European Stars and Stripes (Newspaper) - July 10, 1991, Darmstadt, Hesse                                Page 4 a the stars and stripes wednesday july 10, 1991 i in $1 billion medical fraud los Angeles apr a Federal indictment charges 12 people with submitting $1 billion in phony medical claims in what a Federal official called the biggest medical insurance fraud Case in u.$. History. The 175-count indictment alleges that soviet immigrants Michael Smushkevich 44, and his brother David 41, operated the fraud ring with a Mobile diagnostic testing service and clinics throughout Southern California. The operation submitted about $1 billion in fraudulent claims to about 1,400 California insurance companies and netted More than $50 million in payments the indictment says. A i can assure you that this is the largest fraud Case of any Type Ever worked by the inspection service a David Smith head of the postal inspection service in los Angeles told a news conference monday. The defendants allegedly solicited customers by sending diagnostic testing vans to locations such As health clubs and by a Telephone solicitation operation run by Boris Vaskov 41, another soviet citizen indicted in the Case. The defendants promised customers medical exams and tests for free or at nominal Cost. In turn patients assigned to the labs and clinics All rights to insurance payments said . Attorney Lourdes g. Baird. Bills then were submitted falsely claiming that the patients had been ill or injured Baird said. The defendants used Many corporate and fictitious business names and taxpayer identification numbers to mislead the insurance companies the indictment says. When suspicious insurers slopped payments the ring substituted new names and social Security numbers on claims forms and resubmitted them. The Mobile service and clinics operated in the Southern California cities of los Angeles Escondido Oceanside san Diego san Dimas Santa Ana Stanton Torrance Tustin and Vista. The indictment capped a five year investigation by Federal state and local agencies. In 1988, investigators raided 26 labs and clinics seizing 10 million documents. But the ring simply moved to Tijuana Mexico and continued Billing insurers assistant . Attorney Lee Michaelson said. Billings averaged $7,000 to $10,000 per patient Michaelson said. Indictments handed up last month in the Case contained mail fraud and conspiracy charges. Mondays indictment added charges of wire fraud theft of government property interstate and foreign transportation of property obtained by fraud passport fraud Money laundering and racketeering. Michael Smushkevich a former los Angeles resident has been arrested. If convicted of All counts he could face a maximum prison term of 1,980 years and More than $156 million in fines. David Smushkevich a fugitive from parole related to a 1987 conviction on medicare Kickback charges is in custody in the Netherlands and awaiting extradition on the new charges Baird said. If convicted of All counts he would face a maximum 675 years in prison and More than $124 million in fines. The remaining defendants including the Mushke Viches wives would face sentences upon conviction of at least 210 years in prison and $107 million in fines each Baird said. Tender Loving care Mountain Gorilla snickers holds on tightly to her baby which was born thursday at the Philadelphia zoo zookeepers will choose a name for the baby once its sex is determined. They think the baby is a  Leader to help Black Church raise funds Memphis Tenn. A a Black Church has invited former Kun flux klan Leader David Duke to speak at a fundraiser for an inner City recreation Center. Duke a Louisiana stale representative and gubernatorial candidate said he had agreed to speak july 19 at the event sponsored Duke by the Savior s Temple of the pentecostal holiness Church. The fund Raiser is being organized by Jimmy Boyd manager of a Low Power television station that broadcasts to parts of Memphis. Quot i had seen David Duke on to a Boyd said. A i tailed to him and some of his people. I believe he has a  Duke said he plans to speak on welfare Reform drug abuse and traditional family values. A we need to get Lazy people off the welfare Rolls a he said from Baton Rouge la. Quot there Are people who abuse welfare who arc White and who Are  Brenda Bell wife of the Rev. Douglas Bell pastor of Savior s Temple said she believes that Duke has moderated his political views. A we re going on the basis that he has reformed a she said a if we Are going to be christians we be got to act like  Duke s expenses will be covered and a bodyguard will be provided Boyd said. Tickets will Cost $22, Boyd