Manny, They're Coming to Get You!

Hey Fire Fee Manny D'ass, the SEC is looking at you!

SEC orders Miami to turn over its financial books

The federal government has set its sights on Miami, launching an inquiry over a series of bond deals and money transfers this decade.

BY CHARLES RABIN LARRY LEBOWITZ AND MICHAEL SALLAH
crabin@MiamiHerald.com

In a sweeping investigation that could impact Miami's public projects for years, the U.S. Securities and Exchange Commission is probing the city's major bond offerings between 2006 and 2009 and questionable financial transfers used to balance the budget.

A confidential SEC letter, FedExed to the city Friday and obtained by The Miami Herald, demands that Miami turn over reams of e-mails and internal documents showing how it was moving money around to shore up its bottom line -- as well as how it represented its financial picture to bondholders.

The investigation represents the most significant scrutiny of the inner workings of Miami's financial operations since a budget crisis a decade ago led the state to take control of its checkbooks.

``It would be extremely disappointing if the city had engaged in that kind of behavior again,'' said Mitch Herr, the senior trial counsel for the SEC who prosecuted the earlier case against the city. That crisis ``should have been a wake-up call and should have resulted in stronger controls.''

Now, the city has been ordered to ``preserve all computer resources utilized by Miami, or any other persons working on or involved in any of Miami's activities, included but not limited to hard drives, floppy disks, servers, and all other means of storage.''

Also sought: internal communications from six high-ranking city officials, including City Manager Pete Hernandez and Chief Financial Officer Larry Spring.

The inquiry comes on the heels of a Miami Herald investigation in July that explored the root causes of an emerging financial meltdown and focused on a series of questionable money transfers from capital-project accounts to the general fund.

Those transfers, largely made out of the public eye, helped Miami balance its books even as expenses rose far faster than expected amid skyrocketing pension and salary costs.

Budget director Michael Boudreaux had identified two ``unspent'' pots of capital-fund money -- one for $13.1 million in 2007, another for $13.3 million the following year -- that he placed back in the city's general fund to reduce the city's 2008 deficit, the newspaper found.

Those two transfers are a key focus of the SEC investigation, with the federal agency demanding all city e-mails and communications involving how the money was moved.

The transfers ignited a tense debate within the city's top financial offices. Finance director Diana Gomez complained that Boudreaux had masked the loss in the general fund -- the city's operating checkbook -- from commissioners by making the moves.

Reached late Friday, Boudreaux said he was not comfortable commenting on the inquiry because he had not seen the SEC letter. But he described the $26.4 million in transfers as ``legitimate.''

``It was reviewed completely by everybody,'' he said. ``If it wasn't legitimate, it would have been noted then. And that wasn't the case.''

When Boudreaux took over budgeting in 2006, he said he found money in capital improvements that couldn't be accounted for. After determining the money was from either completed or killed projects, he was able to transfer it back to the general fund, he said.

Manager Hernandez, reached Friday, also defended the money shifts: ``It's a question of opinion whether it should have been done or not -- but it's proper,'' said the city manager.

When a city goes to bond markets, rating agencies examine the city's books to see how sound they are. Now, the SEC is exploring whether the city misrepresented its true financial condition when it went to market to float bonds for major projects.

Former Miami Mayor Manny Diaz, who signed off on all the city's bond offerings between the years in question, couldn't be reached Friday.

The practice of transferring funds between capital projects and the city's general fund harkened to Miami's last fiscal crisis, when it was discovered that the city tried to hide a $68 million shortfall by shifting money between hundreds of capital accounts.

``It's déja` vu 1996,'' said Miami Mayor Tomás Regalado, the only elected city leader who was around during the last financial disaster. ``I'm not surprised, but I'm very, very disappointed.''

Regalado said that in the past month he signed off on a $65 million sidewalk street-repair bond -- but not before writing a letter of disclosure that The Herald had revealed on Nov. 25 that the SEC was examining city practices.

The SEC is requesting all documentation between the city and the financial institutions that Miami dealt with in its bond offering between 2006 and 2009.

Those companies are First Southwest Company; Merrill Lynch Pierce, Fenner & Smith; UBS Securities; and J.P. Morgan Securities.

