National Center for Disaster Fraud to Coordinate Haitian Fraud Complaints

The FBI and the National Center for Disaster Fraud (NCDF) have established a telephone hotline to report suspected Haitian earthquake relief fraud. The number is (866) 720-5721. The phone line is staffed by a live operator 24 hours a day, seven days a week. You can also e-mail information directly to disaster@leo.gov.

The National Center for Disaster Fraud was originally established by the Department of Justice to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or man-made disaster. More than 20 federal agencies, including the FBI, participate in the NCDF, allowing it to act as a centralized clearinghouse of information related to Haitian relief fraud.

The FBI continues to remind the public to apply a critical eye and do their due diligence before giving contributions to anyone soliciting donations on behalf of Haitian victims. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods.

Therefore, before making a donation of any kind, consumers should adhere to certain guidelines, including the following:

* Do not respond to any unsolicited (spam) incoming e-mails, including clicking links contained within those messages.

* Be skeptical of individuals representing themselves as surviving victims or officials asking for donations via e-mail or social networking sites.

* Beware of organizations with copy-cat names similar to but not exactly the same as those of reputable charities.

* Rather than following a purported link to a website, verify the legitimacy of non-profit organizations by utilizing various Internet-based resources that may assist in confirming the group’s existence and its non-profit status.

* Be cautious of e-mails that claim to show pictures of the disaster areas in attached files, because the files may contain viruses. Only open attachments from known senders.

* To ensure contributions are received and used for intended purposes, make contributions directly to known organizations rather than relying on others to make the donation on your behalf.

* Do not be pressured into making contributions, as reputable charities do not use such tactics.

* Do not give your personal or financial information to anyone who solicits contributions. Providing such information may compromise your identity and make you vulnerable to identity theft.

* Avoid cash donations if possible. Pay by debit or credit card, or write a check directly to the charity. Do not make checks payable to individuals

If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of Haitian earthquake victims, contact the National Center for Disaster Fraud at (866) 720-5721. You can also fax information to (225) 334-4707 or e-mail it to disaster@leo.gov.

You can also report suspicious e-mail solicitations or fraudulent websites to the FBI's Internet Crime Complaint Center at http://www.ic3.gov.

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Haitian Earthquake Relief Fraud Alert

The FBI today reminds Internet users who receive appeals to donate money in the aftermath of Tuesday’s earthquake in Haiti to apply a critical eye and do their due diligence before responding to those requests. Past tragedies and natural disasters have prompted individuals with criminal intent to solicit contributions purportedly for a charitable organization and/or a good cause.

Therefore, before making a donation of any kind, consumers should adhere to certain guidelines, to include the following:

* Do not respond to any unsolicited (spam) incoming e-mails, including clicking links contained within those messages.
* Be skeptical of individuals representing themselves as surviving victims or officials asking for donations via e-mail or social networking sites.
* Verify the legitimacy of nonprofit organizations by utilizing various Internet-based resources that may assist in confirming the group’s existence and its nonprofit status rather than following a purported link to the site.
* Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.
* Make contributions directly to known organizations rather than relying on others to make the donation on your behalf to ensure contributions are received and used for intended purposes.
* Do not give your personal or financial information to anyone who solicits contributions: Providing such information may compromise your identity and make you vulnerable to identity theft.

Anyone who has received an e-mail referencing the above information or anyone who may have been a victim of this or a similar incident should notify the IC3 via www.ic3.gov.

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EMCs Warn Consumers: Beware of Scam Artists

/PRNewswire/ -- The electric membership cooperatives (EMCs) in Georgia are warning consumers to be wary of imposters who have manufactured another telephone scam in order to obtain personal information.

In the latest scheme, the thieves contact EMC consumers, informing victims that the government is paying $350 towards the electric bill of senior citizens. The fraudulent caller claims that in order to process the check, he or she needs social security numbers and EMC account numbers.

If the scam artist obtains this information, including credit card numbers, he or she will call the EMC consumer a few minutes later to "verify" the information in an attempt to defray suspicion and give the scammers more time to use the data to make fraudulent purchases.

Sadly, utilities and consumers have already been victims. Earlier this year, thieves contacted customers by phone, informing victims that their electric bill was past due and that an urgent credit card payment was needed to avoid loss of service within 24 hours.

If a customer suspects a caller is fraudulent, EMCs recommend trying to write down the incoming phone number via caller ID. If anyone has been the victim of this scheme, or has any information leading to possible suspects, they are asked to contact their local EMC and law enforcement agency.

Georgia EMC is the statewide trade association representing the state's 42 EMCs, Oglethorpe Power Corp., Georgia Transmission Corp. and Georgia System Operations Corp. Collectively, Georgia's customer-owned EMCs provide electricity and related services to four million people, nearly half of Georgia's population, across 73 percent of the state's land area.

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FDA, FTC Warn Public of Fraudulent 2009 H1N1 Influenza Products

The U.S. Food and Drug Administration and the Federal Trade Commission are alerting the public to be wary of Internet sites and other promotions for products that claim to diagnose, prevent, mitigate, treat or cure the 2009 H1N1 influenza virus. The agencies are also advising operators of offending web sites that they must take prompt action to correct and/or remove promotions of these fraudulent products or face enforcement action.

“Consumers who purchase products to treat the novel 2009 H1N1 virus that are not approved, cleared or authorized by the FDA for the treatment or prevention of influenza risk their health and the health of their families,” said Michael Chappell, acting FDA Associate Commissioner for Regulatory Affairs. “In conjunction with the Federal Trade Commission, the FDA has developed an aggressive strategy to identify, investigate, and take regulatory or criminal action against individuals or businesses that wrongfully promote purported 2009 H1N1 influenza products in an attempt to take advantage of the current flu public health emergency.”

Products that are offered for sale to the public with claims to diagnose, prevent, mitigate, treat, or cure infections caused by the H1N1 influenza virus that have not been proven to be safe and effective for these uses must be carefully evaluated. Many of these deceptive products are being sold over the Internet via illegitimate web sites. The operators of these web sites take advantage of the public’s concerns about H1N1 influenza and their desire to protect themselves and their families. These fraudulent products come in all varieties and could include dietary supplements or other food products, or products purporting to be drugs, devices or vaccines. Such fraudulent products will not prevent the transmission of the virus or offer effective treatments against infections caused by the H1N1 influenza virus.

“The last thing any consumer needs right now is to be conned by someone selling fraudulent flu remedies,” said FTC Chairman Jon Leibowitz. “The FTC will act swiftly against companies that resort to deceptive advertising.”

Consumers are urged to contact their health care providers or legitimate medical supply services if they have questions or concerns about medical products or personal protective equipment. Consumers are also urged to visit the FDA and Centers for Disease Control and Prevention web sites for more information about this emergency, and to determine which products the FDA has approved, cleared or authorized for use to diagnose, treat, prevent, mitigate or cure infections caused by H1N1 influenza virus.

Consumers should also visit FDA's web site for tips about how to protect themselves when buying medicines online: http://www.fda.gov/buyonlineguide/

The two antiviral drugs approved by the FDA for treatment and prophylaxis of the 2009 H1N1 influenza virus are Tamiflu (oseltamivir phosphate) and Relenza (zanamivir). Tamiflu and Relenza, in addition to their approved labeling, have Emergency Use Authorizations that describe specific authorized uses during this public health emergency.

