Tuesday, September 14, 2010

Billing Fraud By Outside GM Counsel Alleged

The Illinois Administrator has filed a complaint alleging that an attorney retained by General Motors falsely billed GM for four mediation sessions that did not take place. The charging document alleges in pertinent part:

5. On December 3, 2009, Respondent sent a letter to GM, which enclosed billing statements detailing Respondent's purported expenses in her Indiana cases, as well as a spreadsheet summarizing the total expenses being billed in each of her Indiana cases. The billing statements contained, in part, four $600 charges for costs purportedly incurred for mediations in the Johnson, McCoy, Mazur, and Ramsey cases. In addition, the spreadsheet indicated, in part, that Respondent had incurred $600 in total costs in each of the cases of Johnson, McCoy, Mazur, and Ramsey.

6. The portions of the billing statements and spreadsheet described in paragraph five, above, which Respondent enclosed with her December 3, 2009 letter to GM, were false, and Respondent knew they were false, because Respondent knew that no mediations had taken place in the Johnson, McCoy, Mazur, and Ramsey cases, since she was the attorney of record for GM in those cases, and she knew that those cases had settled prior to any expenses being incurred for mediation services.

7. On January 12, 2010, GM sent Respondent an e-mail requesting, in part, "further information" regarding the mediations which, according to the billing statements and spreadsheet Respondent had enclosed with her December 3, 2009 letter to GM (paragraph five), had purportedly taken place in the Johnson, McCoy, Mazur, and Ramsey cases.

8. Respondent knew that no information existed that was responsive to GM's January 12, 2010 e-mail, which is referenced in paragraph seven, above, since no mediations had taken place in the Johnson, McCoy, Mazur, and Ramsey cases.

9. On or about January 13, 2010, Respondent created four invoices that purported to be from "National A.D.R. Services" and listed fictitious invoice numbers. At no time had National A.D.R. Services authorized Respondent to create or issue any invoices on its behalf. On January 13, 2010, Respondent sent a letter to GM enclosing, in part, the four invoices that she had created. Respondent stated in her letter that she had obtained the four invoices from her case files. The purported invoices from National A.D.R. Services stated, in part, that mediations had taken place in the Johnson, McCoy, and Mazur cases on November 30, 2009, and in the Ramsey case on December 1, 2009. The purported invoices further indicated that National A.D.R. Services had billed Respondent $600 for each of the mediations in the Johnson, McCoy, Mazur, and Ramsey cases.

10. The invoices submitted to GM by Respondent (paragraph nine), as well as her statement in her January 13, 2010 letter to GM (paragraph nine) that she had obtained those invoices from her files, were false, and Respondent knew they were false, because:

  1. Respondent had fabricated the invoices, and she knew that National A.D.R. Services had not authorized her to create or issue those invoices on its behalf; and

  2. Respondent knew that no mediations had taken place in the Johnson, McCoy, Mazur, and Ramsey cases, since she was the attorney of record for GM in those cases, and she knew that those cases had settled prior to any expenses being incurred for mediation services.

(Mike Frisch)

http://lawprofessors.typepad.com/legal_profession/2010/09/the-illinois-administrartor-has-filed-a-complaint-alleging-that-an-attorney-retained-by-general-motors-falsely-billed-for-fou.html

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Thanks for such a informative blog.

Posted by: Houston Criminal Attorney | Sep 15, 2010 5:25:37 AM

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