Fraud

Published on: April 28, 2014

Gainesville Doctor Charged with 210 Federal Charges

by Whittel & Melton, LLC

A Gainesville doctor who was under federal investigation for years has been charged with 210 counts of health care fraud and money laundering.

The 57-year-old is accused of submitting fraudulent claims for needless tests, buying drugs from outside the U.S. that are not permitted for use here and providing those drugs to patients without their knowledge or consent, according to a news release from the U.S. Department of Justice.

The incidents allegedly occurred at a clinic she owned in Hawthorne from 1998 to 2009 and at a clinic on Northwest 16th Avenue in Gainesville from 2010 to 2013.

The woman surrendered on Tuesday and entered a plea of not guilty, according to reports. Her trial is scheduled for June 14.

The woman faces up to 10 years in prison for each of the health care fraud counts, up to three years for each of the Federal Drug Administration counts and up to 10 years on each of the money laundering counts.

Prosecutors allege that the woman submitted fraudulent claims to insurance companies for unnecessary medical procedures and services that were not actually performed or provided. According to reports, the claims were submitted to Medicare, Medicaid and Blue Cross Blue Shield of Florida.

The woman is accused of using some of the money from fraudulent claims to buy non-FDA-approved drugs and devices from outside the U.S., and submitted fraudulent claims for the dispensation of the drugs. Prosecutors also allege that she gave these drugs to patients without their knowledge.

Several state and federal agencies were involved in the investigation that led to the woman’s indictment.

The woman apparently closed her clinic in January 2013 because the investigation tarnished her reputation and wrecked her financially.

Reports indicate that the woman donated all of her medical equipment to a children’s hospital in Guatemala and has been volunteering for various local programs since her officer closed its doors.

If you are under investigation for federal health care fraud charges, you must take swift action and protect yourself by consulting with a federal criminal defense attorney as soon as possible. The sooner you enlist legal help, the more likely your lawyer can put a stop to further investigations and possibly prevent charges from ever being filed.

Health care fraud charges often arise from the following:

Medicaid and Medicare Fraud
Insurance Fraud
Kickbacks
Fraudulent Billing for Medical Services
Up-coding Medical Treatments or Services
Fraudulent Billing for Medications or Medical Equipment

A conviction for health care fraud carries extremely serious consequences. Not only do you face prison time and substantial fines, but you also risk losing everything you have worked so hard for, including any professional licenses or certifications that you hold as a medical provider.

Published on: March 27, 2014

Martin County Federal Crimes Defense Lawyer :: West Palm Woman Accused of Stealing 700 Identities

by Whittel & Melton, LLC

A West Palm Beach woman faces federal charges of identity theft and tax fraud after she allegedly stole personal information from more than 700 people.

The 39-year-old woman is accused of stealing personal information and storing it in a notebook that included names, dates of birth and Social Security numbers, according to the United States Attorney for the Southern District of Florida.

Investigators allege the woman may have used some of the names to get prescription drugs, according to federal court records.

The accused and two others were arrested in October 2012 for credit card fraud greater than $100 in Martin County. Police were notified after a shoplifting incident was reported at the Treasure Coast Mall.

Once detained, officers claim they uncovered notebooks filled with 726 names and Social Security numbers, most of which belonged to people in Boynton Beach and Delray Beach, 20 debit cards and an iPad, according to federal records.

According to IRS investigators, most of the names and account numbers the woman had in her possession were used to file fraudulent tax returns that sought tax refund payments to credit and debit cards.

The Martin County Sheriff’s Office referred the woman’s case to the IRS. Federal records indicate that the woman told federal investigators a man she knew had broken into a car on the day of her arrest, and stole credit cards and a gun.

The woman and the two men she was with are all convicted felons. According to Palm Beach County records, the woman pleaded guilty to felony battery in 2000 and 2004. She was also convicted of fraudulent use of a credit card in Palm Beach County in 2001.

She allegedly admitted to police that she and one of the men had broken into multiple cars and stolen credit cards. Police claim she told them she stole identification information to help others. She denied filing false tax returns.

However, investigators claim the woman filed false 2012 tax returns in early 2013 after her October 2012 arrest. Federal documents allege that the woman’s home contained additional names, information and letters from the IRS not addressed to her. Records indicate that the woman also had tax software on her computer with 2012 tax return information.

Investigators allege they found multiple returns that had been filed from the woman’s IP address.

The woman faces charges of unlawful possession of unauthorized access devices and five counts of aggravated identity theft. She faces 10 years in prison if convicted and is currently being held without bail.

If you have been charged with identity theft or any other related crimes, you must act fast and mount a hard-hitting, proactive defense. Make no mistake that the prosecution will be pushing hard for a conviction, and failing to address these charges early on could be the difference between a conviction and a successful outcome.

