Punishment

Published on: September 4, 2011

Southern California Medicare Fraud Crackdown: It’s Real and Becoming More Vigorous

Were you or a close family member or friend recently arrested and charged with Los Angeles healthcare fraud? If so, you are not alone.

According to recently released government statistics – thanks to the Obama administration’s efforts, federal healthcare fraud prosecutions spiked more than 85% in 2011 over 2010. The Transactional Records Access Clearinghouse (TRAC) statistics show that the federal government has prosecuted over 900 people so far this year for healthcare fraud. In all of fiscal year 2010, only 731 people were prosecuted across the U.S. The TRAC data suggest that prosecutions have spiked more than 70% from just half a decade ago.

A spokesman for the Justice Department, Alisa Finelli, confirmed the TRAC data analysis: “the trend certainly looks accurate and on track with our data.” Over the past 12 months, the Justice Department has brought out the heavy ammunition to nail executives, nurses, doctors, and other caregivers (e.g. chiropractors, dentists, etc.) for defrauding programs like Medicare and Medicaid. Here are some fraud arrest highlights from 2011:

Published on: August 21, 2011

Los Angeles Medicare Fraud Bust Nabs a Man of God. What is Our World Coming to?

by Michael Kraut

Last Tuesday, a jury convicted Pastor Christopher Iruke in a multimillion dollar Los Angeles healthcare fraud case. Iruke, an employee, and Iruke’s wife were nailed on charges of healthcare fraud and conspiracy to commit fraud for devising and carrying out a scam that bilked Medicare for $14 million.

A story last week in the Los Angeles Times painted a vivid picture of Iruke’s last moments before his arrest. As federal authorities zeroed in on his fraud ring, the pastor of a South LA storefront church started to “shove pages upon pages of incriminating evidence into a shredder until the machine overheated. He then stuffed papers into the toilet and tried flushing his problems away…the documents linked him to bogus prescriptions for power wheelchairs for which he billed the government about $6,000 a piece, prosecutors alleged.”

Prosecutors said that the pastor collected about $6.6 million in reimbursements from the false claims (out of $14.2 million in claims filed) and that “the money funded a lavish lifestyle, including several luxury cars, international travel, and about $0.5 million remodeling on his Baldwin Hills home.”

Published on: August 15, 2011

Making the Pasadena DUI Process Way Too Complicated? Maybe it’s Your Bad Handwriting… like Justin Bieber’s?

by Michael Kraut

Hopefully we won’t be reading about Justin Bieber or Miley Cyrus going through the gauntlet of the Pasadena DUI process any time soon.

We need at least some of our young fresh-faced celebrities to stay sober and clean and act as responsible role models. But young celebs like Cyrus and Bieber are already setting something of a bad example. According to a recent article on CNN.com – “nation of adults who write like children” – Cyrus, Bieber, and other young celebrities have atrocious handwriting. The article quoted Justin King, a paparazzi who sells celebrity autographs: “with stars ages 30 and above, they generally have a much more full, legible signature. When you deal with these new people like Elle Fanning, you are lucky if you get an E and F and a heart for a signature.”

How does this all relate to the Pasadena DUI process?

It does, actually.

Because defendants recently arrested for violating California Vehicle Code Section 23152(a) or 231521(b) – driving under the influence in Pasadena (or elsewhere in Southern California) — must deal with a certain amount of bureaucracy, or risk of losing their licenses or encountering other legal trouble down the line.

If your handwriting is terrible – like Bieber’s and Cyrus’s, for instance – and you submit illegible forms, several things might happen. You might be asked to fill out the forms again. Or, quite possibly, the documents can be misinterpreted, leading to all sorts of unpleasant bureaucratic complications.

Given that your future is on the line – not just your potential freedom, but also your driver’s license, future insurance rates, employability, etc., it behooves you to connect with an experienced Pasadena criminal defense attorney who can explain your options.

Pasadena’s Kraut Criminal & DUI Lawyers (790 East Colorado Boulevard, 9th floor, Pasadena, California 91101 Phone: (626) 345-1899) provides the help, support, and resources you need (minus the handwriting instruction) to manage your Pasadena DUI charge with aplomb. Attorney Kraut is a widely respected figure in the Pasadena DUI community. Please read more about his background, credentials, history as a former city prosecutor (Senior Deputy District Attorney), and critical information about the relevant law (“Pasadena DUI 101”) on his site, or connect with him now for a free consultation.

Published on: August 9, 2011

Southern California Medicare Fraud “Shot Across the Bow” – 26 Busted for Defrauding Medicare and Medicaid out of Nearly $60 Million

by Michael Kraut

Newsflash: the Southern California Medicare fraud crackdown is real.

The Drug Enforcement Administration, Department of Health and Human Services, FBI, and other organizations are taking dead aim at fraud rings. They want to punish schemers and sending a warning to would-be white collar criminals in Los Angeles: consequences can be dire.

The latest shot across the bow comes out of Detroit. Last week, 26 people were indicted in US District Court. Allegedly, they bilked Medicare and Medicaid out of over $58 million in a fraudulent prescription scheme. The alleged mastermind, Babubhai “Bob” Patel, allegedly purchased a number of local Detroit pharmacies and then “set them up with store owners to conceal his stake in the enterprise.” Using this structure, Patel and his fellow coconspirators wrote bogus prescriptions and collected kickbacks. Patients were recruited to bribe individuals “to bill their insurance for medications and services that were either never provided or unnecessary.”

Published on: July 25, 2011

Will New Computer Models Lead to Dozens of New Los Angeles Medicare Fraud Arrests?

by Michael Kraut

Brace yourself for a slew of high profile Southern California medicare fraud arrests.

According to a July 10 article in Los Angeles Times, “Medicare Anti-fraud Detection System Launched,” federal officials have set up a powerful new predictive modeling system to identify Medicare fraud and punish syndicates and individuals who bill for false claims and engage in other types of fraud.

The LAT describes the computer predictive modeling system – which was honed in South Florida over a few years – as working “much like credit card systems that raise alerts about suspicious purchases – such as 20 pairs of shoes or unusually large sales – to help block criminals from using stolen cards or IDs.”

Published on: July 17, 2011

Long Beach DUI Sports News: Pittsburgh Steelers WR Hines Arrest Shocks the NFL

by Michael Kraut

Pro football fans were dealt another setback last week – more Long Beach DUI bad news. The NFL has been shellacked this year: possible season ending/shortening labor strikes; concerns about players’ long-term brain health; multiple DUI arrests at both the NFL and college level.

Steelers’ wide receiver Hines Ward added to the chaos the weekend before last. Fortunately for Southlanders, Ward was not arrested for DUI in Pasadena, DUI in Glendale, Los Angeles DUI, or Burbank DUI. Ward got booked in DeKalb County, GA early last Saturday morning. According to USA Today, “the police report… claims Ward hit a curve and had difficulty remaining in his lane. It said he smelled of alcohol, though Ward said he had just two beers three hours previously. He refused the breath test upon arriving at the jail.”

According to Ward’s representation, the defendant claims that he was not impaired by alcohol while he was driving. But this case will not fade from the limelight anytime soon (at least if Baltimore Ravens fans have their way), given Ward’s celebrity. He won Super Bowl XL’s most valuable player award as well as this year’s Dancing with the Stars.

His court hearing is scheduled for October 6th. If convicted of misdemeanor DUI, he could face a $1,000 fine on top of a full year behind bars.

So it’s clearly an up and down year for Ward. And, in that sense, his case presents us with an important object lesson. Many people assume that Long Beach DUI arrests only happen to people who are on the “down and down” – who are living too fast, ignoring safety rules, and generally “asking for it.” But this stereotype does not necessarily hold true. Everything in your life can be going great, and you can still get tagged with a serious Long Beach DUI charge.

