Wellington Council Member Misses Point on Ethics Issue

By Rhonda Swan

Palm Beach Post Staff Writer

Wellington council member John Greene did not violate Palm Beach County ethics laws when he accepted gifts and donations to his legal defense fund from opponents of a proposed $80 million equestrian 
development, but he used poor judgment.

Neil Hirsch is a businessman and former director of Wellington Equestrian Preservation Alliance, a group formed to lobby against the project. He gave Mr. Greene $2,948 in temporary housing, $3,180 toward a vacation and $450 for a Boys & Girls Club annual gala. An inquiry by the Palm Beach County Commission on Ethics found that because Mr. Hirsch resigned his position with the alliance the day before Mr. Greene moved into his guest house, Mr. Greene did not violate rules that prohibit elected officials from taking gifts from lobbyists.

Mr. Greene sought an advisory opinion from the commission before moving in. The commission advised him that, as long as Mr. Hirsch served on the alliance’s board, he could not accept gifts from him valued higher than $100.

Mr. Greene and Mr. Hirsch have been friends for three decades. Mr. Greene said in an interview that he needed temporary housing for personal reasons. The vacation was one they took together with their families. Mr. Hirsch gave Mr. Greene and his wife seats at a table he purchased for the gala.

“Our families are very close,” Mr. Greene said. “There’s nothing new about this relationship. He’s been very successful in business. He’s a very generous man.”

There is something new: Mr. Greene now is an elected official.

Mr. Greene pointed out that he campaigned against the equestrian village project. Getting money from others opposed to the project — $5,000 from Mr. Hirsch’s business partner Stephen Rappaport and $4,000 from Victoria McCullough — should come as no surprise. Both contributed to the legal defense fund Mr. Greene set up to after election results incorrectly had him losing to an equestrian village supporter.

But Mr. Greene also said he wasn’t opposed to a dressage arena in the equestrian preserve. Yet he voted with Mayor Bob Margolis and councilor Matt Wilhite, both of whom also claimed to favor the arena, to rescind approval of dressage, even though the facility had been constructed. The vote was either political payback or a favor to a benefactor.

It’s not a coincidence that the three votes against dressage came from the council members backed by the Jacobs family, which opposes the equestrian village and spent $500,000 getting them elected. It also is not a coincidence that the only contributors to Mr. Greene’s legal defense fund are other well-heeled opponents of that project.

Mr. Greene said he believes in transparency. Then he should refuse gifts and donations that give the appearance of clouding his vision.

Rhonda Swan

John Greene Accepts Cash & Gifts

Wellington councilman’s acceptance of more than $15,000 in Cash, Gifts not ethics violation

By Mitra Malek, Palm Beach Post Staff Writer

A second Wellington councilman opened a legal defense fund to secure his win during the village’s botched March 2012 elections and got thousands of dollars in gifts from key opponents to the $ 80 million Equestrian Village project.

But Councilman John Greene did not appear to violate any laws in doing so.

According to a Palm Beach County Commission on Ethics memorandum of inquiry and a gift disclosure form Greene filed with the Florida Commission on Ethics:

• Wellington equestrian Victoria McCullough contributed $4,000 to his legal defense fund.

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• Wellington businessman Neil Hirsch gave Greene $2,948 in temporary housing and gifted him with $3,180.39 toward a vacation and $450 for a Boys & Girls Club annual gala..

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• And Palm Beach businessman Steven Rappaport contributed $5,000 to his legal defense fund. Rappaport and Hirsch are both managers of the Black Watch polo team and directors of Sperin Inc., which owns Player’s Club, bordering Equestrian Village.

Greene didn’t violate any ethics laws by accepting McCullough’s donation because he was not an incumbent councilman nor had he yet been sworn into office when he accepted the money on March 28, county ethics investigator Mark Bannon wrote in a Dec. 6 memo to the commission’s director. Also, McCullough did not register as a lobbyist until June.

There are no state, county election or ethics rules governing legal defense funds, but gift laws apply: Elected officials can’t accept gifts greater than $100 from lobbyists or companies or people employing lobbyists.