Due to the advances in technology and the Internet, identity theft has become a major criminal offense within the past few years. Often times these offenses cross state lines or are charged alongside with other serious criminal offenses, thus making them federal crimes. A Martin County Criminal Defense Attorney at Whittel & Melton knows the unique differences between state and federal criminal charges and can provide you with the strongest legal representation so that you can achieve an outcome that you can live with.

Published on: February 4, 2014

Sarasota County Federal Criminal Defense Attorney :: Southwest Florida Man Pleads Guilty to Medicare Fraud

by Whittel & Melton, LLC

A Florida man plead guilty in early 2014 to attempting to defraud Medicare of more than $28 million after buying several rehabilitation clinics, including one in Venice.

The U.S. Department of Justice claims the man bought up the clinics so he could gain access to the clinics’ Medicare provider numbers.

A Florida man faces up to 15 years in prison for attempting to defraud Medicare of more than $28 million after buying several rehabilitation clinics.

The 53-year-old man, formerly of Southwest Florida, pleaded guilty to conspiracy to commit healthcare fraud and making a false statement relating to healthcare matters.

He faces up to 15 years in prison.

According to a Department of Justice statement, the man was the head of a Delaware holding company that he allegedly used to buy several comprehensive outpatient rehabilitation facilities and outpatient physical therapy providers throughout Florida in the mid-2000s.

Those offices included clinics in Venice, Fort Myers, Lake Wales and Port St. Lucie.

Once they owned the clinics, the man and other company executives apparently obtained identifying information of both Medicare beneficiaries and physicians, which they then used to create and submit false claims for therapy services that were not prescribed and not provided.

DOJ officials claim the man and his co-conspirators forged patient records in order to hide the services they billed Medicare for that had not actually been provided.

The man and his co-conspirators are accused of filing $28.35 million in fraudulent claims with Medicare from 2005 through 2009. Medicare paid approximately $14.4 million on those claims, according to reports.

Authorities allege that once the man received enough Medicare money out of clinics, he sold the storefronts to “straw owners,” who were all recent immigrants to the United States and had no experience working in the healthcare industry.

The DOJ unsealed a 30-count indictment against the man and one of his co-conspirators, a 57-year-old disbarred attorney, in April 2012.

The 53-year-old man has pleaded guilty to two of those charges – conspiracy to commit health care fraud and making a false statement relating to health care matters.

Healthcare fraud cases cost the government millions of dollars each year. The government often makes mistakes and accuses innocent medical professionals and clinic owners of committing federal crimes in order to try and recover their losses from fraudulent claims. Unfortunately, when you are accused of committing Medicare or any other type of healthcare fraud, your family, career and reputation are at risk.

Published on: November 12, 2013

Lee and Charlotte County Criminal Defense Lawyer :: Five Arrested in SWFL Clinic Fraud Sweep

by Whittel & Melton, LLC

Five people working at clinics in Fort Myers and Port Charlotte were arrested after police concluded an investigation into alleged false personal injury claims at these facilities.

The arrests included clinic owners, massage therapists and chiropractors who have been charged with patient brokering and solicitation in support of what police call a large school personal injury protection fraud ring.

The investigation was conducted by the Florida Department of Financial Services’ Division in partnership with Nationwide Insurance Company. It was apparently discovered that employees at rehab centers in Fort Myers and Port Charlotte were advising patients to sign documents for rehabilitation services for injuries that occurred during auto accidents.

The clinics are accused of billing insurance companies for treatments that apparently never occurred. The investigation allegedly uncovered that the Port Charlotte facility was operating without the proper license.

A 31-year-old receptionist, a 52-year-old massage therapist, a 51-year-old facilitator, a 51-year-odl clinic owner and a 63-year-old chiropractor were all taken into custody.

The department’s investigation was also led by the Lee and Charlotte County Sheriff’s offices. The suspects were booked into either the Charlotte County Jail or the Lee County Jail.

According to police, the suspects are awaiting bond. If convicted, they each face up to five years in prison.

There are many different types of insurance fraud or insurance crimes that a persona can be accused of. Essentially, insurance fraud is the crime of providing false information to an insurance company about a claim so that the company will agree to cover any costs related to losses or damages.

Published on: October 24, 2013

Orange County Criminal Defense Lawyer :: Ocoee Ex-Commissioner Accused of Selling Counterfeit Body Armor

by Whittel & Melton, LLC

On Monday, a former Ocoee city commissioner and local business owner, was arrested on fraud and counterfeiting charges for leading a scheme to sell fake bulletproof vests.

Two of the man’s employees were also arrested and charged with fraud and counterfeiting.

Florida Department of Law Enforcement officials claim counterfeit bulletproof vests have been sold online and at gun shows throughout the state by the man’s Ocoee-based business.

