Watchdog Report Vol.11 No.38 Est.05.05.00 – I go when you cannot
CONTENTS
Argus Report: Former Sen. Martinez says U.S. Sen. Rubio’s “head screwed on straight,” and solution to nation’s debt “not rocket science”
Florida: Will Gov. Scott’s austere FL budget stay intact during upcoming legislative session, wants pension reform, business enticements, and tax cuts?
Miami-Dade County: Court challenges fly in recall of Mayor Alvarez & Commissioner Seijas, process bogus says mayor – Seijas deposition Monday now public
Broward County: Commissioner Lieberman being absent for months creates commission dilemma, she must explain when coming back
Palm Beach County: Local resident pleads guilty to cramming scheme
Bay County: Gov. Scott taps Patronis again as trustee at community college
Holmes County: Statement from Governor Rick Scott Regarding today’s Shooting in Holmes County
Monroe County: Administration adjusts infrastructure design because nine to 24 foot projected rise in sea level over next 50-years
Miami-Dade Public Schools: District employee after FBI & District Audit Department investigation of scam gets 21 months in federal prison, must pay $198,000 in restitution
Public Health Trust: Mgr. Burgess says, “Yes there is a [solution] for PHT & Trust should forget about any more money says BCC Chair Martinez
City of Miami: Crapp taps veteran FBI SAC Phillip to review Miami Chief Exposito and department, with 1,100 sworn officers
City of Hialeah: Nine local residents charged in $12 million bank fraud scheme
City of Miami Beach: Local developers sentenced for tax fraud – Father, Son concealed more than $150 million in assets, failed to report $49 million in income
Coral Gables: Commissioner Anderson says recent zoning variance approval in Hammocks travesty for “tight-knit community”
Community Events: February 17 – Urban Environment League Community Dinner Forum – Location: Rusty Pelican -Topic: From The County Recall Election to Modern Art: A Conversation with Civic Activist and Philanthropist Martin Margulies — National Association of Women Lawyers 2011 Mid-Year Meeting: Leadership for the New Decade – February 16-17, 2011 Epic Hotel Miami, Florida
— 2011 Beneath the Waves Film Festival: Call for Submissions – Submit your environmental film now! Films must relate to or focus on marine or freshwater systems or subjects – from documentaries to interesting…
Editorials: Two different problems but U.S. Reps. Rivera & Wilson need to clear the air
Letters: Listener on my comments on WLRN/ NPR about PHT CEO salary
Sponsors – Publisher’s mission statement & Subscription information is at the bottom of this issue
>>> Just because you do not take an interest in politics does not mean politics will not take an interest in you. –Pericles (430 B.C.)
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>> The Watchdog Report publisher would like to thank the John S. and James L. Knight Foundation www.knightfoundation.org for funding the University of Miami’s Knight Center of International Media http://knight.miami.edu within the University’s School of Communication www.miami.edu to financially support and maintain my webpage.
>>> If you think it is important to have someone watching your public institutions consider becoming a supporter or sponsor. For there is no trust fund and I do have to live. I almost did not write this week because of my financial condition. And while I as so many others are facing tough times. I hope you or your organization will consider helping in a small or larger way and help keep another voice on line and in the media. A convenient form is at the bottom of this week’s Watchdog Report with all the instructions on how to support this newsletter and news service that will start its
12th Anniversary on May 5.
>>> I was on Topical Currents WLRN/NPR 91.3 FM on Jan. 31 at 1:00 to 1:30 p.m. hosted by Joseph Cooper and to listen to the program: http://www.wlrn.org/radio/programs/topical-currents/archive/
>>> CORRECTION: The Miami-Dade County homeless count recently done found around 780 people were living on the streets not the 880 people reported in last week’s WDR that was quoting Trust Chair Ron Book, and there were 21 CMS surveyors at the Public Health Trust, not the 27 people as was reported.
>>> There will be no Watchdog Report next week since I have to raise money. If you think it is important to have an alternative news source consider becoming a sponsor or supporter. The convenient support form is at the bottom of the report or on line at www.watchdogreport.net
ARGUS REPORT – Heard, Seen on the Street
>>> Former Sen. Martinez says Sen. Rubio’s “head screwed on straight,” and solution to nation’s debt “not rocket science”
Former U.S. Sen. Mel Martinez, R-FL was the keynote speaker at the Greater Miami Chamber of Commerce monthly luncheon Wednesday at Jungle Island and he was frank in his remarks and glad to be out of the political game. Martinez, an Operation Pedro Pan boy who arrived in Miami at 15 from Cuba eventually with his family settled in Orlando and later became its mayor. With the election of President George W. Bush in 2000, his political trajectory took a sharp rise when he was appointed as U.S. Secretary of HUD, and then in 2004 was recruited by top national Republicans to run for the U.S. Senate seat being vacated by Sen. Bob Graham, D-FL. He had a tough Republican Primary against Bill McCollum but prevailed after blistering attack ads and went on to beat his rival Democrat Betty Caster, a former education commissioner in the general election by around 70,000 votes in a tight race back then where Miami-Dade voters went strongly for the Cuban American.
Martinez, the first Cuban American in the Senate went on to Chair the National Republican Party from 2006 to 2007 when the party was concerned about the waning support with Hispanic voters and he was championing immigration reform that caused a stir with more conservative Republicans back then. He resigned from the nation’s most exclusive club in August 2009 and Gov. Charlie Crist (Net worth $ 461,000) appointed his former chief of staff and campaign manager George LeMieux to fill the vacant seat for the next 18 months. Martinez, an attorney educated at Florida State University is currently a senior executive with JP Morgan Chase &Co. and in his early remarks gave a plug for the banking and financial firm with 15,000 employees in the state.
Martinez said what occurred in November was a “change election” and something surprising coming off such a “big wave election” in 2008 and that quick change was most “dramatically” seen with the election of U.S. Sen. Marco Rubio, R-FL (Net worth $8,351). He said Rubio, once a long shot to win is settling in Washington saying, “He wants to hear advice and listens” very well, and his “head is screwed on straight” and that is refreshing to see, Martinez thought. The attorney said the big issue that still has to be addressed and is the “800 lb gorilla in the room” is the nation’s debt ceiling, that in the coming weeks will have to be raised. He said, “There will be a serious fight” on this subject that as of Feb. 6 was $14.10 trillion and “let’s see if that includes serious spending cuts” and he believes this global financial obligation has to be addressed. But I “don’t think shutting down government is a smart thing to do,” he also said. Martinez said the increased spending started during the Bush years “substantially” but the last two years has seen borrowing increased “dramatically” and that rate of spending is unsustainable. The former Senator said when it came to the nation’s over $14 trillion debt the Republicans and Democrats have to “hold hands and jump into the deep end of the pool” to resolve this tough financial challenge because finding a “solution” for the debt is “not rocket science,” and has to be done.
What about the 2012 Presidential election & foreign affairs?
Martinez believes the candidates in the Nov. 2012 presidential election will be judged “a lot more on foreign policy” because it is a “dangerous and complicated world and foreign policy will be debated much more in this election,” he thought. He said the nation has to contain “rogue states like Iran, Venezuela and North Korea” because these nations are “huge wild cards” in regard to global stability and when it comes to Cuba and Fidel Castro. “[I know] one day Fidel [Castro] is going to die” and says the dictator is “not eternal” and he suggested the images of people in the streets of Cairo may be “filtering into Cuba,” and this revolution of Democracy is “not limited to the Arab world,” he said at the end of his speech.
What did Martinez criticize South Florida leaders about when he was with HUD?
Martinez after being confirmed as the 12th Secretary of HUD was in Coconut Grove back then at a meeting being held at the Ritz-Carleton with local elected leaders including then Miami-Dade Mayor Alex Penelas and state legislators. The Watchdog Report was there and reported on what he said back then and he actually almost got angry in his remarks. He asked the assembled group “How often do you get a Pedro Pan as secretary of HUD and I am trying to give out hundreds of millions [in community benefit dollars across a broad spectrum of services including homeless programs], will you at least apply?” he asked the leaders. I followed up a year later on this theme with Martinez and he said at the time “yes” the community was getting better at applying for the federal funding, but his comments at the time were what put a fire under the process.
