‘Tis the Season for Retail Fraud

Mark Mandell, Esq.

 

As the holiday season nears, retail fraud is expected to skyrocket. Last December, the National Retail Federation estimated retail fraud’s annual cost at $8.9 billion, according to a survey of 60 retail firms. Of that amount, $2.9 billion will come during the holiday season. The holiday season can be difficult on families who may not be able to afford the types of gifts they would like to give their loved ones. For this reason, individuals in this predicament may feel the need to commit retail fraud. Although, this may be a difficult time for many families, the penalty of retail fraud is too severe and the risk is too high. Since the consequences of retail fraud are hefty, quality legal representation is a necessity.

There are three degrees of retail fraud: first degree, second degree and third degree. The difference in degrees of retail fraud depends on the benefit wrongfully received. If the benefit wrongfully received is $200.00 or less, the crime would be considered retail fraud in the third degree, a misdemeanor. If the benefit wrongfully received is more than $200.00 but less than $1000.00, the crime would be considered retail fraud in the second degree, a misdemeanor. If the benefit wrongfully received exceeds $1000.00, the crime would be considered retail fraud in the first degree, which is a felony.

Retail fraud can take a variety of forms such as taking property from the store that has not been paid for; returning items to the store as a refund or exchange for property that was not paid for and misrepresenting the price of an item with intent not to pay for the item or pay less than the price at which the property is offered for sale.

Retail fraud is governed by statute-MCL §750.356. MCL §750.356c provides that any person who commits retail fraud in the first degree is punishable by imprisonment for not more than 5 years or a fine of not more than $10,000.00 or 3 times the value of the difference in price, property stolen, or money or property obtained or attempted to be obtained, whichever is greater, or both imprisonment and a fine. MCL §750.356d provides that any person who commits retail fraud in the second degree is punishable by imprisonment for not more than 1 year or a fine of not more than $2,000.00 or 3 times the value of the difference in price, property stolen, or money or property obtained or attempted to be obtained, whichever is greater, or both imprisonment and a fine. MCL §750.356d provides that any person who commits retail fraud in the third degree is punishable by imprisonment for not more than 93 days or a fine of not more than $500.00 or 3 times the value of the difference in price, property stolen, or money or property obtained or attempted to be obtained, whichever is greater, or both imprisonment and a fine.

The harsh penalties of retail fraud make having experienced and knowledgeable legal counsel invaluable.  If you have been charged with retail fraud, contact attorney Mark Mandell at (248) 380-0000 or online at www.MichiganFraudLawyer.com. 

False Claims Act

Mark Mandell, Esq.

 

The False Claims Act has recovered approximately $18.3 billion dollars for the federal government from 2008 through 2012. For every dollar the government invests in fighting healthcare fraud, the government gets $16 dollars in return.

The False Claims Act is a Civil War era law, dating back to 1865. The Act is meant to fight companies who defraud governmental programs. People that are not affiliated with the government are also allowed to file actions on behalf of the government; this is known as “whistleblowing”. Whistleblowers can receive up to 15-25% of recovered damages. 

In the past two years, there has been a tremendous increase in healthcare fraud cases. For example, in 1987-1992, there were only 62 healthcare fraud cases filed by “whistleblowers”. The number of cases in 2011 and 2012 add up to 829 cases.

Supporters of The False Claims Act explain that this revenue actually returns a large amount of money to U.S. tax payers. The report from the Washington based group, D.C.-based Taxpayers Against Fraud, states that this revenue can fund the entire Children's Health Insurance Program, serving more than 5 million people, for approximately four years.

 

Although, there are many supporters of the act, there is also some opposition. For example, the U.S. Chamber of Commerce believes that this act needs a lot of reform to encourage companies to try to fix the fraud issue internally. Penalties for healthcare fraud are actually three times the amount of the actual damages and the Chamber of Commerce explains that these penalties are handed out without any due process. The Chamber of Commerce explains that these penalties are too harsh and this makes companies less likely to come forward and ask for help in solving their issues with internal fraud. For example, the Chamber of Commerce thinks a good idea for reform would be to create benefit incentives for companies who create in house programs against fraud.

