Federal charges against alleged ringer "a message to Rivera."

A one-time candidate whose suspicious campaign finances led to an FBI investigation of former Miami Congressman David Rivera was formally charged Friday in federal court with three crimes.

Shackled at the wrists, waist and feet, Justin Lamar Sternad pleaded not guilty to conspiracy, false-statement and illegal campaign-contribution charges.

Sternad is expected to strike a plea deal as he cooperates with federal authorities in their investigation of Rivera and the former representative’s close friend, Ana Alliegro, who managed Sternad’s disastrous Democratic primary campaign for a Kendall-to-Key West congressional seat.

Neither Rivera nor Alliegro is listed by name in the 10-page federal charging document, which lists Sternad’s nameless “co-conspirators” hand-delivering stacks of cash and checks to campaign vendors.

In all, Sternad received at least $81,486 in unreported cash and checks in less than three months last summer, the charging document said. The money helped pay for some fliers that attacked a Democratic rival of Rivera, a Republican.

“This was a message to Rivera. It’s a preview of what the indictment against Rivera will look like,” David S. Weinstein, who once led federal public-corruption prosecutions in the Southern District of Florida, told The Miami Herald and El Nuevo Herald after reviewing the case.

Rivera, who has maintained his innocence, refused comment but pointed to past statements in which he said he never has been informed by authorities of a federal investigation.

Weinstein pointed out that the charging document indicates prosecutors are hunting for a “big fish.” A sign of Sternad’s cooperation: he was charged by an “information” sheet filed directly by prosecutors, instead of an indictment by a grand jury.

The charging information against Sternad is about three times longer than typical information sheets and is filled with details — check numbers, bank account names, dates of transactions — that telegraph what Rivera is facing, Weinstein said.

Sternad faces a maximum five years imprisonment and $250,000 for each count, but he’ll probably get a far lighter sentence, Weinstein said, noting that the defendant could have faced more serious money-laundering charges.

“Sternad is clearly talking, he’s telling what happened and what he knows,” Weinstein said. “If this was a standard information, and not a shot across the bow at Rivera, this wouldn’t have all the detail you see.”

But, Weinstein said, Rivera could prove tough to prosecute because Alliegro’s whereabouts are unclear.

More here

Read more here: http://www.miamiherald.com/2013/02/22/3248213/in-david-rivera-investigation.html#storylink=cpy

Suspect in David Rivera campaign-finance scandal to be charged Friday with federal crimes

@MarcACaputo

A former candidate under FBI investigation with former U.S. Rep David Rivera is scheduled to be charged Friday with federal crimes over his campaign finances, sources tell The Miami Herald and El Nuevo Herald.

The charges against Justin Lamar Sternad stem from an investigation by The Herald, which first found discrepancies in his congressional campaign finance reports last August.

The FBI then began investigating Sternad, whose reports could have concealed as much as $100,000 in services and mailers, some of which attacked a Democratic rival of Rivera, who is a Republican.

Sternad is scheduled to surrender Friday morning in federal court, charged with lying on his federal campaign reports to hide the source of secret money funneled into his run for congress. Sternad is also charged with conspiring with others as part of the alleged scheme to defraud the United States.

Sternad, cooperating with authorities, is expected to plead not guilty. His lawyer, Enrique “Rick” Yabor refused comment.

Though Rivera is a target of the investigation, his name is nowhere in the indictment of Sternad, a source told The Herald.

Sternad and two campaign vendors who performed work for him have talked to the FBI and a federal grand jury to describe Rivera’s involvement in Sternad’s mercurial bid for Congress, which ended Aug. 14 when he lost the Democratic primary to Joe Garcia, who later beat Rivera in the general election.

A close friend of Rivera’s, Ana Alliegro, worked as Sternad’s campaign manager and repeatedly delivered fat stacks of cash to Rapid Mail & Computer Service, owner John Borrero told The Miami Herald, El Nuevo Herald and then the FBI.

Another vendor, Hugh Cochran of Campaign Data, told The Herald and FBI agents that he spoke with Rivera about running computer queries to identify voters to whom the different mailers were sent.

A third vendor, Expert Printing, produced the mailers but has refused to talk to the Herald.

Rivera has denied wrongdoing. Rivera couldn’t be reached for comment on Thursday.

