Watchdog Report Vol.13 No.41 March 3, 2013 Est.05.05.00 – I go when you cannot

>>> The Watchdog Report publisher would like to thank the John S. and James L. Knight Foundation www.knightfoundation.org for funding by the Knight Foundation with technical support from the Knight Center for International Media http://knight.miami.edu within the University of Miami’s School of Communication www.miami.edu to maintain my webpage. The Watchdog Report webpage is free, has no ads, pops-up and is just the news in a mainstream reporting manner.

>>> Red Alert: If you think it is important to have an alternative mainstream news service, I hope you will consider becoming a financial supporter for I do have to live and pay my rent. I also want to thank again all those people and organizations that have supported me and I have been honored by that trust and support of my efforts over the past almost 14 years trying to keep the community, state, nation and world informed of the political and governmental happenings in South Florida.

ARGUS REPORT – Heard, Seen on the Street

>>> Identity Theft tops the charts in S. FL; number of residents impacted dwarfs other scams like Medicare and Mortgage Fraud

“We are the graduate school for fraud,” said former local U.S. Attorney Alex Acosta to the Watchdog Report back in the mid 2000s and the community has just added a new graduate school program into the mix, Identity Theft. In the past South Florida has been ground zero for Medicare, Medicaid, and mortgage fraud along with Ponzi schemes, and Human Trafficking and in the case of Medicare frauds. South Florida actually exports the rip off scams around the state and nation after these are perfected using Beta sites locally, and is why there is two FBI special agent details handling the matter in the federal Southern District of Florida with the first being created back in late 2002.

However, this new scourge has blossomed fast and for the last four years has grown exponentially and in this week’s Watchdog Report, there are multiple cases of people being busted by authorities for the activity that is a nightmare for the scammed person’s life. U.S. Sen. Bill Nelson, D-FL was shocked at the scope of the activity until a few years ago, when he linked up with one woman who had all her personal information stolen called “Miss X.” She later testified in front of Congress and her ordeal trying to get the IRS to address her problem and to get a refund check due her but was sent to the scammer instead. Further, State Attorney Katherine Fernandez Rundle also recently carped to the Watchdog Report about the explosion of “Identity Theft” down here and her office is being inundated with cases of people having their personal and financial data lifted and used illegally, she said.

And law enforcement experts say you know you have a problem when drug dealers believe Identity Theft is a better avenue then their current trade that could get them killed in a turf war. For these people, Identity Theft is not only much safer but can become a family affair where relatives are all involved in the processing of this illegally gotten information. And while it is not armed robbery. Identity Theft is real, and the fact the volume of prosecutions is becoming voluminous, by state and federal authorities should be of concern to all residents in Florida. For while Miami-Dade, Broward and Palm Beach may be Identity Theft Central, this corrosive scam is spreading nationwide. And once again we are leading the pack say these elected leaders and law enforcement prosecutors.  >>> Here is a story on Miss. X http://articles.sun-sentinel.com/2011-05-25/news/fl-tax-fraud-id-theft-hearing-20110525_1_tax-refunds-identity-theft-fraudulent-tax-returns

Nelson

>>> Owner of Mental Health Facilities Sentenced to 168 Months in Prison in Connection with $63 Million Health Care Fraud Scheme

Press release: A former owner of mental health facilities in Florida and North Carolina was sentenced yesterday to serve 168 months in prison for his leadership role in a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN), announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office. Armando Gonzalez, 50, of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida.  In addition to his prison term, Gonzalez was sentenced to serve three years of supervised release and ordered to pay 28,092,283 in restitution, which, under the terms of Gonzalez’s plea agreement, will be satisfied in part by seized assets including $987,000 in currency seized in July 2012 and Gonzalez’s mansion in Hendersonville, N.C. On Dec. 17, 2012, Gonzalez pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering.

According to court documents, HCSN operated community mental health centers at three locations in Miami-Dade County, Fla., and one location in Hendersonville.  HCSN purported to provide partial hospitalization program (PHP) services to individuals suffering from mental illness.  A PHP is a form of intensive treatment for severe mental illness.  According to court documents, HCSN obtained Medicare beneficiaries to attend HCSN for purported PHP treatment that was unnecessary and, in many instances, not even provided.

Gonzalez orchestrated the HCSN fraud scheme, which centered on the recruitment and admission of patients who could not benefit from PHP services. In Miami, Gonzalez utilized patient recruiters to pay cash kickbacks in exchange for referrals from Assisted Living Facilities (ALF) patients who often suffered from conditions such as dementia and mental retardation.  Once the unqualified patients were admitted to HCSN, Gonzalez’s employees would fabricate virtually every portion of the patients’ mental health medical records.  The fake medical records were then utilized to support false billings to government sponsored health care benefit programs and to avoid detection by Medicare auditors.

In North Carolina, HCSN employees also routinely submitted false billing for patients watching movies, attending BBQs and, more commonly, patients who were not even present at the Miami and North Carolina facilities. Gonzalez also admitted to his role in a money laundering scheme involving Psychiatric Consulting Network Inc. (PCN), a Florida corporation that was utilized by HCSN as a shell corporation to launder millions in health care fraud proceeds. According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services that resulted in more than $28 million in payments. Fifteen defendants have been charged for their alleged roles in the HCSN health care fraud scheme, and ten defendants have pleaded guilty.  Alleged co-conspirators Wondera Eason and Paul Layman are scheduled for trial on March 11, 2013, before Judge Altonaga in Miami.  Alleged co-conspirators Dr. Alina Feas, Dana Gonzalez and Lisset Palmero are scheduled for trial on June 3, 2013.  Defendants are presumed innocent until proven guilty at trial.

The cases are being prosecuted by Special Trial Attorney William Parente and Trial Attorney Allan J. Medina of the Criminal Division’s Fraud Section. This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.  In support of the Medicare Fraud Strike Force, the FBI Criminal Investigative Division’s Financial Crimes Section has funded the Special Trial Attorney position. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion.  In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.

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.

>>> ZOGBY Analytics poll: Sequestration is not a Smart Strategy for Reducing the Deficit, Say Small Business Leaders -Most Say Federally Funded Basic Research is Important to Private Sector Innovation

Alexandria, Va.-February 26, 2013-More than two-thirds (67%) of small business leaders say basic research funded by the federal government is important to private sector innovation, according to a new nationwide survey of small business owners/operators commissioned by Research!America. In addition, nearly half (45%) say medical research funding to universities and other non-governmental research institutions should not be cut as part of sequestration, and a plurality (40%) say that such across-the-board cuts are not a smart strategy for reducing the deficit. The survey findings also reveal that small businesses support the federal government’s role in science, technology, engineering and math (STEM) education. Seventy percent of respondents say STEM education is important to the future of their business and the federal government should increase funding for those programs.

“It is striking that small business owners, the backbone of our economy comprising nearly 80% of business leaders nationwide, strongly value federal support for research and recognize the major role it plays in spurring private sector growth,” said Research!America President and CEO Mary Woolley.

A majority of respondents (85%) say it’s very important or somewhat important to reduce the federal debt and deficit and to cut federal corporate and individual tax rates (81%). Among the top strategies for deficit reduction are entitlement reform (25%), eliminating targeted corporate tax breaks (22%) and closing tax loopholes (21%). Seventy-seven percent say the rising cost of health care, a major chunk of our national debt, is important to their businesses, a concern that mirrors other components of the economy as well as individuals. A huge majority, 80%, says it’s important for the government to support research that focuses on making our health care system more efficient.

The concern of small business owners is strikingly evident as it relates to our nation’s world leadership status, with 90% describing research and development as important to our global competitiveness. “Small business owners understand the critical role of federal government in giving small businesses a launching pad that includes the stimulus of innovation based on federally supported research and development,” added Woolley. “Deep cuts to medical research funding would be detrimental to small businesses, our nation’s economy and global competitiveness if policy makers allow the sequester to take effect.” >>> The nationwide survey of small business owners/operators was conducted by Zogby Analytics for Research!America. Based on a confidence interval of 95%, the margin of error for the panel of 203 business owners is +/-7.0 percentage points.

