fraud

October 6, 2023

DOJ Charges Hundreds for COVID-19 Pandemic Relief Fraud

by Law Offices of David L. Freidberg, P.C.

The Department of Justice has announced charges against hundreds of individuals for COVID-19 relief fraud following an operation conducted by federal, state, and local law enforcement agencies. Many of those facing charges have ties to organized crime, according to the DOJ. In one case, authorities allege that the pandemic relief aid was used to pay for a murder.

The DOJ has announced charges against over 300 defendants in these cases who allegedly stole more than $830 million from the federal government by making fraudulent claims. In this article, a Chicago criminal defense attorney will discuss pandemic relief fraud, how it works, and prosecutors’ efforts to hold those who stole money accountable for their actions.

Understanding COVID-19 Relief Fraud

July 26, 2023

Chicago Rapper to Plead Guilty to Using Stolen Credit Cards to Pay for Private Jets

by Law Offices of David L. Freidberg, P.C.

A local Chicago rapper is going to plead guilty to using stolen credit cards to pay for private jet rides, luxury vehicles, and “designer” puppies. The charges were filed by the federal government in this case. The rapper is facing one count of conspiracy to commit wire fraud and two counts of aggravated identity theft, according to the court filing. Officials say he is one of six codefendants in the case.

The rapper will plead guilty to one count of wire fraud and another count of making false statements. A wire fraud conviction carries a maximum sentence of 20 years in federal prison. Prosecutors have filed paperwork affirming the agreement, but the judge still needs to sign off on the plea deal. Two counts of aggravated identity theft were dropped in negotiating the plea agreement.

Wire Fraud and Conspiracy to Commit Wire Fraud

June 28, 2023

Chicago Pharmacist Convicted of Selling Blank Vax Cards on eBay

by Law Offices of David L. Freidberg, P.C.

A Chicago pharmacist has been convicted of stealing and then selling blank COVID-19 vaccination cards on eBay. The announcement came from the Justice Department, which claimed that the pharmacist stole CDC-issued vaccination cards and made them available to eBay users across the country. The Justice Department claims that over three weeks, the pharmacist listed over 650 vaccination cards on the online marketplace. They claim he sold the cards to over 200 individual buyers and pocketed more than $5,600 due to the illicit sales.

The government was able to present evidence of the transactions and correspondence sent between the pharmacist and buyers. The pharmacist was convicted of 12 counts of theft of government property.

His attorney plans to appeal the verdict, claiming that the cards were not government property and that the government never exerted any control over them to make them their property. Instead, The government made the cards available to pharmacies like Walgreens, which distributed the cards after patients received COVID-19 vaccinations. In other words, the government exerted no supervision over the cards. They only printed them and then distributed them to pharmacies.

March 8, 2023

Woman Uses Dead People to Defraud Federal Government

by Law Offices of David L. Freidberg, P.C.

A Chicago woman will spend the next five years in federal prison after authorities convicted her of using the identities of dead people to commit fraud against the federal government. According to the authorities, the woman used the identities to apply for benefits, some of which were disbursed during the coronavirus as pandemic aid packages.

The woman acquired the identities of murder victims to pull off the scam. Authorities say it netted over $45,000 in profit. The information was used to file tax returns and pandemic-related entitlements. The woman would pose as relatives of the murder victims to collect payments on their behalf.

Prosecutors characterized the theft as “morally repugnant.” The woman had prior convictions for various forms of fraud. The court, in passing sentence, characterized her as a career criminal who had multiple opportunities to turn away from a life of crime but chose fraud anyway.

September 23, 2022

47 Charged in Scheme to Defraud Pandemic Relief

by Law Offices of David L. Freidberg, P.C.

There are 47 defendants in a federal lawsuit filed against the perpetrators of a $250 million scheme to defraud a pandemic-related relief program that earmarked funds for starving children. The Department of Justice announced that it was the largest pandemic relief fraud to date. The defendants have been charged with wire fraud, conspiracy to commit wire fraud, money laundering, and bribery. Federal prosecutors will push hard for maximum sentences as the federal government tends to take it personally when you deprive needy children of necessary food.

The fraud targeted the Federal Child Nutrition Program. The program sends federal funds to state governments to ensure that children in need are provided with daily meals. Each state has its own agency that oversees these federal funds. Reimbursements are conducted on a per-meal basis, and providers are allowed to keep 15% of the disbursed funds for administrative costs. Individual sponsors apply for applications through their state government and then coordinate meal plans with children in need. During the COVID pandemic, the federal government waived some of the requirements allowing for-profit businesses to partake in the program. It also allowed off-site food distribution for children.

The scheme called for the opening of fake food distribution sites to secure federal money from state governments. The fraudsters are accused of opening fake food distribution sites and then lying about how many meals they serve. The defendants created shell companies to take the funds, and then more shell companies to launder the proceeds. They submitted falsified reports to the federal government and fake attendance rosters of children who were served meals. They then used the proceeds to buy luxury items. The defendants used a website that randomly generates fake names and an Excel formula to randomly generate ages between 7 and 17.

June 3, 2022

Serial Conwoman Takes Plea in Bizarre Scam

by Law Offices of David L. Freidberg, P.C.

She was the “first African-American woman” to hold the title of Director of Special Investigations for the State of Illinois. She was the only woman to ever hold the position. She was the only African-American to ever hold the position. She was the only person ever to have held the position, largely because the position did not exist. It was invented by the only person ever to have held it. But the spectacle of her having received awards and commendation for the position was videotaped for all to see. The defendant had hired the participants to act in these ceremonies including individuals who posed as judges. According to the participants, they were never paid. Therein lies the fraud. The fraudster told the actors that judges were not available for her swearing-in ceremony which is why she required paid actors. The theft of services adds up to over $21,000.

In addition, the defendant coaxed others into advancing her money under false pretenses; money she had no intention of ever paying back. She was also charged with writing fake checks to landlords, letting the checks bounce, and then forcing the landlords to evict her when she refused to pay. She was able to sustain housing like this for an extended period of time.

She has since pleaded guilty to five counts of theft by deception and one count of impersonating a state employee. The prosecution has agreed to recommend a five-year sentence, but the defendant’s actual sentence will be up to the court.

April 8, 2022

Verdict Alert: Water Polo Coach Accused of Bribery and Fraud

by Law Offices of David L. Freidberg, P.C.

Closing arguments are currently underway in a trial against a USC water polo coach. The coach is accused of faking test scores and inventing athletic achievements including using his role as a water polo coach to help rich applicants secure spots at the exclusive college.

According to prosecutors, wealthy parents paid over $200,000 so that the coach could establish their children as water polo recruits to gain acceptance. Attorneys for the defendant claim that their client never took a bribe. His attorneys claim that some of the money was deposited into the water polo team’s coffers with the rest of it being scholarship money awarded by a non-profit for the coach’s children. However, the non-profit organizer is a close crony of the coach and is considered the mastermind behind the bribery scheme which targeted several schools.

60 people have been charged in the scheme to help rich people get their low-performing children into exclusive schools. The water polo coach is the only one to fight the charges at trial. The investigation took down Lori Laughlin of Full House fame and other notable celebrities.

April 6, 2022

Father Convicted in Bizarre Exploitation of College Women

by Law Offices of David L. Freidberg, P.C.

Larry Ray is going to prison, perhaps for life, after a New York jury convicted him on 15 counts all related to the exploitation and extortion of his daughter’s friends. Ray managed to convince his daughter to allow him to move into the dorms shortly after he was released from prison on a securities fraud conviction.

Ray managed to convince one victim that she had poisoned him and owed him reparations. The woman paid between $10,000 and $50,000 per week to make amends, at one point even performing sex work to make payments. Another woman revealed that her life was turned upside down when she met Ray. She was on track to become a medical doctor when she became romantically involved with him. He would often ask her to have sex with other men while he videotaped it.

The entire scheme appears to have hinged on Ray using a Svengali-like ability to manipulate those around him. Ray was able to convince several students that they had poisoned him after he agreed to let them stay at his apartment. To make amends, they did as Ray asked, including giving him a lot of money, performing yard work, and more.

September 24, 2021

Defendants Face Vaccine Card Charges

by Law Offices of David L. Freidberg, P.C.

Federal authorities have announced the arrest of two individuals who have been accused of embezzling vaccine cards from their place of employment for sale elsewhere. The first defendant is a registered nurse who stole vaccine cards from her employer at the VA Hospital. Another defendant is facing charges that he purchased counterfeit vaccine cards and attempted to sell them on Facebook.

The nurse is facing charges of theft of government property and embezzlement related to a health care benefit program. The Facebook guy is facing charges for trafficking in counterfeit goods and fraud related to official government documents. The charges have been filed and prosecuted by the U.S. State Attorney’s office meaning that both defendants will face federal charges for their role in distributing fraudulent vaccine cards.

The government does not take kindly to those defrauding the system. They contend such efforts place everyone at risk and undermine the efforts of health officials.

September 15, 2021

Chicago Woman Facing Fraud Charges After Collecting Checks From Gun Victims

by Law Offices of David L. Freidberg, P.C.

A Chicago woman is facing federal fraud charges after posing as the relative of young gun violence victims. In one case, she posed as the relative of a 7-year-old boy who was fatally shot in 2015. The 50-year-old woman posed as the boy’s aunt when she attempted to acquire the boy’s death certificate in 2019 and then filed a fraudulent tax return in the dead boy’s name.

The same defendant was given an 11-year sentence on similar charges of aggravated identity theft and wire fraud. The woman was on supervised release when she was arrested for this crime, according to prosecutors.

Prosecutors described the woman as a career con-artist who used her considerable innate abilities to steal from others as opposed to doing something useful to society. The fraud was discovered by an employee at Cook County Vital Records after he noticed that the same woman put in a request for four death certificates on the same day. The woman claimed to be the sister of each of the deceased, but each deceased individual had a different name. A check of the records showed that the woman had placed requests for 37 death certificates all in 2019 alone. Each of the individuals whose birth certificates she requested were recent homicide victims—mostly children. She was able to recover earned income and child tax credits on the deceased children, earning a passive income from her Southside home. The woman was also able to recover several COVID stimulus checks while those were still being issued.