A West Palm Beach strip club owes eight California models as much as $1.8 million for using their photos to lure customers without their permission, according to a lawsuit filed last week in Palm Beach County Circuit Court.
In the lawsuit against Ultra Gentlemen’s Lounge, Miami attorney Sarah Cabarcas Osman claims the eight women are top-flight models and business women who never authorized the club on Congress Avenue to use their photos in promotional advertisements.
The club, formerly operated as T’s Lounge, “gained an economic windfall by using the images of professional and successful models for (its) own commercial purposes,” Osman wrote. In addition to not being paid, the woman “sustained injury to their images, brands and marketability by shear affiliation with Ultra Lounge and the type of club (it is),” she wrote.
In an affidavit attached to the lawsuit, a Los Angles modeling agent estimated the club owes the women $1.78 million for using their photos.
Dr. Salomon Melgen’s practice of using a single vial of a drug to treat multiple elderly patients for a wet macular degeneration went from being a bonanza to a bust, according to those who testified Wednesday in the Palm Beach County ophthalmologist’s trial on 76 charges of health care fraud.
When the U.S. Supreme Court two weeks ago refused to hear Melgen’s appeal in his long-running dispute with federal health regulators, it dashed his hopes of recouping millions he repaid Medicare when it claimed he wrongly used one vial of the pricey drug Lucentis to treat as many as four patients, a practice known as multi-dosing.
But federal prosecutors, who claim Melgen bilked Medicare out of as much as $105 million by multi-dosing, misdiagnosing and mistreating scores of elderly patients, said millions more are at stake.
The high court’s decision means Melgen won’t be able to get back the $8.9 million he repaid Medicare for multi-dosing patients at clinics in West Palm Beach, Wellington, Delray Beach and Port St. Lucie in 2007 and 2008. But, Medicare officials also want the wealthy, politically-connected retinal specialist to repay another roughly $32 million for multi-dosing patients from 2009 to 2013.
An attorney, whose Washington-based firm has been paid about $5 million to represent Melgen in his unsuccessful legal battle with the U.S. Department of Health & Human Services, told a federal jury that Melgen is appealing the agency’s claims that he owes it additional money. The appeals, attorney Alan Reider acknowledged, could stretch on for years.
Melgen’s attorneys – including one that works for the same Washington, D.C. law firm as Reider – argued that Melgen’s practice of multi-dosing didn’t cost the Medicare program a dime. Had Melgen bought separate vials of Lucentis for each of his patients, the agency would have reimbursed Melgen roughly $2,000 for each one.
But, prosecutors countered, the practice was lucrative for Melgen. Instead of buying separate vials of Lucentis for three or sometimes four patients, he bought one. But he was reimbursed as if he bought one for each patient.
That means if he used one vial to treat three patients, instead of getting back roughly $2,000 for a single vial, he got back about $6,000. If he used it to treat four patients, he got nearly $8,000.
The trial, which began last month, continues today. Melgen also faces corruption charges in New Jersey along with his longtime friend, U.S. Sen. Robert Menendez. His multi-dosing of Lucentis, and Menendez’s attempts to intervene in his dispute with federal regulators, figure into the prosecution’s case there as well.
When attorneys tell judges they want off a case, they routinely cite “irreconcilable differences,” which typically means they haven’t been paid.
But, when a Jupiter attorney decided he no longer wanted to represent former North Palm Beach jeweler Anthony Simpson, he felt compelled to apologize to the judge and lawyers representing a New Jersey woman who is trying to evict Simpson from his home. Court records show he deeded it to her in 2015 in exchange for $450,000.
“My credibility is all I have and I have been lied to repeatedly by (Simpson),” attorney David Kuschel wrote in a motion filed in Palm Beach County Circuit Court earlier this month. “I did not become an attorney to abuse the judicial system or to lie to other members of the Florida Bar and the Court.”
Like others who have dealt with the former owner of Shamrock Jewelers on Northlake Boulevard, Kuschel said he believed Simpson when he told him he had “a financial backer.” Simpson promised repeatedly that the anonymous benefactor would give him $600,000 to settle the eviction lawsuit filed against him by Jodi Monell, as trustee of two family-owned trusts in Colts Neck, N.J., Kuschel wrote.
