Possible plea deal in the works for Delray Beach sober home operator Eric Snyder

A preliminary hearing in federal court  for  Eric Snyder, owner and operator of a Delray Beach drug treatment center and sober home raided by the FBI in December 2014, has been delayed for 30 days to give attorneys time to “consider whether or not a pre-indictment resolution” can be worked out.

Snyder was arrested on July 11 and charged with fraudulently billing insurance companies for $58.2 million over nearly five years, according to court records.

Snyder, 30, and Christopher Fuller, 32, described in a 26-page federal complaint as a “junkie hunter” hired by Snyder, were charged with conspiracy to commit health care fraud. The document described how Snyder bribed patients with airline tickets, cash, rent and visits to strip clubs. Fuller trolled AA meetings and “crack” motels to find patients, the complaint said.

The court hearing was reschedule to Oct. 16.

Musclebound millionaire: The Palm Beach Post’s story on Eric Snyder

Snyder Snyder is one of the many drug treatment operators exposed in a 2-1/2 year-long Palm Beach Post investigation that revealed the profits to be made from urine-screening in the county’s thriving but corrupt sober home industry.

Snyder’s treatment center, Real Life Recovery, and sober home, Halfway There, raked in more than $18 million from the $58.2 million in fraudulent claims to insurance companies, including Blue Cross/Blue Shield, United Healthcare, Aetna, Cigna and Humana for urine drug tests and “bogus” treatment, according to court documents.

The profits have attracted the attention of the Internal Revenue Service. In March, the IRS filed a lien, saying Snyder owed $2 million in back income taxes.

Shortly after his arrest, Snyder’s attorney, Bruce Zimet, said Snyder did not “intentionally” participate in fraud.

“Eric has personally been involved in saving many, many lives and making a difference in many other lives of those suffering from addiction,” Zimet said.

 

 

Doctor in Kenny Chatman case pleads guilty to health care fraud

Dr. Joaquin Mendez, a former medical director for Kenny Chatman’s notorious Reflections Treatment Center, pleaded guilty to conspiracy to commit health care fraud today.

He faces up to 10 years in federal prison.

Kenneth Chatman walks into Reflections, his treatment center in Margate, in 2015.

Mendez was the last holdout among eight people arrested in a fraudulent multi-million dollar drug treatment operation run by Chatman.

He admitted today to being essentially a doctor in name only for Reflections between September 2014 and September 2015. Although Mendez was supposed to be seeing patients and dictating their medical care, Chatman was the one deciding when people would get tested.

RELATED: ‘Kenny Chatman kidnapped me:’ Read one woman’s human trafficking story

Mendez would sign doctor’s orders without ever seeing the patients. He also signed off on hundreds of “certificates of medical necessity” for urine and saliva tests after the testing had already been done – and in some cases, the patients had already been discharged from Reflections.

If he had been closely following the drug test results, he would have noticed that up to 90% of the people in Chatman’s care were actively using drugs.

His actions helped turn Reflections, in Margate, and Chatman’s chain of sober homes into a multi-million dollar operation, despite Chatman having no experience in health care when he founded the facility in 2013.

Chatman’s crimes went far beyond health care fraud, however. His sober homes throughout Palm Beach County were houses of horror, where drug use was rampant and where some female patients were kept chained up so he could prostitute them. At least four people died of overdoses while in his care.

Chatman was sentenced to 27 1/2 years in prison in May. All of the other defendants also took plea deals, including another doctor and Chatman’s wife.

Mendez had held out because his attorneys, Richard Lubin and Anthony Vitale, wanted more time to review the mountain of evidence in the case, which included 326 gigabytes of digital records and 225 boxes of paper records.

Lubin said today that after reviewing the evidence, Mendez chose to plead guilty.

Mendez is scheduled to be sentenced Sept. 27.

Doctor charged in Kenny Chatman case caught prescribing opioids

Kenneth Chatman walks into Reflections, his treatment center in Margate, in 2015.

Federal prosecutors are trying to get a doctor who worked for notorious treatment center operator Kenny Chatman back behind bars after they say he was caught prescribing the opioids Oxycontin and fentanyl to Medicare patients.

Dr. Joaquin Mendez, facing charges of conspiracy to commit money laundering and health care fraud in January, was out on $100,000 bond. As part of the conditions of his release, he was not allowed use his Medicare number to “provide any services,” according to a court filing on Friday. His Medicare number was also revoked after he was released.

