The Imelda Marcos of the Florida Keys uses School Board as ATM

When former Adult Education and Career Coordinator Monique Acevedo resigned March 3 after allegations surfaced that she bought a $300 pair of sunglasses and an airline ticket using her school district credit card, no one knew how wide-reaching the investigation into allegations of financial abuse would go.

Her resignation, announced by her husband, Schools Superintendent Randy Acevedo, launched two weeks' of daily revelations that have shaken the community's confidence in the school district and angered teachers and principals who've been asked to do without certain supplies because of a tightening school budget. Parents, taxpayers and school donors have been vocal in their disdain, as well.

Concerns about Monique Acevedo's personal purchases on district credits quickly gave way to worries about her regularly exceeding purchase orders. Then questions soon arose about the whereabouts of the ninth-graders' fundraising money and apparent discrepancies in the cash-only fees cosmetology students paid and the amount deposited. Monique Acevedo was in charge of both.

On March 6, a Friday, School Board Chairman Andy Griffiths, who said he was worried that "things" weren't moving quickly enough, dropped off two folders containing some of the Acevedos' district credit card records to Monroe County State Attorney Dennis Ward's office.

The next Monday, the school district released more than 1,000 pages of both Acevedos' credit card bills, store receipts, vouchers, and e-mails that revealed an apparent attitude toward spending that outstripped the public's imagination.

The enormity of the alleged financial abuse came to light -- that Monique Acevedo had purchased tens of thousands of dollars worth of food, clothes, cosmetics, airline tickets, sports equipment and home furnishings, including a bed set, chandelier, lamps, pillows and other items.

The records show, for instance, that in November 2007, Acevedo charged $5,318.12 on her Bank of America credit card that's paid for by the taxpayer, and turned in no receipts at all, according to schools Finance Director Kathy Reitzel. Acevedo spent money in Walt Disney World-area stores and boutiques that month. Until her buying sprees can be compared to her travel dates, it's not known whether she was on a school-related trip or on vacation at the time.

On Wednesday, Key West High School Principal John Welsh told The Citizen that he'd contacted School Board attorney Richard Collins about absent paperwork, receipts and possibly non-deposited money connected to four fundraisers over which Acevedo had control.

Thursday, board members revealed state auditors had been asked to look into an adult education cosmetology program, formerly under Acevedo's control, that requires all participants to pay for courses, books and cosmetics in "cash only." At first look, board member Steve Pribramsky said, the deposits that should account for all of the students may be short by thousands of dollars.

Though the Acevedos, school attorney and School Board members say they'll comment more once the Florida Auditor General's Office releases its auditors' findings, it's clearly been a week of revelations not seen in the district for a long time, if ever.

"It's sad, it's just bad," board member John Dick said Friday. "Marathon High School sent an e-mail to all the teachers that they're on their last box of staples for the year. ... Supplies have shut down, there's no more money, the paper's gone. I've talked to teachers, and they say, 'We don't have paper; we're not given any supplies.' "

Board member Debra Walker, who met with School Advisory Council members in the Upper Keys in the past month or so to encourage them to seek donations from the public to make ends meet, said she knows schools are low on operating funds.

"I'm surprised and disappointed in the [revelations]," Walker said Friday. "We're in Tallahassee working on the biggest issue facing Florida, which is the fiscal crisis. Legislators don't know what they're going to have to spend on education until the first week in April. Even business as usual isn't normal this year."

The board is responsible for overseeing the school system's operation, so it's not been easy seeing how quickly things can go out of control, board members said.

"I'm saddened and disheartened if it has been going on for a long time," Walker said. "I'm disappointed no one felt comfortable coming to a board member to address the issue."

"Personally, I'm OK, I'm not worried," she said. "I'm confident the board is strong enough and well-educated in the law that we'll fix it better than it has been for quite awhile. Florida policies and law are strong. No single individual can ruin the system."

Griffiths, on his way back to the Florida Keys from Tallahassee Friday, said he was "in the weeds" with the crisis. He knows the chaos of the past two weeks makes it look like the district is out of control.

"It's fair to call it a crisis. We're all in the weeds now," said Griffiths, a fan of analogies. "Right now, I'm on the ground with a fire hose and no longer in a helicopter. We still have to maintain a 10,000-foot view, however."

As Walker, he wants to tackle the problems the board was worrying about before the credit card crisis hit.

