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June 2, 2022

Biden administration will cancel student debt for half a million students from Corinthian Colleges

Academics line up to enter Everest Higher education, one particular of the Corinthian Schools that shut, for a conference and option to accumulate their private merchandise, in Town of Field, California, April 27, 2015.

Al Seib | Los Angeles Occasions | Getty Visuals

The Biden administration designs to cancel all fantastic scholar financial loans for all those who attended educational institutions operated by Corinthian Faculties, formerly a person of the major for-profit instruction corporations, the U.S. Department of Education declared Wednesday.

The faculties have been accused of predatory and unlawful techniques, and faced lawsuits from the Purchaser Financial Security Bureau as very well as Vice President Kamala Harris when she was legal professional normal of California. The firm filed for Chapter 11 personal bankruptcy in 2015.

About 560,000 debtors stand to advantage from the credit card debt cancellation, which will occur out to around $5.8 billion. That’s the largest one personal debt forgiveness motion taken by the authorities to day.

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25{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of Americans are delaying retirement thanks to inflation

“As of these days, each and every pupil deceived, defrauded, and driven into financial debt by Corinthian Colleges can rest assured that the Biden-Harris administration has their back and will discharge their federal student loans,” U.S. Secretary of Education and learning Miguel Cardona said in a assertion.

Corinthian was founded in 1995, and by 2010, it had enrolled extra than 100,000 college students across 100 campuses.

Previous students of the faculties who still have a pupil bank loan equilibrium need to be refunded for earlier payments designed on their credit card debt, senior administration officers stated Wednesday.

The reduction ought to be automatic, they additional, which means borrowers would not need to have to navigate any paperwork or utilize. Qualifying borrowers are expected to be notified within months.

“Several borrowers have been waiting around for years and several years for their purposes to be processed,” said larger education pro Mark Kantrowitz. “They will no for a longer time be waiting around in limbo.”

To day, the Biden administration has authorised $25 billion in mortgage forgiveness for 1.3 million debtors.

The news arrives as the White Household is mulling no matter if to shift forward with broad-based mostly scholar mortgage forgiveness. Most recently, officials were being leaning towards wiping out $10,000 for all debtors who receive under $150,000, but a spokesperson for the administration said they have have not occur to any final decision still.

May 20, 2022

Attorney General James Recovers $36 Million from H&M for Unlawfully Keeping Money in Unused Gift Cards

Popular Trend Retailer H&M Held Hundreds of thousands in Unused Funds on Reward Cards That
Need to Have Transferred to the State’s Deserted Property Fund

H&M to Pay back Penalty for Consistently Lying about Its Gift Card Small business to the State

NEW YORK – New York Legal professional General Letitia James today recovered $36 million from common vogue retailer H&M for unlawfully holding millions of pounds in unused present playing cards. For decades, H&M withheld unused balances on reward cards that must have been transferred to the Office environment of Unclaimed Funds, which is overseen by New York Point out Comptroller Thomas P. DiNapoli’s Place of work. H&M repeatedly lied to the state about its failure to transfer the unused reward card balances and falsely claimed that an out-of-condition enterprise was handling its reward cards small business. As part of today’s settlement, H&M will spend a penalty for its wrongdoing and transfer the revenue owed to the state’s Deserted House Fund.

“My workplace has zero tolerance for organizations that disregard the law and line their pockets with revenue that belongs to hardworking folks,” said Lawyer Normal James. “For many years, not only did H&M illegally hold unused present card cash that customers compensated for, but they then lied about it to the condition. Violating the regulation is not fashionable or tolerable, and currently H&M will spend millions of bucks for its wrongdoing. New Yorkers can have faith in that my workplace will normally stand up to unscrupulous organizations and keep them accountable.”

“New Yorkers with unused balances on their H&M present playing cards now can get well their money under present-day settlement,” mentioned New York Point out Comptroller Tom DiNapoli. “The Comptroller’s Office of Unclaimed Funds stands at the completely ready to help those who have funds coming to them. I thank Legal professional Standard Letitia James and her business for their function to support my workplace maintain businesses accountable and make certain that unused present card funds goes to the buyer.”

