While this independent contractor “arrangement” is not in violation of the North Bay Village Charter, Article IV, Section 4.04 clearly states the qualifications of the Manager, which reads, “The Manager shall be a graduate of either an accredited school of public administration or its related equivalent in engineering, fiscal management or business administration with no less than three (3) years’ experience in the administration of local government or in lieu of the foregoing, he must have not less than five (5) years’ experience in the administration of local government.”

According to her own LinkedIn profile, Stephanie Leon lists her only “education” as having attended the Gold Coast School Of Real Estate, and that she is a “certified” as a “reo foreclosure specialist” and as a “short sales agent.” Nowhere does profile state that she has a degree in public administration, engineering, fiscal management or business administration, as required by the NBV Charter. Nor, does her bio reflect any experience whatsoever in the administration of a local government, as also required by the Charter.  By hiring and paying a real estate agent as the village manager, the Mayor and Commission are in violation of their own municipal charter.

The Internal Revenue Service, however, is not so forgiving.

As Kevin Vericker reported earlier this month, “According to the IRS definition of a contractor if a worker is paid a fee for a work product, and the organization does not significantly direct how and where the work is done, that’s a valid contractor.  On the other hand, if there is no defined work product and the hiring organization significantly controls how, where and when the work will be done, that’s an employee.  See the IRS explanation at this link.  Velken is in place to work, as police chief and then as village manager.  There is no beginning, middle or end.  Velken is an an employee by all common definitions, yet someone else is paid for his work.  This means that the Village is at risk of facing audits, fines and penalties from the IRS.  The complaint about the the situation has already been filed with the IRS and it is unlikely that they will understand the arrangement as a contractor. ”

The man at the center of this controversy, Lewis Velken, is also in hot water.

The NBV blogger reported that “the purpose of the contractor arrangement was to evade the FRS rule which requires an employee who retired and then takes a job with another FRS agency to suspend their pension and pay back the Deferred Retirement Option Payment, in Velken’s case several hundred thousand dollars, or face stiff penalties including criminal investigations and possible loss of pension. ”

Accordingly, FRS rules are very clear and unambiguous, and state, “You must meet the definition of termination by remaining unemployed by any FRS-participating employers for the first six calendar months of your retirement or the first six months after your DROP termination date.  If you return to work during this six calendar month period, you will void your retirement and must repay all benefits received, including your DROP accumulation payout.”

Unfortunately for Mr. Velken, when negotiating this arrangement with North Bay Village, he relied on the flawed legal opinion of Norman C. Powell, whose fingerprints are all over this mess, even as he denies all knowledge of it.

Norman, of course, is placing the blame squarely on former Village Manager Marlen Martell, and claiming that she and Velken “made the arrangement without his knowledge or approval.”

Martell, however, claims that Powell, aided and abetted by former Mayor Connie Leon-Krepps, concocted this entire scheme and advised her it was all totally legit.

In fact, in a deposition in a separate but related case, when asked if she was “aware of a rule that prevents somebody from retiring from the FRS system and taking a new job with another FRS system” (page 44), under oath Marlen Martell replied that she did.  Furthermore, she testified that Norman Powell told her “there were ways around it.”

Powell also advised her that Velken was told by the FRS that “he could continue working and not affect his FRS retirement” by going “through a third party,” such as a “temp agency.”

After relying on Norman’s legal advice, Martell signed Velken’s contract, completely unaware that the “third party” was a Miami Lakes real estate broker, and not a temporary employment agency.  In fact, in her deposition, Martell stated that the name “Stephanie Leon” meant absolutely nothing to her.

The Miami Herald reported, “On April 17, Velken and Martell signed an employment affidavit stating Velken was to be employed by North Bay Village Police Department starting the next day.  There was no mention that he would actually be employed by Stephanie Leon P.A., the real estate agent, and not directly through an official law enforcement staffing agency.”