For more information about FDA-approved antiviral drugs for influenza, see http://www.fda.gov/cder/drug/antivirals/influenza/default.htm.

For more information on CDC recommendations regarding use of antiviral drugs against the current novel 2009 H1N1 influenza strain, see http://www.cdc.gov/swineflu/?s_cid=swineFlu_outbreak_001.

For more information about personal protective equipment see http://www.fda.gov/cdrh/ppe/.

At present, there are no licensed vaccines approved for this new H1N1 influenza virus.

Consumers are urged to report any suspected fraudulent products or criminal activity relating to FDA regulated products associated with H1N1 Flu Virus (Swine Flu), including the names of web sites that may be offering these products for sale, to the FDA by visiting: http://www.fda.gov/oci/flucontact.html .

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Georgia Power Asks Residents To Be Alert for Fraud Artists

/PRNewswire/ -- Several metro Atlanta residents have recently been victimized by a female imposter who claims to be a Georgia Power employee.

The individual contacts Georgia Power customers by phone, informing victims that their electric bill is past due and that an urgent credit card payment is needed to avoid loss of service within 24 hours.

If the scam artist receives credit card numbers from the Georgia Power customer, she then wires money from their credit card account to different locations or uses the number to make fraudulent purchases.

At least five to six area residents have been victimized since early March. The method of this scam is very similar to a scheme used in 2006 and may involve the same individuals.

Georgia Power employees will never call a customer at home seeking personal information. When a customer is past due on a bill, a recorded message is sent to the customer's home phone encouraging them to contact Georgia Power to discuss the status of their account.

Field-service representatives will never ask a customer for money when they visit a residence. All Georgia Power company representatives carry badges with picture identification, their name and the company's name and logo. To view official company uniforms go to www.georgiapower.com.

Georgia Power's Corporate Security department is working with local law enforcement agencies throughout the state to identify the perpetrators. If anyone has been victimized by this scheme, or has any information about suspects, they are asked to contact Georgia Power's Corporate Security department at 404-506-4116.

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Conviction Closes Adulterated Meat Case

The last of five people charged in an adulterated meat case on which Georgia Department of Agriculture Meat Compliance Officers began surveillance and investigation two years ago has been convicted, Commissioner Tommy Irvin said.

Charles Ricky Bobo of a Cumming address, was found guilty in Walker County Superior Court on nine counts of violations of Georgia’s Meat Inspection Act. He was found guilty on such charges as offering meat under a false label, offering uninspected meat and intent to fraud. Bobo was charged on 26 counts in February of last year with the violations based on the casework prepared by the Georgia Department of Agriculture investigation. Bobo is incarcerated awaiting sentencing in March.

The GDA Officers worked closely with District Attorney Herbert (Buzz) Franklin in Walker County to provide the crucial testimony and evidence linking Bobo to the illegal sale, slaughter, processing and delivery of mislabeled, adulterated and uninspected meat.

“I want to thank and congratulate my staff, the federal workers and the officials in Walker County for their hard work on this case,” said Commissioner Irvin.

“People are subject to possible injury from the unwholesome, adulterated or misbranded meat operations such as this and livestock producers and meat processors of wholesome products also suffer losses,” said Irvin.

The five arrests made in February 2007 were the result of an intense year-long investigation by GDA and U.S. Department of Agriculture Food Safety Inspection Service (USDA FSIS). GDA Compliance Officers and USDA investigators coordinated the arrests with Walker, Bartow, Gwinnett and Barrow Counties. Four of those charged in the case pled guilty earlier.

Bobo was convicted of charges made in connection with the slaughter of sheep in December, 2006 that were intended for distribution in the Atlanta area.

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FBI Wants to Hear from You if You're a Victim of the Madoff Financial Fraud Case

U.S. v. Bernard L. Madoff

If you believe that you have been a financial fraud victim in the above captioned matter, please provide the following information:

(1) full name
(2) mailing address
(3) phone number
(4) COPIES of any documents that substantiate your loss (do not send original documents)

Please mail this information to:

FBI New York
ATTN: Victim Assistance Office
26 Federal Plaza
23rd Floor New York, NY 10278

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Georgia Whistleblower Gets Big Settlement in Suit Against Defense Contractor

/PRNewswire/ -- According to whistleblower attorney Lee Tarte Wallace, a defense contractor has agreed to pay $4,000,000 to settle a lawsuit brought by whistleblower Buster Roderigas of Winder, Georgia. The suit, which was brought on behalf of the U.S. government, alleges that L-3 Vertex Aerospace overbilled and submitted fraudulent invoices to the government.

Wallace, of The Wallace Law Firm, L.L.C., in Atlanta, Georgia, represented Roderigas. She says Roderigas will receive $720,000 of the $4,000,000, and L-3 will pay an additional $318,425 in attorneys' fees.

"With the economic problems we have now, whistleblower suits are critically important. The U.S. simply can't afford to lose taxpayer money to fraud," says Wallace.

Wallace filed Roderigas' suit three years ago. Roderigas had been the acting assistant site supervisor for L-3 in Taji, Iraq, where L-3 has a contract to repair and maintain Army helicopters.

According to the lawsuit, L-3 sent a memo to its Taji employees, instructing them to take an hour and a half for lunch, but to bill for an hour of that time. Roderigas says he was told the military had approved the practice.

The lawsuit states that in September 2005, Roderigas learned from senior-level L-3 employees that L-3 had been billing the government for the time its employees were spending at lunch, and that the military had never approved it. The senior-level employees thought the overbilling had gone on for only a few months, but Roderigas offered to help prove it had gone on longer.

"All he ever wanted was to get the money back to the taxpayer coffers, where it belonged," says Wallace. "He should have been treated like a hero. Instead, he went through hell."

Roderigas claims he was told that he would need to re-apply for his job, and that his site no longer had a bed for him. He was given 24 hours to report for a new job in Balad, Iraq, and then was put on a helicopter that flew past Balad into an airport that had no flights to Balad for several days. To try to meet L-3's deadline, Roderigas got a ride with a Blackwater security patrol on its way to another heliport. The convoy was ambushed on a back road, and the vehicle directly behind Mr. Roderigas' was hit and blown off the road. Roderigas says that when he finally did reach Balad, he was told the site had no job for him - and no bed.

Roderigas returned to the U.S. and filed suit against L-3 Vertex Aerospace, a subsidiary of L-3 Communications Corp. The suit was filed under the False Claims Act, which allows whistleblowers to sue on behalf of the United States when they learn about fraud against the government. Wallace says, "It's a win-win situation. The U.S. gets paid back, and people get encouraged to report fraud against the government."

"Buster is a real American hero," Wallace says. "He stood up for what was right, even though it cost him. Thanks to him, taxpayers are getting back a big chunk of money."

A veteran, Roderigas was shot down in a helicopter in the Vietnam War.

Roderigas took the job with L-3 in 2004, because he had a premonition he needed to be near his son, who was serving in Iraq as a Bradley Commander. In May 2005, Roderigas' son was seriously injured when a roadside bomb hit his Bradley. Roderigas was able to be at his son's side in a military hospital.

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FDA Warns Public of Extortion Scam by FDA Impersonators

The U.S. Food and Drug Administration is warning consumers about a fraudulent scheme to extort money from consumers by callers who falsely identify themselves as "FDA special agents" or other FDA officials.

Several instances have been reported to the FDA of calls enticing consumers to purchase discounted prescription drugs by wiring funds to one of several locations in the Dominican Republic. No medications are ever delivered. A subsequent call is received from a fraudulent "FDA special agent" informing the consumer that a fine of several thousand dollars is required to be sent to an address in the Dominican Republic to prevent incarceration or other legal action.

"Impersonating an FDA official is a violation of federal law," said Michael Chappell, the FDA's acting associate commissioner for regulatory affairs. "The public should note that no FDA official will ever contact a consumer by phone demanding money or any other form of payment. FDA officials always present identification in person when conducting official business."

Consumers should note that the fraudulent calls appear to be from telephone numbers located within the United States, but are in fact from either ported voice-over-the-Internet-protocol numbers (calls made directly from a computer and moved or "ported" to other computers to avoid detection) or cellular phones. Reports to FDA describe the callers as having Hispanic accents.

The scheme most likely began with the theft of personal information from consumers who previously purchased drugs via the Internet or telephone or who were victims of credit card fraud.

The FDA is investigating and complaints or information regarding this scheme should be reported to the FDA Office of Criminal Investigations at (800) 521-5783.

The FDA reminds consumers to purchase prescription drugs only from licensed pharmacies located in the United States. Information about the proper purchase of on-line medicine can be found at: http://www.fda.gov/consumer/features/drugsonline0707.html.

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More Than $1 Billion Recovered by Justice Department in Fraud and False Claims in Fiscal Year 2008

PRNewswire-USNewswire/ -- The United States secured $1.34 billion in settlements and judgments in the fiscal year ending Sept. 30, 2008, pursuing allegations of fraud against the federal government, the Justice Department announced today. This brings total recoveries since 1986, when Congress substantially strengthened the civil False Claims Act, to more than $21 billion.

"Now, more than ever, it is crucial that taxpayer dollars aren't lost to fraud," said Gregory G. Katsas, Assistant Attorney General for the Department's Civil Division. "The billion dollars collected this year is only part of the story. By rooting out fraud and vigorously pursuing it, the Department, with the help of concerned citizens who report fraud in hotline calls and in qui tam complaints, undoubtedly saves the country many times that amount in aborted schemes and misconduct."

Assistant Attorney General Katsas also paid tribute to Senator Charles Grassley of Iowa and Representative Howard L. Berman of California who sponsored the 1986 amendments to the False Claims Act, the government's primary weapon to fight government fraud. "Without this important legislation strengthening the Act and, in particular, the qui tam provisions which encourage private citizens to uncover government fraud, such recoveries would not have been possible."

Almost 78 percent of this year's recoveries are associated with suits initiated by private citizens (known as "relators") under the False Claims Act's qui tam provisions. These provisions authorize relators to file suit on behalf of the United States against those who have falsely or fraudulently claimed federal funds. Such cases run the gamut of federally funded programs from Medicare and Medicaid to defense procurement contracts, disaster assistance loans and agricultural subsidies. Persons who knowingly make false claims for federal funds are liable for three times the government's loss plus a civil penalty of $5,500 to $11,000 for each claim.

Relators recover 15 to 25 percent of the proceeds of a successful suit if the United States intervenes in the qui tam action, and up to 30 percent if the government declines and the relator pursues the action alone. In fiscal year 2008, relators were awarded $198 million. (This figure does not include relator shares awarded after Sept. 30, 2008.)

As in the last several years, health care accounted for the lion's share of fraud settlements and judgments-$1.12 billion. This number includes both qui tam claims and those initiated by the United States. The Department of Health and Human Services reaped the biggest recoveries, largely attributable to its Medicare program and the federal/state Medicaid program which funds health care for the needy. Recoveries were also made by the Office of Personnel Management which administers the Federal Employees Health Benefits Program, the Department of Defense for its TRICARE insurance program, the Department of Veterans Affairs and others.

The largest health care recoveries came from pharmaceutical companies and related entities. Settlements with Cephalon Inc., Merck & Co. and CVS Caremark Corp. accounted for more than $640 million. In addition to federal recoveries, these pharmaceutical fraud cases returned $430 million to state Medicaid programs.

The Civil Division's investigation of the pharmaceutical industry is part of a Department-wide effort. Typical allegations include "off-label" marketing, which is the illegal promotion of drugs or devices that are billed to Medicare and other federal health care programs, for uses that were neither found safe and effective by the Food and Drug Administration nor supported by the medical literature; paying kickbacks to physicians, wholesalers and pharmacies to induce drug or device purchases; establishing inflated drug prices knowing that federal health care programs use these prices to reimburse providers, then marketing the "spread" between the federal reimbursement and the provider's lower cost to induce drug purchases; and knowingly failing to report the company's true "best price" for a drug to reduce rebates owed to the Medicaid program.

The Department also collected $133 million in defense procurement fraud. Defense contract recoveries included a $53 million settlement with Pratt & Whitney, a division of United Technologies Corporation, and PCC Airfoils LLC, a subsidiary of Precision Castparts Corporation. The settlement resolved allegations that Pratt & Whitney and PCC Airfoils knowingly submitted false claims to the Air Force for defective turbine blades sold to the government to retrofit the F100-PW-220 engines in F-16 and F-15 aircraft. This case was pursued as part of a National Procurement Fraud initiative, launched in October 2006, to promote the early detection, identification, prevention and prosecution of procurement fraud.

FACT SHEET: SIGNIFICANT RECOVERIES IN FISCAL YEAR 2008

Among the Department's most significant settlements and judgments in fiscal year 2008 were:

* $361.5 million from Merck & Company to resolve allegations that the pharmaceutical manufacturer knowingly failed to pay proper rebates to Medicaid and other government health care programs, and paid kickbacks to health care providers to induce them to prescribe the company's products. The settlement resulted from two lawsuits brought under the qui tam provisions of the False Claims Act.

In the first, which accounted for $221.9 million of the $361.5 settlement, a former Merck employee alleged that the company violated the Medicaid Rebate Statute by providing deep discounts to hospitals that used its drugs Zocor and Vioxx in place of competitors' brands, without reporting those discounts and other cost information to reflect its "best price," as required by the statute to ensure that Medicaid obtains the benefit of the same price concessions other purchasers enjoy. This suit also alleged that Merck paid kickbacks to physicians, disguised as fees for training, consultation, and market research, to induce them to prescribe its drugs, also contrary to law. The United States paid the relator $46.6 million as his share of the settlement under the False Claims Act's qui tam provisions. In addition to the federal recovery, Merck paid $162 million to state Medicaid programs.