Hirsch at one time did appear to meet the definition of lobbyist — but he filed a letter with the state showing he resigned as director of the Wellington Equestrian Preservation Alliance, which employs a lobbyist, one day before Greene took his gifts.

Prior to moving into Hirsch’s guest house, Greene asked the county ethics commission for an opinion on staying there.

The commission, in a June 8 letter to Greene, said he should not accept gifts from Hirsch in excess of $100 as long as Hirsch continued to serve on the board of directors of Wellington Equestrian Preservation Alliance.

Hirsch on Aug. 31 resigned as director of the organization, effective June 8, according to Florida secretary of state records.

“This resignation shall be effective as of June 8, 2012,” Hirsch wrote in the resignation letter, which the state time-stamped Aug. 31.

Greene’s disclosure form says the temporary housing lasted from June 9 through Aug. 14.

Two matters related to Hirsch’s property came before the village during Greene’s stay, and, on the advice of Wellington’s attorney, he did not participate in discussions nor vote on either of them.

“Based upon the facts and circumstances presented, there is no indication that Councilman Greene accepted a gift from Mr. Hirsch in exchange for a future vote,” Alan Johnson, then executive director of the county ethics commission, wrote to Wellington’s attorney on Oct. 5.

The ethics commission in the same letter did, however, caution Greene to keep in mind that state law prohibits public officials from using their official positions to corruptly secure or try to secure special privileges for themselves or anyone else.

Based on the county’s lobbyist registration database, Rappaport does not meet the definition of lobbyist.

Greene in early January told The Palm Beach Post that the ethics commission inquired about his legal defense fund.

“I complied and provided all the information that was requested,” he said.

His form is postmarked Dec. 21, for the quarter ending Dec. 31, even though he included gifts from earlier quarters. Gifts are supposed to be reported on the last calendar day for the calendar quarter in which they are received. Greene has filed no other disclosure forms with the state since being elected in March.

“I just wanted to get everything from 2012 on file with the state,” Greene said on Jan. 3.

He did not return subsequent calls for comment.

Mayor Bob Margolis also accepted gifts for a legal defense fund: $4,000 from McCullough and $2,500 from Hirsch.

But, unlike Greene’s case, at the time of McCullough’s donation she was registered as a lobbyist, and at the time of his gift, Hirsch was a director of Wellington Equestrian Preservation Alliance.

Neither the state nor county ethics commission will comment on whether they are investigating Margolis’ contributions.

Margolis Legal Defense Fund Down To $ 70.00

Mitra Malek, Palm Beach Post Staff Writer

A legal defense fund Mayor Bob Margolis opened related to Wellington’s March 2012 elections had only $70 left late last week, he said.

That is the only information Margolis has offered regarding the fund, whose contributions might violate ethics laws.

He declined to comment further and directed all questions to his lawyer.

It’s unclear when Margolis spent the money, or on what.

Mark Herron, a Tallahassee-based lawyer, drafted the documents for Margolis’ legal expense fund trust and represented him during the elections recount.

Herron said he had no idea how much money was left in the fund, which took its first contribution in May and had a $7,600 balance on Aug. 31, according to gift disclosure forms Margolis filed with the Florida Commission on Ethics.

“I have no knowledge of the amounts in the fund,” Herron said. “I don’t administer the fund.”

Herron declined to say who the beneficiary of the trust is or whether he advised Margolis on state or county rules governing gifts to elected officials.

“That’s attorney-client privilege,” Herron said.

He also declined to share any information regarding legal fees related to the election recount.

Margolis deposited a $2,500 check from Player’s Club owner Neil Hirsch in May and a $4,000 check from equestrienne Victoria McCullough in August.

State and county law prohibit public officials from accepting gifts of more than $100 from lobbyists and companies or people employing lobbyists. Those restrictions appear to have applied to Hirsch and McCullough when Margolis accepted their gifts.

Margolis wasn’t the only Wellington elected official to open a legal defense fund during the elections, when a machine glitch assigned the wrong vote totals to six candidates in three races.

