Red tide brings 3.5 tons of dead fish to Bradenton beaches. What to expect this weekend
Ryan Ballogg – March 10, 2023
Red tide’s presence remains strong this week on the Southwest Florida coast, including around Anna Maria Island and Manatee County.
On Tuesday, dead fish littered the waterline at Bradenton Beach, and frequent coughs could be heard from visitors who braved the sands.
The harmful algae bloom has persisted in area waters since fall, but it intensified in recent weeks with increased reports of respiratory irritation and dead fish from Pinellas County south to Monroe County.
Karenia brevis, the organism that causes red tide, was detected in 123 water samples along Florida’s west coast over the past week, the Florida Fish and Wildlife Conservation Commission said in a mid-week update.
Eight of those samples were collected in Manatee County waters, where red tide levels ranged from low to high.
Medium levels of K. brevis were detected at five points on and around Anna Maria Island on Monday. At levels of medium and above, red tide is more likely to cause fish kills and breathing irritation.
Dead fish by the ton
County staff who clean beaches and waterways for red tide debris have seen a major increase in dead fish washing ashore over the past two weeks, according to Manatee County Parks operations manager Carmine DeMilio.
“It started getting intense,” said DeMilio, who leads the county’s red tide cleanup efforts.
The county began responding to the red tide bloom in November; between that time and mid-February, about a ton of dead fish were collected from area beaches.
Over the past two weeks alone, around 3.5 tons were collected, DeMilio estimates.
The county cleans beaches daily with beach rake tractors, and skimmer boats collect dead fish from the water.
“We start at 5 in the morning and go til around 11:30,” DeMilio said. “By that time, the beachgoers are on the beach and it’s hard to maneuver.”
DeMilio said a strong west wind began pushing more dead marine life ashore last weekend. The fallout has mostly been bait fish, he said, but some larger species like grouper and snook were mixed in.
“That was our battle — trying to keep the accumulation of fish coming to shore under control,” DeMilio said. “So when our visitors show up to our beaches, it’s clean and safe for them. That’s our goal daily.”
So far, DeMilio said this year’s bloom is mild compared to the extreme red tide that hit Southwest Florida in 2018. During the peak of that event, crews worked for 64 straight days to remove over 200 tons of dead fish.
“If we can handle that and we were successful with that, handling a smaller version is much easier,” DeMilio said. “It’s just like any maintenance that you do at your house. If you stay on it, it’s not going to accumulate.”
County staff said that conditions were beginning to improve on Wednesday as winds shifted.
Local red tide conditions
Tampa Bay area: Red tide conditions remained intense along Pinellas County’s shoreline this week, where medium and high concentrations were detected at multiple beaches from Honeymoon Island south to Mullet Key. Dead fish and respiratory irritation were reported along the coast.
Manatee County and Anna Maria Island: Medium levels of K. brevis were detected around Anna Maria Island in state water samples collected on Monday — an increase from last week. Dead fish and respiratory irritation were reported at all major public beaches.
Sarasota County: Along Sarasota County’s coast, red tide levels ranged from low to high this week, with the strongest concentrations around Longboat Key and Lido Key. Dead fish and respiratory irritation were reported at public beaches.
Southwest Florida: Red tide algae was also found at high levels offshore of Charlotte, Lee and Collier counties this week, as well as medium levels off of Monroe County.
Red tide forecast
University of South Florida’s short-term red tide forecast predicts that red tide’s presence on the coast will continue over the weekend. Very low to high levels are predicted for the entire coast line, including areas of intensity in Pinellas, Manatee, Sarasota, Charlotte, Lee and Collier counties.
NOAA warns of a moderate to high risk of respiratory irritation over the next 36 hours in Pinellas, Manatee, Sarasota, Charlotte, Lee and Collier. Chances increase when wind is blowing on or along the shore.
A map shows a short-term red tide forecast for Southwest Florida from the University of South Florida College of Marine Science’s Ocean Circulation Lab.
Red tide safety tips
The Florida Department of Health offers the following safety tips for when red tide is present:
Look for informational signage posted at most beaches.
Stay away from the water.
Do not swim in waters with dead fish.
Those with chronic respiratory problems should be especially cautious and stay away from these locations as red tide can affect your breathing.
Do not harvest or eat mollusk and shellfish or distressed or dead fish from these locations. If caught live and healthy, finfish are safe to eat as long as they are filleted and the guts are discarded. Rinse fillets with tap or bottled water.
Wash your skin and clothing with soap and fresh water if you have had recent contact with red tide.
Keep pets and livestock away and out of the water, sea foam and dead sea life. If your pet swims in waters with red tide, wash your pet as soon as possible.
Residents living in beach areas are advised to close windows and run the air conditioner, making sure that the A/C filter is maintained according to manufacturer’s specifications.
If outdoors near an affected location, residents may choose to wear masks, especially if onshore winds are blowing.
One of Anna Maria Island’s last trailer parks is for sale in Florida. ‘It’s a family.’
James A. Jones Jr. – March 12, 2023
Along with the bright colors, quirky personal touches and flowering plants at the Pines Trailer Park, there is sadness and uncertainty among residents.
Dating back to 1935, the park was first used by members of a traveling circus, some say, and baseball great Babe Ruth once owned a home at 402 Church Ave., that later burned down, the Bradenton Herald reported in 1990.
It’s a tight-knit group of residents, some full-time, but many seasonal. The park bumps up against Sarasota Bay. Bridge Street and Bay Drive both run through it. Visitors often walk through, taking in the local color of one of Anna Maria Island’s last two trailer parks.
It’s a throwback to the Florida of yore.
Bradenton Beach City Hall sits a few blocks to the west.
“It’s sad. We are extremely hopeful residents will be able to work out a deal with the property owner,” Mayor John Chappie said. “The Pines is really a community within a community.”
Trailer park residents respond
Pines Trailer Park and Sandpiper Mobile Resort, 2601 Gulf Drive N., also in Bradenton Beach, are the last remaining trailer parks on Anna Maria Island.
For some of the residents of Pines Trailer Park, it is the only home they have, said Linda Maerker, president of the tenant’s association.
She worries for them.
“You know the price of real estate. It’s sad,” she said.
Maerker and her husband have wintered in Pines Trailer Park for 15 years.
“This place is so important to so many people,” she said. “It’s a family. We have become very close.”
Maerker calls the park her healing place after some tragedies in her life.
Ranae Ratajczak has lived in the park for 13 years, spending six months a year there.
“It’s our happy place, our piece of paradise,” Ratajczak said.
The owners of Pines Trailer Park in Bradenton Beach want to sell the property and have offered residents the option to purchase the park for $16 million.
“Our hope is to become owners of the park. There is a lot of history here. We want to keep it as it is, as a mobile home park,” she said.
History of Pines Trailer Park
This is not the first time that park owners have offered to sell the park to residents.
In 2002, the owners also offered residents a chance to buy the park, according to records filed with the Manatee County Clerk of Court’s Office.
George and Grace Bagley started Pines Mobile Home Park — named after the Australian pine trees in the area — in 1935 and the park has had many owners over the years, according to Jonathan Torkos, historical resources librarian for the clerk’s office.
At its opening in 1935, the Bradenton Herald reported that it was a “new and strictly modern tourist camp” with a community hall, dance hall, restaurant and laundry. Budweiser was offered on draft, according to a newspaper advertisement.
In 1936, thieves entered the washroom of the park and stole all the plumbing, the Bradenton Herald reported.
In 1948, Mr. and Mrs. Harry Hively sold the park to Mr. and Mrs. James Ashby for $25,400.
This aerial depicts the southern-most portion of Bradenton Beach. To the right of the image is the Anna Maria Sound and to the left of the image is the Gulf of Mexico in this historic postcard from 1945.
One of the subsequent owners, Mr. and Mrs. Glen Fifer, sold the park in 1956 for $55,000 to Mr. and Mrs. Charles Bisbee.
