DOJ News

Justice Department Files Suit Against Pima Community College for Violatnig the Employment Rights of an Arizona Army National Guardsman

Owner and Patient Recruiter Sentenced to Prison for Their Roles in $258.5 Million Medicare Fraud Scheme

Alabama Real Estate Investor Pleads Guilty to Conspiracy to Commit Mail Fraud

Hitachi Metals Ltd. Agrees to Plead Guilty for Fixing Prices and Rigging Bids on Automobile Parts Installed in U.S. Cars

Costa Rica Based Telemarketing Fraud Results in Prison Terms for Two
Dignity Health Agrees to Pay $37 Million to Settle False Claims Act Allegations

North Carolina Man Pleads Guilty to Attempting to Aid International Terrorist Organization

Three Indicted in Stolen Identity Refund Fraud Ring

Alabama Bail Bondsman Sentenced for Stealing Identities that Were Used to File Fraudulent Tax Returns

Former Ohio State Trooper Pleads Guilty to Violating Civil Rights of Several Female Motorists Through Sexual Activity and Cyber Stalking

North Florida Shipyards to Pay $1 Million to Resolve False Claims Allegations

Man Sentenced in Alabama for His Role in Identity Theft Scheme

North Carolina Businessman Sentenced to Prison for Failing to Report More Than $1 Million in Income

USAO-Maryland News

Russian National and Three Others Charged In Kickback Scheme.

Laurel Woman Admits to Stealing Almost $300K in Social Security Benefit Checks.

Former Chief of Baltimore City Division of Transit And Marine Services Indicted for Bribery Scheme.

Maryland Woman Admits To Treating Patients While Fraudulently Posing As A Physician’s Assistant.

News That Fits

Congratulations to the District of Maryland’s newest US District Court Judge!

 

Hazel

Federal Civil Rights

The City Paper has this news story about two men who served a total of 57 years for murders they did not commit.  And now, with the help of Levin & Curlett LLC,  they want those responsible to pay.

 

SEC News

SEC Announces First Deferred Prosecution Agreement With Individual

SEC Charges New York-Based Audit Firm and Four Accountants for Failures in Audits of China-Based Companies

SEC Rewards Whistleblower With $150,000 Payout

US Attorney’s Office, DC–Press Releases

Former Executive Director of Public Charter School Pleads Guilty to Stealing $29,000 in Funds -Defendant Wrote Series of Checks for Personal Benefit -

Former United Medical Center Employee Sentenced To a Year in Prison For Embezzling Over $335,000 in Overtime Pay -Defendant Manipulated Electronic Time-Keeping System -

Virginia Man Pleads Guilty to Weapons Offenses Stemming From July 4th Incident at Freedom Plaza -Defendant Brandished Shotgun in Video Filmed at the Site -

U.S. Consulate Official Pleads Guilty to Receiving More Than $3 Million in Bribes in Exchange for Visas -Scheme Allegedly Generated More Than $9 Million in Bribes -

Former Background Investigator for Federal Government Sentenced to Six Months in Prison For Making a False Statement

Specialty Hospitals of America to Pay United States -$4.2 Million to Resolve False Claims Allegations-

US Attorney’s Office, Maryland–Press Releases

Two Conspirators Sentenced In Baltimore Reservoir Hill Neighborhood Mortgage Fraud Scheme

Administrator Of Silk Road Website And Drug Vendor Plead Guilty To Drug Conspiracy

Cecil County Prescription Drug Dealer Sentenced To Over 8 Years In Prison

School Proctor And Admissions Officer Plead Guilty In Student Financial Aid Fraud Scheme

Potomac Attorney Pleads Guilty To Tax Charges

In The News . . .

The common theme in this morning’s news is alleged misconduct by prosecutors and police:

In a high profile murder case, it appears that prosecutors “forgot” to disclose some Brady material.

In this lawsuit, brought by Chad Curlett of Levin & Curlett LLC, it is alleged that police officers lied in an arrest warrant (shocking!), leading to the arrest of the WRONG MAN.

Rumor Has It . . .

