Law Enforcement

Los Angeles – As part of a wide-ranging effort to rein-in Medi-Cal fraud, Attorney General Edmund G. Brown Jr. will today file criminal charges against two dozen in-home healthcare workers who “shamelessly bilked” the program by seeking payment for services to clients who were in fact dead, hospitalized or incarcerated.

“These individuals shamelessly bilked the Medi-Cal program by claiming payment for services never rendered,” Brown said. “In fact, their supposed clients were dead, hospitalized or incarcerated.”

Under Medi-Cal’s In-Home Supportive Services program, workers perform non-medical services for qualified Medi-Cal recipients. This includes housekeeping, grocery shopping and meal preparation. In-home healthcare workers are required to submit timesheets signed and certified by their clients to receive payment. In 2008, more than 400,000 Californians received in-home healthcare services, twice as many as in 1999. State costs for operating the program are approximately $2 billion per year.

After a 2008 audit revealed that hundreds of payment requests had been submitted for in-home services never performed, Brown’s office and the California Department of Health Care Services launched an investigation into the program, leading to the charges filed today and an ongoing investigation into physicians who facilitate this type of fraud.

Today’s charges are part of Brown’s larger effort to investigate and prosecute those who would defraud Medi-Cal, which receives approximately $20 billion in state funding every year. Over the past two years, Brown has filed legal action against 31 pharmaceutical companies, 7 medical laboratories and dozens of healthcare providers and workers, resulting in criminal charges against 204 individuals and the recovery of $225 million to the state.

Today’s Charges
The following defendants, 13 of whom have prior criminal records, will be charged with one count of grand theft and one count of presenting false Medi-Cal claims in Los Angeles County Superior Court today.

• • Larry Denman, 54, of Compton, who submitted false claims totaling $3,394 for services to his mother who, in fact, was hospitalized and later died.
• Louwanda Hurt, 40, of Los Angeles, who submitted false claims totaling $1,488 for services to her client who, in fact, had died.
• Shirley Byrd, 48, of Long Beach, who submitted false claims totaling $2,953 for services to her mother who, in fact, had died.
• Rufus Jackson, 34, of Los Angeles, who submitted false claims totaling $6,506 for services to his client who, in fact, had died.
• Christopher Thomas, 25, of Long Beach, who submitted false claims totaling $1,467 for services to her client who, in fact, had died.
• Gwendolyn Jackson, 51, of Los Angeles, who submitted false claims totaling $1,557 for services to her mother who, in fact, had died.
• Diane Trujillo, 45, of Los Angeles, who submitted false claims totaling $1,645 for services to her mother who, in fact, had died.
• Pamela Renee Nelson, 48, of Los Angeles, who submitted false claims totaling $1,935 for services to her mother who, in fact, had died.
• Nadia Hoppes, 47, of Long Beach, who submitted false claims totaling $1,634 for services to her client who, in fact, had died.
• Patches Lee Miller, 38, of Long Beach, who submitted false claims totaling $3,510 for services to her client who, in fact, had died.
• Adrianna Prude, 42, of Hawthorne, who submitted false claims totaling $4,000 for services to her client who, in fact, had died.
• Percy Sok, 25, of Long Beach, who submitted false claims totaling $1,921 for services provided to his father who, in fact, had died.
• Chris Dion Jones Sr., 42, of Lakewood, who submitted false claims totaling $4,670 for services provided to his mother who, in fact, had died.
• Brenda Denise Rochelle, 42, of Los Angeles, who submitted false claims totaling $3,386 for services to her son who, in fact, had died.
• Raymond Lee Allen, 50, of Los Angeles, who submitted false claims totaling $2,261 for services to his client who, in fact, had died.
• Melchizedek Colemen, 27, of Los Angeles, who submitted false claims totaling $4,360 for services to his client who, in fact, had died.
• Ana Bertha Pineda, 31, of Bellflower, who submitted false claims totaling $2,065 for services to her grandmother who, in fact, had died.
• Qwa'stosha Spruille, 40, of Torrance, who submitted false claims totaling $1,109 for services to her client who, in fact, had been incarcerated.
• Donna Kaye Tibbs, 52, of Los Angeles, who submitted false claims totaling $5,404 for services to her client who had been placed in a nursing home and later died.
• Roderick Edward Woods, 48, of San Pedro, who submitted false claims totaling $2,007 for services to his client who, in fact, had died.
• Gerald Robert Harris, 51, of Los Angeles, who submitted false claims totaling $6,083 for services to his mother who, in fact, had died.
• Lorraine Lee, 43, of Long Beach, who submitted false claims totaling $6,958 for care provided to her mother who, in fact, had died.
• Ernest James Rogers, Jr., 53, of Los Angeles, who submitted false claims totaling $5,010 for services to his client who, in fact, had died.
• Faith Shelmon, 57, of Los Angeles, who submitted false claims totaling $4,487 for services to her husband who, in fact, had died.

