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Southern California Physician and Two Co-Conspirators Found in Medicaid Fraud www.privateofficer.com
WASHINGTON DC April 26 2013 —A Southern California physician, a durable medical equipment (DME) supply company employee, and a health care professional were found guilty late yesterday by a federal jury in Los Angeles for their roles in a $1.5 million Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Criminal Division; U.S. Attorney for the Central District of California André Birotte, Jr.; Bill L. Lewis, Assistant Director in Charge of the FBI’s Los Angeles Field Office; and Glenn R. Ferry, Special Agent in Charge of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).
Godwin Onyeabor, 49, of Ontario, California; Sri J. Wijegunaratne, 58, of Anaheim, California; and Heidi Morishita, 48, of Valencia, California, were each found guilty in U.S. District Court in the Central District of California of one count of conspiracy to pay and receive kickbacks. Wijegunaratne was also found guilty of conspiracy to commit health care fraud and six substantive counts of health care fraud. Onyeabor was also found guilty of conspiracy to commit health care fraud and 11 substantive counts of health care fraud.
The trial evidence showed that between January 2007 and February 2012, Onyeabor, an officer at Fendih Medical Supply Inc., a DME supply company located in San Bernadino, California, and others paid cash kickbacks to Wijegunaratne, a physician, and Morishita for fraudulent prescriptions for DME, including power wheelchairs. The evidence showed that Wijegunaratne wrote prescriptions for power wheelchairs and other DME that Medicare beneficiaries did not need and sometimes never used. After receiving prescriptions from Wijegunaratne and Morishita, Onyeabor and others used the prescriptions to fraudulently bill Medicare for the medically unnecessary DME.
At trial, several Medicare beneficiaries testified that they were lured to medical clinics with the promise of free items such as vitamins and juice, only to receive power wheelchairs that they did not need and did not want. The beneficiaries further testified that their attempts to reject delivery of the power wheelchairs from Onyeabor’s supply company were unsuccessful.
As a result of this fraud scheme, Onyeabor, Wijegunaratne, and others submitted and caused the submission of approximately $1.5 million in false and fraudulent claims to Medicare, and received almost $1 million on those claims.
At sentencing, scheduled for September 9, 2013, Onyeabor, Wijegunaratne, and Morishita face a maximum penalty of 10 years in prison and a $250,000 fine for each count.
The case is being prosecuted by Assistant Chief Benton Curtis and Trial Attorneys Fred Medick and Alexander Porter of the Criminal Division’s Fraud Section. The case was investigated by the FBI and the Los Angeles Region of HHS-OIG.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. 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 HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to http://www.stopmedicarefraud.gov.
Former California Public Employee System CEO and Former Placement Agent Indicted for Conspiracy and Fraud www.privateofficer.com
According to the indictment, Mr. Villalobos, 69 and Mr. Buenrostro, 64, conspired to create and transmit fraudulent documents in connection with a $3 billion investment by the California Public Employee Retirement System (CalPERS) into funds managed by Apollo Global Management, a private equity firm based in New York City.
ARVCO Capital Research LLC, a financial services firm founded and managed by Mr. Villalobos, allegedly acted as a placement agent in helping Apollo to secure these investments by CalPERS. In each instance, Apollo required ARVCO to obtain an investor disclosure letter from CalPERS prior to paying ARVCO any fees for its efforts in securing CalPERS’ investments into Apollo-managed funds, citing, among other reasons, Apollo’s obligations under the securities laws.
After CalPERS’ legal and investment offices declined to sign a certain investor disclosure letter documenting ARVCO’s legal relationship with Apollo, Mr. Villalobos and Mr. Buenrostro allegedly conspired to create a series of fraudulent investor disclosure letters that were transmitted to Apollo. Apollo paid ARVCO a total of approximately $14 million dollars in fees after receiving the fraudulent letters.
ARVCO transmitted the last fraudulent investor disclosure letter in June 2008, a few weeks before Mr. Buenrostro retired from CalPERS. On July 1, 2008, Mr. Villalobos hired Mr. Buenrostro to work for ARVCO. When civil and later criminal investigations were opened into the operations of ARVCO and its role as a placement agent in connection with CalPERS’ investments in Apollo-managed funds, both defendants made false statements to and concealed information from the SEC, the USPIS, and the FBI about the authenticity of the investor disclosure letters in order to defeat and obstruct the lawful functions of those agencies.
