May 3, 2012 - The Federal Crimes Watch Daily

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Federal Criminal Defense Lawyers www.McNabbAssociates.comThursday, May 3, 2012

Wireless Carriers Who Aid Police Are Askedfor DataMcNabbAssociates, P.C. (Federal Criminal DefenseLawyers)

Submitted at 1:52 PM May 3, 2012

The New York Times on May 2, 2012released the following:By ERIC LICHTBLAUWASHINGTON A leading House

Democrat is demanding information fromthe countrys biggest cellphone companies

about their role in helping local policedepartments conduct surveillance andtracking of suspects and others in criminalinvestigations.Representative Edward J. Markey of

Massachusetts, the co-chairman of theCongressional Bipartisan Privacy Caucus,said in a letter sent Wednesday to eightmajor wireless carriers that he wasdeeply concerned that routine trackingof cellphone use by law enforcementofficials in many departments mayviolate the privacy rights of Americans.In his letter, Mr. Markey sought data

from the cellphone carriers on the numberof requests for help they have receivedfrom law enforcement officials in celltracking and surveillance operations, theirpolicies on whether they require theauthorities to secure court warrants, theuse of cellphone surveillance innonemergencies, the fees they charge thepolice and other information.His letter was prompted by an April 1

article in The New York Times on theroutine use of cellphone surveillance bylocal police departments, even in

nonemergency situations. Mr. Markeysoffice provided a copy of his letter to TheTimes.The move by Mr. Markey puts the

cellphone companies in the middle of aprotracted public debate over the balancebetween civil liberties safeguards and theauthorities use of surveillancetechnology. The issue has receivedrenewed public attention recently as aresult of a Supreme Court ruling inJanuary finding that police use of a GPS

device on a drug suspects car without awarrant violated his Fourth Amendmentrights.CTIA, the wireless industry trade

association, said it had no comment on theCongressional request.Ed McFadden, a spokesman for Verizon,

one of the companies from which Mr.Markey is seeking information, said in a

statement: We will review the letter andbe responsive. In responding to lawenforcement requests, Verizon Wirelessfollows the law.An AT&T spokesman, Michael Balmoris,

said, We received the congressmansletter and will respond accordingly.Representative Joe L. Barton, the Texas

Republican who is co-chairman of theHouse privacy caucus with Mr. Markey,did not respond to requests for comment.The privacy caucus has no formal

subpoena power to gather records. But anofficial with the caucus who spoke on

condition of anonymity in discussinginternal matters said that privatecompanies had normally complied withrequests from the caucus and that Mr.Markey was confident that the cellcompanies would give him theinformation he was seeking.Politicians and lawyers on both sides of

the surveillance issue have debated wherethe line should be drawn between givingthe authorities the technological tools theyneed and protecting the privacy of thepublic. Mr. Markey is seeking information

not only on the legal and policyimplications of cellphone surveillance, butalso on the financial relationship betweenpolice departments and phone carriers an area that has received little publicattention.The Times article, based on 5,500 pages

of documents that the American CivilLiberties Union received from 205 policedepartments, found that cellphone carriersoften charged local police departmentsanywhere from a few hundred dollars for

using a cellphone to track a suspectslocation, up to $2,200 for a full-scalewiretap of a suspect.The documents showed that police

departments routinely used cellphonetracking for both emergency andnonemergency situations, sometimeswithout getting court warrants. Withpolice policies varying widely, gray areas

in the law have given departments widediscretion in determining what types ofsituations justify phone surveillance andwhether court orders are needed. Somedepartments have even bought their ownphone surveillance equipment andbypassed the carriers.Douglas McNabb McNabb Associates,

P.C.sFederal Criminal Defense Attorneys

Videos:Federal Crimes Be Careful

Federal Crimes Be ProactiveFederal Crimes Federal IndictmentTo find additional federal criminal news,

please read Federal Criminal DefenseDaily.Douglas McNabb and other members of

the U.S. law firm practice and write and/or report extensively on matters involvingFederal Criminal Defense, INTERPOLRed Notice Removal, InternationalExtradition Defense, OFAC SDN

Sanctions Removal, InternationalCriminal Court Defense, and US Seizureof Non-Resident, Foreign-Owned Assets.Because we have experience dealing withINTERPOL, our firm understands theinter-relationship that INTERPOLs RedNotice brings to this equation.The author of this blog is Douglas C.

McNabb. Please feel free to contact himdirectly [email protected] or at oneof the offices listed above.Acting Assistant Attorney General for the Office of Justice Programs Mary Lou

Leary Speaks at Arresting Demand: a National Colloquium(USDOJ: Justice News)


"Sex trafficking is a big money-maker forcriminals and a scourge to society.Traffickers callously seek to furnish their

market with women, girls, and boys whohave been cast out by society and whoseoptions are few. In many cases, they areyoung people not even teenagers whoare looking for the home theyve never

had. What they find, instead, are betrayal,cruelty, and abuse. And sadly, too oftenour systems of support and justice haveoffered no quarter," said Acting AssistantAttorney General Leary.
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2 Federal Criminal Defense LawyersFifty-Nine South Florida Residents Charged asPart of Nationwide Coordinated Takedown byMedicare Fraud Strike Force OperationsMcNabbAssociates, P.C. (Federal Criminal DefenseLawyers)

Submitted at 10:01 AM May 3, 2012

The Federal Bureau of Investigation(FBI) on May 2, 2012 released thefollowing: 107 Individuals Charged Nationally forSubmitting Approximately $452 Millionin Fraudulent Billing; South FloridaResponsible for more than $137 Million inFalse BillingsWifredo A. Ferrer, United States

Attorney for the Southern District ofFlorida; John V. Gillies, Special Agent inCharge, Federal Bureau of Investigation(FBI), Miami Field Office; Christopher B.Dennis, Special Agent in Charge, U.S.Department of Health and HumanServices, Office of Inspector General(HHS-OIG); and Henry Gutierrez, PostalInspector in Charge, U.S. PostalInspection Service, Miami Division,announced that 59 South Florida residentswere charged for their allegedparticipation in various schemes todefraud Medicare out of more than $137million. The charges in South Florida are

part of a nationwide takedown byMedicare Fraud Strike Force operations inseven cities that resulted in chargesagainst 107 individuals, including doctors,nurses and other licensed professionals,for their alleged participation in Medicarefraud schemes involving approximately$452 million in false billing. Thiscoordinated takedown involved thehighest amount of false Medicare billingsin a single takedown in strike forcehistory.The joint Department of Justice and HHS

Medicare Fraud Strike Force is a multi-agency team of federal, state, and localinvestigators designed to combatMedicare fraud. Approximately 400 lawenforcement agents from the FBI, HHS-OIG, multiple Medicaid Fraud ControlUnits, and other state and local lawenforcement agencies participated in thenational takedown.U.S. Attorney Wifredo A. Ferrer stated,

The Medicare program is a valuable andlimited trust fund to provide much neededservices for the poor, the elderly and thesick. Among the dozens of fraudsters

charged in South Florida in this operationare clinic owners, nurses, therapists,patient recruiters, pharmacy owners,accountants, former social workers, andeven beneficiaries, all of whom stoleprecious health care dollars through avariety of schemes. These get rich quick

schemes at the expense of the mostvulnerable in our society are unacceptable.We will continue to fight health care fraudon all fronts: we will prosecute each linkin the fraud chain and each evolving fraudscheme.The results we are announcing today areat the heart of an administration-widecommitment to protecting Americantaxpayers from health care fraud, whichcan drive up costs and threaten thestrength and integrity of our health caresystem, said Attorney General EricHolder. We are determined to bring to

justice those who violate our laws anddefraud the Medicare program forpersonal gain. As todays takedownreflects, our ongoing fight against healthcare fraud has never been morecoordinated and effective.More than half of those charged in arecord setting health care fraud takedowntoday were from the Miami area. Thelocal fraud totaled more than $137million. Sadly, in Miami, multi-million-dollar health care fraud cases are nolonger shocking in their magnitude or

frequency, said John V. Gillies, SpecialAgent in Charge of the FBIs MiamiOffice. Heres my message clear andsimple: you can run, but as evidenced bytodays nationwide takedown, you canthide.Medicare fraud diverts preciousresources from those who are eligible andneed it most, said Christopher B. Dennis,Special Agent in Charge of the U.S.Department of Health and HumanServices, Office of Inspector Generalsregion covering Florida. Todays actionshould send a strong message that we willcontinue to track the evidence to ensurethat those involved are held accountable.U.S. Postal Inspector in Charge Henry