“No federal agency has ever stated or confirmed that I am under investigation for anything,” Rivera has said in a prior statement about the case.

Alliegro, who was supposed to talk to the FBI in September, skipped out on her meeting with federal agents and is rumored to be overseas. Initially, Alliegro’s parents and lawyer didn’t know her whereabouts. Now she has been in contact with them.

Without Alliegro’s testimony, federal authorities could have trouble determining Rivera’s actual links to the unreported stacks of cash that funded Sternad’s campaign.

More here.

Pining for David Rivera

From Miami Herald columnist Fred Grimm:

I miss David. He was always there for me.

Before the voters in Miami’s 26th Congressional District dumped David Rivera, he was Mr. Dependable for a columnist, an unending source of material with his financial chicanery and phantom companies and his convoluted explanations. His life was like performance theater, living satire of a political contribution system gone amok.

Rivera, starting back when he was a state legislator, had styled himself as the perpetual candidate. “Essentially, the subject’s position is that he was for a period of almost a decade, continuously and simultaneously engaging in official business, campaigning for public office, as well as campaigning for committeeman; moving from one task to another seamlessly on a daily basis,” the Miami-Dade State Attorney’s Office reported.

A perpetual candidate, of course, needs perpetual access to his campaign accounts. Rivera’s ethos assumed, the report said, that “virtually every travel-related expenditure: airfare, automobile costs, lodging, meals and related miscellaneous expenses for personal items and entertainment were indeed permissible campaign-related expenditures.”

Rivera even rationalized his girlfriend’s travel costs as a legitimate campaign expense, because, well, a bachelor politician in South Florida must be mindful of appearances. He had other problems, of course. A shell company set up to disguise his work for a racino. And his bizarre meddling in the Democratic primary. An FBI investigation. All of it, great stuff for me.

Unhappily, Rivera’s entertainment value failed to translate into votes. He lost by 11 percentage points in November. He’s out of a job. Worse, I’m out of David.

More here

The rise and fall of Congressman David Rivera

For a decade, David Rivera was a political force to be reckoned with, the consummate operative who had a cat-like ability to survive any scrape — even as investigations swirled around him.

This November, the congressman’s ninth life expired.

Voted out of office as the FBI and IRS pressed on with probes into his personal and campaign finances, Rivera officially becomes a private citizen Thursday. Rivera could be charged soon, sources familiar with the investigation say.

Despite the ongoing investigations, Rivera has steadfastly denied he’s under any scrutiny and is already planning a comeback.

Rivera lived and breathed politics since and before his one term in Congress and four in the state Legislature. He was involved in every type of race: obscure party posts, local commission elections, contests for Florida House speaker, presidential races in the state and the winning campaigns of his close friend, U.S. Sen. Marco Rubio.

But Rivera’s penchant for playing the political game proved to be his downfall as well. Rivera often embroiled himself in needless schemes and some ultimately backfired, say friends, foes and former peers.

“At the end of the day, David’s cleverness was a liability. But until now, it was an asset,” said J.C. Planas, a fellow Miami Republican who served and clashed at times with Rivera from 2002-2010 in the Florida House.

Those who were even closer to Rivera, including Rubio backers, have anonymously described his schemes as bordering on “pathological” and “Nixonian.”

When asked about the comparison to former President Nixon, Rivera said by email “Don’t even know what that means.” He then added a “hee hee” laughter message that went on to reference a famous Nixon 1962 press conference after he lost a California governor’s race.

“But I do know this, you won’t have David Rivera to kick around anymore,” Rivera said.

It’s a vintage Rivera response: funny, edgy and laden with political depth. It also shines a light on Rivera's mercurial nature, which has long concerned some Rubio backers. They’re relieved that Rivera’s political career could be over because it lowers the chances that Rubio — a vice-presidential shortlister in 2012 who won’t rule out a future White House bid — would get caught in the crossfire of a future controversy.

The two still own a Tallahassee home, which a bank started to foreclose in 2010 just as Rubio was running for Senate.

Rivera declined to comment for this article. In the past, he would simply laugh when told he was too crafty for his own good.

While in office, Rivera filed false financial reports by listing a phony company that paid him phantom income, records show. He took a gambling-company payout in secret when he didn’t need to. And former campaign vendors say he was involved in a bizarre election scheme involving stacks of untraceable cash to help attack Democrat Joe Garcia, who ultimately beat him Nov. 6.

The FBI is investigating the latter two cases. The state ethics commission rapped him for 11 instances of non-disclosure in October. And he avoided a 52-count state criminal indictment for his use of campaign and public money when he was a state legislator.

Throughout, Rivera’s explanations often changed when it came to specifics. But his general response was the same: Denial of wrongdoing.

More here

Rubio pal Nelson Diaz fights off Ron Paul-ites to win Miami-Dade GOP chair

Nelson Diaz, a member of Sen. Marco Rubio's inner-circle, was narrowly elected to lead the embattled Miami-Dade GOP on Tuesday night, narrowly beating longtime Republican executive committee member Emiliano Antunez.

Diaz, who otherwise might have walked into the post, barely won thanks to a spirited effort by Republicans inspired by former Republican presidential candidate Ron Paul. A large number of the newcomers won party posts during the GOP primaries in August.

One source put the vote at 56-54. Diaz confirmed he won by two votes.

Republicans said before the meeting that, if all the Paul-ites showed up, Antunez might have won. A few of them forgot to properly submit party loyalty oaths and some Republicans loyal to Diaz wanted to block them from party posts.

The meeting was closed, outgoing Chairman Ben Powell said earlier. Previous chair races were open to the press.

The chairman race would have taken on added significance had another Rubio insider decided to run: Outgoing Congressman David Rivera, who's being nagged by two federal investigations concerning personal and campaign finances.

Rivera ultimately listened to reason and decided to sit this one out. But he'll be back.

Diaz, a lawyer and lobbyist with Becker & Poliakoff, is a much safer choice. Diaz isn't a polarizing figure and the local party -- overwhelmed in the just-ended elections -- needs to soothe rattled nerves, expand and get ready for 2014, when Republican Gov. Rick Scott is up for re-election.

Rep. David Rivera: Late chief of staff was 'family man and committed public servant'

Congressman David Rivera issued a statement Thursday on his chief of staff, Steve Vermillion, who died Thursday night after a four-year battle with leukemia.

"For nearly twenty five years, I have known Steve as a friend, family man and committed public servant," Rivera said. "My service in Congress has been greatly enhanced by Steve's invaluable advice and knowledge regarding all aspects of the legislative process. As a 17 year veteran of Capitol Hill, Steve will be dearly missed by the Capitol family for his warmth and his sense of service to this institution and our nation."

Vermillion was the longtime chief of staff of former Rep. Lincoln Diaz-Balart. And he had ties to Miami: Vermillion, who spoke fluent Spanish, attended graduate school at the University of Miami and once worked as director of congressional affairs for the Cuban American National Foundation.

On Twitter, Diaz-Balart wrote, "I will always remember him with deep affection and admiration."

Jaime Suchliki, director of UM's Institute for Cuban and Cuban-American Studies, also mourned Vermillion's death.

"Steve was devoted to the defense of human rights, particularly in Castro's Cuba," Suchliki wrote. "He was a jovial, kind, and intelligent human being and a loyal friend."

Read the full statements after the jump.

--PATRICIA MAZZEI AND LESLEY CLARK

Rep. David Rivera's chief of staff, who used to work for Lincoln Diaz-Balart, dies of leukemia

From Roll Call: 

Stephen Vermillion, a beloved Capitol Hill veteran whose courage and commitment to public service inspired friends, family and colleagues, died early Friday morning after losing a four-year-long battle with leukemia. He was 52.

A competitive rower and devoted public servant, Vermillion was diagnosed with leukemia on Nov. 15, 2008. After undergoing rigorous chemotherapy treatments, Vermillion was able to recover and return to Capitol Hill in January 2011 to serve as chief of staff to Rep. David Rivera, R-Fla.

However, Vermillion’s illness returned this summer, and when it became apparent that he would not survive, he vowed to fight it out until at least Nov. 15, which would be the four-year anniversary of his diagnosis. Vermillion completed that goal, which friends and colleagues say is indicative of his indefatigable will to live.

More here. (UPDATE: Rivera's office says Vermillion died Thursday night, not Friday morning.)

Changes in district helped lead to David Rivera's defeat

After two years of investigations and scandal, David Rivera may owe his collapse at the polls on Tuesday as much to the changing politics of his newly created congressional district as to the crippling weight of humiliating headlines.