Like a lot of suppliers, H&M sells gift cards for use in its retail and on-line retailers. Shoppers redeem the balances on the playing cards in trade for clothes and other merchandise from H&M. Every 12 months, some portion of H&M’s gift playing cards go unused by shoppers, ensuing in an unredeemed equilibrium on the playing cards — funds that H&M has been given in payment for the cards, but has not provided value for in products. After five a long time of inactivity, New York legislation demands reward card issuers to change more than unused balances on reward cards to the state’s Abandoned House Fund, which is overseen by DiNapoli’s office.

The Place of work of the Attorney Basic (OAG) opened an investigation into H&M right after a whistleblower filed a lawsuit underneath the New York Untrue Promises Act, which makes it possible for men and women to file civil actions on behalf of the governing administration and share in any restoration. The OAG’s investigation found that H&M realized that it was required to transfer tens of millions of bucks in unredeemed present card balances to the Deserted House Fund but did not do so for yrs. In its place, H&M hid its failure to comply with the regulation.

Following H&M became conscious in 2008 that it would have to transfer the unredeemed balances to the Deserted Residence Fund, it entered into a contract with an out-of-point out organization (Organization A) that gave the wrong effect that Firm A would conduct H&M’s gift card small business. Nonetheless, Business A did not choose more than the gift-card business enterprise. As a substitute, H&M continued to operate that business enterprise itself — and the money from the sale of present cards by no means left its accounts.

H&M falsely informed the state that its gift card balances had been transferred to the enterprise with which it contracted. Nonetheless, H&M ongoing to retain thousands and thousands of pounds of unredeemed present card balances in its financial institution accounts, manufacture and provide gift playing cards, and remained liable for honoring its present cards. In addition, H&M brought on a letter to be submitted to the point out falsely stating that Firm A experienced “paid out tens of millions of dollars” on H&M’s reward cards, even nevertheless H&M understood that no these types of payments had been built.

In November 2011, the point out once more asked H&M about its gift-card business, and H&M yet again caused untrue statements to be created to the condition. Specifically, the condition was advised that H&M’s unused present card balances had been transferred to an out-of-state entity that had no transfer obligation to New York when, in truth, H&M retained thousands and thousands of pounds in unredeemed present card balances and remained liable for honoring its present cards.

Today’s arrangement resolves allegations that H&M knowingly manufactured phony statements to DiNapoli’s business to prevent turning in excess of the unused balances on gift playing cards to the Deserted Property Fund. As aspect of the settlement, H&M will pay much more than $28 million to the condition, of which a lot more than $18 million will go to the Deserted Property Fund for unredeemed balances on H&M reward playing cards offered just before 2015. A whistleblower will receive $7.74 million for bringing H&M’s misconduct to gentle.

Individuals who have unused cash in gift playing cards issued by H&M between 2004 and 2014 can either use the card at H&M, if they nevertheless have the bodily card, or file a declare for the unredeemed balance with the Comptroller’s Office environment of Unclaimed Resources.

Attorney Basic James many thanks DiNapoli’s Business office of Unclaimed Funds for its assist in the investigation.

The investigation was led by Assistant Lawyer Typical Laura Jereski of the Taxpayer Protection Bureau, with the assistance of Lawful Assist Analyst Iuliia Belyshkina, beneath the supervision of Senior Counsel Bryan Kessler. The Taxpayer Safety Bureau is led by Bureau Main Thomas Teige Carroll and Deputy Bureau Main Scott J. Spiegelman and is a aspect of the Division for Economic Justice, which is led by Chief Deputy Attorney General Chris D’Angelo and To start with Deputy Attorney Standard Jennifer Levy.

May 9, 2022

Honda pours $40 billion into electrification, targets 2 million EV production by 2030

EV ambitions

Honda Govt Vice President Kohei Tekeuchi reported the 2 million EVs Honda will be organized to develop in 2030 symbolize about 40 p.c of its 5 million worldwide output approach that year.

With world wide quantity about 5 million autos, Honda hopes to accomplish a 7 per cent functioning gain margin, up from the 5.5 per cent predicted in the fiscal year just finished March 31.

Honda, which sells about 4.5 million vehicles a year around the globe, has a extended way to go in advance of heading pure BEV. To day, it has bought only 32,649 battery-electrics, cumulatively, due to the fact advertising its first, the Honda EV As well as, in 1997. Honda offered just about 50 percent those people EVs, 14,324 models, in 2021 on your own.