>>> PAST WDR: Political and financial turbulence hit U.S. Reps. Rivera & Wilson, just sworn into Congress, but questions remain unanswered
U.S. Reps David Rivera, R-Miami and Fredericka Wilson, D-Miami were sworn into office last week but the GOB rising star is being pounded in The Miami Herald www.miamiherald.com for his personal finances and his mother and godmother’s role with getting local gaming passed back in 2008. Rivera (net worth $301,000), says he will once again amend his required financial disclosure forms to reflect a sale of a condominium to Millennium Marketing that he says was to repay a ‘$132,000 in undisclosed loans’ owed the company run by the two women state’s the paper, and he has filed a new financial disclosure for the Congress months earlier than required but has not made the documents public, and these forms won’t become public since it is not required for months. His spokeswoman is quoted in the paper saying Rivera filed early ‘in order to dispel any speculation surrounding his personal finances.’
Rivera, the past chair of the Miami-Dade Republican Party all through his congressional campaign was dogged with financial issues and how he made his money and he was only reporting his around $30,000 salary as a legislator as his only income during many years. Further, he has now become an issue with new Republican House Majority Leader Eric Cantor; from Virginia who is instituting a ‘zero tolerance’ ethics policy when it comes to wayward congressional representatives but when asked last week after the swearing-in ceremony. The paper reports Cantor would not make any comment, but the Miami-Dade state attorney is looking at the matter and the high-ranking federal lawmaker may find this will not go away.
Wilson, as has been reported in past Watchdog Reports www.watchdogreport.net over the past decade had a normal progression of a increasing net worth from 2001 to 2007 but in 2008 and 09 her financial disclosures are almost identical. She lists no rental income despite multiple properties including a duplex sold over the summer, and her listed value for the properties is at the peak of the real estate boom that has many properties in South Florida losing close to 50 percent of their value over the past three years. Next week the Watchdog Report will be contacting her congressional office and ask for an explanation about the lack of rental income, and the property values listed, that if adjusted would likely drastically reduce her listed $405,000 net worth for 2009.
>>> Rivera & Wilson update
At a second swearing in on Monday with the rest of the South Florida Congressional delegation, the Watchdog Report approached Wilson after the event while she was getting photos taken with supporters and friends. However, I did not want to rain on her parade so I gave her a miss, but she has a simple solution, with little downside. If she just updates her financial disclosure forms to reflect the past two years economic downturn in her assets and amends these required financial disclosure reports on file with the state Ethics Commission, for I will continue to dog this issue until there is a resolution to this financial discrepancy.
 Wilson |
 Rivera |
>>> Further, Rivera opened his new district office Saturday Feb. 5, and Jim DeFede an investigative reporter with www.cbsmiami.com reports the young congressman would not be talking to the press outside of the opening ceremony of the office. To see the story go to Rivera Opens New District Office, Dodges Reporters As investigators continue to cull through his financial records, Congressman David Rivera tried to maintain a normal approach to governing, opening a new district office Saturday. The office is located at 12851 SW 42nd Street.
>>> Further, investigative reporters Scott Hiaasen and Patricia Mazzei in today’s www.miamiherald.com have done a story on how Miami-Dade Republican Party funds were spent, the lack of documentation on some media buys, and since Rivera was chairman of the local party the prior two years. It becomes another issue the new congressman has to deal with that includes a criminal investigation, though party minutes in this case indicate he recused himself when it came to the vote to use Communication Solutions, a Coral Gables firm run by Esther Nuhfer. Rivera is said to have multiple lawyers engaged in his defense now but this constant drip of negative information is driving away supporters and may now start to embroil state Rep. Eric Fresen, R-Miami in the matter since he followed in Rivera’s shoes as the local party chair. The state legislator says it is a new day when it comes to documentation for expenditures and he should not be judged by any past missteps, Fresen says in the story. Further, Nuhfer did not respond to repeated e-mails and requests for comment from the general circulation daily.
>>> Press release Saturday: U.S. Rep. Ileana Ros-Lehtinen (R-FL), Chairman of the House Foreign Affairs Committee, released the following message today to the Egyptian people and all those in the Arab world living under authoritarian rule: “As a political refugee from a repressive regime, I know what you are feeling. And I assure you that your cries do not fall on deaf ears. “President Obama, in his inaugural address, referred to the need for repressive leaders to unclench their fists. I couldn’t agree more. “In that vein, and in the spirit of President Ronald Reagan, I ask Mr. Mubarak: Mr. Mubarak, unclench your fist. For the welfare of your nation, demonstrate how much you care for the Egyptian people, and unclench your fist.
“Our bilateral relationship with Egypt is not with just one man. It is with the nation and people of Egypt. “Some of us have had the privilege throughout the years to work with representatives of notable secular moderate Egyptian dissidents imprisoned for peacefully seeking a role in their nation’s political future. We stand ready to work with freedom-loving Egyptians who renounce violence, are committed to democratic governance, will live up to Egypt’s treaty obligations, and respect the security and sovereignty of all Egypt’s neighbors.”
>>> Press release: Kristen Brengel, Director, Legislative and Government Affairs, National Parks Conservation Association Disappointed by Administration’s Decision Not to Protect Lands within Big Cypress National Preserve
Background: Big Cypress National Preserve is a unique treasure within the National Park System. Big Cypress was created to preserve the natural beauty of a cypress swamp connected to the greater Everglades ecosystem and provide some access for hunting. The Addition Lands, protected in 1989, are nearly 150,000 acres of primary habitat for endangered species such as the Florida panther.
“The National Parks Conservation Association (NPCA) is disappointed by the plan released today by the National Park Service, which undermines the protection of the unique resources of Big Cypress. The Park Service has chosen to open wilderness lands and Florida panther habitat to intensive motorized off-road vehicle use. For decades, these lands within Big Cypress National Preserve have been protected for the public to enjoy as a natural area–to hike and view wildlife among other activities. Now, a final decision has been made to carve 130 miles of new off-road vehicle trails through this Florida panther habitat.” “This decision fails to uphold the conservation mission of the National Park Service. The plan casts aside laws and policies designed to preserve the natural beauty of the cypress swamp, and protect habitat for several endangered species such as the ghost orchid and Florida panther from an intrusive racetrack of trails and roadways.” “Big Cypress National Preserve is a unique treasure for all Americans and was created to preserve and protect sensitive lands as well as to accommodate some access for hunting. The plan fails to protect this area as required.”
>>> Publisher Thornburg says sayonara to Miami New Times, goes to Dallas
Kevin Thornburg, the past publisher of www.miaminewtimes.com has moved on and is now with the Dallas Observer, said his father Frederick Thornburg at a Miami-Dade School Board audit committee last week. He has yet to be replaced and in the weekly paper, there is no publisher listed currently.
>>> ZOGBY Poll: Egyptians Disappointed with President Obama, Dislike US Policies
The Egyptian people aren’t thinking about the U.S. as they take to the streets against the rule of Hosni Mubarak, but they will certainly judge how we have dealt with their insurrection. Based on our polling done there last summer, we do know that Egyptians are disappointed with President Barack Obama and have a decidedly negative view of U.S. policy in the Middle East, wrote John Zogby on his blog. Please read the entire post at www.zogby.com
>>> All photos in the Watchdog Report are taken from public government sites, and the Report goes on line at www.watchdogreport.net on Monday sometime during the day usually. >>> If you believe it is important to have someone watching your public institutions consider supporting the Watchdog Report for I am a low cost news service yet I do have to live, thank you! Further, I have been honored over the years by being named a WFOR-4 Hometown Hero in 2000, being profiled in a major way by The Miami New Times, The Miami Herald, and the Orlando Sentinel which ran as a nationwide story on me in the Tribune papers on Jan. 2003 and UNC Chapel Hill naming me one of the top columnists in Florida in a multi-state study of the media back in 2004. I also thank Joseph Cooper for the opportunity to be on the WLRN/NPR showTopical Currents on www.wlrn.org since 2000, including yearly election coverage since then, and also numerous times over the past decade.
FLORIDA
>>> Will Gov. Scotts austere FL budget stay intact during upcoming legislative session, wants pension reform, business enticements, and tax cuts?
