Financial Advisor Charged In White Plains Federal Court With Embezzlement From Client

 

 Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment in White Plains federal court charging ADAM BELARDINO, the Chief Executive Officer of the Maddox Group, a financial advisory firm in New York City and elsewhere, with wire fraud in connection with his embezzlement of more than $313,000 from a Maddox client, a 64 year old New Rochelle resident.  BELARDINO was arrested this morning and will be presented in White Plains federal court later today. 

U.S. Attorney Damian Williams said:  “Adam Belardino abused the trust his client placed in him by stealing more than $313,000 the client gave him to be invested.  Clients like the victim in this case need to be able to entrust their money to financial advisors with confidence that the money will be invested in a manner that is appropriate for them.  This Office will aggressively pursue financial advisors and others who steal money entrusted to them by clients.”

FBI Assistant Director-in-Charge Michael J. Driscoll said:  “Belardino is charged today for allegedly stealing several hundred thousand dollars from a client in an illegal investment fraud scheme. Financial crimes of this nature can cause significant disruptions to the lives of those who are victimized. We urge everyone to exercise their due diligence when investing their money and to report suspicious activity to authorities as soon as possible.”

According to the Indictment unsealed today in White Plains federal court[1]:

BELARDINO had managed the victim’s investments at another firm before he founded Maddox in July 2019.  In August 2019, BELARDINO convinced the victim to liquidate some of her portfolio and to transfer the liquidated funds to Maddox for investment.  The victim then transferred more than $313,000 to Maddox in eight separate transactions between August 2019 and October 2020.  Instead of investing the victim’s money as he had promised, BELARDINO used the victim’s money to pay the operating expenses of Maddox, including payroll and office rent; to pay down prior debt; to pay credit card charges, which consisted primarily of personal items; and to pay for personal travel. 

In September 2021, the victim directed BELARDINO to transfer her portfolio at Maddox to her brokerage account at another firm.  From September 2021 to February 2022, BELARDINO sent the victim and members of her family emails and texts in which he said he was liquidating the portfolio and would return the funds shortly.  BELARDINO also provided the victim’s family with documents suggesting that a wire transfer of the funds to the victim’s bank account was imminent or pending.  BELARDINO also deposited checks drawn on a checking account held by Maddox into the victim’s bank account for what he claimed was the full value of the victim’s portfolio. 

The victim never received any funds by wire and the checks BELARDINO deposited into her bank account were returned because the Maddox account did not have sufficient funds to cover the checks.  BELARDINO sent members of the victim’s family emails and texts in which he said in substance and in part that he was working with bank officials to resolve the problem and that his family would repay the victim if he was unable to do so.  BELARDINO also sent members of the victim’s family a document that falsely stated that the Maddox bank account had sufficient funds to repay the victim.

BELARDINO, 37, of New York City, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison. 

The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the investigative work of the FBI.

The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

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

Second Gang Member Pleads Guilty To Firearms Offenses And Admits To Participating In Fatal October 2019 Robbery

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced that DERRICK CASADO, a/k/a “Big Bank,” a/k/a “Papa D,” pled guilty today to conspiring to distribute 28 grams and more of crack cocaine and using, carrying, possessing, brandishing, and discharging a firearm in connection with a crime of violence—namely, the May 17, 2019 shooting of a rival gang member near Sheridan Avenue and Marcy Place in the Bronx.  CASADO was the fourteenth defendant to plead guilty in the case and the second to admit his participation in an October 5, 2019 robbery near 20 East 116th Street in Manhattan, during which CARLOS ROSARIO, a/k/a “Baby Bottle,” shot and killed Jonathan Rodriguez, who tried to intervene in the robbery.  On February 9, 2022, ROSARIO pled guilty to conspiring to commit assault with a dangerous weapon and murder in a gang-related incident on July 18, 2019, and two counts of discharging a firearm during gang-related incidents on July 20, 2019 and October 5, 2019.  ROSARIO also admitted his role in causing Rodriguez’s death.  All of the defendants pled guilty before U.S. District Judge J. Paul Oetken.

