covid-19

March 24, 2023

Chicago COVID Testing Lab and Owner Indicted on $83M Fraud

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

Bilking government agencies of publicly disbursed entitlements is now a national pastime, and when COVID struck, it only got worse. As Uncle Sam began rolling out one relief program after another, several bad actors moved into place to see how much of that money they could get without doing anything in return. These lawsuits are still being filed as the forensic number-crunchers at the IRS track down the information provided by individual applicants. In this case, briefly reviewing the records resulted in the numbers not adding up, and now one individual is facing charges for $83 million in losses.

The laboratory’s co-owner has been charged with 10 counts of wire fraud and one count of stealing government funds.

How Did the Fraud Work?

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

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.

June 19, 2020

Chicago Businessman Faces Federal COVID-19 Fraud Charges

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

Rahul Shah became the first person in the Chicago area with the dubious distinction of defrauding the federal government for coronavirus relief funds. Shah applied for a $441,000 federal loan earmarked for small business relief during the coronavirus pandemic.

When confronted concerning the suspicious forms used to apply for the loan, Shah said he had workers in India file the forms for him. Later, however, he reversed course and admitted that the loan was keeping his business afloat. Shah is charged with bank fraud and making false statements to a financial institution.

The Paycheck Protection Program

April 22, 2020

Some Detainees Get Released From Jail Amid COVID-19 Fears

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

Those who are in prison awaiting trial for crimes for which they have been accused are considered innocent until proven guilty. Yet the law has a vested interest in holding some detainees until trial—especially if they are considered either flight risks or a danger to the community.

Despite that, one Chicago criminal defense attorney was able to get over a dozen Chicago inmates released amid the COVID-19 epidemic.

Prisons and Jails are Responsible for Inmate Safety

March 27, 2020

Sick People Could be Fined for Going Outside

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

Each state has its own laws when dealing with quarantine orders. There are also federal laws that lay out penalties for violating a quarantine order. These laws vary widely from one state to another. In some places, like Florida, you can be charged with a misdemeanor and face six months in county jail.

The City of Chicago and the State of Illinois have their own measures in place for meting out punishment for those who violate a quarantine order. In this article, we will take a look at what the law says about staying indoors during this difficult period.

All Sick People: Shelter in Place

March 25, 2020

Missouri Man Charged with Making Terror Threat in Grocery Store

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

In the age of the coronavirus, crime still exists even as the courts are mostly shut down across the United States and especially here in Illinois. In fact, throughout much of the U.S., the criminal justice system is on pause. However, in Missouri, one man has been charged with making terrorist threats after he videoed himself licking deodorant in a Missouri Walmart.

Cody Lee Pfister was arrested by the Warrenton police department after posting the video to social media on March 11. The Warren County Prosecutor’s Office has charged him with making terrorist threats in the second degree. The allegations read something like: Pfister knowingly caused a false belief or fear that a condition or danger was present that involved a danger to life. He did this with reckless disregard of the risk of stirring panic, evacuation, quarantine, or closure.

Making a Terrorist Threat in the Second-Degree