Gov. Rick Scott (Net worth $218 million) is going his own way Monday when he will unveil his new state budget this week in Eustis Florida rather than in Tallahassee in his attempt to break out of the capital bubble and his call for state workers to participate in their pension plan is resonating with some voters around Florida. Scott is looking at every opportunity to save dollars given the state’s minimum almost $4 billion short $70.4 billion state budget for the coming year that has federal stimulus dollars drying up that had been used in the past to fill funding shortfalls. The former healthcare executive has passed on getting a $125,000 governors salary and travels around the state on his own jet, and has not only FDLE security, but also his own private security when he attends public events around the state.
Last week he withdrew dozens of appointments to state boards and commissions made by former Gov. Charlie Crist though by the end of the week he had reappointed some back, including new members of the Public Service Commission. Scott has surprised and disappointed many state residents just getting to know him since his narrow election winning by only 62,000 votes and how he is planning to implement policy and programs trying to reign in state government and expenses. Below are a few press releases from last week and these give one a real flavor where the new governor thinks Florida should be headed in the coming years.
>>> Press release: Governor Rick Scott today announced the reappointments of Eduardo Balbis, Ronald Brisé, Julie Brown and Arthur Graham to the Florida Public Service Commission.
Eduardo E. Balbis, 38, of West Palm Beach, is reappointed for a term beginning February 4, 2011, and ending January 1, 2015.
Ronald A. Brisé, 36, of North Miami, is reappointed for a term beginning February 4, 2011, and ending January 1, 2014.
Julie I. Brown, 35, of Tampa, is reappointed for a term beginning February 4, 2011, and ending January 1, 2015.
Arthur L. Graham, 46, of Jacksonville Beach, is reappointed for a term beginning February 4, 2011, and ending January 1, 2014. >>> The appointments are subject to confirmation by the Florida Senate.
>>> Press release: Governor Scott named Carl Littlefield to serve as his Director of the Agency for Persons with Disabilities. Littlefield, a former state representative, is currently an area administrator for the agency, where he helps oversee the agency’s vital mission of supporting people with developmental disabilities. The Governor also announced Bryan Vaughan as Chief of Staff to the agency. Vaughan is currently the Executive Director of the Governor’s Commission on Disabilities, where he oversees the commission’s goals to serve as an advocate and voice for Floridians with disabilities. Littlefield has a long history of public service to Florida. Previously, he served as the Assistant Secretary of Developmental Disabilities at the Department of Children & Families and as a Deputy Secretary at the Department of Elder Affairs. He served as Florida’s First Chairperson of the Health and Family Services Council, where he coordinated all state policy in the Florida House of Representatives relating to healthcare services, healthcare standards and long-term care. He has served as a member of the Florida Developmental Disabilities Council, the State Advisory Committee for the Education of Exceptional Students, the Florida Public Health Foundation, and as Florida’s Representative to the President’s Council on Mental Retardation.
Vaughan has been a tireless advocate for individuals with disabilities in Florida. He was a decorated law enforcement officer when he was diagnosed with Multiple Sclerosis, became a wheelchair-user, and was determined legally blind. Since then, Vaughan has worked with a variety of ex-felons and individuals with physical, mental, and emotional conditions to help them overcome barriers to employment, independence, and inclusion. As a recipient as well as a provider of services, Vaughan has a unique perspective of the various difficulties faced by people with disabilities. He was awarded the Public Employee of the Year, Able Trust’s Ability Award in 2010 for his work as an advocate for the disabled. He was awarded the Outstanding Achiever Award by the Georgia Association of Rehabilitation Facilities for developing Georgia’s Ex-Offender Employment Program, which assists released felons in securing permanent employment. “I am honored to be naming these two qualified individuals to lead the Agency for Persons with Disabilities. Carl has a long history of public service to Floridians with disabilities, and his experiences as a state legislator and agency executive will serve APD well. Bryan is a living example that a person with disabilities can excel, and he will be an inspirational and vocal advocate,” Governor Scott said.
>>> Press release: Gov. Scott Calls on President Obama to Join Florida in Reducing Taxes
Claiming that the tax burden placed on Floridians is hindering economic expansion and job growth, Governor Rick Scott called on President Obama and the federal government to join Florida in reducing taxes as he continued rolling out his budget proposals in Tampa today. Governor Scott said current property taxes, the state business income tax, and the numerous taxes used to pay for the recently-ruled unconstitutional ObamaCare law are keeping Florida from becoming the number-one state in the country for job creation. The Governor said he would send a balanced budget proposal to the Legislature that streamlines government, slashes wasteful spending and reduces the state’s tax burden. Governor Scott then called on President Obama and the federal government to do the same by repealing new taxes that were enacted to pay for ObamaCare that was ruled unconstitutional on Monday. Governor Scott’s budget proposal would reduce the state business income tax from 5.5 percent to 3 percent in the first year and completely phase it out by 2018. His proposal would also reduce property taxes by over $1 billion.
“Here in Florida, we are doing what it takes to reduce costly taxes, and today I call on President Obama and the federal government to do the same by immediately repealing the tax increases that were passed to pay for ObamaCare,” said Governor Scott. Scott said his proposed tax cuts make sense because government must get back to its core functions. “Whether it’s property taxes, the business income tax, or President Obama’s taxes, it’s time to relieve the financial burden on Floridians and make sure we are not wasting taxpayer dollars,” said Governor Scott. >> Scott said he will formally announce his complete budget proposal on Monday, February 7th and said it would represent the pledges he made to reduce spending and taxes during the campaign.
MIAMI-DADE COUNTY
>>> Court challenges fly in recall of Mayor Alvarez & Commissioner Seijas, process bogus says mayor – Seijas deposition now public
With legal motions flying in local circuit courts, Commissioner Natacha Seijas (Net worth $617,000) bolting from a deposition because a reporter was there last week www.miamiherald.com , how much more political theater can Miami-Dade residents absorb in the coming weeks leading up to the March 15 vote, asking voters if Seijas and Mayor Carlos Alvarez (Net worth $1.74 million) should be recalled from their elected positions. Seijas and her attorney objected to the press observer during a scheduled deposition last Thursday but Circuit Court Judge Amy Steele Donner (Net worth $5.79 million) Friday ruled that the press could attend and that it was similar to a commission meeting since the issue was political in nature, not something involving national security.
Further, Alvarez fired another legal salvo of his own questioning the validity of some of the 113,000 petition signatures gathered by auto magnate Norman Braman, a billionaire who financed the recall effort and hired a professional firm to get the required signatures. These petitions after an examination since have been certified by County Clerk of Courts Harvey Ruvin (Net worth $1.38 million) and he is sticking to his conclusion states www.miamiherald.com. The mayor’s effort to block the March 15 recall election is based on the paying of people to get the signatures and believes that is against state election law. However, Braman in the paper disagreed with the maneuver and his attorney’s are backing him up since they are said to have thoroughly researched the issue. In this second lawsuit brought by the mayor, the Miami-Dade Circuit Court Judge is Betty Butchko (Net worth $779,000) and now she is in the whirlwind of these political events that has the clock ticking with early voting starting at the end of the month.
>>> Mayor Alvarez press release on Friday: As the people of Miami-Dade County know all too well, there is nothing more sacred in our democracy than a fair and honest electoral process. Unfortunately, in recent weeks, that process has been called into question in the form of countless reports of a flawed, paid signature-gathering effort that cut too many corners and may have violated the law. This process must be bigger than any individual or individuals. Election laws are in place to protect the voice of the people, and we cannot allow them to be compromised. We must send a message that our process is not for sale. That is why I have asked the courts to step in and ensure the integrity of the process.
