U.S. Century to OK details of new deal

U.S. Century Bank is expected to sign off on Monday on its letter of intent — the framework for a plan to recapitalize the bank.

Under the deal, a local group of investors, led by Jimmy Tate of Tate Capital and Sergio Rok of Rok Enterprises, will bring in fresh capital and wipe out the Doral bank’s bad loans, while allowing it to operate independently.

The investor group is expected to inject $50 million in capital into the bank, becoming majority owners. In addition, the group will pay about $90 million to buy certain loans, including all $98 million of U.S. Century’s non-performing loans, said U.S. Century President and Chief Executive Carlos J. Dávila. The deal would also provide for a negotiated amount to be paid to the federal government to repay U.S. Century’s $50.2 million in TARP funds.

A definitive agreement, based on the letter of intent, is expected next month. Pending shareholder and regulatory approval, the deal could be completed by mid-year, Dávila said.

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A Super Bowl may be required for Sun Life Stadium fix-up taxes

Miami-Dade Mayor Carlos Gimenez said Monday he may require South Florida hosting a Super Bowl first as a condition for using county hotel taxes to fund part of a $400 million renovation of Sun Life Stadium.

At Monday morning news conference announcing a referendum requirement for the taxes, Gimenez also said he would like to have voters give the county the option to withhold the money if the NFL snubs Miami-Dade in its Super Bowl bid.

"I don't want to be eligible for anything," Gimenez said. "I want to be awarded."

Over the weekend, the Dolphins dropped objections to a countywide referendum on their stadium plan and now are pushing for a vote in time for the May 22 meeting of NFL owners to decide between Miami Gardens and the San Francisco area for the 2016 Super Bowl. The loser will take on Houston for the 2017 Super Bowl, but the '16 game is considered the big prize since it is the 50th game.

Gimenez said he would not call for a referendum until he has approved a financing deal with the Dolphins. "We haven't started negotiations. It doesn't mean a deal is going to be done," Gimenez said.

Dee said the Dolphins welcome the referendum, and did not realize it could be held between the team's January unveiling of their financing proposal and the May 22 decision on Super Bowl.

The team has been pushing for tax dollars for Sun Life since 2010, and has not proposed a referendum before. Dee said Monday the Dolphins are confident the public will support the plan.

"We believe a decision by the voters will go our way," Dee said.

The county needs 60 days' notice for a referendum, meaning the language must be approved by commissioners in March.

The Dolphins proposed increasing mainland hotel taxes in Miami-Dade to 7 percent from 6 percent. The increase would require a change in state law, and Dee said the referendum will increase chances of the team's bill passing in Tallahassee.

Gimenez said a special election would cost between $3 million and $4 million, and that state law bars a private company from reimbursing taxpayers for an election. Dee said he would defer to Gimenez on the reimbursement question.

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1 dead after blaze rips through Harlem apartment building

A deadly fire swept through a Harlem housing project -- killing one, authorities said.

The blaze broke out on the second floor of a building in the Taft Houses on Fifth Avenue and West 115th Street at 4:15 a.m., the FDNY said.

Rescue workers pulled a 30-year-old man from the apartment in cardiac arrest, police said. The victim was rushed to Mount Sinai Hospital, where he was pronounced dead.

Firefighters extinguished the flames and placed the fire under control at 4:45 a.m., the FDNY said.

The cause of the fire is under investigation by the Fire Marshal, police said.

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Green cards for sale at a South Beach hotel: Competition is on for EB5 investment visas

If David Hart gets his way, South Beach’s 42-room Astor Hotel will be on a hiring spree this year as it adds concierge service, a roof-top pool, an all-night diner, spa and private-car service available 24 hours a day.

New hires will be crucial to Hart’s business plan, since foreign investors have agreed to pay about $50,000 for each job created by the Art Deco boutique.

The Miami immigration lawyer specializes in arranging visas for wealthy foreign citizens under a special program that trades green cards for investment dollars. Businesses get the money and must use it to boost payroll. The minimum investment is $500,000 to add at least 10 jobs to the economy. That puts the pressure on Hart and his partners at the Astor to beef up payroll dramatically, with plans to take a hotel with roughly 20 employees to one with as many as 100 workers.

“My primary responsibility is to make something happen here over the next two years that will create the jobs we need,’’ Hart said a few steps away from a nearly empty restaurant on a recent weekday morning. “It’s all going to be transformed.”

Though established in the 1990s, the “EB5” visas soared in popularity during the recession as developers sought foreign cash to replace dried-up credit markets in the United States.

Chinese investors dominate the transactions, accounting for about 65 percent of the nearly 9,000 EB5 visas granted since 2006. South Korea finishes a distant second at 12 percent and the United Kingdom holds the third-place slot at 3 percent. If Latin America and the Caribbean were one country, they would rank No. 4 on the list, with 231 EB5 visas granted, or about 3 percent of the total.

Competition has gotten stiffer for the deep-pocketed foreign investors willing to pay for green cards. The University of Miami’s bio-science research park near the Jackson hospital system raised $20 million from 40 foreign investors under the EB5 program, most of them from Asia. The money went into the park’s first building; visa brokers are waiting to see if the second building will proceed so they can offer a new pool of potential green-card sales.

In Hollywood, the stalled $131 million Margaritaville resort had hoped to raise about $75 million from EB5 investors before ditching that plan last year to pursue more traditional financing. A retail complex by developer Jeff Berkowitz in Coral Gables also launched a program to raise $50 million in EB5 money for the project, Gables Station. Hart worked with other EB5 investors to back pizza restaurants in Miami and South Beach. A limestone mine in Martin County also was backed by EB5 dollars.

This year, the city of Miami itself is expected to get into the business by setting up an EB5 program to raise foreign cash for a range of city businesses and developments. The first would be the tallest building in the city — developer Tibor Hollo’s planned 85-story apartment tower, the Panorama, in downtown Miami.

With a construction cost of about $700 million, Miami’s debut EB5 venture hopes to raise about $100 million from foreign investors, said Laura Reiff, the Greenberg Traurig lawyer in Virginia working with Miami on the EB5 effort. “This is a marquis project,’’ she said.

The arrangement is a novel one for Miami, with the city planning to help a private developer raise funds overseas for a new high-rise. And it would allow Hollo and future participants to tout the city of Miami’s endorsement when competing with other Miami-area projects for EB5 dollars. “We will have the benefit of the brand of the city of Miami,’’ said Mikki Canton, the $6,000-a-month city consultant heading Miami’s EB5 effort. “A lot of these others are privately owned and they won’t have that brand.”

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Miami-Dade mayor disappointed at Major League Baseball over All-Star Game

Miami-Dade Mayor Carlos Gimenez was swept into office in part because of his opposition to the public financing for the Marlins’ new baseball stadium.

But that doesn’t mean he was happy when Major League Baseball awarded the 2015 All-Star Game to Cincinnati. Marlins President David Samson said last year he hoped to host the game, continuing a streak of All-Star games at new ballparks. That was before the team decimated its roster and chopped its payroll after last season.

After MLB Commissioner Bud Selig made the Cincinnati announcement last month, Gimenez sent him a letter expressing his disappointment. And the mayor phoned Selig last week, according to Gimenez’s calendar.

“[N]ow that the facility is built and operating, it is my responsibility to ensure its greatest benefit to our residents,” Gimenez wrote.

“Public sentiment regarding the Stadium is at an all-time low, and now we are further disappointed by the recent announcement...[I]t is clear that Miami has been benched once again, this time by Major League Baseball.”

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Joe Paterno's family issues report challenging FBI findings

STATE COLLEGE, Pa. — A new report commissioned by Joe Paterno's family challenges the conclusion by former FBI director Louis Freeh that the late Penn State coach conspired to conceal child sex abuse allegations against former defensive coordinator Jerry Sandusky.

An executive summary of the critique, released Sunday, said the "observations" of Paterno by Freeh in July were unfounded. Former US Attorney General Dick Thornburgh, one of the experts assembled by the family's lawyer to review the report Freeh compiled for Penn State, called that document fundamentally flawed and incomplete.

AFP/Getty Images

Joe Paterno

A lack of factual support for the Freeh report's "inaccurate and unfounded findings related to Mr. Paterno and its numerous process-oriented deficiencies was a rush to injustice and calls into question" the report's credibility, Thornburgh was quoted as saying in the report.

