Chutzpah: Convicted of Insurance Fraud Appeals to Avoid Going to Jail

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Tarek Abou-Khatwa appealed his conviction of a complex, multi-year insurance fraud scheme. He previously asked the court to delay the start of his incarceration pending the outcome of that appeal. On January 31, 2022, the court denied his request, explaining that Defendant’s appeal did not present a “close question” as to each count on which he was sentenced to prison.

In United States Of America v. Tarek Abou-Khatwa, Criminal No. 18-cr-67 (TSC), United States District Court, District of Columbia (February 4, 2022) Tarek’s multiple appeals in an attempt to avoid was again brought to the USDC.

Defendant filed an “Emergency Motion” with the USDC stating his intent to lodge a second appeal, this time challenging the court’s January 31 Order, and he requested that his self-surrender date be postponed pending the outcome of that new appeal.

Defendant’s conviction is presumed valid and he bears the burden of rebutting that presumption. 

Rather than immediately appeal the court’s January 31 Order, Defendant waited two days to again move for relief and then proposed an additional two-day briefing schedule. In short, Defendant’s concerns about his ability to obtain relief from the Circuit are a product of his own doing.

Accordingly, the court denied Defendant’s latest request to delay the start of his incarceration.

ZALMA OPINION

Tarek’s fraud must have been very successful since he has the funds to have lawyers bring multiple motions and appeals to avoid incarceration. The actions are a clear explication of the concept of “chutzpah” or unmitigated gall.  The USDOJ should consider determining what other crimes he was involved in that allows his the funds to support the multiple motions and appeals.

© 2022 – Barry Zalma

Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders.

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