Articles Posted in Fraud

maarten-van-den-heuvel-KSQgzzn3dW0-unsplash-copy-300x200Chicago police have arrested and charged Alicia Newby who allegedly stole the identities of several people, purchased thousands of dollars of merchandise online, and had the merchandise mailed to dummy addresses. One of the people whose identities she stole was Taraji P. Henson, who is a star in the hit television series Empire. 

Alicia Newby is also the mother of six and has another child on the way. Newby is being represented by a court-appointed attorney. She is being charged with one count of continuing a financial crime enterprise. She has been released on $10,000 signature bail but is being monitored electronically and has been forbidden from contacting either victims of her alleged crimes or witnesses whom the prosecution intends to call.

Prosecutors Say Newby Managed to Hack Henson’s Email

robert-hickerson-38585-copy-200x300Yet another Chicago Alderman is headed to prison after being handed a one-year sentence for defrauding a personal charity. According to prosecutors, Willie Cochran used his charitable fund to pay for gambling trips, expensive meals, and accessories for his Mercedes. Cochran pleaded guilty to one count of wire fraud, which ended his City Council position. 

Cochran’s lawyers hoped to secure probation for their client with six months of house arrest. Instead, Cochran will spend the next year behind bars. 

Since 1972, 30 Chicago Aldermen have been convicted of crimes and several more have been charged. Cochrane, who was charged by federal authorities, will spend the next year in federal prison along with several other Chicago Aldermen who were convicted in a federal sting aimed at uprooting corruption in the Chicago City Council. These include “Fast Eddie” Vrdolyak and William Beavers who were both convicted after leaving the City Council and most recently, Edward Burke who is accused of using his position to force prospective developers to use his tax law firm to secure building permits. Another Alderman, Carrie Austin, is under investigation for the suspicious purchase and construction of a Chicago home. 

rawpixel-1055781-unsplash-1-300x201While charges of fraud are not exactly rare when it comes to political candidates, Chicago Alderman Proco “Joe” Moreno stands accused of filing a false police report to defraud his insurance company. This is generally not the kind of fraud charges that politicians face. Nonetheless, it is still illegal.

Authorities have charged Moreno with fraud and obstruction of justice after reporting his Audi A6 stolen. After Moreno had reported the car stolen, his girlfriend, Liliya Hrabar was pulled over by police while driving it. Hrabar herself was charged with criminal trespass. During the interrogation, Hrabar produced text messages indicating that Moreno had willingly lent her the car one day prior to filing the police report. The charges against Hrabar were subsequently dropped and Moreno was charged with filing a false police report, obstruction of justice, disorderly conduct, and insurance fraud.

According to police, Moreno attempted to file a $30,000 claim with his insurance company to replace the car. The police contacted the insurance company and found that he had given differing accounts of the theft. After Hrabar was caught, Moreno claimed that he had loaned the vehicle to her but could not get it back. Moreno then claimed that because she was a single mom, he just wanted to help her out and that the road to Hell is often paved with good intentions. For that reason, he reported it stolen.

filios-sazeides-540219-unsplash-copy-200x300Did Governor Pritzker remove toilets from an unoccupied mansion next door to his own personal residence in order to defraud taxpayers of over $300,000? Federal authorities sure seem to think so. Pritzker has been under federal investigation since October for the toilet-removal scheme, but did not initially appear to be implicated in the scandal. Adding to the intrigue is the question of whether or not the report was leaked to weaken Pritzker’s position during a critical time in his office. Here, we will discuss the actual crime of which Pritzker is being accused.

Was Pritzker Involved in the Toilet Removal?

The IRS does not necessarily care if you went out of your way to commit a crime. Indeed, many folks who never committed a crime in their lives are held accountable for text debts that are owed to the IRS. How? The IRS is not going to look for what you did or did not do. The IRS is going to look at whether or not you benefited from what was done.

ales-nesetril-1070103-unsplash-copy-300x199On January 17, a man from Winnetka was given a five-year federal prison sentence for fraud.

50-year-old Thomas Lindstrom led a scheme that cost his customers almost $14 million dollars in losses. As a result, the Northfield-based company that employed him was forced to close its doors.

The former options trader at the Chicago Board of Trade was given a prison term that was approximately half the recommended federal guideline. His lawyer argued that Lindstrom committed fraud because of his fear of failure and to maintain the lavish lifestyle he was living in the North Shore.

hush-naidoo-382152-copy-300x200The government is trying to review and reform the healthcare system, but there are still some people in Chicago who are committing Medicaid fraud. There are many fraud prevention measures that have been put in place. Yet, there are people who work to see how they can deceive the government.

This is a serious offense that can lead to serious jail time. Recently, Santila Terry, a 45-year-old woman who lives in Chicago, was facing charges for committing both identity and Medicaid fraud. The total estimated loss in the case was almost $1 million. This case is typical in terms of how frauds of that nature are committed.

A service provider bills the government for services that were never delivered right up until they are discovered. According to reports from the Attorney General, Santila was claiming to provide speech therapy to people who did not exist. Another part of the case was identity fraud. Special Therapy Care Chartered used the personal information and Medicaid service provider ID of a previous employee to falsely bill the government.

aaron-burden-149693-copy-300x225Although Chicago would like to make itself a friendly place for businesses, there are some types of businesses that will never be welcomed here. One of them is telemarketing fraud, an infringement on consumer protection laws. This offense has gotten the attention of legislative bodies and the wider legal community because it affects communities in a big way. A particularly resourceful criminal can defraud a whole segment of the community and leave them in difficult circumstances. It is for this reason that the offense is recognized as being serious and attracts prosecutorial interest whenever the facts are proven. Underpinning the law is the expectation that businesses will follow a code of ethics. Unfortunately, there are some industries that do not abide by such a code.

The self-regulation model has failed in a world of cutthroat competition. Those who play by the rules end up being priced out of the market whilst those who are taking consumers for a ride are given an expressway to seemingly insurmountable success. The law is clear about the obligations to sell in an honest manner, regardless of the temptation to take competition to its zenith. The victims are typically trusting and vulnerable. These have always been aggravating features in virtually any crime that you can think of in Chicago. The courts have continued the tradition of punishing those offenders who target the most vulnerable.

Reporting and Gathering Evidence

markus-spiske-153537-200x300The internet is a mixed blessing from a legal point of view. On one hand, it can open up opportunities for trade beyond anything that we have ever seen. On the other hand, it opens up the possibility for some modern crimes such as wire fraud in Chicago. It is important to note that this is a federal offense, even if the local law enforcement agencies in Chicago may be involved in the prosecution process. A conviction can lead to significant fines and a long term of imprisonment (see the Alan Gold case). The courts respond to public outcries about white collar crime defendants who are able to get away with large scale offenses and yet the judges are limited by sentencing guidelines from imposing the harshest terms of imprisonment.

Special circumstances apply if the crime is committed against a financial institution, thereby denting public confidence in the system. In such cases, the defendant may be sent to jail for up to 30 years. The lengthy investigative process has sometimes been associated with an enhanced flight risk. Therefore; the defending attorney will have to address issues of bail quite early on. Then comes the long investigative process during which the facts themselves might appear to be overwhelming the case. The prosecutor will be able to ask for a number of documents and witness statements under court order. The defense will also ask for documents to examine substantive and procedural defects in the prosecution’s case.

Moving to Discovery

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The city of Chicago actively pursues those it believes to be guilty of corporate fraud. It is an offense that has the potential to affect many citizens as well as provoking the interest of federal agents. The complexity of such cases means that the use of a suitably qualified defense attorney is important to any defendant. The multiplicity of victims and perpetrators can make it difficult to decipher a single line of defense. For example, the whistleblowers may also become potential victims. The case management also incorporates a lot of research, particularly of a technical nature. The law as it stands calls for a high level of specificity before the charge can stick. That means identifying not only the defendant but also the modus operandi.

Intent is an important indicator of guilt, and its absence can make a case collapse. That is why the defense attorney will often try to portray his or her client as being well-meaning but rather incompetent. By contrast, the prosecutor will often seek to portray the defendant as being calculating, cunning, and sophisticated. Needless to say, the level of sophistication is critical in determining the severity of the punishment at conviction. The courts will consider the victim impact statements, which might be diverse depending on who was affected by the alleged crime.

Applying the Complex Strictures of the Law

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Healthcare fraud has been raised as a matter of concern not only in Chicago but in the country as a whole. It raises the costs of providing healthcare and also means that vulnerable people who need support are left behind. The cases in this category are unique because they often provide a corporate entity that is tasked with the role of distributing healthcare services. The large scale Medicare fraud occurs within the modalities of overcharging the state or alternatively charging it for services that were never delivered. In either case, the consequences for those involved can be dire. They could lose the license to practice and may be banned from government contracts for a considerable period of time.

Over time, a number of fairly consistent patterns of offending have emerged. First of all, there are three main modalities including Medicare Fraud, Medicaid Fraud, and Kickbacks. Each of these modalities are united by deceit and illegal benefits. For example, overbilling has been a persistent problem in Medicaid and Medicare programs, despite the stringent protective measures that were adopted by Congress and local legislatures. In some cases, the service provider is so overwhelmed by paperwork and bureaucracy that they end up making inadvertent mistakes. Obviously the courts will take into consideration both the act and the intention behind it before passing judgement.

Damaging the Integrity of the System

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