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OIG No. 20-15: Investigation of Property Tax Homestead ExemptionJoseph M. Centorino, Inspector General TO: FROM: DATE: PROJECT: Honorable Mayor and Members of the City Commission Joseph Centorino, Inspector General September 23, 2020 Property Tax Homestead Exemption Investigation OIG No. 20-15 This investigation into alleged Homestead Exemption fraud was commenced based on information provided to the Inspector General from an anonymous source. The source alleged that a current City of Miami Beach Planning Department employee, Fernanda Sotelo-Chotel, and related family members had committed fraud by falsely claiming Florida Homestead Exemption on Miami Beach properties. The source provided sufficient information regarding concurrently existing homestead exemptions on the identified properties to warrant further investigation for possible fraud. The Homestead Exemption and Save Our Homes (SOH) assessment limitation help thousands of Florida homeowners save money on their property taxes every year. Florida law states that homeowners may receive a $50,000 exemption when someone owns property and makes it their permanent residence or the permanent residence of their dependent. The first $25,000 applies to all property taxes, including school district taxes. The second exemption, up to $25,000, applies to the assessed value between $50,000 and $75,000 and only to non-school taxes (section 196.031, Florida Statutes). After the first year, a home receives a Homestead Exemption and the property appraiser assesses it at just (market) value, the assessment for each following year cannot increase more than three percent or the percent change in the Consumer Price Index, whichever is less. The SOH provision's benefit is equal to the accumulated difference between the assessed value and the just value (section 193.155, Florida Statutes). In sum, the Homestead Exemption and SOH assessment limitation benefits apply for as long as the homeowner resides on the property. Without these benefits, a property owner is subject to assessment at the property's just value and would pay higher annual property taxes. The City of Miami Beach Office of the Inspector General (OIG) contacted the City of Miami Beach Police Department's Internal Affairs Office and a joint investigation was conducted leading to the determination that Ms. Sotelo-Chotel owed penalties and interest totaling $10,918.80 as of February 2020 to the Miami-Dade County Property Appraiser's Office (Property Appraiser's Office) for incorrectly receiving Homestead Exemptions and SOH assessment limitation benefits on a non-owner occupied property located at 1532 Drexel Avenue unit #302 from 2014 through Page 1 of 4 2018. She incorrectly received these benefits on this Miami Beach property despite being ineligible for the exemption, as she has been renting the unit to various tenants since 2014 through New Age Properties. Concurrently, she received the Homestead Exemption and SOH assessment limitation benefits at her permanent owned residence, also located in Miami Beach. Furthermore, it was determined that Ms. Sotelo-Chotel's family members had similarly underpaid property taxes of $66,701.04 (2012 through 2018) and $2,653.35 (2017 through 2018) as of February 2020 on two other Miami Beach properties located at 1428 West Avenue unit #404 and 17 49 Bay Drive respectively. The Property Appraiser's Office analyzed the provided documentation and verified that the three Miami Beach properties were in violation. When properties in violation are identified, the Property Appraiser's Office issues a Notice of Intent to Lien that is recorded and attached against a real property, including a statutorily imposed 50 percent penalty and 15 percent interest per annum for any periods within the last ten years in which the taxpayer was not entitled to, but was granted, a tax exemption or assessment limitation. When the Notice of Tax Lien for Exemptions and Assessment limitation is recorded, it becomes a lien on the real property legally owned by the taxpayer in Florida. For these three non-qualifying Miami Beach properties, the Property Appraiser's Office calculated the total deficiency to equal $80,273.19 ($10,918.80 + 66,701.04 + $2,653.35) through 2018 as of