Miami Herald: Miami federal jury to decide fate of men behind ‘bar girls’ club ring 12/18/2012

BY JAY WEAVER

Like an addictive soap opera, the federal trial of a South Beach ring accused of directing a gaggle of girls to swindle tourists at Russian-style clubs zigged and zagged for more than 10 weeks.

Now, the Miami jury is deliberating the fate of four men charged with fleecing hundreds of thousands of dollars from dozens of male visitors by racking up bogus bills for champagne, vodka and caviar on their credit cards.

The jury, which began deliberations Thursday afternoon, heard testimony from an admitted Russian mobster who organized the Miami Beach club racket; a few “bar girls” who seduced the customers at swank hotels like the Delano and lured them back to the private bars; a former Fox TV weatherman who was taken for $43,000 over two nights; and an undercover Miami Beach police officer who posed as a dirty cop and worked as a bouncer for the clubs while recording the illicit activity.

The Philadelphia TV weatherman, John Bolaris, described the so-called B-girls in his testimony as “very cutesy, like the girls next door … the kind of girls you’d like to marry.” He was so sloshed that a pair of the beguiling girls snookered him into buying a modernistic painting of a woman that hung on the wall at the Caviar Bar on Washington Avenue. The price tag: $2,480.

And if all that weren’t enough, the four defendants took the witness stand to fight the fraud charges, which is highly unusual during a trial.

The puppet master behind the alleged scam: Alec “Oleg” Simchuk, 46, a naturalized U.S. citizen who along with others illegally brought the bar girls from Russia and the Baltic states, where he had developed his original business model before replicating it in Miami Beach. Simchuk pleaded guilty to fraud and testified in October about his partners and associates.

In 2010, Miami Beach police and the FBI launched an undercover investigation into the “B-girl” network after Bolaris and other customers complained to their credit card companies about the outlandish bar tabs.

Last year, a total of 18 defendants were charged in the fraud conspiracy. Twelve defendants, mostly women, have since pleaded guilty. Almost all have already served short prison sentences.

Standing trial since mid-October: Stanislav Pavlenko, 41; Albert Takhalov, 31; Siavash Zargari, 48, who live in the Aventura and Sunny Isles Beach areas. Longtime Sunny Isles Beach Realtor Isaac Feldman, 51, is the fourth defendant. If convicted of wire fraud, each faces up to 20 years in prison.

A fifth defendant, Kristina Takhalov, who worked as a bartender, pleaded guilty during the trial to a few wire-fraud charges, rather than go through with the final stages of the proceeding.

A sixth defendant, Simchuk’s “silent” investment partner, Andrejs Romanovs, is a fugitive in Russia. And the seventh defendant, Mikhail Rasner, a club investor with Albert Takhalov, was not on the docket because his defense lawyer was involved in another trial at the same time.

According to the charges, Simchuk and the other defendants operated the alleged ring for a year at the Caviar Bar and the Stars Lounge, both at 643 Washington Ave.; the VIP Lounge and Tangia Club, both at 841 Washington Ave; Nowhere Bar, 653 Washington Ave.; Steel Toast, 758 Washington Ave.; and Club Moreno, 1341 Washington Ave.

Before the FBI rounded up the ring in April 2011, Simchuk had already left for Latvia (later detouring to Russia), but he eventually grew tired of life on the lam. In March of this year, he made up his mind to return to Miami, disclosing his plan to his fellow fugitive in Russia.

That stirred things up. Soon after, he said he got a “threatening” call from an indicted business associate in Miami on his cellphone.

A month later, while smoking a cigarette outside his mother-in-law’s St. Petersburg apartment, he was accosted by strangers, he testified in his thick Russian accent. “One guy pulled gun on my head and said, ’Good people from Miami don’t want you to testify. You have beautiful wife. Stay at home.’ Another guy just broke my leg, just squeeze it in one shot.”

After a year as a fugitive, Simchuk was arrested by FBI agents upon his arrival at Miami International Airport in July. He promptly pleaded guilty, agreeing to testify against his alleged partners and associates.

In Simchuk’s plea agreement, he admitted that his organization ran up phony bills for booze, wine and champagne on the credit cards of blurry-eyed male tourists.

