was deposited into his bank accounts. LANDRIN
then withdrew half the money in cash and delivered it to LOPEZ on multiple occasions.
These actions constitute incidents of Racketeering conduct under Florida Statute §895,
and also constitute one (1) count of Money Laundering in an amount equal to or greater than
three hundred ($300.00) but less than twenty thousand dollars ($20,000.00), a Third Degree
Felony, in violation of Florida Statute §896.101(5)(a), one (1) count of Bribery a Second Degree
Felony, in violation of Florida Statute §896.101, one (1) count of Bid Tampering, a Second
Degree Felony, in violation of Florida Statute §838.22.
2. MIAMI BEACH BOTANICAL GARDENS PROJECT
(PROJECT 429.00.CIP.22- 08/09)
As part of the JOC program, in March of 2011 the City requested cost proposals from
JOC Vertical Contractors Harbour Construction, Gerrits and BDI for construction work that was
to be done relating to the Botanical Gardens. In response, Harbour bid $1,355,892.91 and BDI
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bid $1,251,816.87. Gerrits did not submit a bid. Within a couple of hours after the Botanical
Gardens bids were due, there was an email exchange between LOPEZ and LANDRIN regarding
the Botanical Gardens bid process. In the exchange, LOPEZ wrote to LANDRIN "Why didn't
they wait? " LANDRIN responds shortly thereafter, "Cuz I could not get any guidance from you
while you were in your workshop. " As part of his statement, LANDRIN testified that LOPEZ
was asking in his email why Harbour did not.wait to submit their bid until after LOPEZ had a
chance to provide them BDI's cost proposal'. The plan was. - provide, BDI's
proposal amount to LANDRIN and LANDRIN would relay it to Harbour so thaf ,they could
submit a lower bid.
Even though BDI was the lowest bidder, they did not automatically receive the Botanical
Gardens contract due to differences in what BDI and Harbour included in their proposals.
Subsequently, LOPEZ suggested that both companies be interviewed by a committee, which he
was a part of, to determine who would be awarded the contract. According to Tobin and
Lesseur, there was a plan in place for . LOPEZ to help Harbour get an advantage when the
interviews took place. The plan was to have BDI interviewed first. Then, since he was on the
interview committee, LOPEZ would relay, through LANDRIN, information about BDI's
presentation. That would in turn, enable Harbour to make any necessary changes to have an
advantage when they interviewed. Lesseur prepared documents to make changes after BDI's
information was relayed to them, if necessary. Harbour was relayed information but they did not
end up making any changes. Harbour won the bid for the Botanical Garden Project. Harbour
paid LANDRIN three percent of the entire value of the Botanical Gardens Project. LANDRIN
paid LOPEZ half of the three percent he received. The City paid Harbour over $1,400,000.00 for
the project. Three percent paid to ALMANI and LANDRIN personally was over $44,000.00.
The $44,000.00 was all paid and deposited between July 2011 and May of 2012. Testimony and
bank records establish that Harbour paid ALMANI and LANDRIN personally by check which
was deposited into the bank accounts. LANDRIN then withdrew half of all the money in cash.
He delivered the cash to LOPEZ on multiple occasions.
These actions constitute incidents of Racketeering conduct under Florida Statute §895,
and also constitute one (1) count of Money Laundering in an amount equal to or greater than
twenty thousand dollars ($20,000.00) but less than one hundred thousand dollars ($100,000.00),
a Second Degree Felony, in violation of Florida Statute §896.101(5)(b), one (1) count of Bribery
a Second Degree Felony, in violation of Florida Statute §896.101, one (1) count of Bid
Tampering, a Second Degree Felony, in violation of Florida Statute §838.22.
3. DA_DE BOULEVARD BIKE PATH AND SEAWALL RESTORATION
(PROJECT 387.00.PW.37- 09/10)
As part of the JOC program, in September of 2010 the City requested cost proposals from
JOC Horizontal contractors Harbour Construction, Ric -Man Construction and Envirowaste.
According to sworn witness testimony, Harbour Construction was told by LANDRIN to submit
six separate cost proposals for this project. On November 24, 2010, Guy Lesseur submitted six
separate proposals via email to Gus LOPEZ, all with different proposal totals. As part of this
investigation, six emails were obtained that were addressed to GusLOPEZ(c,,,rniarnibeachfl.gov
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from glQcharbourconstruction.com (Guy Lesseuz's Harbour email) with the subject "FW: Dade
Blvd. Bike Path Project." All six emails contained a Contractor's Price Proposal Summary for
the Dade Boulevard Bike Path Project. Each of the six had a different proposal amount. The
emails were all sent to LOPEZ inside of a 45 minute time period. Once LOPEZ received the
bids from the other companies, he picked the bid from Harbour that would make them the lowest
bidder. The bid LOPEZ picked resulted in Harbour Construction being the successful bidder.
Harbour subsequently was awarded the project. No other companies were permitted to submit
multiple bids or were given access to competitors' bids prior to submitting their own bids.
