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U.S. Charges Dozens of Russian Diplomats and Spouses With Medicaid Fraud
New York Times ^ | December 5, 2013 | BENJAMIN WEISER

Posted on 12/05/2013 2:48:58 PM PST by reaganaut1

Federal law enforcement authorities have charged nearly 50 past or present Russian diplomats and their spouses in a $1.5 million Medicaid fraud scheme, an unusual twist in what has become a familiar criminal story line in New York.

An F.B.I. investigation revealed “the systemic fraudulent submission of falsified applications for Medicaid benefits” by the diplomats and their spouses, according to a criminal complaint unsealed on Thursday in United States District Court in Manhattan.

The diplomats and their spouses obtained the benefits for pregnancies, births and first-year-of-life medical needs, generally applying at the same New York hospital, which was not identified, the complaint says.

“Diplomacy should be about extending hands, not picking pockets in the host country,” said Preet Bharara, the United States attorney for the Southern District of New York, who, along with George Venizelos, who heads the New York office of the F.B.I., detailed the charges at a news conference on Thursday.

Unlike other news briefings by Mr. Bharara, this one was not followed by the appearances in court of the defendants; because those charged are diplomats and their spouses, they have diplomatic immunity.

But Mr. Bharara noted that the State Department could seek a waiver of immunity from the Russian government to allow a prosecution to go forward.

Russian officials were not immediately available for comment.

Of the 63 births to Russian diplomats and their spouses in New York City between 2004 and 2013, 58 of those families, or 92 percent, were paid for by Medicaid benefits, the complaint says.

The complaint cites an 18-month investigation of the defendants’ Medicaid applications that revealed “general patterns of misrepresentations, which allowed them to qualify for Medicaid.”

For example, they frequently underreported their household income at an amount below the applicable Medicaid eligibility level in order to receive the benefits

(Excerpt) Read more at nytimes.com ...


TOPICS: Crime/Corruption; News/Current Events; US: New York
KEYWORDS: consulate; dc; diplomat; diplomats; embassy; medicaid; medicaidfraud; newyork; ny; russia; russiadiplomats; russian; russianconsulate; russianembassy; washingtondc
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I'm glad this is being prosecuted, but I bet this case is a drop in the bucket when it comes to Medicaid fraud.
1 posted on 12/05/2013 2:48:58 PM PST by reaganaut1
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To: reaganaut1

When you store your gold in a pile in the front yard people will walk by and steal it.


2 posted on 12/05/2013 2:56:16 PM PST by TigersEye (Stupid is a Progressive disease.)
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To: reaganaut1

I hear what you are saying, but why would these people do this? They’re not poor and don’t they get benes from Russia?

Maybe they don’t and that’s why they did it.


3 posted on 12/05/2013 2:57:47 PM PST by jocon307
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To: reaganaut1

Bump


4 posted on 12/05/2013 2:58:09 PM PST by lowbridge
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To: reaganaut1

Yep, and when nobamacare gets really rolling and 1000s of additional people are added to the Medicaid rolls it will only get worse.

Unfortunately, we have to pay for it.


5 posted on 12/05/2013 2:58:27 PM PST by upchuck (I can't stand people that don't know the difference between 'than' and 'then.' Their so stupid...)
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To: reaganaut1
Didn't Obama scream about fraud in Medicaid & it was one of the arguments for Obamacare?
6 posted on 12/05/2013 3:01:23 PM PST by SIRTRIS
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To: jocon307
I hear what you are saying, but why would these people do this? They’re not poor and don’t they get benes from Russia?

Crooks are crooks.

7 posted on 12/05/2013 3:03:43 PM PST by Steely Tom (If the Constitution can be a living document, I guess a corporation can be a person.)
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To: reaganaut1
Unlike other news briefings by Mr. Bharara, this one was not followed by the appearances in court of the defendants; because those charged are diplomats and their spouses, they have diplomatic immunity. But Mr. Bharara noted that the State Department could seek a waiver of immunity from the Russian government to allow a prosecution to go forward.

Yeah, sure, they're going to prosecute. Or even if they attempt to get a waiver, you think Russia will grant it? When h3ll freezes over.

8 posted on 12/05/2013 3:05:37 PM PST by Hoffer Rand (There ARE two Americas: "God's children" and the tax payers)
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To: All
Every Eastern European parasite living in NY City is in on these schemes----getting "freebies" while spending thousands on luxuries, posh vacations, Bentleys.... and ridicule US Citizens for our "Stupidity."

=============================================

NY POST EXCERPT---He headed a NYC tax-exempt that distributes German reparations to Holocaust survivors, now Semen Domnister was sentenced to eight years for running a $57 million fraud....Russian immigrants posed as victims of the Nazis.

Domnitser and two accomplices were convicted of conspiracy and mail fraud for swindling the tax-exempt "Conference on Jewish Material Claims Against Germany." He, Oksana Romalis and Luba Kramrish maintained their innocence in what US Attorney Preet Bharara called “unthinkable crimes.” 28 other fraudsters copped pleas.

SOURCE http://nypost.com/2013/11/04/fraudster-gets-8-years-in-57m-holocaust-scheme/

Semen Domnitser / Pic by Steven Hirsch
He's one scary SOB, aint he?

=================================================

INCONVENIENT FACTOID More crime from the parasites in "Little Odessa"--South Brooklyn connivers sucking off the backs of struggling Americans.

Russian emigrees to the US are showered w/ US freebies. Most of them headed here, fly to Israel first (posing as Jews) to suck up freebies there. Once on US soil, they claim "asylum" which generates hefty SS payments. They get job-set asides (which leaves Americans unemployed). Many get UI checks, welfare, food stamps,etc etc etc.

The Russian emigrees repay our hospitality by getting invnvolved in massive organized crime schemes---tagged by the FBI as the most vicious criminals in the US.

NOTE These are Chuck Schumer's constituents---the ones that keep him in office. Chuckie's voters spent lavishly on vacations, jewelry and electronics while they claimed poverty and stole from struggling Americans.

Schumer plans to takes over as Senate Majority Leader---that's when Chuckie will give the Russian Mob a Federal Reserve Printing Press and do away with the formalities.

NEED TO KNOW----did Chuckie use his govt office and US govt resources to setup freebies for these criminals?

9 posted on 12/05/2013 3:07:27 PM PST by Liz
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To: reaganaut1

why are foreigners getting Medicaid??


10 posted on 12/05/2013 3:11:46 PM PST by GeronL (Extra Large Cheesy Over-Stuffed Hobbit)
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To: GeronL

Russians living in and around Vancouver, WA have more fraud schemes in operation than you can imagine. I guess when you grow up in a system where you survive by cheating, your genre is cast in concrete.


11 posted on 12/05/2013 3:22:56 PM PST by entropy12 (Zero thanks to all who stayed home and helped elect Acorn lawyer Zero.)
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To: reaganaut1

They’re picking and choosing who gets paid. It’s all fraud, but who gets away with it? They’re just skimming the fraudsters at this point. Pay to play is always king. Here that NSA?


12 posted on 12/05/2013 3:32:15 PM PST by poobear (Socialism in the minds of the elites, is a con-game for the serfs, nothing more.)
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To: Hoffer Rand
Yeah, sure, they're going to prosecute. Or even if they attempt to get a waiver, you think Russia will grant it? When h3ll freezes over.

in any case, they should not be allowed to stay here, and they should never be allowed back in this country ever again!!!!!!!

13 posted on 12/05/2013 3:44:09 PM PST by latina4dubya (when i have money i buy books... if i have anything left, i buy 6-inch heels and a bottle of wine...)
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To: reaganaut1

We had a drug cartel kingpin from Tijuana bring his wife over for a high risk birth several years ago. Went through $2.5 milion + , all on the public dole.


14 posted on 12/05/2013 3:55:50 PM PST by Cyman (We have to pass it to see what's in it= definition of stool sample)
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To: jocon307
I hear what you are saying, but why would these people do this? They’re not poor and don’t they get benes from Russia?

Do not for one minute believe that it was only $1.5 million between the 50.......or even just 50.

15 posted on 12/05/2013 3:59:13 PM PST by Roccus
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To: reaganaut1
JUST CALM IT ALL DOWN LADIES AND GENTS ...THESE PEOPLE DESERVE THEIR DREAM ACT JUST LIKE ANY OTHER GROUP OF FOREIGN DREAMERS WHO GET SUBSIDIZED UP THE YING YANG...

