Haley scandal leads to prison

Two people are sentenced in a kickback scheme involving hospital construction.

By CARRIE WEIMAR, Times Staff Writer
Published August 7, 2007

TAMPA - Joel Velasco told authorities he was guilty of accepting kickbacks when he was helping build a $20-million project at the James A. Haley VA Medical Center.

But that didn't stop him from proclaiming his innocence during a sentencing hearing Monday. And it didn't stop a judge from sending him to prison for 18 months.

Velasco, 64, of Tallahassee, told U.S. District Judge Steven Merryday he never knew there was a law prohibiting kickbacks on government contracts. He said the practice was so common, every contractor could be charged.

"Every one of them is breaking this law," Velasco said. "Every single one of them."

Velasco blamed his employer, Dawson Building Contractors, and the government for not informing him about the law.

That sparked the ire of Assistant U.S. Attorney Robert Mosakowski, who said Velasco went to great lengths to cover up his crime.

"He knew his conduct was wrong," Mosakowski said. "It's plainly wrong, no matter which way you cut it."

Merryday was also unmoved by Velasco's speech. Along with the 18 months in prison, he imposed a $4,000 fine.

Merryday also sentenced the president of the company accused of offering the kickback, Hans Sigvardsson.

Sigvardsson was the president of Liko Inc., a subcontractor on the 70-bed Spinal Cord Injury Center at Haley, which opened in 2002.

In March, a federal jury found Sigvardsson guilty of fraud and offering a kickback. His company was found guilty of the same offenses.

In court Monday, Sigvardsson told Merryday he deeply regretted his actions.

"I ask you for leniency and mercy," Sigvardsson said.

Sigvardsson's attorney, Robert Ullman, requested a sentence of six months. Mosakowski asked for 11 months. Merryday settled on nine months, plus a $10,000 fine. Sigvardsson, who is Swedish, also faces the risk of deportation.

Merryday imposed a $63,000 fine on Liko.

Velasco pleaded guilty the day before his trial was scheduled to begin in March and agreed to cooperate with prosecutors. He told authorities he approached a Liko employee and asked for a pickup truck.

The Liko employee, Peter Castelli, testified that he discussed Velasco's request with Sigvardsson, who authorized him to buy the truck.

Later Velasco changed his request to two trucks and finally to cash, Castelli said.

In January 2001, Sigvardsson authorized payment of $71,570 to Castelli as a "bonus" to cover the kickback payment, according to court testimony. Sigvardsson deposited the money into Castelli's bank account and then Castelli issued the $63,000 cashier's check to Velasco.

Sigvardsson denied being involved in the scheme.

Castelli, who was present for Monday's hearing, said he was angered by Velasco's speech.

"He's delusional," Castelli said. "He pleads guilty and then he gets up there and says he's not guilty."

Castelli, who accepted a plea agreement and was sentenced to two years of probation, said he thought Velasco and Sigvardsson got off lightly.

"I guess it just goes to show," he said. "Crime does pay."

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

[Last modified August 7, 2007, 02:20:49]