- Arkansas voter ID law struck down by state judge
- FDA proposes ban on e-cigarette sales to minors
- Bad omen? Italian man crushed to death by John Paul II crucifix
- Company stopped from accepting abortion waste
- Girl surprises Michelle Obama with unemployed dad’s resume
- ‘Harry Potter’ religion class seeks to enlighten students on ‘God, sin, and theodicy’
- ‘Optionally piloted’ Black Hawk helicopter clears tests; future missions to go ‘fully unmanned’
- Vice News reporter kidnapped in Ukraine is freed after being beaten, blindfolded
- FCC’s new ‘net neutrality’ proposal sparks outrage among consumer advocates
- Families of ferry’s lost confront South Korean officials
Raid an ill wind for doctor, a donor to Menendez
Democrats faces probe
Prominent Florida eye doctor and political donor Salomon Melgen has never tried to hide his ties to politicians. In fact, he markets them.
“He has treated many well-respected individuals including presidents, governors, politicians, celebrities and actors,” his website notes, adding that he even advises “domestic and foreign politicians” on health issues.
But Dr. Melgen’s West Palm Beach practice faces an uncertain future after his office was raided by FBI this week, drawing renewed scrutiny to reports that first surfaced just before the November election that he supplied Democratic Sen. Bob Menendez of New Jersey with free air travel to the Dominican Republic and prostitutes.
Also participating in the raid were agents of the inspector general’s office of the U.S. Department of Health and Human Services, who investigate fraud in Medicare and Medicaid, among other programs.
While Mr. Menendez, who is divorced, and the surgeon have called the allegations about the prostitutes, first reported by the Daily Caller website in November, false and politically motivated, the New Jersey lawmaker recently paid out more than $50,000 to reimburse Dr. Melgen for the airfare. And a lawyer for Dr. Melgen had no explanation Thursday for the federal raid on the doctor’s ophthalmology office this week.
Mr. Menendez avoided reporters on Capitol Hill Thursday. Senate Majority Leader Harry Reid, Nevada Democrat, called Mr. Menendez, now the chairman of the Senate Foreign Relations Committee, a “friend” and an “outstanding senator,” but added he did have any direct knowledge of the controversy swirling around his colleague.
“Any questions in this regard, direct to him. I don’t know anything about it,” Mr. Reid said, while describing the Daily Caller as “a source that has brought up a lot of non-issues.”
Though a prolific political donor along Florida’s “Treasure Coast” as well as a frequent presence at events with politicians, the Dominican-born Dr. Melgen has had his share of financial problems over the years, records show, even as he and his family have continued giving generously to Mr. Menendez and other elected officials of both parties.
Aside from a $11 million IRS tax lien, he’s been entangled for much of the past decade in a web of federal and state civil lawsuits stemming from the loss of millions of dollars in one of the state’s largest securities fraud cases.
According to court records, Dr. Melgen’s company, SFM Holdings, was one of more than 170 investors who were bilked by the KL Group hedge fund, which resulted in long prison sentences for top executives at the fund.
In one of the lawsuits, SFM sued a bank that advisers used to steal more than $12 million from SFM.
Adding to Dr. Melgen’s financial woes is an IRS lien for $11.1 million for years of unpaid taxes.
He said, however, that Dr. Melgen hasn’t been told why government agents raided his office.
“We are confident that Dr. Melgen has acted appropriately at all times,” he said.
© Copyright 2014 The Washington Times, LLC. Click here for reprint permission.
About the Author
Jim McElhatton is an investigative reporter for The Washington Times. He can be reached at firstname.lastname@example.org.
- Consumer protection board under fire for suspected violations of Hatch act
- Government watchdog mismanages its own funds
- Transparency's end: Sen. Richard Blumenthal fights subpoena of own records in union case
- GSA IG helped recover Depression-era masterworks
- HHS nominee Sylvia Burwell entangled in MetLife lawsuit
Latest Blog Entries
TWT Video Picks
By Tammy Bruce
Only IRS employees could expect rewards for failing to pay their taxes
- Holder cancels appearance in OKC amid angry protests
- In its hunt for Senate, Republican candidates campaign against Harry Reid
- 'Top Gun' for drones: Squadrons of carrier-based killers have Navy's approval
- Obamacare class-action suit opens a new legal front
- Sold out: Ukraine's leadership swapped best military weapons for cash
- Opposition rising to Colorado gun control laws
- Nevada rancher Cliven Bundy hailed as patriot, ripped as lawless deadbeat
- Gun control supporters send message to NRA
- America is an oligarchy, not a democracy or republic, university study finds
- Justice at last: 'Evil woman' outed for grabbing girl's game ball
Top 10 handguns in the U.S.
Celebrity deaths in 2014