September 30, 2010
UNIFIED BUSINESS SUPPLY OFFICIALS INDICTED FOR CONSPIRACY TO COMMIT MAIL FRAUD AND STRUCTURING
DENVER – Three officials of Unified Business Supply (UBS), a Denver company, were indicted by a federal grand jury this week on charges of conspiracy to commit mail fraud in connection with a scheme to defraud multiple companies throughout the United States in a multi-million dollar fraudulent medical device billing scheme, the United States Attorney’s Office, the U.S. Postal Inspection Service, and the Internal Revenue Service – Criminal Investigation announced. One of the officials also faces charges of structuring financial transactions in order to avoid bank reporting requirements. All three defendants are scheduled to make their initial court appearances next week.
According to the indictment returned by the grand jury on September 27, 2010, from March 2005 and continuing until July 2009, defendants David Ferree, age 44, Claudia Luevano Rangel, age 31, and Judith Martinez, age 69, all of Denver, did knowingly conspire to execute a scheme to defraud individuals and companies to obtain their money by means of materially false pretenses in connection with the delivery of medical devices and equipment, including latex gloves. Specifically, the defendants allegedly implemented a scheme to bill companies throughout the United States for medical products never received or ordered, or to over-bill companies for product. The business generated $2.6 million in revenues by means of the false billing scheme.
“Healthcare fraud is a rampant problem,” said U.S. Attorney John Walsh. “Combating this fraud is a top priority of the Department of Justice,” said U.S. Attorney John Walsh. “In this case, companies across the country were receiving fraudulent bills in the mail. This sort of scheme deserves our particular attention, as the victims are not in a position to pursue legal actions against the perpetrators.”
“The individuals committing this crime used the Mails to send fraudulent information to further their scheme,” said U.S. Postal Inspector in Charge Thomas Noyes. “Use of the Postal Service for this purpose is a violation of federal law. Federal Agents with the Denver office of the United States Postal Inspection Service work diligently to ensure the public’s trust in the mail and will aggressively pursue anyone that uses the Postal Service in furtherance of a crime. Postal Inspectors take this very seriously and worked with our partners at the Internal Revenue Service Criminal Investigation to bring these perpetrators to justice.”
“Structuring financial transactions to avoid currency reporting requirements is a criminal violation of federal law under the Bank Secrecy Act,” said Christopher Sigerson, Special Agent in Charge for IRS Criminal Investigation. “Deliberately avoiding BSA requirements is often an indicator of other fraudulent activity.”
If convicted, David Ferree faces not more than 20 years in prison, and up to a $250,000 fine for conspiracy to commit mail fraud. He faces not more than 5 years in federal prison, and up to a $250,000 fine, for each of the 39 counts of structuring of financial transactions.
If convicted, Claudia Luevano Rangel and Judith Martinez face not more than 20 years in federal prison, and up to a $250,000 fine, for conspiracy to commit mail fraud.
This case was investigated by the U.S. Postal Inspection Service, and the Internal Revenue Service – Criminal Investigation.
The defendants are being prosecuted by Assistant U.S. Attorney Jamie Pena with Assistant U.S. Attorney Tonya Andrews assisting on the asset forfeiture.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
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