|
|
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF TEXAS
GALVESTON
DIVISION
UNITED
STATES OF AMERICA
v.
CRIMINAL NUMBER G-06-
DANIEL YEH
INDICTMENT
THE GRAND JURY CHARGES
COUNTS
1 – 22
(18
U.S.C. 1343 – Wire Fraud)
A. INTRODUCTION
At all times material herein:
1. The Federal Emergency Management Agency (FEMA)
was an agency of the United States Department of Homeland Security that
provided disaster assistance once the President of the United States
declared that a major disaster had occurred in a specified area.
FEMA's Public Assistance Grant Program was a disaster relief program that
provided federal funds to state and local governments and certain private
organizations assisting in disaster relief.
2. On August 29, 2005, President George W. Busch
declared Hurricane Katrina a major disaster. After Hurricane Katrina,
the FEMA Public Assistance Grant Program funded the special Transient
Accommodations and Assistance Program (STAAP). The American Red Cross
(ARC) administered STAAP. STAAP allowed hurricane evacuees from
designated disaster areas to stay in hotels. STAAP reimbursed
those hotels for the nights that hurricane evacuees from designated areas
spent at the hotel.
3. The Red Cross contracted with Corporate
Lodging Consultants (CLC), a hotel payment provider to manage billing for
STAAP. Hotels would submit billings on the STAAP program online using
a CLC website at http://www.corplodg.com/arc/
. CLC received online billing for STAAP at its Wichita, Kansas
Headquarters.
4. On September 24, 2005, President George W.
Bush declared Hurricane Rita a major disaster. After Hurricane Rita,
STAAP also covered Hurricane Rita evacuees from designated areas.
5. On October 24, 2005, FEMA took over
administration of the program from the Red Cross and changed that name of
the program to the Short-Term Lodging Program (SLP). REMA retained
CLC to manage billing for the program.
6. Defendant DANIEL YEH was the principal
owner of Flagship Hotel Limited, which operated the Flagship Hotel
(Flagship), Located at 2501
Seawall Blvd. in Galveston, Texas.
The Flagship enrolled in STAAP after Hurricane Katrina and continued to
participate in the program after Hurricane Rita and after FEMA took over
administration of the program and changed the name to SLP.
7. Flagship used CLC's website to submit charges
under both STAAP and SLP. To date, the Flagship has charged the programs a
combined net amount of over $1.5 million.
B. THE SCHEME
8. Beginning on or about October 1, 2005 and
continuing to on or about December 21, 2005, in the Southern District f Texas, and
elsewhere, the defendant
DANIEL YEH,
did knowingly devise and
intended to devise a scheme and artifice to defraud STAAP and SLP and to
obtain money and property from those programs by means of false and
fraudulent pretenses, representations and promises.
C. MANNER AND MEANS OF THE SCHEME
It was part of that scheme that:
9. After Hurricane Rita, Defendant DANIEL YEH
would and did take over from a hotel employee the duty of billing STAAP and
later SLP.
10. Defendant DANIEL YEH would and did
direct that the hotel night auditor fax him reports from the hotel
reservation system on a daily basis.
11. Defendant DANIEL YEH would and did
bill and fail to credit STAAP and SLP for room in the names of hotel
employees who previously stayed in rooms at the Flagship free of charge as
part of their employment arrangement.
12. Defendant DANIEL YEH would and did
bill and fail to credit STAAP and SLP for room int
he name of supposed hurricane evacuees on dates when those rooms were in
fact, according to the hotel reservation system, occupied by paying hotel
guests with different names.
13. Defendant DANIEL YEH would and did
bill and fail to credit STAAP and SLP for room in the names of supposed
hurricane evacuees who never had rooms at the Flagship during the time
those programs were operation.
14. Defendant DANIEL YEH would and did recruit
relatives, friends and employees of his wife's business who were not
hurricane evacuees to check in to the Flagship under the evacuee
programs. DANIEL YEH would and did then bill and fail to
credit STAAP and SLP for rooms in the names of those nonevacuees, including
room in the names of those nonevacuees before those nonevacuees checking in
to the Flagship and room in the names of the nonevacuees on date the rooms
were unoccupied.
15. Defendant DANIEL YEH would and did
bill and fail to credit STAAP and SLP for rooms in the name of supposed
hurricane evacuees on dates that, according to the hotel reservation system , the rooms were unoccupied.
16. Defendant DANIEL YEH would and did
bill and fail to credit STAAP and SLP for multiple rooms in the names of a
single guest when, in fact, the guess ( and all others in that guest's
party ) occupied fewer rooms than billed.
