Fraud

Published on: September 8, 2015

Federal Jury Convicts Windermere Man Of Stealing More Than $2 Million From A Former NBA Basketball Player

by Whittel & Melton, LLC

A federal jury found a 40-year-old Windermere man guilty of 11 counts of wire fraud and 4 counts of filing a false tax-related document.

He faces a maximum penalty of 20 years in federal prison for each wire fraud count and up to 3 years’ imprisonment for each false document charge.

The man’s sentencing hearing is scheduled for November 19, 2015. He was indicted on April 9, 2015.

According to the evidence presented at trial, from 2006 through 2012, the accused was employed as the personal assistant to an NBA basketball player, who has since retired from professional basketball. During calendar years 2008 through 2011, the man apparently stole approximately $2,188,170 from the ball player by making unauthorized online banking money transfers from one of his bank accounts into three different bank accounts that the man controlled. The man spent these funds on his own personal expenses, including mortgage payments for his home in Windermere, and the purchase of a Ferrari and a Range Rover.

The man also filed false joint income tax returns with the Internal Revenue Service for each of these years. In these tax returns, he and his wife never reported more than $60,000 in gross income, when in fact their joint income was significantly greater due to the money the man stole from the former basketball player.

This case was investigated by the Internal Revenue Service – Criminal Investigation, with assistance from the United States Secret Service. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.

Wire fraud can range in criminal acts, including fraudulent schemes for phishing emails, sending electronic checks or money to banks, or communications over the Internet or telephone.

The essential elements of wire fraud include the following:

The defendant intentionally devised or participated in a scheme to defraud another out of money
The defendant did so with the intent to defraud
It was foreseeable that interstate wire communication would be used
That interstate wire communication was used

The term “interstate wire communications” is broad, and refers to any type of transmission by wire, radio, or television communication, including, but not limited to, writings, signs, pictures, faxes, or sounds used in interstate or foreign commerce.

Published on: August 6, 2015

Texas Man Pleads Guilty to ID Theft, Counterfeiting in Clay County

by Whittel & Melton, LLC

A 46-year-old Texas man plead guilty to manufacturing counterfeit Federal Reserve notes, false representation of a Social Security number and aggravated identity theft.

The man faces a maximum penalty of 25 years in federal prison for the counterfeit note and false representation charges, to be followed by a consecutive mandatory minimum of 2 years in federal prison for the aggravated identity theft charge.

According to the plea agreement, on Feb. 2, 2015, the Green Cove Springs Police Department received information that two individuals, one of them later identified as the accused and another man, were manufacturing counterfeit Federal Reserve notes in their hotel room at the Astoria Hotel in Clay County.

The two men apparently had active arrest warrants for parole violations in Texas and were subsequently arrested at the hotel by deputies from the Clay County Sheriff’s Office.

Deputies claim they found a counterfeit $100 note on one of the men after his arrest.

During an interview with law enforcement, the men allegedly disclosed that they were involved in a drug deal in Texas in December 2014 and had been on the run ever since. Police claim they estimated printing and passing at least $10,000 in counterfeit currency. Police also believe they printed counterfeit checks using the identities of others.

Agents claim they located a box of personal identification information and financial documents belonging to other individuals, a printer/scanner/copier with counterfeit checks lying on top of it, counterfeit currency, and various computer media which had been used to manufacture the counterfeit currency during a search of the men’s hotel room.

A third man was also charged in the case for passing counterfeit currency.

This case was investigated by the Green Cove Springs Police Department, the Clay County Sheriff’s Office, and the United States Secret Service Jacksonville Field Office.

Under federal law, it is illegal to defraud, produce, forge, or alter any “obligation or other security” of the United States, which includes money. Penalties for manufacturing counterfeit currency include fines up to $250,000 and up to 20 years in prison. Similar offenses relating to counterfeiting currency include distributing, selling, or possessing counterfeit money and possessing counterfeiting tools.

