Two high-ranking officials at a South Florida construction company have been indicted on charges of defrauding a low-income housing development program.
Javier Estepa, 47, of Davie, Florida, and Diego Alejandro Estepa Vazquez, 36, of Boca Raton, Florida, the president and vice president of Aaron Construction Group, respectively, are accused of engaging in a scheme to unlawfully enrich themselves by securing bid awards and causing payments on contracts by making false and fraudulent representations.
According to the indictment, between June 2014 and December 2016, Estepa and Estepa Vazquez submitted bids to the Miami-Dade Public Housing and Community Development (PHCD) for renovation and repair work on low-income housing in various locations throughout Miami-Dade County.
The indictment alleges that in their bids, Estepa and Estepa Vazquez falsely and fraudulently represented the number of workers to be employed on the projects, claimed subcontractors would not be utilized, and asserted that Aaron Construction would obtain workers’ compensation insurance.
By underreporting the number of workers, Aaron Construction was able to submit lower bids for the PHCD repair work. The defendants then submitted Periodic or Final Estimates for Payment and supporting documents that allegedly contained false and fraudulent payroll records.
As a result of these false and fraudulent submissions, the PHCD transferred funds to bank accounts controlled by Estepa and Estepa Vazquez.
The indictment charges Estepa and Estepa Vazquez with conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349, and wire fraud, in violation of Title 18, United States Code, Section 1343. If convicted, they face up to twenty years in prison, three years of supervised release, a $250,000 fine, and restitution.
The case is being prosecuted by Assistant United States Attorney Joshua S. Rothstein. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Key Facts
- State: Florida
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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