Gutierrez stated, Medicare fraud is anassault on resources for our most needyand vulnerable citizens. This joint effortby the South Florida law enforcementcommunity demonstrates that those whoengage in these illegal schemes will beprosecuted to the full extent of the law.The South Florida defendants are accused

of various health care fraud-relatedcrimes, including conspiracy to commit

health care fraud, health care fraud,violations of the anti-kickback statutesand money laundering. The charges arebased on a variety of alleged fraudschemes involving various medicaltreatments and services such as homehealth care, mental health services, and

physical and occupational therapy.According to court documents, thedefendants allegedly participated inschemes to submit claims to Medicare fortreatments that were medicallyunnecessary and oftentimes neverprovided. In many cases, court documentsallege that patient recruiters, Medicarebeneficiaries and other co-conspiratorswere paid cash kickbacks in return forsupplying beneficiary information toproviders, so that the providers couldsubmit fraudulent billing to Medicare forservices that were medically unnecessaryor never provided.Specifically, the South Florida cases

announced as part of the nationwideMedicare Fraud Strike Force takedowninclude:U.S. v. Odalys Fernandez, Kelvin Soto,

Yumidia Naranjo, Jose Guerra, YanurisLima, and Servando Raya, Case No. 12-20230-CR-UngaroIn this six-defendant case, two registered

nurses employed by Ideal Home Health(Odalys Fernandez and Kelvin Soto) arecharged with conspiracy to commit health

care fraud for purportedly providingservices, such as skilled nursing andphysical therapy, to homeboundbeneficiaries. In fact, however, theservices were either medicallyunnecessary or were never provided. Aspart of the scheme, the defendantsfalsified medical paperwork to make itappear as if they had provided theservices. Four other defendants (YumidiaNaranjo, Jose Guerra, Yanuris Lima, andServando Raya) are alleged to be patientrecruiters who paid Medicare beneficiariesso they would serve as patients at IdealHome Health. Ideal, in turn, submittedmore than $40 million in false billings toMedicare. This case is being prosecutedby Assistant U.S. Attorney DanielBernstein.U.S. v. Eulises Escalona, Case No. 12-

20293-CR-LenardThis indictment charges Eulises Escalona

with one count of conspiracy to commithealth care fraud, one count of conspiracyto defraud the United States and to receiveand pay health care kickbacks, and fivecounts of payment of health care

kickbacks stemming from a $42 millionhome health care fraud scheme.According to the indictment, Escalonaowned and operated Willsand HomeHealth, Inc. (Willsand), a home health

Federal Criminal

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FIFTY-NINEcontinued from page 2

agency that purportedly provided homehealth and physical therapy services toeligible Medicare beneficiaries. In fact,however, from January 2006 throughNovember 2009, Escalona and others paidkickbacks to Medicare beneficiaries to

induce them to become patients atWillsand regardless of medical need andto falsely attest that they had received thepurported services. In addition, Escalonaand others paid kickbacks to patientrecruiters and to doctors who signedfraudulent prescriptions and plans of care(POCs) for unnecessary home healthservices for patients at Willsand. Toexecute the scheme, Escalona and othersfalsified patient files and POCs to make itappear as if the patients had qualified forand actually received home health

services. In this way, Willsand allegedlysubmitted approximately $42 million infalse claims to Medicare for services itclaimed to have provided toapproximately 622 beneficiaries. Thiscase is being prosecuted by Trial AttorneyJoseph S. Beemsterboer of the CriminalDivisions Fraud Section.U.S. v. Rodolfo Nieto, Jr., Case No. 12-

20290-CR-AltonagaThis indictment charges Rodolfo Nieto,

Jr., owner and operator of Ronat HomeHealth Care, Inc. (Ronat), with one countof conspiracy to defraud the United States

and to receive and pay health carekickbacks and three counts of receipt ofkickbacks for his participation in a $60million home health care fraud scheme.According to the indictment, from January2006 through November 2009, Nietoaccepted kickbacks in return for recruitingMedicare beneficiaries for placement atNany Home Health, Inc. (Nany). Nietoallegedly caused Nany to submit claims toMedicare for home health services,including insulin injections and physicaltherapy, purportedly provided through

Ronat. According to the indictment, Nanysubmitted approximately $60 million infalse claims to the Medicare program forservices that it purportedly provided toapproximately 1474 beneficiaries. Thiscase is being prosecuted by Trial AttorneyJoseph S. Beemsterboer of the CriminalDivisions Fraud Section.U.S. v. Maggie Leon, Yuderkis Pena

Garcia and Eduardo Vilau, Case No. 12-20274-CR-SeitzIn this case, defendants Maggie Leon,

Yuderkis Pena Garcia, and Eduardo Vilau,owners of Leon Medical and Leah

Medical, were charged with conspiracy tocommit health care fraud and health carefraud for submitting false claims to privateinsurance companies that were MedicareAdvantage contractors under Part C of theMedicare program. As alleged in the

indictment, the defendants submittedapproximately $1,826,000 in false claimsfor expensive cancer and HIV injectionsthat were not medically necessary andwere not actually provided to theMedicare beneficiaries. In addition, the

indictment alleges that the defendantsconspired to pay kickbacks to Medicarebeneficiaries so that they would serve aspatients at Leah and Leon. This case isbeing prosecuted by Assistant U.S.Attorney Christopher J. Clark.U.S. v. Ricardo Martinez, Case No. 12-

20316-CR-MartinezThis indictment charges defendant

Ricardo Martinez with health care fraudand paying kickbacks to patients. Theindictment alleges that the defendant paidkickbacks and bribes to beneficiaries so

that they would serve as patients at RimaMedical. The indictment further allegesthat Martinez, through Rima Medical,submitted approximately $1,706,701 infalse claims for expensive cancer and HIVinjections to private insurance companiesthat were Medicare Advantage contractorsunder Part C of the Medicare program.This case is being prosecuted by AssistantU.S. Attorney Christopher J. Clark.U.S. v. Yaquelin Colls, Pedro Colls, and

Jesus Fernandez, Case No. 12-20315-CR-SeitzThis indictment charges defendants

Yaquelin Colls, Pedro Colls, and JesusFernandez with conspiracy to commithealth care fraud, substantive health carefraud, conspiracy to pay health carekickbacks, and substantive charges ofpaying kickbacks. More specifically, theindictment alleges that the defendantsowned and operated Ma Medical andTherapy Services, Inc. (Ma Medical), andcaused the submission of $972,068 infalse medical claims for expensive cancerand HIV injections to a private insurancecompany that was a Medicare Advantage

provider under Part C of the Medicareprogram. In a similar scheme, thedefendants submitted $55,642 in falseclaims to another private insurancecompany under Part C of the Medicareprogram through a second clinic, HealthyTouch Rehab Center Inc. (HealthyTouch), which they also owned andoperated at the same address as MaMedical. The indictment further allegesthat the defendants conspired to paykickbacks and bribes to beneficiaries sothat they would serve as patients at MaMedical and Healthy Touch. This case is

being prosecuted by Assistant U.S.Attorney Christopher J. Clark.U.S. v. Roberto L. Valdes Gonzalez,

Francisca Gema Valdez, Gilberto Faure,and Alberto Sotolongo, Case No. 12-20275-CR-Moore

In this case, defendants Jose L. ValdesGonzalez, a/k/a Roberto Gonzalez,Alberto Sotolongo, a/k/a Ruben,Gilberto Faure, and Francisca GemaValdes were charged with conspiracy tocommit health care fraud and substantive

counts of health care fraud in connectionwith the operation of Ilva Pharmacy, Inc.More specifically, the indictment allegesthat between 2009 and 2011, thedefendants caused Ilva Pharmacy tosubmit approximately $1.3 million in falseclaims for prescription drugs that were notprovided to Medicare and privateinsurance companies that were MedicareAdvantage contractors under Part D of theMedicare program. The indictmentadditionally charges Gonzalez andSotolongo with offering and paying

kickbacks to Medicare beneficiaries toinduce them to serve as patients at IlvaPharmacy. This case is being prosecutedby Assistant U.S. Attorney John Couriel.U.S. v. Alina De Armas, Case No. 12-

20282-CR-ZlochIn this case, defendant Alina De Armas is

charged with health care fraud and withpaying kickbacks to patients. Theinformation alleges that De Armas offeredand paid kickbacks to Medicarebeneficiaries to induce them to serve aspatients at Ultratech Medical Supplies,Inc., d/b/a Guines Pharmacy. In this way,

from 2007 through 2011, De Armascaused the submission through GuinesPharmacy of approximately $3.6 millionin false claims for prescription drugs toMedicare and private insurance companiesthat were Medicare Advantage contractorsunder Part D of the Medicare program.This case is being prosecuted by AssistantU.S. Attorney John Couriel.U.S. v. Isaura Bou-Melendez and Gricel

Font, Case No. 12-20113-CR-MGCIn this case, Isaura Bou-Melendez and

Gricel Font are charged with conspiracy to

commit health care fraud. Bou and Font,licensed therapists, owned and operated acomprehensive outpatient rehabilitationfacility, Font & Bou Rehab Associates,Inc. The information alleges that fromJanuary 2006 through February 2010,Font and Bou allegedly submittedapproximately $6.9 million in false claimsto Medicare for physical and occupationaltherapy services that were not medicallynecessary or not provided as claimed. Thiscase is being prosecuted by Assistant U.S.Attorney Jon Juenger.U.S. v. Maritza Claudia Fernanda Lorza

