TAMPA - After a two-year investigation, federal authorities have arrested former Tampa housing chief Steven LaBrake, his wife Lynne McCarter and three others on fraud and corruption related charges.
The 40-page, 60-count indictment outlines allegations of how the defendants allegedly used federal housing funds awarded to the city to award contracts to a builder and a non-profit group which in turn provided favors to help LaBrake and McCarter build a a luxury home on South Tampa.
Also named as defendants:
-- Chester "Chet" Luney, who headed up the non-profit housing organization Tampa Hillsborough Action Plan or THAP. He did a number of favors for McCarter that fattened her income, a Times investigation revealed, enabling her to get mortgage loans to build the dream house. Luney also oversaw favors on the house, including getting the old home hauled away.
-- Lori Roberts handled the credit union loan for McCarter, and also was a beneficiary of low-income city loan processed by McCarter.
-- Dean Ryan, a Tampa builder who built the luxury home at a bargain price. He also did work for the city and for THAP.
The scrutiny began two years ago with reports that LaBrake and McCarter, then his girlfriend and employee, were building the luxury home at a remarkably low price. The builder was Ryan Construction, which had received more than $1-million in city contracts from LaBrake's office in recent years, raising the specter of a sweetheart deal.
The couple, since married, said they hit hard financial times after LaBrake lost his job under then-Mayor Dick Greco and divorced his first wife. Lynne LaBrake quit for health reasons, including a difficult pregnancy.
In recent months, LaBrake has been listed as the broker for at least a dozen properties, some commercial, others residential, yet others vacant lots. Black and red signs announcing, "LaBrake Realtors Incorporated," have popped up from west Tampa to Ybor City.
LaBrake works out of an office in a strip center on W Columbus Drive.
In August, six city officials who worked under LaBrake when he oversaw affordable housing programs were subpoenaed to go before the federal grand jury investigating the case.