As part of the JOC program, companies were required by the City to have either a
performance bond or submit a Letter of Credit (hereinafter referred to as a "LOC "). The bond or
LOC was basically.security for the City in case a company failed to complete a project and the
City would need to pay another company to finish the project. For a performance bond, a
company would pay a bonding company a percentage of the total cost of the bond. For example,
if the percentage is three percent and the bond is $1,000,000.00, a company would pay
$30,000,00 fee to bond the project, If a company wants to avoid paying a fee to a bonding
company for a project, it can provide a LOC. However, to use a LOC instead of a bond, a
company has to have enough money to cover the entire cost of the project. For example, if the
project is a $1,000,000.00 project, the company would have to provide proof to the City that it
had that amount of money available to draw on if a project failed.
On December 20, 2010, in an email from Theo Carrasco to Guy Lesseur, Carrasco
advised that the City required an additional payment and perfon bond for the Dade
Boulevard Project. This is because Harbour only had a bond in the amount of $1,000,000.00 and
the Dade Boulevard Project exceeded $3,000,000.00. An additional bond was required for the
project. This would mean that Harbour would be required to pay the bonding company an
additional $60,000.00 for the bonding.
According to LANDRIN, LOPEZ suggested to LANDRIN that they could make more
money with Harbour by allowing them to provide a fraudulant LOC that would satisfy the
additional bonding requirement for Harbour to work on the Dade Boulevard Bike Path and
Seawall Restoration Project. Harbour did not qualify for a LOC because Harbour did not have
sufficient funds to cover the entire value of the contract. LANDRIN agreed to help create and
submit a fraudulent LOC for $30,000.00. He created and then emailed it to Tobin and Tobin
signed it. As part of this investigation, the email from LANDRIN to Tobin containing the LOC
was recovered. After being completed, the LOC was delivered to LOPEZ. Lesseur and Tobin ,of
Harbour both confirmed that they participated in the production or delivery of the fraudulant
LOC. LANDRIN recalls delivering the LOC to LOPEZ. LOPEZ indicated to LANDRIN that
he was going to destroy the document. Tobin and Lesseur indicated that they thought the LOC
had been filed with the City but then removed. They were not sure how the document was
discarded. Investigation revealed that the City has no LOC for Harbour,
In one of the emails found during the course of this investigation, on December 20, 2010,
Lesseur responded to Theo ' Carrasco that Harbour would be providing a LOC to cover the
project. On December 23, 2010, Harbour paid ALMANI $30,000.00 for assistance in falsifying
the LOC. LANDRIN paid LOPEZ $15,000.00 in cash for the fraudulent LOC transaction.
ASA: Affiant. Judge:
11
The Dade Boulevard project is still ongoing. To date, the City has paid Harbour in
excess of $3,600,000.00 for the project and Harbour has paid LANDRIN almost three percent of
that amount. LANDRIN has paid LOPEZ half of what he received. Testimony and bank records
establish that Harbour has paid ALMANI and LANDRIN personally by check, In addition to the
$30,000.00 previously mentioned, over $89,000.00 has been paid to ALMANI and Pierre
LANDRIN for the Dade Boulevard Project which was deposited into the bank accounts for
ALMANI and LANDRIN personally. Between August 2011 and July 2012 in excess of $20,000
was paid to ALMANI or LANDRIN personally and deposited. LANDRIN withdrew half of all
the money he received from Harbour and delivered it in cash to LOPEZ on multiple occasions.
These actions constitute incidents of Racketeering conduct under Florida Statute §895,
and also constitute two (2) counts of Money Laundering in an amount equal to or greater than
twenty thousand dollars ($20,000.00) but less than one hundred thousand dollars ($100,000.00),
a Second Degree Felony, in violation of Florida Statute §896.101(5)(b), one (1) count of Bribery
a Second Degree Felony, in violation of Florida Statute §896.101, one (1) count of Bid
Tampering, a Second Degree Felony in violation of Florida Statute §838.22, one (1) count of
Official Misconduct, a Third Degree Felony, in violation of Florida Statute §838.022.
B. UNLAWFUL COMPENSATION (F.S. 838.016) AND MONEY LAUNDERING (F.S.
896.101)
1. NEIGHBORHOOD MAINTENANCE
LANDRIN testified that he was referred to Neighborhood Maintenance by LOPEZ.
According to LANDRIN, LOPEZ notified him that Neighborhood Maintenance did not meet the
requirements of a particular contract (08 -04/05 Landscape Maintenance Services) they were
interested in bidding on in 2005. LOPEZ told LANDRIN that Neighborhood Maintenance
wanted to bid on the contract but they did not meet certain qualifications. LOPEZ notified
LANDRIN that he should contact Neighborhood Maintenance and offer to assist them in
exchange for a fee. LOPEZ told LANDRIN that Neighborhood Maintenance should submit a
letter to the City requesting that the requirements be lowered so they could compete for the
contract. LANDRIN agreed to contact Neighborhood Maintenance and offer to assist them in
exchange for a fee. LANDRIN agreed with Neighborhood Maintenance President Guimell
Doreste, to assist them in getting the requirements lowered and in exchange he would be paid
five percent of any money they made if they were awarded the contract. The requirements of the
contract were subsequently changed and Neighborhood Maintenance was awarded a landscape
maintenance contract.
