White Collar Crime

Published on: May 17, 2010

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

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: November 27, 2009

Alan M. Ralsky, the “Godfather of Spam,” Convicted of Fraud in Southern California (and elsewhere)

by Michael Kraut

The Department of Justice emerged victorious on Tuesday in a case against Alan M. Ralsky, the self-titled Godfather of Spam. The 64 year-old Ralsky was sentenced to jail time as well as substantial fines for computer fraud in southern California and elsewhere.

The DOJ had argued that Ralsky — in conjunction with a ring of associates — violated the CAN SPAM Act and engaged in money laundering, mail fraud, wire fraud, and illegal use of emails and computer networks. Court documents said that his spammer ring worked for about a year and a half (from 2004 to mid 2005) to artificially jack up the prices of certain stocks by sending out bulk spam emails to people. After the stock prices went up, other individuals in the white collar crime syndicate traded on those stocks. Collectively, they thus managed to rake in millions of dollars in illegal gains.

The spammers used sophisticated software to avoid detection and conducted their operations not only here in the United States but also in China and Hong Kong.

Microsoft, in particular, seemed delighted by the news of the conviction of these white collar criminals. A company spokesman remarked: “Yesterday’s sentencing is a significant success and sends a clear message that the courts take this type of illegal conduct seriously.”

As a good white collar criminal defense attorney in Southern California might note, Penal Code sections 502(c) and 530.5(e) respectively cover computer access and fraud and mail fraud. Of course, with intricate computer fraud cases like this one, the issues of law can get quite complex. For instance, to prepare for the Ralsky matter, prosecutors no doubt had to consider not just applicable federal and state laws but also international laws.

Putting together a strategic battle plan for a fraud case can get incredibly technical. Both sides must assemble complicated cause-and-affect arguments. The prosecution, for its part, has to identify the mechanisms by which the alleged fraud acts were committed — no small task, particularly when you’re dealing with sophisticated spammers and computer gurus. The defense doesn’t have it easy either. In order to combat charges of computer fraud, the defense must aptly challenge the logic of the prosecution’s arguments and cite relevant laws and cases.

If you or a family member or friend has been charged with a white collar crime, like computer fraud in Los Angeles, you may want to speak with veteran criminal defense Attorney Michael Kraut of the Kraut Criminal & DUI Lawyers. Attorney Kraut has impressive intellectual firepower — he is a graduate of Harvard Law School. He also has lots of experience “in the trenches” — he served for years as Deputy District Attorney for the City of Los Angeles prior to representing white collar defendants. He has a knack for anticipating and deftly deflating prosecutorial arguments — arguments that often leave even experienced defense attorneys confused and helpless.

With so much on the line — not just for you but also for your family — it makes sense to work with one of Southern California’s most trusted fraud defense attorneys.

Published on: November 18, 2009

Los Angeles Bankruptcy Case Pits Actor Nicolas Cage against His Former Business Manager

by Michael Kraut

Nicholas Cage has long been one of Hollywood’s leading lights. Unfortunately, a combination of overspending and possible Los Angeles embezzlement — along with the collapse of the global markets in 2008 — has beset the A-lister with serious financial problems.

Cage will soon face off against his former business manager, Samuel Levin — the two parties have sued and countersued each other — over charges that include embezzlement in Los Angeles.

According to an AP story, Levin has accused Cage of engaging in no-holds-barred spending sprees — against his counsel — over the course of many years leading up to the banking collapse in the fall of 2008. The actor allegedly purchased 15 houses, 22 cars (including nine Rolls-Royces), a “flotilla of yachts,” a pair of European castles, a Gulfstream jet, ornate jewelry and pieces of rare art, and other “exotic items.” In addition, the actor allegedly spent lavishly on “Gatsby style” affairs at his various estates, further undermining his cash flow. Cage maintains that his business manager kept him in the dark about the state of his finances.

The legal battle between the actor and his former manager will surely soak up a great deal of media attention when it commences in February 2010.

Even an experienced white collar criminal defense lawyer in Los Angeles might be challenged by a case as complex and as public as this one. An extensive investigation into financial practices, accounting ledgers, and other records may be required to build a solid defense; and it can be quite difficult — even for experienced investigative teams — to determine the “truth” about such convoluted financial situations.

