Jeb Bush’s tie to fugitive goes against business-savvy image he promotes

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A Bush tie to white collar crime? Color me surprised.

Jeb Bush was a young man building a real-estate business in Miami in 1985 when a health-care entrepreneur named Miguel Recarey Jr. hired him to help locate office space in South Florida.

Bush, then the son of the vice president, later provided another service: opening doors in Washington, where Recarey had mounted an aggressive lobbying effort for a waiver from Medicare rules that would allow his fast-growing company to continue to expand.

Recarey got what he wanted. But two years later, the firm, International Medical Centers, was shut down as regulators searched for millions in missing federal funds. Facing charges of bribery and bilking Medicare, Recarey fled the country to avoid prosecution. He remains a fugitive in Spain, where a court denied U.S. requests for extradition.

The Recarey case illustrates aspects of Bush’s business record that are likely to resurface as he moves closer to a campaign for president. Time and again, he benefited from his family name and connections to land a consulting deal or board membership, sometimes doing business with people and companies who would later run afoul of the law.

In the case of Recarey, Bush has said over the years that he “made one call” to a mid-level official to seek a fair deal for a Florida businessman.


But new interviews and a review of congressional testimony show that Bush engaged in multiple calls on Recarey’s behalf to senior administration officials — and that his advocacy made a difference.

One recipient of Bush’s outreach on behalf of Recarey, C. McClain Haddow, then the chief of staff to then-Health and Human Services Secretary Margaret Heckler, told The Washington Post that hearing from the vice president’s son “certainly altered the trajectory of the decision.”

-more-

http://www.washingtonpost.com/politics/jeb-bushs-tie-to-fugitive-cuts-against-savvy-business-image-he-promotes/2015/03/18/0a627a84-c804-11e4-b2a1-bed1aaea2816_story.html

[Octafish]

1. The Bush Family: A Continuing Criminal Enterprise?

Gary W. Potter, PhD.
Professor, Criminal Justice
Eastern Kentucky University

EXCERPT...

Jeb Bush: Influence Peddling for a “Bust-Out” Scam

But, Neil Bush was not the only Bush brother involved in the Savings and Loan collapses. Jeb Bush’s, the current Governor of Florida, curious relationship with Miguel Recarey is another illustration. Recarey was a long-time business associate of Tampa organized crime figure Santos Trafficante. Recarey also fled the U.S. facing three separate indictments for labor racketeering, illegal wiretapping and Medicare fraud (Freedburg, 1988: A1). Recarey’s business, International Medical Centers, was the largest health maintenance organization for the elderly in the U.S. and had been supported from $1 billion in payments from the Medicare program. International Medical Centers went bankrupt in 1988 (Freedburg, 1988: A1; Royce and Shaw, 1988: 4). When International Medical Centers went under it left $222 million in unpaid bills and was under investigation for $100 million in Medicare fraud (Freedbrug, 1988: A1; Frisby, 1992: G1). The U.S. Office of Labor Racketeering in Miami referred to Recarey and his company as “the classic case of embezzlement of government funds ... “a bust-out operation” (Freedburg, 1988: A1)

Jeb Bush’s role in this saga being in 1985 when Recarey’s attempt to create his “bust-out scam” corporation ran into a federal regulation that said no HMO could get more that 50% of its revenue from Medicare (Freedburg, 1988: A1; Royce and Shaw, 1988: 4). Jeb Bush intervened on Recarey’s behalf with Health Human Services Secretary Margaret Heckler and one of her top aides. Convincing them to waive the regulation in the case of Recarey’s company (Freedburg, 1988: A1; Royce and Shaw, 1988: 4). In addition to Jeb Bush’s intervention, Recarey had paid $1 million to senior Republican lobbyists in Washington, who were also working the staff of Health and Human Services in pursuance of a waiver (Freedburg, 1988: A1; Royce and Shaw, 1988: 4). In addition, Jeb Bush had contacted Secretary Heckler earlier about complaints from doctors over the quality of International Medical Centers’ care and allegations that Recarey had embezzled funds form another hospital (Royce and Shaw, 1988: 4). Jeb Bush told an aide to Secretary Heckler that “contrary to any rumors that were floating around concerning Mr. Recarey, that he was a solid citizen from Mr. Bush’s perspective down there [in Miami], that he was a good community citizen and a good supporter of the Republican Party” (Royce and Shaw, 1988: 4).

Not surprisingly, in 1988 Recarey’s company gave Jeb Bush’s real estate company $75,000 to help it find a site for a new corporate headquarters (Freedburg, 1988: A1; Royce and Shaw, 1988: 4). It was a bad investment because International Medical Centers had already selected a corporate headquarters location when it hired Jeb Bush (Royce and Shaw, 1988: 4).

Jeb Bush had a role in yet another Savings and Loan fiasco when he defaulted on a loan from Broward Federal Savings and Loan (LaFraniere , 1990: A24). Broward Federal loaned $4,565.000 to J Edward Houston, a real developer in February, 1985. The loan was secured only by Houston’s personal guarantee. On the same day, one of Houston’s company lent the same amount to a partnership made up of Jeb Bush and Armondo Codina for the purpose of purchasing a building in Miami. The Bush-Condina partnership was required to repay the loan only if revenues from the building were sufficient to cover the repayment. Bush and Condina made no payments on the loan at all and in 1987 Houston defaulted on the Broward Federal loan and the Bank sued both Houston and the Bush-Condina real estate partnership. In a sweetheart settlement with the Federal Deposit Insurance Corporation, Bush and Codina only had to repay $500,000 of the $4.5 million loan and got to retain ownership of the building which had been the collateral on the loan. In 1991, the FDIC sued the officers and directors of Broward Federal charging that the loan ultimately used by Bush and Codina was an example of the bank’s negleient lending practices (Frisby, 1992: G1). The Bush-Codina loan played a key part in the failure of Broward Federal which cost taxpayers $285 million (LaFraniere , 1990: A24).

CONTINUED...

http://critcrim.org/critpapers/potter.htm

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