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Friday, May 3, 2024

Menendez team hits prosecutors for allegedly outing mental health info in fight over shrink testimony

 Attorneys for indicted Sen. Bob Menendez have blasted prosecutors for allegedly outing his sensitive mental health information as the two sides duke it out over whether a psychiatrist should be able to testify for the embattled Democrat at his bribery trial later this month.

Menendez’s lawyers claimed Thursday in a letter to Manhattan federal judge Sidney Stein that government attorneys “publicly revealed deeply private and sensitive details about Senator Menendez’s personal history and mental health diagnosis.”

The exposure and subsequent media coverage “likely infect[ed] the pool of potential jurors,” the defense team added.

Sen. Bob Menendez blasted prosecutors for allegedly outing sensitive mental health information about him.Gregory P. Mango

On Wednesday, prosecutors filed papers arguing that proposed expert witness Dr. Karen Rosenbaum shouldn’t be allowed to testify at trial about her theory that Menendez hoarded cash and gold bars because of past trauma. The government filing redacted the exact condition that Rosenbaum diagnosed Menendez with.

Rosenbaum — who previously testified for the defense of Manhattan “Killer Nanny” Yoselyn Ortega — would argue that because of Menendez’s family history as refugees from Cuba and because of his dad’s suicide over gambling debts, the Garden State Democrat formed the habit of squirreling away money at home.

Menendez and wife Nadine stowed nearly $500,000 in cash and at least 13 gold bars — all of which, prosecutors say, were bribes given in exchange for political favors — in their Englewood Cliffs home.

What we know about Bob Menendez's indictment

New Jersey Sen. Bob Menendez is facing federal corruption charges related to an alleged years-long scheme.

Menendez allegedly accepted bribes, including gold bars, in exchange for helping three businessmen, Wael Hana, Jose Uribe and Fred Daibes, and the country of Egypt, according to officials.

Menendez and his wife, Nadine, were charged with taking hundreds of thousands in bribes, according to a Manhattan federal indictment.

When the feds raided Menendez’s Englewood Cliffs home in June 2022, they found a 2019 Mercedes C-Class, at least 13 gold bars, and $566,000 in cash “stuffed in envelopes.” Another $70,000 in cash was found in Nadine’s safe deposit box. 

Sen. Bob Menendez (D-NJ) and his wife, Nadine Menendez, were indicted on federal corruption charges.AP

The feds say Menendez also received mortgage payments and paid for a low-show or no-show job and home furnishings.

This isn’t the first time the Democrat is facing federal corruption charges. In 2015, Menendez was accused of taking gifts from Florida eye surgeon Salomon Melgen.

The “gifts” included a Paris vacation, flights on a private jet, and vacations at Melgen’s villa in the Dominican Republic.

Days after the federal indictment was unsealed in September, the New York City-born senator told reporters he kept the cash close at hand due to “the history of my family facing confiscation in Cuba.”

Menendez, 70, has a “fear of scarcity” that prompted “the development of a longstanding coping mechanism of routinely withdrawing and storing cash in his home” because of two traumatic events — his family fleeing Cuba and his father’s death, his lawyers said Rosenbaum would explain.

Dr. Karen Rosenbaum would testify on Menendez’s behalf about how his past trauma caused him to store cash at home.Erik Thomas/NY Post

The defense team said the feds revealing this information — in particular that the elder Menendez killed himself after Bob stopped paying his gambling debts — violated Stein’s directions at an April 29 court conference for the two sides to huddle and try to reach an agreement over evidence redactions before coming back to the judge with any remaining disputes.

While Menendez hadn’t made a final decision whether to call Rosenbaum, “the government’s filing now forces the defense’s hands” as the jury will expect to hear testimony about Menendez’ mental health diagnosis, the letter says.

The New Jersey senator’s attorneys want the judge to force prosecutors to submit a sworn declaration explaining why they published the information in order to see if they did it intentionally and what, if any, sanctions should be brought against them.

