Chuck Hagel takes helm at Pentagon after bitter fight

WASHINGTON — Chuck Hagel took charge Wednesday of the Defense Department with deep budget cuts looming and Republican opponents still doubtful that he's up to the job.

He took the oath of office as Secretary of Defense at the Pentagon and was expected to address civilian and uniformed employees of the department later Wednesday morning.

The bitter, seven-week fight over his nomination ended Tuesday as a deeply divided Senate voted 58-41 to confirm him. Just four Republicans joined Democrats in backing the former two-term Republican senator from Nebraska and twice-wounded Vietnam combat veteran.

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New Secretary of Defense Chuck Hagel is greeted by USMC Lt. General Thomas Waldheuser (not pictured) who will serve as Hagel's Senior Private Military Assistant, as he arrives for his first day at the Department of Defense Wednesday.

"I am honored that President Obama and the Senate have entrusted me to serve our nation once again," Hagel said in a statement Tuesday. "I can think of no greater privilege than leading the brave, dedicated men and women of the Department of Defense as they perform vital missions around the globe."

Hagel promised to work closely with Congress, but he faces lingering reservations about his ability to handle the responsibilities. Shortly after the vote, Sen. Lindsey Graham said he still has serious questions about Hagel and his qualifications.

"I hope, for the sake of our own national security, he exceeds expectations," said the South Carolina Republican.

The top Republican on the Armed Services Committee, Sen. Jim Inhofe of Oklahoma, said Hagel's record on Israel, Iran, defense spending and nuclear weapons "demonstrate, in my view, a profound and troubling lack of judgment on many of the critical issues he will now be confronted with as secretary of defense."

But Inhofe promised to work with Hagel to avoid the $46 billion in automatic, across-the-board budget cuts that hit the Pentagon on Friday.

Obama alluded to the need for cooperation in his statement welcoming the vote.

The president said he was grateful to Hagel "for reminding us that when it comes to our national defense, we are not Democrats or Republicans, we are Americans, and our greatest responsibility is the security of the American people."

Hagel joins Obama's retooled national security team, including Secretary of State John Kerry and CIA Director-designate John Brennan, at a time of uncertainty for a military emerging from two wars and fighting worldwide terrorism with smaller, deficit-driven budgets.

Among his daunting challenges are dealing with the budget cuts and deciding on troop levels in Afghanistan as the United States winds down its combat presence. He also will have to work with lawmakers who spent weeks vilifying him.

Republicans insisted that Hagel was battered and bloodied after their repeated attacks during the protracted political fight.

"He will take office with the weakest support of any defense secretary in modern history, which will make him less effective on his job," said Sen. John Cornyn of Texas, the Senate GOP's No. 2 Republican.

Not so, said Democratic Sen. Jack Reed, who pointed out that Hagel now has the title and the fight is history.

"All have to work together for the interest of the country," said Reed, D-R.I.

The vote ended one of the bitterest fights over a Cabinet choice and former senator since 1989, when the Democratic-led Senate defeated newly elected President George H.W. Bush's nomination of Republican John Tower to be defense secretary. This time, Republicans waged an unprecedented filibuster of a president's Pentagon pick and Hagel only secured the job after Republicans dropped their delay.

A 71-27 vote to end the filibuster cleared the way for Hagel's confirmation.

In the course of the rancorous nomination fight, Republicans, led by Inhofe and freshman Sen. Ted Cruz of Texas, insinuated that Hagel has a cozy relationship with Iran and received payments for speeches from extreme or radical groups. Those comments drew rebukes from Democrats and some Republicans.

Sen. Carl Levin, D-Mich., the chairman of the Armed Services Committee, dismissed the "unfair innuendoes" against Hagel and called him an "outstanding American patriot" whose background as an enlisted soldier would send a positive message to the nation's servicemen and women.

Sen. Claire McCaskill, D-Mo., questioned how the confirmation process devolved into a character assassination in which Hagel was accused of "having secret ties with our enemies."

"I sincerely hope that the practice of challenging nominations with innuendo and inference, rather than facts and figures, was an aberration and not a roadmap," she said in a statement after the vote.

