Calmaquip Exec Gets 6 years

Raul J. Gutierrez, Jr., the former head of Calmaquip Engineering is sentenced to six years for his role in bid rigging in the construction of an airport in Trinidad and Tobago.

An overflow crowd packed federal court Tuesday to hear a judge sentence Miami Cuban business executive Raul J. Gutierrez Jr. to six years in prison for his role in the rigging of an airport contract bid in Trinidad. Gutierrez, who was the president of Calmaquip Engineering, remained silent as U.S. District Judge Paul C. Huck sentenced him for wire fraud and bank fraud. Gutierrez also faces nine months of house arrest and five years of probation.

Gutierrez and five other defendants pleaded guilty last year to charges stemming from a scheme to charge inflated prices for construction work at the Piarco International Airport in Port-of-Spain by submitting a sham bid. The illegal proceeds were then moved through a web of offshore companies and bank accounts in order to conceal the scheme. Besides the wire fraud, Gutierrez was sentenced for a bank fraud scheme that involved borrowing money from Miami banks, claiming the money was for equipment costs but actually using the funds to pay off other loans or for his own expenses.

The case represented an epic fall from grace for Gutierrez. Gutierrez was the son of a Cuban exile; Raul Gutierrez Sr., who acquired and built up Calmaquip in the 1960s and 1970s. Gutierrez did not speak on his own behalf, but court documents cited problems with alcohol abuse and the judge ordered substance abuse treatment in prison.

The case also signaled cooperation between the U.S. Attorney's Office and the government of Trinidad in trying to cut down on corruption involved in international business deals. The courtroom was packed with reporters from Trinidad and lawyers representing other defendants, the Trinidad government and local banks.

Two other defendants were also sentenced for their roles. Richard Lacle and Leonardo Arturo Mora-Rodríguez separately told the court of their remorse for their involvement in the scheme. ''I recognize the grave damage of corruption on our societies that contributes to increased poverty,'' said a letter from Mora-Rodríguez.

Judge Huck gave him a reduced sentence of six months of prison and six months of house arrest. Mora-Rodríguez also must pay $100,000 in restitution. Lacle was sentenced to 15 months, three years of probation and forfeited two properties in Pinecrest for carrying out ''structured'' money transactions to avoid bank reporting requirements.

Trinidadian authorities have charged that the airport scheme pushed up the construction price by millions of dollars, and prosecutors have placed the restitution for Gutierrez at $22.5 million. A Trinidad court should decide in April whether to extradite two final defendants in the case, Steve Ferguson and Ishwar Galbaransingh, both of whom are fighting extradition. (excerpt from article by Jane Bussey)

Commentary: Yet another example of the Cuban Exiles living the American Dream via corruption and illegal business activities.