TRENTON, NJ—Barry Kantrowitz, 62, of Wayside, N.J., admitted today that he fraudulently concealed $82,100 in cash from a trustee appointed by the United States Bankruptcy Court, U.S. Attorney Paul J. Fishman announced.
Kantrowitz entered his guilty plea, to an Information charging him with one count of fraudulent concealment of assets from a United States Bankruptcy Trustee, before United States District Judge Joel A. Pisano in Trenton federal court.
According to the documents filed in this case and statements made in court:
Kantrowitz admitted that from February 2007 to March 2008, he held and concealed quantities of cash belonging to Solomon Dwek that were part of Dwek’s bankruptcy estate. Kantrowitz met Dwek on three separate occasions to give him cash, intending to conceal the monies from the trustee appointed to preside over Dwek’s bankruptcy proceeding. On March 13, 2007, Kantrowitz hid a plastic bag containing $75,100 in cash behind air conditioning units of Kantrowitz’s business office in Oakhurst, N.J. During two other meetings— held on September 12, 2007, and March 21, 2008, at prearranged locations in Monmouth County, N.J.—Kantrowitz delivered envelopes containing $5,000 and $2,000 in cash, respectively, to Dwek. Dwek, who was cooperating with the federal government at the time, secretly made consensual recordings of his meetings with Kantrowitz.
The charge to which Kantrowitz pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for February 23, 2011.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward, with the investigation leading to today’s guilty plea. He also thanked the Monmouth County Prosecutor’s Office, under the direction of Luis A. Valentin, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Christopher J. Gramiccioni of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Joseph A. Hayden, Esq., Roseland, N.J.

