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.

 

 

State senator blasts Palm Beach Post, calls reporting ‘criminal’

State Sen. Bobby Powell blasted The Palm Beach Post’s recent report on fraud in the 2016 August primary election Tuesday night, saying the reporting in a Sunday story “should be criminal.”

At a public forum, Powell and state Rep. Al Jacquet took aim at The Post and State Attorney’s Office investigators looking into absentee ballot fraud in the primary election. Detectives found nearly two dozen fraudulent signatures on absentee ballot request forms but couldn’t identify a suspect, The Post reported.

State Rep. Al Jacquet, left, and state Sen. Bobby Powell at a legislative wrap-up forum on Tuesday, July 25, 2017.

“It’s distasteful,” Powell told the audience of roughly 80 people. “It should be criminal that newspapers can print something like that and implicate.”

EXCLUSIVE: Read The Post’s report into last year’s primary election

Jacquet took aim at the detectives who questioned voters, calling their behavior “criminal” and “unconstitutional.” Fourteen Palm Beach County Sheriff’s Office detectives were assigned to interview voters.

“Someone comes to your door in uniform, bangs on your door and says, ‘Who did you vote for? How did you vote for them? Why did you vote for them? Did they give you anything to vote for them?'” Jacquet said. “This is not only criminal, this is unconstitutional civil rights violations. This is singling out one group of folks and literally intimidating them, suppressing their right to vote.”

Powell said the story was “flawed.”

“The story was not truthful, and it was done in order to damage the credibility of myself, (County Commissioner) Mack Bernard and Al Jacquet,” he said.

VOTER FRAUD: Read the State Attorney’s investigation into the primary election

Jacquet received enthusiastic applause after he said that voter suppression tactics wouldn’t work in the next election.

I guarantee you that’s not going to happen,” Jacquet said. “We’re just getting started.”

The Post on Sunday reported that prosecutors were ending their investigation into voter fraud in the August primary, despite finding 22 people whose signatures were forged on absentee ballot request forms.

The reason the case was dropped is because the lead detectives on the case, a Palm Beach County Sheriff’s sergeant and West Palm Beach detective assigned to the state attorney’s public corruption unit, couldn’t find a suspect.

Detectives didn’t follow up on basic leads, didn’t interview people who might have known about the fraud and waited eight months before following up with voters who made complaints.

Detectives also never followed up on The Post’s March story, in which voters said Jacquet and Bernard went into their homes, helped them fill out their ballots and collected them. Collecting other people’s ballots is a felony, the report states.

Powell, who said he brought copies of the report to Tuesday’s forum, said that the state attorney’s report does not “in any point indicate that our campaigns were under investigation.”

Read how 30% of Florida’s voting is ripe for fraud

The report does not mention Powell, and only mentions Bernard and Jacquet briefly.

But 17 of the 22 victims, which included a state attorney’s employee and her three family members, were in a narrow area where Jacquet’s, Powell’s and Bernard’s districts intersect.

And the only “person of interest” in the case was Delano Allen, whom detectives never interviewed. He was seen on video dropping off bundles of absentee ballot request forms.

Detectives never mentioned in their report that Allen is Powell’s longtime legislative aide.

Powell on Tuesday came to Allen’s defense, saying that other people must have been dropping off ballot request forms for other campaigns, too.

Delano Allen is my legislative aide,” he said, gesturing toward Allen. “In the paper they indicated that he dropped off ballot requests, almost saying that’s illegal. I’m sure that during the election season, that many Democratic clubs, Republican clubs, many other people dropped off absentee ballot requests. But when it came down to implicating him as to turning in one ballot, he turned in none. That was not reported. Unacceptable.”

It’s not illegal to drop off ballot request forms. The report does not mention Allen turning in absentee ballots. That would be illegal.

After he made his remarks, Powell criticized a Post reporter, telling the reporter that the newspaper didn’t mention that detectives found six fraudulent absentee ballots, which were from outside his district.

But detectives actually found that the ballots were not fraudulent.

“It was determined that 6 absentee ballots were possibly altered, forged, or obtained in a fraudulent way,” the report states. “It was determined through the course of the investigation that there was no criminal activity associated with these absentee ballots.”

After Powell spoke, Jacquet questioned why the three Democrats were even singled out for absentee ballots.

