May 16, 2013
The U.S. Drug Enforcement Administration (DEA) on May 16, 2013 released the following press release:
“MAY 16 (WASHINGTON) –Today the United States Drug Enforcement Administration (DEA) made the synthetic cannabinoids UR-144, XLR11, and AKB48 Schedule I, illegal drugs under the Controlled Substances Act (CSA) for the next two years. These cannabinoids are often seen in so-called “fake pot” products that are falsely marketed and sold as “herbal incense” or “potpourri” products on the Internet and by a variety of retail stores.
Synthetic cannabinoids refer to a family of substances that act on the brain similar to delta-9 THC, the main psychoactive constituent of cannabis. The actual chemical names of today’s controlled cannabinoids are:
- (1-pentyl-1H-indol-3-yl)(2,2,3,3-tetramethylcyclopropyl)methanone (UR-144);
- [1-(5-fluoro-pentyl)-1H- indol-3-yl](2,2,3,3-tetramethylcyclopropyl)methanone (5-fluoro-UR-144, XLR11); and
- N-(1-adamantyl)-1-pentyl-1H-indazole-3-carboxamide (APINACA, AKB48).
This action is based on a finding by DEA’s Deputy Administrator Thomas Harrigan that the placement of these synthetic cannabinoids into Schedule I of the CSA is necessary to avoid an imminent hazard to the public safety. The DEA published a notice of its intent to do this and issued a press release about it on April 12, giving makers, sellers, and other possessors of these drugs a month to rid themselves of their current stocks and to cease making or buying more.
Over the past three years, smokable herbal blends containing synthetic cannabinoids have been marketed under the guise of being “legal” and have become increasingly popular, particularly among teens and young adults. These products consist of plant material that has been laced with these cannabinoids. These substances have not been approved by the FDA for human consumption or for medical use. The long-term physical and psychological effects of these substances and their associated products are unknown but are potentially severe, and psychotic and violent behavior has been observed in short-term users of these products.
During the next two years, DEA will work with the U.S. Department of Health and Human Services (DHHS) to determine if these chemicals should be made permanently illegal.
Click here for a copy of the Final Order and here for an explanation of the process under the CSA for temporarily and permanently scheduling drugs and chemicals.”
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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:
Federal Crimes – Be Careful
Federal Crimes – Be Proactive
Federal Crimes – Federal Indictment
Federal Crimes – Detention Hearing
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To find additional federal criminal news, please read Federal Criminal Defense Daily.
Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.
The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.
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Posted by McNabb Associates, P.C.
May 16, 2013
The U.S. Department of Justice Office of Public Affairs on May 16, 2013 released the following:
“Doctors Maintained Offshore Bank Accounts at UBS and Other Foreign Banks That Concealed Income and Assets from the IRS
Drs. David Leon Fredrick and Patricia Lynn Hough, of Englewood, Fla., were indicted by a federal grand jury in Fort Myers, Fla., for conspiring to defraud the Internal Revenue Service (IRS) by concealing millions of dollars in assets and income in offshore bank accounts at UBS and other foreign banks, the Department of Justice and IRS announced today.
According to the indictment, Fredrick and Hough, married doctors, served on the Board of Directors of two Caribbean-based medical schools – one located on Saba, Netherlands Antilles, and one located on Nevis, West Indies. Fredrick had an ownership interest in the medical school on Nevis until 2007, when both medical schools were sold.
The indictment alleges that Fredrick and Hough conspired with each other and with Beda Singenberger, a citizen and resident of Switzerland who is under indictment in the Southern District of New York, and a UBS banker to defraud the IRS. They carried out the conspiracy by creating and using nominee entities and undeclared bank accounts in their names and the names of the nominee entities at UBS and other foreign banks to conceal assets and income from the IRS, including the sale of real estate associated with the medical school on Saba and shares they owned in the medical school on Nevis. The real estate was sold for more than $33 million, all of which was deposited into one of their undeclared accounts in the name of a nominee entity.
It is further alleged in the indictment that Fredrick and Hough used emails, telephone and in-person meetings to instruct Swiss bankers and asset managers to make investments and transfer funds from their undeclared accounts at UBS. It is alleged that Fredrick and Hough caused funds from the medical schools’ undeclared accounts to be transferred to undeclared accounts in their individual names or in the names of nominee entities. Fredrick and Hough then used the funds in their undeclared accounts to purchase an airplane, two homes in North Carolina and a condominium in Sarasota, Fla. Fredrick also transferred more than $1 million to his relatives.
Fredrick and Hough were also charged with four counts of filing false tax returns for 2005, 2006, 2007 and 2008. The indictment alleges that Fredrick and Hough filed false tax returns which substantially understated their total income and failed, on Schedule B, Parts I and III, to report that they had an interest in or signature or other authority over bank, securities or other financial accounts located in foreign countries. U. S. citizens, resident aliens and legal permanent residents of the United States have an obligation to report to the IRS on the Schedule B of a U.S. Individual Income Tax Return, Form 1040, whether they had a financial interest in, or signature authority over, a financial account in a foreign country in a particular year by checking “Yes” or “No” in the appropriate box and identifying the country where the account was maintained. U. S. citizens and residents also have an obligation to report all income earned from foreign bank accounts on their tax returns.
