Fraudsters Took Advantage of Injured Workers

Injured workers in California thought they were calling a hotline to help them navigate the workers’ compensation system. What they got instead was more pain. Rather than getting the help they needed, callers were set up with a group of corrupt doctors, attorneys, and patient brokers who lined their own pockets at the expense of injured workers.

For years, dozens of marketers, doctors, lawyers, and medical service providers conspired to buy and sell patients—and their individual body parts—like commodities for insurance and workers’ compensation purposes. The San Diego-based fraud ring cheated the California workers’ compensation system and private insurance out of more than $200 million. They also subjected patients to unnecessary, and sometimes painful, medical procedures and corrupted the doctor-patient relationship.

Yet thanks to an investigation by the FBI, the San Diego District Attorney’s Office, and the California Department of Insurance, many of the fraudsters have been convicted and sentenced.

The network preyed predominantly on seasonal, migrant workers who travel back and forth between California and Mexico. Their work in heavy labor industries, such as agriculture, can sometimes result in injuries.

Fermin Iglesias and Carlos Arguello set up various patient recruiting and scheduling companies in Central America and Mexico to direct patients to medical service providers. Arguello operated several patient recruitment entities, including one called Centro Legal. Through billboards, flyers, advertisements, and business cards, Centro Legal recruited workers to seek workers’ compensation benefits. When an injured worker called the number on the billboard or card, a scheduling company took over to maximize the profits from that individual worker.

“The corrupt attorneys and doctors had the same goal—to bill as much as possible,” said Special Agent Jeffrey Horner, who investigated the case out of the FBI’s San Diego Field Office. “The attorneys wanted to get the largest possible settlement by any means necessary, which was traditionally based on total medical billing. The doctors wanted to make as much money as possible, without regard for the well-being of their patients.

Read More

US Customs and Border Protection reportedly suspends subcontractor over cyberattack

The US Customs and Border Protection has reportedly suspended a subcontractor following a “malicious cyberattack” in May that caused it to lose photos of travelers into and out of the country. Perceptics, which makes license plate scanners and other surveillance equipment for CBP, has been suspended from contracting with the federal government, The Washington Post reported Tuesday.

On June 12, CBP had confirmed that in violation of its policies, a subcontractor had “transferred copies of license plate images and traveler images collected by CBP to the subcontractor’s company network.” The subcontractor’s network was then compromised by a cyberattack that affected under 100,000 people who entered and exited the US in a vehicle through several specific lanes at one land border during a 1.5-month period.

Federal records showed CBP officials citing “evidence of conduct indicating a lack of business honesty or integrity,” Washington Post reported.

Passports and travel document photos weren’t taken in the cyberattack, but it was reported later in June that the hackers stole sensitive CBP data from Perceptics, including government agency contracts, budget spreadsheets and even Powerpoint presentations.

Read More

5 charged in human trafficking case after 18 immigrants are rescued in Houston

(CNN) Houston police arrested five men in a human trafficking investigation for allegedly holding 18 Latin American immigrants for ransom, police said.

The suspects face multiple charges, including engaging in organized crime by kidnapping, Houston Police Chief Art Acevedo said Friday.

The investigation started June 5 after a family told police a relative was being held against his will. Kidnappers were demanding $4,700 for the man’s release, in addition to $300 that had been paid to someone in Mexico to help bring him into the country, police said in a criminal complaint.

The kidnappers told the family that the man would be killed if the money was not paid, the complaint said.

Officers responded to where they believed the victim was held, and they arrested several suspects and rescued two victims, Acevedo said.

Guns, cash and cocaine recovered

Police learned of a “stash house” with more victims and found 16 more victims in “deplorable conditions,” he said.

“Our investigation determined that women were held captive and sexually assaulted for 25 days,” he said. The victims were taken to hospitals after they were rescued.
Detectives also recovered guns, more than $10,000, and 19 grams of cocaine, police said.

View Source

Cellebrite Cracks All iOS Devices, Company Announces

The “arms race” of mobile forensics – ever-tougher encryption and the breakneck operations to crack it – has become more of a public tug-of-war than ever before.

