Child Custody Investigation Florida law may clarify

A custody battle in Florida between two lesbians could fuel the growing national debate over the definition of motherhood.

It also might force state lawmakers to reconsider a 19-year-old law regarding the rights of sperm and egg donors.

http://liarcatchers.com/custody_investigations.html

The women, now in their 30s and known in court papers only by their initials, were both law enforcement officers in Florida. One partner donated an egg that was fertilized and implanted in the other. That woman gave birth in 2004, nine years into their relationship.

But the Brevard County couple separated two years later, and the birth mother eventually left Florida with the child without telling her former lover. The woman who donated the egg and calls herself the biological mother finally tracked them down in Australia with the help of a private detective.

Their fight over the now 8-year-old girl is before the state Supreme Court, which has not announced whether it will consider the case. A trial judge ruled for the birth mother and said the biological mother has no parental rights under state law, adding he hoped his decision would be overturned.

The 5th District Court of Appeal in Daytona Beach obliged, siding with the biological mother and saying both women have parental rights.

At issue is the 1993 state law meant to regulate sperm and egg donation. Scholars debate whether the constitutional right to procreate includes outside-the-body technologies used to conceive.

Also at issue are constitutional questions about gay people’s right to raise children and claim equal protection under law. Another appellate court ruled Florida’s ban on gays being able to adopt unconstitutional in 2010.

The biological mother, however, isn’t concerned about being a legal or social pioneer, her lawyer said. She just wants her child back in her life.

“She hasn’t seen her daughter in years, and it’s been terribly, terribly difficult for her,” said Robert A. Segal, a family law attorney in Melbourne.

The birth mother’s lawyer, Robert Wheelock of Orlando, did not respond to written questions sent by email.

The battle over what defines motherhood is being played out on prime-time television shows and in courtrooms across the country.

Lisa Miller, a Virginia woman who renounced her homosexuality, has been in hiding with her daughter since 2009 after a court ordered that her former partner, Janet Jenkins, be given custody.

The two entered into a civil union in Vermont in 2000. Miller’s own egg was artificially inseminated and she gave birth. The Virginia Supreme Court ultimately agreed with a Vermont judge’s custody decision; the case raised questions about one state’s duty to recognize same-sex relationship rights created by laws in another.

More recently, former North Carolina state Sen. Julia Boseman, the first openly gay member of that Legislature, is suing for joint custody of a 2-year-old son born to a woman Boseman had called her spouse.

In the Florida case, the women agreed to use “reproductive medical assistance,” have a child and raise that child as a couple, court records show.

It’s unknown why they later decided to separate, but “their separation does not dissolve the parental rights of either woman, nor does it dissolve the love and affection either has for the child,” the appellate decision said
The birth mother cites the state’s law on sperm and egg donation, which says that donors “relinquish all maternal or paternal rights,” to argue that the biological mother wasn’t the child’s parent.

The trial judge ruled for the birth mother, but said he didn’t agree with the law and told the biological mother, “If you appeal this, I hope I’m wrong.”

The appellate judges reversed him 2-1 in a decision that found the biological mother wasn’t a “donor” as contemplated by the law because she and her partner intended to be parents together.

“We can discern no legally valid reason to deprive either woman of parental rights to this child,” said the majority opinion by Judge Thomas Sawaya. He ruled that the donor law was unconstitutional as applied in the case.

That law was passed 15 years after Louise Brown, the world’s first “test tube” baby, was born. But Judge David Monaco, in a concurring opinion, said the statute “was not designed to resolve the problem of how to treat children born by in vitro fertilization to a same-sex couple.”

One of the original sponsors of that law agrees.

“I think it’s unlikely we discussed this kind of fact situation,” said Brian P. Rush, a Tampa lawyer who served in the Florida House at the time as a Democrat. “We were trying to facilitate assisted reproduction technologies … and eliminate litigation.”