A trial date has not been scheduled. An indictment is merely an accusation, and every defendant is presumed innocent unless and until proven guilty.
The conspiracy charge carries a maximum potential penalty of five years in prison and a $250,000 fine. The false return charges each carry a maximum potential penalty of three years in prison and a $250,000 fine.
This case is being prosecuted by Trial Attorney Caryn Finley of the Justice Department’s Tax Division and was investigated by IRS – Criminal Investigation.”
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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:
Federal Crimes – Be Careful
Federal Crimes – Be Proactive
Federal Crimes – Federal Indictment
Federal Crimes – Detention Hearing
Federal Mail Fraud Crimes
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To find additional federal criminal news, please read Federal Criminal Defense Daily.
Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.
The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.
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Posted by McNabb Associates, P.C.
May 16, 2013
The U.S. Department of Justice Office of Public Affairs on May 16, 2013 released the following:
“An Oregon man has been charged with allegedly orchestrating a $50 million securities fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Laura E. Duffy of the Southern District of California.
Bradley Holcom, 55, of Canby, Ore., was arrested Tuesday following his indictment in U.S. District Court for the Southern District of California. The indictment, which was filed on May 9, 2013, and unsealed late yesterday, charges Holcom with eight counts of mail fraud, four counts of wire fraud and one count of securities fraud.
According to the indictment, Holcom made false statements to investors in connection with the sale of approximately $50 million worth of promissory notes that he sold to more than 150 investors located throughout the United States from at least 2004 through 2010. The indictment alleges that Holcom solicited investors to provide funds for the development of raw land for commercial and residential purposes through an investment program he operated called the Trust Deed Investment Program. Holcom allegedly falsely told investors who purchased notes through the Trust Deed Investment Program that they would receive a lien on a specific piece of property he was developing and that the lien would be in first position, which would allow investors to directly foreclose on the underlying development property if Holcom was unable to repay the principal due under the notes.
Despite his statements to investors, Holcom allegedly never provided investors with a lien on the property he was purportedly developing and instead conveyed to investors a lesser interest that did not allow investors to directly foreclose on the property to protect their investment. In addition, the indictment alleges that while Holcom promised investors that their purported lien would be in first position, Holcom solicited investments for properties that he knew were already encumbered by first position liens.
According to the indictment, Holcom also allegedly sold properties that were supposedly serving as the security for investors without informing investors that the property they had financed for development was gone.
The indictment alleges that by approximately 2008, Holcom’s financial condition had seriously deteriorated, but he continued to solicit investors for new funds by making misrepresentations about his true financial condition and the manner in which he was using investor money.
The maximum penalty for each wire fraud and mail fraud count is 20 years in prison. The count of securities fraud carries a maximum penalty of 25 years in prison.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This case was brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit http://www.StopFraud.gov .
This case was investigated by the FBI’s Phoenix Division – Yuma Resident Agency. The case is being prosecuted by Trial Attorney Henry P. Van Dyck and Deputy Chief Daniel Braun of the Criminal Division’s Fraud Section, and by Assistant U.S. Attorney Stephen Clark of the U.S. Attorney’s Office for the Southern District of California. The department recognizes the substantial assistance of the U.S. Securities and Exchange Commission.”
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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:
Federal Crimes – Be Careful
Federal Crimes – Be Proactive
Federal Crimes – Federal Indictment
Federal Crimes – Detention Hearing
Federal Mail Fraud Crimes
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To find additional federal criminal news, please read Federal Criminal Defense Daily.
Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.
The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.
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Posted by McNabb Associates, P.C.
May 16, 2013
RT on May 15, 2013 released the following:
“The US Department of Homeland Security seized a payment processing account Tuesday belonging to Mt. Gox, the largest international Bitcoin trader, claiming the monetary exchange service falsified financial documents.
The American government has previously made it clear that officials are watching Bitcoin, a decentralized economic currency that international regulators have not yet been able to control. Many of those who favor Bitcoin use Dwolla, an Iowa-based startup that allows customers to transfer their dollars into Bitcoins.
Unfortunately for those consumers, the Department of Homeland Security issued a warrant Tuesday effectively shutting down Dwolla’s ability to process Bitcoin payments, as reported by CNET. Whether because of the DHS’ charge of operating an “unlicensed money transmitting business,” the sudden timing of the allegations, or another reason, Dwolla and Mt. Gox officials have been reluctant to comment.
“In order not to compromise this ongoing investigation being conducted by ICE Homeland Security Investigations Baltimore, we cannot comment beyond the information in warrant, which was filed in the District of Maryland [Tuesday],” said Nicole Navas, a representative for US Immigration and Customs Enforcement.
The warrant claims Mt. Gox CEO Mark Karpeles did not disclose he operated a financial transfer site when he opened a new bank account for the business. Money transmitting services, according to Gawker, are required to register with the Department of Treasury’s Financial Crimes Enforcement Network (FinCen). Mt. Gox, which is involved in roughly 63 per cent of all Bitcoin purchases, has not done so.
