Orange County Doctor Sentenced to 18 Months in Prison for Billing for Cancer Meds That Were Never Provided

 SANTA ANA, CA—An Orange County cancer doctor was sentenced this morning to 18 months in federal prison for fraudulently submitting bills for approximately $1 million worth of injectable cancer medications that never were provided.

Dr. Glen R. Justice, 66, of Corona del Mar, was sentenced by United States District Judge Cormac J. Carney. Justice pleaded guilty in May 2010 to five counts of health care fraud.

Justice, who ran the Pacific Coast Hematology/Oncology Medical Group in Fountain Valley, defrauded health insurance providers, including the Medicare program, by billing for injectable cancer medications when patients never received those medications. In some instances where patients did receive medications, Justice “upcoded” claims made to health insurance providers by falsely claiming that he administered more expensive injectable medications than were actually given to patients.



The medications involved in the scheme included Neulasta, Neupogen, Procrit/Epogen/Aranesp, and Neumega. Justice’s scheme ran from at least 2004 through October 2009, despite being advised by staff about the improper billing and the execution of a search warrant at his medical group in November 2006. In a plea agreement filed in court, Justice acknowledged that the public and private health insurance providers—including Medicare, Tricare, carriers contracted with the federal government through the Federal Employee Health Benefit Program, and Blue Cross and Blue Shield of California—suffered losses of between $400,000 and $1 million.

During today’s sentencing hearing, Justice did not contest government allegations that he had violated his plea agreement by continuing to submit fraudulent bills after he signed the agreement in March 2010.

In addition to the prison term, Judge Carney ordered Justice to pay $1,004,689 in restitution.

This case is the product of a joint investigation by the Federal Bureau of Investigation, the U.S. Department of Health & Human Services - Office of Inspector General, IRS-Criminal Investigation, and the Department of Defense - Office of Inspector General.

CONTACT:
Assistant United States Attorney Jeannie M. Joseph (714) 338-3576

Source: http://www.fbi.gov/losangeles/press-releases/2011/orange-county-doctor-sentenced-to-18-months-in-prison-for-billing-for-cancer-meds-that-were-never-provided

TSA Officer Indicted in Series of Thefts from Luggage

LOS ANGELES—A federal grand jury this afternoon indicted an officer with the Transportation Security Administration on theft charges related to watches and a pre-paid debit card that were stolen from the luggage of airline passengers at Los Angeles International Airport.

Paul Yashou, 38, of Torrance, was named in a five-count indictment that charges him with two felony and three misdemeanor theft counts.

The indictment alleges that Yashou stole four watches and the debit card from luggage going through security screening in Terminal 1 at LAX.

The indictment specifically alleges that Yashou stole an IWC GST chrono perpetual calendar moonphase watch valued at approximately $15,000, a Breitling Crosswind watch valued at approximately $5,000, a $1,000 Antima watch, a $1,000 Movado watch, and a $1,000 pre-paid debit card.

The investigation in this case started when the owner of the IWC watch noticed that his watch had been offered for sale on eBay. The investigation revealed that Yashou had sold the watch to the jewelry store that was offering the watch for sale on the Internet.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.

The two felony counts in the indictment, which relate to the IWC and Breitling watches, each carry a statutory maximum penalty of 10 years in federal prison. The three misdemeanor charges each carry a maximum sentence of one year in prison.

Yashou will be summoned to appear in United States District Court for an arraignment on August 3.
The case against Yashou was investigated by the Federal Bureau of Investigation, the Los Angeles Police Department and the Los Angeles Airport Police.

CONTACT:
Assistant United States Attorney Meghan A. Blanco
Public Corruption and Civil Rights Section
(213) 894-2253
Release No. 11-102
Source: http://www.fbi.gov/losangeles/press-releases/2011/tsa-officer-indicted-in-series-of-thefts-from-luggage

Foreclosure Fraud

A few years ago my wife and I tried to refinance our home after hearing a commercial. I blogged about it HERE and HERE. We gave a company a $995 deposit and then were denied the refinance and a refund as had been promised.  We eventually got our money back thanks to Visa.  As it turns out, the same firm (IGS) and person (Kahram Zamani) who tried to screw us out of $995 did it to hundreds of other people and has since been charged with several felonies by the Orange County DA.

So, just how serious are these types of consumer fraud?  Try 25 years in federal prison!

The FBI released the following story which will surely leave you shaking your head.