The SEC has also demanded documentation between the city and McGladrey & Pullen, the accounting firm that does Miami's Comprehensive Annual Financial Reports.

The notification also comes on the heels of a blistering audit by city auditor Victor Igwe, who said Miami skirted financial integrity rules by using ``inaccurate and misleading'' budgetary practices as it scrambled to fill budget holes.

The SEC investigation could have far-reaching effects for the city, potentially complicating matters for parking around the under-construction $639 million ballpark for the Florida Marlins in Little Havana.

Miami is building $94 million in parking sites, to be bankrolled by a bond issue. That offering was supposed to happen two weeks ago, but was delayed at Regalado's request.

Miami also plans to go to market in the near future for another $118 million for its end of a planned tunnel to the Port of Miami, and to build a park next to planned museums at Bicentennial Park.

Is any one surprise? I hope they arrest that arrogant prick!

D'azz doing the perp walk. Words fail me to express the great joy just thinking such a TV video being on Utube. Karma's twin is coming for round TWO. And disbarment follows fraud in the land shark world. MERRY CHRISTMAS EVERYBODY!

Really, that's what you want for Christmas? To see someone go to jail. How creepy is that?

Think Money Diaz is so bad? Just ask Avila and he will tell you what a great man Manny is. :cop:

Really, that's what you want for Christmas? To see someone go to jail. How creepy is that?


Creepy? Nope, it's called justice. And seeing his honor in a jail booking photo is all I want for Christmas. And for Easter his disbarment would be nice.

Really, that's what you want for Christmas? To see someone go to jail. How creepy is that?


Creepy? Nope, it's called justice. And seeing his honor in a jail booking photo is all I want for Christmas. And for Easter his disbarment would be nice.

Dear Mister Popo,

You are going to be VERY disappointed for Christmas. Oh, and the Easter Bunny is not going to visit you either. Guess you'll have to wish for something realistic and attainable instead of the NEVER GONNA HAPPEN!!!!! Bah Ha Ha. Ho Ho Ho.

XO,
Santa

Really, that's what you want for Christmas? To see someone go to jail. How creepy is that?


Creepy? Nope, it's called justice. And seeing his honor in a jail booking photo is all I want for Christmas. And for Easter his disbarment would be nice.

Dear Mister Popo,

You are going to be VERY disappointed for Christmas. Oh, and the Easter Bunny is not going to visit you either. Guess you'll have to wish for something realistic and attainable instead of the NEVER GONNA HAPPEN!!!!! Bah Ha Ha. Ho Ho Ho.



XO,
Santa

Dear Santa, your right, no mug pictures for xmas as the SEC just started their FRAUD investigation. But the pictures for Easter are a big yes, thank you. You see, the SEC requires some kind of proof before they start an investigation. So now, they will look at everything and connect the dots. Disbarment is after the trial, so next Labor day is more realistic. But you keep on saying it not going to happen, cause everyone is going to enjoy next labor day Santa. It's karma Santa, Fire fee went out of his way to try and lay off cops in the recent "budget crisis", and the FOP found the monies cut to prove D'azz was wrong. Now his evil will come home to his door step. And the SAO of Miami-dade county, doesn't control the U S attorney's office santa. Now go molest a rain deer old guy, and leave us alone. Merry Christmas Santa.

This all sounds like the good, the bad the ugly, remember what goes around comes around time will take it's toll and all who have done wrong to thos non-deserving will pay, patience is a virtue. Enjoy your holidays and leave the past behind.

Diaz wasn't even around when the illegal fire fee was instated (might want to ask regalado why HE voted to sock it to the people of Miami). Diaz had to clean up the illegal fire fee when it was deemed illegal. Say what you want about Diaz, but he never wanted to lay off any police officers. AA and the union would not accept any other options until after the pink slips went out then they miraculously found other ways to cut. AA thought he had big ones and told the Mayor he would never do it. Hmmm, that backfired. If the union would have went with the Mayors proposed budget cuts in the beginning then none of the dog and pony show would have happened. AA needed the dog and pony show though and so did regalado to show the union members that "they were working hard to save jobs and layoffs". Rowling them up and making them t-shirts for the evening news. Wow that backfired too as the citizens sided with the city and were tired of the cry babies and their unions. The Police unfortunately get the bad end of the stick because they do not know how to negotiate their contracts. Proof of this is the Firefighters and their union that makes sure they are protected and it is iron clad. The indians over at the MPD can boo hoo and drink AA's kool-aid but the fact is, you all had a fool representing you and trying to negotiate with experts. You really have nobody to blame but yourselves. Good luck with the new city hall because he may be your friend now and has appointed you, but the cuts are coming up soon. Who is going to be the big bad wolf then?

