Tampa road builder gets 15 years for bankruptcy fraud

TAMPA -- Once-prominent Tampa road builder Michael Cone received a maximum 15-year federal prison sentence today after pleading guilty to hiding assets during his company's bankruptcy proceedings.

Cone, 51, former president of Cone Constructors, is already serving a five-year state prison sentence after a jury convicted him in February of an organized scheme to defraud the Florida Department of Transportation. U.S. District Judge Susan C. Bucklew ordered that Cone serve his federal sentence after he completes his state prison time, potentially keeping him behind bars for the next 20 years.

He must also pay more than $1.77-million in restitution and forfeit his family's home.

"This has been quite a journey," Cone said as he asked the judge for a chance to redeem himself. "I couldn't imagine ever sitting in a court listening to basically what we discussed today."

Assistant U.S. Attorney Anthony Porcelli called Cone's federal case "one of the most absurd bankruptcy cases that's been in this district in a long time."

"This is a fall from grace unlike any other case I've been involved with," Porcelli said.

Cone pleaded guilty to two counts of bankruptcy fraud and one count of conspiracy to commit bankruptcy fraud. His co-defendants included his wife, Joanne Cone, and former employee Patricia Rankin Grable.

Both women have pleaded guilty to their roles in the fraud. Grable is scheduled to be sentenced Tuesday before Bucklew. The judge will sentence Joanne Cone sometime in June.

As Cone Constructors filed for Chapter 11 bankruptcy in July 2000, prosecutors said Michael Cone was busy orchestrating ways to hide the company's assets, which included heavy road equipment and vehicles. Cone allegedly resurrected a defunct company that he claimed his wife operated and sold off Cone Constructors equipment to her, then leased it back for his own use.

Grable testified during the sentencing that Cone gave her a binder that contained fake and back-dated documents to make it seem as if Joanne Cone's business had been active all along and appear as if Grable was an officer. Grable said she lied during the bankruptcy proceedings in presenting those documents and to a grand jury because of greed.

Cone had promised her that once they got their legal troubles behind them, they could turn Joanne Cone's development business into a legitimate enterprise and make money, Grable said.

The judge scolded Cone for being "difficult" during the prosecution, causing several delays in his sentencing and showing up the day it was to take place having not turned over important documents for his attorney to use. Bucklew also said she doubted Cone had learned from any of his mistakes.

Besides the conviction in the state case earlier this year, Cone pleaded no contest in 1999 to state criminal charges of failing to pay subcontractors. The DOT banned his company from bidding on state projects for four years after that, allowing him to complete existing projects.

Cone Constructors served as general contractor for parts of the Suncoast Parkway in Hillsborough and Pasco counties from July 1999 through May 2000.

Porcelli accused Cone of committing perjury during testimony in the sentencing. More than once, the judge had to direct Cone to answer a question without saying what someone else had told him first.

Defendants who plead guilty in federal court usually receive credit for accepting responsibility, which may result in less jail time. Cone would not have qualified for a shorter prison term in this case because of his past convictions and the crime he committed. Bucklew denied him credit anyway, because she said she didn't believe Cone had accepted that he committed a crime.

Attorney Eddie Suarez, who lives across the street from Cone, spoke on his behalf.

"Since he's been taken into custody, there's a certain something that's missing in the neighborhood," Suarez said.

He called Cone a "kind and considerate man" who is a good father to two sons.

"I'm sorry for your family and I'm sorry for your children. They are going to be without you for a long period of time," Bucklew told Cone. "You may be a good father in a lot of ways, but you have created a situation where your children are going to suffer."

Kevin Graham, Times staff writer