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Kessler International recently became aware of the dismissal of Dr. Alex Medina (Medina), former Administrative Coordinator to the OHUI. It was relayed that this dismissal stemmed from allegations that Medina allegedly deleted documents from his computer and for other acts of misconduct.

Kessler met with Medina on July 6, 2010 before his discharge at the Pompano Beach City Hall. At this meeting, Medina introduced himself as he transferred numerous boxes of documents from the Copans Road Storage facility with Orlando Nightengale. Medina stated that he would be more than happy to assist in retrieving additional records as needed.

Throughout the audit Medina entered the conference room that Kessler was working in without notice and unannounced to discuss things unrelated to the internal control review being conducted.

Medina spoke candidly about why T.C. Bordeaux and Debra Chatman left the department and stated that T.C. left the City to go to San Antonio because he was offered a better job and Chatman started questioning about how people are picked from a waiting list.

Additionally, Medina indicated that the Valencia and Ortanique Projects are the same project and that Simpson was the contractor/builder for the project. Medina stated that Simpsons finances for these projects seemed illogical because Simpson had a line of credit with Bank Atlantic, but took out construction loans on each individual property.

Medina also stated that there were several complaints filed against Simpsons workmenship. Some of the examples Medina gave included corners not level in the homes he built, the garages could not fit the owners cars, leaks, and some properties were built on a slant. Medina provided information that Simpson Developers took out


construction loans with Bank Atlantic, so buyers did not really have a choice and that he felt something was astray with the relationship.

Medina provided information that citizens have a sense of entitlement in the NW district. He also said that certain owners who received assistance may be renting out their homes after receiving funding from the City, which is in violation of the mortgages secured from the Pompano Beach CRA and the City.

While discussing Simpson Developers, Medina mentioned that Davis Family Construction had several projects as well, including Sable Chase and the surrounding homes, and questioned how the homes were considered built for low income families due to DFCs prices were way too high.

Kessler posed questions to Medina regarding the disbursements made for the Eta Nu subgrantee. Numerous receipts were located in the case file but no documentation was provided that would allow reconciliation to the disbursements, as the amounts on the receipts were well in excess of the amount of the disbursements. Medina indicated that he determined what expenses were allowable. After further questioning Medina indicated that he did not have any reconciliation sheet detailing the expenses that were allowed and that he did not thoroughly review the payment applications.

In a strange comment during conservation, Medina blurted out that if you say you are a Federal Agent and you are not, the Feds get mad.

In the process of Kesslers in-field internal control review Kessler requested that the documents pertaining to the scholarship be provided for our review. Medina indicated that these files were located in a filing cabinet located in the OHUI office space. Kessler observed that some documents applicable to the Scholarship program was contained in the filing cabinet, but important documentation regarding the approval process and the applicants that were approved for scholarships were missing.


During Kesslers review of the Small Biz Community & Economic Development Corp. (Small Biz), questions were posed to Medina regarding the disbursements made to this sub-grantee. Medina indicated that he personally helped Mary Phillips (Phillips) (officer of the sub-grantee) load chairs into his car that were purchased by the City and delivered the chairs to 160 N. Powerline Road, Pompano Beach, FL 33069, the location of the sub-grantee Small Biz. Medina also stated Phillips received 10 computers under the grant. Kessler did not observe the documents indicating the purchase of these computers in the case file. Additional research was conducted and it was concluded that these computers were purchased by the City and not recorded as a reduction to the grant allocated to Small Biz.

Medina also indicated that he was friendly with Daniel Morgan (Morgan) of Sun Band Builders Construction, Inc. (Sun Band Builders), when he heard we had made a request for documentation regarding the rehabilitation conducted on the property owned by Katie Wiggins and that he was unresponsive to our request.

The next day Medina brought both Morgan of Sun Band Builders and Phillips of Small Biz to visit Kessler in the conference room. Kessler at no point in time had requested that Morgan and/or Phillips be brought in to have meeting.

Since Morgan was present we attempted to question him regarding the rehabilitation project conducted on the property owned by Katie Wiggins, Morgan laughed throughout the entire questioning and refused to give any explanations answered every with the phrase the city should have everything. In fact Morgan never specifically spoke to Kessler and would only speak to Medina, even though all parties were present in the same room. When asked for an explanation of non-descriptive invoices issued by Sun Band Builders, he laughed and refused to elaborate.

At the same time Medina also introduced Phillips of Small Biz. Questions were posed to Phillips regarding the purchase of chairs and computers for the benefit of Small Biz.


Phillips answered all of our questions and asked Kessler to visit the location of Small Biz to further discuss the services offered by the entity.

Later that afternoon, after Kessler returned from the onsite visit of Small Biz it was observed that Medina was still talking with Morgan, and that Phillips had returned to Pompano Beach City Hall. At this point in time Kessler requested in the presence of Medina that Phillips provide Kessler with a copy of the Profit & Loss Statement and Balance sheet for 2009 and 2010 for Small Biz.