All the way from Imperial Valley News comes news that John A. Wheeler and Melody Lockett Carter pled guilty on Friday in the U.S. District Court for the Northern District of Georgia to one count of theft of government money for fraudulently obtaining FEMA assistance funds intended for victims of Hurricane Ike. Wheeler and Carter,… Continue Reading
Category Archives: False Claims
Subscribe to False Claims RSS FeedFlorida Executive Sentenced in $10.5 Million Embezzlement Scheme
Posted in Corporate Crimes, False Claims, Fraud, Money Laundering, Securities FraudAlthough it may be considered small change when compared with the fraud of fellow Floridian Scott Rothstein, according to an FBI press release, Gary Ernest Williams, former Chief Financial Officer for Marian Gardens Tree Farm (MGTF) in Groveland, Florida, was sentenced to eight years imprisonment on Monday in the U.S. District Corut for the Middle District of… Continue Reading
Fort Lauderdale Attorney Scott Rothstein Pleads Not Guilty to Information Alleging $1.2 Billion Dollar Ponzi Scheme
Posted in False Claims, Forfeiture, Fraud, High Profile Cases, Money Laundering, Securities FraudIn response to allegations uncomfortably similar to those against former New York celebrity lawyer and arch Ponzi-schemer Marc Dreier, Fort Lauderdale attorney Scott Rothstein, head of Rothstein, Rosenfeldt and Adler, P.A., appeared in response to a criminal information in the U.S. District Court for the Southern District of Florida on Tuesday. The information charges… Continue Reading
Government Drops Prosecution of Miami Attorney Ben Kuehne for Receipt of Legal Fees from Drug Kingpin
Posted in False Claims, Money LaunderingLast Wednesday, the Government, through Deputy Assistant Attorney General Kenneth A. Blanco, filed a brief Motion to Dismiss Third Superseding Indictment with Prejudice seeking to dismiss its indictment against Miami, Florida, attorney Benedict P. Kuehne, and also Colombian attorney Oscar Saldarriaga Ochoa, in the criminal action of U.S. v. Velez, 1:05-cr-20770-MGC, in the U.S…. Continue Reading
Trial of Bear Stearns Hedge Fund Managers Cioffi and Tannin Gets Underway
Posted in False Claims, High Profile Cases, Money LaunderingThe trial of Bear Stearns hedge fund managers Ralph Cioffi and Matthew Tannin got underway last week. As reported by attorney Jacob Zamansky in Forbes and the New York Daily News, the parties gave opening statements on Thursday. Assistant U.S. Attorney Patrick Sinclair argued that Bear Stearns financial officer Matthew Tannin allegedly told investors on… Continue Reading
Bear Stearns Hedge Fund Managers’ Trial Begins Today
Posted in False Claims, High Profile Cases, Money LaunderingThe trial of former Bear Stearns hedge fund managers Ralph Cioffi and Matthew Tannin begins today in Brooklyn, as reported by Bloomberg. A jury will be selected today. Cioffi and Tannin are charged with allegedly causing losses of $1.4 billion to investors by misleading investors regarding the health of two Bear Stearns hedge funds, the… Continue Reading
Bear Stearns Hedge Fund Managers Gear Up for Trial; Google Releases Manager’s Private E-mails
Posted in False Claims, High Profile Cases, Money LaunderingAs reported by Chris Herring over at the Wall Street Journal Law Blog, the trial of former Bear Stearns hedge fund managers Matthew Tannin and Ralph Cioffi is scheduled to commence next Monday. And now the government has obtained Tannin’s e-mails from his private Google account. Tannin had closed the Google account on the advice of his… Continue Reading
SEC Eyes Sir Robert Allen Stanford’s Upaid Gambling Debt
Posted in False Claims, High Profile Cases, Money LaunderingAs we check back with Sir Robert Allen Standford, the most noteworthy development is perhaps that the Bellagio, a Las Vegas casino and luxury resort, filed suit against Stanford last week in a Clark County Nevada district court for an alleged $258,480 in unpaid gambling debts.The lawsuit alleges that Stanford signed for 14 markers… Continue Reading
Bear Stearns Execs Head for Trial on Wire and Securities Fraud Charges
