A seven-month-old probable-cause finding in the state ethics case against Coral Gables Commissioner Melissa Castro is back in public debate after new reporting this week disclosed details of the investigation into her permit-expediting business.
The Florida Commission on Ethics found Jan. 23 that there was probable cause to believe Castro had a prohibited conflicting contractual relationship because her private business continued to pull permits in Coral Gables after her April 2023 election. But when the commission announced its decision five days later, it emphasized that probable cause is not a determination that a violation occurred.
Castro, who is seeking a second term in the Nov. 3 municipal election, is pushing back on how the case is now being portrayed. No final determination has been made, and no hearing date has been set.
Probable cause, not a final finding
A probable-cause finding is an intermediate step in Florida’s ethics process.
After a legally sufficient complaint is investigated, a Commission Advocate reviews the investigative report and recommends whether probable cause exists. If the commission finds probable cause, the complaint becomes public and ordinarily proceeds to a public evidentiary hearing before an administrative law judge unless the parties reach a settlement. The judge’s findings or any stipulated agreement then return to the Ethics Commission for final action.
Castro’s response to the Gazette centers on that distinction.
“I have not” been found to have violated Florida ethics law, she wrote, quoting the commission’s January release. “There has been no final determination that I violated Florida ethics law.”
What investigators found
The case centers on M.E.D. Expediters, the permit-expediting company Castro owns, and whether that private work created the kind of continuing or frequently recurring conflict prohibited by state law.
Florida law bars a public officer from holding employment or a contractual relationship that creates a continuing or frequently recurring conflict between private interests and public duties, or that impedes the full and faithful discharge of those duties.
Castro and her attorney have acknowledged that she continued performing permit-expediting work in Coral Gables after taking office and stopped personally handling Gables permitting work in June 2024.
During the commission’s January probable-cause proceeding, Commission Advocate Melody Hadley said that period itself presented a conflict. According to audio obtained by the Miami Herald, Hadley told commissioners that Castro’s employment created the type of continuing conflict contemplated by state law and recommended a finding of probable cause.
Investigators also examined what happened after June 2024.
A supplemental investigative report found that 132 permit applications were submitted or processed between June 5, 2024, and July 30, 2025, using an email address associated with Madeline Perez, a former Castro employee who operates a separate company called M.E.D. Expeditors of Coral Gables.
For a time, Perez’s company and Castro’s company shared an address and telephone number. Investigators said they could not independently confirm Castro’s assertion that she and her company had stopped doing Coral Gables permitting work.
Castro’s answer
Castro says Perez’s company is independently owned and that she has no ownership interest, management role or financial stake in its Coral Gables work.
She told the Herald that she gave Perez the Coral Gables side of the business and allowed her to use the M.E.D. Expeditors name, which originated with the company founded by Castro’s late mother. Castro says she has received no direct or indirect compensation, referral fees or other economic benefit from permits handled by Perez’s company.
Perez’s company later changed its registered address. Castro said she sought the change because the shared address could create confusion about whether the businesses were independent.
In her response to the Gazette, Castro also emphasized that she had voluntarily sought ethics guidance after taking office.
“I asked for the scrutiny. I asked for the rules,” she wrote. “I asked for guidance because I wanted to comply with them.”
What Miami-Dade’s ethics opinion actually said
Castro sought an advisory opinion from the Miami-Dade Commission on Ethics and Public Trust after her election.
The county commission ultimately concluded in June 2024 that Castro could remain owner and chief executive of a permit-expediting company representing clients in Coral Gables. It also allowed Castro and her employees to interact with the city on ministerial matters or simple informational requests.
But the opinion drew a line at advocacy requiring city officials or employees to exercise discretion. It specifically warned against such activities as seeking zoning modifications, permit changes, reinstatement of expired permits or efforts to persuade city staff that a permit or inspection was unnecessary.
The county opinion interpreted Miami-Dade’s ethics code. The state complaint proceeded separately under Florida law.
Who filed the complaints
Attorney Matthew Sarelson filed a Miami-Dade ethics complaint against Castro on Oct. 31, 2023, concerning M.E.D. Expediters’ business in the city. The county commission dismissed it Dec. 13 for lack of legal sufficiency. Sarelson later filed the state complaint that produced the January probable-cause finding.
Sarelson had previously filed an election complaint against Ariel Fernandez during the 2023 Coral Gables campaign.
