Eastern District of California Blog

Feds Accuse El Dorado Hills Man Of Multiple Scams

A federal indictment of captured fugitive Daniel Chartraw released Thursday accuses the former El Dorado Hills resident of far more extensive fraudulent schemes than previously revealed.

The grand jury indictment includes 18 counts of wire fraud in connection with uranium mines, oil commodities, precious metals in concentrate, dairy financing, gold refining and mining, and movie production.

Sacramento Bee, 5/18/12

Loomis Wealth Solutions Defendant Sentenced To Prison In Ireland

Scott Edward Cavell is out of the country but not out of trouble.  The federal fugitive from Sacramento was convicted four weeks ago in a Dublin court on charges relating to an indoor cannabis grow. He was sentenced to four months in prison, part of which he had already served following his arrest.

U.S. authorities have known for some time that Cavell, 28, went to Ireland when he fled on Feb. 2, 2009, to avoid prosecution on charges of wire fraud, money laundering and identity theft.

He is one of four people once associated with Loomis Wealth Solutions – a massive investment and mortgage flimflam – who absconded. The other three were captured and brought back to Sacramento to face various charges.

The now-defunct Loomis Wealth Solutions, which was based in Roseville, is the subject of a continuing investigation dating to 2006. Federal authorities have estimated the loss to lenders and investors at approximately $100 million.

No extradition proceedings have been initiated against Cavell, according to Assistant U.S. Attorney Russell Carlberg. There is a treaty with Ireland, but extradition has historically been a hard sell with the Irish government, so U.S. Department of Justice officials have been attempting to work out an agreement short of court proceedings with Cavell's Sacramento attorney, Richard Pachter.

Sacramento Bee, 5/18/12

Questions Regarding El Dorado Judicial Candidate's Link To Federal Fraud Defendant

The case of a fugitive jailed in Sacramento on federal fraud charges this week may have ramifications in the June 5 race for El Dorado Superior Court judge.

Daniel Chartraw, now held without bail on the fraud charges, was once represented by candidate Joseph A. Hoffman in another matter, and some observers question whether Hoffman acted properly on Chartraw's behalf.

Hoffman's supporters, including prominent members of the legal community, say they've seen no indication of any wrongdoing.

Sacramento Bee, 5/12/12

Firms Pay $3.45 Million To Settle Medicare Fraud Allegations

The U.S. attorney in Sacramento announced Tuesday that two companies have agreed to pay $3.45 million to settle allegations of Medicare fraud involving a Sacramento mental hospital.

Psychiatric Solutions Inc. and Universal Health Services Inc. have agreed to jointly pay the money to the federal government to settle allegations that BHC Sierra Vista Hospital defrauded the Medicare program.

Sacramento Bee, 5/2/12

Five Arrested In Alleged Unemployment And Disability Fraud Scheme

Six Sutter County residents face federal charges in connection with a $5 million unemployment and disability fraud scheme officials said had been running since 1989.

Five people were arrested Tuesday in Yuba and Sutter counties and arraigned in U.S. District Court in Sacramento, Justice Department spokeswoman Lauren Horwood said.

Appeal-Democrat.com, 5/1/12; Sacramento Bee, 5/2/12.

Surrogate Agency Fraud Alleged

A former Colleyville resident who ran a surrogate-mother and egg-donation agency was arrested Friday in California, accused of stealing more than $2 million from prospective parents, surrogates and banks.

On Thursday, a federal grand jury indicted Tonya Collins, 36, on seven counts of wire fraud, four counts of mail fraud, nine counts of bank fraud and 10 counts of money laundering, according to the U.S. attorney's office in Sacramento.

Collins was arrested at her home in Antelope in Sacramento County.

The indictment says the crimes occurred from November 2006 through March 2009.

Collins' companies, SurroGenesis and the Michael Charles Independent Financial Holdings Group, based in Modesto, Calif., are the focus of the federal investigation.

Star-Telegram.com, 4/21/12.

FTC Alleges Fraud In Auto Loan Modification Suit

The Federal Trade Commission is accusing two local auto-loan modification operations of fraud in connection with making false promises to consumers.

In a lawsuit filed in U.S. District Court for the Eastern District of California, the FTC contends that operations in Folsom and Roseville charged hundreds of dollars in up-front fees, based on bogus promises that they could reduce consumers' monthly car loan payments and help avoid repossession of their vehicles.

One is identified as Hope for Car Owners LLC at 13389 Folsom Blvd., in Folsom, with an office at 1410 Rocky Ridge Drive in Roseville. The suit lists defendant Patrick Freeman as "sole manager of HCO and its registered agent."

The FTC also filed against NAFSO VLM Inc., with a listed business address of 8441 Briggs Drive in Roseville. The filing says VLM also does business as Vehicle Loan Mod. Defendant Naythem Nafso was named as that firm's sole officer and registered agent. The NAFSO VLM filing also included charges against a San Diego loan-modification firm, Kore Services LLC, doing business as Auto Debt Consulting.

Sacramento Bee, 4/5/12

Democratic Treasurer Pleads Guilty In Campaign Theft Case

Democratic campaign treasurer Kinde Durkee pleaded guilty Friday to cheating her clients out of at least $7 million, admitting fault in what officials are calling the largest campaign embezzlement case ever prosecuted.

The longtime bookkeeper for hundreds of political committees entered guilty pleas to five counts of mail fraud. Prosecutors are expected to seek 11 to 14 years in prison time under sentencing guidelines.

Federal prosecutors say the veteran campaign treasurer routinely misappropriated money from the accounts she managed for at least 50 clients, including Democratic Sen. Dianne Feinstein, Reps. Linda Sanchez and Loretta Sanchez, Assemblyman Jose Solorio and Board of Equalization Member Jerome Horton. While the plea agreement pegs the losses at $7 million or more, prosecutors say they expect the total to rise to $9 million or $10 million.

Sacramento Bee, 3/31/12

Sacramento Jury Convicts Mortgage Broker In Fraud Case

A Chico woman was convicted by a federal court jury today of two counts of mail fraud in connection with the Chico mortgage fraud scheme that involving a number of Chico-area builders and financiers.

Kesha Danine Fortune Haynie, 41, was found guilty after a six-day trial before U.S District Judge Edward J. Garcia.

Chico ER, 3/28/12

More Details On IRS Probe of $18.6 Million Alleged Fraud From Thunder Valley Casino

As federal prosecutors try to recover $18.6 million allegedly pilfered from the pockets of Thunder Valley Casino owners, the tangled web includes payments of more than $800,000 to the head of the Sacramento County Deputy Sheriffs' Association, a court affidavit alleges.

The payments to a company owned by DSA President Kevin Mickelson and to him personally were for the remodel and upgrade of a $1.1 million El Dorado Hills home purchased by developer Bart Volen, one of three men who are the focus of an Internal Revenue Service probe into a purported overbilling and laundering of the take.

Sacramento Bee, 3/23/12