"We're in the big fiscal crisis in the schools, yet we're in another larger crisis," he said. "We have to maintain our focus on the 15 percent we may have to cut from our budget [because of state education cuts], not because of one rogue employee is affecting a small portion of our budget. Don't forget about the larger crisis."

For board member Steve Pribramsky, clearing employees that aren't misspending is a top priority.

"Once we get a forensic auditor, we should start by clearing the names of those who are following the rules and get their names out there fast," he said. "It's not fair to those who aren't doing anything wrong."

"It's a tough environment," he said. "I'd like to know, how are you operating, now that the CEO has lost his royal compass?"

Though he and Dick have been the most vocal about the administration's fiscal reporting and have argued for better management of administrative travel, reducing contracts and better spending practices at school district headquarters, he's not gloating about the latest revelations.

"I'm sorry it's happening," he said. "It takes the eyes off what we're supposed to be doing. That's taking care of the kids."

School officials said they are concentrating on teaching and managing the education of children. Amber Bosco, principal of Poinciana Elementary School, for example, said she is keeping a calm ship.

"At our building, we are focusing on what we do every day -- teaching and instruction and doing what's best for our students," she said. "Today we had a great show to reward the students for reading more than 25,000 books. We're celebrating our successes."

Marion Smith, principal of Horace O'Bryant Middle School, also is concentrating on keeping the students on track.

"It's about the kids, and we've been 'business as usual,' " she said. "We're always doing something special. Our garden kids did their presentation at the Key West Garden Club. They took the Garden Club members vegetables they grew in the community garden and in our vegetable garden at school: tomatoes, green beans, lettuce, a few carrots and radishes."

It's the largest investigation facing the school district administration in many years, Griffiths and Walker concurred. Both have been board members for at least 16 years.

Monique Acevedo was first hired by the school district in 1994 as an office aide in the Adult Education and Career department. She worked her way up the ladder to become office manager in 2003 and then head of the department in 2008.

Everything is run the same way down here, housing authority, water and power companies, parking meters .... and the six toed web footed conchs use every city and county service a their own piggy bank

Conchs are like a Mafia for the intellectually challenged shallow end of the gene pool

City owes Duck Tours $8M

Settlement ends antitrust lawsuit; city saves millions [???] >br>By MANDY BOLEN Citizen Staff

In an emergency, early-morning meeting Friday, Key West city officials voted to settle the Duck Tours Seafari lawsuit for $8 million.

The money will come from the city's reserves, City Manager Jim Scholl said.

The settlement is due by April 20. Following that, the city will have about $4 million remaining in its general fund reserves, said city spokeswoman Alyson Crean.

The settlement decision came after a week of testimony during which lawyers for the city tried to convince the eight-person jury that the Duck Tours company was worth about $1.4 million in 1996, when the city forced it out of business with illegal franchise agreements with Historic Tours of America. Lawyers representing the Duck Tours told the jury the business was worth about $13 million.

It would have been up to the jury to decide on a value somewhere between the two figures, and any award would be subject to interest that had accrued since 1996, City Attorney Shawn Smith told the City Commission, as he outlined best- and worst-case scenarios.

If the jury had sided with the city and awarded the Duck Tours $1.4 million, the city would have had to pay a total of $4.5 million. A jury award of $13.5 million would have cost the city $30.5 million, City Attorney Shawn Smith said.

There also was a good chance the jury would have "split the baby" and awarded the Duck Tours $6.5 million -- halfway between the two figures, Smith said. That would have cost the city $15.4 million, Smith said.

The Key West City Commission voted 6-1 in favor of the settlement. Mayor Morgan McPherson dissented, saying the city should take its chances that the jury would award Duck Tours less than $3 million.

Attorney Mark Miller, who has been representing the city at trial, recommended that city officials approve the settlement.

"While I think this jury is convinced that $13.5 million is not realistic, I don't think a judgment of $3 million or more is unrealistic," Miller said.

In 2007, a different jury decided the city had violated antitrust laws, and ruled that Duck Tours owners were entitled to damages. That jury ruled the city owed Duck Tours $13 million.

The city appealed that figure and the new trial to calculate the damages started in Key West last week.

Smith told the commissioners Friday morning that settlement negotiations had continued throughout the two-week trial, and as of Friday "the numbers we were authorized to settle with, and the numbers they presented started to get closer to each other."

Attorney Mick Barnes, who represented the Duck Tours owners, was unavailable for comment Friday, as he was on an airplane, his assistant said.