Honda has created a a lot bigger dent with hybrids, a phase it assisted pioneer with the Insight. It has offered 3.91 million cumulatively more than the a long time, such as 561,165 gasoline-electrics in 2021.

The confined-run EV Furthermore, a squat 3-doorway micro automobile, was Honda’s 1st EV, but the battery-driven version of the reduced-advertising Clarity sedan was the 1st to be marketed in the U.S.

Nowadays, its only world all-electric powered presenting is the Honda e city runabout. Honda has marketed 9,226 of the subcompact hatchbacks in Europe and Japan by the close of 2021, like 4,171 units very last 12 months. Honda also sells three domestically-centered EV models in the China marketplace.

Tailor-made and international

As a mid-sized player on the world wide stage, Honda requirements the help of friends. For a long time, it has circled wagons with Common Motors on a assortment of projects, from hydrogen fuel cell technological know-how to electric autos. But Mibe has been actively courting new associates.

Mibe stressed that gasoline-electric powered hybrids would keep on being a essential component of Honda’s lineup perfectly into the 2030s and that he expects need for them to boost in destinations this sort of as middle America.

“We will carry on to depend on hybrids as a single of our highly effective weapons,” he explained.

In phrases of EV offerings, Honda sees three platforms forward in the around expression.

One system will be a mini and subcompact EV platform made for Japan and Asia. In Honda’s property sector, it will debut as a industrial mini vehicles. The other is a midsize EV system getting jointly designed with GM. The 3rd is the in-property e:Architecture framework, which will underpin greater vehicles, especially individuals for North The usa and China, Mibe reported.

Of the 30 EVs Honda options to launch by 2030, 10 will debut in China by means of 2027.

“Through the 2nd fifty percent of the 2020s, which will be the dawn of the popularization of EVs, we will introduce products and solutions tailored to the properties of each individual region, this kind of as our key EV marketplaces of North The united states, China and Japan,” stated Shinji Aoyama, the senior controlling government officer in charge of Honda’s electrification tactic.

“After the next fifty percent of the 2020s, we presume it will be the interval of EV reputation. At this phase, we will start introducing the most effective EVs from a international perspective.”

March 4, 2022

FEBRUARY U.S. AUTO SALES: Seasonally adjusted sales rate falls to 14.15 million

The seasonally modified U.S. auto sales price fell to 14.15 million in February, down from 15.2 million in January but however ahead of the rates posted for the final five months of 2021, according to figures produced Wednesday by Motor Intelligence.

The closely watched regular effects fell in line with analysts’ SAAR estimates that ranged from 14.1 million to 14.4 million. Business authorities have predicted ongoing weak profits final results as the field grapples with low inventories brought on by the international microchip scarcity and several supply chain interruptions.

Among the the automakers that noted February success — together with Ford Motor Co., Hyundai Motor Co., Toyota Motor Corp. and Honda Motor Co. — deliveries fell 12 p.c to 559,549 motor vehicles, according to the Automotive Information Analysis & Info Centre. The final results are incomplete due to the fact many other automakers, this kind of as Common Motors, Stellantis and Volkswagen, only report quarterly effects.

This is a recap of success from providers that described this week.

Ford Motor Co. revenue fell 21 p.c in February. That involves a 21 percent fall at the Ford division and 23 p.c decrease at Lincoln.

Revenue of its all-essential F-Series pickup line plummeted 30 per cent as most of its nameplates posted yr-more than-calendar year declines.

The automaker said it took in much more than 72,000 new retail orders in February and that 33 per cent of its product sales final thirty day period came from individuals who had put preceding orders.

“Our new solutions are conquesting from competition at a charge that is 26 percentage details increased than Ford over-all, including Maverick, Mustang Mach-E, Bronco and Bronco Sport,” Andrew Frick, vice president, Ford Profits U.S. and Canada, reported in a statement.

Toyota drops 11{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Toyota Motor North America on Tuesday said February U.S. mild auto profits fell 11 percent to 162,587. Income for the Toyota model fell 12 p.c, although product sales for Lexus had been off 5.6 p.c.

Vehicle product sales plummeted 30 percent, though pickup income fell 13 per cent, despite a 16 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} get in Tundra revenue.

