Watchdog Report Vol.15 No.7 June 29, 2014 EST.05.05.00 – I go when you cannot – Celebrating 15 Years

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  www.miami.edu to maintain my webpage. The Watchdog Report webpage is free, has no pops-up and is just the news in a mainstream reporting manner.

ARGUS REPORT – Heard, Seen on the Street >> Good Government Initiative takes up local VA problems with panel of experts at Beacon Council function. The Good Government Initiative and the Miami-Dade Beacon Council are holding a discussion on the Miami VA and given the millions of veterans that were promised healthcare for their service to the nation after fighting in two wars over the past 13 years it is sure to be an interesting discussion that already cost the department’s Secretary his job. The VA responds that veterans get only the best medical care but here in Miami a number of patients got colonoscopies from equipment that was not properly cleaned a few years ago and the latest scandal involved long waiting lists for people needing treatment and ultimately cost the Secretary his job and below is the information on the meeting and panel discussion. http://www.nbcnews.com/storyline/va-hospital-scandal An ACCESS Series Event | Thursday, August 28 | promptly at 8 am The Beacon Council | 80 SW 8th Street, Suite 2400, Miami, FL

>>>> Defendant Charged in Investment Scam Yielding Millions of Dollars from Investors –and Miami Heat Tickets

Press release: Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Haider Zafar, 36, formerly of Miami-Dade County, has been charged with five counts of wire fraud in connection with an investment scam that yielded millions of dollars from investors and Miami Heat premium ticket package.

If convicted, Zafar faces a maximum penalty of 20 years in prison on each wire fraud count.

According to the indictment, Zafar would introduce and portray himself as Haider Zafar Haswhani, a member of a wealthy and influential Pakistani family that operated several hotels, including the Marriott Hotel bombed in Islamabad, Pakistan, textile plants and oil businesses. He claimed he lived in a penthouse in The Essex house in New York, but also had residences at The Setai, the Mondrian, and 10 Museum Park, across the street from the American Airlines Arena. In approximately October of 2012, Zafar approached a Miami Heat sales executive and said he wanted to purchase a premium three-season ticket package, which would cost $1,055,000, along with other items related to the Miami Heat and games played at the American Airlines Arena. He was provided the package in anticipation of later payment.

Shortly thereafter, and using this same identity, the indictment alleges Zafar obtained a loan and millions of dollars from investors wanting to invest in an investment opportunity he proposed to them. Zafar, according to the indictment, never invested anything, and instead used the money provided for personal expenses and to pay a portion of what was owed for the Miami Heat tickets. Though at the time of this offense Zafar was living in Miami-Dade County, Zafar is presently incarcerated in Ohio awaiting sentencing on federal fraud charges theorem. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Luis M. Pérez.

An indictment is only an accusation and a defendant is presumed innocent until and unless proven guilty. 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.

FLORIDA

>>>> Now there are now two, Gov. Scott and Crist to face off in November General Election, money is abundant, how low will they go in negative campaigns?

With the Florida Democratic Party Primary over and former Gov. Charlie Crist beating challenger former state Sen. Nan Rich, D-Weston in the primary Tuesday the race is set and Gov. Rick Scott and the GOP are rolling out new campaign attack ads linking Crist to former Ponzi attorney Scott Rothstein and his claim that he tried to influence the governor regarding judicial appointments that Crist says is not true and he was as fooled as everyone else when it came to Rothstein and his scam that has him serving years in federal prison with the convictions continuing by federal authorities.

However, Scott is expected to raise around $100 million for his campaign and Crist should have around $50 million but since both men have extensive public records the variety of attack ads will be plentiful and Scott is already rolling out some new ads saying Crist could be bought when it came to judicial appointees though that claim has yet to be validated. Further, Scott once again is getting ink for not following the state’s Sunshine Law and emails and texts are emerging regarding Scott’s desire to put a park around the governor’s mansion and it is another example of him skirting the state’s Sunshine law and is contrary to Scott’s pledge to be the most transparent governor in the state’s history but he has failed to follow through on that promise while being in office. Further, Scott is also promising to push $1 billion in tax cuts that will need Legislative approval to fire up his base in Florida. And Crist will also need a big voter turnout in Miami-Dade and Broward to win,http://www.miamiherald.com/2014/08/29/4316878/gov-rick-scott-promises-1-billion.html

Crist

Scott

>>>> M-DC Clerk Ruvin in the spotlight elected in 1992, net worth in 2011 $1.45 million, climbs to $1.55 million in 2012, residence accounts for most of increase valued at $1.72 million

