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Politics

Florida man Stephen Alford, linked to alleged Gaetz plot, charged in $25 million scheme

Rep. Matt Gaetz (R-FL) walks out of the committee room during a hearing with the House Armed Services Subcommittee on Cyber, Innovative Technologies, and Information System in the Rayburn House Office Building on May 14, 2021 in Washington, DC.

Anna Moneymaker | Getty Images

A man reportedly at the center of an alleged extortion plot involving Rep. Matt Gaetz and his family has been charged with engaging in a scheme to defraud a victim out of $25 million, in part by falsely promising he could secure a presidential pardon.

A grand jury charged Florida resident Stephen Alford, 62, with wire fraud in connection with the pardon scheme, carried out between March 16 and April 7, federal prosecutors said Tuesday.

Alford was also charged with attempting to stop the seizure of his iPhone by the government, said the grand jury indictment, which was signed by a U.S. magistrate judge on Aug. 18.

Alford was arrested earlier Tuesday and made his initial appearance in federal court, the U.S. Attorney’s Office for the Northern District of Florida said in a press release. He faces up to 25 years imprisonment on the charged crimes, according to the prosecutors’ office.

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Gaetz, R-Fla., a staunch supporter of former President Donald Trump, is being investigated by the Department of Justice about whether the 39-year-old congressman had a sexual relationship with a 17-year-old girl, The New York Times reported in March.

Gaetz, at the time that report came out, had linked that DOJ probe with the alleged $25 million “organized criminal extortion” scheme against him and his father, Don Gaetz.

Gaetz has denied all wrongdoing. He has not been charged with a crime.

A Times report from April 1, which described Alford as a real estate agent with a prior fraud conviction, said that he and a former Air Force intelligence officer named Robert Kent approached Don Gaetz about providing funding for an attempt to rescue an American hostage in Iran.

They reportedly told Don Gaetz, 73, that securing that hostage, Robert Levinson, could help clinch a pardon for his son in case he was charged with federal crimes.

Don Gaetz then hired a lawyer and contacted the FBI, the Times reported. Kent denied the allegations.

The grand jury indictment did not refer to Matt Gaetz, Don Gaetz, Levinson or Kent by their full names.

Instead, it said that Alford gave “Person A” the phone number of “D.G.” in order to “discuss the purported release of R.L. from captivity in Iran and a purported ‘current federal investigation’ into Family Member A of D.G.”

In a text message, “it was conveyed to D.G. that Person A’s ‘partner will see to it that [Family Member A] receives a Presidential Pardon, thus alleviating all his legal issues,” the indictment alleged.

Alford then wrote a letter, titled “Project Homecoming,” which made claims about an “‘investigation by the FBI for various public corruption and public integrity issues’ related to Family Member A,” as well as a “Presidential Pardon” and the request for $25 million to “‘immediately fund the release’ of R.L.,” according to the indictment.

The letter allegedly instructed that the money was to be “deposited into a trust account of Law Firm A.”

Alford’s letter also falsely asserted that his “‘team has been assured by the President’ that he will ‘strongly consider’ a ‘Presidential Pardon,'” or tell the Justice Department to quash any probe of “Family Member A” if R.L. is released from captivity, the indictment said.

Alford also falsely told D.G., “I will assure you that [Family Member A] will get off his problems” and claimed he could “guarantee” that that family member “would not go to prison.”

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Health

Is the Compelled Contraception Alleged by Britney Spears Authorized?

Among the astounding claims pop star Britney Spears made this week before a probate judge in Los Angeles as she attempted to end her lengthy conservatoire stint, was one that profoundly shook experts on guardianship and reproductive rights. She said a team led by her father, who is her conservator, prevented her from having her IUD removed because the team didn’t want her to have more children.

“Forcing someone to use birth control against their will is a violation of basic human rights and physical autonomy, just as it would be to force someone to become or remain pregnant against their will,” said Ruth Dawson, Principal Policy Associate at Guttmacher Institute, a research group that supports reproductive rights.

Court-approved contraception is rare in conservatories. But the specter it conjures up – forced sterilization – has a grim, long history in the United States, especially against poor women, women of color, and inmates. In the early 20th century, the state-sanctioned practice was upheld by the United States Supreme Court.

Although the court moved away from this position in the 1940s and the growing consent canon gave rise to consensus that forced sterilization was inhuman, the practice continued to be tacitly tolerated.

