Category Archives: Fraud

October 28, 2017

Billionaire Pharmaceuticals Entrepreneur Indicted in Alleged Fentanyl Fraud Scheme

Federal authorities unveil superseding indictment against six former executives, managers.

Billionaire pharmaceuticals entrepreneur John N. Kapoor was arrested by federal agents at his Phoenix home and charged with leading a nationwide criminal conspiracy to illegally distribute an addictive prescription painkiller—the highest ranking former executive of Insys Therapeutics Inc. INSY -22.64% to be charged in a long-running investigation.

Dr. Kapoor, who co-founded Insys and served as its chief executive until earlier this year, was charged by federal prosecutors with participating in an alleged conspiracy to bribe doctors to prescribe large amounts of the drug, Subsys, a mouth-spray version of the potent opioid painkiller fentanyl that is approved by the Food and Drug Administration to treat cancer-related pain. The conspiracy also allegedly involved defrauding health insurers by misleading them into paying for the drug.

Dr. Kapoor, 74 years old, resigned his operational duties at the company earlier this year but retains a seat on its board and owns two-thirds of its shares outstanding.

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October 26, 2017

Emails Confirm: Obama DOJ Funneled Big Bank Settlement Money To Liberal Groups

Obama DOJ forced banks to “settle” lawsuits by giving $1 billion to La Raza, National Urban League & other left-wing groups.

Emails written by Obama administration Department of Justice officials confirm reports the agency engaged in a systemic effort to funnel money to liberal advocacy organizations from settlements reached with big banks.

The documents, obtained by the House Judiciary Committee as part of an ongoing investigation, reveal the Obama Justice Department effectively skirted Congress’s budgetary authority by requiring that major financial institutions donate to a group of affordable housing nonprofits and legal advocacy organizations as part of settlement agreements resulting from predatory mortgage lending practices.

The internal DOJ documents represent the latest revelation in a two-year investigation spearheaded by House Judiciary Committee Chairman Bob Goodlatte.

The investigation has thus far yielded evidence implicating the Obama DOJ in using mandatory donations to funnel roughly $1 billion in settlement money to activist groups, including The National Council of La Raza, the National Community Reinvestment Coalition and the National Urban League. The list of third party organizations were unrelated to the legal settlements, except through general claims that they would use the funds to aid the low income Americans most severely harmed by predatory lending practices.

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October 21, 2017

California DMV workers issued hundreds of bogus truck driving licenses for bribes, feds say

The probe has now grown to include DMV offices the length of California and dates back to 2011. It involves multiple payoffs of thousands of dollars to DMV workers to alter computer records, court records say.

The undercover sting operation that led to bribery charges against two California Department of Motor Vehicles employees this week is part of a major, six-year probe by the FBI, the U.S. Department of Homeland Security and other federal agencies that so far has resulted in charges against eight individuals and the revocation of hundreds of commercial truck driver’s licenses around the state, court records show.

The latest employees to be charged were named in documents unsealed Thursday in federal court in Sacramento. The government alleges they took bribes from Southern California truck-driving school owners to alter DMV records to show applicants had passed their written and driving tests to allow them to obtain licenses to drive tractor trailers and buses.

Those defendants were identified as Lisa Terraciano, 51, who worked in a DMV office in Winnetka, and Kari Scattaglia, 38, a DMV manager who worked in offices in Granada Hills and Arleta.

Online records indicate she is the daughter of Vito F. Scattaglia, a deputy chief of investigations and enforcement for the DMV in Southern California. Kari Scattaglia was paid $52,500 last year, according to The Bee’s online state salary database.

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September 23, 2017

Raids in New Jersey town target ultra-Orthodox Jews accused of welfare fraud. ‘What is going on here?’

In one case unsealed by the court in June, a couple with six children are alleged to have reported their income at $39,000 per year — low enough to qualify for Medicaid — when in fact they were getting more than $1 million annually from a limited liability corporation.

It was a spectacle nobody in this sleepy New Jersey town would forget.

Early one Monday morning, police and FBI agents in bulletproof vests bounded up the steps of suburban townhouses and split levels, threatening to break down the doors, hauling out in handcuffs husbands and wives in the distinctive clothing of ultra-Orthodox Jews. One was a prominent rabbi and head of a synagogue.

It was the dramatic kickoff of a series of well-publicized raids that since late June have netted 26 suspects on charges of stealing $2 million in government benefits. Prosecutors say that the suspects understated their income to get free healthcare, food stamps, rental subsidies and other benefits.

All of those arrested — 13 men and 13 women — were ultra-Orthodox Jews. The charges have tapped into a well of festering hostility toward an insular and eccentric minority.

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September 18, 2017

Ohio ‘Food Stamp Millionaire’ Found Guilty of Food Stamp, Medicaid Fraud

An Ohio millionaire has been found guilty of welfare fraud in court Friday after he fraudulently collected food stamps and Medicaid benefits.

WKYC reports that a judge convicted Pascal Mahvi, also known as the “Food Stamp Millionaire,” of one fifth-degree felony for fraudulently claiming more than $8,300 worth of food stamps and one misdemeanor charge of fraud for falsifying his application for Medicaid benefits over two years before his arrest.

Mahvi and his attorney declined to comment on the case following Friday’s decision. A judge is expected to sentence Mahvi in four to six weeks.

Prosecutor James Flaiz said he is going to recommend to the judge that Mahvi serves jail time.

“We’re absolutely going to recommend time behind bars,” Flaiz said. “I think people have to understand, if you abuse the system that taxpayers have set up to help the poor, and you defraud that system, there needs to be consequences.”