Miami-Dade County Clerk Harvey Ruvin is in the spotlight this week and the long serving Clerk was first elected in 1992 and he has gone unchallenged many times since then. Ruvin has historically been the point of the spear when it comes to the environment, global warming and protecting the environment and he has headed up a variety of Task Forces on the issue and its impacts to Miami-Dade in the decades to come. The Clerk’s webpage: The Miami-Dade County Clerk is a duly elected constitutional officer as mandated by Article V, Section 16 of the Constitution of the State of Florida. The Clerk is elected to a four-year term by the electorate of Miami-Dade County. The Honorable Harvey Ruvin was elected to the Office of the Clerk in November, 1992 and has been re-elected since then. The responsibilities of the Clerk are established by the State Constitution, the Florida State Statutes, County Ordinances and Regulations and Judicial Orders. In this capacity he serves as:Ex-Officio Clerk of the Board of County Commissioners, County Auditor, Custodian of all County Funds, Custodian of all records filed with the Court. The Clerk is assisted in fulfilling his duties by Senior Deputy Clerks, Division Chiefs, and a staff of more than fourteen hundred full and part-time employees. The Clerk’s Office is dedicated to providing support to the court system and professional service to the public, the judiciary, the legal community and the County Commission.

The Clerk’s Office is committed to enhancing the level of efficiency in its services and access to the public. In facing the confines of limited resources, and ever-increasing emphasis will be given to new innovative technologies which will enable staff to “work smarter, not harder” and perform in a more cost-effective manner.

Ruvin has also expanded the use of electronic court documents and for more on the office go to http://www.miami-dadeclerk.com/ and here is an editorial by Ruvin: http://www.miamiherald.com/2014/08/30/4317163/we-cant-delay-the-fight-against.html

Ruvin

What do we know about his finances?

Ruvin in Dec. 2011 had a net worth of $1.45 million and in 2012 it goes to $1.55 million with his residency accounting for most of the increase since it is now worth $1.72 million and his salary for the year was $222,443 state’s this year’s financial disclosure form on file with the state. He filed gift disclosure forms but there were no significant gifts listed for the year.

What about the new county civil court House?

There is a move afoot to replace the old County Civil Court House built in1928 and the proposed cost is estimated at some $540 million but some County Commissioners are balking at the proposed cost that could be funded by county debt now at $1.2 billion and that debt includes bond money voters passed for Jackson Hospital, $830 million, and $1.2 billion for upgrades to the public schools district and there is a debate if county voters should be asked to approve this new bonding that courthouse advocates say leaks constantly has mold and is sorely needed given the deterioration of the old Historic building on Flagler Street in downtown Miami. http://www.miamiherald.com/2014/08/28/4314886/new-miami-dade-civil-courthouse.html

MIAMI-DADE COUNTY

>>>> Commission races result in upset with Levine Cava ousting incumbent Bell in tough cash rich race, and Monestime fights off former Commissioner Rolle to retain his seat by wide margin, Souto and Diaz cruise to victory as well

GOP Political elected officials and operatives came out in droves in the race for the District 8, seat a south Dade District that stretches from PInecrest to Homestead but GOP supporters failed to turnout in big numbers and Levine was assisted by Democratic County Party operatives and a variety of county unions who are bristling under the budget cuts of Republican Mayor Carlos Gimenez who was supporting Bell and the race is another loss for a Gimenez Political ally. Political neophyte Levine Cava however ran a spirited campaign against incumbent Lynda Bell, a race with partisan overtones and Bell was swept into office in 2010 thanks to the winds of the tea party movement back then that have since dissipated and though assisted by GOP supported candidates. Levine’s victory has changed the dynamics on the 13 member commission that has rebuked union demands in the past but that may no longer be the case with Cava at the dais, though she will not be there for the September public budget hearings when Bell will still be at the dais for the budget vote. However, Cava ran a straight forward campaign along with the help of the District’s former Commissioner Katy Sorenson who vacated the office back in 2010.

Monestime victory deprived the ethically challenged former Commissioner Dorrin Rolle a seat back on the commission and Monestime has been a hands on commissioner who deserved to be reelected even though he was portrayed in the press as being soft spoken, but the Haitian American man can come out swinging if he has to in the rough and tumble commission chambers and he showed that side of himself at the commission redistricting hearings last year and he is not a pushover and likes to hear both sides of an issue before he votes, and does not abuse the trappings of power that so many commissioners drink deep from and he is a family man and is very accessible to his constiuents.

However, Cava has been a high profile CEO of a social service agency called Catalyst Miami and she was able to raise enough money to run an effective campaign against Bell a former Mayor of Homestead her name recognition and power of the incumbent was not enough to keep her in the office that pays $6,000 a year and another some $45,000 in benefits. And Cava is expected to be her own voice on the dais and is a Yale University graduate and attorney.

Further Commissioner Javier Souto and Jose “Pepe” Diaz were reelected after brushing aside two neophyte candidates and Souto is the longest serving member of the 13 member commission.

Monestime

Bell

Diaz

Souto

What happened at a commission committee meeting earlier in the week?

A County Commission Committee last week passed an ordinance requiring low voltage lighting systems in pools after a young boy was electrocuted and multiple commissioners sponsored the legislation that also had numerous public speakers applauding the move to the county’s building code.