Yes, time will tell and in this country, you are innocent until found guilty. Peepoles, we are not in Cuba.

Diaz wasn't even around when the illegal fire fee was instated (might want to ask regalado why HE voted to sock it to the people of Miami). Diaz had to clean up the illegal fire fee when it was deemed illegal. Say what you want about Diaz, but he never wanted to lay off any police officers. AA and the union would not accept any other options until after the pink slips went out then they miraculously found other ways to cut. AA thought he had big ones and told the Mayor he would never do it. Hmmm, that backfired. If the union would have went with the Mayors proposed budget cuts in the beginning then none of the dog and pony show would have happened. AA needed the dog and pony show though and so did regalado to show the union members that "they were working hard to save jobs and layoffs". Rowling them up and making them t-shirts for the evening news. Wow that backfired too as the citizens sided with the city and were tired of the cry babies and their unions. The Police unfortunately get the bad end of the stick because they do not know how to negotiate their contracts. Proof of this is the Firefighters and their union that makes sure they are protected and it is iron clad. The indians over at the MPD can boo hoo and drink AA's kool-aid but the fact is, you all had a fool representing you and trying to negotiate with experts. You really have nobody to blame but yourselves. Good luck with the new city hall because he may be your friend now and has appointed you, but the cuts are coming up soon. Who is going to be the big bad wolf then?


Started to read your post, but couldn't get past the first sentence which is in bold. That is either a bald face lie, or you do not know what the hell your talking about. Fire Fee went to the breakfast where the deal was struck. So if you start with a lie or something patently wrong, I did not read any further. And you didn't mention the securities fraud investigation at all did you? When the feds get to the bottom of this, heads will roll. The recent securities fraud by bernie and the others in the billions of dollars, will ensure swift justice for anyone caught in such games. But when the underlings get caught, they will flip them all the way to the top. Realistic? Give us a break.

You should read the first sentence and then wipe the egg off of your face. Manny Diaz was not in office when the Fire Fee was instated. The Fire Fee was already in existence when Manny came into office. The fee was found to be illegal and Manny had to deal with the mess from the previous administration and their fire fee fiasco. The breakfast you mention pertains to the lawsuit of 7 city residents. There was an investigation and Manny Diaz was cleared. Why you soooooo bitter?

Diaz wasn't even around when the illegal fire fee was instated (might want to ask regalado why HE voted to sock it to the people of Miami). Diaz had to clean up the illegal fire fee when it was deemed illegal. Say what you want about Diaz, but he never wanted to lay off any police officers. AA and the union would not accept any other options until after the pink slips went out then they miraculously found other ways to cut. AA thought he had big ones and told the Mayor he would never do it. Hmmm, that backfired. If the union would have went with the Mayors proposed budget cuts in the beginning then none of the dog and pony show would have happened. AA needed the dog and pony show though and so did regalado to show the union members that "they were working hard to save jobs and layoffs". Rowling them up and making them t-shirts for the evening news. Wow that backfired too as the citizens sided with the city and were tired of the cry babies and their unions. The Police unfortunately get the bad end of the stick because they do not know how to negotiate their contracts. Proof of this is the Firefighters and their union that makes sure they are protected and it is iron clad. The indians over at the MPD can boo hoo and drink AA's kool-aid but the fact is, you all had a fool representing you and trying to negotiate with experts. You really have nobody to blame but yourselves. Good luck with the new city hall because he may be your friend now and has appointed you, but the cuts are coming up soon. Who is going to be the big bad wolf then?