 Alvarez |
 Seijas |
>>> GMCVB Press release: DEMAND FOR TRAVEL TO GREATER MIAMI AND THE BEACHES REMAINS STRONG—GREATER MIAMI’S TOURIST-RELATED TAX COLLECTIONS INCREASE IN DECEMBER 2010
December 2010 Food and Beverage tax collections from hotels in Miami-Dade (excluding Miami Beach, Bal Harbour and Surfside) generated $562,647 compared to $427,024 in 2009, an increase of +31.8%. The Miami-Dade Resort tax collections (excluding Miami Beach, Bal Harbour and Surfside) for December 2010 totaled $1.7 million compared to $1.3 million in 2009 for an increase of +27.3%. December 2010 Convention Development Tax (CDT) collections for Greater Miami and the Beaches of $4.8 million compared to $4.1 million for the same period last year represented an +18.3% increase.
| GREATER MIAMI FOOD and BEVERAGE TAX COLLECTIONS |
| December 2010 December 2009 % Change |
| $562,647 $427,024 +31.8% |
| GREATER MIAMI RESORT TAX COLLECTIONS |
| December 2010 December 2009 % Change |
| $1,727,090 $1,356,282 +27.3% |
| GREATER MIAMI CONVENTION DEVELOPMENT TAX COLLECTIONS |
| December 2010 December 2009 % Change |
| $4,803,062 $4,058,697 +18.3% |
BROWARD COUNTY
>>> Commissioner Lieberman being absent for months creates commission dilemma, she must explain when coming back
Broward County Commissioner Ilene Lieberman (Net worth $1.13 million) has been absent for an extended time on the commission dais (though she has called in a couple of times) and it is starting to cause some controversy regarding who is representing her constituents in District 1 interests on the commission. The issue was recently brought up by the only Republican on the body Commissioner Chip LaMarca, who represents District 4, but his attempts to discuss the matter was shot down by the other seven commissioners all Democrats like Lieberman.
However, it highlights a flaw in the county charter in Broward and Miami-Dade where a commissioner’s absence has no penalty, could extend months and months, and should be something civic leaders in the state’s second most populous county review in a future Charter Review. Lieberman has said little on the subject and she may be ill or dealing with some other family issue, but she needs to tell her constituents the truth, and give some inkling of when she might return. For the issue is getting to much press to ignore. Local award winning investigative reporter Bob Norman has been on the story and he gives some insight on what is going on with the veteran commissioner. But given all the arrests and prosecutions of politicians in Broward one has to wonder why she has not gotten ahead of this issue, and is resulting in the non-representation of her district’s voters in the body. Lieberman is a 20-year politician and knows the ropes, she should act like it and tell her residents what gives and when she will be back. For more on the issue go to http://blogs.browardpalmbeach.com/pulp/
 Lieberman |
 LaMarca |
>>> BROWARD MAN CHARGED FOR IMPERSONATING FBI AGENT AND POSSESSING FEDERAL BADGES AND IDENTIFICATION
Press release: Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and John V. Gillies, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced today’s indictment of defendant Daniel F. Cleary, 48, of Weston, Florida. More specifically, the 34-count indictment charges Clearly with two counts of impersonating an FBI Special Agent and 32 counts of possession of federal agency badges and credentials, in violation of Title 18, United States Code, Sections 912 and 701. If convicted, Cleary faces up to 3 years’ imprisonment on each count of impersonation and 6 months’ imprisonment on each count of possession of federal agency badges and credentials. If anyone has any information on the case, they are urged to contact the FBI at 305-944-9101. >>> Mr. Ferrer thanked the FBI and the Broward County Sheriff’s Office for their work on this investigation. The case is being prosecuted by Assistant U.S. Attorney Thomas Lanigan. An Indictment is only an accusation, and defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt. A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
>>> Press release: Gov. Scott today announced the reappointment of Torey Alston of Fort Lauderdale to the Board of Trustees, Florida A&M University.
Torey L. Alston, 26, is the chief of staff for Broward County Commissioner Barbara Sharief and is reappointed for a term beginning February 4, 2011, and ending January 6, 2015. The appointment is subject to confirmation by the Florida Senate.
>>> Thank you for using the Broward County Commission Agenda E-mail Notification System. A new Broward County Commission Agenda is available. Point your browser to http://www.broward.org/commission/welcome.htm to view the new agenda.
PALM BEACH COUNTY
>>> Local resident pleads guilty to cramming scheme
Press release: Steven Tamayo, of West Palm Beach, Florida, has pled guilty to participating in a cramming scheme. Cramming involves placing fraudulent charges on consumers’ telephone bills. The Justice Department and the United States Postal Inspector’s Miami Field Office announced the guilty plea today. In pleading guilty, Tamayo admitted that from December 2009 to May 2010, he and others billed consumers through a Florida company called Text-Savings, Inc. Text -Savings purported to offer a service that, for a fee, would send a message to consumers’ cell phones with information about local restaurants and stores. Tamayo held himself out as the Chief Executive Officer, owner, and President of Text-Savings, Inc. In reality, Text-Savings billed thousands of consumers for services that consumers neither ordered nor received. Unknown to consumers and regulators, Tamayo was serving as a front man for Willoughby Farr, an individual who had been sued by the Federal Trade Commission for cramming and who, during part of Text-Savings’ existence, was under indictment and in jail on federal fraud charges stemming from another cramming scheme. Tamayo helped Farr operate Text-Savings by serving as the point of contact for the firms’ billing practices, and for regulatory cramming complaints. Tamayo took direction from Farr on how to operate the business and how to respond to respond to consumer complaints.
Because Farr was in jail at times during Text-Savings’ existence, Tamayo played an essential role as Farr’s operator beyond his jail cell. Farr was later sentenced to 21 years’ imprisonment for perpetrating a long-running cramming scheme from his West Palm Beach, Florida, jail cell. Tamayo is scheduled to be sentenced for conspiracy to commit mail fraud on April 15, 2011. The conspiracy charge carries a maximum statutory term of 5 years in prison, a possible fine, and restitution. Text-Savings charges appeared on selected AT&T, Verizon, and Qwest telephone bills from December 2009 through May 2010. Consumers are encouraged to review their bills for those months to determine whether they were victimized by the scheme. Text-Savings charges typically stated: “TEXTSAVINGS,LLC-INET DIR LSTNG W/TEXT.” Charges were typically in small amounts — approximately $10 — so as to avoid notice by consumers. A consumer who finds a false bill for Text-Savings may contact the U.S. Attorney’s Office for the Southern District of Florida, victim/witness unit to learn about their rights as crime victims. The U.S. Attorney’s Office, victim/witness unit may be contacted at the following website http://www.justice.gov/usao/fls/VictimWitness.html. >> A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
BAY COUNTY
>>> Gov. Scott taps Patronis again as trustee at community college
Governor Rick Scott today announced the reappointment of Katie Patronis of Panama City to the District Board of Trustees, Gulf Coast Community College. Katie L. Patronis, 33, is a real estate broker with Century 21 Ryan Realty and is reappointed for a term beginning February 4, 2011, and ending May 31, 2014. The appointment is subject to confirmation by the Florida Senate.
HOLMES COUNTY
>>> Statement from Gov. Scott regarding today’s shooting in Holmes County
Press release: “While assisting other law enforcement officials in Holmes County today, Colonel Greg Malloy, a veteran K9 officer with more than 20 years of service in the Department of Corrections, was senselessly gunned down. Word of the tragedy came as I joined Attorney General Bondi in honoring law enforcement officials who have served above and beyond the call of duty. “This evening, Ann and I extend our thoughts and prayers to the family and loved-ones of Colonel Malloy, who has given his life in order to protect and defend the people of our great state. I hope all Floridians will join me in extending our condolences to the Malloy family for their loss, as well as our gratitude for the service of Colonel Malloy and all of those law enforcement officers who serve us every day.”
MONROE COUNTY
>>> Administration adjusts infrastructure design because nine to 24 foot projected rise in sea level over next 50 years
The Watchdog Report last week e-mailed Monroe County Administrator Roman Gastesi asking how things were going in the nation’s most southern county and is a tourist mecca to a wide swath of the globe’s peoples. The county’s population peaked at almost 100,000 back in the early 2000s but a few years of hurricanes pounding the residents changed the demographics and the tony county has now about 65,000 residents, though the 2010 Census may give a better population count. The administrator in his e-mail back wrote, “Here in Monroe County, it’s going well, many economic indictors continue to show improvement: bed, sales, gas tax revenues continue to improve and my realtor friends are busier than ever. This past week we hosted the SE Regional Climate Change Compact Steering Committee Workshop. The Compact was formed in 2009 and is comprised of four counties (Palm Beach, Broward, Miami-Dade and Monroe) for the purpose of consolidating & collaborating our knowledge & efforts regarding Climate Change.
