Report: Taxpayer-supported Broward Health engaged in ‘cultural civil war’

By Dan Christensen, FloridaBulldog.org bhcompliance2

The law firm that’s overseeing taxpayer-supported Broward Health’s compliance with conditions imposed by the U.S. last year when it paid $70 million to resolve alleged lawbreaking has concluded the troubled hospital district is in a state of “cultural civil war.”

Baker Donelson was hired in December to serve as the “Independent Review Organization” (IRO) under the terms of a five-year Corporate Integrity Agreement between the North Broward Hospital District (NBHD) – Broward Health’s legal name – and the U.S. Department of Health and Human Services.

The IRO’s 137-page annual report, obtained by Florida Bulldog using Florida’s Public Records Law, lays out what it says are Broward Health’s “numerous systems deficiencies” while also defending itself from anonymous, yet widely distributed accusations that it was not truly independent and was hired thanks to insider connections.

The report, often citing unnamed sources, is highly critical of Broward Health’s recently departed Chief Compliance Officer Donna Lewis for refusing to produce, among other things, requested information about employee complaints. Also singled out for criticism: Broward Health’s Interim CEO Pauline Grant and Chief Information Officer Doris Peek, who, along with Lewis, are accused of planting “negative articles regarding the IRO in the local media.”

Former Broward Health Chief Compliance Officer Donna Lewis

Former Broward Health Chief Compliance Officer Donna Lewis

Grant and Peek both denied the accusation on Sunday. “I never planted any negative articles,” said Grant. Lewis could not be reached for comment.

The report and its exhibits can be downloaded here.

“There has been a pervasive pattern of personal destruction in which former and some current members of the senior management team use public meetings, the media, self-serving reports disguised as work product, and frivolous ‘anonymous’ complaints through the disclosure program as a means to falsely attack the character of, pressure, or aid in the termination of NBHD’s Board of Commissioners, senior management, and others,” the report says. “In other situations, it appears the methods are used to enhance the influence of senior management’s departmental fiefdoms.”

The report goes on to assert that management actions “appear to be routinely based upon self-interest, protection of position and department, not for the betterment of the system.” That “lack of professionalism” fails “not only the patients the system services, but the taxpayers who help fund it.”

Anticipating the report’s release, Broward Health’s board voted last week to authorize management to request up to 60 days to respond to the IRO report which will be sent to a federal monitor and could lead to further government action against Broward Health.

A new CEO coming soon

Who will author the response is unclear. The board recently has interviewed several candidates to become Broward Health’s permanent President/CEO. A meeting to make that selection is set for Oct. 31.

Broward Health, with four hospitals, three outpatient facilities and nearly 9,000 employees all north of Griffin Road, is the ninth-largest public health system in the country. It is a special taxing district overseen by a board of commissioners appointed by the governor.

The report says Broward Health suffers from “operational mismanagement” to include “considerable understaffing” in key areas such as physician services and the compliance and ethics office. Likewise, the report notes, two seats on the governing board of commissioners remain vacant. (On Friday, Gov. Rick Scott appointed Parkland’s Bev Capasso, a former chief executive officer of Jackson Memorial Hospital, to one of those seats.)

The report traces Broward Health’s “cultural war” to the hospital district’s “pervasive physician-centric tradition, in which senior management and staff instinctively defer to physicians, particularly regarding compensation.”

Broward Health Interim CEO Pauline Grant

Broward Health Interim CEO Pauline Grant

Allegedly illegal pay deals between Broward Health and its physicians was the focus of the False Claims Act lawsuit brought by whistleblower Dr. Michael Reilly that led to the $70 million settlement in September 2015. Allegedly violated in the scheme: the Stark Law, which generally prohibits physicians from referring patients to hospitals with whom they have a financial relationship, and the Anti-Kickback Statute, which prohibits paying physicians for healthcare referrals.

Without naming names, the report says some physicians are involved in “repetitive upcoding,” or assigning improper billing codes for medical procedures to increase their Medicare and Medicaid reimbursements. Baker Donelson says it has “encouraged” Broward Health to hire “expert coders” to handle coding for it doctors “to help remove even the appearance of a conflict of interest in coding.”

The report is similarly critical of Broward Health’s “ineffective response to the implementation” of compliance monitoring and auditing procedures, notably the lack of what’s known as a “Focus Arrangements” database that can track government-reimbursed physician referrals and sales.

‘Lack of commitment to compliance’

Baker Donelson’s report, prepared under the direction of attorney J. Scott Newton, accuses Broward Health of a “lack of commitment to compliance” both before and after the embarrassing federal investigation and costly settlement. It says problems began after Lewis was hired as chief compliance officer in April 2011.

One month later, a federal subpoena announced the start of the government’s fraud probe. It sought a multitude of records about physician contracts and other matters, yet appears to have had no “impact whatsoever on the operation or effectiveness of the compliance program,” according to the report.

The report’s litany of deficiencies, however, neglects to note that Broward Health’s compliance troubles pre-date Lewis’ arrival. For example, for more than a decade both management and the board ignored a lobbyist registration policy adopted in 2004. The district finally implemented a policy requiring lobbyists to register last month as a result of a Florida Bulldog story in May.

Baker Donelson’s report praises the “outstanding work” of Broward Health’s controversial General Counsel Lynn Barrett and her Legal Department in making important changes to the district’s poorly crafted compliance program by re-writing its Code of Conduct and ethics policies. The problem: the implementation of those measures was “seriously deficient in many critically high risk areas,” the report says.

