Fraud Tourism: A New Type of Fraud?

Federal prosecutors in Minnesota recently charged two men from Pennsylvania with a scheme that illustrates a growing trend in white-collar crime. According to the indictment, the men traveled to Minnesota to register companies that were supposedly intended to provide housing and other services to individuals who qualified for the program. They obtained approval to bill Medicaid-funded programs, then returned home to Philadelphia. From Philly, they allegedly submitted $3.5 million in fake and inflated claims for services that were never delivered, through companies that had virtually no presence in Minnesota.

This type of conduct is known as “fraud tourism.” Although this term is not an actual legal offense, someone accused of this activity can face a range of extremely serious federal charges. If you have been accused of fraud tourism, call the skilled lawyers of the LLF Law Firm’s Criminal Defense Team. We can help you build the most robust defense possible while ensuring that your rights are protected and your voice is heard.  Contact us today at 888.535.3686 or through our online form.

What is Fraud Tourism?

Fraud tourism describes defendants who cross state lines to exploit weaknesses in state-administered, federally funded programs, particularly healthcare fraud. People who are accused could be charged with the following felony offenses:

Wire Fraud. This is the most common charge. It applies if prosecutors believe you used emails, online portals, or electronic billing to submit false information. Each count can carry up to 20 years in prison.

False Statements. If the government claims you lied on applications, certifications, or billing forms, a false statement charge may apply. Each count can carry up to 5 years.

Theft of Government Funds. This charge applies when federal money is allegedly taken improperly. It can carry up to 10 years.

Conspiracy

If more than one person was involved, prosecutors often add conspiracy charges, which allow them to treat everyone as responsible for the full amount involved, even if the accused played different roles.

You might not be charged with all of these, but it’s common for federal prosecutors to stack charges to increase pressure.

Legal Consequences of a “Fraud Tourism” Conviction

Being convicted of any charge related to fraud tourism brings serious, life-changing consequences. The length of a potential prison sentence depends on several factors, including:

• the amount of money involved

• any prior criminal history

• whether your actions were knowing and intentional

• whether you go to trial or negotiate a plea.

In larger cases involving millions of dollars, you can expect prison sentences of several years to be possible. In smaller cases or cases where intent is weak, outcomes can include probation, reduced charges, or alternative resolutions.

Hire an Experienced Criminal Defense Attorney Today

If you’ve been accused of a fraud tourism-related crime, the stakes are incredibly high. You should never assume that a case is either hopeless or harmless without proper legal counsel. Take any investigation seriously and speak to an experienced criminal defense lawyer as soon as possible.

The Criminal Defense Team of the LLF Law Firm can negotiate with prosecutors before charges are finalized, investigate the allegations, build a strong defense, and ensure that your side of the story is heard. Don’t delay–contact the LLF Law Firm’s Criminal Defense Team today at 888.535.3686 or fill out our online form.  We’ve helped many defendants protect their rights and receive the best possible outcome. We want to help you, too.