Healthcare fraud continues to be a serious problem and initiatives to fight healthcare fraud continue. For more information please read:

http://www.beckershospitalreview.com/legal-regulatory-issues/u-s-recovers-16-for-every-1-it-spends-fighting-civil-healthcare-fraud.html

http://www.mainjustice.com/2013/10/23/u-s-chamber-of-commerce-proposes-false-claims-act-reforms/

Michigan to Receive $42 Million in Nationwide Healthcare Fraud Settlement

Matthew Worley, Esq.

 

Johnson & Johnson and its subsidiaries have agreed to pay more than $2.2 billion to the federal government and 45 states in one of the largest health care fraud settlements in history.

 

The payment is made to settle criminal fines and civil suits alleging the entities offered kickbacks to doctors and pharmacies to promote certain drugs for uses not approved by the FDA – a practice prohibited under U.S. law.

Allegedly, the health care giant promoted the use of schizophrenia drugs for use in elderly dementia patients and for children with AD/HD, autism, and other disorders.  These drugs were not approved for these uses, making it illegal for the manufacturer of the drug to market them.

Michigan’s share of the settlement, which is approximately $42 million, will primarily go to the state’s Medicaid program which initially paid for most of these prescriptions.  According to Michigan Attorney General Bill Schuette, this major settlement makes a statement that the hardworking taxpayers of Michigan deserve better than to be duped into paying more than they should have.

Under a “Corporate Integrity Agreement,” the federal government will be closely monitoring the company’s marketing practices going forward.

If you have questions about health care fraud, or are afraid that you may have been the victim of a fraud, contact the experienced attorneys at Fausone Bohn, LLP, by calling (248) 380-0000 or online at www.MichiganFraudLawyer.com. 

To read the original article detailing this health care fraud settlement, visit: http://www.mlive.com/business/index.ssf/2013/11/michigan_johnson_johnson_drug.html

Seniors Beware of Telemarketing Fraud

Mark Mandell, Esq.

Senior citizens and grandparents have been a major target for telemarketing and telephone scams in Michigan. Unfortunately, as Glenn Clark, a repre­sentative of the Michigan Attorney General Bill Schuette’s Consumer Protection Division explains, “if you’re a senior, God bless you, but you have a bull’s-eye on your back for these telemarketing frauds.”

Mr. Clark, keynote speaker at the annual Monroe County Elder Justice Sum­mit held Thursday, said 56 to 80 percent of all telemarketing fraud is aimed at seniors but telemarketing fraud is not the only type of fraud that takes place over the phone. Another common scam aimed at senior citizens is the “emergency situation” scam.

Unfortunately, scammers find the names of their victims from public documents or other sorts of data mining. When the scammers locate their victims, they call the senior citizen pretending to be a relative in distress. The scammers explain to the targeted senior citizen that they are in a medical, legal, or any other type of emergency to acquire funds. The scammer makes sure the senior believes that they are, for example, a grandchild that needs immediate help.

Because senior citizens and grandparents are older in age, may have a hard time hearing over the phone, and are not used to telephone calls, they often do not realize that the person on the line is not their family member.

Mr. Clark further explains that the scammers try to appeal to some kind of emotional bond and “they want you to act emotionally and not logically.”

In order to prevent these types of situations Mr. Clark advises to try to verify who that individual is through quizzing them on personal details or calling relatives to verify that the individual is really in trouble.

If you have faced this type of situation or have any questions regarding these types of issues contact Michigan fraud attorney, Mark Mandell at 888-674-1189 or online at www.MichiganFraudLawyer.com

Read more at: http://www.monroenews.com/news/2013/oct/15/scammers-target-grandparents/