In 1962, Bradenton Beach’s then-mayor Victor Reinel sold the park to Mildred Henri and Forrest J. and Elizabeth Lincoln for $150,000, the Bradenton Herald reported.
Jackson Partnership has been the owner of the trailer park since 1976.
Challenging housing market
The housing market has never been so challenging in the Bradenton area, with rental prices becoming some of the least affordable in the United States and the price paid to buy a house at record levels.
In the early 1970s, Bradenton Beach had very affordable housing that service workers on the island could afford, Chappie said this week.
That is a concern not only for Pines Trailer Park residents who want to remain in their homes but for many who are looking to rent or buy elsewhere in the Bradenton area.
The owners of Pines Trailer Park in Bradenton Beach want to sell the property and have offered residents the option to purchase the park for $16 million.
The availability of affordable housing and workforce housing has become a major concern not only for consumers but for business interests and public service providers.
The owners of Pines Trailer Park in Bradenton Beach want to sell the property and have offered residents the option to purchase the park for $16 million.The owners of Pines Trailer Park in Bradenton Beach want to sell the property and have offered residents the option to purchase the park for $16 million.The owners of Pines Trailer Park in Bradenton Beach want to sell the property and have offered residents the option to purchase the park for $16 million.The owners of Pines Trailer Park in Bradenton Beach want to sell the property and have offered residents the option to purchase the park for $16 million.
They bought their dream homes from the ‘King of Coconut Grove.’ They still can’t move in
Linda Robertson – March 12, 2023
Twelve new townhouses line a block of Coconut Avenue. Lushly landscaped, outfitted with high-end appliances and spacious closets, they’re in move-in condition. Yet the Coconut City Villas are empty, as empty as their backyard swimming pools and unsullied trash bins sitting in unoccupied driveways.
Instead of “For Sale” signs, house hunters see “No Trespassing” notices posted along the street and “Do Not Enter” decals stuck to the front doors, a curious contrast in Coconut Grove, one of the most hotly desired neighborhoods in the country, where housing prices have nearly doubled over the past three years.
The lack of residents can’t be explained by lack of demand. The 4,000-square-foot townhouses, originally priced from $1.2 million to $1.8 million, are under contract to buyers who put down as much as $500,000 starting as far back as 2018. They were told by developer Doug Cox their homes would be ready in 45 to 90 days, or at the latest six months.
They’ve been waiting ever since. Their plans have been perpetually postponed by Cox, owner of Drive Development, who has not closed a house sale in four years despite a booming market. His completion dates teased buyers as the houses beckoned. But their dreams of a dream home have gone bust.
They have been locked out and led into a dead end darkened by threats, lawsuits, non-disclosure agreements and unsavory lenders, buyers say.
The delays have turned buyers and their families into nomads — moving from one expensive rental to another, cramming in with relatives while living out of suitcases — draining their finances and testing their marriages. When they go past their houses they are tantalized by memories not made — cooking in the kitchen, playing in the pool, celebrating birthdays, hosting block parties.
“We’ve spent three Christmases in limbo,” said Alan Lombardi, who signed a contract three years ago with the assurance that he, his husband and their newborn twin daughters would move in by summer 2020. The twins are now age 3. “The developer has kept us hanging on his hook, ruining people’s lives by deceiving us with false promises, just like Bernie Madoff.”
Lombardi has asked the FBI to investigate Cox for running a Ponzi scheme.
The buyers can’t move in because Cox has failed to complete inspections and get certificates of occupancy from city of Miami building department officials, whose lack of oversight enabled Cox to ignore expired permits and a Stop Work order and avoid applying finishing touches on houses for years. The city, which has ceased responding to buyers’ calls and emails, says it can’t intervene in a private dispute.
The buyers got caught in the fallout from Miami’s COVID-driven housing gold rush. Some are transplants from New York, Chicago and California who were eager to sign purchase agreements for new homes that looked — outside and inside — like they were ready to sleep in, missing only a mirror, some paint, a fence. They want their plight to serve as a warning: Don’t make one-sided deals with developers.
A Coconut Avenue townhouse built by Drive Development. Buyers who have paid hundreds of thousands in deposits for these houses have been waiting to move in for two, three and more than four years. They’ve been stymied by the Coconut developer, Doug Cox, who has continually stalled the closings on the properties.
Cox is deliberately stalling to frustrate them into canceling their contracts so he can flip each house for an additional $1 million or more, buyers allege. They feel trapped: As time passed, the market skyrocketed, and in 2023 they will never find comparable homes in the neighborhood for the price they planned to pay and the mortgage rate they had secured.
On Wednesday, Drive Realty listed 2986 Coconut Ave. for $2.495 million. Original sales price in July 2020 was $1.385 million, a difference of $1.11 million. One catch: It doesn’t have a certificate of occupancy so anyone who buys it can’t move in.
“Seems like a shell game,” said Andy Parrish, a longtime Miami developer who lives in Coconut Grove. “He’s put these people through hell by stonewalling them with excuses.”
One weary buyer confided in Parrish, cried on his shoulder.
“She said, ‘I can’t believe people lie to other people like this,’ ” Parrish said. “I told her, ‘Welcome to Miami! A sunny place for shady people.’ ”
Cox, 52, initially agreed to an interview with the Miami Herald, then changed his mind and asked for emailed questions. He didn’t respond to questions sent twice or attempts to talk to him over the past two weeks.
Nicole Pearl, 37, who is Cox’s business partner and mother of their three children, declined to talk to the Herald. Her law firm, Pearl & Associates, is the registered agent of companies connected to the properties, Florida corporate records show. She is a licensed real estate agent who lists homes for Drive Realty.
The Herald spoke to 16 buyers — many did not want their names published, fearing retaliation by Cox — and examined lawsuits, mortgages, purchase agreements, property records and Miami building department reports, which substantiated buyers’ chorus of complaints.
Several of the 12 townhouses in the 2900 block of Coconut Avenue in Coconut Grove on Wednesday, Feb. 15, 2023. Buyers who have put down deposits as much as $500,000 dating back to 2018 say they haven’t been able to move into the homes due to perpetual delays by their developer, Doug Cox of Drive Development.
No sales closed since 2019
Cox calls himself the “King of Coconut Grove.” His clients call him less flattering nicknames. What his gambit is no one can say for certain because he has not sold a home since August 2019 when he and Pearl closed on a Bridgeport Avenue townhouse for $1.15 million. Closing on the new homes should be a mutual goal but there are no signs of progress. He offers clients refunds of their deposits and says he’s got a line of backup buyers.
“It’s a strange way to run a real estate development company,” Lombardi said. “It’s really an anti-development company. Why doesn’t he want to deliver? How can he afford to operate?”
Cox has told buyers he wants to get them into their special houses, but he’s been delayed by factors beyond his control: the pandemic, supply-chain problems, manpower shortages, rising construction costs, subcontractor snafus and now bureaucratic red tape in the building department tangling his efforts to finish inspections.
A padlock and chain link fence greet passersby at 3159 Virginia St. in Coconut Grove on Thursday, Feb. 9, 2023. The property is owned by Send Enterprises LLC, one of the limited liability companies connected to Doug Cox and Nicole Pearl.
Double contracts on homes
Is Cox playing musical chairs? At least three of the townhouses have double contracts on them. The legal descriptions correspond to 2955, 2960 and 2990 Coconut Ave.
Some buyers discovered through Miami-Dade Clerk of Court records that near the end of 2022 Cox signed a “memorandum of contract” on their houses with Chris Paciello, the former South Beach nightclub impresario, and his business partner, Mio Danilovic. Before he became famous for hosting parties at Liquid and dating Madonna, Sofia Vergara and Jennifer Lopez, Paciello was a Mafia henchman and thief in New York City.
Once Paciello’s past caught up with him in 2000, he became an FBI informant, pleaded guilty to racketeering and served six years in prison for robbing $300,000 from a New York bank and driving the getaway car in a home invasion during which a Staten Island housewife was shot in the face and killed.