Charges of embezzlement are relatively common in Hollywood, where individuals with lots of liquid cash — such as movie stars and studio heads — rely on proxies to manage their day-to-day financial operations. If someone’s convicted of embezzlement in Los Angeles, he or she can be charged with either a felony or a misdemeanor. Common punishments can include:

• forced restitution
• fines
• jail sentences
• loss of professional credentials and licensing

If you or a friend or family member has been charged with embezzlement in Southern California or a Los Angeles DUI, it may behoove you to speak with attorney Michael Kraut of the Kraut Criminal & DUI Lawyers. Attorney Kraut boasts extensive experience with white-collar crimes in Southern California. He’s worked on literally dozens of relevant cases — including a jury trial, which he argued successfully. He’s a Harvard Law School alumnus and a former prosecutor for the city of Los Angeles. He has a natural acumen for the law, and he provides each client with compassionate and proactive representation.

Published on: November 12, 2009

20 Suspects Arrested for Los Angeles Health Care Fraud: Allegedly Bilked Medicare of $26 million

by Michael Kraut

According to the AP, Los Angeles authorities have arrested and indicted 20 people for Los Angeles health care fraud over the past two weeks. The suspects allegedly scammed the Medicare program out of $26 million. The strike force that conducted the operation has been working since 2007 to combat criminal organizations that steal literally billions of dollars every year from the coffers of Medicare and Medicaid. All told, 331 people have been indicted in a series of 4 separate sweeps since 2007.

A Los Angeles white collar crime attorney will likely be assigned to help the defendants develop a strategy. A Justice Department official said the accused may have been active members in a criminal gang. One defendant, 30-year-old Michael Martinez, allegedly recruited friends and relatives to help with the scheme, which involved purchasing wheelchairs for people who didn’t exist or who had already died. They also billed for hospital beds that no one needed or used.

If you’re convicted of health care fraud or white collar crime in Los Angeles, penalties can be swift and can include a jail sentence, forced restitution to victims, and other fines. Many suspects make ill-advised statements to authorities that can compromise or even cripple their chances at an adequate defense. To develop a solid strategy often requires combing through reams of paperwork and potentially challenging the government investigation on technical points. In cases of Medicaid fraud in Southern California, defendants may not have much margin for error. Presidential Obama’s Justice Department and Attorney General Holder have both publicly committed to reining in Medicare and Medicaid fraud and making examples out of those arrested to deter gang members and other organized criminal elements from further defrauding government entitlement programs.

Published on: November 5, 2009

White Collar Crimes in Los Angeles Nab Lawyers and Chiropractors in Fraud Case

by Michael Kraut

During the last several months, the Los Angeles County District Attorney’s Office as well as State and local law enforcement have been working diligently to amass a group of Los Angeles fraud cases, medicare fraud cases, and Los Angeles white collar criminal cases against local lawyers and chiropractors. In the last week, two dozen professionals were arrested for white collar fraud cases throughout Southern California and Los Angeles. The lawyers and chiropractors arrested were alleged to have participated in a large scale auto insurance fraud ring that Nearly two dozen men and women, including lawyers and chiropractors, were arrested Tuesday, accused in a large scale auto insurance fraud ring that netted hundreds of thousands of dollars.

There were at least four lawyers and four chiropractors that were arrested during the raid. The auto insurance fraud division of the DA’s Office is prosecuting the case. Top rated white collar criminal defense attorneys are being hired to handle these fraud cases.

The lawyers and chiropractors are accused of ripping off over a dozen insurance companies by filing false medical claims and lawsuits. The case has grown to involve more then 28 defendants and may involve a conspiracy that involves in excess of 300 suspects.

The Los Angeles white collar fraud charges stem from a series of Los Angeles grand theft charges, including grad theft of personal property. The attorneys are charged with insurance fraud in Los Angeles County. One attorney also faces money laundering charges.

The charges of grand theft are in violation of Section 487 of the Penal Code. The prosecutors also added the the white collar enhancement under 186.22 of the Penal Code. This section allows for enhanced punishment if the suspect is convicted, including mandatory prison time.