>>>> STATEMENT FROM MIAMI-DADE COUNTY MAYOR CARLOS A. GIMENEZ on Union negotiations

Press release: “Today, my administration and the leadership of the American Federation of State, County and Municipal Employees A.F.L.–C.I.O., (AFSCME), Local 199 have reached tentative agreements, which are subject to ratification by their members.

“With approximately 9,000 employees represented by AFSCME 199, roughly 15,000 Miami-Dade County employees are now covered by this tentative agreement that allows for a cost of living adjustments based on the excess in growth of property tax rolls. It also includes the option to choose the SELECT plan, a new insurance option which can potentially save Miami-Dade County approximately $15 million per year in healthcare costs.

“Once again, I want to thank the leadership of Local 199 for joining our GSA, Solid Waste and Aviation unions in sitting down with my administration to craft responsible solutions to our budgetary challenges.

“I know that working together, we can all find innovative ways to responsibly manage Miami-Dade County’s future employee costs while remaining committed to ensuring that our government is more efficient in its use of hard earned taxpayer dollars.”

>>>> GMCVB press release: Demand for travel to Greater Miami & The Beaches hit a new record for January – July 2014, ranking #4 in Revenue Per Available Room (RevPAR), #4 in Average Daily Room Rate (ADR) and #4 in Hotel Room Occupancy Among the Top 25 U.S. markets.

Record January – July 2014 Average Revenue Per Available Room (RevPAR) Market Rate % Change vs. 2013 1. New York $203.12 +2.2% 2. Oahu Island $184.91 +5.3% 3. San Francisco $164.77 +13.6% 4. Miami $156.92 +6.1% 5. Boston $126.70 +11.2% Average Daily Room Rate (ADR) Market Rate % Change vs. 2013 1. New York $244.13 +2.1% 2. Oahu Island $218.39 +5.2% 3. San Francisco $198.05 +11.3% 4. Miami $195.02 +5.2% 5. Boston $170.50 +7.1%

CITY OF MIAMI BEACH

Congratulations, Miami Beach voters have closed the term limit loop hole that restricts elected officials running again for an office after six years in office, such as mayor and the language is now clarified to end that possibility in the future.

>>>> Press release: Tuesday Morning Breakfast Club PRESS RELEASE-Meeting Date: Tuesday, September 2, 2014-Meeting Time: 8:30 AM, Meeting Place: Abuela’s Cuban Kitchen, 1654 Meridian Ave., South Beach On September 2nd School Board member Dr. Martin Karp will be the guest speaker. There is no charge for attending and everyone is welcome. David Kelsey, Moderator. Visit our web site at www.MBTMBC.com (Miami Beach Tuesday Morning Breakfast Club).

CITY OF CORAL GABLES

>>> Now there are five candidates vying to be next city manager, pool of candidates includes some local administrators, but is new blood what the city commission is looking for?

The City Commission is scheduled to meet the five executives who are vying to become the next City Manager of Coral Gables. The final five were carefully chosen by the Citizens’ Advisory Committee following the first round of interviews conducted on August 22. The Citizens’ Advisory Committee was appointed by the City Commission to involve the community in the process to find a permanent City Manager. The finalists being considered for the position of Coral Gables City Manager are:

-James Beard, Chief Financial Officer, City of Atlanta
-Pieter Bockweg, Executive Director, City of Miami’s Omni, Midtown & South East Overtown Park West CRAs
-Yvonne McKinley, former City Manager, City of South Miami and City of Doral
-Arthur Noriega, Chief Executive Officer, Miami Parking Authority
-Alex Rey, Town Manager, Town of Miami Lakes

Interviews with the City Commission are planned for September 12 and 13. Further updates will be provided as details are finalized.

BROWARD COUNTY

>>>>Former CFO of Rothstein, Rosenfeldt and Adler, P.A. Sentenced for

Conspiracy to Launder Money and to Defraud a Financial Institution

Press release: Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Irene Shannon, formerly known as Irene Stay, 50, of Miami, was sentenced today in Miami by U.S. District Judge Ursula Ungaro to five years in prison, to be followed by two years of supervised release.

On May 21, 2014, Shannon pled guilty to conspiracy to commit money laundering and bank fraud, in violation of Title 18, United States Code, Section 371, through the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA). Shannon was the Chief Financial Officer of RRA. In 2009, it was discovered that RRA was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements.

When she entered her guilty plea, Shannon admitted that she oversaw the accounting functions of RRA, including the deposits and withdrawals made by RRA and Rothstein at TD Bank and other financial institutions. In furtherance of the Ponzi scheme, Shannon transferred hundreds of millions of dollars obtained from investors to pay prior investors in the scheme and to supplement and support the operation and activities of RRA, among other purposes. The defendant further admitted that she was well aware that hundreds of millions of dollars were not being held in trust accounts for investors, contrary to what those investors had been told, and that the funds were instead being disbursed to further Rothstein’s fraudulent scheme. The defendant also admitted that she utilized her position to float checks between and among certain bank accounts maintained by RRA in a form of bank fraud commonly known as “check kiting.” Mr. Ferrer commended the investigative efforts of the IRS-CI and FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.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.