The report, however, makes no mention of various controversies that have swirled around Barrett. They include allegations Barrett improperly attempted to block the public from meetings, steered millions of dollars in legal work to law firms with strong ties to Gov. Scott, and failed to cooperate with the FBI during an ongoing federal grand jury investigation into allegedly corrupt purchasing practices at Broward Health.

The report also details Baker Donelson’s annoyance at an article published in Medicare Compliance Review that “impugned the IRO’s qualifications.” The report suggests Interim CEO Grant, Compliance Chief Lewis and Chief Information Officer Peek planted the story.

A newsletter’s upsetting story

The story apparently at issue was published in June by a newsletter with a different name, Report on Medicare Compliance. Among other things, the story quoted Donna Lewis as criticizing the board’s efforts to identify the author of the anonymous email that raised questions about Baker Donelson’s independence and other matters. She told the newsletter that anonymous allegations are “routine” compliance matters and that the board’s high-profile hunt for the author had “eroded” trust.

“I have never seen a compliance complaint take up so much time from a governing body,” she said.

At a subsequent meeting by Baker Donelson with top Broward Health management, “it was emphatically noted to Grant that what appeared to be senior management-placed negative articles regarding the IRO in the local media would not deter our work. We advised Grant that we did not believe any articles or public comments were made without her authorization.”

The report adds that anonymous employees had told the law firm that Grant, Lewis and Peek “were overheard in Peek’s office discussing” what later became the article.

“Contacting the media, particularly because of the Florida Sunshine law, appears to be used as a common weapon in the cultural war at NBHD as a means of asserting false allegations and/or pressure on those who would refuse to change the culture of corruption,” the report says.

“Here, while it is certainly beyond the scope of our review, the IRO questions whether tax dollars were used to publish the ‘Medicare Compliance Review’ article and if so, if that constitutes an improper misuse of public funds. We will leave that determination for state officials, should they undertake a review.”

The cash-rich pharmaceutical lobby and the rising cost of drugs for Medicare seniors

By Stuart Silverstein, FairWarning 

President George W. Bush signing the Medicare Prescription Drug Improvement and Modernization Act of 2003.

President George W. Bush signing the Medicare Prescription Drug Improvement and Modernization Act of 2003.

When the Republican-controlled Congress approved a landmark program in 2003 to help seniors buy prescription drugs, it slapped on an unusual restriction: The federal government was barred from negotiating cheaper prices for those medicines. Instead, the job of holding down costs was outsourced to the insurance companies delivering the subsidized new coverage, known as Medicare Part D.

The ban on government price bargaining, justified by supporters on free market grounds, has been derided by critics as a giant gift to the drug industry. Democratic lawmakers began introducing bills to free the government to use its vast purchasing power to negotiate better deals even before former President George W. Bush signed the Part D law, known as the Medicare Modernization Act. (more…)

‘We are a law firm’: How telemarketers sold false hope to homeowners struggling to pay mortgages

Broward’s Inspector General probes Hallandale Beach CRA – again

By William Gjebre, FloridaBulldog.org 

Hallandale Beach Mayor Joy Cooper is flanked on the left by Commissioners Keith London and Michele Lazarow and on the right by Commissioners Bill Julian and Anthony Sanders. The commission also sits at the city CRA's board of directors

Hallandale Beach Mayor Joy Cooper is flanked on the left by Commissioners Keith London and Michele Lazarow and on the right by Commissioners Bill Julian and Anthony Sanders. The commission also sits at the city CRA’s board of directors

The Broward County Inspector General’s Office has launched another inquiry into Hallandale Beach’s Community Redevelopment Agency, three years after finding the city “grossly mismanaged” millions of dollars in CRA funds.

The first probe led to reform and a grand theft charge against the director of a local cultural program for misspending CRA grant money. What triggered the new probe, however, isn’t known.

“I cannot comment,” said Inspector General John W. Scott, who leads the independent watchdog agency that investigates allegations of fraud, corruption and gross mismanagement at the county and Broward’s 31 municipalities. He’s asked the city and the CRA to submit the requested information by July 1.

A key focus of the inquiry, however, is the city’s Community Benefit Program (CBP). The program seeks to encourage private development and city-funded projects to recruit, train and hire city residents and local vendors.

Tuesday’s letter to the city from the Inspector General’s Office requested a variety of CRA documents from Jan. 1, 2013 to the present. They include: all voting conflict memos submitted by city commissioners, who also serve for directors of the CRA; the minutes of all city commission and CRA meetings; a list of all bid solicitations with a Community Benefit Program component as well as documentation from vendors identifying specific partners to be engaged in the program.

In addition, Inspector General Scott’s office requested documents related to two groups that received grants from the city and the CRA: the Palms Community Action Coalition and the South Florida Educational Development Center.

The latest inquiry set off another disagreement among city officials.

“While the CBP has good intentions,’’ said City Commissioner Keith London, “it is my belief the program has been hijacked and abused by insiders who have used their power and influence to steer contracts and jobs to unqualified persons and companies for no other reason than their political connections.”

London said residents should “review the voting record of each commissioner who has blindly supported the CBP policy, every CBP expenditure and bid sheet awarding millions of taxpayer dollars to firms whose major qualification was their connection to city hall.”

But Mayor Joy Cooper, who has differed bitterly with London in the past, played down the significance of the IG’s records request.

