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VA case brings fraud plea

By CARRIE WEIMAR
Published March 13, 2007

TAMPA - The man accused of devising an elaborate kickback scheme during a construction project at James A. Haley VA Medical Center pleaded guilty Monday to federal fraud charges.

Joel Velasco, 63, of Tallahassee admitted to charges of conspiracy, fraud and accepting a kickback. He faces a maximum punishment of 35 years in prison when he is sentenced by U.S. District Judge Steven Merryday.

As a foreman with Alabama-based Dawson Building Contractors Inc., Velasco oversaw construction of the medical center's Spinal Cord Injury Center, which opened in 2002.

According to his plea agreement, Velasco approached one of the prospective subcontractors on the $21.7-million project in December 2000 and asked for money in exchange for favorable treatment.

The subcontractor, Liko Inc., installed the overhead lifts, or slings, used to move patients in the specialty unit.

Velasco said he discussed his plan initially with Peter Castelli, a Liko vice president.

In a 2005 interview, Castelli told the St. Petersburg Times that Velasco first told him it was customary to provide the general contractor with a new pickup to tool around the job site. Castelli passed the information to his boss, Hans Sigvardsson, the president of Liko.

Castelli said Sigvardsson didn't want to jeopardize Liko's contract and agreed to buy the truck, which he estimated would cost about $20,000.

Next, Velasco upped the ante to two pickups, saying the home office wanted one, too. Again, Sigvardsson agreed, Castelli said. Then Velasco changed his mind a second time. He wanted cash.

According to the plea agreement, Sigvardsson hatched a plan to funnel money to Velasco by giving Castelli a payment of $72,000 labeled as a bonus. Castelli would then turn around and give the money to Velasco.

Castelli told the Times he initially thought he wasn't involved in anything illegal because Liko was taking the money out of its profit on the project.

But Castelli said Sigvardsson instructed him to revise Liko's initial proposal and back date it to cover the money sent to Velasco.

Carrie Weimar can be reached at 813 226-3416 or cweimar@sptimes.com.

[Last modified March 13, 2007, 01:33:05]