Some exciting news rumors coming out of the US Attorney’s Office in the District of Maryland:

AUSA Stuart Berman, the Greenbelt Branch Chief, is retiring after many successful years of government service.  It is expected that Stuart will be joining a small law firm in the mid-Atlantic region.

AUSA Peter Nothstein has been detailed to the Senate Judiciary Committee for six months.  Peter just recently received an annual award for excellence in prosecuting violent crime.  See below.

AUSA Mark Crooks doesn’t just prosecute alleged criminals; he chases them too.

And let’s not forget these AUSAs, following the break: Continue reading

On This Day . . .

Felix Unger was asked to remove himself from his place of residence.  That request came from his wife.

Happy Felix Unger Day from your friends at Levin & Curlett LLC, who vigorously defend those who are also asked to remove themselves from their homes (often by the feds).

Department of Justice News

Earlier today, an Indictment was unsealed and “wanted” posters were issued for fugitives charged with multimillion dollar international cyber fraud scheme.

The posters looked nothing like this:

 

PSZ_PPAPVP1036_main

Welcome to Miami:  Two men from Miami have pleaded guilty to laundering millions of dollars obtained through a $10.5 million Medicare fraud scheme using shell companies they controlled.

Department of Justice News

In Memoriam

Is it too soon to announce the death of laws criminalizing marijuana?

According to this research, 58% of Americans favor legalizing marijuana.

An Appeal to Remember

The Fourth Amendment is alive and well.  The 3rd Circuit Court of Appeals in Philadelphia has ruled here that the government needs a warrant for GPS tracking.

US Attorney (Maryland) News

Frederick Business Man Pleads Guilty To Illicitly Selling Drug Paraphernalia And Tax Fraud

Former State Social Service Supervisor Sentenced To 33 Months In Prison In Bank Fraud Scheme

Baltimore Car Dealer Owner Sentenced To 30 Months For Structuring Deposits Of Over $2 Million To Evade Bank Reporting Requirements

DOJ News

SEC News

 

SEC Announces Fraud Charges Against Collateral Manager Of CDO
SEC Halts Pyramid Scheme Targeting Asian-American Community
SEC Charges Knight Capital With Violations of Market Access Rule
Previously Unknown Insider Traders in Heinz Agree to $5 Million Settlement

 

US Attorney (Maryland) News

Former State Social Service Supervisor Sentenced To 33 Months In Prison In Bank Fraud Scheme

Baltimore Car Dealer Owner Sentenced To 30 Months For Structuring Deposits Of Over $2 Million To Evade Bank Reporting Requirements

Four Conspirators Charged With Using Medical Patients’ Identities To Steal Over $750,000 Of Merchandise

Title Company Manager Pleads Guilty In $4.8 Million Mortgage Fraud Scheme

Armed Robber Exiled To 25 Years In Prison

Steve’s Fresh Perspective

The Proffer Letter:

The First Landmine in Federal Criminal Defense Practice

 

Assistant United States Attorneys (AUSAs) often take the position that a proffer letter, or a “Queen for a Day” agreement, is intended to protect a defendant who ultimately chooses not to cooperate with the government.   Stated another way, as the Seventh Circuit Court of Appeals did in United States v. Threw, 861 F.2d 1046 (7th Cir. 1988), “the purpose of [a proffer letter], according to the government, is to ensure that in the event a cooperating defendant decides not to plead guilty, any information he may have ‘proffered’ to the government cannot later be used against him at trial” or sentencing, with some exceptions.  It is those exceptions that call into question a proffer letter’s true purpose.  In my view, the purpose of a proffer letter, from the government’s perspective, is to ensure that a defendant pleads guilty, because if he goes to trial after proffering, he is going to sentencing as well.

A typical two-page proffer letter in the District of Maryland contains the following language (liberally summarized): Continue reading

Whistle While You Work

To read more about fraud, check out this New York Times article on The Civil War’s War on Fraud.

To read more about the FCPA, check out this article entitled Private Equity: blindsided by the FCPA–hedging against anti-corruption.

Finally, the Lincoln Law just turned 150 years old.

