A Homestead mega-developer known for using federal loan money slated for low-income redevelopment to build a country club and golf course instead escaped punishment for accepting a $500,000 illegal contingency fee.
Wayne Rosen, a South Dade developer, was paid the illegal contingency fee for lobbying on behalf of Red Apple LLC, a subsidiary of Charter Schools USA (CSUSA), the firm that built Keys Gate Charter High School.
Keys Gate is a tuition-free charter school serving elementary and middle school students in Homestead.
Keys Gate is a tuition-free charter school serving elementary and middle school students in Homestead.
The ethics violation was only discovered during the prosecution of former Homestead Mayor Steve Bateman.
Bateman was convicted in 2014 on two counts of public corruption, which earned him a 22-month prison sentence.
Bateman was convicted in 2014 on two counts of public corruption, which earned him a 22-month prison sentence.
Rosen was let off the hook . . . but only after being granted immunity from criminal prosecution for giving his sworn statements in the trial against Bateman in 2013.
Rosen accepted two payments of $250,000 in exchange for lobbying before the Homestead City Council, records show.
However, the three-year period for filing a formal ethics complaint against Rosen had run out.
Walter Harvey, an attorney for the Miami-Dade Public School District, filed a complaint in June 2016 with the Miami-Dade Commissions on Ethics and Public Trust.
But that was about nine months too late.
The illegal scheme began in 2010 when Red Apple entered into a 35-year-lease agreement with the city of Homestead for the construction and development of the Keys Gate Charter High School, or Keys Gate.
The plans for Keys Gate were developed during 2010 and 2011.
The development project would utilize tax-exempt revenue bonds intended for educational facilities to build the school.
Then, later, Rosen entered into an "illegal contingency fee" arrangement with Red Apple in 2011 and 2012 while the loan for the project was pending approval by Homestead City Council members.
According to records from the ethics violation investigation, Rosen assisted Charter Schools USA and Red Apple in applying for the loan approval by Homestead City Council members.
The Homestead City Council ultimately approved the deal on behalf of the city of Homestead.
The Homestead City Council ultimately approved the deal on behalf of the city of Homestead.
During that process, Rosen met with CSUSA staff and elected officials before the construction of the school, the investigation found.
Miami-Dade County's conflict of interest and ethics code prohibits paying contingency fees for lobbying.
The county defines a contingency fee as a "fee, bonus, commission or other compensation contingent on any action, decision or recommendation by any city board, council or staff."
An audit conducted by the School Board in 2015 confirmed $500,000 had been paid to an "undisclosed party" in connection with the development of Keys Gate, which used tax-exempt educational revenue bonds for the cost of its construction.
During his sworn statement to the prosecution of Bateman on February 8, 2013, Rosen admitted on record that he originally had negotiated a $1 million fee with CSUSA.
But that didn't pan out.
"What was the contingency on?" Rosen was asked during his statement.
"Approval of the charter school," the ethics report record says.
Rosen added, on record, that he was expected to work with Homestead city officials at the time to submit the project's application and request all of the needed approvals.
During questioning, Rosen was asked if that process entailed any lobbying.
"I presume so," he replied.
Ethics investigator Karl Ross stated in his close-out report that Rosen violated Miami-Dade County's ethics code.
"Rosen's arrangement with CSUSA would appear to violate the Miami-Dade County ethics code with respect to the contingency fees," Ross wrote.
"It does not appear that the ethics commission can take any further action against Rosen or by extension, CSUSA," he added.
Rosen and his business associates contributed $45,000 to Homestead City Council members for the 2015 election cycle alone, according to an investigative report by the Miami Herald.
Wayne Rosen also loaned money to a Homestead City Councilman for his failed fish restaurant.
Below, you can read the complaint filed by Harvey with the Miami-Dade Commission on Ethics & Public Trust claiming that enforcement action, stemming from an improper payment, should be taken against Rosen.
The complaint states that in exchange for assisting CSUSA, or Red Apple, with obtaining all the necessary approvals from Homestead City Council members, Wayne Rosen ultimately received $500,000 in illegal funds in two separate $250,000 payments.
However, he was expecting $1,000,000, according to records of his testimony.
Wayne Rosen Accepted Illega... by Ben Keller on Scribd
Wayne Rosen Accepted Illega... by Ben Keller on Scribd
Is anyone paying attention?
ReplyDeleteI want to make clear for the record, that while Jimmie Williams did take money from Wayne Rosen, he recused himself from voting on issues affecting Rosen.
ReplyDeleteWilliams was probably the only person on the clowncil who took Rosen's money and did not vote for everything he wanted. For his honesty he got stabbed in the back by Rosen and the council members bought off by Rosen.