But federal prosecutors say that between February and May, Mendez treated at least 188 Medicare patients, and he wrote more than 100 prescriptions for controlled substances that included oxycodone, Oxycontin, clonazepam and fentanyl.

‘Kenny Chatman kidnapped me’: Read one woman’s human trafficking story

Prosecutors wrote that agents learned Mendez was dropping in on assisted living facilities and asking if anybody wanted to see a doctor. He would then either write the patient a prescription or refer them to a home health agency.

A judge will decide whether he will be arrested again.

HEROIN: Killer of a generation

Mendez is the only co-defendant who has not taken a plea deal in the massive fraud case against Kenny Chatman and his treatment centers, Reflections, in Broward County, and Journey to Recovery, in Lake Worth.

Read The Post’s first story on Chatman: Police reports link sober home operator to prostitution

In addition to fraud charges, Chatman admitted to turning some of his female patients into prostitutes at his Palm Beach County sober homes. Last month, he was sentenced to 27 years in prison and forced to register as a sex offender. His lawyers said he will appeal the sentence.

Prosecutors say Mendez ordered unnecessary urine drug tests for patients at Reflections and Chatman’s other treatment center, Journey to Recovery, in Lake Worth.

Mendez would be the second doctor in the case to get caught violating the conditions of his release. Dr. Donald Willems went back to jail after police discovered he was working in a drug treatment center and prescribing drugs he was not authorized to prescribe.

Willems, who pleaded guilty to conspiracy to commit health care fraud, will be sentenced today in Miami. He faces up to 10 years in prison.

We first exposed Kenny Chatman. He tried to sue us for it.

When The Palm Beach Post first wrote about corrupt drug treatment center owner Kenny Chatman – a year before his arrest – the story exposed Chatman as a liar, fraud and potential sex trafficker.

Apparently, Chatman didn’t like it.

Kenneth Chatman walks into Reflections, his treatment center in Margate, in 2015.

Court files show that he had lawyer Jeffrey Cohen, of the Florida Healthcare Law Firm, run up $5,000 in billings investigating whether to sue The Palm Beach Post for defamation.

Cohen had a fellow lawyer pull the police records The Post cited in its story. He also called four different South Florida lawyers who specialize in defamation cases to try to get them on board.

“Teleconference with Benny Lebdecker (sic) re meeting to discuss possible lawsuit against Palm Beach Post,” reads one entry in Cohen’s list of billable hours.

“Discussions with Attorney Bruce Rogow re Palm Beach Post article and retention of his services,” reads another.

Chatman and his treatment center’s medical director, Barry Gregory, teleconferenced with Cohen multiple times between December 2015, when The Post’s article ran, and January 2016, the records show.

Ultimately, Chatman never pursued a lawsuit against The Post, and in December, he was arrested by the FBI. He pleaded guilty to conspiracies to commit sex trafficking, money laundering and health care fraud, and last week was given a 27-year sentence in federal prison.

RELATED: ‘Kenny Chatman kidnapped me:’ Read one woman’s human trafficking story

Gregory pleaded guilty to conspiracy to commit mail fraud and false statements regarding health care matters, and he was sentenced to five years in prison.

Normally, such billable hours are rarely made public, especially if a case doesn’t go to trial. So how did The Post find out about it?

Chatman racked up more than $5,000 in legal fees with Cohen – a relative pittance considering Chatman built his fraudulent treatment centers into multimillion-dollar operations.

But Chatman never paid the bills, and last year, Cohen sued him over it. The billable hours were included in the lawsuit. Chatman quickly paid up. (Read the bills here.)

When asked about it in March, after Chatman pleaded guilty, Cohen said he couldn’t talk about it, since Chatman was a former client.

Cohen has taken a contrarian view on some of the issues surrounding the addiction treatment industry. He’s been one of the few people to publicly criticize the efforts of the Palm Beach County Sober Home Task Force, which has arrested more than a dozen people in the industry for fraud and recommended widespread legislative reforms.

“They’re trying to kill cockroaches with shotguns,” he told The Post in March. “The way in which they’re going about it, sometimes, is eyebrow-raising.”

(He’s also been critical of The Post’s extensive coverage of South Florida’s drug treatment industry, calling it “a story in search of a villain.”)

Whether or not a lawsuit against The Post would have been successful is obviously unknown. But the Chatman story, like all the big stories by the paper’s investigative team, are thoroughly reviewed for potential libel issues by The Post’s lawyers.