We have been in compliance”

Cooper cited the city’s Hallandale Opportunity Program that monitors grants and contracts. She said the program’s monthly reports have indicated compliance with city provisions, including by the Community Benefit Program. “We have tightened up” controls over grants and contracts, Cooper said. “We have been in compliance.”

City Manager Daniel Rosemond added the same internal group has monitored city funds going to South Florida Educational Development Center and there have been “no performance issues.”

Rosemond likewise sought to downplay the significance of the Inspector General’s inquiry, observing that he merely asked for some records.

“This is not an investigation,” Rosemond said in an interview, adding “I don’t believe there is anything substantive” to the inquiry, but rather that the IG has received some information and “has a fiduciary responsibility to look at it.”

In an email to commissioners, Rosemond said, “The nature of the [IG] request appears to center around the city’s Community Benefit Program, its administration and recipients.”

Palms Community Action Coalition members could not be reached; South Florida Educational Development Center members did not return calls for comment.

Palms Community Action Coalition (PCAC) is a group attempting to prevent and reduce crime, drug abuse and gang activity. The coalition came under scrutiny during the Broward Inspector General’s previous probe – although there was no finding of wrongdoing. Under a three-year agreement with the city, PCAC has received a total of $306,000.

According to state documents, the South Florida Educational Development Center, established six years ago, is a non-profit group that provides educational job training for youth and adults in underserved areas. It received $45,000 last year and again this year, and will receive the same amount next year under a three-year agreement ending Sept. 30, 2017.

City Commissioner Michele Lazarow said she and Commissioner London have questioned the effectiveness of the Community Benefits Program. In some instances, she said, city funds appeared to be going to only a few groups. There is also concern that some firms receiving city contracts may be having trouble fulfilling promised job slots because there are not enough qualified workers in the city.

A city ‘investigated twice’

“I wonder how many other Broward County cities have been investigated twice,” said Lazarow.

Commissioner Anthony Sanders could not be reached for comment. Vice Mayor Bill Julian said he could not comment because he hadn’t seen the IG’s letter.

In March 2013, after a 14-month investigation, the Inspector General’s Office found $2.2 million in questionable expenditures by the Hallandale Beach CRA between 2007 and 2012, including inappropriate loans and grants to local businesses and non-profits, as well as the improper use of bond proceeds.

The city, the report stated, improperly spent $416,000 in CRA money for parks outside the CRA boundaries. The spending, which was not always documented, was often done at what amounted to the whim of former City Managers Mike Good and Mark Antonio, the report said.

The Hallandale Beach CRA, like other similar agencies in other municipalities, was established under a state law that allows the agency to raise and spend a large portion of increased property tax dollars collected within the CRA’s boundaries on projects aimed at eliminating slum and blight. Nearly 50 percent of those funds come from Broward County, which approved establishment of the agency.

While city officials contended that all expenditures were permissible under state law, the Broward IG cited in its report a 2010 opinion by Florida’s Attorney General that CRA expenditures must be connected to “brick and mortar” capital projects.

At the conclusion of the last investigation, Hallandale Beach officials denied wrongdoing and challenged the authority of the Inspector General to oversee the city’s CRA.

Nevertheless, the city ultimately made changes as a result of the probe that included updating its CRA development plans and adopting procedures for awarding grants. The city also announced plans to repay the CRA for funds used for parks outside the CRA boundaries.

The IG’s finding also led Broward prosecutors to charge Palm Center for the Arts (PCA) director Deborah Brown with grand theft in May 2014. The IG reported finding probable cause to believe that Brown spent nearly $5,000 in CRA funds on herself and her family. The funds were designated by the city in 2010 to send children on a trip to Washington, D.C.

The criminal case remains pending in Broward Circuit Court, with the next hearing set for Sept. 22.

Broward County’s $18.9 million airport flip-flop and a new, secret whistleblower case

By Dan Christensen, FloridaBulldog.org 

The Broward County Commission before Tuesday's vote to pay $18.9 million to settle a dispute with airport contractor Tutor Prerini.

The Broward County Commission before Tuesday’s vote to pay $18.9 million to settle a dispute with airport contractor Tutor Prerini.

With little public discussion, the Broward County Commission has overwhelmingly approved an $18.9-million payout to airport contractor Tutor Perini to settle a bitter dispute about who was to blame for costly construction delays.

Paperwork filed in support of the deal, including the settlement itself, revealed that an unidentified whistleblower recently sued Tutor Perini in circuit court using the Broward County False Claims Ordinance. The whistleblower’s claims are not known, but sources said an unhappy subcontractor filed the complaint. Whistleblowers who help the county recover money lost to fraud or other schemes can recover a reward of up to 25 percent of the proceeds.

Tuesday’s settlement deal, approved in a 6-1 vote, marks an expensive flip-flop by the county from assertions earlier this year by then-Broward aviation department boss Kent George that, in fact, Tutor Perini owed the county more than $34 million for those delays.

George stepped down as aviation director in March, but remains on the county’s payroll until the end of the year. He negotiated the settlement approved Tuesday.

In January, FloridaBulldog.org reported that on New Year’s Eve George had a letter sent to Tutor Perini demanding those damages cover the costs of a dozen “significant … deficiencies and unresolved issues” that seriously delayed completion of the $800-million expanded south runway at Fort Lauderdale-Hollywood International Airport.

“You owe us millions of dollars and now I’m paying you millions of dollars in a settlement?” Commissioner Lois Wexler said Tuesday. “Unless there’s a real explanation as to how it morphed into something else, I’ll be a no vote today.”

