COMMERCIAL LAW I

Zuber indicted on charges of defrauding Harvard Investments

PHOENIX BUSINESS JOURNAL Wednesday, October 15, 2008

A Scottsdale real estate executive was indicted Wednesday for money laundering, theft and fraud that allegedly cost his employer $11 million. Douglas Ross Zuber, 40, of Phoenix, was indicted on one count of money laundering, one count of theft and one count of fraud, according to Arizona Attorney General Terry Goddard.

The charges allege Zuber embezzled nearly $11 million from his employer, Harvard Investments, Inc. and its subsidiaries. Between 1999 an 2006, Zuber allegedly was employed as executive vice president at Harvard, a real estate acquisition and development firm. His responsibilities included managing many of the company’s real estate projects and subsidiary partnerships. During his tenure, Zuber allegedly created a scheme to fraudulently direct nearly $11 million into bank accounts he controlled. The indictment further alleges he created fictitious vendors, opened bank accounts in those vendors’ names and submitted phony invoices and tax identification information to Harvard.

Zuber’s attorney Larry Debus of Phoenix law firm Debus Kazan Westerhausen Ltd. did not immediately respond to a request for comment. Zuber is expected to surrender to authorities in Maricopa County this week. 

Question 1. 1 pts

What kind of case is this?

1-Civil

2-Criminal

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Question 2. 1 pts

What kind of court will this case be heard in?

1-Federal court

2-State court

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Question 3. 1 pts

What kind of case is this?

1-Private

2-Public

Question 4. 2 pts

Who is the plaintiff in this case? (Be specific.)

Question 5. 3pts

Should Zuber's employer also be charged with the crimes in this case?

1-Yes

2-No

Nurse accused of killing 5 in Lufkin

Victims killed with bleach were dialysis patients, authorities say

ASSOCIATED PRESS

April 1, 2009, 11:19PM

SAN ANTONIO — A Texas nurse has been charged with injecting 10 patients with bleach, killing five of them, at a dialysis center where the mystery surrounding an unusual spike in deaths last April has shadowed the clinic for the past year.

Kimberly Saenz was indicted by an Angelina County grand jury this week on one count of capital murder, which includes all five patient deaths, and five counts of aggravated assault. Prosecutors say she injected patients with bleach before the Lufkin Dialysis Center abruptly closed to investigate why so many patients were dying.

Saenz, 35, worked at the clinic for eight months before being fired April 29, a day after DaVita Inc. temporarily shut down its Lufkin clinic. Saenz was being held Wednesday at the county jail without bond. Her attorney, John Henry Tatum, hasn’t returned numerous calls seeking comment, including one Wednesday, since her initial arrest last year.

DaVita, which operates about1,300 dialysis centers nationwide, has painted Saenz as a rogue nurse and believed that she was linked to the deaths long before the indictments were handed up this week.

In a statement, DaVita said the indictments were a “painful reminder” of the deaths. “This lone individual’s alleged intentional and deceptive acts have caused incredible grief for the victims’ family members, the Lufkin community and the caring teammates who work at the Lufkin Dialysis Center,” the company said.

Saenz worked as a licensed nurse for nearly four years in Texas. After she was arrested last year, Lufkin police said two patients had witnessed Saenz draw bleach into syringes and inject them into patients. Authorities say tests showed traces of bleach on the syringes and dialysis lines.

State health records showed 19 deaths at the clinic in the five months before its brief closure, and its mortality rate was 7.1 percent higher than the state average. Inspectors found that in April alone, 34 patients were transferred out of the facility by ambulance, more than four times the previous month. 

Question 6. 1 pts

What kind of case is this?

1-Criminal

2-Civil

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Question 7. 1 pts

What kind of case is this?

1-Public

2-Private

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Question 8. 1 pts

What kind of court will this case be heard in?

1-State court

2-Federal court

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Question 9. 2 pts

As part of this indictment, the victims can ask the court to award damages for the loss of their loved ones.

1-True

2-False

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Question 10. 3 pts

What three things does the plaintiff have to prove in this case in order to win?

The Miami Examiner

April 27, 2010

Miami Man Charged With Health Care Fraud; Flees the U.S.

A local health care executive was indicted yesterday on charges of health care fraud. Ernesto Angel Montaner, formerly of Miami-Dade County, was indicted on health care fraud charges under 18 U.S. Code §1347 and §1349. Charges were also filed against Montaner’s son, Angel, and another co-conspirator, Jose Antonio Varona. All were charged with conspiracy to commit Medicare fraud.

According to the indictment Montaner and the others operated multiple physical and occupational therapy (PT/OT) clinics in Southeast Florida through Montaner Services, Inc. They are accused of making periodic cash payments to owners of assisted living facilities, home health agencies, and other medical facilities in exchange for referring patients to Montaner-owned facilities for PT/OT services. Referrals were reportedly made for hundreds of patients who did not need PT/OT treatment. Montaner reportedly paid a kickback to an undercover law enforcement officer who recorded the conversation. The indictment states that Montaner only wanted referrals for patients who were covered by Medicare.

The accused conspirators are alleged to have submitted fraudulent claims to Medicare on behalf of Montaner Services, Inc facilities for services rendered by unlicensed physical and occupational therapists. They are also accused of submitting claims to Medicare for services overseen by one doctor who was not licensed in the U.S. and another who was deceased. The indictment also states that Medicare was typically billed for at least seventeen PT/OT sessions, regardless of the number of times the Medicare beneficiary actually visited the clinics. As a result, Montaner Services, Inc. submitted an estimated $12.5 million in false claims to Medicare.

Some Montaner Services patients were actually cooperating government witnesses.

The indictment orders all of the accused to appear before U.S. District Court Judge Samuel Eckstein at 10:00 AM on Monday. The United States has filed a notice with the court stating that Montaner fled the United States in February 2009. If convicted, the defendants face a maximum prison term of 10 years under 18 U.S. Code §1347 which makes it a crime to knowingly and willfully execute a scheme to defraud any health care benefit program.

Question 11. 1 pts

What kind of case is this?

1-Civil

2-Criminal

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Question 12. 1 pts

What kind of court will this case be heard in?

1-Federal

2-State

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Question 13. 2 pts

Who is the plaintiff in this case?

Question 14. 2 pts

Could Montaner's corporation be charged with a crime in this case?

1-Yes

2-No

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Question 15. 3 pts

Describe the burden of proof for this case. In other words, how much evidence does the plaintiff have to show in order to win?

Question 16. 0 pts

I affirm that this assignment was completed on my own, without help from others, and that my submission is in compliance with the Honor Code for the IU Kelley School of Business.

1-No

2-Yes