PALM BEACH COUNTY

>>>>Seven Defendants Charged in Identity Theft Tax Refund Fraud Scheme

Press release: Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Amos Rojas, Jr., U.S. Marshal, U.S. Marshals Service (USMS), announce the indictment of seven individuals for their roles in a stolen identity tax refund fraud scheme.  The indictment charges defendants Lukner Blanc, 31, of Royal Palm Beach, Frank Fleuzinord, 29, of Cape Coral, Jean Juste, a/k/a “Junior” or “Shorty,” 24, of West Palm Beach, Benoit Placide, a/k/a “Snow” or “Mario,” 26, of West Palm Beach, Shelda Phadael, 28, of Lake Worth, Marie Claude, 25, of Lantana, and Marie Demesyeux, 29, of Lake Worth. Six of the defendants have been arrested. Fleuzinord remains at-large. Defendants Phadael, Claude, and Demesyeux were arraigned today before United States Magistrate Judge Dave Lee Brannon.  All three of the defendants pled not guilty. A trial date has not yet been set. Placide’s arraignment is scheduled for August 26, 2014, Juste’s arraignment is scheduled for August 27, 2014, and Blanc’s arraignment is scheduled for August 28, 2014.

All defendants are charged with one count of conspiracy to receive, conceal and retain monies stolen from the United States, in violation of Title 18, United States Code, Section 371. In addition, Defendant Blanc is charged with three counts of theft of government money, in violation of Title 18, United States Code, Section 641, nine counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), and five counts of wire fraud, in violation of Title 18, United States Code, Section 1343.  Defendant Fleuzinord is charged with two counts of aggravated identity theft.  Defendant Juste was charged with one count of theft of government money, five counts of aggravated identity theft, and five counts of wire fraud.  Defendant Placide is charged with five counts of aggravated identity theft and five counts of wire fraud.  Defendant Phadael is charged with one count of theft of government money.

Defendants Claude and Demesyeux are each charged with one count of perjury, in violation of Title 18, United States Code, Section 1623(a), for making a false statement while testifying under oath before a Federal Grand Jury.

According to court documents, the defendants stole the identities of real persons (names, dates of birth, and Social Security numbers) and used the information to file fraudulent income tax returns online to the IRS. The defendants opened personal bank accounts and purchased debit cards that were utilized to receive the fraudulent income tax refunds. After the fraudulent refunds were sent by wire to the bank accounts and debit cards, the defendants and their co-conspirators withdrew the funds at automatic teller machines (ATMs) and point of sale electronic terminals at various retail establishments. If convicted, the defendants face a maximum of five years in prison for the conspiracy charge, a maximum of ten years in prison for the theft of government money charge, a mandatory term of two years in prison for the aggravated identity theft charge, a maximum of twenty years in prison for the wire fraud charge, and a maximum of five years in prison for the perjury charge.Mr. Ferrer commended the investigative efforts of IRS-CI and the USMS Regional Fugitive Task Force. This case is being prosecuted by Assistant U.S. Attorney Stephen Carlton. An indictment is only an accusation and a defendant is presumed innocent until and unless proven guilty. 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.

MONROE COUNTY

>>> Arrested Monroe school district administrator lands IT job at Keys Aqueduct Authority, uses authority board member as reference, Authority had controversies in the past when it came to benefits for senior management.

The former Monroe County Superintendent of schools who was arrested a few years back and went to jail is now working for the Florida Keys Aqueduct Authority. And the organization was extensively covered by the Watchdog Report years ago because top senior executives received generous benefits  and was only  revealed after a state audit was done of the Authority created around 1934 and controls the bulk of the infrastructure used in the Keys. http://keysnews.com/node/57671

The Florida Keys Aqueduct Authority (FKADA) has hired the former disgraced Monroe Superintendent of Schools who went to prison. The FKADA years ago was extensively covered by the Watchdog Report because of the unusual perks included in senior management’s compensation packages, like lifetime health insurance for them and their families, revealed in the state audit.

MIAMI-DADE COUNTY PUBLIC SCHOOLS

WLRN Host Kelley Mitchell discusses GOB projects with Superintendent Alberto M. Carvalho, Chief Facilities Officer Jaime Torrens and Economic Development Officer Brian Williams at first Town Hall meeting.