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Coral Gables native Martin Zweig, Wall Street wiz, dies in Florida

A decade before he foresaw the 1987 stock market crash, Coral Gables native Marty Zweig was already considered a Wall Street wizard.

Renown business journalist Dan Dorfman called him “the country’s hottest investment adviser” in 1981, his picture appeared on the cover of Money Magazine in 1982, and he was frequent guest on the PBS financial show Wall Street Week.

He wrote two best-selling books: Winning on Wall Street, in 1986, and Winning with New IRAs, in 1987.

On Oct. 19 that year, just as Zweig had predicted three days earlier on Wall Street Week, the market plummeted 23 percent.

Zweig, whose three-story Pierre Hotel penthouse is one of New York City’s most lavish residences, died Feb. 18 at another of his homes, on South Florida’s Fisher Island. He was 70. Zweig had been treated for cancer, and underwent a liver transplant in 2010 with tissue from his younger son.

Born Martin Edward Zweig on July 2, 1942, in Cleveland, he spent his formative years growing up in Coral Gables where he was known as Marty Gateman after his widowed mother remarried.

He attended Coral Gables Elementary and Ponce de Leon Junior High schools, was a Coral Gables High School varsity basketball player and track star — class of 1960 — and 2001 Cavalier’s school Hall of Famer.

Childhood friend Richard B. Bermont, a Miami financial adviser, remembered Zweig as a great poker player even in high school, “pretty much a jokester, and the ladies loved him.’’

He legally changed his last name back to Zweig when he was 21, after his mother and Dr. Gateman divorced, said former wife Mollie Friedman.

Zweig wrote that his interest in financial began when the 1948 Cleveland Indians were playing in the World Series.

“I was the kid who knew the most about the team and had a vague idea about what batting averages mean. I had begun to love numbers. Perhaps this was a tip-off that I’d later graduate to the market.’’

He earned a bachelor’s in economics from The Wharton School of the University of Pennsylvania in 1964, later an M.B.A. from the University of Miami and a doctorate in finance from Michigan State University.

In 1984, Zweig joined with stock picker Joe DiMenna, with whom he co-founded Zweig-DiMenna Partners, their first long/short hedge fund.

Zweig also created two closed-end funds traded on the New York Stock Exchange, according to his corporate biography: The Zweig Fund in 1986 and The Zweig Total Return Fund in 1988.

In his first book, he wrote: “When playing the market, remember you must deal with probabilities, employ sensible strategies to limit risk, and get aggressive only when conditions warrant.’’

He was as quirky in his private life as he was serious about investing. Stan Smith, a Fisher Island friend, said that last year, Zweig installed a “banana yellow’’ 1934 Packard convertible in his living room.

Zweig’s memorabilia collection includes the dress Marilyn Monroe wore to sing “Happy Birthday” to President John F. Kennedy in 1962, a pair of JFK’s silk pajamas, the suits The Beatles wore on the Ed Sullivan Show in 1964, Super Bowl rings, Heisman Trophies, Oscar statuettes and Gold Records; one of the Harley-Davidson Hydra-Glide motorcycles that actor Peter Fonda rode in the film “Easy Rider;” an outfit that Jimi Hendrix wore in concert; and the booking sheet from one of Al Capone’s arrests, and a letter written by baseball legend Mickey Mantle describing a sexual encounter at Yankee Stadium.

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Miami businessman who pleaded guilty to stealing millions from Medicare is sentenced to 14 years in prison

A local businessman who moved his mental health chain from Miami-Dade to North Carolina after the feds suspected him of a Medicare scam was sentenced to 14 years in prison on Monday and ordered to reimburse the taxpayer-funded program $28 million.

Kept behind bars since his arrest because of fears he might flee to Cuba, Armando “Manny” Gonzalez pleaded guilty in December to stealing tens of millions of dollars from Medicare by fraudulently billing the federal program and laundering the proceeds to support an affluent lifestyle.

Gonzalez, 50, a convicted cocaine trafficker who joined the Medicare rackets in the mid-2000 era, had opened a pair of mental health clinics in the Kendall and Cutler Bay areas. By 2008, Gonzalez moved himself and his business to North Carolina to stay one step ahead of federal agents.