CHICAGO—Three owners of a bankrupt Chicago real estate development firm that purported to adhere to Islamic law in handling investments from individuals in the Chicago area and nationwide actually operated a Ponzi-scheme that defrauded hundreds of victims and three banks of more than $43 million, according to a federal indictment made public today. The defendants, who owned Sunrise Equities, Inc., allegedly fraudulently obtained more than $40 million from more than 300 investors through the sale of promissory notes and fraudulently obtained more than $29 million in loans from three area banks. The individual victims collectively lost approximately $30 million and the banks lost approximately $13.7 million when the alleged scheme collapsed in the fall of 2008.
Two defendants, Salman Ibrahim, the majority owner, president and chief executive officer of Sunrise, and Mohammad Akbar Zahid, senior vice president of investor relations and a 10 percent owner of Sunrise, allegedly misrepresented that an investment in Sunrise was Shariahcompliant, which meant that investors would not be paid interest on their investments, which is prohibited under Islamic law. Instead, the investors would receive monthly payments consisting of “profit” generated from real estate development. As a result, they solicited and received investments from hundreds of Muslims in the Chicago area and around the country. Ibrahim and Zahid offered and sold purported investments to the public in the form of promissory notes, claiming that investors’ funds would be invested in real estate development only, and they promised annual returns of between 15 and 30 percent, according to 14-count superseding indictment. The charges were returned by a federal grand jury yesterday and announced today by Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, and Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
“This is the first time in Chicago that an alleged fraud scheme has been uncovered that used a pillar of Islam to induce potential victims to invest their funds. A key element in securing the charges was the extraordinary cooperation provided by members of Chicago’s Pakistani community, who were the primary victims of this alleged fraud scheme,” Mr. Grant said.
Both Ibrahim, 37, a Pakistani national, and Zahid, 59, a U.S. citizen, formerly of Chicago, allegedly fled the country since Sunrise collapsed and was forced into bankruptcy by creditors. They are believed to be living abroad and anyone with information regarding their whereabouts is encouraged to contact the FBI at (312) 421-6700.
Ibrahim and Zahid were charged together with seven counts of mail fraud or wire fraud and one count of bank fraud. Ibrahim was charged alone with two additional counts of bank fraud, as well as two counts of making false statements to financial institutions. Zahid alone was charged with one count of making false statements to a financial institution. The indictment also seeks forfeiture of at least $43.7 million from them.
A third defendant, Amjed Mahmood, 47, of Des Plaines, who was senior vice president of construction and a 10 percent owner of Sunrise, was charged with one count of conspiracy to commit mail, wire and bank fraud. He will be arraigned at a later date in U.S. District Court.
According to the indictment, between January 2003 and September 2008, the defendants engaged in a Ponzi scheme by continually using funds raised through the sale of promissory notes to new investors to make purported “profit” payments to earlier investors, all of which they concealed and intentionally failed to disclose to both new and earlier investors. The defendants allegedly knew that Sunrise was not generating any profits from real estate developments and the only way they could make the promised payments to investors was through the operation of the Ponzi scheme. In addition, they allegedly obtained additional financing by making false statements to obtain loans from Mutual Bank, Cole Taylor Bank and Devon Bank. Altogether, the charges allege that the defendants took in a total of more than $69 million from individual investors and banks during the scheme.
The defendants used a portion of investors’ funds to operate non-real estate projects that were not disclosed to investors, including a motorcycle parts manufacturing company in Pakistan, a gas station in suburban La Grange and a medical equipment sales company in Chicago, the indictment alleges. Ibrahim misused investor funds to purchase a plot of land on which to build a residence for himself, to operate an Islamic school in order to enhance his reputation in the community, and to lease cars for his personal use; Zahid misused investor funds to renovate his personal residence; and Mahmood misused investors’ funds to make mortgage payments for his personal condominium, according to the indictment.
All three defendants allegedly took steps to fraudulently lull investors into believing their investments were doing well, including sending monthly “profit” payments and falsely representing that Sunrise was a successful real estate development company. To obtain additional funds, Ibrahim allegedly arranged for certain investors to refinance their home mortgages in a “cash-out refinance” program so they could further invest their home loan proceeds into Sunrise. The indictment details five examples of unnamed investors who each lost between $120,000 and $300,000 in the alleged Ponzi scheme, including several who refinanced their mortgages to make further investments.
In August 2008, the defendants allegedly organized an emergency investor meeting and falsely told investors that Sunrise needed an additional $1.2 million to continue operating. The defendants allegedly knew, however, that Sunrise had expended all investor funds and had only approximately $200,000 remaining in its bank accounts and had no means to recover more than $40 million in principal that Sunrise owed to its investors.
As part of the alleged bank financing scheme, Ibrahim and Mahmood obtained loans totaling approximately $20.3 million from Mutual Bank to construct a high-rise condominium building at 24 South Morgan St., Chicago. They allegedly submitted false personal financial statements indicating that they each had a net worth of approximately $8.4 million and $1.5 million, respectively, based primarily on their ownership of Sunrise and its real estate projects, knowing that the company and its projects had no value. In June 2007, Ibrahim and Zahid obtained a $7.2 million loan from Cole Taylor Bank to construct high-rise condominiums at Leland and Clarendon avenues in Chicago. They allegedly submitted false personal financial statements reflecting that they had a net worth of approximately $10.4 million and $687,305, respectively, knowing that they had no such personal worth to guarantee the loan. Similarly, Mahmood alone allegedly fraudulently obtained a $1.2 million loan from Devon Bank to build a high-rise condominium building at 2215 Madison St., Chicago.
The government is being represented by Assistant U.S. Attorney Sunil Harjani.
The investigation falls under the umbrella of the Financial Fraud Enforcement Task Force, which includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit: www.StopFraud.gov.
Each count in the indictment, except the conspiracy count against Mahmood, carries a maximum penalty of 30 years in prison and a $1 million fine, and restitution is mandatory. The conspiracy count carries a maximum penalty of five years in prison and a $250,000 fine. The Court may also impose a fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. If convicted, however, the Court must determine a reasonable sentence to impose under the advisory United States Sentencing Guidelines.
An indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

Redemption / Strawman / Bond Fraud

Proponents of this scheme claim that the U.S. government or the Treasury Department control bank accounts—often referred to as “U.S. Treasury Direct Accounts”—for all U.S. citizens that can be accessed by submitting paperwork with state and federal authorities. Individuals promoting this scam frequently cite various discredited legal theories and may refer to the scheme as “Redemption,” “Strawman,” or “Acceptance for Value.” Trainers and websites will often charge large fees for “kits” that teach individuals how to perpetrate this scheme. They will often imply that others have had great success in discharging debt and purchasing merchandise such as cars and homes. Failures to implement the scheme successfully are attributed to individuals not following instructions in a specific order or not filing paperwork at correct times.

