Punishment

Published on: July 12, 2010

Southern California Medical Insurance Fraud Blogs Zero In On Crazy Case Out of Louisiana

As if the Great State of Louisiana didn’t have enough to worry about – Southern California medical insurance fraud blogs have been chasing after a wild story out of Cajun Country, in which an administrative assistant at a chiropractic clinic allegedly pilfered over $77,000 from her employer in an elaborate scam that lasted over three years.

The Dirty Details
Louisiana State Troopers arrested Juanita S. Boyd last week following a five-month investigation into her alleged criminal activities. Ms. Boyd worked as an assistant at a Baton Rouge chiropractic clinic called Advanced Chiropractic. Somehow, she managed to work out an arrangement with a local personal injury attorney named Kevin Hanchey, who referred his clients to Advanced Chiropractic for medical treatment. From 2007 to 2009, Hanchey sent over multiple clients and wrote 39 checks to Ms. Boyd (directly, as opposed to the clinic itself). She allegedly cashed the checks and kept the money for herself – a total of over $77,000, which should have rightfully gone to her boss, Dr. Doyle Johnson.

If you stand accused of white collar crimes – particularly insurance fraud in Southern California – what kinds of charges might you face? The answers depend on the circumstances of what you did. Insurance Code Section 1871.4 is a catch-all for Los Angeles healthcare fraud cases. You might face charges under Penal Code Section 550. If you made a false charge, you could face perjury charges on top of everything else under Penal Code Section 118. And Labor Code Section 37100 might also apply, if you are an employer who committed healthcare fraud.

More generally, Los Angeles insurance fraud is covered under California Insurance Code Section 187. Other types of fraud can be covered under different sections. For instance, auto insurance fraud is covered under Section 1872.8. Depending on the nature of the charge, you could be hit with either a misdemeanor or felony.

As you can see, the legal wrangling over Southern California white collar crime charges can get quite intense and complicated – even if the charges themselves at first appear straightforward. To put up a stiff defense, you want an attorney who has both experience and success dealing with similar situations.

Published on: July 5, 2010

Ex-Cop Accused of Southern California White Collar Crimes Galore

by Michael Kraut

53-year-old Kevin Michael Sianez was walloped with a 63 charge criminal count last week, including charges of an array of Southern California white collar crimes. Sianez worked for the Stanton Police Department between 1979 and 1986 and operated, more recently, as an unlicensed private investigator. He stands accused of a dazzling array of unsavory deeds. Here are a few of them:

• Operating as a private investigator without being licensed through the California Department of Consumer Affairs Bureau of Security and Investigative Services.
• Lying about his professional credentials online to attract business.
• Intimidating former colleagues who threatened to expose his fraudulent activity.
• Threatening to burn down the house of a woman who threatened to expose his fibs online.
• Posting multiple ads on Craigslist to solicit women to have sex with his Labrador retriever.

Felony charges against Sianez include a dozen counts of using an access card fraudulently, 20 counts of false pretense grand theft, five counts of a felon possessing a firearm (coming from a 1998 felony conviction for stalking), and counts of identity theft, perjury, fraudulent computer access, and illegally possessing ammunition. Among his misdemeanor charges are charges of Southern California white collar crime (aggravated). He is currently being held at $0.5 million bail; if he is convicted of all of those charges, he could serve 30 years behind bars.

When one examines the array of Southern California fraud and white collar criminal charges against Sianez, one charge that definitely leaps out is the accusation that he solicited women to have sex with his dog. This accusation, if true, is absolutely despicable. And it illustrates a problem that many Los Angeles white collar crime defendants have: namely, when you are accused of a crime, you find that you end up getting lumped in (in other people’s minds) with criminals who have done much worse deeds. For instance, say you stand accused of Southern California medical insurance fraud for falsely billing a provider for work you didn’t really do. Many people in their minds will hold you in the same regard as they hold a man who wanted women to have sex with his dog.

