Bondi Goes To Court For Tobacco Payments
January 22, 2017
Attorney General Pam Bondi has asked a Palm Beach County circuit court to resolve a dispute about whether two tobacco companies have improperly avoided paying tens of millions of dollars to the state under a landmark 1997 settlement with the tobacco industry.
Bondi’s office filed a motion to enforce the settlement in a dispute that stems from R.J. Reynolds Tobacco Co. selling the Winston, Kool and Salem cigarette brands to the tobacco company ITG Brands. The dispute also includes Maverick cigarettes, which were transferred to ITG amid a merger between R.J. Reynolds and Lorillard Tobacco Co.
The 1997 settlement required certain major tobacco companies, including R.J. Reynolds, to make annual payments to the state in exchange for legal protections.
In the motion, Bondi’s office contends that payments based on Winston, Salem, Kool and Maverick cigarettes improperly stopped after the brands became part of ITG. The motion said the state is owed more than $45 million.
“The sale of major, pre-existing tobacco brands to another company for billions of dollars does not cause the payment obligations to vanish like a puff of smoke,” Bondi said in a prepared statement.
A spokesman for Reynolds American, the parent company of R.J. Reynolds, said the company will fight the state’s claims, but he couldn’t comment directly on the active litigation.
“We believe we have strong legal and factual defenses to the motions filed today in this case and will vigorously defend against them,” Reynolds spokesman Bryan D. Hatchell said in an email.
A representative for ITG didn’t immediately respond to a request for comment.
The settlement resolved Florida’s 1995 lawsuit over the unlawful marketing and sales of cigarettes by R.J. Reynolds and other major tobacco companies.
The settlement required the tobacco companies to annually pay several hundred million dollars to Florida — the state received $378 million in 2014 — in exchange for a release from liability for past and future damages tied to the sale and marketing of cigarettes.
After the transfers of the four cigarette brands, Bondi’s office contends Reynolds has refused to include money from sales of the four brands in its annual payment to Florida, while ITG has similarly refused despite having agreed to assume obligations regarding the cigarettes.
“While the settling parties provided a mechanism for annual payment amounts to be decreased if the aggregate shipments fell, they necessarily intended that any such decrease would reflect lower consumer demand for these cigarettes — and thus lower public health care costs for the state,” the court document said. “The settling parties could not have intended and did not intend that the amounts paid to the state to cover the public health care costs from consumption of these cigarettes could be eliminated, wholly or partially, by a settling defendant’s transfer of iconic cigarette brands to another entity, a conveyance for which it received several billion dollars.”
Without any enforcement of the settlement, the motion argues, the state could be out $30 million a year in future payments. Money from the settlement is supposed to cover health care expenses tied to cigarettes.
Groundbreaking Held For New Kingsfield Elementary School
January 21, 2017
A groundbreaking ceremony was held Friday morning for the new Kingsfield Elementary School.
Lord & Son will build the new $25 million Kingsfield Elementary at 900 West Kingsfield Road next to Ransom Middle School. The 135,000 square foot school will serve 800 students.
“Our objective is to give relief to Pine Meadows and Beulah and help the growth that is coming to the mid-Escambia County area,” said Escambia County Superintendent of Schools Malcom Thomas. “Most of that growth is being spurred by Navy Federal. There are housing developments going up in the area and more planned developments in next three to five years. We know some of those homes will be families with children.”
The school is being funded by Local Option Sales Tax dollars and is scheduled to open in the fall of 2018.
Photos by Kim Stefansson for NorthEscambia.com, click to enlarge.
Telemarketer Gets 90 Months Federal Prison For Fraud
January 21, 2017
Gary R. Tomey II, 47, of Pace, was sentenced Friday to 90 months in prison after he was found guilty of conspiracy and mail fraud during a two-week jury trial. He was also ordered to pay a $1,219,129.46 forfeiture money judgment and $6,677 in restitution.
