Los Angeles Criminal Defense Attorney Blog

Blogs and local media outlets dedicated to covering breaking news about Southern California white collar crime have been lighting up over a huge Medicare scam bust sprung the Friday before last. CBS and the AP report that, on Friday July 16th, Federal authorities took down 94 people in conjunction with over $250 million worth of Medicare fraud in five states.

This constituted the largest bust of its kind in history.

Suspects were arrested in Baton Rouge, Houston, New York, Detroit, and Miami for doing things like billing Medicare for physical therapy, medications, and treatments that never took place; purchasing phantom equipment; and engaging in elaborate cover up activities. The largest scam took place at the Bay Medical Clinic in Brookline, where authorities contend that the operators of the fraud ring stole $72 million from Medicare by submitting false claims on behalf of senior Russian immigrants. Over 3,700 claims got filed under the name of one elderly woman alone, and many patients literally sold their Medicare numbers to make extra money. At Bay Medical, authorities alleged a room had been set up replete with Soviet Union style propaganda, including a Lenin era poster that warned in Russian “be on the lookout: in these days the walls talk.”

Los Angeles healthcare fraud is a very serious crime – and clearly the government is making a concerted effort all across the country (including Southern California) to catch white collar criminals – particularly now that President Obama’s Affordable Care Act provides officials with extra powers to stop and punish suspected providers.

A variety of laws may be applicable in health care fraud cases, including Penal Code Section 550, Industrial Code Section 1871.4, Penal Code Section 118, Labor Code Section 3700… and that’s just the beginning, actually.

What constitutes Los Angeles healthcare fraud? Anything from double billing to providing unnecessary procedures to subjecting patients to unnecessary testing to falsifying patient records to billing insurers or Medicare for care that never got provided.

Defending against charges of Los Angeles insurance fraud can require serious legal legerdemain. Although a Southern California white collar crime attorney can help you put up a stiff and robust defense, you need to provide him or her with good information and potentially be prepared for a long and drawn out battle – especially if you face serious, complex charges.

Fortunately, attorney Michael Kraut of the Kraut Law Group can establish a powerful strategically-focused defense. Attorney Kraut is not your average Los Angeles white collar crime attorney – he is a Harvard Law School educated former prosecutor who has appeared as a legal expert for the Los Angeles Times and has been featured on NBC Nightly News, CBS Evening News, and CNN.

Last February, the Orange County DA’s office announced that a dozen individuals had been arrested for Southern California medical insurance fraud in conjunction with an elaborate undercover operation. The latest defendant to be sentenced was Florin Catinas, a 36-year-old chiropractor. After pleading guilty to a felony charge, Catinas received a 60-day jail sentence, more than $4,000 in forced restitution, and three years probation. Catinas could have faced more serious penalties, had he not chosen to testify against a co-defendant, David Gonzalez, in exchange for getting five other felony charges dropped.

Gonzalez himself actually got acquitted of Southern California white collar crime charges back in June -- at least on three felony counts. (The jury did not come to a verdict on three other counts, and the prosecution is currently seeking a retrial to try to get Gonzalez on charges of Southern California insurance fraud, grand theft, and unlawful referral of clients.)

The undercover operation involved serious complexity. Investigators created a fake lawyer’s office and sent out letters to chiropractors, doctors, and other providers whom they suspected to be involved in illegal billing schemes. The letter suggested that the lawyer’s office would send referrals to the medical providers in exchange for a 30% commission or kickback – an obviously illegal offer. Out of the dozen people tagged in the operation, only one has been acquitted thus far.

Let's delve into the specific laws that focus on Southern California healthcare fraud.

Most Los Angeles medical fraud cases can be charged pursuant to Penal Code Section 550 and Insurance Code Section 1871.4. If the provider employs other people, he or she could also be charged pursuant to Labor Code Section 37100. If the provider made a claim to an insurer based on a false statement, the defendant can also face a perjury charge for violating Penal Code Section 118.

Some actions that would constitute healthcare fraud include double billing, creating false medical records, asking for unnecessary patient tests, billing insurers for care that was never delivered, and prescribing meds or doing procedures that were unnecessary.