Brown also filed charges against Richard F. Villegas, 38, of Downey, who submitted false claims totaling $13,243. He forged the signature of his deceased father, who was his in-home healthcare worker. He is also facing one count of grand theft and one count of presenting false Medi-Cal claims.

Defendants will be sent a letter ordering them to surrender to the court in June. If they fail to appear, an arrest warrant will be issued. If convicted, the defendants could face one year in county jail to five years in state prison.

An example:
Larry Denman had been paid by In-Home Supportive Services to provide care for his mother, Lillie Denman. On March 4, 2007, she was admitted to St. Francis Medical Center. On March 23, she was transferred to a convalescent home and died the next day.

The investigation found that Denman billed In-Home Supportive Services for providing 385 hours of homecare to his mother while she was hospitalized and for nearly a month after her death. Denman forged his mother’s signature to obtain payment.

"The strong, appropriate actions taken in these IHSS fraud cases are a direct reflection of the team effort among DHCS and the Attorney General's Office to protect those being defrauded and prosecute the offenders to the fullest extent allowed by law,' said DHCS Director David Maxwell-Jolly.
DHCS works closely with the Attorney General's Office to prevent, detect and investigate Medi-Cal provider and beneficiary fraud.

The $40 billion Medi-Cal program receives 50 percent of its funding from the state and 50 percent from the federal government. One in 6 California residents is a Medi-Cal beneficiary.

As part of his effort to combat Medi-Cal fraud over the past few months, Brown has:

• Filed suit against seven private laboratories to recover hundreds of millions of dollars in illegal overcharges for blood tests and other laboratory procedures.

• Filed criminal charges against six individuals who paid healthy seniors to be admitted to a hospice for the terminally ill and then billed state and federal health care programs $9 million for procedures that were never performed.

• Arrested two individuals who filed false claims totaling $1.34 million to Medicare for medical services that were never performed.

To report fraud or abuse, call the Attorney General’s Office (Bureau of Medi-Cal Fraud and Elder Abuse) at (800) 722-0432.

Merced-- Attorney General Edmund G. Brown Jr. announced that agents from the Bureau of Narcotic Enforcement yesterday arrested 15 members of the “notorious and violent” Merced Gangster Crips on charges of conspiracy, drug-trafficking, and weapons sales.

“For too long, the notorious and violent Merced Gangster Crips have terrorized Merced with their extreme violence, street drugs and powerful weaponry,” Brown said. “A member of this gang brutally killed Merced police officer Stephan Gray in a spasm of violence five years ago. Today, we strike a blow against this vicious street gang and help reclaim the streets of Merced.”

In January, Brown’s office initiated a multi-agency investigation into the gang’s criminal activity. Posing as a drug dealer, an undercover officer with the San Pablo Police Department was able to gain the confidence of the gang members and was able to obtain nearly a pound of rock cocaine, over 400 ecstasy pills, half a pound of marijuana and three handguns.

The five-month investigation concluded with the Merced County grand jury returning a 31-count indictment against 15 members of the Merced Gangster Crips that charged conspiracy, sale of controlled substances -- primarily rock cocaine, ecstasy, and marijuana -- weapons sales, and criminal street gang enhancements.

During the investigation, agents seized 11 1/2 ounces of rock cocaine, seven ounces of marijuana, 448 ecstasy pills, and six loaded handguns.