But they caught up with him. Before his arrest in May 2012, he was planning to open another psychotherapy clinic in Tennessee.

Gonzalez was indicted with others on charges of conspiring to defraud $63 million from Medicare. He was ordered held without bail after prosecutors argued he was a “flight risk” to his native Cuba.

Dozens of Cuban immigrants charged in South Florida with trying to bilk the federal healthcare program for seniors have fled to the island, which historically has turned a blind eye and doesn’t return the fugitives to the United States because the nations do not have an extradiction agreement.

In December, Gonzalez pleaded guilty before U.S. District Judge Cecilia Altonaga to one count of conspiracy to commit healthcare fraud and one count of conspiracy to commit money laundering. Under the terms of his plea agreement, Gonzalez agreed to forfeit property valued at several million dollars, including $987,910 seized in July as well as a one-acre home, vehicles and other assets in Hendersonville, N.C.

Several defendants were charged for their alleged roles in Gonzalez’s business, Health Care Solutions Network, with 10 pleading guilty so far.

According to court records, Gonzalez’s company, Health Care Solutions Network, billed both Medicare and the Florida Medicaid program for purported mental health services that patients did not need.

Gonzalez’s three clinics -- accused of entertaining patients with TV and movies instead of providing actual group psychotherapy sessions -- collected $28 million in Medicare payments from 2004 to 2011. Justice Department lawyers said in court papers that the “vast majority” of the money “disappeared” with a “substantial portion ... laundered through shell corporations.”

Among others charged in the scheme are, John Thoen, a registered nurse, and three employees, Alexandra Haynes, Serena Joslin and Sarah Da Silva Keller. All have pleaded guilty.

Also charged in the scheme: Daniel Martinez, Raymond Rivero, Ivon Perez and Alba Serrano, operators of three assisted-living facilities in the Homestead area called Mi Renacer, God Is First and Kayleen and Denis Care.

The ALF operators, who have pleaded guilty, were accused of taking bribes from Gonzalez in exchange for supplying a steady stream of patients, many of whom suffered from dementia and Alzheimer’s disease. They could not have benefited from the therapy, prosecutors said.

“Once the unqualified patients were admitted to HCSN, Gonzalez’s employees would fabricate virtually every portion of the patients’ mental health medical records,” the Justice Department said in a statement.

“The fake medical records were then utilized to support false billings to government sponsored health care benefit programs and to avoid detection by Medicare auditors.”

The case was prosecuted by trial attorneys William Parente and Allan J. Medina of the Justice Department’s fraud section, with agents from the FBI and U.S. Department Health and Human Services-Office of Inspector General leading the investigation.

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Dennis Rodman worms his way into North Korea

AP

Flamboyant former NBA star Dennis Rodman is surrounded by journalists upon arrival at Pyongyang Airport in North Korea today.

PYONGYANG, North Korea — Former NBA star Dennis Rodman brought his basketball skills and flamboyant style — neon-bleached hair, tattoos, nose studs and all — on Tuesday to the isolated Communist country with possibly the world's drabbest dress code: North Korea.

Arriving in Pyongyang, the American athlete and showman known as "The Worm" became an unlikely ambassador for sports diplomacy at a time of heightened tensions between the US and North Korea. Or maybe not so unlikely: Young leader Kim Jong Un is said to have been a fan of the Chicago Bulls in the 1990s, when Rodman won three championships with the club.

Rodman is joining three members of the Harlem Globetrotters basketball team for a Vice Media production to air on HBO in early April, Vice founder Shane Smith told The Associated Press in an exclusive interview before the group's departure from Beijing.

Smith said the Americans hope to engage in a little "basketball diplomacy" by running a basketball camp for children and playing pickup games with locals, and by competing alongside top athletes of North Korea — formally known as the Democratic People's Republic of Korea.

"Is sending the Harlem Globetrotters and Dennis Rodman to the DPRK strange? In a word, yes," said Smith, who is host of the upcoming series. "But finding common ground on the basketball court is a beautiful thing."

Rodman might seem an odd fit for an impoverished country where male fashion rarely ventures beyond military khaki and growing facial hair is forbidden. During his heyday in the 1990s, Rodman was a poster boy for excess. He called his 1996 autobiography "Bad as I Wanna Be" — and showed up wearing a wedding dress to promote it.

