Archives : fraud
111 People Indicted In Nation’s Biggest Fraud Ring
Under New York Penal Code Laws (Sections 190.25,190.65 and 190.78 -190.86) you could be charged and convicted of criminal personal identity theft for knowingly impersonating or presenting yourself as one or more persons and/or using personal identifying information, including a credit card, with the intent of benefit and/or to injure, defraud or cause such person or persons financial loss. Depending on the amount of goods involved and the number of identify fraud victims, you could either be charged with identify theft of the third degree Class A misdemeanor or higher (Penal Code Section 190.78,190.81-one or more persons defrauded), second degree Class E felony (Penal Code Section 190.79, 190.82-one or more persons defrauded in property in excess of $500) or first degree class D felony (Penal Code Section 190.80,190.83-one or more persons defrauded of property in excess of $2,000). It is also a crime to be in possession of a skimmer device, and you could be charged with a second degree class A misdemeanor (Penal Code Section 190.85) or a first degree Class E felony (Penal Code Section 190.86) if you have been convicted within the last five years of identity theft.
You could also be charged with grand larceny of the fourth degree (Penal Code 155.30-Class E felony), grand larceny in the third degree (Penal Code Section 155.35-Class D felony), grand larceny in the second degree (Penal Code Section 155.40-Class C felony) or grand larceny in the first degree (Penal Code Section 155.42-Class B felony property value exceeds over $1,000,000).
Fines and Sentences:
In New York, you could face a minimum jail sentence of up one year for an identity theft conviction or up 7 years, and fines from $1,000 up to $5,000, and you may also be subject to restitution to the victim under Penal Code Section 60.27. A first degree Class B felony grand larceny conviction carries a sentence up to 25 years imprisonment and a fine up to $25,000.
Credit card fraud and identity theft are also considered federal offenses under 18 U.S.C. Sections 1028 and 1029 when someone knowingly transfers or uses another person’s identification, including a credit card number, with the intent to commit an illegal act or defraud someone to obtain goods or services in excess of $1,000. You could face a fine and/or imprisonment up to 10 years.
Case Example:
New York police have indicted 111 people in the nation’s biggest and the most sophisticated identity theft credit card fraud ring case. “Operation Swiper” began almost two years ago with undercover police and wiretaps of a five group I.D. theft ring based in Ozone Park, Queens. Police reported that the groups sometimes worked together. As of Friday October 7, 2011, police had arrested 85 people and seized handguns, computer electronics and $650,000 in cash during the arrests after searching several homes. Accordingly to New York Police Commissioner, Raymond Kelly, the I.D. theft ring purchased expensive items such as Apple electronics, luxury handbags, shoes and other products with stolen credit card information and then sold it overseas.
The way the I.D. theft ring worked was they hired skimmers who were retail store or other service industry employees who swiped credit card information on a skimming machine in order to steal the information from unsuspecting restaurant patrons and other business customers, as well as bank employees who had information about high end customers. The information was then given to a team of manufacturers in Russia, Libya, Lebanon and China who put it on blank credit cards. These new cards were then used by these five main teams and their criminal shoppers to purchase electronics and luxury items totaling approximately $13 million.
Among those arrested were bank tellers, restaurant workers and other service employees who used the cards also to pay for their luxury shopping sprees and stays at 5 start hotels as well as travel in rented luxury cards and private jets. Communications seized by New York police were in Russian, Arabic, Farsi and other languages, which had to be translated into English. According to New York police, the investigation was primarily centered on an Apple case because thieves can easily sell Apples products overseas.
Hire a Criminal Defense Attorney
Identity theft, credit card fraud and related crimes are serious crimes in New York, and you should hire a New York criminal defense attorney to represent you. The attorney will aggressively defend you by reviewing eyewitness identification statements made against you and raising evidentiary issues at hearings in order to get your charges reduced, attempt to obtain community service, probation or get your case dismissed.
LA Women Pleads Guilty to $6,268,899 in Medicare Fraud
Medicare fraud is a serious federal crime. Medicare fraud crimes occurring in California are investigated by the Medicare Fraud Strike Task Force, part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), which is a joint Department of Justice-HHS effort consisting of federal, state and local investigators.You can stiff face fines, jail time, restitution to victims and insurance companies and loss of your professional healthcare license for committing Medicare fraud.