WHY HELL, LAST TIME I LOOKED THE ROOSKIES HELPED US WIN WW2 SO I SAY ..THE LEAST WE CAN DO.... IS GIVE EM SOME MEASLY FOOD STAMPS AND FREE CHOW AND EBT AND SNAP BENNIES...OH AND LETS TRO IN SOME COLLEGDE EDJUKASHUNS FOR THEIR LITTLE ONES TOO. WHAT? WE SHOULD BE ACCUSED OF PREJUDICED WHEN BORIS AND NATACHA SEE WHAT THE S. AMERICANS R GETTIN FROM US ... FAIR IS FAIR ....AND IF WE RUN OUT OF MONEY DOIN ALL THIS PROVIDIN AND SUCH.... AT LEAST WE CAN SAY WE DID OUR BEST TO MAKE MOOCHIN CROOKS HAPPY AND COMFORTABLE W/IN THE BORDERS OF OUR LAND...AND AFTER ALL ISN'T THAT WHAT REALLY COUNTS..? '


16 posted on 12/05/2013 4:24:33 PM PST by jimsin
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To: All

NOTE The following text is a quote:

www.fbi.gov/newyork/press-releases/2013/remarks-as-prepared-for-adic-george-venizelos-on-charges-against-49-russian-diplomats-and-their-spouses

Remarks as Prepared for ADIC George Venizelos on Charges Against 49 Russian Diplomats and Their Spouses

FBI New York
December 05, 2013

Office of Public Affairs

The following remarks were prepared for delivery by FBI New York Assistant Director in Charge George Venizelos in connection with charges filed against 49 Russian diplomats and their spouses.

Good afternoon. Today, we rely on our partnership with the United States Attorney’s Office for the Southern District of New York to bring to justice those who knowingly conspire to commit health care fraud, steal government funds, and make false statements relating to health care.

For the past year-and-a-half, the FBI investigation has revealed the systematic, fraudulent submission of falsified applications for Medicaid benefits by 49 current and former Russian diplomats and their spouses between 2004 and 2013. These included claims associated with medical costs for pregnancy, child birth, and doctor visits for the young children of Russian diplomats and their spouses. As a result of their falsified applications, the defendants obtained Medicaid benefits they were not entitled to.

Diplomats who serve in the United States are representatives of their respective nations. Our relationship with foreign diplomats and diplomatic establishments is essential for cooperation on many issues. We value that daily cooperation with our foreign partners.

Some Russian officials based in New York allowed their employees to defraud the American taxpayer and take advantage of a health care program not designed for them. Each diplomat listed in the complaint submitted an employer verification form from the Russian government misstating their income in an effort to qualify for benefits. The New York State Medicaid program has paid approximately 1.5 million dollars on fraudulent claims submitted by these defendants and dozens of co-conspirators not named as defendants.

Our investigation revealed that the defendants spent tens of thousands of dollars on luxury watches, jewelry, electronics, and vacations. The amount of money spent on these luxury items was inconsistent with the grossly underreported incomes claimed by the defendants on their Medicaid applications. The defendants earned considerably more than they led the Medicaid system to believe.

We all feel the impact of health care fraud, which leads to higher health care costs and makes it more difficult for those who truly need assistance to obtain coverage. The defendants selfishly took advantage of an American health care system designed to help those less fortunate. The unsealing of the complaint today highlights the criminal activities of these defendants and reminds the public that health care fraud remains an ongoing problem in our country. The FBI and our law enforcement partners are committed to preventing and prosecuting health care fraud at all levels.

I would like to thank United States Attorney Preet Bharara and the dedicated prosecutors at the United States Attorney’s Office for the Southern District of New York for their joint efforts in this investigation and prosecution. I would also like to acknowledge the efforts of our New York Counterintelligence Division and the commitment of the FBI Counterintelligence case agents who worked tirelessly to bring this case to fruition. Thank you.

- U.S. Attorney’s Office, Southern District of New York press release regarding health care fraud charges filed against Russian diplomats and their spouses


17 posted on 12/06/2013 4:05:50 AM PST by Cindy
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To: All

NOTE The following text is a quote:

www.fbi.gov/newyork/press-releases/2013/manhattan-u.s.-attorney-and-fbi-assistant-director-in-charge-announce-health-care-fraud-charges-against-current-and-former-russian-diplomats-and-their-spouses

Manhattan U.S. Attorney and FBI Assistant Director in Charge Announce Health Care Fraud Charges Against Current and Former Russian Diplomats and Their Spouses

