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January 20, 2026
If You Do the Crime, You Must Do the Time

Fraudster Tries to Reduce His Sentence by Continuing His Fraud
Post number 5267

Read the full article at https://lnkd.in/gn6SUUqV, see the video at https://lnkd.in/g4PiYrAp and at https://lnkd.in/giHCPFAw, and at https://zalma.com/blog plus more than 5250 posts.

In Spite of Defendants Claims He Will Spend Serious Time in Prison

In United States Of America v. Henry Ford, Criminal Action No. 23-130, United States District Court, E.D. Pennsylvania (January 5, 2026) Henry Ford (no relation to the creator of the Model T), also known as “Cleothus Lefty Jackson,” was indicted and pled guilty to one count of securities fraud and aiding and abetting, along with seven counts of wire fraud.

FACTUAL BACKGROUND

Defendant falsely represented to victims that a business he controlled, Fallcatcher, had “pilot approvals in writing” with two large insurance companies and that several states “want the [Fallcatcher] technology” [Count Five]. In reality, Fallcatcher did not have any pilot programs with insurance companies and the Letter Of Intent was not a legitimate document.

Ford founded and operated several Fallcatcher entities, holding various executive roles, and purportedly used some of the funds to promote the business and hire employees.

Ford orchestrated a fraudulent investment scheme involving the sale of securities tied to companies he controlled, collectively known as “Fallcatcher.” The scheme defrauded 61 victims out of nearly $5 million. The SEC recovered and returned a portion of the funds, but over $2 million in restitution remains outstanding.

Approximately sixty-one (61) investor victims invested $4,964,775.79 in Fallcatcher, in return for shares of Fallcatcher’s common stock at a price of $.50 per share. These investments constituted the purchase of securities. And although Defendant did not have access to the investment proceeds located in Fallcatcher bank accounts, bank records reflected that Defendant and his wife received approximately $493,000 in payments from Fallcatcher after the proceeds were in the accounts.

The Present Criminal Case

In the instant criminal case a grand jury returned an eight-count Indictment against Defendant. On May 13, 2025, Defendant pled guilty to all charges in the Indictment, pursuant to a written plea agreement. The parties agreed, pursuant to Federal Rules of Criminal Procedure 11(c)(1)(C), that a sentence of imprisonment between forty-six (46) and seventy-eight (78) months is the appropriate disposition of this case.

Legal Issues & Sentencing

The sentencing in this case centers on the calculation of “loss” under § 2B1.1 of the United States Sentencing Commission Guidelines. The court clarified that “loss” means the actual harm suffered by victims. This means that any money recovered and returned to victims should be deducted from the loss calculation.

Analysis/Discussion

First, the money recovered by the SEC and returned to victims was deducted from the loss calculation, as only the net loss actually suffered by victims is relevant to a sentencing court.

Second, the court rejected the argument that funds not returned but used for “legitimate business purposes” should be excluded from the loss calculation. The rationale is that such expenditures, even if ostensibly for business operations, do not offset the loss suffered by victims, as the funds were obtained through fraud.

Fraud Loss Calculation in the Presentence Report

In the Presentence Report (“PSR”), the Probation Officer set the applicable fraud loss at $4,964,775.79. Since the loss exceeded $3,500,000, but was less than $9,500,000,” eighteen (18) offense levels were added.

Defendant Ford objected to the loss amount. The Court found that under § 2B1.1 of the Sentencing Guidelines: (1) the money returned to the victims by the SEC is not included in the amount of “actual loss”; and (2) the remainder of investment funds apparently used for “legitimate business expenses” are not excluded from “actual loss.”

The Government argued that because Defendant’s misrepresentations successfully resulted in investors transferring approximately $4.9 million to Fallcatcher Inc., Defendant caused “actual loss” in that amount once the funds were out of the victims’ possession.

Since the $2,095,480.38 balance was actually lost by the victims, he received no credit. The defendant has clearly demonstrated acceptance of responsibility for the offense. Accordingly, the offense level is decreased by two levels. The defendant has assisted the authorities in the investigation or prosecution of the defendant’s own misconduct by timely notifying authorities of the intention to enter a plea of guilty. Accordingly, the offense level is decreased by one additional level.
Total Offense Level: 24

In conclusion the court concluded that at Offense Level of 24, with a Criminal History Category of II, the guideline range for imprisonment is fifty-seven (57) to seventy-one (71) months.

ZALMA OPINION

Fraudsters, even when arrested and convicted with a guilty plea insist on drawing courts into lengthy opinions to support the serious sentence the fraud perpetrator using a famous person’s name as his own, will be sentenced – contrary to his objections, between 57 and 71 months in prison for his fraud.

(c) 2025 Barry Zalma & ClaimSchool, Inc.

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00:09:01
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September 18, 2026
Expert May Only Testify to What Experience Supports

Insurance Expert May Not Testify to Speculative and Contains Unsupported Conclusions.

Posted on September 18, 2026 by Barry Zalma

See the full video at and at https://rumble.com/v7fmifw-expert-may-only-testify-to-what-experience-supports.html

In Michele A. Over, and The Estate Of Paul R. Over v. State Farm Mutual Automobile Insurance Company, and State Farm Fire And Casualty Company, Civil Action No. 23-cv-02243-PAB-STV, United States District Court, D. Colorado (September 14, 2026) Michele and Paul Over sued State Farm Fire and State Farm Auto over hail-damage and stolen-vehicle claims.

The operative dispute concerned State Farm Auto’s motion to exclude or limit opinions from plaintiffs’ insurance-industry expert, Aaron Castillo. Castillo.