Tomey owned and operated Children and Family Services Inc. (later called Children’s Charitable Services Inc.), which fraudulently solicited charitable donations by calling donors in Alabama, Arkansas, Florida, Indiana, Mississippi, Ohio, and Tennessee. Tomey instructed his employees to falsely tell donors that 100% of their donation went to the charity and that they were volunteers. They were also told to say the charity was located in and only helped the donor’s home state. However, the employees were paid a commission-based hourly wage and worked from a call center in Milton, Florida. Of the more than $1.2 million raised in donations, only 1.5% actually went to a charitable cause. The rest paid wages, business expenses, and Tomey’s own personal expenses.
Tomey’s sentence was enhanced because he committed his fraud through telemarketing and because he victimized more than 10 people over the age of 55.
This case resulted from an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Alicia H. Kim prosecuted the case.
“Fraudsters who exploit the charitable spirit of the American people, and especially those who prey upon the generosity of our seniors, can count on a thorough scrutiny and aggressive prosecution by this office,” said United States Attorney Canova.
“When individuals misuse funds intended for a charitable purpose, it harms all donors and honest non-profit organizations,” said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. “The FBI is committed to investigating and rooting out this type of corruption, whether it happens in a public office or a non-profit organization.”
Escambia 4-H Members Attend Presidential Inauguration
January 21, 2017
Fifty youth — including three from Escambia County — rom the Florida 4-H youth development program attended the presidential inauguration in Washington, D.C., to learn more about U.S. democracy and civic engagement.
“4-H believes in learning by doing, and this is an opportunity for our young people to be really engaged in our political process at the highest level,” said Chris Decubellis, associate state program leader for Florida 4-H youth development.
Representing Escambia County 4-H were Michelle Tinker, Danielle Tinker and Dillon Conti from Barrineau Park 4-H.
Pictured above (L-R) Michelle Tinker and Danielle Tinker from Escambia County 4-H, Steven Lommers flrom Florida 4-H, and Dillon Conti from Barrineau Park 4-H at the presidential inauguration in Washington on Friday. Photo for NorthEscambia.com, click to enlarge.
Escambia Attorney And Accountant Face Prison For Federal Tax Crimes
January 21, 2017
An Escambia County accountant and attorney is facing up to five year in prison for federal tax crimes.
James R.J. Scheltema, 56, of Pensacola, has pled guilty to filing false tax returns and tax evasion.
Between 2010 and 2013, Scheltema, a certified public accountant and attorney, received restricted stock as compensation for his legal and accounting services. He initially reported no compensation on his 2011 and 2012 individual income tax returns, despite receiving substantial compensation from stock issuance and the sale of stock. Scheltema also failed to file timely 2013 individual and corporate income tax returns for two companies he owned and operated.
Scheltema tried to evade notice of stock sales by instructing checks be made payable to his wife and to one of the companies he owned, rather than to himself. After being notified of the IRS investigation, Scheltema filed amended 2011 and 2012 returns and a delinquent 2013 return, which were still false.
The sentencing hearing is scheduled for April 10 at 3 p.m. For each charge of filing false tax returns, Scheltema faces a maximum of three years in prison. For the tax evasion charge, he faces a maximum of five years in prison.
This case resulted from an investigation by the Internal Revenue Service—Criminal Investigation.
Weekend Gardening: Tips for January
January 21, 2017
Here are gardening tips for the month of January from the IFAS Extension Service:
Flowers
- Refrigerated bulbs such as tulip, daffodil and hyacinth should be planted in prepared beds.
- Start seeds of warm season flowers late this month in order to have transplants in March.
- There’s still time to transplant some cool season annuals such as carnations, foxglove, pansies, petunias and snapdragons.
- Re-fertilize cool season flowerbeds, using a liquid or dry form of fertilizer. Be careful not to apply excessive amounts and keep granules away from the base of stems.
- Finish dividing crowded perennials. Don’t wait until spring for this job.
- Plant bare root roses immediately after they are purchased.
Trees and Shrubs
- Plant trees and shrubs. This is an ideal time of year for transplanting larger specimens.
- Plant bare root plants such as deciduous ornamental shrubs and trees.
- Prune dormant shade trees, if needed.
- Stick hardwood cuttings of fig, grape, honeysuckle, Althea, Catalpa, Forsythia and Wisteria.