County Attorney Joni Armstrong Coffey, who recommended approval of the settlement, offered a brief discussion about that. Coffey indicated the county was responsible for the delays because change orders expanding the scope of Tutor Perini’s work were approved without an appropriate expansion of work days in which to complete it.

A dissatisfied Wexler voted a lonely no.

Tutor Perini, (NYSE: TPC) has contended that the county was to blame for the construction delays. In fact, the county aviation department lost more than a dozen claims adjudicated before a “dispute avoidance panel” established at the project’s outset to resolve disagreements between the county and its runway contractors.

In recommending approval, Coffey warned the county could have as much as $80 million in liability without a settlement.

County ‘probably could win’

Nevertheless, Commissioner Dale Holness said that in private discussions with “our staff and attorneys” he’s been assured the county “probably could win” a lawsuit against the company.

“But they weren’t sure a hundred percent because we had some issues on both sides,” Holness said.

Wexler went further. She said her “lengthy briefings” with staff bore little resemblance to Tuesday’s outcome.

“When Ms. Coffey and Mr. [Michael] Kerr [deputy county attorney] came to my office, they said, ‘Don’t worry, commissioner, we’re going to recoup, we’re going to recoup,’ ” Wexler said. “Now all of a sudden something else comes forward.”

The settlement includes $6.1 million that was approved but never paid to Tutor Perini, plus an additional $12.8 million. No commissioners asked how that figure was arrived at, and county staff did not explain.

The settlement raises the “final” contract amount to $239 million. The original contract award to Tutor Perini for design-build services was $179.9 million. Change orders approved by the county raised that figure to $226.2 million.

The settlement is with the Tutor Perini Fort Lauderdale-Hollywood Joint Venture.

California-based Tutor Perini is the prime consultant for the tunnel structures that carry the expanded and elevated south runway and taxiway over U.S. 1, the Florida East Coast railroad tracks and East Perimeter Road. The venture was also responsible for related construction, including the new southbound airport exit ramp to U.S. 1.

The original contract completion date for the runway project was Feb. 22, 2014. In fact, the runway opened for air traffic in September 2014, and the project was declared “substantially complete” in January 2015.

Still, work at the airport goes on. Today, Tutor Perini is adding decorative and architectural features to the U.S. 1 tunnels – finishing work worth several million dollars. The settlement requires Tutor Perini to finish all remaining work by Aug. 31.

Friction between Tutor Perini and the county isn’t limited to the airport project.

The company is the prime contractor on the new downtown county courthouse, a project that’s a year behind schedule, but is expected to open this summer. The Sun-Sentinel reported last month that a county public works official said Tutor Perini contends the county owes it $11.3 million for extra work.

The airport and courthouse disputes also figure in the selection of a contractor to build a long-sought expansion of the Broward County Convention Center and a next-door hotel on port property. Texas-based developer Matthews Southwest Holdings was accepted for the job in April, but Matthews’ team includes Tutor Perini – a fact that did not go over well at County Hall.

Miami U.S. Attorney’s Office, FBI accused of spying on defense in Medicare fraud case

By Dan Christensen, FloridaBulldog.org 

Judge Cooke has set a June 8 hearing to consider alleged wrongdoing by federal prosecutors and agents.

Judge Cooke has set a June 8 hearing to consider alleged wrongdoing by federal prosecutors and agents.

In a stunning twist in a long-running Medicare fraud case, both the Miami U.S. Attorney’s office and the FBI stand accused of spying on a defendant’s lawyer by illegally and secretly obtaining copies of confidential defense documents.

Court papers filed last week by attorneys for Dr. Salo Schapiro contend the secret practice was not the action of “just one rogue agent or prosecutor.” Rather, it was apparently an “office-wide policy” of both the U.S. Attorney’s Office and the FBI that’s gone on for “at least 10 years.”

The unwritten policy involves “surreptitiously copying defense counsel’s work product through the government-contracted copy service that the government requires defense counsel to use to obtain the discovery documents’’ needed to properly prepare for trial, according to court papers that seek either the dismissal of Schapiro’s indictment or the disqualification of the entire prosecution team.

Miami attorneys Howard Srebnick and Rossana Arteaga-Gomez represent Schapiro and filed the motion, which asserts that the U.S. Attorney’s Office has for several weeks been investigating itself in the matter.

Miami U.S. District Judge Marcia G. Cooke held an initial hearing Tuesday that was continued until June 8 at 1:30 p.m. The judge, in an order, has asked both parties to respond to this extraordinary question: “What remedies, if any, are available to the court were the court to find that the described conduct in defendant Schapiro’s motion is a systemic, consistent and/or pervasive practice of or on behalf of the United States Attorney’s Office?”

A spokeswoman for Miami U.S. Attorney Wifredo Ferrer would not be interviewed. However, late Thursday night prosecutors filed court papers confirming that an internal probe is underway and asserting that defense arguments are “based on erroneous accusations and insinuations.”

Howard Srebnick, left, and James V. Hayes

Howard Srebnick, left, and James V. Hayes

“Despite the charged language this is not a case about intrusion into the attorney-client relationship, eavesdropping or sneaking into the defense camp,” wrote Assistant U.S. Attorney James V. Hayes and Justice Department fraud attorney Lisa H. Miller.

Defense attorney Srebnick did not return a phone call seeking comment.

 Specifically, the court papers allege that Fort Lauderdale-based copying service Imaging Universe and president Ignacio E. Montero provided the government with CDs containing duplicates of documents Schapiro’s defense team culled from 220 boxes of evidentiary records in preparation for trial. Federal agents had seized those records from the mental-health clinic Biscayne Milieu, where Schapiro worked.