Law

The proponent of expert testimony must establish by a preponderance of the evidence that an expert is qualified and that the opinions are helpful, sufficiently grounded, and reliably derived and applied. Experience-based opinions must explain how the...

00:03:10
September 17, 2026
Convicted on 29 Tax-Refund-Fraud Counts

150 Months in Prison for Tax Fraud
Post 4846

Posted on September 17, 2026 by Barry Zalma

See the full video at https://lnkd.in/g8rh3JBX and https://lnkd.in/gmkdy-9C, In United States Of America v. Thomas Addaquay, Nos. 25-10609, 25-10611, United States Court of Appeals, Eleventh Circuit (September 9, 2026) the Eleventh Circuit affirmed all challenged convictions, the 150-month aggregate sentence, and the challenged $4,123,474.55 restitution award.

FACTS

In United States Of America v. Thomas Addaquay, United States Of America v. Thomas Addaquay, Nos. 25-10609, 25-10611, United States Court of Appeals, Eleventh Circuit (September 9, 2026) the Eleventh Circuit affirmed all challenged convictions, the 150-month aggregate sentence, and the challenged $4,123,474.55 restitution award.
FACTS

Thomas Addaquay controlled United Consolidated Accounting and Business Services (UC), nominally a check-cashing business.

The government proved a three-stage tax-refund scheme that converted the resulting refund checks into usable funds through ...

00:05:23
September 14, 2026
Court Enforces Fifth Amendment & Refuses to Compel Answers

Major Fraud Perpetrator Asserts Fifth Amendment Privilege to Avoid Prosecution

Post 5489

Posted on September 14, 2026 by Barry Zalma

Fraudster Refuses to Answer Questions About His Alleged Fraud

See the full video at https://lnkd.in/gvicAMDr and at https://lnkd.in/gvicAMDr

In Great American Insurance Co. v. Gemstone Property Management, LLC, et al., No. 23-cv-9100 (LJL), United States District Court, S.D. New York (September 8, 2026) Great American Insurance Company alleged that it was defrauded through a scheme in which Subin Associates, LLP recruited individuals to stage construction-site injuries, arranged unnecessary medical treatment and litigation funding, and pursued fraudulent personal-injury claims.

Luis Manuel Garcia Salcedo, resulted in a $6 million settlement. Non-party Jose Hernandez allegedly worked as an assistant manager at Subin, operated Hernandez Associates, and owned litigation-funding companies that shared office space with Subin and provided services to its clients.

After Great American ...

00:05:14
15 hours ago

Excellence in Claims Handling
Posted on October 29, 2026 by Barry Zalma

Common Problems in a Jewelers’ Block Policy Investigation

If you are not a subscriber you will read from this link until you reach the paywall end of this blog post as the free part of Excellence in Claims Handling. You should consider joining as a paid member to get full access to articles for members only, to our news, analysis, insurance coverage, claims, insurance fraud and insurance webinars, by clicking at the button above.

This is a taste of the latest Excellence in Claims Handling Article for subscribers to my substack. Subscribe to my substack at https://lnkd.in/gmmzUVBy

The History of the Jewelers’ Block Policy

The ‘jewelers’ block policy’ had its origin about 1920, and since that time the policy and the proposal upon which it is based have become more or less standard.

The Inland-Marine Insurance Bureau, of which appellant is a member, prescribes contracts and proposals for such policies that are ...

15 hours ago
A Self-Insurance Plan Constitutes “Insurance”

Self Insurance is Excess Over Primary Insurance

Post 4572

Posted on October 29, 2026 by Barry Zalma

Employment Plan is Insurance Because it Transferred Risk and Contained Claim, Exclusion, and Priority Provisions.

In Ajay Kolli, & c. et al. v. Kaleida Health, 2026 NY Slip Op 06167, No. 72, New York Court of Appeals (October 22, 2026) Dr. Venkateswara Kolli treated a patient in 2011 while serving as an on-call, per diem physician for Kaleida Health. The patient later sued Dr. Kolli and Kaleida for medical malpractice.

In 2011, decedent Dr. Venkateswara Kolli treated a patient as part of his duties pursuant to an on-call, per diem physician employment agreement with defendant Kaleida Health. The patient subsequently sued Dr. Kolli and Kaleida. Dr. Kolli sought indemnity from his primary medical malpractice insurer, MLMIC Insurance Company (MLMIC), as well as his excess insurer Healthcare Professionals Insurance Company (HPIC).

The underlying medical malpractice action settled after Dr. Kolli’s death. Kaleida, MLMIC, and ...

October 28, 2026

RICO Suit Against Law Firm & Health Care Pros Fails

Posted on October 28, 2026 by Barry Zalma

UBER AND FEDEX FIGHT FRAUD

Racketeer Influenced and Corrupt Organizations Act (RICO) is Designed to Defeat Fraud Perpetrators

In Uber Technologies, Inc., et al. v. Simon & Simon P.C., et al., Civil Action No. 25-5365, United States District Court, E.D. Pennsylvania (October 13, 2026) Uber Technologies, Inc. and Federal Express Corporation sued attorney Marc Simon, his firm Simon & Simon, P.C., and several medical professionals and practices under the Racketeer Influenced and Corrupt Organizations Act (RICO).

They allege the defendants orchestrated a scheme to generate and litigate fraudulent personal injury claims arising from motor vehicle accidents involving Uber and FedEx drivers. Uber and FedEx incurred defense costs and paid settlements on some claims. The court earlier denied a motion to dismiss, finding proximate causation adequately pleaded. Fact discovery is set to close December 21, 2026.

Discovery showed Uber’s...

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