U.S. Attorney’s Office
December 05, 2013

Southern District of New York

FBI Public Information Office

Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI), today announced charges against 49 defendants for participating in a widespread fraud scheme from 2004 to August 2013 to illegally obtain nearly half-a-million dollars in Medicaid benefits. Each of the defendants charged in the complaint unsealed today is a current or former Russian diplomat or the spouse of a diplomat employed at either the Russian Mission to the United Nations (the Mission), the Russian Federation Consulate General in New York (the Consulate), or the Trade Representation of the Russian Federation in the USA, New York Office (the Trade Representatio”). The complaint alleges that each of the defendants and their unnamed co-conspirators participated in a widespread scheme to illegally obtain Medicaid benefits for prenatal care and related costs by, among other things, falsely underreporting their income or falsely claiming that their child was a citizen of the United States.

Manhattan U.S. Attorney Preet Bharara said, “Diplomacy should be about extending hands, not picking pockets in the host country. Here, as alleged, a multitude of Russian diplomats and their spouses ran a scam on a health care system designed to help Americans in need. As the complaint alleges, the scam exploited a weakness in the Medicaid system, and the charges expose shameful and systemic corruption among Russian diplomats in New York.”

FBI Assistant Director in Charge George Venizelos said, “The United States government values its long-standing relationship with foreign diplomats and diplomatic establishments for cooperation on many issues. Unfortunately, as detailed in the complaint, some Russian officials in New York allowed these defendants to take advantage of that relationship.

“Motivated by greed and the purchase of high-end luxury items, these defendants allegedly perpetrated a fraud to illegally obtain Medicaid benefits to which they were not entitled. The unsealing of the complaint today highlights the criminal activities of these defendants and reminds the public that health care fraud remains an ongoing problem in our country. The FBI and our law enforcement partners, including the New York City Human Resources Administration and the New York State Department of Health, are committed to preventing and prosecuting health care fraud at all levels.”

According to the allegations in the complaint unsealed today in Manhattan federal court:

Medicaid is a largely federally funded program in the United States designed to assist low-income families afford health care. In New York State, the Department of Health administers the Medicaid program, and the New York City Human Resources Administration oversees the program and processes applications in New York City. In New York State, pregnant women can receive immediate prenatal care following a preliminary assessment of the pregnant woman’s and, if applicable, her spouse’s, income. If the pregnant woman provides an income level that is higher than the Medicaid eligibility threshold, the provider will generally not process the Medicaid application. Proof of United States citizenship is not required for a pregnant woman to receive Medicaid benefits because the unborn child is presumed to acquire United States citizenship by virtue of being born in the United States. Once completed, the pregnant woman is entitled to Medicaid benefits pursuant to the original application until the 60th post-partum day, and the newborn child is entitled to benefits on the mother’s initial application until the child’s first birthday. Diplomats, their spouses, and their children are generally not entitled to Medicaid benefits except in cases of emergency.

While in the United States, the individuals employed by the Mission, Consulate, and Trade Representation are paid a salary by the Russian government, which is not subject to United States federal, state, or local taxes. Employees of the Mission and Consulate generally live in housing, the vast majority of which is paid for by the Russian government. The Mission and Consulate historically have also paid for the medical expenses of their employees, including hospital and doctor bills, as well as dental expenses. Each of the defendants named in the Complaint is a Russian diplomat who works or worked at the Mission, Consulate, or Trade Representation, or was married to such an individual. As a result of an international convention among multiple nations and a bilateral agreement between the United States and Russia, children born in the United States to Russian diplomats generally do not acquire United States citizenship.

The investigation revealed the widespread submission of falsified applications for Medicaid benefits associated with medical costs for prenatal care, birth, and young children by the defendants, which enabled the defendants to obtain Medicaid benefits that they were not otherwise entitled to receive. Approximately $1,500,000 in fraudulently received benefits were obtained by the defendants and dozens of other co-conspirators not named in the complaint. In general, the defendants underreported their income to an amount below or at the applicable Medicaid eligibility level in order to qualify for Medicaid benefits. In support of the underreported income, the defendants generally submitted letters signed by employees of the Mission, Consulate, or Trade Representation, purporting to corroborate that the falsely underreported income was the true income amount. The defendants’ true income was often hundreds, if not thousands, of dollars more per month than what was falsely reported to Medicaid. Moreover, before, during, and after the time that the defendants received Medicaid benefits, several of the defendants opened credit card accounts in which they reflected salaries thousands of dollars higher than they reported to Medicaid.

