Green cards for sale at a South Beach hotel: Competition is on for EB5 investment visas

If David Hart gets his way, South Beach’s 42-room Astor Hotel will be on a hiring spree this year as it adds concierge service, a roof-top pool, an all-night diner, spa and private-car service available 24 hours a day.

New hires will be crucial to Hart’s business plan, since foreign investors have agreed to pay about $50,000 for each job created by the Art Deco boutique.

The Miami immigration lawyer specializes in arranging visas for wealthy foreign citizens under a special program that trades green cards for investment dollars. Businesses get the money and must use it to boost payroll. The minimum investment is $500,000 to add at least 10 jobs to the economy. That puts the pressure on Hart and his partners at the Astor to beef up payroll dramatically, with plans to take a hotel with roughly 20 employees to one with as many as 100 workers.

“My primary responsibility is to make something happen here over the next two years that will create the jobs we need,’’ Hart said a few steps away from a nearly empty restaurant on a recent weekday morning. “It’s all going to be transformed.”

Though established in the 1990s, the “EB5” visas soared in popularity during the recession as developers sought foreign cash to replace dried-up credit markets in the United States.

Chinese investors dominate the transactions, accounting for about 65 percent of the nearly 9,000 EB5 visas granted since 2006. South Korea finishes a distant second at 12 percent and the United Kingdom holds the third-place slot at 3 percent. If Latin America and the Caribbean were one country, they would rank No. 4 on the list, with 231 EB5 visas granted, or about 3 percent of the total.

Competition has gotten stiffer for the deep-pocketed foreign investors willing to pay for green cards. The University of Miami’s bio-science research park near the Jackson hospital system raised $20 million from 40 foreign investors under the EB5 program, most of them from Asia. The money went into the park’s first building; visa brokers are waiting to see if the second building will proceed so they can offer a new pool of potential green-card sales.

In Hollywood, the stalled $131 million Margaritaville resort had hoped to raise about $75 million from EB5 investors before ditching that plan last year to pursue more traditional financing. A retail complex by developer Jeff Berkowitz in Coral Gables also launched a program to raise $50 million in EB5 money for the project, Gables Station. Hart worked with other EB5 investors to back pizza restaurants in Miami and South Beach. A limestone mine in Martin County also was backed by EB5 dollars.

This year, the city of Miami itself is expected to get into the business by setting up an EB5 program to raise foreign cash for a range of city businesses and developments. The first would be the tallest building in the city — developer Tibor Hollo’s planned 85-story apartment tower, the Panorama, in downtown Miami.

With a construction cost of about $700 million, Miami’s debut EB5 venture hopes to raise about $100 million from foreign investors, said Laura Reiff, the Greenberg Traurig lawyer in Virginia working with Miami on the EB5 effort. “This is a marquis project,’’ she said.

The arrangement is a novel one for Miami, with the city planning to help a private developer raise funds overseas for a new high-rise. And it would allow Hollo and future participants to tout the city of Miami’s endorsement when competing with other Miami-area projects for EB5 dollars. “We will have the benefit of the brand of the city of Miami,’’ said Mikki Canton, the $6,000-a-month city consultant heading Miami’s EB5 effort. “A lot of these others are privately owned and they won’t have that brand.”

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Traffic tickets, fraud probes and deaths: what Rep. Daphne Campbell says about the citizen legislature and Miami-Dade

A Campbell family minivan has racked up five tickets for running right lights since 2010.

Most citizens would slow down. But Daphne Campbell isn’t like most citizens.

She’s a Democratic state representative who has another way to deal with future red-light tickets: file legislation to ban the traffic-surveillance cameras that shot video of her husband’s Honda Odyssey breaking traffic laws.

It could seem like a conflict of interest. But as long as a lawmaker’s bills don’t benefit him or her or a family member uniquely, it’s generally not a conflict of interest.

This is the state of ethics in the Florida Legislature. It’s a citizens’ legislature of 160 part-time lawmakers. They theoretically come from all walks of life and private professions.

This is representative democracy.

And Campbell, of Miami Shores, represents so much more in Miami-Dade.

Many citizens run red lights in Miami-Dade. Campbell is from Miami-Dade. And someone in her family ran red lights five times.

Miami-Dade is also a Medicaid fraud capital. Campbell and her husband own businesses that bill Medicaid. And the state’s Medicaid Fraud Control Unit began investigating them two years ago. Their son, 30-year-old Gregory Campbell, faces Medicaid fraud charges in an alleged $300,000 scheme.

