Los Angeles Criminal Defense Lawyer Blog

On the heels of a previous pill-mill bust in Los Angeles, federal authorities have made 16 more arrests after raiding pharmacies and alleging a large-scale Medicare fraud scheme, The Associated Press reports.

As the Los Angeles Criminal Defense Lawyer Blog reported recently, federal authorities broke up what they are calling a pill-mill operation where 1 million OxyContin pills were sold for $23 to $27 per pill, and people's identities and Medicare beneficiary information were stolen.

Cases of insurance fraud in Los Angeles can be complex to prove if there is an accused large network of co-conspirators. In cases like this, the prosecution must be able to show that every person accused as part of the alleged conspiracy intended to participate in the illegal action -- from the ringleaders on down.

But charges of insurance fraud can carry serious penalties, whether charged in state court or federal court. Los Angeles criminal defense lawyers are prepared to handle charges of fraud and drug crimes in Los Angeles as these pill-mill investigations continue to pop up.

In this case, Manor Medical Imaging Clinic of Glendale is at the center of the dispute. According to a federal complaint, a doctor there wrote prescriptions for anti-psychotic drugs including Seroquel, Abilify and Zyprexa. They were billed to Medicare and Medi-Cal, but authorities allege the drugs didn't go to the beneficiaries. Instead, they were sold on the black market and sent to San Gabriel Valley, where pharmacists repackaged and resold them.

Authorities allege that some Medicare beneficiaries had their identities stolen, which led to them not being able to get the drugs they needed later on. Targeted in the alleged scam were the homeless, veterans, the poor and the elderly. The main pharmacy alleged in the case is Huntington Pharmacy in San Marino. Court documents state the pharmacy had $45,000 in Medi-Cal claims in 2009, but that spiked to $1.5 million in 2010.

According to the news article, those charged with conspiracy to commit healthcare fraud could face up to 30 years in prison, if convicted.

As prescription drug fraud and insurance fraud has become more and more popular, these investigations have increased as well. That means that there will likely be more indictments, more large-scale "busts" and trials of those charged.

Pharmacists, doctors and others in the medical industry are facing a challenge right now as federal investigators look at everything they do. Even a small mistake could lead to very serious charges. And while it may appear to the public that every person charged is guilty, that's simply not the case. A federal complaint can have big words and be written very convincingly, but until the case gets to trial, these defendants are innocent until proven guilty.

To show that each person was responsible for the fraud is a challenge, as is proving that every person was part of a scheme and not simply doing what bosses instructed them to do. And in many of these cases, one co-defendant may not have ever met or spoken with another co-defendant or know who they were.

What may appear as a well-formed scheme from the outside may not be as connected and intertwined as believed by the government. That's why these defendants require a fair trial to sort out all the facts and with the help of an experienced Los Angeles criminal defense lawyer, they can get that.

Continue reading "Feds Make Arrests In Alleged $18 Million Medicare Fraud in Los Angeles" »

A recent Los Angeles Times article lays out charges filed against 14 people, including an elderly doctor, who allegedly participated in an illegal OxyContin insurance fraud scam.

"Pill mills" and other prescription drug-based crimes are on the rise in the United States as law enforcement has changed its focus from heroin and cocaine level drugs to prescription drugs as buyers and sellers change their preference.

But in the past, the only people charged in drug crimes in Los Angeles were the buyers and sellers and maybe a few distributors.

Today, more and more people are getting wrapped up in Los Angeles insurance fraud cases alleging that they, doctors, pharmacists and others were involved in schemes to not only illegally sell prescription drugs, but to defraud insurance companies at the same time. Los Angeles insurance fraud defense lawyers must be consulted if a situation like this arises.

According to the Times, a two-year investigation revealed that more than a dozen people allegedly participated in the scheme, largely based on insurance fraud.

A federal indictment alleges doctors wrote prescriptions for the painkiller to uninsured patients who didn't need it. The conspirators also got pills from pharmacies by fraudulently billing insurance companies, including the publicly run Medicare.

According to investigators, the pills were resold for $23 to $27 per pill and they sold more than 1 million pills. Identity theft and Medicare beneficiary information theft was also alleged as part of the scam.

Along with clinic operators, two doctors, aged 88 and 73, are accused of participating. Recruiters, pill runners or fake patients are the others accused in connection with the alleged operation. Initially, 10 of the 14 were arrested, while authorities looked for the remaining defendants.

The accused are charged with drug conspiracy or healthcare fraud. One of the clinic operators also is charged with wholesale distribution of OxyContin. The defendants face a maximum of 10 to 40 years in prison.

