HIALEAH, FLA. (WSVN) - Former Hialeah Police Chief Sergio Velazquez was arrested on charges related to money laundering, organized fraud and grand theft, according to jail records.
According to jail records, Velazquez, 61, was booked into the Turner Guilford Knight Correctional Center on Monday and faces charges of money laundering and evading registration reports involving more than $100,000, organized fraud exceeding $50,000, and first-degree grand theft involving more than $100,000.
Prosecutors said this all started when the city’s new police chief, George Fuente, noticed irregularities in the department’s finances while under Velazquez’s control. He ultimately reported the irregularities to the Florida Department of Law Enforcement, who opened an investigation.
“The criminal investigation began with a concern from the new chief of police, George Fuente, who on November 24, 2021, referred his audit concerns to the Florida Department of Law Enforcement,” said Miami-Dade State Attorney Katherine Fernandez Rundle. “We are angered, but further shocked, when the person we are describing was the chief of police of the second largest municipality in Dade County.”
Velazquez served as police chief in Hialeah from 2012 to 2021 before being suspended.
“Chiefs of police are held to the highest standards of professionalism, integrity and service,” said Fernandez Rundle.
During the investigation, detectives said they found Velazquez had been stealing money from the department’s undercover narcotics investigation fund, as well as money seized during other investigations.
“Our investigation revealed that petty cash funds and money seized during criminal investigations were missing,” said FDLE special agent John Vecchio.
Between 2015 and 2021, investigators said checks totaling $2.8 million were issued to fund special investigations, yet to this day, $2.6 million is still unaccounted for. Furthermore, officials said more than $1 million from 20 court-awarded civil forfeitures also went missing.
Prosecutors said he would steal the cash for his own profit then deposit the funds into his personal accounts below reporting standards to avoid being caught.
One of those incidents happening on Oct. 28, 2020 showed Velazquez depositing $25,900, split between two business accounts and one personal account, broken up into 15 individual deposits, on the same day below the $10,000 threshold for a single day to avoid being flagged and looked into.
“Structuring in this manner is usually used by criminals to attempt to disguise the laundering of money which is obtained from criminal activity,” said Vecchio.
Prosecutors went on to say Velazquez then used the money to fund a lavish lifestyle.
“He made purchases of more than $300,000 in Rolex watches, over $11,000 from Cartier, over $6,700 from Louis Vuitton and over $5,000 from Versace,” said Vecchio.
His bond was set at $30,000.
Hialeah Mayor Jacqueline Garcia-Roves released the following statement following Velazquez’s arrest:
The City of Hialeah has been informed of the arrest of the former Hialeah Police Chief, Sergio Velázquez, as a result of an investigation initiated under a previous administration. Undoubtedly, this marks a sad moment for our city. Today, as the mayor of the second safest city in the entire state of Florida, I want to reaffirm our complete confidence in the leadership and integrity of the current Hialeah Police Chief, George Fuente, who continues to work tirelessly to ensure the safety and peace of mind of all our residents. We remain focused on continuing to strengthen our institutions and move forward towards a future based on transparency, accountability, and exemplary public service.
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