Mr. Villalobos and Mr. Buenrostro made their initial appearance in federal court in San Francisco on March 18, 2013, and are currently out on bond. Mr. Buenrostro’s next scheduled appearance is Monday, March 25, 2013, at 9:30 a.m. for identification of counsel and review of the terms of his bond. Mr. Villalobos’ next scheduled appearance is April 9, 2013, at 9:30 a.m. for review of the terms of his bond. Both defendants are scheduled to appear before in district court on May 8, 2013, at 2:00 p.m. before Judge Breyer.
The maximum statutory penalty for conspiracy to commit mail fraud and wire fraud is 20 years in prison; $250,000 fine or twice the amount of gain or loss, whichever is greater; three years of supervised release; and a $100 special assessment. The maximum penalty for each count of conspiracy to defraud the United States, false scheme against the United States, false statement to the United States, and obstruction of justice is five years in prison; $250,000 fine or twice the amount of gain or loss, whichever is greater; three years of supervised release; and a $100 special assessment. Restitution may also be ordered as to each of the five counts. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines a the federal statute governing the imposition of a sentence.
Timothy J. Lucey is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Laurie Worthen and Maryam Beros. The prosecution is the result of a two-and-a half-year investigation by the U.S. Postal Inspection Service and FBI, with substantial assistance from the Los Angeles Regional Office of the Securities and Exchange Commission as well as the U.S. Secret Service.
Fifteen Charged in Telemarketing Scheme to Defraud Timeshare Unit Owners www.privateofficer.com
So far, 41 defendants have been charged to date for their involvement with a timeshare resale telemarketing room called Timeshare Mega Media and Marketing Group Inc. (TMMMG). The other cases previously filed include Case Nos. 11-60190-CR-Cohn, 11-60247-Cr-Marra, 11-60268-Cr-Hurley, 12-60019-Cr-Scola, 12-60149- Cr- Scola, and 12-mj-6114-RSR.
According to the indictment, in June 2009, Pappalardo incorporated TMMMG, using defendant Duany and Duany’s mother as nominee owners. Pappalardo was a co-owner of TMMMG, and Ditroia, Agovino, and Duany helped run TMMMG for him. According to the allegations in the indictment, the defendants conspired to unlawfully enrich themselves by making false representations over the telephone to individuals who were trying to sell their time-share units. Among the false statements, the defendants would tell customers, most of whom lived outside of the state of Florida, that the defendants had successfully sold their time-share unit and asked the customer to pay a fee to finalize the sale, a which fee would purportedly be refunded at closing. This fee ranged from at least $1,996 to as much as $10,000.
According to the indictment, the defendants knew that TMMMG never had any buyers for any of the sellers of their timeshare units. In this way, during the 10 months that TMMMG was in business, it fraudulently induced customers to send approximately $5,000,000 to TMMMG, of which Pappalardo received at least $300,000 in checks and hundreds of thousands of dollars of cash from victims.
If convicted, defendants Pappalardo, Agovino, Ditroia, and Duany each face a possible statutory maximum sentence of up to 40 years in prison. Defendants Bleich, Lovinsky, Al-Dabbas, Scheel,
Harrington, Lowton, Lee, Rockmore, Davis, Oliver, and Ross each face a possible statutory maximum sentence of up to twenty years in prison.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also recognized the assistance provided by the Fort Lauderdale Police Department and the Federal Trade Commission during this investigation. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
Stock Manipulators Sentenced in Texas to Prison for $1 Million Securities Fraud Scheme www.privateofficer.com
Blake Williams, 30, of Dallas, and Derek Lopez, 46, of Torrance, California, were sentenced to 32 and 24 months in prison, respectively. U.S. District Judge Ed Kinkeade imposed the sentences today in Dallas federal court. In addition to the prison terms, Williams was ordered to forfeit $125,000; Lopez was ordered to forfeit $72,442; and the pair was sentenced to serve two years of supervised release. Each defendant previously pleaded guilty to one count of conspiracy and one count of securities fraud.
Williams was an employee of TBeck Capital Inc., a purported investment banking and securities trading firm in Grapevine, Texas. Lopez was a securities broker-dealer who provided services to TBeck Capital. According to court documents, from June 2006 through December 2008, Williams, Lopez, and their co-conspirators engaged in a scheme to manipulate the price and volume of stocks traded in the over-the-counter market.
