Super Drunk Driving

Mark Mandell, Esq.

Although it was enacted in October, 2010, a recent incident in Saline, Michigan reminds us that Michigan’s “super drunk” driving law is still making headlines.

Last week a 16-year-old boy driving in Saline, Michigan slid off the road and crashed his car in a ditch after police witnessed him going in excess of 80mph in a 25mph zone. Upon arriving at the scene police quickly realized alcohol was involved and ordered a breathalyzer test, revealing a B.A.C of .17. Being over twice the legal limit, the boy met the standards for being “super drunk”.

According to MCL 257.625, a driver who operates a vehicle with a B.A.C. of .17 or higher can be convicted of being “super drunk”. The charge can result in up to 180 days in jail, a $200 to $700 fine and up to 360 hours of community service. Furthermore, being found “super drunk” mandates the offender to complete a one-year alcohol rehabilitation program and effects driving privileges on their license.

"These aren't people who just had a glass or two of wine at dinner or a party — these are people with alarmingly high blood-alcohol counts, some in the high 0.20s and even into the 0.30s, out drunk in the middle of the day," said Oakland County Prosecutor Jessica Cooper.

Although the fate of the boy from Saline has yet to be determined, “super drunk” convictions certainly aren’t a rarity. Since the law went into effect more than 17 months ago, six drivers a day, on average, are convicted under the statute.

Despite all the convictions it is still unclear whether the law is serving its purpose as a stronger deterrent for drunk drivers in Michigan. “It might be more than a decade before we can accurately measure and calculate what it all means,” stated Cooper.

To learn more and see the original articles, please visit:

http://www.annarbor.com/news/crime/saline-boy-arrested-after-allegedly-crashing-car-while-super-drunk/

http://www.policeone.com/traffic-patrol/articles/5409283-Mich-police-target-Super-Drunks/

If you have questions in this area of law, contact Mark Mandell at (248) 380-9976.

Medicare Fraud –Troy, Michigan

Mark Mandell, Esq.

Three laboratory companies in Troy, Michigan are merely another example of our Country’s Medicare system being thoroughly abused.

Coventry Diagnostics LLC and Western Slope Laboratory LLC were both owned by an umbrella company Accela Medical LLC. Through an investigation, the U.S. Attorney’s Office found that Accela had billed for over $6 million in Medicare funds, using a specific billing code more than any other provider in the Nation. Accela turned out to be owned by Thomas McCormick of Troy, Michigan, who was using the company as a front to circumvent his previous Medicare fraud related disbarment.

The investigation turned up $900 worth of urine tests (billed for every patient despite the need) and falsified documents to the government about the ownership of all three laboratories. The $6 million will be repaid as U.S. District Judge Stephen J. Murphy III froze assets including $400,000 in cash, transfer of a North Carolina beach home, $500,000 transferred to a shareholder in Singapore and much more.

U.S. Attorney Barbara L. McQuade commented on the issue.

 “This fraud was discovered by analyzing data to flag billing anomalies….Providers should be aware that law enforcement is scrutinizing billing records to identify providers who are stealing from taxpayers."

To learn more and see the original article, please visit:

 http://www.dailytribune.com/article/20120210/NEWS/302109937/troy-labs-to-pay-6m-in-fraud-fines

If you have questions in this area of law, contact Mark Mandell at 248-380-9976.

Retail Fraud

By:  Mark J. Mandell

Lengthy streams of 1’s and 0’s are behind a new area of retail fraud that is taking the nation by storm. With many cash-strapped state governments looking anywhere they can for money, some have come across a tax exploit that a large amount of cash retailers are using to their advantage.

Labeled as a “Tax-Zapper”, this new form of software allows cash businesses to under-report taxable sales and pocket government money. The Zapper software is typically stored on a thumb drive and after the close of a business day is plugged into the cashier’s computer. It then subtracts a total amount, such as $500 dollars, from the day’s sales and recalculates the receipts to conform to the new number.

The software allows the daily customer to remain unaffected, as their receipts are printed out using the true value of the products purchased. However, the new set of ‘books’ and receipts created by the software are sent to the IRS and typically vastly understate actual profit. 

Five states- Florida, Georgia, Maine, Utah and West Virginia have all enacted laws cracking down on the software. It’s estimated that a significant portion of cash businesses, such as those in the restaurant industry, are utilizing this type of retail fraud. In California, the loss from Zappers in 2009 was estimated at $2.8 billion dollars….from the restaurant industry alone!

Maine’s law makes the installation of such software punishable by up to five years in jail and a $5,000 fine. Although only a select number of states have responded to the problem, Max Behlke of the National Conference of State Legislature’s policy department stated, “We’re going to have a huge inundation of these bills next year.”

We can only hope the State of Michigan follows suit.

To learn more and see the original article, please visit: http://www2.tbo.com/news/breaking-news/2012/apr/03/florida-other-states-target-retail-tax-cheating-so-ar-388069/#fbcomments

TV Tax Fraud

You won’t be seeing any commercials for TaxMasters any time soon, due to a recent court decision in Texas. A jury handed down a recent verdict, finding that TaxMasters and its predecessor company had committed over 110,000 violations of Texas’ Deceptive Trade Practices Act.

TaxMasters, a Houston-based tax consultation company, misled customers with contract terms and also routinely missed IRS deadlines at their customer’s expense. The court ordered that TaxMasters pay $195 million back in damages, $46 million coming from founder Patrick Cox’s pocket, and the rest from the firm itself.

Unfortunately, TaxMasters filed for bankruptcy earlier in the month and it is estimated that they owe money to up to 5,000 separate creditors. It is speculated that the bankruptcy filing might be a way for TaxMasters to get out from under the $195 million dollar judgment. This would be a huge loss for the defrauded customers, of which $113 million was earmarked restitution for.  

Texas Attorney General Greg Abbott is still happy with the verdict, stating:

“[The] decision marks a significant victory for the Texans and TaxMasters customers nationwide who sought help from TaxMasters with their income tax debts and were taken advantage of in the midst of a national economic downturn."

If you have been the victim of a fraud scheme, contact Mark Mandell at (248) 380-9976 for help.

To learn more or see the original article, please visit: http://money.cnn.com/2012/03/30/news/companies/taxmasters-fraud/index.htm