February 2020. These unpaid taxes should have been remitted to the County, and a portion thereof credited to the City of Miami Beach. The documentation was forwarded to the State Attorney's Office. Assistant State Attorney Johnette Hardiman reviewed the case for possible criminal charges and ultimately issued a Prior to Letter to Ms. Sotelo-Chotel, whose attorney responded to the State Attorney's Office and claimed that the improper exemption arose from a mistake by Ms. Sotelo-Chotel. Ms. Sotelo- Chotel, following communication of this letter, cancelled the Homestead Exemption on 1532 Drexel Avenue unit #302 and paid and paid the outstanding $10,918.80 deficiency on the Drexel Avenue property in full on March 13, 2020. Of this amount, $3,873.12 was distributed to the City in April 2020. The State Attorney's Office subsequently closed its investigation and declined to file criminal charges. On August 5, 2020, the OIG contacted the Miami-Dade Property Appraiser's Office, which had determined as of that date that the deficiency owed on 1428 West Avenue #404, owned by other family members, had increased to $69,111.63 and remained unpaid. If paid in full, $16,707.67 of this deficiency would have been distributed to the City of Miami Beach. The amount owed, including the portion to be distributed to the City, will continue to escalate daily until resolved due to the 15% interest per annum levied. It was verified by the OIG that the $2,653.35 deficiency assessed against 17 49 Bay Drive, another family owned property, was paid in full on March 18, 2020. As a result, $1,008.45 was distributed to the City of Miami Beach in April 2020. Because of this investigation, the three properties in question will be properly assessed in future years, resulting in proper taxes being paid to the public entities involved that those entities would have otherwise been deprived of. A copy of this report was provided to Attorney Stephen Binhak, who represents Ms. Sotelo-Chotel, Page 2 of 4 for a written response as provided in Section 2-256(h) of the City of Miami Beach Code. He informed that his client would not be filing any response to the report. The report was also forwarded to the City Manager for any administrative action he may deem appropriate. This investigation is now closed. The reports of the Miami Beach Police Department Internal Affairs Office, Miami-Dade Property Appraiser and State Attorney's Office are attached to this report. Completed by: in? Mark Coolidge, Chief Auditor Date cc: Jimmy L. Morales, City Manager Richard Clements, Chief of Police AJ Prieto, Police Commander Michael Smith, Human Resources Director Thomas Mooney, Planning Director Stephen Binhak, Esquire OFFICE OF THE INSPECTOR GENERAL, City of Miami Beach 1130 Washington Avenue, 6 Floor, Miami Beach, FL 33139 Tel: 305.673.7020 • Fax: 305.587.2401 • Hotline: 786.897.111I Email: CityofMiamiBeachOIG@miamibeachfl.gov Website: www.mbinspectorgeneral.com Page 3 of 3 MIAMI-DADE COUNTY PROPERTY APPRAISER INVESTIGATION UNIT PEDRO J. GARCIA PROPERTY APPRAISER INVESTIGATION REPORT Folio: 02-3234-139-0110 I Property Address: 1532 DREXEL AVE 302 Property Description: Condominium Property Owner/Exemptee(s): ALBERTO SOTELO (TR), THE SOTELO FAMILY TRUST ALBERTO & ALMIRA SOTELO, FERNANDA SOTELO (BEN) Exemption(s): [X] Homestead [] senor [] waowteo[] coon soot» [] veterano pisano[] Fst Resanadet []one COMPLAINT INFORMATION Type of Complaint: RENTAL I Complaint Date: 01/23/2020 I Lead No. 65754 Additional Complaint Details ( roded): Miami Beach Short Term Rental. INVESTIGATOR Investigator: JeNell Marcel I Report Date: 02/04/2020 Case 18715 SUMMARY Synopsis of investigation: THE SOTELO FAMILY TRUST, ALBERTO SOTELO - Trustee, ALBERTO & ALMIRA SOTELO, FERNANDA SOTELO - Beneficiaries acquired the subject property VIA Warranty Deed in 2004. FERNANDA SOTELO was granted Homestead Exemption in 2014. On 01/23/2020 the PA Office received information indicating that the subject property has been used as a rental. DAVID/ACCURINT indicated that Exemptee FERNANDA SOTELO's proofs of permanent residence factors reflect the subject property since her 2014 base year while her mailing address reflect ■■■■I (not the subject) since year 2014. DAVID/ACCURINT indicated that Exemptee's Husband (married; since 