Dania Beach Public Works Utilities manager misused his position to rig procurements and benefit himself and another

The Broward Office of the Inspector General (OIG) concluded its investigation into several allegations against City of Dania Beach public works department utilities manager Jose Urtecho, including that he was receiving kickbacks from city vendors. The OIG substantiated this allegation and found that Mr. Urtecho committed state ethics misconduct1 when he corruptly used his public position to rig city purchases from certain city vendors and requested and accepted from those vendors special benefits or gifts for himself and his girlfriend. The investigation uncovered Mr. Urtecho’s manipulations in 2018 and 2019 to give city work or payment to vendors who, at Mr. Urtecho’s suggestion and in return for getting city work or payment, provided money and free services to Mr. Urtecho and work for Mr. Urtecho’s girlfriend. To perpetuate his scheme, Mr. Urtecho directed subordinate employees to pay these vendors with their city-issued purchasing cards (p-cards), as the city had suspended and then banned him in 2015 from using his own p-card for violating the city’s purchasing policy. Although we found that Mr. Urtecho’s employees were not aware of his scheme, some of them saw red flags in his procurements but did as they were told because they feared retaliation from him, their manager. Thus, Mr. Urtecho was free to choose vendors that would provide personal benefits to him. The OIG found that, from January 2016 to June 2019, the city paid a total of $429,420.80 to the four vendors discussed in this report.