Money Archives - First Washington News

March 4, 2023

Russia may run out of money in 2024, says oligarch

London
CNN
—

Russia could obtain itself with no income as soon as up coming 12 months and demands international investment, outspoken Russian oligarch Oleg Deripaska has mentioned.

“There will be no funds already up coming 12 months, we need to have overseas buyers,” he said at an economic convention in Siberia Thursday, in accordance to remarks noted by TASS, a Russian state-owned information agency.

The remarks from the billionaire — who referred to as for an conclude to Moscow’s war in Ukraine in the early days of the conflict last year — distinction with a extra upbeat assessment of Russia’s financial fortunes by President Vladimir Putin final 7 days. Putin praised the resilience of the country’s overall economy in the face of unparalleled Western sanctions imposed in the earlier year.

Russia’s economic output shrank 2.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} very last 12 months, according to a preliminary estimate from the government. The contraction was much more restricted than numerous economists at first predicted.

But cracks are setting up to present — Russia is cutting oil manufacturing this thirty day period — and Western sanctions could escalate additional. In the end, Russia’s financial prospective clients are contingent on what happens in Ukraine.

Overseas investors, specially from “friendly” countries, also have a significant position to participate in, Deripaska claimed. No matter whether they will come depends on no matter whether Russia can build the proper disorders and make its marketplaces beautiful, he was quoted as declaring.

In a bid to starve Russia of money for its aggression, Western countries have announced far more than 11,300 sanctions considering that the February 2022 invasion, and frozen some $300 billion of Russia’s overseas reserves.

But China has thrown the Kremlin an economic lifeline by buying Russian vitality, replacing Western suppliers of equipment and foundation metals amid other merchandise, and furnishing an alternative to the US dollar.

Still, Moscow has a steep hill to climb to change revenues lost as a consequence of sanctions, not minimum from exports. Details released Friday confirmed that the European Union’s imports from Russia fell by 51{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in benefit in between February and December final year. The bloc was one particular of the key trading associates for Russia ahead of the invasion of Ukraine, with 38{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of Russia’s exports going to the European Union in 2020.

The Russian government’s earnings plunged 35{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in January as opposed with a 12 months back, when expenditures jumped 59{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, top to a spending plan deficit of about 1,761 billion rubles ($23.3 billion).

Deripaska designed his fortune in the aluminum organization through the chaotic scramble for property pursuing the collapse of the Soviet Union. In 2018, he was sanctioned by the United States, which noted that the oligarch “does not separate himself from the Russian condition.” Last 12 months, he was indicted for allegedly violating US sanctions.

Forbes estimates Deripaska’s existing web worthy of at just beneath $3 billion.

— Anna Chernova contributed reporting.

February 7, 2023

FTX seeks to claw back money donated to politicians

New York
CNN
—

The new administration of FTX is pressuring hundreds of politicians and political organizations to return hundreds of thousands of pounds donated by the crypto system or its founders right before it went bankrupt previous 12 months.

The company, which collapsed in November and is now at the middle of a substantial federal fraud investigation, said it was sending “confidential messages” to political figures, political motion resources and other recipients as it seeks to claw back again belongings to repay its estimated 1 million creditors. In a assertion on Sunday, FTX said the donations have to have to be returned by the close of the month. If they aren’t, FTX claimed it reserves the appropriate to sue recipients.

“To the extent these types of payments are not returned voluntarily, the FTX Debtors reserve the ideal to start actions right before the Personal bankruptcy Court to involve the return of these kinds of payments, with curiosity accruing from the day any action is commenced,” the assertion reads. The firm included that recipients who gave the money to a 3rd occasion, like a charity, aren’t off the hook.

In FTX’s heyday, founder Sam Bankman-Fried was a fixture in DC politics, lobbying for mild-touch regulation of the nascent crypto marketplace and getting just one of the premier contributors to the Democratic Party. Bankman-Fried himself gave roughly $40 million to strategies and political motion committees, mostly backing Democrats, for the duration of the 2022 midterm election cycle, according to Federal Election Commission records.

Bankman-Fried afterwards instructed journalist Tiffany Fong that he donated an equal quantity to Republicans but that those people donations were being “dark.”

Federal prosecutors say that FTX, at the direction of Bankman-Fried, stole cash from shopper deposits to make political donations, acquire luxury genuine estate and cover losses at his hedge fund, Alameda Investigate.