According to allegations in the Indictment and Superseding Indictments filed in this case, as well as statements by the Government and defense at plea proceedings in this case:

Between 2017 and 2019, DARRELL LAWRENCE, a/k/a “Capo,” and DAVON MCCULLOUGH, a/k/a “Yung,” a/k/a “Dayday,” were leaders and suppliers of a narcotics conspiracy that operated principally on and around East 176th Street and Anthony Avenue in the Bronx, as well as in Maine and Virginia.  Many members of the conspiracy—including CASADO and ROSARIO—were also members of the Mac Ballers gang.  Members of the conspiracy trafficked in significant quantities of crack cocaine, heroin, fentanyl, and other dangerous drugs; and they routinely used, carried, and possessed firearms to protect their drug operations and advance their gang interests.  For example, on May 17, 2019, CASADO traveled from the area of East 175th Street to Sheridan Avenue near East 169th Street and shot at a member of a rival gang who had insulted CASADO’s gang set on social media.  On July 18, 2019, ROSARIO attempted to shoot at other rival gang members in the vicinity of East 178th Street and Anthony Avenue; and two days later, on July 20, 2019, ROSARIO fired shots into the courtyard of an apartment complex at 2000 Valentine Avenue.  Then, on September 13, 2019, MCCULLOUGH drove two co-conspirators to commit a robbery of marijuana at a store near 2163 Second Avenue in Manhattan, knowing that at least one of the robbers would use a gun to commit the robbery.  During the ensuing robbery, both co-conspirators brandished guns and stole marijuana and proceeds of marijuana sales, among other things.  On October 5, 2019, CASADO, ROSARIO, and a third co-conspirator approached and robbed personal property from two individuals near 20 East 116th Street in Manhattan while ROSARIO brandished a firearm and assaulted one of the victims with the firearm.  Jonathan Rodriguez attempted to intervene, and as he approached ROSARIO from behind, ROSARIO turned and fired a shot, causing Rodriguez’s death.

CASADO pled guilty today to conspiring to distribute 28 grams and more of crack cocaine and using, carrying, and possessing firearms in connection with a crime of violence, which carry a combined mandatory minimum sentence of fifteen years in prison and a maximum sentence of life in prison.  ROSARIO pled guilty to conspiring to commit assault with a dangerous weapon and murder, and two counts of using, carrying, possessing, brandishing, and discharging a firearm during gang related incidents, which carry a combined mandatory minimum sentence of twenty years in prison and a maximum sentence of life in prison.

Among the other defendants to plead guilty in this case, LAWRENCE pled guilty to conspiring to distribute 280 grams and more of crack cocaine, heroin, fentanyl, cocaine, oxycodone, and marijuana, which carries a mandatory minimum sentence of ten years in prison and a maximum sentence of life in prison; and on February 14, 2022, MCCULLOUGH pled guilty to using, carrying, and possessing a firearm in connection with a drug trafficking crime; using, carrying, and possessing a firearm that was brandished in connection with a robbery on September 13, 2019, and conspiring to retaliate against a cooperating witness, which carry a combined mandatory minimum sentence of twelve years in prison and a maximum sentence of life in prison.

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

ROSARIO is scheduled to be sentenced at 11:30 a.m. on May 26, 2022.  MCCULLOUGH is scheduled to be sentenced at 11:00 a.m. on June 30, 2022.  LAWRENCE is scheduled to be sentenced at 12:00 p.m. on July 12, 2022.  CASADO is scheduled to be sentenced at 11:00 a.m. on October 27, 2022.  Each of the defendants will be sentenced by U.S. District Judge J. Paul Oetken.

Mr. Williams praised the outstanding work of the New York City Police Department and Department of Homeland Security-Homeland Security Investigations.

Governor Hochul, Secretary Fudge, Senator Schumer, and Representative Bowman Announce Approval of Loan Refinancing to Maintain Housing Quality and Affordability for Co-op City

State and Local Government Backing Supports Refinancing to Provide Immediate Injection of $124 Million to Make Repairs and Upgrades for 45,000 Co-op City Residents  

Refinance Will Help Ensure Quality Housing in World's Largest Housing Cooperative   

 Governor Kathy Hochul, U.S. Department of Housing and Urban Development Secretary Marcia Fudge, Senator Charles Schumer, and Representative Jamaal Bowman today announced that Riverbay Corporation, the management company for Co-op City, the U.S. Department of Housing and Urban Development, Wells Fargo, the Mortgage Insurance Fund of the State of New York Mortgage Agency, and NYC Housing Development Corporation have processed and approved Co-op City's Department of Housing and Urban Development loan refinance. The refinance will maintain long-term housing quality and affordability for the tens of thousands of residents who call Co-op City home. Refinancing provides the housing company with $124 million in proceeds that will be used for capital improvements, including upgrades to the heating, ventilation, and air conditioning system, façade maintenance, and electrical system upgrades.  