Published on: July 21, 2015

Illinois Man Accused of Using Fake Credit Cards in Boca Raton

by Whittel & Melton, LLC

An Illinois man is accused of trying to use a fake debit card at a SunTrust bank, according to Boca Raton police.

An email was apparently sent to bank employees warning them of the 23-year-old man after he allegedly attempted to use the card at other branches, according to a Boca Raton police arrest report.

Reports indicate that a card scanner was placed at the back of the bank, so when the man tried to add more than $1,000 on one of his fake debit cards, an employee could easily call police.

The alleged attempted transaction happened at 11:46 a.m. on Thursday when a teller at a SunTrust Bank reported that the man was in the lobby of the bank trying to use one of the fake debit cards.

The teller had already received several emails from other SunTrust banks, warning her that a man was trying to use fake debit cards at other banks.

The teller told the man there was insufficient funds and they couldn’t give him the money, according to reports. When an officer arrived, she claims the man was walking through the bank’s parking lot and she stopped him for questioning.

The teller told the officer that the man came to her window and handed her a NetSpend Visa debit card and asked for a cash advance on the card of more than $1,000.

A detective apparently called a NetSpend representative who said the numbers didn’t match any of their cards.

The officer who questioned the man said he told her he got the card in Chicago.

Police allege that the NetSpend card had information stolen from a woman in Utah. Police also claim they also uncovered a Visa NASCAR debit card in the man’s car with information belonging to a person in Texas, according to the report.

The man faces charges of fraud, grand theft, possession of counterfeit credit cards, and forgery of credit cards. He is being held in the Palm Beach County Jail on $30,000 bail.

A Counterfeit is a copy or replica of an item, usually legal tender or currency, but can also be associated with clothing, software or other tangible goods. Additionally, counterfeiting may be used in the commission of credit card fraud. This occurs when credit cards are recreated or copied in order to make fraudulent or unauthorized charges. Counterfeiting is considered a white collar crime in which an individual or organization will create counterfeit items, usually with the intention of selling these or passing them off as originals. When it comes to money, a conviction for counterfeiting can result in a prison sentence of up to 15 years, along with hefty fines. Counterfeiting charges are aggressively prosecuted by federal prosecutors.

Published on: July 15, 2015

Pasco County Doctor, Office Manager Accused of Medicaid Fraud

by Whittel & Melton, LLC

A Wesley Chapel doctor and his office manager are accused of defrauding the Florida Medicaid program out of more than $100,000.

The male doctor and his office manager, who is also his ex-wife, were arrested Wednesday. Investigators allege the pair billed the Florida Medicaid program for services that were never performed.

The man is an ear, nose and throat specialist. The officer manager’s arrest report lists her as a registered nurse at Moffitt Cancer Center.

Both are facing one count each of Medicaid provider fraud, one count of first-degree scheming to defraud and one count of second-degree criminal use of personal identification information.

If they are convicted, they face up to 30 years in prison. They could also be ordered to pay more than $100,000 in restitution.

The case will be prosecuted by Attorney General Pam Bondi’s Office of Statewide Prosecution.

Medicaid is a federal and state cost-sharing program that provides healthcare to people who are unable to pay for such care. Medicaid Fraud usually targets the providers of services who accept Medicaid and can be prosecuted on the State or Federal jurisdictions.

Common examples of Medicaid fraud can include:

Phantom Billing: Billing for medical services not actually performed
Upcoding: Billing for a more costly service than was actually rendered or Billing for sessions that are longer than what was actually performed
Unbundling: Billing for multiple services that should be combined into one billing
Billing twice for the same medical service
Dispensing generic drugs and billing for brand-name drugs
Kickback: Accepting something in return for medical services
Bribery
Providing unnecessary services
False cost reports
Embezzlement of recipient funds

Published on: June 24, 2015

St. Johns County Woman Charged with ID Fraud

by Whittel & Melton, LLC

A 44-year old Hastings woman was arrested Monday and charged with fraudulent use of personal identification information.

