Facebook Group Calls on Mayor to Withdraw Support for HCW Deal in View of New Findings
Evansville, September 14, 2013: The Facebook group opposing the taxpayer funded hotel is calling upon Mayor Lloyd Winnecke to formally withdraw his support from a deal that would have given $37.5 million in taxpayer subsidies to hotel developer HCW out of Branson, MO.
In a recent email to City Council members and the Mayor’s office, proposed vetting firm Crowe Horwath have formally turned down the contract to review the personal and professional tax information of HCW partners citing a lack of cooperation and unworkable restrictions applied to the process by HCW.
A. Ridgeway Miller, a CPA of Crowe Horwath said in an email to both City Council members and the Mayor’s office, “HCW’s requirements and prohibitions inappropriately place Crowe in possession of information that the Council should have, and HCW’s restrictions provide no way for Crowe to give the Council the information the Council needs to make an informed decision. Crowe cannot proceed on that basis.â€
Brad Linzy of the Citizens of Evansville against a Taxpayer Funded Hotel Facebook page believes this should be the death knell of the deal. “This is totally unacceptable. If the Mayor does not withdraw his support now, he runs the risk of further alienating constituents and appearing to be in total disregard for transparency of government.â€
Linzy further has called upon the City Council to reconvene at their earliest convenience and vote down this hotel deal with HCW. “The vetting process has failed,†Linzy continued. “HCW has refused to cooperate. This is not a company with whom we feel the taxpayers of Evansville need to be doing business. Even if you supported the subsidy up until now, this should give you serious pause for thought.â€
The Facebook group still plans to hold a protest when a final vote is scheduled, which could come sooner than expected considering these developments.
https://www.facebook.com/EvansvilleSaysNo
HCW Refuses to Provide Requested Information to Council, Vetting Firm Declines Job
Crowe Horwath, the firm that the Evansville City Council has declined to accept the job due to restrictions that HCW placed on any information that they would provide that would not allow the information to be released to the City Council even under a Non-Disclosure Agreement.
According to Crowe, HCW also requiring the right to review any report before it may be provided to the Council which would impede their ability to issue a report. HCW’s desired NDA strictly prohibits Crowe from sharing HCW data with the Evansville Common Council who is the potential funding agency for the project. The letter from Crowe to Evansville is as follows:
Letter from Crowe-Horwath to City Council and Mayor’s Office
Gentlemen
During our call late last week, you asked Crowe to work with the Mayor’s counsel, Ted Ziemer, to formulate a scope of work designed to meet the objectives of the Common Council of the City of Evansville (“Council”). As requested, we provided a draft engagement letter and statement of work to Ted on September 7, 2013. As you know, the developer, HCW, mandated the execution of a Non-Disclosure Agreement (“NDA”) as a prerequisite to any access by Crowe of information necessary to perform the work. HCW’s desired NDA strictly prohibits Crowe from sharing HCW data with the Common Council. HCW is also requiring the right to review any report before it may be provided to the Council. Therefore, we may be impeded from issuing a report.
Crowe cannot accept these requirements and restrictions. As originally discussed, this project envisioned Crowe being a consultant only and not a decision-maker. Crowe is only assisting the City Council by providing an analysis of data so that the Council can make a decision. HCW’s requirements and prohibitions inappropriately place Crowe in possession of information that the Council should have, and HCW’s restrictions provide no way for Crowe to give the Council the information the Council needs to make an informed decision. Crowe cannot proceed on that basis.
While we have diligently attempted to work through these issues, we have determined that we cannot satisfactorily resolve these concerns and, therefore, are not in a position to move forward. As a professional services firm, it is crucial that the Council, our client, have access to all pertinent information so that it can have all information needed for the Council to make a decision and support its deliberations. There can be no concern or perception that our report was based on information not available to the Council or that our report was inappropriately influenced or affected in any way by restrictions placed on us by any other party. Accordingly, Crowe will not be pursuing this particular project any further.
We appreciate your turning to Crowe for your needs. We are sending you this so as not to delay the City or the Council in their efforts to pursue an alternate provider for what is needed.
Best regards,
Ridge
A. Ridgeway Miller, CPA | Partner
Crowe Horwath LLP
3815 River Crossing Parkway, Suite 300
Indianapolis, IN 46240
Vanderburgh County Health Department Vector Control Adulticiding Notification
Evansville, September 13, 2013 – The Vanderburgh County Health Department is continuing to perform Adult Mosquito Control (Adulticiding) in areas where significant mosquito or West Nile Virus activity has been found. Adulticiding operations will begin Monday, September 16th, 2013, weather permitting, in targeted areas of the City of
Evansville. Spraying will begin approximately at 8:00 PM and conclude by 12:00 AM.