Bank records reflect that Neighborhood Maintenance paid ALMANI and LANDRIN
personally in excess of $50,000.00 from the beginning of the original contract which ran 2005
through June 2008 and had two additional one year extensions that ended in 2010. Between July
1, 2006 and October 31, 2006 in excess of $300 was paid to and deposited by LANDRIN from
Neighborhood Maintenance. Between January 1, 2007 and November 30, 2007 in excess of
$300 was paid to and deposited by LANDRIN from Neighboorhood Maintenance. Between
ASA:
Affiant:
Judge:
12
September 1, 2008 and October 30, 2008 in excess of $300 was paid to and deposited by
LANDRIN from Neighborhood Maintenance. Between October 25, 2009 through October 24,
2010 in excess of $20,000.00 was paid to and deposited by ALMANI and LANDRIN personally
from Neighborhood Maintenance. Payments from Neighborhood Maintenance to LANDRIN
were deposited into both his ALMANI bank account and his personal bank account. LANDRIN
withdrew cash from his bank accounts and paid LOPEZ half of all monies he received from
Neighborhood Maintenance for the contract in the form. of cash.
These actions constitute incidents of Racketeering conduct under Florida Statute §895,
and also constitute one (1) count of Money Laundering in an amount equal to or greater than
twenty thousand dollars ($20,000.00) but less than one hundred thousand dollars ($100,000.00),
a Second Degree Felony, in violation of Florida Statute §896.101(5)(b), three (3) counts of
Money Laundering in an amount equal to or greater than three hundred dollars ($300.00) but less
than twenty thousand dollars ($20,000.00), a Third Degree Felony, in violation of Florida Statute
§896.101(5)(a), one (1) count of Unlawful Compensation, a Second Degree Felony, in violation
of Florida Statute §838.016 .
2. RAS III
LANDRIN testified that he originally met Richard Shellow through LOPEZ and that the
three have been friends for over fifteen years. At some point in 2006, LOPEZ asked LANDRIN
if he knew anyone that could go after the ITB 12- 05/06, Waterway Resource Maintenance.
LANDRIN subsequently contacted Richard Shellow of RAS III, which is a telecommunications
company with no experience in Marine clean up. Shellow then proposed that they team up with
Tow Tell Marine Services LLC d/b /a 1420 Tow with John Tellum. Both Tellum and Shellow
then teamed up to submit a bid for the contract.
The contract was awarded to H2O on December 1, 2006 for one year with five additional
one year renewals. The compensation agreement between LANDRIN and Shellow originally
paid LANDRIN $850.00 per month and then increased to $1,000.00 per month. Bank records
reflect that H2O paid LANDRIN in excess of $43,000.00 from the beginning of the contract
through early 2012. Between March 27, 2008 and March 26, 2009 in excess of $300 was paid to
ALMANI and deposited by LANDRIN from RAS III. Between March 29, 2009 and March 28,
2010 in excess of $300 was paid to ALMANI and deposited by LANDRIN from RAS III.
Between April 1, 2010 and March 31, 2011 in excess of $300 was paid to ALMANI and
deposited by LANDRIN from RAS III. Between April 1, 2011 and March 1, 2012 in excess of
$300 was paid to ALMANI and deposited by LANDRIN from RAS III. Payments from RAS III
to LANDRIN were paid with checks and deposited into his ALMANI bank account. LANDRIN
withdrew cash from his bank account and paid LOPEZ half of all monies he received from RAS
III in the form of cash.
These actions constitute incidents of Racketeering conduct under Florida Statute §895,
and also constitute four (4) counts of Money Laundering in an amount equal to or greater than
three hundred dollars ($300.00) but less than twenty thousand dollars ($20,000.00), a Third
Degree Felony, in violation of Florida Statute §896.101(5)(a), one (1) count of Unlawful
Compensation, a Second Degree Felony, in violation of Florida Statute §838.016.
!/
ASA: � Affiant. Judge: -- P
13
3. TRAMS FLORIDA DEVELOPMENT CORPORATION
LANDRIN testified that he originally was referred or introduced to Trans Florida by
LOPEZ some time in 2010, LANDRIN and Gilbert Caamano, an employee of Trans Florida,
discussed LANDRIN assisting Trans Florida with their response to the Streetscapes JOC ITB
(ITB 37- 09/10). LANDRIN and Trans Florida agreed that LANDRIN would assist them for
$3,000 initial fee and $5,000 if they were successful bid winners. On July 22, 2010, Trans
Florida wrote a check to ALMANI for $3,000.00. LANDRIN deposited the check into the
ALMANI account. LANDRIN subsequently withdrew half of the money in cash and paid it to
LOPEZ.