In the second lawsuit, which accounted for the remaining $139.6 million of the settlement, a physician alleged that Merck provided deep discounts to hospitals to induce them to administer its antacid, Pepcid, as a means to boost sales through continued use after the patient's discharge. The suit went on to allege, similar to the first suit, that Merck knowingly failed to report these discounts as required by the Medicaid Rebate Statute, which resulted in illegal and inflated claims to federal and state Medicaid programs. In addition to paying the United States $139.5 million in federal claims, Merck paid $114 million to settle state Medicaid claims. The relator received $24 million as his federal share of the settlement and an additional sum for the state recoveries. Merck also entered into a Corporate Integrity Agreement with the Inspector General of the Department of Health and Human Services (HHS) to ensure compliance with federal health insurance programs in the future.

For the original press release, see:
http://www.usdoj.gov/opa/pr/2008/February/08_civ_094.html
http://www.usdoj.gov/usao/pae/News/Pr/2008/feb/steinkrelease.pdf


* $258 million from Cephalon Inc. to resolve claims that the company marketed three drugs for uses not approved by the Food and Drug Administration (FDA). By promoting the drugs for so-called "off label" uses, Cephalon caused providers to charge federal health insurance programs such as Medicare, Medicaid, TRICARE and the Federal Employees Health Benefits Program for unapproved uses of the drugs not covered by the programs. The settlement resolved four lawsuits, three of which were brought by former Cephalon sales representatives under the qui tam provisions of the False Claims Act. Consistent with those provisions, the relators who filed the suits will share $46.7 million as their part of the settlement. In addition to the $258 million recovered for federal programs, the United States recovered $116 million for the Medicaid programs in 14 states and the District of Columbia. Cephalon also pleaded guilty to related criminal charges, paid $50 million in fines and forfeitures and entered into a five-year Corporate Integrity Agreement with the Inspector General of HHS to ensure strict compliance in the future.

For the original press release, see:
http://www.usdoj.gov/opa/pr/2008/September/08-civ-860.html


* $225 million from Amerigroup Corporation to settle both federal and state allegations that Amerigroup, together with its Illinois subsidiary, systematically avoided enrolling pregnant women and other high-cost patients in the company's managed care program in Illinois. The program was funded by Medicaid, which required open enrollment to all eligible beneficiaries. By excluding pregnant women and other high-cost patients, Amerigroup increased its profits in conflict with the law. The United States and Illinois jointly brought suit under the federal False Claims Act and the Illinois Whistleblower Reward and Protection Act. In October 2006, following a lengthy trial, the court entered judgment for $334 million. Amerigroup appealed and the parties entered negotiations leading to settlement. The relator received $56.25 million as his share of the federal and state recoveries. In conjunction with the settlement, Amerigroup entered into a Corporate Integrity Agreement with the Inspector General of HHS to ensure future compliance.

For the original press release, see:
http://www.usdoj.gov/opa/pr/2008/August/08-civ-723.html



* $75 million to settle claims that Kyphon Inc., now Medtronic Spine LLC, violated the False Claims Act by knowingly causing the submission of false claims to Medicare for its kyphoplasty procedure-a minimally-invasive surgery used to treat compression fractures of the spine. The settlement resolved a lawsuit filed by two former Kyphon employees under the qui tam provisions of the False Claims Act. The suit alleged that Kyphon engaged in a seven-year marketing scheme that resulted in certain hospitals billing Medicare for kyphoplasties performed on an inpatient basis rather than for less costly and clinically appropriate outpatient kyphoplasty treatment. This conduct resulted in the Medicare program paying more for inpatient kyphoplasty procedures. The relators received a total of $14.9 million as their share of the settlement. In conjunction with the settlement, Kypon entered into a Corporate Integrity Agreement with the Inspector General of HHS to ensure future compliance.

For the original press release, see:
http://www.usdoj.gov/opa/pr/2008/May/08-civ-455.html


* $74 million from Staten Island University Hospital (SIUH) to resolve two False Claims Act qui tam suits and two other matters. In the first action, a physician and former SIUH Director of Chemical Dependency Services, filed suit alleging that SIUH fraudulently billed Medicare and Medicaid for substance abuse and alcohol detoxification services provided to inpatients in unlicensed beds, in violation of state law, between 1994 and 2000. SIUH paid the United States $11.8 million in settlement of this qui tam action, with the relator receiving $2.3 million as his share of the government's recovery. In related allegations of inflated Medicaid billings asserted under New York State's false claims statute, SIUH paid New York $14.88 million, with the relator receiving $2.97 million as his share of the state's recovery.

In the second action, the widow of an SIUH cancer patient filed suit alleging that between 1996 and 2004, SIUH submitted false claims to Medicare and TRICARE using incorrect codes for cancer treatments not covered by the programs. SIUH paid the United States $25 million, including a relator share award of $3.75 million. In the third matter, the United States alleged that SIUH deliberately inflated the number of residents it employed to fraudulently increase Medicare reimbursement between 1996 and 2003. SIUH paid the United States $35.7 million in settlement of this matter. Lastly, SIUH paid the United States $1.47 million to settle allegations that it billed Medicare and Medicaid for treating psychiatric patients in unlicensed beds from 2003-2005. In conjunction with the settlement, SIUH also entered into a Corporate Integrity Agreement with the Inspector General of HHS to ensure future compliance.

For the original press release, see:
http://www.usdoj.gov/usao/nye/pr/2008/2008sep15.html


* $60 million from Lester E. Cox Medical Centers, a health care system headquartered in Springfield, Mo., to settle claims that it violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute between 1996 and 2005. The United States alleged that Cox entered into illegal financial relationships with referring physicians at a local physician group and engaged in improper billing practices with respect to Medicare. Under the Stark Statute, providers such as Cox are prohibited from billing Medicare for referrals from doctors with whom the providers have a financial relationship, unless that relationship falls within certain exceptions. The United States contended that Cox and the referring physicians ran afoul of the Stark Statute, as well as the Anti-Kickback Statute, which prohibits offering inducements to providers in return for patient referrals. The settlement also resolves claims that Cox included non-reimbursable costs on its Medicare cost reports and improperly billed for dialysis services. In conjunction with the settlement, Cox entered into a Corporate Integrity Agreement with the Inspector General of HHS to ensure future compliance.

For the original press release, see:
http://www.usdoj.gov/opa/pr/2008/July/08-civ-638.html
http://www.usdoj.gov/usao/mow/news2008/cox.settlement.htm


* $53 million from Pratt & Whitney, a division of United Technologies Corporation, and PCC Airfoils LLC, a subsidiary of Precision Castparts Corporation, to resolve allegations that the companies knowingly submitted false claims for defective turbine blades purchased by the Air Force to retrofit the F100-PW-220 engines found in F-16 and F-15 aircraft. The settlement includes corrective action to replace defective blades and inspection of potentially serviceable blades to ensure their integrity. The case was pursued as part of a National Procurement Fraud Initiative launched in October 2006, to promote the early detection, identification, prevention and prosecution of procurement fraud.

For the original press release, see:
http://www.usdoj.gov/opa/pr/2008/August/08-civ-675.html



* $26 million from St. Joseph's Hospital of Atlanta to resolve allegations that the hospital falsely claimed Medicare reimbursement for inpatient admissions that were, in fact, less costly outpatient visits. A registered nurse, formerly employed by the hospital, initiated suit under the False Claims Act's qui tam provisions. The complaint alleged that the hospital improperly billed for short inpatient admissions, usually of one day or less, when the service should have been billed as an outpatient "observation" or emergency room visit. Medicare reimburses hospitals a higher rate for inpatient admissions than it does for observation care or emergency room visits. The nurse who triggered the investigation received $4.94 million as her share of the recovery. St. Joseph's entered into a Corporate Integrity Agreement with the Inspector General of HHS in conjunction with the settlement, to ensure future compliance.