Finally, in the late 1970s, most states repealed sterilization authorization laws, although allegations of forced hysterectomies and tubal ligatures in women in immigrant detention remain. As recently as 2014, California formally banned the sterilization of female inmates without consent.

The sparse law on the question at the Conservatory suggests what an outlier the Spears case might be. In 1985, the California Supreme Court denied a petition from the legal guardians of a 29-year-old woman with Down syndrome who wanted her to have tubal ligation.

Usually, a restorer has temporary control over the finances and even medical care of an incapacitated person. Experts emphasized that Ms. Spears’ claim is unconfirmed. But if it’s correct, they said, the most likely rationale, even if suspicious, could be that Jamie Spears, her father, is trying to protect her finances from the father of a baby, possibly her boyfriend who is allegedly at odds with Mr. Spears is.

When a guardian is concerned that a community is making financially ill-advised decisions, “the cure is not to say they cannot reproduce,” said Sylvia Law, a health scientist at New York University School of Law. “It’s ineffable.”

According to fiduciary and inheritance experts, the few cases where a guardian, usually a parent, ordered a court to order contraception concerned severely disabled children.

“Such a child would not understand that a penis and vagina could make a baby,” said Bridget J. Crawford, an expert on guardianship law at Pace University Law School. “And that’s certainly not the case with Britney Spears.”

Eugenics was a major reason for female sterilization. In the Buck v. Bell in 1927, the Supreme Court upheld the right to sterilize a “moronic” woman who had been admitted to a state mental health facility, with Judge Oliver Wendell Holmes notoriously writing: “Three generations of morons are enough. ”

Although the opinion was never formally overturned, Judge William O. Douglas said in a unanimous court in the Skinner v. Oklahoma of 1942, in which the forced sterilization of certain convicted criminals was challenged that the right to procreation was fundamental. “Every experiment that the state carries out is irreparable to it,” he wrote. “He is forever deprived of a fundamental freedom.”

Although Ms. Spears was not sterilized, Ms. Crawford said if she was prevented from having her IUD removed it would be a proxy for sterilization, especially since she testified that she wanted to bear more children.

Melissa Murray, who teaches reproductive rights and constitutional law in NYU law school, pointed to another worrying element in the allegations made by Ms. Spears, who at 39, has been under her father’s tutelage for 13 years. Ms. Murray said Ms. Spears, an adult, appeared to have a legally constructed childhood.

“It’s unusual for her father to make the decisions we would expect parents to make in a teenager,” she added.

Categories
Health

Is the Compelled Contraception Alleged by Britney Spears Authorized?

Among the astounding claims pop star Britney Spears made this week before a probate judge in Los Angeles as she attempted to end her lengthy conservatoire stint, was one that profoundly shook experts on guardianship and reproductive rights. She said a team led by her father, who is her conservator, prevented her from having her IUD removed because the team didn’t want her to have more children.

“Forcing someone to use birth control against their will is a violation of basic human rights and physical autonomy, just as it would be to force someone to become or remain pregnant against their will,” said Ruth Dawson, Principal Policy Associate at Guttmacher Institute, a research group that supports reproductive rights.

Court-approved forced contraception is rare in conservatories. But the specter it conjures up – forced sterilization – has a grim, long history in the United States, especially against poor women, women of color, and inmates. In the early 20th century, the state-sanctioned practice was upheld by the United States Supreme Court.

Although the court moved away from this position in the 1940s and the growing consent canon gave rise to consensus that forced sterilization was inhuman, the practice continued to be tacitly tolerated.

Finally, in the late 1970s, most states repealed sterilization authorization laws, although allegations of forced hysterectomies and tubal ligatures in women in immigrant detention remain. As recently as 2014, California formally banned the sterilization of female inmates without consent.

The sparse law on the question at the Conservatory suggests what an outlier the Spears case might be. In 1985, the California Supreme Court denied a petition from the legal guardians of a 29-year-old woman with Down syndrome who wanted her to have tubal ligation.

Usually, a restorer has temporary control over the finances and even medical care of an incapacitated person. Experts emphasized that Ms. Spears’ claim is unconfirmed. But if it’s correct, they said, the most likely rationale, even if suspicious, could be that Jamie Spears, her father, is trying to protect her finances from the father of a baby, possibly her boyfriend who is allegedly at odds with Mr. Spears is.

When a guardian is concerned that a community is making financially ill-advised decisions, “the cure is not to say they cannot reproduce,” said Sylvia Law, a health scientist at New York University School of Law. “It’s ineffable.”

According to fiduciary and inheritance experts, the few cases where a guardian, usually a parent, ordered a court to order contraception concerned severely disabled children.

“Such a child would not understand that a penis and vagina could make a baby,” said Bridget J. Crawford, an expert on guardianship law at Pace University Law School. “And that’s certainly not the case with Britney Spears.”

Eugenics was a major reason for female sterilization. In the Buck v. Bell in 1927, the Supreme Court upheld the right to sterilize a “moronic” woman who had been admitted to a state mental health facility, with Judge Oliver Wendell Holmes notoriously writing: “Three generations of morons are enough. ”

Although the opinion was never formally overturned, Judge William O. Douglas said in a unanimous court in the Skinner v. Oklahoma of 1942, in which the forced sterilization of certain convicted criminals was challenged that the right to procreation was fundamental. “Every experiment that the state carries out is irreparable to it,” he wrote. “He is forever deprived of a fundamental freedom.”

Although Ms. Spears was not sterilized, Ms. Crawford said if she was prevented from having her IUD removed it would be a proxy for sterilization, especially since she testified that she wanted to bear more children.

Melissa Murray, who teaches reproductive rights and constitutional law in NYU law school, pointed to another worrying element in the allegations made by Ms. Spears, who at 39, has been under her father’s tutelage for 13 years. Ms. Murray said Ms. Spears, an adult, appeared to have a legally constructed childhood.

“It’s unusual for her father to make the decisions we would expect parents to make in a teenager,” she added.

Categories
Health

DOJ expenses 14 individuals in alleged Covid-related health-care fraud

Paul Hennessy | LightRocket | Getty Images

Federal prosecutors have charged 14 people — including a medical doctor and owners of laboratories, pharmacies and a home health agency — in multiple Covid-related fraud schemes that allegedly bilked consumers and insurers out of $143 million, the Department of Justice announced Wednesday.

In addition, the Center for Program Integrity at the Centers for Medicare & Medicaid Services announced it took administrative action against more than 50 medical providers for their involvement in health-care fraud schemes relating to Covid-19.

The DOJ’s Fraud Section, which leads the Medicare Fraud Strike Force, announced it is prosecuting cases in the following districts: Western District of Arkansas, Northern District of California, Middle District of Louisiana, Central District of California, Southern District of Florida, District of New Jersey and the Eastern District of New York.

“These medical professionals, corporate executives, and others allegedly took advantage of the COVID-19 pandemic to line their own pockets instead of providing needed health care services during this unprecedented time in our country,” Deputy Attorney General Lisa Monaco said. “We are determined to hold those who exploit such programs accountable to the fullest extent of the law.”

FBI Director Christopher Wray also said the agency is committed to combating Covid-related health-care fraud. “Medical providers have been the unsung heroes. … It’s disheartening that some have abused their authorities.”

The defendants allegedly engaged in various types of schemes “designed to exploit the COVID-19 pandemic,” the DOJ said in a news release.

“For example, multiple defendants offered COVID-19 tests to Medicare beneficiaries at senior living facilities, drive-through COVID-19 testing sites, and medical offices to induce the beneficiaries to provide their personal identifying information and a saliva or blood sample,” the DOJ said. “The defendants are alleged to have then misused the information and samples to submit claims to Medicare for unrelated, medically unnecessary, and far more expensive laboratory tests, including cancer genetic testing, allergy testing, and respiratory pathogen panel tests.” The DOJ said the proceeds of the schemes were allegedly laundered through shell corporations and used to buy exotic cars and luxury real estate.

In another example, a defendant allegedly exploited telehealth regulation expansions to submit fraudulent claims to Medicare for telemedicine encounters that never happened, according to the DOJ. Telehealth regulations had been broadened after Covid-19 was recognized as a national emergency to give Medicare beneficiaries greater access to a wider range of services so they could avoid risky travel to health-care sites.

Here are some of the cases the DOJ announced it is prosecuting:

In Arkansas, a man who owns two testing laboratories was charged with health-care fraud in connection with an alleged scheme to defraud the U.S. of more than $88 million. The man allegedly used access to beneficiary and medical provider information from prior lab testing orders to submit hundreds of fraudulent claims for urine, drug and other tests. Some of the falsely submitted claims were for beneficiaries who were already dead.

A doctor in New Jersey allegedly ordered expensive and medically unnecessary cancer genetic testing for Medicare beneficiaries that attended a Covid-19 testing event that he participated in. The man also allegedly billed Medicare for services to beneficiaries that he never provided, totaling about $19 million in health-care fraud schemes.

Another man in the state who was a partner at a diagnostic testing lab allegedly offered kickbacks in exchange for respiratory pathogen tests that were improperly bundled with Covid tests and billed to Medicare. The man allegedly paid and received bribes in a scheme totaling $5.4 million.

In New York, charges were brought against two people who owned several pharmacies and sham pharmacy wholesaling companies for allegedly committing health-care fraud, wire fraud and money laundering totaling $45 million. The two and their co-conspirators allegedly acquired billing privileges for multiple pharmacies. They also allegedly submitted fraudulent claims to Medicare by abusing emergency Covid-19 rules to avoid otherwise applicable limits on refills for expensive drugs. The DOJ news release said the defendants “allegedly used an elaborate network of international money laundering operations to conceal and disguise the proceeds of the scheme.”

Categories
Health

DOJ expenses 14 folks for alleged health-care fraud associated to Covid-19

Paul Hennessy | LightRocket | Getty Images

The federal prosecutor has indicted 14 people in multiple fraud programs that allegedly charged consumers and insurers with $ 143 million, the Justice Department said on Wednesday.

In addition to those charged by the DOJ, more than 50 medical providers are facing administrative actions by the Center for Program Integrity and Centers for Medicare & Medicaid Services for participating in healthcare fraud programs related to Covid-19.

The DOJ’s fraud division, which heads the Medicare Fraud Strike Force, announced that it is pursuing cases in the following counties: Western District of Arkansas, Northern District of California, Middle District of Louisiana, Central District of California, Southern District of Florida, Borough of New Jersey and the eastern borough of New York.

“These health professionals, executives and others have allegedly taken advantage of the COVID-19 pandemic to fill their own pockets instead of providing the health services they need in our country at this unprecedented time,” said Assistant Attorney General Lisa Monaco. “We are determined to hold those who use such programs accountable to the fullest extent of the law.”

FBI Director Christopher Wray also said the agency is determined to fight healthcare fraud related to Covid-19.

The DOJ’s announcement also found that the profits from the fraudulent operations were allegedly laundered by Shell companies and used to purchase exotic cars and luxury homes.

After Covid-19 was recognized as a national emergency, telehealth regulations were expanded to allow Medicare beneficiaries better access to a wider range of services to avoid risky trips to health locations. The defendant allegedly used these extensions to bring fraudulent claims to Medicare over telemedicine encounters that the DOJ said never took place.

In Arkansas, a man who owns two testing laboratories was charged with more than $ 88 million in healthcare fraud in connection with an alleged fraud program against the United States. The man allegedly used access to beneficiary and medical provider information from previous laboratory test assignments to file hundreds of fraudulent claims for urine, drug and other tests. Some of the falsely submitted claims concerned deceased beneficiaries.

A doctor in New Jersey allegedly ordered expensive and medically unnecessary cancer genetic testing for Medicare beneficiaries attending a Covid-19 testing promotional event he attended. The man also reportedly billed Medicare for services to beneficiaries he never performed, totaling around $ 19 million in healthcare fraud systems.

Another man in the state who was a partner in a diagnostic testing lab allegedly offered setbacks in exchange for breath tests that were not properly bundled with Covid tests and billed to Medicare. The man reportedly paid and received bribes totaling $ 5.4 million.

In New York, charges were brought against two people who owned several pharmacies and bogus pharmacy wholesalers for allegedly guilty of healthcare fraud, wire fraud and money laundering totaling $ 45 million. The two and their co-conspirators have reportedly acquired billing privileges for several pharmacies. They also allegedly filed fraudulent claims with Medicare by abusing the Covid-19 emergency rules to avoid otherwise imposed restrictions on refilling expensive drugs.

The report alleges that the defendants “allegedly used an ingenious network of international money laundering activities to hide and disguise the proceeds of the system.”

“Medical providers have been the unsung heroes … It’s disheartening that some have abused their agencies,” Wray said.

Categories
Business

Minnesota Governor Calls Alleged Assaults on Journalists ‘Chilling’

Minnesota governor Tim Walz responded on Sunday to reports that state police officers attacked journalists covering the riots in a Minneapolis suburb, saying, “Apologies are not enough; that just can’t happen. “

Protests have broken out in Brooklyn Center, Minnesota, following the death of Daunte Wright, a 20-year-old black man who was killed by a senior police officer during a traffic obstruction. Police officers shot tear gas or pepper spray into the crowd and made dozens of arrests.

“I think we all have to acknowledge the attack on media around the world and even in our country as terrifying in recent years,” Walz said in an interview with a local CBS broadcaster. “We cannot function as a democracy if they are not there.”

On Saturday, a lawyer representing more than 20 news media organizations sent a letter to Mr. Walz and law enforcement officers in Minnesota describing a series of alleged assaults on journalists by police officers over the past week. Journalists were sprayed with chemical irritants, arrested, thrown to the ground and beaten by police officers while reporting protests, lawyer Leita Walker wrote.

The letter includes details of some of the alleged incidents, including those involving journalists working for CNN and the New York Times.

Joshua Rashaad McFadden, a freelance photographer covering the protests for The Times, said in an interview on Sunday that police moved the car he was in on Tuesday when he tried to leave the protests. They beat the windows with batons, then got into the car to force him out, hit his legs and hit the lens of his camera, he said.

“It was definitely scary – I’ve never been in a situation like this where so many cops beat me and hit my gear,” said 30-year-old McFadden.

Mr. McFadden, who is Black, said police did not believe his press cards were real until another photographer vouched for him – a situation that has happened to him and other black journalists many times, he said.

“It’s extremely frustrating,” he said, “when such a situation arises, they won’t believe anything or care about anything I say.”

Later that week, he said he was forced to the ground with other journalists and photographed by police.

A spokeswoman for the New York Times Company confirmed Sunday that Ms. Walker’s letter was the company’s response.

On Friday, a federal judge issued an injunction prohibiting police from using physical violence or chemical agents against journalists. But Ms. Walker wrote that the officials are still engaging in “widespread intimidation, violence and other wrongdoing against journalists.”

Mr Walz said in a tweet on Saturday that he has “directed our law enforcement partners to make changes that will ensure journalists don’t run into obstacles in the way they do their jobs.”

“These are volatile situations and that is no excuse,” he said during the television interview on Sunday. “It is an understanding that we have to keep getting better.”

Categories
Politics

DOJ sues Trump ally Roger Stone, spouse over alleged unpaid taxes

Roger Stone, longtime political ally of US President Donald Trump, is leaving after a status hearing in the criminal proceedings initiated against him by special adviser Robert Mueller on March 14, 2019 at the US District Court in Washington.

Joshua Roberts | Reuters

The Justice Department on Friday sued Roger Stone, the loyal former advisor to ex-President Donald Trump, claiming he and his wife owe nearly $ 2 million in unpaid federal taxes and other fees.

The lawsuit accuses Stone and Nydia Stone of using an “alter ego” business to “protect their personal income from forced collection and fund a lavish lifestyle.”

The civil lawsuit also accuses the Stones of “trying to defraud the United States” by fraudulently transferring money used to buy their home.

Stone, 68, a longtime Republican politician, was pardoned by Trump in December after being convicted of lying by Congress.

The DOJ’s complaint filed in federal court in South Florida alleges Stone and his wife underpaid their income taxes for five consecutive years in 2007 and 2011. The Stones owe $ 1,590,361.89, including interest and penalties for late payments, according to the complaint.

The lawsuit also alleges Stone failed to pay his full tax bill in 2018 when he filed separately from his spouse. He owes income taxes, interest and penalties of $ 407,036.84 for that year, the complaint said.

“Despite the termination and demand for payment, Roger and Nydia Stone failed and refused to pay the full amount of the debt they owed,” claims the DOJ.

Stone did not immediately respond to an email asking for comment on the lawsuit.

The complaint alleges that by using a Delaware limited liability company called Drake Ventures, the Stones “escaped and thwarted the collection efforts of the IRS.” The company is so dominated and controlled “by the family” that it does not exist as an independent entity, “claims the DOJ.

Drake Ventures has no website or phone number, all members are part of Stone’s family, and its address is the same as the Stone’s home in Fort Lauderdale, Florida, the complaint states.

“The Stones used Drake Ventures’ bank accounts to pay a significant portion of their personal expenses, including groceries, dental bills, spas, salons, clothing and restaurant expenses,” the complaint said.

They paid more than $ 500,000 of their personal tax liabilities through Drake Ventures’ bank accounts in 2018 and 2019 and used the company to pay Stone employees and relatives without providing proper documentation, the DOJ claims.

“The Stones used Drake Ventures for an improper purpose and harmed the United States,” the complaint read. “They used Drake Ventures to receive payments to be made to Roger Stone personally, pay their personal expenses, shield their assets and avoid reporting taxable income to the IRS.”