Paciello, the owner of four Anatomy Fitness deluxe gyms in South Florida, has ventured into real estate investment since the pandemic and flipped houses for $9 million and $14 million in Miami Beach. It’s unclear how much of a deposit Paciello and Danilovic put down in their backup contract deal with Cox. Backup contracts are not illegal.
When contacted by the Herald, Paciello, 51, declined to comment.
Ingrid Casares and Chris Paciello at Liquid, the South Beach nightclub, on Nov. 16, 1995. Casares and Madonna were lovers; Casares and Paciello were partners in Liquid. Paciello and his business partner have backup contracts on three of the Coconut Avenue townhouses.
In another complication that has alarmed buyers, Cox took out a $350,000 loan in December from DC Fund based in Sunny Isles Beach, whose associates include men who were sued for racketeering in an alleged loansharking scheme that disguised “criminally usurious loans” as cash advances that had to be repaid with 430 percent interest, according to a lawsuit filed in Brooklyn. Cox put up eight properties as collateral. If he defaults on the loan, he could lose them.
Buyers have observed Cox showing their houses to prospective buyers on multiple occasions. He says he is merely displaying his handiwork, and not offering those particular houses for sale. But contract holders have heard from acquaintances whose names are on a list of backup buyers Cox has compiled. One is upset he’s only No. 3 on the list.
A finished kitchen in one of the Coconut Avenue townhouses built by Doug Cox of Drive Development.
If Cox is flipping the townhouses, for how much? Miami real estate agent Randi Connell, who identifies herself as a Drive Development sales associate, recently texted a prospective buyer about two off-market Coconut Avenue houses available for $2.7 million and $3 million, which is $1.5 million and $1.2 million more than the original sales prices.
Homebuyers who signed purchase agreements and put down deposits on townhouses along Coconut Avenue in Coconut Grove have been waiting for several years to move into their dream home. The developer, Doug Cox of Drive Development, keeps stalling, the buyers allege. Photo was taken in 2021 by a buyer.
Pearl listed 2986 Coconut Ave. for sale for $2.495 million on Wednesday morning. The house first went under contract for $1.385 million on July 8, 2020, to Jonathan Schonfeld and Aviva Auslander, with a completion date of Sept. 1, 2020, or at the latest, March 1, 2021. They waited two years. Disgusted, they gave up.
If Cox and Pearl land a buyer for 2986, they could collect at least a $500,000 deposit and “utilize” it as they please, according to two Send Enterprises contracts the Herald reviewed. Contrary to realty ethics rules, Pearl did not disclose in the listing that the house doesn’t have a certificate of occupancy, and its building permit expired Feb. 15.
“If the delays are indeed outside their control, how can they list a property if they don’t know when or if they can close?” Lombardi asked.
South Florida real estate lawyer Dennis Eisinger said home buyers can get “boxed in” by contracts that typically favor the developer and waive buyers’ rights.
“It appears this developer is bullying the buyers to get the financial advantage,” he said. “We saw this situation before the recession in 2003-2006 when defiant and unscrupulous developers tried to get buyers to rescind contracts so they could resell at higher prices.”
Lawsuits, ‘worst decision of my life’
At least three buyers, including Schonfeld and Auslander, sued Send Enterprises, alleging fraud and breach of contract. The cases were assigned to mediation, as required in the contracts; buyers cannot seek a jury trial. They had to sign non-disclosure agreements. At least four others have taken Cox up on his offer to refund their deposits and walk away; they also signed NDAs.
Catherine and Andrew Prescott of Miami Beach signed a $1.82 million purchase agreement on May 25, 2021, and paid a $455,000 deposit for 2960 Coconut Ave. The contract stipulated a completion date of Aug. 1, 2021, and an “outside” closing date within six months.
The Prescotts sued Send Enterprises in January 2022 for its alleged failure to achieve specific performance of its obligations, fraudulent inducement, unfair trade practices, negligent misrepresentation and unjust enrichment.
In their lawsuit, which also named Cox, Schonfeld and Auslander asserted that Cox “repeatedly lied” about “fabricated dates.” The Prescotts said the developer made promises “without any intention of performing, or with the positive intention to not perform” to entice them to sign and pay a deposit. The cases went to mediation and everyone signed NDAs.
Three months after the Prescotts sued, a real estate agent who works with Cox offered the house for $2.4 million, about $600,000 more than the original sales price.
Other buyers are determined to stick it out. They can’t afford to hire a lawyer. They’re not ready to abandon the houses they’ve invested in, emotionally and financially. And they don’t want to let Cox win.
“If I could rewind time — this was the worst decision of my life,” said Kevin Ware, who owns an insurance brokerage firm. He moved his family from Chicago in March of 2021, walked through a Coconut Avenue townhouse that was weeks from completion and fell in love with it. They’ve lived in three rentals since. “We cannot let Doug keep scamming more people. We don’t want anyone else to get caught in this predicament. Buyer beware.”
Strung along by Cox, buyers acquired mortgages with 2 percent rates that have since tripled.
“It must be exhausting to be Doug Cox. He lives in 15-minute increments. Think of all the lies he has to keep track of,” Ware said. “We have paid a high price for dealing with him. From the sheer expense of living in short-term housing to the financial damage of losing our mortgage rate locks to the strain on our relationships and mental health, Doug has constantly and cruelly put his greed above our well-being.”
Kevin Ware moved his family from Chicago in March of 2021, walked through a Coconut Avenue townhouse that was weeks from completion and fell in love with it. They’ve lived in three rentals since, unable to move into their home.
‘Cautionary tale for other home buyers’
For Lombardi and his family, it’s been a three-year ordeal, first sharing his mother’s small Hollywood condo with his partner and infant twins, now in a $5,000-per-month Midtown apartment.
“We thought it would be a three-month wait because the house was 80 percent done, so we sold our Brickell condo, put everything, including baby equipment, in a sealed storage pod, packed four suitcases and moved in with my mom — for two years,” said Lombardi, a real estate agent.
The twins never had the nursery Lombardi envisioned.
One buyer described himself and his wife as “40-year-old couch surfers.” They’ve lived in seven different places.
New York transplants Michael Coyne and his wife, Oksana, have 1-year-old twin daughters and a 3-year-old son, and expected to share 2978 Coconut Ave. with her parents, who fled Ukraine after Russia attacked. Among the six places they have lived since their closing date evaporated was a one-bedroom apartment.
Coyne said they moved to a rental in Rhode Island to wait it out because they couldn’t afford “insane” rents in Miami. Fueled by inflation that’s made housing unaffordable for many and the influx of remote workers and newcomers moving to a no-income tax state, Miami has become the most competitive rental market in the country with prices 76 percent higher than the national median, a Zillow study showed.
Coyne, an investment banker, wanted to open an office with two of his business associates in Miami but he’s told them not to come. Oksana, a registered nurse, was scheduled to do her clinical work to become a nurse practitioner; she’s postponed her career plans. The chaos has been difficult for the children and Oksana’s Ukrainian parents, who speak limited English.
“Doug and Nicole either lie to you or ignore you,” Coyne said. “You work really hard for your family to buy the most important asset of your life and you get caught in a calculated, malicious, exploitative scheme by a flimflam developer.
“I’m not letting him get away with it. Let this be a cautionary tale for other homebuyers.”
New York transplants Michael Coyne and his wife, Oksana, have 1-year-old twin daughters and a 3-year-old son, and expected to share 2978 Coconut Ave. with her parents, who fled Ukraine after Russia attacked.
One family has suffered the longest. They chose a four-bedroom model four and a half years ago so their 12-year-old daughter would have her own room and so her grandmother, recovering from cancer, could live with them. Now, the daughter is a high school senior heading to college in the fall. The grandmother never got to move in with her family.
City of Miami should be ‘embarrassed’
Cox brags about his chummy connections to the city’s building department and Miami Mayor Francis Suarez.