The Toyota brand’s crossover and SUV product sales rose 3.7 percent, mostly centered on a solid general performance by the Highlander. Lexus-branded crossover and SUV sales fell 3.7 p.c.

Electrified car or truck gross sales dropped 13 percent.

Toyota Motor’s inventory stood at 110,674 motor vehicles — a 16-day supply — at the end of February, down from 123,686 a thirty day period in the past.

It experienced 93,307 Toyota-brand motor vehicles, down from 103,634 a thirty day period back. It also described inventory of 17,367 Lexus-model cars, down from 20,052 a thirty day period in the past.

Honda deliveries plunge

American Honda’s U.S. mild car product sales fell 21 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} amid stock struggles introduced on by the chip shortage and winter storms. People figures involve a 21 p.c slide at the Honda division and 20 per cent drop at Acura.

At Honda, only the Accord sedan and HR-V crossover posted income gains in comparison with the exact same period of time a thirty day period back. The HR-V’s 13,340 revenue in February marked the nameplate’s 13th-consecutive regular record, Honda claimed in a statement.

The automaker said 60 percent of vehicles en route to dealers are pre-offered, a signal of ongoing powerful demand from customers.

Mazda posts 8.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} acquire

Mazda North The us noted an 8.3 p.c maximize in profits past month with 28,166 motor vehicles sent. That marked the automaker’s second-best February U.S. sales overall performance.

Mazda’s gains ended up mainly pushed by its crossovers, which include a 36 p.c revenue increase for the CX-5, its greatest-volume nameplate, and a 21 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} improve for the CX-9. The two autos posted finest-at any time February final results

Mazda’s motor vehicle gross sales, however, fell 32 per cent.

The automaker said CPO profits also fell 32 p.c as opposed with the similar period of time a yr ago to 3,562.

Korean brands submit strong benefits

Korean affiliate marketers Hyundai, Kia and Genesis reported sturdy U.S. deliveries for February inspite of ongoing retail headwinds that brought on reduce forecasts as automakers struggle to rebuild depleted inventories.

People headwinds, brought on by production cuts stemming from the ongoing semiconductor scarcity, didn’t stop Hyundai from recording an 8 p.c acquire in U.S. deliveries to 52,424. Income of the Tucson compact crossover led the way, soaring 37 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to 12,928 models. The new Ioniq 5 EV created 2,555 deliveries.

“Our latest advertising attempts with Tucson and Ioniq 5 have worked well to make recognition in competitive segments,” explained Randy Parker, senior vice president of nationwide sales for Hyundai Motor The usa. “We intend to retain the momentum and market place share gains heading.”

Hyundai mentioned it failed to report any fleet profits. The automaker stated U.S. inventories stood at 18,621 models at the stop of the thirty day period compared with 18,060 at the end of January.

Affiliate Kia posted a 2.3 percent obtain to 49,182 deliveries in February as EV sales grew.

“Kia carries on to outpace the marketplace and ‘charge ahead’ with the shift towards electrified autos as gross sales of our range of electric, hybrid and plug-in hybrid versions ongoing to break records and now make up 13-percent of our profits,” Eric Watson, vice president of product sales functions for Kia America, mentioned in a statement.

“With initially-thirty day period income of the all-electric Kia EV6 exceeding 2,100 units we are self-assured that even far more shoppers thinking of their own shift to electrified vehicles will now look at Kia.”

Luxurious brand Genesis said it produced its best February success ever as deliveries rose 45 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to 3,482 vehicles.

Former forecasts

Just before the results arrived in this 7 days, deliveries of new motor vehicles in February had been approximated to tumble 10 to 11 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} from a yr before, according to forecasts from Cox Automotive, TrueCar, J.D. Energy and LMC Automotive. Retail gross sales are projected to drop 5.7 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} from February 2021 to 922,100, J.D. Energy and LMC claimed.

February is historically one of the year’s slower income months even when inventory is abundant. But a lack of chips has left little to select from on dealership tons, and field industry experts you should not foresee that will modify whenever before long.