Despite the technicalities skeptics are wondering if Bitcoin’s friction with the Treasury department is the cause of this recent scrutiny. Senator Chuck Schumer (D-New York) said the anonymity afforded by the service provided an “online form of money laundering” and campaigned for its downfall.
“Literally, it allows buyers and users to sell illegal drugs online, including heroin, cocaine, and meth, and users do sell by hiding their identity through a program that makes them virtually untraceable,” Schumer said during a 2011 news conference. “It’s a certifiable one-stop shop for illegal drugs that represents the most brazen attempt to peddle drugs online that we have ever seen. It’s more brazen than anything else by light years.”
Most notably, proponents have asserted that Bitcoin would be impermeable in instances where WikiLeaks, for example, saw its funding evaporate as the federal government pressured PayPal to cut off the whistleblower site’s support network. Bitcoin would be more resistant to a crackdown of that nature.
Jerry Brito, a scholar at the libertarian Mercatus Center at George Mason University, told the Washington Post Bitcoin could reduce the cost of financial services by pioneering new business formats.
“Bitcoin has the potential to be a boon to the economy and a boon to merchants,” he said, adding that it could “disrupt traditional payment networks that have not been innovative for a very long time.”
A blind governmental crackdown would only serve to push Bitcoin further underground, Brito argued.
“You can’t put the genie back into the bottle,” he continued. “I hate to say it, but the Bitcoin community needs to start lobbying. It needs to start educating policymakers, lobbyists and influencers about the pros of Bitcoin and the impossibility or the difficulty in getting rid of all the bad uses.””
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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:
Federal Crimes – Be Careful
Federal Crimes – Be Proactive
Federal Crimes – Federal Indictment
Federal Crimes – Detention Hearing
————————————————————–
To find additional federal criminal news, please read Federal Criminal Defense Daily.
Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.
The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.
Leave a Comment » | Federal Attorney, Federal Crime, Federal Crimes, Federal Criminal Attorney, Federal Criminal Defense, Federal Criminal Defense Attorneys - McNabb Associates, Federal Criminal Lawyer, Federal Lawyer | Tagged: Bitcoin, Bitcoin payment, Bitcoin payments, Bitcoin trader, CEO Mark Karpeles, Department of Homeland Security, Department of Treasury’s Financial Crimes Enforcement Network, District of Maryland, Douglas C McNabb, Douglas McNabb, Dwolla, federal attorney, federal attorneys, federal criminal attorney, federal criminal attorneys, federal criminal defense, federal criminal defense attorney, federal criminal defense attorneys, federal criminal defense lawyer, federal criminal defense lawyers, federal criminal lawyer, federal criminal lawyers, federal lawyer, federal lawyers, Financial Crimes Enforcement Network, FinCen, ICE, international lawyer, Mark Karpeles, McNabb Associates, Mt. Gox, transnational criminal defense, US Department of Homeland Security, US Immigration and Customs Enforcement | Permalink
Posted by McNabb Associates, P.C.
May 16, 2013
The Federal Bureau of Investigation (FBI) on May 15, 2013 released the following:
“Bergen County Woman Indicted in $2 Million Mortgage Fraud Scheme
NEWARK, NJ— A Bergen County, New Jersey woman was indicted today for her role in a long-running, large-scale mortgage fraud scheme that caused millions of dollars in losses, U.S. Attorney Paul J. Fishman announced.
Klary Arcentales, 44, of Lyndhurst, New Jersey, was charged in a five-count indictment with one count of conspiracy to commit bank fraud and four counts of bank fraud, all of which caused losses of at least $2 million.
According to the indictment and other documents filed in this case:
As early as 2006, Arcentales engaged in a mortgage fraud conspiracy through a company called Premier Mortgage Services (PMS). Arcentales, a loan officer at PMS, provided fraudulent documents to financial institutions in connection with mortgage loan applications on behalf of “straw buyers” to induce those financial institutions to fund mortgage loans. Relying upon those false documents, financial institutions funded mortgage loans. Arcentales then profited illegally by receiving a commission from PMS for each mortgage loan that she closed and also profited illegally by diverting portions of the fraudulently obtained mortgage proceeds for herself.
Conspirator Lester Soto, 56, previously charged by complaint, was a part-owner of PMS. He also acted as a loan officer on certain PMS mortgage loan applications. Soto took a percentage of PMS’s profits. Soto employed document makers to create fraudulent documents in furtherance of the scheme and put loan officers at PMS, including Arcentales, in contact with these document makers to create other false and fraudulent documents.
Conspirator Linda Cohen, 55, previously charged by Complaint, was a paralegal who closed transactions on behalf of a licensed New Jersey attorney. Cohen served as the settlement agent on mortgage loans brokered by Arcentales for various properties. Cohen convened closings, received funds from lenders, and prepared HUD-1 forms—which itemize services and fees charged to borrowers for mortgage loans—that purported to reflect the sources and destinations of funds for mortgages on subject properties. In fact, the HUD-1s were neither true nor accurate. At or following the closings, Cohen disbursed mortgage loan proceeds directly to PMS, herself, and others, including in amounts not reflected on the HUD-1s. Cohen received a fee for each fraudulent loan in which she participated.
