Court Orders DOJ to Indict Serial Fraudster for Criminal Contempt
Post 4890
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September 13, 2024
The USDC described Defendant Alberto Marzan as a serial fraudster who has largely managed to dodge accountability for victimizing individuals in the entertainment industry. Plaintiff Michaleen Josephs sued Marzan and his company, Press Media Group (“PMG”), after Marzan fraudulently induced Josephs to issue a series of bogus investments and other payments. When Marzan failed to respond, the Court entered default judgment for Josephs and awarded damages and equitable relief, including a requirement that Marzan divest from his enterprises and provide any future potential investors, employees, or business associates with copies of the Court’s default judgment order and his 2014 guilty plea for insurance fraud.
In Michaleen Josephs v. Alberto Jose Marzan and Press Media Group, Inc., doing business as VumaTV, CIVIL No. 21-749 (JRT/DTS), United States District Court, D. Minnesota (August 22, 2024) found its patience exhausted because Marzan has continued to defraud others using the same businesses and has not complied with the Court’s disclosure orders, all while expressing his knowledge of, and disdain for, the Court’s order.
The Court asked the United States Department of Justice to prosecute Marzan for criminal contempt.
BACKGROUND
Marzan fraudulently induced Josephs to lend him and his business, PMG, more than $250,000, which he never repaid. Josephs also rented and furnished an apartment for Marzan based on his promise to repay her, incurring nearly $50,000 in additional expenses. Marzan’s fraud was nothing new: Josephs discovered Marzan’s prior convictions for insurance and investment fraud and eight unpaid default judgments for which Marzan was responsible.
Josephs sued Marzan for violations of the Racketeering Influenced and Corrupt Organizations Act (“RICO”) predicated on mail and wire fraud, fraud, breach of contract, promissory estoppel, and abuse of process. The Court ordered default judgment for Josephs and awarded her over $800,000 in damages, interest, and attorney’s fees.
The Court entered the injunction after considering the statutory and constitutional propriety of equitable relief. The USDC found that Marzan has created an enterprise designed to skirt damages awards and is using the enterprise to intentionally evade recovery by the same people and entities harmed by the enterprise. The undisputed facts show that he takes advantage of the court’s leniency to find a new victim.
Equitable relief is appropriate when defendants take advantage of the law to shield themselves from accountability at law.
VIOLATIONS
Marzan continues to defraud employees and contractors from a business that the Court ordered him to divest from and without issuing the required disclosures. And he has done so while making clear that he is aware of, but has no regard for, the Court’s order.
DISCUSSION
Because the Court cannot let Marzan’s blatant disregard for its order go unpunished and neither compensatory nor coercive civil contempt are appropriate, the Court refers this case to the United States Attorney for a criminal contempt prosecution.
Fines would likely accomplish nothing, as Marzan habitually ignores monetary judgments.
The Court found that Marzan knew of the Court’s order and the proper mechanisms to ask the Court to reconsider, but decided he would instead disobey the order while denigrating these proceedings. He was not entitled to take matters into his own hands by unilaterally deciding to disregard the Court’s order.
The Court, therefore, requests that the United States Department of Justice prosecute Defendant Alberto Jose Marzan for criminal contempt.
ZALMA OPINION
Marzan’s actions and disrespect and failure to obey court orders is a aggressive form of chutzpah. He blatantly disobeys the orders of the court, fails to appear after receiving an order to show cause, and ignores judgments rendered against him and disobeys orders of the court. It takes a great deal of abuse to cause a U.S. District Court Judge to request the DOJ to prosecute a party before the court for criminal contempt. Hopefully the DOJ will fulfill the court’s request. Fraud should not be allowed to continue.
(c) 2024 Barry Zalma & ClaimSchool, Inc.
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Time Bar Defeats Suits Against Insurer
Post 5247
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In Kevin J. Labudde v. The Phoenix Insurance Company, No. 7:21-CV-197-BO-BM, United States District Court, E.D. North Carolina, Southern Division (December 12, 2025) Defendant The Phoenix Insurance Company (Phoenix) moved for summary judgment, moved to exclude the testimony of Donald Dinsmore and Jerome Redmond, and moved to seal certain documents.
FACTS
Kevin J. Labudde’s home was damaged by Hurricane Matthew on October 8, 2016. He discovered additional mold damage in January 2017 and hired a contractor, who filed an insurance claim with Phoenix Insurance Company. Phoenix found hail damage (covered by the policy) but determined the cost was below the deductible and denied coverage for water intrusion and mold, citing policy exclusions for seepage.