Bankman-Fried pleaded not guilty to 8 counts of fraud and conspiracy previous thirty day period. Two of his previous associates, meanwhile, have pleaded guilty and implicated Bankman-Fried in the alleged crimes.

Independently, on Monday, FTX’s CEO John Ray III, who took around for Bankman-Fried when the agency filed for bankruptcy, testified about the company’s cybersecurity infrastructure, which he termed “very loose” and “vulnerable.”

“Literally a person of the founders could arrive into this atmosphere, download 50 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} a billion dollars’ worth of wallets onto a thumb push and wander off with them, and there’d be no accounting for that whatsoever,” he stated, incorporating that these types of lapses would be “virtually unthinkable…in a managed setting.”

He explained the course of action of securing FTX buyer passwords and wallets in the 1st 48 several hours of his leadership as “pure hell.” Ray grew to become CEO in November, changing Bankman-Fried. In the months in between November 11, when he took above the organization, and the stop of the 12 months, Ray advised the court that he designed around $690,000 in costs, excluding fees.

Ray’s testimony underscored his former accounts of stepping into a organization in full disarray. Ray, who oversaw the liquidation of Enron, mentioned in November that had in no way found these types of a “complete failure of company controls” and absence of trusted monetary statements in his occupation.

The judge in the case was weighing an exertion by the US Trustee, which signifies the Division of Justice in individual bankruptcy scenarios, to install an unbiased, courtroom-appointed examiner to oversee FTX’s personal bankruptcy.

Attorneys for FTX argued against such a a shift, indicating that an examiner would be duplicative, wasteful and highly-priced, with the load getting shouldered by FTX creditors.

The US Trustee argued that the allegations of fraud and misconduct are “too critical to be still left to an internal investigation.”

Choose John Dorsey has not still dominated on the examiner difficulty.

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.

April 30, 2022August 9, 2022

Recession fears are mounting. Here’s how to protect your money

Warnings of a likely recession aren’t shocking offered how numerous tripwires there are in today’s economic system.

A drive by the Federal Reserve to elevate desire premiums and combat large inflation. Supply chain shortages. An ongoing global overall health disaster. And of course, the geopolitical earthquake caused by Russia’s invasion of Ukraine, which is also threatening to develop a globe meals disaster.

By HomeLight Homes

Even if the US does not slide into a recession – and there are signs it may possibly not – there are plenty of economic headwinds that could have likely unfavorable results on your funds. Listed here are methods to evaluate your condition and guard in opposition to losses.

With extremely-lower unemployment and a good deal of openings, it is a task seeker’s industry right now. But if there’s a recession, that could adjust speedily. So make hay whilst you can.

“If you are not working, or are on the lookout for a much better place, now would be a fantastic time to consider gain of the extremely sturdy job marketplace and lock in a place,” said Florida-dependent accredited money planner Mari Adam.

To support in your search, here are some resume dos and don’ts to keep in thoughts.

If you have been on the fence about providing your residence, now may well be the time to make the leap.

The housing market place has been on a tear, with year-in excess of-calendar year prices up 19.8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in February, in accordance to the latest S&P CoreLogic Circumstance-Shiller home price tag report.

But home loan rates are also on the rise, which may dampen demand from customers. “I would recommend that any individual scheduling to put their property on the sector do so correct absent,” reported Adam.

Possessing liquid property to include you in emergencies or intense market place downturns is often a fantastic plan. But it’s especially very important when struggling with huge events past your control – such as layoffs, which ordinarily increase for the duration of recessions.

That indicates possessing ample money set apart in funds, dollars market place resources or small-phrase mounted profits devices to deal with quite a few months of dwelling fees, emergencies or any significant, predicted expenditure (e.g., a down payment or school tuition).

This is also highly recommended if you are in close proximity to or in retirement. In that circumstance, you might want to established aside a year or much more of dwelling charges that you would ordinarily pay for with withdrawals from your portfolio, reported Rob Williams, taking care of director of fiscal setting up, retirement revenue and prosperity administration at Charles Schwab. This should really be the total you would need to supplement your preset profits payments, these as Social Safety or a private pension.

In addition, Williams indicates obtaining two to four years in decreased volatility investments like a limited-phrase bond fund.

That will support you ride out any sector downturns should really 1 manifest and give your investments time to get well.

