?ROBABLE

CAUSE MEMORANDUM

To:

Commission on Ethics and Public Trust

From: Michael P. Murawski, Advocate Re: Complaint C11-34 (Crespo v. Regalado)

Date: January 2012

Recommendation: A finding of Probable captioned matter. Background and Investigation: Cause
1

should be entered with regard to the above

Complainant alleges that Respondent, City of Miami Mayor Tomas Regalado (Regalado), filed financial disclosure forms in 2010 and 2011 which were incomplete, inaccurate and failed to properly disclose assets Section 2-619 of the City of Miami Code, requires the mayor and city commissioners to file a financial disclosure form, in addition to the state and county financial disclosures, by July 1st of each year. Section 2-619 is contained within the City's conflict of interest portion of the code, accordingly, the Ethics Commission has jurisdiction to enforce the City code pursuant to section 2-1068 of the Miami-Dade County code.

, Probable Cause exists where there are reasonably trustworthy facts and circumstances for the Ethics Commission to conciude that Respondent should be charged with violating the Miami Code.

The 2010 disclosure: Attached hereto as Exhibit A, is the Public Disclosure of Financial Interests

(PDFI) form Respondent filed in July of 201 O. It should be noted that this form was filed with the City Clerk 29 days past the July 1 due date. In the portion of the form marked "Assets over $5,000", Respondent "Homestead which is shared with son, Jose Regalado". This is presumably to Respondent's home located at 2424 S.W. 20th Street. Respondent the value of his home. Additionally, lists only his a reference

failed to provide

on the portion of the form that calls for the Effects" Respondent left the space to provide
FI"'-~

disclosure of "Household Goods/Personal

such information blank. This section requires the disclosure of household goods personal effects whose aggregate value exceeds $5000.00. household equipment and furnishings The 2011 disclosure: Attached as Exhibit B is the 2011 PDFI form filed by Respondent. as well as clothing.2 It includes jewelry,

On this form, Respondent similarly fails to list his home value and leaves blank the entire portion of the form where he is required to disclose household goods/persol •.:..i effects with an aggregate value in excess of $5,000.00. Respondent was interviewed by a COE investigator concerning the alleqatione

the complaint. With respect to the alleged failure to report household goods/personal effects in excess of $5,000, respondent conceded that "[he] may have missed that."

2 By comparison, on their 20) Disclosure forms Cit)' Commissioner Frank Carollo disclosed $50,000 in this category; Willie Gort declared $35,000, Marc Sarnoff listed $662, lSI and Francis Suarez disclosed $10,000 of household goods. Clearly, all the other elected officials in the City of Miami required to file the same fmanciaI disclosure form as Respondent realized that some amount had to be reported in this category.

°

MIAMI-DADE COUNTY COMMISSION ON ETHICS AND PUBLIC TRUST

INRE:
TOMAS REGALADO

CASE NO: C11- 34

------------------------------------------~/
SETTLEMENT AGREEMENT

Pursuant to section 5.13 of the Miami-Dade County Commission on Ethics anc Public Trust Rules of Procedure, Respondent does hereby enter into this settlement agreement in full satisfaction of the above captioned matter based upon the following terms and conditions: 1. Respondent, TOMAS REGALADO believes it to be in his best interest and the best interest of all parties involved to avoid the exoense and time of litigating this matter, accordingly he agrees Not to Contest the allegations contained in Counts I, " and III of Ethics complaint number C11- 34 regarding his financial disclosures. 2. Pursuant to this agreement, Respondent agrees to pay a fine of $500 in full satisfaction of Count' and $500 in full satisfaction of Count" for a total fine of

$1000.00 to the Miami-Dade County Commission on Ethics and Public Trust. This fine will be paid within 60 days of the day this agreement is ratified by the Ethics Commission. 3. Further, Respondent agrees to accept a Letter of Instruction with regard to Count III and will file revised financial disclosure forms within 30 days of the day this agreement is ratified by the Ethics Commission. The fine with regard to Count
-

-----jrfllFWSii\i~---, IS

waived.

