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/

Last Call for Alcohol at 4 a.m.?

Mark Mandell, Esq.

 

Many individuals and law enforcement officials are concerned with Senate Bill 247 which would allow bars and restaurants in cities' central business districts to sell alcohol until 4 A.M. with a special permit.

Those opposing the bill are concerned with potential health and safety implications. One of the main concerns with extending the time to sell alcohol is drunk driving. There were several posts made on the MLive Facebook page that show why many people are concerned with this bill. Thomas Donnely, a Michigan citizen, posted "I am against this proposal. People leaving bars at 4:00 AM will endanger those going to work in the early AM." This is only one of many comments posted against Senate Bill 247.

Although there are a lot of individuals against the bill, there are many who support the bill as well. Supporters explain that longer hours would help create jobs for bartenders and create more wages for taxi drivers. A supporter of the bill, Roy Munson, posted on the MLive Facebook page that the hours "should be up to the bars. We don't need the government telling anybody what to drink and when. People need to be responsible."

MLive conducted an informal poll and found that 57 percent of the nearly 800 poll takers would support the bill, including those who want it extended to all areas, not just cities' central business districts, and those who would only support it if the local municipality opts in. 43 percent of poll takers opposed the bill and agreed with the saying that “Mama always said ‘Nothing good happens after midnight.’”

If you have questions about drunk driving laws in Michigan, contact criminal defense attorney Mark Mandell at 248-380-0000 or online at www.MichiganFraudLawyer.com. 

 

For more information please read:

http://www.mlive.com/business/index.ssf/2013/10/4_am_last_call_for_alcohol_som.html

 

New Michigan Anti-Fraud Taskforce

Matthew Worley, Esq.

Michigan Secretary of State Ruth Johnson, in coordination with police, prosecutors, state officials, and industry leaders has launched a new anti-fraud task force.  Fighting Auto Insurance Rip-offs, referred to simply as FAIR, is aimed at combatting a growing trend in Michigan – auto insurance fraud.

The scam involves individuals selling fake auto insurance policies.  The perpetrators then set up fake help desks so when a call is made to verify a policy, a real person answers and vouches for the non-existent policy.  However, as soon as the motorist is in an accident or tries to make a claim, they realize that there is no policy and their premiums having been lining someone’s pocket.

In July, Secretary of State Johnson’s office conducted a one-day review of the 15,000 registration renewals submitted in all the branches.  Of the insurance policies verified that day, an astonishing 16% were found to be invalid or fraudulent.  These fakes turned up in more than half of Michigan’s 83 counties.

The burden of these uninsured motorists is felt by every law-abiding Michigan motorist who follows the law and carries a no-fault policy.  The costs of having these uninsured motorists on the road rise into the hundreds of millions of dollars – which translates to higher insurance premiums.

The FAIR task force will explore new means to combat insurance fraud through procedural changes, new investigative efforts, and potentially new legislation.  It will include representatives from the Secretary of State’s office, the Michigan State Police, Michigan prosecutors, and several insurance industry organizations.

If you have questions about auto insurance fraud, or any other legal matters, contact the experts at Fausone Bohn, LLP at (248) 380-0000 or online at www.fb-firm.com.

 

To learn more about the new fraud task force, visit: http://www.insurancejournal.com/news/midwest/2013/09/19/305718.htm.

Eastern Market Businesses Investigated and Charged With Food-Stamp Fraud

Breeda O’Leary, Esq.

 

A recent sweep of numerous establishments located within the Eastern Market shows that the U.S. Attorney’s Office continues to investigate and pursue fraud throughout the metro Detroit area.

The U.S. Attorney’s Office, together with the U.S. Department of Agriculture Office of Inspector General, Internal Revenue Service, Michigan State Police, and the U.S. Immigration and Customs Enforcement’s Home Security Investigations, executed a search warrant against several businesses suspected of participating in food stamp fraud. 

The alleged fraud included the sale of food stamps for as low as fifty cents on the dollar.  An individual who receives food stamp benefits is provided an EBT card and a pin number for the EBT card.  At a retailer, the recipient scans its EBT Card and enters its four-digit pin at checkout in order to pay for its food-product purchase.  Here, it is alleged that retailers were purchasing a recipient’s EBT Card and pin number, providing fifty cents for every dollar the business charged to the EBT card in food-stamp benefits.  As a result of this fraud, the retailer would be reimbursed $1.00 in cash from the government for a food product it never provided to the EBT Card recipient.  In exchange, the retailer would only provide fifty cents in cash to the EBT Card recipient.

Nearly 47 million people nationwide receive food assistance, making food-stamp fraud a serious concern for the government.  The sale and purchase of food-stamp benefits, also known as “trafficking” is a common form of fraud within the program.

  
If you are a business or individual that has been charged with fraud, or if you think you may be the target of an investigation concerning fraud, contact the experienced and professional fraud team at Fausone Bohn, LLP for sound legal advice.  Contact Breeda O’Leary-Holder at (248) 380-0000 or online at www.MichiganFraudLawyer.com.

To read the article about the recent food-stamp fraud sweep of businesses in Eastern Market, please visit:

 http://www.detroitnews.com/article/20130919/METRO08/309190087/1361/9-accused-of-food-stamp-fraud-after-feds-sweep-Eastern-Market-businesses

 

Scheme to Defraud the W.K. Kellogg Foundation

Mark Mandell, Esq.