Ramirez, and James Arley VelascoGonzalez, Case No. 12-60090-CR-KMWThis indictment charges defendants

Maritza Lorza Ramirez and James

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Velasco Gonzalez with conspiracy tocommit money laundering and substantivecounts of money laundering. Morespecifically, the indictment alleges thatbetween January 2006 and December2010, Lorza and Velasco laundered

approximately $3 million in health carefraud proceeds for several companiesusing their own corporations, includingCelebration Home Services, Inc., 4 AllYour Needs, Inc., VPP Staffing, Inc, andWork Force Innovations, Inc. This case isbeing prosecuted by Assistant U.S.Attorney Jon Juenger.U.S. v. Orlando Conrado Piedra Jr., Case

No. 12-60091-CR-KMWThis indictment charges Orlando Piedra,

an accountant, with conspiracy to commitmoney laundering and substantive counts

of money laundering. More specifically,the indictment alleges that between June2007 and September 2009, Piedralaundered approximately $500,000 inhealth care fraud proceeds for severalcompanies through his own company,Media Health Consultants, Inc. This caseis being prosecuted by Assistant U.S.Attorney Jon Juenger.U.S. v. Armando Manny Gonzalez,

John Thoen, Wondera Eason, PaulThomas Layman, Alexandra Haynes,Serena Joslin, Ivon Perez, DanielMartinez, Raymond Rivero, Case No. 12-

20291-CR-AltonagaArmando Manny Gonzalez, John

Thoen, Wondera Eason, Paul ThomasLayman, Alexandra Haynes, and SerenaJoslin are charged with one count ofconspiracy to commit health care fraudthrough a company called Health CareSolutions Network (HCSN). Additionally,defendants Gonzalez, Daniel Martinez,Raymond Rivero, and Ivon Perez arecharged with conspiracy to receive andpay health care kickbacks; defendantsMartinez, Rivero, and Perez are charged

with substantive counts of soliciting andreceiving health care kickbacks;defendants Gonzalez and Thoen arecharged with one count of conspiracy tocommit money laundering; and defendantGonzalez is charged with substantivecounts of money laundering. Morespecifically, the indictment alleges thatbetween November 2004 and March 2011,Gonzalez, Thoen, Eason, Layman,Haynes, and Joslin conspired to submitapproximately $63 million in false claimsto Medicare and Medicaid for mentalhealth services that were neither necessary

nor provided. The indictment also allegesthat Gonzalez conspired with owners ofAssisted Living Facilities (ALFs),including Martinez, Rivero, and Perez topay and receive health care kickbacks inexchange for referring Medicare

beneficiaries to HCSN. This case is beingprosecuted by Trial Attorney Steven Kimof the Criminal Divisions Fraud Section.U.S. v. Sarah Da Silva Keller, Case No.

12-20289-CR-CookeSarah Da Silva Keller is charged with one

count of conspiracy to commit health carefraud. More specifically, the criminalinformation alleges that between April2006 and February 2008, Keller conspiredwith others at HCSN to submit falseclaims to Medicare for mental healthservices that were neither medicallynecessary nor provided. The informationfurther alleges that HCSN submittedapproximately $63 million in false claimsto Medicare. This case is being prosecutedby Trial Attorney Steven Kim of theCriminal Divisions Fraud Section.

U.S. v. Alba Serrano, Case No. 12-20285-CR-SeitzAlba Serrano is charged with one count

of conspiracy to commit health care fraud.The criminal information alleges thatSerrano, the owner of Elsas House of theElderly, a Miami-Dade ALF, referredresidents from her ALF to AmericanTherapeutic Corporation (ATC) inexchange for kickbacks. ATC was aCommunity Mental Health Center(CMHC) that submitted false claims forintensive mental health services, calledPartial Hospitalization Program, based on

Serranos Medicare beneficiary referrals.This case is being prosecuted by TrialAttorney Steven Kim of the CriminalDivisions Fraud Section.U.S. v. Bobby Ramnarine, Case No. 12-

20288-CR-MiddlebrooksBobby Ramnarine is charged with one

count of conspiracy to commit health carefraud. The criminal information allegesthat Ramnarine, the owner of ElminasALF, in Broward County, recruitedresidents from Elminas to becomepatients at ATC in exchange for

kickbacks. ATC submitted false claims forPHP services based on RamnarinesMedicare beneficiary referrals. This caseis being prosecuted by Trial AttorneySteven Kim of the Criminal DivisionsFraud Section.U.S. v. Giuseppe Pellerito, Case No. 12-

20292-CR-CookeIn this case, defendant Giuseppe Pellerito

is charged with conspiracy to receivehealth care kickbacks and substantivecounts of receiving kickbacks. Theindictment alleges that Pellerito, theowner of Florida Sober House (FSH),

received kickbacks for recruiting residentsfrom FSH to become patients at ATC.ATC, in turn, submitted false claims forPHP based on Pelleritos referrals. Thiscase is being prosecuted by Trial AttorneySteven Kim of the Criminal Divisions

Fraud Section.U.S. v. Hassan Collins, Case No. 12-

20286-CR-MooreHassan Collins is charged with one count

of conspiracy to pay and receive healthcare kickbacks. According to the criminal

information, Collins was the owner ofNew Way Recovery Inc. (NWR), whichoperated several halfway houses inBroward County. Collins allegedlyreceived kickbacks for recruitingMedicare beneficiaries who resided atNWR to become patients at ATC. Thiscase is being prosecuted by Trial AttorneySteven Kim of the Criminal DivisionsFraud Section.U.S. v. Jean Luc Veraguas, Case No. 12-

20287-CR-MorenoJean-Luc Veraguas is charged with one

count of conspiracy to commit health carefraud. The criminal information allegesthat Veraguas was the owner of Neu WaysInc., which operated several halfwayhouses in Broward County. Veraguasallegedly referred residents at his housesto ATC in exchange for kickbacks. Thiscase is being prosecuted by Trial AttorneySteven Kim of the Criminal DivisionsFraud Section.U.S. v. Pablo Orama, Vivian Augustine, a

/k/a Vivian Salazar, Ariane MarchioroAmorim, Jose Orelvis Ortega, MarlenDiosdada Garcia, Ivon Perez, Marianela

Terrero, Jose Abreu-Gonzalez, Elba M.Caicedo, Carlos A. Herrera, MariselaSherwood, Nancy Diaz, Daymi FuentesGil, Olga Martinez Rodriguez, YuriaPerez Rivero, and Joel Loyola, Case No.12-20265-CR-Middlebrooks(s)In this case, 16 defendants are charged

with conspiracy to pay and receive healthcare kickbacks and substantive counts ofpaying and receiving kickbacks inconnection with a federal health careprogram. According to the indictment,defendant Pablo Orama was the owner of

Superstar Home Health, a Miami-DadeCounty home health agency thatpurportedly provided skilled nursingservices and physical therapy tohomebound Medicare beneficiaries.Vivian Augustine and Ariane Amorimwere employees of the company. JoseOrelvis Ortega, Marlen Garcia, IvonPerez, Marianela Terrero, Jose Abreu-Gonzalez, Elba Caicedo, Carlos Herrera,Marisela Sherwood, and Nancy Diaz wererecruiters who offered money to Medicarebeneficiaries in return for their agreementto serve as patients at Superstar.

Defendants Daymi Fuentes Gil, OlgaRodriguez, Yuria Rivero, and Joel Loyolawere Medicare beneficiaries who acceptedkickbacks in return for agreeing to serve

FIFTY-NINE page 10


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5Federal Criminal Defense LawyersTwenty-Two Detroit-Area Residents Charged inNationwide Medicare Fraud Strike ForceTakedownMcNabbAssociates, P.C. (Federal Criminal DefenseLawyers)


The Federal Bureau of Investigation(FBI) on May 2, 2012 released thefollowing: Total of 107 Defendants Charged inSeven Cities for Approximately $452Million in False BillingDETROITTwenty-two Detroit-area

residents were charged today for theirroles in psychotherapy, home health care,and infusion therapy schemes to submitmore than $58 million in false billing toMedicare, announced the Departments ofJustice and Health and Human Services.Including these charges, Medicare FraudStrike Force operations in Detroit havecharged a total of 164 individuals in casesinvolving approximately $244 million infraudulent billings to Medicare.The charges in Detroit are part of a

nationwide takedown by Medicare FraudStrike Force operations in seven cities thatled to charges against 107 individuals fortheir alleged participation in schemes tocollectively submit more than $452

million in fraudulent claims to Medicare.This takedown involved the highestamount of false Medicare billing in asingle takedown in strike force history.The results we are announcing today areat the heart of an administration-widecommitment to protecting Americantaxpayers from health care fraud, whichcan drive up costs and threaten thestrength and integrity of our health caresystem, said Attorney General EricHolder. We are determined to bring to

justice those who violate our laws anddefraud the Medicare program forpersonal gain. As todays takedownreflects, our ongoing fight against healthcare fraud has never been morecoordinated and effective.United States Attorney for the Eastern

District of Michigan Barbara L. McQuadestated, A disturbing new trend we areseeing is the exploitation of adults infoster care. Providers bill Medicare forhome health and psychotherapy servicesfor disabled adults that are unnecessary ornot provided.Those who seek to steal from Medicare

and exploit the system will be vigorouslypursued and brought to justice, statedSpecial Agent in Charge of the FBIsDetroit Division Andrew G. Arena.These arrests are the result of atremendous amount of hard work by FBIand HHS-OIG agents.