Posted in False Claims, High Profile Cases, Money LaunderingAs is well known, Bear Stearns, one of the largest investment banks in the world, was sold to JP Morgan Chase and effectively ceased to exist in March of 2008, after two Bear Stearns hedge funds invested in collateralized debt obligations—mainly subprime home loans—and once worth approximately $1.6 billion, lost nearly all of their value…. Continue Reading
Pfizer Enters Largest Healthcare Fraud Settlement in U.S. History
Posted in False Claims, Fraud, Health Care Fraud, Money LaunderingPharmaceutical giant Pfizer, inc., will pay $2.3 billion to the Federal government and 49 States to settle allegations that it violated federal regulations in promoting several drugs, as reported by the Atlanta Journal-Constitution. The settlement is the largest in U.S. history to date in a healthcare fraud case. Georgia will receive $21.7 million as part of… Continue Reading
Half-Billion Dollar Medicaid False Claims Case–Largest in U.S. History–Settles; Result of Action by Lone Whistleblower Over Billing for Therapy Services by Schools
Posted in False ClaimsLate last month, New York State and New York City agreed to settle a Medicaid False Claims with the Federal Government for nearly $540 million, the largest Medicaid False Claims case in U.S. history. The case was the result of the actions of a single whistleblower in upstate New York over school billing for speech… Continue Reading
Sister Testifies on Behalf of Alleged Atlanta Terrorist Ehsanul Islam Sadequee; Closing Arguments and Deliberations Today
Posted in False Claims, Money Laundering, TerrorismAs reported in the Atlanta Journal-Constitution and the Associated Press, closing arguments have started in the terrorism trial of Atlanta area native and former Georgia Tech student Ehsanul Islam Sadequee. Sadequee is representing himself and will present his own closing argument. Sadequee called only two witnesses in his defense before resting his case, including his older… Continue Reading
Representative William Jefferson Convicted on 11 of 16 Counts
Posted in False Claims, High Profile Cases, Money LaunderingWe did not weigh in yesterday, but the biggest federal criminal defense news was clearly the conviction of U.S. Representative William Jefferson of Louisiana in his criminal trial in the U.S. District Court for the Eastern District of Virginia, as reported by the New Orleans Times-Picayune. The jury of eight women and four men returned a verdict… Continue Reading
Alleged Terrorist Ehsanul Sadequee Delivers Prayer and Opening Statement; Alleged Co-Conspirator Testifies
Posted in False Claims, Money Laundering, TerrorismEhsanul Islam Sadequee, 23, nicknamed "Shifa," which means "Cure," is representing himself in his trial in the U.S. District Court for the Northern District of Georgia on four counts of allegedly conspiring to provide material support to terrorism. As reported by the Atlanta Journal-Constitution and the Associated Press, Sadequee began his 14 minute opening statement… Continue Reading
Second Alleged Atlanta Terrorist Ehsanul Islam Sadequee Begins Trial; Representing Self
Posted in False Claims, Money Laundering, TerrorismWe closely followed the trial of Syed Haris Ahmed, who was convicted for providing material support to terrorism in early June–all of our posts may be found here. The trial of Ahmed’s alleged co-conspirator, Ehsanul Islam Sadequee on terrorism charges began yesterday in the U.S. District Court for the Northern District of Georgia. Sadequee has… Continue Reading
Congress Considers Over-Criminalization and Over-Federalization of Criminal Law
Posted in False Claims, Legislation, Money LaunderingAs noted at White Collar Criminal Prof Blog and The Justice Fellowship, the U.S. House of Representatives Subcommittee on Crime, Terrorism and Homeland Security held a hearing last week on "Over-criminalization of Conduct and Over-federalization of Criminal Law." Organizations which addressed the Subcommittee on issues of over-criminalization and over-federalization included the American Bar Association, the… Continue Reading
Jury Begins Deliberating Rep. William Jefferson’s Fate Following Over 2 & 1/2 Hours of Jury Instructions