"My administration is committed to maintaining access to safe, quality affordable housing that enables New Yorkers to live with the dignity they deserve," Governor Hochul said. "This transformative injection of capital funding will allow us to modernize Co-op City, the largest housing cooperative in the world, and ensure long-term affordability for its 45,000 residents."   

United States Department of Housing and Urban Development Secretary Marcia L. Fudge said, "We applaud the successful completion of the refinance for the Bronx's Co-op City Complex. The Biden-Harris Administration and HUD are committed to stabilizing the housing market nationwide using every tool at our disposal, including utilizing Federal Housing Administration multifamily mortgage insurance as a key financing source. From supporting larger loans in major metropolitan areas to smaller loans in rural communities and suburbs, HUD is proud to be a partner in creating and preserving affordable housing across the country." 

Senator Charles Schumer said, "The Bronx's Co-op City provides an affordable home to more than 45,000 New Yorkers in an increasingly expensive housing market. That's why I worked to secure a timely refinance agreement for Co-op City, which will help maintain the quality, viability and long-term affordability of this one-of-a-kind community. The deal will also improve the lives of the residents by allowing repairs and other improvements to be made, all while providing affordable housing for generations to come. We haven't stopped pushing and working with HUD to lock in the refinance and we are proud to announce HUD approval."  

Representative Jamaal Bowman said, "Co-op City is truly a one-of-a-kind community, home to the largest affordable housing cooperative in America and more than 45,000 constituents that I am honored to serve. It is imperative that the Co-op City community has the funds needed to maintain their affordable housing and commercial space, which supports  all who live there. I am proud to have worked alongside the U.S. Department of Housing and Urban Development under Secretary Fudge's leadership, Majority Leader Schumer, and Governor Hochul to advance a timely refinance agreement for Riverbay Corp, which will unlock significant capital funds for urgent repairs. Co-op City is a prime example of what cooperative housing can look like across this nation and I look forward to seeing how this loan refinance will continue to support making this community even more sustainable, livable and affordable." 

The restructured $621.5 million mortgage loan from Wells Fargo extends the term of affordability for an additional 10 years and provides $124 million for the cooperative to undertake necessary capital repairs. With 15,372 homes, Co-op City is the largest cooperative housing development in the world. The Mortgage Insurance Fund of the State of New York Mortgage Agency, which is part of New York State Homes and Community Renewal, and the New York City Housing Development Corporation, will provide credit support with $55 million and $15 million coverage of the loan, respectively. The loan includes $15 million for immediate capital repairs, including approximately $10 million for balcony and façade repair, $2.5 million for the replacement of residential water pumps and $2.5 million for the replacement of garage elevators. The loan also includes $109 million to replenish a reserve account for future repairs, all without raising maintenance charges for residents. 

Bronx Borough President Vanessa Gibson said, “Today’s announcement is a huge win for the residents and families of Co-op City. I am grateful for this important partnership that acknowledges the capital needs of Co-op City and this $124M investment will make a difference for Co-op City’s environmental sustainability. My gratitude to the elected officials, Riverbay Corporation, our private and financial partners who made this refinancing possible for the best interests of our residents and families.“

The 2012 Wells Fargo mortgage loan to Riverbay Corporation, which owns Co-op City, was the largest ever insured under the Department of Housing and Urban Development's Sec. 223(f) program, which protects lenders against loss on mortgage defaults at multifamily properties.  

Co-op City is home to over 45,000 residents on 320 acres - the single largest co-op development in the country. The site has multiple schools, three commercial malls, and its own power plant. It has provided tens of thousands of families the opportunity to grow up in a stable middle-class community. This refinancing arrangement will help ensure tens of thousands more have that same opportunity and provide proceeds to make capital investments that will benefit residents for years to come.  