According to court documents, companies owned and controlled by a co-conspirator obtained control of large positions of free-trading stock in various publicly traded companies. Williams, Lopez, and others then coordinated trades with each other and with other alleged co-conspirators to create the false appearance of greater investor interest in the stock. Williams and Lopez admitted to trading stock in their own names as well as through TBeck Capital and other companies to keep the stock price artificially inflated. These actions allowed the defendants and their alleged co-conspirators to then sell that stock at an artificially high price.
Specifically, Lopez admitted to trading in his own name, as well as in the name “Da Big Kahuna” to disguise his trades. Williams admitted to trading in the names of several companies to make it appear there were multiple unrelated entities buying and selling the stock. According to court documents, Williams received cash payments and Lopez received free-trading stock and cash payments in return for their assistance in manipulating the stock prices of companies in which TBeck Capital owned and controlled large positions of free-trading stock.
The gain to all the co-conspirators from the fraudulent scheme exceeded $1 million, according to court documents.
The case is being prosecuted by Senior Trial Attorney Nicholas Acker and Trial Attorney Luke B. Marsh of the Criminal Division’s Fraud Section and is being investigated by the FBI’s Washington Field Office. The U.S. Attorney’s Office for the Northern District of Texas provided valuable assistance.
This case was prosecuted 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 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 www.stopfraud.gov.
Two officers, suspect shot and killed in Santa Cruz, California www.privateofficer.com
BREAKING NEWS
SANTA CRUZ, California Feb 27 2013 (Reuters) – Two police officers were shot dead in northern California in a mostly residential area of the city of Santa Cruz on Tuesday in a shootout with a gunman who was later killed by police, authorities said.
Police did not immediately release details on what led to the shooting involving the officers in the city 60 miles south of San Francisco, other than to say the officers were conducting an investigation before they came under fire.
“Two Santa Cruz police officers were shot and are deceased,” Santa Cruz County Sheriff Phil Wowak told reporters. “One suspect was involved in the shooting. That suspect was shot and is deceased at this time.”
A statement from the Sheriff’s Office said the suspect was found by police “shortly after the initial shooting.” Authorities did not immediately release the names of the officers or the suspect.
The deaths of two officers follow a pair of shootings in Santa Cruz this month that put residents on edge.
On February 9 a resident died in a drive-by shooting outside a bar, and two days later a University of California, Santa Cruz, student was wounded by a shot to the head during a mugging, police said.
Bank Executive Sentenced to 30 Months in Prison for Mortgage Fraud Scheme in California www.privateofficer.com
U.S. Attorney’s Office
FBI
Press Release
SACRAMENTO, CA Feb 27 2013—U.S. District Judge William B. Shubb sentenced Joel Blanford, 44, of San Ramon, California, to 30 months in prison, to be followed by three years of supervised release, for a mortgage fraud scheme, U.S. Attorney Benjamin B. Wagner announced. On September 19, 2012, following a seven-day trial, a jury found Blanford guilty of six counts of mail fraud.
This case was the product of an investigation by the FBI and the Internal Revenue Service-Criminal Investigation (IRS-CI). Assistant U.S. Attorneys Paul A. Hemesath and Michael M. Beckwith prosecuted the case.
According to evidence presented at trial, from approximately April 2003 through October 2005, Blanford, while working as a senior sales representative for Long Beach Mortgage, a wholesale subprime lender and former subsidiary of Washington Mutual Inc., participated in a scheme to defraud his employer. Blanford earned compensation based on the volume of loans processed by Long Beach Mortgage. The evidence established that he paid a loan coordinator in cash and checks to falsify documents, provide false verification of borrowers’ employment or professional licensing status and turn a blind eye to fraudulent representations contained in loan applications and other documents submitted to Long Beach Mortgage.
In each of the years 2003, 2004, and 2005, before taxes and payroll deductions, Blanford received more than $1 million in commissions and other compensation from Long Beach Mortgage as a result of his scheme. Between April 2003 and October 2005, he paid the loan coordinator more than $50,000 in checks alone.
U.S. Attorney Wagner stated, “This investigation exposed a sophisticated chain of fraud that started at the homebuyer level and extended all the way to banking insiders. It is a lesson that those earning million-dollar paychecks are not exempt from significant criminal penalties.”
This case was done 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 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.