01/18/2005), SANDY BENOIT CHOTEL's proofs of permanent residence factors never reflect the subject property since the 2014 base year. His proofs reflect ■■■■I (not the subject) until 03/05/2018 when they migrated to ■■■■■I (not the subject) where he and his Wife, Exemptee FERNANDA SOTELO, share Ownership since 2017, he is registered to vote, and he applied for HEX in 2018 (but was denied). He indicated a move-in date of 10/1/2017. The subject property was listed for rent on Zillow.com (with photos of the empty unit) through New Age Properties on: • 10/08/2014 - $2,800/Month • 12/15/2014-MLS Listing #A2029487 status closed as RENTED on for $2,500/Month DAVID and evidence submitted indicated the following individuals establishing permanent residence at the subject property: • Tenants, SUNIL NARAYAN & ROBERT DUTTON; 12/15/2014 - present (Lease Agreement) There is additional Lease Agreement between Landlord, Exemptee FERNANDA SOTELO and Tenants, Pablo Rosas & Giovanna Rosas commencing 02/28/2012 for $Month that extends through 04/01/2014 (which is after HEX was granted). Findings: Page 1 of 2 Rev. 07/2017 MIAMI-DADE COUNTY PROPERTY APPRAI SER INVESTIGATION UNIT PEDRO J. GARCIA PROPERTY APPRAISER Investigation reveals that Exemptee FERNANDA SOTELO, Beneficiary of THE SOTELO FAMILY TRUST, is in violation of Homestead Exemption for renting the subject property pursuant to F.S. 196.061 for years 2014 - present. Findings are based on the lead information, lease agreements, rental information, and the establishment of residence ofTenants at the subject property. Lien Years 2014 - 2018 with penalties & interest along with a 2019 voluntary cancellation (cut-out) letter Findings are based on confidential information including third parties. Page 2 of2 Rev. 07I2017 MIAMI-DADE COUNTY PROPERTY APPRAISER INVESTIGATION UNIT PEDRO J. GARCIA PROPERTY APPRAISER INVESTIGATION REPORT Folio: 02-3234-154-0080 ¡ Property Address: 1428 WEST AVE 404 Property Description: Condominium Property Owner/Exemptee(s): ALBERTO SOTELO (TR), THE SOTELO FAMILY TRUST, ANABELA & FERNANDA SOTELO (BEN) Exemption(s): 3 Homestead D Senior D Widow(er) D Cilian Dis ability [] veteran osas[] Ft Ressoder [] os COMPLAINT INFORMATION Type of Complaint: RENTAL ¡ Complaint Date: 01/23/2020 ¡ Lead No. 65756 Additional Complaint Details (t rode@): MIAMI BEACH SHORT TERM RENTAL INVESTIGATOR Investigator: JeNell Marcel I Report Date: 02/03/2020 Case 18705 SUMMARY Synopsis of investigation: THE SOTELO FAMILY TRUST, ALBERTO SOTELO - Trustee, ANABELA & FERNANDA SOTELO- Beneficiaries, acquired the subject property VIA Warranty Deed in 2004. ANABELA SOTELO was granted Homestead Exemption in 2007 with the HEX Application on file. 0n 01/23/2020 the PA Office received information indicating that the subject property has been used as a rental unit for approximately 6 years. DAVID/ACCURINT indicated that Exemptee ANABELA SOTELO's proofs of permanent residence factors reflect the subject property since the 2007 base year while her mailing address reflect 1710 BIARRITZ DR (not the subject) since 2013. She voted on 11/06/2012 & 11/06/2018 using address 1710 BIARRITZ DR (not the subject) and has multiple vehicle registrations and utilities connected since year 2014 at this address. DAVID/ACCURINT indicated that Exemptee's Husband (married since 10/17/2004), GIL ALONI's proofs of permanent residence factors reflect the subject property from the 2007 base year until 10/05/2011 when they migrated to 1710 BIARRITZ DR (not the subject) -where he has multiple vehicle registrations since year 2012 and voted using this address on 11/08/2016. DAVID indicated the following individuals establishing permanent residence at the subject property: • ; 12/06/2011 - 10/31/2013 • 12/08/2011 - 11/12/2013 • /26/2014 - 06/13/2017 (12-month Lease Agreement) · E 08/26/2014 - 07/30/2017 (42-month Lease Agreement) • 08/24/2017 - present (FPL Bill) • ; 08/28/2017 - present The subject property has been listed for rent on Zillow.com through New Age Properties on: • 01/23/2014 - $3,800/Month • 03/13/2017 - $3,900/Month • 12/15/2017 - $3,600/Month • 03/18/2019 -- $3,500/Month Various photos of the empty unit listed for rent on Zillow.com indicates MLS Listing #A10240141 Page 1 of 2 Rev. 0742017 MIAMI-DADE COUNTY PROPER'T'Y APPRAISER