Trans Florida was one of the winning bidders of Streetscapes JOC. The contract was
awarded on November 18, 2010. Subsequently, on November 19, 2010 Trans Florida wrote a
check to ALMANI for $5,000.00 which was deposited into the ALMANI bank account.
LANDRIN subsequently withdrew half of the money in cash and paid it to LOPEZ.
These actions constitute an incident of Racketeering conduct under Florida Statute §895,
and also constitute one (1) count of Money Laundering in an amount equal to or greater than
three hundred dollars ($300.00) but less than twenty thousand dollars ($20,000.00), a Third
Degree Felony, in violation of Florida Statute §896.101(5)(a), one (1) count of Unlawful
Compensation, a Second Degree Felony, in violation of Florida Statute §838.016 .
4. SECURITY ALLIANCE
In April of 2007, Security Alliance was awarded a contract (34- 05/06) for Unarmed
Secuirty Guard Services. The contract was for three years beginning May 1, 2007 and ending
April 30, 2010 with three (3) additional one -year renewal options. In March of 2011, the City
Commission extended Security Alliance's contract until April 30, 2012. The Commission also
authorized the issuance of a new RFP by October 1, 2011, which was six (6) months prior to the
end of the Security Alliance contract.
LANDRIN testified that he knew the owner of Security Alliance, Billy Murphy, for 25
years. LANDRIN and Murphy discussed LANDRIN assisting Security with their response RFP
that the City was going to issue in October 2011. LANDRIN and Murphy agreed that
LANDRIN would assist them for a $2,000 per month fee. From September 2, 2011 through June
29, 2011, Security Alliance wrote eleven $2,000.00 checks to ALMANI. LANDRIN deposited
the checks into the ALMANI account. LANDRIN subsequently withdrew half of the $22,000.00
in cash and paid it to LOPEZ.
These actions constitute an incident of Racketeering conduct under Florida Statute §895,
and also constitute one (1) count of Money Laundering in an amount equal to or greater than
twenty thousand dollars ($20,000.00) but less than one hundred thousand dollars ($100,000.00),
a Second Degree Felony, in violation of Florida Statute §896.101(5)(b), one (1) count of
Unlawful Compensation, a Second Degree Felony, in violation of Florida Statute §838.016.
ASA: IV_
Affiant:
Judge:
v
IN
5. RIC-MAN CONSTRUCTION
David Mancini of DMSI introduced the owner of Ric -Man Construction, Daniel Mancini
to LANDRIN. LANDRIN and Daniel Mancini, discussed LANDRIN assisting Ric -Man
Construction with their response to the Streetscapes JOC ITB (ITB 37- 09/10). LANDRIN and
Ric -Man Construction agreed that LANDRIN would assist them for $5,000 initial fee and $5,500
and I% of all payments made on the contract if they were successful bid winners. On October 4,
2010, Ric -Man Construction wrote a check to ALMANI for $5,000.00. LANDRIN deposited
the check into the ALMANI account. LANDRIN subsequently withdrew half of the money in
cash and paid it to LOPEZ.
Ric -Man Construction was one of the winning bidders of Streetscapes JOC,
Subsequently, on November 2, 2010 Ric -Man Construction wrote a check to ALMANI for
$5,500.00 which was deposited into the ALMANI bank account. LANDRIN subsequently
withdrew half of the money in cash and paid it to LOPEZ. On September 14, 2012, during the
course of an operation by your Affiant, LOPEZ accepted $3,450,00 cash from LANDRIN
knowing that it was 50% of the proceeds Ric-Man Construction paid ALMANI relating to the
contract with the City.
These actions constitute an incident of Racketeering conduct under Florida Statute §895,
and also constitute one (1) count of Money Laundering in an amount equal to or greater than
three hundred dollars ($300.00) but less than twenty thousand dollars ($20,000.00), a Third
Degree Felony, in violation of Florida Statute §896.101(5)(a), one (1) count of Unlawful
Compensation, a Second Degree Felony, in violation of Florida Statute §838.016.
6. RIC-MAN INTERNATIONAL
LANDRIN testified that he originally was referred or introduced to David Mancini when
he was an owner of Ric -Man International. LOPEZ made the referral. LANDRIN and David
Mancini discussed whether Ric -Man International would be interested in the JOC program,
specifically Horizontal JOC ITB (ITB 23- 08/09). LANDRIN and Ric -Man agreed that
LANDRIN would assist them for $3,000 initial fee and $5,000 and 1% of all payments made on
the contract if they were successful bid winners.
Ric -Man International was one of the winning bidders of Horizontal JOC. The contract
was signed by David Mancini on. August 26, 2009. Ric -Man International paid ALMANI in
excess of $80,000.00 on or between August 12, 2009 and August 11, 2010. The checks were
deposited into the ALMANI bank account. LANDRIN subsequently withdrew half of the money
in cash and paid it to LOPEZ.
