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Wednesday, May 25, 2011

Florida Ethics Commission P.O. Drawer 15709, Tallahassee, FL 32317-5709

Timothy "Chaz" Stevens PO Box 1123 Deerfield Beach, FL 33443

Dear Sir or Madam:

MAOS

I hereby file a complaint with your office alleging Deerfield Beach Housing Authority (DBHA) Board Commissioner Lee Giannino willfully and intentionally violated:

Florida Statute 112.313 - Standards of conduct for public officers, employees of agencies, and local government attorneys, section (3) doing business with one’s agency, (6) Misuse of public position, and (7) Conflicting employment or contractual relationship.

Florida Statute 112.313 (3) provides,

DOING BUSINESS WITH ONE'S AGENCY.-- Nor shall a public officer or employee, acting in a private capacity, rent, lease, or sell any realty, goods, or services to the officer's or employee's own agency, if he or she is a state officer or employee, or to any political subdivision or any agency thereof, if he or she is serving as an officer or employee of that political subdivision.

Florida Statute 112.313 (6) provides,

MISUSE OF PUBLIC POSITION.—No public officer, employee of an agency, or local government attorney shall corruptly use or attempt to use his or her official position or any property or resource which may be within his or her trust, or perform his or her official duties, to secure a special privilege, benefit, or exemption for himself, herself, or others. This section shall not be construed to conflict with s. 104.31.

Florida Statute 112.313 (7) provides,

CONFLICTING EMPLOYMENT OR CONTRACTUAL RELATIONSHIP.— No public officer or employee of an agency shall have or hold any employment or contractual relationship with any business entity or any agency which is subject to the regulation of, or is doing business with, an agency of which he or she is an officer or employee, excluding those organizations and their officers who, when acting in their official capacity, enter into or negotiate a collective bargaining contract with the state or any municipality, county, or other political subdivision of the state; nor shall an officer or employee of an agency have or hold any employment or contractual relationship that will create a continuing or frequently recurring conflict between his or her private interests and the performance of

MAOS

his or her public duties or that would impede the full and faithful discharge of his or her public duties.

In support of this allegation,

1. From 2003-2008, Giannino’s company, Grand American Title and Escrow Company, leased office space from the DBHA.

2. After his company shuttered its doors in the 2007/08 timeframe, Giannino owed $2,796.32 in back rent to the DBHA.

3. At the DBHA Board meeting, Giannino advocated and secured a better loan interest rate.

4. On January 1, 2011, Giannino entered into a business agreement with the DBHA to repay all monies due plus interest.

From the December 15, 2010 Board minutes,

Commissioner Giannino had only one concern about the promissory note and that was the 8% interest rate per year for any unpaid principal balance. Commissioner Gray made a motion to accept the adjustment of the 8% interest rate change to 6% interest rate. Commissioner Berner seconded the motion. This is unquestionably an issue of self- dealing and/or a clear conflict of interest.

The motion passed 4-0.

From the December 15, 2010 Board minutes,

Commissioner Giannino was given a promissory note which [sic] was prepared by DBHA's attorney Mr. William Crawford.

Excerpt from Florida Constitution Article II 8 (c),

Any public officer or employee who breaches the public trust for private gain and any person or entity inducing such breach shall be liable to the state for all financial benefits obtained by such actions. The manner of recovery and additional damages may be provided by law.

According to public records,

1. From Giannino’s promissory note, repayment on the $2,796.32 is as follows:

a. Payments are to be made on the first of every month, starting January 1, 2011.

b. Monthly payments are in the amount of $50.00.

c. The unpaid balance is subjected to a 6% per year interest rate.

d. Failure to make timely payments will not put the loan in default status.

e. The loan agreement only specifies the repayment of the principle, not interest.

2. Comparatively, the loan repayment arrangements with DBHA tenants is as follows:

a. 30% down at signing.

b. Repayment in full within the year.

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c. Failure to make timely payments puts the loan in immediate default.

3. The loan repayment agreement was prepared by Crawford.

4. Though Giannino’s company closed its doors around 2008, interest did not started

accruing until January 1, 2011.

5. Giannino has only made three of the five payments and all were made in March, 2011.

6. Giannino asserted undo influence on the Board by requesting the reduction of the

interest rate from 8% to 6%.

special pecuniary gain to Giannino of $222.71 and the total number of payments made reduced by 5. By a 4-0 vote, the Board agreed to his demands.

Over the term of the loan, this difference equates a

7. From 2008-2001, Giannino was not charged interest on the outstanding balance due. At 8% interest, Giannino realized a special pecuniary gain of $755.67 and at 6% his gain

was $549.98.

8. In sum, at 8% interest, Giannino realized a total special pecuniary gain of $766.67 and at the 6% his total gain was $772.69.

The 8% loan schedule is as follows,

Loan Balance: $2,796.32 Loan Interest Rate: 8.00% Loan Term: 5.9 years Monthly Loan Payment: $50.00 Number of Payments: 71 Cumulative Payments: $3,510.86 Total Interest Paid: $714.54

The 6% loan schedule is as follows,

Loan Balance: $2,796.32 Loan Interest Rate: 6.00% Loan Term: 5.5 years Monthly Loan Payment: $50.00 Number of Payments: 66 Cumulative Payments: $3,288.15 Total Interest Paid: $491.83

A schedule of 8% compounding interest is as follows,

Principal: $2,796.32 Interest Rate: 8% Compounded: Monthly Future Value: $3,551.99 Interest saved: $755.67

A schedule of 6% compounding interest is as follows,

Principal: $2,796.32

Interest Rate: 6% Compounded: Monthly Future Value: $3,346.30 Interest saved: $549.98

MAOS

I submit that Giannino violated Florida Statute 112.313 by,

1. Renting office space from his own agency.

2. Advocating and securing a better interest rate for money owed.

3. Entering into a business relationship to repay money owed.

I therefore respectfully request that your agency thoroughly investigates my allegation and to the extent permitted by State or local law or regulations, any and all penalties, sanctions, or other disciplinary actions for violations of such standards be applied forthwith.

Sincerely;

actions for violations of such standards be applied forthwith. Sincerely; Timothy “Chaz” Stevens 818-468-5433 Page 4

Timothy “Chaz” Stevens

818-468-5433