All this is to say, to build a coherent and clearheaded defense against charges like Southern California credit card fraud, insurance fraud, and the like, you need adept legal representation.

Published on: June 28, 2010

Two Convictions Out of Detroit Put Would-Be Southern California Medical Insurance Fraud Artists on Notice

by Michael Kraut

Individuals contemplating committing Southern California medical insurance fraud should be on notice: the government is cracking down. Last June, the Feds initiated a multi-state bust-up of healthcare fraud operations that allegedly bilked the system out of $50 million, collectively. Two of the biggest alleged offenders – Bernice Brown and Daniel Smorynski – got convicted last week in US District Court of a fraud scheme that bilked Medicare out of more than $6.5 million.

Below are the details about the case:

Between October 2002 and January 2007, Brown (who owned a Michigan-based business called Wayne County Therapeutic) and her Vice President, Smorynski, drafted bogus files to bill Medicare for occupational and physical therapies they never actually performed. All told, they submitted $23.2 million worth of claims to Medicare. The courts came down harshly on both of them. Brown got convicted of 10 counts of healthcare fraud and one count of conspiracy to commit fraud – each of these 11 charges has a maximum penalty of $250,000 in fines and 10 years in jail.

Published on: June 14, 2010

Southern California Medical Insurance Fraud Experts Closely Watching Desai Case in Nevada

by Michael Kraut

On Friday June 4th, a grand jury indicted Dr. Dipak Desai on 28 criminal counts – from racketeering to insurance fraud – prompting those who follow stories of Southern California medical insurance fraud to vigorous debate the potential fallout.

Dr. Desai – who was charged along with two of his former employees, Ronald Lakeman and Keith Mathahs – allegedly accidently infected over 100 patients with Hepatitis C at his Endoscopy Center of Southern Nevada from March 2004 through January 2008. Patients at his center allegedly got infected because nurses reused syringes. An astounding 50,000 patients in total might have been exposed to HIV and Hepatitis B in addition to Hepatitis C.

Felony counts against Desai include criminal neglect of patients, medical insurance fraud, obtaining money under false pretences, and racketeering. Desai is in the midst of a filing for Chapter 11 bankruptcy, and representatives for plaintiffs have whalloped the embattled physician (former physician actually, since his license was stripped earlier this year) with a slate of malpractice suits. Attorneys said that the insurance coverage “will be grossly and totally inadequate to satisfy the damage claims of plaintiffs.”

Published on: May 31, 2010

Indictments and Guilty Pleas in Major Southern California Fraud Cases

by Michael Kraut

The Wall Street Journal reported on May 21st that a major real estate developer, Anthony Symmes, has pled guilty to charges of Southern California fraud – and seven other people have been indicted on similar charges. The 59-year old Symmes is the most prolific house builder in the Chico region, and he is alleged to have developed a scheme to sell over 60 houses to earn illegal profits. In addition to the money laundering count, Symmes pled guilty to Southern California mail fraud. The developer has paid $4 million in restitution already into a US Treasury account, and he is cooperating with investigators who are looking into Southern California mortgage fraud charges against another area magnate, Garret Gilliland.

The Wall Street Journal also reported that Sacramento resident, Eric Mortenson, along with two men from Las Vegas, have been indicted on Southern California wire fraud charges in conjunction with a scheme to illegally flip properties for resale. The defendants could get up to two decades in jail if convicted.

Lastly, four Redding, California residents were charged with a smattering of Southern California fraud charges, including money laundering, mail fraud, and conspiracy to commit mail fraud. If convicted, they can face fines of up to $0.25 million as well as 30 years in jail.

Southern California white-collar crimes are taken very seriously by the court system. Different penal code sections cover different crimes, and these cases can often get very complicated and technical. Consider, for instance, that perjury is covered by Penal Code Section 118, mail theft is covered by Penal Code Section 530.5(e), and receiving stolen property is covered by Penal Code Section 496(a). Often, these cases involve extensive paper trails, numerous parties, allegations and counter allegations, and both subtle and glaring violations of business ethics and the law.