Second Claim:
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CVS Settles Fraud Allegations with the US, Multiple States & Cities
Post 5246
Read the full article at https://lnkd.in/gWPTErTV, see the video at https://lnkd.in/gcmb4USM and at https://lnkd.in/gZcEHcZ9, and at https://zalma.com/blog plus more than 5200 posts.
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In United States Of America v. CVS Pharmacy, Inc. et al, Nos. 18 Civ. 3047 (JGK), 19 Civ. 1550 (JGK), 19 Civ. 8454 (JGK), 19 Civ. 11244 (JGK), 20 Civ. 2173 (JGK), 18 Civ. 3047 (JGK), United States District Court, S.D. New York (December 1, 2025) Honolable John G. Koeltl United States District Judge concluded that Relators filed the above-captioned multiple actions against defendant CVS Pharmacy, Inc. (“CVS”) and other entities on behalf of the United States under the qui tam provisions of the False Claims Act, 31 U.S.C. § 3729 et seq., on behalf of 30 states, the District of Columbia, Puerto Rico, and the Virgin Islands under comparable state false claims and insurance fraud laws, and on behalf of six ...
CVS Settles Fraud Allegations with the US, Multiple States & Cities
Post 5246
Read the full article at https://lnkd.in/gWPTErTV, see the video at https://lnkd.in/gcmb4USM and at https://lnkd.in/gZcEHcZ9, and at https://zalma.com/blog plus more than 5200 posts.
False Claims Act Claims Resolved by CVS
In United States Of America v. CVS Pharmacy, Inc. et al, Nos. 18 Civ. 3047 (JGK), 19 Civ. 1550 (JGK), 19 Civ. 8454 (JGK), 19 Civ. 11244 (JGK), 20 Civ. 2173 (JGK), 18 Civ. 3047 (JGK), United States District Court, S.D. New York (December 1, 2025) Honolable John G. Koeltl United States District Judge concluded that Relators filed the above-captioned multiple actions against defendant CVS Pharmacy, Inc. (“CVS”) and other entities on behalf of the United States under the qui tam provisions of the False Claims Act, 31 U.S.C. § 3729 et seq., on behalf of 30 states, the District of Columbia, Puerto Rico, and the Virgin Islands under comparable state false claims and insurance fraud laws, and on behalf of six ...
Zalma’s Insurance Fraud Letter
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ZIFL Volume 29, Issue 24
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Zalma’s Insurance Fraud Letter (ZIFL) continues its 29th year of publication dedicated to those involved in reducing the effect of insurance fraud. ZIFL is published 24 times a year by ClaimSchool and is written by Barry Zalma. It is provided FREE to anyone who visits the site at http://zalma.com/zalmas-insurance-fraud-letter-2/
Zalma’s Insurance Fraud Letter
Merry Christmas & Happy Hannukah
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The Professional Claims Handler
Post 5219
Posted on October 31, 2025 by Barry Zalma
An Insurance claims professionals should be a person who:
Can read and understand the insurance policies issued by the insurer.
Understands the promises made by the policy.
Understand their obligation, as an insurer’s claims staff, to fulfill the promises made.
Are competent investigators.
Have empathy and recognize the difference between empathy and sympathy.
Understand medicine relating to traumatic injuries and are sufficiently versed in tort law to deal with lawyers as equals.
Understand how to repair damage to real and personal property and the value of the repairs or the property.
Understand how to negotiate a fair and reasonable settlement with the insured that is fair and reasonable to both the insured and the insurer.
How to Create Claims Professionals
To avoid fraudulent claims, claims of breach of contract, bad faith, punitive damages, unresolved losses, and to make a profit, insurers ...
The History Behind the Creation of a Claims Handling Expert
The Insurance Industry Needs to Implement Excellence in Claims Handling or Fail
Post 5210
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry. This statement of my philosophy on claims handling starts with my history as a claims adjuster, insurance defense and coverage lawyer and insurance claims handling expert.
My Training to be an Insurance Claims Adjuster
When I was discharged from the US Army in 1967 I was hired as an insurance adjuster trainee by a professional and well respected insurance company. The insurer took a chance on me because I had been an Army Intelligence Investigator for my three years in the military and could use that training and experience to be a basis to become a professional insurance adjuster.
I was initially sat at a desk reading a text-book on insurance ...
