COVID-19 Update: We Are Open 24/7 to Service Current and New Clients.

Articles Posted in Fraud

Most folks do not understand how our economic system really works. What is a bank? What is a security? What is a corporation? Folks who have general ideas about what the concepts mean tend to be misinformed. As an example, most folks believe that banks use deposits to issue loans. They do not. Banks can fabricate loans ex-nihilo so long as they pay interest on the loans they create. Once the loan has been issued, the bank issues a deposit to the borrower and creates a liability in its own ledger. If all goes well, the bank makes money because the interest paid by the borrower is greater than that charged by the Federal Reserve. 

So, what if I created a bank just to issue worthless loans to my pals? Well, then you end up in prison. The system is actually quite easy to abuse, but the thing you have to understand is that they will catch up with you eventually. In this case, the bank was closed after accruing $66 million in non-performing loans issued to bank insiders. The government, of course, believes that they used the bank apparatus to fabricate money they had no intention of ever repaying. 

The charges

Elizabeth Holmes is accused of lying to investors and committing fraud. The state believes that she told investors that her company’s medical device would be able to replace complex labs that perform bloodwork. However, the device did not work as advertised, cost investors millions, and tanked the company for which she was CEO. The state accuses her of knowingly providing investors with false or overstated information and omitting information concerning the results of her company’s product. 

Analyzing her defense strategy

The biggest problem Holmes faces right now is that the prosecution has produced a cavalcade of witnesses who will testify that Holmes made specific statements concerning the quality of the device for the purpose of getting more money for her company. The witnesses will testify that Holmes overstated the efficacy of the device to get more capital for her company. However, the device never worked. 

Buried behind the headlines of high-profile criminal cases involving pedophile islands, modern lynchings, and public shootings, is another high-profile trial with incredibly high stakes coming out of California. However, because Elizabeth Holmes did not shoot three people, lynch a Black man, or organize the largest sex crime racket in human history, her trial is not nearly as famous as the other three. Luckily for Holmes, her trial just is not as interesting. Yet the stakes are incredibly high for the founder of Theranos who is accused of defrauding investors by overstating the functionality of a blood-testing device.

The device was believed to be a revolutionary step forward in the medical industry, but Holmes is accused of failing to disclose major shortcomings in the device to investors. For the prosecution to successfully convict Holmes, they must prove that Holmes knew the device was defective and still overstated what it could do. If true, they could convict Holmes on charges of wire fraud which carries a potential sentence of 20 years. Holmes would also be required to make restitution to investors. There is a lot of money in play, and stakeholders will be closely watching the criminal case to see how strong their civil cases are.

Understanding the Charges

Necromancy is the act of wielding the dead against the living. Necromancers have the power to manipulate souls or bodies and use them at their will. While necromancy is not real and is more the stuff of fantasy novels, there are some who actually perform necromancy for personal gain. For example, using the social security numbers of dead Americans to file fraudulent tax returns and gain access to stimulus payments that you’re not entitled to is using the dead to for personal gain and profit. 

Now, a 50-year-old Chicago woman is facing 10 counts of wire fraud, six counts of aggravated identity theft, three counts of making false statements to the SBA, and one other count of possessing forged documents with the intent to defraud. However, she is facing zero counts of tax necromancy.

Tax Necromancy

Melvin Ely and Will Bynum, both of whom are former NBA players from the Chicago area, are facing fraud charges related to a scheme involving the NBA players’ health care program. The pair will face charges in a federal Manhattan court where the indictment was unsealed. 

The indictment names 19 defendants, 18 of whom are former NBA players. The former players are accused of defrauding the Health and Welfare program of nearly $4 million. The fraud was masterminded by former New Jersey Nets star Terrence Williams. Williams was paid kickbacks of about $250,000 to actuate the fraud, while players stole a reported $2.5 in personal proceeds.

While the story by now has made it to major airwaves, details of the prosecution are as of yet unknown. The defendants are facing charges of aggravated identity theft, health care fraud, and wire fraud. 

Federal authorities have announced the arrest of two individuals who have been accused of embezzling vaccine cards from their place of employment for sale elsewhere. The first defendant is a registered nurse who stole vaccine cards from her employer at the VA Hospital. Another defendant is facing charges that he purchased counterfeit vaccine cards and attempted to sell them on Facebook. 

The nurse is facing charges of theft of government property and embezzlement related to a health care benefit program. The Facebook guy is facing charges for trafficking in counterfeit goods and fraud related to official government documents. The charges have been filed and prosecuted by the U.S. State Attorney’s office meaning that both defendants will face federal charges for their role in distributing fraudulent vaccine cards. 

The government does not take kindly to those defrauding the system. They contend such efforts place everyone at risk and undermine the efforts of health officials.

A Chicago woman is facing federal fraud charges after posing as the relative of young gun violence victims. In one case, she posed as the relative of a 7-year-old boy who was fatally shot in 2015. The 50-year-old woman posed as the boy’s aunt when she attempted to acquire the boy’s death certificate in 2019 and then filed a fraudulent tax return in the dead boy’s name. 

The same defendant was given an 11-year sentence on similar charges of aggravated identity theft and wire fraud. The woman was on supervised release when she was arrested for this crime, according to prosecutors.

Prosecutors described the woman as a career con-artist who used her considerable innate abilities to steal from others as opposed to doing something useful to society. The fraud was discovered by an employee at Cook County Vital Records after he noticed that the same woman put in a request for four death certificates on the same day. The woman claimed to be the sister of each of the deceased, but each deceased individual had a different name. A check of the records showed that the woman had placed requests for 37 death certificates all in 2019 alone. Each of the individuals whose birth certificates she requested were recent homicide victims—mostly children. She was able to recover earned income and child tax credits on the deceased children, earning a passive income from her Southside home. The woman was also able to recover several COVID stimulus checks while those were still being issued. 

Two Chicago physicians are charged with prescribing opioids to patients who had no legitimate need of them, according to a federal indictment announced on the Department of Justice’s website. According to the charges, the two prescribed high-dose narcotics such as fentanyl and oxycodone to patients without conducting a meaningful examination or medical tests. The doctors are accused of knowingly dispensing the drugs to patients whom they knew for a fact had no legitimate medical need for high-powered opioids.

Further, the two physicians are accused of colluding after one of the two named in the indictment lost his license to prescribe medicine. That physician used another physician to fill prescriptions, and now they are both going to be charged with fraud, trafficking controlled substances, and more. Another element of the crime is the fact that the physicians sought Medicaid and Medicare reimbursement for the improper prescriptions. 

The Opioid Crisis

eBay has become a haven for sports card enthusiasts and other collectors acting as a veritable stock exchange for valuable collectibles. However, not everything that happens on eBay is legal. For example, if you place a bid on your own item or bid up items you have no intention of purchasing, you are committing a felony known as shill bidding. As another example, if you try to sell vaccination cards on eBay, you can be charged with 12 counts of stealing government property.

Chicago pharmacist Tangtang Zhao sold 125 vaccination cards to 11 buyers for about $10 per card. While not quite as lucrative as a Mantle rookie, Zhao pulled in roughly $1,000 from the fraud and will now face charges before a federal magistrate.

When discussing the charges, federal authorities were appalled at the low price Zhao got for the vaccination cards. According to a spokesperson for the FBI, “To put such a small price on the safety of our nation is not only an insult to those who are doing their part in the fight to stop COVID-19, but a federal crime with serious consequences.”

Chicago Alderman Carrie Austin and her chief of staff are facing federal criminal charges alleging bribery. According to the charges, Austin brokered a deal for a multi-unit real estate development contract. Federal authorities believe that the developer offered Austin home improvements to grease her wheels. Her chief of staff was also offered home improvements. Between them, they acquired new kitchen cabinets, granite countertops, bathroom tiling, new sump pumps, and a brand new HVAC system.

The federal government looks unkindly on businesses offering free services to elected officials, especially when that business went on to win a major contract that was granted with the help of the gift receiver. Austin is the third Chicago alderman to face indictment and the second charged this year. 

On what basis are these charges filed?

Contact Information