Article Courtesy of Miami New Times
BY FRANCISCO ALVARADO
Posted November 9, 2003
North Bay Village Commissioner Bob Dugger
must dream of a day when he won't be hounded by criminal investigators,
state regulators, the Internal Revenue Service, irate business clients,
and his own police department. Not only is the State Attorney's Office
investigating Dugger for possible violations of public-corruption laws,
but his private business is being scrutinized by the Florida Department
of Business and Professional Regulation. The IRS is after him for at least
$360,000 in back taxes, and two weeks ago, following publication of a New
Times story detailing Dugger's questionable conduct as a public official
("Thug Meets Pug," October 2), 25 North Bay Village police officers signed
a petition demanding that he resign from the city commission.
Now come new charges,
many in response to "Thug Meets Pug," alleging that Dugger's business operation,
Timberlake Management (also known as the Timberlake Group), has mismanaged
numerous condominium associations
throughout Miami-Dade County. In addition
several people who've had business dealings with Dugger are providing
more evidence that, in his role as a city
commissioner, he
has a conflict of interest arising from
his friendship with
Adolph "Al" Coletta, a real estate investor
who owns several properties in North Bay Village, including a penthouse
atop
the Bayshore Yacht and Tennis Club condominium. |
Bob Dugger's troubles don't end with his political shenanigans |
|
The public-corruption unit of the State Attorney's
Office is investigating whether Dugger, in exchange for financial assistance,
sold his city commission vote to Coletta, who wants to change the zoning
on his penthouse in order to open a nightclub. (Such a quid pro quo is
a third-degree felony.) Prosecutors are also weighing charges against Dugger
for allegedly lying on the financial-disclosure forms required of all elected
officials, a felony under state law.
Florida's Department of Business and Professional
Regulation, in response to complaints from local condominium owners, is
trying to determine whether Dugger violated state law in managing the Highlands
of Kendale and the Peppermill condominiums in Kendall, the Kennedy House
condominium in North Bay Village, and several other condo associations
in Miami-Dade. (Four earlier state investigations were closed owing to
insufficient evidence, but in 2001 Dugger was fined $1000 for withholding
documents from homeowners and "committing acts of gross misconduct.")
A spokeswoman for the Department of Business
and Professional Regulation would not comment on the pending investigation,
but Dugger's condominium-association clients, current and former, are eager
to share their horror stories about the property-manager-turned-politician
and his wife Rachel, who works closely with her husband. "If Dugger had
the best interest of our community in mind, our community would be bright
and clean," says Gabriel Collazo, a 52-year-old condo owner at the Highlands
of Kendale, a 200-unit condominium complex. "Our community has been rundown
for quite a long time."
A recent tour of the complex reveals patches
of dead grass in common areas, mildew streaks marring the exterior walls
of several dozen units, rotting wood fences, and other signs of poor maintenance.
In five years, Collazo charges, Dugger has never provided a financial statement
or a budget for the Highlands: "Every time we request documentation, it
falls on deaf ears. They try to keep us in the dark as much as possible."
According to Collazo, he and three neighbors
have been frustrated in their efforts to win seats on their condo association's
board of directors. He blames the Duggers and their involvement in the
election process. "We don't know what else to do," Collazo says.
One option: They could file a lawsuit against
their own association to rid themselves of Timberlake. That's what other
condominium associations fed up with the Duggers have done. In the case
of Peppermill, a 236-unit condominium building, 27 homeowners last year
successfully sued their board to wrest financial control from Timberlake
Management. As a result of the lawsuit, the homeowners were able to elect
a new board that fired the company. Prior to the lawsuit, Peppermill's
predominantly Hispanic board was heavily influenced by Cuban-born Rachel
Dugger, says condo owner Thomas Shaffer, who led the fight to oust the
company but was not a plaintiff in the lawsuit. "She called the shots,"
he says, "and she drove us into the ground."
Shaffer, who is being sued for libel by
members of Peppermill's previous board, asserts that Rachel Dugger, who
managed day-to-day affairs, routinely harassed residents by threatening
liens and foreclosures. Over two days in June 2002, court records show,
she had the association's attorney, Eric Glazer, file 28 liens against
Peppermill homeowners who purportedly owed money to the association.The
homeowners' lawsuit alleged that Timberlake interfered with board elections,
bounced 23 checks in one month, and allowed the condo association's property
and flood insurance to lapse, among other apparent violations of state
law. "You look at these circumstances," says Shaffer, "and you wonder how
state regulators allow [the Duggers] to stay in business."
