Allied Health Head Charged In $87M Lease Fraud Scam

Law360, New York (September 2, 2010, 7:05 PM EDT) -- Government prosecutors have charged the founder and president of durable medical equipment manufacturer Allied Health Care Services Inc. with fraudulently obtaining more than $87 million from banks based on phony lease agreements.

Charles K. Schwartz was arrested Thursday by special agents of the FBI at Allied’s offices in Orange, N.J., according to U.S. Attorney Paul J. Fishman.

“The financial losses in this case are staggering,” said Michael B. Ward, special agent in charge of the FBI’s Newark division. “Based upon the amount and extent of alleged...
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