Kuschel said he met with people who were interested in buying Simpson’s home but that they didn’t understand the urgency of doing so. “Apparently, (Simpson) also misrepresented facts to the financial backers,” he wrote.
“The undersigned counsel does not know what else he can do, hence withdrawing from this action is my best course of action,” he wrote in the request.
In 2015, Simpson repeatedly told U.S. Bankruptcy Judge Erik Kimball he had “an angel” who would repay those who invested roughly $12 million in Rollaguard, a company he formed to produce a high-tech brief case. When the anonymous benefactor never appeared, Kimball put a bankruptcy trustee in charge of Rollaguard and Shamrock, who closed them both.
Trustee Robert Furr has filed dozens of lawsuits trying to recover millions from those who made money on both Shamrock and Rollaguard at the expense of others. Simpson also faces charges in Louisiana for writing bad checks to a diamond broker there.
Circuit Judge Edward Artau has scheduled a hearing on April 17 on Monell’s request to order Simpson out of his Oyster Road home.
A devout Roman Catholic, he has eight adult children.
He will preside in the upcoming health-care fraud trial of Palm Beach County ophthalmologist Salomon Melgen. Separately, Melgen faces corruption charges in New Jersey with his longtime pal U.S. Sen. Robert Menendez, a Democrat from New Jersey.
Some of Marra’s other notable cases include: Joseph Zada, who was convicted of mail fraud for stealing at least $37 million from an estimated 45 victims, including former NHL hockey star Sergei Fedorov. He is also handling a case in which victims of sexual abuse by Palm Beach resident Jeffrey Epstein are accusing federal prosecutors of violating the Victims’ Rights Act by not telling them about the non-prosecution agreement they signed.
In ruling against Trump on Wednesday, in a decision involving Trump National Golf Club Jupiter, U.S. District Judge Kenneth Marra made it clear he meant the new president no disrespect when he referred to him simply as Donald Trump or D. Trump throughout the 22-page order.
“At all times relevant to this lawsuit, Donald J. Trump was a private citizen. As a result, the Court will refer to him as such in this decision. In doing so, the Court means no disrespect to him or to the esteemed position he now holds.”
In a one-page ruling, U.S. District Judge Kenneth Marra ruled in favor of members who filed suit against Trump National Golf Club Jupiter on Donald Ross Road. He awarded them $4.8 million plus $925,000 in interest.
In a statement, the Trump Organization vowed to appeal.
At a trial in August, members argued that under Trump’s ownership they had been soaked for millions. Trump purchased the ailing club from The Ritz Carlton for $5 million in 2012. The bargain price came with the understanding that he was responsible for the $41 million that Ritz-Carlton GolfClub & Spa owed members in refundable deposits.
Contrary to Ritz-Carlton’s policies, Trump ownership rules bar members from the club once they announce their intentions to resign. Even though they can’t use the club, they are still billed $8,000 to $20,000 a year for dues and must pay an $1,800 annual fee for food and beverages. Because most have to wait until five new members join before their deposit will be refunded, those bills will continue to mount for years.
Trump, then hot on the campaign trail, testified by videotape. His son, Eric, who oversees the club along with 17 others owned by The Trump Organization, claimed the members were just disgruntled and eventually would get their money back when new members joined.
In the statement, a spokesperson for the Trump Organization wrote: “We respectfully disagree with the Court’s decision. The plaintiffs were all members under Ritz Carlton who resigned before Trump purchased the Club. At the time Trump purchased the Club, it was suffering financially, making it unlikely that these members would ever get back their deposits. At trial, we presented overwhelming evidence that the plaintiffs’ memberships were never recalled and that the plaintiffs had waived this argument during the course of the litigation.”
A Boca Raton probate and guardianship lawyer has renewed his efforts to have Donald Trump declared mentally unfit to serve as president of the United States.