Today, agents arrested;
• Randy Tyler, 23, of Merced, a suspected leader of the gang,
• Frederick Mays, 21, of Merced also a suspected leader of the gang,
• Lamont Lavell Andres, 35, of Merced;
• Michael Buddy Barret, Jr., 31, of Atwater;
• Eric Devon Beavers, 23, of Merced;
• Antoine Lee Briggs, 27, of Merced;
• Jaray Julius Jaso, 30, of Merced;
• Sudi Dumaka Johnson, 23, of Modesto;
• Jose Ascencio Magana, 24, of Merced
• Patrick McMurray, 22, of Merced
• Lutricia Marie Moore, 23, of Atwater
• Damien Ricardo Perry, 26, of Merced
• Denicio Taylor Ramos, 22, of Merced
• Mckinley Jabree Sims III, 32, of Merced
• Lester Archie Turner, 24, of Merced; and
• Alejandro Joseph Zavala, 28, of Turlock.

In April 2004, Merced Gangster Crips gang member Cuitliachuac (Toa) Rivera killed Merced Police Officer Stephan Gray during a routine traffic stop. Rivera was later convicted of the murder and received a death sentence.

“Having prosecuted the MGC gangster who murdered Merced Police Officer Stephan Gray, I know how dangerous this street gang can be. No one, not even members of law enforcement, is immune. This joint investigation has removed some very ruthless individuals from our streets,' said Merced County District Attorney Larry Morse.

Agencies involved in today’s arrests include: the Attorney General’s Office Bureau of Narcotic Enforcement Gang Suppression Enforcement Team, the Merced Police Department, Merced Multi-Agency Gang Task Force, Merced Multi-Agency Narcotics Task Force, Madera County Narcotics Enforcement Team, Madera Gang Enforcement Team, West Narcotics Enforcement Task Force, Drug Enforcement Administration, and agents from the High Intensity Drug Trafficking Area.

A copy of the indictments is attached.

“By taking steps to eliminate its so-called erotic services section, Craigslist has struck a blow against the exploitation of vulnerable teenagers.

But this action must be followed up with smart enforcement and the assurance that the site does not again become a cyber hub for teenage prostitution.”

Brown was part of a multi-state task force to ensure that Craigslist took action to stop exploitation on its site. His office will participate in monitoring Craigslist compliance with the terms announced today.

San Diego –Attorney General Edmund G. Brown Jr. and San Diego District Attorney Bonnie Dumanis have filed 347 felony charges against dozens of members and associates of a San Diego street gang for stealing more than $500,000 from the Navy Federal Credit Union, using forged checks and an Indian Casino cash machine.

After obtaining personal account information and PIN numbers from paid-off credit union members, Lincoln Park Street Gang members would deposit counterfeit checks into the cooperating credit union member’s bank accounts, and then withdraw thousands of dollars from a cash machine at the Barona Casino, east of San Diego.

The filing of these charges is the culmination of a months-long investigation by the Attorney General, San Diego District Attorney, United States Secret Service Regional Fraud Task Force, and the San Diego Police Department Gangs Unit. Charges were filed against 60 individuals.

“Street thugs, operating like white collar criminals, devised an ingenious scam to bilk the Navy Federal Credit Union out of $500,000,” Brown said. “They recruited and paid off willing credit union members and manipulated financial rules to feed their criminal enterprise.”

"The size, scope and sophistication of this operation show us that criminal street gangs in San Diego are expanding their criminal enterprise into white collar crime,' San Diego County District Attorney Bonnie M. Dumanis said. 'As gangs move from street corner drug dealing to complex fraud, it's more important than ever that law enforcement from all levels continue to work together.'

Tuesday morning in the pre-dawn hours, more than 100 law enforcement officers fanned out across San Diego to take the defendants into custody as part of a multi-agency operation called “Bank Gig.”

The operation included agents from the U.S. Secret Service, San Diego Police Department gang detectives, San Diego District Attorney Investigators, the Economic Crimes Task Force, U.S. Postal Inspection Service, Navy Criminal Investigative Service, and Navy Federal Credit Union. Additionally, the Barona Tribal Government fully cooperated with the investigation.

Charges include: conspiracy, grand theft, money laundering, recruiting to commit a felony for a gang, forgery, unlawful sale of access card information, burglary, and gang enhancements.

The defendants are scheduled to be arraigned in San Diego Superior Court Dept. 11 on May 14 at 10:30 a.m. and 2:30 p.m. (220 W. Broadway). Some of the defendants could face up to 13 years in prison if convicted of all charges.

The Scheme
In 2005, Navy Federal Credit Union noticed a significant increase in fraud reports from young members reporting that their bank information and their PINs had been stolen. Credit Union officials reported the emerging pattern to the U.S. Secret Service, which launched an investigation.