To view the poll, visit: www.researchamerica.org/uploads/Feb2013smallbizsurvey.pdf

About Research!America polls – Research!America began commissioning polls in 1992 in an effort to understand public support for medical, health and scientific research. The results of Research!America’s polls have proven invaluable to our alliance of member organizations and, in turn, to the fulfillment of our mission to make research to improve health a higher national priority. In response to growing usage and demand, Research!America has expanded its portfolio, which includes state, national and issue-specific polling. Poll data is available by request or at www.researchamerica.org. >>>Research!America is the nation’s largest nonprofit public education and advocacy alliance working to make research to improve health a higher national priority. Founded in 1989, Research!America is supported by member organizations representing 125 million Americans. Visit www.researchamerica.org.

>>> 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 and was Best Citizen in the 2003 Best of Miami of The Miami New Times, profiled twice in The Miami Herald, and the Orlando Sentinel ran a nationwide story on me in the Tribune papers on Jan. 2003, and UNC Chapel Hill named 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 91.3 FM since 2000, including yearly election coverage since then, and also numerous times over the past decade. Further, I am a frequent guest on WWW.WPBT2.ORG on Helen Ferre’s show Issues, and have also appeared on  Eliott Rodriguez’s show News & Views on www.CBS4.com and The Florida Roundup on www.wlrn.org

FLORIDA

>>> Will Gaetz & Weatherford be able to shepard true ethics and conflict of interest reforms? FL voters need to weigh in on issue and support effort

Florida Senate President Don Gaetz,65, in a interview on the Florida Channel said he believed he and House Speaker Will Weatherford, R-Wesley Chapel will cajole both legislative branches to pass wide ranging ethics reforms. He noted that in his small county even the local sheriff had been arrested, a county commissioner is in federal prison and a few others have gone to the Big House and it showed the systemic nature of what has been called in the past the Sunshine State’s “Culture of Corruption.” And when it came to a legislator getting jobs at universities or other public institutions they vote funding for. Gaetz, a former school superintendent, said he comes from Okaloosa County and residents there call these types of appointments “walking around jobs,” he is quoted in the Tampa Bay Times last year. But he and Weatherford have continued to press for these reforms after decades of the legislature working around the edges and the new reform legislation. If passed has a host of new restrictions and disclosures and would force lawmakers to pay any fine incurred from an ethics breach including the garnishment of wages. And in the House Weatherford wants to banish committees of continued existence that politicians use to raise money, sometimes to supplement their own income and lifestyle or to attack an opponent in a political campaign.

http://www.wjhg.com/home/headlines/Ethics-Reform-to-Signal-Beginning-of-Session-194349831.html >>> http://www.tampabay.com/blogs/the-buzz-florida-politics/content/don-gaetz-says-ethics-reform-will-be-senate-priority

However, critics say some of the legislation gives lawmakers an out since they would have to know what they did was wrong and they demand any changes be tightened up further. But residents of Florida have potentially their best opportunity to put some teeth in these conflict of interest and ethics regulations then ever before in the state’s history, and voters if this is a hot button for you. Supporters of the stricter ethics guidelines should let their local state leaders know this is a priority, and had Florida leading federal statistics when it came to corrupt politicians and their arrest in a multi decade federal study of corruption around the nation.

Gaetz

Weatherford

>>> Press release: Governor Rick Scott On Sequestration: “Obama Administration & Congress Are Getting Paid For Not Doing Their Jobs While Floridians Lose Theirs”

Gov. Scott released the following statement on the threat of sequestration, which will trigger forced budget cuts on Friday, March 1, 2013: “There is no doubt that budget cuts must be made at the national level, just as we have done here in Florida. But, it is the responsibility of our federal leaders to administer spending reductions thoughtfully and rationally – not in an elementary school game of ‘chicken.’ Instead of cutting with a scalpel, the sequestration process is a meat hammer. “Sequestration means the Obama Administration and Congress failed to do their job to manage the budget. As thousands of Floridians lose their jobs, the Obama Administration and Congress are getting paid for not doing theirs. That’s just wrong.

“The impacts on Florida’s military installations and defense industries will be severe under the meat hammer of sequestration. Our immediate concerns include dramatic reductions to our National Guard, which threatens our ability to respond to wildfires this spring and hurricanes this summer. “Now is the time for leadership. It is critical for all national leaders to find a way forward that will not have unwarranted, unnecessary impacts on both our economic and our national security.” Florida is one of America’s most defense centric states.  Florida hosts three unified combatant commands, 20 major Air Force and Navy installations, and very large segments of the nation’s defense industry, which annually contributes over $73.4 billion and more than 754,000 defense industry jobs to the economy. Estimated defense industry impacts from industry and academic sources include jobs losses from 40,000 to 80,000, and defense spending reductions approaching $1 billion across Florida.  The Florida National Guard estimates an annual impact of $27.2 million, which includes 986 Florida National Guard employees furloughed for 20% of the remaining year ($7.3 million in lost wages).

>>> Press release: Gov. Scott names six appointments to the State of Florida Correctional Medical Authority.

Katherine E. Langston, 47, of Tallahassee, is a general surgeon at Capital Regional Surgical Associates. She is appointed for a term beginning February 28, 2013, and ending July 1, 2016.

Joyce A. Phelps, 61, of Tallahassee, is a retired home health nurse and previous division director of family health services for the Florida Department of Health. She is appointed for a term beginning February 28, 2013, and ending July 1, 2016.

Harvey R. Novak, 66, of Gainesville, is a retired dentist. He is appointed for a term beginning February 28, 2013, and ending July 1, 2016.

Peter C. Debelius-Enemark, 57, of Tallahassee, is a psychiatrist at Tallahassee Memorial Healthcare. He is appointed for a term beginning February 28, 2013, and ending July 1, 2016.

Ryan D. Beaty, 65, of Inverness, is the president and chief executive officer of Citrus Memorial Health System. He is appointed for a term beginning February 28, 2013, and ending

July 1, 2016.

Lee B. Chaykin, 43, of Plantation, is the chief executive officer of Westside Regional Medical Center. He is appointed for a term beginning February 28, 2013, and ending July 1, 2016. The appointments are subject to confirmation by the Florida Senate.

>>> Scandal free Children’s Trust of Miami-Dade looking for new CEO to replace Abety after 11-years in top child advocate administrative slot

The Children’s Trust of Miami-Dade County created by county voters in 2002 and reaffirmed overwhelmingly by a 79 percent majority of  county voters in 2008 is looking for a new president to run the around $100 million Trust. Modesto Abety, the only top administrator of the organization since its creation is prohibited from taking the job during a six-month period he has to leave. Since he is in the Florida Retirement System, but a new CEO is expected to be found in the meantime before he could reapply for the job. In addition, long serving senior administrator Charles Auslander will be the interim CEO when Abety formally leaves at the end of March.

>>> The Children’s Trust Conducts Search for a New President and CEO, extends application deadline to Mar. 15 only the best of the best should apply for this premier organization helping kids

Press release: The Children’s Trust Board of Directors has begun an executive search for a new President and Chief Executive Officer. Qualified candidates are preferred to have no less than 15 years of experience, including at least five leading a team of professional staff, as a senior administrator with preference for a human service agency administrator or as public administrator working with a board, council or other policy body. Demonstrated knowledge and understanding of: Governance structures in Miami-Dade and the State of Florida, the demographics of the Miami-Dade population, major policy issues involving children and families, and the dynamics of large urban communities with high levels of immigration. The Children’s Trust is a dedicated source of revenue established by voter referendum to improve the lives of children and families in Miami-Dade County by making strategic investments in their future. >>> To view the entire job description, visit www.thechildrenstrust.org Interested and qualified candidates shall send, in one continuous Word or PDF document, a cover letter of interest, resume, at least three professional references, and salary requirements to: CEOsearch@thechildrenstrust.org >>> All information submitted to The Children’s Trust is subject to Public Records Requests and all interviews will be publicly noticed and take place in a public setting as proscribed by law.  In addition, a background check will be conducted as part of the pre-employment process.  Candidates who are not a current resident of Miami-Dade County, if hired, must relocate to Miami-Dade County within 30 days of employment. The Children’s Trust is a dedicated source of revenue established by voter referendum to improve the lives of children and families in Miami-Dade County.