When you go to the division of elections and see the number of absentee ballots that counted in the recent election, the number has continued to skyrocket, because voters are now realizing that they don’t have to stand in line for two, three hours,” he said. “Why single out one group?”

But the candidates’ performance in absentee ballots was well above normal. Their opponents cried foul, and elections experts considered the results suspicious.

In some precincts, Bernard and Jacquet won nine of every 10 absentee ballots cast. They also drastically outperformed the top-ticket U.S. Senate candidates. In one Boynton Beach precinct, for example, 135 more people voted for Jacquet than for all the U.S. Senate candidates combined.

“When you have that type of down-ballot voting that exceeds the top of the ticket, it raises some suspicions,” University of Florida professor Daniel Smith told The Post in March.

Tuesday’s event was intended to give constituents a wrap-up of the Legislative session. But Powell said they first had to address the “elephant in the room.”

The audience included various local elected officials and former candidates, including Edwin Ferguson, a lawyer who lost to Jacquet in the August Democratic primary.

Ferguson actually beat Jacquet at the polls by 132 votes. But Jacquet’s extraordinary 1,167-vote edge in absentee votes easily won him the race.

Ferguson, who is running for the county School Board District 7 seat, declined to address the controversy on Wednesday.

“We came up short,” Ferguson said. “We’ll try to do better next time.”

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 in Kenny Chatman case expected to plead guilty

The last defendant in Kenny Chatman’s drug treatment fraud scheme is expected to plead guilty, according to a Thursday court filing.

Dr. Joaquin Mendez had pleaded not guilty to federal charges of money laundering and conspiracy to commit health care fraud. What he will plead guilty to is unknown; a change of plea hearing is scheduled for July 14.

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

He was the final holdout among eight people arrested in a multi-million-dollar drug treatment operation created by Chatman, who was sentenced to 27 1/2 years in prison in May.

Chatman, a felon who had no experience in health care before he created Reflections Treatment Center in Broward County in 2013, also trafficked his female patients. In his sober homes scattered throughout Palm Beach County, he held women captive and prostituted them.

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

Together, the defendants will have to pay back millions to more than a dozen insurance companies that were defrauded.

Mendez was a former medical director for the Reflections. One of the reasons he declined to take a plea deal is because his veteran defense attorney, Richard Lubin, wanted more time to evaluate the evidence.

The amount of evidence in the case was “massive” – more than he’d ever seen in his 42 years in law, Lubin wrote earlier this year. It included:

  • 326 gigabytes of digital records copied onto an encrypted hard drive.
  • 236,245 digital files organized into 8,307 folders
  • 16,064 records in 133 files of patient data
  • 1,719 patient case files with as many as 600 pages in each file
  • 30 FBI taped interviews
  • 225 boxes of paper documents that prosecutors said would take 6-8 weeks to copy

Chatman was first exposed in a 2015 Palm Beach Post story. He was also recently profiled by NBC News.

Drug treatment center doctor who worked for Kenny Chatman will stay out of jail

A doctor who worked for corrupt treatment center operator Kenny Chatman will not be going back to jail – at least for now.

Federal prosecutors wanted Dr. Joaquin Mendez, who is out on $100,000 bond, back behind bars after they argued he violated the terms of his release by treating patients and prescribing opioids.

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

But Mendez’s lawyer, Richard Lubin, argued the terms were vague, and both sides agreed last week simply to amend the terms of his release.

Mendez, a former medical director for Chatman’s corrupt Reflections Treatment Center, is the only one of eight defendants not to have taken a plea deal for their involvement with the facility.

The seven others, including Chatman and his wife, Laura, were sentenced to a combined 58 years in prison.

Mendez has been charged with money laundering and conspiracy to commit health care fraud for ordering unnecessary urine drug tests for addicts, according to prosecutors.

One of the terms of his release, added in handwriting to the paperwork, was that he “not use his Medicare number to provide any services.”

Prosecutors said he violated those terms after he treated at least 188 Medicare patients wrote more than 100 prescriptions for controlled substances that included oxycodone, Oxycontin, clonazepam and fentanyl.

Lubin, his lawyer, argued the terms were weirdly vague.