  

Foreclosure Fraud
Victims Lose Their Shirts…and Their Homes

He was their last hope—about 250 Southern California homeowners facing foreclosure and eviction believed him when he said he said could save their homes.

Seven Real Estate Professionals Indicted for Mortgage Fraud

SACRAMENTO, CA—United States Attorney Benjamin B. Wagner announced today the unsealing of an indictment charging seven real estate professionals with conspiracy to commit wire fraud in connection with a mortgage fraud scheme. The indictment was returned by a federal grand jury on July 14, 2011.

Charged in the case are Moctezuma Tovar, 42; Manuel Herrera, 31; Ruben Rodriguez, 34; and Jaime Mayorga, 32, all licensed real estate agents residing in Sacramento; Sandra Hermosillo, 49, of Woodland, formerly a loan officer; Jun Michael Dirain, 38, of Antelope, formerly a loan processor; and Christian Parada Renteria, 35, of Sacramento, formerly a loan officer. The indictment alleges that Tovar owned and operated Delta Homes and Lending Inc, a real estate and mortgage lending company where he and the other defendants were employed. Between October 2004 and May 2007, the defendants are alleged to have conspired to obtain home loans from mortgage lenders based upon false and fraudulent loan applications and supporting documents that falsely represented the borrowers’ assets and income, liabilities and debts, employment status, and citizenship status. The indictment alleges that, as part of the scheme, the defendants provided money to borrowers in order to fraudulently inflate the borrowers’ assets and bank account balances. Once the defendants had secured approved loans based upon their fraudulent representations to lenders, the borrowers returned the money the defendants had provided for the scheme. The indictment alleges that mortgage lenders and others suffered losses of at least $4 million, and that the aggregate sales prices of the homes involved in the conspiracy exceeded $10 million.

This case is the product of an extensive investigation by the Federal Bureau of Investigation. Assistant United States Attorney Dominique N. Thomas is prosecuting the case.

U.S. Attorney Wagner said: “Fraud schemes such as the one alleged in this case, in which real estate professionals submitted false information and phony documents to obtain mortgage loans, are one of the major reasons why this part of California was hit with a foreclosure crisis that negatively impacted home values for many, many homeowners. This office will continue to root out and prosecute fraudsters in the residential real estate industry.”

If convicted, the defendants face a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

The charges are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Mortgage fraud is a priority area for the President’s Financial Fraud Enforcement Task Force. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov.

Source: http://www.fbi.gov/sacramento/press-releases/2011/seven-real-estate-professionals-indicted-for-mortgage-fraud

FBI Seeks La Habra Man

La Habra Man Charged with Defrauding Elderly Couple Considered Fugitive, Wanted by the FBI

A La Habra man charged with defrauding an elderly couple is being sought by the FBI after he failed to appear for a court hearing on June 27th, 2011.

John Arthur Walthall, 55, was arrested by the FBI in 2009 for defrauding an elderly Laguna Nigel couple out of nearly $5 million, according to an indictment returned by a federal grand jury in Orange County. Walthall faces charges including multiple counts of wire fraud. The indictment states that the victims, both of whom were in their late 80s, gave Walthall more than $4.7 million dollars to invest in technology aimed at finding gold in abandoned mines.

Walthall’s trial is currently scheduled for September 13, 2011. A recent motion was filed by the government seeking to revoke Walthall’s bond due to findings that he had been exaggerating a medical condition in order to avoid trial. On June 23, 2011, Judge Andrew J. Guilford ordered Walthall to appear at a hearing to address the government’s motion on June 27, 2011 at 3:00p.m. Walthall did not appear at the hearing and Judge Guilford issued a bench warrant for his arrest.

Walthall is described as follows:
Race: White
DOB: 9/13/55
Hair: Brown
Height: 5’8”
Eyes: Hazel
Weight: 195

A Department of Motor Vehicles photograph of Walthall, dated March 2010, is being released to the media.
According to the indictment, Walthall convinced the victims to invest in a partnership called “Advanced Recycling General Partners,” for the purported purpose of searching for and extracting gold from old mines. Walthall allegedly told the elderly couple that he had invested more than $3 million of his own money in more than a decade worth of research in the gold extraction process.

The large majority of the couple’s money was not used for its intended purpose, but was used by Walthall for his own gold investments and personal expenses, including making alimony and child support payments for his four children; paying rent and other living expenses. In addition, Walthall allegedly used investor money to purchase multiple vehicles and luxury items: among them a $10,000 payment to a film school and a hyperbaric oxygen chamber worth approximately $60,000.