Fake body armor is usually pieced together with duct tape using old body armor pieces.

Agents allege the vests the man was selling could not stop a bullet. They claim the man placed fake brand-name labels on body armor manufactured at his Ocoee warehouse and sold the items online and at gun shows across the state.

According to agents, the company had its own special line of body armor that when tested, “every round went through it.”

Agents allege that the man has been selling these counterfeit vests for around two years.
FDLE’s investigation started in August after someone purchased one of the man’s vests at a gun show in West Palm Beach. While the label on the vest did bear the name of a reputable brand, the purchaser was suspicious and took the vest to the manufacturer to confirm the item’s authenticity, according to agents.

The company apparently confirmed the item was counterfeit and notified FDLE.

FDLE agents raided the former commissioner’s facility on South Cumberland Avenue in early September. Agents allegedly found counterfeit body armor affixed with phony labels from various companies. They claim employees were sewing old pieces of body armor together, sometimes using duct tape, in order to create products that looked brand new.

It is unclear at this time how many alleged counterfeit vests were sold, but agents estimated 10 to 15 a weekend could have been sold at gun shows. The items sold for $600 to $900 each.

The 57-year-old former commissioner and one of his employees were booked into the
Orange County Jail on Monday and released after posting bail. If convicted of fraud and counterfeiting, the pair could face up to 10 years in prison per count.

The man’s other employee that was arrested is currently being held in the Pinellas County Jail on unrelated federal gun charges out of Tampa. He is accused of selling unregistered weapons, including a machine gun. Reports indicate he was indicted in August and arrested last month.

Published on: October 11, 2013

Lake and Citrus County Criminal Defense Lawyer :: Woman Accused of Posing as Nurse Charged with Slew of Crimes in Lake and Citrus County

by Whittel & Melton, LLC

A woman accused of pretending to be a nurse and treating patients at a Lake County home healthcare facility has been arrested and charged with running an unlicensed assisted living facility.

According to Lake County sheriff’s detectives, this is not the woman’s first run in with the law.

Before she allegedly duped a home health care facility into believing she was a licensed nurse in May, the Citrus County Sheriff’s Office arrested her in December for scheming to defraud and criminal use of personal information.

Records indicate that for the May charges, the woman was released on $2,000 bail.

Investigators claim that the woman went to the Lake County home health care facility to become an office manager in May, but during the interview she produced paperwork and documentation showing she was a licensed practical nurse.

The woman apparently made home visits to patients on several different occasions.

The woman was fired just weeks after she started her position, after an audit by the
Florida Department of Health and detective work by the Lake County Sheriff’s Office allegedly uncovered she was not licensed to practice in Florida. Moreover, detectives allege she made her own license.

She is accused of using another registered nurse’s license number for the state and placing her name on the license.

The nurse the woman is accused of impersonating works at Saint Petersburg General Hospital and shares an almost identical name with the woman.

Lake County sheriff’s investigators claim they are currently working to identify any additional patients in the community that may have been treated by the woman.

Just like doctors, attorneys, dentists, veterinarians and other professionals, anyone wishing to become nurse must first obtain a license. This is something the state of Florida requires, as well as all other states. Practicing nursing without a license is a serious crime that carries very harsh consequences, including incarceration, fines, probation and even restitution to any victims that suffered any harm.

Published on: October 10, 2013

Boca Raton lawyer receives 3-year sentence for obstruction, money laundering and witness tampering relating to Rothstein Ponzi scheme

by Whittel & Melton, LLC

Add another attorney to the collateral damage of Scott Rothstein’s $1.4 billion Ponzi scheme.

The Sun Sentinel is reporting that a Palm Beach County lawyer and former counsel to Kim Rothstein received a three-year prison sentence for plotting to help her conceal more than $1 million in jewelry she hid from federal authorities, as they seized her husband’s assets.
Charged conspiring to commit money laundering, obstruct justice and witness tampering, Rothstein’s attorney faced a maximum penalty of five years in prison.

After pleading guilty to these charges in January, the Boca Raton attorney was disbarred. His 36-month imprisonment will be followed by two years of supervised release. As part of his plea deal, the attorney agreed to forfeit $515,000 to federal authorities — including compensation he received for legal fees from Kim Rothstein, as well as four expensive pens and jeweled cuff links.

According to reports, the attorney’s lapse in judgment was a result of viewing Rothstein as a friend and not as a client. When pleading to the judge for a minimal sentence for her client, his attorney stated that “he saw this woman drowning and he tried to help her…she was losing everything in the world through no fault of her own. … He handled this horribly, and what he did was absolutely wrong.”

