Federal And State Crimes – What Are They And How Can You Differentiate Between Them?

Probably everyone has heard about federal and state crimes but the majority of people doesn’t differentiate them. Let’s make it clear and define both of the terms.

federal

Federal crime is an illegal act that is made against U.S. federal legislation and is prosecuted by federal criminal law. Federal crimes are investigated by:

  • Internal Revenue Service (IRS)
  • Federal Bureau of Investigation (FBI)
  • Drug Enforcement Administration (DEA)

federal 2

When federal cases go to trial they are prosecuted by United States Attorney in each judicial district in accordance with already established laws. Federal crimes can range from illegally downloading songs from Internet to RICO, drug trafficking, corruption or immigration crimes.

Continue reading

Michigan Oncologist Dr. Farid Fata – Medicare Fraud, Villian or Cancer Patient Savior?

 On August 6, 2013, a Criminal Complaint was filed against Michigan Oncologist Dr. Farid Fata in Federal Court in the county of Oakland in the Eastern District of Michigan.  The Defendant was charged by the U.S. Government with Healthcare Fraud in violation of 18 U.S.C. 1347.

In an affidavit in support of the Complaint, Special Agent Brian Fairweather who was employed by the Federal Bureau of Investigation (“FBI”) alleges the following violations:

  • Healthcare Fraud – 18 U.S.C. 1347
  • Distribution of Controlled Substances – 21 U.S.C. 841(a)(1)
  • Money Laundering – 18 U.S.C. 1956 and 18 U.S.C. 1957
  • Payment or receipt of Healthcare Kickbacks – 42 U.S.C. 1320a-7(b)(1)(A) and 42 U.S.C. 1320a-7(b)(2)(A)

More specifically, the Complaint alleges the following:

  • Administration of unnecessary chemotherapy to patients in remission
  • Deliberate misdiagnosis of patients having cancer to justify unnecessary cancer treatment
  • Administration of chemotherapy to end-of-life patients who will not benefit from the treatment
  • Deliberate misdiagnosis of patients with cancer to justify expensive testing
  • Fabrication of other diagnoses such as anemia and fatigue to justify unnecessary hematology treatments
  • Distribution of controlled substances to patients without medical necessity

Continue reading

The FBI Reports An Increase Of Crimes Throughout The Country

Is there a day that crime isn’t in the news? Is there any doubt in your mind how dangerous the world we live in is?

Crime is an unfortunate reality everywhere! Big cities, small towns, even rural communities.

Statistics released in the FBI’s Preliminary Semiannual Uniform Crime Report indicate that the number of violent crimes reported in the first six months of 2012 increased 1.9 % when compared with figures from the first six months of 2011. The number of property crimes increased 1.5 % for the same time frame. The report is based on information from more than 13,300 law enforcement agencies that submitted three to six comparable months of data to the FBI in the first six months of 2011 and 2012.

Violent Crime

  • Two of the four offenses in the violent crime category—murder and non-negligent manslaughter and forcible rape—show decreases when data from the first six months of 2012 are compared with data from the first six months of 2011. The number of murders declined 1.7 %, and the number of rapes decreased 1.4%. But the number of robberies increased 2.0 % and aggravated assaults 2.3 %.
  • Cities with populations of 250,000 to 499,999 showed an increase in violent crime of 4.7 %, the largest increase among the city population groups. Cities with less than 10,000 inhabitants experienced the only decline (0.7 %) in violent crime offenses.

  • Violent crime increased 0.7 % in metropolitan counties and 0.6 % in non-metropolitan counties.

  • Violent crime increased in each of the nation’s four regions. The largest increase, 3.1 %, was in the West, followed by 2.5 % in the Midwest, 1.1 % in the South, and 1.1 % in the Northeast.

Continue reading

Should the United States Government be Permitted to Play the Role of a Venture Capitalist?

  

The United States government has made some very risky investments in areas such as green energy and electric vehicles.  As time as shown, the government’s ability to pick winners and losers has cost the United States taxpayers billions of dollars.

Green Energy, also known as renewable or sustainable energy, is energy that comes from resources which are continually replenished such as sunlight, wind, rain, tides, waves and geothermal heat.  According to Wikipedia, About 16% of global final energy consumption comes from renewable sources, with 10% of all energy from traditional biomass, mainly used for heating, and 3.4% from hydroelectricity.

 

These investments have instead provided a string of bankruptcies: Solyndra ($528 million in federal loans), Abound Solar ($400 million), A123 Systems ($279 million) and Fisker Automotive ($529 million), to name the most prominent examples.

Let’s begin with Solyndra, originally founded by Chris Gronet as Gronet Technologies in May of 2005.  The Company changed its name eight (8) months later to Solyndra and quietly began developing a solar module consisting of one glass tube nested inside of another.  Wrapped around the inner tube were 150 solar cells made from copper, indium, gallium and diselenide, rather than silicon.

Continue reading

Health Care Fraud: Sales Force Manipulation

In a recent article written by Bernard Vaughan and Jonathan Stempel entitled: U.S. sues Novartis, alleging kickbacks to pharmacies, Reuters reported that US government accuses Novartis Pharmaceuticals Corp. of paying kickbacks to pharmacies to switch kidney transplant patients from competitors’ drugs to its own and to oppose the use of a cheaper, generic immunosuppressant drug.

Since 2005 at least 20 pharmacies have got illicit payments from Novaris AG, a Swiss drug maker, to push up sales of its immunosuppressant drug Myfortic, said U.S. Attorney Preet Bharara.

Continue reading

The Victims Speak Out Against Peter Madoff

       

On the day of Peter Madoff’s sentencing, it is only fitting that the victims be heard.  In a stark contrast to the image of the man portrayed by those who wrote in support of Peter Madoff, Document 298 filed by the U.S. Department of Justice on December 19, 2012 contains eleven additional victim impact statements that were presented to the Honorable Laura Taylor Swain.

Perhaps you have the impression that all of the Madoff Victims were either very wealthy individuals or institutional investors.  While it’s clear that many of the victims fit this profile, it was painful to read about the financial position that many of these folks now find themselves in.

The first Impact Statement was submitted by email to the U.S. Justice Department by Marcia Ellis on behalf of Victim Martin & Marcia Ellis.  The Ellis couple was comfortably retired and living in Maine when they learned from their daughter that they had lost all of their money in the Madoff Ponzi Scheme. Their losses extended to brothers, sisters, grandmothers, grandfathers, aunts and uncles. The Ellis Family filed amended tax returns with the IRS which were rejected.  An appeal, which took them more than two years, resulted in a a tax adjustment of only 75% of their actual losses.

Mrs. Ellis now describes her life as one of:

“discount stores and living as in expensively as we can. Will we be able to support ourselves in our golden years – we can not plea bargain that reality away”.

The second victim statement came from Jill and Nancy Miller and was filed in order to express their dissatisfaction with the sentencing extension that Peter Madoff received from the court in order to be able to file amended tax returns with the Internal Revenue Service.  The victims reported that Mr. Madoff was not using his time to get his tax situation resolved but rather:

“he was out an about enjoying a leisurely lunch in an expensive upper east side restaurant where many of his victims would like to eat but can’t afford to. Yet miraculously he can. I saw him personally eating in this restaurant. He has nerve showing his face and flaunting his freedom (extra). I hope he savored the food cause that’s not what he will get in PRISON!”

Perhaps the most heart breaking Victim Impact Statement was iled by Morton J. Chalek, a World War II Veteran.  Mr. Chalek’s short statement made such an impact that it has been included in its entirety:

I welcome the opportunity to vent my spleen regarding the Madoff fiasco.

In the way of an introduction:

  1. When Pearl Harbor was bombed, I stood online overnight in order to enlist in the Air Force. I then flew 23 combat missions.
  2. After I was discharged, I worked hard, built a successful business and saved enough for a comfortable (well earned) retirement.
  3. Then my attorney introduced me to his golf partner, Bernie Madoff.

I am now 90 years old and bankrupt. I have been waiting hopelessly to recover the money Madoff stole from me. At the very least, I expected to receive some compensation from my SIPC insurance. Four years have passed and I have received nothing and, I see no help coming from the U.S. Department of Justice.

Mr. Picard and his clan seem to be thriving while my cause seems to be helpless.”

Morton J. Chalek

Victim Natalie, who signed her statement with the title: Direct Investor Sentenced to a Lifetime of Financial Ruin and Emotional Unrest provided perhaps the most interesting perspective for Judge Swain to consider when sentencing Peter Madoff today:

Peter Madoff was educated in the law. He was savvy enough to help create the computerized trading system. He worked closely with his brother for years. He aided and abetted his brother and helped the scheme to continue and thrive. He did a lot of damage over a long period of time. He ran the daily operations for the past 20 years and should be sentenced to the same amount of time. 20 years.

While the Federal Sentencing Guidelines are extremely complex, we would like to commend Natalie Erger for her wisdom and simplicity.  Moreover for her courage and those of all who have spoken out with respect to this financial disaster.  We express our sympathy for all of those who have had their lives impacted by the Madoff Ponzi Scheme and hope that the sentence imposed today on Peter Madoff by Judge Swain provides each and every one of them with some small measure of justice for their losses.

Bangladeshi Man Tried To Blow Up New York Federal Reserve

In a resent article on Forbes’ website an interesting case has been posted. Fortunately, a 21-year-old Bangladeshi man, tried unsuccessfully to blow up the New York Federal Reserve Bank on Wednesday morning.

It poses too many questions: does anybody pushed him to do that or was that his own initiative?

Quazi Mohammad Rezwanul Ahsan Nafis attempted to detonate what he thought was a 1,000 pound bomb in New York’s financial district, but he was arrested by law enforcement as part of a sting and no one was ever in any danger.

To know more info, go to: http://www.forbes.com/sites/nathanvardi/2012/10/17/feds-arrest-bangladeshi-man-who-tried-to-blow-up-new-york-federal-reserve/

 

Lawyer Involved in $850,000 Illegal Billing Scheme

On August 30, 2012, Mayer Brown’s former Chief Information Officer (“CIO”) David Tresch was arrested by the FBI for embezzling more than $850,000 over the past year.  The government’s complaint alleges that Tresch approved $980,000 in payments to an IT vendor for work that hadn’t been performed between May 2011 and May 2012, and the vendor sent him checks totaling $854,250. Mayer Brown paid the IT vendor almost $8 million between November 2004 and March 2011.  It has also been alleged that Tresch had a financial interest in the IT vendor and had received nearly $1.3 million from the vendor between 2005 and 2001.

Tresch had worked at Mayer Brown, one of Chicago’s oldest, largest and most prominent Chicago law firms since 2005.

It was reported that much of the illegal proceeds were spent on a fleet of vehicles, including a Cadillac DTS, an RV camping trailer, a work van and a mobile home. FBI agents seized Thursday approximately $210,000 in bank accounts controlled by Tresch, as well as a camping trailer, a van, and a luxury automobile.  Tresch was released on a $100,000 partially-secured bond.

For additional information, please read the Above the Law Blog Posting by Christopher Danzig entitled: Mayer Brown’s Former CIO Charged With Defrauding the Firm Out of a Whole Bunch of Money

Flawed Hair Samples Leads to a Review of Cases Dating Back to 1985

 

In a recent Wall Street Journal Law Blog Posting written by Chad Bray entitled:DOJ Reviewing Historic Hair and Fiber Cases for Flawed Work, The U.S. Department of Justice and the Federal Bureau of Investigation are reviewing thousands of historical criminal cases, including cases handled by the FBI Laboratory dating back to at least 1985, to determine if possible flawed hair and fiber evidence may have led to a conviction.  The Innocence Project is partnering with the Justice Department to provide an independent, third-party assessment of DOJ’s findings.