Councilman John Greene two weeks ago filed gift disclosure forms noting a legal defense fund contribution of $5,000.

WEP Withdraws From Settlement Discussions

Wellington Equestrian Partners (“WEP”) announced today that the WEP Partnership operating committee voted to withdraw from all settlement discussions with the Village of Wellington regarding ongoing litigation.  WEP is in the process of filing a series of lawsuits against The Village of Wellington.  WEP cited two primary reasons for these actions

First, after full consideration, a Palm Beach County Appellate Court denied the two Jacobs appeals on the equestrian portion of the Equestrian Village project. These denials affirmed both the compatibility and the development approval process for the project.   WEP, over the past months, has provided the Village with a very clear and simple path to resolve the issues amicably and inexpensively.  The proposal was simple. - reverse the revocations, let us operate the equestrian projects that have been built and WEP will drop all current and forego any future lawsuits related to the revocation issues.   This path allowed the newly-elected Village Council members (Margolis, Greene and Wilhite) (the “Jacobs’ Slate”) to satisfy their stated campaign commitments to support the equestrian elements of the project.  WEP believed a settlement would provide great benefits to the Village.   First, it would diffuse an increasingly costly and divisive situation that is growing worse within the Village.  Second, it would insure the continued success of the equestrian community, which benefits all Wellington residents.   Third, it would have significantly reduced legal expenses to the taxpayers of Wellington - all with little or no impact on the Jacobs’ rights to pursue their personal agenda and their litigation.  Inexplicably, instead of making a decision, the Jacobs’ Slate repeatedly rejected WEP’s settlement overtures and chose to continue their stalling tactics which would have the effect of putting the Equestrian Village at risk of once again losing next year’s summer and fall seasons.   Given the recent front page Palm Beach Post exposé (http://tinyurl.com/aawljy6) which discusses potentially unethical activity by Mayor, Bob Margolis, it is now more apparent to WEP why he backed off from settlement discussions.   Ultimately, the Jacobs’ Slate chose to protect a few wealthy landowners and political supporter’s interests over the interests of the citizens and taxpayers of Wellington.   In our opinion, the Jacobs’ interests, who spent over $500,000 getting their slate elected during the recent election (typical Village campaigns spend approximately $20,000 per candidate), are continuing to pursue a “scorched earth” approach to the Wellington equestrian community.  This approach is alienating residents, both equestrian and non-equestrians, as well as the world’s top riders within all disciplines that have been flocking to Wellington.   Unfortunately, the Wellington taxpayers will ultimately pick up the tab for the actions of these particular Village Councilmembers.  WEP does not believe the Jacobs’ Slate, which comprises the majority of the Village Council, will change their position.  Therefore, WEP will not waste further time pursing a settlement while the Village is preoccupied with stalling the settlement process, postponing the inevitable, and in our view, protecting a few political supporter’s (Neil Hirsch, Victoria McCullough and certain members of the Jacob’s family).   This community should be asking the fundamental question.  “Why would certain members of the Village Council refuse such a beneficial and simple offer that would  end extensive Village expenditures on lawyers and Village staff time to support the litigation?.”   Which leads us to the second reason.

WEP believes that the revocations of the lawfully approved development rights were illegal and are part of a concerted effort by the Jacobs’ Slate to take away WEP’s property rights as landowners,-which WEP believes are core constitutional rights.   Recently uncovered information leads WEP to believe that the circumstances, payments, and what appears to WEP to be inducements made days prior to key votes to certain Council members participating in the vote to revoke WEP’s property rights were inappropriate and unlawful.   WEP believes that the Jacobs Slate within the Village Council are pursuing anti-business and unlawful tactics and WEP will not let it stand. 