>>> Children’s Movement of Florida  Voices of Florida – We all have a story, a story that defines us. It is our collective story, our challenges and our triumphs that inspire a movement. Floridians from all walks of life have joined together with an understanding that the future of our state rests on the well-being of our children. Visit The Children’s Movement website to read their stories and share your own. >>> I find it unacceptable, as all of us should, that at least a half-million children in Florida – all citizens — have no health insurance. How could this be in our beloved country that seeks to be a beacon to the world? Health insurance for all children is one of the five major planks of The Children’s Movement. With the support of Florida Covering Kids and Families, The Children’s Movement is working with dozens of local partners to help build a meaningful signing-up initiative in more than a dozen Florida communities. Already we have: Completed 18 KidCare trainings around the state. Signed up, trained and deployed more than a hundred volunteers. Begun to build a growing collaboration between local school districts and KidCare outreach coalitions. It’s a good start, but only the start. If you’d like to become a volunteer, just click here. Another way to help is to make a contribution – of any size – to help support this work. It is easy. Just click here. A real movement isn’t possible without your helping in some meaningful way. Dave Lawrence, Chair The Children’s Movement.

MIAMI-DADE COUNTY

>>> Déjà vu, who would believe a shrink-wrap contract at MIA would get such attention, nothing like when question was about the hearing judge and was he “awake, dozing or full asleep?”

A contract for shrink wrapping baggage at Miami International Airport coming up for a vote this Tuesday by the county commission drew some press on Thursday and the media struck during Mayor Carlos Gimenez’s 2013 State of the County address. The ongoing contract for shrink wrapping bags at MIA is a long and storied saga that has played out since around 2000 when the airport was finally able to offer passengers this convenience, and since it is a cash operation. Vender interest was high to get what could have been a lucrative contract in the millions of dollars. In this current case the company with the highest bid got the award and while a competitor filed a bid protest. A hearing judge ruled on the side of the winner, the True Star Group.

The Watchdog Report contacted Jose Abreu, the director of MIA by phone on Friday and he said the aviation department’s recommendations was the right one. Yes some people from the previous firm had lost their job (ten of the past 15 workers were rehired) when the contract was awarded in 2010 to another firm. But he said “construction workers at MIA have been let go” also now that the two terminals were completed, he noted and was what happens when a construction job is done or another company gets the nod for a contract. The airport executive said MIA had a responsibility to the county and bondholders to maximize income coming in from concessions or other activities. He noted the county is contracting with an incredible number of firms at anyone time and in the case of this one at MIA. He said a selection committee of experts had evaluated it, and they were recommending the True Star Group, a overseas joint venture over the local Safe Wrap, even after the protest.

Abreu, who is leaving the post at the end of March for the private sector after decades in state transportation posts and rising to the Florida Secretary of Transportation before taking the MIA assignment back in 2005. However, he has found over the years the controversial MIA post buffeted by various lobbyist teams representing companies vying for some of the airport’s lucrative services is no easy job. And had his predecessor Angela Gittens leaving the top spot after she signed a petition calling for the creation of an airport authority and she called MIA and its wide variety of contracts “Lobbyist Heaven.” But she also drew the ire of county commissioners and the authority initiative stalled and the effort was abandoned, and she left the job.

http://www.nbcmiami.com/news/Dispute-Over-Company-to-Wrap-Luggage-at-Miami-International-Airport-Gets-Heated-194086011.html >>> Here is the contract legislation: 130085  RESOLUTION APPROVING AWARD OF A LEASE AND CONCESSION AGREEMENT FOR THE LUGGAGE WRAPPING SERVICES AT MIAMI INTERNATIONAL AIRPORT, BETWEEN TRUESTAR USA A JOINT VENTURE BETWEEN SINAPSIS TRADING USA, LLC AND TRUESTAR GROUP SPA AND MIAMI-DADE COUNTY, WITH A MINIMUM ANNUAL GUARANTEE OF $9,600,000 AND FOR A TERM OF EIGHT YEARS, WITH A TWO-YEAR OPTION TO RENEW; AUTHORIZING COUNTY MAYOR OR HIS DESIGNEE TO EXECUTE SAME, AND TO EXERCISE RENEWAL AND TERMINATION PROVISIONS THEREOF(Aviation Department)

Gimenez

Abreu

What about the first shrink wrap contract at MIA in 2000?

The Watchdog Report has a video tape in my BCC archives of the first county commission meeting where the body around 2000 was voting on the first baggage shrink-wrap contract and it was an action packed four-hour event with the cream of the top lobbyist working county hall verbally battling it out in the commission chambers. And some of the discussion’s highlights was attorney and lobbyist Robert Holland calling then county Manager Merritt Stierheim a “racist,” that Stierheim denied, but the real highlight was the discussion on the bid protest-hearing judge. For about a half hour of the much longer commission meeting, lobbyists argued over the judge at the protest hearing, trying to determine if the judge was “awake,” perhaps just “dozing off,” or “full asleep,” they argued back and forth. And now such protest meetings are videotaped at the county after the Watchdog Report suggested that be done to then Commission Chair Gwen Margolis and Stierheim.  But the intensity of the verbal arguments and lobbyist firepower involved was a sight to see and became another Miami-Dade moment and who knew wrapping traveler’s baggage would be such a hot button matter.

>>> Commission on Ethics and Public Trust press release: COE reminds all advisory board members to complete financial disclosure forms

Even though some of the nearly 100 advisory boards to the Miami-Dade County Commission did not meet during 2012 because no issues arose requiring their action, members must still file financial disclosure statements.  That’s the response to a Request for Opinion (RQO 13-01) issued by the Miami-Dade Commission on Ethics & Public Trust today.  The Commission determined that because advisory board members were approved and authorized to serve in 2012 and because they could have been exposed to undue influence associated with their membership, they must file financial disclosure statements by July 1, 2013, as must members of all County advisory boards.

>>> In a related query (RQO 13-02), the Miami-Dade Elections Department was told it may accept financial disclosure forms that are filed electronically.  The County Ethics Code doesn’t mention the physical properties of the estimated 5,500 forms sent to the agency each year.   The Ethics Commission concluded that the Elections Department may accept them via fax, e-mail or other devices compatible with its system, as long as security standards are followed.

>>> In other action, Ethics Commissioners agreed to establish the second Thursday of each month to hold their regular monthly meetings.   The next meeting will be on Thursday, March 14, 2013, at 10 a.m.

>>> Also today, Executive Director Joseph Centorino announced the promotion of three staff members, based on expanded responsibilities.   Investigator Karl Ross is assuming the duties of Forensic Accountant.  Staff Attorney Victoria Frigo is now Senior Staff Attorney.  And, Community Outreach Coordinator Rhonda Victor Sibilia is taking the title of Communications Director. >>> The Ethics Commission was created in 1996 as an independent agency with advisory and quasi-judicial powers. It is composed of five members, serving staggered terms of four years each. Through a program of education, outreach and enforcement, the Commission seeks to empower the community and bolster public trust.

>>> Owners of Miami Home Health Companies Sentenced to Prison in $48 Million Health Care Fraud Scheme

Press release: The owners and operators of two Miami health care agencies were sentenced to nine years and more than four years in prison today, respectively, and ordered to pay millions in restitution for their participation in a $48 million home health Medicare fraud scheme that billed for unnecessary home health care and therapy services. The sentences, imposed in federal court in the Southern District of Florida, were announced by U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.