Insurance fraud is simple in concept, but complex on a case-by-case basis. Insurance fraud in Los Angeles is simply defrauding an insurance company through false pretenses. In situations like these, it means filing claims with insurance companies for drugs that a person doesn't need or setting up claims on behalf of a person whose identity has been stolen.

When drugs are involved, the case can become more complex, because potential drug laws could be broken in the process as well, adding to the possible penalties and attracting more attention from authorities fighting the "War on Drugs."

Insurance fraud in California can be different than federal charges of fraud. The penalties can vary and the elements of the crime are different as well. Being charged in state versus federal court can make a big difference for a defendant in terms of penalties, how the case plays out and how the sentencing is handled.

Continue reading "OxyContin Insurance Fraud Scheme Alleged in Los Angeles" »

Three people recently pleaded not guilty to charges that they conned banks out of about $6 million by pledging properties they didn't own and faking paperwork to support the claims, according to the Los Angeles Daily News.

Federal charges in Los Angeles are among the most difficult to defend, not necessarily because of the facts, but because of the power of the federal government. But Los Angeles Federal Criminal Defense Attorneys regularly challenge cases in federal court on behalf of defendants who are wrongly accused. Everyone deserves a fair trial and a diligent defense that seeks to prove the client innocent.

According to the news story, two brothers and another man were arrested and charged with conspiracy and multiple counts of wire fraud, identity theft and unlawful monetary transactions. These charges amount to a possible 115-year prison sentence, according to the report.

A federal indictment, which isn't any proof of a crime, alleges the men created fraudulent deeds of trust, corporate records and other documents that made it appear they held the title to and owned certain properties.

The indictment also alleges they fabricated documents to create the impression that other loans on the properties had been paid off and that there was sufficient equity in the properties to secure new loans.

Prosecutors allege the men put pressure on lenders to act quickly because funds were needed for less than a month so they could extend a pre-existing escrow and that the money would be returned. But the government contends that after victims wired money, it was sent to off-shore bank accounts.

While the allegations may seem like some to be a slam-dunk case for the government, it's not necessarily so. In order to prove these charges beyond a reasonable doubt, the government will no doubt try to convince one or two of the three accused to enter plea agreements in order to get their testimony.

In cases like this with multiple defendants, the prosecution spends a large amount of the time seeking testimony from people they have charged with a crime in order to secure convictions. Many times, if all defendants keep quiet and don't help prosecutors, they can't secure convictions.

The credibility of a witness whose testimony has been purchased through a plea deal must be attacked and shown to a jury as questionable. Further, the government must have all its ducks in a row regarding financial statements and other business records, which can be a complex process.

While these charges can no doubt be challenged, facing the federal government can be tough because agents have the ability to pick and choose which cases they want to tackle and put the full force of the government behind them. That's why hiring an experienced Los Angeles Criminal Defense Lawyer who has spent years fighting in the federal court system is important. Trust experience and knowledge of the system and an attorney who will fight to protect your rights and work to secure the best possible resolution in your case.

Continue reading "Three Accused of $6 Million Federal Bank Fraud in Los Angeles" »

Bookmaking in Los Angeles may have moved to the relative anonymity of the World Wide Web, but the recent federal crackdown on online poker sites is a reminder that the Internet makes it no less illegal.

Whether its horses or dogs, or sports or cards or dice, the last two decades have seen an explosion of legitimate gambling outside Vegas. However, there remain very few places where sports betting or bookmaking is legal outside Sin City. Online companies operate under ambiguous legality -- often setting up offshore in locations where bookmaking is legal.

A Los Angeles bookmaking defense attorney must be familiar with both local and federal law and must have the knowledge and experience to defend a client against bookmaking charges, whether those charges involve old-fashioned pen and paper or a website located offshore.

Whether bookmaking for sports bets or operating an online gambling site of the type recently shut down by the feds, the penalties for arrest and conviction can be quite severe and typically include the seizure of millions in assets.

As the Los Angeles Times reported, U.S. gambling regulations are confusing, hypocritical and costly. April 15th's 52-page indictment of 11 defendants shut down three major online poker sites. The defendants are charged with bank fraud, money laundering and operating illegal gambling businesses.

Full Tilt Poker, Poker Stars and Absolute Poker were all based overseas. The Times reports authority for the bust comes from the Unlawful Internet Gambling Enforcement Act of 2006, which was slipped into a must-have terrorism bill and rushed through Congress.

