Wilmington – Attorney General Beau Biden today announced that the Delaware Department of Justice Securities Division has obtained an indictment charging a New Castle County man with theft, securities fraud, and tax evasion following its investigation of a scheme to defraud investors out of nearly one million dollars.  David Attarian, age 46, of Wilmington, who was indicted Monday by the New Castle County Grand Jury, was released on $260,000 unsecured bail following his arrest.

“We’ve acted to protect Delaware’s investors and enforce our Securities laws,” Biden said.  “I urge any investor who believes they may be a victim of investment fraud to contact our Investor Hotline at (302) 577-8424.”

The indictment charges Attarian with soliciting his victims on multiple occasions between October, 2006 and October, 2008.  In addition to 5 counts of Theft, the indictment charges Attarian with 5 counts of securities fraud, 5 counts of selling unregistered securities, and 3 counts of acting as an unregistered agent.  Delaware law prohibits misrepresentations in the sale of securities, requires that securities for sale in Delaware be registered with the State, and requires persons selling securities in Delaware to be properly licensed with the Attorney General’s Securities Division.  The indictment also charges Attarian with five counts of income tax evasion for failing to file an income tax return or pay state income taxes from 2006 through 2010 on more than $1.3 million dollars in taxable income.

The Attorney General’s Office, through its Securities Division, enforces the Delaware Securities Act, which regulates the sale of investment products and the activities of investment professionals in Delaware.  The Unit investigates and prosecutes securities fraud and licensing violations by investment brokers and advisers.  Delaware investors are encouraged to report suspected incidents of investment crime and fraud by calling the Attorney General’s Investor Hotline at (302) 577-8424.

The Delaware Department of Justice reminds the public that an indictment is merely an allegation and is not evidence of guilt.  Defendants are presumed innocent and are entitled to a jury trial at which the state bears the burden of proving each charge beyond a reasonable doubt.

            A booking image of Attarian

# # #

Wilmington – Prosecutors have obtained an indictment charging a central witness to a 2011 Wilmington homicide with perjury and lying to law enforcement after he recently recanted earlier statements he made about the crime to police and on the stand at trial.

Abdullah Talib-Din, aka Douglas Lum, of Wilmington, was shot multiple times on April 27, 2011 while standing on a sidewalk along the 2800 block of North Jefferson Street.  During the attack, the assailant also shot 35 year-old Antonio Smith of Wilmington, who died from his wound.  Based in part on Talib-Din’s statements to police as he recovered, 32 year-old Medford Holmes of Wilmington was charged with Murder, Attempted Murder, and firearms offenses.  A four week trial against Holmes, during which Talib-Din testified that Holmes was the shooter, resulted in a mistrial in October, 2012 after the jury failed to reach a verdict.

Following the mistrial prosecutors decided to retry Holmes and a new trial was set to take place this year.  However, Talib-Din now asserts that the shooter was not Holmes.  As a result, prosecutors were obligated to notify the defense of this new information and were ethically bound to withdraw the indictment against Holmes, which occurred on Friday, March 15.  Holmes, who had been incarcerated since his 2011 arrest, was subsequently released from custody.

Yesterday, the Delaware Department of Justice secured an indictment by the New Castle County Grand Jury against Abdullah Talib-Din, currently age 32, that charges him with one count of Perjury and five counts of Providing a False Statement to Law Enforcement for multiple statements he made, but now recants.

“The criminal justice system depends upon the good citizens of our State reporting crimes and following through with their civic duty to testify truthfully,” State Prosecutor Kathleen Jennings stated.  “The Department of Justice assists witnesses by guiding them through the process and by protecting them from intimidation through our witness protection program. When an individual lies to police or testifies falsely it undermines the foundation of our legal system.  Deliberately providing false information that thwarts our search for justice will result in prosecution.”

The Delaware Department of Justice reminds the public that an indictment is merely an allegation and is not evidence of guilt.  Defendants are presumed innocent and are entitled to a jury trial at which the state bears the burden of proving each charge beyond a reasonable doubt.

# # #

The Delaware Attorney General’s Office announced today that it is joining the
federal government, 14 states, and the District of Columbia in two whistleblower lawsuits in federal
district court against the drug manufacturer Wyeth. The suits allege that Wyeth knowingly failed to
report accurate pricing for its drugs Protonix Oral and Protonix IV and avoided paying hundreds of
millions of dollars in rebates due to the Medicaid Program.

Congress created the Medicaid Drug Rebate Program in order to ensure that Medicaid received
the benefit of the same discounts offered by drug manufacturers to large commercial customers in the
marketplace. Under the program, drug manufacturers of branded drugs are required to report certain
drug pricing information to the government, including the “Best Price” offered for their drugs, and to
pay rebates to state Medicaid programs based on those reported prices. The Medicaid Program is one
of the largest purchasers of drugs in the United States and the nation’s provider of health insurance to
the poor and the disabled.

Between 2000 and 2006, Wyeth offered steep discounts to thousands of hospitals nationwide
for Protonix Oral and Protonix IV, which belong to a class of drugs known as proton pump inhibitors
and are used to suppress stomach acid. These discounts were offered to hospitals under a bundled
pricing arrangement known as the Protonix Performance Agreement in order to gain access to the
lucrative retail outpatient market. Under the Protonix Performance Agreement, hospitals that placed
both products on their formularies and attained certain market share requirements were entitled to up to
a 94% discount off the list price of Protonix Oral and up to 80% off the list price of Protonix IV.
Although Wyeth was required under the Medicaid Drug Rebate Program to determine the effective
prices paid by hospitals under this arrangement and to pass along the lowest prices to state Medicaid
programs, it failed to do so and therefore avoided paying hundreds of millions of dollars to Medicaid in
rebates.