A 2021 campaign treasurer’s report reviewed by the Gazette also shows that Mayor Vince Lago’s campaign paid Sarelson $1,250 for canvassing-board coverage.
Castro says she has no personal, professional or business relationship with Sarelson. She argues that the origins and timing of the complaints deserve scrutiny, while acknowledging that she has no firsthand knowledge of private communications involving Sarelson and Lago.
A January finding returns during campaign season
The probable-cause finding itself has been public since January. What changed this week was new reporting based on investigative records and audio from the commission’s closed probable-cause proceeding.
Aesop’s Gables, an anonymous blog sympathetic to Lago, published a report Wednesday based on the state case file. The Herald followed Thursday after obtaining investigative documents and audio through a public-records request. The Herald reported additional details about the 132 permit applications, the relationship between the two M.E.D. companies and Hadley’s reasoning in recommending probable cause.
The issue has also surfaced repeatedly at City Commission meetings. On Jan. 13, Lago questioned Castro publicly about the relationship between her company and M.E.D. Expeditors of Coral Gables.
Lago declined to comment for this story. He told the Herald that Castro had shown a “stunning failure of responsibility and transparency” and has called for her resignation. Castro has rejected that demand and says she will not resign.
Castro says the renewed attention weeks before the election is political.
“Now, in September, weeks before I face voters, that January preliminary determination has become the basis for calls for my resignation and a political narrative portraying it as a finding of guilt,” she wrote. “It is not.”
Where the case stands
There has been no final finding that Castro violated state ethics law.
If the case is not resolved through a stipulated agreement, the next stage is a public evidentiary proceeding before an administrative law judge. The judge’s recommended findings would then return to the Florida Commission on Ethics for final action.
No hearing date has been set, according to Castro attorney David Winker.
For now, the state’s action remains what the commission called it in January: a finding of probable cause to believe a violation occurred — serious enough for the case to proceed, but not a final determination that Castro violated the law.
Author: Coral Gables Gazette News Staff
Originally established in 1996 and relaunched as a digital publication in February 2025, the Coral Gables Gazette is an independent local news organization dedicated to factual, objective and accountable community journalism. Our newsroom reports on the people, policies, institutions and events shaping Coral Gables, Florida, providing residents with timely, informative coverage of the issues affecting their community. Our reporting includes City Hall, local government, municipal elections, public spending, real estate development, business, education, arts and culture, and neighborhood affairs throughout the City Beautiful. We follow City Commission decisions, examine public records and report on the businesses, organizations and individuals contributing to Coral Gables. We believe informed residents are essential to a healthy, engaged community. Stories published under the Coral Gables Gazette News Staff byline are prepared or compiled by the publication's editorial team. We strive for accuracy, fairness, transparency and clear distinctions between news reporting, opinion and advertising. Readers are encouraged to submit news tips, corrections, editorial inquiries and story suggestions through our Contact page and learn more about our standards through our Editorial Policy.
Who filed the complaint?
You mean who filed the complaint on behalf of Lago? He’s doing everything he can to make Melissa Castro look bad, but in the process he’s making himself look worse.
He’s accusing her of a “stunning failure of responsibility and transparency”? A stunning failure of responsibility and ethics was Lago’s insistence on voting on the Crystal Residences project immediately after the confirmation of fraudulent testimony where those making public comments under oath was clearly documented at the August 25th commission meeting! Going ahead with the vote and making light of the perjury charges was absolutely unbelievable.
To think this was the same person who ran his last campaign on a civility platform. What a laugh. He doesn’t know the meaning of real civility.
Dictatoe Vince Lago, aka Fidel Castro minus the murders, is at it again.
We all know it is Lago who has violated innumerable Laws, not Commissioner Melissa.
It is beyond chilling, and telling, that complainant Sarelson also filed a complaint against Commissioner Ariel Fernandez.
Mr Lago has been credibly accused of shaking down developers who win Permits from City Hall, for the construction contracts.
His conduct now unfortunately reopens concerns he will violate the law and sell the Youth Center to Developers who donated to his Campaign.
Thank you for your excellent reporting,
Jackson Rip Holmes
Commissioner Melissa Castro has consistently listened to our residents and acted on our behalf.
Vince Lago is trying his hardest to get her off the commission because he can’t control her votes.
That’s a good thing for Coral Gables.
We need to retain Commissioner Melissa Castro in office, for the good of our city and its residents.