The investigation uncovered that young credit union members were approached by a street gang member or associate and asked if they would like to make easy money. The credit union members would hand over their account information and PIN numbers.

The gang members would then deposit thousands of dollars of forged and counterfeit checks into the credit union member’s account and then immediately withdraw funds through a point-of-sale machine (similar to an ATM machine, but without low withdrawal limits) at the Barona casino. The account holder would file a police report and affidavit with the credit union in the hope that they would not be held responsible for the loss on their account.

Los Angeles -- Attorney General Edmund G. Brown Jr. today obtained a court order preventing Los Angeles-based Total Call International, Inc. from charging “hidden and deceptive” fees for its pre-paid calling cards.

“Total Call International has raked in profits by advertising bargain basement prices then charging exorbitant fees when their cards were used.” Brown said. “Today’s agreement safeguards California’s consumers by forcing this company to fully disclose hidden and deceptive calling card fees.”

Total Call International advertised low per-minute base rates on its calling cards and then charged consumers steep, undisclosed add-on fees and surcharges when consumers used their cards, Brown said. This significantly reduced the amount of calling time available.

Brown and the California Public Utilities Commission launched an investigation and prepared a lawsuit contending that Total Call International violated a California law that specifically requires disclosure of pre-paid calling card fees, as well as California’s false advertising and unfair competition laws.

Brown and the utilities commission today filed a complaint and a stipulated judgment resolving the case. The stipulated judgment requires Total Call International to:

• Disclose all fees, add-ons, and surcharges in a clear and conspicuous manner and include those charges in the marketing of its per-minute rate.

• Maintain records and allow the Attorney General’s office to monitor its activities to determine if Total Call International is in compliance with the settlement and California Law.

• Pay civil penalties of $300,000.

During the course of the investigation, Total Call International agreed to stop charging a “real-time rate surcharges,” costing the company $1.5 million in profits. Total Call International did not admit any wrongdoing.

Calling cards, often sold at newsstands and grocery stores, are meant to be a convenient, affordable tool for users that make frequent international calls and may not have regular access to telephone service.

Calling card users should take the following steps to protect themselves:

1. Make sure you’re getting what you pay for- buy a card for a small denomination first to test out the service.
2. Check with family and friends to find out their experience with calling cards.
3. Ask the retailer if they stand behind the card if the telephone service is unsatisfactory. It’s important to remember that the store where the card is purchased from doesn’t control the quality of the service.
4. Remember that very low rates, particularly for international calls, may indicate poor customer service, or a sign that hidden fees and surcharges apply.
5. Always look for disclosures about surcharges, monthly fees, per-call access, in addition to advertised rate-per-minute.
6. Check the expiration date. Some cards expire after a certain amount of time.
7. Make sure the card comes in a sealed envelope or has a sticker covering the PIN. Otherwise, anyone who copies the PIN can use the phone time you’ve already paid for.

This is the second case that Brown has filed forcing the disclosure of fees. In 2007, Brown forced San Francisco-based Devine Communications, Inc. to disclose all hidden fees. Florida and New Jersey have also been actively prosecuting similar cases.

Today’s settlement, filed in San Francisco Superior Court is attached.

NEVADA COUNTY -Attorney General Edmund G. Brown Jr. announced that the man behind an “elaborate real estate scam,' Thomas Hastert, pled guilty today to 59 felony counts of embezzlement, securities fraud, and selling unregistered securities.

“For three years, Hastert pulled off an elaborate real-estate scam, squeezing millions out of investors,” Brown said. “Hastert’s days of swindling are at an end, and he will spend the next 5 years in prison.”

Brown filed criminal charges against Hastert in the Nevada County Superior Court in February 2009 for embezzlement, securities fraud, selling unregistered securities, and filing false documents.

Hastert brokered over 270 hard-money loans in Nevada, Sacramento, Sutter, Butte, Placer, and Yolo Counties between September 2004 and September 2007 for real estate development projects. Hard-money loans typically provide high returns for private investors and are secured through collateral such as real estate.

Hastert secured $20 million from several investors, using the funds to broker hard-money loans to borrowers seeking to develop homes on real estate.