D. THE EXECUTION OF THE SCHEME
17. On or about the dates listed as to each Count
below, the defendant DANIEL YEH, for the purpose of executing the
aforesaid scheme and artifice to defraud, did knowingly transmit and cause
to be transmitted, by means of wire communications in interstate and foreign
commerce, writings, signs and signals as described in the counts below:
|
COUNT
|
DATE
|
WIRE COMMUNICATION
|
|
1
|
October 1,
2005
|
False claim
submitted to STAAP via the CLC website for Rooms 221 and 223 in the name
of Mike Yeh for the dates 9/28/2005 thru 10/12/2005.
|
|
2
|
October 8,
2005
|
False claim
submitted to STAAP via the CLC website for Room 620 in the name of Tom
Truong for the dates 10/6/2005 thru 10/20/2005.
|
|
3
|
October 14,
2005
|
False claim
submitted to STAAP via the CLC website for Room 736 in the name of Tom
Truong for the dates 10/6/2005 thru 10/11/2005.
|
|
4
|
October 15,
2005
|
False claim
submitted to STAAP via the CLC website for Rooms 221 and 223 in the name
of Mike Yeh for the dates 10/12/2005 thru 10/26/2005.
|
|
5
|
October 19,
2005
|
False claim
submitted to STAAP via the CLC website for Room 201 in the name of Chris
Miller for the dates 10/16/2005 thru 10/30/2005.
|
|
6
|
October 28,
2005
|
False claim
submitted to SLP via the CLC website for Rooms 221 and 223 in the name of
Mike Yeh for the dates 10/26/2005 thru 11/9/2005.
|
|
7
|
October 31,
2005
|
False claim
submitted to SLP via the CLC website for Room 701 in the name of Minh Khuu
for the dates 10/28/2005 thru 11/11/2005.
|
|
8
|
November 2,
2005
|
False claim
submitted to SLP via the CLC website for Room 321 in the name of Valentin
Sifuentes for the dates 10/26/2005 thru 11/9/2005.
|
|
9
|
November 3,
2005
|
False claim
submitted to SLP via the CLC website for Room 203 in the name of Chris
Miller for the dates 10/30/2005 thru 11/12/2005.
|
|
10
|
November 4,
2005
|
False claim
submitted to SLP via the CLC website for Rooms 719 and 721 in the name of
Danny Gentles for the dates 10/26/2005 thru 11/9/2005.
|
|
11
|
November 12,
2005
|
False claim
submitted to SLP via the CLC website for Room 401 in the name of Tom
Truong for the dates 11/6/2005 thru 11/20/2005.
|
|
12
|
November 14,
2005
|
False
claim submitted to SLP via the CLC website for Room 701 in the name of Minh
Khuu for the dates 11/11/2005 thru 11/20/2005.
|
|
13
|
November 15,
2005
|
False
claim submitted to SLP via the CLC website for Rooms 221 and 223 in the
name of Mike Yeh for the dates 11/9/2005 thru 11/20/2005.
|
|
14
|
November 17,
2005
|
False
claim submitted to SLP via the CLC website for Rooms 719 and 721 in the
name of Danny Gentles for the dates 11/9/2005 thru 11/23/2005.
|
|
15
|
November 24,
2005
|
False
claim submitted to SLP via the CLC website for Room 240 in the name of Ricardo
Cobos for the dates 11/20/2005 thru 12/4/2005.
|
|
16
|
November 30,
2005
|
False
claim submitted to SLP via the CLC website for Room 201 in the name of
Chris Miller for the dates 11/30/2005 thru 12/14/2005.
|
|
17
|
December 1,
2005
|
False
claim submitted to SLP via the CLC website for Room 439 in the name of Tom
Truong for the dates 11/20/2005 thru 12/14/2005.
|
|
18
|
December 3,
2005
|
False
claim submitted to SLP via the CLC website for Room 734 in the name of Danny
Gentles for the dates 11/27/2005 thru 12/11/2005.
|
|
19
|
December 4,
2005
|
False
claim submitted to SLP via the CLC website for Rooms 221 and 223 in the
name of Mike Yeh for the dates 12/4/2005 thru 12/15/2005.
|
|
20
|
December 7,
2005
|
False
claim submitted to SLP via the CLC website for Room 321 in the name of Valentin
Sifuentes for the dates 12/7/2005 thru 12/15/2005.
|
|
21
|
December 8,
2005
|
False
claim submitted to SLP via the CLC website for Rooms 719 and 721 in the
name of Danny Gentles for the dates 12/7/2005 thru 12/15/2005.
|
|
22
|
December 15,
2005
|
False
claim submitted to SLP via the CLC website for Room 704 in the name of Minh
Khuu for the dates 12/15/2005 thru 12/29/2005.
|
In violation of Title 18, United States Code,
Sections 1343.
COUNTS
23-39
(18
U.S.C. 287 – False Claim )
1. The
Grand Jury realleges and incorporates by reference, as though set forth in
full herein, the allegations set forth in Sections A and C of Counts One through
Twenty-Two of this indictment.