I think it's a little late in the game

Convicted on FBI Tapes at Nudist Bar, Key West Bag Man Gets Only Probation From Retiring Judge

Bribery suspects met at nudist pool bar - 02/09/2007

BY TIMOTHY O'HARA

Citizen Staff

KEY WEST -- Prosecutors on Thursday showed to a jury surveillance video and photographs of meetings between an indicted former county attorney and their star witness, including one at a popular clothing-optional resort's pool bar.

Former County Attorney Jim Hendrick met political consultant Randy Hilliard at Atlantic Shores Resort on July 11, 2003 -- nine days after a former county mayor met with federal investigators at the Sheraton Suites hotel and admitted taking a bribe in exchange for building permits on a Marathon resort project the county had denied, court documents state.

Hendrick is accused of arranging the bribe, as well as a subsequent cover-up after the FBI arrested London. Prosecutors say Hendrick and Hilliard, who was once was listed in the telephone book as the Prince of Darkness, met at Atlantic Shores to discuss the cover-up. Hilliard, who already had admitted his role and received immunity from prosecution, secretly taped several conversations with Hendrick for the FBI.

Two days before their meeting, Hilliard called Hendrick, who told him the statute of limitations had run out for bribery charges, prosecutors say. Hendrick invited Hilliard, who lives in Miami, to come to Key West to talk about his "legal representation," court documents say.

Unbeknownst to Hendrick, Hilliard had an audio recording device in his white, Speedo-style swimsuit and another in his sports bag, said FBI agent Michael Pilapil, who specializes in undercover surveillance. Several undercover federal agents also watched from the bar.

"I can't help but ask if the agents kept their clothes on," federal prosecutor Christopher Clark jokingly asked Pilapil, who replied yes. In the photos, Hendrick wore shorts and a tan T-shirt, and Hilliard wore his scant swim trunks and a big yellow hat.

Prosecutors did not play the audio recordings from that day, showing only two still photographs and describing the scene. The agent said they had trouble recording because the "breezy" weather conditions and loud music created "a lot of interference."

The agent did play a video recording showing the two men meeting on March 8, 2004, in a small cottage at Hendrick's former Flagler Avenue home. Hendrick allegedly told Hilliard he "should conform his testimony [to an upcoming federal grand jury] with London's fictitious account," prosecutors said in court records. Hendrick allegedly gave Hilliard documents relating to the Halls Resort development project "to assist in the [cover-up] endeavor," records say.

Prosecutors did not play an audio recording from that meeting to substantiate the accusations, and provided no explanation as to why not. Court records do not contain full transcriptions of the audio recordings Hilliard made of eight phone calls and three meetings with Hendrick.

The FBI agent also testified Thursday that former County Mayor Jack London went to Hendrick's law firm twice on July 1, 2003 -- the day after London confessed to the FBI.

The FBI arrested Hendrick at his Whitehead Street office on May 19, 2005, charging him with conspiracy, witness tampering and obstruction of justice.

Hilliard and London admitted to splitting $82,500 in exchange for getting the Monroe County Commission to approve the building permits for Marathon developer Marvin Rappaport's Halls Resort, court records show. Hilliard agreed to cooperate with the FBI, Internal Revenue Service and U.S. Attorney's Office in exchange for immunity from prosecution.

London initially was charged with three counts of giving false statements to federal investigators and filing a false tax return. In exchange for his testimony against Hendrick, the FBI dropped all but the false income tax charge, to which he pleaded guilty in August 2005. London died of a stroke in November, leaving Hilliard as the government's key witness.

HENDRICK FOUND GUILTY ON ALL CHARGES - 02/24/2007

Citizen Staff

KEY WEST -- A jury found former County Attorney Jim Hendrick guilty of conspiracy, witness tampering and obstruction of justice Friday, after deliberating for about two hours.

Hendrick, 59, immediately was taken to the Federal Detention Center in Miami, where he will remain in custody until his May 4 sentencing. He faces up to 20 years in prison and $1 million in fines, according to the U.S. Attorney's Office.

His wife, Vera Vasek, maintained his innocence to reporters outside the federal courthouse in Key West and said he would appeal his conviction.

"We will continue to fight, every step of the way, to prove his innocence," Vasek said.

A judge denied Hendrick's request for bond while he files his appeal on the four charges, which include two counts of witness tampering.