During the workshop, we reviewed and discussed the regional greenhouse emissions inventory; the regional vulnerability mapping; began drafting the regional climate action plan, including adaptation & mitigation strategies; and most importantly, we reached consensus on which sea level rise projection to use as we progress, that being 9′ to 24′ sea level rise in the next 50 years. We’ve seen a 9′ rise in the last 100 years (confirmed via the water level gauge in Key West), so we predict that rate to at least double and therefore, must start adapting to that reality. For example, we have begun to adjust our road construction elevation criteria accordingly. Also, as we design & build storm-water infrastructure, we will adjust the criteria to acclimate for the expected sea level rise. These are real life pragmatic adaptations/examples of “think globally, act locally,” wrote Gastesi.
MIAMI-DADE PUBLIC SCHOOLS
>>> District employee after FBI & Audit Department investigation of scam gets 21 months in federal prison, must pay $198,000 in restitution
A district facilities employee and a man working for a old time school district vendor have found out crime does not pay after submitting 24 inflated invoices allowing them to net $198,307 between the two of them, but got caught after Gomez & Son Fence’s owner notified the FBI that something was up. The FBI contacted district Superintendent Alberto Carvalho and the school’s Audit Department did the investigation and the district employee Ronald Johnson has been sentenced to 21 months in prison, faces a three-year probation and must pay restitution in the “full amount,” states a January audit report on the investigation. The issue became public last week and first was flagged back in the summer of 2010. School District Chief Auditor Jose Montes de Oca in a Jan. 24 memo to the School Board Audit Committee states his office working with the FBI was able to show that “substantial fraud had been perpetuated against the District.” Further, the two men that included Jorge Molina, an employee of an official school vendor had also gotten 17 checks worth $490,000 from the district and these were deposited in a company bank account called Gomes and Sons Fence Corp., almost the exact name as the qualified vendor since 1990. Further, since the school employee had an active retirement fund with the Florida Retirement System, the school auditor notified state officials and froze Johnson’s retirement account and the district feels confident full restitution of these monies will be forth coming given his salary and time with the nation’s fourth largest school district. To read the report go to http://mca.dadeschools.net/AuditCommittee/AC_Feb_1_2011/agenda.pdf
PUBLIC HEALTH TRUST
>>> Mgr. Burgess says, “Yes there is a [solution] for PHT” & trust should forget about any more money says BCC Chair Martinez
Watching the board of county commissioners discuss what should be done Tuesday regarding Jackson Memorial Health system was like watching third-year medical students do brain surgery on an ailing patient, and it was not pretty when it came to the trust getting anymore-county money. The commission discussion started off with Manager George Burgess giving the “short version” of how he believed the beleaguered health trust could be saved, but it was “complex” and involved a wide variety of variables and different moves said the manager. When Commissioner Dennis Moss (Net worth $342,000) asked Burgess if a “solution” to Jackson’s financial problems was achievable and the health trust could be turned around and put on a steady course. The veteran county manager whose name has been tossed into the top leadership mix now that CEO Eneida Roldan, M.D. is leaving in the coming months replied, “Yes there is,” at the commission meeting where the health trust was the subject of the discussion. Burgess, a finance guru but with no hospital administration experience believed the solution was “not simple” and involved a variety of issues and any solution had to involve all the “stakeholders and partners” of the health system, he said. The manager believed that some of “the strengths” of the institution are being under utilized and it was important to also “get more paying patients” and believes the county and PHT are “stronger together than apart,” he thought. He also suggested that when an institution is dealing with a “crisis” like this. It sometimes is an “opportunity in disguise,” he mused.
Charity patient mix 20 percent, 35 percent Medicaid and 15 percent Medicare
However, the discussion was already framed earlier by Commission Chair Joe Martinez (Net worth $245,000) who bluntly said Jackson executives or the trust board should not think they can come back “asking for more money” like had been done last year because “we don’t have it,” he emphatically said. Commissioner Carlos Gimenez (Net worth $871,000) also challenged the health system’s “lack of aggressiveness” in trying to turn the operation around. PHT CFO Mark Knight clarified the institution’s efforts regarding initiatives that are ongoing but noted that while the initial $258 million in savings and cuts for the current budget year are coming $9 million short. The institution still is on track to save $249 million of the targeted savings that include staff reductions, cutting overtime, working with the different unions and savings of products purchased. Further, Knight noted while there was a seven percent decline in patient census, that had been budgeted at three percent in patient reductions. He said the number of patients needing uncompensated charity care accounted for 20 percent of patients at the hospital system, 35 percent of the other patients were on Medicaid and about 15 percent were covered under Medicare, said Knight. The finance executive noted labor salaries account for “55 percent of Jackson’s operating budget” and getting “the 11,000 employees” right sized, with the right medical specialties for the institution is a major challenge.
Moss said he thought all the “public displays of the issues” was causing Jackson problems with paying patients coming to the institution versus going to other hospitals. Commissioner Sally Heyman (Net worth $425,000), a current PHT patient being treated for an ankle injury that occurred overseas said it was important for the Trust and administration to “accelerate what they are doing.” She noted the hospital spends around “$700 million” in supplies and contracts on a yearly basis she said. She also questioned why the system had not gone with a hospital “Purchasing Consortium” yet, and there was another way “$10 million” could come to the beleaguered system. She also challenged why a $450,000 contract for a search firm was initiated to find a new PHT president, when on that day’s county commission agenda there was an item asking for commission approval of a $1.45 million county executive search consulting firm and its services for the coming year. She said a closer watch was necessary with the money when the trust was “down to 16 to 17 days of cash” on hand and suggested the PHT board needed a “dose of reality,” since she is the new voting member on the 17-member PHT board.
What about the joint BCC/PHT board meeting?
The county commissioners and PHT board will be meeting jointly on Feb. 17 at the commission’s chambers to discuss these issues but anyone that thinks a solution is simple and Jackson’s troubles are easily solvable is mistaken for a hospital unlike other government services has competitors. Healthcare delivery is a fast moving business and patients with health insurance can chose where they want to be treated and elected leaders must help the health trust, but not install a pair of concrete administrative shoes, if the health system is to survive and flourish in this competitive environment.
What did Heyman want from the Watchdog Report?
Heyman asked the Watchdog Report last week if I would have lunch with her and download to her what I know about Jackson since I have been covering it since 1997 and while the civic citizen in me says yes. I told her to read the past reports to see what is going on at the public hospital that goes through $4.5 million a day in cash and is giving $700 million in charity care. Further, she said the hospital employees don’t know that she is a county commissioner during her rehabilitation treatment that has given her the worse commissioner attendance record on the body www.miaminewtimes.com and suggests that PHT trustees should use the hospital for their own healthcare to experience what it is like to be a patient. However, years ago I could not get her to vote to remove under performing PHT trustee Martin Zilber, after his first three-year term where he rarely participated and was spotty on attendance, while staying on a county’s Cultural Affairs Council, even though he signed a application statement that he would resign from any Miami-Dade board that he was on when he first applied. The Watchdog Report pushed the issue when he was up for renewal a couple of years ago and he did resign finally from the cultural council. But he also got another term despite this uneven performance and Heyman when I asked about Zilber said, “You pick your fights,” last week. And if that is what she considers a fight after being reelected unopposed. I cannot eat a meal with her.
 Martinez |
 Heyman |
 Bell |
 Burgess |
 Gimenez |
 Moss |
>>> Consultants suggest $705,000 to $1.05 million for CEO compensation package
Consultants with Integrated Healthcare Strategies, a Kansas City Firm in a Feb. 1 memo to the PHT Compensation and Evaluation Committee that is meeting Monday have reviewed President and CEO compensation around the country with health systems of similar size to the PHT and the salary range recommended is $705,000 to $1.05 million states the study. Retiring CEO and President Eneida Roldan, M.D. salary was $665,000 a year and that pay grated with some county commissioners who thought it was a little to rich, given the concessions the health trust’s unions have agreed to for their own employees. This compensation committee is meeting on Monday, February 7, 2011 from 10:30 a.m. to 12 noon in the West Wing Board Room.
>>> Meeting between PHT Board Member Ernesto A. de la Fe and
Commissioner Lynda Bell ( District 8 ) – A meeting between Ernesto A. de la Fe and Commissioner Lynda Bell has been scheduled for Monday, February 7, 2011 at 9:30 a.m. in the West Wing Board Room. The purpose of the meeting is to discuss the “International Health Center”.