The family released what it billed as an exhaustive response to Freeh's work, based on independent analyses, on the website paterno.com.

"We conclude that the observations as to Joe Paterno in the Freeh report are unfounded, and have done a disservice not only to Joe Paterno and the university community," the family's report said, "but also to the victims of Jerry Sandusky and the critical mission of educating the public on the dangers of child sexual victimization."

Freeh's findings also implicated former administrators including university president Graham Spanier, athletic director Tim Curley and retired vice president Gary Schultz. Less than two weeks after the Freeh report was released in July, the NCAA acted with uncharacteristic speed in levying massive sanctions against the football program for the scandal.

"Taking into account the available witness statements and evidence, it is more reasonable to conclude that, in order to avoid the consequences of bad publicity, the most powerful leaders at Penn State University — Messrs. Spanier, Schultz, Paterno and Curley — repeatedly concealed critical facts relating to Sandusky's child abuse" from authorities, trustees and the university community, Freeh wrote in releasing the report.

The former administrators have vehemently denied the allegations. So, too, has Paterno's family, though it reserved more extensive comment until its own report was complete.

The counter-offensive began in earnest this weekend. The family's findings said that Paterno:

— Never asked or told anyone not to investigate an allegation against Sandusky 12 years ago Saturday, Feb. 9, 2001.

— Never asked or told former administrators not to report the 2001 allegation.

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Mega mansion frenzy: Buyer snaps up Pat Riley’s $16M home to level it, rebuild

Miami Heat President Pat Riley sold his spectacular bayfront mansion in gated Gables Estates for $16.8 million last March.

The 12,856-square-foot Mediterranean-style dream house at 180 Arvida Parkway has a theater, wine cellar, library, and a sprawling pool with waterfalls and an aqua bar.

But that’s all coming down.

Turns out the lure was the lot: a rare fingertip of prime land, nearly two acres, jutting into the turquoise waters of Biscayne Bay.

In December, the buyer — listed as 180 Arvida LLC represented by Miami attorney Mark Hasner — presented the city of Coral Gables with plans to tear down the home, built in 1991, and erect an even grander estate along the 900 linear feet of bayfront.

“Most people would move in and be perfectly happy, but clients are looking for perfection — really good stuff,” said Jorge Uribe, a senior vice president at One Sotheby’s International Realty, who wasn’t involved but sold an even bigger trophy property last year: a $39.4 million estate at 14 Indian Creek Dr., on Indian Creek Island in Indian Creek Village, dubbed “Miami’s Billionaire Bunker” by Forbes magazine.

“The trend in the last several years is a demand for very high-quality product. People are looking for really good locations, really good materials, and they’re willing to pay for it,” Uribe said.

Miami’s ultra-luxury market is on fire. Prices for the fanciest single-family homes and condominiums have soared to levels never before seen in the area, fueled by strong foreign demand and renewed interest from New Yorkers and others in the Northeast.

With Miami’s global image burnished by Art Basel Miami Beach and the debut of other cultural and entertainment venues, the city is emerging as an even greater magnet for the world’s super-rich.

In January, a penthouse at the Setai Resort & Residences on Miami Beach fetched $27 million, a new high for a Miami-Dade condominium. “Every building we do business in is at its highest price of all time,” said Mark Zilbert, president of Zilbert International Realty, which represented the buyer in the Setai deal.

Last August, a sleek, new home, built on spec at 3 Indian Creek Dr., sold for $47 million, a record high for a Miami-Dade residence. The buyer, whose identity has not been revealed, is Russian.

“People are realizing how valuable the bay waterfront is,” said Oren Alexander, co-founder of the Alexander Group at Douglas Elliman Real Estate, who co-listed the 3 Indian Creek property with The Jills team at Coldwell Banker and represented the buyer for the home. His father, Shlomy Alexander, developed the property with partner Felix Cohen.

Shlomy Alexander is working on two more extravagant spec homes — one at 30 Indian Creek Dr. and a second that is set to break ground shortly at 252 Bal Bay Dr. in Bal Harbour, his son said. Plans envision a tropical modern-style project that fuses the indoors and outdoors — a concept popular in Brazil.

The elder Alexander recently traveled to Italy to shop for exclusive stone for the projects, said the son.

“It’s really trending to the ultra-luxury. All sorts of exotic materials — exotic woods, exotic marbles, exotic stones,” said Sean Murphy, an executive vice president at Coastal Construction, a major builder of luxury hotels and condominiums that also has erected some of the most extravagant mansions in the region. “Everything is so exotic.”

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Miami-Dade police officer convicted in lewdness case

A Miami-Dade police officer, who routinely stopped women drivers without cause and engaged in lewd conversations, was convicted in federal court Friday.

Prabhainjana Dwivedi, a seven-year veteran, was found guilty on six of seven counts of depriving people of their civil rights. He was found not guilty on the seventh count involving an undercover police officer.

Following the ruling, U.S. District Judge Jose Martinez immediately remanded Dwivedi back into custody pending sentencing scheduled for sometime in April, according to prosecutor Karen Gilbert. The trial began Monday.

Dwivedi faces up to a year in prison for each count.

A grand jury indicted Dwivedi after he was arrested by FBI agents Sept. 5 at Miami-Dade police headquarters.

Dwivedi, 33, was charged after an investigation into complaints filed for stops made in May and June of 2011 in which he detained “numerous women” for “unreasonable” length of time “without probable cause, reasonable suspicion or other lawful authority to conduct a stop,” a criminal complaint said.

None of the questionable stops were ever listed on his daily reports or called into dispatch.

According to the complaint, Dwivedi who worked overnight patrolling an area from Key Biscayne to Jackson Memorial Hospital, stopped a 24-year-old bartender who was driving from South Beach to Broward County on her way home from work at about 5:30 a.m. on June 25, 2011, in the area of the Golden Glades interchange.

The bartender, identified as M.F., was accused by Dwivedi of driving under the influence. Pleading her innocence, she requested to have a sobriety test performed. Her request was refused.

Noticing a child’s safety seat in the back seat, Dwivedi threatened M.F. that she would lose custody of her son if she were to be arrested on DUI charges, the criminal complaint said. Then the conversation turned sexual.

According to the complaint, Dwivedi, began to inquire about her surgically enhanced breasts and asked “if she had any scars or incisions from the surgery.”

Dwivedi then asked to see the scars. M.F. obeyed, lifting her shirt and exposing her breasts.

According to the complaint written by FBI special agent Susan Funk, “M.F. stated that Dwivedi did not touch her breast.”

, Dwivedi then allowed her to drive home, but said he would follow her to make sure she got safely home. Once at M.F.’s residence, Dwivedi said he was thirsty and asked for a glass of water. Once inside her home, he lingered for an hour speaking of his personal life.

In the end, Dwivedi left without ever reporting anything to dispatch or making any notes of the stop in his daily reports, the criminal complaint said.

A month earlier, Dwivedi made another questionable stop.

According to the complaint, Dwivedi stopped a19-year-old woman at 2:20 a.m. on May 27, 2011, on her way home from a nightclub with two friends. The woman, identified, as A.R., was informed the traffic stop was a result of a failure to turn on her headlights.

Dwivedi also claimed she was driving under the influence, but A.R. disputed the accusation.

A.R. was instructed to sit in the back seat of his marked cruiser and then Dwivedi “instructed A.R. to lower the zipper on the front of her dress down past her breasts to her mid-stomach” according to the complaint.

An hour and 20 minutes later, A.R. was on her way home without any citation and Dwivedi again made no mention or note of the stop, the complaint said.

Miami Herald staff writer Jay Weaver contributed to this report.

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City recovering from snowstorm that dumped roughly a foot of powder on NY, NJ

REUTERS

A man operates a snow plow in New York on Saturday.

New Yorkers have started digging themselves out from the blizzard that hit the city overnight.

The snow had stopped in Manhattan by early Saturday morning, but other areas saw more than two feet of powder and significant power outages.

Some spots on eastern Long Island got as much as 30 inches.

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Totals in New Jersey ranged from 5-15 inches, with the highest snowfalls spread across the northern part of the state while other areas were spared.