“Covertly cloning defense counsel’s work-product to obtain a tactical advantage is nothing short of ‘shocking to the universal sense of justice’ mandated by the Due Process Clause of the Fifth Amendment,” Srebnick and Arteaga-Gomez wrote. “To the extent that the prosecution team can infer from Dr. Schapiro’s selection of discovery documents his thought process, the government has violated his Fifth Amendment right not to be compelled to be a witness against himself. This intrusion into the attorney-client relationship has also violated Dr. Schapiro’s Sixth Amendment right to the effective assistance of counsel.”

The government responds

The government’s Thursday night response acknowledged that Imaging Universe did supply the FBI with duplicate CDs of what the company had copied for Schapiro’s defense team, but said the discs “were never requested by any agent, prosecutor or anyone else on the government’s behalf.”

Prosecutors Hayes and Miller also stated that they were unaware of the duplicate CDs until an FBI agent disclosed their existence in late April. They said that when they found out they immediately told “Montero to stop and began an internal inquiry.”

“To date it has found that there was simply no pervasive practice of receiving or recording defense discovery, and that it was not a widespread or institutionalized practice,” says the government’s response.

Nova Southeastern University constitutional law professor Robert Jarvis was skeptical of the defense’s sensational claims, but said that if the allegations prove true it could upend hundreds of criminal cases, free untold defendants and potentially result in criminal charges against government officials responsible for violating defendants’ rights.

“This opens a huge can of worms,” Jarvis said. “It’s potentially catastrophic for the government and I would think that the [U.S.] Attorney General would be swooping in on this. There are 95 judicial districts. If it happened in this office, you have to wonder if it’s happening in any others.”

Schapiro, 70, Sonia Gallimore, 74, both Broward residents, and Marlene Cesar, 64, of Allentown, PA., were indicted on charges of health care fraud and conspiracy and making false statements in September 2014. According to the indictment, they and other alleged co-conspirators submitted more than $55 million in phony Medicare claims through the Miami clinic, Biscayne Milieu, collecting more than $11 million. Previously, about 25 other owners and employees of the clinic pleaded guilty or were convicted of healthcare fraud.

On Tuesday, attorneys for Gallimore and Cesar filed paperwork seeking dismissal of their charges, claiming their clients’ rights were similarly violated by the alleged scheme.

The defense motion says that between late 2014 and last month, Schapiro’s lawyers repeatedly visited an FBI warehouse in Miramar where discovery documents are kept for review. During Arteaga-Gomez’s first visit to the warehouse federal agents told her that if she wanted to copy any documents she would have to use Imaging Universe, the motion says.

Since the indictment, Imaging Universe has charged Schapiro $8,200 to produce nine sets of discovery documents to his defense team. The motion identifies those records to include a dozen CDs containing approximately 1,140 PDF files, many with multiple pages.

The motion contends that company president Montero “lied” to Arteaga-Gomez about the copying process, and instead of making sure the government did not see the defense’s hand-selected files, provided FBI case agent Deanne Lindsey with duplicate copies.

Montero did not respond to a detailed voicemail message seeking comment.

Prosecutor discloses FBI received defense CDs

Hayes, the federal prosecutor on Schapiro’s case, first informed Srebnick and his associate that agent Lindsey “had been surreptitiously receiving the CDs” on April 22, according to the defense motion.

“Hayes proposed to immediately destroy the CDs,” but the lawyers asked instead that he give them to the defense, “which he did,” the motion says.

Hayes declined to be interviewed about the matter.

Arteaga-Gomez phoned Montero on April 25 to ask who had told him to provide copies of the CDs to the government. Montero, the motion says, answered that an “agent” told his office manager to do it. “Mr. Montero then stated that he had been providing to the U.S. Attorney’s Office for the past 10 years duplicate copies of the discovery documents selected by defense counsel in other cases.”

Montero also forwarded to Schapiro’s defense an April 21 email he sent to a healthcare-fraud paralegal in the U.S. Attorney’s Office, stating that he’d provided the Justice Department with duplicates of defense records “since 2006.” Montero added that both his old company, Xpediacopy, and Imaging Universe had done it.

If so, the alleged government misconduct spanned the administrations of three Miami U.S. Attorneys – Alex Acosta, who served from 2005-2009, Jeffrey Sloman acting U.S. Attorney from 2009-2010 and Wifredo Ferrer, who took over in May 2010.

Srebnick and Arteaga-Gomez wrote that they’ve recently had “multiple conversations” about the matter with Miami federal prosecutors and their supervisors.

“The U.S. Attorney’s Office has admitted that Agent Deanne Lindsey had been receiving copies of the CDs and had been keeping the duplicate CDs in a folder as she received them,” the motion says. Lindsey also “confessed to opening four of those duplicate CDs” looking for files, copying and pasting files onto her own CDs and providing “those new CDs to the government’s expert witness for trial preparation,” the motion says.

The prosecutors’ response sought to cast Lindsey’s contact with the records in less threatening way.

Prosecutors notified the defense last week that Montero had “confessed to lying to Rossana Arteaga-Gomez about the discovery process” in order to hide what was happening, the defense lawyers wrote.

“That the government-contracted copy service misled Ms. Arteaga-Gomez in order to cover-up the office-wide policy makes this case especially egregious,” the motion says.