What’s important is to recognize your reality – the potential trouble that you might be in and your potential resources. Rather than “reinventing the wheel” and trying to figure out your best possible strategy by yourself, you might benefit tremendously from a free consultation with Long Beach’s Kraut Criminal & DUI Lawyers (444 West Ocean, Suite 800 Long Beach, California 90802 Phone: (562) 531-7454). Michael Kraut is not only a very experienced Los Angeles criminal defense attorney, but he is also a former prosecutor. His experience in both positions gives him a very unique vantage, which he uses to deliver excellent results for his clients, get results at jury trials, and even impress legal colleagues, peers, and the major media.

Published on: July 11, 2011

Los Angeles Medicare Fraud News Blotter: Chicago Man Indicted in $20 Million Scam

by Michael Kraut

If you or someone you care about has recently been arrested or indicted for Southern California Medicare fraud, you have company.

As this blog regularly reports, government investigators are cracking down, big time, on entitlement fraud across the country. One of the biggest news stories on this front came out of Chicago last week: 43-year-old Jacinto Gabriel, Jr. was indicted in connection with a $20 million scam to defraud Medicare. Gabriel, Jr. owned a variety of businesses, including Perpetual Home Health, Incorporated and Legacy Home Healthcare Services. He submitted millions of dollars in false claims for services never delivered (or price inflated or medically unnecessary services).

Allegedly, Perpetual Home Health, Inc. – by itself – submitted 14,000 different claims between the middle of 2006 and early 2011 and collected $38 million in payments from Medicare. This made it one of the biggest recipients of Medicare funds in all of Illinois. Gabriel, Jr. allegedly used the money he collected from Medicare to gamble, buy automobiles, purchase real estate at home and abroad, provide kickbacks and gifts to physicians for patient referrals, and more.

Published on: July 5, 2011

Long Beach DUI Statistics: What Can They Really Tell Us?

by Michael Kraut

Ask anyone in law enforcement how to end the problem of Long Beach DUI, and they will tell you that we need better enforcement, more measurement of the problem, better education and tools for law enforcement, drivers, road engineers and policymakers. These are good points. And if we did indeed measure DUIs better with richer metrics, chances are we could see a decline in Pasadena DUI, Glendale DUI, Burbank DUI and Los Angeles DUI arrests. That being said, statistics may not be as useful as many bright-eyed and bushy-tailed pundits believe they are. As the old saw goes, “there are lies, damned lies and statistics.”

Case in point: consider a small story published in a Kansas newspaper, the Wichita Eagle, last week: “Wichita police see spike in DUI arrests.” Over a relatively non-special weekend, police saw a jump in DUI arrests of more than 50% – 31 arrests, up from the usual 21 DUI arrests for the weekend. Traffic accidents also increased from 70 to 98. This is a statistically significant shift, by any measure, and law enforcement officials and local prognosticators jumped on the story to immediately develop explanations for the surge. Wichita Eagle posited “there are lot of outdoor activities at this time of year… and that increases the opportunities for drunk driving to occur.” That said, the magazine concluded with this statement: “DUI arrests were made all over Wichita…and couldn’t be linked to any specific event.”

What if the surge was just a random fluctuation? Sounds impossible?

It turns out that statistics don’t work quite the way that most people believe that they do. In any given city, on any given weekend, one might expect a surprising surge – 50% or even more – as part of the random background statistical noise. In other words, the spike need not tie into any specific event because it really was random. It only appeared to have meaning because the statistics were considered just in the context of Wichita instead of in the context of the whole nation.

Think about it this way: say you were to flip a coin six times in a row. What are the odds that you flip heads each time? Here is the quick answer: 1 in 64 (1/2*1/2*1/2*1/2*1/2*1/2). If you pull out a coin and ever do this experiment, chances are pretty good (63 out of 64) that you will not get heads every time. But 1 out of every 64 readers of this blog post will! And to that person, this post may seem like magic. In fact, it’s not. Random events can look like something more than random when viewed out of context. Thus, the spike in Wichita DUIs might not have been anything at all. It might have been something… but there is not really a clean and clear way to tell.

