According to reports, FBI Director Kash Patel plans to team up with Nassau County Executive Bruce Blakeman to tackle widespread Medicaid fraud scams ongoing in New York state. The duo plans on creating a coordinated effort led by the FBI and the Nassau Police Department to specifically go after New York state’s alleged Medicaid fraud involving Nassau University Medical Center.

The healthcare organization is alleging that New York state has illegally and unfairly withheld over $1 billion in Medicaid funds over the past 20 years by refusing to pay out valid insurance claims.

The state’s refusal to pay out these valid claims could be, according to Attorney General Pam Bondi, a violation of federal Medicaid laws and an intentional breach of contract with the federal government.

After looking into the situation, it’s clear that these allegations have been ongoing for a long time. The Nassau Health Care Corporation, which oversees the hospital, decided to initiate a lawsuit last year regarding the situation. The lawsuit names Nassau County Interim Finance Authority as being grossly negligent in handling the hospital’s claims. NIFA reportedly assumed financial control of the medical center in 2020 but failed to acknowledge the widespread Medicaid fraud and reduced aid were creating a financially distressing situation for both the hospital and some of the patients.

Now, the company additionally believes they are being retaliated against.

Facing Fraud Charges in New York

Under the law in New York, fraud is defined as falsely representing facts by conduct or words that are misleading or in a way that conceals relevant information that should be disclosed. Fraud is deliberate, and Medicaid fraud happens when someone intentionally misrepresents their situation in order to receive monetary benefits through the Medicaid program.

Some of the most common forms of Medicaid fraud are phantom billing, upcoding, unbundling services, arranging kickback agreements, double billing, patient identity theft, prescription drug fraud, and misrepresenting qualifications.

Medicaid fraud is taken very seriously in New York. Each individual violation could lead to up to 10 years in prison. If the fraud led to a serious bodily injury for a patient, then the violation could result in up to 20 years in prison. Each violation could also result in fines of up to $250,000 for individuals and $500,000 for organizations.

If you’re a healthcare provider, then you will likely have your medical license suspended or revoked entirely. You might also face mandatory supervision requirements and more stringent reporting requirements. You might also be excluded from participating in the Medicaid program for a minimum of five years depending on the nature of your specific violation. Unfortunately, a conviction often leads other private insurance companies to also terminate contracts with your organization.

The best way to avoid all these consequences is to prevent a Medicaid fraud conviction. A solid lawyer can help you navigate your situation and help you minimize the fallout from facing charges.

Schedule a free phone call with our team to discuss your case and get a free evaluation from our lawyers.

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Big Brother is watching. That statement is not an exaggeration — anymore. When Ed Snowden exposed classified documents, most people were astonished to find out just how much access the National Security Agency has to email and phone records of everyday citizens. Since Snowden leaked the documents, an ongoing debate about surveillance and privacy has been the background music to civil liberties. Even local communities where technology permits the police to indiscriminately gather data are talking.

As technology changes the balance between the citizen and state, the government and law enforcement increases their access to our privacy activities, and civil liberties are threatened.

Everything from constitutional rights, crime-fighting, and national security have been invoked in the legal doctrines post 9/11. Law enforcement has access to electronic records which even includes the ubiquitous cellphone.

Post 9/11

Following 9/11 New York City rushed to develop the most sophisticated networks in America. Since then the NYPD has expanded the use and permit local precinct commanders to use the high-tech tools which were meant for counterterrorism measures.

Paul Browne, an NYPD spokesman, said, “The technology was engineered with a sense of urgency following 9/11 but has applications to crime fighting.”

New York is one of few large American cities which developed broad surveillance networks in recent years. Using federal funding the city’s web was modeled after London’s “Ring of Steel,” the most extensive surveillance camera network globally.

Despite being built with Homeland Security grants, there are no legal restrictions against using the surveillance network to fight traditional crime. The system’s scope and sophistication worry many people.

“There is no outside monitoring of the system at all,” points out Christopher Dunn, associate legal director of New York’s Civil Liberties Union. The group filed a lawsuit claiming the police violated religious freedoms by using the surveillance apparatus to monitor Muslim communities.

Domain Awareness System

The NYPD has introduced “Domain Awareness System,” DAS, which was developed in partnership with Microsoft and funded by U.S. Homeland Security grants.

Coming to over $230 million, the system’s software connects the NYPD’s resources such as surveillance cameras, license scanners, and radiation sensors to 911 calls, criminal records, and other city databases. The information is displayed on a user-friendly interface. Access was initially limited to desktops located in select precinct houses, but now mobile terminals are in each of the city’s 76 precincts, patrol cars and even beat cops with a cell phone or tablet.

License Plate Readers

Deploying over one hundred license plate readers on city bridges, tunnels and traffic lights, every car that moves into, or out of, the city is captured photographically. The city’s plans call for an increase in the readers to over 200 with another 100 being attached to squad cars’ hoods. According to Browne NYPD’s database contains information on more than 16 million license plates.

Civil liberties attorneys see the system as tantamount to bypassing the Fourth Amendment.

“An inclusive license-plate reader is the same thing as attaching police GPS devices to civilian vehicles as the system permits law enforcement to follow movements citywide,” said a spokesman for the NYCLU. “The public would never stand for routine GPS tracking by law enforcement, but this system is pushing us that direction.”

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Lithuanian cyber thief  Evaldas Rimasauskas allegedly ripped off Facebook and Google for a cool $100 million scam using a phishing plot. Rimasauskas will be extradited to America to stand trial. 

The same scheme which caught Rimasauskas has caught up with a New York personal trainer. Shannon Pettinger, 43, was arrested and accused of grand larceny for her part in the phishing scam which targeted businesses as well. 

Phishing is gaining in notoriety and connections  through Internet come-ons found on Google, Facebook and other social media sites. It’s appealing to anyone greedy and interested in making some quick cash.

The branch of the scheme which caught Pettinger is called “The Business Email Compromise” by the FBI and is growing more common. Between 2013 and 2016 over 40,000 such crimes walked away with $5 billion. 

Between May and December 2016, American companies alone lost more than $345 million. 

The New York Police Department has documented more than 74 scams in the metro but believes the number is likely to go higher. 

“Companies don’t want to appear vulnerable,” said Greg Besson with the city’s Financial Crimes Task Force. “Businesses don’t enjoy  front-page stories saying don’t “put your cash here.” 

Orson Munn, CEO of the ad firm Munn Rabot did go straight to the police when he learned someone sent an email to an employee directing them to wire $50,000 to a Citizens Bank account for Shays Way, a shell company. 

Although Munn was asked by law enforcement not to discuss the details, Munn did say, “I need fairness to be followed.”

In Pettinger’s case, Isaac Branch, also with the FCTF said he essentially “followed the money,” recognized Pettinger and took the bank’s video footage of her taking money from the account. 

Petting appeared to be connected to a bigger plan and  attempted to wire money to a Chinese account over $49,000. 

Now, free on bail, Pettinger isn’t talking and hung up on a journalist who called her at her home. 

While it’s not clear how Pettinger got involved in the scam, the FBI says she is a small player in a larger scam. 

Often someone responds to an email for a money-making opportunity — such as working from home — and ends up with an assignment that gives them a piece of the amount stolen.

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Since the widespread use and each access of the Internet, some people have posted violent crimes online. Most of these videos are extremely gruesome and disturbing. Since it has become too easy, such violent and senseless crimes can be posted almost anytime and from anywhere.

Now, the State of New York is passing a bill that will make online streaming of violent crimes illegal. The government feels that this outrageous habit has reached a point where something needs to be done.

Most people agree that such morally depraved behavior should not be tolerated and criminals should not be allowed to seek fame while committing a violent crime.

The recent bill in Albany, New York will make it a class E felony to deliberately record a video or help another individual make a video while committing a violent felony. So far, the act is limited to punishing only those individuals actively involved in making the video and posting it online. The law has not mentioned anything about news organizations and bystanders that may capture the violent crime. The proposed law will carry a $5,000 fine and a penalty of up to four years in state prison.

Just this past week, three asylum seekers in Stockholm, Sweden received sentences of 6 months, one year and 27 months respectively for live streaming a gang rape. Most people in Sweden were outraged at such minimal sentences. Many are calling for social media sites like Facebook and YouTube to pay more attention to such despicable posts.

While YouTube has been fairly successful in limiting this activity, Facebook still lags far behind in clamping down on such videos. Just last week, an 18 year old Thai father live streamed the hanging of his 11 month old daughter. That video remained on Facebook for over 24 hours.

In February 2017, an Ohio female also live streamed the rape of a 17-year old girl. She was sentenced to only 9 months in jail. In the same month, another alleged criminal in Ohio live streamed herself raping a 4 year old boy.

While this New York Act may deter some people from live streaming violent crimes, the internet is very big and difficult to police. In addition, there is also the ‘dark web’ which is not policed and where all sorts of sinister activities take place. Why some people find it a thrill to live stream violent crimes is a real mystery but it appears that they are not in a minority and must be dealt with immediately.

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What would you do if you stole millions — and got away with it on one condition: You never leave your home country again.

Many cyber thieves have done just that. Stolen millions and despite being known to law enforcement authorities in America, there’s no action the authorities can take as the suspects are in Russia.

A few cyber hackers, with more money than sense, don’t lay low. One even bought a lemon-yellow Dodge Charger and had his picture taken close to the Kremlin.

Needless to say that image caught the attention of American authorities and they kept their eye on him. When he went on vacation to the Maldives America knew and had him picked up.

Some days it just doesn’t pay to get out of bed — or leave the country.

While American President Donald Trump dismisses suggestions that Moscow interfered in the recent election as “fake news,” the FBI and Congress have launched investigations into Russia’s possible role in Trump’s surprise election.

The impetus of the American campaign cycle has left Russian hackers with a problem. If they leave Russia, where there is no extradition treaty with America or one of Russia’s allies, they can get picked up and shipped to America.

Arkady Bukh, a criminal defense attorney in America, says, “They (the high-profile hackers) can’t travel. They understand the danger.” Bukh has defended multiple Russians accused of being cybercriminals.

Despite the threat,  hackers enjoy vacationing abroad — and often regret their travel plans. Maxim Senakh, 41, admitted guilt in a Minneapolis courtroom to managing a large robotic meshwork that sent millions of emails daily that allegedly made him millions in proceeds.

Senakh didn’t raise his hand and volunteer to come to America. He was vacationing at his sister’s home in Finland when the Finnish placed him on a plane bound for America. The capture was at in response to an American extradition application.

“He challenged it, the Russians opposed it, and Moscow put political force on Finland,” said prosecutor Kevin S. Ueland.

In March, 2017 Senakh struck a deal that will keep him in prison for up to five years.

Another Russian, Mark Vartanyan, pled guilty to electronic fraud in an Atlanta courthouse after making an agreement with the prosecution to provide cooperation that limited his prison sentence to five years or less. Vartanyan was sent to America by Norway in December.

“This is 21st-century theft. There’s no difference than if someone pulled a truck up to your home and emptied it,” said David Hickton, a former US attorney in Pennsylvania.

Hickton admitted that successful prosecutions of cyber criminals are challenging.

“These cyber investigations are complicated. We’re talking about disappearing evidence, borderless crimes and defendants who hide behind the borders of nations which don’t have extradition treaties with America,” Hickton said.

Cyber thieves and convicted hackers can’t be pigeonholed. Some are smart and remain low-key. Others flash their money and the lifestyles their wealth supports.

“Not all of them are rich,” Bukh said. “Many are involved in computer intrusion, and that doesn’t pay as well.”

Bukh recalled one client Aleksandr Panin who, in 2013, was put on a plane to Atlanta by authorities in the Dominican Republic. Panin was tried and convicted in an Atlanta courtroom.

“He couldn’t afford a car even with causing a billion dollars in business losses. He’s near a mad scientist geek,” Bukh said.

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Jane Park of New York City won big in the EuroMillions, Britain’s national lottery. Hours later, she was the quarry of blackmailers.

When she shared the new but refused to share the money, someone hacked her Snapchat account and posted a personal, and revealing, image of Park, 21. The posters demanded cash to return control of her account.

Park took home about $1 million but now claims the win “ruined her life.” After becoming the UK’s youngest winner, Park went through her cash on two properties and $60,000 worth of cars. Now she’s sold her furniture and her three-bedroom house and moved back with mom because she feels “lonely.”

In February, Park considered suing lottery bosses Camelot for permitting her to win such a huge amount since she was youthful and naive.

Computer Fraud and Abuse Act Reform

Things might have gone differently if Park lived in America.

America’s Computer Fraud and Abuse Act Reform, or CFAA, makes it illegal to deliberately enter a computer without authorization. The law doesn’t explain what “without authorization” means.

Creative prosecutors take advantage of this confusion to level criminal charges that aren’t about computer hacking but target other behavior. For example, in U.S. v Drew and U.S. v Nosal, Federal prosecutors claimed violating a private agreement amounts to a CFAA violation. Compounding the problem is the disproportionately harsh penalty. Even first-time offenders accessing a computer without “authorization” can spend up to five years in prison and ten years for each repeat offense. If other parts of the CFAA  are violated, the offender is looking at 10-years, 20-years or even life in prison.

Privacy is confusing in the USA. Many citizens still believe in outdated privacy myths and aren’t sure how to protect personal information. Most also don’t know which laws protect privacy and online security.

Pew Research Center found that American citizens lack confidence in everyday communications’ security and the organizations controlling them. Sixty-eight percent of American Internet users believe present laws aren’t good enough. As a result, individuals break the law daily as they try to protect their privacy through methods such as altering their IP address or use a VPN or Virtual Private Network.

Change Your IP: Go to Jail

The Electronic Frontier Foundation (EFF) proposes changes to the law to prevent prison time for “tinkerers, security researchers, and privacy seekers.” The EFF appears trying to make sure the punishment fits the crime.

One group, the EFF hopes to protect are users who take steps to change their IP address and comparable identifiers for the purpose of protecting their privacy.

At present, anyone seeking to change their MAC address or IP address is facing a lengthy prison stay — without access to the Internet.

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The leader in a global ticket-scam group was sent to prison Wednesday for four to twelve years. Prosecutors said he could have used his “high aptitude” for something other than misconduct.

Vadim Polyakov managed a group which was able to enter over 1,000 StubHub accounts. Next, along with cohorts, they would use the seized information to buy over 3,500 e-tickets to music productions and sporting events.

Even Prosecutor David Neeman called Polyakov as “intelligent and learned.”

“I am certain there were many chances for him to earn money legitimately– within the boundaries of the law,” the Assistant District Attorney said.

“Instead, he opted to use his knowledge and finesse to run a worldwide money laundering plot — for over a year and took in over a million bucks.”

Arkady Bukh, Polyakov’s defense attorney, spoke for his client and said Polyakov is apologetic and had “suffered a lot” while he waited for the day of reckoning.

Three co-conspirators are still awaiting trail.

Polyakov’s  arrest in 2014 couldn’t happen at a worse time.  Picked up outside his hotel in Salou, Spain, Polyakov found himself caught as the Obama administration highlighted a digial cold war between America and Russia.

American officials continue to refuse to confirm or deny reports of Russian hackers being behind sophisticated attacks on computer systems at the White House and State Department. Some reports point to the idea of cyber operating on instructions from Russia’s government; allegations were pushed aside by an assistant to Russian President Putin. “Blaming Russia has shifted to entertainment for some when it deals with cyber crime,” said the spokesman.

Tom Chapman, a manager with the cyber operations group EdgeWave, said, “Russian hackers are among the best in the world. They realize the strength of their cyber capabilities and are willing to use them.”

U.S. law enforcement has been stonewalled in their attempts to pursue cybercriminals in Russia. America’s best alternative has been to begin indictments and expect their targets to make blunders including traveling to nations with extradition agreements with America.

While Polyakov was being detained in Spain, Russia called his imminent extradition an unlawful application of American laws to a Russian citizen.

“The Polyakov case is a common theme,” said Bukh. “Polyakov is one of many Russian citizens America has succeeded in catching in similar circumstances in recent years.”

In July, Russian legislator, Valery Seleznyov challenged the American government for abducting his son, Roman Seleznyov after law enforcement in the Maldives caught the younger Seleznyov at the Male International Airport at America’s behest.

“Secret Service handlers rushed Mr. Seleznyov to a special jet as he was embarking on a plane to Moscow,” said Bukh. “They flew Seleznyov to Guam, held him there for a few days and then took him to Seattle.”

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The Russian creator of a computer program that American law enforcement claim drained bank accounts in a variety of countries was sent to federal prison for 9.5 years.

Known online as “Gribodemon” and “Harderman,” Aleksandr Panin was sentenced in Atlanta after being accused of creating the malware program SpyEye. Panin sold the software through a variety of online cybercrime forums.

Panin pleaded guilty in January 2014, to conspiracy to commit wire and bank fraud for his role in the development and sale of SpyEye.

SpyEye is an advanced malevolent computer code devised to automate the appropriation of financial information including banking paperwork, credit card data, usernames, and passwords. The virus assists in the theft of data by infecting victims’ computers which then allows cyber crooks to remotely command the infected computers. Once infected, the computers give cyber swindlers access, and the stolen financial data is then sent to command and control (C2) servers, where it is employed to take money from financial accounts.

Primary Developer

Panin was the principal developer and merchant of SpyEye. From 2009 until 2011, Panin operated from Russia where he conspired with others, including codefendant Hanza Bendelladj, an Algerian national. Panin permitted cyber crooks to customize their purchases to include customized methods for obtaining victims’ personal data as well as marketing versions that targeted financial institutions. Advertised on invitation-only criminal forums, Panin sold a variety of versions for as much as $8,500. Panin is thought to have marketed the virus to somewhere above 140 clients who then set up their own C2 services.

Industry experts believe the virus infected over 1.3 million computers in America as well as globally. The virus was the pre-eminent malware toolkit from 2009 until 2011; it is still available and in use. Based on data from the financial services industry, over 10,000 bank accounts were compromised by the SpyEye virus in 2013 alone.Despite its effectiveness being limited since software makers added the virus to malicious software removal programs, some cyber crooks continue to use it today.

Bendelladj

Bendelladj was picked up at Bangkok’s Suvarnabhumi Airport in January 2013. Extradited from Thailand to American in Mary 2013, Bendelladj faced charges in the Northern District of Georgia in the US.

Sentencing

Panin, 27, of Tiver Russia was sentenced by Federal District Court Judge Amy Totenberg to nine years and six months in prison. He will have to fulfill three years of managed freedom when he gets out.

Bendelladj, 27, of Tizi Ouzou, Altera was also sentenced by Judge Totenberg. Bendelladj was given 15 years in prison, also to be followed by three years of supervised release.

Panin Beats Decades in Prison

Panin’s attorney, Arkady Bukh, is an experienced criminal defense attorney in New York City. Bukh’s client roster looks like a Hall of Fame of CyberHackers, and he has successfully defended dozens of defendant’s over the years.

Panin is one of the fortunate ones to have retained Bukh. Initially facing decades behind bars, Panin will be out in nine — even earlier for good behavior.

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For the cannabis advocates, Facebook has just announced that it will delete any page that makes reference to selling this agent. The reason- Facebook acknowledges that selling cannabis is a federal crime and they do not want to be held accountable by the authorities for allowing such pages to exist on their website.

This is not a new Facebook policy at all but for some unknown reason this agenda was pushed forward after the removal of several medical marijuana dispensaries in the State of New Jersey. However, Facebook says that removal will only occur when users flag the web-pages. The company states that the decision will be made on a case by case review. Any page that violates community standards will be deleted- what “community standards” mean has not been explained.

Facebook’s decision to start deleting cannabis related pages has been met with approval by some people, including former presidential drug policy adviser Kevin Sabet. He states that it is about time Facebook start to do something about the marijuana business pages. Sabet feels that there are hundreds of websites that advertise illegal marijuana sales like sodas, vaginal suppositories and pot candles and make outrageous claims about their health benefits.

There is a general feeling that perhaps the Federal Government and its current policies on marijuana may have had something to do with this push to get rid of marijuana web-pages from Facebook or perhaps Facebook may have come under legal pressure from groups like the DEA or FDA. It is very possible that Facebook may have felt that marijuana ads could be considered as interstate commerce and could trigger legal problems in future but so far Facebook has been mum on what prompted it to remove the cannabis pages. Whatever the case, the tide has shifted against the growing marijuana movement.

The Marijuana proponents are not happy with this latest action by Facebook insisting as to why it is okay to advertise alcohol on Facebook but not permit medical marijuana for cancer?

For all consumers who may be caught up in the marijuana hype, it is important to know that possession for marijuana for any other reason other than research is still a federal crime. Even though several states do allow medical marijuana, the federal government has not yet approved it for medicinal purposes.

What remains to be seen is what the future president will do with regard to marijuana use in medicine. So far all the presidential candidates have stated that they would leave it up to each of the states to make their own rules.

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The matchless background and distinguished legal forte of New York’s marquee defense attorney, Arkady Bukh, has sheared decades from the sentence  Dmitry Belorossov initially faced. Belorossov, 22, had been accused of operating Citadel, a botnet, and helping develop improvements to the malware which led to over $500 million in losses. Instead of leaving prison as a very old man, Belorossov will be free within a year.

Dmitry Belorossov, of St Petersburg, has been sentenced to four and a half years in an American prison. Prosecutors had accused Belorossov of using sophisticated malware, Citadel, to steal banking information from thousands of computers.

The sentencing follows Belorossov’s guilty plea, in July, 2014, to one count of conspiring to commit computer fraud. Belorossov was accused of playing a small part in a $500 million global cybercrime scheme that infected over 11 million computers globally.

Belorossov was extradited from Spain in 2014. The ongoing extradition of foreigners, accused of criminal activity, to America has created a debate between the US and Russia. The debate has sometimes grown heated, fueled in part by Russia’s refusal to hand over Edward Snowden.

Snowden Connection?

The subject of extradition has always been an issue between America and Russia. It has become a thornier issue since Edward Snowden was allowed to remain in Moscow. While American President Obama has continued to call for Snowden’s return, Russia has used the situation to highlight many extradition requests of its own that American administration officials have ignored.

The fact that Russia and America do not have an extradition treaty was driven home when Russia claimed it could not hand Snowden over when he was in the transit zone of a Moscow airport.

Citadel

Citadel, which first appeared in 2011, was initially designed to capture banking and credit card information from computers. The malware also had the ability to block antivirus software.

A 27-year old Russian, identified only as “Mark“, was arrested in Fredrikstad, Norway at the request of America’s Federal Bureau of Investigation (FBI). The Norwegian newspaper, VG, notes that Mark has been held under house arrest while the FBI attempts to work out his extradition to America. Mark’s extradition is being fought by Russia, who says the evidence against Mark is almost non-existent.

American specialists consider Mark as the software developer behind Citadel.

Citadel has evolved since it was initially found in the cyber badlands. Through evolution, Citadel has become a massively distributed malware that experts believe has compromised millions of computers globally.

When Citadel installs on a computer, it opens channels of communication with command-and-control (C&C) servers. The malware receives a configuration file with operating instructions.

These software instructions tell the infected computer that targets to seek, the type of information to capture and which functions to enable. As long as the malware is interacting with the C&C, the configuration file can be updated with data about new targets and destinations.

IBM research has found that an average of 1 in 500 computers, globally, is infected with Citadel, or another version of APT malware at any point in time. Since Citadel has already infected millions of machines, it is simple for cyber-attacks to take advantage of the malware in new cyber schemes. All violators need to do is implement a new configuration file and anticipate infected machines to access the targets.

Citadel is highly evasive and bypasses the most rigorous threat detection security system.  Citadel may lay idle on a user’s computer for years until it is triggered by a user action. This hibernation means that many users, and organizations, do not know their machines have been infected.

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