“With retail stock on speed to complete a fourth consecutive month down below 900,000 models and ninth consecutive thirty day period down below just one million units, the new-motor vehicle supply problem is not displaying symptoms of in close proximity to-time period advancement,” Thomas King, president of the details and analytics division at J.D. Power, claimed in a assertion. “For that reason, profits in February are getting identified by the selection of motor vehicles delivered to dealerships somewhat than reflecting actual buyer demand from customers.”

February 24, 2022

Why million mile batteries are the future for EVs

Technological know-how is generally a symbol of status, but some of the technologies we use today is only developed to past a handful of decades and is made appropriately. The times of a kitchen equipment long lasting a decade or for a longer period have disappeared.

On a single hand, this is because the pace of innovation is this kind of that individuals are normally demanding the most current tech. On the other hand, it is just about profits. Prepared obsolescence arrives in the way of degrading battery tech in just devices these types of as smartphones.

Luckily, in the EV planet planned obsolescence is not utilized to the identical extent. There are rumors of 1 million mile (1.6 million km) battery packs with a 400-mile (644 km) array, so the long run appears to be like vibrant or even “charged”.

But with an electrified mobility future, there is a concern that prepared obsolescence could develop into a technique to market new autos.

However, planned obsolescence in the automotive entire world could damage the foreseeable future changeover to electric automobiles and the cause is a relatively basic 1.

Although prepared battery obsolescence could sound tempting for autommakers, primarily with shoppers shopping for new cars each individual 3 decades, it would very likely cause large troubles downstream.

Thanks to the way lithium-ion battery tech performs, batteries are hazardous when tampered with. They have even been regarded to explode, so there’s no “quick fix” if a battery dies.

Not like an combustion-drive automobile, in which a gas injector can be replaced speedily and affordably, EV batteries are pricey to maintenance/change, with some battery module replacements costing far more than $7,000 (about 6,150 euros).

This kind of large expenses mean if a battery was built to final for the length of the average car ownership, 6 years, then it could direct to usable cars and trucks becoming scrapped owing to failing batteries. Why would motorists pay back $14,000 to switch two batteries modules when they could scrap their cars and purchase practically new used combustion-driven cars for considerably less than $7,000?

In truth, a Tesla Model S with an 85 kilowatt-hour battery has 16 battery modules, meaning if all cells were to fail the substitute expenses could reach $112,000 – virtually a few periods the retail price.

Luckily, EV batteries are intended to last longer than six decades. Now, both Mercedes-Benz and Tesla guarantee their EVs (including the batteries) for 8 years and 100,000 miles or 150,000 miles, respectively. In comparison with warranties for combustion-pushed cars, this is ground-breaking.

On the other hand, it is perfectly recognised that combustion-pushed motor vehicles will maintain jogging, properly, very well earlier their warranty time period. The typical motor vehicle age in Greece is 16 many years. The principal purpose that combustion-driven automobiles final extended is the relieve that they can be taken care of and fixed..

So, why is it significant that batteries are built to past as extended as possible.? One particular huge driver is the made use of motor vehicle market place.

EVs are costly and generally out of attain for the normal customer. A made use of auto market place is vital to upcoming mobility but if batteries simply cannot be fixed as easily, then a battery that lasts 10 many years isn’t going accommodate shoppers in Greece.

If automakers can crack the code when it comes to prolonged-lifetime batteries, then a long term mobility network manufactured up typically of EVs is a serious probability. They will also need to produce partnerships with the franchised sellers and independents that can preserve EV batteries operating and even interchange them in between autos, building a utilized EV market a lot more sustainable.

An situation to retain in head, is that utilized EVs bought privately won’t arrive with their original warranties. Meaning the aftermarket will want to be in the loop on long run EV servicing. Making sure groups are properly trained in the method of battery upkeep will become a increased focus.

Effectively-operate workshops will be very important to hold on major of technician workloads and assigned tasks. AI-primarily based software will present greater regulate above possibility.

Digitizing aftersales will ensure servicing and restore not only complies with automaker insurance policies but by skilled experts, making sure requirements are kept in the eyes of the consumer.

January 12, 2022

U.S. Attorney Announces The Arrest Of 13 Individuals For $100 Million Healthcare Fraud, Money Laundering, And Bribery Scheme | USAO-SDNY

Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Miriam E. Rocah, the Westchester County District Attorney, Kevin P. Bruen, Superintendent of the New York State Police (“NYSP”), and Keechant Sewell, Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of two indictments charging 13 individuals – including an NYPD police officer, licensed physicians, an attorney, and others – in connection with a $100 million automobile insurance fraud scheme.

Of the 13 defendants, eight are charged in an indictment detailing conspiracies to commit healthcare fraud, money laundering, bribery, and obstruction, making false statements to federal authorities, and aggravated identity theft. The charges are set forth in United States v. Alexander Gulkarov, et al., 22 Cr. 20 (the “Gulkarov Indictment”), which has been assigned to U.S. District Judge Failla. Five additional defendants are separately charged in United States v. Bradley Pierre, et al., 22 Cr. 19 (the “Pierre Indictment”), which has been assigned to U.S. District Judge Torres.

Of those defendants, ten were arrested this morning in New York and New Jersey and are scheduled to appear before U.S. Magistrate Barbara Moses in Manhattan federal court later today. An eleventh defendant, Alexander Gulkarov, was arrested in Miami, Florida, and is scheduled to appear before a U.S. Magistrate Judge in the Southern District of Florida later today.

U.S. Attorney Damian Williams said: “The thirteen defendants charged in today’s indictments are alleged to have collectively perpetrated one of the largest no-fault insurance frauds in history. In carrying out their massive scheme, among other methods, they allegedly bribed 911 operators, hospital employees, and others for confidential motor vehicle accident victim information. With this information, they then endangered victims by subjecting them to unnecessary and often painful medical procedures, in order to fraudulently overbill insurance companies. Schemes exploiting no-fault insurance laws – which ironically exist to make insurance more affordable – also result in higher costs, and unfairly burden all consumers in the auto insurance market.”

FBI Assistant Director Michael J. Driscoll said: “No-fault accident schemes, like the one alleged today, can cost insurance companies millions of dollars in payouts to doctors and clinics who provide phony or unnecessary services to unwitting accident victims. This cost is almost always passed to consumers of private insurance or subsidized programs established to help those in need. This is a dangerous game in which the penalties include federal criminal charges.”

Westchester County District Attorney Miriam E. Rocah said: “This case is a perfect example of federal, state and local law enforcement working in partnership to investigate and take down two criminal organizations that allegedly defrauded insurance companies and exploited vulnerable individuals by subjecting them to unnecessary, harmful, and sometimes painful, medical treatments for the sake of greed and profit. We will continue to work with our law enforcement partners to hold accountable those who manipulate the insurance system on which so many people depend, especially when the alleged perpetrators are professionals who allegedly violated the oaths they took to serve and protect.”

State Police Superintendent Kevin P. Bruen said: “These indictments are the result of years of investigative work and could not have succeeded without the collaboration between federal, state and local law enforcement. Our investigation uncovered a large-scale, complex scheme that resulted in millions of dollars of fraudulent insurance claims. This type of fraud impacts the entire system and results in higher costs for companies and policyholders. I commend our members and our law enforcement partners for their work on this case, and we are sending a clear message that we will not tolerate fraud on any level.”

NYPD Commissioner Keechant Sewell said: “Today’s indictments reflect schemes to profit by exploiting victims’ through fraud. I commend the NYPD detectives, FBI agents and prosecutors of the United States Attorney’s Office in the Southern District of New York for their long-term efforts and cooperation in this investigation into alleged healthcare fraud, money laundering and bribery. Together, we will continue to be relentless in fighting crime that impacts the people we serve wherever, and however, it occurs.”

According to allegations contained in the Indictments[1] unsealed today in Manhattan federal court:

Background of the Investigation

Since 2017, the U.S. Attorney’s Office for the Southern District of New York, the FBI, and the Westchester County District Attorney’s Office have been investigating several criminal organizations involved in a widespread healthcare fraud and bribery scheme that utilized the New York and New Jersey no-fault automobile insurance regime to earn millions of dollars in illegal profits.

New York and New Jersey no-fault insurance laws require a driver’s automobile insurance company to pay automobile insurance claims automatically for certain types of motor vehicle accidents, provided that the claim is legitimate, and is below a particular monetary threshold (the “No-Fault Laws”). Pursuant to these requirements, insurance companies will often pay medical service providers directly for the treatment they provide to automobile accident victims, without the need to bill the victims themselves. This process resolves automobile claims without apportioning blame or fault for the accident, thereby avoiding protracted disputes, and the costs associated with an extended investigation of the accident.