The Delaware Medicaid Fraud Control Unit played a significant role in the investigation of the
allegations, including subpoenaing hundreds of thousands of documents from Wyeth and coordinating
the review of those documents. Delawareans are urged to report suspected Medicaid fraud to the
Attorney General’s Medicaid Fraud Control Unit at (302) 577-5000.
# # #

Office remains committed to serving needs of victims and families indefinitely

Georgetown – Following the conviction and lifetime prison sentence for child rapist Earl Bradley, and after successfully defending that conviction on appeal to the Delaware Supreme Court, Attorney General Beau Biden announced today that he has decided to spare the victims who are represented by the remaining indictment against the former Lewes pediatrician by ending that case before it goes to trial.

“Our prosecution of this case has been guided by two goals – first, to make certain that Earl Bradley spends the rest of his life in prison, and second, to ensure that no victim be required to face him again and have to testify in court about the unspeakable crimes he committed against them,” Biden said.  “With his conviction and the Supreme Court’s decision this past September upholding his conviction and sentence of 14 life terms plus 164 years in prison we have ensured that he will never walk out of prison or be in a position to ever harm another child.”

Unlike the first trial against Bradley, which was based on an indictment secured from video evidence of his crimes, the remaining second indictment was based on disclosures that victims made to authorities during interviews at the state’s Child Advocacy Center.  As a result, a trial on these charges would require the young victims and their parents to take the stand and testify publicly, in the presence of Earl Bradley himself, about their abuse.  “We cannot expect or demand that they relive their pain and be victimized all over again,” Biden continued.

“Because Bradley has already received the maximum punishment available under the law – multiple life sentences without the possibility of probation – we have decided that ending the remaining case by withdrawing the indictment is in the best interest of the victims and their families,” said Biden, who met with the victim families last week to discuss the case and his decision.

“While this ends the criminal prosecution of the case, our commitment to the victims and their families does not end,” Biden said.  “My office will ensure that the victims and their families have the support and services they need for as long as they need them.”

Read the April, 2010 media release that announced this indictment at http://www.attorneygeneral.delaware.gov/media/releases/2010/2ndindictmentbradley.pdf

Read the August, 2011 media release on Bradley’s sentencing to life imprisonment which followed his June, 2011 conviction at http://www.attorneygeneral.delaware.gov/media/releases/2011/sentencing8-26.pdf.

# # #

 Wilmington – Seven of the nation’s largest mortgage lenders will meet with Delaware homeowners who face the loss of their homes during statewide workshops next week, Attorney General Beau Biden announced today.  Scheduled for March 19 in Wilmington and March 20 in Dover and Milford, the workshops are offered to facilitate loan modifications, reduce foreclosures, and provide information to help residents stay in their homes and avoid foreclosure fraud. 

“Hundreds of homeowners have discussed repayment options with their lenders and addressed other questions about their mortgage loan during previous workshops we have held throughout the foreclosure crisis,” Attorney General Biden said.  “Even though the number of foreclosures is down, thousands of Delaware homeowners are behind in their mortgage payments and are at risk of foreclosure.  I urge homeowners who are worried about missing mortgage payments to attend and meet with their lender or a housing counselor and learn about the many services available to them.”

Since 2009, Biden’s office has sponsored more than two dozen workshops with lenders.  Homeowners who have missed mortgage payments, are facing foreclosure, or suspect foreclosure fraud can receive immediate on-site help from housing professionals. At each workshop, mortgage servicers, state employees, and HUD-certified housing counselors will discuss mortgage modifications, government homeowner programs, and foreclosure scams.

Walk-ins are encouraged. Workshops will take place as follows:

Tuesday, March 19
3:00 – 7:00 p.m.: Meetings with loan servicers
4:00 p.m.: Educational session
Location: Chase Center on the Riverfront, 815 Justison Street, Wilmington
Participating servicers: Bank of America, Citi, HSBC, JP Morgan Chase, M&T, Ocwen (GMAC), Wells Fargo

Wednesday, March 20
10:00 a.m. – 1:00 p.m.: Meetings with loan servicers
11:00 a.m.: Educational session
Location: Outlook at the Duncan Center, 500 West Loockerman Street, Dover
Participating servicers: Bank of America, Citi, JP Morgan Chase, Ocwen (GMAC), Wells Fargo

Wednesday, March 20
4:00 – 7:00 p.m.: Meetings with loan servicers
5:00 p.m.: Educational session
Location: Milford Senior Center, 111 Park Avenue, Milford
Participating servicers: Bank of America, Citi, JP Morgan Chase, Ocwen (GMAC), Wells Fargo

Homeowners who wish to meet on-site with their mortgage servicer should bring information about current income and details about their current mortgage, including loan number, monthly payment, interest rate, and loan balance.

            The workshops have been organized by the Attorney General’s office of foreclosure prevention and financial education.  Part of Biden’s Consumer Protection Unit, this office is a key point of contact for consumers and is equipped to advise homeowners on their rights at every stage of the foreclosure process and direct them to available resources and information they need to make educated decisions. 

Delawareans who have questions about the March 19 and 20 workshops should call the Attorney General’s Mortgage Hotline at 1-800-220-5424, e-mail mortgage@delaware.gov, or visit www.attorneygeneral.delaware.gov.

# # #