INVESTIGATION UNIT PEDRO J. GARCIA PROPERTY APPRAISER Findings: Investigation reveals that Exemptee ANABELA SOTELO, Beneficiary of THE SOTELO FAMILY TRUST is in violation of Homestead Exemption for renting the subject property pursuant to F.S. 196.061 for years 2012 - present. Findings are based on the lead information, lease agreement, rental information, and the establishment of residence of multiple Occupants & Tenants at the subject property. Lien Years 2012 - 2018 with penalties & interest along with a 2019 voluntary cancellation (cut-out) letter Findings are based on confidential information including third parties. Page 2 of2 Rev. 07/2017 MIAM I-DADE COUNTY PROPERTY APPRA ISER INVESTIGATION UNIT PEDRO J. GARCIA PROPERTY APPRAISER INVESTIGATION REPORT Folio: 02-3210-002-0300 J Property Address: 1749 BAY DR Property Description: Single Family Property Owner/Exemptee(s): ALBERT R SOTELO TRS, SOTELO FAMILY REVOCABLE TRUST Exemption(s): [X] Homestead [_] senor O Widow(er) O Civilian Disability []veero osa»o[_]FtRosondar [] ow COMPLAINT INFORMATION Type of Complaint: RENTAL J Complaint Date: 01/23/2020 I Lead No. 65757 Additional Complaint Details (tow&ea): MIAMI BEACH SHORT TERM RENTAL . INVESTIGATOR Investigator: JeNell Marcel I Report Date: 02/06/2020 Case 18724 SUMMARY Synopsis of investigation: ALBERT R SOTELO (Trustee), SOTELO FAMILY REVOCABLE TRUST acquired the subject property VIA Warranty Deed in 2013. ALBERT R SOTELO was granted Homestead Exemption in 2017 with the HEX Application on file. On 01/23/2020 the PA Office received information indicating that the Owner does not reside, and that the property is rented. DAVID/ACCURINT indicated that Exemptee ALBERTO RODRIGUES SOUTELO's proofs of permanent residence factors reflect the subject property since the 2017 base year. He relinquished his Connecticut Driver License on 12/28/2016. DAVID/ACCURINT indicated that his Wife, ALMIRA SOTELO's proofs of permanent residence never reflect the subject property, but rather renect, I. a property in which the couple has had Homestead Exemption since 2012. An incorrect Social Security Number on the HEX Application (at 1710 BIARRITZ DR) for Exempte e ALBERT R SOTELO was written, therefore, the duplicale SSN Flag in CAMA did not trigger when HEX was granted at the subject property in 2017. Additionally, Exemptee ALBERT R SOTELO did not disclose the already Homesteaded property on his 2017 HEX Application as his previous address. On 02/04/2020 Evaluator verified with Borough of Naugatuck Connecticut Assessor and Tax Collector websites that Exemptees' Connecticut properties have not benefitted from any property exemptions while having HEX in Miami-Dade County. DAVID/ACCURINT does not indicate other individuals besides family members establishing permanent residence at the subject property. The Clerk of the Courts does not indicate any evictions nor is there evidence of reniai activity at the subject property. Page 1 of 2 Rev. 07/2017 $3 MIAMI-DADE COUNTY PROPERTY APPRAISER INVESTIGATION UNIT PEDRO J. GARCIA PROPERTY APPRAISER Findings: Exemptee ALBERTO SOTELO, Trustee of The SOTELO FAMILY REVOCABLE TRUST is in violation for him and his Spouse, ALMIRA SOTELO, claiming Homestead Exemptions on multiple properties (at the subject property and at 1710 BIARRITZ DR/Folio: 02-3210-001-1181) pursuant to Article VII Sec 6(b) of the Constitution of the State of Florida for years 2017 •· present. Lien Years 2017 & 2018 with penalties and interest along with at 2019 Voluntary Cancellation (Cut-Out) Letter. Findings are based on confidential information including third parties. Page 2 of2 Rev. 07/2017 MIAMI BEACH e@i-.l@e INTERNAL AFFAIRS REPORT I.A. CASE NUMBER: M.B.P.D. CASE NUMBER: COMPLAINANT: DA TE OF INCIDENT: DA TE REPORTED: DATE RECEIVED BY INTERNAL AFFAIRS: January 16, 2020 DATE CASE TOLLED: DATE CASE UNTOLLED: 180 DA Y EXPIRATION DA TE: INVOLVED EMPLOYEES: INVESTIGATOR: ALLEGATION: PERSONS INTERVIEWED: PERSONS NOT INTERVIEWED: DC2020-007 NIA Anonymous Complaint 2014 - present January 16, 2020 N/A N/A N/A Fernanda Sotelo-Chatel (Planning Dept) Sergeant J. Lemus ID# 790 A complaint was received by the Miami Beach Inspector General's Office regarding Planning Department employee, Fernanda Sotelo-Chatel. According to the complaint, Sotelo owns several