These actions constitute an incident of Racketeering conduct under Florida Statute §895,
and also constitute one (1) count of Money Laundering in an amount equal to or greater than
twenty thousand dollars ($20,000.00) but less than one hundred thousand dollars ($100,000.00),
ASA: Affiant: Judge:
15
a Second Degree Felony, in violation of Florida Statute §896.101(5)(b), one (1) count of
Unlawful Compensation, a Second Degree Felony, in violation of Florida Statute §838.016.
7. DAVID MANCINI & SONS INCORPORATED (DMSI)
David Mancini left Ric -Man International and formed DMSI in October of 2010. In
addition to the monies LANDRIN received as part of the assignment that is discussed in this
warrant, DMSI agreed to pay LANDRIN I% of all payments made on the contract for Horizontal
JOC (ITB 2308/09).
DMSI has paid ALMANI in excess of $30,000.00 on or between June 5, 2011 and June
4, 2012 as part of the agreed 1% of payments made for work DMSI has done while on the
Horizontal JOC. The checks were deposited into the ALMANI bank account. LANDRIN
subsequently withdrew half of the money in cash and paid it to LOPEZ.
These actions constitute an incident of Racketeering conduct under Florida Statute §895,
and also constitute one (1) count of Money Laundering in an amount equal to or greater than
twenty thousand dollars ($20,000.00) but less than one hundred thousand dollars ($100,000.00),
a Second Degree Felony, in violation of Florida Statute §896.101(5)(b), one (1) count of
Unlawful Compensation, a Second Degree Felony, in violation of Florida Statute § 83 8,016.
8. MATRIX CONSTRUCTION
LANDRIN was referred or introduced to Carlos Ardivin by LOPEZ some time in 2009.
LANDRIN and Ardivan discussed LANDRIN assisting Matrix with their response to the
Vertical JOC ITB (ITB 22- 08/09). LANDRIN and Matrix agreed that LANDRIN would assist
them for $3,000 initial fee and $5,000 if they were successful bid winners. On March 2, 2009,
Matrix wrote a check to ALMANI for $3,000.00. LANDRIN deposited the check into the
ALMANI account. LANDRIN subsequently withdrew half of the money in cash and paid it to
LOPEZ.
Matrix was one of the winning bidders of Vertical JOC. Subsequently, on July 23, 2009
Matrix wrote a check to ALMANI for $5,000.00 which was deposited into the ALMANI bank
account. LANDRIN subsequently withdrew half of the money in cash and paid it to LOPEZ.
These actions constitute an incident of Racketeering conduct under Florida Statute §895,
and also constitute one (1) count of Money Laundering in an amount equal to or greater than
three hundred dollars ($300.00) but less than twenty thousand dollars ($20,000.00), a Third
Degree Felony, in violation of Florida Statute §896.101(5)(a)one (1) count of Unlawful
Compensation, a Second Degree Felony, in violation of Florida Statute §838.016.
-e- 1 ---' V
ASA: Affiant: Judge:
16
9. H.A. CONTRACTING CORPORATION
LANDRIN was referred or introduced to Henry Angelo of H,A. by LOPEZ some time in
2009. LANDRIN and Angelo discussed LANDRIN assisting H.A, with their response to the
Horizontal JOC ITB (ITB 23- 08/09). LANDRIN and H.A. agreed that LANDRIN would assist
them for $5,000 initial fee and $5,000 if they were successful bid wimlers. On March 24, 2009,
Matrix wrote a check to ALMANI for $5,000.00. LANDRIN deposited the check into the
ALMANI account. LANDRIN subsequently withdrew half of the money in cash and paid it to
LOPEZ,
H.A. was one of the winning bidders of Horizontal JOC. Subsequently, on August 4,
2009, H.A. wrote a check to ALMANI for $5,000.00 which was deposited into the ALMANI
bank account. LANDRIN subsequently withdrew half of the money in cash and paid it to
LOPEZ.
These actions constitute an incident of Racketeering conduct under Florida Statute §895,
and also constitute one (1) count of Money Laundering in an amount equal to or greater than
three hundred dollars ($300.00) but less than twenty thousand dollars ($20,000.00), a Third
Degree Felony, in violation of Florida Statute §896.101(5)(a), one (1) count of Untawful
Compensation, a Second Degree Felony, in violation of Florida Statute §838.016.
10. COASTLINE PAINTING SYSTEMS INCORPORATED
LANDRIN was referred or introduced to John Squillace of Coastline by Carlos Ardivan
some time in 2009. LANDRIN and Squillace discussed LANDRIN assisting Coastline with their
response to the Painting JOC ITB (ITB 26- 08/09). LANDRIN and Coastline agreed that
LANDRN would assist them for $3,000 initial fee and $5,000 if they are successful bidders plus
1% of all payments made on the contract if they were successful bid winners. On March 9,
2009, Coastline wrote a check to ALMANI for $3,000.00, LANDRIN deposited the check into
the ALMANI account. LANDRIN subsequently withdrew half of the money in cash and paid it
to LOPEZ.