US Attorney’s Office News

USAO-MD:  Parkville, Maryland man indicted in plot to export industrial products and services to Iran;

USAO-MD:  Leader in sophisticated bank fraud sentenced to 7 years;

An Appeal To Remember

In US  ex rel. Noah Nathan v. Takeda Pharmaceuticals, Relator, a sales manager for Takeda, brought a qui tam action against his employer under the False Claims Act, 31 U.S.C. 3729-3733, alleging that Takeda violated the Act by causing false claims to be presented to the government for payment under Medicare and other federal health insurance programs. Continue reading

USAO-MD News

A Note From the Doctor Won’t Help This Government Employee, Sentenced for Scheme to Defraud Federal Voluntary Leave Transfer Program She Administered–she created false doctor notes to take paid time off donated by other employees

You’ve got to love the alliteration of this press release:  Four-Time Fraudster Sentenced to 44 Months. 

What is it that they say about the family that schemes together?  Here’s what the US Attorney’s Office has to say:  Frederick Couple PLEAD GUILTY to Fraudently Obtaining Over $700,000 in Advanced Fees. 

So much for the security in the Social Security Administration: SSA RETIREE PLEADS GUILTY TO EMBEZZLING OVER $400,000 AND TO TAX EVASION.

Whistle While You Work

SEC Receives More Than 3,000 Whistleblower Tips in FY2012

Listen to the soothing voice of CNN’s Libby Lewis here as she reports on “Blowing the Whistle on Wall Street:”   http://cnnradio.cnn.com/2012/11/15/blowing-the-whistle-on-wall-street/

And read the SEC’s press release here:

Washington, D.C., Nov. 15, 2012 — Over the past year, the Securities and Exchange Commission received more than 3,000 whistleblower tips from all 50 states and from 49 countries, according to the agency’s 2012 Annual Report on the Dodd-Frank Whistleblower Program released today. Continue reading

Go “D”!

Judge Motz is willing to do the right thing,  to include correcting an error made at trial.  In this post-verdict Order, Judge Motz granted in part a motion for acquittal based on drug weight:

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF MARYLAND

UNITED STATES OF AMERICA                   *

*

*

v.                                                                           *              Criminal No. – JFM-11-003

*

WAYNE LAMPKIN, JR.                               *

*

******

MEMORANDUM

Defendant has filed a motion for new trial or judgment of acquittal. The motion will be granted in part and denied in part. Continue reading

Press Releases

USAO-MD:  Morgan State University Professor Indicted in Scheme to Defraud the National Science Foundation.  

 USAO-MD:  Labor Union PAC Fund Manager Indicted for Embezzling  not $500,000, but $502,586.

USAO-MD:  Ringleader and Girlfriend Plead Guilty in Identity Theft  Fraud  Scheme Involving Not 254 Individual Victims, but Over 250.  

USAO-EDVA:  Mental Health Service Provider Sentenced to 48 Months for Conspiracy to Commit Health Care Fraud.

DoJ News

The Justice Department’s Bureau of Justice Statistics has issued this new report on pretrial release in the federal system.  

Here is the accompanying press release:

From 2008 to 2010, federal district courts released more than a third (36 percent) of defendants prior to case disposition, according to a study released today by the Justice Department’s Bureau of Justice Statistics (BJS). Nearly two-thirds (66 percent) of released defendants were released at their initial appearance hearing, while the rest were released at subsequent events including detention or bond hearings. Continue reading

On This Day . . .

David Petraeus take note:  On November 13th, Felix Unger was asked to remove himself from his place of residence.  That request came from his wife.

Happy Felix Unger Day from your friends at Levin & Curlett LLC.

Steve’s Fresh Perspective

A Victory for Discretion

In 2004, the then-US Attorney for the District of Maryland famously wrote in a leaked email that he wanted three front-page indictments by November of that year. Though open to interpretation, the impression left by the poorly-drafted missive is that prosecutors should seek headlines rather than justice. Let’s give credit to the prosecutors involved in the Petraeus/ Broadwell affair, er, matter for their exercise of sound discretion. Continue reading

USAO-MD News

News from the US Attorney’s Office for the District of Maryland:

BARRY LANDAU CONSPIRATOR SENTENCED TO PRISON IN SCHEME
TO STEAL VALUABLE HISTORICAL DOCUMENTS:  Original Documents of Abraham Lincoln, George Washington, John Adams, Stephanie Gallagher, Franklin Roosevelt, and Others Stolen from Historical Societies and Museums.