Al Coletta's sudden involvement in Peppermill's
financial affairs also disturbed Shaffer. According to several homeowners,
two years ago Peppermill was unable to secure a bank loan for building
repairs, so Bob Dugger and attorney Glazer introduced Coletta to the board
as an "angel investor." Public records indicate that in June 2002 Coletta
loaned the association $250,000 at twelve-percent interest with a two-year
balloon payment -- terms the lawsuit claimed were significantly higher
than prevailing rates.
Although the association, on Bob Dugger's
recommendation, had hired Glazer as its attorney, Glazer unexpectedly revealed
to the board that he had a conflict of interest because he was representing
Coletta in the loan deal. Board members okayed the arrangement anyway.
Later the association had to pay Timberlake a $15,000 broker's fee, while
Glazer pocketed $5000 in attorney fees, say several condo owners. The lawsuit
claimed the board "improperly" committed Peppermill's homeowners to the
loan. Thomas Shaffer puts it this way: "No lawyer in his right mind would
have allowed us to sign that agreement."
In Hialeah the Imperial Terraces condominium
board of directors terminated and then sued Dugger's Timberlake Group this
past August. (The case was recently settled.) According to the lawsuit,
the condo's board fired Timberlake because Dugger did not enforce condo
rules, was late in paying bills, and could not provide an accounting of
how he was spending the association's money. Upon being fired, the association
alleged, Timberlake refused to return documents and disrupted board meetings.
The Duggers have been no less controversial
in their hometown. In January of this year Timberlake Management won a
contract to manage the 230-unit Kennedy House condominium in North Bay
Village. The five-member board fired the association's previous property
manager and attorney and replaced them with Timberlake and Glazer -- this
despite the objections of condo owners who attended the January association
meetings at which the changes took place.
Tim Morris, an owner who videotaped the
meetings, believes the fix was in. He points out that three of the board
members, including current association president Elida Temporini, are friendly
with the Duggers and worked as volunteers for Bob Dugger's city commission
campaign in 2002. (Temporini did not return phone calls seeking comment.)
In the months since then, one of those board members has died and another
was defeated in a recent election. Morris, who won a board seat as vice
president, wants to fire Timberlake because, among other problems, the
Duggers did not produce any financial statements during the first six months
of their employment, despite their promise to do so. "As a result," Morris
says, "we're facing a $5000 state fine."
According to promotional material used
by Dugger, Timberlake administers more than 30 condominium associations
in Miami-Dade County. In most of those arrangements Dugger has retained
Hallandale attorney Eric Glazer to represent the interests of condo owners.
Glazer, who declined comment for this story,
also regularly represents Al Coletta in his many real estate transactions.
It was Glazer who acted on Coletta's behalf when he recently filed a lawsuit
against North Bay Village. Coletta claims the city has diminished the value
of his condominium penthouse by refusing to rezone the property for commercial
use. On several occasions Glazer appeared before Dugger and his colleagues
on the city commission, arguing Coletta's case for a zoning change. That
argument was strongly supported by Dugger, who was unsuccessful in persuading
the rest of the commission to side with Glazer and Coletta.
After citizen complaints that he had a
conflict of interest regarding the Coletta zoning matter, Dugger sought
an ethics ruling from the North Bay Village city attorney and the Miami-Dade
County Commission on Ethics and Public Trust. Both issued opinions in his
favor. Dugger, however, had not revealed to either arbiter his professional
ties to Glazer or his long-time relationship with Coletta, who has financially
bailed out Dugger on several occasions.
In September the Florida House's Select
Committee on Condominium Association Governance held a public hearing at
Miami Coral Park High School to gather information in anticipation of rewriting
the state's outdated condo laws. As committee chairman, State Rep. Julio
Robaina (former mayor of South Miami) got an earful from disgruntled condo
owners, but one thing stood out: Robaina says he heard more complaints
about Bob and Rachel Dugger than any other property managers. "I've labeled
these people the Condominium Mafia," Robaina says. "The stories are horrible.