Armando should stick to driving the Mayor around. He is more than capable to do that job. :wink: :wink: :wink: :wink: :wink: :wink: :wink:

Diaz wasn't even around when the illegal fire fee was instated (might want to ask regalado why HE voted to sock it to the people of Miami). Diaz had to clean up the illegal fire fee when it was deemed illegal. Say what you want about Diaz, but he never wanted to lay off any police officers. AA and the union would not accept any other options until after the pink slips went out then they miraculously found other ways to cut. AA thought he had big ones and told the Mayor he would never do it. Hmmm, that backfired. If the union would have went with the Mayors proposed budget cuts in the beginning then none of the dog and pony show would have happened. AA needed the dog and pony show though and so did regalado to show the union members that "they were working hard to save jobs and layoffs". Rowling them up and making them t-shirts for the evening news. Wow that backfired too as the citizens sided with the city and were tired of the cry babies and their unions. The Police unfortunately get the bad end of the stick because they do not know how to negotiate their contracts. Proof of this is the Firefighters and their union that makes sure they are protected and it is iron clad. The indians over at the MPD can boo hoo and drink AA's kool-aid but the fact is, you all had a fool representing you and trying to negotiate with experts. You really have nobody to blame but yourselves. Good luck with the new city hall because he may be your friend now and has appointed you, but the cuts are coming up soon. Who is going to be the big bad wolf then?


Finally people are realizing that we have been played by the FOP! AA ( Armando Aguilar ) and Ex Ass to the Chief CA ( Carlos Avila ) They didn't have a clue how to negotiate our union contracts. Remember it was a Done Deal!!! I bet it was. As you can see. It was a done deal....Future promotion Armandito. Know thats Done Deal!

Hey fools, the FIre Fee was recommended by consultants and attorneys during the budget crisis. Only a portion was ruled illegal. Fire Fee Manny is being trashed not for the Fire Fee, but for working out a deal you pay back only 7 people for the Fire Fee monies, one of which didn't even pay the fee and didn't live in the city. He wanted to take cares of his friends and attorney cronies. The FOP did a great job in their negotiations, the financial crisis hit everyone hard. Fire did so good they're giving back raises, and going to 10% Pension Contributions in Oct 2010. Whoever is stirring this crap up about the FOP is full of BS.

Read today's Herald story and hopefully a full blown SEC investigation will result in more arrests...esp. a special someone who might have lied and committed perjury in N.Y. when reporting the soundness of city of Miami finances.

The inbreed and systematic faking of the city's financial situation must be stopped. The problem is when the truth comes out, all union contracts are going back to the table for corrections. All of us need to get ready for the day of reckoning when at the table the true financial picture is used to get not only what we deserve, but what is available. The employees and taxpayers are going to take a hit on this one.

Only way to feel better is to hope for some arrests.

Hey fools, the FIre Fee was recommended by consultants and attorneys during the budget crisis. Only a portion was ruled illegal. Fire Fee Manny is being trashed not for the Fire Fee, but for working out a deal you pay back only 7 people for the Fire Fee monies, one of which didn't even pay the fee and didn't live in the city. He wanted to take cares of his friends and attorney cronies. The FOP did a great job in their negotiations, the financial crisis hit everyone hard. Fire did so good they're giving back raises, and going to 10% Pension Contributions in Oct 2010. Whoever is stirring this crap up about the FOP is full of BS.

Who are you kidding the contract negotiations was done 1 year before the financial crisis started. Remember that the City and the stock market was doing so great that the pension stabilization was a firm done deal!!!!! Thats why we agreed on the contract to wait!!! ( Base on the FOP recommendation ) Thats why the fire Dept ended up with 28% more then we did. Do the math i got the numbers.... 10% contribution in Oct is only 3% more then us.. So they got us by 25%.. Wow! I think the one full of shit and BS is you. Get the facts correct and stop lieing so much. Not everyone is blind!

Number One stop that Marlins stadium scam

Number Two end that billion dollar downtown tunnel to no where

Three sell the PAC

Four stop over building in MIAMI !!

Five Arrest Money DIAZ

Number One stop that Marlins stadium scam

Number Two end that billion dollar downtown tunnel to no where

Three sell the PAC

Four stop over building in MIAMI !!

Five Arrest Money DIAZ

A Regalado mini man suggested the above. Back to the basics, this is not a metropolis, we do not need any vision so lets just create a big smoke screen to hide behind and say NO to everything Manny. Blah blah blah. Your rhetoric is tiring and non productive.

Number One stop that Marlins stadium scam

Number Two end that billion dollar downtown tunnel to no where

Three sell the PAC

Four stop over building in MIAMI !!

Five Arrest Money DIAZ

A Regalado mini man suggested the above. Back to the basics, this is not a metropolis, we do not need any vision so lets just create a big smoke screen to hide behind and say NO to everything Manny. Blah blah blah. Your rhetoric is tiring and non productive.

The PAC is just a more expensive Miami Arena which the City paid 60 million into just to tear it down. The tunnel, is going to have to have pumps running 24/7, just to keep the bay out. The Andrews ave tunnel in ft Lauderdale proves that, and no explosive gases can be transported through a tunnel. Dodge Island is the shipment point for tanks of propane for all the Bahamian out islands. The same could be done by having an elevated road east on 5th street, and west on 6th, to and from the port. At what, 50% of the tunnel. The tunnel is hole that money is going to have to be poured into on a regular basis. And the baseball stadium, the folks who can afford seats to a game, live in the suburbs. Drive out, pick up kid, go back to the city, go home, during week games? Sorry Charlie. And St Manny, who proposed all this, is going to be investigated by the head hunters at the SEC for fraud. SO, the cost of ALLLLLLLL of his toys, are going through the roof, cause the bond rating, is going through the floor, and the % rate for the bonds, are heading for the moon. If this is progress, God help us. But God is merciful, and term limits have ended his spending spree the Tax Payers weren't allowed to vote on. And all this is being paid by a tourist tax? Well. you have to have tourist for that don't ya? You think convention will come to dade, if they save that tax in broward? Same beaches, same atlantic ocean, same weather just an hour earlier. Very progressive right?

Run, the sky is fallingggggggggggggggggggggggggggggg. Thanks for the update Chicken Little.

Diaz wasn't even around when the illegal fire fee was instated (might want to ask regalado why HE voted to sock it to the people of Miami). Diaz had to clean up the illegal fire fee when it was deemed illegal. Say what you want about Diaz, but he never wanted to lay off any police officers. AA and the union would not accept any other options until after the pink slips went out then they miraculously found other ways to cut. AA thought he had big ones and told the Mayor he would never do it. Hmmm, that backfired. If the union would have went with the Mayors proposed budget cuts in the beginning then none of the dog and pony show would have happened. AA needed the dog and pony show though and so did regalado to show the union members that "they were working hard to save jobs and layoffs". Rowling them up and making them t-shirts for the evening news. Wow that backfired too as the citizens sided with the city and were tired of the cry babies and their unions. The Police unfortunately get the bad end of the stick because they do not know how to negotiate their contracts. Proof of this is the Firefighters and their union that makes sure they are protected and it is iron clad. The indians over at the MPD can boo hoo and drink AA's kool-aid but the fact is, you all had a fool representing you and trying to negotiate with experts. You really have nobody to blame but yourselves. Good luck with the new city hall because he may be your friend now and has appointed you, but the cuts are coming up soon. Who is going to be the big bad wolf then?

Yeah Tony, we know.

WHILE ALL OF YOU ARE SWEATING IT OUT HERE TRYING TO BAD MOUTH MANNY, HE IS LAUGHING ALL THE WAY TO THE BANK, SO LIVE YOUR LIVES AND STOP ALL THIS JEALOUSY IS WHAT IT SOUNDS LIKE. ENJOY YOUR HOLIDAYS AND MAKE MPD SHINE IT REALLY NEEDS A GOOD CLEAN UP. :D

Run, the sky is fallingggggggggggggggggggggggggggggg. Thanks for the update Chicken Little.

The sky is not falling. it's just going to cost hundreds of millions more to finance, and when the tourist monies do not cover it, the people will have to pay for is as always. Like was said before. SEC wants paper proof of fraud before they start an investigation. SEC has announced the investigation. 1996 again, only different players, but in 96, the mayor didn't make a presentation to investors on a bond issue. You keep on burying you head in the sand, that way, YOUR falling sky wont hit ya.

Manny is a CUTIE!