Acts of Medicare fraud include submitting bills for services that were never performed or submitting other fraudulent cost reports, billing more than once for the same services, falsely certifying or giving false information, ordering unnecessary tests (42 U.S.C. §1347, Social Security Act: 42 U.S.C. § 1320a-7b(a), 42. U.S.C. § 1320a-7a(a)(1)(A) and (B)), kickbacks or self referrals (42 U.S.C. § 1320a-7b(b), 42 U.S.C. § 1320a-7a(a)(7), 42 U.S.C. § 1395nn or the physician self-referral/”Stark” law under 42 U.S.C. § 1395nn(g)(3)). Medicare fraud can be committed by healthcare professionals such as doctors, dentists, chiropractors, physical and occupational therapists, psychologists, psychiatrists, hospitals, clinics, nursing homes, assisted living facilities, HMO’s, medical equipment companies and home health care providers.
Penalties:
Under the Health Insurance Portability Act Health, 42 U.S.C. §1347, anyone who knowingly or willingly defrauds any healthcare benefit program faces a fine or imprisonment for not more than 10 years or both. If bodily injury results because of the fraud, imprisonment may be up to 20 years. If death results because of the fraud, the imprisonment may be any term of years or for life. For making false statements under the Social Security Act, 42 U.S.C. §1320a-7b(a) through (h), you face a fine of not more than $25,000 or imprisonment of not more than 5 years or both per offense.
Sample Case
Carolyn Ann Vasquez, age 46, of Los Angeles plead guilty on March 28, 2011, before U.S. District Judge Terry J. Hatter Jr. in the Central District of California to using fraudulent medical clinics and stolen physician identities to defraud Medicare of approximately $6,268,899 from 2007 to 2008. Ms. Vasquez instructed her co-conspirators to submit false claims to Medicare for reimbursement for services that were never performed by physicians and for power wheelchairs, medical equipment and diagnostic tests that the physicians did not order or prescribe. Vasquez admitted that she had instructed a physician assistant working at one of the fraudulent medical clinics to use clinic/physician prescription pads to write fraudulent prescriptions and order medical services for diagnostic tests, power wheelchairs and other medical equipment in a physician’s name who Vasquez knew did not work at the clinic. A sentencing hearing is scheduled for July 11, 2011. Vasquez could face a maximum 10 years in prison and a $250,000 fine.
The case was brought by the Medicare Fraud Strike Task Force, part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), which is a joint effort between the Department of Justice and HHS. The case is also being investigated by the FBI.
If you are arrested or accused of Medicare fraud, you should hire a California Medicare fraud attorney to defend you. The attorney may be able to raise the defenses of mistake, misunderstanding, that you are a victim and you may be able to testify against those who committed the fraud, or argue illegal evidence or violation of civil rights to get your case dismissed or charges reduced to a lesser offense and/or penalties.
How Can a California Criminal Defense Attorney Help Me With My Counterfeiting Case?
Under California Penal Code Sections 470 through 483.5, any person who intends to default someone by creating a new document and signing their name which may include falsifying any record, publishing or passing it off as a true and genuine check, bond, bank bill, cashier’s check, traveler’s check, money order, note, raft, or controller’s warrant for payment of money or accepting goods is guilty of the crime of forgery in California.
California Penal Code Section 477 defines counterfeiting as making an imitation of something that is not authorized including gold or silver coins, gold dust, gold or silver bullion or bars, lumps, pieces, or nuggets, and selling, passing, giving someone payment for the counterfeit item with the intention of defrauding another person and knowing the item is counterfeit, is guilty of counterfeiting in California.
Penalties and Fines
Forgery in California is punishable by imprisonment in county jail or state prison for up to one year. If the forgery involves the willful and knowingly use of a telephone or telegraph the fine is up to $10,000.
Counterfeiting in California is punishable by imprisonment in the state prison for two to four years. This includes crimes of making or knowingly having in your possession a die, plate or any other machine that is used in counterfeiting gold or silver bars, coins, pieces, nuggets or counterfeiting bank notes or bills. All such apparatus must be destroyed. Counterfeiting, forging or altering a ticket, coupon, check or passing or publishing the item in circulation is subject to a fine up to $1,000.
Case Example
Los Angeles Police Department and investigators from private industries led to the seizure by LAPD of $4.06 million in counterfeit goods ranging from music CD’s and DVD’s of brand new released movies as well as purses, jerseys, sunglasses and other knock off goods. The raids started last month and ended Monday December 20, 2010. The merchandise was seized from downtown vendors and flea markets along Santee Alley, which is a favorite spot for counterfeiters to sell their goods. Authorities stated that criminal gangs were involved in the piracy activity. This was the latest in arrests by LAPD’s antipiracy team which has seized $93.8 million in illegal goods since the start of the team in 2004. Investigators estimate that counterfeit goods cost local businesses $5.2 billion in lost revenues annually and $4.4 billion in lost wages annually.
Committing forgery or fraud in California is serious. You should hire a California criminal defense attorney to represent you. The attorney will review the evidence and interview police and witnesses to see if there is enough evidence in which to convict you. The attorney will assist with getting your chargers reduced or dismissed for insufficient evidence or illegal search and seizure.