When Walthall was arrested in 2009, agents found approximately $500,000 in gold coins under his bed during a search of his residence. Agents also seized three vehicles Walthall had purchased with investor money, including two Ford Excursions and a Ford 450 pick-up truck.

Anyone with information as to the whereabouts of Walthall is urged to contact the FBI 24 hours a day at 888 CANT HIDE (888 226-8443).

This continuing investigation is being conducted by the FBI. Walthall will be prosecuted by the United States Attorney’s Office in the Central District of California. All defendants are presumed innocent until proven guilty.

PRESS CONTACT:
FBI Media Relations: Laura Eimiller, 310 996-3343
United States Attorney’s Office: Thom Mrozek, 213 894-6947

BROOKLYN MAN CONVICTED OF CONSPIRACY TO KILL U.S. SOLDIERS

BROOKLYN MAN CONVICTED OF CONSPIRACY TO KILL U.S. SOLDIERS ABROAD AND ATTEMPTING TO PROVIDE MATERIAL SUPPORT TO AL-SHABAAB

BROOKLYN, NY – Following a two-week trial in the Eastern District of New York, a federal jury convicted Betim Kaziu today of conspiring to commit murder overseas, conspiring to provide material support to terrorism, attempting to provide material support to a foreign terrorist organization, and conspiring to use a machine gun in furtherance of those crimes. The evidence at trial established that the defendant traveled from Brooklyn to Cairo, Egypt, in February 2009 in order to wage violent jihad against United States troops in the Middle East and the Balkans. While in Cairo, the defendant also attempted to acquire automatic weapons and to travel to Somalia to join al-Shabaab, a Somali terrorist organization allied with al-Qaeda. Ultimately, the defendant traveled to Kosovo in an effort to target American troops stationed there, or to travel onward to Pakistan to join al-Qaeda.

While in the Balkans, the defendant recorded a martyrdom video on the Albanian coast of his “last few moments” before he expected to depart for jannah, or paradise reserved for martyrs. Shortly thereafter, on August 27, 2009, the defendant was arrested in Kosovo by the Kosovo Police Service. He was then transferred to the custody of agents and detectives of the New York Joint Terrorism Task Force to face terrorism charges filed in the Eastern District of New York. At the time of his arrest, the defendant had already purchased a ticket to travel to Pakistan on September 15, 2009.

Testimony at trial established that the defendant had been radicalized, in part, by Internet speeches by Anwar al-Awlaki and propaganda videos produced by al-Qaeda and al-Shabaab. The government also introduced at trial evidence from the defendant’s social networking website, including quotes by Osama Bin Laden.

The defendant faces a sentence of up to life in prison. Sentencing has been scheduled for November 4, 2011.

The convictions were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York. The case was investigated by the Federal Bureau of Investigation (FBI) Joint Terrorism Task Force in New York.

“Through our judicial system, we have brought to justice a homegrown terrorist who conspired to kill U.S. troops overseas,” stated United States Attorney Lynch. “We are committed to using all available tools to combat terrorism wherever it threatens our citizens and our country.” Ms. Lynch thanked the government of Kosovo, the U.S. State Department, the Department of Justice Office of International Affairs, and the New York City Police Department for their assistance.

The government’s case was prosecuted by Assistant United States Attorneys Shreve Ariail, Seth D. DuCharme and Ali Kazemi, with assistance provided by Joanna Baltes of the National Security Division.

Source: http://www.justice.gov/usao/nye/pr/2011/2011jul07.html

FBI Warns Internet Users of Trojan

Email Impersonating The FBI Containing A Trojan

Another fraudulent email campaign has begun claiming to be from the FBI telling recipients they have visited 40 illegal websites. The IC3 ("Ice Cube") issued warnings about these particular email campaigns in 2005 and 2006 by releasing three PSAs on February 23, 2005, November 22, 2005, and July 24, 2006. The fraudulent email mentioned in the first PSA claimed the FBI logged the recipient's IP address on more than 40 illegal websites. The next two PSAs mentioned the emails that claimed the FBI logged the recipient's IP address on more than 30 illegal websites. All the emails instructed the recipient to answer questions in the attachment, which contained malware.

The PSA from February 23, 2005 stated the FBI has become aware of spam email fraudulently claiming to be from fbi.gov accounts. The email appeared to be sent from the email addresses of police@fbi.gov, fbi@fbi.gov, officer@fbi.gov, and web@fbi.gov. The recipients were told the FBI had logged their IP addresses on more than 40 illegal sites. The email instructed them to answer questions in the attachment, which contained a W32.Sober.K@mm worm.