Adviser for notorious treatment center sentenced to nearly 5 years in prison

A former clinical director at the notorious drug rehab center run by Kenneth “Kenny” Chatman was sentenced to four years and nine months in federal prison today.

Barry Gregory was responsible for overseeing patients’ treatment plans at Chatman’s Reflections Treatment Center. But he largely turned a blind eye to problems there; he admitted in February to signing orders for patients to take urine and saliva tests that weren’t necessary, and he ordered DNA and allergy tests regardless of whether patients complained of allergies.

Dr. Barry Gregory, former clinical director for Reflections Treatment Center

He also said that as many as 90 percent of Reflections’ patients were actively using drugs.

Gregory pleaded guilty to conspiracy to commit health care fraud and knowingly falsifying a matter involving health care programs.

He joins six other people, including Chatman’s wife, who have pleaded guilty to various federal crimes related to Chatman’s drug treatment centers.

Chatman, first exposed in a 2015 Palm Beach Post story, created Reflections in a central Broward County strip mall in 2013. In Palm Beach County, he ran a series of sober homes that were notorious drug dens. He admitted last month to turning some of his female patients into prostitutes, pimping them out on websites like Craigslist and Backpage.

Chatman built Reflections into a multi-million dollar treatment center, and Gregory, a licensed mental health counselor, was instrumental in making that happen.

Chatman hired him in July 2015 to a position where Gregory would oversee addicts’ treatment and counseling. But Chatman was the one who dictated which patients were admitted and how they were treated, Gregory admitted.

When he was hired, Reflections was still on probation with the Department of Children and Family Services. Gregory was the one who filled out the forms to get Reflections fully licensed. To do so, he helped hide the business under Chatman’s wife’s name; because Chatman was a felon, he couldn’t legally own or operate a treatment center.

When Chatman wanted to open up a second treatment center, Journey to Recovery, in Lake Worth, Gregory again helped him fill out the forms, knowing that Chatman, and not Laura, was the real owner of the business.

Federal prosecutors said Gregory has shown remorse for his actions.

“While the defendant has not yet completed his cooperation, he has fully accepted responsibility, recognized his wrongdoing and shown true remorse, and assisted significantly in the investigation,” federal prosecutors wrote in a recent filing.

Chatman and his wife are scheduled to be sentenced May 17. He faces up to life behind bars. His wife, Laura, faces up to 10 years in prison.

 

Kenny Chatman allies sentenced to prison

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Kenny Chatman walks to his Reflections Treatment Center in Margate in December 2015. (Richard Graulich / The Palm Beach Post)

More co-defendants of recovery industry pariah Kenny Chatman were sentenced to federal prison on Monday, but Chatman’s lawyer said he’ll need another month to figure out how to defend his client in sentencing.

On Monday, three of Chatman’s team were sentenced to a combined 12-1/2 years in federal prison. They pled guilty in a case in which Chatman is charged with supplying drugs to patients in his treatment program and sober homes and turning some into prostitutes.

Fransesia “Francine” Davis, who acted as a house mother at Chatman’s sober homes, was sentenced to 7 years in federal prison. Michael Bonds, who sent his own patients to Chatman’s corrupt treatment centers in exchange for payments, was given 4.75 years in prison. Stefan Gatt, who processed fraudulent urine samples from Chatman’s patients, was given an 18-month sentence.

Chatman has pleaded guilty in the case, but may not be sentenced until mid-June. His attorney, Saam Zangeneh, said he needs more time to read a sentencing of 300 paragraphs that includes “a slew of (sentencing) enhancements that are outside the scope of the plea agreement,” Zangeneh wrote Monday.

Kenny Chatman faces life in prison. His wife, Laura, faces 10 years in prison.

In a request for a lighter sentence, Bonds said he’d helped lead investigators to several arrests in his federal case and nine people in state court cases. His lawyer said  he expected federal prosecutors agree to a lighter sentence. Instead, they filed paperwork last week calling for a full sentence of 4.75 years in prison – not far above the 48 months he got.

Bonds and Gatt were also sentenced to three years’ probation and Davis to one year probation. Each must also pay an undetermined amount of restitution, federal records show. All three pleaded guilty to a charge of conspiracy to commit health care fraud, while Davis also faced a charge of using a house to distribute drugs.

Owner of notorious drug treatment center pleads guilty today

Drug treatment center owner Kenneth “Kenny” Chatman pleaded guilty Wednesday to conspiracy to commit health care fraud, money laundering and conspiracy to recruit persons into sexual acts, a charge that could send him to prison for life.