Published on: September 16, 2009

Dr. Conrad Murray Will Likely Be Charged in the Michael Jackson Case Which is to be Presented to the Los Angeles District Attorney’s Office

by Michael Kraut

Police investigators in the Michael Jackson case are almost ready to present their case to the Los Angeles County District Attorney’s Office for a formal felony criminal filing. Sources within law enforcement are focusing their sights on Dr. Conrad Murray. As of the date of this blog post, Dr. Murray is reportedly the only target of the investigation.

Dr. Conrad Murray has been implicated in the death of the pop star by infusing Michael Jackson with Propofol, a very potent anesthetic drug, to help him sleep.

This blogger’s sources indicate that the the Los Angeles Police Department had been consulting with the Deputy District Attorney’s from the Target Crimes Division since shortly after the pop star’s death. Only recently did the case get transferred to the Major Crimes Division for felony filing consideration. This is the group that prosecuted OJ Simpson and other famous people.

The LADA is not the only government agency investigating the death of Michael Jackson. California State Attorney General Jerry Brown has announced that he will be reviewing the prescriptions written to the pop star to see if there were any violations of law. It is illegal to write a prescription for a person in a name other then the patient’s true name. Many of the pill bottles seized from the Jackson compound on June 25, 2009, the date that Jackson died, had fake names.

Published on: September 2, 2009

Warrant Issued For the Arrest of Bobby Brown…Is He in Los Angeles?

by Michael Kraut

Celebrity singer and husband to Whitney Houston is wanted for a warrant issued by a judge. Some people think that he is hiding in Los Angeles, California. A Massachusetts judge issued a warrant for the arrest of Bobby Brown after he failed to pay child support. Brown was previously ordered to pay $45,000 in child support to the two teenager children he has from a previous relationship with his former girlfriend, Kim Ward.

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The law surrounding warrants in Massachusetts is almost identical to a Los Angeles bench warrant. There are two different ways in which a bench warrant can be issued for the arrest of a person. The first is if a person is wanted for a crime. The judge will issue an arrest warrant. Once that is issued then law enforcement will arrest you and take you into custody. The second way a warrant can be issued is if you were supposed to be in court, or were ordered to do something by a judge and you failed to perform satisfactorily.

A warrant should be cleared as soon as you become aware of one being issued. Otherwise, you might not be able to get the best result on a case. In Los Angeles, a warrant while on probation could harm your chances to have your case expunged after you have completed a grant of probation.

A Los Angeles bench warrant attorney is be able to assist you in getting the warrant recalled and quashed as well as able to help you get a Los Angeles expungement.

Published on: August 24, 2009

Los Angeles Death of Michael Jackson Ruled a Homicide

by Michael Kraut

The Los Angeles County Coroner released the autopsy results in the Michael Jackson case. They ruled that the pop star’s death was a result of a “homicide”. From the very beginning, leading Los Angeles criminal defense attorneys were indicating that the death must first be determined to be a homicide before any criminal case could proceed.

As stated in the autopsy report, the death was the result of “lethal levels” of the powerful anesthetic Propofol. This information was released in a search warrant affidavit that was unsealed today in Houston, Texas. For weeks, there had been speculation that the Coroner already had the results but was asked to delay the release until the criminal investigation could unfold.

From the beginning, Dr.Conrad Murray has been the focus of the violent crimes investigation. As recently as last week he placed a video of himself on Youtube with an explanation of some of his actions.

Dr. Murray had been Jackson’s personal physician for most of the last year. It has been leaked from the investigation that Murry told Los Angeles Police Department detectives the had been treating Jackson for insomnia for approximately 6 weeks before his death. He admitted that he had given Jackson 50 Milligrams of Propofol, also known as Diprovan, by intravenous drip.

Police reports indicate that Dr. Murray had administered several drugs, other then propofol, throughout the night. These drugs, according to Dr. Murray, did not have their intended result and finally at 10:40 AM he administered 25 milligrams of Propofol to Jackson. Dr. Murray claims that he monitored Jackson while he was on the drug and left his bedside for 2 minutes to go to the bathroom.

Police reports indicate a far different set of facts. According to police documents, Dr, Murray left Michael Jackson alone for significant periods of time while he called his office in Houston. It was during this time that Jackson stopped breathing and Dr. Murray began CPR to attempt to resuscitate Jackson. Jackson was rushed to the hospital where he was later pronounced dead. Within Dr. Murray’s medical bag officials found Propfol, as well as other drugs.

In order for the Los Angeles County District Attorney’s Office to file involuntary manslaughter charges, they will need to show that the standard of care by Dr. Murray fell well below the acceptable and appropriate actions for a reasonable person in his situation. One of the factors that the prosecution may be considering is the warning label of the drug. Manufacturers of Propofol indicate that the drug should be used only by licensed anesthetists and in a hospital setting so as to be able to intubate the patient if necessary. Here that was not done.

It is expected that charges will be perused in this case against Dr. Murray as well as some of the other treating physicians.

Published on: August 21, 2009

Los Angeles Reality Star is Sought by Police for Murder in Buena Park

by Michael Kraut

Three days after a former model’s body was found stuffed in a small carry-on suitcase, the facts are beginning to appear more clear. Jasmine Fiore, 28, an aspiring real estate agent and former model was found dead as a result of murder……the person of interest, her former husband. The purported suspect, Ryan Jenkins, was a two time reality star who always wanted attention and the limelight. Now, he has suddenly disappeared and is in need of a Los Angeles criminal defense lawyer. All of the facts are not yet known. What is clear is that the Jenkins and Fiore had a brief, but stormy relationship.

Fiore and Jenkins were last seen at a poker game in San Diego. On Saturday, Jenkins reported missing to the Los Angeles County Sheriff’s Department. Shortly thereafter he disappeared completely off the face of the earth. Based upon circumstantial evidence, Jenkins should seek the advice of a pre-filing Los Angeles criminal defense attorney.

They met in March of this year in Las Vegas, spent two days together and then got a Vegas “quickie” marriage. Things apparently did not last too long. After arguing constantly, Fiore filed for an annulment from the marriage. That stormy marriage resulted in a criminal filing of domestic violence against Jenkins. Jenkins was charged with misdemeanor battery. He was scheduled to go on trial this December for the violent crimes he committed against her.

Jenkins also had a criminal charge in his home country of Canada. In January 2007, he was given probation for an assault charge.

The victim’s mother indicated that Fiore and Jenkins had been fighting recently over her past boyfriends. Apparently, he was jealous of the fact that Fiore had always remained good friends with people that she had previously dated.

Jenkins was just beginning his new career of attempting to become a reality star. He had just appeared on three episodes of “Megan Wants a Millionaire.” He was identified as a wealthy investment banker bachelor on the series. However, now he has disappeared
Preliminary results show that Fiore was murdered by strangulation. The final autopsy report is pending and until it is released, the cause of death is officially undetermined.

Published on: August 17, 2009

Los Angeles White-Collar Crimes About to Be Charged Against UBS Clients in the United States

by Michael Kraut

One of the first criminal prosecutions arising out of the settlement between the United States and the Swiss bank UBS, the second largest wealth manager, has just occurred in Los Angeles this week. The Federal government had sued the Swiss bank in order to gain access to the names of Americans who had participated in Los Angeles white-collar crimes by not disclosing assets as a well as tax evasion.

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The prosecution of Malibu resident, John McCarthy, occurred after UBS disclosed 250 names of U.S. residents who had illegally transferred money out of the country and hid the money at the Swiss bank. The Feds filed the lawsuit in order to compel UBS to turn over the names of 52,000 Americans who were suspected of hiding in excess of $13 billion of money and other assets. Because of the number of names that are sought for possible prosecution, and the extent of possible criminal charges, it is important to hire a pre-filing Los Angeles criminal defense attorney. A top-notch criminal defense attorney will be able to counsel his client on the best way to either comply with the law, or get amnesty for previous improper acts.

The settlement reached with Swiss banking authorities resulted in UBS paying $780 million in fines and turned over 250 U.S. names and information concerning those, and other individuals that used the banks services. Based upon this information, McCarthy was charged with tax evasion and secreting assets into the Swiss bank without disclosing those assets. Prosecution of these white-collar crimes in Los Angeles and Southern California are increasing as the Feds come close to the end of an amnesty period that ends on September 23, 2009
White-collar prosecutors will aggressively seek cases against those who do not come clean before that fateful date. McCarthy faces up to 5 years in prison and $250,000 in fines, and full restitution. He will appear in a Los Angeles court on September 14, 2009.