Category Archives: Fraud

July 21, 2017

Feds arrest Muslim doctors in one of largest Medicare fraud schemes in Detroit history (Video)

“If he was ever arrested, he would have a plane ready to take him outside the United States,” Foster said. “(Rashid) also stated to this witness that he has storage units full of cash that are maintained in others’ names.”

A lavish 10,000-square-foot $6.8 million home under construction and golf trips by private jet are just a few of the luxuries enjoyed by Mashiyat Rashid, the ringleader of what is being described as one of the largest Medicare fraud schemes in Detroit history.

Rashid, 37, who came to the United States from Bangladesh when he was 3 years old, is a graduate of the University of Michigan, and is married, with two young children. He is now facing up to life in federal prison for orchestrating a $132 million health care fraud conspiracy.

The Detroit News reported that the scheme has been going on since 2008 and involves a “web of companies controlled by Rashid,” along with six other individuals.

Charges against them include recruiting homeless people as patients, sending fraudulent claims to Medicare, giving unnecessary back injections to drug addicts, and prescribing pain medications that were then sold on the streets.

[…]

Complete text and video linked here.

Feds: How an exec bilked Medicare, spent millions

IMMIGRANT OF THE WEEK! Bangladeshi Mashiyat Rashid stole $132 mill from Medicare; bought mansion, courtside NBA.

A health care executive cheated Medicare out of $132 million and blew the money on a $7 million Franklin mansion and courtside NBA tickets, and stuffed secret storage units with cash, prosecutors allege.

Federal court records and prosecutors provided new details about the inner workings and riches of a health-care fraud conspiracy that ranks among the largest in Detroit history, orchestrated by 37-year-old businessman Mashiyat Rashid.

Prosecutors say the conspiracy involved recruiting homeless people as patients, sending phony bills to Medicare, subjecting drug addicts to unnecessary back injections and prescribing powerful pain medication that ended up being sold on the street.

The conspiracy generated so much money that Rashid withdrew $500,000 from a bank this month and stuffed the cash in a duffel bag, the government said. A surveillance team of federal agents watched him enter and leave the bank.

[…]

Complete text linked here.

July 20, 2017

Arizona Democrat Who Opposed Welfare Fraud Reforms Busted For Food Stamp Fraud

“It is appalling that an elected official representing the people of Arizona would steal from the poor, while consistently saying she is trying to help the poor,” Kern told Fox News.

An Arizona Democratic lawmaker who once voted against welfare fraud protections in her state has been indicted on felony charges of defrauding the food stamp program.

According to the indictment unsealed earlier this week, state Rep. Cecilia Velasquez was charged with three felony counts: unlawful use of food stamps, fraudulent schemes and practices, and theft.

The Arizona Department of Economic Security began investigating Velasquez in 2014. According to the Arizona DES, Velasquez fraudulently used $1,726 worth of food stamps between 2013 and 2015.

This past February, Velasquez had voted against a bill aimed at giving the same state agency stronger anti-fraud tools – a program that could have quickly detected her alleged fraudulent activity.

Arizona state Rep. Anthony Kern, who sponsored the House bill, called the indictment “sad.”

“It is appalling that an elected official representing the people of Arizona would steal from the poor, while consistently saying she is trying to help the poor,” Kern told Fox News.

[…]

Complete text linked here.

July 18, 2017

Alien Pleads Guilty To Voter Fraud, Ripping Off U.S. Gov’t For $12M

On Thursday a Nigerian citizen who has been living in St. Louis pled guilty to a number of crimes which he committed after he was deported from the United States several years ago.

According to The Daily Caller, Kevin Kunlay Williams, who was known as Kunlay Sodipo when he originally entered the United States, returned to the country illegally in 1999 after being deported around four years before.

A Department of Justice press release states that, when he returned illegally, Williams and other criminals stole official IDs from public school employees from an outside company.

He and his fellow perpetrators then used the credentials to file more than 2,000 federal income tax returns unlawfully. This amounted to more than $12 million in perspective refunds, of which The St. Louis Post-Dispatch states Williams obtained $889,712.

Williams then stole a number of official tax-related banking numbers that were used for refunds and even printed and forged blank checks.

[…]

Complete text linked here.

July 13, 2017

US charging 412 in health fraud schemes worth $1.3 billion (Video)

Sessions said in his remarks that nearly 300 health care providers are being suspended or banned from participating in federal health care programs.

U.S. prosecutors announced Thursday that they have charged more than 400 people with taking part in health care fraud and opioid scams that totaled $1.3 billion in false billing.

Attorney General Jeff Sessions called the collective action the “largest health care fraud takedown operation in American history” and said it indicates that some doctors, nurses and pharmacists “have chosen to violate their oaths and put greed ahead of their patients.”

Among those charged are six Michigan doctors accused of a scheme to prescribe unnecessary opioids. A Florida rehab facility is alleged to have recruited addicts with gift cards and visits to strip clubs, leading to $58 million in false treatments and tests.

Officials said those charged in the schemes include more than 120 people involved in prescribing and distributing narcotics.

“They seem oblivious to the disastrous consequences of their greed. Their actions not only enrich themselves, often at the expense of taxpayers, but also feed addictions and cause addictions to start,” Sessions said in prepared remarks.

[…]

Complete text linked here.

July 7, 2017

Broward County employee used position to help steal $1.6 million, deputies say

Warrants issued for 5 others accused of fraud.

An 11-year employee at the Broward County Records and Treasury Division was arrested Thursday on multiple felony charges.