Todays indictments and arrests in theareas of home health care, psychotherapy,or infusion therapy fraud demonstrate thatHHS-OIG agents will untangle even themost complex fraud schemes and holdthose responsible accountable for theircriminal actions, said Lamont Pugh III,Special Agent in Charge of theDepartment of Health & Human ServicesOffice of Inspector General for theChicago Region, which includes Detroit.Through collaboration with our lawenforcement partners, HHS-OIG willbring to justice those who wasteMedicares limited resources and preventthe most vulnerable members of oursociety from receiving vital health careservices.Court documents unsealed today in the

Eastern District of Michigan chargedefendants including owners andoperators of companies, social workers,office employees, and patient recruiterswith submitting fraudulent claims forservices that were never rendered.Eighteen of the defendants were eitherarrested this morning or will be self

surrendering this week and fourdefendants remain at large. In addition,law enforcement agents today executedsearch warrants at nine locations andseizure warrants of 14 bank accountsrelated to the alleged fraud schemes. Thefollowing charges were unsealed:United States v. Rahman, et al.Five individuals were charged in a

superseding indictment with conspiracy tocommit health care fraud for their roles ina $13.8 million scheme to defraudMedicare by submitting fraudulent claimsfor home health care services. One of thedefendants was also charged withconspiracy to pay or receive kickbacks torefer Medicare beneficiaries for thefraudulent services. The indictmentalleges that the fraudulent claims weresubmitted by four home health agenciesoperating in Livonia, Michigan:Physicians Choice Home Health Care,LLC; First Care Home Health Care, LLC;Quantum Home Care, Inc.; and MoonliteHome Care, Inc.The defendants charged in the

superseding indictment are: Bilal Akbar,

49, formerly of Canton, Michigan; JoannTerrell, 49, of Detroit; Madhur Thawani,27, of Auburn Hills, Michigan; ShahzadMirza, 41, of Canton, Michigan; andAnkit Patel, 27, of Plymouth, Michigan.United States v. Mehmood, et al.Two individuals were charged in a

superseding indictment with conspiracy tocommit health care fraud for their roles ina $33 million scheme to defraud Medicareby submitting fraudulent claims for homehealth care services, as well as conspiracyto pay or receive illegal kickbacks. Theindictment alleges that the fraudulentclaims were submitted by four homehealth agencies operating in Ypsilanti,Michigan and Detroit, Michigan: AccessCare Home Care, Inc.; Patient Care HomeCare, Inc.; Hands On Healing Home Care,Inc.; All State Home Care, Inc.The defendants charged in the

superseding indictment are: BadarAhmadani, 45, of Ypsilanti Michigan andFalusic Ashford, 47 of Detroit, Michigan.United States v. Sharma, et al.Four individuals were charged in an

indictment with conspiracy to commithealth care fraud for their roles in a $23million scheme to defraud Medicare bysubmitting fraudulent claims for homehealth care services and psychotherapyservices. Three of the individuals werealso charged with conspiring to pay orreceive illegal kickbacks. The indictment

alleges that the fraudulent claims weresubmitted by three home health agenciesand an adult day care center. The homehealth agencies operating in MadisonHeights, Michigan and Sterling Heights,Michigan are: Reliance Home Care, LLC;First Choice Home Health Care Services,Inc.; and Associates in Home Care, Inc.The adult day care center operating inDetroit Michigan is Haven Adult DayCare Center, LLC.The defendants charged in the indictment

are: Sachin Sharma, 36, of ShelbyTownship, Michigan; Dana Sharma, 29, ofShelby Township, Michigan; Abdul MalikAl- Jumail, aka Tony, 52, ofBrownstown, Michigan; and FelicarWilliams, 49, of Dearborn, Michigan.United States v. English, et al.Six individuals were charged in an

indictment with conspiracy to commithealth care fraud for their roles in a $2.8million scheme to defraud Medicare bysubmitting fraudulent claims forpsychotherapy services. Two of thedefendants are also charged withadditional health care fraud counts. The

indictment alleges that the fraudulentclaims were submitted by an adult daycare center operating in Flint, Michigan:New Century Adult Day ProgramServices, LLC.

Federal Criminal

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6/13

6 Federal Criminal Defense LawyersTwenty-One Defendants Charged for AllegedCorruption at Two Southern California DMVOfficesMcNabbAssociates, P.C. (Federal Criminal DefenseLawyers)


The Federal Bureau of Investigation(FBI) on May 2, 2012 released thefollowing:United States Attorney Laura E. Duffyannounced today that employees at theCalifornia Department of Motor Vehicles(DMV) in San Diego County werecharged in a criminal complaint for theirinvolvement in a long-running briberyconspiracy that resulted in the productionof hundreds of fraudulent driver licensesfor applicants who had failedor nottakenthe required driver license tests.The complaint alleges that DMV officials

at the El Cajon DMV office, located at1450 Graves Avenue, El Cajon,California, and the Rancho San DiegoDMV office, located at 1901 JamachaRoad, El Cajon, California, falsely enteredboth passing written and passingdriving test scores for applicants inexchange for bribes ranging up to $3,000per license.In addition to the DMV employees, 16

other defendants were charged in thecomplaint. According to the chargingdocuments, these 16 other defendants areapplicants who paid bribes to receivefraudulent driver licenses, or recruiterswho brokered the corrupt deals forfraudulent licenses by getting money fromthe applicants and paying the bribes to theDMV employees. According to courtdocuments, the corruption schemeinvolved the fraudulent production of bothClass C (regular) and Commercial Class Adriver licenses. Hundreds of applicantspaid recruiters approximately $400- $500for each fraudulent Class C license, whichthe conspirators produced at the El CajonDMV. The complaint alleges that theDMV employees named in the complaintaccepted bribes paid by these applicantsdespite the obvious public safety riskposed. For example, one DMV employeeadmitted to a recruiter that an applicanttaking a driving test was so dangerous thatshe was gonna kill someone. The DMVemployee, however, provided a fraudulentlicense to the dangerous applicant inexchange for a bribe the recruiter because

he need[ed] cash.According to the complaint, applicants

seeking Commercial Class A licenses,produced at the Rancho San Diego DMV,typically paid recruiters $2,500-$3,000.Commercial Class A driver licenses allowthe licensee to drive commercial vehicles

weighing more than 10,000 pounds, whichcan cause enormous harm to the public ifoperated incorrectly by an unqualifieddriver. The complaint further alleges thatDMV employees entered false passing testscores that allowed applicants tofraudulently obtain additionalcertifications for specific operations of thecommercial vehicles, such as transportinghazardous materials or towing multipletrailers. The United States Attorneyemphasized that these fraudulentcertifications posed a significant threat topublic safety, given that an unqualifieddriver could then transport hazardousmaterials or tow multiple trailers on thepublic roads.For both Class C and Commercial Class

A licenses, the recruiters told theapplicants that, if they paid the fee, theywould not have to take any of the requiredtests in order to receive a license. Thecomplaint alleges that the recruiters madegood on their claim as Jim Lynn Bean,Jeffrey Thomas Bednarek, Scott DavidFriedli, and Marco Beltran took advantageof their positions as DMV employees to

enter fraudulent passing written anddriving test scores into the DMV database.These DMV employees were responsiblefor conducting driving tests for driverlicense applicants, but by entering falseinformation, circumvented the DMVsdriver license application process.All 21 defendants were charged with

conspiracy to commit bribery and toproduce unauthorized identificationdocuments, in violation of Title 18, UnitedStates Code, Section 371. In addition,defendants Bean, Bednarek, Friedli, andBeltran were charged with one count ofbribery, in violation of Title 18, UnitedStates Code, Section 666(a)(1)(B). Theoperator of the U.S. Driving School in ElCajon, Kuvan Adil Piomari, was chargedwith one count of bribery, in violation ofTitle 18, United States Code, Section666(a)(2). The defendants taken intocustody today are expected to make theirinitial appearances before United StatesMagistrate Judge William V. Gallo onMay 3, 2012.United States Attorney Duffy commented

that this criminal complaint and arrests are

the result of an active, ongoing criminalinvestigation. If anyone in the communityhas information about corruption at theDMV, they are asked to contact theFederal Bureau of Investigation at 1-877-NO-BRIBE (662-7423), or the DMVsInvestigations Branch-Office of Internal

Affairs at 626-851-0173.Criminal Case No. 12MJ1576Defendants Jim Lynn Bean Age: 33

