Audit Unleashes Chaos at Bayfront Park: Fraud, Abuse, and Record Demands Target Carollo

MIAMI  — A blistering financial audit has uncovered serious mismanagement and alleged misconduct at the Bayfront Park Trust during the tenure of former Chairman and Miami Commissioner Joe Carollo. The findings have triggered a formal law enforcement investigation and a sweeping demand for public records as the Trust moves to address what its leadership calls a “total breakdown in oversight.”

The audit, conducted by Caballero Fierman Llerena & Garcia, LLP, identified “significant deficiencies” in the Trust’s internal controls — weaknesses that auditors say opened the door to potential fraud, misuse of funds, and widespread abuse of power. The Trust’s current leadership, including Interim Executive Director Raul Miro Jr. and Chairman Commissioner Miguel Gabela, is now moving aggressively to uncover the full extent of the damage.

“This is about protecting taxpayer money and restoring public trust,” said Miro. “We will hold accountable anyone involved in financial wrongdoing, misuse of public funds, or fraud during Commissioner Carollo’s tenure.”

The audit findings have triggered multiple lines of inquiry, including:

•Use of Trust Employees for Political Work – Allegations that Bayfront Park Trust employees were used to perform duties for Carollo’s City Commission office — a clear misuse of public resources if substantiated.

•Improper No-Bid Contracts – Concerns that vendors received lucrative contracts without going through a competitive bidding process, raising red flags about favoritism, insider dealing, and potential violations of procurement law.

•Misuse of Public Funds for Political Campaigns – Reports that Trust funds may have been used to support political activity — a potential breach of state ethics laws and public trust.

•Hostile Work Environment – Multiple claims from staff describing a toxic, retaliatory workplace culture that undermined morale and operational stability.

Commissioner Gabela called the allegations “deeply disturbing” and vowed a full and transparent investigation.

“The public has a right to know the truth,” Gabela said. “We cannot ignore even the appearance of mal manejo de fondos — mismanagement of public funds — or fraude financieros. Every detail must come to light.”

The audit included specific findings that paint a troubling picture of financial chaos under Carollo’s leadership:

•Unapproved Disbursements (Finding 2022-01): Payments were made without documented review or supporting documentation. One disbursement lacked backup records entirely — a repeat offense from previous years.

•Lack of Oversight in Bank Reconciliations (Finding 2022-02): Bank statements were consistently unreviewed by management, undermining the basic financial checks and balances.

•Payroll Irregularities (Finding 2024-01): The Trust failed to maintain adequate records demonstrating that employee pay raises were properly authorized, raising concerns about equity, transparency, and legality.

In response to these findings, the Trust has expanded the scope of the audit, increasing costs but reflecting the seriousness of the misconduct being investigated.

This isn’t the first time Bayfront Park has drawn scrutiny. In May, The Floridian reported on an emergency meeting called to discuss “troubling new findings” from an internal review — a process that began shortly after Carollo was removed as chairman in February. At the time, Commissioner Gabela was already raising concerns about a lack of transparency and proper governance.

A senior city official with direct knowledge of the situation said the latest revelations go beyond simple administrative failure.

“These aren’t bookkeeping errors — they’re patterns that suggest systemic abuse of power,” the official said.

According to a source close to the matter, the Bayfront Park Trust has formally notified Commissioner Carollo of its demand for public records and is fully cooperating with law enforcement. Both Interim Director Raul Miro Jr. and Chairman Miguel Gabela have pledged to pursue accountability at every level — no matter how high the fallout reaches.

As investigations continue, Miami residents are left with a hard truth: one of the city’s most treasured public spaces may have been used as a political playground. And the full cost — financial and institutional — is only beginning to come into focus.