Jurors declined to answer media questions as they left the courthouse. An alternate, who did not take part in the deliberations, said she had not formed an opinion about Hendrick's guilt or innocence.

"They came back so quickly, I thought it would have went the other way," said Joan Teach, who stayed to listen to the verdict. "I really did not have a chance to process it all. I was tired by the end of each day. ... We also could not take our notes home. I really didn't have a chance to form an opinion. I really didn't."

Hendrick's attorney, Ed Shohat, declined to comment on the verdict.

Prosecuting attorney Brenda Morris, who questioned Hendrick on cross-examination and gave closing arguments, also declined to comment about the case.

Morris and fellow federal prosecutor Christopher Clark built a case that Hendrick was involved in a bribery scheme and subsequent cover-up as federal investigators began questioning people about it. Former County Mayor Jack London and political consultant Randy Hilliard admitted that developer Marvin Rappaport paid them $82,500 to secure building permits to redevelop his Hall's Resort in Marathon in 1996.

The Planning Department previously had said the redevelopment plans did not conform to development regulations. London, who was to testify in the trial, died in November.

Hendrick did not receive money, but allegedly arranged the bribe and orchestrated the cover-up, prosecutors said. He advised London to leave the country to avoid having to testify before a grand jury. He also tried to get Hilliard to tailor his grand jury testimony to mirror what London had told FBI agents, prosecutors said.

Key to the prosecution was the testimony of London's widow, Elaine, who gave a detailed account of a lunch she had with her husband and Hendrick at the Pier House on March 17, 2004. In talking about the case possibly going before the federal grand jury in Key West, Hendrick told London to go to Ireland, Elaine London testified.

Morris finished her closing argument citing part of Elaine's testimony, when she said the two had referred to themselves as "the two most powerful men in Monroe County."

"He's just a man. He's an arrogant man," Morris told the jury. "He has duped Monroe County for years and he thinks maybe he can get away with it ... I submit to you that the defendant never thought Elaine London would have the strength to come in here and testify."

London was arrested at the Key West International Airport before his flight to Ireland in 2004 and charged with lying to federal agents and tax evasion for not reporting the bribe money. The statute of limitations on the bribe had run out. The feds dropped the lying charge after London began cooperating with the FBI.

Hilliard, who was granted immunity for his testimony, was another key witness, having secretly taped conversations between himself and Hendrick for the FBI. On one tape, Hendrick said London "rose in our eyes when he didn't stand up and tell them what we had done," referring to himself and developer Pritam Singh. In another, Hendrick told Hilliard "in the eyes of the government I am your co-conspirator."

The courtroom was filled with Hendrick supporters, many of whom looked stunned and gasped when the verdict was read. Minutes before, Hendrick, a self-proclaimed Buddhist, closed his eyes and appeared to be meditating as the crowd sat quietly awaiting the verdict.

The scene was a stark contrast from most days of the three-week trial. Jokes had been exchanged between prosecutors and defense attorneys, and Hendrick supporters mingled among each other during breaks.

Hendrick sentence appealed

BY TIMOTHY O'HARA

Citizen Staff

Federal prosecutors have filed an appeal to the sentence of former Monroe County Attorney Jim Hendrick, who was placed on probation and ordered to do community service for obstructing justice and witness tampering in a federal public corruption case.

The U.S. Attorney's Office filed the appeal with the U.S. Court of Appeals for the 11th Circuit, according to a two-page legal brief filed with the court on Tuesday. There were no supporting documents filed that spell out why prosecutors are asking for review of the sentence. A brief will be filed, and that will contain the legal arguments, U.S. Attorney's Office spokeswoman Yovanny Lopez said.

Federal Judge Shelby Highsmith chose not to sentence Hendrick to prison last month, but instead opted for five years of probation, 2,500 hours of community service and a $50,000 fine. Highsmith cited Hendrick's "previous good works, his charity work and his pro bono legal work." Highsmith also mentioned that no other person tied to the crime was sentenced to prison. Highsmith deviated from sentencing guidelines, which took into account Hendrick's first-time offender status and the severity of the crime. Hendrick was facing three to five years in federal prison.

Hendrick on Wednesday called the prosecutors' move "unusual."

"I am not an expert, but it seems unusual," said Hendrick, a former public defender and former county attorney. "Now they have left me no choice but to appeal."

On prosecutors challenging his sentence, he said: "It's sort of being like indicted. You don't have an have opportunity to decline it."