Conspirator Antonio Pimenta, 45, previously charged by complaint, owned and managed Kelmar Construction Co., which built properties that were then sold to straw buyers utilizing fraudulent mortgage loans brokered by Arcentales.
The indictment charges Arcentales with one count of bank fraud conspiracy and four counts of bank fraud, each punishable by a maximum potential penalty of 30 years in prison and a fine of $1,000,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s charges. Fishman also thanked the Social Security Administration-Office of Inspector General, under the direction of Special Agent in Charge Edward Ryan, for its participation in the investigation.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office General Crimes Unit and Zach Intrater of the Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit http://www.stopfraud.gov.
The charges and allegations contained in the indictment and complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.”
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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:
Federal Crimes – Be Careful
Federal Crimes – Be Proactive
Federal Crimes – Federal Indictment
Federal Crimes – Detention Hearing
Federal Mail Fraud Crimes
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To find additional federal criminal news, please read Federal Criminal Defense Daily.
Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.
The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.
Leave a Comment » | Federal Attorney, Federal Crime, Federal Crimes, Federal Criminal Attorney, Federal Criminal Defense, Federal Criminal Defense Attorneys - McNabb Associates, Federal Criminal Lawyer, Federal Lawyer | Tagged: Antonio Pimenta, bank fraud, Bank Fraud Conspiracy, conspiracy to commit bank fraud, Douglas C McNabb, Douglas McNabb, federal attorney, federal attorneys, federal criminal attorney, federal criminal attorneys, federal criminal defense, federal criminal defense attorney, federal criminal defense attorneys, federal criminal defense lawyer, federal criminal defense lawyers, federal criminal lawyer, federal criminal lawyers, federal lawyer, federal lawyers, financial crimes, Financial Fraud, fraudulent mortgage loan, fraudulent mortgage loans, international lawyer, Kelmar Construction Co, Klary Arcentales, Lester Soto, Linda Cohen, McNabb Associates, mortgage fraud, mortgage fraud conspiracy, mortgage fraud scheme, Premier Mortgage Services, straw buyers, transnational criminal defense | Permalink
Posted by McNabb Associates, P.C.
May 16, 2013
The Federal Bureau of Investigation (FBI) on May 15, 2013 released the following:
“FORT WORTH, TX— Phillip Monroe Ballard, 71, has been charged with murder for hire, United States Attorney Kenneth Magidson of the Southern District of Texas announced today.
The indictment, returned just a short time ago, alleges Ballard solicited the murder for hire of a U.S. District Judge in the Northern District of Texas.
Ballard, currently in federal custody on unrelated charges in the Northern District of Texas, will remain in custody pending further criminal proceedings in this case. He is expected to appear before a U.S. Magistrate Judge in Fort Worth in the near future.
If convicted, Ballard faces up to 20 years in prison and a $250,000 fine.
The case is being investigated by the FBI. Assistant U.S. Attorneys Mark McIntyre and Craig Feazel are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.”
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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:
Federal Crimes – Be Careful
Federal Crimes – Be Proactive
Federal Crimes – Federal Indictment
Federal Crimes – Detention Hearing
————————————————————–
To find additional federal criminal news, please read Federal Criminal Defense Daily.
Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.
The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.
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Posted by McNabb Associates, P.C.
May 15, 2013
The Federal Bureau of Investigation (FBI) on May 14, 2013 released the following:
“LOS ANGELES— Twelve Los Angeles-area residents—including California’s second-largest biller for chiropractic services, a physician’s assistant, and owners of durable medical equipment (DME) and ambulance companies—were taken into custody today in relation to seven criminal cases that allege they cumulatively submitted more than $22 million in false billings to Medicare.
The charges filed in Los Angeles are part of a nationwide “takedown” by Medicare Fraud Strike Force operations in eight cities that led to charges against 89 individuals for their alleged participation in schemes to collectively submit about $223 million in fraudulent claims to Medicare.
The dozen defendants taken into custody are among 13 people charged in Los Angeles in cases that allege health care fraud. The 12 either were arrested this morning or self-surrendered to authorities after learning that they had been charged in federal court. All those defendants are scheduled to be arraigned this afternoon. A 13th defendant is a fugitive.
Dr. Houshang Pavehzadeh, of the Sylmar Physician Medical Group, allegedly billed Medicare more than $1.7 million for chiropractic treatments he never performed. During the scheme, which ran from 2005 through 2012, Dr. Pavehzadeh, 40, of Agoura Hills, became the second-largest Medicare biller in California for chiropractic services—even though he was not in the United States when some of the alleged services were performed. In addition to being charged with health care fraud, Pavehzadeh is charged with aggravated identity theft related to Medicare beneficiaries whose information he used to bill Medicare as a part of the scheme. When investigators tried to conduct an audit of Pavehzadeh’s claims, he falsely reported to the Los Angeles Police Department that he had been carjacked and that patient files requested by the auditors had been stolen from his car. Pavehzadeh surrendered this morning, and he is scheduled to be arraigned with other Los Angeles-area defendants this afternoon in the Roybal Federal Building.