For the original press release, see:
http://www.usdoj.gov/usao/gan/press/2007/12-21-07.pdf


$23.2 million from Bechtel Infrastructure Corp. and PB Americas Inc. to settle allegations of false claims for federal highway funds in connection with the firms' failure to provide adequate management and quality assurance services during the construction of the Central Artery Tunnel, known as the Big Dig, in Boston. The recovery, part of a $458 million settlement of state and federal claims, resolved parts of a qui tam lawsuit, a related federal investigation and additional claims that Bechtel and PB Americas violated federal and state criminal and civil laws in connection with their services on the Big Dig. In addition to the federal recovery, the companies paid $40 million in state claims and $335 million into a state warranty fund for future repairs to the Big Dig. The private citizen who filed the suit received $54,000 and $96,000 as his share of the federal and state recoveries, respectively.

For the original press release, see:
http://www.usdoj.gov/opa/pr/2008/January/08_crt_048.html
http://boston.fbi.gov/dojpressrel/pressrel08/govtclaimsettlement012308.htm



* $21.1 million from CVS Caremark Corp. to settle claims that from 2000-2006, the company illegally switched patients from the tablet version of the drug Ranitidine (generic Zantac) to a more expensive capsule version for the sole purpose of increasing Medicaid reimbursement. For example, CVS pharmacies in Illinois would charge Medicaid $79.80 for 60 Ranitidine capsules, rather than $17.10 for the tablets prescribed, increasing reimbursement by $62.70 on a single prescription. CVS Caremark is headquartered in Rhode Island and operates more than 6,000 pharmacies nationwide. The settlement resolves qui tam claims under federal and state false claims statutes. In addition to the federal recovery, CVS Caremark paid $15.6 million to 23 states and the District of Columbia. The qui tam plaintiff received $4.3 million as his share of the federal and state settlements. CVS Caremark also entered into a Corporate Integrity Agreement with the Inspector General of HHS to ensure future compliance.

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Election Day Irregularities in Battleground States

The McCain-Palin campaign is committed to ensuring that every qualified voter has the opportunity to vote and that all lawfully cast ballots are not cancelled out by fraudulent votes. Given that four states in the 2004 Presidential Election were decided by 1 percent or less, the McCain-Palin Campaign believes there should be a zero-tolerance policy for voter fraud and voter intimidation. Through a combination of news accounts and first-hand reports, the following cases of voter irregularities have been documented:

PENNSYLVANIA

In Philadelphia, PA, Black Panthers Are Intimidating Voters By Standing Outside Of A Polling Station While Holding A Night Stick. Fox News' Rick Leventhal: "I do not even know where to begin, but we have reached a polling place in the city of Philadelphia. One of the two black panthers who was allegedly blocking the door is standing right over here, [and] accused us of intimidating voters because we were here with a camera and microphone. He did not answer questions, other people here have confirmed that another person in black panther attire was holding a night stick and apparently the concern was that they were intimidating people who were trying to go inside to vote. A republican poll observer actually called the police, the police were here and we miss[ed] them, they came and left." (Fox News; "America's Newsroom 2008," 11/4/08) SEE FOX NEWS VIDEO HERE - SEE MORE VIDEO OF INTIMIDATION HERE

· The New Black Panther Party Promised To "Protect Its Interest" On Election Day. "We will not allow some racists and other angry whites, who are upset over an impending Barack Obama presidential victory, to intimidate blacks at the polls,' [Black Panther Field Marshall Najee] Muhammad said. Most certainly, we cannot allow these racist forces to slaughter our babies or commit other acts of violence against the black population, nor our black president.' Muhammad added, "We must organize to counter and neutralize these threats using all means at our disposal. This is a great time for our people, and we must ensure that peace prevails for our people.'" (Tyrone Tony Reed, Jr., "New Black Panthers Visit Alamo," Jackson Sun, 11/2/08)
In Philadelphia, PA, Republican Election Board Officials In At Least Six Precincts Have Been Tossed By The Democrat Judge Of Elections. The State Republican Party filed suit in Election Court in Philadelphia City Hall seeking an injunction requiring that all Republican poll watchers be provided the access that had been denied. The duty judge granted the injunction that was sought.

In Lancaster County, PA, Calls From "Democrats For Obama" Are Being Made, Informing Voters About A Fake Change Of Polling Location. Lancaster County is a high priority target county for Republicans this year, and this is a clear attempt to suppress Republican votes. READ MORE ABOUT VOTER SUPPRESSION IN LANCASTER COUNTY.

FLORIDA

In Florida, There Are Reports That Out-Of State Obama Volunteers Have Cast Ballots In The State. "Julietta Appleton's business and home address are in New York, but she decided to vote in Florida. ... Julietta flew to [Florida] in September to help the Obama campaign get out the vote in Miami. She posted a link on ObamaTravel.org -- a site designed to help volunteers from non-swing states get to battleground states by connecting them with donors. On the site, she asked for help paying for a flight back home' to New York after the election. Included, Julietta posted a picture of herself casting a ballot in Miami." (Tiffany Wilson, "Florida Fraud?" Palestra Blog, 11/4/08)

In Florida, There Are Reports Of Intimidation Of McCain-Palin Voters By Elections Officials. After learning that a voter cast a ballot for the McCain-Palin ticket, one Florida election official reportedly told the voter "she could kill her for voting for [McCain]" and that she didn't deserve an "I voted sticker" because she voted for McCain-Palin.

In Palm Beach County, FL, Many Voters Are Reporting Trouble Locating The McCain-Palin Ticket On The Ballot Because It Appears On The Second Page. "Florida's Palm Beach County is reporting problems at a couple of polling stations: so-called undervotes,' where machines reject ballots because voters are not filling out the second page of the ballot, a spokesman for the county Board of Elections confirmed He said in some cases people simply forget to fill out the second page..." (CNN, "Undervotes Reported In Palm Beach County, Florida," CNN Political Ticker Blog, 11/4/08)

NEW HAMPSHIRE

In Manchester, NH, Republican Election Officials Are Being Kept Away From Locations Inside The Polling Places Where They Are Supposed To Be Verifying Voters. The New Hampshire Republican Party brought a lawsuit against Secretary of State William Gardner seeking an immediate order to require that election officials in statewide polling stations, including in Manchester, NH, allow appointed Republican officials access to same-day registration tables where voter qualifications are being checked. These Republican officials, who are appointed by the State Party to monitor voter registration to ensure they are qualified to vote in NH, are being kept away from the locations inside the polling places where this verification is taking place. The lawsuit occurred in New Hampshire Superior Court at 1:30 pm. (Ethan Kendrick, "BREAKING NEWS - Lawsuit Being Filed Over NH New Voter Registrations," New Hampshire's News and Politics Blog, http://www.nowhampshire.com, 11/04/08)

OHIO

In Toledo, OH, Non-Credentialed "Election Protection" Democrat Observers Were Found Inside The Polling Precinct. (ElectionJournal.org, 11/4/08) SEE VIDEO HERE

VIRGINIA

In Virginia Beach, VA, There Are Reports That Voters Are Casting Multiple Paper Ballots. There are multiple reports that a polling station in Virginia Beach is understaffed, and people are picking paper ballots off the floor and casting multiple votes.