To that end, if you or a family member has been charged with Southern California fraud, conspiracy to commit fraud, or any other kind of white-collar crime, you need an attorney who has the wherewithal, skills, and experience to develop an effective strategy for you.

Published on: May 24, 2010

Businessman Ordered to Pay $1.3 Million in Southern California Insurance Fraud Case

by Michael Kraut

On May 7th, an L.A. Superior Court Judge ordered local businessman Joseph Baiden to pay over $1.3 million in restitution for committing Southern California insurance fraud. According to a KPCC news story, Baiden had illegally underreported his workers comp pay roll in conjunction with a company called Nurse Connection Inc. He also failed to pay insurance premiums for workers comp. Initially, Baiden had been ordered to spend five years in prison, but Judge Horowitz agreed to allow the 57-year-old Diamond Bar resident to have five years supervised probation, including 90-days of electronic monitoring. In addition, Baiden will have to pay over $100,000 in investigative fees to the California Department of Insurance.

Moving forward, as a result of pleading guilty to Southern California workers comp fraud, Baiden must submit his tax returns to both the DA’s office and the Department of Insurance and offer clear proof both that he has workers comp insurance and that he is in complete compliance with his payment obligations. Baiden will return to court on November 8th to submit a progress report.

Los Angeles insurance fraud charges can be complicated to understand and difficult to fight. Different laws cover different kinds of Southern California insurance fraud. For instance, Penal Code Section S550(a)(5) defines medical insurance fraud; whereas California Insurance code Section 1872.8 spells out the definition of Auto Insurance fraud.

If you or a loved one is being investigated for any kind of Southern California fraud – from life insurance to medical insurance to auto fraud – odds are that you need a reliable, trustworthy, and trial-proven attorney to see you through the difficult legal proceedings ahead.

Published on: May 17, 2010

Southern California Healthcare Fraud Experts Scratch Heads over Double-Edged Decision in Pennsylvania Case

by Michael Kraut

Last Wednesday, a Federal Judge gave a Pennsylvania doctor, John Kristofic, a year and a day in prison pursuant to a healthcare scam that lasted from 2003 to 2008. Southern California healthcare fraud experts have been poring over Judge Ambrose’s decision to determine whether and how the decision might be impact local cases. dr-John%20Kristofic.jpg

The perplexing saga of Dr. Kristofic
The 62-year-old Dr. Kristofic (of Shadyside, PA) has a long and tumultuous history with the law. Back in the 1980s, he was brought up on charges under the Racketeer Influence and Corrupt Organizations Act of stealing more than a $1 million by billing for non-medically necessary tests. He allegedly invested the proceeds of this scam into private commercial real estate. The doctor settled that case for $0.75 million. He was later arrested and convicted of driving under the influence, AND he got probation for lying about his asset portfolio in 1991.

His latest arrest pertains to similar charges. From 2003 to 2008, Dr. Kristofic allegedly unfairly billed Medicare and other private insurers for services he never provided to his patients. Many Southern California healthcare fraud experts — at this point reading about Dr. Kristofic’s bio –would feel pretty confident that his repeated chronic violations of the law should merit a harsh sentence.

But… the story thickens.

It turns out that Dr. Kristofic has another side — an altruistic and giving one. Among other things, he provided free medical care for organizations like Operations Safety Net, Alcoholics Anonymous, and Catholic Charities. In a 2006 trip to Haiti, he gave out free care to the sick, an act which a local Reverend said “exuded a sense of compassion… it was extraordinary.” And Judge Ambrose received 60+ letters from various people and organizations commending Dr. Kristofic for his charity and extraordinary givingness.

As you can see, cases of Southern California insurance fraud can be a lot more complicated than they first appear in the headlines.

If you or a family member has been charged with healthcare fraud or any other white collar crime in Southern California, consider protecting yourself by retaining high quality legal counsel.

