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Thursday 28 June 2018
National Health Care Fraud Takedown Results in Charges Against 601 Individuals Responsible for over $2 Billion in Fraud LossesRead the Press Release
WASHINGTON - Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced today the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.
Attorney General Sessions and Secretary Azar were joined in the announcement by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Deputy Director David L. Bowdich of the FBI, Assistant Administrator John Martin of the Drug Enforcement Administration (DEA), Deputy Inspector General Gary Cantrell of the HHS Office of Inspector General (OIG), Deputy Chief Eric Hylton of IRS Criminal Investigation (CI), Centers for Medicare and Medicaid Services (CMS) Deputy Administrator and Director of the Center for Program Integrity Alec Alexander and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS).
Today’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and State Medicaid Fraud Control Units.
The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.
“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions. “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history. This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”
“Every dollar recovered in this year’s operation represents not just a taxpayer’s hard-earned money—it’s a dollar that can go toward providing healthcare for Americans in need,” said HHS Secretary Azar. “This year’s Takedown Day is a significant accomplishment for the American people, and every public servant involved should be proud of their work.”
According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings. The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims. Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.
“Healthcare fraud touches every corner of the United States and not only costs taxpayers money, but also can have deadly consequences,” said FBI Deputy Director Bowdich. “Through investigations across the country, we have seen medical professionals putting greed above their patients’ well-being and trusted doctors fanning the flames of the opioid crisis. I want to thank the agents, analysts and our law enforcement partners in every field office who work each and every day to stop these criminals and hold them accountable for their actions.”
“DEA is committed to ending the opioid crisis occurring in our communities and preventing prescription drug misuse,” said DEA Assistant Administrator Martin. “DEA will continue to work with our partners every day to protect our citizens while ensuring that patients have adequate access to these critical medications.”
“This year’s operations, focusing on opioid-related schemes, spotlight the far-reaching impact of health care fraud,” said HHS Deputy Inspector General Cantrell. “Such crimes threaten the vitally important Medicare and Medicaid programs and the beneficiaries they serve. Though we have made significant progress in our fight against health care fraud; our efforts are not complete. We will continue to work with our partners to protect the health and safety of millions of Americans.”
“It takes a special kind of person to prey on the sick and vulnerable as happened in many of these health care fraud schemes,” said Deputy Chief Hylton. “Medical professionals and others callously placed individuals and vital healthcare services in harm’s way simply because of greed. IRS-CI special agents continue to work side-by-side with other federal, state and local law enforcement officers to uncover these schemes and hold these criminals accountable for their actions.”
“CMS makes it a top priority to protect the health and safety of millions of beneficiaries who depend on vital federal healthcare programs,” said Alec Alexander, deputy administrator and director of the Center for Program Integrity. “CMS’ Center for Program Integrity collaborates closely with our law enforcement partners to safeguard precious taxpayer dollars. Under Administrator Seema Verma, we will continue to strengthen this partnership with law enforcement in order to ensure the integrity and sustainability of these essential programs that serve millions of Americans.”
“Heath care fraud wounds our service members and veterans alike, as they rely upon and rightfully expect uncompromised care through the Department of Defense’s TRICARE Program,” said DCIS Director O’Reilly. “Investigations that culminated in enforcement actions over the past several days underscore the steadfast commitment of the Defense Criminal Investigative Service and our investigative partners to vigorously investigate fraud impacting TRICARE. We remain vigilant in our efforts to ensure the high standards of care our service members, military retirees, and their dependents deserve while safeguarding American taxpayer dollars.”
The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in 10 locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.
For the Strike Force locations, in the Southern District of Florida, 124 defendants were charged with offenses relating to their participation in various fraud schemes involving over $337 million in false billings for services including home health care and pharmacy fraud. In one case, an owner, medical director, and two employees of a sober living facility were charged with conspiracy to commit health care and wire fraud, substantive counts of health care fraud, and substantive counts of money laundering. The indictment alleges a scheme that illegally recruited patients, paid kickbacks, and defrauded health care benefit programs for widespread fraudulent urine testing. During the course of the fraudulent scheme, the facility submitted more than $106 million in claims for substance abuse treatment services.
In the Central District of California, 33 defendants were charged for their roles in schemes to defraud insurance programs out of more than $660 million. For example, one indictment in a compounding pharmacy fraud case alleges an attorney/marketer paid kickbacks and offered incentives such as prostitutes and expensive meals to two podiatrists in exchange for prescriptions written on pre-printed prescription pads, regardless of the medical need for the prescriptions. Once the prescriptions were filled, members of the conspiracy submitted approximately $250 million in fraudulent claims to federal, state, and private insurers for the compounded drugs.
In the Southern District of Texas, 48 individuals were charged in cases involving more than $291 million in alleged fraud. Among these defendants are a pharmacy chain owner, managing partner, and lead pharmacist charged with a drug and money laundering conspiracy. According to the indictment, the coconspirators used fraudulent prescriptions to fill bulk orders for over one million pills of hydrocodone and oxycodone, which the pharmacy, in turn, sold to drug couriers for millions of dollars. In the Northern District of Texas, a home health agency owner was arrested on a criminal complaint for a $2.6 million health care fraud scheme.