U.S. District Judge Frederico A. Moreno sentenced Rogelio Rodriguez, 43, and Raymond Aday, 48, both of the Miami-Dade area, to 108 months and 51 months in prison, respectively.  In addition to the prison term, Judge Moreno sentenced Rodriguez to pay $33 million in restitution, and Aday to pay $2.1 million in restitution.  Both defendants were also sentenced to serve three years of supervised release and pay a $100,000 fine.  In December 2012, each pleaded guilty to one count of conspiracy to commit health care fraud. According to court documents, Rodriguez was the owner of both Caring Nurse Home Health Corp. and Good Quality Home Health Inc., and Aday was a manager at Caring Nurse and owner of Good Quality.

According to plea documents, Rodriguez and Aday conspired with patient recruiters for the purpose of billing the Medicare program for unnecessary home health care and therapy services.  Rodriguez, Aday and their co-conspirators paid kickbacks and bribes to patient recruiters.  In return, recruiters provided patients to Caring Nurse and Good Quality, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries.  Rodriguez and Aday used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for home health care services, which both Rodriguez and Aday knew was in violation of federal criminal laws. According to court documents, nurses and office staff at Caring Nurse and Good Quality falsified patient files to make it appear the Medicare beneficiaries qualified for services they did not.  Rodriguez admitted to knowing that these files were falsified so the Medicare program could be billed for medically unnecessary therapy and home health related services.

From approximately January 2006 through June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or were not provided.  According to court documents, Medicare paid approximately $33 million for these fraudulent claims.

This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.  The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. >>> Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.

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.

>>> GMCVB press release: DEMAND FOR TRAVEL TO GREATER MIAMI & THE BEACHES REMAINS STRONG – GREATER MIAMI & THE BEACHES RANKS #1 IN HOTEL ROOM OCCUPANCY AMONG THE FLORIDA MARKETS, #2 IN REVENUE PER AVAILABLE ROOM (REV PAR), AND #2 IN AVERAGE DAILY ROOM RATE (ADR) FOR JANUARY 2013.
For January 2013, Greater Miami and the Beaches showed increases vs. 2012, ranking #1 in Hotel Room Occupancy at 82.5% among the Florida Hotel Markets, #2 in Revenue Per Available Room (RevPar) at $174.26, and #2 in Average Daily Room rate (ADR) at $211.11. Smith Travel Research compares the top markets in the United States based on Occupancy, Average Daily Room Rate (ADR) and Revenue Per Available Room (RevPar).

JANUARY 2013
AVERAGE DAILY OCCUPANCY
Market	% Occupancy	% Change vs. 2011
1. Miami	82.5%	+4.7%
2. Fort Lauderdale	80.1%	+1.0%
3. Florida Keys	79.2%	+1.7%
4. West Palm Beach	78.1%	+1.3%
5. Orlando	75.4%	+5.1%
REVENUE PER AVAILABLE HOTEL ROOM (REV PAR)
Market	$	% Change vs. 2012
1. Florida Keys	$178.55	+12.6%
2. Miami	$174.26	+17.5%
3. West Palm Beach	$131.62	+8.6%
4. Fort Lauderdale	$112.79	+7.0%
5. Fort Myers	$79.90	+17.5%
AVERAGE DAILY ROOM RATE
Market	$	% Change vs. 2012
1. Florida Keys	$225.42	+7.3%
2. Miami	$211.11	+12.2%
3. West Palm Beach	$168.49	+3.0%
4. Fort Lauderdale	$140.86	+5.9%
5. Fort Myers	$122.05	+6.4%

MIAMI-DADE PUBLIC SCHOOL

>>> The English Center offers free tax help to the community

Press release: The English Center, part of Miami-Dade County Public Schools (M-DCPS), Adult Education Division continues its long standing commitment to help members of the community to complete their income taxes with the free Volunteer Income Tax Assistance (VITA) Program. “Our VITA Program was started years ago as part of our accounting courses to provide a hands-on experience for our students,” said Dr. Dulce de Villa, The English Center principal.  “It also serves to offer a valuable free service to members of our community that cannot afford to pay hundreds of dollars to file their taxes.”

The VITA Program is administered and staffed by students and other individuals who volunteer their time to help the public in preparing their tax forms.  Those that are willing to participate as volunteers are trained beforehand and must pass an Internal Revenue Service (IRS) exam of basic rules, regulations, and tax preparation skills before they are able to assist taxpayers.  Divided into three groups, their functions are administrative, tax return preparation and quality review.

Individuals interested in having their tax preparation done through The English Center’s VITA program must bring the following documents with them:  social security card and social security cards of claimed dependents, picture identification, W-2 statements and 1099 MISC if self-employed, 1099 INT (for any interest income) documents for any claimed expenses like receipts, etc.

The English Center will offer these services to all interested individuals until April 3. Tax help is available Monday to Thursday from 5 – 8 p.m. and Saturday from 9 a.m. – 2 p.m. in Room H-3. The English center is located in 3501 S.W. 28th Street, Miami, FL 33133.  If you need additional information, call 305-445-7731 or visit http://www.tecmiami.com.

PUBLIC HEALTH TRUST

>>> Obamacare 101, hospitals & doctors under fiscal gun, “Heavy duty [primary care] prevention,” new watchword but what will final 100,000 pages of federal guidelines bring?

Healthcare 101 under The Patient Protection and Affordable Care Act passed and sustained by the U.S. Supreme Court last year was the topic of the day at The GOOD GOVERNMENT Initiative luncheon on Wednesday and it brought a top-notch panel of experts in the field together. The event organized by former County Commissioner Katie Sorenson who is director of the Good Government Initiative based at the University of Miami noted that “36 countries have universal healthcare” coverage and now America is joining the group with the federal program commonly known as Obamacare. The panel included state Sen. Rene Garcia, R-Miami, Brian Keeley, the CEO of Baptist Health South Florida, Carlos Migoya, the CEO of Jackson Health System (JHS), Penny Shaffer, a senior administrator with Florida Blue Insurance, and Betsy Marville, RN, a senior nurse’s union representative.

Shaffer said the law was evolving and while the original bill Congress passed and signed by Obama is around 2,000 to 2,500 pages long, the regulations and guidelines will be over 100,000 pages, and “the regulations are not fully promulgated yet.” She noted that the rules are coming out in “troughs of 1,000 pages” at a time out of Washington, one such set of rules came in on the “eve of Thanksgiving” and another more recent set of documents became available “this past Sunday night,” Shaffer said. She noted nationwide something had to be done since healthcare costs were eating into the nation’s GDP to the tune of 18 percent and the “duplication of tests and defensive medicine alone is costing the nation some $124 billion,” she said.

Keeley, who runs the largest not-for-profit health system in South Florida with well over 15,000 employees and hospitals and emergency and primary care clinics in Monroe, Broward and Miami-Dade County said he is “a strong advocate of universal care” and he believed it was a “moral imperative” in the richest country in the world to have “universal healthcare.” He noted the current system has patients in medical distress going to a hospital’s emergency rooms and “these people are treated in the most expensive way,” and is one of the drivers of healthcare costs. The administrator of Baptist Health for decades noted the cost for healthcare in America “is twice as expensive as other advanced countries in the world,” and when it comes to Obamacare. “Nothing has really happened yet,” and he noted, “The rubber meets the road in 2014,” when it comes to this new federal legislation.

