Fraud

August 24, 2021

Chicago Physicians Facing Narcotics Charges

by Law Offices of David L. Freidberg, P.C.

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

August 20, 2021

Chicago Pharmacist Accused of Selling Vax Cards on eBay

by Law Offices of David L. Freidberg, P.C.

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.”

June 30, 2021

Chicago Alderman Facing Bribery Charges

by Law Offices of David L. Freidberg, P.C.

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?

April 14, 2021

Chicago Tax Preparer Charged With COVID Relief Fraud

by Law Offices of David L. Freidberg, P.C.

The federal government considers fraud of public funds earmarked from natural disaster relief programs a particularly black-hearted crime. A Chicago tax preparer is facing charges that he helped his clients obtain millions in coronavirus relief aid under The CARES Act. While helping your clients secure loans is not in itself a federal crime, helping them secure loans under false pretenses is. Hadi Isbaih is charged with four counts of wire fraud. An indictment returned recently confirmed the charges.

The government reinforced its commitment to prosecute those who steal from public coffers and deprive those who need the money of much-needed relief.

Evaluating the Accusations

April 9, 2021

Former State Senator Charged With Tax Evasion

by Law Offices of David L. Freidberg, P.C.

Annazette Collins has been charged with failing to report income and underreporting income after a grand jury decided to indict her just recently. Collins is facing a five-count indictment related to her political consulting firm. The federal government accused Collins of willfully attempting to hide income streams for the purpose of avoiding taxes.

The charges stem from a bribery probe involving embattled former Congressman Michael Madigan. Collins is the latest collateral damage in the corruption probe that is still ongoing. Collins left office in 2013 as a Democrat. She was then hired by Commonwealth Edison (ComEd) after her retirement. An attorney for Collins characterized the charges as a “blatant attempt to squeeze Collins” for information concerning the ComEd case. That is probably true. It is unlikely that Collins would have faced these charges (at least now) if there was not a more important case that might involve her.

Collins is not the only former Congressperson facing charges related to ComEd. Recently, Ed Acevedo and his three sons pleaded not guilty in relation to similar charges. If convicted, Collins could spend three years behind bars.

January 27, 2021

Chicago Man Facing Charges of Diverting Relief Checks

by Law Offices of David L. Freidberg, P.C.

For as many government entitlement programs as there are, there are a number of ways to commit fraud. People commit fraud against the unemployment program, Medicaid, Medicare, food stamps, social security, and more. Aldermen commit fraud against government initiatives and then funnel the money to their own personal coffers. Now, a Chicago man is facing charges that he conspired with a post office employee to steal economic relief checks from the mail and cash them.

Akeem Kosoko, 26, is facing one count of conspiracy to steal mail and government funds, three counts of embezzlement of government property, and three counts of receipt of stolen mail. The indictment says that Kosoko conspired with his brother, who was a postal worker, who is also facing a conspiracy charge. The defendants are facing federal charges.

Theft of Government Funds

January 15, 2021

Chicago Area Businessman Charged With Defrauding COVID Relief Fund

by Law Offices of David L. Freidberg, P.C.

A Chicago-area businessman has been indicted on federal charges for making fraudulent claims to the government in order to bilk COVID relief money from the fund. Carlos Smith, 56, of Park Forest, Illinois is charged with fraudulently obtaining $420,000 in small business loans from the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL). Both programs were created under the CARES Act. Smith has been charged with two counts of wire fraud, one count of making false statements to a financial institution, and one count of money laundering.

The Alleged Fraud

Federal investigators say that Smith applied for a $270,000 loan from the PPP for his company CLS Financial. In the loan application documents, Smith indicated that his company had 61 employees and an average monthly payroll of $108,000. But the company had no employees at all, let alone payroll. Smith also lied about having been convicted of a felony in the past.

January 6, 2021

Woman Steals $2.3 Million From Employer to Fund Side Gig

by Law Offices of David L. Freidberg, P.C.

This is America, where everyone has a job and everyone has a dream. The idea is to work the job until you can make the dream come true. That happened for one Illinois woman, but federal prosecutors say that the money she used to fund her dream was embezzled from her place of employment. She is now facing federal charges for the theft of $2.3 million.

72-year-old Mildred Crowley is accused of embezzling money from her employer to fund her horse farm. She is not the first to be charged with such a crime. In fact, horse farming is rife with companies that have funded their coffers on the ill-gotten gains of fraud and theft.

Criminal Enterprises: Horse Breeding and Horse Farms

December 9, 2020

G Herbo Facing Federal Fraud Charges

by Law Offices of David L. Freidberg, P.C.

Chicago rapper G Herbo has been charged in Massachusetts for using stolen identities to make illegal purchases. Purchases included trips on personal jets and designer puppies, according to the complaint. While rappers are not known for their white-collar prosecutions, identity theft is a major business in the criminal underworld. The 25-year-old Herbert Wright III is charged with conspiracy to commit fraud and aggravated identity theft. The following will take a look at what prosecutions for these crimes look like.

Who is G Herbo?

G Herbo was recently on The Tonight Show. He grew up in the South Side of Chicago, a neighborhood known as “Terror Town.” His frank lyrics about growing up in Chicago catapulted G Herbo into the forefront of the rap world. Makes you wonder why a guy like that would need to steal identities to fund his purchases of designer puppies and personal jet rides.

November 18, 2020

Former Escort Accused of COVID Relief Scheme

by Law Offices of David L. Freidberg, P.C.

Crystal Lundberg told a federal judge that getting charged with wire fraud had changed her life for the better. She said that she found legitimate employment and was growing as a person. But federal authorities have charged Lundberg in another scheme to defraud. This time, the victim was the federal government that disbursed $150,000 in loans to Lundberg’s business to keep her payroll going.

Federal prosecutors now say Lundberg took the loans that were earmarked for COVID relief and spent the money on vacations, legal bills, and other personal expenditures while simultaneously delaying her surrender date to the Bureau of Prisons.

Other problems for Lundberg include Facebook posts she made indicating that her plan was to spend the federal relief money until the feds came and arrested her. Obviously, federal authorities believe that Lundberg wanted one last hurrah before serving her prison sentence.