TIP OF THE WEEK
Stem Cell Fraud
CBS News recently did a 60-minute segment about stem cell fraud. Their report first started two years ago with ALS, also known as Lou Gehrig’s disease, Steven Watters and Michael Martin. Doctors Lawrence Stowe and Frank Morales offered a $125,000 stem cell therapy that was promised to get them out of their wheelchairs. This CBS News’ original 60-minutes exclusive segment launched a federal investigation. Last week, Morales and Stowe were indicted. The allocations of $1.5 million stem cell fraud carry a 20 year prison sentence. Unfortunately, the patients who made the segment possible lost their lives to ALS last spring.
FROM THE BLOG
Medicare Fraud Bill Reintroduced by Miami-Based U.S. Rep.
Last week, we told you that Florida leads the nation in mortgage fraud. Today, we have some good news and some bad news regarding the state’s standing with Medicare fraud. We’ll start with the bad and end on the good, it being the holiday season and all. “South Florida has been known as the epicenter of Medicare fraud for years,” said U.S. Rep. Ileana Ros-Lehtinen, R-Miami. Thankfully, Ros-Lehtinen has reintroduced legislation that would double the fines and jail time for people convicted of Medicare fraud.
Fort Lauderdale Businessman Faces $11 Million in Fraud Charges
Fraud knows no age, race or creed. This week’s story comes from the Fraud Dog’s own home town, Fort Lauderdale, Florida. John A. Matters, 50, was a Fort Lauderdale businessman who was arrested last Thursday on $11 million worth of fraud charges, according to the Sun-Sentinel. Mattera convinced investors that he owned lucrative shares of privately held companies like Facebook, raking in the money through his hedge fund, Praetorian Global Fund. Federal prosecutors in New York report that the unscrupulous businessman preyed on clients’ hope that they could capitalize on the next big company to go public. “Mattera told elaborate lies about stock he did not own and about how he would keep investors’ money safe in escrow accounts,” said Manhattan U.S. Attorney Preet Bharara. “Instead, Mattera took the investors’ money to fund his own extravagant lifestyle.” Federal authorities claim that Mattera spent at least $3.8 million of investors’ money on personal expenses, including an $825,000 worth of luxury vehicles, $330,000 on jewelry and $245,000 on home furnishings and interior design décor.
The Fraud Dog Tells ProfNet: “Fighting fraud is my life.”
Each week, ProfNet Connect – a community of professional communicators – spotlights a professional from their network of experts. Last week, Contego Services Group President Linda Webb received the honor for ProfNet’s “Interesting Expert of the Week, Fraud Edition.” Maria Perez, Director of News Operations at ProfNet, asked Webb how “The Fraud Dog” became her nickname – “You have to be “tough as nails” to fight the fraudster,” explained Webb, “I’ve had a gun put to my head and a knife put to my throat in fighting criminals my whole life.” She goes on to explain that she has been fighting fraud all over the globe for over 30 years, and that, “People tell me I chase criminals like a dog with a bone. I don’t stop until I catch the fraudster.”