Nine defendants affiliated with DME companies were also charged in five separate indictments.
Olufunke Fadojutimi, 41, of Carson, a registered nurse; Ayodeji Temitayo Fatunmbi, 41, formerly of Carson and now believed to be residing in Nigeria; and Maritza Velazquez, 40, of Las Vegas, were charged with health care fraud. The scheme allegedly revolved around Lutemi Medical Supplies, a DME company Fadojutimi owned and where Fatunmbi and Velazquez worked. According to the indictment in this case, Lutemi billed Medicare more than $8.3 million in claims, primarily for medically unnecessary power wheelchairs. Fadojutimi and Fatunmbi allegedly laundered Medicare funds in order to purchase fraudulent prescriptions for those power wheelchairs and pay illegal kickbacks to recruit Medicare beneficiaries. Fadojutimi was arrested this morning in Los Angeles, while Velazquez was arrested in Las Vegas. Fatunmbi is currently a fugitive being sought by federal authorities.
Susanna Artsruni, 45, of North Hollywood, and Erasmus Kotey, 76, of Montebello, a licensed physician’s assistant, allegedly worked together to commit health care fraud out of a medical clinic on Vermont Avenue where they both worked. Kotey allegedly prescribed medically unnecessary DME, including power wheelchairs, for Medicare beneficiaries. Many of those power wheelchair prescriptions were then used by Artsruni’s DME company, Midvalley Medical Supply, to support fraudulent claims to Medicare. In only four months, the clinic and Midvalley billed Medicare more than $525,000 for these fraudulent claims. Artsruni has previously been convicted of health care fraud and was on pre-trial supervision at the time she allegedly laundered some of the proceeds of this fraud. Artsruni was arrested this morning, while Kotey self-surrendered.
Three other DME cases were also charged, alleging fraudulent Medicare billing for medically unnecessary power wheelchairs that were sometimes never even delivered. In one case, Akinola Afolabi, 53, of Long Beach, the owner of Emmanuel Medical Supply, allegedly submitted more than $2.6 million in false and fraudulent billing to Medicare. In another case, Queen Anieze-Smith, 52, of Encino, and Abdul King-Garba, 47, of Westwood, the owners and operators of ITC Medical Supply, allegedly submitted more than $1.8 million in false and fraudulent billing to Medicare. In the third case, Clement Etim Aghedo, 53, of Fontana, the owner of Ace Medical Supply Company, allegedly submitted more than $1.8 in false and fraudulent claims to Medicare. Afolabi, Anieze-Smith, and King-Garba were all arrested this morning, while Aghedo self-surrendered.
In the seventh case brought as part of today’s takedown, three defendants affiliated with Gardena-based ProMed Medical Transportation, an ambulance company, were charged with submitting more than $5.9 million in false claims to Medicare between 2008 and 2011. ProMed’s owner, Yaroslav Proshak, 45, of Valley Village; general manager Sharetta Wallace, 35, of Inglewood; and office manager and biller Sergey Mumjian, 40, of West Hollywood, submitted claims for medically unnecessary transportation services and then created fake documentation purporting to support those claims. Proshak, Wallace, and Mumjian were arrested this morning.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention and Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and the Department of Health and Human Services to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
The Los Angeles cases announced today are being investigated by a Medicare Fraud Strike Force team, which is composed of agents and investigators with the Federal Bureau of Investigation; the Department of Health and Human Services, Office of Inspector General; IRS-Criminal Investigation; and Medicaid Fraud Control Units, including the California Department of Justice. The cases are being prosecuted by attorneys from the United States Attorney’s Office and the Fraud Section of the Justice Department’s Criminal Division.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
The charge of health care fraud carries a statutory maximum penalty of 10 years in federal prison. Money laundering carries a potential penalty of 20 years in prison. Aggravated identity theft carries a mandatory two-year prison term.”
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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:
Federal Crimes – Be Careful
Federal Crimes – Be Proactive
Federal Crimes – Federal Indictment
Federal Crimes – Detention Hearing
Federal Mail Fraud Crimes
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To find additional federal criminal news, please read Federal Criminal Defense Daily.
Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.
The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.
