Oct 5, 2009 9:24 pm US/Eastern
Five Arrested In Public Corruption Probe
MIAMI (CBS4) ―
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Anibal (left) and Milagro Pabon have been charged with fraud in a Miami-Dade corruption probe involving construction contracts.
Miami Dade Corrections
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Nelson Gonzalez was one of six individuals arrested in a construction corruption probe in Miami-Dade.
Miami-Dade Corrections /CBS
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George Munne
Miami-Dade Corrections /CBS
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Ivan Barkovic
Miami-Dade Corrections /CBS
CBS4 News has learned that five South Florida business managers have been jailed after being accused of scheming against Miami-Dade County for taking advantage of its Small Business Development Program. That program is in place to make sure disadvantaged and oft-times minority-owned businesses get their fair share of County contracts.
Investigators tell
CBS4 Reporter Natalia Zea, that Anibal Pabon and his wife Milagro run a disadvantaged, minority-owned engineering company but they allegedly took a kickback from a bigger company in exchange for pretending they were working on a county project with that bigger business.
That bigger company is American Earth Movers, an engineering and land dredging company accused of masterminding the scheme to ensure they were awarded a $1.3 million county bid to restore the Virginia Key wetlands in 2008.
Police Detective Juan Koop said both companies, "Went to great lengths to give the appearance that they were complying with the small business development requirements... They generated a wide range of documents to make it look like the minority company did work, when in fact they did not do the work."
The top managers of both of the companies have been charged with one count of Organized Scheme to Defraud, which is a first degree felony. Another Pabon Engineering employee is also expected to be arrested soon.
Zea also learned that American Earth Movers has a current multi-million dollar contract with the County. Even though, back in April County Staff warned the Miami-Dade County Commission about past alleged violations against the company.
Since August, that new beach restoration contract has paid American Earth Movers $1.6 million – all in tax dollars. The County has another $800,000 waiting for the company for future projects. It's not clear whether they'll be allowed to collect.
Right now, they've got bigger problems: felony charges.
Zea checked with County officials to see if the company will be allowed to work on those allocated projects. The County Attorney's office is still looking into it.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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