Keeley also said given the size of the problem of the uninsured that could top “47 to 50 million” people, and while the new federal program would allow roughly 30 million of this group to get health insurance. The legislation does nothing for the healthcare needs and costs of “the undocumented [alien residents] who are not covered,” and are illegal immigrants (And a significant cost here in Miami-Dade and JHS spends tens of millions of dollars on these around seven percent undocumented and uncompensated patients). Though out west four or five states like California, Arizona and Texas get federal funding relief for their undocumented Mexican residents that present at hospitals. He noted that at Baptist Health over ten years ago they established a program for employee “wellness” and living a healthy lifestyle in their attempt to keep them healthy but also to blunt the cost of covering these peoples healthcare insurance. He said the thrust of healthcare in the future is “real heavy duty on prevention,” and primary care and also includes “chronic disease management.” He also said the political stalemate in Washington D.C. was not making enacting this legislation any easier for hospitals and the kicking in of the Sequester on Friday showed what a “dysfunctional political system,” the nation’s capital’s leaders had become. In addition, he believed the new law was a “great opportunity to change and improve healthcare” and the “game is going to change,” Keeley said.

Migoya, running the largest public hospital system in the state said 35 percent of the health system’s patients “are Medicaid and this is the largest concentration of this population in Florida.” But he noted these payments are at a fixed level of $2,500 per day per patient, whether the person is being treated for “a gallbladder or getting brain surgery.” The former banker who took over the reins of the $1.8 billion organization in the spring of 2010 noted with Obamacare and the Sequester kicking in. The hospital documents show is expected to lose $290 million in federal funding over the next ten years, Sequester will cut another $30.6 million and in total, the cuts will eliminate $334.6 million in the future. Migoya said at the state level the goal through managed care companies is to “drive down the costs,” and that will have a negative impact “on doctors and hospitals.” He said while Gov. Rick Scott wants to participate in Obamacare for the first three years with the Medicare expansion in the state. It’s “not his choice to make,” and it is the legislature that will make that call and the CEO feels “the House side is still not interested in the Medicaid expansion.” And he foresaw in the future that JHS “would lose not only $100 million” in state funding but another “$75 million” in public funding, and the only way for safety net hospitals to survive was to “manage costs better,” and any health system has to be “the most efficient and attractive to managed care companies,” if these hospitals are going to get these insured patients sent to their hospitals.

Marville said she “wanted to talk about the human side,” of the uninsured and noted “a lot of our workers are low pay,” and if people “qualify for Medicaid it is good for hospitals and the right thing to do,” the nurse said. She pointed out with the expected “800,000 uninsured expansion” in Florida. Studies show it will help keep kids healthier because “children of medically insured parents are more likely to get healthcare” and she believes “$100 million would be saved by Florida’s Medicaid expansion,” which is a “huge savings,” and access “to healthcare is access to prevention,” she closed.

Sen. Garcia joked he had “no clue” what was going to happen in Tallahassee but “We have to do something,” with the Senate more willing than the Florida House legislators. The former state representative before joining the Senate in 2010 said since Medicaid is one-third of the budget (About $21 billion) there must “be some kind of Medicaid reform.” He noted that “many managed care” activities are “so fragmented” and “multiple tests are being ordered” and these unnecessary tests “all adds to the cost of Medicaid,” he said. The healthcare administrator in his day job also asks if the program is opened up over the 3 million people currently in it and we “expand Medicaid, what happens to them with three million people already getting Medicaid, do they get less?”  He also noted when it comes to keeping the state’s population healthy that there “are not enough primary doctors,” and what “happens to the system if we flood it” with a host of new patients since “the infrastructure is not in place.”

Garcia also asked if the state did participate in the Medicaid expansion that has the federal government picking up the cost the first three years. “What happens in years four, five, and six, and is the state going to have the resources” to cover these costs and will the “cost savings associated” with this materialize and he believes these savings “could be a wash and are inflated.” He said the Senate has taken the position of “let’s have the conversation,” on this very serious issue and it will involve “community residents, hospitals and we are taking a serious look.” However, Garcia said “The House was taking a different look” and he hopes the lower body will “take the position to seriously look at it versus no.” However, he does believe “at the end of the day the Senate and House will come to some kind of resolution,” the veteran lawmaker closed.

>>> State Rep. Nunez tapped for PHT Nominating Council

The Miami-Dade County Delegation Chair state Rep. Eddie Gonzalez, R-Hialeah has selected state Rep. Jeanette Nunez, R-Miami to represent the body on the Public Health Trust Nominating Council. Nunez, a former Jackson Health System legislative representative in the state capital before running for office in 2010 is knowledgeable on the issues facing a Medicaid expansion and its impact to JHS and other public hospitals throughout the state. She currently is an employee of Kendall Regional Medical Center owned by HCA, a private hospital chain.

>>> The FRB members elected Steven Nuell Monday as its new secretary of the board and the job is heavy on administrative duties and is more than might first meet the eye. Nuell, an attorney has been on the FRB for a number of years and has been an active member in the past with the Jackson Memorial Foundation.

CITY OF MIAMI

>>> Chair Sarnoff questions why commission auditor Guba slow to audit five key privately run city assets and there rent payments

Ted Guba, CPA the Miami Commission Auditor was summoned to city hall during Thursday’s commission meeting after Commission Chair Marc Sarnoff asked for an explanation why the office had not done audits on the top five city assets that are leased out and included the Grove Harbour Marina Contract. The commission had asked this to be looked at months ago and Sarnoff was surprised the audits had been delayed since the auditor worked for the body. And he also took a dig at the office, created by city voters in 2001. The commissioner said he would like to have any reports issued at least “ten minutes” after The Miami Herald gets them and he gets a subsequent call from the city of Miami beat reporter for the paper. Sarnoff further said he did not want to know or instruct Guba what he should audit, clearly believing that could politicize the process in a town where everything is political and payback is a standard operateing procedure. But Sarnoff also wanted an answer to the delay.

However, Guba is in a job that is politically difficult and the office periodically draws the ire of commissioners and his predecessor Victor Igwe, CPA, was forced to wait long hours at meetings before the commission asked for his comments and he was in the cross hairs of Sarnoff a few years ago before his departure. And when Igwe fainted at one meeting, Sarnoff noted dryly. “He does that all the time,” as people tried to revive the man but it demonstrated the commissioner’s attitude.  Of the man who periodically issued some scathing audits but did not brief commissioners on the contents until they saw it in the press. But overall, since the office was created the commission auditors have brought a host of problems to light and it is one of those jobs where many times it is a double-edged sword, especially when it comes to the political minefield of Miami commission politics.

>>> Press release: Governor Rick Scott announced the reappointment of Marco A. Lopez to the Florida State Boxing Commission.

Lopez, 45, of Miami, is the vice president of Cambridge Security Services. He is reappointed for a term beginning February 25, 2013, and ending September 30, 2016. The appointment is subject to confirmation by the Florida Senate.

CITY OF MIAMI BEACH

>>> 101 municipal managers in three counties gave Beach Mgr. job a miss, not a resume builder for commission & mayor

When it comes to the people that applied to be the new city manager of Miami Beach, considered a great job among municipal managers, one glaring fact emerges. And that is not one municipal manager or assistant manager in Palm Beach, Broward and Miami-Dade County applied for the high profile position and is considered a plum job in comparison to some other South Florida cities. In Dade, there are 34 municipalities, Broward 31, and there are 36 of them in Palm Beach County and one insider suggested the lack of these people applying just shows how senior professional administrators from outside Miami Beach view the commission and mayor. They suggested last week to the Watchdog Report.

In addition to this lack of managers applying, the one outsider in the race Monica Cepero has now dropped out as a candidate and an assistant Broward County manager for the top job.  Which now leaves only locals Jimmy Morales and Frank Rollason in the hunt? And critics say it empirically validates that theory about the dysfunction of the current city commission where a couple of commission seats are up as well as mayor in November and these political races are expected to verbally bleed over on the dais. >>>Here are the profiles on the two remaining candidates. Rollason: http://www.miamiherald.com/2013/02/22/3247827/miami-beach-city-manager-finalists.html >> Morales http://www.miamiherald.com/2013/02/22/3247829/miami-beach-city-manager-finalist.html

>>> Tuesday Morning Breakfast Club – Meeting Date: March 5th, 2013 – Meeting Time: 8:30 AM Meeting Place: New Location:  David’s One, corner of Collins Ave. and 11th Street – Beach Commissioner Deede Weithorn, the newly elected President of the Miami-Dade League of Cities, will be the guest speaker at the March 5th meeting of the Tuesday Morning Breakfast Club. Ms. Weithorn is a Miami Beach City Commissioner.  She has just returned from a Washington DC meeting of the League of Cities and we can look forward to a report on the efforts of the organization. There is no charge for attending and everyone is welcome.