>>> Grand Opening of Jackson South, community residents invited to affair Feb. 12th
The Grand Opening of Jackson South Community Hospital on Sat. Feb.12th from 10:00 a.m. to 2:00 p.m. is expected to be a big event. The facility went through an over $100 million expansion and there will be activities for family and friends in South Dade expected to use the new facility. There will be tours of the new tower, the private rooms and state of the art equipment during the day. The hospital is located at 9333 SW 152nd Street, Miami and the event is free.
CITY OF MIAMI
>>> Crapp taps veteran FBI SAC Phillip to review Miami Chief Exposito and department, with 1,100 sworn officers
Miami Manager Tony Crapp, Jr., was looking for a law enforcement expert to review the Miami Police Chief Miguel Exposito file and the controversy surrounding the chief’s charges against Mayor Tomas Regalado (Net worth $5,000) and the manager named Paul Phillip as his expert on the matter. Phillip, a former Special Agent in Charge of the Miami FBI field office headed up the investigation that gathered the evidence for Operation Green Palm, a city of Miami investigation that sent a Miami city manager and commissioner to jail in the 1990s. Since then, Phillips who speaks Spanish has been at the county helping ferret out corruption under Mayor Alex Penelas and then he went with Merrett Stierheim to the school board in the early 2000s, when Stierheim a former county manager was named the school district superintendent.
>>> Press release: City of Miami Manager, Tony E. Crapp Jr. announced effective today, Friday, February 4, 2011; Mr. Johnny Martinez will be assuming the title of Deputy City Manager. In an effort to ensure management continuity, Johnny will continue to manage the public works, capital improvements, general services administration, building, zoning and planning departments as well as provide additional oversight of other departments and projects as assigned. The additional duties implied with this designation are being undertaken with no fiscal impact to the City.
>>> Commissioner Carollo family gets new baby tax payer Briana – The Carollo family is proud to announce that he, along with his wife Monica, are the proud parents of: Briana Isabella Carollo, Born February 3; Baby and parents are doing wonderful!
>>> The following e-mail was sent to (now former) Mayor Manny Diaz using his e-mail address on his extensive city web-page on Sept. 13, 2008 at 9:38 a.m. and to date there has been no answer from the mayor. It currently goes to his new e-mail address.>>> “Mayor Diaz (Net worth $1.8 million), I wanted to ask you in the chamber today but not in front of Chair Joe Sanchez. My question is where did the extra $400,000 in the 2007 disclosure form come from? I will run what ever you respond unedited but I would appreciate closing this issue, as I am sure you do. Sorry but I have to ask. Best to all. Dan” >>>> The Watchdog Report through Dec.7 has yet to get a response or catch-up with Miami Mayor Manuel Diaz on where he got the extra $400,000 in cash listed in his 2007 financial disclosure forms. To see what CBS 4 reporter David Sutta’s take on this issue and the other city leaders financial disclosures go to cbs4.com Blogs .
>>> Readers should stay tuned and catch the meeting on the city’s cable station channel 77. >>> Stream Channel 77, for all City of Miami meetings, (Commission, PAB,CIP, Code, etc. hearings) http://videos.miamigov.com/
CITY OF HIALEAH
>>> Nine local residents charged in $12 million bank fraud scheme
Press release: Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael K. Fithen, Special Agent in Charge, U.S. Secret Service, Miami Field Office, Anthony V. Mangione, Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Miami Field Office, and Miguel Exposito, Chief, City of Miami Police Department, announced the filing of seven indictments and two criminal informations, charging defendants Maria Baksh, 50, of Hollywood, Juan Cardenas, 48, of Miami, Gabriel Cifuentes, 63, of Hialeah, Maureen Cifuentes, 35, of Hialeah, Lucia Garcia, 58, of Pembroke Pines, Roberto Hernandez, 66, of Miami, Maribel Roman, 47, of Hialeah, Reinaldo Roman, Jr., 39, of Hialeah, and Roberto Rodriguez, 43, of Miami, with conspiracy to commit bank fraud in connection with a $12 million scheme. In a separate but related case, Luis Felipe Perez, 38, of Fort Lauderdale, pled guilty to conspiracy to commit bank fraud in connection with the $12 million scheme and was sentenced to ten years for this and other related crimes. In another related case, Berta Sanders, 61, of Miami Lakes, pled guilty to conspiracy to commit bank fraud in connection with this same $12 million scheme. Sanders’ sentencing is scheduled for February 22, 2011 at 9:00 am before U.S. District Judge Paul C. Huck.
According to the charging documents, from around September 2005 through September 2008, the defendants conspired to submit false loan applications to Wells Fargo Bank (formerly known as Wachovia Bank) for the purpose of obtaining approximately $12 million in commercial lines of credit. This resulted in approximately $10 million in losses to the bank. To execute the scheme, Sanders, a Certified Public Accountant, allegedly promoted herself as someone who could help borrowers obtain approval for the lines of credit by preparing their loan applications. Sanders allegedly prepared loan applications on behalf of the defendants. These loan applications contained false information about the defendants’ business income, assets, and accounts receivable. Sanders also prepared false tax returns, bank statements, and personal financial statements for the line of credit applications. The charging documents further allege that, as compensation for preparing the false loan applications that were submitted to Wachovia Bank, the defendants paid Sanders a fee of approximately 10% of the loan amount. Perez, who pled guilty to the previously charged $40 million securities fraud Ponzi scheme, is alleged to have recruited many of the defendants and referred them to Sanders for assistance in applying for the commercial lines of credit. Perez induced many of these individuals to obtain the fraud-based loans in order to invest the proceeds into his Ponzi scheme. When Perez’s Ponzi scheme ultimately collapsed in May 2009, most of the fraudulent loans obtained from Wachovia defaulted. >>> Mr. Ferrer commended the investigative efforts of the U.S. Secret Service, ICE’s Homeland Security Investigations in Miami, and the City of Miami Police Department. The case is being prosecuted by Assistant U.S. Attorneys Roger Cruz and Richard Gregorie.
This law enforcement action is sponsored by the Financial Fraud Enforcement Task Force. The interagency Financial Fraud Enforcement Task Force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. An Indictment or Information is only an accusation, and defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt. A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
CITY OF MIAMI BEACH
>>> Local developers sentenced for tax fraud – Father, Son Concealed More than $150 Million in Assets; Failed to Report $49 Million in Income
Mauricio Cohen Assor, 77, and his son, Leon Cohen-Levy, 46, each with residences in Miami Beach, Fla., were sentenced today after having been convicted of conspiring to defraud the United States and filing false tax returns. U.S. District Judge William J. Zloch sentenced both Mauricio Cohen Assor and his son, Leon Cohen-Levy, to 120 months’ imprisonment. Cohen Assor was ordered to pay restitution in the amount of $9,379,849 and Cohen-Levy was ordered to pay $7,761,959 in restitution. Both defendants have been detained since their arrest on April 15, 2010. After a month-long trial, a Fort Lauderdale federal jury found the two guilty of conspiring to defraud the United States and filing false tax returns. According to court records, the father and son concealed more than $150 million in assets, including Miami Beach mansions, yachts, luxury automobiles, and bank accounts containing tens of millions of dollars. The defendants also failed to report more than $49 million in income to the Internal Revenue Service.
U.S. Attorney Wifredo A. Ferrer stated, “American taxpayers who seek anonymity and shelter behind foreign bank accounts in tax haven jurisdictions are simply running out of places to hide. Those who evade their income tax obligations will be found and will be held accountable for their actions.” “Honest taxpayers who will soon be filing their tax returns should be comforted by the outcome of this case because it shows that no one is above our nation’s tax laws,” said John A. DiCicco, Acting Assistant Attorney General for the Justice Department’s Tax Division. “The Justice Department will aggressively prosecute anyone who tries to cheat our country by hiding assets or income outside its borders.” “As the defendants in this case have learned, hiding income and assets offshore is not tax planning; it’s tax fraud,” said Victor Song, Chief, IRS Criminal Investigation. “The IRS is vigorously pursuing unreported income in hidden offshore accounts. We urge citizens to consider whether tax fraud is worth the price of going to jail. The smart choice is to use the IRS voluntary disclosure program to get right with the U.S. government.” According to court documents and trial testimony, the two men and their co-conspirators used nominees and shell companies formed in tax haven jurisdictions, including the Bahamas, the British Virgin Islands, Panama, Liechtenstein and Switzerland, to conceal their assets and income from the IRS.