2. On or
about the dates listed as to each Count below, in the Southern District of
Texas, the defendant,
DANIEL YEH
made the following material claims against and upon
FEMA, an agency of the United Stats, for SLP funds, knowing that the claims
were false, fictitious, and fraudulent in that the claims included
fraudulent billing representations as set out in this Indictment:
|
23
|
October 28,
2005
|
False claim
submitted to SLP via the CLC website for Rooms 221 and 223 in the name of
Mike Yeh for the dates 10/26/2005 thru 11/9/2005.
|
|
24
|
October 31,
2005
|
False claim
submitted to SLP via the CLC website for Room 701 in the name of Minh Khuu
for the dates 10/28/2005 thru 11/11/2005.
|
|
25
|
November 2,
2005
|
False claim
submitted to SLP via the CLC website for Room 321 in the name of Valentin
Sifuentes for the dates 10/26/2005 thru 11/9/2005.
|
|
26
|
November 3,
2005
|
False claim
submitted to SLP via the CLC website for Room 203 in the name of Chris
Miller for the dates 10/30/2005 thru 11/12/2005.
|
|
27
|
November 4,
2005
|
False claim
submitted to SLP via the CLC website for Rooms 719 and 721 in the name of
Danny Gentles for the dates 10/26/2005 thru 11/9/2005.
|
|
28
|
November 12,
2005
|
False claim
submitted to SLP via the CLC website for Room 401 in the name of Tom
Truong for the dates 11/6/2005 thru 11/20/2005.
|
|
29
|
November 14,
2005
|
False
claim submitted to SLP via the CLC website for Room 701 in the name of Minh
Khuu for the dates 11/11/2005 thru 11/20/2005.
|
|
30
|
November 15,
2005
|
False
claim submitted to SLP via the CLC website for Rooms 221 and 223 in the
name of Mike Yeh for the dates 11/9/2005 thru 11/20/2005.
|
|
31
|
November 17,
2005
|
False
claim submitted to SLP via the CLC website for Rooms 719 and 721 in the
name of Danny Gentles for the dates 11/9/2005 thru 11/23/2005.
|
|
32
|
November 24,
2005
|
False
claim submitted to SLP via the CLC website for Room 240 in the name of Ricardo
Cobos for the dates 11/20/2005 thru 12/4/2005.
|
|
33
|
November 30,
2005
|
False
claim submitted to SLP via the CLC website for Room 201 in the name of
Chris Miller for the dates 11/30/2005 thru 12/14/2005.
|
|
34
|
December 1,
2005
|
False
claim submitted to SLP via the CLC website for Room 439 in the name of Tom
Truong for the dates 11/20/2005 thru 12/14/2005.
|
|
35
|
December 3,
2005
|
False
claim submitted to SLP via the CLC website for Room 734 in the name of Danny
Gentles for the dates 11/27/2005 thru 12/11/2005.
|
|
36
|
December 4,
2005
|
False
claim submitted to SLP via the CLC website for Rooms 221 and 223 in the
name of Mike Yeh for the dates 12/4/2005 thru 12/15/2005.
|
|
37
|
December 7,
2005
|
False
claim submitted to SLP via the CLC website for Room 321 in the name of Valentin
Sifuentes for the dates 12/7/2005 thru 12/15/2005.
|
|
38
|
December 8,
2005
|
False
claim submitted to SLP via the CLC website for Rooms 719 and 721 in the
name of Danny Gentles for the dates 12/7/2005 thru 12/15/2005.
|
|
39
|
December 15,
2005
|
False
claim submitted to SLP via the CLC website for Room 704 in the name of Minh
Khuu for the dates 12/15/2005 thru 12/29/2005.
|
In violation of Title 18, United States Code, Section
287.
Notice of Criminal
Forfeiture
Pursuant to Title 18, United States Code, Sections
981(a)(1)(c) and Title 28, United States Code, Section 2461(c), as a result
of the commission of a violation of wire fraud as charged in Counts One(1)
through Twenty-two (22) of the Indictment, notice is given that the
defendant Daniel Yeh shall forfeit
all property, real or personal, which constitutes or is derived from
proceeds traceable to the commission of the offenses of Title 18, United
States Code, Section 1343 as charged in the Indictment, such amount to be
at least approximately $232,022.70.
Pursuant to Title 41, United States Code, Section 119
and Title 28, United States Code, Section 246(c), as a result of the
commission of a violation of the federal false claim offenses charged in
Counts Twenty-three (23) through Thirty-nine (39) of the Indictment, notice
is given that the defendant Daniel Yeh shall forfeit and refund to the
United States of America all amounts listed in Title 41, United States
Code, Section 119, including but not limited to all benefits, payments,
compensations, allowances, loans, advances, and emoluments received as a rules
of the commission of the offenses of Title 18, United States Code, Section
287 as charged in the Indictment, such amount to be at least approximately
$232,022.70.
In the event that the property which is subject to
forfeiture to the United
States, as a result of any act or omission
of the defendant:
A.
cannot be located upon exercise of due
diligence;
B.
has been placed beyond the jurisdiction of
the Court;
C.
has been transferred or sold to, or
deposited with a third party;
D.
has been substantially diminished in value;
or
E.
has been commingled with other property which
cannot be divided without difficulty;
it is the intent of the United States to seek forfeiture
of any other property of the defendant up to the value of such property,
pursuant to Title 21, United States Code, Section 853(p), made applicable
to these offenses by Title 18, United States Code, Section 982(b)(1).
A TRUE BILL
__________________________________
FOREPERSON OF THE GRAND JURY
CHUCK
ROSENBERG
United States
Attorney
By:
____________________________
GREGG
COSTA
Assistant
United States
Attorney
____________________________
JASON
VARNADO
Special
Assistant United States
Attorney
|