non-owner occupied rental properties that do not qualify for homestead exemption. NIA N/A Page 1 of 12 DC2020-007 INVESTIGATIVE SUMMARY: On January 16, 2020 Miami Beach Inspector General Joseph, along with Assistant Internal Auditor Mark Coolidge, responded to the Miami Beach Police Department's Internal Affairs office to discuss an anonymous complaint their office received. According to Centorino, an anonymous complaint was received alleging Homestead Exemption fraud. The subject was identified as a City of Miami Beach Planning Department employee - Fernanda Sotelo (Principal Planner). Subject: Fernanda Sotelo-Chotel Principal Planner Planning Department 305-673-7 550 ext. 6877 1700 Convention Center Drive Miami Beach, Florida 33139 The Internal Affairs Unit made contact with the Miami Dade Property Appraiser's Office reference the complaint. The Property Appraiser's office confirmed three properties to be in violation of Homestead Exemption. According to the Property Appraiser's Office, the three properties were acquired by the Sotelo Family Trust and identified as: 1532 Drexel Avenue Apt. 302, Miami Beach, Florida 33139 1428 West Avenue Apt. 404, Miami Beach, Florida 33139 1749 Bay Drive, Miami Beach, Florida 33141 The Property Appraiser's Investigative report detailed that the exemptee, Fernanda Sotelo, is the beneficiary of the Sotelo Family Trust, and is in violation of Homestead Exemption for the property listed at 1532 Drexel Avenue Apt. 302. The property was listed for rent between the years of 2014 to present. Fernanda Sotelo was granted Homestead Exemption in 2014 for the property located at 1532 Drexel Avenue Apt. 302 in Miami Beach. This is the only property identified in which Fernanda Sotelo was granted Homestead Exemption. 1532 Drexel Avenue #302 - Fernanda Sotelo granted Homestead Exemption in 2014. Homestead Penalty total: $10,918.80 (Years 2014-2018) The additional two properties identified to be in violation: 1428 West Avenue ##404 -- Anabela Sotelo granted Homestead Exemption in 2007. Homestead Penalty: $66,701.04 (2012-2018) 17 49 Bay Drive - Page 2 of 12 Albert Sotelo granted Homestead Exemption in 2017. Homestead Penalty: $2,653.35 (2017-2018) DC2020-007 The Property Appraiser's Office stated it issues a Notice of Intent to Lien when a property is found in violation. The liens are recorded and attached against a real property, including statutorily imposed 50 percent penalty and 15 percent interest per annum. The property appraiser will recover from the taxpayer taxes due, a 50 percent penalty and 15 percent interest for any years or years within the last ten years in which the taxpayer was not entitled to, but was granted, a tax exemption or assessment limitation. When the Notice of Tax Lien for Exemptions and Assessment limitations is recorded it becomes a lien on the real property addressed and legally owned by the taxpayer in Florida. Assistant State Attorney Hardiman issued Mrs. Sotelo a Pror to Letter. Mrs. Sotelo's attorney contacted ASA Hardiman and advised that the incident arose from a mistake and has since resolved the incident with the Property Appraiser's Office. Mrs. Sotelo cancelled the Homestead Exemption and paid the homestead penalty, $10,918.80. Assistant State Attorney Hardiman subpoenaed additional documents from the Property Appraiser's Office. The documents were reviewed and ASA Hardiman advised that the State Attorney's Office will not be proceeding with any criminal investigation and advised the criminal investigation is closed. INVESTIGATIVE CHRONOLOGY: January 16, 2020 Miami Beach Inspector General Joseph Centorino and Assistant Internal Auditor Mark Coolidge responded to the City of Miami Beach Police Department's Internal Affairs office regarding a homestead exemption complaint. According to Centorino, an anonymous complaint alleged Homestead Exemption fraud by a City of Miami Beach employee. The subject was identified as a City of Miami Beach Planning Department employee - Fernanda Sotelo (Principal Planner). January 16-17, 2020 Sergeant Lemus reviewed the case file. The properties were identified as follows Page 3 of 12 DC2020-007 Folio Number 02-3234-139-011 O 1532 Drexel Avenue #302 Miami Beach, Florida 33139 Folio Number 02-3234-154-0080 1428 West Avenue #404 Miami