HORNE ISSUES WARNING ABOUT RELIEF SCAMS FOLLOWING JAPANESE DISASTER

PHOENIX (Monday March 14, 2011) -- With disaster relief efforts underway to help the people of Japan, Attorney General Tom Horne says consumers should be cautious and only make contributions to reputable, established charitable organizations.

“While tragedies such as the disaster in Japan bring out the best in most people, they bring out the worst in others and the result is that scam artists will prey on consumers who want to help by making a financial contribution,” Horne said. “I’m urging Arizonans to give generously to relief efforts, but to make sure their contributions are used for their intended purpose.”

Here are some tips for giving to charitable organizations:

• Be skeptical of anyone asking for a donation by requesting your credit card number or bank account information over the phone unless you already donate to that charity.
• Be skeptical of individuals representing themselves as surviving victims or officials asking for donations.  
• Make contributions directly to known organizations rather than relying on others to make the donation on your behalf to ensure contributions are received and used for the intended purpose.
• Don’t be shy about asking what percentage of your donation will go directly to the charity versus administrative costs.
• Call the Secretary of State's Office at (602) 542-4285 or visit their Web site to make sure the charity is registered with the Secretary of State.  A charity that operates without such registration is violating the law and should be seen as a red flag for consumers. Be aware, however, that registration with the Secretary of State does not guarantee that all of the charity’s activities are legitimate.  Several Web sites, including  www.charitynavigator.org, and, provide information on the financial backgrounds of charities. These can be useful for consumers looking to research organizations they are considering for a donation. 
• Do not pay bills or invoices you have received from charities unless you know you have already made a commitment to support them.
• Remember to ask for a receipt and a statement that the contribution is tax deductible.

If you believe you have been a victim of fraud, please contact the Attorney General’s Office in Phoenix at 602.542.5763; in Tucson at 520.628.6504; or outside the Phoenix and Tucson metro areas at 1.800.352.8431. To file a complaint in person, the Attorney General’s Office has satellite offices throughout the state with volunteers available to help. Locations and hours of operation are posted on the Attorney General’s Web site. Consumers can also file complaints on line by visiting the Attorney General’s Web site at www.azag.gov. More tips specific to the Japan disaster are also available at: http://ftc.gov/opa/2011/03/earthquake.shtm.

###

ATTORNEY GENERAL TOM HORNE ANNOUNCES SETTLEMENT AGREEMENT WITH PRINCIPAL REDUCTION GROUP, LLC

PHOENIX (Friday March 11, 2011) -- Attorney General Tom Horne today announced a settlement agreement with Scottsdale based Principal Reduction Group, LLC, and Brian Cutright, owner and operations manager of Principal Reduction Group, LLC.

Pursuant to the settlement agreement, Principal Reduction Group and Brian Cutright agree to no longer engage in any activity, directly or on behalf of any third party, that involves originating, closing, or modifying any term of a consumer’s mortgage loan, or obtaining a reduction on a consumer’s debt, of any kind, while in the State of Arizona or on behalf of any Arizona consumer.

Horne stated. “Consumer fraud targeting homeowners who are facing difficulties paying their mortgages is a problem that must be dealt with and I am committed to finding and prosecuting those people who use predatory schemes.”

Additionally, the settlement agreement provides for full restitution to the consumers who filed complaints with this office; on average, those consumers paid $5,500 each for principal reduction services from the Defendants.

Finally, the settlement agreement requires the Defendants to pay $25,000 as civil penalties and $5,000 for attorneys costs and fees. The Attorney General shall deposit the funds into the consumer protection-consumer fraud revolving fund.

This settlement agreement is pursuant to a consent judgment currently awaiting court approval.

If you believe you have been a victim of consumer fraud, please contact the Attorney General's Office in Phoenix at 602.542.5763; in Tucson at 520.628.6504; or outside the Phoenix and Tucson metro areas at 1.800.352.8431. To file a complaint in person, the Attorney General’s Office has satellite offices throughout the state with volunteers available to help. Locations and hours of operation are posted on the Attorney General’s Web site, www.azag.gov. Consumers can also file complaints online by visiting www.azag.gov/consumer/complaintform.html."

This case was handled be AAG Cherie Howe.

###

HORNE ANNOUNCES MEDICAL DOCTOR SURRENDERS LICENSE, PAYS $700,000 RESTITUTION FOR PRESCRIPTION DRUG / MONEY LAUNDERING SCAM

PHOENIX (Friday March 11, 2011) -- Attorney General Tom Horne today announced that Albert Yeh, a medical doctor who practiced in Golden Valley, Arizona has surrendered his medical license in both Arizona and Nevada and will pay nearly $700,000 in restitution for his orchestration of a prescription drug and money laundering scheme.


“Albert Yeh can no longer practice medicine and victimize Arizonans,” Horne said.  “For three years, Yeh systematically victimized not only his patients, but the taxpayers of Arizona by writing massive amounts of prescriptions for narcotics without properly ensuring the patients actually needed those drugs; seeing far too many patients than is safe, and grossly and fraudulently inflating his bills for the admitted purpose of his making as much money as possible.  This medical predator is now, fortunately, out of business.”

On January 13, 2011, Albert Yeh pled guilty to three high level felonies: fraudulent schemes and artifices, a class 2 felony; illegal control of an enterprise, a class 3 felony; and money laundering, a class 3 felony. The plea requires Yeh, a medical doctor, to permanently surrender his Arizona medical license. Also, as a result of this prosecution, Yeh has permanently surrendered his Nevada medical license. Yeh does not hold any other medical licenses in the United States. On March 11, 2011, Yeh was sentenced by Maricopa County Superior Court Judge Susan Brnovich to 2.5 years in prison, followed by 5 years probation. Yeh is also required to pay $683,038.00 in restitution to the Arizona Health Care Cost Containment System (AHCCCS). In a related forfeiture matter, Yeh agreed to forfeit property seized in the amount of approximately $2 million in seized monies.