Fruits and Nuts
- Apply dormant oil spray to peach, plum, nectarine and other deciduous fruit trees. This practice is necessary when growing the stone fruits in locations along the Gulf Coast. Note: This applies to the flowering peaches and cherries since they are susceptible to the same pests as their fruiting cousins.
- Plant bare root deciduous fruit trees
- Prune dormant fruit trees if needed
Vegetable Garden
- Start seeds of warm season vegetables late this month in order to have transplants in March.
- Lime (if needed), and begin preparing vegetable gardens for the spring planting.
- Cool season vegetables that can still be planted in the garden are: beets, broccoli, cabbage, carrots, cauliflower, celery, Chinese cabbage, kale, kohlrabi, leek, mustard, bunching onions, parsley, English peas, Irish potatoes, radishes and turnips.
- Irish potatoes can be started from January through March by planting seed pieces 3 to 4 inches deep in rows. Always purchase certified seed potatoes.
Lawns
- Check soil moisture during winter and water as needed.
Three Tate Aggies Named To Florida All-State Class 6A Football Team
January 21, 2017
Three Tate High School Aggies made the Florida All-State Class 6A football team.
First Team Offense - P – Evan Legassey 6-3 190 Sr.
Second Team Offense – UT – Jake Henry 5-11 180 Sr.
Honorable Mention - DB – Patrick Palmer 5-11 175 So.
Molino Toddler Airlifted After Attack By Two Dogs
January 20, 2017
A Molino toddler was injured when attacked by two dogs Thursday.
The child reportedly entered an open gate into a neighbor’s property on Rumford Road and was attacked by two English bulldogs, according to Joy Tsubooka, Escambia County spokesperson. It was not immediately clear, she said, if the child opened the gate or it had been left open by someone else.
The toddler was airlifted to a Pensacola hospital as a trauma alert.
The two dogs were surrendered by the owner and are now in the custody of Escambia County Animal Control. An investigation into the incident is ongoing. Further details haven’t been released.
NorthEscambia.com file photo.
Family Celebrates Three Generations Of Birthdays
January 20, 2017
Against tremendous odds, a local family had three members celebrating a birthday on Friday
Janis O’Farrell of Walnut Hill, born in 1935, turned 82 Friday. Her son Dennis O’Farrell of Walnut Hill, born in 1959, turned 58. His daughter Candi O’Farrell Lusk of nearby Perdido, AL, was born in 1981 and turned 36 Friday.
What are the odds? 1 in 1 in 133,225, according to published reports.
Photo for NorthEscambia.com, click to enlarge.
Pediatrician To See First Patients In Century On Monday
January 20, 2017
Pediatrician Dr. Marian Stewart will see her first patients in Century on Monday.
After practicing pediatric medicine at the Jay Medical Center for the past 18 years, Stewart has joined Escambia Community Clinics at their new ECC Century Pediatrics location at 501 Church Street.
Stewart and ECC Century Pediatrics will offer treatment of minor illnesses, school and daycare physicals, well child appointments, immunizations, and ongoing care for chronic illnesses such as allergies, asthma and ADHD. Escambia Community Clinics opened a pediatric dental clinic at the 501 Church Street location in Century in mid-October and has provided dental hygiene, exams, and other dental care to 175 area children since launching the clinic.
“We are very excited to have the opportunity to provide both pediatric medical and dental care in one location for the children of Century and surrounding areas. Dr. Stewart has been a valued pediatrician in the communities in which she serves for many years. We know that she will be a great asset to the organization and the community, and as we work together to meet the healthcare needs of the families of our area,” Chandra Smiley, ECC executive director, said.
Same day appointments may be available for the Century pediatric clinic. Scheduled hours are 8 a.m. until 5:30 p.m. Monday through Wednesday; 8 a.m. – 5 p.m. on Thursdays; and 8 a.m. – 12:30 p.m. on Fridays. Families can make an appointment with ECC Century Pediatrics be calling (850) 724-4054.
ECC will open a new pediatric medical and dental clinic in the old Winn Dixie location on Highway 29 in Cantonment in the next few months.