In the criminal complaint, Hastert is alleged to have:

- Misled investors. Hastert told investors that borrowers had excellent credit scores and were capable of repaying the loans. This proved to be untrue. Many borrowers had poor credit scores, did not make regular payments on the loans, and held properties that were in foreclosure.

- The loans that Hastert brokered were required by law to be placed into a special trust account overseen by a third-party escrow firm to ensure the project was being built. Hastert never did. Hastert used the money to pay his office expenses and other development projects. There was no oversight.

- Hastert told investors he would personally oversee the development of the land. In one instance, he was asked by investors to drive them to a particular property that was supposedly under development. Hastert could not locate the property.

- Set up fake investors, known as 'straw men,' to keep concerned investors at bay. Hastert filed documents with a county recorder's office saying that his secretary owned a majority interest in the investment, despite the fact that she had never invested a single dollar. If a legitimate investor tried to initiate foreclosure proceedings, Hastert would contend that the supposed majority owner opposed the action.

- Embezzled fees. Hastert was entitled to collect a 3% fee on loans he brokered. However, he took all his fees up-front as if the loan were fully funded. In fact, some loans never fully funded, and others took more than a year to fully fund.

Hastert will be formally sentenced on June 25 in Nevada County Superior Court. He is expected to receive 5 years in prison.

Los Angeles -- Fifteen individuals associated with the a Los Angeles street gang known to be linked to the Mexican Mafia were charged for their roles in a narcotics distribution ring operating in and around Compton, California, announced several federal and
local officials in Los Angeles including, Thomas P. O’Brien, United States Attorney in Los Angeles; Salvador Hernandez, Assistant Director in Charge of the FBI in Los
Angeles; Leroy Baca, Sheriff of Los Angeles County; Edmund G. Brown, Jr., Attorney General for the State of California; and Timothy J. Landrum, Special Agent
in Charge for the Drug Enforcement Administration in Los Angeles.

An investigation was initiated in 2008 to address gang-related crime reported
by the Los Angeles Sheriff’s Department in the Compton area.

The investigation focused on identifying and disrupting members of a drug trafficking network
there. According to five federal indictments, two federal informations and two criminal complaints filed in U.S. District Court in Los Angeles, several associates of
the gang are charged with distribution and/or conspiracy to distribute methamphetamine, a schedule II narcotic drug controlled substance. Four people are charged with being in the United States illegally following deportation after
felony convictions.

In executing the operation early this morning, agents and police from several federal, state and local agencies executed four federal arrest warrants, five state
arrest warrants and six search warrants that resulted in the seizure of narcotics, weapons and explosives. Six individuals charged in the federal cases were already
in custody. In addition, approximately 20 parole searches and 10 probation searches were carried out which resulted in several additional arrests (not listed).

Those charged in the federal cases include:
-Oscar Ceballos, 31, of Los Angeles, (distribution of methamphetamine and
conspiracy to distribute methamphetamine).
-Noe Chairez, 28, of Los Angeles (distribution of methamphetamine).
-Denisio Delgado, 33, of Los Angeles (distribution of methamphetamine).
-Daniel Alberto Gonzalez, 30, of Los Angeles (distribution of methamphetamine).
-Jorge Torres, 20, of Los Angeles (distribution of methamphetamine).
-David Zavala, 22, of Los Angeles (distribution of methamphetamine and conspiracy
to distribute methamphetamine).
-Victor Mendoza, 36, residing in U.S. illegally (re-entering the U.S. after two
deportations, including for felony).
-Adolfo Mendoza, 34, residing in the U.S. illegally (re-entering the U.S. after two
deportations, including for felony).
-Victor Zermino, 34, residing in the U.S. illegally (re-entering the U.S. after two
deportations, including for felony)
Cesar Guevara-Ponce, 26, residing in the U.S. illegally (re-entering the U.S. after
two deportations, including for felony).

Those charged by the state of California in the methamphetamine distribution operation include:
-Ernesto Alonso Martinez, 39, of Los Angeles.
-Gerardo Chavira, 21, of Los Angeles.
-Brian Doyle, 42, of Los Angeles.
-Benjamin Rodriguez, 33, of Los Angeles.
-Francisco Rodriguez, 34, of Los Angeles.

The federal defendants arrested this morning will have an initial appearance in U.S. District Court in downtown Los Angeles today.