The area to be sprayed is bound by E. Riverside Dr., S. Kentucky Ave., Veteran’s Memorial Pkwy (I-164), Howard St., Culver Dr., and Emmett St. A map of the area to be sprayed is included with this release.
If weather conditions prevent spraying on Monday, September 16th, the Health Department will spray on the next available day.
The Health Department urges you to follow these simple guidelines to reduce your chances of coming into contact with mosquitoes:
 Limit time outdoors between dusk and dawn, when mosquitoes are most active.
Wear light colored clothing, pants, and long sleeves when possible.
 Use insect repellant containing DEET, Picaridin, or Oil of Lemon Eucalyptus.
(Products containing DEET should not be used on infants aged <2 months of age and those containing Oil of Lemon Eucalyptus should not be used on infants <3 years of age); and
 Reduce breeding habitats by emptying buckets, removing discarded tires, and changing the water in wading pools and bird baths once a week. Keep the grass cut and landscaping trimmed as adult mosquitoes use overgrown areas as safe places to rest.
For additional information please call 435-5667, or visit the VCHD website at:
www.vanderburghcounty.in.gov/mosquitoes
www.vanderburghcounty.in.gov/health
Newburgh man apprehended on securities fraud charges after going missing in action for months
Investigation by Secretary of State’s office leads to arrest
INDIANAPOLIS –
Lynn A. Simon of Newburgh, Indiana was brought to custody with assistance from the Secret Service, the Evansville Police Department and the Warrick County Sheriff’s Department earlier this week for an alleged Ponzi scheme according to court documents. Simon has been investigated by Secretary of State Connie Lawson’s office for allegedly swindling investors out of over $1 million. Vanderburgh County Prosecutor Nicholas Hermann filed multiple felony securities fraud charges resulting in the issuance of an arrest warrant for Simon.
The investigation began when Simon went missing from the state in April. Investors started reporting to the Secretary of State’s office they were no longer receiving interest payments on their investments. After Simon apparently left the state, authorities traced his whereabouts to Alabama and then later to New Mexico. He continued to roam free, while authorities sought to serve the arrest warrant until earlier this week when he submitted to the authority of the Court, just as the Secret Service and local police zeroed in on his location.
According to the Probable Cause affidavit, investigators believe at least 12 people were victimized by Simon’s scheme. He allegedly offered his victims the opportunity to invest in his “special company†and promised a high rate of return. Over the past 25 years, Simon had earned most of his victims’ trust by serving as their insurance agent and investment advisor. He operated two Evansville companies: The Insurance Shoppe and Financial Security Planning.
“Many of Simon’s victims were shocked when they learned of these allegations.,†said Secretary Lawson. “Unfortunately, this is generally true in many Ponzi scheme cases. No matter how well you think you know your financial professionals, you should always ask questions and check with my office to make sure you are working with a licensed professional. I applaud Prosecutor Hermann for his commitment to prosecuting white collar crime.â€
This week, Simon went before a judge in Vanderburgh County. He was released on a $100,000 professional bond and was placed on home detention as a condition of bond. He is facing a Class C felony securities fraud charge, a Class C felony for the sale of
unregistered securities and Class B felonies for securities fraud upon a victim over age 60.
For information on how to avoid becoming a victim of investment fraud visit www.indianainvestmentwatch.com.
VANDERBURGH COUNTY FELONY CHARGES
Below is a list of felony cases that were filed by the Vanderburgh County Prosecutor’s Office on Thursday, September 12, 2013.
Danny Jones Possession of a Schedule III Controlled Substance-Class D Felony
Public Intoxication-Class B Misdemeanor
Angela Smitha Possession of a Schedule IV Controlled Substance-Class D Felony
Unlawful Possession or Use of a Legend Drug-Class D Felony
Theft-Class D Felony
For further information on the cases listed above, or any pending case, please contact Kyle Phernetton at 812.435.5688 or via e-mail at KPhernetton@vanderburghgov.org
Under Indiana law, all criminal defendants are considered to be innocent until proven guilty by a court of law.
EVSC to Dedicate “Jerry Hoover Performing Arts Centerâ€
September 14
4 p.m.
North High School, 15331 Highway 41 N
In honor of his long-time commitment to music and music students in the Evansville Vanderburgh School Corporation, EVSC and EVSC Foundation will officially dedicate the performing arts center at North High School as the Jerry Hoover Performing Arts Center at a dedication ceremony planned for Saturday, September 14, at 4 p.m. at North High School. In addition to the naming, a fund also has been set up in Hoover’s name that will be used to assist deserving high school music students to be able to perform.
The event is open to the public.
As the first vocal music director at North High School, Hoover made an impact on countless students through vocal music and theatre education. Although now retired, he is known throughout the community for leading students in developing their musical abilities and also for his personal performances.