The Gulkarov Indictment

The Gulkarov Indictment charges eight individuals (the “Gulkarov Conspirators”) with participating in a scheme to exploit the No-Fault Laws. As part of the scheme, the Gulkarov Conspirators fraudulently owned and controlled more than a dozen medical professional corporations – including medical, acupuncture, and chiropractic practices – by paying licensed medical professionals to use their licenses to incorporate the professional corporations (collectively, the “Gulkarov Clinics”). The Gulkarov Conspirators further defrauded automobile insurance companies by billing insurance companies for unnecessary, harmful, and excessive medical treatments and lying under oath to insurance company representatives.

The Gulkarov Conspirators promoted the scheme through bribery. The Gulkarov Conspirators paid hundreds of thousands of dollars to co-conspirators (the “Runners”), who used this money to bribe 911 operators, hospital employees, and others for confidential motor vehicle accident victim information. The Runners then used this information to contact automobile accident victims, lie to them, and induce them to seek medical treatment at, among other places, the Gulkarov Clinics.

The Gulkarov Conspirators laundered the proceeds of the fraud scheme through law firms, check-cashing entities, and shell companies, and used the money to pay for luxury cars, watches, and vacations. Then, when certain members of the conspiracy learned that they were under federal criminal investigation, they obstructed justice by fabricating documents, lying to law enforcement, and committing perjury before a federal grand jury.

As alleged, the leaders of the Gulkarov Conspirators are non-physicians, including ALEXANDER GULKAROV, a/k/a “Little Alex,” ROMAN ISRAILOV, a/k/a “Roman Matatov,” PETER KHAIMOV, a/k/a “Peter Khaim,” and ANTHONY DIPIETRO. ROLANDO CHUMACEIRO, a/k/a “Chuma,” and MARCELO QUIROGA are licensed medical practitioners who incorporated medical practices as part of the scheme, prescribed unnecessary and excessive medical treatments, and overbilled insurance companies under the No-Fault Laws.

The Gulkarov Indictment also includes charges against an attorney, ROBERT WISNICKI, Esq., who is the founding partner of two New York-based law firms. As alleged, WISNICKI laundered hundreds of thousands of dollars of illicit proceeds for the leaders of the Gulkarov Conspiracy and concealed these transfers by fabricating retainer agreements, lying to law enforcement, and committing perjury before a federal grand jury.

Finally, the Gulkarov Indictment includes a charge against an NYPD police officer, ALBERT ARONOV. As alleged, as part of the scheme, ARONOV logged into NYPD computers during off-hours and searched for confidential motor vehicle accident reports on the NYPD’s servers. ARONOV then took photos of the reports using a pre-paid “burner” phone and transmitted the photos to the leaders of the Gulkarov Conspiracy using an encrypted messaging application. The leaders then used the confidential information contained in these reports to contact the motor vehicle accident victims, lie to them, and steer them to the Gulkarov Clinics for medical treatment. When later questioned by federal agents, ARONOV lied about his involvement in accessing and disseminating the confidential motor vehicle accident reports.

All told, the Gulkarov Conspirators billed insurance companies for more than $30 million in fraudulent medical treatments.

The Pierre Indictment

The Pierre Indictment separately charges five additional individuals (the “Pierre Conspirators”) with participating in a second criminal scheme to exploit the No-Fault Laws. The Pierre Conspirators fraudulently owned and controlled five medical services corporations – including medical clinics and a magnetic resonance imaging (“MRI”) center – by paying licensed medical professionals to use their licenses to incorporate the professional corporations (collectively, the “Pierre Clinics”). The Pierre Conspirators further defrauded automobile insurance companies by billing insurance companies for unnecessary, harmful, and excessive medical treatments, falsifying clinical injuries in reports, and lying under oath to insurance company representatives.

The Pierre Conspirators promoted the scheme through bribery. Like the Gulkarov Conspirators, the Pierre Conspirators also paid hundreds of thousands of dollars to the Runners, who used this money to pay bribes for confidential motor vehicle accident victim information. The Runners then used this information to induce victims to seek medical treatment at, among other places, the Pierre Clinics.

