Former City of Miami Police Officer Sentenced in Identity Theft Tax Refund Fraud Scheme

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Manuel Orosa, Chief, City of Miami Police Department (MPD), and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Malinsky Bazile, 28, of North Miami Beach, was sentenced today for his participation in a stolen identity tax refund scheme. Bazile was sentenced to 144 months in prison, to be followed by three years of supervised release and ordered to pay restitution in the amount of $140,000.

Bazile was convicted by a jury of one count of fraudulent use of unauthorized devices, in violation of Title 18, United States Code, Section 1029(a)(2), four counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), one count of exceeding authorized access to a protected computer, in violation of Title 18, United States Code, Section 1030(a)(4), and one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3).

According to testimony and evidence presented at trial, the defendant operated an identity theft tax refund scheme from January 2012 to October 2012. During that period, the defendant, while employed as a City of Miami Police Officer, used his access to the Florida driver’s license database to steal the personal identity information of approximately seven hundred middle-aged women with common last names throughout the State of Florida. Using those identities, the defendant filed false and fraudulent tax returns with the Internal Revenue Service seeking refunds payable to pre-paid debit cards. The defendant was captured on multiple bank ATM videos withdrawing money from pre-paid debit cards loaded with fraudulent tax refund proceeds. FBI and MPD conducted a search at the defendant’s residence and found ledgers in a safe filled with hundreds of people’s identities and several pre-paid debit card containers. The defendant admitted to FBI and MPD that he made between $130,000 to $140,000 from the fraud scheme in 2011 and 2012.

Mr. Ferrer commended the FBI, MPD, and IRS-CI for their work on the case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Peter Forand.

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A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Further questions on protection from identity theft or obtaining a fully managed recovery program connect with Linda at 310-831-4400.

The National HealthCare Anti-Fraud Association has made some great recommendations for making yourself aware of potential hazards with the onset of  health care reform. You must realize legitimate insurance companies must be licensed to sell insurance of any kind with the state Department of Insurance in each state where they sell insurance. Insurance brokers must be licensed as well. Before you consider buying insurance, you should determine if the company or individual selling the insurance policy is properly licensed.  Every state has  a Department of Insurance where you can check out the company and the independent brokers.

These are some simple steps to follow to help you avoid being the victim of a health insurance scam:

DON’T

• Don’t buy insurance online or over the phone, based on mailers, fliers or ads without investigating first and clearly understanding what you are buying.
• Don’t respond to high pressure or fear tactics from aggressive salespeople.
• Don’t provide your Social Security number, bank account numbers or credit card numbers before confirming that you are dealing with a legitimate company, and don’t give out personal information over the phone.
• Don’t sign blank insurance claims forms.
• Don’t give blanket authorization to a medical provider to bill for services rendered.

DO

• Do take the time to research any company before purchasing a health insurance policy from it-a few minutes invested in searching the Internet is worth your time.
• Do check with your state’s Insurance Department to make sure the company is licensed to do business.
• Do compare insurance coverage.
• Do document your dealings with any company from which you are considering purchasing insurance.
• Do get a list of doctors and other providers that participate with the insurance plan you are considering.
• Do ask LOTS of questions.
• Do report suspected fraud to your state insurance department.

Below are some resources to help you learn more about the Health Care Reform law, what it means to you and how to protect yourself from being the victim of fraudulent health insurance scams.

• The U.S. Department of Health & Human Services manages a robust website intended to inform consumers about the new law: HealthReform.GOV
• The Obama Administration has created a website which aims to explain the new health reform law: Health Reform: What It Means To You
• To determine if a health insurer is licensed to do business in your state, check with your state’s department of insurance (DOI). Plus, most DOI websites provide information and resources on how to report suspected fraud.

For other information and further education connect with Linda at 310-831-4400 or Linda@theidentityadvocate.com

Stockton Man Sentenced to Almost Five Years in Prison for Identity Theft
U.S. Attorney’s Office May 31, 2012

Eastern District of California (916) 554-2700

SACRAMENTO, CA—Michael Garcia, 39, of Stockton, was sentenced today by United States District Judge Morrison C. England Jr. to 57 months in prison for fraud in connection with computers and in connection with an access device, United States Attorney Benjamin B. Wagner announced.

According to court documents, Garcia was employed as a technician by a contractor that provided information technology (IT) assistance to third parties. While employed there, Garcia accessed the computer servers of a law firm and an accountant firm without their knowledge or authorization and downloaded the personal information of more than 1,450 clients and employees. Garcia maintained this information on his computer and elsewhere.

According to court documents, Garcia and others used this personal and financial information to make counterfeited identification documents including driver’s licenses and military identification. They used the information to open bank accounts, draft bank checks, make cash withdrawals, obtain loans and lines of credit, and make unauthorized purchases. Additionally, Garcia accompanied others who wore stolen U.S. Customs and Border Protection uniforms to carry out certain fraudulent transactions, such as cashing checks, in the belief that the uniforms gave them more credibility. When arrested, Garcia possessed counterfeit California driver’s licenses, one of which bore his photo but with the name of a victim. The loss is more than $136,000.

Today in court, an employee of the accounting firm where Garcia unlawfully accessed the personal financial information told of the severe hardship suffered by the firm because of Garcia’s actions, as well as the personal toll she experienced because of Garcia’s breach of trust. Judge England commented that identity theft cases, particularly those where there has been an abuse of trust, negatively affect many lives.

This case was the product of an extensive investigation by the Federal Bureau of Investigation and the San Joaquin County Sheriff’s Department. Assistant United States Attorneys Todd Pickles and Robin Taylor prosecuted the case.

Owner of Doraville Medical Clinic Indicted for Health Care Fraud
Atlanta Hope Medical Group Billed Medicare for Doctor Services Never Performed
U.S. Attorney’s Office January 18, 2012

Northern District of Georgia (404) 581-6000

ATLANTA—DAVID SONG SEN CUI, 43, of Duluth, Georgia, has been indicted by a federal grand jury on charges of health care fraud.

United States Attorney Sally Quillian Yates said of the case, “Medicare dollars provide critical medical services for elderly and disabled persons. This defendant is charged with defrauding Medicare by repeatedly billing for ‘physical therapy’ that in truth was only massages given by unlicensed massage therapists. Medicare and our taxpayers cannot afford such criminal abuse of health care dollars.”

Brian D. Lamkin, Special Agent in Charge, FBI Atlanta Field Office, said, “The FBI, in conjunction with its various law enforcement partners, is committed to the protection of such federally funded programs. Individuals engaged in such fraudulent acts, as is alleged in this indictment, demonstrate a lack of compassion and greed that simply cannot and will not be tolerated. The FBI urges anyone with information regarding healthcare fraud activity to contact its nearest FBI field office.”

According to United States Attorney Yates, the charges, and other information presented in court: From November 2008 through August 2011, CUI operated the Atlanta Hope Medical Group, Inc., a clinic located in Doraville, Georgia. The clinic purported to provide physical therapy services for elderly patients. However, the clinic actually offered massage services, which were performed by unlicensed massage therapists. CUI allegedly billed the massages fraudulently to Medicare as “physical therapy” under a doctor’s name who did not render the services and was not even present at the clinic. As part of the scheme, Atlanta Hope employed a doctor who was present at the clinic only two days a week. The indictment alleges that, during the operation of the clinic, CUI fraudulently billed over $5.5 million in false claims to Medicare.

The indictment charges 11 counts of health care fraud. Each count carries a maximum sentence of 10 years in prison and a fine of up to $250,000. In determining the actual sentence, the court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by special agents of the Federal Bureau of Investigation.

Assistant United States Attorney Shanya J. Dingle is prosecuting the case.

For further information, please contact Sally Q. Yates, United States Attorney, or Charysse L. Alexander, Executive Assistant United States Attorney, through Patrick Crosby, Public Affairs Officer, U.S. Attorney’s Office, at (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.

I tell you the dead are not safe from Identity theft. Read the following FBI press release.

Doctor Pleads Guilty to Billing Medicare and Medicaid for Counseling Sessions with Dead Patients
Dr. Williams Claimed $2 Million in Phony Health Treatments, Saying It Was Group Therapy
U.S. Attorney’s Office June 06, 2011

Northern District of Georgia (404) 581-6000

ATLANTA—ROBERT WILLIAMS, 72, of Atlanta, Georgia, pleaded guilty today in federal district court on two counts of health care fraud as part of a scheme to bill for group psychological therapy that WILLIAMS never provided.

United States Attorney Sally Quillian Yates said, “With so many elderly citizens and others who need specialized psychological care, this defendant ignored his duty as a doctor and became a billing machine who claimed to treat patients who were in fact dead. This blatant attempt to rip off the system took funds and care away from real live patients with real problems. Medicare and Medicaid need all the money they can get for legitimate patient care and this physician will get none of that money.”

“This case sends a strong message that Medicare and Medicaid fraud will not be tolerated in Georgia,” said Georgia Attorney General Sam Olens. “At a time when our state budget is heavily strained, every dollar intended for the needy must reach the recipient. We will continue to work with our partners, the U.S. Attorney’s Office, and the FBI, to weed out fraud in Georgia.”

Brian D. Lamkin, Special Agent in Charge, FBI Atlanta Field Office, said, “Dr. Williams had for years, enjoyed a position of trust within the medical and health provider industry. He chose to abandon that trust and instead displayed a level of greed that will not be tolerated. Medicare fraud should be promptly reported to the nearest FBI field office so that the much needed federal health care benefits will be there for those individuals who truly need them.”

According to United States Attorney Yates, the charges, and other information presented in court: WILLIAMS was a licensed physician, practicing in the Atlanta area. From approximately July 2007 through October 2009, he contracted with a medical services company to provide group psychological therapy to nursing home patients in a variety of nursing homes. Under his signature, thousands of claims were submitted to Medicare and Georgia Medicaid seeking reimbursement for group psychological therapy that WILLIAMS purportedly provided to beneficiaries at several nursing homes in the Atlanta area. In many instances, however, WILLIAMS did not actually provide the therapy.

Specifically, from July 2007 through October 2009, Medicare claims data indicated that over 55,000 claims were submitted using WILLIAMS’ provider number for group psychological therapy. Those claims sought reimbursement for over $2,000,000, and ultimately caused Medicare to reimburse WILLIAMS over $750,000. For the same time period, over 40,000 Medicaid claims were submitted by WILLIAMS for group psychological therapy, causing Georgia Medicaid to pay out over $225,000.

An investigation of WILLIAMS’ claims showed that, in many cases, he sought payment for services provided to beneficiaries who were deceased at the time he purportedly rendered the care. In two cases, the patient died over a year before he was allegedly seen by WILLIAMS in the nursing home. Numerous claims were submitted to Medicare and Medicaid for group psychological therapy when the beneficiary was hospitalized at the time of service and, consequently, could not have received care at the nursing home as represented.

WILLIAMS was indicted on February 22, 2011 on 10 counts of health care fraud. Today WILLIAMS pleaded guilty to two of those counts. He could receive a maximum sentence of 10 years in prison and a fine of up to $250,000 for each count. In determining the actual sentence, the court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

Sentencing has been scheduled for August 23, 2011, at 11:30 a.m. before United States District Judge Richard W. Story.

This case is being investigated by special agents of the Federal Bureau of Investigation and the Georgia Medicaid Fraud Control Unit.

Assistant United States Attorneys Kurt R. Erskine and Nick Oldham, and Senior Assistant Attorney General Nancy Alstrom from the Georgia Medicaid Fraud Control Unit, are prosecuting the case.

For further information, please contact Sally Q. Yates, United States Attorney, or Charysse L. Alexander, Executive Assistant United States Attorney, through Patrick Crosby, Public Affairs Officer, U.S. Attorney’s Office, at (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.

Oaks Diagnostics of Beverly Hills, California, has paid the federal government $647,000 to settle allegations that it filed false claims with Medicare for unnecessary radiological tests, reported the U.S. Attorney’s Office Central District of California. They have settled without admitting any wrong doing. See article at HealthImaging.com:
http://www.healthimaging.com/index.php?option=com_articles&view=article&id=23030:california-rad-provider-settles-whistleblower-case-for-647k