PUBLIC HEALTH TRUST

>>>> New FIU Wertheim medical school admits 125 new students says Dean Rock, highly diverse class with 80 percent of students from Florida and 79 percent from S. Florida

FIU Herbert Wertheim Medical School Dean John Rock, M.D. told the PHT board at the monthly meeting that the medical school welcomed 125 new medical students for the year and the goal next year is to have a class with 480 students, and 80 percent of the applicants were from the state of Florida and 80 percent were from South Florida he told the board. He said the class was highly diverse with 43 percent of the applicants Hispanic, 14 percent were Afro American, 28 percent were Asian and 25 percent were Caucasian, he said.

CITY OF MIAMI

>>>>Tax Return Preparers Charged in Fraudulent Refund Scheme

Press release: Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Ronald A. Cimino, Deputy Assistant Attorney General of the Justice Department’s Tax Division, and Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Claudia Zuloaga, 43, and Sharon Elizabeth Angulo, 49, both of Miami, have been charged in a 32 count indictment with one count of conspiring to defraud the United States, in violation of Title 18, United States Code, Section 371, and 20 and 11 counts, respectively, of assisting in the preparation of false federal income tax returns, in violation of Title 26, United States Code, Section 7206(2). If convicted, the defendants face a maximum of five years in prison on the conspiracy count and a maximum of three years in prison on each of the Title 26 counts. According to the indictment, beginning in approximately September 2008 and continuing through September 2012, the defendants jointly operated a tax preparation business from offices located at 18710 SW 107^th Avenue, Miami, Florida. The indictment further alleges that Zuloaga and Angulo recruited clients by falsely representing that they could eliminate a substantial portion of their debts by obtaining sizable tax refunds for them. As alleged in the indictment, this would be accomplished through false and fraudulent tax returns which the defendants would prepare for each client in exchange for fees usually amounting to 30percent of the tax refunds fraudulently obtained and totaled in excess of $250,000 from those clients who were successful in receiving fraudulently obtained refunds.As further alleged in the indictment, the tax returns prepared by the defendants falsely set forth that certain financial institutions had withheld sizable amounts of tax from falsely declared interest income earned from these same financial institutions. Through this fraudulent mechanism, each return gave the false appearance of entitling the client to a significant tax refund due to over-withholding of tax payments in connection with their claimed interest earnings. In addition, the indictment alleges that, in order to provide false substantiation for these fraudulent tax refund claims, the defendants caused fictitious IRS Forms 1099-OID to be created which set forth the false interest and tax withholding amounts fraudulently reported upon their clients’ tax returns.The indictment also alleges that Zuloaga and Angulo promoted the fictitious “redemption theory” to their clients as the purported justification for their fraudulent tax refund claims. Through this promotion, clients were falsely informed that the submission of tax returns in this manner allowed their clients to legitimately access large amounts of money allegedly contained in certain non-existent “straw man” accounts which the defendants claimed were being maintained by the United States Treasury for each individual who possessed a Social Security number. As part of the conspiracy, Zuloaga and Angulo are also alleged to have engaged in various acts designed to prevent the IRS from investigating their fraudulent activities and collecting the repayment of any tax refunds falsely and fraudulently obtained. These acts included the submission of numerous false documents on behalf of both their clients and themselves which were designed to obstruct the IRS from taking investigative and enforcement actions against their clients and themselves.Mr. Ferrer commended the investigative efforts of the IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Peter B. Outerbridge and the department’s Tax Division Trial Attorney Alexander Effendi. An indictment is only an accusation and a defendant is presumed innocent until and unless proven guilty. 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.

What about the Civilian Investigative Panel meeting this past week?

A panel of five residents reviewing what has been going on at the CIP that Miami Commissioner’s have called “dysfunctional” and is chaired by Israel Reyes, a retired Circuit Court Judge heard a mixed bag of testimony Thursday afternoon and one issue has surfaced concerning the Independent Council role at the CIP attorney Charles Mays and his negotiated “agreement” that the Watchdog Report is being told is around $175,000 but I could not confirm if that is per month or yearly and an e-mail to the Miami manager last week on the subject went unanswered by my deadline.

CITY of HIALEAH

>>>> Owner of Home Health Care Company Sentenced to Nearly Six Years in Prison for Role in $6 Million Medicare Fraud Scheme

Press release: A co-owner of Professional Medical Home Health LLC was sentenced today to serve 70 months in prison and ordered to pay $6.2 million in restitution for her participation in a health care fraud scheme involving the now defunct home health care company.

U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Acting Special Agent in Charge Reginald France of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office made the announcement.  U.S. District Judge Federico A. Moreno of the Southern District of Florida imposed the sentence.

According to court documents, Annarella Garcia, 44, of Hialeah, Florida, was a co-owner of Professional Medical Home Health, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries.  Between December 2008 and February 2014, Garcia and others engaged in a scheme to bill the Medicare Program for expensive physical therapy and home health care services that were not medically necessary or were not provided.  During that time, Professional Medical Home Health was paid approximately $6.25 million by Medicare for the fraudulent claims. Specifically, Garcia and her co-conspirators paid kickbacks and bribes to patient recruiters in return for their providing patients to Professional Medical Home Health for home health and therapy services that were not medically necessary or were not provided.  In furtherance of the scheme, Garcia and her co-conspirators falsified patient documentation to make it appear that beneficiaries qualified for and received home health care services, when, in fact, many of the beneficiaries did not actually qualify for such services and did not receive such services. Garcia pleaded guilty to conspiracy to commit health care fraud on June 25, 2014.