His wife, Laura Chatman, pleaded guilty to two counts of falsifying and covering up the ownership of the treatment centers. She applied for state licensure for the facilities even though her husband, a felon, was the one owning and operating them. She faces up to 10 years in prison.

Their sentencing will be May 17 at 10 a.m.

Kenneth Chatman walks into Reflections, his treatment center in Margate in December, 2015.

Chatman had been charged with conspiracy to commit sex trafficking, money laundering and conspiracy to commit health care fraud. His wife had been charged with conspiracy to commit health care fraud and multiple counts of money laundering.

Chatman owned Reflections Treatment Center in central Broward County and operated sober homes throughout Palm Beach County. The places were notorious drug dens, with up to 90 percent of patients – who were supposed to be getting sober – doing drugs.

Chatman’s ties to prostitution were first exposed by The Palm Beach Post in December, 2015. Nearly a year later, federal authorities arrested him.

This is a developing story. Check back for updates.

State ethics board clears Palm Beach County Sheriff, two others

The Florida Commission on Ethics cleared Palm Beach County Sheriff Ric Bradshaw and his chief deputy on allegations he misused his position to investigate another candidate for sheriff.

The complaint was filed by former deputy Mark Dougan, a frequent thorn in Bradshaw’s side. He said he filed it about a year ago, before the FBI raided his home, prompting him to flee to Russia.

 

Palm Beach County Sheriff Ric Bradshaw speaks during a news conference on Monday, April 14, 2016. During the event, Florida Governor Rick Scott signed a ceremonial bill on a piece of victims’ rights legislation at the Palm Beach County Sheriff’s Office in West Palm Beach. (Joseph Forzano / The Palm Beach Post)

“For them to find no probable cause, when they’re on audio admitting to what they’re doing, the system is broken,” he said. “That’s all there is to it. They won’t hold anyone accountable.”

He said he gave the commission audio recordings of one of PBSO’s investigators, Mark Lewis, talking about going after the sheriff’s enemies.

One of them was Jim Donahue, who was investigated after speaking out about PBSO’s budget.

PBSO records show that in 2010, the department opened an investigation into Donahue, a week after he went before county commissioners with complaints about the department’s budget. He filed to run for office, but never appeared on the ballot. He was charged with four felonies stemming from discrepancies on his 2008 application to work at PBSO. Prosecutors dropped the charges.

Lewis was cleared by the ethics commission. The ethics commission also found no probable cause that Bradshaw “disclosed inside information for his personal benefit or for the benefit of another.”

The commission also found no probable cause that Bradshaw’s number two, Chief Deputy Michael Gauger, “misused his position to direct an investigation of a candidate or expected candidate for Sheriff and to recommend the filing of criminal charges against him.”

The board, which rules on ethics issues involving politicians and state employees, also found no probable cause that Gauger investigated others in Palm Beach County.

Bradshaw told The Palm Beach Post in early February that the ethics commission had already found no probable cause against him.

“I was told through my lawyers no probable cause,” Bradshaw said. He described the investigation of Donahue as legitimate.

“He wrote a 50 page letter about how corrupt we were,” Bradshaw said. “The more we looked at it the more we saw he had put inaccurate information.”

This is a developing story. Check back for updates.

West Palm Beach lawyer sleuths out how the rich offshore wealth

UPDATE 3:10 p.m. When Sarah Pursglove of Boca Raton realized her husband was leaving her, she turned to a West Palm Beach law firm to track down his enormous wealth, according to a story this week in The New York Times.

What the law firm of Jeffrey D. Fisher discovered was further evidence of how the wealthy offshore wealth through shell companies in foreign countries.

Not only do wives like Pursglove get the shaft, but so do U.S. taxpayers.

Fisher and his firm – Fisher Bendeck & Potter – walks the line of divorce and white-collar litigation, representing the discarded wives of rich men with complex business concerns. When it comes to ugly divorces of the rich and powerful in Palm Beach County, Fisher is often right in the middle.

“The beauty of high-end divorce law it is that it is usually handled on an expedited basis,” Fisher told the New York Times. “If you’re a person like me, who doesn’t want a five-year-long case, there’s nothing better.”

His firm’s website states “Most of Mr. Fisher’s clients remain “stealth,” but the media has covered a number of significant cases.  He represented  professional golfer Greg Norman and the wives divorcing the head of Gulf Keystone Petroleum Todd Kozel and oil tycoon William I. Koch, among many other notables.

Now The New York Times has spun an incredibly complex legal tale of his representation of Pursglove with Fisher as the star.