“It is vital for law enforcement at all levels to collectively address drug distribution networks which fuel the violence wreaking havoc in Los Angeles communities, and sustain the lifeblood of criminal enterprises like the Mexican Mafia,” said Salvador Hernandez, Assistant Director in Charge of the FBI in Los Angeles.

“By shutting down a major source of drugs and weapons, these
arrests will deal another hammer blow to the persistent violence that terrorizes Compton,” Attorney General Edmund G. Brown said.

“Today's successful operation is an example of how law
enforcement has joined forces at all levels to free our communities from the violence brought into our neighborhoods by these criminal drug organizations,' said Timothy J. Landrum, DEA Special Agent in Charge.

“ICE is committed to using every tool at its disposal to combatgang-related crime and violence here in the Southland,” said Robert Schoch, special agent in charge of the ICE Office of Investigations in Los Angeles. “Our immigration and customs authorities are proving to be powerful weapons in this effort and we
will continue working closely our law enforcement partners to attack and dismantle the gangs that have terrorized our communities.

This investigation was conducted by the FBI, the State of California’s Bureau of Narcotics Enforcement, the Los Angeles County Sheriffs Department and the U.S.
Drug Enforcement Administration, as well as several agencies working with the FBI’s
Safe Streets Task Force that provided considerable assistance during the investigation and during today’s operation, including U.S. Immigration Customs
Enforcement (ICE), U.S. Department of Alcohol Tobacco and Firearms (ATF), U.S. Bureau of Prisons, L.A. IMPACT, U.S. Department of Probation, the California
Department of Corrections and the Department of Child and Family Services of Los Angeles County.

The federal defendants listed above will be prosecuted by the United States Attorney’s Office in Los Angeles. The District Attorney in Los Angeles will prosecute
individuals charged in the state warrants.
The FBI’s Safe Streets Task Force in Los Angeles is one of dozens of such task forces throughout the United States, funded for the purpose of assisting local police in
identifying and addressing violent crime in America.

Los Angeles – Continuing his fight to combat Medicare and Medi-Cal fraud, Attorney General Edmund G. Brown Jr. last night filed criminal charges against six individuals who paid healthy seniors to be admitted to a hospice for the terminally ill and then billed state and federal health care programs for “phantom procedures” never performed.

The six defendants – including a mother and her two children – were physicians and staff at “We Care” hospice in Sherman Oaks. One defendant was arrested today. Another four will surrender to authorities later this month. One remains at large.

“We Care obviously didn’t care about doing the right thing or helping sick people,” Brown said. “The owners, physicians, and staff of We Care paid healthy seniors to be admitted to hospice and then billed Medicare and Medi-Cal for phantom procedures. In total, they bilked the public out of $9 million and used the funds to enrich themselves and pay for expensive homes and luxury cars.”

Brown’s Office and the U.S. Department of Health and Human Services launched a joint investigation in 2008 after an audit found that a suspiciously large number of patients admitted to We Care were in good health and the mortality rate was low for a hospice.

Typically, 80% of patients die during their first six months in hospice. At We Care, only 11% of the 362 Medicare beneficiaries and 4% of the 143 Medi-Cal beneficiaries died between 2004 and 2007.

The joint investigation ultimately revealed that the staff of We Care paid “cappers” a finder’s fee for identifying and enrolling relatively healthy Medicare and Medi-Cal beneficiaries into hospice care. Subsequently, the staff billed the government for procedures and services that were not performed or medically necessary – including mental health evaluations and the administration of oxygen. This amounted to $9 million in fraudulent billings.

The defendants operated the scheme between 2004 and 2007, until the hospice’s license was revoked and the facility was closed.

The following defendants were charged in Los Angeles Superior Court:

• Milagros Delmendo, 58, of Northridge, on four counts of grand theft, presenting false Medi-Cal claims, making fraudulent claims to the government, and paying unlawful remuneration. Ms. Delmendo was arrested today by Special Agents from the Attorney General’s Office and the U.S. Department of Health and Human Services and booked in the Los Angeles County Jail. Ms. Delmendo was the owner of We Care.

• Kristina Delmendo Deguzman, 31, of Northridge on three counts of grand theft, presenting false Medi-Cal claims, and making fraudulent claims to the government. She will surrender to authorities Wednesday.

• Mark Delmendo, 28, of Studio City, on three counts of grand theft, presenting false Medi-Cal claims, and making fraudulent claims to the government. A warrant has been issued for his arrest.

