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Unknown Author Called Ignorant, Cowardly After Fliers Question Century Dept. Of Justice Probe, Bond Agency Scam

Century’s attorney has essentially called the unknown author of fliers left around Century ignorant and cowardly. The fliers question if the Century council could be part of a Department of Justice probe due to involvement in a bond agency that is scamming taxpayers.

“Century Florida Subject of Department of Justice Probe?” reads the headline on the flier that was left at the entrances to Century Town Hall, the Century Branch Library and other locations around the town sometime between the afternoon of December 31 and the morning of January 2.

“The ’second signature’ finance agreement Century has with Gulf Breeze brings pennies to Century compared to the millions Gulf Breeze is able to scam from taxpayers,” the text on the flier begins.

The Town of Century and the City of Gulf Breeze have been partners in the Capital Trust Agency since 1999, issuing over $1.5 billion in bonds for public housing projects, a Seminole Indian resort and a healthcare facility in Kansas. In return for providing the second signature on the bonds, the Town of Century has received payments totaling over a half million dollars, according to Matt Dannheisser, Century’s attorney. Dannheisser also serves at the attorney for the City of Gulf Breeze.

“What kind of advise is Century getting? — Is it really a no-brainer or more like Gulf Breeze needs a easy mark to take advantage of? While you guys are pick’in cotton in the north part of the county, the SEC (Securities and Exchange Commission) and DOJ investigates Secret Agreements, Bid Rigging, Kickback Schemes and other conspiracies which involve Black Box Scams. Read about the Staggering Scandal in phantom bonds based upon Charles Lecroy public housing model that Gulf Breeze and Century use to rip off the poor,” the flier continues.

“The flier you furnished has the heading “Century Florida Subject of Department of Justice Probe?” Quite simply, that is false. Although there is currently an ongoing nationwide Department of Justice investigation of various major players in the public finance industry (e.g., underwriters, insurers, financial advisers, derivative providers, etc.), neither the Town of Century nor the City of Gulf Breeze nor Capital Trust Agency are involved in the investigation and there has not been the slightest assertion of wrongdoing on their parts,” Dannheisser wrote in an email sent to town council members.

“Another comment in one of the fliers suggests that Century and Gulf Breeze could be at risk for issuing “phantom bonds.” This remark again reflects the ignorance of the author of the fliers who cowardly fails to identify himself. In connection with every issuance of bonds by Capital Trust Agency I have explained to the Town Council and hereby again reiterate, that there can be no financial exposure to Century or Gulf Breeze (or, for that matter, Capital Trust Agency) should there be a default in any of the bonds,” Dannheisser wrote. “…a suggestion that Century, Gulf Breeze, or CTA could be made to pay delinquent bonds only serves to demonstrate the ignorance of any person making such statements.”

On the subject of “Kickback Schemes”, Dannheisser said in his email that CTA assisted the IRS in their prosecution against financial advisor Chambers, Dunhill and Ruben and AIG Insurance through one of their subsidiaries after such a violation in connection with bonds issued in 1990. But he said that Century, Gulf Breeze and the CTA had no knowledge of the violation and no part in it.

“In connection with that bond issuance, the IRS issued a letter to Capital Trust Agency clearly finding that CTA had acted properly and had not done anything wrong in connection with the bonds and their issuance. Again, suggestions by the unidentified author of the fliers suggesting otherwise are merely petty and malicious attempts to cast aspersions against people who have provided a valuable public service,” Dannheisser wrote.

“Lastly, a comment in the flier also questions the benefits to the Town of Century of participating with Gulf Breeze in the creation of Capital Trust Agency. Not only has the Town’s participation been at no risk to the Town (i.e., each financing plan includes a provision where CTA will indemnify the Town for any damages or expenses that it could incur), the Town’s participation has resulted in it receiving around $500,000.00 in revenues. There are local governmental entities in northwest Florida that are very eager for such revenues and willing to take Century’s place. Yet, Gulf Breeze recognizes the value to Century in participating in the arrangement and that Century is perhaps more in need of the financial assistance than other interested local governmental entities,” the town attorney’s email said.

Dannheisser’s email states that people associated with the CTA would like to learn the identity of the person that distributed the fliers so that civil or even criminal prosecution could be pursued.

Dannheisser’s email was sent late Monday afternoon to Ann Brooks, Century town council president. Brooks had emailed one version of the flier to the attorney early Saturday morning. His email also says that Century Mayor Freddie McCall had faxed the flyer to him. Copies of the email were also sent to council members Henry Hawkins and Nadine McCaw, Mayor McCall, Century clerk and assistant Dorothy Sims and Karen Hughes, CTA Executive Director Ed Gray III, attorney Richard Lott, Gulf Breeze City Manager Edwin “Buz” Eddy and a person with an email address username “slucasmedpa” that NorthEscambia was unable to identify late Monday night.

It appears from Dannheisser’s email that he may not have intended for his comments to be public.

“…as the attorney for the Town of Century, it is not my place to publicly respond,” Dannheisser wrote. “I will not have any public response to the anonymous and ludicrous comments set forth in the fliers.”

NorthEscambia.com obtained a copy of the email shortly after it was sent. The copy of the email we obtained does not indicate that it is privileged attorney-client communications.

But the letter became public record without a doubt Monday night when Brooks read the entire letter verbatim at the Century Town Council’s meeting.

NorthEscambia.com will continue to follow this developing story and bring you the latest details.

Pictured above: One of the fliers distributed around Century Friday that questions if the town could be part of a Department of Justice probe in connection with bonds issued with the City of Gulf Breeze through the Capital Trust Agency. Pictured bottom: Council President Ann Brooks (L) and Sharon Scott read the email from Matt Dannheisser, town attorney. NorthEscambia.com photo, cflick to enlarge.