Cox’s customers recount the exact same comments he’s made to all of them — that he can remove any obstacle by “having a cafecito” with officials. Drive Development contributed $50,000 to Suarez’s re-election campaign in 2020 and $100,000 to Suarez’s 2018 initiative to create a strong mayor position (voters rejected it), campaign finance records show.
Buyers who have sought relief from the city have gotten nowhere: Emails, phone calls and meetings have prompted no corrective action.
Buyers acknowledge they signed contracts that gave lots of leeway to the developer but decided to sign because they were shown nearly completed houses by a persuasive seller who had previously built fine houses. What could go wrong?
The Herald asked to speak to three City of Miami building department officials about inspection delays and an audit of Drive Development plans. The city’s reply: “The Building Department takes this matter seriously and is tasked with enforcement of the building code and other technical standards, as well as City ordinances. The Building Department has no authority over the pace of construction, nor any contractual matters between the buyers and the developer.”
The city does have authority over permitting and inspections, but wouldn’t explain why it has taken years for Cox to receive city approvals and certificates of occupancy. Nor would officials answer questions about penalties for permit violations or prolonging the inspection process.
“The city should be embarrassed,” Lombardi said.
A walk-in closet at one of the 12 luxury townhouses on Coconut Avenue in Coconut Grove that developer Doug Cox of Drive Development built. The photo was taken in 2021 by a buyer.
When the Coynes asked Pearl for an update three weeks ago, she told them inspectors can’t work during an audit. The city said that’s not true; inspectors are allowed to carry on.
Developers like Cox can hire “private providers” to conduct inspections and submit the results to the city. Cox hired MEP Consulting Engineers of Coral Gables. He’s told buyers he blames MEP for bungling reports. MEP blames Cox for not giving inspectors the information they need to finish the job.
MEP President Katrina Meneses said that the city’s audit is done and in the hands of Cox.
“What we’re waiting on is paperwork from the owner, our client,” she said. “We love to finish projects so we can move on to the next one. Anything that takes over a year, it’s difficult to continue and slows us down. Yes, if I was a customer, I’d feel upset.”
The city is notorious for its lack of transparency and accountability, said Parrish, the Miami developer who lives in the Grove.
“We’re in a pro-development city, county and state where everything is driven by developers and their money. Florida is a creation of developers,” he said. “Developers control elections, elections control politicians and politicians control building and zoning. The city of Miami is one of the worst examples of how the gravy train works. It’s an absolute mess.”
Buyers have asked for help from the city, ex-Miami commissioner Ken Russell, Mayor Suarez, the Miami-Dade State Attorney’s Office, the state’s Department of Business and Professional Regulation and the FBI. The response: If Cox isn’t doing anything illegal, we can’t get involved.
Ware’s experiences illustrate the relationship between Cox and the city.
Cox was allowed to work through a Stop Work order for more than a year. The city issued the order because Cox failed to submit plans for the five three-story townhouses he was building on Coconut Avenue; he only submitted plans for the two-story units. His reason: Plans were proprietary and he didn’t want his design stolen.
Ware discovered there was a Stop Work order and expired permit on his house when he checked the city website iBuild in summer 2021.
Kevin Ware moved his family from Chicago in 2021 and has been waiting to move into their Coconut Avenue home in Coconut Grove.
According to Ware, Cox told him not to worry, the order wasn’t being enforced and he’d have a cafecito with officials to smooth things over. Five months later, after repeated requests for an update, Cox told Ware he had submitted a substantial number of reports to the city after giving MEP engineers a $50,000 bonus each to expedite inspections, and promised Ware “we’re almost there.”
A month later, Ware met with city inspector Perla Mutter. She told him Cox had submitted nothing, and that because of the expired permit, nothing could be submitted until Cox and his contractor Eric Myers met with the building department.
A month after that, on April 26, 2022, Ware went to the meeting at city offices expecting to talk to Cox, Myers and Miami building department assistant director Luis Torres. But Cox met with Torres privately first. And there was no sign of Myers.
“Doug comes out of the office and admits he met with Torres early so that, ‘Everything would be taken care of,’ ” Ware said. ”The following week Doug paid a $100 fine and reopened his permit.
“The city can try to cleanse its hands but it is enabling this developer to abuse the system,’’ Ware said.
The permits for 2984 and 2986 Coconut Ave. expired last month. Cox must sign onto iBuild and pay $100 to re-activate the permits for six months. It’s part of a years-long pattern: His permits expire, he reactivates them months later, then doesn’t enter documentation in time for the city to complete reviews before they expire again, records show.
Permits for the other townhouses on Coconut Avenue are scheduled to expire March 12, April 30 and July 4. Buyers check iBuild and see a vicious cycle: Submit, Pending, Review, Deny, repeat.
To fix the slow and complicated permitting process that has stranded buyers, they advocate new laws with strict 120-day deadlines for the review and approval of applications and harsh penalties for breaking them.
There’s a cost to the city as well. Cox has been paying property taxes of $10,000 per lot, or $60,000 per year on the Coconut Avenue townhouses. Homeowners would pay about $20,000 per unit, or a total of $240,000 per year.
‘House of Rumors’
Then there’s the seven-year saga of 4010 Park Ave.
The two-story South Grove house still has plywood for a front door and a Porta Potty in the front yard.
On realtor.com, it’s listed as a 5-bedroom, 6-bathroom home “active with contract” for $2.95 million.
In 2019, Steven Salm bought the home for $2.55 million. He sued Send Enterprises in November 2020; the lawsuit went to mediation and NDAs were signed. The house was re-listed in February 2021 for $2.95 million.
Marcos Junges has lived next door for 27 years. He said the building of 4010 Park began back in 2016.
“Goes in fits and starts, with long hiatus periods,” he said.
A home under construction at 4010 Park Ave. in Coconut Grove on Feb 15, 2023. A neighbor who lives next door said the home has been under construction since 2016. Neighbors call it the ‘House of Rumors.’ The property is owned by Send Enterprises LLC.
He and his neighbors — who paused to chat during one of their evening walks — call it the “House of Rumors.” They’ve heard it’s been under contract for five years with a succession of buyers. Junges said Cox bought the modest house that used to be there from his elderly neighbor’s family when she died.
At 2050 Secoffee St., majestic oak trees shade a vacant lot. Secoffee is a quintessential Grove street in the rapidly transforming North Grove, where developers capitalize on the neighborhood’s expansive lots by tearing down old houses and the jungle that surrounds them and building new ones with much larger footprints. Price-per-square-foot in the Grove’s 33133 ZIP code rose to a record $874 last year.
Drive Development’s website shows a gorgeous rendering of a 5,302-square-foot house with atrium, listed for $4.85 million in July 2021, then removed in January 2022. A description currently on movoto.com includes three different wishful details: Under construction! Expected completion Q3 2022 and Year built 2021.
No ground has been broken.
The image on the real estate website movoto.com shows a rendering of a house at 2050 Secoffee St. in Coconut Grove, on Feb. 25, 2023. The description includes three different wishful details: Under construction! expected completion Q3 2022 and Year built 2021.Drive Development advertises a luxury designer home along a fence in front of a lot at 2050 Secoffee St. in Coconut Grove. The lot is vacant.
Cox tells buyers he’s finishing his own dream townhouse at 3167 Shipping Ave. in central Coconut Grove. The adjacent one is under contract with a buyer from New York City who is growing more impatient. Both look ready for move in. Around the corner on Gifford Lane, a buyer from southern California awaits a townhouse that was supposed to be done in November. Other than grass growing, nothing’s happening on the lot.
Newly constructed homes along the 3100 block of Shipping Avenue in Coconut Grove on Wednesday, Feb. 15, 2023. Cox tells buyers he’s finishing his own dream townhouse at 3167 Shipping Ave. in central Coconut Grove. The adjacent one is under contract with a buyer from New York City who is getting impatient.