Get your tickets for the Bronx Dems 2022 Spring Reception!

 

You're Invited: Bronx Democrats Spring Reception 2022

Please join Chairman Jamaal T. Bailey and the Bronx  Democratic County Committee for an indoor/outdoor  Spring Reception. Please RSVP to Darren@dynamicsrg.com Make checks payable to & mail to: The Bronx Democratic County Committee c/o Ariana Collado, 3666 Varian Ave., Bronx, NY 10466 Bronx Democratic Party   1952 Williamsbridge Road, The Bronx, NY 10461

MAYOR ADAMS RELAUNCHES INITIATIVES TO CUT RED TAPE FOR BUILDING AND SMALL BUSINESS OWNERS, IMPROVE BUILDING SAFETY

 

Two Citywide Initiatives Help Building Owners Maintain Safe Structures, Comply With Code Instead of Facing Violations and Penalties

New Yorkers Can Call 311 to Request No-Penalty, No-Cost Inspections of Business Signs, Decks, and Retaining Walls

 New York City Mayor Eric Adams today relaunched two programs that will help building and small business owners ensure the safety of their buildings without financial penalties — cutting red tape and eliminating barriers to critical safety evaluations and resources. The two citywide initiatives — the No-Penalty Business Accessory Sign Inspection Program and the No-Penalty Deck and Retaining Wall Inspection Program — will give small business owners, homeowners, and other property owners throughout the five boroughs assurance about the condition of their properties, while providing valuable guidance on proper maintenance.

 

Participants can call through May 31 to receive a free inspection by the New York City Department of Buildings (DOB) to determine whether outdoor structures are in good condition with no visibly apparent violating conditions. Following the inspection, DOB will connect with property owners to discuss findings. If any unsafe conditions are discovered, DOB will provide guidance on any issues that need to be fixed without issuing any violations or penalties, allowing owners the opportunity to make corrective repairs and ensure the safety of their property.

 

“Government is most effective when we bring services directly to the people, and these initiatives keep New Yorkers safe by doing exactly that,” said Mayor Adams. “We want to identify issues before they become safety hazards, and we are doing that by partnering with small business and property owners instead of penalizing them.”

 

“The Adams administration is here to work with New Yorkers and their small businesses,” said Deputy Mayor for Operations Meera Joshi. “These programs by the Department of Buildings will help building owners identify problems and work with us to address them before they become a danger and a financial burden.”

 

“In relaunching these critical programs, the city is changing the paradigm for small businesses by putting education and support first — not costly penalties and onerous red tape,” said Deputy Mayor for Economic and Workforce Development Maria Torres-Springer. “Ensuring small businesses have a chance to address issues and ensure safety for themselves and their customers is the best way forward for all New Yorkers.”

 

“It’s no secret that proactive property maintenance is the best way to prevent costly damage and potential accidents,” said DOB Acting Commissioner Constadino “Gus” Sirakis, P.E. “I encourage small businesses and property owners in our city to take advantage of these programs and get started on their spring property maintenance to make sure their building is up to snuff.”

 

“New York City is coming through for small businesses by cutting red tape and helping them to avoid penalties,” said New York City Department of Small Business Services Commissioner Kevin D. Kim. “Through the power of education rather than punishment, we are improving their interactions with government and ensuring safety in our buildings for all New Yorkers.”

 

Through the No-Penalty Business Accessory Sign Inspection Program and the No-Penalty Deck and Retaining Wall Inspection Program, homeowners and business owners can request a free, no-penalty visual inspection by a DOB inspector of any accessory business sign, deck, porch, or retaining wall on their property — simply by calling 311 between April 27, 2022 and May 31, 2022. If, after an inspection, these outdoor structures are found to be in an unsafe condition, but repairs are made promptly, no penalties will be issued.

 

Weather, age, and improper installation can all cause outdoor structures to weaken and deteriorate over time. It is important for public safety that property owners ensure these outdoor structures are up to code and properly maintained. By law, property owners in New York City are required to maintain their buildings — including these types of outdoor structures — in a safe and code-compliant condition.