Even stranger, as the Miami Herald reported, “At first, the checks sent to Stephanie Leon P.A. were signed by former mayor Connie Leon-Kreps.  In a deposition for an unrelated case, Leon-Kreps said she was aware the payments were made through a third party, which she likened to a staffing agency, but denied knowing anything about the arrangement to circumvent FRS.”

Yeah, right.

Besides, since when does a mayor, and not the manager, sign municipal checks?

Then again, this is North Bay Village.

In response to Martell’s testimony that Norman Powell knew about, and even orchestrated, Velken’s “third party” employment scam, he indignantly told the Miami Herald, “That’s a complete fabrication.”

Except he’s wrong.

Again.

In a blog posted this morning, Kevin Vericker published an email chain between Norman C. Powell and former NBV labor attorney, David Miller of Bryant Miller Olive, P.A. which clearly shows that Norman is a first class liar!

Yeah, I know.

We’re having way too much fun.

Thanks, Norman!

But, wait!  THERE’S MORE!

It seems that Norman Powell isn’t the only public official in North Bay Village who has trouble with the truth.

At the February 12, 2019 meeting, Commissioner Andreana Jackson publicly accused Marlen Martell of committing “several crimes when hiring Velken, including fraud and perjury,” according to a February 19, 2019 Miami Herald article.

Kevin Vericker hilariously described this latest North Bay Village sideshow:

But this does leave Andreana Jackson in a bit of a pickle.

You see, at the same meeting where she undoubtedly by accident said that Marlen Martell fabricated an employment agreement regarding Lewis Velken and tried very hard to find out what the finance department knew and when she also reported about a conversation she had with Lewis Velken.

Jackson stated that she had talked with Velken over the weekend and he had told her that Powell did not know about the arrangement to pay him through a third party.

And maybe Velken didn’t know that Powell knew.  Maybe.  Although in sworn testimony, Martell says he did know.

Anyway, Jackson is facing a quandary.   Although she may have believed Velken, it’s now clear that at least by September 4, 2018, Norman Powell was aware of the Stephanie Leon PA payment scheme and failed to inform the commission.

Andreana Jackson owes Norman Powell an apology.  She inadvertently and relying on third parties stated something about Powell that is provably false.   It’s probably not a good idea to rely on someone under investigation for your main information.

Folks, we can’t make this stuff up.

We also can’t make up the fact that, after being falsely accused and publicly slandered by Commissioner Jackson, Marlen Martell immediately hired Miami Lakes Attorney, Michael “Pitbull” Pizzi to defend her honor.

In a February 15, 2019 letter to Ms. Jackson, the Pitbull wrote, “Let me be absolutely clear.  Any suggestion that Ms. Martell acted improperly or dishonestly is a bold-faced lie.”

Pizzi went on to explain to the obviously clueless Commissioner, “In any City in the State of Florida, it is absolutely the responsibility of the City Attorney (in this case Norman Powell) to vet and approve any contracts or employment arrangements of any appointed officials.  It was the job of the City Attorney to investigate, vet and approve of any employment arrangement made by Mr. Velken and that is exactly what transpired.”

For good measure, Pizzi scolded Ms. Jackson, “You have now needlessly, recklessly, maliciously and with full knowledge of the false content of your statements harmed, the reputation of Ms. Martell and caused her irreparable harm to her career.”

He then demanded a public apology and retraction at the next Commission meeting.

Marlen told VotersOpinion, “I am sick and tired of being blamed for every problem that occurs in North Bay Village.  I have been gone for over seven months now and I have no opportunity to publicly defend myself.  While I was the manager, I never spoke out in order to deflect negative publicity for the village.  This time, however, Jackson’s public malicious and false accusations cannot be overlooked.”

“Marlen Martell is a wonderful public servant of great integrity,” said Pitbull Pizzi.  “She is an innocent victim of certain officials serving their own personal agendas.”

The moral of the story is … If you’re gonna lie, don’t leave a digital footprint.

Or, in the case of Larry Spring, don’t do it on camera.

Stephanie