Details about the size, terms and duration of Imaging Universe’s contract were not immediately available. The prosecutors’ response, however, said the contract is between Imaging Universe and the Government Publishing office.

‘What’s going on?’ Broward airport contractor said to owe millions may win millions instead

By Dan Christensen, FloridaBulldog.org 

Former Broward Aviation Department Director Kent George

Former Broward Aviation Department Director Kent George

Five months after demanding that contractor Tutor Perini pay Broward more than $34 million in damages for costly airport construction delays, ex-county aviation boss Kent George instead wants the county to pay Tutor Perini $18.9 million.

George and new aviation boss Mark Gale will ask Broward commissioners to approve the big payout on Tuesday as part an about-face settlement negotiated by George with the Tutor Perini Fort Lauderdale-Hollywood Venture (TPFLHV).

The proposed settlement would end a bitter, behind-the-scenes fight over who is to blame for numerous pricey construction holdups during the airport’s $800-million south runway expansion project.

George stepped down as aviation director in March and today is a county consultant/negotiator on the matter.

 In January, FloridaBulldog.org reported that on New Year’s Eve George’s representative had dispatched a blunt letter to Tutor Perini demanding in excess of $34 million to cover costs incurred by a dozen “significant…deficiencies and unresolved issues” that had seriously delayed completion of the project.

Tutor Perini’s position: the delays were caused by the aviation department’s “maladministration.”

As recently as three weeks ago, George told the Sun-Sentinel, “We feel they owe us money.”

Out the window

George’s tough public stance went out the window Thursday with the disclosure of his expensive settlement proposal.

An angry County Commissioner Lois Wexler said in an interview Friday that she won’t vote to approve it.

“This has gone from them owing us money to now I’m supposed to pay them money,” said Wexler. “The last I heard was that we’d be recouping all this $34 million in court…What’s going on?”

George hung up on a FloridaBulldog.org reporter seeking comment about the proposed settlement.

The county, however, capitulated to Tutor Perini after the aviation department lost more than a dozen claims adjudicated before a “dispute avoidance panel” established at the outset of the project to resolve disagreements between the county and its runway contractors.

George’s giveaway of the county’s huge claim has come as a shock, however, because it followed repeated assurances to Commissioner Wexler and others that the county would go to court to enforce it.

Nevertheless, George was inclined to settle on terms favorable to Tutor Perini as early as mid-December when he emailed Tutor Perini Chief Executive Jack Frost offering to pay $21 million to settle the dispute if Tutor Perini would pay the airport about $11 million in liquidated damages for contractual delays.

FloridaBulldog.org reported in January that Frost declined the deal, which would have been tantamount to an admission that Tutor Perini was responsible for many delays in the airport project.

The current settlement proposal requires no payment of liquidated damages.

A local Tutor Perini representative declined comment, and Frost did not respond to an email requesting comment.

A prime consultant

California-based Tutor Perini, with venture partner Ohio’s Baker Concrete Construction, is the prime consultant for the tunnel structures that carry Fort Lauderdale-Hollywood International Airport’s expanded and elevated south runway and taxiway over U.S. 1, the Florida East Coast railroad tracks and East Perimeter Road. The venture was also responsible for related construction, including the new southbound airport exit ramp to U.S. 1.

The original contract completion date for the runway project was Feb. 22, 2014. In fact, the runway opened for air traffic in September 2014 and the project was declared “substantially complete” in January 2015.

Still, work at the airport goes on. Today, Tutor Perini is adding decorative and architectural features to the U.S. 1 tunnels – finishing work worth several million dollars.

The cost of the runway expansion project, the centerpiece of $2.4 billion in in ongoing airport terminal and other improvements, continues to rise.

County records say the original contract award to Tutor-Perini for design-build services was $179.9 million. Subsequent approved change orders, including one for $6.1 million executed just before Christmas, raised the contract’s cost to $226.2 million.

The latest “final” contract amount with the settlement: $239 million.

The negotiated settlement includes the $6.1 million that was approved but never paid to Tutor Perini, plus an additional $12.8 million. The county’s agenda item for Tuesday’s meeting does not explain how that figure was arrived at.

The six-page settlement requires Tutor Perini to complete all remaining work by Aug. 31. The county is also required to “promptly” pay what it still owes and to quickly release money, possibly millions of dollars, that it has retained to cover claimed damages.

Auditors: feds failed to rein in billions over-billed by Medicare Advantage plans

By Fred Schulte, Center for Public Integrity 

Carol Berman, of West Palm Beach speaks with pedestrians about the need for policymakers to protect Medicare Advantage benefits during the Coalition for Medicare Choices' Medicare Advantage Food Truck stop on North Capitol Street in Washington on Monday, March 9, 2015. Photo: Bill Clark/CQ Roll Call

Carol Berman, of West Palm Beach speaks with pedestrians about the need for policymakers to protect Medicare Advantage benefits during the Coalition for Medicare Choices’ Medicare Advantage Food Truck stop on North Capitol Street in Washington on Monday, March 9, 2015. Photo: Bill Clark/CQ Roll Call

Private Medicare Advantage plans treating the elderly have over-billed the government by billions of dollars, but rarely been forced to repay the money or face other consequences for their actions, according to a new Congressional audit.

