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BROWARD COUNTY

Prominent Broward lobbyist target of corruption probe

shiaasen@MiamiHerald.com

On Sept. 27, 2007, some of the most influential people in Broward County's construction industry -- builders and engineers, lawyers and lobbyists -- gathered in a Fort Lauderdale home to open their checkbooks for School Board member Beverly Gallagher, raising $39,000 for her campaign in one day.

Two years later, Gallagher is facing federal charges of accepting payoffs from undercover FBI agents posing as consultants for contractors. And the investigation is now focused on the man who hosted that 2007 fundraiser: lobbyist Neil Sterling.

Over the past two decades, Sterling has risen from a seat on the Broward County School Board to become arguably the most influential lobbyist at the district. His client list includes some of the biggest vendors and contractors working for the schools -- and some of the biggest donors to School Board members' campaigns.

After Gallagher's arrest, School Board member Bob Parks said FBI agents questioned him about Sterling's influence with the board.

Investigators have also scrutinized one of Sterling's former clients, James B. Pirtle Construction, a Davie contractor with school construction contracts worth hundreds of millions of dollars. Gallagher is accused of trying to steer a $71 million contract to Pirtle as part of the payoff scheme described in the indictment. Gallagher has pleaded not guilty.

A Pirtle vice president also was among the guests with Gallagher at a Christmas party set up in the FBI sting.

Sterling has been a reliable fundraiser for seven of the nine School Board members. Gallagher alone received at least $10,500 from Sterling's firm, his family or his clients in her last two elections in 2008 and 2004, records show. Sterling's lobbying partner, Barbara Miller, also helped manage the 2004 campaign of board member Robin Bartleman.

This close access has given Sterling enormous sway with the board -- too much sway, some critics say.

``It's a great deal of influence that he has had over the years over the School Board,'' said Broward County Commissioner Lois Wexler, a former School Board member who often butted heads with Sterling. ``It still pains me to think about.''

Wexler is still bitter over a no-bid contract the school district approved in 2004 for Riverdeep, a Sterling client, to create a Web-based education portal. Wexler believed more competitors should have been part of the contract, which was potentially worth $25 million. Wexler was so convinced of improper influence peddling in the deal that she saved her files on it for years.

``My wish was that there would be a federal investigation,'' Wexler said.

Parks said FBI agents asked him last week about a ``coalition'' of Sterling votes on the board -- an impression he said was unfair. Parks acknowledged that Sterling was a highly visible lobbyist and frequent campaign donor, but added: ``You don't vote for every one of his clients. I don't. And I can only speak for myself.''

Sterling did not return phone calls over the past week seeking comment for this article.

LONGTIME FIXTURE

Sterling, 58, has long been a fixture of Fort Lauderdale's downtown establishment. Lori Parrish, the property appraiser and former county commissioner, is among his best friends. (Sterling was a ``maid of honor'' at her 1987 wedding.) Sterling was also once a business partner of Ken Jenne, the former lawmaker and Broward County Sheriff who went to prison on corruption charges in 2007.

``He is by nature not very aggressive, more passive,'' said County Commissioner John Rodstrom, who has known Sterling for years. ``If he does lobby, he was always apologetic about it. He hasn't lobbied me in a while, almost like it's uncomfortable for him.''

Sterling's name is among the oldest in the city: His grandfather, Isadore Adler ``Pop'' Sterling, founded the M. Sterling men's and boys' clothing store in the city's downtown in the 1930s.

Sterling, who planned to become a doctor, graduated from Evergreen State College in Washington. Tragedy brought him and his wife, Cyd, back to Broward. In 1976, his father, Morris, was shot and killed by a stock clerk accused of defrauding the store.

Sterling and his sister, Lori, took over the family business, which closed in 1999 after struggling for almost a year to stave off its creditors.

After his return to Broward, Sterling became an advocate for revitalizing downtown Fort Lauderdale, lobbying government officials to build a library and the Museum of Art. He later led the city's Downtown Development Authority, which pushed for the Broward Center for the Performing Arts.

Sterling left the DDA to run and win a seat on the Broward School Board in 1984. He and others criticized the district's construction department in 1986 for poor building quality and mismanagement.

``I worry we are building too cheaply,'' Sterling said at the time. ``We need to set the stage at the high-quality level.''

During his tenure, the board passed a $317 million bond issue to overhaul aging schools and build new ones -- the last bond issue approved in the school district.

Sterling quit the board to run for Fort Lauderdale mayor in 1991 -- a race he lost, despite raising four times as much money as Jim Naugle, then a city commissioner. Naugle won with 60 percent of the vote after painting Sterling as the captive of Fort Lauderdale's downtown power brokers.

``He was devastated when he lost, and he vowed not to go into public office again,'' Naugle said last week. ``I guess instead of running for office, he's running the office.''

19 CLIENTS

Though Sterling also works at County Hall, most of his lobbying work is with the School Board. He has represented 19 different clients before the School Board since 2000, including construction companies, the school district's health insurance company, the DDA and the Community Blood Centers of South Florida, which has a near-exclusive agreement to run blood drives on Broward campuses.

The blood centers' president, Dr. Charles Rouault, said Sterling helps the nonprofit organization navigate the bureaucracies of the School Board and local governments.

``When we have an issue, he can get us a meeting with the appropriate people,'' Rouault said. ``It's just getting in and getting a hearing.''

In 2003, Sterling helped Community Blood fight off a challenge from a rival medical provider seeking access to schools in South Broward. Months before, Sterling also recommended Gallagher for a part-time job running the Community Blood Centers' scholarship foundation. Gallagher was fired by the organization on Friday, in the wake of her indictment.

Sterling earns about $100,000 a year from the blood center, Rouault said. Sterling is also paid $60,000 a year as a lobbyist for the DDA, where he has been leading a campaign to bring a $124 million streetcar to downtown Fort Lauderdale. He currently has a half-dozen other clients before the School Board.

Sterling's supporters say they expect him to be cleared in the criminal probe.

``He is a decent fellow,'' Rodstrom said. ``He doesn't strike you as a lobbyist. I would be very surprised if he has broken the law.''

Miami Herald staff writers Hannah Sampson and Amy Sherman contributed to this report.

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