 

In 2008 an $800,000 scheme targeting funds from a children’s charity was unearthed. The charity was an organization that is devoted to helping children in Africa.

Nehemiah Muzamhindo, a 48-year-old political refugee from Zimbabwe, was sentenced to six years in federal prison for his role in the scheme targeting funds from the foundation. In addition to his sentence Muzamhindo was also ordered to pay $709,000 in restitution fees.

Muzamhindo had taken $629,000 from the foundation before he was cut out of the scheme. In order to claim funds from the children’s charity Muzamhindo set up bank accounts and shell companies to accept fraudulent claims. Then, he would go on to send half of the money he collected to foundation worker, Sabina Brand, in South Africa. Sabina Brand is currently serving 15 years in a South African prison for her role in the scheme.

During the trial Assistant U.S. Attorney Timothy VerHey attacked the “bad character” of Muzamhindo. VerHey wrote in court documents that; “…His crime had a far-reaching impact, because it led the WKKF to withdraw from its charitable activities in Africa.”

Scott Mertens, Muzamhindo’s defense attorney, argued for Muzamhindo’s character saying that, “Mr. Muzamhindo had been involved in charitable works and has assisted others who have emigrated from Zimbabwe.”

To learn more or to see the original article, please visit: http://www.mlive.com/news/grand-rapids/index.ssf/2013/09/kentwood_man_sent_to_prison_in.html

If you or someone you know is the target of a fraud investigation, or if you have already been indicted, contact the experienced team of fraud attorneys at Fausone Bohn, LLP, at (248) 380-0000 or online at www.MichiganFraudLawyer.com. 

Embezzlement Law in Michigan

Mark Mandell, Esq.

Recently, a Portage, Michigan man was sentenced to 87 months in prison for embezzling $6.5 million from the company where he worked as a comptroller.  In addition to his prison time and supervised release thereafter, he is required to pay restitution of $6.5 million to his former employer.  This shows just how serious the consequences of an embezzlement conviction can be.

Embezzlement in Michigan is governed by statute – MCL §750.174.  In essence, a person is guilty of embezzlement when they are in a relationship of trust to the principal (generally an employer-employee situation); in lawful possession or control of the funds of the principal; and wrongfully take or convert those funds to his own use, with the intent to defraud.

The key element to a charge of embezzlement is that the person takes the money, which belongs to the principal, with the intent to convert it to his own use.  In other words, the person has the fraudulent intent to deprive the owner of his property and take it for himself.  Without this intent to defraud, a taking cannot be embezzlement (though it may constitute another offense.)

The severity of an embezzlement charge depends on the amount of money or personal property taken by the agent or employee.  The charges include the following: 

·        If the money or property taken is valued at less than $200, the charge is a 93-day misdemeanor with a possible fine up to $500; 

·        If the value is up to $1,000, the crime is a 1-year misdemeanor subject to a fine of up to $2,000.

·         $1,000 to $20,000 is a 5-year felony with a fine of up to $10,000. 

·         $20,000 to $50,000 is a 10-year felony with a fine up to $15,000. 

·         $50,000 to $100,000 is a 15-year felony with a fine up to $25,000. 

·         $100,000 and above is a 20-year felony with a fine up to $50,000.

 

Additionally, a person convicted of embezzlement will likely be required to pay restitution to the owner of the amount illegally taken, in addition to the statutory fines and jail time.  Charges may also be enhanced if the defendant has any prior embezzlement convictions on his record.

 

If you are facing embezzlement charges, or if you need more information about this area of the law, contact Michigan Fraud Lawyer Mark Mandell at (248) 380-0000 or online at www.MichiganFraudLawyer.com.  Mr. Mandell can provide you the experienced and knowledgeable legal counsel that is absolutely imperative when facing all manners of criminal charges.

$4.15M Settlement Evidences Benefit of Reporting

Breeda O’Leary, Esq.

The U.S. Government (“Government”) and the State of Michigan (“State”) have reached an agreement in a False Claims Act case wherein the Defendants have agreed to pay $4.15M to the Government and State for fraudulent billings to Medicare and Medicaid.

   
The qui tam provisions of the False Claims Act allows an individual with knowledge of Medicare or Medicaid Fraud, referred to as the “relator,” to file a lawsuit on behalf of the Government against those committing the fraud.  The Government is then provided notice of the lawsuit and is given the option to intervene as Plaintiff in the suit.  If the Government obtains a judgment or settlement in the suit, the relator is provided a percentage of the amount collected.
      
In the instant case, it was alleged that the Defendants, Dr. Jashu R. Patel and other Jackson Cardiology Associates physicians, performed unnecessary cardiac procedures at Allegiance Health’s W.A. Foote Hospital in Jackson, also a Defendant in the case.  Medicare and Medicaid were billed for these procedures.  Dr. Julie A. Kovich, a former independent contractor at Jackson Cardiology Associates, filed suit as the relator in this case.  While Dr. Kovich faces the possibility of being ostracized by her peers, she will receive approximately $764,700.00 as the relator. 
 
If you or anyone you know has specific knowledge of fraudulent billing to Medicare or Medicaid, or is facing criminal or civil liability concerning an alleged fraud, contact the experienced and professional fraud team at Fausone Bohn, LLP for sound legal advice.  Contact us at (248) 380-0000 or online at www.MichiganFraudLawyer.com.

To read the article about the deficiencies in Medicare’s new accounting system, please visit:  http://www.justice.gov/usao/mie/news/2013/2013_7_10_jpatel_HCF.html