Alaska

May 05, 2010

Bookkeeper Sentenced to Six Months Incarceration for Embezzling Money from a Health Care Benefit Program (U.S. Attorney for the District of Alaska)

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that on May 5, 2010, Cheri Ray, of Wasilla, Alaska, was sentenced in federal court in Anchorage to six months in prison for her conviction for embezzling money from a health care benefit program.        

Chief U.S. District Court Judge Ralph R. Beistline imposed the sentence on Ray, age 38.

According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, the following facts provided the basis for Ray’s guilty plea:  From March 2003, through August 2006, while employed as a bookkeeper for a doctors’ office receiving health care benefits, Ray embezzled and stole approximately $75,000.  Ray used many methods to embezzle and steal the money from Alaska Kidney Center (the Center), including, but not limited to, the following: 

• Ray obtained a credit card in her name that was billed to the Center and used the card to make personal purchases, including buying airplane tickets for her family, paying a deposit on a new truck, and purchasing personal computers for her household, among others
• Ray withdrew cash from ATMs on the office credit card
• Ray issued and negotiated duplicate paychecks to herself
• Ray paid personal bills with electronic transfers of funds from the company’s accounts
• Ray paid herself un-earned over time
• Ray made payments from the company’s accounts to her personal accounts.

Prior to imposing sentence, Judge Beistline stated that it was an abuse of trust for Ray to steal money from her employers who had trusted her to manage the office.  He also took note of Ray’s significant efforts to pay restitution prior to sentencing and ordered the remainder of restitution owed to be paid by Ray.

Ms. Loeffler commended the Anchorage Police Department Financial Crimes Unit, working with the Federal Bureau of Investigation, for the investigation that led to the successful prosecution of Ray.

January 21, 2010

Anchorage Man Sentenced to Federal Prison for Health Care Fraud Scheme (U.S. Attorney for the District of Alaska)

Anchorage, Alaska – United States Attorney Karen L. Loeffler announced that on January 21, 2010, Stephen M. Young of Anchorage, Alaska, was sentenced to serve nine months in federal prison following his convictions for health care fraud and for obtaining narcotic controlled substances by misrepresentation and forgery.

Young pled guilty in November 2009, to carrying out a lengthy fraudulent scheme to obtain prescription narcotic pain killing medication from numerous physicians, dentists, and nurse practitioners in Anchorage and Wasilla.  According to Assistant United States Attorney Joseph Bottini, as part of a plea agreement with the United States, Young admitted that on over 100 occasions from 2005 to 2009, he lied to numerous health care professionals in order to obtain the medication.  As part of the plea agreement, Young also admitted that he had fraudulently obtained at least $69,416.40 in federal employee health insurance benefits stemming from his scheme and agreed to make restitution to the United States Office of Personnel Management for the fraudulently obtained insurance benefits.

In imposing sentence on Young, Chief United States District Court Judge Ralph R. Beistline noted that there was no indication that Young was distributing any of the medication and that his fraud scheme was motivated to feed his own addiction to the narcotic painkilling medication.  Nevertheless, in sentencing Young to prison, Judge Beistline referenced the length and nature of Young's scheme, as well as the fact that Young had previously been charged and convicted of criminal offenses related to similar conduct.

The United States Drug Enforcement Administration and the United States Office of Personnel Management, Office of Inspector General conducted the investigation leading to the criminal charges in this case.

January 21, 2010

Bookkeeper Pleads Guilty to Embezzling Money from a Health Care Benefit Program (U.S. Attorney for the District of Alaska)

Anchorage, Alaska – United States Attorney Karen L. Loeffler announced that on January 21, 2010, Cheri Ray, of Wasilla, Alaska, pled guilty in federal court in Anchorage to embezzling money from a health care benefit program.

Ray, age 38, pled guilty in front of Chief United States District Court Judge Ralph R. Beistline.

According to Assistant United States Attorney Aunnie Steward, who prosecuted the case, the facts supporting Ray’s plea reveal that from March 2003, through August 2006, while employed as a bookkeeper for a company receiving health care benefits, she embezzled and stole approximately $75,000.

According to information filed with the court, Ray used many methods to embezzle and steal the money from the company including, but not limited to, the following:  Ray obtained a credit card in her own name that was billed to the company and used the card to make personal purchases, including buying airplane tickets for her family, paying a deposit on a new truck, and purchasing  personal computers for her household; she withdrew cash from ATMs on the company’s credit card; she issued and negotiated duplicate paychecks to herself; paid personal bills with electronic transfers of funds from the company’s accounts; paid herself unearned wages over time; and made payments from the company’s accounts to her personal accounts.

Judge Beistline scheduled sentencing for Ray on April 5, 2010, at 10:00 am.  The law provides for a maximum of ten years in prison, a fine of $250,000, or both.  Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the criminal history, if any, of the defendant.

The Anchorage Police Department Financial Crimes Unit, working with the Federal Bureau of Investigation, conducted the investigation that led to the prosecution of Ray.