The Pierre Conspirators laundered the proceeds of the fraud scheme through phony loan arrangements and shell companies.

As alleged, the leader of the Pierre Conspiracy is BRADLEY PIERRE, who is not a physician. PIERRE conducted much of the No-Fault Scheme from his physical office located in a law firm owned by a family member (“Law Firm-2”), where, among other things, he monitored the Pierre Clinics using closed circuit TV cameras, communicated with co-conspirators using Law Firm-2’s email domain, and met with doctors in Law Firm-2’s offices. PIERRE further openly communicated with Law Firm-2 about the scheme, for instance telling his family member, “I’m going to make sure you ALWAYS make your quota.” Law Firm-2 paid PIERRE over $4 million in connection with the No-Fault Scheme – typically from Law Firm-2’s Interest on Lawyers Trust Accounts (“IOLA Accounts”) – while maintaining no documentation or ledgers identifying the purpose of these payments.

The Pierre Indictment further charges two licensed medical practitioners with participating in the scheme. MARVIN MOY is a medical doctor who incorporated a medical practice as part of the scheme and agreed with PIERRE to conduct unnecessary and painful electrodiagnostic testing on patients. WILLIAM WEINER is a doctor of osteopathic medicine who incorporated a medical imaging facility as part of the scheme and agreed with PIERRE to falsify findings of clinical injuries in MRIs in order to boost patient referrals.

Finally, the Pierre Indictment charges two individuals for conspiring with PIERRE to pay bribes in order to facilitate the scheme. ARTHUR BOGORAZ is a paralegal and manager at a New York-based personal injury law firm (“Law Firm-1”). Among other things, BOGORAZ and PIERRE agreed to jointly pay bribes for patient and client referrals to the Pierre Clinics and Law Firm-1. ANDREW PRIME is a Runner who bribed 911 operators and operated an additional call center as part of the scheme.

All told, the Pierre Conspirators billed insurance companies for more than $70 million in fraudulent medical treatments.

* * *

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendants will be determined by a judge.

Mr. Williams praised the work of the FBI, the New York State Police, the New York City Police Department, the New York City Department of Financial Services, the Westchester County District Attorney’s Office, and the National Insurance Crime Bureau. Mr. Williams noted that the investigation is ongoing.

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit, and the White Plains Division. Assistant United States Attorneys Mathew Andrews and Louis A. Pellegrino are in charge of the prosecution.

22-007 ###

Gulkarov Indictment

Defendant	Age	Hometown	Charges (Potential Maximum Term of Imprisonment)
ALEXANDER GULKAROV, a/k/a “Little Alex”			Healthcare fraud conspiracy, money laundering conspiracy, Travel Act conspiracy, obstruction conspiracy, aggravated identity theft (42 years)
ROMAN ISRAILOV			Healthcare fraud conspiracy, money laundering conspiracy, Travel Act conspiracy, aggravated identity theft (37 years)
PETER KHAIMOV, a/k/a “Peter Khaim”			Healthcare fraud conspiracy, money laundering conspiracy, Travel Act conspiracy, aggravated identity theft (37 years)
ANTHONY DIPIETRO			Healthcare fraud conspiracy, money laundering conspiracy, Travel Act conspiracy; obstruction conspiracy (40 years)
ROLANDO CHUMACEIRO, a/k/a “Chuma”			Healthcare fraud conspiracy (10 years)
MARCELO QUIROGA			Healthcare fraud conspiracy (10 years)
ROBERT WISNICKI			Money laundering conspiracy, obstruction conspiracy (25 years)
ALBERT ARONOV			False statements (5 years)

Pierre Indictment

BRADLEY PIERRE			Healthcare fraud conspiracy, money laundering conspiracy, Travel Act conspiracy, aggravated identity theft (37 years)
MARVIN MOY			Healthcare fraud conspiracy, money laundering conspiracy (30 years)
WILLIAM WEINER			Healthcare fraud conspiracy, money laundering conspiracy (30 years)
ARTHUR BOGORAZ			Travel Act Conspiracy (5 years)
ANDREW PRIME			Travel Act Conspiracy (5 years)

[1] As the introductory phrase signifies, the entirety of the texts of the Indictments and the descriptions of the Indictments set forth herein constitute only allegations and every fact described should be treated as an allegation.