Miami Criminal Defense Lawyer Blog

A South Florida couple was indicted again in federal court for allegedly stealing medical records and selling them to local personal injury attorneys. In the first indictment, Reuben Rodriguez and Maria Victoria Suarez were accused of paying a Jackson Memorial Hospital Employee for records of patients recently involved in automobile and slip and fall accidents. Once they obtained the records, they purportedly sold them to local personal injury law firms who would turn file civil claims on behalf of the patients. The records included names, addresses, telephone numbers and medical reports. The attorneys allegedly paid them hundreds of thousands of dollars in kickbacks once the civil cases were resolved. Before the second indictment was handed down, both defendants were charged with identity theft and fraud in federal court. It is unclear whether the Miami criminal lawyers on the first case will represent their clients on the second case.

As a result of the investigation, several personal injury lawyers have been under the microscope. To date, none of the lawyers have been formally charges, but the Florida is looking into potential ethical violations. The Florida Bar permits several forms of advertising such as the internet, television, newspapers and the Yellow Pages, however, the rules prohibit the direct soliciting of clients by phone or mail. Furthermore, lawyers are prohibited from sharing fees with non-lawyers. If the Florida Bar can substantiate such a claim, counsel could be suspended or even disbarred from the practice of law.

Rodriquez originally received a bond a his initial pre-trial detention hearing, but has since had his bond revoked for allegedly tampering with witnesses. He was scheduled to enter a guilty plea in federal court in January on a conspiracy charge, but backed out of the deal at the last minute. He is scheduled to appear in court this week on the new indictment charging him with identity theft, computer fraud and conspiracy. Suarez has remained out on bond since the pendency of her old case, but it is not clear whether the prosecution will seek to have her detained pursuant to the new charges. The JMH technician that sold the records for $1,000.00 a month has since entered a guilty plea and is currently serving 10 months in prison.

The new indictment accuses the defendants of paying an employee of American Medical Response, an ambulance company, for records of patients being treated and transported by the company. AMR is based out of Colorado and has allegedly terminated the employee involved in the case. The investigation allegedly revealed that the defendants made at least four payments to the AMR employee in increments of $1,000.00 to $2,000.00. Again, they allegedly sold the records to attorneys in order to pursue personal injury claims. Prior to the second indictment, both defendants were facing prison sentences. The second indictment certainly subjects them to significantly more prison time.

Coral Gables Couple Again Accused of Selling Patient Records, The Miami Herald, March 8, 2010.

Miami, the epicenter for mortgage fraud in the United States is playing host to mortgage-fraud summit meetings being provided by the Financial Fraud Enforcement Task Force. President Barrack Obama established the task force last November in an effort to stamp out mortgage fraud, and other fraudulent real estate crimes. The task force is made up of federal, state and local law enforcement agencies. Miami criminal defense attorneys have been defending mortgage/real estate fraud cases in federal courts extensively over the past 24 months. There are currently 23 distinct task forces presently working throughout the country. Miami has become a primary focus of fraud since the housing bubble burst over two years ago. Acting United States Attorney for the Southern District of Florida commented, "Nowhere is the problem more serious than here in Florida."

South Florida, including Miami, is listed as number one in the nation for suspicious activity reports ("SARs"). SARs are financial reports issued by lending institutions when suspicious real estate activities occur. In another report generated by lender, Fannie Mae, Florida ranked the highest in loan fraud in 2008 and 2009. Every part of the loan industry has been clouded by fraud over the past several years. Numerous Miami-Dade residents have been indicted in federal court for defrauding banks and other lending institutions out of millions and millions of dollars. Buyers, sellers, real estate agents, mortgage brokers, lawyers and secretaries have all been the subject of dozens and dozens of federal investigations and prosecutions.

Generally, individuals charged in federal court are facing charges such as racketeering, mail fraud, wire fraud and conspiracy to commit those crimes. Typically, defendants charged with these crimes are facing between two to thirty years. The sentences are determined using the federal sentencing guidelines. The guidelines move higher, the greater the loss suffered by the financial institutions. While mortgage fraud is a difficult crime to detect, enormous losses suffered by banks, putting the likes of Washington Mutual and Wachovia out of business, have caused lending institutions to ramp up security. Banks are shoring up their defenses by verifying employment, income, assets, and other financial information prior to loaning money. Federal regulators are also pushing banks and lending institutions to file SARs if they have the slightest hint fraud may be involved.

