Jury Returns Not Guilty Verdict For Creizman LLC Client Charged With Money Laundering After 7-Week Federal Criminal Trial

After a 7-week criminal trial charging multiple defendants with health care fraud and money laundering conspiracy, a Brooklyn federal jury acquitted Creizman LLC client Yelena Galper.  Ms. Galper was arrested and charged with participating in a money laundering conspiracy in November 2011 (New York TimesForbes ArticleUS DOJ Press Release).  The Indictment alleged that Ms. Galper and others participated in a scheme to launder the proceeds of Medicare fraud at three Brooklyn-area medical clinics:  Bay Medical Care, PC; SVS Wellcare Medical PLLC, and SZS Medical Care PLLC.  According to the Indictment, the clinics paid kickbacks to Medicare beneficiaries and used the beneficiaries names to bill Medicare for approximately $71 million in services that were medically unnecessary and never provided.  The alleged money launderers opened bank accounts in the name of phony corporations to provide cash to the clinic owners and conceal their ownership of the proceeds of their fraud.

At trial, Eric Creizman argued that a co-conspirator of Ms. Galper’s opened accounts in her name and in the names of companies of which Ms. Galper was falsely listed as president.  Mr. Creizman asserted Ms. Galper never was aware of the accounts or the companies.  Mr. Creizman’s opening statement, certain of his cross examinations, Creizman LLC attorney Caroline Polisi’s cross-examination, and Mr. Creizman’s summation are available below:

Eric Creizman’s Opening Statements: Opening Statement

Cross-Examination of Cooperating Witness (two parts): Cross-Examination 3-20-13Cross-Examination 3-21-13

Cross-Examination of Bank Branch Manager: Cross-Examination 3-25-13

Cross-Examination of FBI Special Agent: Cross-Examination of FBI Agent

Cross-Examination of Expert Witness: Cross-Examination of Government Expert

Summation: Summation

If convicted, Ms. Galper would have faced a possible sentence of up to 20 years in prison.