This scheme predominately uses fraudulent financial documents that appear to be legitimate. These documents are frequently referred to as “bills of exchange,” “promissory bonds,” “indemnity bonds,” “offset bonds,” “sight drafts,” or “comptrollers warrants.” In addition, other official documents are used outside of their intended purpose, like IRS forms 1099, 1099-OID, and 8300. This scheme frequently intermingles legal and pseudo legal terminology in order to appear lawful. Notaries may be used in an attempt to make the fraud appear legitimate. Often, victims of the scheme are instructed to address their paperwork to the U.S. Secretary of the Treasury.

Tips for Avoiding Redemption/Strawman/Bond Fraud:

* Be wary of individuals or groups selling kits that they claim will inform you on to access secret bank accounts.
* Be wary of individuals or groups proclaiming that paying federal and/or state income tax is not necessary.
* Do not believe that the U.S. Treasury controls bank accounts for all citizens.
* Be skeptical of individuals advocating that speeding tickets, summons, bills, tax notifications, or similar documents can be resolved by writing “acceptance for value” on them.
* If you know of anyone advocating the use of property liens to coerce acceptance of this scheme, contact your local FBI office.

Advance Fee Schemes

An advance fee scheme occurs when the victim pays money to someone in anticipation of receiving something of greater value—such as a loan, contract, investment, or gift—and then receives little or nothing in return.

The variety of advance fee schemes is limited only by the imagination of the con artists who offer them. They may involve the sale of products or services, the offering of investments, lottery winnings, “found money,” or many other “opportunities.” Clever con artists will offer to find financing arrangements for their clients who pay a “finder’s fee” in advance. They require their clients to sign contracts in which they agree to pay the fee when they are introduced to the financing source. Victims often learn that they are ineligible for financing only after they have paid the “finder” according to the contract. Such agreements may be legal unless it can be shown that the “finder” never had the intention or the ability to provide financing for the victims.

Tips for Avoiding Advanced Fee Schemes:

If the offer of an “opportunity” appears too good to be true, it probably is. Follow common business practice. For example, legitimate business is rarely conducted in cash on a street corner.

* Know who you are dealing with. If you have not heard of a person or company that you intend to do business with, learn more about them. Depending on the amount of money that you plan on spending, you may want to visit the business location, check with the Better Business Bureau, or consult with your bank, an attorney, or the police.
* Make sure you fully understand any business agreement that you enter into. If the terms are complex, have them reviewed by a competent attorney.
* Be wary of businesses that operate out of post office boxes or mail drops and do not have a street address. Also be suspicious when dealing with persons who do not have a direct telephone line and who are never in when you call, but always return your call later.
* Be wary of business deals that require you to sign nondisclosure or non-circumvention agreements that are designed to prevent you from independently verifying the bona fides of the people with whom you intend to do business. Con artists often use non-circumvention agreements to threaten their victims with civil suit if they report their losses to law enforcement.

For more information:
- Work-at-Home Advance Fee Scheme
- Cancer Research Advance Fee Scheme

Identity Theft

Identity theft occurs when someone assumes your identity to perform a fraud or other criminal act. Criminals can get the information they need to assume your identity from a variety of sources, including by stealing your wallet, rifling through your trash, or by compromising your credit or bank information. They may approach you in person, by telephone, or on the Internet and ask you for the information.

The sources of information about you are so numerous that you cannot prevent the theft of your identity. But you can minimize your risk of loss by following a few simple hints.

Tips for Avoiding Identity Theft:

* Never throw away ATM receipts, credit statements, credit cards, or bank statements in a usable form.
* Never give your credit card number over the telephone unless you make the call.
* Reconcile your bank account monthly, and notify your bank of discrepancies immediately.
* Keep a list of telephone numbers to call to report the loss or theft of your wallet, credit cards, etc.
* Report unauthorized financial transactions to your bank, credit card company, and the police as soon as you detect them.
* Review a copy of your credit report at least once each year. Notify the credit bureau in writing of any questionable entries and follow through until they are explained or removed.
* If your identity has been assumed, ask the credit bureau to print a statement to that effect in your credit report.
* If you know of anyone who receives mail from credit card companies or banks in the names of others, report it to local or federal law enforcement authorities.

Investment-Related Scams

Letter of Credit Fraud

Legitimate letters of credit are never sold or offered as investments. They are issued by banks to ensure payment for goods shipped in connection with international trade. Payment on a letter of credit generally requires that the paying bank receive documentation certifying that the goods ordered have been shipped and are en route to their intended destination. Letters of credit frauds are often attempted against banks by providing false documentation to show that goods were shipped when, in fact, no goods or inferior goods were shipped.

Other letter of credit frauds occur when con artists offer a “letter of credit” or “bank guarantee” as an investment wherein the investor is promised huge interest rates on the order of 100 to 300 percent annually. Such investment “opportunities” simply do not exist. (See Prime Bank Notes for additional information.)

Tips for Avoiding Letter of Credit Fraud:

* If an “opportunity” appears too good to be true, it probably is.
* Do not invest in anything unless you understand the deal. Con artists rely on complex transactions and faulty logic to “explain” fraudulent investment schemes.
* Do not invest or attempt to “purchase” a “letter of credit.” Such investments simply do not exist.
* Be wary of any investment that offers the promise of extremely high yields.
* Independently verify the terms of any investment that you intend to make, including the parties involved and the nature of the investment.

Prime Bank Note Fraud

International fraud artists have invented an investment scheme that supposedly offers extremely high yields in a relatively short period of time. In this scheme, they claim to have access to “bank guarantees” that they can buy at a discount and sell at a premium. By reselling the “bank guarantees” several times, they claim to be able to produce exceptional returns on investment. For example, if $10 million worth of “bank guarantees” can be sold at a two percent profit on 10 separate occasions—or “traunches”—the seller would receive a 20 percent profit. Such a scheme is often referred to as a “roll program.”

To make their schemes more enticing, con artists often refer to the “guarantees” as being issued by the world’s “prime banks,” hence the term “prime bank guarantees.” Other official sounding terms are also used, such as “prime bank notes” and “prime bank debentures.” Legal documents associated with such schemes often require the victim to enter into non-disclosure and non-circumvention agreements, offer returns on investment in “a year and a day”, and claim to use forms required by the International Chamber of Commerce (ICC). In fact, the ICC has issued a warning to all potential investors that no such investments exist.

The purpose of these frauds is generally to encourage the victim to send money to a foreign bank, where it is eventually transferred to an off-shore account in the control of the con artist. From there, the victim’s money is used for the perpetrator’s personal expenses or is laundered in an effort to make it disappear.

While foreign banks use instruments called “bank guarantees” in the same manner that U.S. banks use letters of credit to insure payment for goods in international trade, such bank guarantees are never traded or sold on any kind of market.

Tips for Avoiding Prime Bank Note Fraud:

* Think before you invest in anything. Be wary of an investment in any scheme, referred to as a “roll program,” that offers unusually high yields by buying and selling anything issued by “prime banks.”
* As with any investment, perform due diligence. Independently verify the identity of the people involved, the veracity of the deal, and the existence of the security in which you plan to invest.
* Be wary of business deals that require non-disclosure or non-circumvention agreements that are designed to prevent you from independently verifying information about the investment.

“Ponzi’ Schemes

“Ponzi” schemes promise high financial returns or dividends not available through traditional investments. Instead of investing the funds of victims, however, the con artist pays “dividends” to initial investors using the funds of subsequent investors. The scheme generally falls apart when the operator flees with all of the proceeds or when a sufficient number of new investors cannot be found to allow the continued payment of “dividends.”

This type of fraud is named after its creator—Charles Ponzi of Boston, Massachusetts. In the early 1900s, Ponzi launched a scheme that guaranteed investors a 50 percent return on their investment in postal coupons. Although he was able to pay his initial backers, the scheme dissolved when he was unable to pay later investors.

Tips for Avoiding Ponzi Schemes:

* Be careful of any investment opportunity that makes exaggerated earnings claims.
* Exercise due diligence in selecting investments and the people with whom you invest—in other words, do your homework.
* Consult an unbiased third party—like an unconnected broker or licensed financial advisor—before investing.

For more information:
- Bernie Madoff Case
- Stanford Case
- Wholesale Grocery Distribution Ponzi Scheme
- ATM Ponzi Scheme
- Victims Turn Tables with Ponzi Scheme

Pyramid Schemes

As in Ponzi schemes, the money collected from newer victims of the fraud is paid to earlier victims to provide a veneer of legitimacy. In pyramid schemes, however, the victims themselves are induced to recruit further victims through the payment of recruitment commissions.

More specifically, pyramid schemes—also referred to as franchise fraud or chain referral schemes—are marketing and investment frauds in which an individual is offered a distributorship or franchise to market a particular product. The real profit is earned, not by the sale of the product, but by the sale of new distributorships. Emphasis on selling franchises rather than the product eventually leads to a point where the supply of potential investors is exhausted and the pyramid collapses. At the heart of each pyramid scheme is typically a representation that new participants can recoup their original investments by inducing two or more prospects to make the same investment. Promoters fail to tell prospective participants that this is mathematically impossible for everyone to do, since some participants drop out, while others recoup their original investments and then drop out.

Tips for Avoiding Pyramid Schemes:

* Be wary of “opportunities” to invest your money in franchises or investments that require you to bring in subsequent investors to increase your profit or recoup your initial investment.
* Independently verify the legitimacy of any franchise or investment before you invest.

Market Manipulation or “Pump and Dump” Fraud

This scheme—commonly referred to as a “pump and dump”—creates artificial buying pressure for a targeted security, generally a low-trading volume issuer in the over-the-counter securities market largely controlled by the fraud perpetrators. This artificially increased trading volume has the effect of artificially increasing the price of the targeted security (i.e., the “pump”), which is rapidly sold off into the inflated market for the security by the fraud perpetrators (i.e., the “dump”); resulting in illicit gains to the perpetrators and losses to innocent third party investors. Typically, the increased trading volume is generated by inducing unwitting investors to purchase shares of the targeted security through false or deceptive sales practices and/or public information releases.

A modern variation on this scheme involves largely foreign-based computer criminals gaining unauthorized access to the online brokerage accounts of unsuspecting victims in the United States. These victim accounts are then utilized to engage in coordinated online purchases of the targeted security to affect the pump portion of a manipulation, while the fraud perpetrators sell their pre-existing holdings in the targeted security into the inflated market to complete the dump.

Tips for Avoiding Market Manipulation Fraud:

* Don’t believe the hype.
* Find out where the stock trades.
* Independently verify claims.
* Research the opportunity.
* Beware of high-pressure pitches.
* Always be skeptical.

For more information:
- Operation Shore Shells investigation

Telemarketing Fraud

When you send money to people you do not know personally or give personal or financial information to unknown callers, you increase your chances of becoming a victim of telemarketing fraud.

Here are some warning signs of telemarketing fraud—what a caller may tell you:

* “You must act ‘now’ or the offer won’t be good.”
* “You’ve won a ‘free’ gift, vacation, or prize.” But you have to pay for “postage and handling” or other charges.
* “You must send money, give a credit card or bank account number, or have a check picked up by courier.” You may hear this before you have had a chance to consider the offer carefully.
* “You don’t need to check out the company with anyone.” The callers say you do not need to speak to anyone including your family, lawyer, accountant, local Better Business Bureau, or consumer protection agency.
* “You don’t need any written information about their company or their references.”
* “You can’t afford to miss this ‘high-profit, no-risk’ offer.”

If you hear these or similar “lines” from a telephone salesperson, just say “no thank you” and hang up the telephone.

Tips for Avoiding Telemarketing Fraud:

It’s very difficult to get your money back if you’ve been cheated over the telephone. Before you buy anything by telephone, remember:

* Don’t buy from an unfamiliar company. Legitimate businesses understand that you want more information about their company and are happy to comply.
* Always ask for and wait until you receive written material about any offer or charity. If you get brochures about costly investments, ask someone whose financial advice you trust to review them. But, unfortunately, beware—not everything written down is true.
* Always check out unfamiliar companies with your local consumer protection agency, Better Business Bureau, state attorney general, the National Fraud Information Center, or other watchdog groups. Unfortunately, not all bad businesses can be identified through these organizations.
* Obtain a salesperson’s name, business identity, telephone number, street address, mailing address, and business license number before you transact business. Some con artists give out false names, telephone numbers, addresses, and business license numbers. Verify the accuracy of these items.
* Before you give money to a charity or make an investment, find out what percentage of the money is paid in commissions and what percentage actually goes to the charity or investment.
* Before you send money, ask yourself a simple question. “What guarantee do I really have that this solicitor will use my money in the manner we agreed upon?”
* Don’t pay in advance for services. Pay services only after they are delivered.
* Be wary of companies that want to send a messenger to your home to pick up money, claiming it is part of their service to you. In reality, they are taking your money without leaving any trace of who they are or where they can be reached.
* Always take your time making a decision. Legitimate companies won’t pressure you to make a snap decision.
* Don’t pay for a “free prize.” If a caller tells you the payment is for taxes, he or she is violating federal law.
* Before you receive your next sales pitch, decide what your limits are—the kinds of financial information you will and won’t give out on the telephone.
* Be sure to talk over big investments offered by telephone salespeople with a trusted friend, family member, or financial advisor. It’s never rude to wait and think about an offer.
* Never respond to an offer you don’t understand thoroughly.
* Never send money or give out personal information such as credit card numbers and expiration dates, bank account numbers, dates of birth, or social security numbers to unfamiliar companies or unknown persons.
* Be aware that your personal information is often brokered to telemarketers through third parties.
* If you have been victimized once, be wary of persons who call offering to help you recover your losses for a fee paid in advance.
* If you have information about a fraud, report it to state, local, or federal law enforcement agencies.

For More information:
- Telemarketing Fraud Targeting Seniors

Nigerian Letter or “419” Fraud

Nigerian letter frauds combine the threat of impersonation fraud with a variation of an advance fee scheme in which a letter mailed from Nigeria offers the recipient the “opportunity” to share in a percentage of millions of dollars that the author—a self-proclaimed government official—is trying to transfer illegally out of Nigeria. The recipient is encouraged to send information to the author, such as blank letterhead stationery, bank name and account numbers, and other identifying information using a fax number provided in the letter. Some of these letters have also been received via e-mail through the Internet. The scheme relies on convincing a willing victim, who has demonstrated a “propensity for larceny” by responding to the invitation, to send money to the author of the letter in Nigeria in several installments of increasing amounts for a variety of reasons.

Payment of taxes, bribes to government officials, and legal fees are often described in great detail with the promise that all expenses will be reimbursed as soon as the funds are spirited out of Nigeria. In actuality, the millions of dollars do not exist, and the victim eventually ends up with nothing but loss. Once the victim stops sending money, the perpetrators have been known to use the personal information and checks that they received to impersonate the victim, draining bank accounts and credit card balances. While such an invitation impresses most law-abiding citizens as a laughable hoax, millions of dollars in losses are caused by these schemes annually. Some victims have been lured to Nigeria, where they have been imprisoned against their will along with losing large sums of money. The Nigerian government is not sympathetic to victims of these schemes, since the victim actually conspires to remove funds from Nigeria in a manner that is contrary to Nigerian law. The schemes themselves violate section 419 of the Nigerian criminal code, hence the label “419 fraud.”

Tips for Avoiding Nigerian Letter or “419″ Fraud:

* If you receive a letter from Nigeria asking you to send personal or banking information, do not reply in any manner. Send the letter to the U.S. Secret Service, your local FBI office, or the U.S. Postal Inspection Service. You can also register a complaint with the Federal Trade Commission’s Complaint Assistant.
* If you know someone who is corresponding in one of these schemes, encourage that person to contact the FBI or the U.S. Secret Service as soon as possible.
* Be skeptical of individuals representing themselves as Nigerian or foreign government officials asking for your help in placing large sums of money in overseas bank accounts.
* Do not believe the promise of large sums of money for your cooperation.
* Guard your account information carefully.

For More information:
- Related Online Rental Ads Scheme
- Related Spanish Lottery Scam

Health Care Fraud or Health Insurance Fraud

Medical Equipment Fraud:

Equipment manufacturers offer “free” products to individuals. Insurers are then charged for products that were not needed and/or may not have been delivered.

“Rolling Lab” Schemes:

Unnecessary and sometimes fake tests are given to individuals at health clubs, retirement homes, or shopping malls and billed to insurance companies or Medicare.

Services Not Performed:

Customers or providers bill insurers for services never rendered by changing bills or submitting fake ones.

Medicare Fraud:

Medicare fraud can take the form of any of the health insurance frauds described above. Senior citizens are frequent targets of Medicare schemes, especially by medical equipment manufacturers who offer seniors free medical products in exchange for their Medicare numbers. Because a physician has to sign a form certifying that equipment or testing is needed before Medicare pays for it, con artists fake signatures or bribe corrupt doctors to sign the forms. Once a signature is in place, the manufacturers bill Medicare for merchandise or service that was not needed or was not ordered.

Tips for Avoiding Health Care Fraud or Health Insurance Fraud:

* Never sign blank insurance claim forms.
* Never give blanket authorization to a medical provider to bill for services rendered.
* Ask your medical providers what they will charge and what you will be expected to pay out-of-pocket.
* Carefully review your insurer’s explanation of the benefits statement. Call your insurer and provider if you have questions.
* Do not do business with door-to-door or telephone salespeople who tell you that services of medical equipment are free.
* Give your insurance/Medicare identification only to those who have provided you with medical services.
* Keep accurate records of all health care appointments.
* Know if your physician ordered equipment for you.

For more information:
- Heath Care Fraud webpage

The trustee in a bankruptcy case tied to a multimillion-dollar mortgage fraud allegation has filed a malpractice complaint against the debtor’s brother and is seeking more than $300 million in damages.

Derek Henderson is the trustee in bankruptcy cases filed by Chris Evans of Madison County and his companies. Evans’ brother, Charles Evans, is a Jackson lawyer who handled title work for Mississippi Valley Title Co. in several of the land transactions alleged to be part of the fraud.

The FBI and U.S. attorney’s office are investigating the allegations. John Colette, the Evans brothers’ attorney in any possible criminal case, said no charges have been filed against either brother.

In his Jan. 27 complaint, Henderson alleges Charles Evans failed Chris Evans in several ways and is asking a judge to award $50 million in damages, in addition to punitive and special damages to be determined by the judge.

Tylvestor Goss, Chris Evans’ bankruptcy attorney, would not comment.

Henderson was ill Monday and could not be reached for comment. Judge Neil Olack has given Charles Evans, who is representing himself, until March 1 to respond to Henderson’s complaint.

In court documents, the brothers have been accused of getting multiple loans from various banks on individual properties, including a part of Highland Colony Parkway. Each bank believed itself to be the sole lienholder.

In his complaint, Henderson alleges Charles Evans failed to protect the assets of the companies and Chris Evans. Henderson also alleges Charles Evans allowed money and assets to be “commingled and misappropriated.”

In the filing, Henderson said Charles Evans should have known his actions were a breach that would harm his brother, the companies and their creditors.

Mississippi Valley Title issued policies insuring the accuracy of titles involved. At least $41 million in claims have been filed against Mississippi Valley Title and its parent company, Old Republic National Title Insurance Co.

Charles Evans has not filed bankruptcy, but he and his brother were both named in lawsuits filed by several banks.

After Chris Evans filed bankruptcy in October, more than 30 companies the Evans brothers set up or controlled also filed Chapter 7 bankruptcy.

Several banks in the case are asking the judge to lift the stay that prevents them from moving forward with the individual properties tied to their loans.
Henderson, however, has filed a motion asking the judge to allow him to sell the land on the open market.