“When the wall of secrecy is breached, the distinction between upright global citizen and criminal can quickly grow indistinct,” according to the story.

WEST PALM BEACH; 1/27/05: During Fred Keller's murder trial Thursday, Jeffrey D. Fisher, a civil attorney, testifies about the financial and legal aspects of the divorce between Fred and Rosemarie Keller. Keller is charged with killing his wife Rosemarie and attempted murder in the shooting of her brother, Wolfgang Keil. Photo by Lannis Waters/ The Palm Beach Post ... Not for distribution outside Cox papers. OUT Palm Beach, Broward, Martin, St. Lucie, Indian River and Okeechobee Counties in Florida. Orlando OUT. No Sales. TV OUT. Tabloids OUT. Magazines OUT. Wide World OUT. Internet use OUT.
Jeffrey D. Fisher, a civil attorney, testifies about the financial and legal aspects of the divorce. (Photo: Palm Beach Post)

The target of Fisher’s exploration was a Finnish entrepreneur named Robert Oesterlund.  The businessman swore in a Canadian court that his total net worth totaled just a few million dollars despite the fact that he had two yachts, a $30 million Penthouse and homes in Canada and South Florida — a $5.7 million mansion in Boca Raton.

Oesterlund, himself, likes to jet set around the world and stay on one of his yachts in an effort to avoid paying taxes. Statements found by his accountants put Oesterlund’s worth at least $300 million.

Court records show Oesterlund — with the help of well-known Florida accounting firm Daszkal Bolton — was trying to structure his businesses to insulate himself from paying taxes and future litigation, the Times reported.

“I want to have in writing a statement,” he wrote to his lawyers in 2011, “that I can no longer be subject to Florida or U.S. law.” Take every step necessary, he added, to “remove myself from the country of Evil.”4149529614_09b489801d_o

He is also no stranger to the Florida Attorney General Office, which investigated several of his business before suing his company Xacti in 2013. Oesterlund settled  for $500,000.

His wife, Pursglove, helped him run his businesses — at one time as many as 40 internet companies — after they married in 1998. But he told  her on Christmas Eve 2012 he wanted a divorce. Later, he said if she was in Russia she would get only 10 percent of their wealth by law and in Dubai she would be entitled to nothing.

When the Internal Revenue Service couldn’t help her, Pursglove relied on Fisher and his highly creative lawyers at his firm. They spent millions of their own breaching the defenses of the offshore financial world.

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The Cayman Islands – a favorite spot for the wealthy trying to hide assets.

A big win was when Fisher got Palm Beach Circuit Judge Jeffrey Gillen to prohibit Oesterlund from selling, merging or borrowing against any of his assets.

The lawyer discovered Oesterlund had created a company Omega Partners in the Bahamas that siphoned off most of the wealth from his holding company for his businesses. Omega had one employee: Oesterlund.

At one point, the concern was that Oesterlund would go into hiding to keep his wife from key documents that showed a violation of Gillen’s order. The judge threatened him with criminal contempt.

In court, Pursglove and her legal team accused the law firm of Becker & Poliakoff of helping Oesterlund hide his wealth in the Caribbean through a fraudulent scheme.

Court filings now suggest a settlement — though Fisher and Oesterlund’s remaining lawyers said they were barred from discussing one.

 To read the whole New York Times story click here.

Two Florida prisons on lockdown

By Pat Beall

Violent incidents involving multiple inmate dorms this morning triggered lockdowns at two Florida prisons, Gulf Correctional Institutional Annex and Mayo Correctional Institutional.

The disturbances come after widespread inmate violence at Holmes Correctional earlier this week, and amid a nationwide call for prison inmates to strike Friday, the 45th anniversary of the inmate uprising at New York’s Attica prison.

Image courtesy of David Dominici @ FreeDigitalPhotos.net
Image courtesy of David Dominici @ FreeDigitalPhotos.net

Wednesday night, several hundred inmates at Holmes were involved in what the Florida Department of Corrections described as a “disturbance.” One inmate was injured. Property damage is being assessed. That prison is also on lockdown.

One minor injury to an inmate is reported in today’s flareups at Gulf and Mayo prisons.

“Across the state, there have been a few minor pockets of inmates refusing to work,” said Florida Department of Corrections spokesman Alberto C. Moscoso. “However, these issues were quickly resolved and those prisons not on lockdown are operating normally.”

Mayo, Gulf and Holmes prisons are all in the Florida Panhandle.