Case Highlights

Restitution to taxpayers continues to be primary goal in welfare fraud prosecutions.

Nineteen fraud cases represented over a quarter million dollars in restitution last year. The following are just a few examples:

Family Fraud. DA Investigator Rick Prancevic spent 9 months tracking through a maze of applications and agencies intended to benefit the needy. The initial referral questioned whether Eshrat Ansarian (mother) was living with Hossein Modirnia (father), while receiving In-Home Supportive Services from their son Nadir Modirnia. Questions were then raised regarding a medical claim of Alzheimer's. Teaming with the California and Oregon Departments of Motor Vehicles, Medi-Cal investigators in California, Social Security Office personnel, the City of Santa Barbara Housing Authority, local physicians, and other health care providers, it was determined to be a fraud.

In 1997, Nadir knowingly assisted his mother in applying for and receiving Medi-Cal and Supplemental Security Income benefits under the alleged guise of a fictitious disability. In 1998, both subjects used purportedly falsified medical conditions to receive In-Home Supportive Services. In May of 1998, Nadir conspired with his father (Hossein Modirnia) to obtain supplemental housing benefits from the City of Santa Barbara Housing Authority. In February 2000, Nadir purchased a 1996 Porsche in the L.A. area and registered it in Oregon to avoid paying $3,000 in state sales tax and higher California registration fees.

The investigation resulted in multiple felony violations and the identification of the following amounts lost to fraud: General Relief $11,836, Food Stamps $6,267, Supplemental Security Income (SSI) $19,400, Medi-Cal $3,436, IHSS $15,065, City of Santa Barbara Housing Authority $10,228 and finally, state sales tax on a Porsche $3,000. The total loss of $69,233.

On October 13, 2000, all three family members were convicted of multiple felony counts. Within three weeks of the conviction, Nadir and other family members paid full restitution of $69,233.

Decade of Easy Money Add Up To Family Fraud. Carolyn Wilbur took temporary control of her granddaughter, applied for and was granted cash assistance.

In 1988, her daughter regained care of the child, but Mrs. Wilbur never reported this to DSS. For ten full years, Mrs. Wilbur received monthly checks. When the infant grew to school age, the grandmother simply fraudulently created enrollment paperwork and presented this documentation to support continued support payments.

Senior Investigator Sandra Correll obtained documents showing the child attended school in Oregon where she had resided with her mother and family for years. Mrs. Wilbur was convicted of welfare fraud, sentenced to jail and ordered to pay $38,459 in restitution.

Seventeen Suspects In One. When DA Investigator Rick Prancevic received a report of duplicate aid, his investigation resulted in finding Dennis Johnson had perpetrated fraud in 7 different locations, including 3 California counties all at once and 4 different offices in Arizona.

He arrived in California with a modus operandi well established in Arizona where he had received assistance from that state using false identification in 4 different offices concurrently. In California, Johnson used Gus Dagner, Timothy Franklin, Timothy Mills, Richard Byrd, Dean Johnson, and possibly 11 other identities and social security numbers while applying for and receiving aid simultaneously in Orange, San Joaquin and Santa Barbara Counties. Alerted by San Joaquin welfare fraud investigators, Johnson was arrested. He was convicted in San Joaquin of felony welfare fraud and he was sentenced to serve 2 years in state prison. He received an additional 3 years and 8 months in prison in Santa Barbara.

A Failure To Report. Veronique Elizabeth Mullen submitted falsified rental documents to obtain Permanent Homeless Assistance and failed to report:

1) Receiving direct child support payments from Mr. Mullen between March 1996 through November 1996;

2) Rent payments of $900 per month between December 1996 and March 1997;

3) That the 3 children left her care and control while she was still receiving assistance.

Senior Investigator Gerald Motter and Deputy District Attorney Edward Bullard teamed up to obtain a felony conviction, probation, jail and $7,193 in restitution!

In Time of Need, Don't Choose Greed. Michelle Lowery's daughter was born with a rare genetic nerve disorder. Lowery initially received assistance from the United Leukodystrophy Foundation (ULF) and a trust fund was established for the child. In 1995, Lowery moved to Santa Barbara County and applied for aid. Since her daughter was SSI eligible, she was automatically eligible for In-Home Supportive Services (IHSS). Lowery also began receiving financial assistance from several other county child care programs.

ULF contacted welfare fraud investigator Leonarda Torres and reported they had been providing childcare payments to Lowery until they learned that Santa Barbara County was also providing this service. Subsequently, a report was received that during the same time Lowery was receiving childcare payments from IHSS, the provider of those services was listed as the child's grandmother; the grandmother was actually living and working in Washington State. Records indicated Lowery was receiving 23 hours a day of provider childcare through various agencies. This was in addition to the financial assistance from ULF.

Investigators served a search warrant at the Lowery residence. Documents were seized, some of which appeared to be fraudulent claims. While claiming not to receive benefit of financial assistance from numerous agencies, Lowery was paying $1,350 in rent for a four-bedroom house full of name brand furniture and clothing and driving a $20,000 vehicle.

In addition to submitting fraudulent time sheets for her mother as a provider, the defendant was submitting time sheets for providers who were no longer working for her. Checks were sent to Lowery who would deduct the usual payroll taxes and then write the paychecks to the legitimate providers. Next Lowery would endorse the back of the checks with "Pay to the Order of Michelle Lowery" and forge the payee's name. Her deceptions continued for several years, while she signed her mother's name to timecards.

2,502 pages of discovery were provided to the defense. Ms. Lowery was convicted of felony welfare fraud, sentenced to 5 years probation, 180 days county jail, $250 in fines and restitution ordered to DSS and ULF in the amounts of $20,984 to IHSS and $3,764 to ULF.