 

Since the annual No-Penalty Deck and Retaining Wall Inspection Program was first launched in 2005, DOB has performed hundreds of no-penalty inspections, saving homeowners both time and money by identifying potential safety issues before they become a bigger problem. DOB launched its first-ever No-Penalty Business Accessory Sign Inspection Program in 2020, offering to inspect business signs at no cost and without risk of penalties.

 

49th Precinct Council Meeting at Eastchester Gardens

 

Tuesday night was the monthly 49th Precinct Council meeting that was held at the Eastchester Gardens Community Center. President Joe Thompson opened the meeting introducing the new commanding officer of the 49th Precinct Captain Gareth Kentish. Captain Kentish gave a brief history of his police career, a former Sergeant in the 49th Precinct, the 47th Precinct, and Captain of the 44th Precinct. 

Captain Kentish went over the past 28 day statistics for the seven major crimes saying there was one murder compared to none for the same time period last year. No rapes compared to two, and that Burglaries were down, with nine compared to nineteen. The other four categories were all up compared to the same 28 days last year. Seventeen robberies compared to seven, twenty-six Felonious assaults compared to twenty-one, Forty-three Grand Larcenies compared to twenty-four, and twenty-five G.L.A. (car thefts) compared to eighteen. 

Captain Kentish asked for the community people to communicate information on crimes to the police department. He added that some of the stolen cars are used for robberies or violence, and also the same goes for stolen plates. There were six shootings with all three housing projects having at least one. He closed by saying that the areas where shootings occur are flooded with officers trying to get information on the shootings.

The Cop of the month was Neighborhood Safety  Officer Ortiz who with his partner took a gun off the street. The Citizen of the month was MS. Antwana Powell-Anderson from the Eastchester Garden Houses. Community reports were heard next, and the meeting ended with individual speakers.

(L - R) Precinct Council Recording Secretary Grace Lovaglio, Community Affairs Detective J. Sturdivant, Captain Gareth Kentish (standing), President Joe Thompson, Vice-President Hazel Miura, Assistant Secretary Andrea Siegel, Corresponding Secretary Phyllis Nastasio, and Treasurer Elio Morales. 

Captain Kentish shows off his Neighborhood Safety team Police officers Reyes, Clifford, Acosta, Ortiz, and Sergeant Monteregro. Also in the photo is NCO Sergeant Hall.

Cop of the Month Neighborhood Safety Officer Ortiz Holds a citation from Councilman Kevin Riley, with Precinct Council Vice-President Miura, Captain Kentish, and Precinct Council President Thompson.

Citizen of the month Antwana Powell-Anderson is flanked by Councilman Riley and Precinct Council President Thompson.

    

Attorney General James Responds to Trump’s Appeal of Contempt Ruling

 

 New York Attorney General Letitia James released the following statement in response to Donald J. Trump’s appeal of a ruling that found him in contempt of court and imposed a $10,000 fee for every day he refuses to comply with subpoenas from the Office of the Attorney General:

“The judge’s order was clear: Donald J. Trump is in contempt of court and must pay $10,000 a day until he complies with our subpoenas. We’ve seen this playbook before, and it has never stopped our investigation of Mr. Trump and his organization. This time is no different.”

U.S. Attorney Announces Charges Against A Doctor, Dentist, And Former NBA Player For Defrauding The NBA Players’ Health And Welfare Benefit Plan

 

Dr. William Washington, Aamir Wahab, DDS, and Keyon Dooling Were Charged Along With 16 Others in a Scheme to Defraud the NBA’s Health and Welfare Benefit Plan

 Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Superseding Indictment charging TERRENCE WILLIAMS, AAMIR WAHAB, WILLIAM WASHINGTON, ALAN ANDERSON, KEYON DOOLING, ANTHONY ALLEN, DESIREE ALLEN, SHANNON BROWN, WILLIAM BYNUM, RONALD GLEN DAVIS, CHRISTOPHER DOUGLAS-ROBERTS, a/k/a “Supreme Bey,” JAMARIO MOON, DARIUS MILES, MILTON PALACIO, RUBEN PATTERSON, EDDIE ROBINSON, SEBASTIAN TELFAIR, CHARLES WATSON JR., and ANTHONY WROTEN with conspiracy to commit health care fraud and wire fraud, in connection with a scheme to defraud the National Basketball Association’s (“NBA’s”) Health and Welfare Benefit Plan out of at least approximately $5 million.  TERRENCE WILLIAMS and ALAN ANDERSON are also charged with aggravated identity theft in connection with the same scheme.  TERRENCE WILLIAMS, ALAN ANDERSON, ANTHONY ALLEN, DESIREE ALLEN, SHANNON BROWN, WILLIAM BYNUM, RONALD GLEN DAVIS, CHRISTOPHER DOUGLAS-ROBERTS, a/k/a “Supreme Bey,” JAMARIO MOON, DARIUS MILES, MILTON PALACIO, RUBEN PATTERSON, EDDIE ROBINSON, SEBASTIAN TELFAIR, CHARLES WATSON JR., and ANTHONY WROTEN were charged in a prior Indictment and arrested, or surrendered, in October 2021.  AAMIR WAHAB and WILLIAM WASHINGTON, both medical providers who allegedly facilitated the scheme, and KEYON DOOLING, a former NBA player who allegedly engaged in the scheme and recruited other co-conspirators to join the scheme, were added as defendants to the charged health care fraud and wire fraud conspiracy.  WAHAB, WASHINGTON, and DOOLING were arrested today.  WASHINGTON will be presented in the Western District of Washington.  WAHAB will be presented in the Central District of California.  DOOLING will be presented in the District of Utah.  The case is assigned to U.S. District Judge Valerie E. Caproni.

U.S. Attorney Damian Williams said:  “Today’s unsealing of additional charges in this case shows my office will investigate, and where appropriate charge, individuals involved in fraud schemes including medical providers who abuse their positions to defraud others.  I thank our law enforcement partners in the FBI for their hard work uncovering more details of the defendants’ alleged pervasive scheme to attempt to defraud the NBA Health and Welfare Benefit Plan out of at least approximately $5,000,000.”

FBI Assistant Director-in-Charge Michael J. Driscoll said:  “Today we’re charging additional defendants in this health care fraud scheme who attempted to defraud the National Basketball Association’s Health and Welfare Benefit Plan of at least approximately $5,000,000. Health care fraud causes serious problems for both the industry and consumers alike, and results in losses of tens of billions of dollars a year to fraud. Thanks to the work of our dedicated FBI agents and partners who continue to work tirelessly on this case.”

As alleged in the Superseding Indictment unsealed today[1]:

The National Basketball Association Players’ Health and Welfare Benefit Plan (the “Plan”) is a health care plan providing benefits to eligible active and former players of the NBA.  From at least in or about 2017, up to and including at least in or about 2021, TERRENCE WILLIAMS, AAMIR WAHAB, WILLIAM WASHINGTON, ALAN ANDERSON, KEYON DOOLING, ANTHONY ALLEN, DESIREE ALLEN, SHANNON BROWN, WILLIAM BYNUM, RONALD GLEN DAVIS, CHRISTOPHER DOUGLAS-ROBERTS, a/k/a “Supreme Bey,” JAMARIO MOON, DARIUS MILES, MILTON PALACIO, RUBEN PATTERSON, EDDIE ROBINSON, SEBASTIAN TELFAIR, CHARLES WATSON JR., and ANTHONY WROTEN engaged in a widespread scheme to defraud the Plan by submitting and causing to be submitted fraudulent claims for reimbursement of medical and dental services that were not actually rendered.  Over the course of the scheme, the defendants submitted and caused to be submitted to the Plan false claims totaling at least approximately $5 million.

TERRENCE WILLIAMS orchestrated the scheme to defraud the Plan.  WILLIAMS recruited other Plan participants to defraud the Plan by offering to provide them with false invoices to support their fraudulent claims.  AAMIR WAHAB, a dentist in California, and WILLIAM WASHINGTON, a doctor in Washington State, provided WILLIAMS with fraudulent invoices that WILLIAMS sent to other co-conspirators.  WILLIAMS, ALAN ANDERSON, and KEYON DOOLING each recruited other Plan participants to defraud the Plan by offering to supply them with false invoices to support their false and fraudulent claims to the Plan in exchange for payments to WILLIAMS and DOOLING.  DOOLING also obtained fraudulent invoices from WAHAB, and others, which he used to submit his own fraudulent claims; based on those claims, DOOLING himself fraudulently obtained approximately $350,000 of Plan proceeds. 