All told, the scam cost customers between $400,000 and $1 million, according to the written agreement. The “B-girls” received 20 percent commissions, while Simchuk’s partners pocketed most of the illicit profits.

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CBS Miami: S. Fla. Rabbi Arrested On Fraud Charges

SUNNY ISLES BEACH (CBS4) – A South Florida rabbi made an appearance in court Tuesday answering to charges that he filed false insurance claims netting his thousands of dollars.

Police say Barry Kallenberg, 60, tried swindling several companies, and police say he even used Miami International Airport as part of his elaborate scheme.

Kallenberg is a traveling Rabbi who lives in both New Jersey and Sunny Isles Beach.

“I travel back and forth,” he told a bond court judge.

“Do you have a congregation in New Jersey?” the judge asked.

“No, I do mostly weddings, funerals, and unveilings,” replied Rabbi Kallenberg.

Police say the Rabbi used his travels to make fraudulent insurance claims.

The arrest report says the Rabbi would pick up his luggage after a flight, then come back to the airport and report the luggage as missing, filing insurance claims with American Express and Allianz Global Assistance — two companies which provide traveler’s insurance.

Investigators say he pocketed more than $30,000 since 2006.

The Rabbi asked the judge to release him and tried setting his own rules.

“Release me on conditions that I would not need leave the county and I can report, if you wish, to the Sunny Isles Beach police department every day, if that would make this court satisfied,” said Rabbi Kallenberg.

The judge set the Rabbi’s bond at $110,000 in part, because police say, they found 73 fraudulent transactions. That’s 73 counts of grand theft, false insurance claims, and false supporting insurance documents.

“You know I’ve entered a bond that I believe is fair based on the facts or the circumstances alleged in the case.

I’ve taken into consideration that the allegations are non-violent but they do constitute an elaborate scheme to defraud,” the judge said.

Rabbi Kallenberg is also charged with organized scheme to defraud.

Both American Express and Allianz tell CBS4 News they won’t comment on this case just yet.

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INFORMED SUNNY ISLES BEACH VOTERS WIN IN 2012

In a decisive win over opponent Harvey Busch, Bud Scholl retained his seat as Sunny Isles Beach Commissioner in the November 6, 2012 election. As we expressed throughout this campaign, we at the SIB Reporter always felt that he was the better candidate, and as such, could not be happier with the results.

However, a review of the statistics on the Miami Dade County Elections website reveals something interesting. Though Commissioner Scholl carried three of four districts, Harvey Busch got more than half (54%) of the absentee votes (for details click on this link:  http://results.enr.clarityelections.com/FL/Dade/42008/110958/en/vts.html?cid=0167). Given the great disparity of qualification of the candidates, this result serves as a cautionary tale for voters who mail in their ballots too soon and without the benefit of all the facts.

In Miami-Dade County, voters can receive their absentee ballots weeks before the election and can be sent in at any time prior to the deadline, which is 6 days prior to the election. This year, the deadline happened to land on Halloween, but that will not always be the case. As SIBR readers are aware, we exposed Harvey Busch’s bankruptcy on October 12, 2012. However, Bud Scholl’s mailing on the same issue did not reach voter mailboxes until October 31. Therefore, it is likely that many voters who do not read the SIBR sent in their ballots without knowing anything about Harvey Busch’s bankruptcy. Of those voters, some may have supported Harvey anyway. But to those for whom matters of fiscal responsibility are important, the information may have made a difference in their vote. In our opinion, Commissioner Scholl would have been even more effective had he sent the “Bankrupt Busch” mailing a week earlier. But, as will all things, hindsight is 20/20.

To be clear, both strong and weak candidates covet the early / absentee vote for one very simple reason: There are no do-overs. A vote in the bag is a vote in the bag. A voter will have no choice but to stand by his/her original choice even if there is a change of mind down the road. Absentee voters are a very important part of our elections, and their early choice can profoundly benefit the candidates whose dirty laundry airs late in the game. Since there is no way of knowing what the opposition will dig up, make up, or distort, all candidates will work hard to secure those votes. During that process voters must be careful not to give their absentee ballot to others to fill out or mail, especially if the helpers are aligned with a political campaign. Let’s face it, the less ethical campaigns may be more interested in advancing their own cause and not the integrity of the democratic process. Only after the election are we likely to find out whether we turned to a well-intentioned person or a cheater.