Beach, Florida 33139 Folio Number 02-3210-002-0300 1749 Bay Drive Miami Beach, Florida 33141 Folio Number 02-3210-001-1181 1710 Biarritz Drive Miami Beach, Florida 33141 (No Violation Found by the Property Appraiser's Office) The properties were acquired via The Sotelo Family Trust. The Sotelo Family Trust lists Alberto Sotelo as the Trustee and Anabela Sotelo, Fernanda Sotelo and Almira Sotelo as beneficiaries. January 22, 2020 Sergeant Lemus responded to the Miami Dade Property Appraiser's Office located at 111 Northwest 1 Street Suite 71 O and met with Investigation Section Supervisor Ernesto Alonso reference the complaint. January 28, 2020 Sergeant Lemus made contact with Assistant Internal Auditor, Mark Coolidge and provided an update. February 11, 2020 Supervisor Alonso of the Property Appraiser's Office made contact with Sergeant Lemus. According to Alonso, three properties were found to be in violation of Homestead Exemption. Alonso provided a copy of the investigative report for all three identified properties. The Property Appraiser's investigative report detailed that the exemptee, Fernanda Sotelo, is the beneficiary of the Sotelo Family Trust, and is in violation of homestead Page 4 of 12 DC2020-007 exemption for renting the subject property for years 2014 to present. Fernanda Sotelo was granted homestead exemption in 2014 for the property located at 1532 Drexel Avenue Apt. 302 in Miami Beach. This is the only property identified in which Fernanda Sotelo was granted homestead exemption. The findings revealed the subject property was listed for rent on Zillow.com (with photos of the empty unit) through New Age Properties on: • 10/08/2014 - $2, 800/month • 12/15/2014 - MLS listing #A2029487 status closed as rented for S2,500/month February 25, 2020 Property Exemption Clerk Tony Diaz provided Sergeant Lemus the homestead penalty for 1532 Drexel Avenue Apt. 302. The homestead penalty totaled $10,918.80 and was calculated between 2014-2018. (See below attachment) Page I of I Account Number;02-3234-139-0110 iter nate Key. ALBERT & ALMIRA SOTELO TS ALERTO & ALMIRA SOTELO (B8EN) wnet: 1532 0REX VE 302 A4AM BEACH, TL 33139-7956 (+ERNANDOA SOTELO] Prted: 02/25/2020 10.084M Account History Roll 7020 2019 2018 2018 2017 2017 2016 2016 2015 2015 2014 2014 Stacus Pre!imtnary rol cc. Paid-in-full Account Type 2 Due Ht $2,408.53 Acct: Palu-in-tall ct; snpaJ Acct: Paid-in-full ca: Jnpatd Ac Pald-in-fll cc: uupaid Act: Paid-in-full Act. U0ad Kcct: Pala·in-full HL R Hi R Ill R HL R $2.098.51 $1,670.65 $1,826.95 2013 Acct: Paid-in-tull 2012 ct: Pat1-in-full 2011 2010 2009 200B 2007 2006 tct. Paid-in-full cct: Par0·an-full Act. Pal1-in-tuli Acct Pala--full cct. Paid-ia-full ca: Paid-In·full R R R R R R 2005 Act Paid-in-tul Homestead Penalty Total: (20142018) .----- Total Due $10,918.80 $10,918.80 Page 5 of 12 DC2020-007 March 4, 2020 Sergeant Lemus and Lieutenant Gil met with Assistant State Attorney Hardiman to discuss the case investigation. March 11, 2020 Sergeant Lemus met with Assistant State Attorney Hardiman. ASA Hardiman provided Sergeant Lemus a prior to letter sealed in an envelope to be served to Mrs. Fernanda Sotelo. At approximately 1000 hours, Lieutenant Gil and Sergeant Lemus served Mrs. Fernanda Sotelo with the prior to letter at 1700 Convention Center Drive. ASA Hardiman contacted Sergeant Lemus and advised Sergeant Lemus that Mrs. Sotelo would be contacting the Property Appraiser's Office in order to resolve the matter. ASA Hardiman also advised Sergeant Lemus she is in the process of subpoenaing the Property Appraiser's Office for Mrs. Sotelo property records. ASA Hardiman also advised she made contact with Mrs. Sotelo's attorney. March 25, 2020 ASA Hardiman advised Sergeant Lemus she received an email from Mrs. Sotelo's attorney: Stephen Binhak The Law Office of Stephen James Binhak, P.L.L.C. 1221 Brickell Ave., Suite 2010 Miami, Florida 33131 (305) 361-5500 (305) 428-9532 fax binhaks@binhaklaw.com According to Attorney Binhak, the homestead violation at 1532 Drexel Avenue, apartment 302 arose from a mistake. Attorney Binhak stated that Mrs. Sotelo has contacted the Property Appraiser's Office and has paid all outstanding homestead penalties. A copy of the cancellation of homestead and payment receipt were provided. March 