Coastline was one of the winning bidders of Painting JOC. Subsequently, on July 21,
2009, Coastline wrote a check to ALMANI for $5,000.00 which was deposited into the
ALMANI bank account. LANDRIN subsequently withdrew half of the money in cash and paid
it to LOPEZ. Coastline has paid ALMANI in excess of $16,000.00.
These actions constitute an incident of Racketeering conduct under Florida Statute §895,
and also constitute one (1) count of Money Laundering in an amount equal to or greater than
three hundred dollars ($300.00) but less than twenty thousand dollars ($20,000,00), a Third
Degree Felony, in violation of Florida Statute §896.101(5)(a), one (1) count of Unlawful
Compensation, a Second Degree Felony, in violation of Florida Statute §838.016.
i
ASA: Affiant. Judge:
17
11. DOWNRITE ENGINEERING CORPORATION
LANDRIN was referred or introduced to Sam Lobue by Carlos Ardivan sometime in
2009. LANDRIN and Lobue discussed LANDRIN assisting Downrite with their response to the
Horizontal JOC ITB (ITB 23- 08/09). LANDRIN and Downrite agreed that LANDRIN would
assist them for $3,000 initial fee and $5,000 if they were successful bid winners plus 1% of all
payments made on the contract if they were successful bid winners. On April 1, 2009, Downrite
wrote a check to ALMANI for $3,000.00. LANDRIN deposited the check into the ALMANI
account. LANDRIN subsequently withdrew half of the money in cash and paid it to LOPEZ.
Downrite was a successful bidder for the Horizontal JOC but did not sign a contract with the
City due to other issues. Therefore, no additional money was paid by Downrite.
These actions constitute an. incident of Racketeering conduct under Florida Statute §895,
and also constitute one (1) count of Money Laundering in an amount equal to or greater than
three hundred dollars ($300.00) but less than twenty thousand dollars ($20,000.00), a Third
Degree Felony, in violation of Florida Statute §896.101(5)(a), one (1) count of UnlaATul
Compensation, a Second Degree Felony, in violation of Florida Statute §838.016.
12. GERRITS CONSTRUCTION INCORPORATED
LANDRIN has known David Gerrits for 25 years. LANDRIN and Gerrits discussed
LANDRIN assisting Gerrits Construction with their response to the Vertical JOC ITB (ITB 22-
08/09), LANDRIN and Gerrits Construction agreed that LANDRIN would assist them for
$7,500 initial fee and $7,500 if they were successful bid winners. On July 13, 2009, Gerrits
Construction wrote a check to ALMANI for $7,500.00. LANDRIN deposited the check into the
ALMANI account. LANDRIN subsequently withdrew half of the money in cash and paid it to
LOPEZ.
Gerrits Construction was one of the winning bidders of Vertical JOC. Subsequently, on
August 3, 2009 Gerrits Construction wrote a check to ALMANI for $7,500.00 which was
deposited into the ALMANI bank account. LANDRIN subsequently withdrew half of the money
in cash and paid it to LOPEZ.
These actions constitute an incident of Racketeering conduct under Florida Statute §895,
and also constitute one (1) count of Money Laundering in an amount equal to or greater than
three hundred dollars ($300.00) but less than twenty thousand dollars ($20,000.00), a Third
Degree Felony, in violation of Florida Statute §896.101(5)(a), one (1) count of Unlawful
Compensation, a Second Degree Felony, in violation of Florida Statute §83 8.016.
13. BLISSBERRY
Blissberry is a company that sought to operate a concessions business at City owned
location. LANDRIN was referred or introduced to the owner of Blissberry Kim Pham by
LOPEZ some time in 2010. LANDRIN and Pham agreed that LANDRIN would assist her in
preparing response to an ITB (ITB 34- 09/10) for the management and operation of a concession
facility located at South Pointe Park, LANDRIN and Pham agreed that LANDRIN would assist
ASA: Affiant Judge:
them for $2,500 initial fee and $2,500 if Blissberry was the successful bid winners. On July 14,
2010, Blissberry LLC wrote a check to ALMAANI for $2,500.00. LANDRIN deposited. the check
into the ALMANI account. LANDRIN subsequently withdrew half of the money in cash and
paid it to LOPEZ.
Blissberry was the winning bidder. It should be noted that the only other bidder,
Paradigm Hospitality, was deemed non - responsive for failing to meet minimum requirement.
The Letter to the Commission indicates that Paradigm failed to include prices in the their bid.
After being awarded the contract, Blissberry paid ALMANI or LANDRIN personally the
remaining $2,500.00. LANDRIN subsequently paid half of the second $2,500 in cash to
LOPEZ.