said. Duke 41, is a Republican candidate for Louisiana governor. He received 44 percent of the vote in 1990 in an unsuccessful run for a . Senate seat. He is a former Leader of a Kun flux klan faction in Louisiana and a founder of an organization called the National association for the advancement of White people. Lance Hill director of the Louisiana coalition against racism and nazism said Duke has been working for years on moderating his Public image. A nothing has changed a Hill said. A Duke has manufactured a new image to fit his political ambitions. He is using this Black Church in a cynical  says Navy poorly monitored ship contracts Washington a the Navy a failure to closely Monitor ship building contracts at Bath Iron works led to millions of dollars in improper charges says a congressional report released monday. The report by the general accounting office Congress non partisan investigative Branch reviewed How the Navy handled a whistle Blower s october 1989 allegation of improper charging on Cruiser and destroyer contracts by the company in Bath Maine. A even though the Navy a review of the allegations resulted in the return of several million dollars from big we believe its review was inadequate and that the True extent of the problems will never be known Quot the Gao report concluded. Quot the Navy did not do a rigorous Independent review and in several areas limited data makes a thorough accounting  in addition the Gao said the Navy Quot did not exercise proper stewardship of government funds Quot because it restructured the contract for the destroyer pro Gram without adequately justifying that the $57 million it was paying was fair and  Amtrak Engineer forgets station Stop pm thu la it pc t i i n r / a no. It a. A a. A South Kingstown . Apr an Amtrak Engineer failed to Stop at the Kingstown station on sunday leaving about 100 people stranded and taking some passengers beyond their destination. The Engineer s failure to Stop the Yankee Clipper is considered negligence Amtrak spokesman Howard Robertson said monday. He would not release the engineers name. A disciplinary action has not been determined a Robertson said. Engineers can be dismissed for such mistakes he said. The Boston to Washington train normally makes nine stops Robertson said. But the Engineer was used to operating an express that normally makes Only four stops he said. The Crew was tested for drugs at new Haven conn., but results were not Back he said. About 80 of the stranded Holiday travellers stayed at the station and were Able to catch another train nearly three hours later. Six people on Board the Clipper were forced to get off in new London conn., and then get on a northbound train that made a special Stop at Kingstown. Some of those stranded at Kingstown took it in stride. A a in be met a lot of Nice people and i m getting a lot of Reading done a banker Michael c. Wasserman said As he sat Reading the new York times. A after All when do you get a Chance to read the entire sunday times a Load of butter melts in train derailment Fountain City wis. Up a railway car caught fire Early monday and unleashed a River of melted butter after a Burlington Northern train derailed. A brakeman on the 81-car train was the Only person injured in the derailment. He was treated at a Hospital and released authorities said. Twenty eight cars jumped the tracks and six of them plunged into the Mississippi River. One of the six crashed into a Low boat and caused major damage authorities said. A officials Hud worried that the melted butter spilling from a burning refrigerated car would seep into the River and harm wildlife. But most of the flow was trapped in a drainage area. About 70 firefighters worked for More than 12 hours to bring burning cars under control but Otti cats said some of the cars would probably Burn until tuesday. None of the cars involved in the derailment was carrying hazardous materials said a1 Wiegold Burlington Northern director of Public affairs. But some of the undamaged cars had been carrying hazardous material Wiegold said. The cars involved in the derailment 200 Miles Northwest of Milwaukee were carrying lumber butter sugar plywood Wood chips and new automobiles. Firefighters from Fountain City and surrounding towns responded but Crews were forced to use army corps of engineers floating barges on the River because of the location of the wreck. The tracks run adjacent to the Mississippi River with a wetland on the other Side said Nate Sampson Buffalo county emergency government director. Authorities suspect a washed out Section of the track was responsible. The train was headed from St. Paul minn., to Chicago