CITY OF CORAL GABLES

>>> Miami Dolphins Rep. Bach-Armas makes $400 million Sun Life renovation pitch at Ponce Business luncheon Monday

The Miami Dolphins representatives are continuing their public relations offensive to get the public to buy into supporting the $400 million renovation of Sun Life Stadium needed the team believes to continue to secure NFL Super Bowls and its 50th in 2016. Marcus Bach-Armas, the team’s manager of Corporate Affairs is speaking Monday at the Ponce Business Association at John Martin’s restaurant at noon and any residents interested in the issue should check out the event. The professional football team is getting headwinds against the effort, and has vocal critic Norman Braman calling it Miami Marlins II.  After the baseball team got a sweetheart deal from Miami-Dade County and the City of Miami leaders and has residents outraged at the deal and its $2.5 billion cost after the financing of the bonds used to build the baseball stadium in Little Havana is factored in.

However, the Dolphins say this is a different deal, the team owner Stephen Ross is putting up over half of the cost and tourist taxes would pay for the public financing component that also includes a break on state taxes that would have to be approved by the state legislature. And negotiations are ongoing with Miami-Dade Mayor Carlos Gimenez and the team’s management, but the mayor in the past has said he wants the team “to carry the water” with the public, and the team now wants a referendum on the matter be taken before a late May vote by the NFL on what city to locate the 2016 Super Bowl that has Miami competing with San Francisco for the nod.

>>> This is a big week coming up for the Ponce Business Association.  All the hard work for many of the members will hopefully pay off this week.  Upcoming events are for March 4th at John Martin’s from 12:00 to 1:00 and March 7 at the Coral Gables Congregational Church from 7:00 to 8:30 PM.

March 4, We will have the Dolphins come speak about the Stadium issue. Marcus Bach-Armas, Esq. is the Manager of Corporate Affairs for the Dolphins. He is entering his fourth season with the team. Born and raised in Miami, Florida, Marcus graduated from Wesleyan University in Middletown, Connecticut, where he majored in International Relations.  He went on to receive his J.D. from the University of Michigan, where he also earned a Masters in Sports Management.

After representing a number of professional swimmers in connection with the 2008 Olympic Games, Marcus returned to Miami in 2008 and joined the law firm of Holland & Knight as a commercial litigator.  In 2009, Marcus left Holland & Knight to serve as a law clerk to U.S. District Judge Alan Gold before joining the Miami Dolphins. Marcus lives in Miami with his wife, Lara, who is an attorney with the law firm of Weil, Gotshal & Manges.

>>> Commission candidate debate for Group III seat on the dais March 7.

>>> PAST WDR:  With winner take all race, Group (III) race with five candidates, victor may win with small majority of Gables voters

With the Apr. 9 election drawing closer and the Feb. 22 qualifying date past, the races for Coral Gables Mayor and two commission seats is set. The city clerk’s election webpage lists only Mayor Jim Cason and Commissioner Ralph Cabrera, Jr., running for the top spot on the dais that pays $34,736 and in two commission seat races for the vacated Group (II) and the Group (III) seat for the first spot on the dais there is Marlin Holland Ebbert, Ross Hancock and Vincente Carlos Lago running.

And for the latter Group (III) commission seat, the packed field includes Jackson “Rip” Holmes, Patricia A. Keon, P.J. Mitchell, Norman Anthony Newell and Mary Martin Young in a winner take all race. A commissioner is paid $28,225 and serves a four-year term to the mayor’s term that is every two years. That fact is important for the commission races especially in the Group (III) race. For with five candidates, whoever wins will likely have well less than a majority of the potential 29,355 registered voters as of Jun. 2012 that turn out for the election. Here is the latest campaign report information http://www.gableshomepage.com/2013/01/14/gables-candidates-report-over-334000-in-donations-loans/

CITY OF NORTH MIAMI BEACH

>>> Owner of North Miami Beach Dry Cleaner Sentenced in Identity Theft Tax Refund Fraud Scheme

Press release: Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, and Larry Gomer, Interim Chief, North Miami Beach Police Department (NMBPD), announce the sentencing of defendant Frantz Auguste, 53, of Sunny Isles, on one count of access device fraud and one count of aggravated identity theft in connection with an identity theft tax refund fraud scheme.   U.S. District Judge Donald L. Graham sentenced Auguste to 45 months in prison, to be followed by one year of supervised release.

According to documents filed in Court, law enforcement searched Auguste’’s dry cleaning business in North Miami Beach on October 4, 2012, and found the following in a locked room for which Auguste had the only key:

Handwritten notes and lists with the personal identification information, including names, dates of birth, and Social Security numbers, of approximately 100 individuals.  Several of these lists appeared to have originated from a local nursing home and rehabilitation center. >>> Multiple tax refund checks in different individuals’ names. >>> Multiple tax returns in different individuals’ names.  >> Mr. Ferrer commended the investigative efforts of IRS-CID and the NMBPD for their work on the case.  The case was prosecuted by Assistant U.S. Attorney Michael N. Berger. 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 NORTH MIAMI

>>> North Miami Resident Pleads Guilty to Identity Theft

Press release: Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced today announced that Josue Faustin, 20, of North Miami, pled guilty this morning to charges of possession of unauthorized access devices and aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(3) and 1028A(a)(1), (b), and (c)(4). Sentencing has been scheduled for May 9, 2013, before U.S. District Judge Zloch.  At sentencing, the defendant faces a maximum statutory sentence of up to 10 years in prison for the possession of unauthorized access devices charge, and a mandatory sentence of 2 years’ imprisonment on the aggravated identity theft charge.

According to documents filed and statements made in court, Faustin engaged in a scheme using stolen identities to file fraudulent tax returns.  The tax returns falsely claimed refunds and requested that the refunds be direct-deposited into Netspend debit card accounts, which Faustin had opened in the names of unwitting identity theft victims.  Faustin subsequently went to various ATM machines in Coral Springs, Broward County, and withdrew funds from the Netspend debit card accounts. On May 17, 2012, Faustin was observed by a Coral Springs police officer as he went to various CVS and 7-11 stores and bought pre-paid credit cards.  After the purchases, Faustin went to ATM machines and withdrew money.  Faustin was pulled over for a traffic stop and was found to be in possession of $5,881 in cash (separated into numerous bundles), 3 cell phones, 15 Netspend debit cards, and 4 newly purchased debit cards. >> Mr. Ferrer commended the investigative efforts of IRS-CI.  The case is being prosecuted by Assistant U.S. Attorney Jennifer Keene. 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 AVENTURA

>>> Former Fortune 500 Top Executive of Miami Beach Manufacturing

Company Pleads Guilty in Multi-Million Dollar Investment Scheme

Press release: Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Claudio Eleazar Osorio, a/k/a “Claudio Osorio Rodriguez,” 54, of Aventura, pled guilty on February 28, 2013, before U.S. District Court Judge William Dimitrouleas.  Osorio pled guilty to two counts of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h).

Sentencing has been scheduled for May 9, 2013.  At sentencing, Osorio faces a maximum possible statutory sentence of up to 20 years in prison on each of the wire fraud conspiracies and 10 years in prison on the conspiracy to commit money laundering.

