Recently in fraud Category
LOS ANGELES -- Two San Gabriel Valley residents are accused of leading a mortgage fraud ring that stole $2.3 million from CitiMortage and MetLife Bank, authorities announced Wednesday.
Gerard Bueno, 35, of La Habra Heights and Jesus Vega Jr., 28, of Hacienda Heights are accused of leading the fraud ring, which also included seven others, Los Angeles County sheriff's Detective Christopher Derry said in a written statement.
One New York man and six other California residents were arrested in connection with the scheme, Derry said, including George Kent, 66, of La Mirada.
Between 2007 and 2009, Bueno ran an organization he called Pres Mex, Inc., while Vega ran a group called JVJ, Inc., authorities said.
The two are accused of fraudulently obtaining titles to six Los Angeles County homes through "various means," the detective said.
"They then obtained loans against the properties in the names of straw buyers, two of which were identity theft victims, and in effect 'sold' the properties to themselves at inflated prices that they themselves set," Derry said.
"Bueno and Vega Jr. recruited friends, family members and acquaintances to act as straw buyers, provided stolen identities, provided false bank account verifications, provided false employment information, and notarized documents when signers were not present," he added. "Bueno and Vega Jr. split the profits from the fraudulent sales, and paid the other suspects for the aforementioned acts. All six fraudulently obtained loans that went into default."
Investigators began rounding up the nine suspects April 12 and arrested the final suspect Wednesday, officials said. The suspect jailed in New York was awaiting extradition to California.
The nine suspects are charged with a variety of crimes including grand theft, identity theft, forgery and procuring or offering false or forged instruments, Derry said.
The investigation was handled by the sheriff's Commercial Crimes Bureau Real Estate Fraud Team and the U.S. Department of Housing and Development.
LAS VEGAS -- A San Gabriel man faces up to 360 years in prison and $4.5 million in fines for defrauding La Vegas casinos out of more than $1 million, authorities said.
De Rong Shang, also known as Jason Shang, 50, was convicted Tuesday in federal court of 1 count of conspiracy to commit mail fraud and 17 counts of mail fraud, U.S. Attorney's officials said in a written statement. He was ordered to return to court for sentencing July 16.
Shang, along with co-defendant Yuli Eaton, 47, of Redlands, who pleaded guilty before trial, used recruits to obtain casino credit marker in the scam, officials said.
Shang would give the recruits money to open bank accounts, which they would in turn use to obtain credit from casinos, according to the U.S. Attorney's Office. The recruits then played baccarat, using a technique called "rolling the chips" to make it look as if they were losing money while, in reality, they were actually just hiding them and transferring them to co-conspirators.
"In actuality, they gave the chips to Shang, who cashed them in," according to the U.S. Attorney's Office statement. "The recruits then left Nevada or the country, and were paid a small percentage of the total amount of credit under their names, generally $300 per $10,000 line of credit."
When the casinos tried to collect the money they were owed from the recruits' bank accounts, officials said, it was discovered the accounts had been either drained or closed.
Shang was due back in court for sentencing July 16.
A Downey-based cancer center servicing Los Angeles and Orange counties is the target of an investigation by the FBI and federal fraud investigators, authorities said.
The Oncology Institute of Hope and Innovation, housed along with other business in an office building in the 11400 block of Brookshire Avenue in Downey, was paid a visit March 15 by FBI agents and investigators from the U.S. Department of Health and Human Services Office of Inspector General, FBI spokeswoman Ari Dekofsky said Friday.
"Agents from the FBI and OIS HHS executed a federal search warrant at that location pursuant to an ongoing investigation," Dekofsky said.
No arrests resulted from the raid, she said, though she declined to comment on what investigators were looking for.
"The search warrant is sealed by the court, so we're prohibited from commenting," Dekofsky said.
Representatives of the Oncology Institute of Hope and Innovation could also not be reached for comment Friday.
Officials from the U.S. Department of Health and Human Services also could not be reached for comment Friday, however according to the agency's website, it's Office of Inspector General is responsible for combatting waste, fraud and abuse of Medicaid, Medicare and hundreds of other U.S. Department of Health and Human Services programs.
In addition to the Downey office, The Oncology Institute of Hope and Innovation has locations in Whittier, La Mirada, Montebello, Long Beach, Glendale, Anaheim, Santa Ana, Torrance and Tucson, Arizona.