• Nolan Jones, M.D., 60, of Los Angeles, on three counts of grand theft, presenting false Medi-Cal claims, and making fraudulent claims to the government. He has agreed to surrender to authorities.

• Anselmo Alliegro, M.D., 78, of Dundalk, Maryland, on three counts of grand theft, presenting false Medi-Cal claims, and making fraudulent claims to the government. He will surrender to authorities later this month.

• Ramon Parayno, 46, of Studio City, on two counts of grand theft and paying unlawful remuneration. He has agreed to surrender to authorities.

Here’s how the scheme worked:

The owner of We Care, Milagros Delmendo, paid Ramon Parayno $500 for each beneficiary admitted, and an additional $500 for each month the patient remained under care. Parayno would split his fee 50/50 with the beneficiary. At one point in 2005, Parayno made in excess of $25,000 in a month.

Once enrolled, physicians Nolan Jones and Anselmo Alliegro falsely diagnosed patients as suffering from a terminal disease, such as end-stage Chronic Obstructive Pulmonary Disease (COPD).

The investigators also found that nursing staff had been directed by Ms. Delmendo and her children -- employees Mark Delmendo and Kristina Delmendo Deguzman -- to falsely note in medical charts that their patients suffered from “shortness of breath,” “generalized weakness,” or “moderate to severe pain.”

Patients with end-stage COPD are not able to walk and require oxygen. The majority of patients diagnosed with COPD at We Care, however, were observed without oxygen or the assistance of a wheelchair. Many of the primary care physicians interviewed by investigators stated that their patients were not terminally ill and should not have received hospice care.

In one case, We Care billed Medicare $39,031 for hospice care for a patient whose medical problems only included arthritis and high blood pressure.

The Delmendo family used the proceeds of the scheme to purchase expensive cars, designer clothing, and luxury homes, including one purchased in cash for $1.7 million.

If convicted on all counts, the defendants could receive up to nine years in prison. To report fraud or abuse, call the Attorney General’s Office (Bureau of Medi-Cal Fraud and Elder Abuse) at (800) 722-0432.

The complaint and affidavit are available upon request.

LOS ANGELES- Continuing his crackdown on mortgage fraud, Attorney General Edmund G. Brown Jr. late Thursday won a guilty plea from 22-year old Anna Santos, who conned thousands of dollars from homeowners in a “cruel and sophisticated” loan scam. Santos will be formally sentenced on May 20 in Los Angeles Superior Court. She is expected to receive 2 years in prison. “Santos conned thousands of dollars from homeowners trying to save their homes through a cruel and sophisticated scam,” Brown said. “She held out hope, but in reality did not provide an ounce of loan modification, leaving her victims unprotected and in far worse straits.” Santos was arrested on March 12, 2009 after she used forged documents to convince victims to hand over thousands of dollars for non-existent loan modification services. Santos obtained a fictitious business permit through the City of Los Angeles for 'Payment Processing Department.' She opened several bank accounts and two post office boxes under that name. She mailed flyers to vulnerable homeowners that appeared to be from victims' lenders or a government agency. The flyer used a large, bold header that read 'Final Notice' and advised homeowners that they qualified for a special program to save their home from foreclosure. After signing up for “loan modification services,” homeowners then received what appeared to be 'confirmation' that their lender had been notified. Many victims also received loan modification documents that appeared to be from their lender. These documents were all forgeries. The victims were informed they had been placed in a 'probationary' program and their mortgage payments should be submitted to 'Payment Processing Department' and sent to a given post office box address. None of the payments were credited to the victims' home loans. Payments sent to the post office box were retrieved by Ms. Santos and deposited into the bank accounts she had opened. Santos targeted seniors and homeowners on the verge of foreclosure. It is believed that she scammed more than 100 victims. On average, victims lost approximately $3,000, at a time when they could not afford their mortgage, let alone additional fraudulent expenses. Since taking office, Attorney General Brown has shut down loan modification and foreclosure rescue scams and fought companies that have misled vulnerable borrowers:

