News

By Jane Smith
    
    A former Delray Beach city employee has pleaded guilty for his role in using a company that charged the city for goods that were never delivered, according to the State Attorney’s Office.
    Orlando Serrano, 47, pleaded guilty on June 21 to grand theft of more than $20,000 and organized fraud of more than $20,000. He was sentenced to 12 months in the county jail and received one day credit for time served.
    Serrano also received five years of probation and was ordered to do 100 hours of community service at the rate of at least eight hours per month upon his release from jail. He must repay the city his share of more than $133,000.
    Serrano, who worked for the city for nearly 19 years, resigned his post as a traffic maintenance supervisor in March 2015.
    Co-defendant Cesar Irizarry, 51, was a treatment plant operator for about 25 years before he resigned in August. Irizarry’s case is set for an Aug. 8 jury trial.
    Another co-defendant, Harold Bellinger, died in early March.
    Prosecutors say the fraud occurred in this manner:
    American Traffic Products & Services Inc. provided street signs, street sign posts and diamond asphalt and concrete saw blades to Delray Beach. But the city didn’t know that the Serrano and Irizarry owned and operated the company, a violation of the city’s code of ethics.
    Bellinger’s role required him to approve invoices for the streets and traffic divisions.
    The city made 59 purchases from American Traffic Products for $230,540.59 since 2007, prosecutors found. But because of record retention limits, investigators could review only purchase orders going back to Oct. 1, 2009. The amount of purchases reviewed was for $158,139.21. Prosecutors found a total loss of $133,444.87 to Delray Beach.
    The company’s address was the same as Irizarry’s home address in suburban Boca Raton, state records show. According to records subpoenaed from JP Morgan Chase Bank related to American Traffic Products, Irizarry is the company’s director and Serrano is an authorized signer and the contact person on the account.
    Between Oct. 6, 2009, and Feb. 20, 2015, the city paid for $158,139.21 of sign equipment from American Traffic Products, but it received only $24,694.64. That resulted in a $108,152.07 loss for Delray Beach, prosecutors found.
    During that time period, Irizarry and Serrano withdrew a total of $112,920.39 from American Traffic Products’ bank account, with $51,480.39 withdrawn by Irizarry and $61,440 withdrawn by Serrano. Some of that money, $27,560, was deposited into Bellinger’s personal bank account, according to prosecutors.
    Bellinger separately ordered $7,582.80 from that company on Oct. 8, 2009, for striping materials and reflective glass beads. The city paid for the items, which it never received.
    Between Oct. 7, 2010, and Feb. 13, 2014, Bellinger ordered 200 gallons of liquid road tack from American Traffic Products. The city paid $9,520, but the product was not delivered. He also ordered diamond saw blades from American Traffic Products for $7,920 between Oct. 10, 2012, and March 21, 2014. The city paid the bill, but it never received the saw blades.