Leave a Comment » | Federal Attorney, Federal Crime, Federal Crimes, Federal Criminal Attorney, Federal Criminal Defense, Federal Criminal Defense Attorneys - McNabb Associates, Federal Criminal Lawyer, Federal Lawyer | Tagged: Abdul King-Garba, aggravated identity theft, Akinola Afolabi, Ayodeji Temitayo Fatunmbi, charged in federal court, Clement Etim Aghedo, Douglas C McNabb, Douglas McNabb, Dr. Houshang Pavehzadeh, Dr. Pavehzadeh, Emmanuel Medical Supply, Erasmus Kotey, F.B.I., fbi, federal attorney, federal attorneys, Federal Bureau of Investigation, federal court in Los Angeles, federal criminal attorney, federal criminal attorneys, federal criminal defense, federal criminal defense attorney, federal criminal defense attorneys, federal criminal defense lawyer, federal criminal defense lawyers, federal criminal lawyer, federal criminal lawyers, federal grand jury in Los Angeles, federal lawyer, federal lawyers, health care fraud, illegal kickbacks, international lawyer, Los Angeles federal court, Los Angeles federal criminal defense, Lutemi Medical Supplies, Maritza Velazquez, McNabb Associates, medicare fraud, Olufunke Fadojutimi, Queen Anieze-Smith, Sergey Mumjian, Sharetta Wallace, Susanna Artsruni, Sylmar Physician Medical Group, transnational criminal defense, U.S. District Court in Los Angeles, United States District Court in Los Angeles, Yaroslav Proshak | Permalink
Posted by McNabb Associates, P.C.
May 15, 2013
The Federal Bureau of Investigation (FBI) on May 14, 2013 released the following:
“Sixteen Defendants, Including Mexican Drug Cartel Members, Charged in Cocaine Conspiracy
Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and Randall C. Coleman, Special Agent in Charge of the Federal Bureau of Investigation, Little Rock Field Office, announce that a 25-count indictment handed down by a federal grand jury on May 2, 2013, was unsealed today charging sixteen defendants in Arkansas, Texas, and Mexico with multiple drug offenses. The indictment alleges the lead defendant, Idalia Ramos Rangel, a/k/a La Tia or Big Momma, is a high-ranking member of the Gulf Cartel who directs a drug trafficking organization based in Matamoros, Mexico. That organization is responsible for the distribution of multiple hundreds of kilograms of cocaine in the United States.
The indictment is the result of a large-scale investigation into cocaine and narcotics trafficking from Mexico to Arkansas. Agents determined that Rangel’s drug trafficking organization is responsible for delivery of more than one hundred kilograms of cocaine in Arkansas. The charges in the indictment include conspiracy to possess with intent to distribute more than five kilograms of cocaine, distribution of cocaine, and use of a telephone to facilitate a drug trafficking crime. All 16 defendants are charged with conspiracy to distribute cocaine. If convicted of conspiracy to distribute more than five kilograms of cocaine, each defendant will face a sentence of not less than 10 years to life imprisonment.
“The arrests made in this case have dismantled a primary supply of cocaine into the State of Arkansas,” stated Thyer. “From the Gulf Cartel to prison to the streets of Central Arkansas, this was not a typical case to investigate. I want to thank the FBI for their leadership in this investigation. I also want to acknowledge the significant investigative work the Federal Bureau of Prisons and the Little Rock Police Department provided. Those who do business with drug cartels should be on notice that law enforcement is investigating and will commit the resources necessary to punish them for their illegal trafficking.”
“Today, a strong group of dedicated federal, state, and local law enforcement officials—from Arkansas to Texas—came together to disrupt a criminal drug enterprise directly linked to the Gulf Cartel,” stated FBI Special Agent in Charge Randall Coleman. “It was simply a case of outstanding teamwork. In Arkansas, we will continue to work together to disrupt and dismantle those groups who choose to conduct their criminal enterprise activities here.”
According to the indictment, Rangel’s family members are alleged to be involved in the drug distribution conspiracy. Her son, Mohammed Kazam Martinez, a/k/a Mo, a federal inmate in the Bureau of Prisons, recruited inmates in the Federal Correctional Complex at Forrest City, Arkansas, to distribute Rangel’s Gulf Cartel cocaine upon their release from prison. Those inmates included Emmanuel Ilo, a/k/a Chi Chi or Chi, and Mervin Johnson, a/k/a Slim, who the indictment alleges began distributing kilogram and multi-ounce quantities of the cocaine in Central Arkansas upon their release from federal prison. Mohammed Martinez communicated with members of this drug trafficking organization using the prison telephone and e-mail systems to coordinate the distribution of cocaine to, and the collection of drug proceeds from, former federal inmates and others. Another of Rangel’s sons, Homar Martinez, and one of her daughters, Nishme Martinez, are also charged as part of the conspiracy.
The indictment alleges that Ilo distributed Rangel’s Gulf Cartel cocaine to Dwatney Noid; Dwight McLittle, a/k/a D.A.; Lamont Williams, a/k/a Peter Rabbit; Gerard Trice, a/k/a Fly; Tarvars Honorable, a/k/a Pudgy; and others for redistribution to customers in the Eastern District of Arkansas. The FBI made multiple controlled purchases of cocaine in Central Arkansas totaling more than one kilogram during the investigation of this case.