Many in Miami-Dade have tax problems. Campbell is from Miami-Dade. And she and her husband last spring were slapped with $145,000 worth of liens. The IRS also began examining the Campbells over financial transactions involving a web of family healthcare businesses. Two former business associates told The Herald and IRS that the Campbells scammed them.

Miami-Dade has questionable mortgages. The Campbells own numerous properties in Miami-Dade. Campbell’s husband pleaded guilty in 2007 to a federal charge of falsely using someone else’s Social Security number to obtain $829,103 involving six separate loans, one of which was from a Honda dealership.

Miami-Dade has lots of immigrants who get ripped off. Campbell’s legislative office is in Miami-Dade. Turns out, her top aide Janice Shackelford was arrested for grand theft last fall for allegedly charging constituents, mostly Haitian immigrants, phony fees for help that never materialized. Before Campbell hired her, Shackelford had pleaded guilty to a 2006 grand theft charge in Miami-Dade; a swindling charge was dropped.

North Miami has been plagued with “unscrupulous” absentee ballot irregularities at assisted living facilities, a county ethics group reported in 2008. Campbell campaigned in a North Miami ALF. And that very ALF was highlighted in the ethics group report that pointedly mentioned the Democrat by name.

Some group home residents have died or been raped in Miami-Dade. Campbell and her son ran Professional Group Home, based in Miami-Dade. And two developmentally disabled Miami-Dade residents died in its care in 2006, one after she was raped by a dangerous resident. The rapist wasn’t supervised closely despite Daphne Campbell’s assurance to a judge that he would get “’one-on-one” monitoring from staffers who will “’be with him everywhere he goes.”

Beyond Miami-Dade, in Lee County, two other disabled people died in Professional Group Home’s care in 2006. One disabled man, who had profound trouble eating, was allowed to have a peanut-butter-and-jelly sandwich that choked him to death.

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Chris Brown Car Collision

ET has learned that Chris Brown was involved in a solo, non-injury traffic collision in Beverly Hills at noon today, blaming the paparazzi for losing control of his Porsche and colliding with a wall.

Pics: Remembering Whitney Houston

A statement from Lieutenant Lincoln Hoshino of the Beverly Hills police details the incident: "On February 9, 2013 at approximately 12:03 p.m., entertainer Chris Brown was involved in a solo, non-injury traffic collision in the 600 Block Bedford Drive/Camden Drive alley. Mr. Brown was the driver of the vehicle and collided with a wall. Brown stated that he was being chased by paparazzi causing him to lose control of his vehicle. Brown's Black Porsche was towed from the scene at his request."

Related: Rihanna Accompanies Chris Brown to Court

Earlier this week, Brown visited an L.A. courthouse with girlfriend Rihanna on to oppose a motion to revoke his probation stemming from his 2009 assault on Rihanna. Prosecutors claim Brown did not show sufficient evidence that he completed his required community labor sentence. 

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Man slips off platform, hit by NJ Transit train

RED BANK, NJ — New Jersey Transit says a man suffered a broken leg when he slipped off a train station platform and was struck by a train.

The accident occurred around 6:15 a.m. Sunday in Red Bank.

NJ Transit spokesman John D'Urso Jr. says the man apparently slipped and fell on to the tracks. He was soon hit by North Jersey Coast Line train No. 7208.

No passengers or crew members aboard the northbound train were injured in the accident. The passengers were soon transferred to another train to complete their journey.

The injured man's name was not released. He was being treated at a hospital, but further details on his injuries were not disclosed.

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Mega mansion frenzy: Buyer snaps up Pat Riley’s $16M home to level it, rebuild

Miami Heat President Pat Riley sold his spectacular bayfront mansion in gated Gables Estates for $16.8 million last March.

The 12,856-square-foot Mediterranean-style dream house at 180 Arvida Parkway has a theater, wine cellar, library, and a sprawling pool with waterfalls and an aqua bar.

But that’s all coming down.

Turns out the lure was the lot: a rare fingertip of prime land, nearly two acres, jutting into the turquoise waters of Biscayne Bay.

In December, the buyer — listed as 180 Arvida LLC represented by Miami attorney Mark Hasner — presented the city of Coral Gables with plans to tear down the home, built in 1991, and erect an even grander estate along the 900 linear feet of bayfront.

“Most people would move in and be perfectly happy, but clients are looking for perfection — really good stuff,” said Jorge Uribe, a senior vice president at One Sotheby’s International Realty, who wasn’t involved but sold an even bigger trophy property last year: a $39.4 million estate at 14 Indian Creek Dr., in Indian Creek Village, dubbed “Miami’s Billionaire Bunker” by Forbes magazine.

“The trend in the last several years is a demand for very high-quality product. People are looking for really good locations, really good materials, and they’re willing to pay for it,” Uribe said.

Miami’s ultra-luxury market is on fire. Prices for the fanciest single-family homes and condominiums have soared to levels never before seen in the area, fueled by strong foreign demand and renewed interest from New Yorkers and others in the Northeast.

With Miami’s global image burnished by Art Basel Miami Beach and the debut of other cultural and entertainment venues, the city is emerging as an even greater magnet for the world’s super-rich.

In January, a penthouse at the Setai Resort & Residences on Miami Beach fetched $27 million, a new high for a Miami-Dade condominium. “Every building we do business in is at its highest price of all time,” said Mark Zilbert, president of Zilbert International Realty, which represented the buyer in the Setai deal.

Last August, a sleek, new home, built on spec at 3 Indian Creek Dr., sold for $47 million, a record high for a Miami-Dade residence. The buyer, whose identity has not been revealed, is Russian.

“People are realizing how valuable the bay waterfront is,” said Oren Alexander, co-founder of the Alexander Group at Douglas Elliman Real Estate, who co-listed the 3 Indian Creek property with The Jills team at Coldwell Banker and represented the buyer for the home. His father, Shlomy Alexander, developed the property with partner Felix Cohen.

Shlomy Alexander is working on two more extravagant spec homes — one at 30 Indian Creek Dr. and a second that is set to break ground shortly at 252 Bal Bay Dr. in Bal Harbour, his son said. Plans envision a tropical modern-style project that fuses the indoors and outdoors — a concept popular in Brazil.

The elder Alexander recently traveled to Italy to shop for exclusive stone for the projects, said the son.

“It’s really trending to the ultra-luxury. All sorts of exotic materials — exotic woods, exotic marbles, exotic stones,” said Sean Murphy, an executive vice president at Coastal Construction, a major builder of luxury hotels and condominiums that also has erected some of the most extravagant mansions in the region. “Everything is so exotic.”

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Jazz event is a highlight for Black History Month

Jazz is popular music that originated among black people in New Orleans in the late 19th century. It’s a mix of blues, folk, march and ragtime, and it helps define the black experience in America. This year, for the second time, Jazz On The Green, a Black History Month program, will be held at Plymouth Congregational Church in Coconut Grove. The Feb. 10 presentation will again benefit The United Negro College Fund.

During a 10 a.m. church service, three educators will be recognized for their community service: Leona Cooper Baker, a retired teacher who works quietly and diligently to preserve and promote the historically black West Grove; Chester Fair, a college administrator who is active in the local and national Pan Hellenic Council, and who travels from Richmond Heights to Miami Gardens promoting youth programs; and retired school administrator Dorothy Wallace, who helps provide young women a second chance in life. The D.M. Wallace COPE Center-South, a Miami-Dade County Public School Academy of Health Science & Medicine, is named in her honor.

At 11:30 a.m., the jazz set begins. Featured artists include local favorites the Jesse Jones Jr. Quintet, vocalist Brenda Alford, musicians from the FIU Jazz Quartet, and Plymouth Congregational Church.

The public is invited to attend and donations to the United Negro College Fund are encouraged.

Why Black History Month?

Black History Month began in February as Negro History Week. The idea for the week was conceived by Harvard-trained historian Carter G. Woodson. He founded the Association for the Study of Negro Life and History later renamed the Association for the Study of African American Life and History (ASALH).

The week selected contains the birthdays of Abraham Lincoln (Feb. 12) and Frederick Douglass (Feb. 14). The first event was held in 1926. Fifty years later, in 1976, during the nation’s bicentennial celebration, Negro History Week was expanded to the entire month of February. Then-President Gerald R. Ford encouraged all Americans to “seize the opportunity to honor the too-often neglected accomplishments of black Americans in every area of endeavor throughout our history.”

Every president since then has dedicated February as Black History Month. The 2013 proclamation is online.

Programs nationwide celebrate national figures who made sacrifices in order to help advance society and recognize local figures working in the community to help improve life for future generations. Locally, Plymouth Church’s Black History is one of many program that carries out President Ford’s request.