According to documents filed with the court and statements made in court during the plea, Osorio was the owner and majority shareholder of Innovida Holdings, LLC, a Florida limited liability company, located in Miami Beach.  Innovida manufactured fiber composite panels for the construction industry for use in residential, commercial, governmental, and other structures without the need for cement, steel or wood.  Innovida purported to be a rapidly expanding and financially strong international operation with facilities in the United States, the United Arab Emirates, Germany, Angola, Tanzania, and other countries.

According to statements made in court, between March 2007 and March 2011, Osorio offered and sold shareholder interests and joint-venture partnerships in Innovida to select individuals and groups, raising more than $40,000,000 from approximately ten (10) investors and investment groups in the United States and abroad.  Osorio solicited and recruited investors by making materially false representations and concealing and omitting material facts regarding, among other things, the profitability of the company, the rates of return on investment funds, the use of investors’ funds and the existence of a pending lucrative contract with a third-party entity.  Osorio received moneys from investors based on these misrepresentations.  Osorio used investor monies for his and his co-conspirators’ personal benefit and to maintain and further the fraud scheme.

According to statements made in court, the second conspiracy to commit wire fraud related to a $10,000,000 loan that Osorio and another applied for and obtained a from the Overseas Private Investment Corporation (“OPIC”), a U.S. government agency that promotes U.S. government investments abroad to foster the development and growth of free markets.  The purported purpose of the loan was to build a manufacturing facility and 500 homes in Haiti (“the Haiti project”) for displaced families in the aftermath of the January 2010 earthquake.  Osorio  and others made materially false representations and omissions concerning, among other things, the profitability of Innovida, the purported use of the loan proceeds, an equity contribution to be made by Innovida, and contracts that Innovida purportedly had obtained with third-party vendors.  Osorio used the OPIC loan proceeds to repay investors and for his and his co-conspirators’ personal benefit and to further the fraud scheme. Mr. Ferrer commended the investigative efforts of the FBI.  The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers. 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.

>>> OTHER STORIES AROUND FLORIDA

BROWARD COUNTY

>>> Broward Man Sentenced in Identity Theft Tax Refund Fraud Scheme

Press release: Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service, Miami Division, announce the sentencing of defendant Luis Enrique Ledee Bernard, a/k/a “Luis L. Bernard,” 21, of Miramar.  Bernard was sentenced to 30 months in prison, to be followed by 3 years of supervised release. The defendant was also ordered to pay $22,000 in restitution. Bernard pled guilty on December 17, 2012 to one count of theft of government funds and one count of aggravated identity theft. On October 9, 2012, the defendant was charged in a seventeen count indictment in connection with a scheme to obtain fraudulent tax return proceeds.  According to the indictment, the defendant deposited nine (9) fraudulent tax refund checks that were fraudulently obtained by using the stolen personal identification information of at least (4) persons who were deceased.  The proceeds from the nine fraudulent tax return refunds were direct-deposited into the defendant’s bank account.

Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the U.S. Postal Inspection Service and IRS-CI.  The case is being prosecuted by Assistant U.S. Attorney Gera Peoples. 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.

CITY OF FORT LAUDERDALE

>>> Ft. Lauderdale Man Convicted of Money Laundering and Obstruction of Justice in Connection with MBC Fraud

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that, after a four-week trial before U.S. District Judge Kathleen M. Williams, a federal jury sitting in Miami convicted defendant Steven Steiner, a/k/a “Steven Steinger,” 60, on 19 of 54 counts, including conspiracy to commit money laundering offenses, money laundering, conspiracy to commit offenses against the United States, and various obstruction of justice offenses, relating to Steiner’s participation in a scheme to launder and conceal more than $15 million in proceeds derived from the Mutual Benefits Corporation (“MBC”) fraud, and Steiner’s obstruction of United States Securities and Exchange Commission (“SEC”), the court-appointed receiver for MBC, and the United States District Court, in their efforts to secure and recover assets traceable to the fraud.  Co-defendant Henry Fecker, III was acquitted on all charges.  Steiner is scheduled to be sentenced by Judge Williams on May 8, 2013.

According to the evidence presented at trial, from approximately 1994 to May 2004, MBC purchased life insurance policies from persons suffering from AIDS, chronically ill, and elderly persons.  Having purchased the life insurance policies, MBC sold fractionalized interests in the death benefits, known as “viatical settlements,” to approximately 30,000 investors.  In promotional materials, MBC told investors that its viatical settlements offered a fixed rate of return with low risk, and that investors’ principal and returns were paid by the insurance companies.  Evidence at trial established that MBC misrepresented various material facts relating to its viatical settlements, including, for example, the estimated life expectancies of the insured persons, MBC’s title to certain life insurance policies, the risks associated with certain policies, the payment of premiums, and the source of funds used to pay investors.  Witnesses testified that new investor money was used to pay premiums on life insurance policies purchased by earlier investors and to pay investors who requested their money back.  The evidence established that as the fraud continued, investor money was required to prevent the MBC Ponzi-scheme from collapsing. Ultimately, investors lost more than $750 million. Steiner was a founder, principal, and Vice President of MBC, and he received more than $15 million in proceeds from the MBC fraud through two shell corporations that he controlled,  Camden Consulting, Inc., and SKS Consulting, Inc.

In May 2004, the SEC filed a civil enforcement action in the United States District Court for the Southern District of Florida, SEC v. Mutual Benefits Corp., et al., Case No. 04-60573-CIV-MORENO (the “SEC Fraud Action”), against MBC and various “relief defendants,” including Steiner’s shell corporations.  On May 4, 2004, United States District Judge Federico A. Moreno entered an order appointing Coral Gables attorney Roberto Martinez as the receiver for MBC, with the mandate to identify, secure, trace, and recover the assets of MBC. According to evidence presented at trial, the jury found that, following the closure of MBC and the appointment of the MBC receiver, Steiner engaged in money laundering transactions designed to conceal the source, location, ownership, and control of his proceeds from the MBC fraud.  At the same time, Steiner acted to obstruct the SEC, the MBC receiver, and the United States District Court.

Evidence at trial also disclosed that in 2006 and early 2007, Steiner submitted false and misleading financial disclosure documents to the SEC to persuade the SEC to agree to a favorable settlement of the SEC claims against him and his shell corporations Camden Consulting and SKS Consulting, in the SEC Fraud Action.  Based upon Steiner’s fraudulent financial disclosure, the SEC agreed to a reduced penalty of $3.9 million, and on April 10, 2007, the District Court entered a Final Judgment in the SEC Fraud Action ordering Steiner, SKS and Camden to pay $3.9 million to the court-appointed receiver for MBC.  Evidence at trial established that Steiner acted to thwart the MBC receiver’s efforts to trace and recover MBC assets and recover on the final judgment.  Among other things, Steiner repeatedly lied under oath during depositions and physically concealed documents, including checks representing proceeds from the MBC fraud. Steiner is currently awaiting trial in two related cases in the Southern District of Florida.  In United States v. Joel Steinger, et al., Case No. 08-21158-CR-Scola, Steiner and co-defendants Joel Steinger and Anthony Livoti are charged with conspiracy to commit mail and wire fraud and money laundering, in relation to the MBC fraud scheme.  In United States v. Joel Steinger et al., Case No. 12-20123-CR-Rosenbaum, Steiner, Joel Steinger, and Henry Fecker III are charged with engaging in a multi-million dollar scheme to defraud insurance companies. >>> Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI.  This case is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Dwayne E. Williams. 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.

>>> 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.

CITY OF BOCA RATON

>>> Gov. Scott reappointments of Joseph R. Boyd and Tamara J. McKee to the Florida Real Estate Appraisal Board.

Boyd, 43, of Tallahassee, is a partner at Boyd, Durant and Sliger PL. He is reappointed for a term beginning February 28, 2013, and ending October 31, 2016.

McKee, 42, of Boca Raton, is a self-employed actress. She is reappointed for a term beginning February 28, 2013, and ending October 31, 2016. >>> The appointments are subject to confirmation by the Florida Senate.

MARTIN COUNTY

>>> Press release: Gov. Scott makes two appointments and one reappointment to the Criminal Justice Standards and Training Commission.

William R. Weiss, 45, of Stuart, is a deputy sheriff at the Martin County Sheriff’s Office. He succeeds John J. Rivera, and is appointed for a term beginning February 28, 2013, and ending August 25, 2016.

Matthew L. Williams, 43, of Middleburg, is a deputy sheriff at the Clay County Sheriff’s Office. He succeeds Nelson D. Cuba, and is appointed for a term beginning February 28, 2013, and ending August 1, 2013.

Kathleen A. Connell, 45, of Tallahassee, is a police officer at the Tallahassee Police Department. She is reappointed for a term beginning February 28, 2013, and ending August 1, 2016.

ALACHUA COUNTY

>>> Press release: Gov. Scott taps Brian Leslie to the Gainesville-Alachua County Regional Airport Authority.

Leslie, 46, of Gainesville, is the executive vice president of Charles Perry Construction Inc. He succeeds Roderick Gonzalez and is appointed for a term beginning March 1, 2013, and ending July 31, 2014.

EDITORIAL

>>> How indiscriminate is Sequester, $436 million in IRS cuts reduce tax revenue by $1.7 billion alone this year

With President Barack Obama signing the paperwork kicking in the federal Sequester cuts Friday night, the expected slow hemorrhaging of federal funds too pay social services and the military has begun and while some are predicating taking a meat ax to the spending for federal programs is the wrong way to do it and cuts should be made surgically. That did not happen when the agreement was crafted in 2011 and now across the whole federal system and its workers some $85 billion in cuts have to be made over the year and this slow bleed has a host of blow back consequences including for the Internal Revenue Service that brings in the cash to pay for federal services and programs and the U.S. debt now around $16.3 trillion. U.S.A. Today www.usatoday.com on Friday noted with sequester, the IRS will lose some $436 million in funding and past studies have shown for every dollar spent on enforcement by the federal agency. The IRS brings in $4.00 more than the $1.00 spent and in this case the nation will lose roughly $1.7 billion in tax revenue during this period state’s the national daily paper.

And that is just one example of what the broad federal cuts will do and while in the scheme of things the IRS example it is just a drop in the bucket. The fact the IRS will feel this pinch at a time revenue generation is a key component to working our way out of the nation’s debt shows the flaw in the legislation and the failure of the Congress and White House to come to an agreement. The president and Democrats blame the GOP House for the stalemate and the Republicans are blaming Obama and the Democratic Party controlled Senate, but nothing is being done and preliminary talks either focus on the draconian nature of the cuts or the fact the administration while talking increased taxes will not make the necessary cuts in the federal entitlement programs and defense and homeland security spending.

And this political impasse must be resolved and done in a variety of ways that includes more accountability of how federal dollars are spent and the attendant frauds from Medicare to the proverbial $400.00 toilet seat in military planes heard about in the 1970s. For taxpayers and Americans want a resolution and end to the political posturing for the nation’s debt continues to grow while the economy limps along and while the economy around the nation is better than during the Great Recession in 2008, there is still much mending of the job market especially that still must be done. Moreover, this stalemate in the nation’s capital just makes that job and economic recovery more difficult.

LETTERS

>>> Reader corrects WDR, Miami employees not in FL Retirement System

Those City of Miami employees are not in the State of Florida DROP – they are in the city’s retirement program DROP.
Scott Mendelsberg

>>> LIFETIME FOUNDING MEMBERS & INITIAL SPONSORS IN 2000

ANGEL ESPINOSA – (Deceased) owner COCONUT GROVE DRY CLEANER’S

HUGH CULVERHOUSE, Jr.

THE MIAMI HERALD     www.miamiherald.com (2000-2008)

ARTHUR HERTZ

WILLIAM HUGGETT, Seamen Attorney (Deceased)

ALFRED NOVAK

LINDA E. RICKER (Deceased)

JOHN S. and JAMES L. KNIGHT FOUNDATION  www.knightfoundation.org

THE HONORABLE STANLEY G. TATE

>>> Watchdog Report supporters – $2,000 a year

BADIA SPICES    www.badiaspices.com

FLORIDA POWER & LIGHT www.fpl.com

RONALD HALL

MIAMI-DADE COUNTY www.miamidade.gov

UNITED WAY OF MIAMI-DADE COUNTY www.unitedwaymiamidade.org

>>> Watchdog Report supporters – $1,000 a year

AKERMAN SENTERFITT   www.akerman.com

BERKOWITZ POLLACK BRANT Advisors and Accountants www.bpbcpa.com

RON BOOK

LINDA MURPHY: Gave a new laptop in Oct. 2001 to keep me going.

WILLIAM PALMER www.shutts.com

SHUBIN & BASS     www.shubinbass.com

>>> Public, Educational & Social institutions – subscribers at $1,000 or less

CAMILLUS HOUSE, INC.   www.camillushouse.org

CITY OF MIAMI www.miamigov.com.

CITY OF CORAL GABLES www.coralgables.com

CITY OF MIAMI BEACH www.miamibeachfl.gov

COMMUNITY PARTNERSHIP FOR HOMELESS www.cph.org

THE STATE OF FLORIDA www.myflorida.gov

GREATOR MIAMI CHAMBER OF COMMERCE www.miamichamber.com

GREATER MIAMI CONVENTION & VISITORS BUREAU www.miamiandbeaches.com

HEALTH FOUNDATION OF SOUTH FLORIDA  www.hfsf.org

MIAMI-DADE COUNTY COMMISSION   www.miamidade.gov

MIAMI-DADE COMMISSION OFFICE OF THE CHAIR www.miamidade.gov

MIAMI-DADE COUNTY ETHICS & PUBLIC TRUST COMMISSION www.miamidade.gov/ethics

MIAMI-DADE COUNTY INSPECTOR GENERAL www.miamidade.gov/ig

MIAMI-DADE PUBLIC SCHOOLS BOARD www.dadeschools.net

MIAMI-DADE PUBLIC SCHOOLS www.dadeschools.net

PUBLIC HEALTH TRUST & JACKSON HEALTH SYSTEM www.jhsmiami.org

THE BEACON COUNCIL   www.beaconcouncil.com

THE CHILDREN’S TRUST www.thechildrenstrust.org

THE MIAMI-DADE COUNTY LEAGUE OF CITIES www.mdclc.org

THE MIAMI FOUNDATION  www.miamifoundation.org

UNITED STATES OF AMERICA    http://www.firstgov.gov/

UNIVERSITY OF MIAMI             www.miami.edu

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 13^th 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 600 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 www.watchdogreport.net

Est. 05.05.00

Copyright © of original material, 2013, Daniel A. Ricker

>>> 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 >>> >>> To read the full section large two page front page story, but without the photos and smart box graphics, go to: `I Go When You Cannot’ – Sun Sentinel 20 Jan 2003 … Sometimes Dan Ricker lives in the dark so others may live in the light. … to his weekly Watchdog Report have finally mailed their checks. … http://articles.sun-sentinel.com/2003-01-20/news/0301190341_1_ricker-school-board-president-miami-s-first-cuban-american >>>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 >>> 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.

General subscriber’s names will not be published in the Report. To subscribe to the Watchdog Report please use the form below as a subscription invoice.

********************************************************************

Watchdog Report Supporters Invoice-Form

NOTE: Invoice is for Yearly supporter/sponsorship Rates: Thank you.

Supporting Sponsors $5,000

Sustaining Sponsors $2,000

Corporate Sponsors $1,000 (All levels above will be listed in the report with web-site link if desired)

Large Business Supporters $500

Small Business Supporters $250

Individual Supporter $150

Student Supporter $ 75

Any amount $

Name & Address

Please make checks payable to: Daniel A. Ricker

Send to: 3109 Grand Avenue, #125

Miami, FL 33133 To contact the Publisher please e-mail watchdogreport1@earthlink.net