The same thinking should apply to study of Long Beach DUI statistics.

On a more practical note, if you are in need of the services of an experienced Los Angeles criminal defense attorney, Long Beach’s Kraut Criminal & DUI Lawyers (444 West Ocean, Suite 800 Long Beach, California 90802 Phone: (562) 531-7454) may be able to steer you in a good direction. Attorney Michael Kraut is an experienced prosecutor who is respected by legal peers and by major news media as a maven of Los Angeles DUI law. He can help you understand your rights, develop a strategy, and ensure that you make smart decisions going forward to protect your rights as a defendant.

Published on: June 27, 2011

Los Angeles Medicare Fraud Leads to 51 Month Prison Sentence for Tujunga Man

by Michael Kraut

A quiet but disturbing Los Angeles Medicare fraud case resolved last Monday, when 45-year-old Petros Odachyan was sentenced to 51 months in prison in a Los Angeles Federal Court pursuant to charges that his company, RL Medical Supply, defrauded Medicare out of $600,000 (after billing the program for more than $1 million).

Prosecutors charged Odachyan with forging prescriptions for items like medical equipment, electric wheelchairs, and hospital bills – most of which RL Medical Supply never gave to patients. Odachyan pled guilty last June to committing healthcare fraud; he now will apparently face more than four years behind bars, unless he appeals the decision and manages to get some reprieve.

Odachyan’s sad saga is unfortunately all too common these days. And anyone who has been recently accused of Southern California medical fraud, Los Angeles insurance fraud, or any other Southern California white collar crime could potentially face similarly serious sentences – many years behind bars, possibly, and a total devastation of your business reputation.

Published on: June 21, 2011

Long Beach DUI Tech News – Apple Bans “Buzzed” App

by Michael Kraut

After U.S. lawmakers pressured Apple, the tech company has banned an app called “Buzzed” which revealed the locations of Long Beach DUI checkpoints (and checkpoints elsewhere) that police had not previously publicized. Apple also changed its online store guidelines to come into compliance with this new policy: “Apps which contain DUI checkpoints [such as Los Angeles DUI, Pasadena DUI, Glendale DUI, Burbank DUI, etc.] that are not published by law enforcement agencies that encourage and enable drunk driving will be rejected.”

Senate Majority Leader Harry Reid (D) Nevada applauded Apple but encouraged the company “to take the next responsible step for removing all applications that allow unsafe drivers to evade police checkpoints.” Perez Hilton, for one, also applauded the Apple move: “It’s definitely a step in the right direction… we feel these apps only do more harm than good by putting other drives at risk. Not only will drunk drivers be drunk, but they will be fiddling around on their cell phones to avoid getting caught!”

Opinions about Apple’s move were far from unanimous, however. For instance, as techdirt.com points out, blogger Nick Gillespie built a powerful argument against the banning of apps like Buzzed: “police themselves regularly make this info available as a deterrent.”

Quoting from Gillespie’s blog now: “Some police departments actually support the data used in such apps because they reduce the number of drunk drivers on the road!”

Another blog post on reason.com argued that such apps (like Buzzed) actually minimize drunk driving and speeding – which is one of the reasons why police in places such as Travis County, Texas are the ones entering the information for DUI checkpoint apps such as Trapster. As a Travis County cop puts it, “If we can stop the problematic behavior without writing tickets or hauling people, everybody is better off.”

The pundits and techno bloggers can continue to debate the merits (or lack thereof) of Apple’s app ban. But if you or someone you care about has recently been pulled over at a Long Beach DUI checkpoint, you have fewer intellectual concerns and more practical ones. A Los Angeles criminal defense attorney, such as Long Beach’s Kraut Criminal & DUI Lawyers (444 West Ocean, Suite 800 Long Beach, California 90802 Phone: (562) 531-7454), can inform you, help you understand your rights and responsibilities, and develop an astute and aggressive strategy to clear your record and defend your interests.