The investigation was conducted by the FBI, with substantial assistance from the Federal Bureau of Prisons and the Little Rock Police Department. The case is being prosecuted by Assistant United States Attorneys Michael Gordon and Chris Givens.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney’s Office News Release
Defendants/Charges
Conspiracy to possess with intent to distribute cocaine:
- Idalia Ramos Rangel, 57, Matamoros, Mexico
- *Mohammed Kazam Martinez, 31, Beaumount, Texas
- *Emanuel Ilo, 34, Little Rock, Arkansas
- Mervin Johnson, 37, Little Rock, Arkansas
- *Homar Martinez, 31, Brownsville, Texas
- Manuel Garza, 31, Brownsville, Texas
- *Jaime Benevides, 27, Austin, Texas
- *Nishme Martinez, 26, Austin, Texas
- *Denice Duran Martinez, 34, Brownsville, Texas
- *Yadira Anahy Martinez, 36, Brownsville, Texas
- Dwatney Noid, 30, Little Rock, Arkansas
- *Dwight McLittle, 27, Little Rock, Arkansas
- *Shanieka Tatum, 35, Little Rock, Arkansas
- *Lamont Williams, 34, Little Rock, Arkansas
- Gerard Trice, 29, Little Rock, Arkansas
- *Tarvars Honorable, 33, Little Rock, Arkansas
* Denotes individual is in custody.
In addition to the conspiracy charges, the following defendants are also charged with the following crimes:
- Emanuel Ilo: distribution of cocaine (six counts) and use of a telephone to facilitate a drug trafficking crime (two counts)
- Mervin Johnson: distribution of cocaine (one count)
- Dwatney Noid: distribution of cocaine (two counts) and use of a telephone to facilitate a drug trafficking crime (two counts)
- Dwight McLittle: distribution of cocaine (six counts)
- Shanieka Tatum: use of a telephone to facilitate a drug trafficking crime (three counts)
- Lamont Williams: use of a telephone to facilitate a drug trafficking crime (two counts)
- Gerard Trice: use of a telephone to facilitate a drug trafficking crime (two counts)
- Tarvars Honorable: distribution of cocaine base (one count) and use of a telephone to facilitate a drug trafficking crime (one count).
Statutory Sentences
Conspiracy to possess with intent to distribute more than five kilograms of cocaine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than five years’ supervised release.
Possession with intent to distribute less than 500 grams of cocaine or less than 28 grams of cocaine base is punishable by not more than 20 years’ incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000 and not less than three years’ supervised release.
Use of a communication facility to facilitate a drug trafficking crime are not more than four years’ incarceration in the Bureau of Prisons with a possible fine of up to $250,000 and not more than one year supervised release.”
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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:
Federal Crimes – Be Careful
Federal Crimes – Be Proactive
Federal Crimes – Federal Indictment
Federal Crimes – Detention Hearing
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To find additional federal criminal news, please read Federal Criminal Defense Daily.
Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.
The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.
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Posted by McNabb Associates, P.C.
May 15, 2013
U.S. Immigration and Customs Enforcement (ICE) on May 14, 2013 released the following:
“HOUSTON — A citizen of the Dominican Republic was arrested at the airport Saturday for allegedly importing cocaine by ingesting 53 pellets of the drug, announced U.S. Attorney Kenneth Magidson, Southern District of Texas.
The investigation leading to these charges was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP).
Mikkail Antonio Nolasco Jimenez, 27, was arrested at Bush Intercontinental Airport (IAH) after it was determined he had allegedly ingested 53 pellets containing cocaine.
The criminal complaint filed Tuesday alleges that on May 11 Jimenez arrived aboard a flight from Port of Spain, Trinidad and Tobago bound for New York. HSI special agents became suspicious when Jimenez provided inconsistent statements. Upon further investigation, they discovered anomalies in his body resembling pellets believed to contain a controlled substance. Jimenez was then transported and admitted to an area hospital.
Jimenez allegedly expelled a total of 53 pellets, containing a substance that field tested positive for cocaine, according to the complaint.
Jimenez made his initial appearance May 14 before U.S Magistrate Judge Stephen William Smith, at which time he was ordered into custody pending a May 16 detention hearing.
Upon conviction, Jimenez faces a mandatory minimum of five and up to 40 years in prison each for importing cocaine, and conspiracy to import cocaine.
Assistant U.S. Attorney Stuart A. Burns, Southern District of Texas, is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.”
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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:
Federal Crimes – Be Careful
Federal Crimes – Be Proactive
Federal Crimes – Federal Indictment
Federal Crimes – Detention Hearing
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To find additional federal criminal news, please read Federal Criminal Defense Daily.
Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.
The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.
Leave a Comment » | Federal Attorney, Federal Crime, Federal Crimes, Federal Criminal Attorney, Federal Criminal Defense, Federal Criminal Defense Attorneys - McNabb Associates, Federal Criminal Lawyer, Federal Lawyer | Tagged: federal criminal defense, federal criminal attorneys, federal criminal lawyer, federal criminal attorney, Douglas McNabb, federal criminal defense attorneys, federal criminal defense attorney, Southern District of Texas, criminal complaint, federal criminal complaint, federal criminal defense lawyer, McNabb Associates, federal criminal defense lawyers, federal attorney, federal attorneys, federal lawyers, federal lawyer, federal criminal lawyers, ICE, HSI, federal drug conspiracy, U.S. Magistrate Judge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, Immigration and Customs Enforcement, U.S. Customs and Border Protection, Federal Drug Charges, CBP, Douglas C McNabb, transnational criminal defense, international lawyer, federal drug charge, I.C.E., Mikkail Antonio Nolasco Jimenez, U.S Magistrate Judge Stephen William Smith, Federal Drug Case | Permalink
Posted by McNabb Associates, P.C.