But in a blistering dissent, Judge C. Alan Lawson said the trial judge got it right. A child can have only one mother, he wrote.

The court shouldn’t recognize two mothers “unless we are also willing to invalidate laws prohibiting same-sex marriage, bigamy, polygamy or adult incestuous relationships on the same basis,” Lawson said.

Moreover, allowing people to plead intent could allow any donor to “make an after-the-fact claim” for parental rights, he said.

Monaco and Lawson agreed, however, that the Legislature needs to pass new law on the science of human reproduction to reflect the times.

“We think we’re solving problems with technology, but it just leads to more problems,” said Alan Williams, a health law professor at Florida Coastal School of Law in Jacksonville. “Moral and ethical dilemmas arise that laws were never made to deal with.”

John Stemberger, president of the conservative Florida Family Policy Council, says the appellate court’s decision “redefines the legal nature of families in opposition to Florida’s law and constitution.” Florida voters adopted a constitutional amendment banning same-sex marriage in 2008.

Shannon McLin Carlyle, an appellate attorney who also is representing the biological mother, said the majority didn’t come up with a gay rights decision: “It’s a pro-parent decision.”

“But it does solidify gay couples’ right to retain a relationship with their child,” she said. “If it goes the other way, parenthood could be subject to risk on the whim of the other partner.”

Ultimately, the state Supreme Court may have to wrestle with Judge Monaco’s closing sentences: “We still ought to come to grips with what is best for the child. Here, having two parents is better than one.”

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Fraud Investigations Iowa voter fraud

Iowa Secretary of State Matt Schultz has referred nine cases of possible voter fraud to county attorneys for investigation since last October, a spokeswoman for his office said Friday.

http://liarcatchers.com/fraud_investigation.html

The referrals were prompted either by inquiries from county-level election officials or complaints to the secretary of state’s voter fraud hot line, spokeswoman Erin Rapp said. All involve city elections held in 2011. The investigations are now under way, which limits the information about them that can be released publicly.

Schultz, a Republican, has made cracking down on voter fraud a key focus for the secretary of state’s office, to which he was elected in 2010.

Earlier this year, he introduced legislation that would require Iowans to show a state- or university-issued photo ID in order to vote, a measure supported by Republicans but sharply opposed by Democrats. The bill failed to pass a key legislative deadline last month, dimming its prospects for passage this year.

Republicans generally argue voter-ID legislation is needed to reduce fraud and ensure security at the ballot box. Democrats, conversely, contend the requirements are meant to stifle voter turnout, and that the voter-impersonation fraud they purport to prevent is virtually nonexistent.

In comments to a Republican news outlet earlier this week, Schultz suggested voter fraud was an issue in Iowa, and that he would soon provide proof of its existence.

“We will be showing that there are cases of voter fraud in Iowa,” Schultz told the Iowa Republican website in a story published Thursday.

It is not clear, however, whether the complaints now being investigated involve fraud that would be addressed by the ID legislation. Rapp, the spokeswoman, declined to describe the nature of the complaints or where in Iowa they came from, citing the need to keep ongoing investigations confidential.

Schultz’s comments to the Iowa Republican, which he made during a panel discussion on the voter ID issue on Wednesday, seem to contradict earlier statements in which he suggested the existence of voter impersonation fraud could not easily be proven, and that his legislation aimed to close a loophole that could allow fraud.

“What’s important is that we close a loophole,” Schultz said during a news conference announcing his voter-ID legislation in January. “We can’t prove that it’s happening or that it’s not unless we have video camera surveillance, which we do not have at the polls.”

The Iowa Democratic Party seized on the apparent contradiction in a statement released Thursday, contending that Schultz’s comments to the Iowa Republican were evidence of his desperation to pass a voter-ID law.

“It doesn’t make sense that cases of voter fraud would appear suddenly, especially after he has freely admitted that voter fraud is not a problem in Iowa,” Iowa Democratic Party Chairwoman Sue Dvorsky said in the statement, which also called on Schultz to release more detail about the investigations.

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Fraud Investigation Obama Birth Certificate ignored

Despite a mountain of evidence and new allegations of fraud, the national news media refuses to cover the Obama birth certificate scandal.

On Thursday, Sheriff Joe Arpaio of Maricopa County, Ariz., released the findings of his “Cold Case Posse,” which investigated the authenticity of the president’s birth certificate.

http://liarcatchers.com/fraud_investigation.html

The Arpaio team is an impressive group of investigators with many years of experience. It includes lawyers and respected law enforcement personnel. They discovered that the document is likely fraudulent, and a massive deception has been perpetrated on the American people.

Such a bombshell should have led the national news coverage throughout the country. Instead, it was completely ignored by a corrupt network of media elites who are decidedly liberal and wholeheartedly support Obama’s re-election.

The vast majority of the American people have been denied the truth by a media who want to shield Obama.

It is a sickening case of media bias and another reason why so many Americans are seeking their news from alternative sources such as the Internet.

Every day, it becomes clearer that our national news media are liberal sycophants who want to maintain good relations with the Obama White House.

If these allegations had been made about a Republican president there would have been a media firestorm greater than Watergate and Iran/Contra combined.

Ever since Barack Obama appeared on the political scene, the mainstream news media have been willing accomplices in promoting his agenda and providing positive news coverage.

From the beginning, the media should have questioned Obama about his affiliation with radicals like Bill Ayers and Rev. Jeremiah Wright. They should have demanded that he provide more details on his personal, educational and political history. Instead, he was allowed to run for president in 2008 as a “mystery man” or the current equivalent of the Manchurian candidate.

Not surprisingly, the media acted like partisan Democrats in the news conference after Arpaio’s team announced their findings. Instead of asking questions about the Obama documents, the reporters were more interested in asking Sheriff Arpaio about his political affiliation, his relationship with the Tea Party and his motives for the investigation. What the media conveniently overlooked was the expert testimony and the evidence presented by Arpaio’s group of investigators. Potentially, a major crime has been committed at the highest levels of our government, and the media attacked the messengers.

The “Cold Case Posse” raised questions about the register and date stamps on the Obama documents. One person of interest in the alleged forgery has been identified. If the media had acted like investigative journalists instead of Obama loving zombies, they would have asked about this person of interest. In contrast, Arpaio was on the receiving end of attacks about his strict policies on illegal immigration policies and other irrelevant issues.

He also faced questions about his jurisdiction in investigating the president; however, he acted only after local constituents presented him with petitions raising doubts about the president’s qualifications for the Arizona presidential ballot. 250 members of the Surprise Tea Party delivered the petitions to Arpaio in August 2011.

The “Cold Case” posse took their responsibilities seriously and spent months on the investigation. They reviewed a massive amount of documentation while interviewing dozens of witnesses from around the world.

The top investigator on the team, Mike Zullo, alleged potential fraud in the Hawaii Department of Health. According to Zullo, “various elected Hawaiian public officials may have intentionally obscured 1961 birth records and procedures” to avoid a true examination of the Obama documents.

These are shocking allegations which deserve a full media examination. Sadly, the national news media is more interested in attacking conservatives than in any real quest for the truth.

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Insurance Fraud Insurance

You normally can’t buy insurance to cover your losses when you commit a crime such as bank robbery.

http://liarcatchers.com/insurance_fraud.html

But you can now buy insurance specifically tailored for certain misdemeanor crimes of health-care fraud.

Corporate insurance broker Marsh and insurer Allied World Assurance Co. have joined to sell what they say are the first of these policies. They hope the insurance will appeal to top executives at pharmaceutical, biotech, medical-device, and hospital companies who worry they will be the next target of increased federal prosecution of health-care fraud.

This odd situation is born of market forces and a legal principle called the responsible corporate officer doctrine, or the Park doctrine, stemming from Supreme Court cases involving regulations designed to protect consumers of food and drugs.

Generally, a misdemeanor is a less serious offense than a felony and carries lesser penalties – shoplifting a candy bar vs. robbing a bank of $1 million, for example. Misdemeanors are also easier than felonies for prosecutors to prove.

But because the safety of food and drugs for millions of Americans is so critical, Congress raised the bar on conduct of food and drug company executives under the Food, Drug and Cosmetic Act.

Under the act, food and health-care executives may be guilty of a misdemeanor even if they did not know bad things were happening under their watch or if they failed to correct a problem once they learned of it.

In the last decade, prosecutors began using the act as a hammer in attempts to stop the marketing of drugs for uses not approved by the U.S. Food and Drug Administration, especially when patients were harmed.

“We recognized that the responsible corporate officer doctrine had become a more prevalent issue and with the increased scrutiny that pharmaceutical and medical-device companies are under, we thought there would be a market” for insurance, said Maureen Gorman, a senior vice president with Marsh, which began offering the new coverage in early February.

Neither Marsh nor Allied World Assurance would say how much such a policy might cost. They said cost would vary widely based on company size, business activities, executive compensation, risk, internal-auditing processes, and regulatory record.

While the two firms suggest their policies will be unique because they focus on health care, other insurers have offered policies to protect directors and officers for years.

“If someone pleads guilty to a misdemeanor with little to no evidence that they engaged in deliberate criminal conduct, there is a strong argument that this person deserves coverage,” said Steve Shappell, a managing director with Aon Corp. and leader of the insurer’s legal and claims practice within the financial-services group. “If the evidence is more compelling that someone engaged in affirmative conduct, then the exclusions to the policy might apply.”

Sorting that out, however, could be tricky.

One of the most recent health-care fraud cases to rise to prominence involved medical-device manufacturer Synthes Inc. The company, with U.S. headquarters in Chester County, paid $24 million in fines and four executives pleaded guilty to one misdemeanor count each of shipping adulterated and misbranded bone cement across state lines.

The executives hoped for probation, but federal judge Legrome D. Davis said their conduct was “egregious” and sent all four to prison.

Brian Casey, Allied World’s vice president for professional lines and lead underwriter, declined to say what costs an insurance policy would have paid under those circumstances.

“This is only for misdemeanor criminal prosecution that does not involve criminal intent,” Casey said.

Marsh’s Gorman said the policies would not reimburse a company for payments to the government to settle criminal charges. Such payments have reached into the billions in recent years.

But some legal fees for the company probably would be paid during the process, which can take years. And the executive pleading guilty might, depending on state laws, get reimbursed for lost pay because he or she could no longer work in health care. Government programs such as Medicaid and Medicare often will not deal with such convicts, making them almost unemployable in the field.

Another factor is that prosecutors negotiating plea agreements – and wanting the defendants to feel the sting – might stipulate that any insurance policy could not be invoked.

Prosecutors may argue for charging corporate executives this way based on a 1943 decision in a case called U.S. v. Dotterweich and a 1975 decision in U.S. v. Park. In those cases, the Supreme Court said the importance of food and drug safety warranted stiff accountability for executives.

The Park decision involved Acme Markets Inc. and its chief executive officer at the time, John R. Park, who did not respond to government investigators finding evidence of rats in food warehouses in Philadelphia and, later, in Baltimore.

“We are satisfied that the act imposes the highest standard of care and permits conviction of responsible corporate officials who, in light of this standard of care, have the power to prevent or correct violations of its provisions,” Chief Justice Warren Burger wrote in the majority opinion in Park.

Health and Human Services Secretary Kathleen Sebelius, whose purview includes the FDA, was surprised to hear of the new, health-care-focused insurance policies when asked about them during a recent visit to Philadelphia.

“Really?” said Sebelius, who was the Kansas insurance commissioner before becoming that state’s governor. “I don’t practice law on a regular basis, but usually you can’t insure yourself as a bank robber for robbing banks. That is intriguing. I’d like a list of their customers because that would give us a pretty good target of people to go after.”

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Missing persons Franco Garcia last photos

(NECN: John Moroney, Boston) – Taken at an ATM in Cleveland Circle – these photographs are the last of 21-year-old Franco Garcia before he went missing – leaving investigators with few clues about what might have happened as time keeps slipping away.
It’s now been 10 days since the Boston College student – who studied chemistry and played in the marching band – disappeared. Garcia was last seen at Mary Anne’s bar. He went with friends but apparently left on his own – walking by this ATM at 12:18 in the morning.

http://liarcatchers.com/missing_persons_investigations.html

Last night family and friend gathered and prayer in Cleveland Circle for his safe return.

It’s been a long week for family and friends as police searched the nearby woods and Chestnut Hill Reservoir without any success. These ATM pictures are the first real leads in the case. They don’t provide a lot of answers. But at least they give investigator something to build on as they try to track Franco Garcia’s movements

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Identity theft IRS warns

Yuma taxpayers can take steps to protect themselves against identity theft and fraud, according to IRS officials.

http://liarcatchers.com/identity_theft_investigation.html

“There’s been a lot of fraud. People think they’re getting two, three, four thousand dollars (in a refund) and then they find out the tax preparer charged a hefty fee, sometimes thousands of dollars,” IRS spokesman Bill Brunson said.

He recently visited Yuma, along with Special Agent Brian Watson of the IRS Criminal Investigation Division, to offer tips on how taxpayers can protect themselves.

In some cases, taxpayers think preparers are charging a $20 fee, but later the fee jumps to $200 for e-filing.

Sometimes preparers will advance customers a loan in anticipation of a refund and then hit them with a high interest rate. Brunson advises taxpayers to be aware of all fees and encourages them to ask questions. Taxpayers should make sure to look at the refund amount.

“You’re signing (the agreements and returns) so you’re saying you know,” Brunson said.

People who use preparers should also make sure the preparer puts their information on the bottom of the tax return.

In addition, IRS reminds taxpayers that to file taxes electronically on a Married Filing Jointly tax return, both spouses must be present to sign the required forms.

Brunson also warned citizens to protect themselves against identity theft. “We want folks to know it’s out there. Identify theft happens.”

The IRS has been working with the Justice Department’s Tax Division and local U.S. Attorneys’ offices in a nationwide effort against refund fraud and identity theft.

The coast-to-coast effort resulted in indictments, arrests and the execution of search warrants involving the potential theft of thousands of identifies and taxpayer refunds.

The agencies targeted 105 people in 23 states, including Arizona. In all, 939 criminal charges are included in the 69 indictments and information related to identity theft.

A former Buckeye, Ariz., resident was among those arrested on identity theft and tax fraud charges. Adrian Espiridion Lugo, 29, now living in Pittsburg, Pa., allegedly used stolen identities to file false tax returns.

He reportedly operated a tax preparation business and used stolen names and Social Security numbers of dead individuals to file false tax returns that fraudulently claimed refunds. The refunds allegedly were deposited into accounts that Lugo controlled. He reportedly claimed $279,000 in federal tax refund payments.

In another operation, IRS auditors and investigators conducted extensive visits to 150 money service businesses across the country, including Phoenix. The purpose was to ensure these check-cashing facilities aren’t facilitating refund fraud and identity theft.

“We are aggressively pursuing cases across the nation with the Justice Department, and people will be going to jail. This is part of a much wider effort underway at the IRS to help protect taxpayers,” IRS Commissioner Doug Shulman said in a press release.

“Now, more than ever, we must remain vigilant against the unauthorized use of identification information to defraud the U.S. government,” said John A. DiCicco, principal deputy assistant attorney general of the Tax Division.

“The Justice Department is working closely with the IRS to investigate, prosecute, and punish tax refund crimes committed through the theft of identities,” he added.

The national effort is part of a comprehensive identity theft strategy the IRS has embarked on that is focused on preventing, detecting and resolving identity theft cases as soon as possible.

In addition to the law-enforcement crackdown, the IRS has stepped up its internal reviews to spot false tax returns before tax refunds are issued as well as working to help victims of the identity theft refund schemes.

The IRS is taking a number of additional steps this tax season to prevent identity theft and detect refund fraud before it occurs. These efforts include new identity theft screening filters designed to help the IRS spot false returns before they are processed.

To help taxpayers, the IRS earlier this month created a new, special section on IRS.gov dedicated to identity theft matters, including YouTube videos, tips for taxpayers and a special guide to assistance.

The information includes how to contact the IRS Identity Protection Specialized Unit and tips to protect against “phishing” schemes that can lead to identity theft.

Identity theft occurs when someone uses another’s personal information without their permission to commit fraud or other crimes using the victim’s name, Social Security number or other identifying information.

When it comes to federal taxes, taxpayers may not be aware they have become victims of identity theft until they receive a letter from the IRS stating more than one tax return was filed with their information or that IRS records show wages from an employer the taxpayer has not worked for in the past.

If a taxpayer receives a notice from the IRS indicating identity theft, they should follow the instructions in that notice. A taxpayer who believes they are at risk of identity theft due to lost or stolen personal information should contact the IRS immediately so the agency can take action to secure their tax account.

The taxpayer should contact the IRS Identity Protection Specialized Unit at 1-800-908-4490.

Taxpayers looking for additional information can consult the Taxpayer Guide to Identity Theft or the IRS Identity Theft Protection page on the IRS website.

Brunson also encouraged qualified taxpayers to claim the Earned Income Tax Credit (EITC), one of the federal government’s largest benefit programs for working families and individuals.

“It doesn’t mean dollars in hand. The credit goes against the assessed tax, dollar for dollar. It might cause a refund, increase a refund or reduce tax liability,” Brunson explained.

But taxpayers must first file a tax return, even if they do not have a filing requirement, and specifically claim the credit to get the benefit.

The national average for the credit is $2200. In Arizona, the average is $2,300, but one in five didn’t claim it.

Although taxpayers will have a couple of extra days to file a federal tax return this year, the IRS urges taxpayers to file as soon as possible.

Taxpayers have until April 17 because the usual deadline, April 15, falls on a Sunday and April 16 is a holiday in Washington, D.C.

For more information, visit the Yuma IRS office at 2285 S. 4th Ave., or call 1-800-829-1040. Taxpayers may also visit IRS.gov for more information

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executive protection John Leopold

Anne Arundel County Executive John Leopold is accused of using his executive protection staff to escort him to a parking lot for “sexual activity with another county employee [in 2010],” the state prosecutor’s office announced Friday.

http://liarcatchers.com/executive_protection.html

An Anne Arundel County grand jury indicted the Republican on Wednesday on four counts of misconduct in office and one count of fraudulent misappropriation by a fiduciary, according to a release.

The indictment details a wide range of misconduct that includes using Anne Arundel County police officers to keep “dossiers” on his political opponents and to drive him to locations throughout the county where Leopold would remove his opponent’s campaign signs in 2010.

The indictment alleges a “systematic use of on-duty sworn Anne Arundel County officers as political campaign workers,” according to the press release. The officers would pick up and deposit campaign contributions and check on campaign signs for several hours a day, according to the indictment.

In addition, the police officers drove Leopold to parking lots to meet women for sexual encounters and they ran interference between a girlfriend and his live-in partner during a hospital stay, according to the news release.

“The indictment also recounts two hospital stays for back surgery during which the County Executive required an additional police officer to work overtime to prevent one girlfriend from meeting up with his live-in partner. The cost to Anne Arundel County for police overtime pay during these hospital stays exceeded $10,000,” the release stated.

The Republican “regularly misused his executive protection staff and other county employees for his own personal benefit,” the indictment alleged.

“Public officials criminally abuse their public trust when they treat public resources as their personal property and public personnel as their personal servants. These abuses will not be tolerated,” state prosecutor Emmet C. Davitt said in the release.

Leopold’s attorney, Bruce Marcus, has not released a statement. Leopold will not be arrested but a criminal summons will be served on his attorney, according to sources.

No trial date has been set. Davitt was not available for comment.

State delegate and fellow Republican Cathy Vitale said in an intervew with Patch that it’s a “very sad day” for the county.

“This is a distraction that the county doesn’t need, we should be focusing on the financial issues of the state and how they are going to affect the citizens of the county,” said Vitale, a Severna Park resident, via telephone. “I have two thoughts that come to mind: the county has heard for months about the ongoing investigations this certainly answers a question about what is happening. It is now up to the court system and the legal process to take over.”

But talk of an indictment has been brewing for months.

“It’s about time. … The accusations that came out against him and some of the things, I’m pretty sure he did,” county council PTA president Ray Leone told Patch. “I had some personal dealings with the man. I was relatively sure what he’s being indicted for is true.”

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Insurance Fraud Aflac

McALLEN — Federal judges sentenced five defendants to prison and ordered they pay restitution for their roles in a scheme that defrauded millions of dollars from insurance company Aflac.

http://liarcatchers.com/insurance_fraud.html

The latest sentences made 27 of 36 defend Operation Sitting Duck, in which area residents allegedly defrauded the Columbus, Ga., supplemental insurance provider of more than $3 million in false claims.

As of Wednesday, 35 of the defendants had pleaded guilty, and the 27 sentenced all have been ordered to pay restitution, as well as serve prison sentences that have ranged between six and 30 months.

Chief U.S. District Judge Ricardo Hinojosa sentenced four defendants on Wednesday:

>> Norma Flores, 56, of Palmview, received a 15-month prison sentence and was ordered to pay $105,905 in restitution.

>> Nora Palacios, 55, of La Joya, received a 15-month prison sentence and was ordered to pay $75,025 in restitution.

>> Georgina Flores, 34, of La Joya, received an eight-month prison sentence and was ordered to pay $61,805 in restitution.

>> Jessica Herrera, 30, of Mission, received a six-month prison sentence and was ordered to pay $34,510 in restitution.

And Tuesday, U.S. District Judge Micaela Alvarez sentenced Leonor B. Salinas, 46, of Edinburg, to 15 months in prison and ordered $83,345 in restitution.

Each defendant pleaded guilty to one count of wire fraud in 2011, saying they participated in the scheme as an Aflac policyholder.

The scheme involved claiming fake accidents and injuries to two Reynosa-based doctors, who would sell an “accident report” for about $15 for each malady. Those accident reports were turned over to Aflac, which paid an average of $100 per injury.

Over several years, prosecutors said Aflac received thousands of false claims from the three dozen defendants, leading to more than $3 million in payments.

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Employee Investigation Chau Phan

March 02–A former Seattle Public Utilities employee was arrested Thursday for allegedly stealing more than $1 million over five years by diverting customer payments for water-main extension projects into a private bank account.

http://liarcatchers.com/employee_investigations.html

Chau Phan, 44, a civil engineer, was fired in February by SPU for adjusting his own utilities accounts. He was arrested Thursday by Seattle police for investigation of first-degree theft and expected to make his first court appearance this afternoon.

He will be formally charged next week.

Phan is believed to have bought a house and a car as part of the scheme and paid off credit card debt, according to two sources familiar with the investigation. The city recovered $220,000 Wednesday from a bank account controlled by Phan, a source said.

SPU went to the Seattle Police Department in January, after it discovered the alleged thefts as part of its separate investigation into utility employees — including Phan — who had improperly accessed, and in some cases, credited their own utility accounts.

In the current case, utility officials say that Phan diverted checks written by developers for water main extension projects to a private bank account.

“The legal process still needs to determine the guilt or innocence of this individual, but obviously this kind of alleged misconduct is unacceptable and reprehensible,” said SPU Director Ray Hoffman.

Police say they are still pursuing leads in the case.

“We knew we had to act quickly in order to recover as much of the stolen monies as possible. Those efforts are an immediate priority and remain active and ongoing, ” said Detective Keith Savas of the SPD Fraud, Forgery and Financial Exploitation Unit, who worked closely with SPU’s Risk and Quality Assurance Division.

City council members also reacted with alarm.

“I’m outraged. Immediate steps must be taken to ensure this doesn’t happen again,” said Jean Godden, chair of the committee which oversees the utility.

Hoffman said the utility has hired an independent consultant to work on issues identified during the Phan probe and to review all of the utilities financial practices.

Godden said her committee will monitor the ongoing work.

Five SPU employees, including Phan, have been fired since the initial investigation began in November 2010. A sixth was suspended.
City records show that Phan earned $77,488 in 2010 as a civil engineer. He had worked for the city since 1995 and was promoted to associate engineer in 2000. As part of his job, Phan had access to customer service accounts so he could research and issue water availability certifications to property owners and developers, according to the utility.

That access allowed him to access his own utility account to show payment had been made when it hadn’t. Hoffman notified Phan in February 2011 that he was being fired for improperly accessing his own account.

“Your actions in creating the fraudulent payments, your attempts to cover up your actions, and your lack of honesty throughout this process indicate either an inability or an unwillingness to meet the City’s requirements for employees,” Hoffman wrote in a letter notifying Phan of his termination.

Phan had been working since last summer for the City of Bothell as a project inspector in the utilities department, but was fired Thursday after Seattle police informed the city they planned to arrest him, Steve Anderson, Bothell’s deputy city manager, said Friday.

Anderson said Bothell officials did not know that Phan had left his Seattle job under a cloud in February 2011.

“We do comprehensive reference checks and there was no red flag on Mr. Phan,” Anderson said.

Bothell officials also evidently were unaware of a Seattle Times story in December that reported Phan had signed a settlement agreement with the Seattle Ethics and Elections Commission, acknowledging he had fixed his own residential utility account and that of a rental property to record payments of more than $1,000 when none were made.

In his Bothell job, Phan worked in the surface-water section, inspecting capital and residential projects to ensure developments were following code and approved plans, Anderson said.

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Posted in Private Investigator Lexington | Tagged | Comments Off on Employee Investigation Chau Phan

Identity theft for a business

The Internal Revenue Service is investigating a case of stolen identity in Roswell – only the victim was not an individual, but a business

http://liarcatchers.com/identity_theft_investigation.html

The owner of Seagate Foods, which operates Captain D’s seafood restaurants in metro Atlanta, notified authorities that someone apparently had gotten hold of his company’s taxpayer identification number, Roswell police said.

The fraudsters created more than 100 fake W-2 forms to report in excess of $4 million in nonexistent salaries to state and federal agencies, authorities said. It likely was a scheme to collect fraudulent tax refunds, they said.

In the end, Seagate was left owing more than $800,000 in payroll taxes.

Such a scam is “very uncommon, but it does happen,” Dave Murray, a Roswell certified public accountant, told Channel 2.

Murray, who is not connected to the case, likened the crime to identity theft, but for a business.

“The IRS and the state are generally going to believe that W-2 when they receive it,” he said. And the only way a business owner would find out he had been victimized would be when “the IRS would come say, ‘Hey, you owe us all this money. Come on, pay up.’”

“That company would be liable for the whole thing,” Murray said.

A spokesman for the Social Security Administration said his office is working with the IRS to investigate the case. Attempts by Channel 2 to contact the Captain D’s franchise owner were unsuccessful.

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