To further conceal their assets and income from the IRS, the defendants also provided false documents to banks, opened bank accounts in the names of nominees, titled their personal residences and luxury vehicles in the name of shell companies, filed false and fraudulent tax returns, failed to file other tax returns, suborned perjury in a civil matter pending before the New York Supreme Court by directing individuals to testify falsely under oath, and induced other individuals to make false statements to federal law enforcement agents. Among the nominees used by the defendants were their personal secretary and their limousine driver. According to court documents and trial testimony, Mauricio Cohen Assor and Leon Cohen-Levy were the developers and owners of several residential hotels known by the trade name Flatotel International. Flatotel had locations in France, Spain, Brussels, and New York City. In 2000, the defendants sold their New York hotel and generated proceeds of $33 million. The defendants directed that the sale proceeds be transferred to a bank account at HSBC in Switzerland that was opened in the name of a Panamanian bearer share company. The income earned from the sale of the hotel was never reported on United States tax returns by the Cohens or by any of their related entities.
According to court documents and trial testimony, among the assets and income the Cohens concealed from the IRS were a $45 million investment portfolio, a condominium at Trump World Tower in New York City that was worth as much as $10 million, the personal residence of Mauricio Cohen Assor on Fisher Island in Miami Beach worth approximately $20 million, the personal residence of defendant Leon Cohen Levy in Miami Beach worth approximately $26 million, the personal residence of the daughter of Mauricio Cohen Assor in Bal Harbor, Fla., commercial properties valued in excess of $55 million in Miami Beach, luxury vehicles, including a Rolls Royce Phantom, a Porsche Carrera GT, a Bentley, a Ferrari Testarossa, a BMW Z8, a Dodge Viper, a limousine and a $1.2 million helicopter.More information about the Justice Department’s Tax Division and its enforcement efforts is available at www.usdoj.gov/tax/.
>>> Tuesday Morning Breakfast Club Meeting Date: Tuesday, February 8th, 2011 – Meeting Time: 8:30 AM -Meeting Place: David’s Café, 1654 Meridian Ave., South Beach
It’s no joke! Comedian Steve Berke is running for Mayor of Miami Beach and will be the guest speaker at the February 8th meeting of the Tuesday Morning Breakfast Club. Steve, a resident of Miami Beach and a Yale graduate, is a young stand-up comedian who intends to campaign with humor utilizing You Tube and other social networking sites to reach a larger and younger audience of voters. Join us as we enter what might be a new era of campaigning. There is no charge and everyone is welcome to attend. David Kelsey, Moderator for the Breakfast Club – For more information contact David Kelsey. To be placed on the Breakfast Club’s mailing list, contact Harry Cherry. Both can be reached at TuesdayMorningBreakfastClub@Yahoo.com
CITY OF CORAL GABLES
>>> Commissioner Anderson says zoning variance approval travesty for “tight-knit community”
After last week’s Watchdog Report story on all the land use attorneys attending a zoning variance request in front of the commission. Commissioner Maria Anderson sent the following e-mail giving her side of why she voted no on the request. “This variance creates a great inequity in the rest of the neighborhood; the great majority in this once tight-knit community did not know this was happening. The variance was a 100% increase in FAR over the site-specific zoning for Hammock Lakes. It barely met one of the conditions of hardships — you need six. Wow, now another Mac-Mansion! I thought we’d created an ordinance to control the size of homes? Sad day!” wrote the veteran commissioner elected in 2001.
>>> Ponce Business Lunch: UM President Donna Shalala – On Monday, February 7 The Ponce Business Association welcomes special guest speaker Donna Shalala to it’s weekly lunch meeting at JohnMartin’s Restaurant, 253 Miracle Mile at noon.
Ms. Shalala became President of the University in June 2001. Under her tenure the University has solidified its position among the top research Universities in the country and recently made an unprecedented 16 point climb in U.S. News and World Report’s America’s Best Colleges. She has more than 25 years experience as a scholar, teacher and administrator. Among her many accomplishments, Donna was one of the country’s first Peace Corp volunteers, serving in Iran from 1962 to 1964. She has served as President of Hunter College of the City University of New York and was Chancellor of the University of Wisconsin-Madison. President Shalala also was the longest serving U.S. Secretary of Health and Human Services appointed by President Clinton from 1993 to 2001. Donna received her Ph. D from the Maxwell School of Citizenship and Public Affairs at Syracuse University. RSVP to poncebusiness@gmail.com
COMMUNITY EVENTS
>>> Press release: February 17 – Urban Environment League Community Dinner Forum – Location: Rusty Pelican -Topic: From The County Recall Election to Modern Art: A Conversation with Civic Activist and Philanthropist Martin Margulies -6 p- 6:30 social time (cash bar) – 6:30-7:30 Delicious 3 Course Dinner: (Cost: $25/$20 student) 7:30 – Program (The program only is free and open to the public) >> Martin Margulies has been a successful builder who developed Grove Isle among other unique projects. He followed his passion for Modern Art and started the extraordinary Margulies Collection Museum located in Miami. (We will see a series of images from his collection.) His concern for the quality of life in Miami developed into several substantial philanthropic gifts to the residents. He has also become an outspoken advocate against the public funding for museums in Bicentennial Park as well as the Marlins stadium. Margulies is now supporting the Mayor Alvarez recall and efforts to stop state funding for the Dolphins (Sunlife) Stadium. He will be questioned by UEL Vice President and UM Professor Gregory Bush about how his life in development, art, and civic activism relate to each other. For reservations and further information, contact the UEL at uelinfo@bellsouth.net or call 786 472-0011>> Contact: Greg Bush 305 667-4398
>>> Press release: National Association of Women Lawyers 2011 Mid-Year Meeting: Leadership for the New Decade – February 16-17, 2011 Epic Hotel Miami, Florida
Featuring a poolside welcoming reception, judges panel and awards luncheon, you won’t want to miss out on this great opportunity for CLE and networking.
Confirmed panelists and speakers include: Leadership in the Courtroom and Beyond moderated by The Honorable Peggy A. Quince, Florida Supreme Court.
The Honorable Cecilia M. Altonaga, U.S. District Court for the Southern District of Florida The Honorable Laurel M. Isicoff, U.S. Bankruptcy Court for the Southern District of Florida The Honorable Barbara Lagoa, Florida Third District Court of Appeal The Honorable Ellen Leesfield, Eleventh Judicial Circuit of Florida
The Honorable Jacqueline H. Scola, Eleventh Judicial Circuit of Florida
>> Leading the Way to Economic Success: Compensation Models for the 21st Century moderated by Lorraine Koc, Vice President and General Counsel, Deb Shops, Inc. and Past President National Association of Women Lawyers.
Hilarie Bass, Esq. Greenberg Traurig LLP Edith G. Osman, Esq. Carlton Fields
Gretta Rusanow, Senior Client Advisor, Citi Private Bank Law Firm Group
Teresa M. Sebastian, Senior Vice President and General Counsel, Darden Restaurants, Inc.