May 15, 2013
American Civil Liberties Union (ACLU) on May 15, 2013 released the following:
“By Chris Soghoian, Principal Technologist and Senior Policy Analyst, ACLU Speech, Privacy and Technology Project at 11:27am
A federal magistrate judge in New York recently ruled that cell phone location data deserves no protection under the Fourth Amendment and that accordingly, the government can engage in real-time location surveillance without a search warrant. In an opinion straight from the Twilight Zone, magistrate judge Gary Brown ruled two weeks ago that “cell phone users who fail to turn off their cell phones do not exhibit an expectation of privacy.”
The case in question involved a physician who the DEA believed had issued thousands of prescriptions for pain killers in exchange for cash. In March of this year, the DEA had obtained a warrant for his arrest, and, not knowing where he was, sought an order from magistrate judge Brown forcing the phone company to provide real-time data identifying the location of the physician’s phone.
Although the DEA agents requested a search warrant and the judge found that there was probable cause to believe that the cell phone location data would assist in the location and apprehension of an individual for whom there was already a valid arrest warrant, the judge later published a 30-page opinion further stating that he didn’t think the government needed to seek a search warrant in the first place.
Don’t Want the Government Tracking You? Turn Your Phone Off
In his puzzling opinion, the judge squarely criticizes people naive enough to expect privacy while also leaving their cell phones on when they’re not using them.
“Given the ubiquity and celebrity of geolocation technologies, an individual has no legitimate expectation of privacy in the prospective location of a cellular telephone where that individual has failed to protect his privacy by taking the simple expedient of powering it off.
…
As to control by the user, all of the known tracking technologies may be defeated by merely turning off the phone. Indeed—excluding apathy or inattention—the only reason that users leave cell phones turned on is so that the device can be located to receive calls. Conversely, individuals who do not want to be disturbed by unwanted telephone calls at a particular time or place simply turn their phones off, knowing that they cannot be located.”
The Catch-22 here is that the only people who the judge believes would have any reasonable expectation of privacy are those whose phones are turned off (and thus, not generating any location data that the government could access, even with a warrant). And it ignores the necessity of keeping your cell phone turned on for communicating with family or for work.
That consumers are dumb enough to willingly share their location using the “Girls Around Me” app (which the judge specifically calls out by name, although the wrong one), only further justifies covert, warrantless government surveillance:
“Given the notoriety surrounding the disclosure of geolocation data to retailers purveying soap powder and blue jeans to mall shoppers, the police searching for David Pogue’s iPhone and, most alarmingly, the creators and users of the Girls Around You app, cell phone users cannot realistically entertain the notion that such information would (or should) be withheld from federal law enforcement agents searching for a fugitive.”
This is, in a word, ridiculous. There is a big difference between location information you knowingly share with a select group of friends (or, in fact, the world) and information collected about you without your knowledge or consent. Someone might be happy to share their location with a few friends by “checking in” using Foursquare while at a music festival, but not want law enforcement to access that same information. And, they would still reasonably expect that their location a week later while at an Alcoholics Anonymous meeting or abortion clinic should remain private. Sharing location data isn’t and shouldn’t be all or nothing.
We are also baffled by the judge’s willingness to tie a reasonable expectation of privacy to the use of a cell phone power button. We’re not sure if the judge has watched the Onion’s spoof news video describing a fictional “Google Opt Out Village” for people who don’t want to be tracked by the advertising company, but the logic in his opinion is consistent with the absurdity of that spoof. If you don’t want Google to track you, stop using all modern technology and move to a remote village. If you don’t want the government to covertly track your phone, turn it off and leave it off. What could be simpler, right?”
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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:
Federal Crimes – Be Careful
Federal Crimes – Be Proactive
Federal Crimes – Federal Indictment
————————————————————–
To find additional federal criminal news, please read Federal Criminal Defense Daily.
Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.
The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.
Leave a Comment » | Federal Attorney, Federal Crime, Federal Crimes, Federal Criminal Attorney, Federal Criminal Defense, Federal Criminal Defense Attorneys - McNabb Associates, Federal Criminal Lawyer, Federal Lawyer | Tagged: cell phone location, cell phone location data, cell phone tracking, David Pogue, DEA, DEA Agents, Douglas C McNabb, Douglas McNabb, Drug Enforcement Administration, federal attorney, federal attorneys, federal criminal attorney, federal criminal attorneys, federal criminal defense, federal criminal defense attorney, federal criminal defense attorneys, federal criminal defense lawyer, federal criminal defense lawyers, federal criminal lawyer, federal criminal lawyers, federal judge, Federal Law, federal law enforcement, federal lawyer, federal lawyers, Federal Magistrate Judge, international lawyer, Location Tracking, magistrate judge Gary Brown, McNabb Associates, search warrant, surveillance without a search warrant, transnational criminal defense, without a search warrant | Permalink
Posted by McNabb Associates, P.C.