St. Johns County detectives apparently began investigating the woman in March of this year when an Ohio woman reported that her personal information was being used by the woman in St. Johns County.

According to reports, the 44-year-old allegedly accessed the Ohio victim’s Social Security number and, between November 2003 and February of this year, obtained credit from six different creditors to open charge accounts and loans amounting to $19,000 using the the victim’s personal information.

The was booked into the St. Johns County Jail and released a short time later after posting $10,000 bond.

If you have been charged with identity theft or fraud, you should know that there are serious consequences if convicted. In most cases, people charged with credit card fraud, identity theft and other charges relating to identity fraud have no idea about how much trouble they could be in.

Our St. Johns County Criminal Defense Lawyers at Whittel & Melton understand that many good people can make mistakes. One simple mistake does not warrant a state or federal conviction that will haunt you for the rest of your life.

Published on: April 23, 2015

27 Accused of Marriage Fraud in South Florida

by Whittel & Melton, LLC

Federal prosecutors charged 27 South Florida suspects Tuesday with marriage fraud, including organizers, recruiters and unlawful immigrants, according to reports.

The main defendants — two Hialeah men ages 50 and 57 and a 50-year-old Hialeah and a 33-year-old Marathon man— are accused of charging a fee to arrange fraudulent marriages between U.S. citizens and undocumented aliens.

The trio allegedly notarized phony marriage licenses, completed necessary immigration paperwork and prepared the participants for their interviews with U.S. Citizenship and Immigration Services, according to police.

They are accused of arranging the fraudulent marriages between 2011 and 2014, and during that time two of the men also allegedly attempted to obtain naturalization illegally, according to the U.S. attorney’s office.

The case was investigated by Immigration and Customs Enforcement.

Published on: January 22, 2015

UF Women’s Basketball Player Accused of Stealing Credit Card from Teammate

by Whittel & Melton, LLC

A University of Florida women’s basketball player was arrested Friday afternoon after a teammate accused her of stealing her credit card and using it at several stores, a nail salon and a pawn shop.

According to the arrest report, the 21-year-old woman was charged with theft of a credit card and fraudulent use of a credit card. The report identifies the woman as a member of the women’s basketball team.

The victim was listed as the woman’s teammate. The report alleges that the woman took her teammate’s credit card without permission on Jan. 11 from the women’s locker room of the basketball practice facility. According to reports, the locker room is secured by a key code known only to the team, coaches and janitorial staff.

The alleged stolen card was used at Macy’s and a nail salon at The Oaks Mall on Monday, according to police. It was used on Tuesday at some other shops as well as a pawn shop.

On Friday, the woman apparently told police she found the card outside the practice facility and allegedly admitted to using the card at the stores, police said. She told officers she threw the card away after using it.

Credit card fraud often involves identity theft. It can be defined as many things, including:

Stealing a credit card and assuming the victim’s identity in order to purchase merchandise or goods
Theft of credit card data
Using credit card data without permission to make online purchases
Opening a new credit card account using someone else’s information
Using forged credit cards

Published on: December 8, 2014

Clearwater Doctor Charged with Prescription Fraud

by Whittel & Melton, LLC

A Clearwater doctor has been accused of writing fraudulent prescriptions in order to obtain the controlled substances for herself, according to police.

The 50-year-old doctor was arrested Monday at a pain management clinic in Clearwater. She has been charged with two counts of obtaining or attempting to obtain controlled substances by fraud.

The Pinellas County Sheriff’s Office claims they began investigating the woman last month after detectives received a tip that the woman was allegedly writing prescriptions for oxycodone using patients’ names and filling them for herself.

Detectives believe the Tampa Bay area doctor filled those prescriptions at several pharmacies around Pinellas County. Investigators allege that they have surveillance video that displays the woman picking up one of those prescriptions for oxycodone.