The feds raided Menendez’ home finding nearly $500,000 in cash and at least 13 gold bars, which they say he received as bribes.AP

Menendez, his wife, and two others are accused of a scheme in which the senator allegedly used his office to do favors for three businessmen and the countries of Egypt and Qatar in exchange for receiving cash, gold and a Mercedes convertible, among other objects.

One of the businessmen, Jose Uribe, has pleaded guilty and is cooperating with prosecutors.

Menendez is slated to go to trial on May 13, while Nadine’s trial was postponed until July for health reasons.

A spokesperson for the Manhattan US Attorney’s Office declined to comment Friday.

https://nypost.com/2024/05/03/us-news/sen-menendez-lashes-out-at-feds-in-fight-over-shrink-testimony/

'IRS says audits are about to surge — here’s who’s most at risk'

 The Internal Revenue Service said it plans to sharply increase audit rates for big corporations, partnerships and multimillionaires over the next three years after a massive boost in funding by the Biden administration.

The IRS said in a news release Thursday that it’s aiming to nearly triple its audit rate, to 22.6%, on corporations with upwards of $250 million worth of assets in the 2026 tax year.

The figure marks a steep rise from the 8.8% that were audited in 2019.

The IRS said Thursday that businesses with more than $250 million worth of assets and millionaires whose annual income exceeds $10 million will face a much higher risk of being audited in the 2026 tax year.AP

For complex partnerships with assets topping $10 million, the IRS said it intends to increase audit rates nearly 10-fold, to 1% in tax year 2026 — up from 0.1% in 2019.

The IRS also said it is targeting a 50% increase in audit rates for individuals with a total positive annual income exceeding $10 million.

By the 2026 tax year, 16.5% of these wealthy individuals will be subject to an audit — up from 11% in 2019.

At the same time, the IRS assured that it would not increase audit rates on individuals and small businesses earning under $400,000, in keeping with President Biden’s pledge not to increase taxes on that population.

The federal agency was bolstered by $80 billion in new funding directed by the Inflation Reduction Act (IRA), which Biden signed into law in 2022.

When the IRS conducts an audit, individuals or heads of businesses must meet with an auditor, who then reviews that a federal tax return was filed correctly. The official may ask for additional documentation to support the claims like reductions and credits cited in the return.

In an audit, the IRS will ensure that a business or individual’s federal tax return can be supported by additional documentation. Failure to do so can result in civil penalty charges and even jail time.AP

If there’s discrepancies, consequences can include tax evasion charges, which carry a civil fraud penalty of 75% of the understated tax and in the worst cases, the possibility of jail time.

The forthcoming changes were outlined as part of the IRS’s update on its so-called “strategic operating plan” in funding from the Inflation Reduction Act, which vowed to modernize the IRS’s antiquated computer systems, improve taxpayer services and ramp up enforcement to close the “tax gap” between taxes owed and those collected.

Some $7.25 billion of those funds will be spent in fiscal 2024, the IRS said Thursday, which marks an increase from the $3.4 billion spent in fiscal 2023.

The IRS announced the crackdown as part of its update on its $60 billion in funding thus far relating to the 2022 Inflation Reduction Act, which has plans to spend an estimated $7 trillion more over the next decade.AP

The agency’s initial strategic operating plan called for fiscal 2024 spending at $5.8 billion.

“The changes outlined in this report are a stark contrast to the years of under-funding that deteriorated taxpayer service and tax enforcement, frustrating taxpayers, the tax community and IRS employees alike,” IRS Commissioner Danny Werfel said in a statement.

Republicans have railed against the IRS audits as harassment of Americans over their taxes and have successfully chipped away at the funding. A top-line spending deal is set to cut the funding by $20 billion this year.

The IRS said it hired 13,661 people in fiscal 2023 using Inflation Reduction Act funds, including 10,518 taxpayer services staff and 495 enforcement staff. It plans to increase these hires to 16,314 in fiscal 2024, including 4,088 enforcement staff.