Please vote on November 3rd.
It is ironic that Mayor Lago speaks about “responsibility and transparency” when he uses his ANONYMOUS BLOG (Aesop’s Gables) to run an 8-month-old story about Commissioner Castro 2 days before the 25th year remembrance of the 9/11 attack that killed 3,000 people, including 441 first responders. As an Army veteran, I think that is disgusting. Lago’s defamatory PAC (Coral Gables First) is also running the same old story. Lago is attacking Castro to divert attention from his own misconduct. Lago’s PAC received $10,000 from Fifield Cos. 12 days before Lago, Anderson and Lara (all who attack their opponents with the PAC) voted to give upzoning exceptions for the incompatible development at the Garden of Our Lord based on fraudulent testimony. Lago’s PAC also received $10,000 on May 18, 2022, from Location Ventures owned by convicted money launderer and tax evader felon Rishi Kapoor seeking upzoning exceptions in the North Gables. Vice Mayor Anderson sponsored the legislation to give exceptions to Location Ventures. Lago and his former Chief of Staff, Chelsea Granell, joined a brokerage firm 5 months before it received a $690,000 commission for Kapoor’s purchase of 1505 Ponce de Leon Boulevard. Lago’s company also received at least $152,000 in rent from Kapoor’s company for property it never occupied. Section 112.313, Fla. Stats., prohibits Lago from (i) accepting any payment that could influence his vote or action as Mayor, (ii) misusing his office to secure a benefit or (iii) having any contractual business relationship with any business entity which is doing business with Coral Gables (e.g., the development agreements the City had with Location Ventures). Lago (and his blog and PAC) should not throw stones in their glass house. He also does not need more pocket votes.
MY SAVIOR IN CORAL GABLES, BILL KERDYK, JR, AND HIS UNCLE BILL KERDYK, SR, WERE COMMISSIONERS FOR 30 – 40 YEARS, WHILE SUCCESSFULLY RUNNING THEIR REAL ESTATE BUSINESS IN THESE SAME YEARS.
LAGO IS NOT LIVING IN REALITY, AND NEEDS TO GROW UP.
Sincerely,
Jackson Rip Holmes
Let me try to explain why Lago should not be trusted by anyone, including family, friends, business associates and residents. For many years while I was a member of what we called “his cabinet” he maintained that he did not conduct any business inside the City of Coral Gables and I for one believed him; I trusted him. Much to my surprise and disappointment I realized he had not been honest since he did have business dealings in our City. Looking at the Florida State Department of Corporations his name came up as a Manager in an LLC when the original papers were filed and a few months later an Amended Annual Report didn’t have his name any more and then the company became inactive about a year later. Then something similar happened with another entity. For some time he kept asserting he was an owner of another one, and then he was no more. Now he has joined a new business where he is listed as Principal. For a short time there was a mention that in the previous construction company he had managed projects for the Dade County Schools and UM! And now that statement has been amended and those entities are not mentioned any more. How come this was not disclosed when UM appeared at Commission meetings, quasi judicial boards, etc? Maybe there could have been requests for his recusal? Or perhaps he would have had to say that he could be objective? As objective as he claimed to be when his “past” political consultant and fundraiser appealed a decision of the Board of Adjustment approving a variance with conditions! Or when what he calls MY PAC received major donations from an out of town developer who needed Commission approval for his proposed development project and UM asking for approval of the new 30 year Development Agreement! Perhaps it is time for some independent investigation of what appears to be shady behavior. Oops, let’s leave the topic of Permits issued for his projects. That could be done some other time!
One more thing addressing the uneducated messaging by Mayor Lago’s blog and PAC. Per Coral Gables City Attorney Opinion 2025-005 that Lago requested to protect Nic Cabrera, “doing business with the city” means a contract to provide goods or services to the City in exchange for compensation. It is not seeking a permit or obtaining other regulatory approval from the City. Based on this legal opinion, it is impossible for a permit expeditor helping a client obtain a permit from the City to be doing business with the City. But this is political messaging by Lago’s blog and PAC that has nothing to do with actual law.
The distinction between probable cause and a final violation matters, but so does the unresolved timeline: Castro says she stopped handling Coral Gables permitting in June 2024, while investigators found 132 applications through July 2025 using an email associated with a former employee’s similarly named company. What documentation establishes when the businesses actually separated, and who performed the work?