So we are clear, we believe that Council members Howard Coates and Ann Gerwig have continued to look out for the best interests of Wellington.   Unfortunately it is WEP’s opinion that the Jacobs’ Slate will continue to put the best interests of the certain Jacobs family members, Neil Hirsch, and Victoria McCullough ahead of Village and County residents and taxpayers.   The Village has already spent hundreds of thousands of dollars in legal expenses and staff time fighting on behalf of these interests, and WEP believes those numbers will balloon to well over $1,000,000 during the next twelve months.   Of course, all of this is money that could be spent on Village improvements and meaningful investments in our community.   WEP believes in Wellington’s future and has invested more than $200 million dollars in support of our vision.   WEP will do what it takes to protect this very significant investment and will exhaust all remedies to make sure that those responsible will be held accountable for their actions.   It is our goal to continue to invest in the Wellington, bring together the equestrian and non-equestrian worlds, expand Wellington’s economy and create much needed jobs.   We are confident that justice will prevail.  

Respectfully

The WEP Partnership who are Wellington residents and/or homeowners.

Equestrian Village Developer sues Wellington over Project Rejection

Courtesy Palm Beach Post Staff Writer By Mitra Malek

Wellington — Producers of the Winter Equestrian Festival sued the village this week, claiming that the three newly elected members of the village council voted to kill the $80 million Equestrian Village proposal last year as political payback to a billionaire family who helped get them elected.

The producers, headed by Mark Bellissimo, also filed the lawsuit against several members of that family, the Jacobses, and one of their companies, Solar Sportsystems.

The lawsuit focused mainly on Mayor Bob Margolis and Councilman John Greene, claiming both “have committed ethical violations” by accepting cash and other gifts from Neil Hirsch, who was director of a nonprofit organization tied to the Jacobs family and focused on fighting the Equestrian Village project.

Margolis also breached ethics rules by accepting cash gifts from another Jacobs ally and foe of the project, Victoria McCullough, the lawsuit claims.

The lawsuit does not focus on the third newly elected council member, Matt Willhite, beyond votes he cast to revoke aspects of the Equestrian Village project.

The Jacobses financed a $500,000 media campaign to help get Margolis, Greene and Willhite elected last spring.

“The vote of the majority Council members revoking the Equestrian Village development approvals was made as political payback to the Jacobs family, Neil Hirsch and others, was in exchange for gifts given to seek undue influence, and was in direct contravention to their ethical and legal duties as Council members of Wellington,” says the lawsuit, filed Wednesday in Palm Beach County’s fifteenth judicial circuit.

The three council members “improperly used” status review hearings for the project as a way to “turn back the clock” on the previous council’s approvals and kill the project, the lawsuit says.

According to gift disclosure forms he filed last year, Margolis indeed accepted $6,500 in gifts from Hirsch and McCullough for a legal defense fund he set up to preserve his election win last year.

Greene in December also filed a gift disclosure form, though it included gifts that should have been reported for earlier 2012 quarters. Greene noted $6,128 in temporary housing and vacation from Hirsch for those earlier quarters.

Margolis offered a prepared statement in response to the lawsuit.

“My actions are always based on the best interest of Wellington residents and any suggestion to the contrary is patently false and without merit,” he said. “It is unfortunate that people with significant interest in our village have resorted to casting aspersions in order to advance their own agenda, rather than acting for the public good of the town.”

Greene issued a written statement after reading the lawsuit, saying it was “an egregious claim and a feeble attempt to discredit me and my reputation.”

“I am not going to be intimidated by these or any of the other bullying methods being used by desperate people with a personal agenda,” Greene’s statement said. “My commitment to the equestrian community and to the entire Village of Wellington will no longer be consumed by a single developer whose sole interest is in the commercialization of preserved and protected land.”

Greene also noted that he has complied with all recommendations and requests from Palm Beach County’s Ethics Commission.

Willhite couldn’t be reached for comment.

John Shubin, a Miami lawyer for the Jacobs family and Solar Sportsystems, said filing an ethics complaint with the state or county is the appropriate way for a private company to handle concerns similar to those raised in the lawsuit.

“I don’t see how a circuit court has jurisdiction over ethics complaints,” Shubin said. “I think it’s more for dramatic effect than anything else.”

The 122-page claim is the latest in a string of lawsuits Bellissimo’s team has filed in recent months. Before that the Jacobses filed several lawsuits pertaining to the previous council’s approvals.

Wellington Chamber of Commerce Letter to the Governor