The woman was arrested and booked into the Pinellas County Jail without further incident. She was released later in the day after posting $10,000 bail.

The investigation is ongoing, according to police.

Many people that find themselves facing charges of prescription fraud are actually upstanding individuals that had a brief lapse in judgment, became addicted to a prescription after receiving medical treatment or are just being falsely accused. As this case shows, even health professionals like doctors and pharmacists can be slapped with charges of prescription fraud. If you or a loved one has been charged with a prescription drug crime, it is absolutely vital to speak with a Pinellas County Criminal Defense Lawyer at Whittel & Melton immediately.

Doctors, just like unlicensed individuals, can be arrested for prescription fraud. It is illegal for a doctor to write a false prescription, just as it is illegal for anyone else to forge a prescription.

Published on: October 29, 2014

South Florida Man Receives 2 Years in Prison for Unemployment Fraud

by Whittel & Melton, LLC

A South Florida man has been sentenced to nearly two years in federal prison for stealing thousands of dollars in state unemployment insurance.

A federal judge also ordered the 24-year-old Miami man to pay more than $60,000 in restitution last week.

Earlier this year, the man pleaded guilty to aggravated identity theft and other charges.

According to court records, the man used computers at his home to access 188 fraudulent unemployment claims. He apparently was able to obtain payments on 23 of those claims for a total of $60,400.

The money was deposited into various bank accounts controlled by the man.

Bank cameras apparently recorded the man taking money out of those accounts.

Florida state law provides for strict rules and procedures when it comes to an individual’s ability to obtain unemployment benefits. What this also means is that state prosecutors are quick to jump the gun when they suspect someone is taking advantage of the system. Because prosecutors are prompt when it come to pressing criminal charges the outcomes can often result in false allegations, improper charges and poorly run investigations.

If you are accused of unemployment fraud, a Miami-Dade County White Collar Criminal Defense Lawyer at Whittel & Melton can help mitigate the damage. If convicted of unemployment fraud, you may be subject to jail time and be required to repay benefits obtained under false pretenses. Our criminal lawyers can put our skills to work for you and aggressively fight to keep you out of jail or possibly keep you free of a criminal record at all.

Published on: August 12, 2014

Fraud Case Leads to Detectives to Alleged Meth Lab in Alachua County

by Whittel & Melton, LLC

The High Springs Police Department and the Alachua-Gainesville Drug Task Force uncovered what they believe is a methamphetamine lab last week while investigating a case of fraud.

HSPD was investigating a 34-year-old man for alleged fraudulent use of a credit card when they received a confidential tip that the man had methamphetamine inside a cooler at or near a home in High Springs, according to reports.

HSPD went to the man’s home after obtaining a narcotics search warrant. They arrived at the man’s house around 8 p.m. Wednesday and allegedly found a cooler on the north side of the residence containing items used for cooking methamphetamine.

The Alachua-Gainesville Drug Task Force helped execute the warrant and the High Springs Fire Department was on scene for safety reasons.

The man was in the custody of the Alachua County Sheriff’s Office before the investigation began of the drug charges. The man is now facing additional charges of possession with intent to manufacture or sell a controlled substance.

In the state of Florida, possession of a controlled substance with intent to sell, manufacture or deliver can be classified as a second or third degree felony. The charges all depend on the type of substance involved. The consequences of a conviction for this type of drug charge are extremely harsh, with a very significant possibility of jail or prison time.

It is important to realize that in many Florida drug possession cases, the accused does not have any actual intent to sell the drugs in question. The term “intent to sell or manufacture” is usually added to simple possession charges in order to increase the penalties of an offense or intimidate the accused.

In most cases, the evidence admitted by the prosecution for charges of possession with intent to sell or manufacture are consistent with personal use. Paraphernalia found on the property is often used to tack on additional charges. However, it can be difficult for the prosecution to prove that the accused was in possession of all the drugs and/or paraphernalia that indicated an intent to sell.