At Plymouth, the activities of the event’s chair, Henry Givens, and co-chair Leatrice Taylor Damus are noteworthy. Both are active members of Plymouth Congregational Church, supporters of the United Negro College Fund, and each is recognized in a variety of community organizations for their outstanding leadership.

Committee chair Henry Givens, a native Miamian “born down south in Princeton,” is a Miami-Dade County Capital Inventory Specialist. He is Vice President of the Bahamas Education, Culture and Science Foundation, past chair of the Miami-Dade Community Relations Board and the first black person to chair the Coconut Grove Chamber of Commerce.

Co-chair Leatrice Taylor Damus, was born in River Rouge, Michigan outside of Detroit. One of American Airlines’ first black stewardesses, she and her husband moved to Miami in 1972.

She is a member of the Young Patronesses of the Opera, The Links Inc., Opera America, American Red Cross Ball Committee, Fairchild Tropical Botanic Gardens Gala Committee and the advisory committee for the University of Miami’s Friends of the Young Musicians’ Camp. Affiliated with Girl Scouts since childhood, in 2012 she received a signature award at the 100 anniversary of the Girl Scouts of America luncheon.

With their skills, the committee was able to have this event underwritten again by members of the Plymouth Church congregation and corporate sponsors. The goal is to help black college students continue their education. The public is encouraged to participate by making checks payable to The United Negro College Fund and sending them to Plymouth Congregational Church, 3400 Devon Road, Coconut Grove, FL 33133.

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State of Union to focus on economy

WASHINGTON — President Barack Obama will focus his State of the Union address on boosting job creation and economic growth at a time of high unemployment, underscoring the degree to which the economy could threaten his ability to pursue second-term priorities such as gun control, immigration policy and climate change.

Obama also may use Tuesday's prime-time address before a joint session of Congress to announce the next steps for concluding the U.S.-led war in Afghanistan by the end of 2014.

Obama's State of the Union marks his second high-profile speech to the nation in about three weeks, after his inaugural address Jan. 21 that opened his second term. White House aides see the two speeches as complementary, with Tuesday's address aimed at providing specifics to back up some of the Inauguration Day's lofty liberal rhetoric.

The president previewed the address during a meeting Thursday with House Democrats and said he would speak "about making sure that we're focused on job creation here in the United States of America." Obama said he would try to accomplish that by calling for improvements in education, boosting clean energy production, and reducing the deficit in ways that don't burden the middle class, the poor or the elderly.

While those priorities may be cheered by some Democrats, they're certain to be met with skepticism or outright opposition from many congressional Republicans, especially in the GOP-controlled House. The parties are at odds over ways to reduce the deficit. Republicans favor spending cuts; Obama prefers a combination of spending cuts and increasing tax revenue.

The president said he would address taxes and looming across-the-board budget cuts, known as the sequester, in the speech. The White House and Congress have pushed back the automatic cuts once, and Obama wants to do it again in order to create an opening for a larger deficit reduction deal.

"I am prepared, eager and anxious to do a big deal, a big package that ends this governance by crisis where every two weeks or every two months or every six months we are threatening this hard-won recovery," he said last week.

The economy has rebounded significantly from the depths of the recession and has taken a back seat for Obama since he won re-election in November. He's instead focused on campaigns to overhaul the nation's patchwork immigration laws and enact stricter gun control measures following the massacre of 20 schoolchildren in Newtown, Conn., in December.

The president also raised expectations for action this year on climate change after devoting a significant amount of time to the issue in his address at the inauguration.

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Hedge funds deserve a (close) look

When constructing a new house, you need to begin with a solid foundation. Otherwise, your home will always be a bit shaky and prone to collapse in a storm. That same principle applies when you start investing. Rather than taking a random approach – like buying a "hot" stock or keeping your money "safe" in a low-earning savings account – you need to start with a solid foundation. In the investing world, that means developing an investment plan and perhaps an investment policy – two basic tools that can help you build a solid financial "home."

First, let's look at an investment plan, which is often prepared with the help of a financial advisor. The plan typically has three basic elements: your goals, your risk tolerance and your desired return.

Usually, your financial goals will be closely aligned with your personal objectives in life. Perhaps you want to have $2 million in assets to support a comfortable retirement. Or you might be aiming to save $150,000 for a bigger house for a growing family or $100,000 to put your son or daughter through college. If you already have accumulated a large nest egg, you might focus on how best to pass your investments on to your children or grandchildren.