In a sharply critical report made public Monday, the Government Accountability Office called for “fundamental improvements” to curb overbilling by the health plans, which are paid more than $160 billion annually. The privately run plans, an alternative to traditional fee-for-service Medicare,  have proven popular with seniors and have enrolled more than 17 million people. The plans, which were the subject of a Center for Public Integrity investigation, also enjoy strong support in Congress. (more…)

Tired of problems, Fort Lauderdale audits its community redevelopment agencies

By William Gjebre, FloridaBulldog.org cralogo

Fed up with project failures, management problems and possible city overcharges, Fort Lauderdale commissioners have ordered an extensive audit of the city’s Community Redevelopment Agencies.

In a little-noted action, commissioners directed the audit of three CRAs at a conference meeting earlier this year.

The audit was triggered by the million-dollar failure of the Sixth Street Plaza project. Some commissioners expressed additional concerns about the findings of a city auditor’s report on CRAs that they said indicate the city had unfairly overcharged the CRAs for services during the past five years.

Commissioners ordered “a full audit” of the Northwest/Progresso/Flagler Heights (NWP) Community Redevelopment Agency, the Central Beach (CB) CRA and the Central City (CC) CRA, City Auditor John Herbst said in an interview. He said the audit, now under way, may be completed in two months.

Herbst said the audit was undertaken because the city wants to get in front of the matter, knowing the Broward Inspector General’s Office has been investigating CRAs around the county for some time.

Herbst said he expects the audit to determine whether CRA spending was “in compliance with state law and CRA bylaws,” and whether the CRAs were properly managed and contracts adhered to the CRAs’ limitations.

“We want to make sure money was spent in accordance with governing legislation,” Herbst said. The audit will cover the past three years – a reasonable time period, the auditor added.

Fort Lauderdale Commissioner Robert McKinzie

Fort Lauderdale Commissioner Robert McKinzie

Herbst said the troubled Sixth Street Plaza project is a key factor in the ongoing audit. Last May, the city auditor’s office criticized the CRA for poor oversight of a taxpayer-supported office and retail plaza that was to be the centerpiece of the city’s ambitious plans to revitalize the Sistrunk Boulevard corridor.

But the 23,000-square-foot building at 900 NW Sixth St. filed for bankruptcy, jeopardizing the repayment of $1 million in taxpayer loans.

Following that finding, Vice Mayor Robert McKinzie’s staff asked Herbst in a memo to conduct “a complete audit of the day to day operations of the CRA.” Herbst said Mayor Jack Seiler and his fellow commissioners backed the call for the audit in a consensus vote during a city commission conference meeting in January.

‘Inconsistent leadership’

Herbst said the city’s CRAs have had problems because of frequent management shuffling. “There was inconsistent leadership due to transfers,” he said.

A report by his office noted that the Northwest/Progresso/Flagler Heights CRA, in a less-affluent area, was charged $1.7 million for city services over the past five years, while the Central Beach CRA, in a wealthier area, was charged $909,000 during that same period.

The finding upset City Commissioner Dean Trantalis, who said an “excessive amount of money is charged for administration, denying the neighborhood that is suffering blight and neglect and so much money being used for staff.”

Fort Lauderdale Commissioner Dean Trantalis

Fort Lauderdale Commissioner Dean Trantalis

Trantalis said he has asked City Manager Lee Feldman about correcting CRA allocation issues, but “he hasn’t been responding. We need to change the practice. We discovered that the city manager, to shore up the budget, has been attributing staff time to the CRA.”

Feldman did not respond to requests for comment before deadline after promising to make himself available for an interview.

At the city commission meeting in January, others expressed their concern about the auditor’s findings.

Minutes of the meetings say McKinzie “questioned why such a large portion of funds was allocated [to] the [Northwest/Progresso/Flagler Heights] CRA for administration and resources when the CRA did not have a director.”

Commissioner Bruce Roberts suggested the matter be referred to the State Attorney’s Office or some other investigative agency for a criminal probe.

“Many feel CRA funds have been drained for administrative services, and there is a lopsided disparity,” Trantalis said at the January meeting. The mayor and the city’s four commissioners also serve as directors of the CRAs.

Problems found

Herbst’s audit report mainly delved into the current fiscal year salary allocations of the two CRA offices, Northwest/Progresso/Flagler Heights and Central Beach. But it found problems.

“The method used to allocate personnel costs may lead to excessive General Fund expenses being allocated to the CRA, a violation of Florida Statute 163.370(3)(c),” the report stated. The state provision prohibits the tax-increment funds that CRAs receive from covering general government operating expenses unrelated to planning and carrying out a CRA plan.

The report goes on, “We determined that the Department of Sustainable Development (DSD) and the Budget Office were not able to provide adequate support for the percentages used for personnel cost allocations to/from the CRA fund and the sub-funds. Additionally, they are allocating charges to the CRA for personnel positions which are vacant for either a portion of the fiscal year or the entire fiscal year.

“The budgeted allocations are then charged to the CRA throughout the year without reconciling those estimates to actual costs incurred, resulting in an excess of allocation over actual cost,” according to the report.

The faulty allocations can negatively impact the CRAs’ ability to achieve their goals, the report aid.

The city charged the CRAs for hours city employees spent working on agency matters.

In one instance, the report said the Northwest/Progresso/Flagler Heights CRA was “overcharged” $30,000, which should have been charged to the Central Beach CRA. That happened after an employee was promoted from assistant to the city manager to the position of economic and business development manager in charge of the Central Beach CRA. For three months, he was paid from funds allocated to a vacant position in the Northwest/Progresso/Flagler Heights CRA, the report said.

A correction was later made, but “the prior overcharging was not corrected timely” and ate into how much funding was available to meet the CRA’s goals.

Since the report, the city has begun making changes.

