A British businessman is under arrest in the United States after an FBI investigation into a multi-million dollar healthcare racket.
David Charles Rae, 41, has been indicted before the US Grand Jury on charges relating to money laundering.
Rae, who was arrested in New Jersey, is accused of using a shell company with a bank account in Hong Kong to launder cash from the fraudulent operation.
Three other defendants – Aaron Williamsky, Nadia Levit and Albert Davydov, all US nationals – are accused of running the racket, which allegedly creamed off millions from Medicare, a federal healthcare programme.
The arrest comes just seven months after Rae, from Preston, Lancashire, was fined £200,000 in the UK by the Solicitors Disciplinary Tribunal for his part in a £30m loans scandal centred in the Cayman Islands and dating back to 2012.
Four solicitors from a practice in Longridge, near Preston – Emmetts Solicitors, which later changed its name to Ashton Fox Solicitors – were struck off by the same tribunal.
Rae, who was not a solicitor but chief executive of the law firm, and another man who was a consultant, were both hit with large financial penalties and banned from working in the legal profession.
The case in the US centres on an alleged fraud where Rae’s three other defendants are accused of setting up dozens of companies to provide orthotics, such as knee, wrist, back, shoulder and ankle braces to elderly patients on the government’s Medicare programme.
The Federal Indictment relating to Rae and his alleged fellow conspirators contains a number of counts.
In Count One it says Rae was “a British citizen who owned Cargill Consulting Limited, a shell company with a bank account located in Hong Kong, China, which was used to launder money”.
In Count Eight, Rae and Williamsky are accused of conspiring together to transfer funds in seven wire payments from New Jersey to Hong Kong “knowing that the funds involved represented the proceeds of some form of unlawful activity.” It also alleges that they knew the transfers were to “disguise the nature, source, location, ownership and control of the proceeds of specified unlawful activity, that is health care fraud.”
The purpose of the transfers was “to hide the proceeds fraudulently obtained from Medicare”. Rae is accused of investing the cash in real estate abroad.
In Count Nine, it is alleged Rae used a cover story that he was investing some of the cash in a movie business.
US Attorney Craig Carpenito has revealed that, if convicted, all the defendants will be ordered to forfeit all property gained from the fraud.