Oxycodone Trafficker Sentenced to 10 Years www.privateofficer.com
SAN FRANCISCO CA Feb 7 2013—Ella Mae Simpson, 55, of Hayward, California, was sentenced yesterday to 10 years in prison for conspiracy to possess with intent to distribute and distribution of oxycodone, possession with intent to distribute and distribution of oxycodone, and possession with intent to distribute oxycodone, United States Attorney Melinda Haag announced.
On May 18, 2012, before U.S. District Court Judge Susan Illston, Simpson pled guilty to one count of conspiracy to possess with intent to distribute and to distribute oxycodone in violation of Title 21, U.S.C. § 846; three counts of possession with intent to distribute and distribution of oxycodone in violation of Title 21, U.S.C. §§ 841(a)(1), (b)(1)(C); and one count of possession with intent to distribute oxycodone in violation of Title 21, U.S.C. §§ 841(a)(1), (b)(1)(C). Simpson admitted that, between April 5, 2011 and June 9, 2011, she conspired with others to possess with intent to distribute, and she conspired to distribute oxycodone. Simpson further admitted that on three separate dates between April 5, 2011 and June 8, 2011, she distributed oxycodone and that on June 9, 2011, she possessed oxycodone with the intent to distribute it, all in the Northern District of California. On June 9, 2011, law enforcement officers seized $235,524 along with a firearm from Simpson’s residence. There was no plea agreement.
At the sentencing hearing, Judge Illston also ordered the forfeiture of the $235,524 and imposed a three-year period of supervised release. Simpson was ordered to surrender to the Bureau of Prisons on March 22, 2013.
Denise Marie Barton and Katherine Dowling are the Assistant U.S. Attorneys who prosecuted the case with the assistance of AUSAs Patty Kenney, Dave Countrymen, Arvon Perteet, and Alicia Jusey of the Asset Forfeiture Unit; and Maryam Beros and Rawaty Yim. The prosecution is the result of a lengthy investigation by the Federal Bureau of Investigation, Drug Enforcement Agency, and the Department of Health and Human Services.
A copy of this press release may be found on the U.S. Attorney’s Office’s website at http://www.usdoj.gov/usao/can.
Paralegal Charged in Scheme to Defraud Bay Area Law Firm and Its Clients WWW.PRIVATEOFFICER.COM
FBI PRESS RELEASE
OAKLAND, CA Feb 5 2013—Ana Lissa Reyes, of San Lorenzo, California, was arraigned yesterday on an information charging her with multiple counts of mail fraud and tax evasion, United States Attorney Melinda Haag and IRS-Criminal Investigation Special Agent in Charge Jose M. Martinez announced.
According to the information, Reyes is alleged to have worked as a secretary, office manager, and paralegal for a Bay Area personal injury law firm. From about 2006 through June 2011, Reyes, without authorization, settled claims without the knowledge of the law firm or its clients and stole the settlement proceeds. It is also alleged that Reyes engaged clients without the law firm’s knowledge and stole client retainer fee payments. To carry out the scheme to defraud, Reyes created a bogus company to correspond with clients without the law firm’s knowledge and to defraud the clients into believing their cases were ongoing.
Reyes is also charged with willfully attempting to defeat a large part of the income tax due and owing for the calendar years 2006, 2007, 2008, 2009, 2010, and 2011. It is alleged that, for each of those tax years, Reyes knew her joint taxable income was substantially in excess of the amount stated on the returns, and, upon the additional taxable income, a substantial additional tax was due and owing to the United States.
Reyes made her initial appearance in federal court in Oakland yesterday and is currently out on bond. She is next scheduled to appear in federal court in Oakland at 2 p.m. on February 28, 2013, for a status hearing before Judge Yvonne Gonzalez Rogers.
The maximum statutory penalty for each count of mail fraud in violation of 18 U.S.C. § 1341 is 20 years in prison and a fine of $250,000. The maximum statutory penalty for each count of tax evasion in violation of 26 U.S.C. § 7201 is six years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
AUSA Wade M. Rhyne is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of a year-long investigation by the Federal Bureau of Investigation and IRS-Criminal Investigation.
Please note, an information contains only allegations against an individual and, as with all defendants, Reyes must be presumed innocent unless and until proven guilty.
John Wayne Airport security nab man with loaded handgun in his carry-on bag www.privateofficer.com
Orange County CA April 18 2012 Security officials at John Wayne Airport arrested a man after they found a loaded handgun in his carry-on bag, the second time he has been accused of such an attempt, according to the Orange County Sheriff’s Department.