>> Leading for Good: Inspiration from Outside the Box moderated by Jane Mallor McBride, Principal and General Counsel, Optimus Legal Col. Lettie J. Bien, President, Martial Venue, Inc. Cheryl Little, Esq. Executive Director and Founder, Florida Immigrant Advocacy Center Jacqueline Arango, Deputy Chief Public Integrity, National Security, and Civil Rights Section U.S. Attorney’s Office, Southern District of Florida Victoria Méndez, Supervising Assistant City Attorney for the Quality of Life and Environmental Division of the Office of the City Attorney, City of Miami Dean Patricia D. White, University of Miami School of Law
>> Leading “COURTSIDE” – A one-on-one conversation with Raquel Libman, Executive Vice-President and General Counsel, The HEAT group and American Airlines Arena. See the full Conference Agenda for the complete line up of speakers. Luncheon remarks by Dorian S. Denburg, NAWL President. This year the Challenge Award will go to the Office Depot Legal Department, Elisa D. Garcia C., Executive Vice President, General Counsel and Secretary, and Florida Supreme Court Justice Peggy A. Quince will be honored with the Leadership Award. Want to take your NAWL support to the next level? Consider sponsoring this great event. We offer great benefits to those who support NAWL events. More Information Registration, Pricing and Hotel Information
>>> Press release: 2011 Beneath the Waves Film Festival: Call For Submissions
WHAT Submit your environmental film now! Films must relate to or focus on marine or freshwater systems or subjects – from documentaries to interesting stories and research videos. Films with a conservation message are preferred, but not required. All films must be under 20 minutes in length. WHO Any amateur or professional videographer who is interested in preserving our ocean ecosystems for future generations is welcome to submit an entry. >>>
DEADLINE February 15, 2011. There is no cost for submitting an entry to the Film Festival; films will not be returned. WHERE The Beneath the Waves Film Festival this year will take place during the Benthic Ecology Meeting, March 16‐20, 2011 at the Renaissance Riverview Plaza & Battle House Hotel in Mobile, Ala. WHY Founded in 2009 by a group of concerned scientists focused on promoting their research, the Beneath the Waves Film Festival uses moving images to shed light and exact a powerful reactions from audiences. The goal is to motivate and stimulate the general public to protect and preserve our waterways. GUIDELINES Visit http://beneathwavesff.wordpress.com/ MEDIA CONTACT: Austin Gallagher Gallagher.austin@gmail.com Tel. 305‐421‐4536
EDITORIALS
>>> Two different problems but U.S. Reps. Rivera & Wilson need to clear the air
South Florida voters from both political parties deserve an answer to all the controversy concerning U.S. Reps. David Rivera (Net worth $301,000) and Fredericka Wilson (net worth $405,000) for these clouds over their heads is taking their toll in the national political arena and will not go away. Rivera is being dogged for a variety of issues and in the case of Wilson. She needs to update her past financial disclosure forms for 2008 and 2009 and explain why despite owning a number of properties. She lists no rent being received and these monies would be considered as income for the years with the IRS.
Transparency and honest public service seem to be the watchword of the day but these two newly minted congress people need to get ahead of the issues that are tainting their presence in the hollowed body trying to get its house in order after some recent high profile scandals of its older established members including U.S. Rep. Charles Rangel, D-Harlem most recently. Rivera’s aversion of the press over the past months is not a good sign and Wilson should act proactively by at least updating her financial disclosure forms on file with the state. It’s bad enough when a long time politician in the House is punished but to have two neophytes in the spotlight in the body for this kind of activities, it reflects on the local Congressional delegation and state as well. And both politicians would do themselves a great favor for voters to explain these discrepancies and other irregularities because it is a political cancer. Something nether should want in their new political life on the national stage.
LETTERS
>>> Watchdog Report e-mail exchange from WLRN 91.3 FM listener Monday
I am listening to you on NPR and I really object that you’re saying
that whoever is hired to replace Roldan must be paid more. Don’t you
Understand that we have all taken pay cuts? Why would you possibly make
such a recommendation? Please do your homework before you start making statements on the radio. A California-wide survey of 118 nonprofit hospitals
showed that base salary for CEOs averaged $514000, according to
Payers& Providers.
>> WDR response: Thanks, But there is only one other public hospital bigger in the nation, does not have the same dynamics as here, and given all the
challenges across the board. Someone from the outside that is truly
top notch will have to be paid. That said, we get someone local for a lot less and see what happens. Either way I hope we get the best long-term leader we can given the overall financial state and changes in healthcare payments coming
ahead.
>> I agree that someone will have to be paid but the question is how much is reasonable? I do *not* believe that we should be paying anyone over half a million dollars especially in their first years.
Linda Drake
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The Watchdog Report covers a few of the meetings attended weekly. It remains my belief that an informed public will make better decisions. Therefore, I go to meetings, make the presence of an informed citizen known, and bring the information to you. The Watchdog Report is in the fourth year of publication and it has been an honor to be able to send this information to you. It is sent to readers in Miami-Dade, Florida, the U.S. and the world. The Watchdog Report is sent to thousands free and while readers have been prodded to subscribe the results have been mixed. Over 250 reports and Extra’s have been sent since May 5, 2000 and over one million words have been written on our community’s governments and events. The report is an original work based on information gathered at public meetings, interviews and from documents in the public domain.
LETTER POLICY
I welcome letters via e-mail, fax, or snail mail. Letters may be edited for length or clarity and must refer to material published in the Watchdog Report. Please see address and contact information. Please send any additions and corrections by e-mail, fax or snail mail. All corrections will be published in the next Watchdog Report. If you or your organization would like to publish the contents of this newsletter, please contact me. Please send your request to watchdogreport1@earthlink.net
Daniel A. Ricker
Publisher & Editor
Watchdog Report
Est. 05.05.00
Copyright © of original material, 2011, Daniel A. Ricker
>>> Watchdog Report is expanding as a new service and this content is now available to other news media, no longer exclusive to The Miami Herald
The Watchdog Report is no longer exclusively with The Miami Herald, and excluding the one story a week that is printed in the paper on Monday in the Metro & State section by me. The rest of the 20 or so news stories weekly sent out Sunday in the Watchdog Report are now available to television stations web pages, and all the newspapers and other media in South Florida if the publishers have an interest to run part or all of the stories. Further, in 2000, I used to have some paper’s running the report in the Spanish press, that option is available again, and publishers should contact me. The news content will not be free, but you can pick and chose the stories of interest, edit them if necessary but you must still keep the general story intact. If you are a news outlet and would like to learn more about, the Watchdog Report and this offer contact me at watchdogreport1@earthlink.net for further information.
>>> Here is what past newspapers have written about the Watchdog Report publisher including a survey and regional study done by the U. North Carolina at Chapel Hill on the media in the southeast United States.
>>> The Miami Herald and Orlando Sentinel & Sun-Sentinel articles on the Watchdog Report publisher over the years. >>> Published on September 9, 1999, Page 1EA, Miami Herald, The (FL) CITIZEN ADVOCATE’ KEEPS TABS ON POLITICIANS >>> Published on January 3, 2000, Page 1B, Miami Herald, The (FL) MIAMI-DADE WATCHDOG WILL BE MISSED >>> Published on January 20, 2003, Page 1E, Orlando Sentinel, PAPERWORK TIGER, Miami’s citizen watchdog piles up government files in his quest to keep the “little people” informed.
>>>Watchdog Report publisher named ‘Best Citizen’ 2003 by the Miami New Times —The publisher would like to thank the weekly alternative paper Miami New Times for bestowing their 2003 Best of Miami, ‘Best Citizen’ award to me and I am honored. Thank you. To read the full story go to http://www.miaminewtimes.com/issues/2003-05-15/citylife2.html/1/index.html
From the spring of 2003: U. North Carolina, Chapel Hill: Southeast U.S. Media Report lists Watchdog Report publisher as leading Florida commentator >>> Selected excerpts from the report on Florida’s media sources
Those who do read the newspaper in Florida have a bevy of options for state government and political coverage. The dominant newspapers in the state are Knight-Ridder’s The Miami Herald (Acquired by The McClatchy Company in 2006) and the Poynter Institute’s St. Petersburg Times. Both papers endorsed Gore in 2000 but split on the 2002 gubernatorial race, with the Herald endorsing Republican incumbent Jeb Bush and the Times backing Democratic challenger Bill McBride.
Daniel Ricker of The Miami Herald also writes an influential column as well as an email newsletter called the Watchdog Report that goes out to more than 100,000 subscribers. FEBRUARY 2004 – Florida: Columnists in Abundance —ERIC GAUTSCHI, graduate student, School of Journalism & Mass Communication, UNC-Chapel Hill – D) LEADING COMMENTATORS – Resource Commentator Organization Type Web site –Steve Bousquet St. Petersburg Times Column www.sptimes.com/columns/bousquet.shtml -“First Friday” WPBT TV (Miami) TV Show www.channel2.org/firstfriday/issues.html –Lucy Morgan St. Petersburg Times Column www.sptimes.com/columns/morgan.shtml –Daniel Ricker Miami Herald/Watchdog Report Newsletter –www.miami.com/mld/miamiherald/news/columnists/dan_ricker/ >>> Readers who would like to read the complete University of North Carolina, Chapel Hill Southeast United States Media Report go to view the complete report or download all the data used in this study. >>> Watchdog Report Editor’s note to the NCU/CH study: The subscriber number referenced is incorrect and applies to readership.
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