If you or a loved one or a co-worker faces similar charges of Southern California white collar crime, credit card fraud, or insurance fraud, odds are that you are confused, frustrated, and scared. To develop a strategic and smartly focused defense, you almost certainly need an experienced and tested legal representative in your corner.

Continue reading "Southern California Medical Insurance Fraud Operation Nets 10 Convictions" »

As if the Great State of Louisiana didn't have enough to worry about – Southern California medical insurance fraud blogs have been chasing after a wild story out of Cajun Country, in which an administrative assistant at a chiropractic clinic allegedly pilfered over $77,000 from her employer in an elaborate scam that lasted over three years.

The Dirty Details

Louisiana State Troopers arrested Juanita S. Boyd last week following a five-month investigation into her alleged criminal activities. Ms. Boyd worked as an assistant at a Baton Rouge chiropractic clinic called Advanced Chiropractic. Somehow, she managed to work out an arrangement with a local personal injury attorney named Kevin Hanchey, who referred his clients to Advanced Chiropractic for medical treatment. From 2007 to 2009, Hanchey sent over multiple clients and wrote 39 checks to Ms. Boyd (directly, as opposed to the clinic itself). She allegedly cashed the checks and kept the money for herself – a total of over $77,000, which should have rightfully gone to her boss, Dr. Doyle Johnson.

If you stand accused of white collar crimes – particularly insurance fraud in Southern California – what kinds of charges might you face? The answers depend on the circumstances of what you did. Insurance Code Section 1871.4 is a catch-all for Los Angeles healthcare fraud cases. You might face charges under Penal Code Section 550. If you made a false charge, you could face perjury charges on top of everything else under Penal Code Section 118. And Labor Code Section 37100 might also apply, if you are an employer who committed healthcare fraud.

More generally, Los Angeles insurance fraud is covered under California Insurance Code Section 187. Other types of fraud can be covered under different sections. For instance, auto insurance fraud is covered under Section 1872.8. Depending on the nature of the charge, you could be hit with either a misdemeanor or felony.

As you can see, the legal wrangling over Southern California white collar crime charges can get quite intense and complicated – even if the charges themselves at first appear straightforward. To put up a stiff defense, you want an attorney who has both experience and success dealing with similar situations.

Continue reading "Southern California Medical Insurance Fraud Blogs Zero In On Crazy Case Out of Louisiana" »

Individuals contemplating committing Southern California medical insurance fraud should be on notice: the government is cracking down. Last June, the Feds initiated a multi-state bust-up of healthcare fraud operations that allegedly bilked the system out of $50 million, collectively. Two of the biggest alleged offenders – Bernice Brown and Daniel Smorynski – got convicted last week in US District Court of a fraud scheme that bilked Medicare out of more than $6.5 million.

Below are the details about the case:

Between October 2002 and January 2007, Brown (who owned a Michigan-based business called Wayne County Therapeutic) and her Vice President, Smorynski, drafted bogus files to bill Medicare for occupational and physical therapies they never actually performed. All told, they submitted $23.2 million worth of claims to Medicare. The courts came down harshly on both of them. Brown got convicted of 10 counts of healthcare fraud and one count of conspiracy to commit fraud – each of these 11 charges has a maximum penalty of $250,000 in fines and 10 years in jail.

Smorynski, for his part, was found guilty of six counts of healthcare fraud and one count of conspiracy. Clearly, the government is taking these medical fraud cases very seriously.

If you have been charged with Los Angeles healthcare fraud, mostly likely, you will be charged pursuant to a special code, called Insurance Code Section 1871.4. On top of that, you may face charges under Penal Code Section 550. If you’ve made a false statement to prosecutors, you could face charges under Penal Code Section 118. In certain cases, if you are an employer, you may also be found in violation of yet another section, Labor Code Section 3700.

The following activities could be construed as Southern California healthcare fraud: falsifying medical documents, double billing, giving unnecessary procedures or tests to patients, and billing carriers or Medicare for services not provided (like Brown and Smorynski did).

As even this brief (and oversimplified!) introduction to Los Angeles healthcare fraud suggests, these legal charges can get incredibly complicated. If you or a loved one stands accused of a similar charge, you could face catastrophic financial fallout as well as a long prison sentence, if you don’t put up a stiff defense. To that end, you likely want an attorney who has lots of experience and proven success with Southern California white collar crimes.

Michael Kraut of the Kraut Law Group in Los Angeles is a proven, highly respected, and well trained advocate for Southern California white collar criminal defendants. Attorney Kraut spent years serving the city as a prosecutor before switching to become a defense attorney. He knows how prosecutors typically operate, and he can use his knowledge and intuition of the process to deliver an exemplary defense.

On June 7, a Riverside, California man named Rene Montes entered a guilty plea for dozens of counts of Southern California insurance fraud. The California Department of Insurance reported that Montes pled guilty to felony conspiracy, three counts of felony tax evasion, 59 counts of felony insurance fraud and 59 grand theft felony counts. Sentencing has been set for the end of July. Montes allegedly bilked insurance companies out of $1.5 million by perpetrating a scam to collect funds from AIG Claim Services with respect to outstanding workers’ compensation medical liens.

According to reports, Montes perpetrated the scam from around August 2003 through January 2006. Three other people have also been charged in connection with this Southern California insurance fraud: 47-year-old Cara Cruz-Thomson, 46-year-old Hector Porrata, and 43-year-old George Martinez. The three co-defendants were sentenced in the beginning of May for their connection with the scam. Porrata pled guilty to 50 counts each of grand theft felony and felony insurance fraud as well one felony count of conspiracy. The court ordered him to pay out $1.2 million and serve an 8-year prison sentence. Cruz-Thomson pled guilty to 11 counts each of grand theft and insurance fraud as well as a conspiracy count. She received a two-year prison sentence and an order to pay more than $220,000 in restitution. Martinez also pled guilty to 11 counts of grand theft and insurance fraud as well as a count of conspiracy. He also got a two-year prison sentence and an order to pay around $300,000 in restitution.

The Orange County District Attorney’s office and California Department of Insurance worked together for months to unpack all the subtleties of this Southern California white collar crime.

If you or a loved one faces similar charges, you’ll likely need an attorney who has experience and facility with complex civil and criminal matters to develop a winning strategy.

Attorney Michael Kraut of the Kraut Law Group in Los Angeles has ample experience with Southern California white collar crimes. In his former career as a senior Deputy District Attorney for Los Angeles, he boasted a 98% success rate at jury trials. He is Harvard Law School educated, and he leverages his connections from his stint as a prosecutor to advocate for the best interest of his clients.

The charges you face are real. Get real about your defense by connecting today with Attorney Kraut to build your best defense.

On Friday June 4th, a grand jury indicted Dr. Dipak Desai on 28 criminal counts – from racketeering to insurance fraud – prompting those who follow stories of Southern California medical insurance fraud to vigorous debate the potential fallout.

Dr. Desai – who was charged along with two of his former employees, Ronald Lakeman and Keith Mathahs – allegedly accidently infected over 100 patients with Hepatitis C at his Endoscopy Center of Southern Nevada from March 2004 through January 2008. Patients at his center allegedly got infected because nurses reused syringes. An astounding 50,000 patients in total might have been exposed to HIV and Hepatitis B in addition to Hepatitis C.

Felony counts against Desai include criminal neglect of patients, medical insurance fraud, obtaining money under false pretences, and racketeering. Desai is in the midst of a filing for Chapter 11 bankruptcy, and representatives for plaintiffs have whalloped the embattled physician (former physician actually, since his license was stripped earlier this year) with a slate of malpractice suits. Attorneys said that the insurance coverage “will be grossly and totally inadequate to satisfy the damage claims of plaintiffs.”

Two companies linked with Desai’s clinic – Baxter Healthcare Corp and TEVA Parenteral Medicines – may have to play a collective judgment worth $500 million in damages – the most ever awarded in Nevada.

If you or a loved one faces charges of Southern California medical insurance fraud or any other kind of white collar crime, chances are that others will leap to judgment without knowing all the facts. You could quickly find yourself without allies, recourse, or knowledge about what to do. It can be very scary to face these kinds of serious charges.

Southern California healthcare fraud is subject to punishment under Insurance Code Section 1871.4 as well as Penal Code Section 550. You might also face charges under Labor Code Section 3700 and Penal Code Section 118. Southern California healthcare fraud charges can be diverse and can include accusations of doing unnecessary medical procedures, falsifying or changing medical records, billing insurers for services not provided, prescribing medications that aren’t needed, and urging patients to undergo tests that are not unnecessary.

The sophisticated nature of Southern California white collar criminal charges almost necessitates that you retain a top caliber criminal defense attorney to protect you and your rights. But whom can you trust?

Consider talking to Attorney Michael Kraut of the Kraut Law Group. As a former Los Angeles prosecutor and a Harvard Law School trained trial lawyer with a 98% success rate jury trials, Attorney Kraut can answer your questions and work with you to develop a thorough and strategically sound defense against Los Angeles healthcare insurance fraud charges.

On May 7th, an L.A. Superior Court Judge ordered local businessman Joseph Baiden to pay over $1.3 million in restitution for committing Southern California insurance fraud. According to a KPCC news story, Baiden had illegally underreported his workers comp pay roll in conjunction with a company called Nurse Connection Inc. He also failed to pay insurance premiums for workers comp. Initially, Baiden had been ordered to spend five years in prison, but Judge Horowitz agreed to allow the 57-year-old Diamond Bar resident to have five years supervised probation, including 90-days of electronic monitoring. In addition, Baiden will have to pay over $100,000 in investigative fees to the California Department of Insurance.

Moving forward, as a result of pleading guilty to Southern California workers comp fraud, Baiden must submit his tax returns to both the DA’s office and the Department of Insurance and offer clear proof both that he has workers comp insurance and that he is in complete compliance with his payment obligations. Baiden will return to court on November 8th to submit a progress report.

Los Angeles insurance fraud charges can be complicated to understand and difficult to fight. Different laws cover different kinds of Southern California insurance fraud. For instance, Penal Code Section S550(a)(5) defines medical insurance fraud; whereas California Insurance code Section 1872.8 spells out the definition of Auto Insurance fraud.

If you or a loved one is being investigated for any kind of Southern California fraud – from life insurance to medical insurance to auto fraud – odds are that you need a reliable, trustworthy, and trial-proven attorney to see you through the difficult legal proceedings ahead.

Continue reading "Businessman Ordered to Pay $1.3 Million in Southern California Insurance Fraud Case" »

Last Wednesday, a Federal Judge gave a Pennsylvania doctor, John Kristofic, a year and a day in prison pursuant to a healthcare scam that lasted from 2003 to 2008. Southern California healthcare fraud experts have been poring over Judge Ambrose’s decision to determine whether and how the decision might be impact local cases.

The perplexing saga of Dr. Kristofic

The 62-year-old Dr. Kristofic (of Shadyside, PA) has a long and tumultuous history with the law. Back in the 1980s, he was brought up on charges under the Racketeer Influence and Corrupt Organizations Act of stealing more than a $1 million by billing for non-medically necessary tests. He allegedly invested the proceeds of this scam into private commercial real estate. The doctor settled that case for $0.75 million. He was later arrested and convicted of driving under the influence, AND he got probation for lying about his asset portfolio in 1991.

His latest arrest pertains to similar charges. From 2003 to 2008, Dr. Kristofic allegedly unfairly billed Medicare and other private insurers for services he never provided to his patients. Many Southern California healthcare fraud experts -- at this point reading about Dr. Kristofic’s bio --would feel pretty confident that his repeated chronic violations of the law should merit a harsh sentence.

But… the story thickens.

It turns out that Dr. Kristofic has another side -- an altruistic and giving one. Among other things, he provided free medical care for organizations like Operations Safety Net, Alcoholics Anonymous, and Catholic Charities. In a 2006 trip to Haiti, he gave out free care to the sick, an act which a local Reverend said “exuded a sense of compassion… it was extraordinary.” And Judge Ambrose received 60+ letters from various people and organizations commending Dr. Kristofic for his charity and extraordinary givingness.

As you can see, cases of Southern California insurance fraud can be a lot more complicated than they first appear in the headlines.

If you or a family member has been charged with healthcare fraud or any other white collar crime in Southern California, consider protecting yourself by retaining high quality legal counsel.

