Fired Miami Beach Building Director Faces Corruption Charges

MIAMI BEACH, FL — Fired Miami Beach building director Mariano Fernandez was booked into a Miami-Dade County jail on Tuesday afternoon, according to court records. Fernandez is facing two counts of corruption-related offenses, including unlawful compensation or reward for official behavior. He was fired from his post in November after city officials learned that Fernandez was about to be charged for allegedly trading favors with a South Beach hotel.

Miami-Dade State Attorney Katherine Fernandez Rundle formally announced the charges during an afternoon press conference that was attended by Miami Beach Mayor Dan Gelber, Police Chief Daniel Oates and City Manager Jimmy Morales.

Fernandez allegedly solicited and accepted illegal "benefits" for himself and others over a 19-month period from Riutel Florida Inc., which owns the Hotel Riu Plaza Miami Beach, a 284-room hotel at 3101 Collins Avenue. The organization is a wholly owned subsidiary of Spanish hotel chain Riu Hotels and Resorts, one the largest such chains in the world.

Morales said in a statement on Tuesday that he can could have provided guidance on any ethical question had he been consulted.

"As city manager, I can provide all of the tools needed for an employee to make the right decision when faced with an ethical dilemma," he said. "Ultimately, it is up to each individual employee to make the right decision themselves. It angers me to see something like this happen in a city that has made such important strides in making employees feel like they have the tools to handle these types of situations."

Court records show that the 64-year-0ld Fernandez was booked into Turner Guilford Knight Correctional Center at noon on Tuesday. He is also charged with conspiracy to commit unlawful compensation.

"The unlawful benefits were at the direction of RIU managers Alejandro Sanchez and Ricardo Luque and with the explicit permission of owner Luis Riu and CEO Pepe Moreno," according to a 116-page affidavit made public on Tuesday. "The unlawful benefits were offered as a reward for Fernandez' official action as building director."

Prosecutors also said they plan to arrest Luis Riu, Sanchez, Luque and Riutel Florida Inc.

"Between October 2013 and June 2016, the Riu Miami Beach underwent a major renovation and rebranding," the affidavit said. "During the renovation, Riu had difficulties with the permitting process with the Miami Beach Building Department and the Miami Beach Fire Department. Fernandez, as director of the building department, helped guide Riu through the permitting process, including taking official action to assist the Riu."

In return, Fernandez allegedly received multiple "complimentary and significantly discounted rooms" at the Riu Miami Beach and other hotels. The entire Miami Beach Building Department also received a reduced rate during a 2015 stay at the all-inclusive Riu resort in Punta Cana, Dominican Republic and a 2016 stay at the Playa del Carmen, Mexico.

Fernandez had worked for the city since May of 2013. His termination letter in November stated that the city manager lost confidence in his ability to meet "standards of integrity."

"When you were appointed in May 2013 as my building director, we had extensive discussions about my expectations in this regard," wrote City Manager Jimmy Morales in the termination letter to Fernandez. "Clearly recent events have seriously eroded any confidence I have in your ability to meet the standards of integrity that I have set for all employees of the city and especially for my management team."

Fernandez becomes the second Miami Beach official to face legal issues in recent months. In October, then Miami Beach Commissioner Michael Grieco resigned his seat and entered a plea deal over a misdemeanor election crime.

Morales, who was also appointed in 2013, told Fernandez that he had "worked tirelessly" to promote a culture of high ethical standards in Miami Beach. The termination letter was dated Nov. 9.

"As you know when I was first notified of pending legal issues regarding your professional conduct in August, I placed you on suspension without pay," Morales said. "Today I was notified that you will be indicted on criminal charges."

Photo of Mariano Fernandez courtesy Miami-Dade Department of Corrections and Rehabilitation