SILVER SPRING MAN SENTENCED TO OVER 6 YEARS IN PRISON IN CREDIT CARD FRAUD SCHEME.

DOJ News

News from the US Attorney’s Office in the District of Columbia:

Couple Indicted For Wire Fraud and Other Charges In Scheme to Steal Grant Funds Intended for Charitable Youth Boxing Program
-Defendants Allegedly Used Money for Gambling, Other Personal Expenses-

Maryland Woman Sentenced to 75 Months in Prison For Defrauding D.C. Medicaid Program By Submitting Over $7 Million in Phony Claims
- Defendant Billed Some Patients For More Than 24 Hours of Therapy In A Single Day

USAO-MD News

News from the US Attorney’s Office in the District of Maryland:

Convicted Fraudster Pleads Guilty in Scheme to Buy Merchandise Using Stolen Identifying Information of Others to Open Instant Credit Accounts.

Title Agent Sentenced to 2 Years in Prison for Stealing Over $694,000 from Mortgage Escrows.

USAO-MD News

SECOND CONSPIRATOR SENTENCED IN SCHEME TO FRAUDULENTLY OBTAIN OVER $1.399 MILLION FROM BALTIMORE HOUSING AUTHORITY ACCOUNT

 BALTIMORE TAX EVADER SENTENCED TO PRISON

 

 

Whistle While You Work

Pfizer discloses $491M charge for Rapamune marketing settlement : http://www.fiercepharma.com/story/pfizer-discloses-491m-charge-rapamune-marketing-settlement/2012-11-01

Here is the complaint:  http://www.scribd.com/doc/31948038/PfizerWyeth

Whistle While You Work

United States Sues Virginia-based Contractor for False Claims Under Contract for Security in Iraq, alleging that it had billed the US for security guards who did not meet contract requirement.
 
Listen here for CNN’s Libby Lewis’ radio report regarding a whistleblower’s war against fraud. 
 
Taxpayers Against Fraud has named Allen Jones the 2012 Whistleblower of the Year.  Keen readers will note that Mr. Jones was represented by Waters and Kraus, a firm which recently partnered with Levin & Curlett LLC (nee Levin & Gallagher LLC) in the recent Novo Nordisk whistleblower case.

An Appeal to Remember

In United States v. Bennett, the Fourth Circuit held that Tapia v. United States, a case in which the US Supreme Court held that a federal court cannot give a criminal defendant a longer sentence to promote rehabilitation, applies to revocation proceedings.  Here’s what Amy Winehouse had to say about that.

SEC News

2012-217 Oct. 26, 2012 SEC Charges Denver-Based Insurance Executive with Insider Trading
2012-216 Oct. 26, 2012 SEC Charges Silicon Valley Executive for Role in Galleon Insider Trading Scheme
2012-215 Oct. 22, 2012 SEC Adopts Standards for Risk Management and Operations of Clearing Agencies
2012-214 Oct. 19, 2012 More Than 1,500 Private Fund Advisers Registered With the SEC Since Passage of the Financial Reform Law
2012-213 Oct. 18, 2012 SEC Charges Trio in “.44 Magnum” Investment Scheme
2012-212 Oct. 18, 2012 Hong Kong Firm to Pay $14 Million to Settle Insider Trading Charges
2012-211 Oct. 17, 2012 Andrew Calamari Named Director of New York Regional Office
2012-210 Oct. 17, 2012 SEC Proposes Rules for Security-Based Swap Dealers and Major Security-Based Swap Participants
2012-209 Oct. 17, 2012 SEC Charges Hedge Fund Adviser and Two Executives With Fraud in Continuing Probe of Suspicious Fund Performance

DoJ News

Former State Department Employee Pleads Guilty To Federal Charge in Identity Theft Scam
-Got Access to Information While in a Student Work Program-