There is a total lack of accountability by the Duggers and others like
them."
Robaina wants the legislature to enact
a host of reforms, including mandatory criminal and financial background
checks on individuals who apply for or renew their state-mandated licenses
to manage community associations. A financial background check might pose
problems for Bob and Rachel Dugger. Timberlake Group owes the IRS more
than $260,000 in unpaid payroll taxes. This is in addition to roughly $100,000
in personal income taxes Bob Dugger owes the federal government. The Florida
Department of Revenue has also filed 29 tax liens against Timberlake Management
and Timberlake Group for not paying state taxes.
In addition to their tax debts, the Duggers
have a long history of foreclosures against them. In 2001, for example,
they lost a commercial building in this manner. Even their pal Coletta
has foreclosed on personal properties they owned. "If you can't handle
your own finances," says Robaina, "you shouldn't have the fiduciary responsibility
of managing community associations."
Bob and Rachel Dugger declined comment
for this story when they were approached at a recent North Bay Village
civic meeting. Bob Dugger, however, did take the time to chastise New Times:
"You're not interested in pursuing the truth. You're interested in printing
lies on yellow paper."
Thug
Meets Pug, Part 2
North Bay Village cops pull
the trigger |
BY FRANCISCO ALVARADO
It's not every day that an entire municipal
police force publicly castigates an elected official, but that's exactly
what happened last week when 25 officers from the North Bay Village Police
Department signed a petition demanding the resignation of city Commissioner
Bob Dugger. Petition signatory Sgt. Roland Pandolfi says the document began
circulating this past Thursday following publication of a New Times cover
story detailing Dugger's alleged unethical conduct ("Thug Meets Pug," October
2). According to Pandolfi, he and his fellow officers are fed up with political
corruption -- real and perceived -- in their bayside community. "The article
just fueled the fire," the sergeant says. "Clearly, Commissioner Dugger
is unable to carry out the duties of his office."
The State Attorney's Office is investigating
Dugger's relationship with Adolph "Al" Coletta, a real estate investor
who owns several properties in North Bay Village, including a penthouse
condominium atop the Bayshore Yacht and Tennis Club. Among other things,
investigators are trying to determine whether Dugger, in exchange for financial
assistance from Coletta, tried to push through a zoning change that would
have allowed his friend to convert the penthouse to a nightclub.
In addition to faxing the petition to Dugger,
the police officers submitted it to the city clerk's office so it would
become a public record. It reads: "We the undersigned represent the men
and women of the North Bay Village Police Department and with this written
document declare a vote of no confidence in Commissioner Bob Dugger. Your
actions over the last few months are contrary to ethical government. Your
constant attacks against our management team are disruptive to day-to-day
operations and have created a hostile work environment. Your overall goals
are realized and will not be tolerated. We have no confidence in your abilities
as commissioner and call for your immediate resignation for the good of
the City of North Bay Village."
It's no secret that Dugger has been on
a crusade to oust city manager Jim Vardalis and police Chief Irving Heller.
The chief says he wasn't involved with the petition. "They did this on
their own," he reports, noting that all but one of the city's patrol officers
signed the document. Says Vardalis: "There has been a continuing pattern
of criticism by Commissioner Dugger against me and my department heads.
To see this type of solidarity demonstrated in a municipality is highly
unusual."
Dugger declined comment, but his attorney,
William Dean, insists, "My client is not resigning. Bob Dugger is not going
anywhere."
Thug
Meets Pug
Busy entrepreneur Fane Lozman
just wanted to relax, but a North Bay Village big shot named Al Coletta
had other ideas |
BY FRANCISCO ALVARADO
Fane Lozman moved back to South Florida
early this year to rock on a houseboat in the warm waters of Biscayne Bay
and let the stress of his Chicago software business drift in and out with
the tides. Unfortunately for him, he chose to moor his floating home along
one of the docks in Adolph "Al" Coletta's North Bay Village marina, right
behind the Bayshore Yacht and Tennis Club condominium high-rise. Since
February, Lozman says, his life has been one turbulent sea, filled with
lawsuits, threats, the echoes of bygone Mafia days, and an unfolding public-corruption
scandal now being investigated by the State Attorney's Office. And Lozman,
a former Marine aviator who moved back home to enjoy the invigorating salt
air, is the soldier again, at war.
It all started because the 42-year-old
chairman of ScanShift, a Chicago-based software firm, felt sorry for Clement
Mikelis, one of his neighbors. Mikelis, an elderly widower in the houseboat
next door, wanted wheelchair access from his dock to the marina parking
lot. He also desired a designated handicapped parking spot in the lot.
"Why not ask Coletta for a ramp?" thought Lozman. "What's the big deal?"
He offered to accompany Mikelis to ask their landlord, and this is how
he remembers the meeting.
"Fuck you guys!" Coletta yelled. "You're
not touching my fucking dock."
"What do you mean we can't build a ramp?"
Lozman shot back. "You can rip it out when Clement drops dead. What's the
big fucking deal?"
"Do you know who the fuck I am?" Coletta
bellowed. "I can fucking kill you! I can have my boys take care of you!
You could be drifting in the bay one day! What are you gonna do? You're
nobody in this town!"
"Oh yeah? Come on, tough guy! Let's go!
I'm not afraid of you!"
"That's it! I want you off my fucking dock!
I'm fucking evicting you!"
"What the fuck is wrong with you?" a bewildered
Lozman responded. "You need help, man. They have medication for people
like you."
Lozman is a tall, slender fellow with a
deep voice and black curly hair that is receding from his brow. By day,
from three IBM Thinkpads in his houseboat's upstairs bedroom, he runs ScanShift,
a stock-quote display system based on the cockpit instrumentation technology
he used as an aviator in the Marine Corps. The program -- which he began
to envision during the fourteen years he worked as a floor trader in Chicago
-- has made him a rich man who is often quoted as a market analyst in such
papers as USA Today, the Chicago Tribune, and the Wall Street Journal.
He grew up in Miami, attending the Catholic La Salle High School and the
University of Miami, where he earned a math degree at the age of nineteen
and covered his tuition with shrewd stock investments.
Tired of the harsh Chicago winters, he
decided to return to Florida and landed in North Bay Village, a community
known for welcoming houseboat enthusiasts. Coletta's marina is home to
a half-dozen or so. "I came back to enjoy a simple lifestyle," Lozman says,
gesturing out toward the bay from the second-floor balcony of his houseboat.
"I didn't come back to have a politically connected wise guy threaten to
kill me."
His nemesis, Al Coletta, is a 65-year-old
real estate investor who sports a spectacular tan and neatly trimmed mustache.
Though he lives in Hollywood, Coletta owns properties in Miami and North
Bay Village, including the marina and ground-floor retail space at the
Bayshore Yacht and Tennis Club, 7904 West Dr. He also owns several condominium
units in the building, including the 6881-square-foot penthouse with its
panoramic views atop the eleven-story tower. Since 1963 the property has
been zoned both commercial (the south side facing the causeway) and residential
(the north side). For several years Coletta has been trying to obtain full
commercial zoning for the penthouse in order to convert it to a nightclub
-- much to the chagrin of the condo owners. Two times the North Bay Village
City Commission has denied his request. This past May his third attempt
was tabled indefinitely, and he immediately sued the city. (Coletta declined
comment for this story.)
A few days after their showdown over the
access ramp, Lozman says, Coletta served him with an eviction notice. He
moved his houseboat, a teal-toned, two-story structure that resembles a
seaworthy mobile home, to the marina at the nearby Gator Racquet Club,
but kept up his visits with his former neighbor. And that just made Coletta
more hostile. The marina owner would snap photographs of him at night,
Lozman claims, and on one occasion jumped in front of his motorcycle. "He
was all crazy," he recounts, "egging me to run him over. Then he tried
to shove me off my bike." In late March Lozman filed for a restraining
order against Coletta but the request was denied. (Under Florida law, a
victim must present evidence of two or more violent assaults or stalking
incidents.)
In April Coletta ratcheted up the conflict
by trying to legally prohibit Lozman from visiting Clement Mikelis. Coletta
accused him of trespassing on private property and went to court to obtain
an injunction that would bar him from the marina. Not one to be bullied,
Lozman turned around and hired his own high-profile lawyer, former U.S.