Rapid-fire news studies about increased strength and food costs or converse of a opportunity globe war or nuclear attack are unnerving.

But making monetary conclusions based mostly on an psychological response to existing activities is often a getting rid of proposition.

“Making a radical modify in the midst of all this uncertainty is commonly a final decision that [you’ll] regret,” said Don Bennyhoff, chief financial investment officer for Liberty Prosperity Advisors and a former expenditure strategist at Vanguard.

Glance again at periods of disaster in excess of the final century and you’ll see that shares typically arrived again a lot quicker than any one could possibly have anticipated in the minute, and did perfectly on regular above time.

For illustration, given that the money crisis strike in 2008, the S&P 500 has returned 11{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} a 12 months on average as a result of 2021, according to data analyzed by First Have confidence in Advisors. The worst calendar year in that period was 2008, when stocks fell 38{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. But in most of the a long time that adopted, the index posted a attain. And four of its annual gains ranged involving 23{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and 30{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

If you go back again as significantly as 1926, that once-a-year normal return on the S&P has been 10.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

“Staying the training course could be difficult on your nerves, but it can be healthiest for your portfolio,” Williams explained.

That’s not to discount the seriousness of nuclear threats or the prospect that this time period could diverge from historical patterns. But were being matters to definitely escalate globally, he noted, “we’d have far more to be concerned about than our expense portfolios.”

It’s effortless to say you have a higher tolerance for danger when stocks are soaring. But you have to be ready to belly the volatility that inevitably will come with investing in excess of time.

So overview your holdings to make positive they continue to align with your hazard tolerance for a perhaps rockier road in advance. And whilst you’re at it, figure out what it implies to you to “lose” funds.

“There are several definitions of risk and loss,” Bennyhoff stated.

For occasion, if you’re holding money in a personal savings account or CD, any desire you are earning is most likely staying outpaced by inflation. So whilst you protect your principal, you drop acquiring power around time.

Then once again, if it’s far more vital to protect principal around a yr or two than hazard shedding any of it – which could materialize when you invest in shares – that inflation-primarily based loss may possibly be worth it to you because you are obtaining what Bennyhoff phone calls a “sleep-easy return.”

That explained, for for a longer time-time period objectives, determine out how a lot you experience at ease placing at some threat to get a higher return and avoid inflation from ingesting away at your price savings and gains.

“Over time you’re greater off and safer as a person if you can develop your prosperity,” Adam said.

Specified report stock returns in the past number of years, now is a very good time to rebalance your portfolio if you have not carried out so in a whilst.

For instance, Adam reported, you may perhaps be obese in development stocks. To help stabilize your returns heading forward, she prompt maybe reallocating some dollars into slower-escalating, dividend-spending price shares via a mutual fund.

And look at to see that you have at the very least some exposure to bonds. Although inflation has resulted in the worst quarterly return in significant-high-quality bonds in 40 many years, never rely them out.

“Should a economic downturn consequence from the Fed’s intense curiosity price hikes to quell inflation, bonds are probably to do very well. Recessions tend to be much kinder to significant high-quality bonds than they are to stocks,” Bennyhoff stated.

If you have a big lump sum – maybe you just offered your company or dwelling, or you obtained an inheritance or significant bonus – you may perhaps wonder what to do with it now.

Provided all the worldwide uncertainty, Adam suggests investing it in smaller sized chunks periodically – e.g., every month for a supplied period of time of time – relatively than all at the moment.

“Space out your investing about time since this week’s information will be distinct than up coming week’s news,” she claimed.

Whichever the information today, creating economic security in excess of time necessitates a amazing, continuous hand.

“Don’t enable your inner thoughts about the financial state or the marketplaces sabotage your long-time period progress. Keep invested, remain disciplined. Heritage demonstrates that what people today – or even specialists – consider about the market is generally erroneous. The most effective way to meet your lengthy-expression plans is just keep invested and adhere to your allocation,” Adam mentioned.

Doing so will enable decrease any problems a rough market in 2022 may induce.

“If you have designed an correctly diversified portfolio that matches your time horizon and risk tolerance, it’s probable the recent sector fall will be a mere blip in your extensive-expression investing approach,” Williams stated.

Try to remember, also: It is not possible to make perfect possibilities because no just one has best details.

