MCCAIN BACKS LEAHY AMENDMENT AGAINST CORPORATE AND CRIMINAL FRAUD
For Immediate Release
Wednesday, Jul 10, 2002
Washington, DC – U.S. Senator John McCain (R-AZ) today continued his fight against corporate corruption in the marketplace by supporting the "Corporate and Criminal Fraud Accountability Act of 2002" sponsored by Sen. Patrick Leahy (D-VT). His floor statement follows:
"Our publicly owned companies are an essential component to the economic health of our country. As we have seen over the past few months, the continued lapses of our corporate leaders, whether they are ethical, criminal or just plain ignorant, have a significant, sometimes crippling, effect on the welfare of our nation. We must make some fundamental changes in the current system of corporate oversight to protect Americans from avarice, greed, ignorance and criminal behavior. Now is the time for Congress to restore investor confidence and take the necessary action to protect the interests of the public shareholders and place those interests above the personal interests of those entrusted with managing and advising those companies. The deterioration of the checks and balances that safeguard the public against corporate abuses must be reversed.
"We have to address the shortcomings in federal law and send the message that prosecutors now have the tools to incarcerate persons who defraud investors or alter or destroy evidence in certain Federal investigations. This amendment is a step in the right direction. It creates two new criminal statutes that would clarify current criminal laws relating to the destruction or fabrication of evidence and the preservation of financial and audit records. The Enron debacle clearly indicated that there were gaping holes in the current framework. There will be a 10 year criminal penalty for the destruction or creation of evidence with the intent to obstruct a federal investigation. There will be a new 5 year criminal penalty for the willful failure to preserve, for a minimum of five years, audit papers of companies that issue securities.
"The amendment also provides for the review and enhancement of criminal penalties in cases involving obstruction of justice and serious fraud cases. All of these actions are necessary to deter future criminal action. Until somebody responsible goes to jail for a significant amount of time, I am not sure that these people are going to get the message. Defrauding the shareholder has to carry a penalty of more than a fine. Many corporate decision-makers are making millions of dollars a year. A relatively small fine is not a deterrent; it's a slap on the wrist. The threat of jail is a deterrent that will make people pay attention.
"This amendment also creates a new securities fraud offense. This provision makes it easier, in a limited class of cases, to prove securities fraud. Currently prosecutors are forced to resort to a patchwork of technical offenses and regulations that criminalize particular violations of securities law, or to treat the cases as generic mail or wire fraud that results in a five-year maximum penalty. This new provision would criminalize any scheme or artifice to defraud persons in connection with securities of publicly traded companies or to obtain their money or property. This new ten-year felony is comparable to existing bank and health care fraud statutes. To those who'd say that it's hard to define a scheme or artifice to defraud, I'd say that full and honest disclosure of material dealings and accounting treatments is the best way for the officers who run America's corporations to protect themselves and those who invest in their companies. There are plenty of felony laws on the books that provide long prison terms for crimes that cause less damage than the losses to shareholders in Enron or WorldCom.
"It is important to emphasize that when criminal charges are pursued, it is not necessarily the firm that should be charged but the individuals at the helm of the corporate ship who should be prosecuted. If they are the ones making the decisions out of self-interest, they are the ones that should be held accountable. I also believe that we must protect the "corporate whistleblower" from being punished for having the moral courage to break the corporate code of silence. This amendment does that.
"This amendment also extends the current statute of limitations for matters concerning securities fraud, deceit or manipulation. The current statute of limitations for securities fraud cases is unfairly short given the complexity of many of these matters. Innocent, defrauded investors may be wrongly stopped short in their attempts to recoup their losses under current law. The existing statute of limitations for most securities fraud cases is one year after the fraud was discovered but no more than three years from the date of the fraud regardless of when it was discovered. Because this statute of limitations is so short, the worst offenders may avoid accountability and be rewarded if they can successfully cover up their misconduct for merely three years. The more complex the case, the easier it will be for these wrongdoers to get away with fraud. According to at least one state Attorney General, the current short statute of limitations has forced some states to forgo claims against Enron based on alleged securities fraud in 1997 and 1998.
