BROWARD COUNTY
Broward political fundraiser arrested in fraud probe
An unnamed former public official took payments from a prominent Broward political fundraiser who was arrested Wednesday on federal fraud and influence-peddling charges, according to an indictment.
BY JAY WEAVER AND SCOTT HIAASEN
A politically connected Broward County eye doctor who raised more than $2 million to influence Florida legislators was arrested by the FBI Wednesday, charged with funneling $87,000 to a former public official and spending hundreds of thousands more on his children's education and his mistress.
Dr. Alan Mendelsohn, 51, a Hollywood ophthalmologist, is also accused of commiting fraud when he claimed that he had used his money and clout with Charlie Crist and other high-ranking Florida officials, in a bid to thwart investigations into Mutual Benefits Corp., a Fort Lauderdale life insurance company.
Mendelsohn's indictment was the first in a long-running corruption investigation by the Justice Department into Mendelsohn and a major campaign contributor, Joel Steinger, former chief of Mutual Benefits.
Mendelsohn, 51, wearing shackles on his wrists and legs, pleaded not guilty Wednesday and was granted a $100,000 bond in Fort Lauderdale federal court. He left the courthouse with his lawyers, declining to comment.
``These politics-based charges have nothing to do with Dr. Mendelsohn's medical practice,'' his defense lawyer, John Keker of San Francisco, said in a statement.
``The political tale told in these charges will be addressed in court, where we look forward to Dr. Mendelsohn's vindication.''
The indictment charges Mendelsohn with 27 counts of wire and mail fraud and five counts of making false statements to federal agents related to a fraudulent fundraising and lobbying scheme.
Each fraud count carries up to 20 years in prison, and each false-statement charge up to five years.
Records show that Mendelsohn controlled three political action committees: the Florida Society of Ophthalmologists, the Alliance for Florida's Future and an unnamed third group.
According to the indictment, Mendelsohn raised the $2 million from Mutual Benefits, an unidentified medical lab, a parimutuel business and a credit-card counseling firm during the past decade. Numerous medical colleagues of Mendelsohn's also contributed.
An unidentified ``accomplice'' assisted Mendelsohn in setting up the three political action committees and three corporations to move and disguise at least $624,000 in campaign funds paid to himself and others, according to the indictment.
Mendelsohn used some of the donations to pay $60,000 a month to his ``mistress'' from April 2003 to February 2005 for her assistance with the fundraising efforts, the indictment says. It also accused him of using $240,000 in PAC funds to buy and paint a residence for them and to buy a car for her.
The mistress is not identified in the indictment. But according to sources familiar with the case and public records, she is Caybre Cothern Ferrari, 39, who once worked as a scrub tech for Mendelsohn's eye surgery clinic.
At Mendelsohn's suggestion, the mistress established a corporation in March 2004 to divert campaign funds to Mendelsohn, herself, Florida politicians and others, the indictment says. It is illegal to divert campaign funds to personal use.
Public records show Ferrari created Broward-based KAC Consulting Inc. in March 2004.
Also in March 2004, records show that Ferrari transferred the deed to a home in Hollywood to her maiden name, Cothern. Mendelsohn is listed as a witness on the deed, records show.
Cothern could not be reached for comment. No one was home at her current address and her phone number was not available.
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