Rivera, a Republican, lost his congressional seat in an 11-point loss to Democrat Joe Garcia, whom Rivera had beaten to win the seat in 2010. Rivera has been hounded by criminal investigations since before he took office, hobbling his once-formidable fundraising and leaving him adrift in his own party.

Rivera says he lost the race not because of the press reports of the criminal investigations — probes whose very existence he once denied — but because of an unexpected wave of support for President Barack Obama, and weaker turnout for Republican presidential candidate Mitt Romney.

“I think an analysis of the results demonstrates that the presidential election had a significant impact on several congressional races, including my own,” Rivera said Wednesday. “It makes it tough for Republicans down ballot to be successful.”

Rivera also may have been undone in part by a changing climate in his own congressional district, which was redrawn by the Legislature earlier this year.

The new district, which stretches from Sweetwater through the southwestern suburbs of Miami-Dade to the Keys, is not as heavily Republican as the district that Rivera won in 2010. And a late Democratic voter registration push by the Obama campaign made the district even more difficult to hold.

More here.

After loss, where does David Rivera go from here?

A day after losing his seat to Democrat Joe Garcia, Republican Congressman David Rivera said he has not set future plans.

"I'm going to get with my family and friends and supporters and discuss how I can best continue to contribute to our community's best interests, whether that be in public office or out of public office," he said. "Time will tell."

Rivera blamed his loss on President Barack Obama's coattails.

"I think an analysis of the results demonstrates that the presidential election had a significant impact on several congressional races, including my own," Rivera said.

Republican presidential candidate Mitt Romney under-performed in Miami-Dade compared to John McCain four years ago, Rivera noted.

"It makes it tough for Republicans down ballot to be successful."

Rivera also addressed his party's performance among Hispanics more broadly.

Earlier Wednesday, Rep. Ileana Ros-Lehtinen, a Miami Republican who was easily reelected Tuesday, told WLRN-Miami Herald News she was happy she "survived this Republican onslaught."

When asked about her party's appeal to Hispanics, she compared the GOP to addicts who first need to stop denying they have a problem in order to solve it. "We're not admitting, 'Dude, we have a problem,'" she lamented.

Rivera agreed.

"We as a party are at a critical juncture in terms of addressing our support among non-Cuban Hispanics," he said. "Unless we recognize the importance of being more responsive to their concerns, it's going to make it increasingly difficult to elect Republicans in districts with significant non-Cuban Hispanic constituencies."

UPDATED David Rivera loses U.S. House seat to Joe Garcia, Allen West falls behind Patrick Murphy

U.S. Rep. David Rivera — whose tenure was marked by a series of scandals and who remains the target of two federal investigations — was booted out of office Tuesday, becoming the only Miami-Dade congressional incumbent to lose his seat in recent memory.

Rivera, a Republican, lost to Democrat Joe Garcia, who handily picked up the Kendall-to-Key West seat for his party on a night when the GOP kept control of the U.S. House of Representatives. It was Rivera’s first-ever loss at the polls in a political career going back a decade.

“Thank you, South Florida!” a buoyant Garcia, 49, told more than a hundred supporters who were packed into Casa Vieja, a Colombian restaurant in West Kendall. “Today, our community has spoken. It has decided to turn a new page, move in a new direction.”

Another Republican incumbent, Rep. Allen West of Palm Beach Gardens, appeared to lose to Democrat Patrick Murphy by a sliver in the early hours of Wednesday. The race will likely head to a recount.

In his victory speech, Garcia called for compromise between Democrats and Republicans. In his only reference to his opponent, Garcia said Rivera “ran a hard campaign. We wish him and his family well.”

Two candidates without party affiliation, Angel Fernandez and Jose Peixoto, also competed.

In a third closely watched South Florida congressional contest, former West Palm Beach Mayor Lois Frankel, a Democrat, easily beat former state House Republican Leader Adam Hasner in a race for an open seat that stretches from Fort Lauderdale to Riviera Beach.

Rivera, a former state representative and powerful Florida House budget chief, tacitly conceded defeat Tuesday night.

“The results are still incomplete, but they do not appear to be positive,” he said. “I want to thank my friends and family and God for all the blessings I have received from this community. It has been a great honor to serve this community for 10 years.”

“In or out, I will keep fighting — that will never change,” he added. “We must make sure that this district returns to a Republican congressman in 2014.” More here.