Posted in False Claims, Fraud, High Profile Cases, Money LaunderingAs reported by the New Orleans Times-Picayune, Judge T.S. Ellis, III, of the U.S. District Court for the Eastern District of Virginia read instructions to the jury yesterday which lasted over 2 & 1/2 hours, and the jury retired for its deliberations in the case against former U.S. Representative William Jefferson. The jury deliberated for… Continue Reading
Trial Ends in Case of Former Representative William Jefferson; Jury Deliberations to Begin Today
Posted in False Claims, Fraud, High Profile Cases, Money LaunderingThe trial of former Representative William Jefferson, which has gone on for six weeks in the U.S. District Court for the Eastern District of Virginia, will come to an end today. As reported by Ashby Jones at the Wall Street Journal Law Blog and UPI, both sides gave their closing arguments yesterday. Judge T.S. Ellis… Continue Reading
DeKalb County Man Arrested in Multimillion Dollar Ponzi Scheme; Victims Included Parents
Posted in False Claims, Fraud, Money Laundering, Noteworthy CasesAs reported by the Atlanta Journal-Constitution and WSB Radio, Anthony Ray, a DeKalb County resident, solicited money from investors by promising them large returns from real estate investments by his company, Key Funding Group. He would frequent local churches to locate victims, making presentations to the congregations. Ray lulled his victims by giving them… Continue Reading
Sir Robert Allen Stanford’s Continuing Pretrial Detention Blues
Posted in False Claims, Fraud, High Profile Cases, Money LaunderingSir Robert Stanford has filed a Motion for Relief from Oppressive Jail Conditions. Stanford is currently being held at the Joe Corley Detention Facility in Conroe, Texas. The Motion alleges that temperatures have reached 100 degrees and that the cell in which Stanford is being housed in a cell with 8 to 10 other men… Continue Reading
FBI Operation “Bid Rig” Nabs 44 Suspects in New Jersey Public Corruption, Illegal Organ Transplant and Designer Merchandise Schemes
Posted in False Claims, Fraud, High Profile Cases, Money LaunderingThe 44 public officials and other persons arrested in the massive sweep on Thursday by the FBI, the result of efforts by the convicted son of a rabbi, include: Daniel Van Pelt, State Assemblyman; Peter Cammarano III, Mayor of Hoboken, New Jersey; Dennis Elwell, Mayor of Secaucus, New Jersey; Anthony Suarez, Mayor of Ridgefield,… Continue Reading
Attorney General Holder’s Remarks on the Organized Crime Drug Enforcement Task Forces (OCDETF) Program
Posted in Drug Enforcement, False Claims, Fraud, Money LaunderingOn Wednesday, U.S. Attorney General Eric Holder addressed the Organized Crime Drug Enforcement Task Forces and Asset Forfeiture Program’s National Leadership Conference. Mr. Holder spoke regarding the Organized Crime Drug Enforcement Task Forces (OCDETF) Program, an inter-agency program established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. OCDETF… Continue Reading
Cap and Trade/H.R. 2454 New Criminal Provision: “Fraud and false statements in connection with regulated allowances” (Proposed Amendment to 18 U.S.C. § 1041)
Posted in Environmental Crimes, False Claims, Fraud, Money LaunderingNew legislation typically means new criminal laws, and the White House’s and Congress’ recent ‘‘American Clean Energy and Security Act of 2009,’’ H.R. 2454, better known as the "Waxman-Markey Bill" or "Cap and Trade Bill," is certainly no exception. The bill is over 1,000 pages long and, for those with copious amounts of time, may… Continue Reading
Sir Allen Stanford Remains in Custody Pending Appeal
Posted in False Claims, Fraud, High Profile Cases, Money LaunderingAs we have noted, the prosecution of wealthy, international financier Sir Robert Allen Stanford has been characterized from the outset by vigorous disputes over bond for Stanford. The prosecution has argued that Stanford poses a risk of flight given his international connections and the potential that he possesses resources hidden overseas. The defense, led by… Continue Reading