------.---.-_-

-

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Respondent further stated that since his late wife's passing in February 2008 he has donated many of her clothes, jewelry and other belongings, including furniture, to charity. He said that as a result of structural damage to his home's foundation caused
by a catastrophic water leak in 2006, he has also been forced to liquidate other furniture

and personal belongings to reduce the weight bearing down on the home's foundation In order to mitigate the damage and to remain eligible to receive a pending insurance claim, which remains under litigation. He said he presently resides in the home along with his son, Jose. He conceded, however, that despite the donations to charity and downsizing it would still be fair to estimate the value of his household belongings and personal effects at more than $5,000. As far as the market value of his residence - left blank on his disclosure forms respondent explained that because of the lasting structural damage caused by the broken water line, "adjusters say the house is a total loss." To support this, he provided a copy of a report dated January 14, 2010, stating that as a result of the structural damage to the home the cost of repair "may be prohibitive compared to the insurance value of the residence." Basically, respondent stated that it was hard to determine the value of the home due to the structural damage. He conceded, however, that the land itself still has value which he did not disclose. As for any savings or other accounts with a value exceeding $5,000, the Mayor stated that his savings had been depleted by legal expenses resulting from a complaint filed against his political campaign for mayor. He said that instead of seeking donations ___ ._~om supporters for a legal defense fund, he geci~ed instead rely on his saviQQs and a home equity loan on his personal residence. He said that because of questions _

3

surrounding the market value of the property he was only able to obtain a loan in the amount of $25,000 - a copy of which was obtained by COE - and that his savings do not presently exceed the threshold value of $5,000. He noted, furthermore, that he is

supporting his son, Jose, who graduated from college last year and is not presently employed. He also assists his recently divorced daughter her with expenses relating to

her children, one of whom is autistic and requires special care. Analysis: Respondent concedes that his financial disclosure forms are deficient in the areas pointed out in the complaint. While he does, in fact, have some legitimate issues as to what his home is valued at because of the structural damage, that does not excuse his failure to report a value for the home as well as the household goods. Section 2-619 (a) (1) (a) of the City's code provides that the mayor and the city commissioners are required to provide: "Description of all assets which have a value in excess of $5,000 including household goods: The PDFI form itself defines household goods and personal effects as including "any of the following ... jewelry; stamp collections; guns and numismatic objects; household items; and vehicles for personal use." A review of Mr. Regalado's PDFI filings from 2007,2008 and 2009 (while he
WFW

properties;

31:.

a city commissioner and not yet mayor), reveal that in each of those years he disclc se.t household goods with a value of $10,000. In addition, a review of the PDFI forms filed

by other City of Miami elected officials shows that every single one of them discloses some amount in the household goods/assets over $5,000 section of the form. The amounts recorded range from a low of $10,000 (Commissioner $662, 151 (Commissioner Sarnofft-This Suarez) to a high of

indicates that-all the elected officials in the city

have an understanding of what assets need to be disclosed in that section of the PDF! form. Moreover, the fact that Respondent previously reported household assets of 4

MIAMI-DADE

COMMISSION

ON

ETHICS AND PllHLIC TRllST

fNRE: Tomas Regalado

COMPLAINT # CII-34

----

I

STIPULATION

TO PROBABLE

CAUSE

I. Respondent, Tomas Regalado does hereby stipulate and agree that the allegations enumerated in the ahove referenced Ethics Complaint regarding Section 2-619 of the City of Miami Code, are supported by probable cause.

2. Respondent specifically waives any hearing or proceeding he may otherwise he entitled to before the Ethics Commission for the purpose of having a probable cause determination made in the above matter.

3. Respondent understands and agrees that a stipulation to probable cause in this matter in no way constitutes an admission to any of the material allegations made in the Ethics Complaint.

4._~_:!_S~911~ent specifically_W.AIVES

a hearing

to determine

probable cause.

__-,-_--_; r:;:Lt{. / t!) ;zcJ I 2
Date

Advocate

CHAIRPERSON, Commission on Ethics and Public Trust

$10,000 in the years 2007 through 2009, demonstrates that he was aware_of the type of assets that had to be disclosed. Conclusion: Accordingly, there is sufficient evidence to support violations of Section 2-61 9 (a) (1) (a) of the City of Miami Code regarding the financial disclosure forms filed by respondent in 2010 and 2011.

5

Continued Assets Over $5 000:

Cominued Linbilities (Creditors.' Amount Owed)

3.

1

RQy'~~.Q.tq .&Qq~ @.c! I!cnq(1.~ ~£f~.

HQUSEHOLP QOQDSIPERSONAL

EFFECTS.

4.

ro!>: Q.~ reported in a lump sum it their aggregate value

exceeds $5,000. This category includes .any of the following (if not held for investment . purposes): jewelry; stamp collections; gpns and numismatic properties; an objects; household equipmem and- fumishings; olothiRg;. otntJI: househo1d items; and vehicles for personal use. The aggregate value of my household goods and personal effects as described above is:
$ __

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::

[PART CJ - NET WORTH
Net worth is the difforence between total assets and total liabilities. not merely those listed in
. PART A (above), which have a value in excess of $5,000. Please enter your net worth as of

December l} of'the tax year or a mere recent date.
My net worth as of

-:J)e'c ao

.2tMtj.

20~

was

S

:y t'Jrt:J&

p~

[PART DJ - AFFIDAVIT
aay aaacameats hereto·is· truo and< caR'CCtto my knowledge.

~~

7J2/C1

.--~;=~~--.-~On Ulis thel.i!. day of -

-,
.20 ~

. -----before me, the undersigned Notary Public of the Stale of .

~

a~ (N_ •.... ..r::.::=~.~blicafU_,~~or~I~)
F_Jorida, the foregoing i~

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acknowledged by: .

00-: .

~
[J

Pmoaally known to me or Producal idenlificatioa:
OlD take an oath DIll NaT lama oall&.

--~----

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cr

(Type of IdeutifjcatioD Produced)

EXHIBIT

A

RECEIVED
ZOIO JUL 30 AM

9; 10

PRISCILL A. A. THOMPSOH
. : CITY CLERt; CITY OF MIAMI. FL

.."~ .::
# ... \

CITY OF MIAMI

PUBLIGDISCLOSURE OF FINANCIAL INTERESTS
"- (Subject to City COde Section 2-619)
NOTE: A$.an.~tive~ the ~i~", this report may provide a copyoftthec'Cum:l1t Instructions).

fOfIh ilL lRe.a~~ c.s~ ~~ year's Federal income tax return (See last page for .

6~

.

p

LAST NAME

FIRSTNAME

.

RESIDENCE ADDRESS

;J-tf 2. t.f s tV ~tJf.: sT MleUl'
.CITY

MIDDLE INITIAL

/OFFICE HELD

..

'

(

- :' .

ASSETS AND LIABD...lTIES

IN EXCESS

OF $5.000

[PART AJ ~ASS&TS'
•• of

[PART B} - LIAIULITIES Please list below the name and address of every . person, whether -individual or corporation, to whom you' owe a liability exceeding $5,000, . and the total amount of indebtedness. "Liability" is d~ned as any monetary debt or obligation. owed by you to another person,

ASSETS OVERS5.000· VALUE DESCRIPTION

-==============!!!S. (:kP M.. Esrt;;@ _
. I

I

1---------------+-----..,..--------- ... Name/Address 'ofCreditors: Amount· Owed: I

/Z.~kLtt·DO

including credit car-d retail installment accounts; i!XCo! q~c:!t. ~.c!c:titlt(klctu Clg, '! I.~ i~'l~ . policy owed·to the issuing company; or accrued income taxes on net unrealized appreciation. i

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--

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eXHIBIT

f}

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-

--------------------------_.
CITY OF MIAMI EUBlIC DISCLOSURE OF FINANCIAL INTERESTS (IN COMPLIANCE WITH CITY OF MIAMI CODE SEC. 2-619) Note; As an alternative to the requirements set forth In the above-cited Code Section, the person filing this report may provlcie a copy of the current year's Federal Income tax return (See last page for Instructions)

OFFICE HELD

RESIDENCE ADDRESS

CITY

ZlPCQOE

COUNTY

-

ASSETS AND LIABILITIES IN EXCESS OF $5,000

(PART Al - ASSETS

(PART BJ- LIABILITIES Please fist below the name and address of every person, Individual or corporation, to whom you owe a liabllityexceedlog S5,ooO, and the total amount of indebtedness. "Liability"Is defined as any rnonetat; or obligation owed by you to another person, including 9'~lt card retail Installment accounts; taxes owed; indebtedness on a life insurance policy owed to the ..,I!suing company; or accrued Income taxes on net unrealized appreclanon,

Q

I

!------------I--------Iwhether

DESCRIPTION

~N'\e.

c...V\ '. ~ W(.J...Jn~:.!!!~w~ac~~c...~~+

. l_,

:.

equipment and furnishings; clothing; other household Items; and vehicles for personal use. The aggregate value I------------I-....;;:~--~ __ t" of household goods and personal effects as described ;------------I-~~:r__=,._~:L: above Is:

a.t\Ct nwnlsnU\t" gcQ~nle~ Mt gbj~$; tlQWi,:nQtQ

HOUSEHOlP GOOpSfPERSONAl EFfECTS Household goods and personal effects may be reported in a lump sum If their·aggregate value exceeds 55,000. This category includes any of the following (If not held for Investment purposes):)ewelry; stamp collections: guns

--

my

$-------------------:--Note: you

are not Om/ted

to the space on the liner in this form. A "pch pddlUonpl sheetlsllf

necessary.
Pa!!e f 01 2

--._ ...

--_._--_

...

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--.

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a value In excess o~$5,000. Pk!ase emer your-not worth as 01 ~c-emb~r.3l
My net worth asof

Net worth is the difference between total assets and tctal tlabitttles, not merely those listed in PARTA (Above), which have ot the tax year. Qr: il mot.e.roc(!n. dat.i:.

Jdec.

30

. 20 ~

was S ..., • .300 I

'-1

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[PART D] - AFFIDAVIT
The Information disclosed herein and on any attachments hereto is true and correct to my knowledge,

Dale

State of Florida County of ,~~

Sworn to (or affirmed) and subscrtbed before me on this the

p_.y:

m A-{ Or"(_
(Name of person signing and hislher rltle (public officer, trustee or personal representative)
:::00

WITNESSmv hand and official seal.

.....-I

::c:

..
en

<
0

(T1

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~~ of N()JQO!

(lo.iQ.QU!

Norary Public,Stare of Florida

W.e«, ~~"

(),(' fci.cUed).
NOTARY PUB"I::

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Personally known to me, or Produced identification:

J:)SEM. MARRERO {.1. '. 1'1 MY COMI.fISSIOH , D~ 1i937S6 ----lJ/-~~..n.. 0 __ ' '~"."'l' ...... um..... ", .. : ;::t.. •..•m·:'.I.~'""1!llmiE~XPiF.i'RiiiEiiS;~MJi20~'C:1.:0i:!:"!::::::-ft-_

/p:l:n't\

SEAl OF OFFIC£

(Type of Idttltificar/on Produced}

-...,._.._ ....~

... -=. _,.~ -,

!>age 2 ot 2

j,!L\MI-DADE ::;OMMlSSI01< 0:-: ET1-DCS 6:. PuBLIC TIUJST 19 West Flagler Sr•. SUllC 820, Miarru, FL 33130

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COpy
1.

305.579.2594

commrsSW~k~~i~~~lIcfrusf'11-28-11 POi:53 IN

COMPLAINT
BRIN~OMPLAlNT)~g~.

FORM
ifnece.rJJ"

COMPLAINANT ~ERSON Name Address City: Home #:

A~

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/f7liX!l# ,

cry
Work #:

/6?11cv Acsp.L~
tl:;/I.
Zip:

f)

ORIGINAL
_

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Cell #:

2.

City:

:;::~~1-tr ~tfk;E.50 i!4J
2'? 7 £9. i'7~ork
XJI'1J1/
#:

RESPONDENT (PERSON AGAINST WHOM COMPLAINT IS MADE) Addpage.r, ifnece.rJao·,

----------------:23) ~
_

Zip: Cell #:

Home #:

3.

IF KNOWN. CHECK THE BOX OR BOXES THAT APPLY Allegation is against person in o County Government ~.l~~~~. if,7.9~!;I~ ;~p.~.o/. < Whistleblower Retaliation

~~tio~nst ~ovemment NAMECITI' .,.",,,,,.,.,.

person in

o

,----------

4.

STATEMENT OF FACTS BASED ON YOUR PERSONAL KNOWLEDGE In a separate attachment, please describe in detail the facts and actions that are the basis of your complaint. including the dates when the actions occurred. Also attach any relevant documents as well as names and CO.Q.ta.c;..t. W-toWJAu,Qv, Qf..p,~D~. Wh9. 0JilJ· Q.<;, wiw.q§~~ ~. r;Q.<;, ~9lJ.:i. ~£IpJ,QWkl. jmJic;a~ t;b~!i~~OJ} .-, ordinance you believe is being violated For further instructions, see page 2 of this form. ~~=F~~ ~
at~

5. OATH
I, the person bringing this complaint, do depose on oath or a£iirrnation and say that the facts set forth in the foregoing complaint and attachments are true and correct, to the best of my knowledge and belief.

Swo~r..afUrmJ.j'
this~

day of

0

subscribed b.efore me
,20

II
j

.

S'

t#

ture of Person
(pan!, Type. or SlMmp CMnmi"io".,d N~otary Pub(;C)

Personally known to me or Produced Identification

-=V~_
_ _

Type of Identification Produced:
COE02l2010

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r,

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AL CRESPO
S89 HE 92"" Street Miami, FL 33138

305.759.4788

November 28,2011 The Miami-Dade Ethics Commission 19 W. Flagler Street' M.iarI:U, EL 33.t30.

To Whom It May Concern: This is a complaint against the Mayor of Miami, Tomas Regalado, for his failure to truthfully and completely disciose his financial interests as required by Miami Code, Section 2-619.

EoL' years, gegaJado.l:las claimed to. be. the. poorest poliiician in Miami. with a net worth of anywhere between $5000 to $9300. In order to
maintain this fiction, he has repeatedly failed to comply with the requirements of the providing ,l\LL of the Information on assets and liabilities in excess of $5000. To support my allegation, I am providing you with the Financial . Disclosure forms filed by Regalado during his first.2 years as Mayor, . the Miami-Dade County Property Appraiser's on-line information on Regalado's home. and a copy of one of his pay stubs. In addition to failing to provide information on his home, it would appear that perhaps the Mayor has also failed to provide information on his bank account as well.

LbeUe.v.ethis is a simple and stcaiglltfor.war.d compJai[.lt, with. 9l:louQ.I:l.
documentation to reach a conclusion that the Mayor has failed in his responsibilities to be truthful in his reporting.

cordial~

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Real Estate Tax Information "q4~·f! Q~.~~ 11/1~/~Q11 ~f!~ IIp'c!~.~:. 11~17~Q11 T~ Y~r. ~Q11
Folio Number: 01 41100260450 Property Address: Mailing Information
TOMAS P REOALAOO 2424 SW20ST

MIAMI

Owner's Name: TOMAS P REGALADO
2424 SW 20 ST : Legal Description :

SILVER CREST PB 14·32 e36FT LOT 9 & ¥128FT LOT 10

M~IFL 331452524

~J..I(~
LOT SIZE 64.QOO X 110

To view 2011 Tax NotJcelMemorandum click here -~ Amounts due If paid by,1113012&1-1 U.S. funds-- --~'In

------

~-

---

I

2011 Taxes

I

$2502.211

If payment is not received by the specifred date the total amount due is subject to change.
E-check payment option is not available for properties with mortgage escrow accounts. Please call (30S) 375·3787 for

assistance.

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