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September 8, 2017

DACA Fraud Rate at ’40 to 50 Percent’, Says Former Immigration Official

Fraud is rampant and “huge” for the Deferred Action for Childhood Arrivals (DACA) program, a former official with the United States Citizenship and Immigration Services (USCIS) agency alleges.

Under DACA, nearly 800,000 illegal aliens were given temporary protected status and work permits to remain in the United States. Experts have told Breitbart Texas that during the Obama Administration, background screening was lax.

In an interview with LifeZette, former USCIS manager of the agency’s investigative unit, Matt O’Brien, alleged that the fraud rate for DACA is roughly “40 to 50 percent” and potentially even “higher”:

“Based on what I had seen and what I discussed with my colleagues, the fraud rate is 40 to 50 percent. It’s possible that it was higher,” he told LifeZette this week.

According to O’Brien, the DACA program was riddled with fraud and abuse from the beginning, where illegal alien applicants for the program allegedly lied on applications and were rarely caught by USCIS officials:

“There’s a huge rate of fraud in this program,” he told LifeZette this week on the subject of DACA.

USCIS employees did quick checks of DACA applications, he said, rather than thorough reviews, “in order to get the DACAs all racked and stacked quickly.”

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August 10, 2017

Man Who Advised Michelle Obama on Inedible School Lunches Arrested For Defrauding Lunch Program

David Binkle is a chef and one of the architects behind Michelle Obama’s inedible lunches. He was recently arrested for defrauding the school lunch program and is facing up to 13 years in prison if convicted.

David Binkle was hailed as a pioneer among school nutrition advocates for accomplishing a near-herculean task – using produce and meats provided by local growers to greatly reduce the number of fatty meals served in the nation’s second-largest school district.

The initiatives won the district numerous awards, drew praise from then-First Lady Michelle Obama as she led a national push to combat childhood obesity, and earned Binkle appearances on Tedx Talks.

The 55-year-old appeared in court on Tuesday and pleaded not guilty to 15 felony counts including embezzlement and misappropriation of public funds. He posted $220,000 bail and is scheduled to return to court in October.

“While recognizing that everyone is innocent until proven guilty, the charges against Mr. Binkle are extremely upsetting as they do not reflect the professionalism, ethics and character we expect of all L.A. Unified employees,” the school district said in a statement.

According to court documents, Binkle repeatedly misappropriated district funds in amounts ranging from $5,000 to $15,000 between 2010 and 2014. Prosecutors also allege that he forged an application to become a vendor with the district and failed to disclose outside financial interests.

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August 9, 2017

Feds confirm organized vote fraud in Massachusetts

Puerto Rican birth certificates used to register illegal aliens.

The federal government has confirmed organized voter fraud in America, with the arrests of six people who allegedly ran a fake-ID scam inside the Massachusetts Registry of Motor Vehicles.

The results give credence to President Trump’s much-maligned claim that Hillary Clinton received more popular votes nationally in 2016 mostly because more than 3 million illegal aliens voted.

In fact, WND reported only weeks ago a new study concluded as many as 5.7 million noncitizens may have voted in the 2008 election, suggesting the problem could be even bigger than what Trump estimated.

In Massachusetts, the U.S. attorney’s office said six people, including four RMV clerks, were arrested in connection “with a scheme to produce false identification documents through the Massachusetts Registry of Motor Vehicles.”

“Some of the false identities and addresses were used to fraudulently register to vote in the city of Boston.”

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July 26, 2017

Outsourcing firm guilty of massive H-1B visa fraud

Every year, Americans lose jobs in the tech., medical and fashion industries to the more than 100,000 foreign guest workers who come to the United States on the H-1B visa.

The owner of a California-based outsourcing firm called Strataserv was busted for bringing foreign guest workers into the country via the H-1B visa by falsely claiming that they had jobs waiting for them at Cisco, an IT and networking company in San Jose.

On July 19, Indian-American businesswoman Sridevi Aiyaswamy, the owner of San Jose-based Strataserv Inc., pled guilty in federal court to three counts of visa fraud, said U.S. Attorney Brian J. Stretch in a Department of Justice (DOJ) press release.

Aiyaswamy, 50, of San Jose, admitted in federal court that between April 2010 and June 2013, she made numerous false statements and submitted more than 25 fraudulent documents to the United States Citizenship and Immigration Services (USCIS) for the purpose of obtaining H-1B non-immigrant classifications for skilled foreign workers.

“Acting as a petitioner on behalf of foreign worker beneficiaries, Aiyaswamy falsely represented in I-129 petitions that the foreign worker beneficiaries would be working at Cisco, an information technology and networking company in San Jose, Calif.,” according to the report.

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July 25, 2017

Food stamp fraud running wild on social media

“Some people are getting really stupid. They showed on the news tonight people selling food stamps on Facebook and Craigslist.”

Earlier this year, the Trump administration’s budget proposed slashing $193 billion from the food stamp program over the next decade. The food stamp cuts, which represents a 25% decrease from existing levels, were described by the White House as “reforms that tighten eligibility and encourage work.” The proposed budget seeks to “close eligibility loopholes, target benefits to the neediest households, and require able-bodied adults to work.”

After the latest budget was released last week, news outlets began carrying stories about food stamp fraud, including those that take place online. Believe it or not, people are buying and selling food stamps on social media sites such as Facebook, Twitter, and Craigslist.

“Some people are getting really stupid. They showed on the news tonight people selling food stamps on Facebook and Craigslist. Why would you put that on Craigslist and Facebook; messing it up for people that really need their food stamps to buy food,” was a comment by Facebook user Monique Mosely back in April.

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