In 2005, the IC3 began seeing complaints reporting fraudulent emails purportedly from the FBI claiming the recipient went to more than 30 illegal sites. The IC3 received over 5,300 related complaints in that year alone. The number of related complaints drastically dropped the following year to approximately 130 complaints. After 2006, the IC3 has only received two related complaints, one in 2007 and one in 2008.

Also in 2005, the IC3 began seeing complaints reporting fraudulent emails purportedly from the FBI claiming the recipient went to more than 40 illegal sites. That year, a total of approximately 1,600 related complaints were filed. No other complaints were reported until the beginning of this year, with more than 300 so far being filed.

As in the earlier email versions mentioned above, fraudsters are still using spoofed email addresses with an fbi.gov email extension. Recipients are still being told the FBI has logged their IP address on more than 40 illegal sites, and they need to answer the questions in the attachment, which contains malware.

Source: http://www.ic3.gov/media/2011/110714.aspx

New Hampshire Man Pleads Guilty to Computer Intrusion into Former Employer’s Computer Systems

WASHINGTON - Lawrence R. Marino, a 41-year-old from Goffstown, N.H., pleaded guilty today in federal court to computer intrusion, stemming from his repeated hacks into his former employer’s computer systems, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and Acting U.S. Attorney Michael J. Gunnison for the District of New Hampshire.

Marino pleaded guilty before U.S. District Court Judge Steven J. McAuliffe in Concord, N.H., to a one-count criminal information charging him with computer intrusion.  

Marino admitted at the plea hearing that from May 2009 through September 2009, he repeatedly hacked into the computer systems of his former employer, OneSky Jets. OneSky, which is based in Manchester, N.H., provides charter flight services to customers around the country.   According to the criminal information, while employed at OneSky, Marino acquired other employees’ log-in credentials for their OneSky email accounts.   After Marinos’ employment at OneSky was terminated, he began working for a Regent Jet, a competitor private jet company.   While employed at Regent Jet, Marino repeatedly accessed the email accounts of OneSky employees and obtained information about OneSky’s existing and prospective customers.   Marino also hacked into OneSky’s computer system and obtained a copy of a database with tens of thousands of customer names and other information.   According to the court document, Marino used this illegally-obtained customer information to then solicit new customers on behalf of Regent Jet.

A sentencing hearing has been scheduled for Oct. 17, 2011, at 11:30 a.m. EDT.   At sentencing, Marino faces a maximum penalty of five years in prison and a fine of up to $250,000, and restitution.

The case was investigated by the FBI.   The case is being prosecuted by Assistant U.S. Attorney Arnold Huftalen of the U.S. Attorney’s Office for the District of New Hampshire and Mona Sedky of the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division.

Source: http://www.justice.gov/opa/pr/2011/July/11-crm-917.html

Army Private Charged with Attempting to Board Flight While Possessing Small Amount of Explosive

U.S. Attorney’s Office - District of Arizona
July 14, 2011

YUMA, AZ—United States Army Private First Class Christopher Eric Wey, 19, was arrested and charged today with Attempt to Carry an Explosive on an Aircraft and Transportation of a Stolen Explosive.

On Wednesday, July 13, Wey attempted to board a United Airlines flight from Yuma, Ariz., to Los Angeles. During a standard Transportation Security Administration (TSA) screening at the Yuma International Airport, security officers detected the presence of explosives in Wey’s baggage. TSA personnel subsequently found one-half ounce of C4 explosive hidden in a tobacco can inside one of Wey’s bags. Wey was detained for investigation, and interviewed by Special Agents of the Federal Bureau of Investigation.

The Complaint alleges that Wey stole the C4 while attending a recent explosive training course. Authorities found no evidence to believe that Wey intended any harm with the small amount of explosives in his possession.

A conviction for Attempt to Carry an Explosive on an Aircraft and Transportation of a Stolen Explosive carries a maximum penalty of 10 years’ imprisonment, and a $250,000 fine. In determining an actual sentence, the sentencing judge will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. The judge, however, is not bound by those guidelines in determining a sentence.

A criminal complaint is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution is being handled by John Boyle, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER: CR-11-9699-M
RELEASE NUMBER: 2011-149(Wey)

Source: http://www.fbi.gov/phoenix/press-releases/2011/army-private-charged-with-attempting-to-board-flight-while-possessing-small-amount-of-explosive