Trantalis said in an interview that city commissioners have removed the CRAs from reporting to the Department of Sustainable Development and made them separate entities with their own managers to oversee day-to-day operations. State law requires CRAs to operate independently of other departments.

City Manager Feldman, however, will continue to function as executive director of the CRAs.

Other changes call for improved financial oversight from the city finance director and the city auditor, identifying a separate CRA funding and accounting structure, and allocating additional funds for the two CRAs to implement changes during the current fiscal year.

Broward Health CEO paid hundreds of thousands of dollars in hush money to fired execs

By Dan Christensen and Buddy Nevins, FloridaBulldog.org 

Broward Health Acting President/CEO Kevin Fusco, left, with Interim Chief Financial Officer Arthur Wallace III at a recent board meeting.

Broward Health Acting President/CEO Kevin Fusco, left, with Interim Chief Financial Officer Arthur Wallace III at a recent board meeting.

Acting Broward Health President/CEO Kevin Fusco apparently exceeded his spending authority last month when he signed a deal to pay more than $400,000 in hush money to a district executive who was fired after publicly criticizing a proposed $71.4 million, no-bid advertising contract.

The same day, Fusco signed a second deal to pay the fired chief executive of the district’s Fort Lauderdale flagship, Broward Health Medical Center, $537,000 to go away quietly.

The taxpayer-supported public hospital system’s chief executive is authorized to spend $250,000 on his signature alone; anything above that amount requires the approval of Broward Health’s governing board.

Approval for the costly agreements with ex-Broward Health Chief Financial Officer Robert K. Martin and medical center Chief Executive Officer Calvin Glidewell, however, was neither requested by Fusco nor granted by the board, according to minutes and coverage of board meetings.

Fusco did not respond to requests for comment made over several days.

Fusco inked 10-page separation agreements with Martin and Glidewell on Feb. 5, nine days after being named acting president/CEO in the aftermath of the Jan. 23 suicide of Broward Health boss Dr. Nabil El Sanadi. The contracts bear El Sanadi’s name, but his name was crossed out by Fusco when he signed them following El Sanadi’s death.

Martin’s agreement says he was “terminated” Jan. 7, when El Sanadi was in charge. El Sanadi and a majority of the board supported the proposed contract with Fort Lauderdale’s Zimmerman Advertising.

Ex-Broward Health Medical Center Chief Executive Calvin Glidewell, left, and former Broward Health CFO Robert K. Martin

Ex-Broward Health Medical Center Chief Executive Calvin Glidewell, left, and former Broward Health CFO Robert K. Martin

Under the contract, Broward Health will pay Martin his regular salary of $407,930, or about $196 per hour, through Jan. 7, 2017. Martin also got a lump sum payment of more than $17,000 for approximately 87 hours of accrued personal leave, plus a job-hunting service paid for by Broward Health.

In exchange for the money “to which Martin would not otherwise be entitled,” the agreement required Martin to release Broward Health from any legal claims he might have. He also agreed not to “disparage or adversely affect…or work to the detriment of Broward Health.”

The agreement broadly defines Broward Health to include not just the North Broward Hospital District, its legal name, and all related entities, but “current and former commissioners, directors, officers, employees, successors in interest, attorneys, representatives and agents.”

“Martin hereby represents that he has no knowledge of wrongdoing on the part of Broward Health or conduct that might adversely affect Broward Health or any issue of potential liability to Broward Health,” the agreement says.

BREACHES WOULD END PAYMENTS

“Any breaches by Martin will therefore cause Broward Health to immediately cease further payment to him.”

Martin declined to comment.

Glidewell was fired the day after Martin. The district has not publicly discussed why Glidewell was let go.

Glidewell’s deal specifies he’d continue to be paid his regular salary of $445,432, or $214 per hour, through Jan. 8, 2017. He’d also get a lump sum payment of $92,313 for 431 hours of accrued personal leave time, plus up to $10,000 in job search assistance.

To get the money, Glidewell signed the same gag terms as Martin. Any breaches by Glidewell would cause Broward Health to shut off further payments.

Glidewell did not respond to a phone message seeking comment before deadline.

The Broward Health public health system was subsidized last year by about $140 million in property tax revenues. Nevertheless, administrators have repeatedly inserted so-called “non-disparagement clauses” into separation agreements with its executives. The result has been not only a lack of transparency but, in the cases of Martin and Glidewell, a lack of accountability.

Former Broward Health procurement director Brian Bravo, fired in December amid an FBI corruption investigation, got a similar separation agreement on Jan. 7 in which the district agreed to pay his $159,000 salary through next June 14. Bravo also was given a $17,000 lump sum payment for accrued personal leave.

El Sanadi signed the deal on Jan. 7. It included a non-disparagement clause containing the same language as Broward Health’s agreement with Martin and Glidewell.

Wayne Black, a Miami private investigator hired last year by El Sanadi to look into alleged corruption at Broward Health, told commissioners in a January e-mail that Bravo “was bragging about getting $75,000” from the district “to pay his criminal defense attorney.”

Fusco isn’t the first Broward Health president/CEO to apparently exceed his signing authority. As FloridaBulldog.org reported Monday, El Sanadi signed an initial, $2.1 million no-bid annual contract with Zimmerman Advertising on May 5.

Like Fusco, El Sanadi’s authority to sign contracts was limited to $250,000. A review of the minutes of every public Broward Health board meeting in 2015 revealed no indication that Zimmerman’s initial contract was every brought to the board for its consideration.

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