OUR CLOSING THOUGHTS

Absentee ballots are wonderfully convenient. But we think that voters should sit on them for as long as they can so that they make the most informed decision within the allowed time frame. As we saw with the timing of Commissioner Scholl’s mailings, sometimes the October surprise arrives on the very last day. You want to mail your ballot when there are no surprises left! In this particular case the more qualified candidate won by a large margin as he should have. What absentee voters must keep in mind is that in a closer race, the uninformed have the power to elect the wrong candidate.

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Miami Herald: Incumbent Sunny Isles Beach commissioner reelected

By Lidia Dinkova

Sunny Isles Beach residents chose to keep Commissioner George ‘Bud’ Scholl on the dais for four more years.

Scholl won over his challenger Harvey Busch by 548 votes, earning 57 percent of the vote, according to final results released by Miami-Dade County on Thursday afternoon.

“I think this election was a lot about whether we are going to have an independent or a person who will vote with the crowd,” Scholl, 53, told The Miami Herald late Tuesday night.

Scholl takes pride on being “an independent voice” on the commission, he added.

“I feel that I bring a different perspective to the city,” Scholl said.

Challenger Busch got 43 percent of the vote.

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For All He’s Done, This Bud’s The One!

Throughout the 2012 campaign the Sunny Isles Beach Reporter (SIBR) has supported Commissioner Bud Scholl  because, in our view, he has already served the city well and it is in the City’s best interest to keep him four more years. In light of the numerous distortions and convenient omissions that have characterized Harvey Busch’s campaign, there is no doubt the SIBR supported the superior candidate. While Harvey Busch seems to have been propped up by insider supporters (the details of which are set forth in articles below), Commissioner Scholl has a solid record of helping the families of Sunny Isles Beach through his involvement with the K-8 school addition, preserving and creating necessary green spaces and parks, including the rebuilding of Newport Pier, and lowering the city’s property tax rates. Commissioner Scholl is not afraid to roll up his sleeves in commission meetings or behind the scenes. Most notably, though, and despite his opponent’s bogus claims, Commissioner Scholl is known for his attention and availability to the community, and as such is a true representative of Sunny Isles Beach residents.

In fact, the Oct. 29th, 2012 issue of the Sunny Isles Beach Sun features a page one article by Commissioner Scholl, entitled “The importance of donating blood: You have the power to save someone’s life.”  (Click here for entire article: http://www.sibfl.net/news_archive/news_121029/blood-article.asp).  In that article,  Commissioner Scholl, who is also Executive Vice President of OneBlood, Inc, explains the essential need for blood and that “…one in three of us will need blood at some point in our lives. Blood recipients are all around us, alive today because of the selfless act of blood donors.” Commissioner Scholl goes on to say, “Our mission is simple, and that is to save lives in our community.” We could not agree more.  That is why we encourage Sunny Isles Beach residents, voters and non-voters alike, to come out on Election Day, November 6, 2012, and contribute to the Blood Drive.  Look for the BloodMobile  at PELICAN COMMUNITY PARK .  Click here to see announcement: BLOOD.DRIVE.NOV.6.PELICAN.PARK

OUR CLOSING THOUGHTS

We at the SIB Reporter find the coinciding scheduling of the Election and Blood Drive a fitting conclusion to this campaign season as it symbolizes the balance of both of Bud Scholl’s professional worlds.  The Election highlights Commissioner Bud Scholl’s service to Sunny Isles Beach while the Blood Drive illustrates his service beyond our city limits.  There can be no doubt that Commissioner George “Bud” Scholl  is dedicated to having a positive impact on society.  In his many years of service to our city, he has delivered. Therefore, we should all  MAKE IT OUR GOAL TO RE-ELECT BUD SCHOLL!