The National Weather Service reports River Vale in northern Bergen County got 15 inches. West Milford, Hillsdale and Scotch Plains all got more than a foot of snow. Cedar Grove residents woke up to about 10 inches of snow Saturday morning.

Newark had been projected to get up to a foot of snow or possibly more but received about 5 or 6 inches. About 5 inches fell on Jersey City and about 6 inches fell at Newark Airport.

More than 28 inches of snow had fallen on central Connecticut by early Saturday, and areas of southeastern Massachusetts, Rhode Island and New Hampshire notched 2 feet or more of snow — with more falling.

Meanwhile, the snow total in Central Park was 11.4 inches by 8 a.m.

"We think we're in great shape. We were lucky...Looks like we've dodged a bullet," Mayor Bloomberg said at a Saturday morning press conference in Queens.

Bloomberg said all city streets will be cleared of snow by the end of Saturday and that all primary, most secondary and "60 percent" of tertiary streets have already been plowed.

Bloomberg said New York City can offer equipment and manpower if other communities need help with snow removal.

Bloomberg gave a briefing at a sanitation garage in Queens. He said the Sanitation Department has deployed 2,200 pieces of equipment and will have every street plowed by the end of the day.

New Jersey Transit resumed bus service north of Interstate 195 as of 7 a.m. Saturday, including service into New York's Port Authority Bus Terminal.

NJ Transit suspended all northern bus service Friday evening due to treacherous driving conditions.

Rail service on the Morris & Essex, Montclair-Boonton and Midtown Direct lines remains suspended from Friday but officials were taking steps to expedite the restoration of service once inspections were conducted.

More than 5,300 flights through Saturday were still cancelled, though and JFK and LaGuardia airports in New York are still closed, as is Boston's Logan Airport.

But, Newark Airport is scheduled to reopen at 8:30 a.m. Saturday after being closed overnight, according to the Federal Aviation Administration.

REUTERS

A woman takes a photo of a snow man that was erected at the fountain at Lincoln Center during New York Fashion Week on Friday.

At least five deaths were being blamed on the storm, three in Canada and two in upstate New York. In southern Ontario, an 80-year-old woman collapsed while shoveling her driveway and two men were killed in car crashes. In New York, a 74-year-old man died after being struck by a car in Poughkeepsie; the driver said she lost control in the snowy conditions, police said.

A 23-year-old man in Germantown, NY has died after he went off the edge of a roadway while plowing his driveway with a farm tractor in Columbia County, state police said.

Troopers say the accident happened shortly after 9 p.m. Friday, about 35 miles south of Albany. The National Weather Service says about 7.5 inches of snow has accumulated in that area overnight. The tractor rolled down a 15-foot embankment.

The man was pronounced dead at Columbia Memorial Hospital. His name hasn't been released.

More than 650,000 people across the Northeast were without power this morning, with most of the outages occurring in New England.

New York City has suffered surprisingly few power outages during the snowstorm that raged overnight, but eastern Long Island is a different story.

Wendy Lang of National Grid says there are about 10,000 customers without electricity this morning on the island, most in hard-hit eastern Suffolk County.

She says they can get most customers back on line within 24 hours if crews can reach them.

Long Island got the heaviest snow, according to the National Weather Service, which said 30.3 inches fell on Upton and several towns topped two feet.

Con Edison spokesman Mike Clendenin says the city has just 317 customers out, 206 in Brooklyn. No outages were reported in Westchester County.

In New Jersey, the state's two largest utilities were reporting minimal outages as of Saturday morning.

Public Service Electric & Gas says it had 16 customer outages as of 5:30 a.m. Saturday. At one point 2,200 customers in Elizabeth were affected, but PSE&G says they were restored Friday night. Jersey Central Power & Light, the state's second-largest utility, reports 16 outages at 7 a.m.

It's a far cry from the 2.7 million customers left in the dark after Superstorm Sandy last October, or a similar number affected by a snowstorm in October 2011.

Forecasters said wind gusts exceeding 75 mph could cause more widespread power outages and whip the snow into fearsome drifts.

On Saturday, Connecticut Gov. Malloy ordered all roads closed until further notice, saying that stalled or abandoned vehicles will only slow the recovery process. The storm dumped more than 2 feet of snow over much of the state.

State police spokesman Lt. J. Paul Vance says drivers and even some troopers have been getting stuck on the snow-covered highways. He said a pedestrian was struck by a vehicle and killed Friday night in Prospect.

Vance said troopers are still out responding to calls but it's imperative that people stay off the roads.

In New York City, there will be delayed openings at public libraries in all five boroughs. Most will be open from noon until 5 p.m.

With Post Staff

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IRS dealt a setback on tax preparer regulations

To help combat fraud by tax preparers, the Internal Revenue Service created the “Registered Tax Return Preparer” program. Then just before the tax season got under way, the agency was told by a federal judge that it doesn’t have the authority to regulate the hundreds of thousands of tax preparers covered under the program.

Although some tax-return preparers are licensed by their states or enrolled to practice before the IRS, many don’t have to pass a government or professionally mandated competency test to prepare a federal return. When the IRS issued its last “dirty dozen” tax scams, return preparer fraud was third on the list.

“Tax return preparers sometimes alter return information without their clients’ knowledge or consent in an attempt to obtain improperly inflated refunds or to divert refunds for their personal benefit,” wrote Nina E. Olson, the national taxpayer advocate, in her most recent report to Congress. “Often, the refunds are directed to an account in the preparer’s control.”

In other instances, preparers lure clients by promising large refunds even before reviewing their tax information.

The IRS program would have required any individual who is compensated for preparing or assisting in the preparation of a return to obtain a preparer tax identification number, pass a qualifying exam and complete annual continuing-education requirements.

Three independent tax preparers joined the Institute for Justice in challenging the IRS’ authority to create the program. Recently, Judge James E. Boasberg of the U.S. District Court for the District of Columbia ruled against the agency.

Said Dan Alban, the lead attorney on the case: “The licensing requirements harmed the ability of mom and pop operations to compete with big tax preparation firms. Two of the three plaintiffs would have been put out of business because of the cost of complying with the regulations.”

The ruling now means tax return preparers who would have been covered by the program are not required to complete competency testing or secure continuing education, the IRS said. However, all paid preparers are still required to have a preparer tax identification number.

There are tax professionals — attorneys, certified public accountants and enrolled agents — who were exempt from the program but are licensed by state or federal authorities and are subject to censure, suspension or disbarment from practice before the IRS in the event of wrongdoing. The ruling does not affect the regulatory requirements for these professionals.

Still hoping to continue with the regulatory program, the IRS asked the court to delay the ruling pending its appeal. The motion was denied.

“The IRS continues to have confidence in the scope of its authority to administer this program and is working with the Department of Justice to address all options, including a planned appeal,” the agency said in a statement.

In response to the lawsuit, the IRS said it has established 250 testing centers, that the program has cost more than $50 million to roll out, and nearly 100,000 preparers have registered to take the competency test.

When the IRS first announced the program, I was in favor of licensing preparers. Though many tax professionals do their jobs well, there are enough unscrupulous preparers to warrant some changes. Olson, the national taxpayer advocate, has recommended that Congress enact a federal registration, examination, certification and enforcement program for unenrolled tax-return preparers. “Creating a class of certified return preparers is a very positive step toward combating fraud,” she said in her report.

But perhaps Judge Boasberg has it right. He said his ruling doesn’t require the IRS to dismantle the registration scheme.

The IRS “may choose to retain the testing centers and some staff, as it is possible that some preparers may wish to take the exam or continuing education even if not required to,” Boasberg said in his decision. “Such voluntarily obtained credentials might distinguish them from other preparers.”

And some preparers might still take the exam in case his ruling is reversed on appeal, “just as the IRS may similarly decide it is financially more prudent not to shutter the centers in hopes of an appellate victory or congressional action,” Boasberg wrote.

“We have no opposition to preparers going through the program voluntarily,” Alban said. “If you are in the market looking for a new tax preparer, there could be value in selecting one with the registered tax return preparer certification. Keeping it voluntary allows consumers to decide what’s important rather than the IRS.”

I see great service to consumers in the IRS preparer program. So until things are settled, Boasberg offers a good compromise.

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