Having a clear goal in life – and in your investment plan – may be one of the essentials in building wealth. Rather than spending every dollar from your paycheck, you can start putting away some of that incoming money to prepare for the future.

Next, you should consider both your tolerance for risk and your desired return on your investments. Some people are willing to make higher-risk investments, while others prefer to sleep soundly at night knowing their investments are comparatively more secure. After all, assets like stocks and commodities are usually more volatile than bonds or other fixed income instruments, and rise or fall more steeply from day to day.

However, many of the more volatile assets can also generate higher returns over the long term. That's an important consideration because inflation can reduce the purchasing power of the dollars you stash away in money market accounts or other low-earning securities.

That's why a solid investment plan usually incorporates a diversified mix of assets, including stocks, bonds, cash-like securities, and possibly real estate, commodities, hedge funds and managed futures. Building a diverse portfolio reduces the risks associated with putting all your eggs in one basket

with the potential to generate positive returns over the years and keep you moving steadily toward your goals.

Now, let's look at your investment policy. This is a written statement designed to guide both you and your financial advisor when making financial decisions. It can help you balance investment issues related to risk and reward, perhaps ruling out certain assets as "too risky."

At the same time, developing an investment policy helps you reality-test your financial goals and current savings and investment plans. For example, you might be overly optimistic and expect a 12 percent annual return on your portfolio. Or you might be overly pessimistic, not realizing how your investments will grow with even a 5 percent annual return.

An investment policy can also clarify the roles of your financial advisors, as well as your own decisions. In that regard, it can help you avoid making investment mistakes based on emotions like fear or greed. In other words, it helps you maintain a disciplined steady course toward your goals, regardless of market ups and downs.

Finally, the investment plan and policy can provide tangible evidence of your financial progress. Your advisor can send you quarterly and annual statements(as well as discuss in person)that clearly show whether your portfolio has grown or declined, and where the changes occurred. This is information you need to know in order to make good decisions about your financial future.

So, consider your financial plan and policy as a road map. You may not yet be close to your goals, but at least you know you're on the right path!

•  Benefit amount. This is the maximum payment you would receive from the policy, such as $100,000, $500,000 or $1 million. Since five years of care in a nursing home or memory disorders unit could easily total $500,000 or more, a larger benefit amount is usually preferable, provided you can afford the premiums.

•  Benefit period. This is the maximum number of years that the coverage remains in effect. That might be five years, 10 years or the rest of your life.

•  Elimination period. Like a deductible amount in a life insurance policy, the elimination period specifies how long you would pay the cost of care before the policy kicks in. Typically periods are 30, 60 or 90 days.

Andrew Menachem, CIMA, CWS is a wealth advisor at the Menachem Group at Morgan Stanley Smith Barney in Miami and Aventura and teaches at the University of Miami.

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Miami-Dade woman apologizes to judge for flipping the bird

After apologizing Friday for flipping the bird to a judge earlier this week, 18-year-old Penelope Soto saw her $10,000 bond and remaining jail sentence vacated.

But Miami-Dade Circuit Judge Jeffrey Rosinek also ordered Soto to attend drug addiction counseling.

Soto had appeared before Miami-Dade Circuit Judge Jorge Rodriguez-Chomat earlier this week on a Xanax possession charge. During the hearing, Soto had giggled and stroked her hair when questioned by the judge.

After the judge initially setting her bond at $5,000 and saying “bye-bye” to Soto, she replied with a laugh and an “adios.”

Irritated, he reset her bond at $10,000.

To that, Soto offered up the rude gesture and an expletive.

That time, Rodriguez-Chomat issued a 30-day sentence for contempt of court.

Soto wasn’t laughing Friday when she apologized to the judge.

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House of Lies Exclusive Clip Lisa Edelstein First Look

Lisa Edelstein became one of the most adored actors on television after spending seven years playing Dr. Cuddy on House. But for her latest small screen endeavor, Edelstein is trading one "House" for another as she guest stars on Showtime's sensational House of Lies, beginning February 17 -- and ETonline has your exclusive first look at her in action!

RELATED - 12 Actors You Didn't Know Were on The West Wing

On Lies, Edelstein plays Brynn, a smart and sexy political consultant whom comes up against The Pod. And as you can see from our first look video, Marty instantly takes a shine to the bold and brash brunette.

RELATED - Kristen Bell & Don Cheadle Talk House of Lies

But how brave will Marty be with his heart? Watch House of Lies every Sunday at 10 p.m. to find out!

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