Shown a photo of a snarling Rodman, piercings dangling from his lower lip and two massive tattoos emblazoned on his chest, one North Korean in Pyongyang recoiled and said: "He looks like a monster!"

AP

Flamboyant former NBA star Dennis Rodman, right, scratches his face upon arrival at Pyongyang Airport. The hoops star known as "The Worm" arrived in Pyongyang, becoming an unlikely ambassador for sports diplomacy at a time of heightened tensions between the US and North Korea.

But Rodman is also a Hall of Fame basketball player and one of the best defenders and rebounders to ever play the game. During a storied, often controversial career, he won five NBA championships — a feat that quickly overshadowed his antics for at least one small North Korean group of basketball fans.

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Hialeah sugar firm Banah files for bankruptcy

A sugar processing company that brought hype to Hialeah after it moved into a 300,000-square-foot space last July — promising to hire up to 300 workers — has filed for bankruptcy protection.

The company’s move to its new headquarters even prompted Miami-Dade County to rename a stretch of Southeast 10th Avenue “Banah Sweet Way” in honor of the company. Several local leaders, including county Mayor Carlos Giménez, attended the naming ceremony.

But late last week, the company, which is owned by a convicted drug trafficker and which had sought taxpayer benefits from a government program promoting investments, left behind a line of outraged creditors. The company had only 15 employees.

Banah Sugar International Group Inc. reported that it owed between $1 million and $10 million to a list of 232 people and companies, according to public records.

The company’s administrative director, Luis Estrada, told El Nuevo Herald on Monday that the company’s owner, Alex Pérez, was meeting with company officials and added that he was not authorized to comment on the issue.

The bankruptcy was filed under Chapter 11, which allows for an attempt to reorganize the company. It allows the company’s management to continue day-to-day operations, but the bankruptcy court must make all the company’s important decisions.

On Monday, several creditors criticized Banah’s owner for failing to make payments.

“I feel frustrated and deceived,” said Alexander A. Pérez, owner of Florida Patrol Investigators (FPI), a Hialeah company that provided security services to the company. “They sent me checks that bounced, and we sued them.”

FPI’s owner said that the company owes him close to $70,000 for security services at Banah his company at 215 SE 10th Ave.

Hialeah’s mayor, Carlos Hernández, declined to comment on the sugar company’s bankruptcy filing, but he defended renaming Southeast 10th Avenue after the company, saying that Banah had promised to make significant investments in the area.

County spokesperson Fernando Figueredo said that Giménez had attended the ceremony “in good faith,” since its intention was to highlight an investment made in a 10-acre plant where 200,000 bottles of liquid sugar were supposed to be processed every day.

“The mayor knew nothing about the company’s background,” Figueredo said. “He attended because the company was creating jobs and was being recommended to be recognized in Hialeah.”

Hiram Mendoza, an aide to County Commission Chairwoman Rebeca Sosa, said that in 2012 Banah requested to be included in a program to receive county and state financial incentives. He added, however, that Banah did not meet the goal of creating 300 jobs it had promised. “They have not received any financial aid from the state or the county,” Mendoza said. “It’s true that they asked for it, but they did not meet the goals.”

Last year, Banah executives announced it would hold a job fair.

On Monday, Estrada said the company never had a job fair. Currently it has 15 employees, he said.

In October, Francisco Alvarado, a New Times reporter, revealed that in 2001 the federal government had indicted Banah’s owner on felony charges of conspiracy of cocaine possession and possession with intent to sell. Two years before, DEA agents had arrested two men with six kilograms of cocaine hidden in a vehicle. The men declared under oath that Pérez, Banah’s owner, had handed them the drugs.

In 2003, Pérez pleaded guilty of one of the charges and served four years in a federal prison.

Diego Leiva, Banah’s former executive director, said he was surprised by the bankruptcy. “I left the company when Pérez’s past came to light,” said Leiva, who is among the company’s creditors. “I didn’t know anything about that.”

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At least one wounded in Miami shooting

Miami police detectives Monday morning are on the scene of a shooting that wounded at least one person.

Police have cordoned off the area of Northwest Avenue at 43rd street as they investigate.

Still visible on the street: a bloody rag next to the tire of a Ford sports utility vehicle.

This bulletin will be updated as more information becomes available.

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Israel, US successfully test anti-missile system

JERUSALEM — Israel and the US on Monday carried out a successful test of the next-generation Arrow 3 missile defense system, for the first time sending an interceptor into outer space, where it could destroy missiles fired from Iran.

The Arrow 3 is part of a multilayered system that Israel is developing to protect against a range of missile threats, from short-range rockets in the Gaza Strip and Lebanon to medium and longer-range missiles in the hands of Syria and Iran. The Arrow system is being developed to protect against sophisticated Iranian-made Shahab ballistic missiles.

AP

An Israeli missile launch

Israel's Defense Ministry said it was the first flight test of the Arrow 3 interceptor. It was conducted at an Israeli test range over the Mediterranean Sea. The system is about three years away from becoming operational.

"The Arrow 3 interceptor was successfully launched and flew an exo-atmospheric trajectory through space, in accordance with the test plan," it said in a statement. "The successful test is a major milestone in the development of the Arrow 3 weapon system and provides further confidence in future Israeli defense capabilities to defeat the developing ballistic missile threat."

Iran's Shahab ballistic missile can carry a nuclear warhead and has a range of 1,250 miles, putting Israel and parts of Europe within range. With Iran suspected by the international community of trying to develop a nuclear weapon, the success of the Arrow is considered critical for Israel.

Israel considers a nuclear-armed Iran to be an existential threat, citing Iranian calls for Israel's destruction, its support for anti-Israel militant groups and its missile and nuclear technology. Tehran says its nuclear program is peaceful, a claim that Israel and many Western countries reject.

Prime Minister Benjamin Netanyahu said the test shows Israel's technological capabilities as well as its close cooperation with the US "Israel's hand is always extended for peace, but we are always prepared for other options as well," Netanyahu said after a meeting with Mideast envoy Tony Blair Monday afternoon.

A senior Defense Ministry official said the test was conducted "100 percent successfully."

"This is the first time the interceptor with all of its equipment took off and flew, achieved its velocity and did the maneuver in space," he said, speaking on condition of anonymity under ministry regulations. "The Iranian missiles are a main factor to why this system was developed," he said, but he stressed that the test was not connected to a specific regional development.

The Arrow 3 is being developed by state-run Israel Aerospace Industries in conjunction with American aviation giant Boeing Co.

The Arrow 3, expected to be operational around 2016, would give Israel an additional layer of defense by targeting incoming missiles far closer to their time of launch. The Arrow 2 system, which intercepts targets inside the atmosphere, is already operational.

Last year, Israel also successfully tested a system designed to intercept missiles with ranges of up to 180 miles. That system, called "David's Sling" and "Magic Wand," is expected to be operational next year.

Israel has also developed a system for intercepting short-range rockets. The "Iron Dome" successfully shot down hundreds of rockets fired from the Gaza Strip during eight days of fighting in November.

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Miami medicine goes digital

About 10 years ago, Dr. Fleur Sack quit her practice as a family physician to become a hospital department head. Spurring her decision was the need to switch from paper records to electronic ones to keep her private practice profitable. “At that time, it would have cost about $50,000,” Dr. Sack recalled. “It was too expensive and it was too overwhelming.”

But times and technologies changed, and last year, Dr. Sack left her hospital job to restart her medical practice with an affordable system for managing electronic patient records. She agreed to a $5,000 setup fee and a subscription fee of $500 per month for the system. Her investment also qualified her for subsidy money, which the federal government pays in installments, and to date, her subsidy income has paid for the setup fee and about two years of monthly fees. “So far, I’ve got my check for $18,000,” she said. “There’s a total of $44,000 that I can get.”

That kind of cash flow is one reason why so-called EHR software systems for electronic health records have been among the hottest-selling commercial products in the world of information technology. EHR system development is a growth industry in South Florida, too. Life sciences and biotechnology are among the high growth-potential sectors identified by the Beacon Council-led One Community One Goal economic development initiative unveiled in 2012; already, the University of Miami has opened a Health Science Technology Park while Florida International University has launched a program in its graduate school of business oriented toward biotechnology businesses.