A look this week at Full Tilt Poker's website brings the bust home in a hurry. The site is stamped with the logos of the Federal Bureau of Investigation and the U.S. Department of Justice. It notifies visitors that "This Domain Name has been seized by the Federal Bureau of Investigation pursuant to an Arrest Warrant in Rem issued by the United States District Court for the Southern District of New York."

The feds claim the companies got around banking laws by setting up fake online merchants to handle credit card billing from and to players.

Continue reading "Poker Crackdown Illustrates Risk of Illegal Gambling, Bookmaking Charges in Los Angeles" »

A man facing federal fraud charges in Los Angeles has been ordered to live in a shelter after posting $1 million bond, Bloomberg News reported.

Federal defense attorneys in Los Angeles have seen a significant increase in the number of fraud charges being pursued against real estate agents, mortgage brokers, attorneys, investment advisers and other professionals. Federal cases can be particularly serious because of the use of mail fraud and wire fraud charges, which are often easier to prove and carry substantial penalties.

In this case, the 48-year-old defendant, who is accused in a $200 million fraud scheme, was ordered to live in a halfway house after being released from jail by a federal magistrate in Los Angeles. He was place on electronic monitoring and ordered to live at the Volunteers of America shelter.

He is accused, along with two business partners, of 12 felony counts, including securities fraud. They are accused of defrauding about 5,000 investors in Akron-Ohio based Fair Finance Co. out of at least $200 million.

Many of these cases have surfaced since the beginning of the economic downturn. In some instances, the defendants are guilty of nothing more than losing money and/or making bad investments when the real estate or stock market exploded. Neither is a crime.

He had requested permission to leave the halfway house but was returned there after a federal magistrate was dissatisfied with the financial accounting he brought to the court. He was ordered to return to the halfway house for seven days or until he could provide more details.

Continue reading "Man ordered to Stay at Shelter after Facing Federal Fraud Charges in Los Angeles" »

A U.S. Marine captain has been sentenced to six years in prison after pleading guilty to fraud charges involving government contracts in Iraq, Reuters News reported.

A Los Angeles criminal defense lawyer should always be consulted when fraud against the government is alleged. These are typically complex cases and an attorney experienced with handling federal theft crimes in Los Angeles should be consulted at the earliest stage possible.

In this case, the Marine captain, who was assigned to Camp Pendleton in Southern California, was convicted of conspiracy to commit wire fraud and filing a false tax return with the Internal Revenue Service. He was convicted of skimming $1.7 million from government contracts.

Federal conspiracy and wire fraud charges are particularly complex. In most cases, no crime needs to have been committed -- the government must only prove intent. Wire fraud may involve the mail, telephone or electronic forms of communications, such as fax or e-mail.

The defendant's wife also pleaded guilty to a tax offense and faces three years in prison at her sentencing next month. The government contended that the 40-year-old Marine used his position to steer business to an Iraqi contractor.

The government reports the scheme cost the U.S. Department of Defense $1.69 million and the IRS $450,000 in unpaid taxes. Government investigators seized two California properties, two luxury vehicles and $40,000 in cash as part of the investigation.

"The (defendants) defrauded U.S. taxpayers, cheated the Iraqi people and betrayed the trust placed in them," said Stuart Bowen, attorney for the Special Inspector General for Iraq Reconstruction.

Continue reading "Federal mail fraud and conspiracy charges alleged in California military theft case" »

Dozens of alleged gang members were arrested on federal criminal charges in Los Angeles this week, accused of racketeering, murder, drug trafficking and a host of other crimes, the L.A. Times reported.

A federal criminal defense lawyer in Los Angeles will understand the complex nature of representing clients facing charges under the Racketeering Influenced and Corrupt Organizations (RICO) act. Originally designed for the prosecution of organized crime, it has been used against gang members and even white-collar criminals involved in fraud or embezzlement. Such charges give prosecutors wide latitude in proving guilt by association and guilt as part of an ongoing criminal enterprise. It also opens defendants up to seizure and forfeiture of assets and decades behind bars.

More than 800 law enforcement officers targeted alleged members of the 38th Street gang. One of the city's oldest gangs, it is known for its ties to the Mexican Mafia prison gang. Members are also accused of using a 14-year-old girl as a shooter and of impersonating FBI agents.

Thirty-seven defendants were taken into custody on federal indictments. Twenty more were taken into custody on state weapons and drug charges. Eighty-seven alleged gang members were targeted in all. Authorities say they seized 7 kilos of cocaine, a pound of meth, 23 weapons and $250,000 in cash.

Most of the defendants charged with racketeering face life behind bars if convicted.

