American Morning

Tune in at 6am Eastern for all the news you need to start your day.
October 22nd, 2009
06:33 AM ET

Organized crime's new target: Medicare and Medicaid

By Allan Chernoff, Sr. Correspondent and Sheila Steffen, Sr. Producer

Organized crime gangs are exploiting a new target for illegal profit: Medicare and Medicaid.

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/images/10/22/arrest.jpg caption="Two members of a Nigerian organized crime ring are charged with defrauding Medicare of $6 million."]

Experienced in running drug, prostitution and gambling rings, crime groups of various ethnicities and nationalities are learning it's safer and potentially more profitable to file fraudulent claims with the federal Medicare program and state-run Medicaid plans.

"They're hitting us and hitting us hard," said Timothy Menke, head of investigations for the Office of Inspector General at the Department of Health and Human Services. "Organized crime involvement in health care fraud is widespread."

Los Angeles is among the hot spots for health care fraud, where Russian, Armenian and Nigerian gangs have been caught by federal agents.

Crime boss Konstantin Grigoryan, a former Soviet army colonel, pleaded guilty to taking $20-million from Medicare; Karapet "Doc" Khacheryan, boss of a Eurasian crime gang, was recently convicted with five lieutenants of stealing doctor identities in a $2-million scam, and last Thursday two Nigerian members of an organized crime ring, Christopher Iruke and his wife, Connie Ikpoh, were charged with bilking Medicare of $6-million dollars by fraudulently billing the government for electric wheelchairs and other expensive medical equipment.

Watch: Organized crime hits Medicare Video

The two have entered pleas of not guilty and are being held in a federal detention center. "They deny any allegations of wrongdoing," said their attorney James Kosnett.

Defrauding government-run health care programs involves stealing two types of identities: those of doctors, who bill for services, and patients, whose beneficiary numbers entitle them to medical care and necessary equipment. Criminals are expert at collecting both.

FULL POST


Filed under: Crime • Exclusive
October 22nd, 2009
06:20 AM ET

Sailor forced out, facing punishment in Navy hazing scandal

By Carol Costello and Ronni Berke

The Navy has censured and will remove from active duty the former leader of its canine unit in Bahrain after reviewing a 2007 investigation into reports of hazing and abuse of a gay dog handler and other sailors.

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/images/10/22/toussaint.navy.art.jpg caption="Senior Chief Michael Toussaint's enlistment extension has been canceled, which will force him to leave active duty and retire in January, 2010."]

Admiral Gary Roughead, the commander of Naval Operations, has canceled Senior Chief Michael Toussaint's enlistment extension, which will force him to leave active duty and retire in January, 2010. Although the previous Navy investigation found more than 90 alleged incidents of hazing and harassment, including forcing the gay sailor, Joseph Rocha, to simulate oral sex with another man, no one appeared to have been disciplined.

Toussaint was subsequently promoted to senior chief and assigned to work with the elite Navy SEALS. Wednesday’s announcement meant Toussaint will be stripped of his leadership position and assigned to administrative duties at the Navy Special Warfare Group 2 in Virginia. In addition, Toussaint's retirement pay will be reviewed.

"Admiral Roughhead found that the incidents were not in keeping with Navy values and standards and violated the Navy's longstanding prohibition against hazing," said Navy spokeswoman and Commander Elissa Smith. "Our sailors are to be treated with dignity and respect in a healthy and positive working environment."

Joe Rocha, the sailor who says he was tormented daily for more than two years when Toussaint suspected he was gay, told CNN he welcomed the news. “It gives me and a lot of people a lot of hope in that this is a great day for everyone, for our men, our women, heterosexual, lesbian, or gay, for everyone, this reestablishes what Navy leadership is, that anything less than leadership that meets the corp's values will be punished.” Watch Rocha react to the news Video

Rocha does regret, however, that Toussaint will apparently not face a court martial. CNN reached out to Senior Chief Toussaint for a comment on the Navy’s decision, but a Navy spokesman said Toussaint is not commenting to the press.

Report: Sailors hogtied, fed dog treats


Filed under: Military
October 22nd, 2009
06:00 AM ET

Suit: Madoff offices were 'North Pole' of cocaine

By Chloe Melas
CNN

NEW YORK (CNN) - A new lawsuit alleges that convicted swindler Bernie Madoff financed a cocaine-fueled work environment and a "culture of sexual deviance," and he diverted money to his London, England, office when he believed federal authorities were closing in at home.