Kuvan Adil Piromari Age: 42 JeffreyThomas Bednarek Age: 53 Scott DavidFriedli Age: 32 Marco Beltran Age: 41Gabriela Villanueva Age: 30 BasharAsaad Azaria Age: 34 Reenan Esa KuzaAge: 29 Usman Aliyev Age: 29Abdulmajed Alhokair Age: 21 AhmadAlarbeed Age: 20 Mohammed AlsuwaidiAge: 18 Ali Rashid Al-Sowaidi Age: 22Khalid Abdulaziz Al-Sowaidi Age: 22Talal Bass Almousharji Age: 19 VirginiaPena Age: 32 Yontar Gizem Age: 19Douri Zafer Age: 43 Asiel Bahjat TomikaAge: 30 Angel Salvador Astimibay Age:50 Bekzad Mirhanov Age: 31Summary of ChargesCount 1: Title 18, United States Code,

Section 371Conspiracy to CommitBribery and to Produce UnauthorizedIdentification Documentsstatutorymaximum sentence of five years custody,a maximum fine of $250,000, and $100special assessment. All defendants.Count 2: Title 18, United States Code,

Section 666(a)(1)(B)Briberystatutorymaximum sentence of 10 years custody, amaximum fine of $250,000, and $100special assessment. As to defendants: JimLynn Bean, Jeffrey Thomas Bednarek,Scott David Friedli, and Marco Beltran.Count 3: Title 18, United States Code,

Section 666(a)(2)Briberystatutorymaximum sentence of 10 years custody, amaximum fine of $250,000, and $100special assessment. As to defendantKuvan Adil Piromari.Investigating AgenciesFederal Bureau of InvestigationCalifornia Department of Motor Vehicles

-Investigations DivisionA complaint is not evidence that the

defendants committed the crimes charged.The defendants are presumed innocentuntil the government meets its burden incourt of proving guilt beyond a reasonabledoubt.Douglas McNabb McNabb Associates,


Videos:Federal Crimes Be CarefulFederal Crimes Be ProactiveFederal Crimes Federal IndictmentFederal Crimes Detention Hearing

Federal Criminal

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7/13

7Federal Criminal Defense LawyersManhattan U.S. Attorney Announces Arrests ofTwo Individuals in Alleged Multi-Million-Dollar Scam Involving Elderly WomanMcNabbAssociates, P.C. (Federal Criminal DefenseLawyers)


The Federal Bureau of Investigation(FBI) on May 2, 2012 released thefollowing:Preet Bharara, the United States Attorneyfor the Southern District of New York;Eric T. Schneiderman, the New YorkState Attorney General; and Janice K.Fedarcyk, the Assistant Director in Chargeof the New York Office of the FederalBureau of Investigation (FBI),announced charges today againstIFEANYICHUKWU ERIC ABAKPOROand LATANYA PIERCE for allegedlyswindling an elderly woman out of hermulti-million-dollar property in Harlemthat she had owned for more than 40 yearsand then deceiving a bank into givingthem a $1.8 million mortgage loansecured by the property. ABAKPOROwas arrested Monday in Queens, NewYork, and PIERCE was arrested yesterdayafter voluntarily surrendering to the FBI.Manhattan U.S. Attorney Preet Bharara

stated: As alleged, these two defendants

preyed on an elderly woman, using falsedocuments and fraudulent representationsto essentially steal her property out fromunder her. They then allegedly took theirbrazen scheme one step further, using theproperty to deceive a bank into lendingthem more than a million dollars. Sadly,this type of mortgage fraud scheme andexploitation of vulnerable victims havebecome all too familiar, but as thesecharges make clear, we are committed tobringing those who perpetrate these typesof harmful schemes to justice.New York State Attorney General Eric

Schneiderman stated: Through lies anddeception, these individuals abused thetrust of an elderly woman in order toperpetrate a multi-million-dollar fraud.Now that their despicable scheme hasbeen exposed, they will face justice.Assistant Director in Charge Janice K.

Fedarcyk stated: These defendants arecharged with spinning a web of lies tosteal the victims property. Cases like thisare rightly a priority for the FBI:fraudulent schemes that victimize thevulnerable and enrich the unscrupulous.

As alleged in the indictment unsealedyesterday in Manhattan federal court:Beginning in March 2006, ABAKPORO,

a lawyer with an office in Brooklyn, NewYork, and PIERCE, who worked forABAKPORO, cultivated a relationshipwith an elderly woman (the Victim)

who owned a residential apartmentbuilding worth millions of dollars locatedat 1070 St. Nicholas Avenue in Harlem(the Property). As part of the fraudscheme, ABAKPORO and PIERCEearned the Victims trust by, among otherthings, offering to help her manage theProperty. This included collecting rentfrom its tenants on her behalf. However,instead of providing the Victim with therenters money, ABAKPORO andPIERCE pocketed it.ABAKPORO and PIERCE then

convinced the Victim to sell her propertyto them for $3.1 million. While theycontracted to buy the property for thatamount, at the closing, they presented theVictim with multiple fake and fraudulentchecks to make it appear as if they hadpaid the contracted sale amount, when infact they had not. Moreover, after theVictims attorney had left the closing,ABAKPORO and PIERCE fraudulentlyinduced her to return all of the checks tothem by representing that they wouldsafeguard her money and give her aprivate mortgage in the Property, which

they explained would include monthlypayments made to her based on the moneyshe had effectively loaned them. As partof the scheme, ABAKPORO and PIERCEsigned and provided the Victim with awritten agreement representing that shehad loaned them approximately $1.9million and in return held a privatemortgage in the Property. Unbeknownstto the Victim, ABAKPORO and PIERCEnever recorded the private mortgage andsubsequently submitted a fraudulentapplication to Washington Mutual Bankseeking a $1.8 mortgage loan secured bythe Property. ABAKPORO and PIERCEnever disclosed to the bank that theVictim already held a private mortgage onthe Property. Instead, ABAKPORO andPIERCE falsely represented to the bankthat they had purchased the Property for$3.1 million and owned it free andclear. Based on those, and other,fraudulent representations, ABAKPOROand PIERCE obtained a $1.8 millionmortgage loan from the bank, which theyfailed to repay.As a result of the alleged fraud, the

defendants obtained substantially all ofthe Victims assets, and $1.8 million infraudulently obtained mortgage proceeds.The Property went into default.***ABAKPORO, 52, a Nigerian citizen, is a

resident of Queens, and PIERCE, 43, is a

resident of Brooklyn. They are eachcharged with wire fraud, bank fraud, wirefraud conspiracy, and bank fraudconspiracy. The wire fraud and wire fraudconspiracy charges each carry a maximumprison term of 20 years. The bank fraudand bank fraud conspiracy charges eachcarry a maximum prison term of 30 years.ABAKPORO is currently detained

pending his satisfaction of court-orderedbail conditions: a $1 million bond securedby an interest in property and co-signedby three individuals. PIERCE wasreleased on a $500,000 bond to be co-signed by three individuals and secured bytwo properties.Mr. Bharara praised the New York State

Attorney Generals Office investigativestaff and the FBI for their excellent workon the investigation of this matter. He alsothanked the New York State Departmentof Financial Services for its assistance.The case is being handled by the Offices

Complex Frauds Unit. Southern District ofNew York Assistant U.S. Attorneys RyanPoscablo and Michael Lockard, alongwith Assistant Attorney General Meryl

Lutsky, who has been designated aSpecial Assistant U.S. Attorney, andAssistant Attorney General RhondaGreenstein, are in charge of theprosecution.The charges contained in the indictment

are merely accusations, and the defendantsare presumed innocent unless and untilproven guilty.Douglas McNabb McNabb Associates,


Videos:Federal Crimes Be CarefulFederal Crimes Be ProactiveFederal Crimes Federal IndictmentFederal Crimes Detention HearingFederal Mail Fraud CrimesTo find additional federal criminal news,


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or report extensively on matters involvingFederal Criminal Defense, INTERPOLRed Notice Removal, InternationalExtradition Defense, OFAC SDNSanctions Removal, International

Federal Criminal

MANHATTAN page 11
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8/13

8 Federal Criminal Defense LawyersCleveland bomb case: Role of FBI informantwill be keyMcNabbAssociates, P.C. (Federal Criminal DefenseLawyers)


Chicago Tribune on May 2, 2012 releasedthe following:By Michael MuskalAs the case of five men charged with

plotting to blow up a Cleveland-areabridge goes forward, one of the keyquestions will revolve around the role ofthe FBIs confidential informant in thecase. That informant was at the center ofdiscussions and, according to at least onedefense lawyer, may have been too active.The five men are scheduled to appear in

federal court Monday for a hearing on

charges including conspiracy and trying tobomb property used in interstatecommerce. The government alleges thatthe group was involved in an anarchistplot to make a violent political statementagainst the wealthy and powerful in timefor May Day, which honors workersstruggles around the world. If convicted,each faces more than 20 years in prison.All are expected to plead not guilty. The

bigger question will be their defense, andone lawyer has already called intoquestion the role of the person expected tobe the key witness, a confidential

informant. Such a defense would besimilar to that of other terrorism-typecases involving a sting or the use of aninformant.Defense lawyer John Pyle, who

represents one of the defendants, BrandonBaxter, told the Associated Press that theinformants role needed to be examined.We need to put the case under amicroscope, Pyle said. But just on thebasis on the filing in the court, theressome indicators that this informant wasplaying a really active role.