Continue reading "Southern California Healthcare Fraud Experts Scratch Heads over Double-Edged Decision in Pennsylvania Case" »

According to the AP, Los Angeles authorities have arrested and indicted 20 people for Los Angeles health care fraud over the past two weeks. The suspects allegedly scammed the Medicare program out of $26 million. The strike force that conducted the operation has been working since 2007 to combat criminal organizations that steal literally billions of dollars every year from the coffers of Medicare and Medicaid. All told, 331 people have been indicted in a series of 4 separate sweeps since 2007.

A Los Angeles white collar crime attorney will likely be assigned to help the defendants develop a strategy. A Justice Department official said the accused may have been active members in a criminal gang. One defendant, 30-year-old Michael Martinez, allegedly recruited friends and relatives to help with the scheme, which involved purchasing wheelchairs for people who didn't exist or who had already died. They also billed for hospital beds that no one needed or used.

If you're convicted of health care fraud or white collar crime in Los Angeles, penalties can be swift and can include a jail sentence, forced restitution to victims, and other fines. Many suspects make ill-advised statements to authorities that can compromise or even cripple their chances at an adequate defense. To develop a solid strategy often requires combing through reams of paperwork and potentially challenging the government investigation on technical points. In cases of Medicaid fraud in Southern California, defendants may not have much margin for error. Presidential Obama's Justice Department and Attorney General Holder have both publicly committed to reining in Medicare and Medicaid fraud and making examples out of those arrested to deter gang members and other organized criminal elements from further defrauding government entitlement programs.

Continue reading "20 Suspects Arrested for Los Angeles Health Care Fraud: Allegedly Bilked Medicare of $26 million" »

The Los Angeles Police Department is spearheading the investigation into the pop star's death. Recent leaks in the investigation have pointed into the direction of repeated overdosing of Michael Jackson by his many close physicians. However, the focus of the investigation seems to be pointing to Jackson's personal physician, Dr. Conrad Murry.

On Wednesday, July 21, 2009, The Drug Enforcement Administration raided Dr. Murry's Houston office. Armed with a search warrant, they entered the office and took numerous items. Accompanying the DEA were Los Angeles Police Department detectives assigned to the Jackson Investigation. Murry was with the singer at the time of his death.

Because of the scope and extensiveness of the Los Angeles investigation, it would be wise for Dr. Murry, or any other medical professional to immediately contact a Los Angeles Pre-filing criminal Defense Attorney. The skills of a former Los Angeles criminal prosecutor can be very helpful to anyone under investigation. Los Angeles criminal defense attorneys who are former prosecutors often have conducted similar investigations and know how best to protect the suspect from further harm.

Continue reading "Michael Jackson's Doctor Has Office Raided After LAPD Asks For Los Angeles Search Warrant" »

The Federal authorities and Los Angeles law enforcement are combing through vast amounts of evidence to ascertain whether there was Los Angeles Medical Fraud and Holmby Hills white-collar fraud in the death of singer Michael Jackson. Investigators have been looking at a total of five doctors who were writing prescriptions for the famous singer, some under fake names. Los Angeles pre-filing defense attorneys are making great headway in protecting their physician clients from potentially devastating results. It is very important if a professional is under investigation to immediately hire a top notch Los Angeles investigation defense attorney to manage the investigation in a parallel manner to law enforcement. Thereby, providing key evidence and witnesses who can either clear the professional from further harm to their reputation, or worse, a criminal filing and lose of license.

Dozens of prescription bottles have been found in the Los Angeles home rented for the singer since his death last week. The investigators have let slip that many of the bottles have no labels, other have names other then the singers true names. It has been reported that Jackson had been suffering from an addition to prescription pain pills for many years. In fact, the singers family has publicly come forward and blamed his many doctors for enabling the singer with these powerful drugs. One of the drugs of most concern to law enforcement is the drug Diprivan. The drug is one of the most power sedatives on the market. Usually only used in operating rooms by anesthesiologists in surgery. Some of the bottles in Jackson's home were full of the drug, while others were completely empty.

Continue reading "Medical Fraud Investigation in Los Angeles Continuing in Michael Jackson Case" »