Cellebrite, the largest player in the mobile-forensics industry, unveiled its UFED Premium last Friday. Along with the announcement came the bombshell: that it can now get into any Apple iOS device, and many of the high-end Android devices.

“An exclusive solution for law enforcement to unlock and extract data from all iOS and Android devices,” the company said in a tweet.

Those devices have historically been the toughest to crack – and Cellebrite’s newfound ability to perform a full-file system extraction on any iOS device in particular would allow law enforcement “to get much more data than what is possible through logical extractions and other conventional means.”

“Our certified forensic experts can also help you gain access to sensitive mobile evidence form several locked, encrypted or damaged iOS and Android devices using advanced in-lab only techniques,” the company added in its Friday announcement.

The latest tool works on Apple device running anything from iOS 7 to iOS 12.3, according to the company. Among the Android devices covered are the Samsung S6, S7, S8, and S9. Also supported are the most popular models of Motorola, Huawei, LG and Xiaomi.

The announcement follows the highly-publicized breakthrough of the GrayKey devices made by Grayshift more than a year ago. The GrayKey tool had exploited a low-power loophole in some iOS systems, one expert explained to Forensic Magazine. But Apple put in a fix to stop the access late last year, involving an iOS system to reconnect with a home device. Since then, GrayKey has made some inroads on some Apple devices – but not all of them, according to experts.

Read More

What It Costs to Be Smuggled Across the U.S. Border

MATAMOROS, Mexico — Shortly before dawn one Sunday last August, a driver in an S.U.V. picked up Christopher Cruz at a stash house in this border city near the Gulf of Mexico. The 22-year-old from El Salvador was glad to leave the one-story building, where smugglers kept bundles of cocaine and marijuana alongside their human cargo, but he was anxious about what lay ahead.

The driver deposited Mr. Cruz at an illegal crossing point on the edge of the Rio Grande. A smuggler took a smartphone photograph to confirm his identity and sent it using WhatsApp to a driver waiting to pick him up on the other side of the frontier when — if — he made it across.

The nearly 2,000-mile trip had already cost Mr. Cruz’s family more than $6,000 and brought him within sight of Brownsville, Tex. The remaining 500 miles to Houston — terrain prowled by the United States Border Patrol as well as the state and local police — would set them back another $6,500.

It was an almost inconceivable amount of money for someone who earned just a few dollars a day picking coffee beans back home. But he wasn’t weighing the benefits of a higher-paying job. He was fleeing violence and what he said was near-certain death at the hands of local gangs.

“There’s no other option,” Mr. Cruz said. “The first thought I had was, ‘I just need to get out of here at whatever cost.’”

The stretch of southwest border where he intended to cross has become the epicenter of the raging battle over the Trump administration’s immigration crackdown. One clear consequence of the tightening American border and the growing perils getting there is that more and more desperate families are turning to increasingly sophisticated smuggling operations to get relatives into the United States.

Mr. Cruz’s story provides an unusually detailed anatomy of the price of the journey. The money paid for a network of drivers who concealed him in tractor-trailers and minibuses, a series of houses where he hid out, handlers tied to criminal organizations who arranged his passage, and bribes for Mexican police officers to look the other way as he passed.

Read More

FBI Investigators Thwarted Transfer of Trade Secrets to China

Wenfeng Lu was seemingly living the American dream—a comfortable life in Irvine, California, with his family and a career in medical device research and development.

Yet Lu’s secret goal was to use trade secrets stolen from his employer to strike it rich in his native China. However, thanks to an FBI investigation, his plan was thwarted, and Lu is now serving a 27-month prison sentence.

Lu worked for several different U.S. companies, all of which developed high-tech medical equipment, such as clot retrieval tools and balloon-guide catheters. In each job, Lu signed a non-disclosure agreement for his research and development work.

Despite signing the confidentiality agreement, Lu routinely did “data dumps” from his various medical research employers for about three years until his arrest in 2012. Lu transferred all of the data he could get his hands on to a personal laptop. Many of the hundreds of documents Lu stole had nothing to do with his own research; he took as much information as he could access, including proprietary information.

“He had access to so many files, not just for his own projects, and he downloaded files for a variety of different projects and took them home and to China,” said Special Agent Gina Kwon, who investigated this case out of the FBI’s Los Angeles Field Office.

One of Lu’s former employers noticed the unusual activity on their systems and reported the results of their internal investigation to the FBI. Investigators quickly proceeded to build their case and arrested Lu, just before he boarded a plane to China with the files.

The investigative team learned that Lu had planned to create and run his own medical device manufacturing company in China using the stolen technology and Chinese government funding. He had even applied for Chinese patents using technology stolen from the American companies. (China’s government creates policies that disadvantage American businesses, and hacking against American companies and interests is a common tactic.)

“Lu wanted his own business, and he thought there was a great market in China for this technology,” Kwon said.

Read More

New Forensic Technology Examines Fingerprints Once Considered Too Old

CARLISLE, Pa. (WHTM) - New technology allows investigators to examine fingerprints that were once considered too old or compromised to analyze.

A vacuum metal deposition instrument is now in the hands of Cumberland County to better collect fingerprints and DNA. This equipment is only the second of its kind in Pennsylvania and one of 14 in the entire country.

“Gold will deposit on the substrate and then I will run zinc, and zinc doesn’t attach anywhere else except to a different metal and then it will attach to the gold that I’ve placed,” said Carol McCandless, the lead forensic investigator for Cumberland County.

The vacuum sucks all the air and water out of a chamber, then the machine coats the evidence with a very thin metal film under a high vacuum, all done in less than five minutes.

“The metallic substances don’t land on the top of the ridges of anything. It goes in between so that the top of the ridge is touched and that’s where the DNA is,” said Skip Ebert, Cumberland County District Attorney.

This machine locates fingerprints from items that were previously tough or impossible to extract before, things like paper, waxy substances, and clothing.

“What we did in this machine of the actual victim’s face being suffocated and on the opposite side of the pillowcase, the actual hands that were pushing it down on his face. You cannot beat that kind of evidence anywhere,” said Ebert.

This not only helps current and future cases.

“I have received several cold cases, one from 1983 and one from 1995,” said McCandless.

The Cumberland County Forensic Lab is expected to be fully accredited in the fall, thanks largely to this new technology, made possible through a grant from the Pennsylvania Commission on Crime and Delinquency.

View Source

The Critical Role of Digital Forensics in IP Theft Litigation

In a world where an organization’s trade secrets can be compromised with a few clicks, identifying whether or not intellectual property (IP) theft took place can be a complex process for many reasons.

Since many IP theft perpetrators are internal staff, asking internal IT staff to investigate may uncover issues of bias or conflicts of interest. Additionally, IT staff may not have the experience or training necessary to properly preserve the evidence gathered. Relying upon an experienced digital forensics firm will address both of these complexities given their expertise and unbiased third-party standing.

The virtual nature of digital assets simplify the IP theft process and also complicate any investigation into wrongdoing. Plus, these analyses cannot be understood within the standard criminal investigation framework. All gathered materials should be shared with a digital forensic specialist. What the forensic analyst is trying to determine is whether the materials have probative value (i.e., possessing relevance for the case in question). Digital forensics is a unique way to handle the potential IP theft investigations.

Preservation is a key principle in IP theft investigations just as it is with any other crime scene: everything ideally stays as it was at the time of the crime, as indicated by security training firm, the InfoSec Institute. Access to all devices should be stopped and all access should be blocked when IP theft is first suspected or discovered. Experienced analysts then systematically categorize and collect data to better understand whether a crime occurred. Key materials can be damaged or destroyed if someone without a forensics background attempts to access the digital evidence. If someone intrudes without proper credentials, the evidence is essentially contaminated which may lead to halted investigations, lost lawsuits, and the failure to return the IP to the rightful owner.

Read More

US government to give DNA tests at border to check for fraud

WASHINGTON (AP) — U.S. Immigration and Customs Enforcement will begin voluntary DNA testing in cases where officials suspect that adults are fraudulently claiming to be parents of children as they cross the U.S.-Mexico border.

The decision comes as Homeland Security officials are increasingly concerned about instances of child trafficking as a growing number of Central American families cross the border, straining resources to the breaking point. Border authorities also recently started to increase the biometric data they take from children 13 and younger, including fingerprints, despite privacy concerns and government policy that restricts what can be collected.