Hendrick is awaiting Highsmith's ruling on a motion to have the conviction on counts of conspiracy, witness tampering and obstruction of justice thrown out.

Former federal prosecutor and now practicing Miami attorney Steven E.M. Hartz said there is precedent for prosecutors to request a new sentencing, especially in public corruption cases.

"It does happen from time to time," Hartz said. "They will appeal a sentence if they feel it's inheritably unfair to the interest of the United States. They don't do it every day."

Hartz called Highsmith an "excellent judge who is very experienced."

A jury in February agreed with prosecutors' arguments that Hendrick helped political consultant Randy Hilliard and former Monroe County Mayor Jack London devise a story to cover up a bribe from a local developer. Hendrick then urged London to flee to Ireland when the government started investigating.

Marathon developer Marvin Rappaport testified that he paid Hilliard $82,500 — Rappaport called it a consulting fee, the FBI called a bribe — in exchange for the Monroe County Commission's approval of building permits for a resort project in 1996. Rappaport received that approval.

. "The Prince of Darkness has ruined Atlantic Shores for us. Now we will never be able to go there again without wondering what the guys are stuffing into their Speedos." (From Key West Citizen's VOICE)

Bubba system appears to be judicially endorsed

As a retired former prosecutor and magistrate judge, I am appalled by Judge Shelby Highsmith's grant of probation to Jim Hendrick. Hendrick was convicted of three felony crimes, the character of which no lawyer with any decency whatsoever could conceive of committing. As the former county attorney, one would expect Hendrick to be the type of person who would enforce justice, not obstruct it. Witness tampering is something we decent lawyers think of as only occurring in bad mystery novels. Then, according to the jury, Hendrick conspired to cover his own butt, as he continues to do. He has now made it known that he will pursue his appeal, all the while denying any wrongdoing in the face of the absence of reasonable doubt. After receiving his sentence, he triumphantly pumped his fist in the air. Is this a repentant man, who deserves probation? I think not. I fully expect to read in tomorrow's Citizen that the motion for acquittal was granted. Perhaps lifetime appointments for federal judges should be rethought.

Rita Eaton

Key West

Hendrick's sentence sends wrong message

Probation for former Monroe County Attorney Jim Hendrick is totally outrageous, flying in the face of justice and common sense, while sending a strong message that attorneys and public officials are above the law. Further, Hendrick should have been disbarred the very moment he became a convicted felon for witness tampering and covering up a bribe to former Monroe County Mayor Jack London. Instead of probation, Federal Judge Shelby Highsmith should have thrown the book at Hendrick, sending the opposite message to elected officials, developers and their legal counsel alike who become involved with bribes or sleazy land deals.

Former Mayor London disgraced himself and his office by accepting a bribe, fueling existing public skepticism, while making the words "honest government" an oxymoron. Sadly, whatever good deeds London accomplished in office will be forgotten and his legacy will be reduced to his worst deed. Some will cry unfair, but is it really?

And now it's somewhat ironic our current County Mayor Mario Di Gennaro lobbied the good judge for nothing less than a wrist slap for Hendrick. To date, the mayor himself has acted more as an advocate for big developers than a legitimate representative for our residents, not to mention his own problems with the law when it comes to Sunshine Law violations.

Moreover, for Di Gennaro to subsequently suggest Hendrick be allowed to do pro bono legal work as atonement for his criminal sins represents a blatant betrayal of public trust and open contempt for laws, which most of us must obey.

In the future, Hendrick should be seen beside the Overseas Highway with a nail in one end of a stick and himself attached to the other, cleaning up the very islands he soiled.

But putting all of that aside, there is even a larger message here for the voters, which is if there's an appearance of impropriety, it's time for a closer look. And voters should always look carefully at any candidate's contribution reports and indeed follow the money.

Personally, I believe most folks are crying out for honest government and honest elected officials, but these same folks must take the time to participate in the most basic level of democracy, which is casting an informed vote. As we continue to elect those with conflicts and special interests, we can expect selective representation and often blind eyes and deaf ears to the voters themselves.

All of us have some issue with government, but in a case of this nature, where the criminal act is so very blatant and the subsequent scandal is so shameful, a mere slap on the wrist seems most offensive to each and every honest citizen. Let's pay attention now, and next time get it right at the ballot box.

Bob Johnson

Editor's note: Bob Johnson is a former mayor of Islamorada.

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