Continue reading "RICO Charges require Federal Criminal Defense Attorney in Los Angeles" »

Fourteen people are facing federal drug trafficking charges in Los Angeles, according to an L.A. Times report.

Authorities allege the Hollywood-based ring used chartered planes to ship hundreds of pounds of cocaine and millions of dollars between Los Angeles and Baltimore. Fourteen people have been charged with trafficking and money laundering by a federal grand jury.

The investigation, dubbed "Operation Snow Bird," alleges that the defendants shipped 390 kilos of cocaine and over $4 million in cash during one six-week stretch. About 298 kilos of cocaine and just over $1 million was seized as a result of the investigation.

The government contends that members of the ring would fly to Baltimore, oversee the drug sales, and fly suitcases of cash back to Los Angeles. Five of the 14 under indictment are in custody, while the remainder are being sought by authorities.

The alleged leader of the group was identified as Ricky James Brascom, 28, a Woodland Hills resident and chief executive of Behind da Scenes Entertainment. His brother, Jerome Mondale Brascom, 30, of Colorado Springs, Colo., was also indicted. Two others taken into custody were Steven Velazquez, 31, of San Fernando and Alberto Cruzado, 57, of Sylmar. And a fifth person, Leonardo Concepcion, 50, of Downey, allegedly worked as a pilot.

Among those still being sought by authorities is Darrin Ebron, identified as a 43-year-old DJ and clothing designer from Washington, D.C., who allegedly served as a distributor.

Authorities also report the seizure of several luxury vehicles, including Aston Martins, a Mercedes and a BMW. Charges include conspiracy to distribute cocaine, conspiracy to launder money and possession of a firearm in furtherance of a drug trafficking crime, according to the U.S. District Attorney's Office.

Continue reading "Feds charge 14 with cocaine trafficking in alleged ring between Los Angeles and Baltimore" »

Four men are facing federal kidnapping charges in Los Angeles after authorities allege the defendants engaged in a bizarre plot to kidnap an L.A. businessman, FOX News reports.

A Los Angeles federal criminal defense lawyer should always be hired to defend clients facing charges lodged by the federal government. The laws and rules of federal court are different than those of state courts and require specific knowledge, training and experience. In this case, the charges are very serious because the defendant's allegedly planned to commit the crime for $5 million in ransom.

The men, ages 35 to 70, are from Austria, Hungry and Arizona. They are charged in a federal indictment with conspiracy to interfere with commerce by threats and violence, according to the Federal Bureau of Investigation.

One of the defendants is also charged with being a felon alien in possession of guns and ammunition; transfer of a gun for use in a crime of violence; and being in the United States illegally following deportation.

The men allegedly planned to kidnap the owner of a medical marijuana dispensary and several Los Angeles jewelry stores in order to obtain access to a safe in his home which they believed contained $5 million in cash and jewelry.

If convicted, the defendants face prison sentences ranging from 20 to 60 years.

Continue reading "Men facing federal charges in Los Angeles for allegedly plotting to kidnap jewelry store owner for ransom" »

Two doctors are facing criminal charges in Los Angeles after authorities accuse them of a $5 million fraud scam involving mentally ill homeless patients, the Washington Post reported.

The Medicare and Medi-Cal fraud case is the latest in a long string of cases against doctors, home-health care businesses, clinics and others in the medical profession. These cases are frequently complex and can be devastating to the reputation of legitimate doctors and health care workers. Consulting an attorney at the earliest stage of a case -- even before charges are filed, is frequently your best course of action. The fact that the charges were filed as misdemeanors by city prosecutors likely means that state and federal authorities decline to pursue more serious charges. Whether the charges lack merit, we cannot say. But they still carry the possibility of substantial jail time. And the loss of professional reputation is often irreplaceable.

The doctors, ages 58 and 72, were charged along with five others of misdemeanor conspiracy, fraud and taking illegal kickbacks. Each faces up to 7 years in prison if convicted.

City prosecutors allege homeless people were recruited from throughout Los Angeles County. Each patient was given $100 to permit ultrasounds to be conducted and to allow blood to be drawn. The clinic then allegedly charged medical programs up to $1,000 per doctor for between 30 and 50 patients a day from December 2009 until June.

It is the latest patient-recruiting scam to be alleged in Los Angeles. Earlier this month, federal prosecutors charged more than 70 defendants with a scam they say defrauded Medicare of $163 million.

Earlier this year, a doctor was sentenced to 25 years in prison after being convicted of paying homeless people to fill prescriptions in exchange for cash.