“Not only is this Court and Dr. Mendez left guessing at what it means to ‘treat patients using his Medicare number,’ it is entirely unclear what the Government means by ‘Medicare number,'” Lubin wrote.

HEROIN: Killer of a generation

Apparently the ‘Medicare number’ prosecutors referenced was Mendez’s Provider Transaction Access Number, which Lubin said had “absolutely nothing to do with” Medicare claims.

On Thursday, both sides agreed to changing the terms of release.

Mendez is one of two doctors in charge of overseeing patient care at Chatman’s facilities to be arrested. Last Week, Dr. Donald Willems was sentenced to 10 years in prison – the maximum sentence – after pleading guilty to conspiracy to commit health care fraud.

Chatman was sentenced to 27 years in prison last month after admitting to turning his female patients into prostitutes and pimping them out online.

One of Kenny Chatman’s top doctors gets maximum sentence

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

A doctor who treated patients at Kenny Chatman’s notorious drug treatment center was sentenced to 10 years in prison today.

Dr. Donald Willems, an osteopath, was the medical director for Chatman’s Reflections Treatment Center, in Broward County, from October 2015 to May 2016.

He admitted in his plea deal to signing off on drug tests and unnecessary allergy and DNA tests, which helped Chatman turn his drug treatment center into a multi-million dollar business.

Although Willems was supposed to be treating the patients at Reflections, he wasn’t monitoring the results of their drug tests, he admitted. If he was, he would have noticed that most of the patients were not sober and their drug tests were actually being submitted by other people, including Reflections workers.

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

The 10-year sentence was the maximum he could have received after pleading guilty to conspiracy to commit health care fraud.

HEROIN: Killer of a generation

Willems was one of two doctors arrested for working with Chatman, who was sentenced to 27 years in prison last month. Chatman admitted to turning some of his female patients into prostitutes at his sober homes in Palm Beach County. Even in South Florida’s widely corrupt drug treatment industry, Assistant U.S. Attorney Marie Villafaña called Chatman “the most dangerous” player in it.

>> HEROIN: Killer of a generation

Federal prosecutors say the other doctor, Dr. Joaquin Mendez, has violated the conditions of his release on bond, and they asked last week to arrest him again. Mendez is the only one of the eight defendants – which includes Chatman’s wife, Laura – to not take a plea deal.

Willems is also facing four-year-old state charges of racketeering and illegally providing oxycodone for his work at a pill mill in Broward County.

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.

Palm Beach Shores settles case of dispatcher harassed by cop

Palm Beach Shores is paying $150,000 to settle a lawsuit by a former dispatcher who claimed she’d been repeatedly sexually harassed by former town police officer Charles Hoeffer.

For the town, it’s the latest fallout relating to Hoeffer, whom the town paid $135,000 last year to leave after he was accused of raping a blind woman twice. The town is being sued by that woman and another who claims Hoeffer groped and harassed her.

Former Palm Beach Shores officer Charles Hoeffer attends an arbitration hearing on May 5, 2016. (Allen Eyestone / The Palm Beach Post)

The dispatcher, Lori Saridakis, worked under Hoeffer’s supervision while she worked for the town. According to the 2015 lawsuit, he made crude comments to her, including asking her, “When are you gonna let me get some of that?” He would also grope himself in front of her, she said.

Ten months on paid leave: Officer faces assault allegations

11 women accuse cop of assault, rape or harassment

After she went to the town manager with her complaints, she was fired. The town said her position was simply eliminated.

“I’m happy it’s over for her,” Saridakis’ attorney, Arthur Schofield, said Thursday. “It was a long fight, and I’m proud of her for fighting, which other women couldn’t do or didn’t have the courage to do.”

At least one other dispatcher complained that she’d been harassed by Hoeffer. Saridakis could not be reached for comment.

The town’s insurance carrier, which is paying the settlement, agreed to settle just before the case went to trial. The settlement is not an admission of guilt.

The allegations against Hoeffer were first exposed in a 2015 Palm Beach Post article that revealed 11 different women had accused him of assault, rape or harassment over his three decades in policing with three different departments.

Last week, the national news site The Daily Beast profiled Hoeffer and his history in a lengthy exposé.

Schofield said he deposed Hoeffer for the lawsuit. He called it an “eye-opening experience,” although he didn’t uncover any new details about the officer’s history.

 

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.