Javier Estepa, Wire Fraud, Florida 2019

In a shocking turn of events, Javier Estepa, 48, of Davie, was sentenced to 51 months in prison for his role in a wire fraud scheme that defrauded a low-income housing development program in Miami, Florida. The scheme, which took place between June 2014 and December 2016, was uncovered by investigators who found that Estepa and his co-conspirator, Diego Alejandro Estepa Vasquez, had submitted false and fraudulent claims for payment from the program.

The evidence presented in court showed that Estepa and Vasquez, who were the president and vice-president of Aaron Construction Group, Inc., respectively, had submitted bids to the Miami-Dade Public Housing and Community Development (PHCD) program on behalf of their company. In these bids, they falsely represented that no subcontractors would be used, that each worker would be paid for each hour worked, and that Aaron Construction would obtain workers' compensation insurance. However, it was later revealed that they had entered into agreements with subcontractors who were paid fixed amounts regardless of the number of hours worked, and that the workers were not paid the appropriate wages under the Davis Bacon Act.

The defendants submitted false and fraudulent certified payroll records to PHCD, which contained fewer workers than were actually employed on the project and falsified the number of hours worked. They also submitted sworn statements of compliance that falsely certified that the information submitted was true and correct. As a result, PHCD transferred over $3.9 million in funds to bank accounts controlled by Estepa and Vasquez.

Estepa was sentenced by U.S. District Judge Ursula Ungaro on May 24, 2019, to 51 months in prison to be followed by three years of supervised release. His co-conspirator, Diego Alejandro Estepa Vasquez, was sentenced to 41 months in prison to be followed by three years of supervised release.

The investigation into this scheme was led by the U.S. Department of Labor, Office of the Inspector General, and the U.S. Department of Housing and Urban Development, Office of the Inspector General. The case highlights the importance of transparency and accountability in government programs and the consequences of fraudulent activity.

The charges against Estepa include conspiracy to commit wire fraud, wire fraud, and false statements to a federal agency. The total amount of funds transferred to bank accounts controlled by Estepa and Vasquez was over $3.9 million.

Source: https://www.justice.gov/usao-sdfl/pr/south-florida-construction-company-executives-sentenced-friday-defrauding-low-income