These actions constitute an incident of Racketeering conduct under Florida Statute §895,
and also constitute one (1) count of Money Laundering in an amount equal to or greater than
three hundred dollars ($300.00) but less than twenty thousand dollars ($20,000.00), a Third
Degree Felony, in violation of Florida Statute §896.101(5)(a), one (1) count of Unlawful
Compensation, a Second Degree Felony, in violation of Florida Statute §838.016.
C. BRIBERY (F.S. 838.015) AND MONEY LAUNDERING (F.S. 896.101)
1. ASSIGNMENT OF UNITECH TO DMSI
Unitech Builders was one of the companies awarded the Horizontal JOC contract (23-
08/09) on July 15, 2009. In 2010, while Unitech still had a Horizontal JOC contract, DMSI hired
LANDRIN to negotiate an assignment of the Unitech Horizontal JOC contract to DMSI.
According to testimony by DMSI Owner David Mancini, he told LANDRIN he was willing to
pay $100,000.00 for the assignment of Unitech's Horizontal JOC contract. LANDRIN testified
that he negotiated an agreement where Unitech would agree to assign the Horizontal JOC
program to DMSI for $40,000.00. DMSI paid $5000.00 up front to LANDRIN, which he
deposited into his ALMANI bank account, with the balance to be paid upon approval by the
Commission.
On December 8, 2010, the Unitech Horizontal JOC contract was assigned to DMSI by
award of the City Commission. Subsequent to the approval of the assignment by the City, the
remaining $95,000.00 was transferred to LANDRIN from DMSI. Once LANDRIN paid Unitech
the $40 ,000 .00, he and LOPEZ split the remaining $60,000.00. LANDRIN testified that LOPEZ
kept $40,000.00 and LANDRIN kept $20,000.00 even though the normal agreement was 50150.
LANDRIN testified that LOPEZ told him he was taking more than half because he ( LOPEZ) had
done most of the work getting the assignment of the Horizontal JOC from Unitech to DMSI.
The entire $40,000.00 was given to LOPEZ in cash after LANDRIN withdrew it from his
ALMANI bank account. The ALMANI bank account reflects a cash withdrawal of $40,010.00
on December 16, 2010. LOPEZ requested all payments be made in cash so there was no record
of the transactions.
ASA:
N N , !�
Judge: 7?
19
These actions constitute an incident of Racketeering conduct under Florida Statute §895,
and also constitute one (1) count of Money Laundering in an amount equal to or greater than
twenty thousand dollars ($20,000.00) but less than one hundred thousand dollars ($100,000.00),
a Second Degree Felony, in violation of Florida Statute §896.10l(5)(b), one (1) count of Bribery
a Second Degree Felony, in violation of Florida Statute §896.101.
2. ASSIGNMENT OF GERRITS CONSTRUCTION INC TO COASTLAND
CONSTRUCTION
On July 15, 2009 Gerrits was awarded a Vertical JOC contract (22- 08/09). Several
months later, due to the fact that they were not receiving any business from the City, Gerrits
sought to have their Vertical JOC contract assigned to another company. At one point, LOPEZ
referred Coastland Construction to LANDRIN regarding the assignment of Gerrits' Vertical JOC
contract. LANDRIN made contact with Coastland who told him that they were willing to spend
$105,000.00 to get the contract assigned. Gerrits agreed to accept $12,000.00 for the assignment
of their Vertical JOC contract.
On August 19, 2011 LOPEZ sent an email from his personal email account
( gusmiamibeachQyahoo.com ) to LANDRIN. The email was "Subject: JOC Contract
Assignment" and contains what appears to be a sample letter that LOPEZ is providing
LANDRIN for the benefit of Coastland. The sample letter discusses assignment of the JOC
contract and is addressed to LOPEZ. On August 24, 2011, an email was sent from David Gerrits
to Theo Carrasco and Gus LOPEZ. The email contained the same letter that had been provided
by LOPEZ to LANDRIN with "David P. Gerrits" name and phone number included at the end.
The City Commission, approved the assignment of Gerrits Vertical JOC contract to
Coastland on October 19, 2011. On October 20, 2011 LANDRIN received a $105,000.00 wire
transfer from Coastland. LANDRIN's ALMANI bank account reflected a $12,000.00 check
made to David Gerrits on October 20, 2011. According to LANDRIN, because LOPEZ had
"squeezed" him for more than 50% on the Unitech/DMSI assignment, LANDRIN told LOPEZ
that Gerrits was paid $75,000.00 for the assignment to Coastland. That way, LOPEZ would
believe they only had $30,000.00 to split between them. LANDRIN said that LOPEZ
"squeezed" him for $25,000.00 of the $30,000.00 they supposedly had to split. LANDRIN paid
LOPEZ the $25,000 in cash. LANDRIN's ALMANI bank account records reflect that he cashed
two checks totaling $23,000.00 in cash on October 21, 2011, the day after he received the wire
transfer from Coastland. LOPEZ requested all payments be made in cash so there was no record
of the transactions.