Published on: May 11, 2010

Horrific Case Out of Seattle Illustrates Why Los Angeles DUI Defendants Often Have Such a Hard Road

by Michael Kraut

If you have been arrested for driving under the influence in Los Angeles, your world can turn upside down in just hours. Whether you were incorrectly assessed as DUI (the police made a mistake on your blood work or breathalyzer reading), or you were barely over California’s legal limit of 0.08% BAC, you could face stiff fines, jail time, and other penalties. Obviously, DUI is a serious offense. But a breaking story out of Seattle illustrates why Los Angeles DUI defendants — more, it seems, than other criminal defendants — face such a tough road to rehabiliate their images.

Warning: The following story is disturbing.

Last week, police arrested a 34-year-old man, Shawn Shipp, for vehicular homicide while DUI. Shipp backed into 91-year old Marie Fite, slamming her to the ground. Instead of stopping, he continued to back up, apparently unaware that he had hit a human being. By the time he figured it out, Fite had been severely injured. Shipp fled the scene, but police chased him down and arrested him. Fite died at the hospital. Shipp tested to have a blood alcohol concentration of 0.16% – twice both the Washington and Southern California DUI limit of 0.08%. On top of that, Shipp has a long rap sheet which includes drug possession, motor vehicle theft, assault, driving with a suspended license, and first degree child rape. According to reports, Shipp’s bail has been set at $500,000.

Now, obviously, without knowing more details about the allegations or about specifically what happened, one has to withhold judgment. After all, in the U.S. court system, a defendant is innocent until proven guilty. Nevertheless, the salacious details of the report – including the fact that Shipp is a convicted child rapist – obviously touch an emotional chord in us.

Unfortunately, if you have been tagged with a charge of driving under the influence in Long Beach, many people instinctively will conclude that you must be somehow similar to this Shipp character. And while it is true that driving DUI in Long Beach or elsewhere can be incredibly dangerous and can lead to tragic instances of vehicular homicide, the harsh stereotyping of DUI defendants may not be fair or accurate.

That said, it’s always important to review what punishments can be in store for individuals convicted of serious Los Angeles DUI crimes. Cases in which a DUI victim dies can be charged under the California Vehicular Manslaughter Law. Penal Code section 191.5(a) covers gross vehicular manslaughter while intoxicated. This is a more serious charge than typical vehicular manslaughter charge. Prosecutors must prove four points:

1. Driver was DUI and/or had a blood alcohol concentration of 0.08% or greater.
2. The person committed a driving infraction or misdemeanor while driving – or performed an otherwise lawful act – that could potentially lead to someone’s death.
3. That lawful act, or infraction or misdemeanor, was committed with “gross negligence.”
4. The negligent conduct resulted in someone getting killed.

If the prosecution cannot prove all four points, they will have a hard time getting a conviction for gross vehicular manslaughter while intoxicated. However, prosecutors can choose from an array of charges and request penalties to punish guilty offenders.

Published on: April 19, 2010

Completely Bizarre Southern California DUI Stories (and stories from elsewhere in the U.S.)

by Michael Kraut

Most Southern California DUI cases involve simple roadside stops or failures at sobriety checkpoints. These stops tend to be no-drama affairs — perhaps involving someone driving under the influence in Burbank with a BAC of 0.09% following a night out at a bar in the town center.

But every once in a while, truly bizarre DUI arrests occur. The website TruTV.com recently put up an amusing catalog of notoriously strange DUI arrests. These include:

o Afredo Martinez of Reno, who allowed his 7-year old son to get behind the wheel;
o Tina Williams, who continued to drink beer in front of the police while being questioned about driving DUI — all while a 16-month year old infant was in her car!
o Lynn Bailey, who got pulled over in Florida while wearing a shirt that read “I’m Not an Alcoholic. I’m a Drunk. Alcoholics go to meetings.”
o A Reno woman named April Westfall, who had been driving around with six feet of gas station hose sticking out of her tank when she got pulled over for suspicion of DUI.