Banks have taken the advice to heart and have become investigators themselves. A recent report indicated the 60% of the mortgage fraud investigations begin with the initiation of a SAR. The mortgage-fraud summit meetings are slated to provide seminar type training to lending institutions in an effort to help them identify mortgage/real estate fraud. The summits are also designed to analyze fraudulent trends and create solutions to fight the problems. Summits are also scheduled to be held in Phoenix and Detroit. If you or someone you know is be investigated or prosecuted for mortgage fraud, contact a criminal defense firm experienced in defending these types of cases.

Mortgage Fraud Task Force Comes to Miami, The Miami Herald, February 25, 2010.

An attorney/forensic accountant who formerly ran a well-known accounting firm entered a not guilty plea in federal court. Lewis Freeman attended his bond hearing, where U.S. Federal Court Magistrate Judge Robert Dube set a $1 million bond. Freeman is charged with fraud in an information that alleges that he embezzled more than $2.6 million from clients' trust accounts. Since the alleged scheme to defraud broke last fall, Freeman has been cooperating with federal law enforcement officers and prosecutors. Freeman appeared in court with his criminal defense team and entered not guilt pleas to charges of conspiracy and male fraud. His Miami criminal defense lawyers told reporters that, "Freeman is prepared to stand before the court and to accept the consequences for his actions."

Freeman, charged with conspiracy to commit mail fraud and mail fraud has appeared to have accepted responsibility for his actions and is attempting to cooperate with government authorities. Because of his cooperation, it is greatly expected that he will enter a guilty plea in federal court in the not to distant future. Freeman's criminal defense team is hoping that the cooperation will lead to a significant sentence reduction supported by the government and issued by the presiding judge. While the federal sentencing guidelines dictate a prison sentence of 10 to 20 years, significant cooperation with the federal government can lead to significantly less incarceration.

The information charges Freeman with stealing money from at least 250 clients while he was acting as their court appointed receiver. He acted as the receiver in many South Florida fraud and bankruptcy cases. On top of the theft allegations, he is accused of filing false financial statements to cover up the 10 year embezzlement scheme to defraud. People familiar with the case believe that two other individuals will be charged in the near future as co-conspirators. One of those involved is probably the chief financial officer of Freeman's company. The information specifically alleges that Freeman issued himself approximately 162 checks with a value of $6 million from the accounts of former businesses for which he was acting as a receiver. On a positive note, Freeman returned about half of the money he purportedly took. The interesting part of the case is how the federal judge will view the man who stole from victims that the courts appointed him to protect.

Federal prosecutors and agents bashed the former Miami forensic accountant by stating, "This is a classic case of how greed can slowly corrupt a person who started out with good intentions, it turns out that the wolf was protecting the hen house for the last ten years." The acting United States Attorney for the Southern District of Florida is claiming that Freeman stole to support his lavish lifestyle. His defense team said that he was just trying to correct business mistakes. Both parties will be able to make those arguments to the federal judge when the sentencing hearing takes place.

Miami's "Go-To" Forensic Accountant Pleads Not Guilty to Fraud, The Miami Herald, February 24, 2010.

The federal agency called the Financial Crimes Enforcement Network released a report showing that suspicious activity related to mortgage fraud climbed 7.5% in the third quarter of 2009. The report covers July 1, 2009 to September 30, 2009. Again, California and Florida led the pack in terms of states being linked to mortgage fraud. The cities with the highest rates of suspicious activity continue to be Miami, Los Angeles and New York. Financial institutions and banks are required to file suspicious activity reports (SARs) when they suspect or actually catch a mortgage scheme to defraud. The reporting requirement comes from the Bank Secrecy Act. The report may be skewed as some of the SARs covered cases that were more than a year old and just reported during the aforementioned dates. Some of the suspicious activities were in fact more than two years old and just reported late.

An interesting part of the report set forth the prospect that new types of mortgage fraud are being committed. Hundreds of reports are coming in that loan modification fraud and foreclosure rescue scams may just be the beginning of a new type of real estate fraud the feds will start investigating. While mortgage fraud cases may be drying up for Miami criminal defense attorneys, these new types of fraudulent activities will provide new types of cases for criminal law firms. The two most common schemes according to the report are as follows. The first being cases where distressed homeowners were tricked into signing quitclaim deeds to straw buyers and the homeowners received eviction notices anyway. The second scheme involved individuals taking money from homeowners with the promise to seek loan modifications, when in fact all they did was take the money and run.

The recently created mortgage task forces are completely overwhelmed investigating typical mortgage fraud cases. The cases are very complex and take months if not years to thoroughly investigate. The lengthy criminal investigations result from the large number of individuals and different levels of fraud that need to be looked at when conducting a thorough investigation. Another reason why the investigations take so long is that the feds have to subpoena and review thousand of documents before questioning individuals suspected for the involvement in the case. Once the documents are reviewed federal investigators attempt to speak with or arrest anyone whose names can be found on the documents. If you are contacted by federal investigators who want to discuss real estate transactions, it is imperative to contact a criminal law firm that has experience in defending real estate fraud cases in federal court.