A group of alumni from North began spreading the word earlier this year about the opportunity to name the Performing Arts Center after their mentor. Those individuals include: Caren Gentry Whitehouse class of 1975; Rev. Rick VanHoose, class of 1962; Steve Fritz, class of 1964, Don Bernhardt, class of 1974, and Ned and Marilyn Conder, friends of Hoover.
Sen. Becker, Rep. Crouch Invite Residents to Discuss Legislative Issues During Office Hours
STATEHOUSE (Sept. 12, 2013) — State Sen. Vaneta Becker (R-Evansville) and State Rep. Suzanne Crouch (R-Evansville) invite Warrick and Vanderburgh County residents to share thoughts and concerns during their office hours Thursday, Sept. 19. The Southwest Indiana legislators will be available at two area locations for any comments regarding new laws or other legislative issues.
When:Â Thursday, Sept. 19, 11:30 a.m. to 1 p.m.
Where: Ohio Township Public Library, 4111 Lakeshore Dr., Newburgh
When:Â Thursday, Sept. 19, 4:30 to 6 p.m.
Where: Evansville Vanderburgh Public Library – Oaklyn Branch, 3001 Oaklyn Dr., Evansville
“With the 2014 legislative session just around the corner, your input on potential new laws is vital,†Becker said. “I hope many residents will take the opportunity to offer their ideas on how to improve our local schools, business climate, health-care services and other areas important to Hoosiers.â€
All residents of Senate District 50 and House District 78 are welcome to the office hours, and appointments are not necessary. To confirm your district, visit district.iga.in.gov.
“Every law starts with an idea to make Indiana a better, safer place to live, work and raise a family,†Crouch said. “If you have a way to improve our state, I encourage you to come and share it with us.â€
Dr. Bucshon Votes to Prevent Healthcare Fraud, Protect Taxpayers Dollars
(Washington, DC) – On Thursday, the House passed H.R. 2775, the No Subsidies Without Verification Act, a bill to ensure that Affordable Care Act exchange subsidies are granted only to consumers who meet the eligibility requirements. H.R. 2775 prohibits the distribution of premium tax credits and cost reduction subsidies before the Department of Health and Human Services Inspector General certifies that the Department has an operational program in place to verify household income and other coverage qualifications.
Rep. Bucshon (IN-08) released the following statement:Â
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“The exchange infrastructures and consumer verifications under the Affordable Care Act are behind schedule and critical security testing to protect sensitive consumer data has been delayed. Not to mention, the Administration has exempted big business from the law while expecting individual Americans to comply with confusing and burdensome rules and regulations. It is increasingly apparent that Affordable Care Act is not ready for primetime and never will be.
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“When the Administration announced the Affordable Care Act exchange infrastructure was not ready to verify the eligibility of healthcare consumers, their solution was instead to rely the consumer to self report their income and healthcare status – leaving the door open for fraudulent behavior. Today, the House passed important legislation to stop fraudulent healthcare claims before they happen and protect taxpayers from funding subsidies to consumers who are ineligible.
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“While I firmly believe that the Affordable Care Act should be repealed in its entirety, this bill is an important step to protecting healthcare consumers and taxpayers from an unfair and reckless regulation from this Administration.†          Â
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BACKGROUND:
On July 5th, the Department of Health and Human Services (HHS) released more than 600 pages of Affordable Care Act regulations which included an announcement that the government would no longer verify that each applicant for the exchange subsidies are actually qualified for the assistance. Instead, the administration would rely on self-attestation and sample audits to “protect†the integrity of this new $1 trillion entitlement program. HHS later announced a change in this policy and stated it would extend the sample population to 100%.
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The Problem:
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- Individuals who self-attest will still receive taxpayer-funded subsidies during the audits, which could take up to 6 to 12 months.
- Not verifying eligibility opens the door to approximately $250 billion in fraudulent payments through Affordable Care Act subsidies, all to prop up a law that the American people continue to overwhelmingly reject. (Source: WSJ)
- No official changes have been made to the rule—there is no guarantee to the American people that applicants will be verified.
- No information has been provided to Congress on how long HHS will take to verify eligibility.
The Solution:
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H.R. 2775, the No Subsidies Without Verification Act, prevents the Obama administration’s attempt to defraud taxpayers by demanding that accurate verification systems be put in place before subsidies are dispersed. This sensible measure requires the HHS Inspector General to verify subsidies are issued to only eligible Americans. H.R. 2775 prevents fraudulent Affordable Care Act subsidy claims before they go out – ending the pay and chase of fraudulent claims that plagues our health care system.
Verification Protects Taxpayer Dollars. The Democrat-led Senate Appropriations Committee has already unanimously passed legislation (S. 1284, Section 226) affirming its belief that the Obama administration must verify eligibility before doling out taxpayer-funded subsidies.
Additionally, a Senate companion measure has been offered by Senator Coburn, S. 1455.