In addition, one set of defendants failed to disclose their marriage on their initial Medicaid application—falsely claiming that they were brother and sister instead of husband and wife. As a result, those defendants failed to disclose any income the husband earned from the Mission. Because of their lies, they received almost $21,000 in Medicaid income to which they were not entitled. Three other defendants falsely claimed that their children—Russian nationals residing in the United States pursuant to visas issued by the Department of State reflecting their Russian citizenship—were citizens of the United States in order to obtain Medicaid benefits for their children. To support these lies, a United States Social Security card was provided for one application, and both a United States Social Security Card and a birth certificate issued by the New York City Department of Mental Health and Hygiene was provided in support of another application.

Moreover, before, during, and after the time that the defendants applied for and received hundreds of thousands of dollars in Medicaid benefits, they spent tens of thousands of dollars on luxury items, including cruise vacations and purchases such as watches, shoes, and jewelry, at stores such as Tiffany & Co., Jimmy Choo, Prada, Bloomingdale’s, and Burberry.

For example, Timor Salomatin, a former diplomat at the Mission, and his wife, Nailya Babaeva, applied for Medicaid pregnancy benefits in November 2010 and represented Salomatin’s salary to be $3,000 a month and submitted a renewal application in June 2011 in which they claimed that Salomatin made $4,400 a month. In support of both applications, they submitted a letter signed by Mikhail Korneev, formerly a counselor at the Mission, in which Korneev falsely confirmed the underreported income amount. However, beginning in June 2011, Salomatin began to receive direct payroll deposits from the Russian government into his bank account. Between June 2011 and December 2011, Salomatin received an average of $5,160 a month—over $2,000 more than he reported to Medicaid on the initial application. In February 2011, shortly after Salomatin and Babeva applied for Medicaid benefits, and shortly before they applied for renewal benefits, Salomatin applied for a credit card and represented his salary to be $8,333 a month. In December 2011, while Babeva’s and Salomatin’s children continued to receive Medicaid benefits, Salomatin represented his salary to be $60,000 a year, or $5,000 a month. During the period between February 2012 and December 2012, while their children continued to receive Medicaid benefits, Salomatin and Babeva made and paid for over $50,000 in purchases, including over $8,400 from Apple and over $10,000 from retailers, including, among others, Prada and Bloomingdale’s. Babaeva and her children obtained almost $31,000 in Medicaid benefits to which they were not entitled.

Andrey Artasov and Nataliya Artasova falsely represented to Medicaid that Artasov made only $2,900 a month (or approximately $34,800 a year) in salary in November 2008. In March 2007—over a year-and-a-half prior to Artasova applying for Medicaid, Artasov reported to a credit card company that he made $60,000 a year in salary. In 2008, the year that Artasova received Medicaid benefits, Artasov and Artasova made and paid for over $48,000 in purchases on this credit card, spending thousands of dollars at Swarovski and Apple, among other things.

* * *

Each of the defendants was charged with one count of conspiracy to commit health care fraud and one count of conspiracy to steal government funds and make false statements relating to health care matters, which carry maximum sentences of ten years and five years in prison, respectively.

Of the 49 defendants, 11 are currently in the United States. Five of those individuals are diplomats working at the Mission. Five of those individuals are the spouses of the diplomats. One is currently employed at the Russian Federation’s embassy in Washington, D.C., but at the time of the charged offenses was employed at the Consulate. The remaining 38 no longer reside in the United States.

Manhattan U.S. Attorney Bharara praised the investigative work of the FBI and thanked the New York City Human Resources Administration and the New York State Department of Health for their assistance in this investigation.

The Office’s Public Corruption and Terrorism and International Narcotics Units are handling the case. Assistant U.S. Attorneys Rebecca Ricigliano, Shane Stansbury, and Ian McGinley are in charge of the prosecution.

The charges contained in the complaint are merely an accusation, and the defendants are presumed innocent unless and until proven guilty.

- Press conference remarks prepared for FBI New York ADIC George Venizelos


18 posted on 12/06/2013 4:08:03 AM PST by Cindy
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To: upchuck

no more so than people who use “their” when they mean “they’re.”


19 posted on 12/09/2013 9:28:04 PM PST by llyrra
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To: Hoffer Rand

They should just give them “persona non grata” status. I believe that’s the diplomatic term. Back to Mother Russia with tail between legs, not welcome here anymore.


20 posted on 12/09/2013 9:30:09 PM PST by llyrra
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