Anyone arrested for their involvement in real estate fraud will be charged with wire fraud, mail fraud and racketeering. The penalties one faces under the federal sentencing guidelines depends mostly on the loss suffered by the financial institutions who lent money to fraudulent buyers and sellers. Penalties can range from supervised release to long prison sentences depending on the loss. Even one fraudulent transaction where an individual signs a HUD1 seeking credit from a bank can go to prison if the loss amount is enough.

Mortgage Fraud Reports Up 7.5 Percent, US Agency Says, Reuters, February 18, 2010.

The federal government continues to prosecute and punish anyone caught up in Miami Medicare fraud. This time the feds arrested and prosecuted a Miami-Dade County woman for allegedly running a clinic that allegedly assisted in defrauding the federal health care system out of $2.3 million. Dulce Briceno appeared in federal court with her Miami criminal attorney for her sentencing hearing. After hearing arguments from the prosecution, as well as defense counsel a federal court judge sentenced the woman to five years in prison and ordered her to repay the federal government $1.8 million in restitution. Medicare fraud cases are currently and will be the foreseeable future the focus of the federal government. Anyone contact by federal investigators regarding their involvement in a healthcare fraud case should immediately seek the assistance of a Miami criminal lawyer to protect their rights. Lengthy prison sentences and large fines and restitution orders are being handed down by federal judges.

Briceno was one of fifty individuals arrested as part of large investigation conducted by the Medicare Fraud Strike Force. The strike force operates in seven districts within the United States. The strike force continues to expand its reaches throughout the country. The federal task force is responsible for at least 500 indictments in involving fraud. What was interesting about the case is that Briceno's alleged criminal violations did not occur in Miami, but rather in Detroit, Michigan. Yet with her consent, her case was transferred to a Miami federal court. Briceno was one of fifty individuals involved in the massive scheme to commit healthcare fraud. Of the fifty arrested, two of those indicted were actually medical physicians. The clinic billed Medicare $2.3 million, but only actually received $1.8 million from the federal government.

Briceno with the assistance of her criminal lawyer entered into a plea agreement with the federal government. She admitted to running the daily operations of X-Press Center when the clinic billed Medicare for unnecessary medical treatments or for treatments that were not provided to patients. Patients were not referred to the clinic, but were recruited and received monetary compensation for appearing at the clinic. No matter what state the purported healthcare fraud occurred in, the allegations are always similar. The court records are sealed so it is unknown whether she is going to provide substantial assistance to federal prosecutors. From the look of the sentence, her cooperation must have been limited. If she decides to assist prosecutors after the sentence was imposed her lawyer can file a Rule 35 and seek a sentence reduction.

If you are contacted by federal investigators contact a criminal attorney with experience in Medicare fraud matters. Early representation is always beneficial to a client and can result in limiting the number and type of charges being filed. It can also assist in reducing someone's exposure under the federal sentencing guidelines. The penalties that attach to Medicare fraud include prison, restitution and large fines. The amount of prison time a person faces is directly proportionate to the amount of money fraudulently received from the federal healthcare program.

Clinic Operator Sentenced for Medicare Fraud, South Florida Business Journal, February 5, 2010.

Two former Allen Stanford employees currently on trial in a Miami federal court lost their first attempt to have the charges dismissed during trial. The Miami criminal attorneys representing Thomas Rafanello and Bruce Perraud argued motions to dismiss after federal prosecutors rested their case. United States District Judge Richard Goldberg denied defense counsels' motions after hearing arguments from both sides. After denying the motion, Judge Goldberg did comment that he hoped that the prosecutors could prove intent, a necessary element to the crime. The judge called their evidence, "precious thin". There will be another opportunity to argue a second motion to dismiss at the close the defense's case. The trial began on February 1, 2010 and is expected to be completed late this week or by the beginning of next week.

Allen Stanford is charged with running a $7 billion "Ponzi Scheme". Sanford hired Rafanello after he left the DEA to head up the security Allen Stanford's financial empire. Stanford is currently in federal custody awaiting charges in a Houston correctional facility. Sanford has been indicted in numerous counts including securities fraud, wire fraud, mail fraud, racketeering and money laundering. Rafanello's co-defendant, Bruce Perraud was employed by Stanford as a global security specialist. After federal authorities shut down Stanford's operation, Rafanello and Perraud allegedly destroyed reams of documents in contravention of a court order. Both individuals were the first being tried that were involved with Stanford's investment fraud scandal. Each is facing up to forty years in federal prison if they are convicted on all four counts.

The criminal defense attorneys representing Perraud and Rafanello have argued from the inception of the case that paperless copies of the documents purported to be shredded existed, thereby negating the defendants' intent to commit a crime. One of the attorneys argued today that was no evidence of corrupt intent and requested that the judge end the case at the time of the motion. Government prosecutors argued that the defendants were destroying records in contravention of a court order and that we will never know what documents were destroyed. Judge Goldberg replied, "Well, you'll never know because you haven't bothered to look." The judge referred to the documents that were stored in the paperless system.

Despite the fact that the federal authorities discovered dozens of Ponzi Schemes over the past months, the cases seem to proceeding to trial at a slow pace. The slow pace from arraignment to trial can be expected in state court, but it is unusual in federal court. The complexity of the cases and legal maneuvering of experienced criminal lawyers tend to delay the cases. Eventually, all of those accused of creating schemes to defraud will appear in court. Only time will tell which ones will go to jail and which one will be exonerated. If you or anyone you know is being investigated for or has been arrested and charged in a fraud case, contact an experienced criminal attorney to fight the charges.

Alleged Stanford Shredders Loss Bid to Dismiss Case, Business Week, February 9, 2010.

Ten Miami-Dade residents were formally charged in a massive Miami mortgage fraud scheme. The defendants are alleged to have defrauded various lenders to the tune of $24 million. The hardest hit bank was Washington Mutual, suffering $7 million in losses as a result of the fraudulent real estate transactions. The ten defendants allegedly worked in concert using a mortgage brokerage company called Miami Dade Mortgage Professionals to perpetuate the fraud. The charges are being brought in federal court in the Southern District of Florida. At least one of the defendants has retained a Miami criminal defense law firm to defend the charges. It is unclear at this early juncture in the criminal process whether the defendants will retain Miami criminal attorneys or seek the assistance from the Federal Public Defender's Office. Criminal investigations continue to target all levels of individuals involved in mortgage fraud. Real estate agents, mortgage brokers, attorneys, title agents and straw buyers have been the subject of many federal criminal investigations.

All of the defendants indicted for mortgage fraud reside in Miami and Hialeah. The federal indictment alleges that Alain Hernandez, a licensed mortgage broker, and his wis wife, Ricelda Hernandez, a licensed real estate agent, would draft fraudulent mortgage applications and solicited others to act as straw buyers promising hefty returns in exchange for their assistance in committing the fraud. The allegations suggest that Ana Blanco operated Trinity Closing Group to seal the deals. The defendants were indicted on charges including racketeering, money laundering, wire fraud and mail fraud. The Miami mortgage fraud scheme involved six residential properties.

Hernandez allegedly provided fraudulent information on mortgage applications to Washington Mutual, Loan City and other lenders. Papers in the court file allege that Hernandez and his wife recruited straw buyers to consummate the fraudulent real estate deals. The most common incidents of mortgage fraud involve the use of straw buyers who are recruited by unscrupulous mortgage brokers to apply for loans. The straw buyers provide personal information to apply for the fraudulent loans. The straw buyers receive hefty payments from the organizers for participating in the scheme to defraud. The mortgage brokers fill out the mortgage applications using falsified income statements of the straw buyers and submit them to the lending institutions.

In other mortgage fraud cases, falsified applications were used to obtain home loans of home equity lines of credit. This type of fraud is not alleged in this case. Banks are trying to recover some of the losses though the subsequent sale of the properties. However, the current real estate market in South Florida makes it difficult to move the properties. If you or someone you know is being investigated or arrested for mortgage fraud, immediately contact a defense lawyer experienced in defending cases in federal court. Depending on the amount of loss, individuals arrested on these types of charges could be sentenced to multiple years in prison.

Ten Indicted in Multimillion-Dollar Mortgage Fraud Scheme, South Florida Business Journal, February 2, 2010.

A Justice Department released a report earlier this week explaining that the number of people being arrested and charged for Medicare fraud has barely increased over the past two years. Despite the federal government's promise to fight healthcare fraud, little progress is being made according to the report. That fact is hard to believe because at least once a week local papers write articles describing the latest Miami Medicare fraud cases. The report indicated that federal prosecutors indicted 803 individuals with Medicare fraud this year. Federal authorities are disturbed that the prosecution rate has only increased 2% since 2007, the year the Medicare strike forces began to take shape. The numbers may be skewed because the report does not include the number investigations that are pending this year, as compared with 2007.

Again, politics is entering the picture in the battle against health care fraud. Democrats are trying to curb the fraud and use the benefits to assist in paying for the government run healthcare plan. The politicians want to save the tax payers from the $60 billion a year fraud and use the money to support the new plan. Obama's administration gathered experts in Washington, D.C. to get ideas prevent the extensive losses. Current safeguards are mostly limited to recovering losses as a result of fraud, and not preventing the fraud before it happens. Only the largest of Medicare fraud cases are often prosecuted in federal court. A federal prosecutor was quoted as saying, "While we can't prosecute our way out of health care fraud problem, we are making sure that we're using innovative ideas like the Medicare fraud strike forces to detect and prosecute healthcare fraud."

Based on the large number of arrests and prosecutions in Miami, the strike forces appear to have been working, at least in South Florida. The Justice Department set up a team of an investigators and prosecutors to combat the ongoing the ongoing problem. Based on the apparent success in Miami, the federal government set up strike forces in six other cities including Baton Rouge, New York and Tampa. Opponents of the strike forces are using the report in several ways. Opponents of Obama's plan routinely say that if the current administration cannot clean up the health care fraud, how can they possibly think they can create a health care system that will work.

Initially, the number of prosecutions in fraud cases jumped %35, but the numbers have remained stagnant since that time. However, the statistics do not take into consideration if the number of pending investigations have increased significantly during the same time frame. With the focus on these types of fraud offenses, prosecutors will seek, and the judges will hand down severe sentences for those convicted of health care fraud. Anyone being investigated for or having been arrested for their involvement in a Medicare fraud case should seek assistance from a Miami criminal defense attorney defending these types of cases in federal court.

Little Progress Seen Against Health Insurance Fraud, USA Today, January 28, 2010.

A $1.2 billion "Pozni Scheme" created and operated by a Ft. Lauderdale lawyer has caused significant incomes for all types of South Florida lawyers. Hundreds of former employees, investors and creditors have lost jobs and millions of dollars as a result of the alleged massive scheme to defraud conceived by Scott Rothstein. As others suffer, various types of South Florida lawyers are earning large sums of money due to their involvement in all aspects of the case. Experts have determined that different types of lawyers from Miami criminal lawyers, Broward banking and insurance attorneys, as well as, lawyers working for two law firms assisting the receiver will make in excess of $15 million for their involvement in the case. The criminal defense lawyer representing Rothstein is under the impression that he will enter a guilty plea in federal court later this week.

The lawyer set to earn the most money for his involvement in the case is Miami-Dade Senior Judge Herb Stettin who was appointed to act as the receiver in the case by a Broward County judge. Stettin is responsible for receiving and distributing all of the items seized by federal authorities in asset forfeiture actions. Stettin is expected to make millions as a result of the receivership according to experts cited by the Miami Herald. The authorities have seized millions of dollars in assets from Rothstein's estate including expensive sports cars, mansions, jewelry and other assets belonging to his former seventy member Ft. Lauderdale law firm. Lawyers from investors, creditors and the like are lining up to collect the proceeds from these assets.

Rothstein is currently charged by indictment for mail fraud, wire fraud, and money laundering and is facing dozens of years in federal prison. Rothstein has not directly spoken with federal investigators or prosecutors working on the case. His criminal attorney has acted as an intermediary in any communications directed toward the authorities. Rothstein is set to enter a change of plea on January 27, 2009. Apparently, a plea agreement has been reached because the hearing date has not been postponed. The terms of the agreement will be released when the plea is taken by the federal judge.

Once Rothstein enters a guilty plea, a sentencing date will be set in three or four months. During that time, a federal probation officer will compile a pre-sentence investigation which will include a background history of the defendant. Additionally, the probation department will determine the potential sentence using the federal sentencing guidelines. The pre-sentence investigation report will be provided the judge, defense counsel and the prosecution. Rothstein's defense team and federal prosecutors will have the opportunity to file objections prior to the sentencing hearing in federal court. The word on the street is that Rothstein will probably receive a twenty year prison sentence. The sentence is along the lines the punishment doled out to Mark Dreier, the New York lawyer, who sold false investment notes and stole from clients. The biggest problem Rothstein faces other than the amount of money involved in the the scheme to defraud, is the fact that evidence apparently exists that will be submitted to the court that Rothstein forged judges signatures and fraudulently created fake civil court settlements and sold them to investors.

Scott Rothstein Case Seen as Economic Boon for Lawyers, The Miami Herald, January 27, 2010.

The federal government appears to be ready, willing and able to leave no stone unturned in an effort to stamp out Medicare fraud. A South Florida resident wanted by federal authorities for his involvement in a Miami Medicare fraud ring was apprehended in Cancun, Mexico. Jose Luis Perez was extradited from Mexico to Miami and indicted for his involvement in a $179 healthcare scheme to defraud. Extradition from Mexico to the United States is not difficult to accomplish by the federal authorities due to the fact that an extradition treaty exists between the two countries. Extradition matters can be difficult and convoluted depending on the arresting country. Extradition matters should only be handled by experienced Miami criminal lawyers.

Federal investigators received information, probably from a co-defendant who entered a plea agreement to receive a sentence reduction, who in turn provided the information to Mexico's Immigration Service. Mexican authorities passed on the tip to the FBI's legal department in Mexico City. The FBI confirmed the fugitive's identity who was then picked up in Cancun by Mexican law enforcement authorities. Perez was extradited to Miami and is scheduled to appear at his initial appearance this week in federal court. Federal prosecutors will no doubt seek pre-trial detention at his bond hearing in that Perez is now without question, a flight risk.

In recent months, many individuals implicated in Miami Medicare fraud cases have fled the United States in an effort to avoid prosecution. About 60 individuals have fled the jurisdiction and sought refuge in Cuba, Mexico and other Latin American countries after allegedly bilking the federal health care program out of hundreds of millions of dollars. Approximately eight Medicare fraud suspects have been apprehended attempting to re-enter the United States at Miami International Airport. The lesson to be learned here is if you are under investigation for Medicare fraud, fleeing the jurisdiction may not absolve you from prosecution. Prior to leaving the jurisdiction, anyone under investigation for this type of offense should retain the services of a Miami criminal attorney experienced in defending Miami Medicare fraud cases to see if there is a viable defense to their case.

Perez was indicted for operating 21 fraudulent medical supply companies in and around the Miami area. He allegedly worked in concert with his co-defendant Reinaldo Guerra. The clinics and medical supply stores were run by straw owners, but federal prosecutors allege that Perez and Guerra reaped all of the monetary benefits. Perez and Guerra are alleged to have received $51 million from Medicare between 2002 and 2004 for medical equipment, such as artificial limbs, that no one ever needed or received. Guerra entered a guilty plea in federal court and was sentenced to 14 years in prison. If Perez enters a guilty plea, he will more than likely receive the same sentence as Guerra.

Fugitive Caught in Cancun, The Miami Herald, January 19, 2010.

The Miami-Dade County State Attorney's Office has decided to wage another war against fraud in the community. The office has recently ramped up efforts to investigate and prosecute Miami workers' compensation fraud. The most frequent type of workers' compensation fraud commonly involve workers faking injuries and receiving benefits from the State of Florida. The State Attorney's Office created the pilot program which not only investigates and prosecutes employees faking injury, but also businesses that violate state law by failing to pay the required insurance premiums. An upswing in worker's compensation crimes will lead to more defense work for Miami criminal defense lawyers.

Miami-Dade County State Attorney Katherine Fernandez-Rundle issued the following statement regarding the pilot program, "With the economic situation deteriorating, people are finding all kinds of way to get quick money, but nothing is slipping through the cracks. These cases are being intensely investigated and prosecuted." The State of Florida Division of Insurance Fraud has issued a grant to Miami-Dade County in the amount of $136,000.00 to fund the program. Miami is currently the only county to have been granted state funds to prosecute workers' compensation fraud. Broward County prosecutes similar cases, but they are handled by the white collar crimes unit.

During the last fiscal year, statewide prosecutions for workers' compensation fraud led to 532 criminal convictions, 20 of which were in Miami-Dade and 13 in Broward County. Restitution awarded back to the State of Florida exceeded $34 million. Department of Insurance and worker's compensation investigators with the assistance of the state attorney's office hopes to double the number of arrests this year. While worker's compensation fraud is a felony offense, the punishments in the past were not very onerous if the amount of the fraud was limited in the amount of monetary loss. The majority of worker's compensation violators were first time offenders and were able to avail themselves of the pre-trial diversion program, if prosecutors could meet their standard of proof. As an experienced Miami criminal lawyer, it is apparent that nominal punishments may no longer be in the cards. The same thing happened in other insurance fraud cases, such as in staged automobile accidents.

Before staged accidents became popular, first time offenders were generally looking at pre-trial diversion. Now, only cooperating witnesses involved in staged accidents will be permitted to enroll in the program. Workers' compensation cases will probably be handled in the same way, as the same section in the Miami-Dade State Attorney's Office handles all insurance fraud cases. Another point that needs to be understood is that the Department of Insurance Fraud has recently been unforgiving in the handling of fraud cases. They know that if cases are prosecuted to the fullest, they may lose state funding. If you are contacted regarding a Miami workers' compensation fraud investigation, contact an experienced Miami criminal lawyer before speaking to law enforcement investigators.

Workers' Comp Fraud Targeted, The Miami Herald, January 14, 2010.

A South Florida resident appeared in federal court and entered a guilty plea in a Medicare fraud case. Ingrid Mazorra plead guilty to one count of conspiracy to commit Medicare fraud. The indictment alleges that Mazorra, in 2006, assisted in the operation of medical clinic that billed for fraudulent infusions. The clinic she operated was located in Livonia, Michigan and operated under the title Xpress Center, Inc. After her arrest in Miami, she agreed to have her case transferred to the United States District Court in the Southern District of Florida. What is unusual about the case is that the defendant' case was transferred to Miami. Mazorra's Miami criminal lawyer appeared on her behalf at the change of plea.

After Mazorra entered her plea of guilty, she admitted in open court to being involved in the health care scheme to defraud. She also admitted that her clinic billed Medicare for unnecessary medical services and equipment or billed for services and equipment that was never provided. The clinic recruited patients to attend the clinic in exchange for cash payments. In exchange for the cash payment, fraudulent patients would visit the clinic and fill out Medicare paperwork indicating that they had received the treatment and/or medical supplies. On some occasions kickbacks were payed, not in cash, but in the form of prescriptions for narcotic drugs. Mazorra admitted to billing Medicare in excess of $2.3 million tot he federal healthcare program with Medicare actually paying $1.8 million in claims.

The investigation into Xpress Center, Inc. was conducted by the Detroit office of the FBI and Health and Human Services. The case was brought to federal prosecutors from the Medicare Fraud Strike Forces which is now operating in full force in Miami, Los Angeles, Detroit, Houston, Brooklyn, Tampa and baton Rouge. The strike force has successfully obtained indictments against more than 460 individuals and organization responsible for bilking the federal healthcare system out of more than $1 billion. The federal government is trying to make good on its promise to derail the systemic Medicare fraud problem in the United States.

The federal government is continuing the ongoing battle against individuals committing fraud against the federal health care system. With the expansion of the Mortgage Task Force, it is apparent that the number of indictments in federal court will increase until the problem is eradicated. If you are contacted by law enforcement regarding an investigation into Medicare fraud, it is imperative to seek the advice of an experienced Miami Medicare fraud lawyer to discuss your options. Under no circumstance, should you speak with investigators without the assistance of an attorney.

Clinic Manager Pleads Guilty in Medicare Fraud Scheme, PR Newswire, January 12, 2010.

In Tampa, Florida, ex-FOREX trader, Beau Diamond, now armed with a new legal team entered a not guilty plea to charges surrounding a $38 million "Ponzi" scheme. Diamond had been previously represented by a well-known Miami criminal lawyer, a federal public defender and a Tampa criminal lawyer before retaining a law firm out of Milwaukee. The federal court magistrate set the trial to beginning March 1, 2010. Diamond's new counsel complained of the short setting stating, "We've got $38 million in financial transactions, and 222 witnesses, all of whom we need to interview."The magistrate told the lawyer to take it up with the federal judge presiding over the case.

Diamond has been detained since his arrest on September 1, 2009. Although, Diamond has sought bail at two previous bond hearings, both requests have been denied. Diamond's new lawyer did not immediately request bail to be set, but reserved his right to appear at a bond hearing on a future date. Diamond's lawyer has many years of federal trial experience and has represented the likes Wesley Snipes and the creator of Girls Gone Wild, both charged with tax evasion.

Federal prosecutors have alleged that Diamond ran a $38 million "Ponzi" scheme to defraud under the guise of a currency trading investment club. Although some of money was actually invested, others alleged that the majority of the funds wee used to pay for his lavish lifestyle. Court records reveal that Diamond promised his investors a 2.5 to 5 percent monthly return on their investment. The indictment alleges that Diamond sought out new investors to make the interest payment to older investors. Some of the counts allege that Diamond transferred money out of bank accounts to pay for his automobile, condominium and trips to Las Vega and Costa Rica.

Diamond is currently facing 18 criminal counts. The charges include wire fraud, mail fraud, illegal money transactions and transportation of stolen property. If Diamond actually opts to go to trial, he is facing between 10 to 20 years for each count charged by federal prosecutors. Previously, it was believed that Diamond and the Tampa criminal lawyer were in negotiations to work out a plea deal. The terms of the deal have not been made public. Apparently, the plea deal offered by the government carried significant prison time because negotiations broke down and Diamond hired his new criminal defense team. Based on the allegations, significant losses and number of witnesses, a plea deal appears imminent. Only time will tell. However, if Diamond is going to try to save himself from significant incarceration he may have to provide information to federal investigators regarding co-conspirators.

Sarasota's beau Diamond Pleads Not Guilty; Trial Is Set, Herald Tribune, December 8, 2010.

Disbarred Fort Lauderdale lawyer Scott Rothstein is allegedly going enter a guilty plea into charges including wire fraud, mail fraud and money laundering. Prior to entering a plea, his Miami criminal lawyer is attempting to determine who suffered losses a result of the massive scheme to defraud. According to Rothstein's defense team, many of the individuals suffered losses as a result of feeder funds and other unnamed individuals. According to his Miami criminal defense attorney, 'Rothstein dealt with only a very limited number of people. He is surprised at the amount of people who actually claimed to be investors." The comments make sense in light of the fact that court documents and prosecutors refer to co-conspirators as being involved in the "Ponzi" scheme.

Rothstein's lawyer told a federal judge that his client intends on pleading guilty. He essentially told reporters the same thing outside of the courthouse. Rothstein's defense team has alluded to the fact that Rothstein intends on repaying all legitimate investors who lost money as a result of the scheme. There are other investors and investment funds that are alleged to have known of the "Ponzi" scheme and will not be entitled to restitution. They may also find their names added to the indictment.

To date, Rothstein has not spoken with federal investigators about the case. His Miami criminal attorney has acted as an intermediary in providing information to the authorities. The information provided thus far has been limited to Rothstein's involvement and does not allege any wrongdoing by co-conspirators. Rothstein is set to enter a change of plea on January 27, 2009, however, the hearing may be delayed if a plea agreement is not consummated between the government and the defense. An agreement may not be reached of Rothstein decides not to provide information regarding co-conspirators. Another delay in the change of plea maybe caused by a signed court order which will require the court to hold McLain hearing to determine if Rothstein's defense lawyer is the subject of related criminal investigation. The lawyer was previously employed by Rothstein's firm.

Eventually, Rothstein will enter a guilty plea. Once he has changed his plea, a sentencing date will be set in three or four months. During that time, the federal probation department will conduct a pre-sentence investigation which will include a background history of the defendant. Additionally, the probation department will calculate the potential sentence using the federal sentencing guidelines. The report will be provided the judge, the government and the defense. The defense and government will have the opportunity to file objections prior to the sentencing hearing in federal court. Rothstein could possibly receive approximately twenty years like Mark Dreier, the New York lawyer who sold false investment notes and stole from clients. The biggest problem Rothstein faces other than the charges themself, is the fact that he forged judges signatures and created fake court regarding civil court settlements and sold them to investors.

Rothstein Guilty Plea on the Horizon, Law.com, January 7, 2010.

A federal magistrate judge held a man without bond on a massive Miami Medicare fraud case. Ihosvany Marquez appeared at his bond hearing this morning for charges stemming from a $55 million Medicare fraud scheme. The indictment alleges that Marquez billed the federal healthcare program for falsified HIV and cancer treatments allegedly performed at seven healthcare clinics in Miami and Orlando. Marquez and his co-defendants received approximately $22 million from Medicare between 2005 and 2007. A Miami criminal lawyer appeared on behalf of Marquez and entered a not guilty plea. The attorney argued for a bond. The magistrate decided and ordered pre-trial detention based on the assertions made by the U.S. Attorney's Office that Marquez was a substantial flight risk.

Marquez is alleged to have spent millions of dollars on expensive automobiles for himself, his wife and other family members. He also purchased in excess of $500,000 in jewelry and spent another million on thoroughbred race horses. Marquez was indicted along with his business partner Michel De Jesus Huarte. Huarte previously entered a guilty plea and is scheduled to appear later this month in federal court for sentencing. The large scale Medicare fraud was mostly consummated in the six Miami clinics. One of the clinics was called "Tender Loving Care".

Huarte and Marquez are also charged with money laundering by using shell companies such as Babalu Telemarketing and Madreagua Construction to name a couple of them. The Defendants are accused of billing Medicare for infusion treatments that were supposedly provided to patients, but were neither prescribed nor administered. They are also alleged to have hired Cuban immigrants to act as clinic owners. Court records indicate that the defendants advised the "straw owners" to flee to Cuba if they became involved in a federal investigation or were arrested. Two of the purported owners have allegedly already fled the jurisdiction.

As Medicare shut down the Marquez/Huarte operation, Huarte became involved with Ramon Fonseca in another Medicare fraud conspiracy. They owned and operated another 30 clinics in Miami and billed out approximately $46 million to private insurers operating under the umbrella of Medicare. Medicare paid out approximately $9 million to the clinics owned an operated by Huerta and Fonseca. If you have been contacted by federal law enforcement officer regarding healthcare fraud, contact an experienced Miami Medicare fraud criminal lawyer experienced in defending cases in federal court to protect your rights.

Suspect in $55 Million Miami-Dade Medicare Fraud Held Without Bail, The Miami Herald, January 4, 2009.