The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.  This case is being prosecuted by Trial Attorneys A. Brendan Stewart and Anne P. McNamara of the Criminal Division’s Fraud Section. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion.  In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are 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.

CITY OF HOMESTEAD

Homestead Resident Sentenced in Identity Theft Tax Refund Fraud Scheme

Press release: Wilfredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that Mark Anthony Dacres, Jr., 30, of Homestead, was sentenced today before U.S. District Judge Ursula Ungaro to 81 months in prison, to be followed by three years of supervised release.  Dacres was also ordered to pay $34,920.00 in restitution.Dacres previously pled guilty to one count of possessing fifteen or more unauthorized access devices (social security numbers), in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).

According to court documents, special agents executed a search warrant at the residence where Dacres stayed and found numerous prepaid debit cards, printed lists, handwritten notes/papers and books containing the names, date of births, and social security numbers of at least 1,750 individuals. Eighty-five tax returns were filed from the IP address registered to the residence using the names and social security numbers of individuals found on the printed lists and handwritten notes/papers. IRS-CI special agents contacted six of these eighty-five taxpayers and all six taxpayers stated that they did not know Dacres, that they did not authorize Dacres to possess their names, date of births, and social security numbers, and that they did not authorize Dacres to file federal tax returns for the 2013 tax year using their names and social security numbers.Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to IRS-CI and the USSS. The case was prosecuted by Assistant U.S. Attorney Gera R. 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.

BROWARD COUNTY

>>>> Tax Return Preparers Charged in Fraudulent Refund Scheme

Press release: Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Ronald A. Cimino, Deputy Assistant Attorney General of the Justice Department’s Tax Division, and Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Claudia Zuloaga, 43, and Sharon Elizabeth Angulo, 49, both of Miami, have been charged in a 32 count indictment with one count of conspiring to defraud the United States, in violation of Title 18, United States Code, Section 371, and 20 and 11 counts, respectively, of assisting in the preparation of false federal income tax returns, in violation of Title 26, United States Code, Section 7206(2).If convicted, the defendants face a maximum of five years in prison on the conspiracy count and a maximum of three years in prison on each of the Title 26 counts.

According to the indictment, beginning in approximately September 2008 and continuing through September 2012, the defendants jointly operated a tax preparation business from offices located at 18710 SW 107^th Avenue, Miami, Florida. The indictment further alleges that Zuloaga and Angulo recruited clients by falsely representing that they could eliminate a substantial portion of their debts by obtaining sizable tax refunds for them. As alleged in the indictment, this would be accomplished through false and fraudulent tax returns which the defendants would prepare for each client in exchange for fees usually amounting to 30percent of the tax refunds fraudulently obtained and totaled in excess of $250,000 from those clients who were successful in receiving fraudulently obtained refunds. As further alleged in the indictment, the tax returns prepared by the defendants falsely set forth that certain financial institutions had withheld sizable amounts of tax from falsely declared interest income earned from these same financial institutions. Through this fraudulent mechanism, each return gave the false appearance of entitling the client to a significant tax refund due to over-withholding of tax payments in connection with their claimed interest earnings. In addition, the indictment alleges that, in order to provide false substantiation for these fraudulent tax refund claims, the defendants caused fictitious IRS Forms 1099-OID to be created which set forth the false interest and tax withholding amounts fraudulently reported upon their clients’ tax returns. The indictment also alleges that Zuloaga and Angulo promoted the fictitious “redemption theory” to their clients as the purported justification for their fraudulent tax refund claims. Through this promotion, clients were falsely informed that the submission of tax returns in this manner allowed their clients to legitimately access large amounts of money allegedly contained in certain non-existent “straw man” accounts which the defendants claimed were being maintained by the United States Treasury for each individual who possessed a Social Security number. As part of the conspiracy, Zuloaga and Angulo are also alleged to have engaged in various acts designed to prevent the IRS from investigating their fraudulent activities and collecting the repayment of any tax refunds falsely and fraudulently obtained. These acts included the submission of numerous false documents on behalf of both their clients and themselves which were designed to obstruct the IRS from taking investigative and enforcement actions against their clients and themselves.Mr. Ferrer commended the investigative efforts of the IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Peter B. Outerbridge and the department’s Tax Division Trial Attorney Alexander Effendi. An indictment is only an accusation and a defendant is presumed innocent until and unless proven guilty. 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.