Attorney Kendall Coffey (whose famous clients have included Elian Gonzalez's
Miami relatives and presidential candidate Al Gore). "Coletta has a history
of filing lawsuits to scare people," Lozman says. "I have the money to
hire a good attorney, and I wanted to send Coletta a message that he'd
met his match." (Coletta's maneuver fizzled when the Bayshore condominium
association board of directors learned that, without their knowledge or
permission, he had sought the injunction in their name and had even engaged
their attorneys in the effort. Association president Horace Fonseca instructed
the lawyers to drop the case.)
Meanwhile Lozman's buddy Mikelis, a 79-year-old
who wears a back brace and walks with a heavy limp, maintains that Coletta
has harassed him as well. Coletta, he says, tried to evict him from the
marina in early May. In the eviction notice, Coletta claimed that Mikelis
was on a month-to-month rental basis and could be removed at any time without
cause. Mikelis hired Matthew Dietz, a Miami lawyer specializing in discrimination
against the disabled and the elderly, and Dietz has since requested a temporary
injunction to stop the eviction, contending that Coletta is in violation
of fair-housing laws. After serving the eviction notice, Mikelis says,
Coletta confronted him at his doorstep. "He told me if I didn't shut up,
he'd take care of me," says the World War II veteran, who keeps a nickel-plated
.32-caliber pistol within reach. "That's my smallest weapon," he adds,
his pale blue eyes gleaming. He also packs a .357 magnum inside a duffle
bag along with a license to carry a concealed weapon.
The feud might have remained a bitter but
unremarkable legal dispute between an irate marina owner and two outraged
tenants had it not been for that April 4 court hearing at which Lozman
sought, unsuccessfully, to obtain a restraining order against Coletta.
During the hearing he discovered that his former landlord had friends in
high places -- namely, on the North Bay Village City Commission. Lozman
says he happened to look over Coletta's shoulder and saw that he was reading
copies of private correspondence Lozman had written to Commissioner Bob
Dugger about the motorcycle incident and other run-ins between the two
men. And he remembered that Coletta had once boasted -- before their argument
over the access ramp -- that he had "connections" at city hall. "He boasted
that he had friends in the police department and on the commission."
Disgusted at the apparent political collusion,
Lozman went home that day and set out to uncover the connections between
Al Coletta and Bob Dugger. In the months that followed he became an expert
on North Bay Village's organized-crime lore and more recent public corruption
and skullduggery in his own back yard. Along the way he vowed to take down
the man he calls a "wannabe capo." "Coletta is used to intimidating people
around here," Lozman says, "but he fucked with the wrong guy. He and Dugger
are finished in this town."
Incorporated in 1945, North Bay Village comprises three
manmade islands -- Harbor, Treasure, and North Bay -- built on the muck
dredged from the bottom of Biscayne Bay and linked to Miami and Miami Beach
by the 79th Street (Kennedy) Causeway. During the Sixties the bayside town
developed a reputation as the New York and Chicago mobs' private enclave
under the sun. Known informally as Sin City, it was a place where a multitude
of nightspots stayed open till dawn and hookers roamed freely, where Rat
Pack celebrities hung out after their shows at the Collins Avenue hotels
(Dean Martin owned a swanky joint named Dino's), and where, on Halloween
night in 1967, Thomas "The Enforcer" Altamura was gunned down by Anthony
"Big Tony" Esperti at the Place for Steak, a venerable restaurant popular
with mobsters. According to one law-enforcement report from that period,
police had "pinpointed Dade's largest concentration of undesirables in
North Bay Village."
In the Eighties attention shifted to the
village's police department, when the FBI took down three police officers
who were later convicted of selling protection to an agent posing as a
drug smuggler. Two years ago the village hired a new police chief to clean
house -- Irving Heller, a former assistant director of the Miami-Dade County
Police Department.
Growing up in Miami, Lozman remembered
the old stories of North Bay Village's past ties with organized-crime figures.
