Whistleblower News From The Inside — October 4, 2016
By the C|C Whistleblower Lawyer Team
Nursing home operator from Chicago jailed as feds allege $1 billion scheme – Philip Esformes, a wealthy nursing home operator awaiting trial for orchestrating a $1 billion Medicaid and Medicare bribery and kickback scheme, has been denied bond. The indictment alleges that Esformes and his conspirators bilked Medicaid and Medicare for 14 years by cycling some 14,000 patients through various Esformes facilities, where many received unnecessary or even harmful treatments. Chicago Tribune
Utah-Based Lenders Agree to Pay Nearly $10 Million to Resolve Alleged False Claims Act Liability Arising from FHA-Insured Mortgage Lending – Two Utah lenders, Primary Residential Mortgage Inc. and SecurityNational Mortgage Company, have agreed to pay $5 million and $4.25 million, respectively, to resolve separate allegations that they violated the False Claims Act by knowingly originating and underwriting HUD- insured mortgage loans that did not meet applicable requirements. DOJ
Texas Man Pleads Guilty to Over $9.5 Million Fraud Scheme – Albert Davis is the fifth defendant to plead guilty to charges relating to his role in an elaborate, multi-million-dollar fraud scheme in which conspirators impersonated North Kansas City-based Cerner Corporation. The conspirators set up a fake website, office, bank account, and even fictitious employees to further their scheme. The conspirators committed a number of frauds, such as providing false and misleading testimony regarding business deals where the conspirators had impersonated Cerner Corporation, impersonating bondholders to file an involuntary bankruptcy petition, and soliciting investments using fabricated communications and documents. USAO-WDMO
Mission Viejo Man Agrees to Plead Guilty to $2.3 Million Real Estate Investment Fraud Scheme – Francisco “Frank” Hobson has agreed to plead guilty to taking more than $2,300,000 from investors in a fraudulent real estate investment scheme in which he used investor funds to pay for personal expenses, including travel and cosmetic surgery, to make cash withdrawals, and to make Ponzi-style payments to other investors. USAO-CDCA
North Carolina Couple Sentenced For Government Contract Fraud — Ricky Anthony Lanier and Katrina Reshina Lanier were sentenced to 48 months and 30 months, respectively, in federal prison for conspiracy to commit wire fraud, wire fraud, and major fraud against the United States. According to evidence presented at trial, the Laniers falsely represented their companies met applicable requirements and fraudulently obtained federal contracts intended to be awarded to Service-Disabled Veteran-Owned Small Businesses and 8(a) businesses, which are at least 51% owned by socially and economically disadvantaged individuals. USAO-EDTN
Major Spanish corruption trial gets underway — The former treasurer of the People’s Party of Spain and a network of politicians and businessmen allied with acting prime minister Mariano Rajoy have been charged with fraud and face trial today. More than 300 witnesses will be called to testify regarding accusations that the 37 defendants operated a brazen bribery ring for over 15 years. The fraud was uncovered by whistleblower Ana Garrido, a former civil servant who was fired, harassed and persecuted for her role in unveiling the scandal. EuroWeekly