LOS ANGELES -- Federal officials arrested an Arcadia wine dealer Thursday on suspicion of trying to sell $1.3 million worth of counterfeit wine and fraudulently obtaining millions of dollars in loans.
Rudy Kurniawan, 35, was arrested early Thursday in Los Angeles on suspicion of three counts of wire fraud and two counts of mail fraud U.S. Attorney's officials said in a written statement.
The alleged crimes took place between 2007 and 2012, officials said.
According to a complaint filed Thursday in federal court, Kurniawan attempted to have 162 bottles of counterfeit rare wine sold at auction in 2008 and 2012. The second transaction involved a third party as a "straw seller" because auction officials had become suspicious of Kurniawan's wares, officials said.
Additionally, officials allege that Kurniawan obtained millions of dollars in loans to fund an extravagant lifestyle by understating his personal debts and offering collateral that had already been pledged to other lenders.
The case is being prosecuted by the U.S. Attorney's Office's Complex Frauds Unit.
While awaiting trial for a fatal shooting depicted in a tattoo on his chest, detectives say a Rivera 13 gang member fraudulently obtained $30,000 in unemployment checks, with help from his family and lovers, from October 2008 to March 2010.
The money benefited not only convicted killer Anthony Garcia, 25, but also several gang members in county jail, according to Los Angeles County Sheriff's detectives.
Garcia's father, alleged gang member Juan Leonard Garcia, 47, of Pico Rivera, and Garcia's girlfriends, Cynthia Limas, 25, of Menifee and Sandra Jaimez, 45, of Downey, are now facing charges related to the scheme.
Sheriff's spokesman Capt. Mike Parker said the three were arrested Thursday and will be arraigned Monday in Whittier Superior Court.
Parker said Juan Garcia, Limas and Jaimez helped Anthony Garcia by filling out unemployment paperwork, cashing about $20,000 of the checks and depositing money in the younger Garcia's jail inmate account, as well as the accounts of his fellow gang members.
"The three conspirators helped cash $20,000 and they knew where it was going ... The co-conspirators assisted with the paperwork to get it (unemployment checks), cash it and keep getting it," Parker said.
Anthony Garcia is currently in prison serving a 65-years-to-life sentence for the Jan. 23, 2004 murder of 23-year-old John Juarez in Pico Rivera.
Detectives said Anthony Garcia had worked before his arrest as an apprentice plumber and he filed unemployment for that position.
County jail inmates aren't entitled to get unemployment benefits.
While investigating the murder case, Sheriff's Homicide Sgt. Kevin Lloyd said they became aware that Garcia was getting unemployment benefits, which he estimated came to about $1600 a month.
The checks were in Garcia's name and were sent to addresses in La Habra, Downey and Menifee.
The checks were cashed in Pico Rivera and Riverside Counties.
Homicide detectives, with the assistance of investigators from the department Major Crimes Bureau and Operations Safe Streets Bureau, investigated the case.
"Theft, drug sales, and violent crimes are an integral part of the gang culture," Lloyd said. "We will continue to go wherever gang members and their associates commit their crimes. Our goal is to reduce violence and solve crimes and that is what we are doing. This investigation is continuing."
Juan Garcia was arrested on suspicion of 13 counts of second degree burglary, conspiracy to commit grand theft, unemployment fraud and a gang enhancement. He is being held at the sheriff's Norwalk station in lieu of $960,000 bail.
Jaimez was arrested on suspicion of 10 counts of second degree burglary, conspiracy, unemployment fraud, possession of methamphetamine for sales, and a gang enhancement, according to Parker. Her bail is $600,000
Limas was arrested on suspicion of conspiracy to commit grand theft, and grand theft with a gang enhancement. Her bail is $100,000.
Booking records show the two women are in custody at the Century Regional Detention Facility in Lynwood.
Detectives haven't filed a case yet against Anthony Garcia related to the unemployment scam.
Anthony Garcia's chest tattoo not only cracked what had been a cold case murder it also helped convict him last year. Lloyd saw a picture of the tattoo in 2008 and recognized the crime scene.
The tattoo shows a helicopter shooting a Mr. Peanut in front of a liquor store.
Juarez was shot outside Mr. Ed s Liquor on Rosemead Boulevard. Detectives said Garcia's gang moniker is "Chopper" and the Mr. Peanut represents Juarez who was a Pico Nuevo gang member. Rival gang members insultingly refer to Pico Nuevo gangsters as "peanuts."
This isn't the first time that Garcia's friends and family ran afoul of the law.
His brother, his mother and three other people were arrested last year on charges related to a scheme to smuggle drugs into county jail.
Anthony Garcia allegedly hatched the idea with his brother, John, and Rivera 13 gang member, Manuel Bermudez. Gang investigators said the smuggled drugs would be sold in the jail.
Garcia's mother, Vivian, was charged with being an accessory after the fact for allegedly trying to harbor her son, John.
John Garcia allegedly helped put four golf ball-sized balloons containing heroin and methamphetamine into Bermudez's rectum.
Detectives then were tipped that Bermudez would be carrying drugs when he showed up in Norwalk Superior Court on June 10, 2010.
Detective John Clark believes Bermudez was trying to meet with Anthony Garcia at the lockup and that half of the drugs were meant for him.
That case is winding its way through the courts.
- Ruby Gonzales
PHOTOS of Juan Garcia (top), Sandra Jaimez (middle) and Cynthia Lima (bottom) courtesy of the Los Angeles County Sheriff's Department
LA HABRA -- A La Habra man accused of swindling an elderly couple out of nearly $5 million is being sought as a fugitive after skipping a hearing, authorities said.John Arthur Walthall, 55, failed to show up for a hearing in his case on June 27, FBI spokeswoman Laura Eimiller said in a written statement.
FBI agents arrested him on suspicion of multiple counts of wire fraud in 2009 in connection with the alleged scam, officials said.
"The victims, both of whom were in their late 80s, gave Walthall more than $4.7 million dollars to invest in technology aimed at finding gold in abandoned mines," Eimiller said.
"Walthall allegedly told the elderly couple that he had invested more than $3 million of his own money in more than a decade worth of research in the gold extraction process," she added.
The vast majority of the money did not go into investments for the couple, however, authorities allege.
Instead, he's accused of using the money for his own investments and expenses. According to the FBI, Walthall used the victims' money to buy gold, pay alimony and child support payments for four children, pay rent and other expenses and buy luxury items.
In addition, Walthall allegedly used the couple's money to buy two SUVs and a heavy-duty pickup truck, make a $10,000 payment to a film school and purchase a hyperbaric oxygen chamber worth about $60,000, Eimiller said.
When arrested, FBI agents found $500,000 worth of gold coins under the bed of his La Habra home.
Walthall is scheduled for trial Sept. 13.
He was ordered to appear in court June 27th for a hearing after investigators determined he was exaggerating a medical condition to delay his trial, officials said. When he didn't show up for the hearing, the FBI labeled him a fugitive.
Anyone with information is asked to call the FBI at 888-226-8443.
From City News Service:
ARCADIA -- A Taiwanese national wanted in connection with a multimillion-dollar embezzlement scheme in her homeland was arrested in Arcadia and returned to Taipei, U.S. Immigration and Customs Enforcement announced Thursday.Mei-Rung Lin, 47, who was repatriated to Taiwan on Wednesday, was the subject of a "red notice" issued by the International Crime Police Organization, better known as Interpol, according to ICE.The notice indicated Lin was named in a warrant issued in August 2000 by Taiwanese authorities, accusing her of stealing $2.15 million from a Taiwanese company, ICE reported.She was taken into custody Dec. 16 on administrative immigration violations by ICE officers responsible for identifying and arresting foreign nationals who ignore orders of deportation or have returned to the U.S. illegally after being removed, according to the agency.Lin, who arrived in the United States a decade ago, overstayed her temporary visa and was ordered deported by an immigration judge in 2008, according to ICE.Lin appealed the ruling, but last July, the Board of Immigration Appeals upheld the deportation order, leading to her removal this week.
A new wave of an old Canada-based scam in which con artists trick elderly residents out of money by claiming to be imprisoned grandchildren has been working its way through the San Gabriel Valley in recent months.
Two elderly West Covina residents and an elderly Arcadia resident have reported being conned out of more than $31,000 in January in so-called "grandparent scam," investigators said.
West Covina police Cpl. Rudy Lopez said officials are concerned this type of scam may go unreported in many cases.
"It is believed that this crime generally does not get reported because the victim is either embarrassed that they fell for the scam or they know that the chances of getting their money back is minimal," he said.
But the more victims come forward, the more clues detectives will have to work with, Arcadia police Sgt. Tom Le Veque said.
An Arcadia couple was duped out of more than $17,000 between Jan. 25 and 27 by two con artists posing as their grandson, Le Veque said.
The scammer told the husband and wife, ages 83 and 80, that his friend was in a Mexican jail for possession of marijuana and he needed bail money, he said. The con artist told the victims not to tell their children about it.
Follow-up calls came from the "grandson," as well as another man claiming to be a San Diego police sergeant who provided information on how to send money, police said.
A similar crime was reported in Arcadia on Oct. 19 in which a man was tricked into sending $7,500 to people who claimed to represent the U.S. Embassy in Spain.
The crooks told the man his grandson had been arrested and needed bail money. After complying, the man learned his grandson had never been to Spain.
Unsuccessful attempts at the scam were reported to Arcadia police around the same time.
West Covina police detectives are investigating two similar crimes reported in their city in January.
A man called an 80-year-old womanJan. 28 saying he was her grandson and had been in a drunken driving crash but the judge would drop the charges if he paid for the property damage to the other person's car, Lopez said. A second con artist posing as the grandson's lawyer convinced her to wire $4,758 to the Dominican Republic, where he claimed the victim of the crash lived.
"The victim in this case thought the caller sounded like her grandson on the phone," Lopez said.
"The victim's grandson was contacted after the money was sent," Lopez said. "He was never arrested by anyone."
A week earlier on Jan. 21, a 78-year-old woman was called by a someone claiming to be a San Diego police sergeant. The man said her grandson was in jailand needed court fees and bail money, and convinced her to wire a total of $9,450 in two installments.
She, too, later learned her grandson had not been arrested.
Authorities were looking into the similarities between the scams reported in Arcadia and West Covina.
All the phone numbers given to victims have Canadian area codes. The scammers often know the name of the grandchild they are impersonating, officials said, though it was unclear how the information was being gathered or the how the victims were being chosen.
The con artists have been known to cry and apologize for not calling more often before relating tales of woe and asking for money, Le Veque said.
"They're going to prey on emotions, the fact that maybe they'll believe it is indeed a grandson or grandchild," he said.
Though the grandparent scam has been seeing a resurgence in the San Gabriel Valley, it has been going on for years.
In October 2009, a 75-year-old Whittier man wired $2,800 to a con artist who convinced him that his nephew was ordered by a judge to pay for damages to a rental car after a traffic collision in Toronto, Canada.
He was about to send thousands of dollars more when an alert Wal-Mart employee tipped him off that he was being scammed.
Anyone who receives a call claiming a relative is in jail is advised to ask what department arrested them, then look up that agency's phone number and call to verify the story.
Officials advise not to accept a phone number from the "relative," as it will likely connect to another con artist who will pose as a police representative.
Since the con artists appear to be based outside the United States, the crimes are admittedly difficult to prosecute, investigators said. Additionally, the con artists tend to use prepaid cell phones and fraudulent names.
With solid leads, however, local authorities said they may be able to work with foreign authorities to bring the scammers to justice.
WHITTIER -- A Whittier woman is among more than 20 people accused of staging car crashes throughout the greater Los Angeles area in order to commit insurance fraud, officials announced Friday.
Nancy Carrera, 33, was arrested Jan. 6 on suspicion of insurance fraud and conspiracy and released the following day after posting $25,000 bail, according to Los Angeles County sheriff's booking records.
She is suspected of taking part in an auto insurance ring that staged, and in many cases fabricated, car crashed to bilk insurers out of money, California Department of Insurance officials said in a written statement.
The alleged ring, which officials said was led by Norberto De Jesus Rivas, 38, of Stevenson Ranch, is estimated to have defrauded insurance companies out of more than $1 million, official said.
Rivas, who is already jailed on an unrelated charge, is accused of conspiring with Albert Lee Ingram, 62, of Valencia, who owns two Los Angeles-area clinics.
Ingram is accused of providing false medical reports to bolster false insurance claims.
In addition to the 22 people already in custody in connection with the alleged fraud ring, three others are being sought, officials said.
"Fake collision claims or claims that have been inflated drives up the cost of insurance for all consumers," CDI Commissioner Dave Jones said. "Individuals who collaborate in conspiracies to commit fraud and other criminal offenses will be prosecuted to the fullest extent of the law."
LA HABRA -- A former executive with the Boys and Girls Club of La Habra was behind bars Friday on suspicion of embezzling $134,000 from the organization.Lynette Rojas, 37, of La Habra is due to be arraigned Monday in Orange County Superior Court, Orange County District Attorney's Office spokeswoman Farrah Emami said.
As an executive assistant with the Boys and Girls Club of La Habra, Rojas was responsible for both payroll funds and a the organization's finances, Emami said.
She's accused of overpaying herself, as well as stealing cash deposits between May 2008 and June 2010. She began working for the Boys and Girls Club in April 2008.
"She really violated her position of trust and authority by stealing over $100,000 from these needy children," Emami said.
La Habra police arrested Rojas Thursday, according to officials and sheriff's booking records.
She is charged with a felony count of grand theft by embezzlement and 24 counts of computer fraud, along with special allegations of stealing more than $100,000, aggravated white collar crime over $100,000, and property damage over $65,000, Orange County District Attorney's officials said in a written statement.
If convicted as charged, she faces up to 20 years in state prison.
Boys and Girls Clubs of La Habra Board of Directors President Nancy Zinberg said she and her staff were "shocked" to learn of the allegations.
"It's just a real sorry state of affairs," she said. "Nobody likes to be taken advantage of, especially when you're taking advantage of charitable funds."
Rojas was fired from her position as soon as authorities launched their investigation in September, Zinberg said.
When she appears in court Monday, officials will request a judge set her bail at $135,000, roughly equal to the amount allegedly stolen, Emami explained.
"Rojas must prove the money is from a legal and legitimate source before posting bond," according to the D.A.'s statement.
Rojas is accused of stealing nearly $25,000 by giving herself additional unauthorized pay, and another $109,000 that she was supposed to deposit into the organization's bank account, officials said.
"She is accused of attempting to hide her theft by altering the organization's cash deposit paperwork," the D.A.'s statement said. "The theft was discovered when it was determined that the cash deposit paperwork completed by Rojas was significantly more than the deposit receipts from the bank."
The case is being prosecuted by the D.A.'s Major Fraud Unit.
No programs at the Boys and Girls Clubs as La Habra were curtailed due to the alleged theft, Zinberg said, but "It certainly made us more careful."
"It was frightening when it happened," she said, "but everybody worked together, staff and board, to clean up the mess."
An auction helped recoup some of the missing funds, she said, while officials expect insurance policies to help as replace some of the missing cash as well.
To make a donation, or for more information on the Boys and Girls Clubs of La Habra, visit www.ourchildrensfuture.org, or contact the organization at 562-694-1805.
PHOTO of Lynette Rojas courtesy of the Orange County District Attorney's Office
From the Associated Press:
LONG BEACH -- A fugitive caregiver from Temple City charged with stealing $4 million from an ailing elderly woman to fund a lavish lifestyle has surrendered after two years on the lam.
A $2.5 million arrest warrant was issued in 2008 for Li Ching Liu, who was charged with abuse and robbery of a 74-year-old stroke victim. Liu, who also uses the name Susan Liu, was hired in 2002 to care for the woman, who amassed a fortune through real estate investments.
Liu, 54, surrendered Tuesday in Long Beach Superior Court with her attorney, Joseph Camarata. She pleaded not guilty and was jailed. Bail was set at $2.5 million pending an Aug. 24 hearing.
Liu, who disappeared after her adult son and her boyfriend were arrested two years ago, withheld food from the victim to make her comply while Liu drained the woman's bank accounts, police Detective Stacey Holdredge said. Liu set up more than 60 accounts at half a dozen banks and laundered more than $4 million with the help of 58-year-old boyfriend Abolfath Okhovat of Thousand Oaks and her 29-year-old son, Yun Shih of Temple City, the detective said.
Besides lavish Las Vegas gambling trips and jewelry purchases, Holdredge says the money was used to buy a Porsche sport utility vehicle and a Temple City house for Liu and her boyfriend. The money was also used to pay for Yun Shih's tuition at the University of Southern California and a BMW.
Both men are in prison after being convicted last year of financial elder abuse.
LONG BEACH -- A Temple City woman accused of stealing millions of dollars from a 74-year-old Long Beach woman who had a stroke and hired her as a caretaker remained at large Saturday, as Long Beach police asked the public for help in catching her.
Li Ching Liu, 54, of Temple City, who also goes by the name Susan Liu, allegedly "withdrew large amounts of cash" from the victim's bank accounts and even arranged the sale of a Westminster strip mall the victim once owned and relied upon for monthly income, according to the Long Beach Police Department.
The victim had amassed a personal fortune from investments in commercial real estate, until she had a stroke in February January 2002, police said.
She hired Liu to help her with daily activities, but the caretaker isolated the woman from her family, friends and business contacts and then allegedly started draining her bank accounts.
Authorities said she laundered some $4 million dollars and purchased jewelry, a Porsche SUV and a home in Temple City.
Liu's husband and son were convicted of financial elder abuse last year, but authorities have never been able to find Liu, police said.
Investigators believe Liu may be hiding in the Los Angeles area, where she may be enrolled in a nursing school or providing care to other seniors.
Liu is Chinese, 5 feet 4 inches and about 150 pounds. Police believe she has a gambling habit and frequents several casinos including Pechanga, Harrah's, the Bicycle Club and Pala.<NO1><NO>
Li Ching Liu, 54, of Temple City, who also goes by the name Susan Liu, allegedly "withdrew large amounts of cash" from the victim's bank accounts and even arranged the sale of a Westminster strip mall the victim once owned and relied upon for monthly income, according to the Long Beach Police Department.
The victim had amassed a personal fortune from investments in commercial real estate, until she had a stroke in February January 2002, police said.
She hired Liu to help her with daily activities, but the caretaker isolated the woman from her family, friends and business contacts and then allegedly started draining her bank accounts.
Authorities said she laundered some $4 million dollars and purchased jewelry, a Porsche SUV and a home in Temple City.
Liu's husband and son were convicted of financial elder abuse last year, but authorities have never been able to find Liu, police said.
Investigators believe Liu may be hiding in the Los Angeles area, where she may be enrolled in a nursing school or providing care to other seniors.
Liu is Chinese, 5 feet 4 inches and about 150 pounds. Police believe she has a gambling habit and frequents several casinos including Pechanga, Harrah's, the Bicycle Club and Pala.<NO1><NO>
LOS ANGELES -- A Diamond Bar man must repay $1.38 million and spend five years on probation for failing to pay workers' compensation insurance for employees at his nurse staffing agency.
Joseph Baiden, 57, will also have to pay the California Department of Insurance $110,000 to cover the cost of the investigation, Los Angeles County District Attorney's Office spokeswoman Sandi Gibbons said in a written statement.
Prosecutors say Baiden underreported the number of employees who worked for his company, Los Angeles-based Nurse Connections, Inc., leading to reduced workers' compensation payments.
He pleaded guilty to insurance fraud after the scheme was uncovered.
Judge David Horowitz sentenced Baiden on Friday. The judge ordered Baiden to be electronically monitored for the first three months of his probation. He also suspended a five-year prison sentence.
The fraud occurred between 2001 and 2007.
The investigation into Baiden began in September, 2008 after authorities received a tip.
Insurance Commissioner Steve Poizner said Baiden appeared to be living a "lavish lifestyle" with proceeds from the fraud.
Government officials seized three homes that belonged to him in Diamond Bar. They are in the 2700 block of Wagon Train Lane, the 2200 block of Rusty Pump Road and the 800 block of Sunset Place.
Officials also seized a vacant residential lot on Derringer Lane in Diamond Bar and a home on Pala Mesa Drive in Pomona.
The total value of the properties is estimated at $4 million.
Joseph Baiden, 57, will also have to pay the California Department of Insurance $110,000 to cover the cost of the investigation, Los Angeles County District Attorney's Office spokeswoman Sandi Gibbons said in a written statement.
Prosecutors say Baiden underreported the number of employees who worked for his company, Los Angeles-based Nurse Connections, Inc., leading to reduced workers' compensation payments.
He pleaded guilty to insurance fraud after the scheme was uncovered.
Judge David Horowitz sentenced Baiden on Friday. The judge ordered Baiden to be electronically monitored for the first three months of his probation. He also suspended a five-year prison sentence.
The fraud occurred between 2001 and 2007.
The investigation into Baiden began in September, 2008 after authorities received a tip.
Insurance Commissioner Steve Poizner said Baiden appeared to be living a "lavish lifestyle" with proceeds from the fraud.
Government officials seized three homes that belonged to him in Diamond Bar. They are in the 2700 block of Wagon Train Lane, the 2200 block of Rusty Pump Road and the 800 block of Sunset Place.
Officials also seized a vacant residential lot on Derringer Lane in Diamond Bar and a home on Pala Mesa Drive in Pomona.
The total value of the properties is estimated at $4 million.
A Pasadena man who runs an Orange County medical clinic has agreed to plead guilty to five counts of health insurance fraud, authorities said.
Dr. Glen Justice, 65, filed the plea agreement Wednesday in federal court in Los Angeles, Assistant U.S. Attorney Jeannie Joseph said.
He stands accused of billing Medicare, as well as other private and publicly funded health insurance companies, for $400,000 to $1 million worth of injectable cancer drugs he never administered, Joseph said. He is also charged with overbilling for drugs he did actually give to patients.
As a doctor, the prosecutor said, Justice had a duty to both his patients and the health insurance companies he did business with.
"For both of those reasons, he was in a position of trust," he said.
The alleged wrongdoing took place between 2004 and October of 2009 at the Pacific Coast Hematology/Oncology Medical Group in Fountain Valley, which Justice owns and operates, U.S. Department of Justice officials said in a written statement.
Justice was arrested in late 2009 and appeared to be continuing the scheme, officials said, even though staff members at his clinic had raised concerns about his billing practices and authorities had carried out a search warrant at his office in November of 2006.
Justice is due back in federal court for arraignment May 3, Joseph said. After that, a sentencing hearing will be scheduled.
Once convicted, she added, it will be up to the California Medical Board to determine if the conviction will affect Justice's license to practice medicine.
He faces a maximum sentence of 50 years in federal prison, fines of up to $1.25 million and may be ordered to pay up to $1 million in restitution, according to court documents.
"No pun intended," Joseph said, "we look forward to justice being served."
Dr. Glen Justice, 65, filed the plea agreement Wednesday in federal court in Los Angeles, Assistant U.S. Attorney Jeannie Joseph said.
He stands accused of billing Medicare, as well as other private and publicly funded health insurance companies, for $400,000 to $1 million worth of injectable cancer drugs he never administered, Joseph said. He is also charged with overbilling for drugs he did actually give to patients.
As a doctor, the prosecutor said, Justice had a duty to both his patients and the health insurance companies he did business with.
"For both of those reasons, he was in a position of trust," he said.
The alleged wrongdoing took place between 2004 and October of 2009 at the Pacific Coast Hematology/Oncology Medical Group in Fountain Valley, which Justice owns and operates, U.S. Department of Justice officials said in a written statement.
Justice was arrested in late 2009 and appeared to be continuing the scheme, officials said, even though staff members at his clinic had raised concerns about his billing practices and authorities had carried out a search warrant at his office in November of 2006.
Justice is due back in federal court for arraignment May 3, Joseph said. After that, a sentencing hearing will be scheduled.
Once convicted, she added, it will be up to the California Medical Board to determine if the conviction will affect Justice's license to practice medicine.
He faces a maximum sentence of 50 years in federal prison, fines of up to $1.25 million and may be ordered to pay up to $1 million in restitution, according to court documents.
"No pun intended," Joseph said, "we look forward to justice being served."
CONTRIBUTORS
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| Frank Girardot, Metro Editor for the San Gabriel Valley Newspapers, brings you behind the yellow tape with takes on true crime, cold cases and more. This is also your forum to discuss crime, its impact on your neighborhood and how we cover it. Have any questions or tips? You can leave a comment here or e-mail Frank. |
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Brian Day is the crime reporter for the San Gabriel Valley Newspaper group. E-mail Brian. |
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