The report showed that the hiring would support a total IRS workforce of about 93,000, by 2028, up from 88,411 estimated for fiscal 2024. That would be somewhat short of Werfel’s goal for an IRS workforce of more than 100,000 within the next three years.

https://nypost.com/2024/05/03/business/the-irs-says-audits-are-about-to-surge-heres-whos-most-at-risk/

Tiny Telehealth Stock Sinks 85% as Wild IPO Rally Collapses

 

  • Singapore’s Mobile-Health Network Solutions listed in April
  • The stock had climbed more than 580% in its first 10 days

The Singaporean telehealth provider Mobile-Health Network Solutions, once the top-performing US IPO this year, tumbled below its IPO price for the first time since its April public listing.

The stock plunged 85% Friday to close at $3.39 a share, below the company’s $4 IPO price. The movement triggered multiple volatility halts.

https://www.bloomberg.com/news/articles/2024-05-03/tiny-telehealth-stock-sinks-85-as-wild-ipo-rally-collapses

Amneal Agrees to $270 Million U.S. Opioid Settlement

 Amneal Pharmaceuticals said on Friday it had reached a deal valued at more than $270 million to resolve claims it helped fuel the deadly U.S. opioid epidemic, becoming the latest drug company to settle lawsuits over the addiction crisis brought by states and local governments.

Amneal reached an agreement in principle to pay $92.5 million in cash and provide $180 million worth of naloxone nasal spray, an overdose treatment medication, to resolve lawsuits by U.S. states, local governments and Native American tribes.

The settlement, which is payable over 10 years, would if finalized resolve nearly all of the more than 900 opioid-related lawsuits against Amneal, the company said. It did not admit wrongdoing as part of the nationwide settlement.

https://money.usnews.com/investing/news/articles/2024-05-03/drugmaker-amneal-agrees-to-270-million-u-s-opioid-settlement

Phathom started at Buy by Stifel

 Target $24

https://finviz.com/quote.ashx?t=PHAT&ty=c&ta=1&p=d

Dave & Buster's to allow customers to bet on arcade games

 Dave & Busters is upping the stakes on its arcade games. 

The company is set to allow customers who are at least 18 years old to bet on arcade games in its app.

Using Lucra Sports' real-money gamification software, Dave & Buster’s loyalty members will be able "to digitally compete with each other, earn rewards, and unlock exclusive perks while competing with friends at Dave & Buster’s," the company said in a statement Tuesday.  

Simon Murray, Dave & Buster's senior vice president of entertainment and attractions, said the partnership with Lucra "gives our loyalty members real-time, unrivaled gaming experiences."

Dave & Buster's

A Dave & Buster's location in the Times Square neighborhood of New York, US, on Friday, March 29, 2024.  (Bing Guan/Bloomberg via Getty Images / Getty Images)

A representative for Lucra told NBC that there would be a limit placed on the bets, but didn't disclose what that would be. 

FOX Business reached out to Lucra for comment. 

This comes as legal sports betting hits record revenue for a third year in a row.

According to the American Gaming Association (AGA), U.S. commercial gaming revenue reached an annual record of $66.5 billion in 2023. This surpassed the previous record of $60.5 billion in 2022. 

Dave & Buster's

A Dave & Buster's location in the Times Square neighborhood of New York, on March 29, 2024.  (Bing Guan/Bloomberg via Getty Images / Getty Images)

AGA CEO Bill Miller said in a statement in February that "American adults’ demand for gaming is at an all-time high," whether in person at casinos or online. 

In the first two months of the new year, commercial gaming revenue already totaled $11.46 billion, which is about 6.8% ahead of last year’s record pace.

https://www.foxbusiness.com/lifestyle/dave-busters-allow-customers-bet-on-arcade-games

Watch Biden’s Head of Economic Advisors Try to Explain Government Borrowing

 This amusing video clip is making the rounds on Twitter. It’s worth a look and a laugh.

Jared Bernstein was asked about Modern Monetary Theory (MMT).

MMT says government is different. It owes the money to itself and the debt can be canceled at will. In MMT theory, a benevolent government would spend the money wisely, cancel all the debt or pay interest to itself, and everyone will essentially live happily ever after.

The notion is really amusing. But it was more amusing watching Bernstein try to address a question on it.

https://mishtalk.com/economics/watch-bidens-head-of-economic-advisors-try-to-explain-government-borrowing/