The informant, identified in court papersas Confidential Human Source, hasbeen working for the FBI since July 20,and received approximately $5,750 forservices and $550 for expenses.The payments stopped when the

informant began probation on a charge ofpassing bad checks. According to theaffidavit filed with the criminal complaint,the sources criminal record includes aconviction for possessing cocaine in 1990,a conviction for robbery in 1991 and fourconvictions for passing bad checksbetween 1991 and 2011.

Perhaps more important is the sourcesrole. According to the affidavit, the FBI

directed the source to attend ademonstration on Oct. 21, because lawenforcement had an initial report of

potential criminal activity and threatsinvolving anarchists who would beattending a protest in Cleveland. At thedemonstration, the source made the firstcontact with some of the suspects.In later meetings, the source recorded

numerous conversations and was presentas the plans to blow up the bridge wereallegedly firmed up. Eventually, thegroups members reportedly purchasedwhat they thought were explosives froman undercover FBI employee, along withthe purported codes and cellphone

equipment needed to bring down a bridge.The reported target was a span crossingthe Cuyahoga Valley National Park southof downtown Cleveland.Authorities said the group tried to

detonate the explosives but nothinghappened. The defendants were arrested ina car near the bridge Monday night.It is not unusual to use informants or even

stings in law enforcement. Those whovespent even a small amount of timewatching the myriad number of crime andlaw shows on television know that theresusually a jailhouse snitch ready to make a

deal by incriminating a defendant.In real life, a number of mob trials have

depended on a gangster who turned onformer colleagues. In the area of fightingpublic corruption, probably the mostfamous case was Abscam in the late1970s. In that case, an FBI employeemasqueraded as a Middle East sheik andwas videotaped offering money inexchange for political favors. Eventually,a U.S. senator and five congressmen wereconvicted of corruption.The governments use of informants and

stings has become very visible andmore controversial since the Sept. 11attacks. Undercover informants playedmajor roles in alleged plots to bomb NewYork synagogues, set off a bomb nearChicagos Wrigley Field, attack a federalcourthouse in Illinois and blow up abuilding in Dallas.In all of the cases, the federal government

said it used the resources that wereavailable. But in at least one case, thetactics were not greeted with enthusiasmby the judge.In September in New York, District

Judge Colleen McMahon handed down amandatory 25-year prison sentence in a

plot to bomb synagogues and shoot downmilitary planes with missiles. But shemade it clear that she was unhappy with

how the government had run a sting.That operation began in 2008 after an FBI

informant was assigned to infiltrate amosque in Newburgh, N.Y. The informantpretended to be a representative of aPakistani terrorist organization eager tofinance jihad against the United States; hewas also a key player in the plot. Theinformant later testified against the group,each of whom received the mandatory 25-year sentence.The essence of what occurred here wasthat a government, understandably zealous

to protect its citizens, created acts ofterrorism out of the fantasies and thebravado and the bigotry of one man inparticular and four men generally and thenmade these fantasies come true,McMahon noted in court, as reported bythe Associated Press. The governmentmade them terrorists. I am not proud ofmy government for what it did in thiscase.Douglas McNabb McNabb Associates,

P.C.s

Federal Criminal Defense AttorneysVideos:Federal Crimes Be CarefulFederal Crimes Be ProactiveFederal Crimes Federal IndictmentFederal Crimes Detention HearingTo find additional federal criminal news,


the U.S. law firm practice and write and/

or report extensively on matters involvingFederal Criminal Defense, INTERPOLRed Notice Removal, InternationalExtradition Defense, OFAC SDNSanctions Removal, InternationalCriminal Court Defense, and US Seizureof Non-Resident, Foreign-Owned Assets.Because we have experience dealing withINTERPOL, our firm understands theinter-relationship that INTERPOLs RedNotice brings to this equation.The author of this blog is Douglas C.

McNabb. Please feel free to contact himdirectly at

[email protected] or at oneof the offices listed above.U.S. v. Matthew Worthing

(Antitrust Division: Criminal Case Filings)


Document filed on April 26, 2012 Information

Federal Criminal Antitrust
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9/13

9Federal Criminal Defense LawyersExecutive Indicted for Allegedly DefraudingEmployee Benefit Plans of Public HousingAgencies Nationwide of $8.6 MillionMcNabbAssociates, P.C. (Federal Criminal DefenseLawyers)


The Federal Bureau of Investigation(FBI) on May 3, 2012 released thefollowing:CHICAGO A former executive andpart owner of a suburban company thatadministered employee pension plans andgroup life insurance programs for publichousing authorities across the country wasindicted for allegedly defrauding theagencies and their employees of more than$8.6 million. The defendant, Richard P.Zachmann, was charged with 12 counts ofwire fraud in an indictment returnedyesterday by a federal grand jury, PatrickJ. Fitzgerald, United States Attorney forthe Northern District of Illinois, andRobert D. Grant, Special Agent in Chargeof the Chicago Office of the FederalBureau of Investigation, announced today.Zachmann, 60, of Aurora, will be

arraigned at a later date in U.S. DistrictCourt. He was vice president of LifeAssociates, Inc., and between 2001 and2008 controlled operations of the

business, which he and his wife owned.Life Associates, which had offices in farwest suburban Sandwich and later inSugar Grove, administered employeepension plans and group life insuranceprograms for more than 100 publichousing authorities in 21 states, withthousands of employee beneficiaries.Chicago area clients included the publichousing agencies in Du Page County,Elgin, North Chicago, and East Chicago,Indiana. The Chicago Housing Authoritywas not a client of Life Associates.Between 2002 and January 2009,

Zachmann allegedly did not disclose to,and concealed from, the housingauthorities and the beneficiaries that theirpension plans and group life insuranceprograms had received valuable proceedswhen the financial company that servicedthe plans converted from a mutual holdingcompany, owned by its policyholders, to apublicly traded company through aprocess known as demutualization.Zachmann allegedly convertedapproximately $8,628,666 indemutualization proceeds to his and his

wifes personal benefit, to the benefit ofLife Associates, and to the benefit of othernon-related businesses that Zachmann at

least partially owned. Zachmann knewthat these proceeds were to be used solelyfor the benefit of the housing authoritybenefit plans and their beneficiaries, thecharges allege. According to theindictment, Life Associates offered itshousing agency clients access to a grouplife insurance program through PrincipalFinancial Group (formerly known asPrincipal Mutual Holding Company),based in Des Moines, Iowa, that providedinvestment management services to thehousing authorities. In May 2001,Principal converted from a companyowned by its policyholders to a publiclytraded company. As a result of thedemutualization process, Principalscustomers and policyholders, includingthe housing authorities, were entitled toshare the distributions of Principals valueat the time of its initial public offering inthe form of cash, policy credits andPrincipals stock.In February 2002, Zachmann caused

account credits to the housing authoritiespension plans to be converted intoapproximately $6,250,967 in cash. At the

same time, he allegedly caused Principalcommon stock shares credited to thegroup life insurance plan to be sold andconverted into approximately $1,363,458in cash, which grew with interest overtime. In about July 2002, Zachmanncaused Principal to debit thedemutualization proceeds on roughly amonthly basis, retroactive to April 2002,to pay increased fees to Life Associates,and he provided Principal with falsedocuments purporting to prove that thehousing authorities knew about the higherfees, as well as the existence of thedemutualization proceeds, the indictmentcharges.Between July 2002 and May 2007,

Zachmann allegedly caused Principal tomake monthly payments to LifeAssociates totaling nearly all of pensionplan demutualization proceeds, which hadgrown to approximately $6,861,666. Asthese proceeds were nearing depletion,between February 2007 and January 2009,Zachmann allegedly caused LifeAssociates to receive payment of lifeinsurance demutualization proceeds

totaling approximately $1,767,000. Theindictment seeks forfeiture of at least$8,628,666 in alleged proceeds of the

fraud scheme.Each count of wire fraud carries a

maximum penalty 20 years in prison, anda $250,000 fine of $250,000, andrestitution is mandatory. The court mayalso impose a fine totaling twice the lossto any victim or twice the gain to thedefendant, whichever is greater. Ifconvicted, the court must impose areasonable sentence under federal statutesand the advisory United States SentencingGuidelines.The government is being represented by

Assistant U.S. Attorney Andrew S.Boutros.The public is reminded that an indictment

contains only charges and is not evidenceof guilt. The defendant is presumedinnocent and is entitled to a fair trial atwhich the government has the burden ofproving guilt beyond a reasonable doubt.Douglas McNabb McNabb Associates,


Videos:

Federal Crimes Be CarefulFederal Crimes Be ProactiveFederal Crimes Federal IndictmentFederal Crimes Detention HearingFederal Mail Fraud CrimesTo find additional federal criminal news,


the U.S. law firm practice and write and/or report extensively on matters involvingFederal Criminal Defense, INTERPOLRed Notice Removal, InternationalExtradition Defense, OFAC SDNSanctions Removal, InternationalCriminal Court Defense, and US Seizureof Non-Resident, Foreign-Owned Assets.Because we have experience dealing withINTERPOL, our firm understands theinter-relationship that INTERPOLs RedNotice brings to this equation.The author of this blog is Douglas C.

