JURY CONVICTS DEWITT JACKSON "JACK" MAXWELL OF CONSPIRACY, MAIL FRAUD, WIRE FRAUD AND MONEY LAUNDERING

R. Alexander Acosta, United States Attorney for the Southern District of Florida, Katherine Fernandez-Rundle, State Attorney of the Eleventh Judicial Circuit of Florida, Robert Parker, Director, Miami-Dade Police Department, Brian Wimpling, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, John Long, Special Agent in Charge, United States Department of Transportation, Office of Inspector General, and Jonathan I. Solomon, Special Agent in Charge, Federal Bureau of Investigation, announced that a federal jury found defendant Dewitt Jackson "Jack" Maxwell guilty on all charges against him in connection with his participation in a scheme to defraud the Miami-Dade County Aviation Department and the Federal Aviation Administration by the fraudulent acquisition of electrical construction work at Miami International Airport in connection with the federal Disadvantaged Business Enterprise ("DBE") program and the Miami-Dade County Community Small Business Enterprise ("CSBE") program.

Maxwell was convicted today of one count of conspiracy to commit mail and wire fraud, two counts of wire fraud, nine counts of mail fraud, one count of conspiracy to commit money laundering (18 U.S.C. §1956), five counts of promotional money laundering (18 U.S.C. §1956), one count of conspiracy to commit financial transaction money laundering (18 U.S.C. §1957), and four counts of financial transaction money laundering.

The charges in the case centered on the federal DBE program and the Miami-Dade CSBE program, which were designed to encourage the growth and development of qualifying small businesses in the construction industry. Consistent with federal regulation and county ordinance, participation goals under both programs were set as part of the Miami International Airport expansion project. As a result, businesses that qualified under either the DBE or CSBE program were allowed to bid for a part of the construction work at the Miami International Airport. Both programs, however, require that the DBE or CSBE entity perform the work of the contract and carry out its responsibilities by actually performing, managing, and supervising the work involved.

According to the evidence presented at trial, between approximately December 2001 and October 2004, Maxwell and others conspired to cause FLP Enterprises, Inc. ("FLP"), a DBE and CSBE company, to receive electrical construction work at Miami International Airport in satisfaction of DBE and CSBE participation requirements, but to have the work actually completed by Fisk Electric ("Fisk"), which was neither a DBE nor a CSBE. During the time at issue, Maxwell was the executive in charge of Fisk's Miami office.

As the evidence at trial showed, Maxwell accomplished his goal through a well-organized effort to both mislead the Miami-Dade County Aviation Department and others, and to conceal their scheme from these same entities. Maxwell and his co-conspirators caused bids to be submitted on behalf of both Fisk and FLP for electrical work at Miami International Airport, stating that FLP would perform a portion of that work in satisfaction of DBE or CSBE participation goals. As a result, more than $20 million in electrical construction work was awarded to FLP and Fisk. FLP, however, did not perform the work as represented in these bids. Instead, Fisk performed the work, even as the conspirators endeavored to conceal this reality from the Miami-Dade County Aviation Department and others. For the use of its name, FLP received a fee of between 3% and 5% of the value of the work assigned to it on paper.

The proof at trial established that letters of intent were submitted as part of the bidding process which falsely represented that FLP would perform a certain percentage or dollar value of electrical work on certain jobs at Miami International Airport. Once these contracts were obtained, the defendant put in place a number of steps to create the illusion that FLP was performing the electrical construction work. For example, Fisk employees were shifted to FLP, but they continued to work for Fisk supervisors. The defendant also caused Fisk to order expensive equipment and materials under FLP's name, and then issue two-party checks to make it appear that FLP was paying for these items when it was not. These representations were supported by Monthly Utilization Reports which the conspirators caused to be filed on these jobs, in which it was falsely represented that FLP was in fact performing a commercially useful function as a DBE or CSBE. The defendant and his co-conspirators also caused FLP to utilize approximately $385,000 in proceeds from the fraud scheme to pay for materials actually ordered received by Fisk. When the County began auditing FLP's activities, the defendant and his-conspirators created a series of backdated false letters which were submitted to DBD in an effort to cover up the fraud.

Maxwell faces a maximum sentence of twenty (20) years on the conspiracy to commit wire and mail fraud, a maximum sentence of twenty (20) years on each of the mail and wire fraud counts, a maximum sentence of twenty (20) years on each of the concealment money laundering charges (18 U.S.C. §1956), and a maximum of ten (10) years on each of the financial transaction money laundering counts (18 U.S.C. §1957).

United States Attorney Acosta stated, "The CUBE program is designed to promote small businesses and job growth in the construction industry, while the DBE program is aimed at helping minority businesses overcome the lingering effects of past discrimination in the construction industry. Today's verdict makes clear that these programs are not piggy-banks for those who would defraud and abuse the system."

Mr. Acosta commended the investigative efforts of the Miami-Dade Police Department, the State Attorney's Office, the Internal Revenue Service, the United States Department of Transportation - Office of Inspector General, and the Federal Bureau of Investigation. This case was prosecuted by Senior Litigation Counsel Edward Stamm and Assistant United States Attorney Daniel Bernstein.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at www.usdoj.gov/usao/fls <http://www.usdoj.gov/usao/fls> . Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov/ <http://www.flsd.uscourts.gov/> or on http://pacer.flsd.uscourts.gov/ <http://pacer.flsd.uscourts.gov/>