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APPARENTLY THE RULES DO NOT APPLY TO HARVEY

Through a Public Records Request The Sunny Isles Beach Reporter received a City Advisory Committee proposal for vetting candidates dated December 29, 2010 [see document by clicking here:  vet. proposal.2.pages ] wherein Harvey Busch, Chairman of the City Advisory Committee, along with his committee members, Tony LoCastro, Vice Chairman, and member Bob Welsh proposed the need for several changes in our City’s election statutes. They made several valid recommendations. The very first point they made addressed the lack of vetting of candidates. It states:

All candidates for office should be fully vetted before their name appears on any ballot. By vetting I mean that at least these following items be fully verified:

Third on the list of recommended checks was the following:

Business history vis-a-vis lawsuits and bankruptcy filings as far back as the law allows

Why is this relevant? If you have read our previous articles on Mr. Busch, you would know two things. First, Mr. Busch filed for bankruptcy last year. Second, Tony LoCastro and Bob Welsh support Harvey Busch and have leadership positions in the City Advisory Committee as well as certain organizations in Sunny Isles that also support Mr. Busch.

What does this have to do with the election?  The vetting proposal provided above illustrates how Mr. Busch and his insider supporters are quick to talk standards and point fingers, yet fail to apply these standards to themselves and FAIL TO DISCLOSE these very facts about  Harvey Busch who is out and about asking for your vote.

If in 2010 Mr. Busch thought that filing for bankruptcy (although not against the law) was an important enough factor to be a necessary part of the vetting process for a candidate, why then did he choose to maintain silence of his own 2011 bankruptcy? If in 2010 he thought a bankruptcy should be disclosed prior to a candidate’s name appearing on any ballot, why didn’t he disclose it prior to putting his own name on the 2012 ballot? Why didn’t the organizations that support him, and that supposedly serve voters’ interests disclose this? Is there anything else Mr. Busch and his friends are keeping from us? Perhaps an older bankruptcy from back in the day? Inquiring minds want to know.

Busch’s staunch supporters, Mr. LoCastro and Mr. Welsh, who served with Mr. Busch on the committee that prepared this document have, to our knowledge, remained silent on the issue of Mr. Busch’s bankruptcy. However, they too considered bankruptcy an important factor in vetting candidates. Therefore, voters need to know if members of the City Advisory Committee, Mr. LoCastro and Mr. Welsh, were aware of the Busch 2011 bankruptcy when he registered as a candidate. And if they were not, at what point did Mr. LoCastro and Mr. Welsh alert voters? To our knowledge, they never did. And if they have, how do they reconcile their candidate’s bankruptcy with their own rules?

How can Mr. LoCastro and Mr. Welsh expect voters to place their confidence and give their vote to a man who would not apply the same rules for himself as he would impose on others? Don’t members of the City Advisory Committee and leaders of other prominent city organizations understand that most voters would consider a man who cannot handle his own affairs a poor choice to handle the far more complex affairs of our City? The obstinate refusal of Harvey Busch to admit his own financial failure along with Mr. Busch’s apparent position that he is exempt from rules he himself proposed for other candidates is outright offensive and disgraceful. It is precisely this kind of campaigning that chips away at the trust that voters have in their elected officials.

Lastly, we would like to point out that Mr. Busch has also failed to follow other rules in his campaigning process. Harvey Busch is currently under investigation by the Florida Elections Commission for improper use of credit cards for his campaign expenditures and improperly filing his campaign treasury reports. Mr. Busch’s entire campaign strategy has been to hide behind negative mailers smearing his opponent with lies instead of facing him like a man in a public debate, as Commissioner Scholl has requested on numerous occasions.

OUR CLOSING THOUGHTS

Mr. Busch and his insider supporters are making a mockery of the Sunny Isles Beach election process. Their campaign is completely void of substance. Furthermore, they do not live up to THEIR OWN STANDARDS, much less the Florida Elections Commission’s. Because there is no transparency or substance to offer, Harvey Busch’s campaign has consisted entirely of attacking his opponent and flying in relatives to speak about coronary artery disease. Apparently Harvey Busch is confused about the purpose of meet and greets during a political campaign. We are trying to elect a commissioner, not have a medical check-up! Clearly, following the rules is not a priority for Harvey Busch. Also, keep in mind that his campaign is already notorious for its disregard for the rules of grammar, sentence structure, and spelling. What can you expect from a man who, aside from the more pressing issues mentioned above, signs and files treasury reports that don’t have the proper spelling of commissioner ?! We are not making this up.  Click on these links and see for yourself:  Busch.CTR.1 Busch.CTR.2Looks like Harvey will sign anything his handlers put in front of him.