Continue reading "Health care fraud allegations best handled by experienced White Collar criminal defense lawyer in Los Angeles" »

A Palos Verdes Estates man is facing charges for allegedly having sex with a 14-year-old girl after posing as a teenager on the Internet, ABC7 reported.

So far, he faces a federal charge in Los Angeles of using the Internet to induce a minor to engage in criminal sexual activity, the Daily Breeze reports. He could also face felony state charges involving sex with a minor, according to the newspaper. Statutory rape charges in Los Angeles can be filed for cases involving sexual intercourse with a teenager age 14 to 18. It can be charged as either a misdemeanor or a felony and is punishable by up to one year in the county jail or up to 4 years in prison.

This is also frequently referred to as unlawful sex with a minor.

Authorities say the 24-year-old defendant used multiple identities on MySpace in the commission of the alleged crimes. The investigation started in August when the Palos Verdes Estates police were told by a relative that a 14-year-old girl had sex with the defendant in her home, according to a complaint filed in U.S. District Court in Los Angeles. The Federal Bureau of Investigation was subsequently called in to assist with the case.

Computer crimes in L.A. and the surrounding area are increasingly common and always require the representation of an experienced criminal defense lawyer. In cases where an officer is posing online as a potential victim, entrapment and other issues frequently arise. In cases involving Internet child pornography, a computer owner is often an unwitting victim. Other users may be responsible for the content. In other cases a computer virus or a third-party may have downloaded or stored illicit content on your computer. Charges involving file-sharing sites are common and child pornographers have been known to store material on the computer of an unsuspecting user.

Continue reading "Federal computer charges in Los Angeles allege man used Internet to find teens for sex " »

Dozens have been arrested in what the federal government is calling the largest Medicare fraud scam in U.S. history, the Associated Press reports.

Seventy-three people have been arrested in New York City, Los Angeles, New Mexico and Ohio and charged with cheating the federal health care program out of $163 million.

The Daily News reports that 10 of the defendants were charged with fraud in Los Angeles as part of a scam to steal $8 million from the taxpayer-funded Medicare program.

Federal authorities continue to crackdown on health care fraud, which they have labeled the nation's most lucrative federal crime. "Health care fraud that targets the Medicare program makes victims of all Americans," said Steven Martinez, assistant director in charge of the FBI's Los Angeles office. "The identity theft of the elderly and the disabled that facilitates many health care schemes is particularly depraved."

The suspects are accused of using the stolen identities of doctors and patients to bill Medicare for services never rendered. Bank accounts were also opened so that Medicare could deposit money.

These cases are incredibly complex and being wrongly accused can have a devastating impact on the reputation of a doctor or legitimate health care facility. While federal authorities have put more emphasis on such cases, they have not always dedicated more manpower and resources. A report by 60 Minutes found that health care fraud was more lucrative than the drug trade in South Florida and yet the federal government had dedicated fewer than 5 investigators to handle the entire southern region of the state.

Anyone facing such charges should consult a Los Angeles federal criminal defense lawyer immediately. Only a defense firm with experience handling financial fraud crimes in federal court should defend clients facing these types of complex charges.

Continue reading "10 charged with fraud in Los Angeles as part of largest Medicare fraud case in U.S. history" »

More than 200 federal criminal cases have been thrown out of court, overturned or otherwise significantly impacted by the misconduct of prosecutors in the last decade, according to an in-depth investigation by USA Today.

And federal prosecutors are supposed to be the elite, the best of the best. Such conduct uncovered at the federal level eludes to a truly horrifying picture at the state and local level.

A Los Angeles federal criminal defense lawyer should always represent anyone facing criminal charges in federal court. The laws are much different in federal court and require an attorney who has the knowledge and experience to protect your rights and help ensure that you are treated fairly by the system.

Since Congress enacted a law aimed at stopping such abuse in 1997, the USA Today uncovered 201 cases in which prosecutors violated laws or ethics rules. In blasting prosecutors for "flagrant" or "outrageous" abuses, judges cited hidden evidence, lying to judge or juries and broken plea bargains as among the most common infractions. In each case, the violations were so serious the judges threw out charges, overturned convictions or rebuked prosecutors for their conduct.

Even high-profile defendants have not been immune. Last year, former Alaskan Sen. Ted Stevens was found guilty in a corruption trial in which the charges were later dismissed because of prosecutor misconduct.

The Justice department would not reveal how many lawyers had been punished, citing privacy concerns. The USAToday investigation found evidence in just 1 case that the attorney was prohibited from practicing law for any length of time.

Continue reading "Study finds prosecutor misconduct a concern; federal criminal defense lawyers in Los Angeles can help protect your rights" »