"Coletta's line 'drifting in the bay' just stuck with me," he says. "Who
says that shit to people except mob guys?" Lozman conducted an Internet
search and turned up articles on the mobsters who once called the island
home, men like Charlie "the Blade" Tourine, the reputed capo for New York's
Genovese crime family who, it was said, earned his nickname for his skill
with a knife. Miami police had questioned Tourine after the 1976 murder
of mobster Johnny Roselli, whose decomposed remains, stuffed inside a 55-gallon
drum, were found drifting in Biscayne Bay. "Gee," Lozman quipped mischievously,
"does Al know what happened to Roselli?"
He also found articles about Al Coletta's
involvement in North Bay Village politics, including a New Times story
prior to the 2000 elections. During that political season Bob Dugger was
one of three candidates running with enthusiastic support from Coletta,
who provided his "slate" with free campaign headquarters in a storefront
he owns at the Bayshore condominium. He also paid for promotional materials,
reproducing the well-known Uncle Sam recruitment poster and adding the
slogan: "Come Join the Team." At the time, Coletta told New Times, he supported
Dugger, who ultimately lost, because he wanted to see a city commission
that would "give something back to the people for a change."
Dugger had also run unsuccessfully in 1998.
It wasn't until this past November that he finally won a seat on the commission.
(North Bay Village holds a municipal election every two years to fill the
mayor's position and four commission seats.) Being political allies was
one thing, Lozman figured, but then he heard that the ties went even deeper:
Coletta had bailed his friend out of some serious financial trouble, a
neighbor told him. So this past April, Lozman headed for the Miami-Dade
County Clerk's Office to sift through property records and tax documents.
There, he says, he discovered some peculiar
real estate transactions involving Coletta and Dugger. According to those
records, Dugger in 1998 conveyed ownership of his waterfront home to his
daughter, Rachel Suarez, who used a $485,000 loan from a local bank to
pay off the existing mortgage. In 2001 Suarez fell behind on her loan payments
and was about to lose the property to foreclosure. Coletta loaned Suarez
$200,000 (secured by the house) to pay off her bank loan. But Suarez fell
behind in payments on the Coletta loan and in 2002 transferred the property
to him. Dugger and his wife, also named Rachel, still live in that single-story
house at 7401 Beach View Dr., which today would sell for $1.2 million,
according to real estate brokers in the area. "Why would Dugger do that,"
Lozman speculates, "unless he was in some sort of financial trouble?"
Lozman also learned that similar serpentine
transactions took place involving several residential properties the Duggers
owned in Miami and Southwest Miami-Dade. Records show that last year the
Duggers transferred ownership of the properties to Coletta after they fell
behind in monthly payments and he threatened them with foreclosure.
Dugger initially agreed to be interviewed
for this story but then changed his mind, referring all questions to his
attorney, William Dean. "Bob Dugger," says Dean, "is one of the few good
politicians in this town. He tries to do everything appropriately and by
the book." According to Dean, his client fell behind on mortgage payments
on his residence in North Bay Village and turned to Coletta. "The Duggers
were on the verge of foreclosure and their friend, Mr. Coletta, stepped
in to help out," he says. Dean will not describe the Duggers as Coletta's
tenants, but that is the term Dugger himself used in a recent letter to
the Miami-Dade County Commission on Ethics and Public Trust. Dean would
not comment on the other residential properties involving Coletta and the
Duggers.
Deep in his sleuthing, Lozman found court
records detailing Bob Dugger's financial woes. The IRS claims he owes the
federal government roughly $100,000 in taxes, dating back to 1993. In 1998
the IRS filed tax liens against all of Dugger's properties in an effort
to recover the money. In addition, since 1995 the state has filed 29 tax
liens against Dugger's property management company, Timberlake Management,
the latest issued just nine months ago. (Dave Bruns, spokesman for the
Florida Department of Revenue, says his agency routinely files liens against
individuals who fail to pay various state taxes. But 29 liens against one
company, he notes, is unprecedented in his eight years on the job.)
Moreover, Lozman says, Dugger failed to
list those liens in financial disclosure forms filed during his 1998, 2000,
and 2002 campaigns, a felony under state law. "I'm sure my fellow residents
would want to know their commissioner is a tax deadbeat," Lozman snipes.
Attorney Dean says his client is working with the IRS and state tax officials
to settle his debts. "As far as I know, Mr. Dugger has disclosed all the
information he is required to under state law," he offers in reference
to the commissioner's disclosure forms.