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/CRIME/10/22/madoff.lawsuit/art.bernie.madoff.afp.gi.jpg caption="A new lawsuit alleges Bernie Madoff financed a sex-and-drugs workplace with investors' money."]

The lawsuit, filed Tuesday in New York's State Supreme Court, was brought on behalf of former investors and seeks unspecified punitive damages and compensation.

Beyond that, it offers a look at what the plaintiffs' attorneys say was once Madoff's multimillion-dollar empire and what is now his world in a federal prison in North Carolina.

Among the allegations in the 264-page lawsuit are that during the mid-1970s, Madoff began sending employees to buy drugs for company use.

The complaint alleges that some employees and investors were aware of the drug purchases, and that BMIS [Bernard Madoff Investment Services] was known by insiders as the "North Pole" in reference to the excessive amount of cocaine use in the work place.

Read the full story »


Filed under: Business • Crime
October 21st, 2009
03:00 PM ET

We Listen – Your comments 10/21/2009

Editor's Note: Wednesday's Talk Radio segment on the Fairness Doctrine split American Morning's audience opinion regarding its necessity. Progressives and liberals wanted more diversity, while conservatives were against the doctrine for radio. Others remarked that deregulation was at fault for a lack of “localism” in radio.

  • Christopher: I don’t think we need any fairness when it comes to talk radio. It just goes to show that the side with the most and loudest is most likely the one that is insecure and needs to constantly remind people of the propaganda that they spew. The rest of us know the truth....
  • Dee: I do not want a fairness doctrine. I am mature enough to turn the channel if I don't like what they are saying. I watch CNN sometimes, but mostly I watch Fox News, I am a conservative. When Obama reads off his teleprompter I just turn the channel. He needs to take care of the war, illegal immigration, and runaway Medicare and Medicaid crooks. He doesn't need to worry about what I hear or see, or how my child is educated, or how the police in Conn. make an arrest. His first and primary job is to keep our country safe. He is like a teenager with his stolen credit card.
  • Denice: Yes we do need more localism. I live in Texas which seems like a different country from the rest of the world. (lol) We probably have 4 out of 4 stations that are conservative radio. I am an Obama supporter. I just listen to CNN from Dallas. It always gives me a different perspective than our local stations, It is as if we are in the wild wild west (lol).
  • Carolyn: Using Carol Costello's logic for the universal repudiation of her talk radio story-one could conclude that the flat earth society is really on to something. Sometimes when you tick off people of all stripes it’s because you are in the land of nonsense.
  • George: Here in Port St Lucie, AM radio is nothing but ring wing , Rush ,Sean,...Tom. Yes I like the local Thing, I will love to hear the Progressive side.

What do you think of the Fairness Doctrine being applied to talk radio?


Filed under: We Listen
October 21st, 2009
01:53 PM ET

Obama's poll numbers show wear and tear

From Candy Crowley
CNN Senior Political Correspondent

WASHINGTON (CNN) - As President Obama navigates his way through a series of issues as controversial as they are vital, he's getting a yellow flag from the American people.

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/POLITICS/10/21/obama.poll/art.obama.afp.gi.jpg caption="Support for President Obama's policies has dropped, but his approval rating remains healthy, a new poll finds."]

For the first time since Obama took office, fewer than half of Americans agree with the president on issues important to them, according to a CNN/Opinion Research Corp. poll released Tuesday. A majority, 51 percent, disagree - a jump of 10 percentage points since April.

Despite the majority disagreement on issues, the poll also found the president's approval rating remains in the healthy mid-50s. And two-thirds of Americans say he has the personal qualities a president should have.

"It's awfully early yet, but this president might be shaping up to be a little like Ronald Reagan, where people actually didn't often agree with Ronald Reagan's ideas, but they loved the guy," said Paul Begala, a Democratic strategist and CNN contributor.

A popular president who is less popular on the issues - Obama could use his personal popularity to rally support for his less popular agenda.

Read the full story »


Filed under: Politics
October 21st, 2009
01:23 PM ET
« older posts
newer posts »