Other bizarre stories of Southern California DUI (and DUI elsewhere in the US) include:
o A husband who pulled over his own wife for DUI;
o A father jacked up on cocaine who allowed a 10-year old boy to drive his vehicle — the 10-year-old crashed the car at over 100 miles per hour;
o A woman named Terri Comer, who passed out behind the wheel of her Toyota with a BAC of a mind-boggling 0.72% (9 times the legal limit for a Southern California DUI) — right next to a flashing road sign lit up with the words “don’t drink and drive.”

As amusing as these accounts of bizarre arrests may be, they demonstrate just how helpless many drivers are to control themselves and their behavior. When someone drives under the influence in Beverly Hills or Glendale, that person puts others at risk. What’s more, punishments for DUI with injury can be far more severe.

Consider that most DUI stops lead to charges under either California Vehicle Code Section 23152(a) or 23152(b) but that DUI injury is charged under two separate statutes, 23153(a) and 23153(b). These other statutes stipulate that standard misdemeanor DUI charges can be inflated to felony counts if a DUI driver hurts another person. The severe punishments could entail lengthy prison sentences, forced restitution to a victim (or a victim’s family), major court fines, loss of a right to vote, loss of a job, and so on.

That said, just because someone drives DUI in Glendale and gets into an injury accident doesn’t necessarily mean that he or she will be charged under 23153(a) or 23153(b). To make a case, prosecutors must show that the driver violated a traffic law or in some other way behaved with negligence — and that this behavior caused an accident, which in turn caused an injury. In other words, say you were DUI in Glendale and you hit another car, causing injury. If the other driver was solely responsible for the accident — for instance, if his vehicle suddenly swerved into your lane — you likely will not be hit with the tougher charges, although you likely will still face charges under 23152(a) and/or 23152(b).

Published on: April 12, 2010

Los Angeles DUI Rules for Drivers Under the Age of Twenty-One

by Michael Kraut

California Vehicle Code Section 23152(b) stipulates that anyone who drives a motor vehicle with a blood alcohol concentration (BAC) in excess of 0.08 percent is considered in violation of the law and can be arrested for Southern California DUI.

If you’re convicted, you can go to jail, be forced to pay exorbitant fees and court costs, lose your California driver’s license for a whole year, be forced to install and maintain an interlock ignition device, and face other punishments as well as strict probation terms.

While 0.08 percent is a statewide standard, the rules are different — and stricter — for drivers under the age of 21 years. According to Section 23140 of the California Vehicle Code, anyone under 21 years who drives with a BAC of 0.05 percent or greater is breaking the law. Police can arrest you, and your license can be suspended for a full year.

The zero tolerance law is even stricter. According to California Vehicle Code Section 23136, anyone under 21 years who has a BAC of just 0.01 percent or greater can be penalized with a one to three year license suspension. A police officer can take away your driver’s license and give it back to the Department of Motor Vehicles.

According to official Los Angeles Police Department figures, as based on the US Department of Transportation’s Fatality Analysis Reporting System, California often leads the nation in the number of road-related traffic fatalities. This is partly due to the fact that the state has so many people and so many cars (and so few public transportation options, at least in Southern California).

Minors often do not realize the potency of the alcohol that they consume — particularly as it relates to their driving prowess. Drinking alcohol has been shown to slow reaction times, impair concentration, reduce range of vision, and stoke reckless behavior.

Los Angeles DUI and Hollywood DUI crashes involving young people can lead to awful catastrophes — affecting not only the lives of promising students, athletes, and citizens, but also the lives of other people in the community.

Myriad rules govern driving restrictions on minors. As we’ve discussed, CVC Sections 23136, 23140, 23152 can all be relevant, depending on the details of your Beverly Hills DUI charge. It makes sense to seek advice from a highly regarded, experienced Los Angeles DUI trial attorney.