PALM BEACH COUNTY

Seven Defendants Charged in Identity Theft Tax Refund Fraud Scheme

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Amos Rojas, Jr., U.S. Marshal, U.S. Marshals Service (USMS), announce the indictment of seven individuals for their roles in a stolen identity tax refund fraud scheme.  The indictment charges defendants Lukner Blanc, 31, of Royal Palm Beach, Frank Fleuzinord, 29, of Cape Coral, Jean Juste, a/k/a “Junior” or “Shorty,” 24, of West Palm Beach, Benoit Placide, a/k/a “Snow” or “Mario,” 26, of West Palm Beach, Shelda Phadael, 28, of Lake Worth, Marie Claude, 25, of Lantana, and Marie Demesyeux, 29, of Lake Worth. Six of the defendants have been arrested. Fleuzinord remains at-large.

Defendants Phadael, Claude, and Demesyeux were arraigned today before United States Magistrate Judge Dave Lee Brannon.  All three of the defendants pled not guilty. A trial date has not yet been set. Placide’s arraignment is scheduled for August 26, 2014, Juste’s arraignment is scheduled for August 27, 2014, and Blanc’s arraignment is scheduled for August 28, 2014.

All defendants are charged with one count of conspiracy to receive, conceal and retain monies stolen from the United States, in violation of Title 18, United States Code, Section 371.

In addition, Defendant Blanc is charged with three counts of theft of government money, in violation of Title 18, United States Code, Section 641, nine counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), and five counts of wire fraud, in violation of Title 18, United States Code, Section 1343.  Defendant Fleuzinord is charged with two counts of aggravated identity theft.  Defendant Juste was charged with one count of theft of government money, five counts of aggravated identity theft, and five counts of wire fraud.  Defendant Placide is charged with five counts of aggravated identity theft and five counts of wire fraud.  Defendant Phadael is charged with one count of theft of government money.

Defendants Claude and Demesyeux are each charged with one count of perjury, in violation of Title 18, United States Code, Section 1623(a), for making a false statement while testifying under oath before a Federal Grand Jury.

According to court documents, the defendants stole the identities of real persons (names, dates of birth, and Social Security numbers) and used the information to file fraudulent income tax returns online to the IRS. The defendants opened personal bank accounts and purchased debit cards that were utilized to receive the fraudulent income tax refunds. After the fraudulent refunds were sent by wire to the bank accounts and debit cards, the defendants and their co-conspirators withdrew the funds at automatic teller machines (ATMs) and point of sale electronic terminals at various retail establishments.If convicted, the defendants face a maximum of five years in prison for the conspiracy charge, a maximum of ten years in prison for the theft of government money charge, a mandatory term of two years in prison for the aggravated identity theft charge, a maximum of twenty years in prison for the wire fraud charge, and a maximum of five years in prison for the perjury charge.Mr. Ferrer commended the investigative efforts of IRS-CI and the USMS Regional Fugitive Task Force. This case is being prosecuted by Assistant U.S. Attorney Stephen Carlton. An indictment is only an accusation and a defendant is presumed innocent until and unless proven guilty. 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.

MONROE COUNTY

>>>> Arrested Monroe school district administrator lands IT job at Keys Aqueduct Authority, uses authority board member as reference, Authority had controversies in the past when it came to benefits for senior management.

The former Superintendent of schools Randy Acevedo who was arrested and went to jail is now working for the Florida Keys Aqueduct Authority, as a IT specialist and is being paid $45,379 and he listed one of the FKAA board members as a reference,  and the organization was extensively covered by the Watchdog Report years ago because  executives received generous benefits senior management was getting and was only revealed after a state audit was done on the Authority created around 1934 and controls the bulk of the infrastructure used in the Florida Keys.

http://keysnews.com/node/57671

EDITORIALS

>>>> Miami-Dade County should video tape some procurement meetings, especially bid protests, an audio tape will not tell whether a hearing judge is “awake, dozing, or full asleep,” like what happened years ago when a four-hour dispute occurred regarding a shrink wrap contract at MIA years ago

A extended commission debate of whether procurement meetings should be tape recorded or videotaped had Commissioner Sally Heyman saying that an audio recording should be enough (And all the law says is “that it is recorded” and does not say “how or “video”,) she said, and that she found the Sunshine Meeting requirements as being excessive and did not want to put any extra burden on the county administration.

However, Heyman seems to have forgotten that in 1999 there was a four-hour meeting and debate concerning the MIA shrink wrap contract and there was an extensive debate whether the hearing judge hearing the protest when the contract was being challenged was “awake, dozing or full asleep” and that is when then Commission Chair Gwen Margolis suggested these type of meetings should be video recorded and Heyman to be fair was elected in 20002 so she was not there but videotaping a meeting is not that big of a deal and she should back off because an audio tape will not show what the hearing judge might or might not be doing and it is a small cost in the scheme of things if commissioner’s want true transparency and they should insist these procurement proceedings be videotaped to avoid such a painful reoccurrence and confusion regarding what went on at these high profile contentious meetings.

What about the digital divide among many Miami-Dade residents?

Many public and not for profit institutions are asking for major IT skills to apply for programs or special low income programs and some of these people may not have computers, or are ill and cannot navigate some of these technical dilemmas and public staff should be available to assist in this effort. For since my stroke I am finding some of these forms and applications difficult to navigate and fill out to comply to such programs and institutions should be receptive to some of these technological limitations for if you are poor, you likely will not have access to the internet or a computer and going to a public library may not be in the cards given some people’s medical condition and large organizations should take into consideration some of these roadblocks, especially the Public Health Trust.

LETTERS

>>>> Yesterday there was a packed room for the Mayor’s Press conference…

to hear that there will be no more police layoffs — as well as Sunday Library hours, and a sustainable budget for the Library…Should the $54 million dollar Library budget be approved by the Commission, Mayor Gimenez said- “If it is the will of the Commissioners- and if it is the will of the people– and that’s what it looks like– then I don’t see any issue. It is sustainable. But it’s not over yet. We’re trying very hard not to lose the ground we’ve achieved….There is a final reading of the budget on Sept 4 with a final commission vote on the budget on the 18th. We’re hoping to receive a copy of the $54 million dollar budget today….If you would like to speak with someone from the Save the Library Coalition about the upcoming budget talks and vote, please let me know.

With the community’s help, we might be able to secure a $54 mil budget for the library a library system that can serve the community in all of its diversity! Thanks again, I look forward to speaking with you soon,

Lisa

>>>.I am in Singapore and just heard the news about your medical (The stroke) condition. Please take care of yourself and know that we are praying for you. I return early next week and hope to see you soon.PS. smoking cessation program begins immediately! If I can kick it, so can you!

>>>>Letter from Grove activist Amandi on attending Miami Public budget hearing meeting asking for more police for the city

Please read and respond to this important message.

As I mentioned in my previous note below, we have a golden opportunity in less than two weeks to take the next step in making the City of Miami a much safer place by asking our City leaders for the addition of 100 new officers to the Police Department. To ensure that we get the 100 new officers your physical presence at the September 9th budget meeting, when the decision will be made, is critical. Adding the 100 new officers will not only help to bolster this trend prioritizing public safety that we experienced last year in Coconut Grove, but also have it branch out to the other neighborhoods throughout our City.

How can you help? By committing less than an hour of your time to attend this meeting in person. This is, without question, the single most important meeting any resident of the Grove or the City concerned about crime can attend this year. If you are willing to show up to this decisive meeting, please respond to this email with a simple,

So, when is the meeting?

Tuesday, September 9th – 5:05 PM

At the Commission Chambers inside Miami City Hall

3500 Pan American Drive
Coconut Grove, FL 33133

Fernand R. Amandi

Publisher’s Statement on the mission of the Watchdog Report and the special people and organizations that make it possible:  Government Subscribers/Corporate Subscribers/Sustaining Sponsors/Supporting Sponsors

***** LIFETIME FOUNDING MEMBERS & Initial sponsors since 2000

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

HUGH CULVERHOUSE, Jr.

THE MIAMI HERALD www.miamiherald.com

ARTHUR HERTZ

WILLIAM HUGGETT, Seamen Attorney (Deceased)

ALFRED NOVAK

LINDA E. RICKER (Deceased)

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

THE HONORABLE STANLEY TATE

***** Watchdog Report supporters – $2,000 or more a year

BERKOWITZ DICK POLLACK & BRANT www.bdpb.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

ABELE REALTY GROUP, LLC — Mr. CHARLES R. ABELE, Jr.

BARRETO * MAY & ASSOCIATES

BEACON COUNCIL www.beaconcouncil.com

BILTMORE HOTEL www.biltmorehotel.com

RON BOOK

BRUCE W. & The Honorable EVELYN LANGLIEB GREER

LINDA MURPHY (Not Current)

WILLIAM PALMER

PUBLIC HEALTH TRUST & JACKSON HEALTH SYSTEM www.um-jmh.org

REGIONS BANK www.regionsbank.com

RBB PUBLIC RELATIONS www.rbbpr.com

SHUBIN & BASS www.shubinbass.com

THE CHILDREN’S TRUST www.thechildrenstrust.org

UNIVERSITY OF MIAMI www.miami.edu

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

CITY OF CORAL GABLES www.citybeautiful.net

THE STATE OF FLORIDA www.myflorida.gov

MIAMI-DADE COUNTY COMMISSION; OFFICE OF THE CHAIR www.officeofthechair.com

MIAMI-DADE PUBLIC SCHOOLS BOARD www.dadeschoolsnews.net

CITY OF MIAMI BEACH www.miamibeachfl.gov

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

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, 2008, 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 choose 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. The Southern Media Landscape (PDF)  Daniel Ricker.

Tags:

This entry was posted on September 03rd, 2014 and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.