• In March 2009, Brown shut down Foreclosure Freedom, a fraudulent loan modification company that continued to collect fees and mortgage payments from dozens of homeowners without ever providing any loan modification services.
• In November 2008, Brown arrested three members of First Gov after the company demanded an up-front fee, ranging from $1,500 to $5,000, to participate in a loan-modification program and never renegotiated the loans.
• In October 2008, Brown announced an $8.68 billion settlement with Countrywide Home Loans after the company deceived borrowers by misrepresenting loan terms, loan payment increases, and borrowers’ ability to afford loans.
• In May 2008, Brown shut down a team of scam artists that acquired deeds to hundreds of homes in foreclosure by convincing desperate consumers to pay $10,000 to place their property in a land grant, a phony and worthless real estate document, and then tricked homeowners into signing over the deed to their home and paying the company rent.
• In March 2008, Brown shut down Lifetime Financial, Nations Mortgage, Greenleaf Lending, Virtual Escrow, Olympic Escrow and Direct Credit Solutions after the companies ran a complex predatory lending scheme using bait and switch tactics to victimize thousands of homeowners, many of whom lost their homes.

SAN DIEGO-- Attorney General Edmund G. Brown Jr. today announced that agents from the Bureau of Narcotic Enforcement today arrested five college-age individuals who conspired to fraudulently obtain thousands of “dangerous and potentially lethal” prescription drugs.

From January to March 2009, the co-conspirators illegally obtained 2,500 pills, primarily Oxycontin and Xanax, with a street value in excess of $70,000.

“These individuals used stolen physician information to obtain thousands of dollars worth of dangerous and potentially lethal prescription pills,” Attorney General Brown said. “This is one more example of how legal medications are being diverted for illicit purposes.”

In February 2009, a San Marcos pharmacist’s suspicions were aroused when a young woman attempted to fill a prescription for 120 Xanax pills. When the pharmacist contacted the doctor’s office to confirm the prescription, he was informed that it was invalid and the woman was not a patient.

The pharmacist subsequently notified the Attorney General’s office, which launched a two-month investigation that culminated in today’s arrests including:

• Sean Christiansen, 24, of Vista for violation of probation, possession of a controlled substance, sale of a controlled substance, and conspiracy;

• Christopher Zenkus, 24, of Poway on 4 counts of commercial burglary, 5 counts of false impersonation, 3 counts of prescription fraud, and 1 count of unlawful possession of a prescription blank;

• Stephen Cleeton, 20, of Poway on 6 counts of commercial burglary, 6 counts of forged narcotic prescription; and 2 counts of unlawful possession of a prescription blank;

• Courtney Morgan, 20, of San Diego on, 11 counts of commercial burglary, 7 counts of forged narcotic prescription; and 4 count of unlawful possession of a prescription blank;

• Erica Peterson, 20, of Del Mar on 4 counts of commercial burglary, 2 counts of forged narcotic prescription; and, 3 counts of unlawful possession of a prescription blank.

Fellow conspirator, Paige Billheimer, 21, of San Diego remains at large. She is expected to be charged with 6 counts of commercial burglary, 1 count of prescription fraud, and 5 counts of forged narcotic prescription.

The investigation revealed that Zenkus had stolen the Drug Enforcement Administration and medical license numbers of a San Diego physician and used this information to order five blank prescription pads that could be used to write 500 prescriptions.

Subsequently, Zenkus, Christansen, and their co-defendants filled fraudulent prescriptions at 11 different pharmacies in the San Diego area, obtaining 1,020 Oxycontin pills with a street value of $55,000; 1,390 Xanax pills with a street value of $7,000; 720 Acetaminophen and Hydrocodone pills with a street value of $5,040; 360 Percocet pills with a street value of $3,600; and 60 Adderall pills with a street value of $180.

In some cases, the defendants would go from pharmacy to pharmacy to fill prescriptions, using their parents’ health insurance to pay for the pills.

Paperwork found in Sean Christiansen’s vehicle detailed indicates that he was earning $31,000 a week through the illegal sale of prescription drugs.

According to the latest Department of Justice “Drug Trends” report, Oxycontin is among the most prevalent medicines obtained fraudulently and is one of the most abused medicines in the United States.

If convicted, defendants face up to 1-5 years in prison.

The Bureau of Narcotic Enforcement’s San Diego Regional Pharmaceutical Narcotic Enforcement Team led the two-month investigation, which also included agents from; California Department of Health Services, California Department of Insurance. The San Diego County Sheriff and San Diego County Probation Department assisted in today’s arrests.

Copies of the arrest warrants are attached.