Mar 2, 2007 9:28 pm US/Eastern
Builder Accused Of Stealing From Miami's Poor
by Gary Nelson
MIAMI (CBS4) ―
One of Miami-Dade's most prominent civic leaders, developer Raul Masvidal, was arrested Friday on grand theft and organized fraud charges, accusing him of siphoning tens of thousands of dollars from the county's housing agency to buy himself a sculpture of a giant watermelon slice.
Masvidal will become the second developer in recent months accused of stealing money from the Miami-Dade Housing Agency while thousands of poor families scraped by.
He turned himself in on Friday. The Miami-Dade state attorney's office said if convicted of the first-degree felonies, he could face as many as 30 years in prison.
According to investigators from the Miami-Dade inspector general's office, Masvidal used county money to buy a $150,000 watermelon sculpture titled "Mars".
Masvidal allegedly concealed the purchase by submitting a fraudulent invoice through a failed housing agency construction project he was managing.
''What a great disappointment,'' said State Attorney Katherine Fernández Rundle. ``He was a respected member of our community. . . . but he turned on his community. He turned on his friends.''
Housing activists cheered Masvidal's arrest today.
"It's great that finally people at the top, with power, with money, with access, and who use that access to steal from the poor are finally going to see jail time," said Gihan Perera from the Miami Workers Center.
But the State Attorney thought it was just embarrassing.
"What we have in this case, instead of a home, a house, built for somebody who needed it, we have a watermelon. Shameful," said Fernandez Rundle.
Masvidal's defense attorney, John Thornton, would not discuss specific allegations but said his client will plead not guilty. ``We look forward to revealing all the facts in court. He has committed no crime.''
Masvidal is among at least a half-dozen people brought under investigation since The Miami Herald's "House of Lies" series last summer revealed chronic misspending and insider deals that allowed developers to reap millions of dollars for affordable housing never built.
In August, developer Oscar Rivero was arrested on charges he spent $736,000 in affordable-housing money to buy himself a South Miami house, plus appliances, a pool and a $3,000 insurance policy.
Masvidal's Hometown Station Ltd. was developing a $25 million headquarters for the housing agency, with the county kicking in $5 million to pay for the construction. But three years later, nothing has been built.
With the office project $8 million over budget and 18 months behind schedule, the county canceled the deal last summer.
Auditors have since reported that Hometown Station misspent at least $3.2 million in public money on excessive management fees and costs unrelated to construction.
Hometown Station attorney George McArdle has called the audit's criticisms ''baseless and unfair,'' and said Masvidal denies wrongdoing. McArdle has also insisted the building project stalled because of the county's mistakes -- not Hometown Station's.
On Thursday, Hometown Station sued the county, saying Miami-Dade is to blame for the construction delays.
But investigators say at least $287,000 in public money was spent fraudulently on artwork.
Masvidal said he used the money to buy a sculpture of stacked cups that would grace the new office complex, acquiring the artwork from a childhood friend, noted Miami artist Julio Larraz. Masvidal had the piece shipped from Italy.
To hide the purchase, investigators allege, Masvidal asked a Texas art broker to create a false invoice that listed only the sculpture of stacked cups -- at the bogus price of $275,000, almost double what it was worth. Added to the bill was shipping and other costs.
Masvidal submitted the invoice as part of the construction deal. Using county dollars, he paid for both sculptures and had them put in storage at general contractor Delant Construction's warehouse.
For years, Masvidal has struggled with finances even as he gained prominence in Miami as a political advisor, philanthropist and businessman. Born in Havana in 1941, he became a Miami banker and in the 1970s was arguably among Miami's most influential Cuban Americans.
A one-time candidate for Miami mayor, he has worked with more than 40 civic organizations, including the ballet, the state Board of Regents and the United Way.
In recent years, Masvidal served on the board of Miami-Dade's Public Health Trust, which governs Jackson Memorial Hospital.
((© 2006 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
CBS4 news partner The Miami Herald contributed material for this repo)