"This situation essentially encourages offenders to attempt to cover up their misdeeds however they can, including by using questionable accounting procedures and financial shell games. Furthermore, in some cases, the facts of a case simply do not come to light until years after the fraud. If a person does not and cannot know they have been defrauded, it is unfair to bar them from the courthouse.
"These limitations are even more unfair when considered in light of the obstacles that current law can place between a victim and the courthouse in securities fraud cases. By the time a victim learns enough facts to file a complaint, survives a motion to dismiss, begins discovery, and learns that an additional wrongdoer or theory should be added to the case, that claim may be barred and the wrongdoer is able to avoid liability. Thus, current law sets up a perverse incentive for victims to race into court, so as not to be barred by time. Indeed, the short statute of limitations may even encourage frivolous cases, as a plaintiff operating in bad faith would have little trouble meeting the one-year deadline simply by naming every possible defendant and asserting every possible claim. We need to recognize the sophistication and complexity of modern-day schemes designed to defraud investors. It is long past time to give innocent victims a more reasonable chance to recover their losses.
"Finally, this provision amends the federal bankruptcy code to prevent the corporate wrongdoer, the CEO or CFO, from sheltering their assets under the umbrella of bankruptcy and protecting them from judgments and settlements arising from federal and state securities law violations. Too many of these highly paid corporate officers are using bankruptcy laws to protect their assets while maintaining their high-rise penthouses and ski chalets. It is time to force accountability and punish the person, not the institution, who is not willing to abide by the moral and legal codes that accompany leadership and public trust."
Saturday, June 28, 2008
A letter to my Senators.......
Sent: Wednesday, May 10, 2006 1:18 PM
Subject: letter to Durbin and Obama
Listening to Lamar Alexander of TN and others regarding the reason many people must travel miles to get to a physician is because of all the malpractice law suits filed in this country. This could be no further from the truth!
I would beg you to please take a look at Bill Frist's family empire/monopoly. HCA, INC. It is because of this conglomerate that our health system is in the crisis it is in and I implore you to bring up the reason people have to travel miles to a physician is not because of the malpractice but because of the monopoly HCA has been able to build in this country for the last 25-30 years. Not to mention the Billions, and possibly trillions of dollars in Medicare/Medicaid fraud, some of which has been exposed, most of which has not.
I would be more than happy to discuss my research and proof of my statements. This will be exposed, sooner or later with or without your assistance.
Thank You-
Susan Golden
708-453-1640
Subject: letter to Durbin and Obama
Listening to Lamar Alexander of TN and others regarding the reason many people must travel miles to get to a physician is because of all the malpractice law suits filed in this country. This could be no further from the truth!
I would beg you to please take a look at Bill Frist's family empire/monopoly. HCA, INC. It is because of this conglomerate that our health system is in the crisis it is in and I implore you to bring up the reason people have to travel miles to a physician is not because of the malpractice but because of the monopoly HCA has been able to build in this country for the last 25-30 years. Not to mention the Billions, and possibly trillions of dollars in Medicare/Medicaid fraud, some of which has been exposed, most of which has not.
I would be more than happy to discuss my research and proof of my statements. This will be exposed, sooner or later with or without your assistance.
Thank You-
Susan Golden
708-453-1640
Saturday, June 21, 2008
"...he will forfeit $850,000 in proceeds from the crimes....
Bowling Green Doctor Pleads Guilty To Health Care Fraud
Friday, 20 June 2008
A Bowling Green doctor has pled guilty to charges of health care fraud according to U.S. Attorney David L. Huber.
58 year old Verlon Lane Pierce has admitted to having defrauded health care benefit programs, including Medicaid by unlawfully billing those programs, for pharmaceutical drug samples provided to patients. He also admits he unlawfully purchased, sold and traded prescription drug samples. As part of a plea agreement, he will forfeit $850,000 in proceeds from the crimes.
Maximum potential penalties are 20 years in prison, a $500,000 fine and 3 years supervised release.
Verlon Pierce will be sentenced September 11 at 9 am in Bowling Green by Judge Thomas B. Russell.
