Traverse City Man Pleads Guilty to Fraud

Mark J. Mandell, Esq.

William Lowder, a northern Michigan insurance broker, pleaded guilty to fraud. After manipulating clients to change their investments and encouraging them to put money in annuities handled by his Traverse City office, Lowder cost his clients more than $1 million over an eight-year period.

Only a week after charges were filed, 57-year-old Lowder pleaded guilty in Grand Rapids federal court. Lowder also pleaded guilty to a tax crime. Earlier last year, state regulators suspended his license. While he took advantage of many clients, the state regulators say he also took advantage of at least one client who was mentally incompetent.

He has been given a court-appointed attorney and will receive his sentence on May 29.

If you have questions about criminal matters, fraud or other legal issues, please contact Mark Mandell or Tariq Hafeez at 248.380.0000 or online at www.MichiganFraudLawyer.com.

To learn more and read the original article, please visit: http://www.insurancejournal.com/news/midwest/2013/01/21/278066.htm

 

Increase in Fraudulent Loan Applications Necessitates Vigilance for Lenders

Mark J. Mandell, Esq.

A troubling spike in fraudulent loan applications in Flint, Michigan between June 2012 and October 2012 is the highest in the nation. According to Kroll Factual Data, a Colorado-based lender verification service, Flint saw a 50.3 percent increase in fraudulent loan applications to banks, mortgage lenders, and credit unions. While fraud alerts saw declines in some areas of the country, these declines were offset by significant increases in other areas of the country.

“The spike in potential fraud is troubling, coming at the same time the mortgage industry is beginning to turn the corner,” said Rod Bazzani, president of Kroll Factual Data. More so, the increase in potential fraud poses a risk for lenders and highlights the need for lenders to continue to be vigilant.

The results of the study were announced just two weeks after the federal Consumer Financial Protection Bureau issued new regulations for borrowers. Such regulations include the need to verify financial records in order to ensure one’s ability to repay mortgages.

Kroll Factual Data examined multiple metropolitan areas and used proprietary risk analysis and verification engines to isolate files that contain indicators of mortgage origination fraud. While Flint saw the largest increase, other cities that made the top ten include Colombia, Missouri; Lancaster, Pennsylvania; and Tacoma, Washington. While most other cities that saw increases in fraudulent loan applications hovered around an increase of 20 percent, Flint saw an increase of around 50 percent. Nationally, fraudulent loan applications increased just 1.1 percent. In comparison, the increases in Flint are quite troubling.

If you have questions about criminal matters, fraud or other legal issues, please contact Mark Mandell or Tariq Hafeez at 248.380.0000 or online at www.MichiganFraudLawyer.com.

To learn more and read the original article, please visit: http://www.mlive.com/business/mid-michigan/index.ssf/2013/01/flints_increase_in_fraudulent.html

Seventeen-Year Sentence Awaits Pharmacist

Mark J. Mandell, Esq.

 

After billing the government for more than $57 million worth of medically unnecessary painkillers, Babubhai (Bob) Patel now faces 17 years in prison.

Owning and operating more than 26 pharmacies across metro Detroit, Patel had a myriad of doctors at his fingertips. He paid such doctors to write orders and had recruiters offer cash to lower-income individuals in exchange for their Medicare or Medicaid numbers. The scheme operated on a business model that paid kickbacks to physicians in exchange for their writing prescriptions for expensive – yet unneeded – medications. As a result, between 2006 and 2011, Patel billed Medicare and Medicaid for over $57 million. At least 25 percent of those billings were for drugs that were never dispensed or were unnecessary to begin with. Not only did Patel take advantage of the government, but he also fraudulently billed to private insurers, such as Blue Cross Blue Shield of Michigan.

In addition to the years Patel will face behind bars, he has also been ordered to pay restitution in the amount of $17.3 million to Medicaid and Medicare, as well an additional $1.5 million to Blue Cross Blue Shield.

“What you have done,” the court told Patel, “is reprehensible.”

If you have questions about criminal matters, fraud or other legal issues, please contact Mark Mandell or Tariq Hafeez at 248.380.0000 or online at www.MichiganFraudLawyer.com.

To learn more and read the original article, please visit: http://www.siliconindia.com/news/usindians/IndianAmerican-Jailed-for-17-Years-For-Healthcare-Fraud-nid-140144-cid-49.html

 

Michigan Supreme Court Justice Retires After Accusations of Bank Fraud

Mark J. Mandell, Esq.

Amidst federal charges of bank fraud, Diane Hathaway has filed for retirement, stepping down from her post as Michigan Supreme Court Justice. The charge was filed Friday as a “criminal information,” which means it was negotiated and that a guilty plea is expected in federal court. As a result, Hathaway faces the loss of her law license and time in prison.

In order to convince a lender that she qualified for a short sale on her $1.5 million home in Grosse Pointe, Hathaway concealed her ownership of a Florida home by placing the home in husband’s daughter’s name. As a result, the short sale went through in November 2011 and erased the $600,000 debt they had with the bank. Following the short sale, the Florida home was transferred back to Hathaway in March 2012. Hathaway has refused to make any public comments explaining the transactions; instead, she claims that the property shuffle was a private matter.

Now, the judge that sentences her must be concerned with the message that is sent by his decision: “Do you cut a break to a sitting Supreme Court Justice who has to know better?” Peter Henning, a professor at Wayne State University Law School, asked. The maximum penalty for bank fraud is 30 years in prison. While such an extreme sentence seems rare, Hathaway should expect some time in custody. Former federal prosecutor Lloyd Meyer of Chicago believes it “would be unthinkable to have this type of defendant get a slap on the wrist.”

Governor Rick Snyder plans to appoint a replacement. Last year, the Michigan Judicial Selection Task Force made a recommendation for the process, suggesting that when a vacancy occurs on the Michigan Supreme Court, a non-partisan panel should screen candidates and then submit three to five choice from which the governor could choose. As of late, Governor Snyder is conducting his own search, hoping to appoint a replacement sooner rather than later.

Chief Justice Young called the scandal one that “diminishes the public’s trust in government.” Hopefully, Synder’s newest appointee will help to rebuild this trust.

 

If you have questions about criminal matters, fraud or other legal issues, please contact Mark Mandell or Tariq Hafeez at 248.380.0000 or online at www.MichiganFraudLawyer.com.

 
To learn more and read the original article, please visit: http://www.clickondetroit.com/news/Michigan-Justice-Diane-Hathaway-retires-amid-bank-fraud-charges/-/1719418/18211054/-/msqdmv/-/index.html