European Stars And Stripes (Newspaper) - January 24, 1986, Darmstadt, Hesse                                Page 6 the stars and stripes Friday january 24. 1986 Chicago court convicts 11 in 22-clinic medicaid fraud Chicago a eleven people including pharm. Cist and physicians were cd Vic cd of participating in a mail Reaid fraud that dispensed cough syrup to drug addicts and bilked inc suite out of almost s20 million it was announced wednesday pharmacists Morton Goldsmith and Vilo  were found Vilty of opt noting n fraud Hal Rosc Culores said involved 22 clinic pharmacies Selling sedatives and cough syrup with codeine to drug addicts in poor Chicago neighbourhoods. The iwo were convicted of the most serious of the charges operating a continuing criminal Enterprise which carries a penalty of 10 years to life in prison and a Tine up to si00.000. Goldsmith said to have been inc ringleader also was convicted of 86 counts of racketeering obstructing Justice perjury illegal drug  and mail fraud. Sblendorio who prosecutors said assisted Goldsmith also was convicted of 11 counts of racketeering illegal drug distribution and mail fraud. Five doctors three pharmacists two medical technicians and a Secretary were defendants in the trial which lasted two months. All of the defendants were found guilty of Racke leering which carries a penalty of up to 20 Yean in prison and a $25,000 Fine prosecutor said. Defendants besides golds Mith and Sblendorio were found guilty on various other of inc perjury illegal drug distribution and mail fraud counts. After the verdicts were read the jury heard argument on whether six defendants should be made to forfeit Mil Lions of dollars in assets and Rolls royces and Cadillac that prosecutors contend they accumulated from the Ille Gal activities. Prosecutors want Goldsmith to forfeit $10 million and a number of Bank accounts with unspecified assets and Sblendorio to give up s2.7 million in Cash and checks As Well As a hand in do convertible and three Cadillac. The jury deliberated five Days before reaching ils ver dict Laic tuesday. The verdict was announced in a packed courtroom by . District judge John f. Grady on wednesday. The prosecutors contended that 22 clinic pharmacies Alt operated by Goldsmiths consulting firm drug industries consultants int. Of North suburban Wilma tic illegally dispensed prescription drugs to addicts. What went on at the clinics was a scheme in which welfare recipients were sold Tus Slone. A codeine based cough syrup and Coriden a sedative said assistant . Attorney David j. Stetler. Together prosecutors said the drugs produce a heroin like High. In return for the or tight which were used to lure addicts o the snip houses Steiner said the defendants would conduct unnecessary blood or lung tests and write fake prescriptions which the addicts would throw away on their Way out the door so they could make fraudulent claims to medicaid in addition to Goldsmith 50, of so like and Sblendorio 42. Of Holcomb. Wis. Defendants included or. Edward g. Fortier of Lombard or. Jopha Campbell of Chicago or. Jaroslav Hurda s3, of Lagrange or. John Kita Ture of Pontiac Mich. Or. Jason Smith 36, of Chicago Wesley Yong 32, a pharmacist from san Jose Calif. Pamela Woolley 39, a medical technician from Chicago Bobby Peterson a medical technician from Chicago and Yancic Cohen a clinic Secretary accused of coordinating inc Ille Gal drug distribution. Emergency funds May be needed sometimes budget chief admits Washington a budget director James c. Miller Iii defending the new budget balancing Law against attacks from congressional critics has conceded that the administration might at times need extra Emer gency spending authority from Congress. Miller told the Senate budget committee wednesday int a proposal for additional funds to help the internal Revenue service process this year s lax returns will soon be on its Way to Capitol Hill even As inc administration is enforcing the first Al 1.7 billion in spending cuts under the Law. Administration officials have said that Al least another s200 million is needed for the irs in 19x6 id process tax returns a s Nui j whole Joi of Money Miller told reporters after his testimony. We Don t want to have this backlog of  Miller said the irs manpower shortage was not caused directly by the Grumm Rudman act which requires cams of Mure than 4 percent in most Federal programs an March i. Hirw Cvar. He said emergencies May arise under the Cramm i Idun cuts thai threaten crucial government serv ices. In i Host instances he said. Inc administration will seek vow Runi authority from Congress