Friday, 20 June 2008
A Bowling Green doctor has pled guilty to charges of health care fraud according to U.S. Attorney David L. Huber.
58 year old Verlon Lane Pierce has admitted to having defrauded health care benefit programs, including Medicaid by unlawfully billing those programs, for pharmaceutical drug samples provided to patients. He also admits he unlawfully purchased, sold and traded prescription drug samples. As part of a plea agreement, he will forfeit $850,000 in proceeds from the crimes.
Maximum potential penalties are 20 years in prison, a $500,000 fine and 3 years supervised release.
Verlon Pierce will be sentenced September 11 at 9 am in Bowling Green by Judge Thomas B. Russell.
Thursday, June 19, 2008
WHAT??? U.S. District Court Judge Richard Story gave Shanthaveerappa credit for the 400 days he has served in home confinement ....
Doctor gets probation for insurance fraud
June 17, 2008
Editor’s Note:
Questions? Comments? Write: National Lyme Report Editor Derek Clontz. He reads and answers all e-mails, usually within minutes and always within one business day.
Doctor gets probation for $650K insurance fraud
The Atlanta Journal-Constitution, January 23, 2008
By BILL RANKIN
Stone Mountain doctor initially charged with injecting his patients with commercial-grade weed killer was sentenced Thursday to five years’ probation for health care fraud.
Totada R. Shanthaveerappa, 73, who was suspended by the state medical licensing board after his indictment in 2005, treated terminally ill patients at his clinic in Stockbridge.
He pleaded guilty in October to defrauding insurance companies out of $650,000 for submitting false and misleading claims. Shanthaveerappa paid the entire amount of fraud in restitution.
Federal sentencing guidelines called for a sentence of between 24 and 30 months in prison and federal prosecutors recommended a term within that range, Assistant U.S. Attorney Randy Chartash said. But U.S. District Court Judge Richard Story gave Shanthaveerappa credit for the 400 days he has served in home confinement and gave him a probated sentence, Shanthaveerappa’s lawyer, Don Samuel, said.
“We are very happy with the judge’s decision,” Samuel said. “This doctor is an incredibly compassionate man who’s helped countless people who had incurable cancers and whose children had terminal diseases. He provided hope.”
Among Shanthaveerappa’s initial charges was illegally giving patients Dinitrophenol (DNP), a weed killer and insecticide. But Shanthaveerappa did not plead to this charge.
Samuel said the doctor gave DNP to five patients who had been diagnosed with Lyme Disease. “None of them were injured by it and he stopped it after those five patients,” Samuel said.
U.S. Attorney David Nahmias said …
Shanthaveerappa “posed a threat to the public health, safety and welfare by treating patients with unapproved procedures and drugs. He then submitted bills to the patient’s insurance companies that disguised and mischaracterized the types of treatments and drugs he actually used.”
June 17, 2008
Editor’s Note:
Questions? Comments? Write: National Lyme Report Editor Derek Clontz. He reads and answers all e-mails, usually within minutes and always within one business day.
Doctor gets probation for $650K insurance fraud
The Atlanta Journal-Constitution, January 23, 2008
By BILL RANKIN
Stone Mountain doctor initially charged with injecting his patients with commercial-grade weed killer was sentenced Thursday to five years’ probation for health care fraud.
Totada R. Shanthaveerappa, 73, who was suspended by the state medical licensing board after his indictment in 2005, treated terminally ill patients at his clinic in Stockbridge.
He pleaded guilty in October to defrauding insurance companies out of $650,000 for submitting false and misleading claims. Shanthaveerappa paid the entire amount of fraud in restitution.
Federal sentencing guidelines called for a sentence of between 24 and 30 months in prison and federal prosecutors recommended a term within that range, Assistant U.S. Attorney Randy Chartash said. But U.S. District Court Judge Richard Story gave Shanthaveerappa credit for the 400 days he has served in home confinement and gave him a probated sentence, Shanthaveerappa’s lawyer, Don Samuel, said.
“We are very happy with the judge’s decision,” Samuel said. “This doctor is an incredibly compassionate man who’s helped countless people who had incurable cancers and whose children had terminal diseases. He provided hope.”
Among Shanthaveerappa’s initial charges was illegally giving patients Dinitrophenol (DNP), a weed killer and insecticide. But Shanthaveerappa did not plead to this charge.
Samuel said the doctor gave DNP to five patients who had been diagnosed with Lyme Disease. “None of them were injured by it and he stopped it after those five patients,” Samuel said.
U.S. Attorney David Nahmias said …
Shanthaveerappa “posed a threat to the public health, safety and welfare by treating patients with unapproved procedures and drugs. He then submitted bills to the patient’s insurance companies that disguised and mischaracterized the types of treatments and drugs he actually used.”
U.S. Supreme Court regarding the federal statute for money laundering ......
The sentencing of Virginia dentist, Dr. Roy S. Shelburne has been postponed due to a recent United States Supreme Court case relating to his conviction on money laundering.
A June 2 ruling by the U.S. Supreme Court regarding the federal statute for money laundering is the latest in a string of delays – ranging from a late-arriving transcript of the trial, to the defense attorney’s computer crashing at the 11th hour – to push back the sentencing.
On Monday, Judge James P. Jones of the U.S. Western District of Virginia said the high court’s split decision in United States v. Santos “may be significant” in sentencing Shelburne.
Jones called the decision “complicated,” and “something I need to study further.”
It is unclear what if any bearing the high court’s decision will have on the sentencing.
Shelburne was convicted on March 6 of racketeering, health care fraud and money laundering, and faces up to 120 years in prison and a $1.25 million fine.
Dr. Roy Shelburne remains on bail pending sentencing and continues to practice dentistry but on a “dramtically reduced” level.
The judge in the case did not set a trial date for sentencing on Monday. The defense hopes to argue for a new trial at the sentencing hearing.
A June 2 ruling by the U.S. Supreme Court regarding the federal statute for money laundering is the latest in a string of delays – ranging from a late-arriving transcript of the trial, to the defense attorney’s computer crashing at the 11th hour – to push back the sentencing.
On Monday, Judge James P. Jones of the U.S. Western District of Virginia said the high court’s split decision in United States v. Santos “may be significant” in sentencing Shelburne.
Jones called the decision “complicated,” and “something I need to study further.”
It is unclear what if any bearing the high court’s decision will have on the sentencing.
Shelburne was convicted on March 6 of racketeering, health care fraud and money laundering, and faces up to 120 years in prison and a $1.25 million fine.
Dr. Roy Shelburne remains on bail pending sentencing and continues to practice dentistry but on a “dramtically reduced” level.
The judge in the case did not set a trial date for sentencing on Monday. The defense hopes to argue for a new trial at the sentencing hearing.
Support our Troops???? Oh yea!!!
Man gets 5 years for $100M Tricare fraud
By Ryan J. Foley - The Associated Press
Posted : Thursday Jun 19, 2008 7:33:55 EDT
MADISON, Wis. — A former health care executive was sentenced Tuesday to five years in prison for helping his Philippines-based company swindle nearly $100 million from the U.S. military health insurance program.
Thomas Lutz, 41, said in federal court he took responsibility for the six-year scheme in which Health Visions Corp. bilked $99.9 million from the military’s Tricare program through inflated and fraudulent claims.U.S. District Judge Barbara Crabb said the five-year sentence was modest given the extent of the fraud, but it was the longest she could impose under Lutz’s plea deal.
Health Visions and Lutz were initially charged in a 75-count indictment in 2005. He pleaded guilty in 2006 to a single count of conspiracy to pay kickbacks and agreed to cooperate with prosecutors, a deal Crabb called “a huge break” for Lutz.
“It’s just horrifying that you were able to take as much money as you did,” Crabb told Lutz.
Prosecutors said the company routinely inflated claims by more than 230 percent, operated a phony insurance program and billed for medical services never delivered.
In April, Crabb ordered Health Visions to pay $99.9 million in restitution. Under her order, the company must sell all of its assets, including land, hospitals and office buildings, within 10 months. She said Lutz would be responsible for paying the remainder, including at least 25 percent of his income once he is released from prison.
Crabb gave Lutz until March 18 to report to prison. Prosecutors asked for the nine-month delay so Lutz could help the government recover as much money as possible from the company.
Formed in 1997, Health Visions owned and operated hospitals and clinics in the Philippines and billed Tricare on behalf of other health care providers. The company served thousands of U.S. military retirees living in the Philippines, where bases were located until the early 1990s.
The company was reimbursed $163 million by Tricare between 1998 and 2004, and prosecutors believe at least $99.9 million of that was fraudulent.
Lutz, an American citizen, read a brief statement in which he took full responsibility for his company’s actions.
“I would like to apologize to the Department of Defense,” he said. “I am truly sorry for all those who have been affected.”
By Ryan J. Foley - The Associated Press
Posted : Thursday Jun 19, 2008 7:33:55 EDT
MADISON, Wis. — A former health care executive was sentenced Tuesday to five years in prison for helping his Philippines-based company swindle nearly $100 million from the U.S. military health insurance program.
Thomas Lutz, 41, said in federal court he took responsibility for the six-year scheme in which Health Visions Corp. bilked $99.9 million from the military’s Tricare program through inflated and fraudulent claims.U.S. District Judge Barbara Crabb said the five-year sentence was modest given the extent of the fraud, but it was the longest she could impose under Lutz’s plea deal.
Health Visions and Lutz were initially charged in a 75-count indictment in 2005. He pleaded guilty in 2006 to a single count of conspiracy to pay kickbacks and agreed to cooperate with prosecutors, a deal Crabb called “a huge break” for Lutz.
“It’s just horrifying that you were able to take as much money as you did,” Crabb told Lutz.
Prosecutors said the company routinely inflated claims by more than 230 percent, operated a phony insurance program and billed for medical services never delivered.
In April, Crabb ordered Health Visions to pay $99.9 million in restitution. Under her order, the company must sell all of its assets, including land, hospitals and office buildings, within 10 months. She said Lutz would be responsible for paying the remainder, including at least 25 percent of his income once he is released from prison.
Crabb gave Lutz until March 18 to report to prison. Prosecutors asked for the nine-month delay so Lutz could help the government recover as much money as possible from the company.
Formed in 1997, Health Visions owned and operated hospitals and clinics in the Philippines and billed Tricare on behalf of other health care providers. The company served thousands of U.S. military retirees living in the Philippines, where bases were located until the early 1990s.
The company was reimbursed $163 million by Tricare between 1998 and 2004, and prosecutors believe at least $99.9 million of that was fraudulent.
Lutz, an American citizen, read a brief statement in which he took full responsibility for his company’s actions.
“I would like to apologize to the Department of Defense,” he said. “I am truly sorry for all those who have been affected.”
Tuesday, June 17, 2008
Wescove Home Health Services
By AmericasNewsToday.Org staff
On the morning of Friday, June 6, special agents with the FBI and IRS-Criminal Investigation arrested the operator of Wescove Home Health Services at her home in Covina, Calif., on health care fraud and money laundering charges stemming from her participation in a scheme that defrauded Medicare out of more than $12 million.
Felcoranenda "Nenda" Estudillo, 50, a registered nurse, ran Wescove, which was based in the city of West Covina. Estudillo was Wescove’s administrator, responsible for the home health agency’s day-to-day operations and Medicare billing activity. In a 36-count indictment returned earlier this week and unsealed Friday, Estudillo is charged with conspiracy, health care fraud, money laundering, the structuring of cash transactions and falsifying records to maintain Wescove’s participation in the Medicare program.
According to the indictment, Estudillo paid marketers to recruit Medicare beneficiaries to receive benefits they were not eligible to receive. The marketers recruited and referred Medicare patients to Wescove, even though the beneficiaries were not confined to the home and did not need skilled nursing or therapy services. According to the indictment, Wescove billed Medicare for home health services provided to beneficiaries who were not confined to their homes, did not qualify for or need those types of services, or never received any services.
Estudillo allegedly paid marketers fees ranging from $300 to $4,800, based upon the amount that Wescove was able to fraudulently bill to Medicare. Estudillo would pay marketers higher fees for patient referrals that resulted in increased Medicare billings. She also allegedly paid referral fees that she booked as "skilled nursing" payments to conceal the payment of kickbacks.
According to the indictment, some Medicare beneficiaries were paid cash to sign up for home health services after being recruited by the marketers to receive services they did not need or did not receive. Estudillo allegedly paid more than $3.1 million to at least six marketers for the referral of Medicare beneficiaries.
The indictment charges Estudillo with 11 money laundering counts and 12 cash-structuring violations. These result from allegations that Estudillo laundered the proceeds of her Medicare billing scheme to promote the scheme, conceal the source of payments made to marketers and to herself, and avoid the payment of taxes . According to the indictment, Estudillo paid cash to some of the marketers who referred patients. To facilitate this, Estudillo devised a check-cashing scheme involving the marketers and Wescover employees in which they negotiated Wescove checks, obtained cash, and Estudillo used some of the cash to pay the marketers and patients. Estudillo allegedly wrote checks to marketers and employees in amounts less than $10,000 in an effort to avoid the currency transaction reporting requirements that banks are required to follow.
If convicted of all counts in the indictment, Estudillo faces a statutory maximum penalty of 430 years in federal prison.
The investigation of Estudillo was conducted by IRS-Criminal Investigation and the Federal Bureau of Investigation.
On the Web:
http://www.irs.gov,
http://www.fbi.gov/.
On the morning of Friday, June 6, special agents with the FBI and IRS-Criminal Investigation arrested the operator of Wescove Home Health Services at her home in Covina, Calif., on health care fraud and money laundering charges stemming from her participation in a scheme that defrauded Medicare out of more than $12 million.
Felcoranenda "Nenda" Estudillo, 50, a registered nurse, ran Wescove, which was based in the city of West Covina. Estudillo was Wescove’s administrator, responsible for the home health agency’s day-to-day operations and Medicare billing activity. In a 36-count indictment returned earlier this week and unsealed Friday, Estudillo is charged with conspiracy, health care fraud, money laundering, the structuring of cash transactions and falsifying records to maintain Wescove’s participation in the Medicare program.
According to the indictment, Estudillo paid marketers to recruit Medicare beneficiaries to receive benefits they were not eligible to receive. The marketers recruited and referred Medicare patients to Wescove, even though the beneficiaries were not confined to the home and did not need skilled nursing or therapy services. According to the indictment, Wescove billed Medicare for home health services provided to beneficiaries who were not confined to their homes, did not qualify for or need those types of services, or never received any services.
Estudillo allegedly paid marketers fees ranging from $300 to $4,800, based upon the amount that Wescove was able to fraudulently bill to Medicare. Estudillo would pay marketers higher fees for patient referrals that resulted in increased Medicare billings. She also allegedly paid referral fees that she booked as "skilled nursing" payments to conceal the payment of kickbacks.
According to the indictment, some Medicare beneficiaries were paid cash to sign up for home health services after being recruited by the marketers to receive services they did not need or did not receive. Estudillo allegedly paid more than $3.1 million to at least six marketers for the referral of Medicare beneficiaries.
The indictment charges Estudillo with 11 money laundering counts and 12 cash-structuring violations. These result from allegations that Estudillo laundered the proceeds of her Medicare billing scheme to promote the scheme, conceal the source of payments made to marketers and to herself, and avoid the payment of taxes . According to the indictment, Estudillo paid cash to some of the marketers who referred patients. To facilitate this, Estudillo devised a check-cashing scheme involving the marketers and Wescover employees in which they negotiated Wescove checks, obtained cash, and Estudillo used some of the cash to pay the marketers and patients. Estudillo allegedly wrote checks to marketers and employees in amounts less than $10,000 in an effort to avoid the currency transaction reporting requirements that banks are required to follow.
If convicted of all counts in the indictment, Estudillo faces a statutory maximum penalty of 430 years in federal prison.
The investigation of Estudillo was conducted by IRS-Criminal Investigation and the Federal Bureau of Investigation.
On the Web:
http://www.irs.gov,
http://www.fbi.gov/.
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