From January 1, 2006, to February 10, 2009, Yeh operated a pain management clinic one day a week in Golden Valley, Arizona, where he systematically victimized the State of Arizona through massive amounts of fraudulent billing. Yeh operated this medical practice for the admitted purpose of making as much money as possible. To do this, Yeh concocted a scheme to severely shorten patient visits, increase his patient load to dangerous levels, and then grossly inflate his bills. Yeh employed an unlicensed physician assistant who he instructed to see about half of the patient load, allowing Yeh’s practice to see twice as many patients. During most of those patient visits, prescriptions for narcotic drugs already signed by Yeh were provided to patients. Also, to shorten the length of patient visits, Yeh and his staff typically failed to take vital signs or perform medical exams, instead relying on computer commands created by Yeh that automatically entered false information on patients’ charts. This, of course, means that Yeh and his staff did not know whether patients were having adverse reactions to medications or experiencing other medical problems that should be factored into determining how to treat the patient. Then, Yeh submitted bills to AHCCCS, claiming that he had conducted all the patient visits, even those conducted by the unlicensed physician assistant. Also, Yeh inflated the charges on his bills by claiming he provided a higher level of medical service than what actually occurred, resulting in a higher than allowed payment from AHCCCS.

"DEA will stand firm on its commitment to investigate and prosecute any medical practitioner who violates the laws of the United States when prescribing controlled substances other than for legitimate medical needs," said Acting Special Agent in Charge Doug Coleman. "Today's sentencing sends a strong message that we will not tolerate rogue doctors who use their positions of trust to prey on those who are vulnerable to the abuse of prescription drugs."

Yeh’s records indicate that, with this scheme in place, his practice saw about 150 patients each day. To make sure these patients returned to Yeh’s practice so that he could continue to maximize his unlawful billing, Yeh did not take steps typically taken by pain management doctors to determine whether patients were taking too many drugs or drugs other than those he was prescribing. In fact, Yeh’s staff referred to follow-up visits as “refill” visits, as the focus clearly was on handing out the pre-signed prescriptions and moving on to the next patient.

This case was investigated by the U.S. Drug Enforcement Administration (DEA), the U.S. Department of Health and Human Services’ Office of Inspector General, the Arizona Attorney General’s Office, the DEA’s Tactical Diversion Task Force, which includes the Arizona Department of Public Safety, Phoenix Police Department, Apache Junction PD, Peoria PD, Surprise PD, Mesa PD, Kingman PD, Mohave Area General Narcotics Enforcement Team (MAGNET), Arizona Health Care Cost Containment System (AHCCCS) Fraud Unit, Nevada DPS, Arizona Pharmacy Board, the DEA Las Vegas and the DEA Digital Evidence Laboratory.

###

ATTORNEY GENERAL TOM HORNE REMINDS CONSUMERS TO BE AWARE OF DECEPTIVE MAILERS

PHOENIX (Friday March 11, 2011) -- Attorney General Tom Horne is warning Arizona consumers to be wary of advertisements and solicitations appearing in mailboxes or at homeowners’ front doors. Many solicitations appear to be an official notification, although the sender has no affiliation with any government agency. These mailers offer to provide services that are required by a governmental entity or services that will save the consumer money. Most often, those offers simply are “too good to be true” and should be avoided.

In November 2010, the Arizona Attorney General’s Office obtained a $628,066 consumer fraud judgment against Vahe Zakaryan and his business, Board of Business Compliance. Operating from California, Mr. Zakaryan sent deceptive official-looking solicitations to Arizona business owners requesting an annual fee of $125. The mailing misled business owners into believing the fee and form were required by the Arizona Corporation Commission. In a similar case, the Attorney General has also brought suit against a Nevada corporation, Arizona Corporate Headquarters, and its principal, former NFL player Gaston Green, (now known as Gaston Muhammad), for mailing more than 137,000 fraudulent “corporate minutes” solicitations to Arizona businesses.

In August 2009, the Arizona Attorney General’s Office filed a lawsuit against Property Tax Review Board, a company that sent solicitations to homeowners requesting a fee of $189 to lower their property tax bill. Property Tax Review Board was unable to assist with property tax reductions as the business was not registered with the Board of Appraisals. Also, the time period to appeal property tax assessments for 2009 and 2010 had lapsed. The Attorney General’s Office obtained a judgment against Property Tax Review Board, enjoining them from conducting this type of fraud in the future and assessing a civil penalty against them in the amount of $7.1 million dollars. Property owners who want to appeal the valuation of their real property can do so, at no cost, by contacting their county assessors’ office.

These lawsuits are simple reminders to consumers to be wary of the advertisements and solicitations they receive in the mail or posted to their front doors. The Arizona Attorney General’s Office advises consumers to read all fine print, do research on companies that are listed on mailers and be cautious about the authenticity of mailings that appear to be from a government agency.

If you believe you have been a victim of consumer fraud, please contact the Attorney General’s Office in Phoenix at 602-542-5763, in Tucson at 520-628-6504, or outside the Phoenix and Tucson metro area at 1-800-352-8431. Consumers can also file complaints online by visiting the Attorney General’s Office Web site at www.azag.gov. To file a complaint in person, the Attorney General’s Office has satellite offices throughout the state with volunteers available to help. Locations and hours of operation are posted on the Attorney General’s Web site.

###