Attorney James Herb said Trump’s actions over the last 10 days – fighting over the size of the crowd at his inauguration, insisting he really won the popular vote and inciting international turmoil with an immigration ban – reinforce his earlier claims that part-time Palm Beach resident is delusional.
A similar guardianship petition Herb filed in Palm Beach County Circuit Court in the run-up to the November election was thrown out by Circuit Judge Jaimie Goodman. As a state court judge, Goodman said he had no power to block Trump’s candidacy or remove him from office. Further, he ruled, Herb didn’t have a relationship with Trump that would allow him to ask that the real estate tycoon be declared incompetent.
Herb said he has addressed those legal obstacles in a new petition filed Monday. “I did not have a relationship with him but I now do because he’s my president,” Herb said.
Further, he said, he’s not asking a judge to remove Trump from office. That would be done in accordance with a process outlined in the U.S. Constitution.
Herb said he is simply asking a judge to appoint a team of experts to evaluate the new chief executive’s mental health. If Trump is found incompetent by the three-person panel, the judge could then limit his activities.
In the petition, Herb is asking that Trump be barred from “seeking or retaining employment.” In an asterisks, he notes that he is asking Trump be prohibited from “retaining employment as President of the United States.” If a judge agrees to the limitation, the order would be forwarded to federal officials capable of removing him from office.
As he did in the previous petition, Herb claims Trump exhibits signs of narcissism and histrionic personality disorder. Both are recognized as mental illnesses by the Diagnostic and Statistical Manual of Mental Disorders, which is published by the American Psychiatric Association. Since taking office, Trump has also exhibited signs of being delusional, Herb wrote.
Herb, who was criticized as a publicity-hound after filing the first petition in October, said his actions aren’t part of some self-serving publicity stunt. A longtime guardianship and probate lawyer, he said his practice is now primarily limited to wills and trusts.
“I’m not interested in getting business. I have plenty of business,” he said.
His goal, he said, is much more far-reaching. “I’m trying to save the world,” he said.
He is not alone in his suspicion that Trump is mentally unfit to be president. A group calling itself “We The People,” on Sunday started an online petition to “Demand Congress Require an Independent Expert Panel Determine the President’s Psychiatric Stability to Protect America.” If they get 99,999 signatures by Feb. 28, the White House by law has to respond.
Treatment center operator Kenneth “Kenny” Chatman on Thursday pleaded not guilty to a sweeping 17-count indictment that accuses him of money laundering, health-care fraud and sex trafficking, a charge that could send him to prison to life.
The indictment, handed up Tuesday, showcases federal prosecutors plan to shut down what they called the 46-year-old suburban Boynton Beach man’s illicit drug treatment empire that stretched from Mangonia Park in Palm Beach County to Plantation in Broward County and brought in an estimated $5.4 million.
The five others, who were released on bond after being charged in a criminal complaint last month, also pleaded not guilty to the new charges this week. A sixth, who was not originally charged, is to appear in court Monday.
“It’s the beginning of a long journey,” Chatman’s attorney Saam Zangeneh said after the brief hearing before U.S. Magistrate William Matthewman. He pledged to vigorously defend Chatman, who remains jailed as a flight risk and a danger to the community.
At a previous hearing, Assistant U.S. Attorney Marie Villafana suggested she would also ask a grand jury to indict Chatman in connection with overdose deaths that she said occurred at the sober homes he operated. But, she said, those charges would take more time to prepare. Chatman was not charged in connection with any deaths.
Still the charges he faces in connection with his involvement with Journey to Recovery in suburban Lake Worth and Reflections Treatment Center in Margate along with dozens of sober homes are serious. Journey to Recovery and Reflections were both licensed drug treatment centers. As a convicted felon, Chatman was barred from holding the licenses so he and his wife illegally told authorities she was operating them, according to the indictment.
Rather than treating patients, the indictment claims Chatman made a fortune by taking advantage of them along with insurance companies. He turned female patients into prostitutes. He paid kickbacks to five laboratories – in South and Central Florida, Texas and Pennsylvania – to get them to test bogus urine samples, according to the indictment.
