Tony Nelson still ran publicly funded nonprofit after state said he couldn't
Nearly 15 months after former Jacksonville Port Authority Chairman Tony Nelson was charged with bribery, mail fraud, money laundering, conspiracy and lying to the FBI, he was still president of a non-profit organization funded largely by taxpayer dollars.
His involvement with the First Coast Black Business Investment Corp. meant it shouldn't have gotten more than $260,000 it received from the state last year, according to communications obtained by the Times-Union.
Since the early 1990s, the group doled out $2.3 million in state-funded loans to black-owned businesses in Northeast Florida. Nelson has been the president for more than two decades and in recent years received a $116,398 annual salary.
Read First Coast BBIC documents and correspondence
Jurors convicted Nelson on May 20 after the government proved he was paid about $150,000 in bribes by the owner of a dredging company for influence at the port.
From 2006 to 2009, First Coast BBIC received $866,133 in taxpayer money, or 62 percent of its total revenues, according to documents filed with the IRS. It did not give out any grants, and spent $597,932 - 58 percent of total expenses - on employee salaries and benefit packages over that time period. The group received roughly $300,000 in this year's state budget.
The Times-Union obtained letters between First Coast BBIC and Karl Blischke , an analyst for the state's Office of Tourism, Trade and Economic Development. They show that because of the Nelson investigation that became public with an FBI raid of his offices in 2008, state funding in fiscal year 2009-10 was contingent on a "firewall" between Nelson and "any program related activities."
But state documents and bank records show that as recently as late April of this year, Nelson was still involved in group business. His electronic signature is on the organization's annual report filed with the state on April 21, and his hand-written signature appears on bank documents dated March 25.
First Coast BBIC sent a letter on May 26, 2010, telling Blischke that Nelson was not involved with the loan program, which the state said did not go far enough. One month later, it passed a resolution turning operations over to board Chairman Al Denson, and Nelson signed a memo indicating he agrees "not to have any involvement."
Days later the state said BBIC were "eligible" for $261,333.
A separate group, the Florida Black Business Investment Board, confirmed that Nelson was officially BBIC's president as of June 3. State money goes through that group to BBIC and seven other regional groups across the state.
After several requests seeking clarification about Nelson's role with the group after his conviction, the organization sent a statement Thursday saying Nelson was no longer its president.
It did not answer questions about whether Nelson was receiving a paycheck into June. The Florida Black Business Investment Board and the state said they did not know if Nelson was still drawing his nearly $10,000-per-month salary.
Nelson's attorney, Curtis Fallgatter, said Tuesday that Nelson was still working for the organization even during his trial.
"It's a testament to his integrity," he said.
When later asked about the "firewall," Fallgatter parried.
"I am not his employer, and have no direct information about his position, duties, 'firewall' or any other specifics of his work for them," he wrote in an e-mail.
Nelson faces a maximum of 609 years in prison and a fine of $11.75 million and is appealing.
A status hearing before Judge Timothy Corrigan is scheduled for Thursday.
matt.dixon@jacksonville.com, (904) 359-4174
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