30, 2020 Page 6 of 12 DC2020-007 Sergeant Lemus made contact with ASA Hardiman reference the case investigation. ASA Hardiman advised she is in the process of obtaining additional records from the Property Appraiser's Office, however it is currently pending due to the current state of emergency. April 21, 2020 Sergeant Lemus made contact with Chief Auditor, Mark Coolidge, reference a case investigation update. May 15, 2020 Sergeant Lemus made contact with ASA Hardiman reference a case investigation update. May 22, 2020 Sergeant Lemus responded to the Property Appraiser's Office and obtained additional documents reference ASA Hardiman's subpoena for records. May 28, 2020 Sergeant Lemus met with ASA Hardiman reference the case investigation. According to ASA Hardiman, she is currently reviewing the case file. June 5, 2020 Sergeant Lemus continued to review the documents provided by the Property Appraiser's Office reference the below listed properties. Page 7 of 12 DC2020-007 Folio Number 02-3234-139-0110 1532 Drexel Avenue #302 Miami Beach, Florida 33139 ·en ate tt, Account History Roll St»tos fount Type Oae 29 • 2015 M. t un0o .I $1,6705 $1+29 p #fu!un-tal )3 Mt +a r ¿I 2012 otPs' +'ul wt Pa 'u' 20:0 At Pa 'ul 2319 t +'a1 o.4 + _00 t ad.an-t.At iut e fas tail o. E a.-tii ''9, kt+a.. t.4 lame stead Penalty Tota. (20420 8 t·tr l, 1wt,a 1ata D $16,/87.82 On March 13, 2020, Fernanda Sotelo paid the penalty amount of $10,918.80 (Transaction# 21114336) to the Miami Dade Tax Collector at 200 NW 2 Avenue in Miami Florida 33128. Page 8 of 12 DC2020-007 Folio Number 02-3234-154-0080 1428 West Avenue #404 Miami Beach, Florida 33139 lax Sy comt unter 02 34 1,4 018-/1X Atterrate re¢ At.21 )± +ti+(Ry Kw±ti8, +pt¿ 0i» +0+++ ¢-¢WEi 'E #'A MIM95,fL3313 .710 'rtd 0/!u232 9 E) Account History all Tay 2020 2020 2019 2019 7018 201 0'8 201 01' 201i 20 2017 2)6 2016 201o 2216 2015 2015 201 291 2014 2514 2011 201A 2013 2013 2713 2013 7012 2012 2012 12 • 2)1 2010 2010 2009 2009 2009 2008 7628 2008 2007 2007 200 2006 200 200 Status Prelary t id upa.d c: UnpaI ce Paid tuli Mt Padan-fuli +ct. Un,pad A fad in-tul Ct: Unpa ct Pad to ful t., AUnpaid Act. Pad-n.tall ct 'pad t Pi0-in tal. A'unna d ca Pad in !al Kt Pac mr 'g! Kt Pod-mn-fat' it. P3id + fy'! rr! aic tul ct P2rd-in-foil t Paio un tull Ar Pudin-tll Homestead Penalty iotal 201230) Other 1axes total (2019) i0tal u. count 0ue ype Ht A H + + R Ht R Ht n H R R R g 3A4 ,< 11 $6,0353 $0,92 11 $7,896.7 $5,94713 $1164191 $9,593 37 $10.505 23 S6./61.0 $71,732.57 On March 02, 2020, the Property Appraiser's Office sent Mr. Alberto Sotelo a notice to intent to lien for the listed property. The penalty amount was calculated at $66,701.04 for the years of 2012-2018. The calculation was based on taxes, penalties and interest. The notice was sent to 1428 West Avenue #404 and 1710 Biarritz Drive in Miami Beach Florida. Page 9 of 12 DC2020-007 Folio Number 02-3210-002-0300 1749 Bay Drive Miami Beach, Florida 33141 Page i o! I SO AE REVO.A,+ 1U! 1'±/1 06/i Account History Roll Status count Tye Due 2018 2018 2017 2017 ca Jopad Pad m.'u! Act. Joe ct. Ped-in.tuli Hi R I IL R $1./63.94 $1,389.4% 2J16 it Faud.in-'uil 2015 At.Pais iv'ull 204 rt Pat-w tail 2013 t Pad. .+gt 2012 t Paid -tu 291 2010 2909 2008 2007 2006 2006 200 At Pard-+.ul 1cct. ar1-un tul rt a¡tu-in-ful Nt Paii-fut Act P3id no ioull cct: Paid-in-fult Acct. ad-w-full it 0-n-fl' tomes(ea0 Penalty Total. (2006, 2017 2018) Ia!Jue r + R Il ·- $2,653 35 $2,653.35 On March 02, 2020, the Property Appraiser's Office sent Mr. Alberto Sotelo a notice to intent to lien for the listed property. The penalty amount was calculated at $2,653.35 for the year of 2017-2018. The calculation was based on taxes, penalties and interest. The notice was sent to 1749 Bay Drive and 1710 Biarritz Drive in Miami Beach, Florida. Page 10 of 12 DC2020-007 Folio Number 02-3210-001-1181 1710 Biarritz Drive Miami Beach, Florida 33141 (No Violation Found by the Property Appraiser's Office) June 08, 2020 As of this date, ASA Hardiman is reviewing the case file. July 17, 2020 Sergeant Lemus made contact with ASA Hardiman reference the case investigation. Assistant State Attorney Hardiman advised that the State Attorney's Office will not be proceeding with any further criminal investigation and advised