Lozman uncovered another financial connection.
In 2001 the Bayshore condominium association hired Timberlake Management
as the building's maintenance company, at $1760 a month, a contract that
continues today. "I gave Dugger the job based on Coletta's referral," says
association president Horace Fonseca. A referral from Coletta would carry
some weight with Fonseca -- property records show that Coletta holds the
mortgage on his condominium. Coletta's influence doesn't stop there. In
2001 he loaned the condo association $200,000 for needed maintenance and
overdue bills.
With such personal and professional connections
to Coletta, Lozman argues, Dugger should not have introduced the proposed
ordinance back in April that would have rezoned Coletta's penthouse for
commercial use. Considering that Dugger lives in a house now owned by Coletta,
and that his company landed a contract through his friend's intervention,
the conflict of interest should be obvious. "If he doesn't do what Coletta
tells him to do," Lozman says, "Dugger may find himself without a job and
without a home."
By springtime, the former Marine's detective
work had escalated to a battle cry on the Internet. He launched a Website,
www.dumpdugger.com, to encourage people to send him information regarding
allegedly unethical or illegal conduct involving Dugger, his wife, and
Coletta. "It's been great for obtaining information I wouldn't have gotten
otherwise," he says. Among the submissions, most of them anonymous, was
what purported to be a copy of Coletta's criminal record. According to
the document, which law enforcement sources identify as a report from the
FBI's National Crime Information Center, Coletta has been arrested several
times over the years -- for allegedly trying to bribe a Miami police officer,
assault and battery, and operating a brothel. (Attempts to independently
confirm the arrest records were unsuccessful. Although Coletta's name appears
on local criminal court databases, no additional information is available,
including disposition of the cases. One possible explanation is that all
records have been sealed. Ed Griffith, spokesman for the Miami-Dade State
Attorney's Office, was unable to verify whether that is the case.)
Lozman also received an e-mail informing
him of a State Attorney's investigation in 2000 which found that Dugger,
two other commission candidates, and a mayoral candidate in the 1998 election
had received improper in-kind support from the nation's biggest radio conglomerate,
Clear Channel Communications. According to a memo summarizing the investigation,
a company subsidiary, Clear Results Marketing, provided the candidates
with free advertising worth more than the $500 limit on individual contributions
to local candidates, expenditures the candidates also failed to report.
The investigators found the candidates were unaware the contributions exceeded
the state limit and therefore had committed no wrongdoing. Clear Results,
however, was forced to pay a $3000 fine.
By now Lozman believed he had enough information
to go to the authorities. Toward the end of April he met with Joe Centorino,
head of the Miami-Dade State Attorney's public corruption unit. Recalls
Lozman: "He was ecstatic with the information I brought forward. He told
me with what I gave him, he had enough to indict Dugger. He said they could
conclude their investigation in three months." (Centorino would not comment
on the progress of his investigation.)
Buoyed by the possibility of seeing Dugger
and Coletta in handcuffs, Lozman began to appear at city commission meetings
to inflict collateral damage. At the May 13 commission meeting he publicly
accused Dugger of not disclosing to fellow commissioners the existence
of a 1979 memo from the city clerk's office, which addressed the refusal
to issue a building permit to convert the penthouse apartment to a nightclub.
The document had not been brought up during previous commission discussions,
but Lozman contended Dugger must have known about it because he had access
to the building's files as the property manager. "Dugger has tried to backdoor
this zoning change for his soul mate Coletta, a matter that should get
him fired as manager of the Bayshore property and censured by his fellow
commissioners for trying to pull a fast one on them," Lozman boomed from
the speaker's podium in the commission chambers.
"Do I really have to sit here," an angry
Dugger pleaded to Mayor Alan Dorne, "and listen to these personal attacks?"
"Excuse me, I'm talking here," Lozman fired
back.
The commission voted that night to table
indefinitely Coletta's zoning request, despite threats by his attorney
that Coletta was ready to sue. The next day Coletta did just that, bringing
suit against the city under the state Bert J. Harris Act, which allows
property owners who claim to be excessively burdened by zoning laws to
sue municipalities over lost profits.