McNabb. Please feel free to contact himdirectly [email protected] or at one

of the offices listed above.

Federal Criminal
http://federalcrimesblog.com/2012/05/03/executive-indicted-for-allegedly-defrauding-employee-benefit-plans-of-public-housing-agencies-nationwide-of-8-6-million/http://federalcrimesblog.com/2012/05/03/executive-indicted-for-allegedly-defrauding-employee-benefit-plans-of-public-housing-agencies-nationwide-of-8-6-million/http://federalcrimesblog.com/2012/05/03/executive-indicted-for-allegedly-defrauding-employee-benefit-plans-of-public-housing-agencies-nationwide-of-8-6-million/http://federalcrimesblog.com/http://federalcrimesblog.com/http://federalcrimesblog.com/http://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Be-Carefulhttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Be-Proactivehttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Federal-Indictmenthttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Detention-Hearinghttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Mail-Fraud-Crimeshttp://paper.li/douglasmcnabb/1311894940http://paper.li/douglasmcnabb/1311894940http://mailto:[email protected]/http://mailto:[email protected]/http://paper.li/douglasmcnabb/1311894940http://paper.li/douglasmcnabb/1311894940http://mcnabbassociates.com/federal-crimes-video.html#Federal-Mail-Fraud-Crimeshttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Detention-Hearinghttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Federal-Indictmenthttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Be-Proactivehttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Be-Carefulhttp://federalcrimesblog.com/http://federalcrimesblog.com/http://federalcrimesblog.com/2012/05/03/executive-indicted-for-allegedly-defrauding-employee-benefit-plans-of-public-housing-agencies-nationwide-of-8-6-million/http://federalcrimesblog.com/2012/05/03/executive-indicted-for-allegedly-defrauding-employee-benefit-plans-of-public-housing-agencies-nationwide-of-8-6-million/http://federalcrimesblog.com/2012/05/03/executive-indicted-for-allegedly-defrauding-employee-benefit-plans-of-public-housing-agencies-nationwide-of-8-6-million/


10/13

10 Federal Criminal Defense Lawyers


as patients at Superstar. This case is beingprosecuted by Assistant U.S. AttorneyEric E. Morales.U.S. v. Jorge Luis Reyes and Waldo

Gonzalez, Case No. 12-14030-CR-MooreThis indictment charges Jorge Luis Reyes

and Waldo Gonzalez, owners of a medicalclinic that purported to treat HIV-positiveMedicare beneficiaries at locations inMiami-Dade and St. Lucie Counties.According to the indictment, betweenNovember 2005 and January 2009, thedefendants submitted approximately$15,201,162 in fraudulent claims toMedicare for treatment that was notprovided, and in many cases would nothave been medically necessary. Themajority of the fraudulent claims (morethan $13.6 million) were submitted to

private insurance companies that were aMedicare Advantage contractor under PartC of the Medicare program. This case isbeing prosecuted by Assistant U.S.Attorney Marc Osborne.U.S. v. Manotte Bazile, Case No. 12-

20284-CR-LenardDefendant Manotte Bazile, a former

social worker and licensed intern atBiscayne Milieu, was charged with healthcare fraud conspiracy for purportedlytreating patients who did not qualify forPHP treatment. This case is part of largerindictment involving of Biscayne Milieu,

a CMHC that was involved in thesubmission of $57 million in false claimsto Medicare for purportedly providingPHP services to Medicare beneficiarieswho did not qualify for or receive thetreatments that were billed to Medicare. Inthis case, Bazile assisted non-U.S. citizenpatients by completing immigration formson their behalf that falsely indicated thatthe patients suffered from mentalillnesses, thereby fraudulently enablingthe patients to avoid taking the citizenshiptest. This case is being prosecuted by

Assistant U.S. Attorney Alicia Shick.U.S. v. Roselyn Nicole Charles, Case No.12-20283-CR-UngaroDefendant Roselyn Nicole Charles, a

former patient recruiter at Biscayne

Milieu, was charged with conspiracy topay health care fraud kickbacks. Morespecifically, the criminal informationalleges that Charles recruited patients toparticipate in Biscayne Milieus PHP inexchange for kickbacks. These patients,

who did not qualify for PHP treatment,were promised assistance with their U.S.citizenship applications in exchange fortheir participation in Biscayne MilieusPHP. This case is part of larger indictmentof Biscayne Milieu, a CMHC that wasinvolved in the submission of more than$57 million in false claims to Medicarefor purportedly providing PHP services toMedicare beneficiaries who did notqualify for PHP treatment or receive thetreatments that were billed to Medicare.This case is being prosecuted by Assistant

U.S. Attorney Alicia Shick.The cases announced today are beingprosecuted and investigated by MedicareFraud Strike Force teams comprised ofattorneys from the Fraud Section of theJustice Departments Criminal Divisionand from the U.S. Attorneys Offices forthe Southern District of Florida, theEastern District of Michigan, the SouthernDistrict of Texas, the Central District ofCalifornia, the Middle District ofLouisiana; the Northern District ofIllinois, and the Middle District ofFlorida; and agents from the FBI, HHS-

OIG, and state Medicaid Fraud ControlUnits.The Medicare Fraud Strike Force

operations are part of the Health CareFraud Prevention & Enforcement ActionTeam (HEAT), a joint initiativeannounced in May 2009 between theDepartment of Justice and HHS to focustheir efforts to prevent and deter fraud andenforce current anti-fraud laws around thecountry. Since their inception in March2007, Strike Force operations in ninelocations have charged more than 1,330

defendants who collectively have falselybilled the Medicare program for more than$4 billion. Miami was the first Strike forcecity in the nation, and the model for othersthat followed.

An indictment or information is only anaccusation and defendants are presumedinnocent until proven guilty.A copy of this press release may be found

on the website of the United StatesAttorneys Office for the Southern District

of Florida at www.usdoj.gov/usao/fls.Related court documents and informationmay be found on the website of theDistrict Court for the Southern District ofFlorida at www.flsd.uscourts.gov or onhttp://pacer.flsd.uscourts.gov.Douglas McNabb McNabb Associates,


Videos:Federal Crimes Be Careful

Federal Crimes Be ProactiveFederal Crimes Federal IndictmentFederal Crimes Detention HearingFederal Mail Fraud CrimesTo find additional federal criminal news,


the U.S. law firm practice and write and/or report extensively on matters involvingFederal Criminal Defense, INTERPOLRed Notice Removal, International

Extradition Defense, OFAC SDNSanctions Removal, InternationalCriminal Court Defense, and US Seizureof Non-Resident, Foreign-Owned Assets.Because we have experience dealing withINTERPOL, our firm understands theinter-relationship that INTERPOLs RedNotice brings to this equation.The author of this blog is Douglas C.

McNabb. Please feel free to contact himdirectly [email protected] or at oneof the offices listed above.

TWENTY-ONEcontinued from page 6

Federal Mail Fraud CrimesFederal Crimes AppealTo find additional federal criminal news,

please read Federal Criminal Defense

Daily.Douglas McNabb and other members ofthe U.S. law firm practice and write and/or report extensively on matters involving

Federal Criminal Defense, INTERPOLRed Notice Removal, InternationalExtradition Defense, OFAC SDNSanctions Removal, InternationalCriminal Court Defense, and US Seizureof Non-Resident, Foreign-Owned Assets.

Because we have experience dealing withINTERPOL, our firm understands theinter-relationship that INTERPOLs RedNotice brings to this equation.