for additional spending or for the Power to move funds Between accounts. There i the possibility that some emergencies will be taken care of Rin a supplemental Money Bill Miller ice Ifird. Milter Etsu said president Reagan s 19h7 budget to be delivered to con Russ on feb. 4, would contain about �60 billion in cuts rather than the s50 billion he had earlier predicted to meet the Law s 1987 deficit target of si44 billion. Tic said that even with i he is 1.7 billion in new cuts the 1w budget deficit would still lop $200 billion. However. Miller said of the Gramm Ludmun timetable furl eliminating deficits. I think it will work he added i think it is an appropriate remedy for an ongoing  Milter in his first appearance before Congress since the new Law look effect spent most of his testimony defending the measure. At one Point he mentioned that he had t written the Law and that the administration was Juki trying to Curry ii Mil in ordering spending cuts. Do you want me to violate the a Miller Ai cd. Sen. Daniel p. Moynihan d-n.y-, Lold Miller we re rat trying to harass you. We gave you this  hut sen. Mark Andrews r-n.d., called the measure  and rep. Frank r. Lauin Borg d-nj., filled re an ill conceived  Miller Mayn Hun Miller reiterated the president s vow that no new taxes would be in the upcoming budget. Committee chairman Pete v. Dominici r-n.m., pro tested inc administration s opposition to any tax increases while supporting a lax overhaul Bill that while not raising net lax revenues would shift billions of dollars in taxes onto . Businesses. Its nol very logical Domenici said. Andrews chairman of the Senate subcommittee that oversees spending on transportation said he was Lold inc administration would ask Congress 10 approve $100 Mil lion in extra 1986 spending mostly for air traffic control Miller said he has not yet approved of such a requesting related action wednesday the chairman of the House budget committee said Reagan is Likely to seek an of � As "?.ani up exams in his budget proposal for1987 spending while seeking an 8 per cell increase in de sense appropriations. Speaking to about 1,000 political activists from United a .5f? local utom rep William Gray 111, a Masaid i he president is probably going to submit a budget next month that will look like this it will eliminate 20 lo30  not Only that he will probably ask for additional reductions in Domestic programs of 25 to 30 percent and then on lop of that he Wihnyk for an s percent increase i Pentagon spending Gray said. Stateside town clerk will run again despite guilty plea on pot charge Goshen i. Up five Days after pleading guilty to growing 1,500 marijuana plants tic Lawn clerk or Iolj Remote Mountain town of 170 people said she plans to run for office again. Goshen town clerk Anne Marie Zonzini was arrested in september after a police raid turned up is million in marijuana plants a dozen firearm and an Ami tank launcher. Turoni snid Tram Trie town offices that she tins Gath Rcd inc necessary signatures to run for office Ana said her name will be on the ballot Tor Lown clerk at town meeting Day in March. She is expected to be sentenced feb 18. Asked what would happen if she is sentenced to a lengthy jail term before the election Tontini said we re not worrying about hat right now and she declined further comment. On thursday she Ami her husband Pictro Zonzini. Pleaded guilty in Vermont District court to charges of cultivating marijuana. The two face up to five years in jail and tines of up to 110,000. Gov. Wallace asked to recall calendars ignoring King Holiday Montgomery Ala. A the Alabama legis lature has asked gov. George c. Wallace to recall 60,000 state calendars that ignore the slate Holiday honouring the Rev. Martin Luther King jr., but Wallace said it was t his responsibility. The Senate and House overwhelmingly approved a Reso Lution tuesday requesting the recall. Sen. Michael Fig ures 3 Democrat said the calendars make a statement to the world that Alabama does not want to recognize King who first gained attention As Leader of the Montgomery bus Boycott in 1955. I think it is symbolic and i think it is an attitude problem said sen. John Teague a so n Democrat. Wallace did not take part in any of the Montgomery rallies honouring King on the first Federal Observance of the King Holiday. Assistant slate finance director buddy Mitchell blamed the problem on a bureaucratic error caused by a slate personnel department memorandum thai omitted the King Holiday from the official list of 13 suite holidays Holdup note was just a blur to farsighted restaurant manager Royal Oak Mich