These actions constitute an incident of Racketeering conduct under Florida Statute §895,
and also constitute one (1) count of Money Laundering in an amount equal to or greater than
twenty thousand dollars ($20,000.00) but less than one hundred thousand dollars ($100,000.00),
a Second Degree Felony, in violation of Florida Statute §896.101(5)(b), one (1) count of Bribery
a Second Degree Felony, in violation of Florida Statute §896.101.
ASA:
W
. f
Judge:
20
3. TRANS FLORIDA DEVELOPMENT
There were two non -JOC related ITBs that Trans Florida bid on and were awarded in
2010. They were known as South Pointe Phase III, IV, V (ITB 17- 09/10) and Star Island Right-
of-Way (ITB 43- 0910). As part of the bidding process, Trans Florida, along with the other
bidders, were interviewed by Technical Review Panels (TRP). After the interviews, the TRP
would rank the bidders which would serve as a recommendation to the City administration.
During one of the bids processes, LOPEZ notified LANDRIN that a mistake was made in the
rankings and that Trans Florida was mistakenly ranked lower than they should have been.
LOPEZ agreed with LANDRIN that LANDRIN would reach out to Trans Florida and offer to
help there improve their ranking, based on information LOPEZ would provide, in exchange for a
fee. With the information provided by LOPEZ, LANDRIN assisted Trans Florida for $5,000 to
be paid if they were successful.
A review of the Commission Memo from South Pointe Phase III, IV, V reflects that the
TRP originally ranked Trans Florida second even though they were the lowest bidder.
Subsequently, a second round of interviews was held by the City administration. In the end,
Trans Florida was the winning bidder. ALMANI was paid $5,000.00 with a check from Trans
Florida. A review of ALMANI bank records reflects a $5,000.00 check deposit from Trans
Florida in addition to the two check deposits from Trans Florida that were previously mentioned.
LANDRIN deposited the check in the ALMANI account and withdrew half in cash. LANDRIN
paid LOPEZ $2,500 in cash.
These actions constitute an incident of Racketeering conduct under Florida Statute §895,
and also constitute one (1) count of Money Laundering in an amount equal to or greater than
three hundred dollars ($300.00) but less than twenty thousand dollars ($20,000.00), a Third
Degree Felony, in violation of Florida Statute §896,101(5)(a), one (1) count of Bribery a Second
Degree Felony, in violation of Florida Statute §896.101.
UNLAWFUL COMPENSATION AND MONEY LAUNDERING
(LOPEZ AND PEvTEDA)
INTERNATIONAL DATA DEPOSITORY ( "IDD ")
IDD provides off site records management services for the City. The original contract
that IDD had with the City was signed in 2004 after they were awarded the RFP. In April 2010,
LOPEZ prepared a Memorandum "Subject: Storage Records Management Services" to City
Manager Jorge M. Gonzalez and Chief Financial Officer Patricia D. Walker. In the
Memorandum, LOPEZ discussed the two options for the City's "records management solution."
One of the recommendations was to continue doing business with IDD by "piggybacking" a
Department of Children and Family Contract. The other recommendation was for the City to
issue a new bid requiring IDD to bid against other competitors. Ultimately, IDD was awarded a
new contract that began July 1, 2010 and expired June 30, 2014.
ii /
ASA: ! Affiant: Judge:_
21
On August 5, 2010 LOPEZ met for breakfast with an owner of IDD, Jorge Bohorquez.
During the breakfast they discussed some consultants that LOPEZ had referred to IDD the
previous year. While discussing the work done by the consultants, LOPEZ told Bohorquez that
there was another consultant that did work for IDD that had not been paid. Bohorquez expressed
discontent that somebody had done some work for IDD and he was not made aware. LOPEZ
told Bohorquez that the consultant was owed $5,000.00 and her name was Maria Alejandra
PINEDA. Bohorquez testified that he did not question LOPEZ because he was a public official
who had referred the work to them originally. According to Bohorquez, he did not know that
PINEDA was the wife of LOPEZ or that they had any relationship. On August 6, 2010 IDD
wrote a check to Maria Alejandra PINEDA which she deposited into a newly opened account on
August 9, 2010. According to bank records, the same day PINEDA wrote a check out of the
account to LOPEZ for $4,000.00 which he deposited into his Suntrust Account.
These actions constitute one (1) count of Money Laundering in an amount equal to or
greater than three hundred dollars ($300.00) but less than twenty thousand dollars ($20,000.00),
a Third Degree Felony, in violation of Florida Statute §896.101(5)(a), one (1) count of Unlawful
Compensation, a Second Degree Felony, in violation of Florida Statute §838.016.
Affiant
Ricardo Arias 02 -589
Sworn to and subscribed before me, this If day of October, 2012
uiourt Judge
is 1 Circuit of F1
ASA:
Affiant:
Judge: