Michigan Fraud Defense Attorneys

Failure to File Taxes

Failure to file your taxes can result in misdemeanor or felony charges. Depending on your circumstances, penalties associated with a conviction may include fines or even imprisonment.

There are many situations in which the IRS can bring charges of tax fraud or evasion against you. However, many people don’t appreciate how severe the consequences can be, even for a seemingly small mistake like forgetting to file your taxes one year.

Additionally, a problem on your federal taxes can also affect your state taxes, creating an even more complex problem.

Situations that can result in charges being brought against you include:

• Missing tax forms
• Claiming false deductions
• Failing to file your yearly tax return
• Intentionally overestimating your deductions
• Claiming personal expenses as business expenses
• Making false claims to the IRS while being audited
• Making incorrect or inaccurate statements to the IRS while under investigation

False Filing Of A Tax Return

A person can be charged with false filing of a tax return when their return doesn’t accurately reflect their tax situation. For example, reporting less money than you actually made will be considered filing a false tax return.

Whether you intentionally filed false tax returns or the false returns were simply filed out of negligence will determine what sort of penalties will be assessed. If your returns were filed out of negligence, there will normally be a 5% unpaid tax fee in addition to “failure to pay” fees.

However, if you intentionally tried to defraud the government, your penalties will be severe. You could be ordered to pay 75% of the tax unpaid due to the fraud, including personal fines of up to $250,000 and even a prison term.

Since the tax code is so vast and confusing, hiring an experienced tax fraud team in Michigan is extremely important. For these reasons, it’s critical that you contact The Law Offices of Barton Morris for an immediate consultation to find out more about your tax charge.

Income Tax Evasion

Income tax evasion is considered a kind of tax fraud, and the penalties for a conviction can be steep. Tax evasion is when someone intentionally avoids paying taxes through underreporting income or claiming false deductions. Penalties are steep, including felony charges, large fines, and possible asset seizure.

Common situations that may result in a tax evasion investigation include:

• Underreporting taxable income for several years
• Claiming fictitious or inaccurate deductions
• Understatement of income
• Failure to file a tax return
• Filing false returns
• Dealing in cash

To secure a conviction, the IRS must prove that you intended to defraud the government and that the issue wasn’t merely a mistake.

Our lawyers are well-versed in all tax codes and can help you understand the charges brought against you and advise you on the best course of action for your specific case.

Medicare and Medicaid Fraud

One of the most commonly investigated and prosecuted types involves Medicare fraud schemes. Medicare is governmentally funded health care for any person over the age of 65 and those with qualifying disabilities.

Medicare fraud costs the government and taxpayers literally billions of dollars and is at the centerpiece of federal health care reform legislation. In 2007, the Obama administration created the Health Care Fraud Prevention and Enforcement Action Team (HEAT) to investigate and prosecute the largest Medicare fraud schemes.

HEAT is a combination of efforts from the FBI, Department of Justice, and Department of Health and Human Services. They’ve been tasked with undertaking comprehensive investigations in nine target cities in this country. At the top of that list is Detroit.

The health care providers most often investigated and prosecuted in the Eastern District of Michigan are physical therapists and home health care providers. The investigations are very thorough and everyone involved is getting indicted as a part of the conspiracy scheme.

They may include doctors, nurses, home health care providers, administrative assistants, therapists, and patient recruiters. Anyone who has anything to do with the schemes and has knowledge of its fraudulent nature may be held accountable.

Medicaid and Medicare fraud can be committed by both consumers and providers. This type of fraud is generally referred to when an individual or corporation seeks to collect Medicare/Medicaid monetary reimbursements under false pretenses.

Basically, the person is attempting to collect money from the government healthcare program illegally. For example, a Medicare provider may bill for unnecessary procedures or a patient may give his doctor his Medicare number in exchange for money.

If you’re convicted of Medicare or Medicaid fraud you could possibly face harsh penalties and fines, as well as a mandatory exclusion from your federal healthcare program.

Enforcement of Medicare and Medicaid fraud is a joint effort between The Office of the Inspector General, The Department of Justice, and the Federal Bureau of Investigation. Additionally, each state has its own Medicaid fraud control units.

Since both the federal and state agencies have tremendous power in dealing with fraud in the healthcare industry, you need an attorney experienced in such matters.

What Charges Are Associated With Health Care Fraud?

Typical charges that accompany health care fraud indictments include wire fraud, obstruction of a health care criminal investigation, prescription fraud, conspiracy, anti-kickback charges, and money laundering.

Prosecutions are in the Federal District Court in the Eastern District of Michigan. The government also attempts to recoup lost funds through federal civil forfeiture laws and enforcement of the federal false claims act, which monetarily penalizes individuals fraudulently making a false claim for payment or approval from the federal government.

Each claim is punishable by a fine between five and ten thousand dollars plus three times the damages the government sustains.

Money Laundering

To put it simply, money laundering is the process of entering into a financial transaction with illegally obtained money for the purpose of either concealing or promoting the illegal activity.

Some common methods of money laundering include:

• Bank fraud
• Transferring a title of real property
• Purchasing casino chips with cash, then immediately cashing them in for a check
• Under- or over-valuing invoices in an attempt to disguise the movement of the illegally obtained money

In order for a prosecutor to prove the crime of money laundering, they must show that you knowingly engaged in a financial transaction with illegally obtained money for the purpose of concealing or disguising the illegal source of the money.

Money laundering has been a federal crime since the passing of the Money Laundering Control Act of 1986. It’s important to understand that there’s no minimum monetary threshold or requirement that the transaction you attempt to make actually succeeds in hiding the money.

In fact, the term “financial transaction” has been so broadly defined that simply handing money to another person in an attempt to hide where it came from or who it belongs to will result in a money laundering charge.

Defenses and Penalties for Money Laundering

A money laundering conviction is a 20-year felony and carries a fine of up to $500,000 or twice the value of the property in the transaction. Forfeiture of assets is also a possibility.

One of the most common defenses to a money laundering charge is lack of knowledge of the illegal activity.

At The Law Offices of Barton Morris, our Michigan money laundering team has decades of successful experience in this complex area of law. We can expertly guide you throughout every stage of the criminal process while helping you make sound legal decisions.

Mortgage Fraud

Mortgage fraud is a serious charge in Michigan and requires a serious mortgage fraud attorney. Under Michigan’s laws, a person convicted of mortgage fraud could be looking at a 20-year felony.

Proving Mortgage Fraud

In order to be convicted of mortgage fraud, the prosecutor must prove that you knowingly and intentionally did numerous things.

They need to prove that:

• You used a false pretense
• You failed to disburse funds as agreed upon at closing
• You received money due to false statements or false pretenses
• You made a false statement, misrepresentation, or concealed a material fact
• You filed a document with the register of deeds that you knew contained a material misstatement

The “mortgage lending process” can include transactions that occurred during the application phase, the origination phase, the underwriting phase, the negotiation phase, or any other time during the process of obtaining a mortgage loan.

It’s important to understand that each violation is a separate offense. So, if you made a false statement, failed to disburse funds, and filed a fraudulent document, you’ll be charged with three separate mortgage fraud offenses.

Penalties for Mortgage Fraud

Mortgage fraud is a felony, and the penalties vary depending on the value of the property at hand during the time the fraud took place.

Some common penalties include:

• If the value of the property is below $100,000 you could face a 15-year felony and fines up to $100,000.
• If the value of the property is above $100,000 you could face a 20-year felony and fines up to $500,000.

The statute of limitations to bring a mortgage fraud charge against someone is quite lengthy. A charge must be brought within 10 years after the offense was committed or within 10 years after the instrument affecting real property (title or deed) was recorded, whichever time frame occurs later.

Securities Fraud

Securities fraud, also known as stock fraud or investment fraud, occurs when a stockbroker or investment advisor encourages you to buy or sell investments under false, inaccurate, or exaggerated information.

This false information isn’t always verbal. Sometimes, the false information can be found in the stock broker’s financial statements or in fraudulent reports sent to the federal Securities and Exchange Commission (SEC).

What Is a Duty of Care and How Does It Apply to You?

Stockbrokers owe a duty of care to all of their customers. This means they must disclose all important information regarding potential investment purchases.

Stockbrokers must get your written approval before buying or selling any stocks on your behalf, and the failure to do so is illegal. Also, the entire investment firm owes you a duty of care to properly supervise its employees and to ensure that mismanagement of your funds is not occurring. The failure to do so is also illegal.

Possible Warning Signs of Securities Fraud

Determining whether or not your stock broker or investment advisor has committed fraud is difficult, but there are warning signs that you can look for.

Some common warning signs include:

• You suddenly lose a large sum of money
• Your broker refuses to return your phone calls
• The market is up but you’re continuously losing money
• Your financial results are very different from the publicly announced expectations

Proving Your Securities Fraud Case

Every fraud case must be articulated very specifically or your case could be dismissed. To prove fraud, you must show that your stockbroker or investment advisor intentionally made a false statement to you, that you relied on such statement, and then you suffered a financial loss as a result.

If you’re successful, you may be able to recover the money you lost as a result of the fraud. It’s important to understand that there are strict notice and time limitations in bringing a securities fraud suit and having a securities fraud attorney in Michigan who knows the law is critical.

Prescription Fraud

Prescription fraud can occur in many different ways and is defined as the illegal acquisition of prescription drugs for personal use or profit. Prescription fraud commonly occurs when a person steals prescription pads, calls in their own prescriptions, or alters already existing prescriptions in an attempt to get drugs.

People don’t always obtain the drugs for themselves; oftentimes, they obtain the drugs to illegally sell on the streets.

The most common drugs found in prescription fraud cases include:

• OxyContin
• Vicodin
• Demerol
• Xanax
• Valium
• Ritalin
• Adderall

As with all drug-related crimes, if you’re convicted, you’ll be facing harsh penalties and fines. Immediately consulting with an experienced Michigan prescription fraud attorney is critical to a successful defense.

If you obtain possession of a controlled substance (drugs) by a fraudulent prescription, you’ll be charged with a four-year felony and/or receive fines up to $30,000. If this is your first offense, it may be possible that your charge can be taken under advisement and then dismissed.

Social Security Fraud

When someone knowingly provides misleading information in order to obtain Social Security benefits, a fraud crime has occurred.

Depending on the nature of the crime, if found guilty, the penalties can involve repayment of benefits, additional fines, restitution, and possible imprisonment. Generally speaking, the judge will determine the penalties based on the seriousness of the case at hand.

Some common situations that may lead to a criminal charge for Social Security fraud include:

• Hiding information or life events that will affect your benefits, such as being employed, in prison, or receiving worker’s compensation
• Failure to notify the Social Security Administration (SSA) that a recipient has died and continuing to cash checks made out to the deceased
• Misusing benefits while acting as a representative for the beneficiary
• Receiving benefits for a minor or dependent not under your care
• Buying and/or selling counterfeit Social Security cards
• Impersonating an SSA representative
• Bribing an SSA employee
• Making false claims

Dealing with a Social Security fraud case can be a challenge as every situation is unique and, therefore, requires a customized defense. Working with an experienced criminal defense attorney, like those at The Law Offices of Barton Morris, can help you feel more confident and self-assured when appearing in court.

Wire Fraud

Most wire fraud charges are pursued by the federal government. However, Michigan can press charges as well. Wire fraud involves the use of the telephone, cell phone, Internet, fax, e-mail, or any other form of electronic communication in order to commit fraud. It’s a serious crime, and if you’re convicted, you’ll be charged with a felony.

Whether it’s the state or the federal government that’s pressing charges depends on many factors, including the value of loss caused by the fraud, the amount of evidence the prosecutor has, and other circumstances.

Something to keep in mind is that the electronic communication doesn’t need to be an important aspect to the fraud. If you simply mention your fraudulent plan on the telephone, you could face prosecution. Also, you don’t need to be the person who initiates the electronic communication in order to be accused of wire fraud.

For example, if you do something that causes another person to wire you money, that’ll be enough to charge you with wire fraud.

Penalties Associated with Wire Fraud

If you’re convicted of wire fraud, you could be facing a 20-year felony, three years of supervised release, and a fine of up to $250,000 or twice the amount of loss caused by your fraud, whichever is greater.

Just like other fraud cases, each individual fraudulent act can be a separate charge against you. It’s for this reason that you should consult with an experienced wire fraud team immediately.