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HARVEY BUSCH: A MANCHURIAN CANDIDATE OF SORTS

The SIB Reporter received several responses in support of Harvey Busch, who is running against Commissioner George “Bud”Scholl in Sunny Isles Beach. These comments are from (1) Tony LoCastro, who currently serves on the City Advisory Committee (CAC) with Mr. Busch; (2) Bob Welsh, who ran unsuccessfully for commissioner in 2010. Mr. Welsh also serves on CAC and the executive board of Concerned Citizens(CCNED); and (3) Janet Cini, President of Concerned Citizens along with Mr. LoCastro and Mr. Welsh
who jointly run CCNED and the Democratic Club.  (Click here to see these parties’ long-standing ties to Concerned Citizens and Democratic Club: CONCERNED.CITIZENS.ETC ). Their comments appear with the corresponding article for you to read and all seem to be variations of the same theme – empty, flawed arguments and outright distortions against Commissioner Bud Scholl on the one hand; and a desperate attempt to prop up a fast-sinking candidate on the other hand.  All in all, the support from CAC, CCNED, and the Democratic Club boils down to the support of three overlapping individuals.

We at the SIB Reporter try not to make general statements without backing them up.  We will not only state that others’ statements are flawed or distoring.  We will show you.   So, let’s look at some of the flawed arguments and distortions in the aforementioned comments and how they compare to facts:

THEIR CLAIM: Commissioner Scholl cannot properly balance his private and public
sector commitments and he is not around as much as Mr. Busch’s supporters think
he should be.

FACT: Our records check with the City Clerk reveals that Commissioner Bud Scholl has missed only 4 of 132 meetings scheduled since Commissioner Scholl took office in 2007.  That’s 97% attendance. Are they really raising this as an issue? Perhaps Mr. Busch and his associates are trying to distort the facts (again) by including, without proper clarification, non-mandatory informational agenda meetings. These meetings are intended for information only but often lead to deeper discussion of issues before a televised commission meeting. Commissioner Scholl has stated that he finds this inappropriate and has chosen to address staff directly in answering his questions on agenda topics before commission meetings and then push for full discussion of all items of interest at the televised meetings which can be viewed by the public.

THEIR CLAIM: Harvey Busch would add diversity to the Commission and better represent senior citizens.

FACT: Commissioner Scholl has advocated for senior citizens during his tenure. For
example, he was the only commissioner who supported doubling the budget for the
Senior Program run by Dennis Stubbolo and Roz Brezin in the preliminary budget
meeting this summer. Furthermore, Commissioner Scholl announced four long-term goals for his second term, which includes establishing a location for seniors to gather on a regular basis. We fail to see how replacing Commissioner Scholl with a senior citizen would render different or better results.

THEIR CLAIM: Commissioner Scholl claims to be solely responsible for the City’s
accomplishments.

FACT: Commissioner Scholl has advocated and contributed, as all commissioners do. To
our knowledge, there have been no publications or public statements stating that Commissioner Scholl is a one-man-show. We invite Mr. Busch’s supporters to
produce an example supporting their claim, and we will gladly discuss it here.

THEIR CLAIM: Commissioner Scholl represents the developers, not the people. That is why he was the only Commissioner to vote against making the temple a historical site. (Side note: this claim was made by a person giving the name Linda Schlof, whom we strongly suspect to be Mr. Harvey Busch’s daughter, and who may not even be a Sunny
Isles Beach voter).

FACT: Harvey Busch spoke in the March 1, 2012 Special Commission Meeting in favor of the Chateau Condominium project with required variances of significant consequence
to adjacent property owners. Commissioner Scholl voted against the project trying to protect the rights of the adjacent property owner from the egregious variance. Additionally, Harvey Busch’s recent campaign report shows that he accepted a $500 contribution from Kobi Karp, the most prominent lobbyist / architect in South Florida with ties to Sunny Isles Beach. To be clear, it is not our position that there is something wrong with garnering business or developer support. However, there is something wrong with accusing others of what you are doing yourself (especially through a third party).

FACT:  Commissioner Scholl’s vote to NOT give the temple a historical  designation was a vote IN FAVOR OF THE TEMPLE.   Commissioner Scholl did not want the City to
compromise its land use regulations in support of what was an apparent dislike for the Rabbi. Since this meeting the City has faced inquiries from the Department of Justice and other lawsuits regarding the mistreatment of the Temple designation process and the Rabbi. Bud Scholl was the only Commissioner who tried to prevent the City from getting exposed on this issue and spending tax payer dollars on unnecessary litigation. We encourage you to see the video of the September 2nd, 2010 commission meeting, arguments, and vote which can be viewed in its entirety on the www.sibfl.net website. You can also find articles on this issue in our archives.

OUR CLOSING THOUGHTS:

Mr. Harvey Busch has the support of three individuals who run various organizations in Sunny Isles Beach.  And these same individuals seem to be speaking in one distorted voice.  At the same time, that voice is strangely silent on its candidate’s bankruptcy.  We believe this is a critical issue that Mr. Busch must address.

 

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Harvey the Debtor: Bankruptcy Bombshell

The Sunny Isles Beach Reporter has uncovered that Harvey Busch filed for bankruptcy just last year [See PACER case summary by clicking here: HARVEY.DEBTOR].  According to Mr. Harvey Busch’s U.S. Bankruptcy Court Petition (see page 3 of link ), Harvey Busch owed over $57,000 in credit card debt, which he conveniently discharged in his 2011 bankruptcy.

Our previous piece, Harvey the Distorter has been proven true by Mr. Harvey Busch, who has quite a knack for distorting reality, especially his own.

In Harvey Busch’s recent letter to Valued Voters (the subject of the aforementioned Harvey the Distorter), he states, “You and I are both suffering during these difficult financial times.” That is his distortion. This is his reality: Mr. Busch lives in a spacious (over 2,000 sq. ft.), magnificent oceanfront condominium with a million dollar view.  Furthermore, post-bankruptcy, he drives around town in a luxurious white Cadillac.  You may have spotted him cruising up and down Collins Avenue sporting conspicuous election magnets on his vehicle. If Mr. Busch is suffering, he hides it well.

We find it fascinating that Mr. Busch would use his first written outreach to the community to smear his opponent rather than come clean with his Valued Voters about his own public records and paradoxical personal circumstances.

In these difficult financial times, who would you want handling the City’s affairs? Harvey the Debtor, who avoids personal responsibility by filing for bankruptcy — or — Commissioner Bud Scholl,  who has excelled in public service in our City as well as in the private sector?  Honesty, Integrity, and Fiscal Responsibility are essential qualities in a public servant, which is why Commissioner Bud Scholl fits the bill.

In these difficult financial times, now more than ever, WE THE PEOPLE MUST MAKE IT OUR GOAL TO RE-ELECT COMMISSIONER GEORGE BUD SCHOLL!

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Thank Your For Your Patience

The SIB Reporter has received a tremendous amount of responses to our recent articles. Our readers should know that comments are not automatically posted. So if you do not see yours up right away, please be patient. We will get to it.

Please note that any comment with profanity will not be posted. It will be rejected along with the copious amount of spam we receive, and through which we must sift.  Just to give you an idea, at the time of this post, there are over 2,500 comments still pending.

And you never know…. If your comment is particularly noteworthy, you might even see it highlighted in one of our articles. Hopefully, it will be worth the wait!

We know you want to be heard, and you will be.

Thank you for your continued interest and support!
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FREE TRANSPORTATION FOR EARLY VOTING!

Early voting begins Ocotber 27, 2012.  This year there is a very long ballot, so there may be a longer wait than usual at the polls on election day.  The great news is that the City of Sunny Isles is providing free transportation for our residents!  We encourage you to take advantage!

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