Officials with the Department of Homeland Security wouldn’t say where the DNA pilot program would begin, but they did say it would start as early as next week and would be very limited.

The DNA testing will happen once officials with U.S. Customs and Border Protection, which manages border enforcement, refer possible instances of fraud to ICE, which usually manages interior enforcement. But teams from ICE’s Homeland Security Investigations were recently deployed to the southern border to help investigate human smuggling efforts.

The rapid DNA test will take about two hours and will be obtained using a cheek swab from both the adult and child. The parent is to swab the child, officials said.

The testing will be destroyed and won’t be used as evidence in any criminal case, they said.

Generally, government officials determine a family unit to be a parent with a child. Fraud would occur if a person is claiming to be a parent when he or she is another type of relative, or if there was no relationship at all. ICE officials said they have identified 101 possible instances of fraudulent families since April 18 and determined one-third were fraudulent.

Since the beginning of the budget year, they say they have uncovered more than 1,000 cases and referred 45 cases for prosecution. The fraud could also include the use of false birth certificates or documents, and adults accused of fraud aren’t necessarily prosecuted for it; some are prosecuted for illegal entry or other crimes.

Homeland Security officials have also warned of “child recycling,” cases where they say children allowed into the U.S. were smuggled back into Central America to be paired up again with other adults in fake families — something they say is impossible to catch without fingerprints or other biometric data.

Read More

Case Study: 30-Year-Old Cold Case Fingerprints Come to Light

Latent fingerprints are left with trace sweats and oils from unique patterns, providing the first great forensic human identifier about a century ago.

One of the few problems, however: the fingermarks can dehydrate over long periods of time. Cold cases may thus be a challenge.

But a team at the Sûreté du Québec police force in Canada has put together a methodology involving fuming, dyes and lasers which produced a clear fingerprint on a challenging plastic bag surface from a double-homicide scene from the 1980s, as they report in the journal Forensic Science International.

“The current case presents a uniqueness due to the age of the revealed fingermark, and the paired success of cyanoacrylate fuming,” writes the Canadian team. “It would thus be of great interest of future cold case analysis using this technique to identify the factors having made this revelation possible.”

The plastic bag was found at the crime scene, and had been preserved in a paper evidence bag for decades.

Since the plastic bag is non-porous, it also further fostered the dehydration process in the roughly 30 years it was left untreated in storage. Its lack of texture also “eased the deposition process.”

The Sûreté forensic experts decided to try fuming with superglue: namely E-Z Bond Instant Glue (Thin), with cyanoacrylate.

Hanging the bag in a sealed cabinet, a small amount of the glue was poured into an aluminum cup, which was then placed near a heater set to 80 degrees Celsius. A 1500 mL beaker with near-boiling water was set at the bottom of the cabinet—and a tube emitting air was placed into the water to bubble it.

For 12 minutes, the process continually attached cyanoacrylate vapors to the residues on the bag within the enclosed space.

Then came the staining.

The solution of Rhodamine 6G and methanol was mixed with a magnetic stirrer until completely dissolved, creating a bright orange mix.

Under a fume hood, the solution was sprayed over of the superglue patterns, and the excess was flushed away with pure methanol.

The treatment process thus rehydrated the marks left from the fingerprint decades before, and locked them in permanent patterns, the experts write.

The evidence was then left to dry in the fume hood, according to the paper.

Once dry, an Arrowhead 532 nm laser was used to examine the patterns. Through orange-stained goggles, pictures are taken with a Nikon D7000 camera mounted with an orange-curved barrier filter.

A good fingerprint was thus produced for the first time from the two homicides.

No suspect has yet matched the fingerprint from the double-murder scene, the team reports. However, the cold-case technique could crack open it and other cases in the near future, they report.

“It also reiterates the importance opening cold cases in order to treat and reassess their exhibits,” they write. “Despite the age of a fingermark, cyanoacrylate combined with rhodamine 6G and visualized with a laser can provide new evidence … This opens the possibility of making an identification and ultimately change the course of the investigation.”

Read More