Roberto Martinez, 46, is charged with 102 felony counts of numerous charges including organized fraud, money laundering, ID theft, uttering forged instruments and official misconduct.

Martinez refused to speak to Local 10 News investigative reporter Bob Norman on Thursday morning, running through County Hall to evade the camera, about an hour before he was arrested in his county office.

Martinez is accused of engaging in an organized scheme to defraud $1.6 million in county surplus funds along with five co-conspirators operating through several bogus companies.

Martinez ran the office that was in charge of selling homes whose owners had failed to pay their taxes, commonly known as tax deed sales.

Surplus money from those sales — money not taken by tax certificate holders, creditors, etc., are supposed to be returned to the previous owners.

According to an arrest report, Martinez used his county position to divert that money to his co-conspirators through forged power-of-attorneys.

[…]

Complete text linked here.

June 28, 2017

Lakewood rabbi, others arrested in alleged million-dollar welfare fraud

Public assistance fraud on a scale rarely seen before in New Jersey.

A prominent rabbi and several others were arrested in simultaneous federal and state raids Monday morning on charges related to alleged public assistance fraud on a scale rarely seen before in New Jersey.

Rabbi Zalmen Sorotzkin, who runs the synagogue Congregation Lutzk and businesses linked to the synagogue, was taken into custody Monday and is facing charges of theft by deception in Ocean County Superior Court.

Also arrested in the sting headed by the FBI, Ocean County Prosecutor’s Office and other agencies were Zalmen’s wife, Tzipporah Sorotzkin, and married couple Mordechai and Jocheved Breskin. The three also face state criminal charges, according to a source close to the case who spoke on the condition of anonymity because of the ongoing investigation.

[…]

Complete text linked here.

Student headed to prison for registering dead voters for Democrats

Spieles later admitted that he prepared the false voter registration forms by obtaining the name, age, and address of individuals from “walk sheets” provided to him by the Virginia Democratic Party.

A man paid to register Virginia voters prior to the 2016 Presidential Election will spend at least 100 days in prison for submitting the names of deceased individuals to the Registrar’s Office.

James Madison University student Andrew J. Spieles, 21, of Harrisonburg, pled guilty Monday in the United States District Court for the Western District of Virginia. As part of the plea agreement, Spieles agreed to a prison sentence of 100 to 120 days.

Spieles worked for Harrisonburg Votes when he committed the crime, according to acting United States Attorney Rick A. Mountcastle.

Harrisonburg Votes is a political organization affiliated with the Democratic Party.

“In July 2016 Spieles’ job was to register as many voters as possible and reported to Democratic Campaign headquarters in Harrisonburg,” a U.S. Attorney’s Office spokesperson said. “In August 2016, Spieles was directed to combine his registration numbers with those of another individual because their respective territories overlapped. After filling out a registration form for a voter, Spieles entered the information into a computer system used by the Virginia Democratic Party to track information such as name, age, address and political affiliation. Every Thursday an employee/volunteer hand-delivered the paper copies of the registration forms to the Registrar’s Office in Harrisonburg.”

[…]

Complete text linked here.

June 27, 2017

Lakewood couples earned millions and still cheated welfare, officials say

“Financial assistance programs are designed to alleviate family hardships for those truly in need,” Coronato said. “Those who choose to ignore those warnings by seeking to illegally profit on the backs of taxpayers will pay the punitive price of their actions.”

The arrest Monday of four couples, including four people who had earned millions of dollars, may just be the start as officials crack down on welfare fraud in this Ocean County community.

Rabbi Zalmen Sorotzkin, 39, of Congregation Lutzk, and his wife, Tzipporah, 35; and Mordechai Breskin, 37, and his wife, Jocheved, 35, were arrested on charges filed by the Ocean County Prosecutor’s Office.

The FBI, meanwhile, arrested Rachel Sorotzkin, 32, Mordechai Sorotzkin, 35, Yocheved Nussbaum, 40, and Shimon Nussbaum, 42, on federal charges of conspiring to steal federal funds.

Authorities said the families, some of whom owned businesses and lived in large homes, collected Medicaid and subsidized housing benefits and food stamps.

Ocean County Prosecutor Joseph D. Coronato said that his office warned religious leaders two years ago about the risk of abusing financial assistance programs.

[…]

Complete text linked here.

June 23, 2017

Study: More Noncitizens May Have Voted Illegally in Elections Than Previously Thought

President Trump’s claims of illegal voting in the presidential election have been given further support by a new study by an independent think tank that concluded that the number of noncitizens voting in the 2008 election was higher than previously thought.

The study, conducted by the right-leaning think tank Just Facts, found that as many as 5.7 million non-citizens may have voted in the 2008 election which brought President Barack Obama to the White House.

Just Facts’ analysis looked again at a Harvard/YouGov study conducted in the wake of the 2008 election, which surveyed 32,000 people about their voting habits. The Washington Times, which first reported on Just Facts’ study, notes that prior examinations of the data concluded that as few as 38,000 and as many as 2.8 million noncitizens voted in that election.

The study uses a lengthy series of calculations to recast the data, and also challenges a number of assumptions or alleged problems with the original study. For instance, it notes that the YouGov/Harvard data could also underestimate the number of non-citizens voting for a number of reasons as it uses Census data — which in turn underestimates the presence of illegal immigrants in the country.

“The Census Bureau counts only the number of non-citizens who respond to Census surveys, and some immigrants, especially unauthorized ones, avoid such surveys out of fear of exposing their immigration status,” the study says.

[…]

Complete text linked here.