Thursday, September 20, 2007
ANOTHER NEWS FOR THE XENOPHOBICS, EXTREMISTS, RACISTS CLAIMMING THAT UNDOCUMENTED IMMIGRANTS DRAINING THE SOCIAL SERVICES AND INCURRING IN THEFT IDENTITY.
FLORIDA MAN SENTENCED TO $5.7 MILLION IN RESTITUTION AND IMPRISONMENT ON FEDERAL HEALTH CARE FRAUD AND PENSION EMBEZZLEMENT CONVICTIONS. This included the fraudulent identity "Martin Mesquite", for which Seibert used a fraudulent photo ID, a fraudulent address, and a fraudulent social security number
Des Moines, Iowa - On September 11, 2007, Floyd W. Seibert, age 61, of Oklahoma City, Oklahoma, was sentenced to 46 months imprisonment on a charge of Medicare fraud and 46 months imprisonment on a charge of embezzling from his employees pension fund, with the sentences to be served concurrently, announced United States Attorney Matthew G. Whitaker. United States District Court Judge James E. Gritzner also ordered Seibert to pay restitution in the amount of $2,438,141.00 regarding the Medicare fraud and $3,281,199.22 regarding the employee pension fund, for a total restitution amount of $5,719,340.22. Seibert is subject to forfeiture of his real and personal property in the amount of $2,700,000.00. The Judge further ordered Seibert to serve a 3 year term of supervised release following his imprisonment and to pay a $200 special assessment to the Crime Victim Fund.
The Judge ordered that during the term of supervised release following his imprisonment, Seibert is subject to credit restrictions; cannot make purchases in excess of $500.00 without approval of the U.S. Probation Office; is subject to garnishment of wages, tax refunds and any other government payments; and must maintain employment approved by the U. S. Probation Office. Seibert is released with supervision by the U. S. Probation Office pending designation by the Federal Bureau of Prisons on or about November 15, 2007, of the federal prison in which he is to serve his sentence. He must then report as directed by the United States Marshal's Service for the serving of his imprisonment.
Seibert was charged in a Superseding Indictment filed in Des Moines on January 27, 2005. On January 12, 2006, he pled guilty to one count of this indictment relating to Medicare fraud. The plea agreement provides that the loss amounts from all of the conduct charged in the indictment is taken into account for sentencing and restitution. On October 12, 2006, Seibert waived indictment and pled guilty in the Middle District of Florida to the embezzlement from his employee's pension fund. That case was subsequently transferred to the Southern District of Iowa for disposition.
Floyd Seibert owned and operated business entities in Texas, Oklahoma, Nevada, and Florida, with his main office located in Florida. Although he was involved in other businesses, Seibert's main business concerned the operation of Medicare-certified home health agencies and the selling of goods and services related thereto. Among the entities owned and controlled by Seibert were: Extended Care Services of Oklahoma (ECSO); Central Texas Extended Care Services (CTECS); Central States Pharmacy (CSP); Western Medical Supplies and Equipment (WMSE); Dixie Diamond Ranch (DDR); Rio Frio Outfitters; Health Care International of Nevada (HCI); and Health Care International Holdings, British Virgin Islands..
The United States Attorney's Office for the Southern District of Iowa became involved in the Medicare fraud case because the agency which paid Seibert's Medicare reimbursement claims, CAHABA Safeguard Administrator, was located in Des Moines, Iowa. The United States Attorney's Office for the Southern District of Iowa became involved in the pension embezzlement case because that case was transferred from the Federal Court in the Middle District of Florida, to the Southern District of Iowa. The pension fund for the employees of Seibert's various businesses was administered in Seibert's Florida office.
Seibert accomplished the Medicare fraud in a variety of ways. He concealed his relationship with his various business entities, even to the point of using one or more fictitious identities for his business dealings. This included the fraudulent identity "Martin Mesquite", for which Seibert used a fraudulent photo ID, a fraudulent address, and a fraudulent social security number.
Seibert knowingly and willfully "sold" goods and services from one of his companies to another of his companies at inflated costs, and improperly passed the inflated costs on to Medicare. Seibert also fraudulently passed on to Medicare costs from his businesses which were not related to Medicare. For example, costs associated with the operation of the Dixie Diamond Ranch were falsely shown as Medicare costs and passed on to Medicare. The Medicare fraud occurred in 1997, 1998, and 1999.
In addition to his Medicare-certified home health business, Seibert owned and operated the Dixie Diamond Ranch, a 694.84 acre property located near Bandera, Texas. The ranch housed exotic animals used for hunting purposes, along with horses and a warehouse. The warehouse was used for storage of business and financial records for Seibert's other businesses. Ranch employees were paid by the Medicare-certified home health agency in Florida. The ranch is subject to forfeiture as a result's of the government's criminal enforcement action, with the proceeds of the sale to be applied first to the restitution owed to the pension plan victims.
From approximately April of 1999, through October of 2001, Seibert served as trustee of his employees' medical plan and pension plan. During this time, he fraudulently transferred $3.85 million from the medical and pension plans to a shell corporation, Health Care International of Nevada (HCI), a Nevada corporation created by Seibert . HCI had no revenue or income of its own, being funded almost entirely by the fraudulent transfer of funds from the medical and pension plans of Seibert's employees. Almost immediately after the monies were transferred from the medical and pension plans to HCI, HCI transferred the funds, mainly in the form of loans, to other of Seibert's businesses, in particular Central Home Care Services, Inc. and related Medicare-certified home health agencies. In part to accomplish this, Seibert relied on the use of the fictitious identity, "Martin Mesquite". Seibert improperly included as expenses on his cost reports submitted to Medicare, the interest payments on the "bonds" issued in exchange for the transfer of funds from HCI to his other companies.
This case was prosecuted in the Southern District of Iowa by the United States Attorney's Office for the Southern District of Iowa. The investigation regarding Medicare fraud was investigated by the Federal Bureau of Investigation; the Department of Health and Human Services, Office of Inspector General; and CAHABA Safeguard Administrators. Prior to the transfer of its case to the Southern District of Iowa, the United States Attorney's Office for the Middle District of Florida prosecuted the case relating to the embezzlement of funds from the employees' pension plan. The investigation regarding the pension plan was conducted by the U.S. Department of Labor