USAO-MD News

 10/25/12 Conspirator in Bank Fraud Scheme Sentenced to Over 3 Years in Prison
10/25/12 Bank Vice President Pleads Guilty to Embezzling over $600,000
10/25/12 Boehringer Ingelheim Pharmaceuticals, Inc. to Pay $95 Million to Resolve Off-label Promotion and Kickback Allegations
10/25/12 Pennsylvania Man Pleads Guilty to Receipt of Child Pornography for Secretly Recording Boys in Maryland Restrooms
10/25/12 Bladensburg Armed Career Criminal Exiled to 15 Years in Prison for Possessing a Gun
10/24/12 Employee Pleads Guilty to Stealing from Non-profit Organization and up to 72 of its Disabled Clients
10/23/12 Former Employee of Federal Court Contractor Indicted for Bribery, Witness Tampering and Perjury in Federal Grand Jury
10/19/12 Silver Spring Man Sentenced to 10 Months in Prison for Failing to Register as a Sex Offender
10/18/12 New York Drug Dealer Sentenced to 8 Years in Prison

DoJ News

Alleged Trafficker of Counterfeit Automotive Accessories Indicted in Virginia.

Miami Area Assisted Living Facility Owners Plead Guilty for Roles in $63 Million Fraud Scheme.

Forced Waiver of the Corporate Attorney-Client Privilege,” Corporate Counsel, Oct. 25, 2012.

Rajaratnam Appeal Judges Voice Concern Over U.S. Wiretaps,” Bloomberg, Oct. 25, 2012.  [Related Story]

Bank of America Faces Claim of ‘Brazen’ Mortgage Fraud,” New York Law Journal, Oct. 25, 2012.

Antibribery Track Record: Republicans vs. Democrats,” Corporate Counsel, Oct. 24, 2012. [Related Story]

 “Business Groups File Challenge to SEC Conflict Minerals Rule,” Corporate Counsel, Oct. 24, 2012.

 “Assistant Attorney General Lanny Breuer On … ,” FCPA Professor,” Oct. 24, 2012.  [Breuer’s Remarks in html and pdf]

 Also, attached please find a PDF file of the following recently released paper:

 Ryan M. Rodenberg and Anastasios Kaburakis, Legal and Corruption Issues in Sports Gambling (Oct. 2012)

 

 

 

DoJ News

Former CIA Officer John Kiriakou Charged with Disclosing Covert Officer’s Identity and Other Classified Information to Journalists and Lying to CIA’s Publications Review Board.

Here is the criminal complaint.

News That Fits

SEC: The Securities and Exchange Commission today charged former bank executives with misleading investors about mounting loan losses at San Francisco-based United Commercial Bank during the height of the financial crisis in 2008 and 2009.

Press Releases

A mortgage broker and loan officer conspired together in a fraudulent mortgage rescue scheme.  Ultimately, the scheme resulted in a loss of over $1.2 million to homeowners in financial distress.

DOJ News

Main Justice: The DOJ Fraud Section is the last holdout in reaching a settlement on allegations investigated by four separate government agencies.

News That Fits

SEC: The staff of the Securities and Exchange Commission today issued a report summarizing the staff’s observations and concerns arising from the examinations of ten credit rating agencies registered with the SEC as Nationally Recognized Statistical Rating Organizations (“NRSROs”) and subject to Commission oversight.

Press Releases

USAO-MD: Silver Spring, MD man convicted of one count of conspiracy to commit bank fraud; two counts of bank fraud; and two counts of aggravated identity theft.  He, along with other co-conspirators, posed as bank customers, requesting addresses to be changed to those controlled by members of the scheme.  The conspiracy involved over 20 individual victims and multiple financial institutions. The compromised accounts contained over $1 million in available funds.

News That Fits

The office of the first-ever inspector general of the Federal Housing Finance Agency, Steve Linick, has released a report heavily criticizing FHFA managers’ approval of a dubious Bank of America mortgage deal with Freddie Mac in 2010.  Linick’s office asserted that the deal may have cost taxpayers billions of dollars.

News That Fits

SEC Counsel criticized for conflict on interest regarding the distribution of SIPC funds relating to the Bernard Madoff case.

Press Releases

A couple from Edgewood, Maryland teamed up from September 2004 through August 2010 to obtain fraudulent loans from credit unions.  The co-conspirators were sentenced to jail for bank fraud conspiracy.

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