Healthcare Fraud in the Eastern District

Healthcare fraud in the Eastern District of Texas

http://www.justice.gov/usao/txe/News/2012/edtx-hcf-oji-083012.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

 

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Assistants Access to Money IX

The major issue we have seen when examining administrative assistant fraud is that when an operation involving money, such as incoming receipts, payments to vendors, reimbursements to credit cards, etc., is that the entire operation is "bottlenecked."  In this case, it is bottlenecked with ont person.

     In this case, the bottleneck is with an administrative assistant who is trusted and, as such is given a great deal of access to cash.  This bottleneck means that the assistant has the ability to commit fraud with little fear of being caught (especially if the person is smart enough to use the "salami" technique).

     The easy answer to this issue is to split up the responsibilities so that one person is not in charge of money intake and/or distribution.  For a large organization, it is relatively easy to distribute the responsibilities over a larger group of people.  For small organizations with limited human resources, this distribution may have to be outsourced to third parties (accountants, attorneys etc.). 

     Generally, therefore, the greater the "bottleneck," the greater the risk of fraud.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

 

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Assistants Access to Money VIII

OK - let's get back to discussing how to implement some safety controls to prevent administrative assistants from fraud and/or internal theft.

Card review - any purchases which are made by a credit card, company credit card or personal credit card asking for reimbursement - demand supporting documentation

Review checkpoints - have a third party, or if the organization is large enough, a third person, review all invoices.  These invoices must be approved before any reimbursement is given

Cell phone charges - if a cellphone is used for company purposes, the maority of calls and use should be for company business and this should be verified.

We will conclude this tommorrow.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

 

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Interludes - Cattle Fraud in the Eastern District of Texas

Interesting fraud case from Texas' Eastern District

http://www.justice.gov/usao/txe/News/2012/edtx-wcc-chapman-082212.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

 

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Interludes - yet another Ponzi scheme?

Another Ponzi scheme?

http://www.foxbusiness.com/industries/2012/08/22/how-can-1-million-people-be-this-dumb/

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

 

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Interludes - Tax Evasion in the Southern District

Tax Evasion in the Southern District of Texas

http://www.justice.gov/usao/txs/1News/Releases/2012%20August/120822%20Gore.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

 

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Interludes - PSA for Bellaire, Texas

People who live in Bellaire (suburb of Houston), please be aware of a scam in progress.

http://www.yourhoustonnews.com/west_university/news/bellaire-police-issue-scam-warning/article_258b9e6c-a995-5e87-bc78-e8f052761426.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

 

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Assistants Access to Money VII

OK - let's continue our discussion as to how safeguards can be put in place to prevent an administrative assistant from takign money from the company through fraud.

Two other forms of safeguards are:

1.  Background checks - whenever a person in a company will be placed in a position of responsibility, and this includes the handling of money, should be given a background check (with the person's knowledge and consent, of course)

2.  Edit reports - the company should implement procedures to review at least each quarter a report of changes that have been made to an account.so that any potentiallly fraudulent or incorrect changes can be reviewed.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

 

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Assistants Access to Money VI

OK - so we have discussed the case situation where an administrative assistant was using her position to defraud the company.  She was taking money from a variety of sources, using the "salami" technique to avoid getting caught.  So, what strategies can be employed to ensure, or at least reduce the risk, that this will occur?

     The most important step that an organization can take is to segregate duties.  Because the administrative assistant was given so much power which "bottlenecked" at her source, she was able to take money from so many different sources without getting caught.  By separating the recieving, issuing and collection of payments among other individuals, at least one of these frauds could have been avoided.  If the organization is small and many people have to wear different "hats," then at least have an outside source have some kind of control over the situation, if only for short periods of time (i.e. an outside auditor or accountant).

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Trusting Assistants with Access to Money V

We have seen how an assistant who uses the "salami technique" has the advantage of taking a small amounts of money from various sources.  By taking small amounts from various sources, it provides a good cover for such theft.  Very few people will notice a "little here" and a "little there" missing.

      However, this approach also paradoxically provides an opportunity for this person to slip up - sometimes it is hard to keep track of what is what and, as a result, errors can occur which draw the attention of fraud investigators.

   Next, we will discuss how to prevent, or at least take steps, to prevent such fraud from occurring.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Trusting Assistants with Acess to Money IV

Let's discuss some of the ways an assistant may use the "salami" techinque to take a piece here and a piece there and, as a result, never get noticed:

1.Using the company's credit/debit card
2.Using payments to vendors (instead of writing a check to a vendor, the assistant writes a check to herself or to a third person who will cash it for him or her)
3.  Unapproved overtime
4.  Petty cash
5.  Unauthorized use of a cell phone

None of these by and of themselves will amount to a great deal if the amount stolen from each "part" is small.  But, when they are added together, they can result in hundreds of thousands of dollars being lost every month.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Interludes - Onetime "Milionaire Matchmaker" Convicted

A onetime contestant on the program "Millionaire Matchmaker" who held himself out as a millionaire bachelor is convicted of fraud:

http://www.masoncountydailynews.com/news/national-news/37187-millionaire-matchmaker-client-convicted-fraudster-sentenced-to-federal-prison

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Trusting Assistants with Access to Money III

When an trusted assistant makes the decision, whether consciously or unconsciously, it usually begins with what is known as the "Salami Technique."  This technique involves the theft of small amounts of assets from a large number of sources without noticeably reducing the whole. 

     In other words, an assistant using this technique may takd $500 from the "petty cash" account which will not be noticed, take $500 from the company credit card and another $500 from false receipts.  $1500.00 is, of course, a good deal of money and if this $1500.00 was taken from one account, it might be noticed.  But, taking a small amount of money from one account here and another account there will noticeably reduce the chances of being caught. 

    

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Trusting Assistants with access to money II

Administrative assistants can be in a position to commit fraud if the following elements occur:

1.     The assistant has access to immediate funds such as a credit card for the organization

2.     Authority to make external payment requests

3.     Authority to issue internal payments

4.     Authority to create open purchase orders to accounts payable

5.     Ability to approve the assistant's own time claims (for compensation) (i.e. timecards)

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Trusting Assistants with Access to Money I

Professional assistants are a fact of life for many executives.  This is only natural because of the constant demands of time on executives and the necessity for someone to act not only as a secretary but also as a "blocker" to intercept phone calls and emails and to schedule the executive's professional (and sometimes personal) life.

     It is not uncommon, therefore, to trust assistants with money and accounts in a business.  While many times this is convenient, if not necessary, it also leaves the executive (or "boss") in a vulnerable position should the assistant choose to act in a dishonest manner. 

We will explore this topic over the next few days.

*  My thanks to Monica Dalwadi and Aaron Raddock for inspiration and facts for this posting from their excellent article in the March/April 2012 issue of Fraud Magazine.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

A bit of history

OK - we WILL get to a new topic and thread tommorrow.  Sorry, just been very busy lately.

In the meantime, here is a bit of interesting history regarding fraud techniques in America.

http://www.investopedia.com/articles/financial-theory/09/history-of-fraud.asp#axzz23T42KKQe

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

FBI's Most Wanted White Collar Fugitives

Here is a list of the FBI's most wanted White Collar Fugitives

http://finance.yahoo.com/news/white-collar-fugitives-wanted-by-the-fbi-20120731-162536.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

White Collar Fugitives - Spiro Germenis

Another white collar fugitive - Spiro Germanis.

Please review

http://www.fbi.gov/wanted/wcc/spiro-edward-germenis/view

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

White Collar Fugitives - Eric Bartoli

Every so often this blog will point out one of the FBI's wanted fugitives relating to white collar crime.

Here is one on Eric Bartoli:

http://www.fbi.gov/wanted/wcc/eric-v.-bartoli/view

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Article detailing the danger of how accounts can be hacked

A disturbing article on how accounts with such giants as Apple and Amazon can be hacked and valuable personal data stolen:

http://www.wired.com/gadgetlab/2012/08/apple-amazon-mat-honan-hacking/

Hat tip to my brother for pointing this out.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Baby Brokers Scam XII

So - we have seen what happens when couples who want children are seduced by a scammer, or fraudster, that promises them a child but is only interested in money.

     In a sense, the baby broker scam is similar to the advance fee (or 419 scam) of Nigerian scammers.  The fraudster is demanding money up front before a service is actually rendered.  The scam continues as the fraudster continunually complains about additional fees or unexpected expenses that are driving up the costs of the actual adoption.  The couple seeking a child is asked to pay these fees and expenses with no end in sight.

     As stated at the beginning of this thread, the really heartbreaking issue of this fraud is that the scammer is taking advantage of people when they are at the most vulnerable.  But, of course, this is the modus operendii of fraud in general - finding people when they are at their weakest, or finding their weak point, and taking advantage of it.

     When considering any adoption, once again as stated at the beginning of this thread, especially international adoption, both state law and federal law need to be considered.  It is impossible to "jump" the system.

    On to another thread next week.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Interludes - Sentence for wire fraud et al. in Texas

Wire fraud et al. in the Southern District of Texas

http://www.justice.gov/usao/txs/1News/Releases/2012%20August/120802%20Purser%20et%20al.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Interludes - Health Care Fraud in the Southern District of Texas

Health Care Fraud in the Southern District of Texas

http://www.justice.gov/usao/txs/1News/Releases/2012%20August/120801%20Shittu.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Baby Brokers Scam XI

OK - so let's review the elements of the Baby Brokers Scam:

1.  These scammers will prey on people that want a baby, but cannot have one.

2.  The scammer will contact (or be contacted) by the individual or couple that wants a baby

3.  The scammer will promise the individual or couple a baby

4.  The scammer gets a payment up front, usually thousands of dollars or tens of thousands of dollars

5.  The scammer will give false information to the couple showing how the scammer is in the process of "adopting" the baby for the couple

6.  Of course, there is no such adoption process.  The process is a complete sham.  The scammer keeps the couple at bay with false promises or complaints of various "delays" in obtaining the baby.

7.  This process loops again and again.

8.  Like a pyramid scheme, the scammer requires the input of new monies from new desperate couples.

9.  These new monies are used to pay off old "investors" who get sick of the scam or begin to assume that something is not right and want their money back.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk