On Monday, March 9, 2026, the Miami Herald reported that U.S. Judge Federico Moreno recused himself from a lawsuit involving former Miami Commissioner Joe Carollo.
The lawsuit, filed in November 2023 by businessmen Bill Fuller and Martin Pinilla, alleges that Carollo misused city resources to target political opponents, resulting in over $60 million in losses for their businesses. Fuller and Pinilla claim Carollo retaliated against them for supporting his opponent in the 2017 election.
Moreno’s decision to step down has put the trial, which was scheduled for later this month, in limbo. The parties were also reportedly nearing a settlement agreement. The recusal occurred during a contentious hearing where multiple witnesses, including former Miami Police Chief Art Acevedo, were present for in-court depositions.
Acevedo, a key witness for the plaintiffs, had previously been barred by Moreno from testifying due to his failure, along with five other witnesses, to appear for depositions scheduled for March 2. The absence was attributed to a communication breakdown, with both parties blaming each other for not issuing subpoenas. Despite the prior ruling, Acevedo traveled from Texas for a deposition on Monday.
The conflict arose when Attorney Jeff Gutchess, representing Fuller and Pinilla, revealed that Moreno’s daughter is part of the legal team representing Acevedo in a separate, ongoing lawsuit against the city. This lawsuit alleges that city commissioners, including Carollo, violated Acevedo’s First Amendment rights and retaliated against him for speaking out against corruption.
Moreno had previously disclosed his daughter’s affiliation with the law firm of Acevedo’s attorney, Marcos Daniel Jiménez, and had requested the parties to inform him by February 17 if Jiménez’s involvement presented a conflict of interest. Jiménez later confirmed in court that Moreno’s daughter has direct involvement in the Acevedo case.
While city attorney Angel Cortiñas argued that this did not warrant Moreno’s removal, emphasizing that Acevedo had already been stricken as a witness, Moreno ultimately decided to recuse himself. Cortiñas cautioned that the recusal could delay the trial by one to three years, a point Moreno acknowledged.
After announcing his recusal, Moreno stepped down from the bench, and the parties proceeded with the final deposition of the day without a judge. Moreno did not rule on whether Acevedo could be deposed, but noted that Acevedo was available to return to Miami for a deposition as early as the following week.
Speaking to reporters, Acevedo stated he has a “moral obligation to hold the corrupt city government accountable” and believes that the city does not want him to testify. He added that revealing the ways in which the city government is corrupt is something that doesn’t play well to the public or the jury.
Source: Miami Herald