As described in the Superseding Indictment, WAHAB exchanged text messages with both WILLIAMS and DOOLING about the scheme.

For example, in or about March 2019, WILLIAMS requested that WAHAB produce additional fraudulent invoices, but WAHAB was hesitant to do so because they were having trouble collecting kickbacks from co-conspirators.  WILLIAMS appeared to be upset and messaged WAHAB, in substance and in part, “YOUVE MADE THOUSANDS OF F[---]ING DOLLARS TO PRINT A INVOICE WITH A NAME AT THE TOP like you f[---]ing kidding me[?]  We not gonna act like you doing dental work.”  WILLIAMS also sent WAHAB messages containing the names, dates, and amounts to be listed on the fraudulent invoices.

In or about April 2018, WAHAB and DOOLING exchanged messages about the creation of fraudulent invoices for another former-NBA player.  On or about April 30, 2018, WAHAB and DOOLING continued their discussion:

DOOLING:     Let’s make this thing grow sir.

WAHAB:        Lol I’m down bro[.]  Get me the whole NBA [laughing emoji]

DOOLING:     Yes we will[.] 

DOOLING also messaged with another co-conspirator about transferring proceeds obtained from a transaction in the scheme.  Specifically, on or about June 28, 2019, DOOLING messaged that co-conspirator and stated, in substance and in part, “Hey bro, here’s the breakdown: 5600 for you and me. Then 10800 for the guy. I fronted him 4200$ so you can put it with my 5600= 9800 to My [bank account information]. . . .  That way everything is under 10k.”

The Plan also enabled eligible participants to use a Plan-issued debit card (the “Plan Debit Card”) to pay for eligible medical services and products at the point of service.  WILLIAM WASHINGTON charged, and caused others to charge, the Plan Debit Cards of two co-conspirators for approximately $436,126.  WILLIAMS also exchanged messages with WASHINGTON about WASHINGTON’s creation of fraudulent invoices in furtherance of the scheme.  For example: 

WILLIAMS:  You have the card reader I have the [Plan Debit C]ards. Let’s work together . . . .  Give me the bread I’ll get it to them.  You still swiping.  You getting your money back. . . . you gonna owe me.  Ok.

WASHINGTON:  We owe each other lol. . . . 

To verify that certain services were medically necessary, the Plan sometimes requires participants to submit a letter of medical necessity from a medical provider establishing that necessity of the provided services.  WILLIAMS fraudulently created, and transferred letters of medical necessity for three co-conspirators.  ANDERSON also counseled, aided, and induced at least one co-conspirator to submit a forged letter of medical necessity to the Plan.  These letters were unusual in several respects: they were not on letterhead, contained unusual formatting, had grammatical errors, and one of the letters misspelled a purported patient’s name. 

TERRENCE WILLIAMS, AAMIR WAHAB, WILLIAM WASHINGTON, ALAN ANDERSON, KEYON DOOLING, ANTHONY ALLEN, DESIREE ALLEN, SHANNON BROWN, WILLIAM BYNUM, RONALD GLEN DAVIS, CHRISTOPHER DOUGLAS-ROBERTS, a/k/a “Supreme Bey,” JAMARIO MOON, DARIUS MILES, MILTON PALACIO, RUBEN PATTERSON, EDDIE ROBINSON, SEBASTIAN TELFAIR, CHARLES WATSON JR., and ANTHONY WROTEN are each charged with one count of conspiracy to commit health care fraud and wire fraud, which carries a maximum sentence of 20 years in prison.  TERRENCE WILLIAMS is also charged with two counts of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison to run consecutively to any other sentence imposed.  ALAN ANDERSON is also charged with one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison to run consecutively to any other sentence imposed. 

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

Mr. Williams praised the outstanding investigative work of the FBI.  In addition to the New York Field Office, Mr. Williams praised the work of the Seattle, Los Angeles, and Salt Lake City field offices.

The charges contained in the Superseding Indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.

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