Published on: October 9, 2013

Collier & Lee County Criminal Defense Lawyer :: Southwest Florida Couple Arrested for Obtaining Controlled Substances by Fraud

by Whittel & Melton, LLC

A joint investigation conducted by the Florida Department of Law Enforcement Ft. Myers Regional Operations Center and the Collier County Sheriff’s Office in August resulted in the arrest of a Collier County Corrections Corporal and his wife on numerous charges of prescription drug offenses.

Agents arrested the 44-year-old Fort Myers woman on 23 counts of obtaining controlled substance by fraud and two counts of principal in the first degree for obtaining a controlled substance by fraud. Her husband, a 29-year-old Correctional Corporal for the
Collier County Sheriff’s Office was arrested on two counts of obtaining controlled substance by fraud and two counts of principal in the first degree for obtaining a controlled substance by fraud.

The investigation apparently began in January 2012 after the FDLE received information from the Collier County Sheriff’s Office that the alleged suspects were fraudulently obtaining numerous controlled substances at pharmacies in Lee and Collier counties.

Police claim that the woman fraudulently called in prescriptions and/or refills for Xanax, Vicodin and Ambien into various pharmacies for herself and her husband while she was employed at Advanced Medical Center in Naples.

The woman was booked into the Lee County Jail while her husband was booked into the Collier County Jail.

Obtaining a Controlled Substance by Fraud is a third-degree felony in Florida. Fraudulently obtaining medical prescriptions can carry very serious consequences, including multiple years in prison. In order to prove this crime, prosecutors in the state of Florida must prove that the controlled substances were obtained through misrepresentation, fraud, forgery, deception or subterfuge.

There are many ways to fraudulently obtain medical prescriptions, some of which include:

• Falsifying Prescriptions
• Altering Prescriptions
• Counterfeiting Prescriptions
• Impersonating a Doctor
• Stealing Blank Prescription Pads
• Using One Prescription to Obtain Multiple Refills
• Visiting Multiple Doctors for Medical Prescriptions, also known as “Doctor Shopping”

Published on: August 16, 2013

Monroe County Man Wanted charged with Credit Card Fraud arrested while fleeing the Florida Keys to Russia

by Whittel & Melton, LLC

Florida Keys resident Alex Bogomolny had an outstanding $1.5 million arrest warrant based on allegations that he conducted multiple counts of fraud, specifically, trafficking in counterfeit credit cards and identity theft.

According to reports, he was picked up by the Monroe County Sherriff’s Office Tuesday as he was trying to catch a flight to Russia.

That day, the sheriff’s office received word that Bogomolny had flown out of Key West to New York but had missed his connecting flight to Russia. He was waiting in the John F. Kennedy airport for another flight, when he was apprehended.

Working with Immigration and Customs Enforcement agents, the Monroe County Sheriff’s Office alerted ICE agents that he was trying to flee the country. ICE agents found Bogomolny at the JFK and took him into custody.

Bogomolny will be returned to Monroe County to face charges.

Bogomolny’s scheme was discovered when he was picked up for allegedly stealing a bicycle in Big Pine Key. When his personal belongings were collected when he was questions, Officers found over two dozen credit cards with different people’s names on them. Bogomolny was unable to give a good explanation for his possession of so many cards, which prompted law enforcement fo start an investigation. During this investigation, investigators found that he was opening up credit accounts under other people’s names, according to the sheriff’s office, prompting the arrest warrant.

Published on: May 9, 2013

Florida Criminal Defense Attorney :: Boca Raton Company Accused of Medicare Fraud Targeting Senior Citizens

by Whittel & Melton, LLC

Med-Care Diabetic and Medical Supplies Inc., based in Boca Raton, FL has fallen under intense scrutiny after a recent investigation into medical equipment suppliers has indicated signs of Medicare fraud.

The federal government is concerned that loopholes in the law and a lapse in management have allowed the Boca Raton company, and others like it, to exploit Medicare, resulting in taxpayers footing the bill.

Democratic Missouri U.S. Sen. Claire McCaskill, who has opened a congressional investigation into the company, claims that these medical supply companies are harassing older adults and their doctors through phone calls and unsolicited faxes for everything from diabetic testing materials to power scooters, even though the patients do not need these items. This problem has cost Medicare – and taxpayers – $27 billion over the past four years.

From 2009 to 2012, Medicare paid $43 billion for medical equipment supplies such as back braces, sleep apnea monitors, and power scooters. However, according to research by staffers of a Senate subcommittee on financial oversight led by McCaskill, more than 60 percent of those payments – $27 billion to be exact – may have been improper. According to reports, the federal government has only been able to recover around 3 percent of overpayments.

McCaskill asked the Boca Raton company to testify before her subcommittee on April 24, but reports indicate no one showed up. At this time, the senator is considering compelling testimony by subpoena because because the company makes a profit from taxpayer money, it must provide that information to the government.