For many young businesses in the area’s IT industry, government incentives are paving the way. The federal government is pushing doctors and hospitals to use electronic health records to cut wasteful spending and improve patient care while protecting patient privacy — sending digital information via encrypted systems, for example, rather than regular email.

Under a 2009 federal law known as the HITECH Act, maximum incentive payments for buying such systems range up to $44,000 for doctors with Medicare patients and up to $63,750 for doctors with Medicaid patients. Hospitals are eligible for larger incentive payments for becoming more paperless. The subsidy program isn’t permanent; eligible professionals must begin receiving payments by 2016. But by then, the federal government will be penalizing doctors and hospitals that take Medicare or Medicaid money without making meaningful use of electronic health records.

“What the government did is, they incentivized, and now they’re going to penalize,” said Andrew Carricarte, president and CEO of IOS Health Systems in Miami, one of the largest South Florida-based vendors of online software service for physician practices. He said insurance companies also may start penalizing physicians for failing to adopt electronic health records because “the commercial payers always follow Medicare and Medicaid.”

It’s all part of the growth story at IOS Health Systems, which has more than 2,000 physicians across the nation using its online EHR system. Carricarte said many of the company’s customers buy their second EHR system from IOS after their first one flopped. “Almost 40 percent of our sales come from customers who had systems and are now switching over to something else,” he said.

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Miami Dolphins hopeful on stadium referendum date

The Miami Dolphins are hopeful the Miami-Dade County Commission will approve a May 14 date for a referendum on the $400 rehabilitation of their stadium, time enough to get South Florida in play for Super Bowl 50, a Dolphins spokesman said Saturday.

Spokesman Ric Katz said the language of the proposed referendum has yet to be decided, and ultimately the commission decides the date.

But, he said, “we’d be very happy with” May 14 because “that gives us a week to communicate to the NFL before they make the important decision of Super Bowl 50.”

NFL owners are slated to meet on May 22 to pick the site of the 2016 Super Bowl — seen as a tourist revenue prize for whichever host city gets the 50th anniversary contest.

Mayor Carlos Gimenez met Friday with Dolphins owner Stephen Ross and CEO Mike Dee to discuss the proposed stadium rehabilitation.

From the mayor’s side, there has been no agreement on a date and Gimenez does not plan to bring the proposed May 14 referendum to the commission at this time, said spokeswoman Suzy Trutie.

Friday’s was a “first meeting” at which “many things were discussed,” including the Dolphin’s preference for May 14.

But, “We continue negotiating with the Dolphins with regards to finances.”

One proposed financing plan would increase the bed tax in mainland Miami-Dade by 1 percent and increase the sales tax rebate the team already gets at the stadium in Miami Gardens. Ross had initially offered to pay at least $201 million in his financing plan. But Katz, a Miami publicist representing the team in the stadium campaign, said the two sides were still in negotiation on what the mayor would ask the commission to put to taxpayers in a referendum.

Trutie said the proposed referendum would gauge public opinion on increasing hotel taxes from 6 to 7 percent to fund the stadium renovations.

Of the commission, Katz said, “We do not take them for granted. They have the prerogative.”

Attorney Kendall Coffey did not return calls asking whether the Dolphins had hired him to write the ballot language.

Dolphins lobbyist Marcelo Llorente had said in recent weeks that the team was considering May 7 and 14 as possible referendum dates.

Any activity by the Florida Legislature would likely have to be undertaken before then. The regular session is slated to end May 3.

Miami Herald staff writers Patricia Mazzei and Doug Hanks contributed to this report.

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Queens man dead in suspicious fire

A suspicious fire left a Queens man dead early this morning, police said.

The fatal inferno began on the second floor of the building at 115-18 95th Avenue around 2:30 a.m., authorities said.

When firefighters extinguished the blaze they found a 43-year-old man dead inside his home, cops said.

The victim's name has not been released because his family has not yet been notified.

Fire Marshals are still investigating and no arrests have been made.

kconley@nypost.com

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