In addition to Chatman and his wife, also indicted were: Joaquin Mendez and Donald Willems, both doctors; Fransesia Davis, who worked at the two treatment centers; Michael Bonds, a sober home operator; and Stefan Gatt, who worked at a lab in Central Florida.
The saga of efforts to seize a Palm Beach County sheriff’s deputy’s belongings to pay the expenses of a West Palm Beach man he shot and paralyzed took another turn on Tuesday when attorneys challenged the value he claimed his possessions are worth.
In court papers, attorney Jack Scarola, who represents Dontrell Stephens, accused Sgt. Adams Lin of understating the value of his car, his television and a Play Station. They are the only belongings Lin said he owns that are worth more than $25. In total, he said, his possessions, excluding his car, are worth less than $4,000.
Also, while Lin in court papers set the value of his two dogs and a cat at $100, a spokesman for Scarola said neither those pets nor an aquarium with fish were seized. By law, Lin was required to list the value of all of his possessions worth more than $25, the spokesman said.
A hearing will be held before U.S. Magistrate Barry Seltzer on Wednesday to determine if Lin will get his belongings back. He is allowed to retain $4,000 worth of his possessions, according to the state law. He claims he owes more on his 2014 Dodge Challenger than the $22,000 claims it is worth. Scarola claims it has been modified at a cost of $13,000, making it far more valuable.
Lin’s belongings were seized by court order on Jan. 7 from Lin’s home to defray a $22.4 million judgment Scarola won for Stephens last year. Stephens, 23, who was paralyzed after he was shot by Lin in 2013, is destitute, Scarola said.
The judgment is also against the Palm Beach County Sheriff’s Office. Scarola said he wants Sheriff Ric Bradshaw to pay Stephens the $200,000 he agency will be legally required to pay if the verdict is upheld on appeal. Bradshaw, he said, has refused.
Under Florida law, $200,000 is the most government agencies can be required to pay for wrongdoing. To get more, the Florida Legislature must pay a claims bill, lifting the cap.
Daphne Felisma, wife of accused Palm Beach County sheriff’s deputy Frantz Felisma, collapsed outside a federal courtroom in West Palm Beach Thursday after a judge denied bond for her husband.
Paramedics took her to the hospital after she fainted. Her husband, who faces identity theft charges, should remain behind bars because of the serious nature of the offense and, with family in Haiti, he is a flight risk, U.S. Magistrate James Hopkins said at the conclusion of a roughly two-hour hearing.
“I can’t imagine a much more serious offense than this,” Hopkins said. “For a law enforcement officer to be selling his position and selling law enforcement information to a known fraudster is one of the most serious crimes I can possibly imagine.”
Daphne Felisma started sobbing after Hopkins announced his decision. She tried to reach her husband as U.S. marshals led him out of the courtroom. Grabbed by marshals, she was ushered into the hallway where she collapsed. About 50 friends and family members, many crying, were also ordered from the courtroom.
Frantz Felisma, 42, of Boynton Beach, is accused of using law enforcement databases to get personal information about at least 50 people who owned expensive cars and selling the information to Kesner Joaseus, federal prosecutors said. Joaseus, who pleaded guilty to identity theft and other fraud charges in August, reported Felisma’s involvement to police. Joaseus set up credit card and bank accounts over 18 months, stealing an estimated $250,000, prosecutors said.
Joaseus told prosecutors he offered to pay Felisma $10,000 a month for the information but it is unclear how much he was paid or where the money went, Assistant U.S. Attorney Lauren Jorgensen said. Felisma’s bank account showed about $14,000 in unusual transactions from January 2013 until June 2014, she told Hopkins.
“Criminals don’t necessarily deposit money from a criminal enterprise,” she said.
Knowing Joaseus had been convicted of mortgage fraud, Felisma claimed he was investigating his activities. “I’m going to nail him,” his attorney Jason Kreiss said he told investigators.
Kreiss said Felisma maintains his innocence and is likely to ask a federal judge to overturn Hopkins’ decision to deny him bond. The appeals process could take more than two weeks.