“Collect your info. Consider to make the most effective determination centered on all those facts moreover your particular person targets and danger tolerance.” Adam said. Then, she included, “Let go.”

(If you want to assist Ukrainians who have experienced to flee or who stayed guiding to battle, here’s a increasing list of organizations to which you can make a donation.)

February 6, 2022

GoFundMe backtracks on redistributing money for Canadian truckers, under threat of fraud investigation

Look at out what is actually clicking on FoxBusiness.com.&#13

Dealing with a opportunity fraud investigation by the state of Florida, GoFundMe reversed a conclusion to redistribute funds supplied by hundreds of donors to the Canadian “Flexibility Convoy” protesting COVID-19 regulations.

On Friday, the crowdfunding platform GoFundMe froze the convoy’s formal campaign, professing regulation enforcement convinced the enterprise that the convoy experienced turn into violent and illegal.

GoFundMe inspired donors to post a refund sort, and said that any funds not thoroughly returned to donors would be donated to a charity preferred by the Freedom Convoy.

Within just hrs, on the other hand, GoFundMe walked back again the refund apps, in its place saying it would be refunding donors quickly.

Florida Gov. Ron DeSantis said that he would “examine” the company, accusing them of fraud.

“GoFundMe supports peaceful protests and we believe that was the intention of the Freedom Convoy 2022 fundraiser when it was initially created. We now have evidence from legislation enforcement that the formerly peaceful demonstration has develop into an occupation, with law enforcement experiences of violence and other unlawful activity,” GoFundMe introduced. There has been minimal to no reviews of documented violence at the protest.

CANADIAN PASTOR WHO DEFIED COVID BAN BY Keeping Products and services SINGS ‘AMAZING GRACE’ AT US BORDER

GoFundMe also drew the ire of Texas Lawyer Basic Ken Paxton, who said on social media that he would be launching a fraud investigation.

“Patriotic Texans donated to Canadian truckers’ deserving bring about employing GoFundMe. This BLM-backing company went woke, froze the cash, & unsuccessful to provide Texans’ funds,” Paxton stated. “Currently I assembled a workforce to examine their probable fraud & deception. Texas donors will get Justice!”

The GoFundMe site to assist the “Independence Convoy” of Canadian truckers was approaching $10 million as of Monday night, which is more money than the key federal political parties of Canada elevated through the very last quarter of 2021.

The final truck blocking the southbound lane moves right after a breakthrough fixed the impasse exactly where anti-COVID-19 vaccine mandate demonstrators blocked the freeway at the occupied U.S. border crossing in Coutts, Alberta, Wednesday, Feb. 2, 2022. (Jeff McIntosh /The Canadian Push through AP / AP Newsroom)

“Our present authorities is applying regulations and mandates that are destroying the foundation of our companies, industries and livelihoods,” read through the convoy’s GoFundMe webpage. “We are a tranquil state that has aided safeguard nations throughout the world from tyrannical governments who oppressed their persons, and now it would seem it is taking place listed here.”

The organization on top of that cited the group of trucks’ evolution from convoy to stationary protest in Ottawa as the rationale for the campaign’s termination.

Truckers position to where their sleeper taxi was egged whilst they take part in a protest against COVID-19 limitations in Ottawa, on Friday, Feb. 4, 2022. (Justin Tang /The Canadian Press by way of AP / AP Newsroom)

“Organizers supplied a crystal clear distribution program for the original $1M that was unveiled previously this week and confirmed cash would be utilized only for contributors who traveled to Ottawa to participate in a peaceful protest. Supplied how this problem has evolved, no even further money will be instantly distributed to the Liberty Convoy organizers — we will do the job with organizers to send out all remaining money to credible and recognized charities selected by the Freedom Convoy 2022 organizers and verified by GoFundMe.”

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GoFundMe faced immediate backlash for the announcement with tens of countless numbers of feedback on their social media posts about the cancellation.

A protester carries empty cans for gasoline as a protest versus COVID-19 restrictions continues into its second 7 days, in Ottawa, on Friday, Feb. 4, 2022. (Justin Tang /The Canadian Press via AP / AP Newsroom)

Critics of the firm’s haphazard cancellation involve Tesla CEO Elon Musk, who questioned regardless of whether there is a “double-common,” offered previous fundraisers for legal funds in protection of antifa members and legal protesters.

FOX Business’ Jon Brown contributed to this report.

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.