The loans
Cox’s companies have taken out at least $59 million in loans, for which he put up 20 properties as collateral, according to public records.
But it’s his most recent loan that has buyers concerned about the fate of their houses. Cox borrowed $350,000 from DC Fund on Dec. 30, 2022, soon after three buyers decided to cancel and get their deposits back. Around the same time, Pearl signed the double contracts with Paciello and Danilovic. And now Cox and Pearl have listed a house for which they could pocket $500,000 or more in deposit money.
Cox put up eight properties as collateral on the DC Fund loan. If he defaults, lenders get first dibs.
DC Fund’s registered agent is Ariel Peretz, principal of Diverse Capital, a lender that advertises “we say yes when others say no” and urges customers to get in touch “if you’re in search of desperately-needed money.”
Peretz and DC Fund members run firms in the merchant cash advance business, mostly based in Brooklyn, which attempt to skirt state usury laws by saying they are not lending quick money at exorbitant rates but are buying the future earnings of their borrowers.
Peretz and DC Fund associates Yoel Getter and Jonathan Allayev and their companies were sued in 2021 by a Texas businessman who accused them of collaborating in a “criminal enterprise that profits by making and collecting on illegal loans.”
The businessman took out a $150,000 loan for which he agreed to repay $224,850 at 215 percent interest via $3,748 daily debits from his bank account. Two weeks later, the businessman borrowed $350,000 — in part to repay the first one — at 430 percent interest, for which he owed $524,650 via $17,488 daily debits.
The businessman dropped the case.
Peretz didn’t return messages left by the Herald.
“We are very worried,” Coyne said. “If Doug gets in trouble with these high-risk loans and debts, we may be left with nothing.”
Cox boasts to buyers that he and Pearl are independently wealthy with $70 million in savings, but if his cash flow has dried up, they fear he can’t pay off mortgages, can’t obtain the clean title necessary to close and could declare bankruptcy.
“He may have thought, ‘I sold these too cheap and I can make more money if I resell,’ but that makes less sense every day because the market is cooling,” Parrish said. “Maybe he got in too deep and has problems paying lenders. He can’t close so he’s kicking the can down the road.”
The two sides of Doug Cox
Cox can be a charming salesman.
Or a belligerent bully.
Michael Coyne has seen both sides. But as a U.S. Army combat veteran, he is not intimidated.
“The last time I saw him he ran up to my car, leans in and says he’s hired a former CIA operative to tail me because my wife made disparaging comments on social media,” Coyne said. “Another time he told me, ‘Bring it!’ I deal with plenty of nasty lawyers on Wall Street and none of them have ever challenged me to a street fight.”
Lombardi has felt Cox’s wrath. Cox terminated Lombardi’s 3-year-old contract last month, accusing him of trespassing at his house at 2984 Coconut Ave. and making derogatory comments. Cox prohibits buyers from going on their properties and has installed surveillance cameras. But he allowed Lombardi to go inside last May with his family.
Eight months later, when Cox heard Lombardi called the FBI, Lombardi said, Cox canceled his contract. They are in mediation. Lombardi wants his deposit back, and believes Cox wants him out so he can list 2984 at a higher price and collect another $500,000 deposit.
Buyers are also wary of Cox because they’ve read a graphic police report from Sept. 6, 2020, when Cox and Pearl got into an argument.
Pearl, who describes Cox in the report as her “live-in boyfriend,” told police Cox began texting her with insulting names from the master bedroom where he was with their daughter as she put their 3-year-old son to bed in his room. Cox stormed in and hit her, choked her, pulled her hair and spit on her as their son watched, “terrified and screaming.” She wrote this description for police:
“He has a pattern of domestic violence and extreme childhood abuse and trauma which has left him with deep unresolved issues and anger problems. This has culminated into a cycle of violence with me since 2014. … He has repeatedly threatened that if I report it, it will destroy his life and in turn he will destroy mine and that of my family.”
Pearl also checked boxes asserting he has “threatened to conceal, kidnap or harm” their children and “intentionally injured or killed a family pet.”
Cox was charged with battery and domestic violence by strangulation and spent the night in jail, Miami-Dade Corrections records show. He was given a restraining order. Pearl dropped the charges.
Booking mug when Doug Cox was arrested and charged with battery and domestic violence by strangulation in 2020.
Cox has perfected the art of evasion.
“I call it the Doug Cox two-step,” Coyne said.
When buyers are able to chase him down on the phone — he avoids putting anything in writing — he swears he’s pushing against the forces obstructing him. He wants them living in their dream homes as ardently as they do.
A vacant lot on Woodridge, a sweet little street in the South Grove next to Merrie Christmas Park and its towering banyan trees, has been overtaken by vegetation. As people in Miami clamor for more housing, this spot where a cottage once stood has grown wild. Vines climb the trees instead of children. The scraping racket of a bulldozer echoes down the block.
On this patch, owned by the King of Coconut Grove, all is still. The ripe land, taking revenge, has reclaimed itself.
A ‘Do Not Enter’ sign is affixed to the front door of one of the 12 luxury townhouses on Coconut Avenue in Coconut Grove that have been built by Doug Cox of Drive Development. Buyers of the homes have been waiting years to move in.
Miami Herald Director of Research Monika Leal contributed to this report.
Florida prepares for influx of manatees suffering from red tide
Andrew Wulfeck – March 8, 2023
Video:Dozen manatees returned to the wild in Florida https://s.yimg.com/rx/martini/builds/54607967/executor.html
TAMPA – A massive bloom of harmful algae that has been intensifying off the west coast of Florida is now believed to be impacting the manatee population at a crucial time when biologists were cautiously optimistic that the species was on the path of rounding the corner from record die-offs.
The red tide was initially observed in the days after Hurricane Ian impacted areas around Fort Myers and has grown throughout the winter.
The Florida Fish and Wild Conservation Commission reports that levels of the organism, Karenia brevis, have reached concentrations of over 100,000 cells per liter – an amount that is ten times higher than the minimum level needed to impact wildlife and humans significantly.
Florida red tide count 3/8/2023
The U.S. Fish and Wildlife Service said it knows at least three recent cases of manatees being transported to SeaWorld’s recovery center in Orlando from West Florida.
“Those are fairly easy to care for once they are rescued. However, they do take up a bit of the rehab capacity because even though we can get the neurotoxin out of their system fairly quickly in just a matter of a few days, they may take up an entire pool while that’s happening,” said Terri Calleson, the Florida manatee recovery lead for the USFWS.
Several rescue centers around the state were already operating with the potential to quickly increase capacity due to an ongoing Unusual Mortality Event along the state’s east coast due to an increase in malnourished sea cows needing treatment over the past two years.
Over the last several months, additive-containing pools have mainly gone unused due to the apparent tailing of amounts of ill animals, but biologists stand at the ready in case figures start to rise again.
“We can’t put them back to the wild until the red tide cell counts subside for an extended period of time. So that’s going to strap us a little bit on rehab capacity, and we’re going to make some moves to try to address it,” said Calleson.
So far this year, the FWC reports 140 manatees have died – a figure below the pace of the last two record years.
The agency estimates there are only around 7,500 manatees left in Sunshine State, and if boaters see an animal in distress, they should inform the agency about the sighting by calling 888-404-3922.
Burning eyes, dead fish; red tide flares up on Florida coast
March 11, 2023
Red tide is observed near Pinellas County beaches off Redington Beach, Fla., during a flight with SouthWings volunteers on Friday, March 10, 2023. Florida’s southwest coast experienced a flare-up of the toxic red tide algae this week, setting off concerns that it could continue to stick around for a while. The current bloom started in October. (Douglas R. Clifford/Tampa Bay Times via AP)A health alert sign warns visitors to Sand Key Park of the presence of Red Tide in the surrounding water on Thursday, March 9, 2023, in Pinellas County, Fla. Florida’s southwest coast experienced a flare-up of the toxic red tide algae this week, setting off concerns that it could continue to stick around for a while. The current bloom started in October. (Douglas R. Clifford/Tampa Bay Times via AP)Red tide is observed at Clearwater Beach, Fla., during a flight with SouthWings volunteers on Friday, March 10, 2023. Florida’s southwest coast experienced a flare-up of the toxic red tide algae this week, setting off concerns that it could continue to stick around for a while. The current bloom started in October. (Douglas R. Clifford/Tampa Bay Times via AP)Dead fish lay at the high tide line on Clearwater Beach on Thursday, March 9, 2023, in Pinellas County, Fla. Florida’s southwest coast experienced a flare-up of the toxic red tide algae this week, setting off concerns that it could continue to stick around for a while. The current bloom started in October. (Douglas R. Clifford/Tampa Bay Times via AP)Red tide is observed at Clearwater Beach, Fla., during a flight with SouthWings volunteers on Friday, March 10, 2023. Florida’s southwest coast experienced a flare-up of the toxic red tide algae this week, setting off concerns that it could continue to stick around for a while. The current bloom started in October. (Douglas R. Clifford/Tampa Bay Times via AP)
SARASOTA, Fla. (AP) — Residents are complaining about burning eyes and breathing problems. Dead fish have washed up on beaches. A beachside festival has been canceled, even though it wasn’t scheduled for another month.
Florida’s southwest coast experienced a flare-up of the toxic red tide algae this week, setting off concerns that it could continue to stick around for a while. The current bloom started in October.
The annual BeachFest in Indian Rocks Beach, Florida, sponsored by a homeowners’ association, was canceled after it determined, with help from the city and the Pinellas County Health Department, that red tide likely would continue through the middle of next month when the festival was scheduled.
“Red Tide is currently present on the beach and is forecasted to remain in the area in the weeks to come,” the Indian Rocks Beach Homeowners Association said in a letter to the public. “It is unfortunate that it had to be canceled but it is the best decision in the interest of public health.”
Nearly two tons of debris, mainly dead fish, were cleared from Pinellas County beaches and brought to the landfill, county spokesperson Tony Fabrizio told the Tampa Bay Times. About 1,000 pounds (454 kilograms) of fish have been cleared from beaches in St. Pete Beach since the start of the month, Mandy Edmunds, a parks supervisor with the city, told the newspaper.
Red tide, a toxic algae bloom that occurs naturally in the Gulf of Mexico, is worsened by the presence of nutrients such as nitrogen in the water. The Florida Fish and Wildlife Conservation Commission warns people to not swim in or around red tide waters over the possibility of skin irritation, rashes and burning and sore eyes. People with asthma or lung disease should avoid beaches affected by the toxic algae.
The Florida Fish and Wildlife Conservation Commission on Friday reported that it had found red tide in 157 samples along Florida’s Gulf Coast, with the strongest concentrations along Pinellas and Sarasota counties.
More Retiree Health Plans Move Away From Traditional Medicare
Mark Miller – March 11, 2023
President Joe Biden delivers remarks on Social Security and healthcare costs at University of Tampa, Fla. on Feb. 9, 2023. (Haiyun Jiang/The New York Times)
Bob Bentkowski, a retired New York City firefighter, has a rare, painful disease that caused his kidneys to swell almost to the size of basketballs. He needed a transplant, and in the fall of 2021, he found a donor after waiting for years — but he was unsure whether Medicare would cover his surgery.
New York City has long provided its retired employees with comprehensive health benefits that pay for most of their Medicare costs. But with his transplant approaching, the city, and a coalition of its labor unions, had thrown Bentkowski a curveball. Aiming to save $600 million annually, they were negotiating to shift 250,000 retirees out of traditional fee-for-service Medicare into a privately operated Medicare Advantage plan.
“I was panicking about what might happen if I moved over to this new plan, since I was only a month away from the surgery,” Bentkowski said. But after hours on the phone with the insurance company, he was told that it couldn’t give him an answer until he enrolled. “They just give you the runaround. How am I going to join the plan when I don’t know what it will cover?”
Ultimately, Bentkowski’s surgery was covered under traditional Medicare. The city’s plans for Medicare Advantage became bogged down in litigation and political battles, with the opposition led by a group of New York City retirees who organized to fight not only the city but their own unions. Their battle has continued into this year, with a group representing city workers voting Thursday to approve the latest Advantage proposal.
The fight in New York City is a highly visible example of a nationwide shift in the way some retirees receive health insurance benefits from former employers, both in the public and private sector. It pits the drive to control health care costs against retired workers’ pocketbook and health concerns.
Many employers have dropped these benefits over the past several decades, and those that still offer them are shifting retirees into Medicare Advantage plans at a rapid pace.
Half of large employers offering benefits to Medicare-age retirees have contracts with Medicare Advantage plans, nearly double the share in 2017, according to the Kaiser Family Foundation. And roughly 44% don’t give retirees a choice to use traditional Medicare within their programs. Most cited lower cost as the key reason.
The growth is part of a bigger story about Medicare Advantage expansion. Advantage is an alternative to traditional Medicare offered by insurance companies, and it uses managed-care techniques to control costs. Nearly half of Medicare beneficiaries were enrolled in Advantage plans last year, more than double the rate in 2007. And enrollment is projected to cross the 50% threshold as soon as this year, according to the foundation.
Retirees who are shifted into Medicare Advantage plans may not fully understand the major differences from traditional Medicare. These include the requirement to use physicians and hospitals in their plan’s narrower network, and reduced access to care in some instances. A federal investigation concluded last year that tens of thousands of people in Medicare Advantage plans were denied necessary care that should be covered.
The shift will also mean higher costs for taxpayers and all Medicare beneficiaries, some experts say. Payments by the federal government to Advantage plans average 102% of its spending on the fee-for-service traditional program, and that contributes to higher overall Medicare spending. This occurs in part because a bonus system awards extra dollars to plans that achieve high quality ratings from Medicare.
Advantage plans have also been found to submit to Medicare inflated bills that over-diagnose their patients. According to federal audits, the practice of “upcoding” crossed the line into fraud. Excess payments totaled $12 billion in 2020, according to the independent Medicare Payment Advisory Commission, which advises Congress.
The higher costs add financial pressure to Medicare’s hospital insurance (Part A) trust fund, as well as the taxpayers, beneficiaries and state-run Medicaid programs that fund the Part B program. The Part A trust fund is forecast to run dry in 2028, leaving revenue sufficient to meet 90% of the program’s obligations.
“On the one hand, Medicare Advantage allows employers to continue to offer retiree health benefits and potentially broaden benefits, and may lower their financial liability for retiree health,” said Tricia Neuman, senior vice president of the Kaiser Family Foundation. “It also has the possibility of increasing Medicare spending.”
Insurers argue that Medicare Advantage group plans are simply one choice available to retirees. “Medicare rules require that retirees always have the option to opt out of enrollment in a group Medicare Advantage plan in favor of other forms of coverage that may be available,” said Heather Soule, a spokesperson for UnitedHealthcare, one of the largest providers of Advantage plans.
But for many retirees, joining an Advantage plan can be a difficult decision to reverse. Traditional Medicare should be paired with supplemental coverage — often a Medigap policy — to protect against potentially high out-of-pocket costs. But the best time to buy a Medigap policy is during the six months after you sign up for Part B (outpatient services), when insurers cannot reject you, or charge a higher premium, because of preexisting conditions. After that time, you can be rejected or charged more in most states.
What’s more, when employers make this transition, retirees often face a choice: Join an Advantage plan or lose the benefit.
“It really takes away choice,” said Marilyn Moon, an economist and a former trustee of both Social Security and Medicare. “The whole idea of Medicare Advantage was supposed to be to give people more choice, not less.”
Seeking Cost Savings
Medicare Advantage offers employers an opportunity to reduce costs substantially. They and unions traditionally have provided a retiree health benefit that fills the gaps in traditional Medicare by paying for deductibles and co-pays, and by providing other benefits. When an employer contracts with a Medicare Advantage insurer, retirees get all of their benefits, including their Medicare-covered benefits, from this Medicare Advantage plan.
In New York City, labor unions representing retirees have been working with the city on its planned shift to Advantage. They promoted the projected savings and their ability to use their bargaining clout to negotiate for far more generous features than those in plans available for individual purchase.
“When we looked at this, we saw that we could design our own plan that would get the same benefits and even more for our retirees,” said Michael Mulgrew, president of the United Federation of Teachers, the city teachers union. “One of our greatest assets is the ability to use our buying power to get that done and, more importantly, to set up an accountability system and a contract where we’re holding the provider to every single word in our contract.”
As the plan was originally envisioned in 2018, retirees who wanted to stay on traditional Medicare could do so if they paid an estimated $191 per month to cover its higher cost to the city. But a grassroots group founded in 2021, the NYC Organization of Public Service Retirees, sued over the plan, taking its battle to the City Council and organizing through Facebook, YouTube and email.
On Thursday, the Municipal Labor Committee, which represents the city’s 102 unions, approved the latest plan to offer only Medicare Advantage starting in September.
In a statement Thursday, Mayor Eric Adams said the new arrangement “improves upon retirees’ current plans,” and includes a lower deductible, a cap on out-of-pocket expenses, and new benefits. “We also heard the concerns of retirees and worked to significantly limit the number of procedures subject to prior authorization under this plan,” Adams said. “This Medicare Advantage Plan is in the best interests of retirees and taxpayers.”
The retiree group says it is considering its next steps, possibly including new litigation. “Labor should never support privatizing public health care or stripping retirees of vested earned benefits,” the group’s founder, Marianne Pizzitola, a retired city Fire Department emergency medical services employee, said in a statement.
“This is a daily anxiety the city and the Municipal Labor Committee are putting us through,” she added in an interview.
Bentkowski felt that anxiety in 2021 as he tried to learn whether an Advantage plan would cover his kidney transplant. He was among the first firefighters to respond at the World Trade Center on Sept. 11, 2001, and a lung-related disability that developed afterward forced him to retire at age 45. He qualifies for Medicare now, at 53, because he receives Social Security Disability Insurance.
“The Medicare Advantage plan might be good for some people,” Bentkowski said. “But you just can’t squeeze everyone into one plan and say it’s going to work.”
The protection of labor agreements and the municipal code has given opponents of the New York City plan leverage to fight the Medicare Advantage transition. In the corporate sector, retiree benefits are offered at employers’ discretion — but that hasn’t stopped some retirees from trying to fight these transitions.
IBM introduced two new Medicare Advantage plans this year for its large retired workforce, replacing a plan that paid for supplemental Medigap coverage along with prescription drugs, dental and vision.
IBM retirees were given the option to stick with the old benefit — but they would lose access to balances in their health reimbursement arrangements, an employer-funded plan that reimburses certain medical expenses and insurance premiums. In most cases, employers retain the right to change this type of benefit, says Trevis Parson, chief actuary for individual marketplace business at the benefits consulting firm Willis Towers Watson.
“Most plan sponsors include language in their plan documents explicitly reserving rights to amend the plan,” he said. Some retirees were outraged by that tactic, and by the announcement of the planned transition with relatively short notice in September.
“They sprung it on us — either take Medicare Advantage or forfeit your balance,” said Steve Bergeron, who retired from IBM in 2009 after 29 years.
In a statement, IBM said that for 2023, two Medicare Advantage PPO options have “enhanced design elements above and beyond what participants were previously able to obtain with individual policies.”
Like many group plans, the new IBM offering features copays and annual deductibles much lower than those found in individual plans, and wider networks of providers. But it’s not clear how long those features will remain.
“There’s no guarantee of anything from IBM,” Bergeron said. “What if these terms were just to get people to sign up?”
Neuman of Kaiser Family Foundation shares that concern. “The question is, what happens over the longer term for retirees, perhaps five or 10 years from now, when the circumstances may change and it may be more difficult to maintain the favorable terms of a negotiated contract?” she asked.
Bergeron has been organizing retirees on social media to fight the change and with an online petition calling on IBM to drop the plan. He has also tried to recruit lawyers to sue the company, but most have advised that the case is not strong, since the retiree benefit is discretionary.
After holding out against the change, Bergeron reluctantly joined one of the Advantage plans, not wanting to forfeit the $27,000 balance in his health reimbursement arrangement.
“I never dreamed I would join, but I did,” he said. “I waited until the last minute, and signed up on the last day that I could. I really was fighting it in my brain.”
US turns to new ways to punish Russian oligarchs for the war
Fatima Hussein – March 12, 2023
Andrew Adams, director of the Justice Department’s KleptoCapture task force, designed to enforce the economic restrictions imposed on Russia and its billionaires, speaks to the Associated Press in an interview at the AP bureau in Washington, Wednesday, March 1, 2023. (AP Photo/Andrew Harnik)
WASHINGTON (AP) — The U.S. has begun an aggressive new push to inflict pain on Russia’s economy and specifically its oligarchs with the intent of thwarting the Kremlin’s invasion of Ukraine.
From the Treasury Department to the Justice Department, U.S. officials will focus on efforts to legally liquidate the property of Russian oligarchs, expand financial penalties on those who facilitate the evasion of sanctions, and close loopholes in the law that allow oligarchs to use shell companies to move through the U.S. financial system.
Andrew Adams, who heads the U.S. government’s KleptoCapture task force, designed to enforce the economic restrictions within the U.S. imposed on Russia and its billionaires, told The Associated Press that the group is prioritizing its efforts to identify those who help Russians evade sanctions and violate export controls.
“These illicit procurement networks will continue to take up an ever-increasing amount of our bandwidth,” said Adams, who also serves as acting deputy assistant attorney general.
So far, more than $58 billion worth of sanctioned Russians’ assets have been blocked or frozen worldwide, according to a report last week from the Treasury Department. That includes two luxury yachts each worth $300 million in San Diego and Fiji, and six New York and Florida properties worth $75 million owned by sanctioned oligarch Viktor Vekselberg.
The U.S. has begun attempts to punish the associates and wealth managers of oligarchs — in Vekselberg’s case, a federal court in New York indicted Vladimir Voronchenko after he helped maintain Vekselberg’s properties. He was charged in February with conspiring to violate and evade U.S. sanctions.
The case was coordinated through the KleptoCapture group.
“I think it can be quite effective to be sanctioning facilitators,” Adams said, calling them “professional sanctions evasion brokers.”
A February study led by Dartmouth University researchers showed that targeting a few key wealth managers would cause far greater damage to Russia than sanctioning oligarchs individually.
Other attempts to inflict pain on the Russian economy will come from the efforts to liquidate yachts and other property owned by Russian oligarchs and the Kremlin, turning them into cash to benefit Ukraine.
Ukrainian President Volodymyr Zelenskyy has long called for Russian assets to be transferred to Ukraine, and former Biden administration official Daleep Singh told the Senate Banking Committee on Feb. 28 that forfeiting Russia’s billions in assets held by the U.S. is “something we ought to pursue.”
Singh suggested the U.S. should “use the reserves that we have immobilized at the New York Fed, transfer them to Ukraine and allow them to put them up as collateral to raise money.” He ran the White House’s Russia sanctions program when he was national security adviser for international economics.
Adams said the KleptoCapture task force is pursuing efforts to sell Russians’ yachts and other property, despite the legal difficulties of turning property whose owners’ access has been blocked into forfeited assets that the government can take and sell for the benefit of Ukraine.
He stressed that the U.S. will operate under the rule of law. “Part of what that means is that we will not take assets that are not fully, totally forfeited through the judicial procedures and begin confiscating them without a legal basis,” Adams said.
He added that the task force has had “success in working with Congress and working with folks around the executive branch in obtaining authorization to transfer certain forfeited funds to the State Department.”
