Flagship operator not competent for trial

By Laura Elder
The Daily News

Published September 29, 2006

GALVESTON — U.S. District Court Judge Samuel Kent agreed Wednesday with a federal magistrate’s recommendation that Flagship Hotel operator Daniel Yeh, charged with defrauding the federal government, is incompetent to stand trial.

Kent ordered Yeh, 53, committed to the custody of the U.S. Attorney General’s Office for no longer than four months to determine whether there is a substantial possibility that he will be able to stand trial. The Attorney General’s office will choose the facility to which Yeh will report.

Charges against Yeh include filing fraudulent reimbursement claims to get undeserved money from the Federal Emergency Management Agency, which had been paying hotels to shelter people left homeless by hurricanes Katrina and Rita last year.

Yeh is accused of bilking at least $232,000 from FEMA.

Yeh’s attorney, Bob Bennett, all along has said his client is incompetent to stand trial because of brain damage suffered during three surgeries, including one this year.

Prosecutors have said Yeh is “malingering,” or feigning mental defect. But a court-appointed forensic psychiatrist who specializes in weeding out malingerers said Yeh was not one.

In July, U.S. District Magistrate John Froeschner said he would recommend to Kent that Yeh receive treatment for the brain injuries that he said made Yeh incompetent to stand trial.

An indictment issued in March spells out 22 wire fraud counts against Yeh carrying a punishment of up to 20 years imprisonment and a fine of up to $250,000.

Each of 17 false claims counts carries a punishment of up to five years imprisonment and a fine of up to $250,000.