At the next public meeting, June 10, during
a presentation before the commission, Lozman encouraged audience members
in attendance to "keep the dirt" coming to his Website. "Dumpdugger.com
has produced a wealth of information," he gleefully told them. "If Coletta
hasn't killed me by the next commission meeting, I'll share some of that
information with you at that time."
Meanwhile another North Bay Village commissioner
was feeling some heat. Just nine days after Lozman's keep-the-dirt-coming
rant, Commissioner David Murray Fleischer, who had received campaign support
from Dugger and Coletta, was arrested and charged with bribery and "corruption
by threat of a public servant," both third-degree felonies. Fleischer,
a first-time candidate who was elected in November along with Dugger, was
accused by the State Attorney's Office of demanding special treatment from
city employees based on his position as an elected official. Prior to the
arrest, Lozman says, Fleischer had warned him, in what he took as a threat,
to stay away from Coletta. "He told me Coletta was a dangerous guy and
that I'd better watch myself," Lozman recalls. Fleischer, who has since
been suspended from office by Gov. Jeb Bush, did not return phone calls
seeking comment. The case against him is pending.
At the July 31 commission meeting, Lozman
was again present, distributing to commissioners and audience members copies
of Coletta's alleged FBI rap sheet with a cover page titled "Portrait of
a Pimp." Below the title, a sentence read: "Why is Dugger pushing the Pimp's
penthouse nightclub agenda?"
"What a great evening this is tonight,"
Lozman began as he stepped up to the public podium. "One commissioner charged
with felony corruption and bribery, arrested and relieved of his duty --
one to go. Dugger, you will be joining your comrade-in-corruption, Fleischer,
in the near future."
"Mr. Lozman," Dugger interrupted icily,
"it's time for you to leave." He motioned for two police officers to remove
Lozman from the meeting. As he was hauled out, Lozman launched a parting
salvo: "Dugger's and his soul mate Al Coletta's days of intimidation and
fear on the politics and citizens of this city are over!"
Following the expulsion, Commissioner Dugger
took a moment to address the crowd. He would recuse himself from future
discussion or action on Coletta's zoning request or his lawsuit against
the city, he announced, and he explained that he'd conferred with the city
attorney shortly after the November election and was told he had no conflicts
of interest. He'd also sought counsel, via a July letter, from the Miami-Dade
County ethics commission, which concurred with the city attorney but with
the caveat that a perception of conflict existed. "For this reason I am
going to abstain from voting on this issue," he declared in a solemn voice.
"Please stop harassing me, my wife, my children, and my friends."
But Dugger didn't tell the ethics commission
the whole story. In fact he failed to explain in his letter to Robert Meyers,
the commission's executive director, that Coletta had actually bailed out
the Duggers when their investment properties and residence were about to
fall into foreclosure. He also failed to mention that his friend helped
arrange for his company to manage the Bayshore condominium. "Our opinion
that Mr. Dugger didn't have a conflict was based on the information he
provided," Meyers says now, declining to comment on whether the commission
would have ruled differently had it known of Dugger's true relationship
with Coletta.
Lozman is lying on his bed, ruminating on the past eight
months as he gazes out at the pink-and-blue sunset over Biscayne Bay. He
still can't believe the drama he's been through since his blowup with Coletta
back in February. "He's destroyed his little empire over a stupid handicap
access ramp and a parking spot," Lozman says incredulously. "It just doesn't
make any sense."
The battle itself doesn't make sense to
Lozman's friends here and in Chicago, either. "They've asked me why I'm
playing Russian roulette with this guy," he relates. "They've told me to
get the fuck out of here. But Marines don't retreat in the face of adversity."
Nevertheless he has taken Coletta's alleged
threats seriously, and he expresses frustration that neither Coletta nor
Dugger has been criminally charged since his first meeting with corruption
prosecutor Joe Centorino in April. "Maybe the State Attorney should hire
another public-corruption prosecutor to pick up the slack when Centorino's
not there," he jokes, referring to the weeks Centorino was away on vacation
this summer. "How do you allow a guy you're building a case against to
stay in office?"
Lozman admits he went to the State Attorney
as an insurance policy on his life. "In case I wind up dead one day, drifting
in the bay," he says, "I want it on the record that Coletta is the first
guy to look for." |