The Treasury Department said on Thursday that the government is “paving the way” for $5.4 million in seized funds to be sent as foreign assistance to Ukraine.
Additionally, strengthening laws that serve as loopholes for sanctions evaders will also be a priority across federal departments, officials say.
The Financial Crimes Enforcement Network, under Treasury, is expected to roll out rules to address the use of the U.S. real estate market to launder money, including a requirement on disclosing the true ownership of real estate.
Steven Tian, director of research at the Yale Chief Executive Leadership Institute, who tracks companies’ disengagement from Russia, said the new real estate rule is long overdue.
“I would point out that it’s not just unique to Russian oligarchs. As you know, the real estate market makes use of shell companies in the United States, period,” Tian said.
Erica Hanichak, the government affairs director at the FACT Coalition, a nonprofit that promotes corporate transparency, urged the administration to put the rule forward by late March, when the U.S. co-hosts the second Summit for Democracy with the governments of Costa Rica, Netherlands, South Korea and Zambia.
“We’re viewing this as an opportunity for the United States to demonstrate leadership not only in addressing corrupt practices abroad, but looking to our own backyard and addressing the loopholes in our system that facilitate corruption internationally,” she said.
Russia turns to high-tech hypersonic missiles in latest attack on Ukraine
Imtiaz Tyab – March 10, 2023
Near Dnipro, southeast Ukraine — Across Ukraine, people were left Friday to pick up the pieces of Russia’s latest blistering coordinated assault, a barrage of missiles the previous day that left at least six people dead and knocked out power to hundreds of thousands more. The attack saw Moscow turn some of its most sophisticated weapons to elude Ukraine’s potent, Western-supplied air defense systems.
Among the more than 80 missiles unleashed on Ukrainian cities and infrastructure Thursday were six “Kinzhal” [Dagger] hypersonic cruise missiles, according to Ukrainian air force spokesman Yurii Ihnat. The jet-launched rockets are believed to be capable of reaching speeds up to Mach 10 or 12, double the speed of sound (anything over Mach 5 is considered hypersonic).
People look at the ruins of houses destroyed by a Russian missile that hit a residential area in the village of Velika Vilshanytsia, near Lviv, Ukraine, March 9, 2023. / Credit: Pavlo Palamarchuk/Anadolu Agency/Getty
Ukraine has acknowledged that it cannot intercept the missiles, which can carry conventional or nuclear warheads. The Russian military has used them at least once previously during the war, about a year ago.
Fitted with conventional warheads hypersonic missiles don’t inflict significantly more damage than other, less-sophisticated rockets, but their ability to avoid interception makes them more lethal. It also makes them more valuable resources for Russia’s military to expend, which may be further evidence of long-reported ammunition and missile shortages that Vladimir Putin has asked his allies in Iran, North Korea and even China to remedy.
Russia’s Defense Ministry said it hit military and industrial targets “as well as the energy facilities that supply them” with its attack on Thursday.
In his daily video address to the Ukrainian people, President Volodymyr Zelenskyy was as defiant as ever after the latest assault.
“No matter how treacherous Russia’s actions are, our state and people will not be in chains,” he said. “Neither missiles nor Russian atrocities will help them.”
While Russia’s air war has reached far across the country, hitting targets even in the far-western city of Lviv on Thursday, the worst of the suffering has been for Ukrainian civilians in the east, where Russian forces have seized a massive swath of the Donbas region — and where they’re pushing hard to seize more.
There, Thursday’s assault was met with a mixture of defiance and disgust.
“This is horrible,” Vasyl, a resident of hard-hit Kherson said. “I don’t have any other words, other than Russia is a horrid devil.”
Moscow’s destruction is evident across the small towns and villages of eastern Ukraine, including in Velyka Novosilka. The town right on the edge of Russian-held ground was once home to 5,000 people, but it’s become a ghost town.
Only about 150 people were still there, and CBS News found them living underground in the basement of a school. It was dark, without electricity or running water, and most of those surviving in the shelter were elderly.
Oleksander Sinkov speaks with CBS News in the basement of a school in the southeast Ukrainian village of Velyka Novosilka, where he took shelter with dozens of other mostly-elderly residents after his home was destroyed early in Russia’s invasion. / Credit: CBS News/Agnes Reau
Oleksander Sinkov moved in a year ago after his home was destroyed.
Asked why he didn’t leave to find somewhere safer, he answered with another question: “And go where? I have a small pension and you can’t get far with that.”
The residents of the school pitch in to help cook and take care of other menial chores as they can, but there’s very little normal about their life in hiding.
Inside the basement of a school in the southeast Ukrainian village of Velyka Novosilka, where dozens of mostly-elderly residents are taking shelter from the war outside. / Credit: CBS News/Agnes Reau
Iryna Babkina was among the youngest people we met in the school. She stayed behind to care for the elderly.
“They cling to this town,” she said of her older neighbors. “We have people here who left and then came back because they couldn’t leave the only home they’ve ever known.”
Iryna Babkina speaks with CBS News in the basement of a school in Velyka Novosilka, southeast Ukraine, where she is sheltering from Russia’s war and helping to look after other residents. / Credit: CBS News/Agnes Reau
It had been weeks since Russia carried out a coordinated attack across the country like Thursday’s, but in the front-line towns like Velyka Novosilka in the east, the shells fall every day, leaving those left behind to survive, barely, however and wherever they can.
Russian wives beg Putin to stop sending husbands into ‘meat grinder’
George Styllis – March 12, 2023
More than a dozen Russian women made the brave appeal to the president
A group of Russian women have appealed to Vladimir Putin to stop sending their husbands and children to the front line like ‘meat’ without adequate training.
In a video shared online, the women say the mobilisation of new recruits to the army has been a betrayal after the Russian President said they would not be sent to the front line immediately.
The women say their sons, husbands and brothers have been “thrown like meat” to storm fortified areas in Ukraine. In the video shared by the independent Telegram news channel SOTA, they can be seen standing in a group holding a sign in Russian that reads, “580 Separate Howitzer Artillery Division”, dated March 11, 2023.
“My husband… is located on the line of contact with the enemy,” one woman says.
Putin ordered the mobilization of more than 300,000 men in September – the first since 1941 – to the shock of many ordinary Russians. Of those who were drafted, many have perished.
Among the reasons for the high casualties have been poor training and a lack of equipment. New recruits have reported being sent to battle with old weapons and unsuitable clothing.
A team of independent Russian journalists called the No Future project says authorities have attempted to cover up the deaths of dozens of mobilised Russians from Volgograd who were sent to fight without any ammunition. The group says new recruits are also deprived of first-aid kits and hot food, while during one training session the men just “played on their phones” for two weeks.
“They are prepared to serve their homeland but according to the specialisation they’ve trained for, not as stormtroopers. We ask that you pull back our guys from the line of contact and provide the artillerymen with artillery and ammunition,” said the woman.
The group’s criticism of the Kremlin comes amid growing anger among Russian wives and mothers over the war.
He has also said “mistakes” were made in the call-up to reinforcements. Despite that, the Kremlin has hinted at a second mobilisation.
MPs have proposed a law that will give Russia’s National Guard more power to enforce military draft orders and another that will allow property to be confiscated from Russians who flee abroad.
Ethnic minorities often bear the brunt of the Russian military’s meat-grinder fighting tactics, according to the report. In Astrakhan, for example, about 75% of the casualties come from the city’s Kazakh and Tatar minorities.
Meanwhile, the populations of Russia’s richest cities – Moscow and St. Petersburg – remain relatively untouched by the carnage in Ukraine. This is especially true for the Kremlin elite.
UK intelligence analysed the families of Russian top officials visible in the first two rows of the audience during the Russian dictator Vladimir Putin’s speech on state of the nation. None of their children are known to serve in the army.
As the Russian Ministry of Defense tries to address the issue of a constant shortage of combat personnel, the isolation of the well-off and more influential part of Russian society from military problems is likely to remain a major consideration, UK intelligence concluded.
