News and Notes

1. Pharmed sentencing: 9 years, top of the guidelines. From the Herald article:

Saying she was concerned about maintaining community values, U.S. District Judge Patricia A. Seitz Wednesday sentenced Carlos and Jorge de Céspedes to nine years in prison.
Despite testimony that they had given millions to charity, the judge decided the brothers -- who built up and then destroyed the Pharmed medical supply company -- should be sentenced at the top of the recommended guidelines of seven to nine years.
She said the brothers had been ''two-faced for too long'' and noted that the fraud against Kendall Regional Medical Center had gone for 14 years. The brothers had also pleaded guilty to a count of tax evasion. They will serve the sentences concurrently.


2. Helio Castroneves: The already great legal team adds superstar Roy Black to represent Helio along with David Garvin. Roy's partner Howard Srebnick represents sister Kati, and Bob Bennett and Lily Ann Sanchez represent the third defendant, an attorney. AUSA Matt Axelrod represents the government.

"These individuals had it all--success, money, and the admiration of their community."

"But they have tarnished their good names and reputations because they wanted even more than they already had, and they wanted it the quick and easy way."

That's Alex Acosta discussing Carlos de Cespedes, 58, and Jorge de Cespedes, 55, co-owners of Pharmed Group Corp.

The brothers were charged by way of two separate informations (read them here and here).The tax case went to Judge Jordan and the health care fraud case went to Judge Altonaga. Usually when individuals are charged by information that means that they have already worked out deals. I wonder why they did two separate cases though....

From the Herald article:

In a Tuesday afternoon court appearance, the brothers pleaded not guilty, and a federal magistrate ordered their release on $250,000 personal surety bonds.
Their attorneys, Alan Ross and Dennis Kainen, dodged questions about how the brothers ultimately would resolve the case. ''Carlos and Jorge, who are both honorable and charitable men, will be resolving these charges with the same commitment and enthusiasm'' they have shown in this community for many years, the attorneys said in a joint statement.

***

Tuesday's charges signify a huge fall for the brothers, who in 2003 earned a profit of $48 million. They often showed up in matching Bentleys at Chispa, their restaurant in Coral Gables, which is now closed. They went to basketball games at the Pharmed Arena on the campus of Florida International University. The Pharmed name has since been removed.

The Sun-Sentinel coverage is here. Credit to the Miami Herald for the photo above.