In Northern Virginia, It Is Reported That "Tens Of Thousands" Of Military Absentee Ballots Could Be Missing. Fox News' Megyn Kelly: "[T]he northern part of Virginia almost always goes blue. He may not know how many military ballots are missing, but according to the wire reports, it could be tens of thousands. That is according to the McCain camp in a local press report. That military absentee ballot in Virginia could be potentially big." (Fox News' "U.S. National America's Election HQ," 11/4/08)

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Former Ft. Stewart Soldier Receives 70 Months Imprisonment for Faking Wife's Death and Collecting Insurance Proceeds

Edmund A. Booth, Jr., United States Attorney for the Southern District of Georgia, announced that Ingerberth Baird, age 38, was sentenced on October 14, 2008, in U.S. District Court in Savannah to 70 months in federal prison by U.S. District Judge B. Avant Edenfield.

Booth commented that, in imposing sentence, Judge Edenfield made an upward variance from the advisory guidelines range of 44 to 51 months, finding that Baird committed perjury when he testified on his own behalf at trial and noting that Baird remained totally unrepentant of his criminal actions. Baird had been convicted by a jury on January 29, 2008, on one count of conspiracy, in violation of Title 18, United States Code, Section 371, one count of making false claims against the United States, in violation of Title 18, United States Code, Section 287, and one count of mail fraud, in violation of Title 18, United States Code, Section 1341.

Baird had been extradited from Trinidad to face the charges in this case in June 2007. Booth noted that Baird will be transferred to the custody of U.S. Immigration and Customs Enforcement for deportation to his home country of Trinidad after he completes serving his sentence.

The convictions rested upon the evidence at trial which established the following :Ingerberth Baird and his wife, Nicolette, lived in Hinesville, Georgia, in 2002. Ingerberth Baird was an enlisted officer in the U.S. Army, posted at Ft. Stewart. Nicolette Baird was an elementary school teacher at Joseph Martin Elementary School in Hinesville. In September 2002, Nicolette Baird requested time off to travel to Trinidad, where she had been born, to attend a family funeral. Several days later, a person identifying himself as Nicolette's husband called the principal of Joseph Martin Elementary to report that Nicolette had died in an automobile accident in Trinidad. Ingerberth Baird sought leave from his duties with the United States Army and traveled to Trinidad shortly after Nicolette's reported death, spending eleven days there before returning to the United States. The evidence further showed that in October and November, 2002, Ingerberth Baird applied for benefits under life insurance policies covering Nicolette through the U.S. Army (under the Family Servicemembers Group Life Insurance program, or "FSGLI") and the Liberty County, Georgia school system.

In connection with those claims, he presented a handwritten death certificate and handwritten police report purportedly describing Nicolette's death in Trinidad. Ingerberth Baird received over $100,000 from the U.S. Army FSGLI policy on Nicolette. The benefit was paid in the form of a checking account funded with the entire benefit amount, and a checkbook drawn on that account was mailed to Ingerberth Baird at his home. Over the course of October and November, 2002, Ingerberth Baird wrote numerous checks that totally depleted the account. In December 2002, Ingerberth Baird left the United States for Trinidad.

Shortly thereafter, it was determined that the death claim was false in that the handwritten death certificate was counterfeit and that no registrar of deaths with the name listed on the death certificate actually existed. In April 2003, agents of the Federal Bureau of Investigation located Ingerberth Baird and Nicolette Baird, alive, living together in Cunupia, Trinidad. At that time, Ingerberth Baird admitted to the FBI agents that he knew on his first trip to Trinidad in September 2002, right after his wife's reported death, that no accident had occurred and that his wife was alive.

Booth praised the efforts of Special Agents Joseph Swiatek and Freddie Watkins of the Federal Bureau of Investigation. The United States was represented by Assistant United States Attorneys R. Brian Tanner and Brian F. McEvoy.

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Georgia Man Sentenced for 36 Months in Prison for Inernet Investment Fraud

A Georgia man was sentenced October 15, 2008, in U.S. District Court for using an Internet website in the name of the Transnational Fund to fraudulently induce persons to invest in so-called “certificates” promising a guaranteed rate of return in nine months.

United States Attorney Michael J. Sullivan, Warren T. Bamford, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Division and Police Commissioner Edward Davis of the Boston Police Department, announced today that MICHAEL PATRICK LUCKETT, age 37, of 6015 Henson Rd., Gainseville, GA, was sentenced by U.S. District Judge William G. Young to 36 months imprisonment, to be followed by 3 years of supervised release. LUCKETT was also ordered to pay $97,387 in restitution. The Securities and Exchange Commission is expected to distribute approximately $222,900, held in frozen bank accounts, to victims in the near future. LUCKETT pled guilty to four counts of mail fraud on July 14, 2008.

At an earlier plea hearing, the prosecutor told the Court that had the case proceeded to trial the Government’s evidence would have proven that LUCKETT used a website in the name of Transnational Fund to induce individuals to invest in “certificates” with a guaranteed return of principal and approximately 6.35% interest after nine months, but that instead of investing the funds he received, LUCKETT used them for his own personal and business purposes. By this scheme, LUCKETT induced approximately fifteen persons from around the United States to send him a total of more than $450,000. LUCKETT operated the Transnational Fund scheme from an apartment in Boston, while the website directed prospective investors to mail their checks to an address in Hartford, which LUCKETT arranged to be forwarded to him. LUCKETT opened multiple bank accounts in the name of the Transnational Fund into which he deposited investors’ funds, and that he used nearly $100,000 of the funds received for expenses such as his personal rent and meals, making cash withdrawals and promoting the Transnational Fund website.

The case was investigated by the Federal Bureau of Investigation and the Boston Police Department, with assistance from the Boston Office of the Securities and Exchange Commission and the Suffolk County District Attorney’s Office. It is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Sullivan’s Economic Crimes Unit.


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Countrywide Warns Millions of Data Breach in ConsumersAffairs.com Article

GFP Note: More potential troubles may lie ahead for some Georgia homeowners. This time it's not from the mortgage, but rather from potential identity theft.

Countrywide Warns Millions of Data Breach

Former Employee Sold Customer Records for Two Years

by Martin H. Bosworth
ConsumerAffairs.com
September 11, 2008

Customers of troubled mortgage lender Countrywide already have enough to worry about due to the collapse of the housing market and the lender's sale to Bank of America. Now they can add a new worry to the list--identity theft and fraud. As many as 2 million Countrywide customers may be at risk thanks.....

Read the story.

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Beware Of Phony Voter Registration Schemes

(SPM Wire) While many Americans are showing civic pride and registering to vote, scammers see opportunities to ply their trade.

The experts at the Better Business Bureau (BBB) are warning Americans to be cautious with personal information to avoid phony voter registration drives.

"Voter registration laws vary by state and changes take place regularly, which creates the confusing environment that ID thieves thrive on," said Steve Cox of the BBB.