Hewitt Employees Face Felony Charges
Three former employees of Hewitt Associates, a Chicago-based human resources firm, face felony charges for allegedly defrauding the company out of tens of thousands of dollars in tuition reimbursements.
Those recently charged include Channel Clemons, 33, Kristopher McLendon, 30, and Kenya McMillan, 28. These three are among a group of 14 former employees all suspected of scamming Hewitt out of over $100,000 tuition reimbursements.
While Clemons, McLendon and McMillan are the latest to have been arrested, they also face the most serious charges: In addition to being charged with forgery (which is the only charge their other 11 co-workers face), McLendon and McMillan also face charges of class-three felony theft. Clemons has been charged with felony forgery and class-two felony theft.
A class-two felony theft charge generally indicates that more money has been taken, the defendant has a record of theft or violence was used during the theft.
Details of the Case
According the Hewitt’s records, this group of employees had been collecting fraudulent payments for tuition reimbursements since October 2005.
Hewitt has a policy of repaying employees up to $5,000 for the cost of further education and/or training. To claim such reimbursements, employees are required to submit paperwork verifying they have enrolled in and ultimately completed the course or program. Employees also have to submit their final grades, as company reimbursements are only granted if students have performed adequately in the course.
According to authorities, each of the 14 employees facing felony charges scammed tuition reimbursements by doing one or more of the following:
- Submitting enrollment paperwork but failing to attend the stated classes
- Failing to complete classes despite turning in paperwork that stated they had completed the courses
- Forging grades on paperwork submitted to ensure they would receive reimbursements
Police Investigation Continues
Police are continuing to investigate this string of forgery and theft. Although they expect that more will be arrested in this case, authorities have stated that they don’t suspect that these employees acted together or as part of some conspiracy.
(Source: The Chicago Daily Herald)
Have you been charged with a crime? If so, contact us today to talk to an experienced criminal law attorney who will provide you with the legal support you need to get your charges reduced, if not dropped altogether.
Health Care Fraud Through Identity Theft and Impersonation
By Brian Barrido, Attorney at Law and Jay Mykytiuk
Health care fraud is committed when someone intentionally submits, or causes someone else to submit, false or misleading information for use in determining the amount of health care benefits payable. One of the most common varieties of health care fraud is perpetrated through medical identity theft. Medical identity theft occurs when someone uses another person’s health insurance card or identification with or without her permission to obtain medical services. An insured person commits fraud when he lends his health insurance card to another, who then impersonates the insured in order to receive free care. An uninsured person commits fraud when she impersonates the insured to receive benefits she is not entitled to. Sometimes the imposter has permission from the insured. Other times, the imposter has stolen the insureds insurance information and used it without permission. Each activity is a crime.
Consequences of Health Care Fraud
Health care fraud is not a victimless crime. Medical identity theft can have dire consequences for the individual whose identity is fraudulently used. It sometimes results in erroneous entries on that persons current medical records or the creation of brand new, fictitious medical records in the victims name. For the victim, this may mean that a false medical and financial history that follows them around for years. Imagine failing a physical required for employment due to a disease in your records that does not belong to you, or receiving a co-pay bill for a surgery that you never underwent. These are only a sample of the personal consequences of medical identity theft.
Beyond the personal effects, health care fraud, including medical identity theft, also has a negative impact on the healthcare system as a whole. It is estimated that losses due to fraud add $100 billion to the annual cost of health care in the United States. For most employers, fraud increases the cost of providing benefits to their employees and, therefore, their overall cost of doing business. That translates into higher premiums, taxes, and out-of-pocket expenses as well as reduced benefits and diminished quality of care.
Allowing Others To Use Your Health Care Information Could Lead to Prosecution
Whether you allow someone to use your health care information, or you wrongfully use some elses information, you can be prosecuted for fraud. Health care providers and law enforcement have begun to aggressively pursue those who commit health care fraud. Health care fraud can be prosecuted both civilly and criminally under a variety of statutes and regulations. The nations largest healthcare network, Blue Cross/Blue Shield estimates that they pursued more than 20,000 cases of health care fraud last year, with 606 cases referred to law enforcement agencies. Of the referrals, 206 resulted in criminal convictions (see http://www.bcbs.com/antifraud).
Too many people do not realize the cost to individuals and the health care industry, which are incurred through health care fraud. For this reason many people do not believe health care fraud to be a serious crime. Penalties for health care fraud can be severe. Depending upon which statute an offender is prosecuted under, each count could carry a maximum penalty of 10 years. Fraud resulting in bodily injury to the insured carries a penalty of up to 20 years. If authorities or a private insurer wants to investigate you for health care fraud, you should immediately contact an attorney.