The author of this blog is Douglas C.McNabb. Please feel free to contact himdirectly [email protected] or at oneof the offices listed above.
http://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Be-Carefulhttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Be-Proactivehttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Federal-Indictmenthttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Detention-Hearinghttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Mail-Fraud-Crimeshttp://paper.li/douglasmcnabb/1311894940http://paper.li/douglasmcnabb/1311894940http://mailto:[email protected]/http://mcnabbassociates.com/federal-crimes-video.html#Federal-Mail-Fraud-Crimeshttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Appealhttp://paper.li/douglasmcnabb/1311894940http://paper.li/douglasmcnabb/1311894940http://mailto:[email protected]/http://mailto:[email protected]/http://paper.li/douglasmcnabb/1311894940http://paper.li/douglasmcnabb/1311894940http://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Appealhttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Mail-Fraud-Crimeshttp://mailto:[email protected]/http://paper.li/douglasmcnabb/1311894940http://paper.li/douglasmcnabb/1311894940http://mcnabbassociates.com/federal-crimes-video.html#Federal-Mail-Fraud-Crimeshttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Detention-Hearinghttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Federal-Indictmenthttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Be-Proactivehttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Be-Careful


11/13

11Federal Criminal Defense Lawyers

TWENTY-TWOcontinued from page 5

The defendants charged in the indictmentare: Glenn English, 52, of Detroit,Michigan; Gregory Lawrence, 54, ofDetroit, Michigan; Richard Hogan, 65, ofFlint, Michigan; Donald Berry, 65, ofDetroit, Michigan; Felicia Marsh, 44, of

Detroit, Michigan; and Jamie Moreau, 34,of Davison, Michigan.United States v. Thompson, et al.Two individuals were charged in an

indictment with conspiracy to commithealth care fraud and additional counts ofhealth care fraud for their roles in a $20million scheme to defraud Medicare bysubmitting fraudulent claims forpsychotherapy services. The indictmentalleges that the fraudulent claims weresubmitted by two psychotherapy clinicsand an adult day care center operating in

Detroit, Michigan: TGW Medical, Inc.;Caldwell Thompson Manor, Inc. AndP&C Adult Day Care Center, LLC.The defendants charged in the indictment

are: Louisa Thompson, 62, of Detroit,Michigan and Checarol Robinson, 41, ofNew Baltimore, Michigan.United States v. Edwards, et al.Two individuals were charged in an

indictment with conspiracy to commithealth care fraud and additional counts ofhealth care fraud for their roles in a $3million scheme to defraud Medicare bysubmitting fraudulent claims for

psychotherapy services. The indictmentalleges that the fraudulent claims weresubmitted by a psychotherapy clinicoperating in Southfield, Michigan andDetroit, Michigan: Funderburg Clinicaland Community Services, Inc.The defendants charged in the indictment

are: Sanyani Edwards, 32, of Taylor,Michigan and Angel Williams, 27, ofSouthfield, Michigan.United States v. Raymond AriasRaymond Arias, 40, of Troy, Michigan

was charged in an indictment with six

counts of health care fraud for his leadingrole in a $12.5 million scheme to defraudMedicare by submitting fraudulent claimsfor infusion therapy treatments. Thefraudulent claims were submitted byAriass clinic Elite Wellness, LLC,

operating in Westland, Michigan.The Medicare Fraud Strike Force

operations are part of the Health CareFraud Prevention & Enforcement ActionTeam (HEAT), a joint initiativeannounced in May 2009 between theDepartment of Justice and HHS to focustheir efforts to prevent and deter fraud andenforce current anti-fraud laws around thecountry.Since their inception in March 2007,

Strike Force operations in nine locationshave charged more than 1,330 defendants

who collectively have falsely billed theMedicare program for more than $4billion. In addition, the HHS Centers forMedicare and Medicaid Services, workingin conjunction with the HHS-OIG, aretaking steps to increase accountability anddecrease the presence of fraudulentproviders.The cases announced today are being

prosecuted and investigated by MedicareFraud Strike Force teams comprised ofattorneys from the Fraud Section of theJustice Departments Criminal Divisionand from the U.S. Attorneys Offices for

the Southern District of Florida, theEastern District of Michigan, the SouthernDistrict of Texas, the Central District ofCalifornia, the Middle District ofLouisiana; the Northern District ofIllinois, and the Middle District ofFlorida; and agents from the FBI, HHS-OIG, and state Medicaid Fraud ControlUnits.The cases in the Eastern District of

Michigan are being prosecuted byAssistant Chief Gejaa T. Gobena and TrialAttorneys Catherine K. Dick and William

G. Kanellis of the Criminal DivisionsFraud Section, and Assistant United StatesAttorney Philip Ross of the U.S.Attorneys Office for the Eastern Districtof Michigan.An indictment is merely a charge and

defendants are presumed innocent untilproven guilty.Douglas McNabb McNabb Associates,


Videos:Federal Crimes Be CarefulFederal Crimes Be ProactiveFederal Crimes Federal IndictmentFederal Crimes Detention HearingFederal Mail Fraud Crimes

To find additional federal criminal news,


the U.S. law firm practice and write and/or report extensively on matters involvingFederal Criminal Defense, INTERPOLRed Notice Removal, InternationalExtradition Defense, OFAC SDNSanctions Removal, InternationalCriminal Court Defense, and US Seizureof Non-Resident, Foreign-Owned Assets.

Because we have experience dealing withINTERPOL, our firm understands theinter-relationship that INTERPOLs RedNotice brings to this equation.The author of this blog is Douglas C.


MANHATTANcontinued from page 7Criminal Court Defense, and US Seizureof Non-Resident, Foreign-Owned Assets.Because we have experience dealing withINTERPOL, our firm understands theinter-relationship that INTERPOLs RedNotice brings to this equation.The author of this blog is Douglas C.


Federal Court ShutsDown Texas Tax ReturnPreparer(USDOJ: Justice News)


A federal court in Dallas has permanentlybarred Joseph Rivas of DeSoto, Texas,from preparing federal tax returns forothers, the Justice Department announcedtoday. The civil injunction order, towhich Rivas consented without admittingthe allegations against him, was signed byJudge Sidney Fitzwater of the U.S.District Court for the Northern District ofTexas.

Hyosung Corporation ExecutiveAgrees to Plead Guilty toObstruction of Justice forSubmitting False Documents inan ATM Merger Investigation(USDOJ: Justice News)


An executive of South Korean-basedHyosung Corporation has agreed to pleadguilty and to serve time in a U.S. prisonfor obstruction of justice charges inconnection with an automated teller

machine (ATM) merger investigationconducted by the Antitrust Division.

Justice
http://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Be-Carefulhttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Be-Proactivehttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Federal-Indictmenthttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Detention-Hearinghttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Mail-Fraud-Crimeshttp://paper.li/douglasmcnabb/1311894940http://paper.li/douglasmcnabb/1311894940http://mailto:[email protected]/http://mailto:[email protected]/http://www.justice.gov/opa/pr/2012/May/12-tax-573.htmlhttp://www.justice.gov/opa/pr/2012/May/12-tax-573.htmlhttp://www.justice.gov/opa/pr/2012/May/12-tax-573.htmlhttp://www.justice.gov/opa/justicenews.phphttp://www.justice.gov/opa/pr/2012/May/12-at-572.htmlhttp://www.justice.gov/opa/pr/2012/May/12-at-572.htmlhttp://www.justice.gov/opa/pr/2012/May/12-at-572.htmlhttp://www.justice.gov/opa/pr/2012/May/12-at-572.htmlhttp://www.justice.gov/opa/pr/2012/May/12-at-572.htmlhttp://www.justice.gov/opa/justicenews.phphttp://www.justice.gov/opa/justicenews.phphttp://www.justice.gov/opa/pr/2012/May/12-at-572.htmlhttp://www.justice.gov/opa/pr/2012/May/12-at-572.htmlhttp://www.justice.gov/opa/pr/2012/May/12-at-572.htmlhttp://www.justice.gov/opa/pr/2012/May/12-at-572.htmlhttp://www.justice.gov/opa/pr/2012/May/12-at-572.htmlhttp://www.justice.gov/opa/justicenews.phphttp://www.justice.gov/opa/pr/2012/May/12-tax-573.htmlhttp://www.justice.gov/opa/pr/2012/May/12-tax-573.htmlhttp://www.justice.gov/opa/pr/2012/May/12-tax-573.htmlhttp://mailto:[email protected]/http://mailto:[email protected]/http://paper.li/douglasmcnabb/1311894940http://paper.li/douglasmcnabb/1311894940http://mcnabbassociates.com/federal-crimes-video.html#Federal-Mail-Fraud-Crimeshttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Detention-Hearinghttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Federal-Indictmenthttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Be-Proactivehttp://mcnabbassociates.com/federal-crimes-video.html#Federal-Crimes-Be-Careful


12/13

12 Federal Criminal Defense LawyersStudent forgotten in cell for 5 days will sueDEAMcNabbAssociates, P.C. (Federal Criminal DefenseLawyers)


CNN on May 2, 2012 released thefollowing:By Alan Duke, CNNLos Angeles (CNN) A San Diego

college student filed a legal claimWednesday for damages suffered when hewas left handcuffed and without food orwater in a Drug EnforcementAdministration holding cell for five dayslast month.A DEA statement said Daniel Chong, 23,

was accidentally left in a holding cell.Accidentally? He almost died, said

Chongs lawyer, Gene Iredale. Itsinexplicable.Chong drank his own urine to survive as

his cries for help were ignored by federalagents and inmates in nearby cells, Iredalesaid.The fifth-year engineering student at the

University of California, San Diego, wasdetained on the morning of April 21, aSaturday, when DEA agents raided ahouse they suspected was being used todistribute MDMA, commonly known asecstasy.A multi-agency narcotics task force

including state agents detained ninepeople and seized about 18,000 MDMApills, marijuana, prescription medications,hallucinogenic mushrooms, several gunsand thousand