Minhchau Pham, 43, of Hillsborough, California, was arrested Monday about 7:15 p.m. while on his way to board Southwest flight 458 to Las Vegas, Transportation Safety Administration spokesman Nico Melendez said.
“The passenger put his carry-on bag on the X-ray belt and security officers saw a loaded .38 caliber Smith & Wesson with five rounds of ammunition,” Melendez said.
Melendez said passengers are allowed to transport handguns but must follow the rules.
“As long as they are in checked baggage, unloaded and declared to the airline,” Melendez said.
Investigators determined that Pham had been arrested on suspicion of trying to bring a similar weapon onto a plane at the San Jose airport in 2005, said Sheriff’s Department spokesman Jim Amormino.
“The reason he had it, we don’t know,” Amormino said. “But it is the second time, so we’re taking a closer look at it.”
Amormino said travelers should be careful about what they put in their luggage.
“We want people to be very mindful of what they take to the airport, especially a loaded weapon, but anything that could be used as a weapon,” Amormino said.
Pham, who listed his occupation as real estate, was in the process of posting $20,000 bail this afternoon, according to sheriff’s officials.
Colorado traffic stop turns up $10 million in cocaine www.privateofficer.com
DENVER CO Sept 14 2011 – A routine Colorado traffic stop led to the discovery of 220 pounds of cocaine with a street value of $10 million in the rental car of a California couple, police said on Monday.
Mark Bailey and Lisa Calderon, both of Sylmar, California, were arrested on Sunday in the southern Colorado city of Pueblo on suspicion of cocaine possession, Pueblo Deputy Police Chief Andrew McLachlan said.
“This is definitely the largest cocaine seizure in our department’s history,” McLachlan told Reuters.
McLachlan said a patrol officer was tipped off by an off-duty detective to a car making an illegal lane change on Interstate 25, about 115 miles south of Denver.
The north-south highway has long been a drug-smuggling corridor, he said. When the officer pulled over the rented Chevrolet Malibu, he discovered that Bailey’s California driver’s license had been revoked.
Bailey, 37, told the officer he owned an auto body shop in California, and was en route to Iowa to look at a 1955 Chevy, police said.
The officer became suspicious because when Calderon, 35, was questioned she appeared nervous. She said the pair were going to visit her brother in Iowa but couldn’t say where, police said.
When the officer noticed that the back of the car appeared to be weighed down, he summoned a drug-sniffing dog and its handler to the scene. The dog, name Raleigh, “alerted on the rear of the Chevy,” McLachlan said.
A search of the trunk uncovered four black duffel bags stuffed with bricks of cocaine, and the pair was arrested, he said.
Bailey was also cited for driving with a suspended license, and no proof of insurance.
Source:Reuters
Jurors deadlock in security guard murder trial www.privateofficer.com
Jurors deadlock in security guard murder trial http://www.privateofficer.com
Los Angeles CA. May 1 2008
Jurors deadlocked today in the trial of a former security guard accused of murdering an 18-year-old woman in a Palmdale park-and- ride lot as she returned from a Kid Rock video shoot.
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School resource officer kills student during attack www.privateofficer.com
School resource officer kills student during attack http://www.privateofficer.com
A Fresno student was killed during an officer-involved shooting on the Roosevelt High School campus Wednesday.
According to police, an officer assigned to the school, walked out of his office just before noon and was immediately struck in the head with a baseball bat. The officer fell to the ground compromising his primary firearm, but was able to retrieve his secondary weapon, which he fired at the suspect.
The suspect, who has been described as a 17-year-old sophomore, fell to the ground and was pronounced dead on the scene despite CPR efforts.
Fresno Police Chief Jerry Dyer described the situation as “tragic” and reassured parents that no students were ever in danger. The school was on lock down throughout the day after the incident occurred. Acting Superintendent, Ruthie Quinto, attributed the lockdown to the districts policy to ensure the “complete and utter safety of all the students on campus.”
At least five students are said to have witnessed the shooting, along with two probation officers.
The officer involved in the shooting has been identified as 38 year-old Junus Perry of Fresno, who is said to have worked on the campus for three years, and with the department for 10 1/2 years. He was taken to Community Regional Medical Center where he was later released.
Roosevelt High School is located at 4250 E Tulare St in Fresno, the crime is said to have occurred on the southeast side of the campus.