the criminal investigation is closed. ASA Hardiman advised she would be providing the State Attorney's Office close out memorandum regarding the case investigation. The Property Appraiser's Office and Mrs. Sotelo have resolved the matter regarding 1532 Drexel Avenue #302. Mrs. Sotelo paid a total of $10,918.80. The case is closed. OFFICIAL RECORDS 1. IA Pro Printout 2. IA Draft Report 3. Property Appraiser's Investigation Report 4. Homestead Exemption Cancellation Form 5. State Attorney's Office Prior to Letter 6. Homestead Exemption Paid Receipt 7. State Attorney's Office Close Out Memorandum Page 11 0f 12 DC2020-007 "I, the undersigned, do hereby swear, under penalty of perjury, that, to the best of my personal knowledge, information, and belief, I have not knowingly or willfully deprived, or allowed another to deprive, the subject of the investigation of any of the rights contained in SS. 112.532 and 112.533, Florida Statutes." Investigator: Sergeant Jorge Lemus Internal Affairs Unit investigator 7 .. 7- I -- ---- Reviewed bf: Lieuténant Tony Gil Interna! Affais mit Lieutenant Date Apoprove nder AJ Prieto Internal Affairs Unit Commander Date Page 12 of 12 DC2020-007 CLOSE-OUT IIEEIIO Crimin al Investigation Special Pr osecutions Intalr e A.S.A.: Johnette Hardiman INVESTIGATION #: 86-20-12 DA TE: June 2, 2020 REVIEWED BY: DATE: ----------- Howard Rosen, Chief Assistant SUBJECT(S): Fernanda Sotelo INVESTIGA TOR: AGENCY: PHONE: □CHARGES FILED CRIME Homestead Exemption Fraud EMPLOYMENT: City of Miami Beach, Principal Planner INTERNAL AFFAIRS INVESTIGA TOR: Sgt. Jorge Lemus AGENCY: Miami Beach Police Department PHONE: 305-673-7920 CONCLUSION COURT CASE NUMBER: STATUTE DEGREE ] OTHER: An anonymous letter was sent to the City of Miami Beach Police Department Internal Affairs Unit and the Miami-Dade County Office of the Property Appraiser.' The letter asserted that the Subject, Fernanda Sotelo, and her family had claimed homestead exemptions on four different properties owned by a family trust, of which the Subject was one of the beneficiaries. Three of those addresses are located in the City of Miami Beach: 1) 1428 West Avenue, Apartment 404; 2) 1532 Drexel Avenue, Apartment 302; and, 3) 171 O Biarritz Drive; one of those addresses is located in the Town of Surfside: 17489 Bay Drive. There was a homestead exemption claimed on all four properties. 1 It is unknown to whom else the letter was sent. The Office of the Property Appraiser investigated the four properties and found a violation with only one property: the 1532 Drexel Avenue apartment. While the Subject lived in the 1532 Drexel Avenue apartment for a time, in 2014 the apartment was rented out. Prior to the rental, the apartment was not in violation of the homestead exemption provided for in section 196.031, Florida Statutes. However, once the apartment was rented out, the homestead was considered to have been abandoned and no longer qualified for the exemption. Section 196.061( 1 ), Florida Statutes, provides in pertinent part: The rental of all or substantially all of a dwelling previously claimed to be a homestead for tax purposes shall constitute the abandonment of such dwelling as a homestead, and the abandonment continues until the dwelling is physically occupied by the owner. However, such abandonment of the homestead after January I of any year does not affect the homestead exemption for tax purposes for that particular year unless the property is rented for more than 30 days per calendar year for 2 consecutive years. There is no criminal penalty in section 196.061, Florida Statutes, for a violation of that section. 2 The Office of the Property Appraiser contacted the Subject regarding the 1532 Drexel A venue apartment. She has since removed the homestead exemption and paid back taxes and penalties. Based on the above, the criminal investigation is closed. There is a criminal penalty for falsifying an application for homestead exemption. Section 196. 131(2), Florida Statutes, provides that: .. Any person who knowingly and willfully gives false information for the purpose of claiming homestead exemption as provided for in this chapter is guilty of a misdemeanor of the first degree..." However, as discussed above, the Subject lived in the 1532 Drexel Apartment for a time.