Such theft can be perpetrated through e-mail, phone and even in person:

Beware of phony e-mails appearing to be from government agencies, telling you to click to register to vote or resolve registrations issues. These links direct recipients to sites that install viruses or ask for personal information such as Social Security or bank numbers.

Remember, state government officials don't telephone you if there is an issue with registration, nor do they need bank account or credit card numbers to confirm your identity.

If registering in-person, always ask for proof of which organization the volunteer is with before providing information. While some states require Social Security numbers to vote, they never require bank account or credit card information.

If you think you've become an ID theft or voter registration fraud victim, contact your BBB (www.bbb.org) and file a complaint with the Federal Trade Commission at 877-FTC-HELP or www.ftc.gov/idtheft.

The U.S. Election Assistance Commission Web site (www.eac.gov/voter) offers information on state voter registration guidelines.

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Civilian Contractor Charged in Superseding Indictment for Allegedly Paying Bribes While at Camp Arifjan in Kuwait

A federal grand jury in the District of Columbia returned a superseding indictment today against a civilian contractor for allegedly paying bribes to Army contracting officials at Camp Arifjan, an Army base in Kuwait, and for committing honest services fraud in connection with the same conduct, Acting Assistant Attorney General Matthew Friedrich of the Criminal Division announced.

The superseding indictment returned today charges Terry Hall, 41, of Rex, Ga., with one count of conspiracy to commit bribery, two substantive bribery counts and two honest services wire fraud counts. Hall was originally indicted on Nov. 20, 2007, and charged with one count of bribery of a U.S. Army contracting official at Camp Arifjan.

Hall operated several companies that had contracts with the U.S. military in Kuwait, including Freedom Consulting and Catering Co. (FCC) and Total Government Allegiance (TGA). According to the superseding indictment, FCC and TGA received approximately $17 million from contracts to deliver bottled water and to erect security fencing for the Department of Defense (DoD) in Kuwait and Iraq.

The superseding indictment alleges that Hall bribed two Army majors who served as Army contracting officials at Camp Arifjan between 2004 and 2006. The first contracting official (CO-1) arranged for a blanket purchase agreement (BPA) for bottled water to be awarded to FCC, and thereafter CO-1 arranged for calls under that BPA, as a result of which DoD paid FCC approximately $6.8 million. CO-1 also arranged for DoD to award a contract to FCC to construct a security fence at Camp Arifjan, for which DoD paid FCC approximately $750,000. According to the superseding indictment, in exchange for these and other official acts CO-1 performed, he and his wife received more than $1 million in money and jewelry from Hall.

The superseding indictment also charges that bank accounts were established in the Cayman Islands, the United States and elsewhere in the name of CO-1’s wife and in the name of an entity that she incorporated, through which CO-1 and his wife received bribe money from Hall and others.

In addition, the superseding indictment charges that a second contracting official, James Momon, arranged for calls to TGA under the bottled water BPA described above, as a result of which DoD paid Hall approximately $6.4 million. In exchange for these and other official acts, Momon is alleged to have received at least $200,000 from Hall.

The superseding indictment also alleges that Hall arranged for companies and bank accounts to be established in the Cayman Islands, the Philippines, the United Arab Emirates and elsewhere in the names of third parties and entities, for the purpose of paying bribes to CO-1, James Momon and others. Hall also allegedly prepared and executed purported consulting agreements for the purpose of creating the appearance that certain U.S. Army officials and others had legitimately earned the payments, which were in fact alleged to be bribes.

“Corruption uncovered throughout the course of this investigation is particularly unsettling in that it involves collusion between Department of Defense contractors entrusted with providing crucial supplies and services to soldiers, sailors, airmen and Marines serving so valiantly overseas, and military officers who swore an oath to bear true faith and allegiance toward our nation and the principles it was founded on,” said Sharon Woods, Director, Defense Criminal Investigative Service. "The Defense Criminal Investigative Service remains committed to protecting America's war fighters from individuals who place their own selfish interests above the welfare of our country's brave protectors,” Woods added.

“This case is indicative of the intense commitment we have to rooting out corruption and criminality associated with contracting while supporting the U.S. Army and our war-fighters,” said Commanding Brigadier General Rodney Johnson of the U.S. Army Criminal Investigation Command. “It equally demonstrates the intense commitment and partnership we have as major contributors within the National Procurement Fraud Task Force.”

“These selfish acts of greed pose a real threat to our men and women in uniform,” said Julie L. Myers, Department of Homeland Security Assistant Secretary for U.S. Immigration and Customs Enforcement (ICE). “Ensuring the integrity of our military support systems is key to protecting national security at home and abroad.”

"In concert with our partner law enforcement agencies, SIGIR continues to advance efforts to investigate allegations of corruption in Iraq and to support the Department of Justice's prosecution of those who wrongfully have taken advantage of the U.S. reconstruction program for illegal personal gain. The prosecution of Terry Hall is the latest success in those collective efforts,” said Stuart W. Bowen, Special Inspector General for Iraq Reconstruction (SIGIR).

If convicted on the conspiracy charge, Hall faces up to five years in prison. Hall faces 15 years in prison if convicted on the bribery count and 20 years in prison if convicted on the wire fraud count. Hall also faces fines and a term of supervised release, if convicted. The superseding indictment also seeks the forfeiture of any property or money involved in the alleged offenses.

An indictment is merely an accusation and the defendant is presumed innocent until and unless proven guilty at trial beyond a reasonable doubt.

The case is being prosecuted by trial attorneys Peter C. Sprung and Deborah Mayer of the Criminal Division’s Public Integrity Section, headed by Section Chief William Welch. These cases are being investigated by Army Criminal Investigation Division and Defense Criminal Investigation Service, the FBI, ICE, the Justice Department’s Office of the Inspector General, SIGIR and the Internal Revenue Service Criminal Investigation. The investigations are continuing.

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When is Privacy Private on Your Computer?

GFP Note: Privacy, or the lack thereof, is a big issue in today's world. "Private browsing" only assists privacy on one computer. Read and take heed.

(BUSINESS WIRE)--Microsoft announced last week that the upcoming Internet Explorer 8 would include the rumored “private browsing” mode, designed to conceal a user’s activities from other users of the same PC. A privacy mode is already a feature of Apple’s Safari browser, and a similar technology is available in Mozilla’s Firefox, as well as the newly announced Google Chrome. Private browsing mode utilizes techniques that automatically delete search history, page cache, and browsing history so the next user can’t see where you’ve been or what you’ve been up to.

Unfortunately, this mode does nothing to provide real privacy from hackers, spyware, and network-based attacks that pose significant and growing threats to users’ finances and identities.

“The private browsing mode avoids embarrassment, and prevents your spouse from learning about the surprise gift you’re researching for them,” says Ray Dickenson, Authentium’s CTO. “But it doesn’t prevent the disclosure of your usernames, passwords, credit card numbers, and other personal information to criminals. While we applaud the feature as a valuable tool for users, we’re concerned the name will only exacerbate the current explosion of digitally cultivated identity theft by fooling users into thinking they’re protected.”

Authentium, maker of the leading secure browsing companion SafeCentral, cautions users not to trust these privacy features as a means of protection from fraud.

“Whether using Safari, Firefox, or the upcoming Internet Explorer 8, users need to be aware that the private browsing mode is for local protection only, and is not a deterrent against identity theft,” says Corey O’Donnell, Vice President of Marketing for Authentium. “While I can’t suggest a better name, we’re certainly concerned that the private browsing moniker will give users a false sense of security and put them at increased risk when conducting transactions online. Independent of our goals and mission of providing advanced protection with our SafeCentral service, we feel it’s important to alert the public about the actual functions of this feature.”

Authentium issued the warning in conjunction with the recent announcement and posted notifications to its antivirus customers and security partners via the corporate blog. Authentium is attempting to ensure that the security community, including its roster of high-profile partners, was prepared to respond to customer inquiry on the feature.

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Medical Supply Executive Imprisoned for Defrauding Medicare

ANGELA D. ISLEY, 44, of Atlanta, Georgia, was sentenced today by United States District Judge Charles A. Pannell, Jr. to serve more than 5 years in prison on charges of health care fraud, mail fraud, and money laundering. ISLEY was convicted of these charges on April 28, 2008, following a two week jury trial.

United States Attorney David E. Nahmias said, “The defendant submitted false claims to Medicare with a total value of more than $600,000, resulting in a loss to Medicare of $219,000. She also used her position at Orthoscript, Inc. to steal more than $360,000 from that company. Every dollar the defendant stole from the Medicare program was a dollar taken from the elderly and disabled Americans who depend on Medicare for their health care needs, and from the taxpayers who fund the program. The prison sentence imposed today reinforces the message that health care fraud is a serious crime with serious penalties.”

OIG Special Agent in Charge Melody Jackson said, “Today's action sends a message to those who corruptly take advantage of the Medicare system. The Office of Inspector General, Atlanta Regional Office will continue to work aggressively to eliminate this type of corruption in our health care system.”

ISLEY was sentenced to five years, ten months in federal prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $703,814. Judge Pannell said from the bench at today’s hearing that, partly because of extra costs incurred by the government retrieving hundreds of documents demanded by ISLEY during discovery that he is also ordering her to pay a fine of $125,000.

According to United States Attorney Nahmias and the information presented in court: Between January 2001 and December 2003, ISLEY knowingly assigned incorrect “product codes” to certain wrist braces and walking boots in Orthoscript Incorporated’s inventory in order to generate higher reimbursements from Medicare. ISLEY instructed company employees, often over their objections, to file claims with Medicare listing fraudulent product codes which are to be specifically used for custom-fabricated wrist braces, when all Orthoscript actually supplied were cheaper, prefabricated, off-the-shelf items. As a result of the health care fraud scheme, ISLEY caused Orthoscript to fraudulently bill the Medicare program for more than $600,000.

ISLEY's responsibilities at Orthoscript also included handling and accounting for ordinary business expenses, such as writing checks to vendors. Between April 2001 and April 2004, ISLEY wrote Orthoscript company checks to pay her and her partner's personal Capital One credit card bills, and used her sole control over Orthoscript's books to cause these payments, totaling more than $360,000, to be falsely recorded as legitimate business expenses. Orthoscript's officers and shareholders never authorized ISLEY to obtain reimbursement for these personal expenses.

A defendant in a related case, ARCH NELSON, 46, of Alpharetta, Georgia, who was a partner in Orthoscript, was sentenced late this afternoon to 5 years of probation, and ordered to perform 250 hours of community service, on a charge of misprision of felony, in knowing about and not reporting ISLEY’s crimes. NELSON had pleaded guilty to the charge in October 2006 and testified against ISLEY at her trial.

This case was investigated by Special Agents of the Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.

Assistant United States Attorneys Glenn D. Baker and John Horn prosecuted the case.

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Major Mortgage Fraud Scam Busted

DOSSEY RICHARDS, 36, of Atlanta, Georgia; LOVIE HOBBS, a/k/a “Lovie Hobbs Hagwood,” 47, of Lithonia, Georgia; MONTRA McKENZIE, 29, of Atlanta, Georgia; CYRUS DAVIS, 42, of Atlanta, Georgia; MARCUS VICKERS, 35, of Ellenwood, Georgia; RAYSHUAN HARMON, 27, of East Point, Georgia; and MICHELLE DAVILA, 35, of Atlanta, Georgia, have been arrested on a federal criminal complaint related to a mortgage fraud scheme.

United States Attorney David E. Nahmias said, “This is unfortunately another in a long series of major mortgage fraud cases in metro Atlanta. In this case, an entire condominium complex was gutted by fraud and greed. And as we have seen too many times before, one of the defendants charged is a closing attorney, someone the victim lenders retained and trusted to protect them against such fraud, but who instead became a participant in it. Mortgage fraud will remain a high priority for federal law enforcement in North Georgia.”

FBI Atlanta Special Agent in Charge Greg Jones said, “Today's (June 18, 2008) arrests illustrate clearly that the crime of mortgage fraud involves people from all walks of life who unwisely choose to collectively use their various positions and skills to rip off banks or other lending institutions. Mortgage fraud is a complex and prevalent crime problem that the FBI is well suited to address and intends to do just that.”

According to Nahmias and the information presented in court: The complaint alleges one count of conspiracy to commit wire fraud based on a mortgage fraud scheme.

Participants in the alleged fraud included DOSSEY RICHARDS, the owner of “Red Hair Investment Group, LLC;” MARCUS VICKERS, d/b/a “Title Depot of America,” a closing attorney in the Atlanta area; MONTRA McKENZIE and CYRUS DAVIS, both mortgage
brokers in the Atlanta area; MICHELLE DAVILA, an employee of Wachovia Bank; and
RASHUAN HARMON, who provided fraudulent appraisals as a part of the scheme. In
addition, LOVIE HOBBS, accused of being a “straw buyer,” is an employee with the Internal
Revenue Service (IRS)in Atlanta.

The properties that are the subject of the charges are units in the “Blue Sky” condominium complex located at 3106 Memorial Drive in Atlanta. It is alleged that the persons named in the criminal complaint conspired to defraud certain lenders by inflating the value of units at Blue Sky.

The fraudulent transactions outlined in the complaint occurred between March and May of 2008. The complaint alleges that the current (as of today) listings of 25 units in the complex range in price of between $2,000 and $28,750; however, the inflated sales prices used to fraudulently obtain inflated loans were between $135, 000 and $155,000. The participants charged include the property owner/seller DOSSEY RICHARDS as well as the straw buyer/borrower LOVIE HOBBS. As in most mortgage fraud cases, prior inflated loans obtained for units in Blue Sky have gone into foreclosure, causing losses to the victim lenders.

The defendants each face a possible maximum term of 30 years in federal prison. In determining the actual sentence, the Court will consider the United States Sentencing
Guidelines, which are not binding but provide appropriate sentencing ranges for most
offenders.

Members of the public are reminded that the indictment contains only allegations. A
defendant is presumed innocent of the charges and it will be the government's burden to
prove a defendant's guilt beyond a reasonable doubt at trial.

This case is being investigated by Special Agents of the FBI. Assistant United States Attorney Barbara Nelan is prosecuting the case.