In the Eastern District of Michigan, 35 defendants face charges for their alleged roles in fraud, kickback, money laundering and drug diversion schemes involving approximately $197 million in false claims for services that were medically unnecessary or never rendered. In one case, a physician was charged in separate kickback conspiracies with two home health agency owners, which resulted in more than $12 million in fraudulent insurance billings.
In the Northern District of Illinois, 21 individuals were charged for various fraud schemes involving home health and dental services. These schemes involved allegedly over $54 million in fraudulent billing. One case alleges a home health fraud and kickback conspiracy, which resulted in more than $32 million paid by Medicare based on the fraudulent billings.
In the Eastern District of New York, 13 individuals were charged with participating in a variety of schemes including kickbacks, services not rendered, identity theft and money laundering involving over $38 million in fraudulent billings. For example, the owner of a Brooklyn ambulette company was charged in a $7 million conspiracy stemming from the alleged payment of kickbacks for the referral of patients, who subjected themselves to purported physical and occupational therapy and other services, and were transported by the ambulette company.
In the Middle District of Florida, 13 individuals were charged with participating in a variety of schemes involving more than $21 million in fraudulent billings. In one case, a physician and clinic owner were charged with a conspiracy to defraud Medicare of more than $2.8 million for fraudulent home health billings.
In the Southern Louisiana Strike Force, operating in the Middle and Eastern Districts of Louisiana as well as the Southern District of Mississippi, 42 defendants were charged in connection with health care fraud, drug diversion, and money laundering schemes involving more than $16 million in fraudulent billings. One case alleges that three pharmacy owners and a nurse practitioner conspired to unlawfully dispense controlled substances and defraud TRICARE and private insurance companies out of $12 million.
In the Corporate Strike Force, five defendants were charged in the Middle District of Tennessee with a kickback conspiracy at a durable medical equipment company, which allegedly resulted in more than $1 million in kickbacks and over $2.5 million in fraudulent billings to Medicare.
In addition to the Strike Force locations, today’s enforcement actions include cases and investigations brought by an additional 46 U.S. Attorney’s Offices, including the execution of search warrants in various investigations conducted by the Central and Northern Districts of California, Middle District of Florida, Southern District of Georgia, Western District of Kentucky, Eastern District of Michigan, Western District of North Carolina, Eastern and Western Districts of Texas, Eastern and Western Districts of Virginia, and Western District of Washington.
In the Northern and Southern Districts of Alabama, 15 defendants were charged for their roles in eight health care fraud schemes involving compounding pharmacy fraud and unlawful distribution of controlled substances.
In the Eastern District of California, four defendants were charged for their roles in two health care fraud schemes, one of which included forged prescriptions.
In the Southern District of California, seven defendants, including a physician, were charged for their roles in three health care fraud schemes and one scheme involving identity theft and services that were not rendered.
In the District of Colorado, a defendant was charged with health care fraud related to billings to Medicaid and Medicare.
In the District of Connecticut, three defendants, including two medical professionals, were charged for their roles in two schemes involving compounding drugs and unlawful distribution of Schedule II and IV controlled substances.
In the District of Delaware, a physician/owner of a pain management clinic was charged with unlawfully prescribing more than two million dosage units of Oxycodone products.
In the District of Columbia, a durable medical equipment company owner was charged with defrauding Medicaid of $9.8 million.
In the Northern District of Florida, four defendants were charged in a scheme to defraud TRICARE and other private insurance companies out of over $8 million for medically unnecessary compounded creams and pills.
In the Northern, Middle, and Southern Districts of Georgia, 12 defendants, including two physicians, were charged in nine health care fraud, drug diversion, or compounding pharmacy schemes involving over $13.5 million in fraudulent billings.
In the District of Idaho, three defendants, all of who are medical professionals, were charged for their roles in three separate fraud schemes involving controlled substances.
In the Central and Southern Districts of Illinois, seven defendants were charged in six separate schemes to defraud the Medicaid program.
In the Northern District of Indiana, eight defendants were charged in various health care fraud schemes to defraud both the Medicare and Medicaid programs.
In the Northern District of Iowa, two defendants – both medical professionals – were charged for their roles in two opioid-related schemes.
In the Districts of Kansas and the Northern and Western Districts of Oklahoma, 12 defendants, including four physicians, were charged in various unlawful distribution of controlled substances schemes. In the Western District of Oklahoma, one case marks the district’s first time charging unlawful distribution of controlled substances resulting in a death.
In the Eastern and Western Districts of Kentucky, 12 defendants, including five medical professionals, were charged in various schemes involving health care fraud, unlawful distribution of controlled substances, aggravated identity theft, and money laundering. One case involved the operation of two false-front medical clinics.
In the Districts of Maine and Vermont, two defendants were charged for their roles in two schemes to defraud various government programs including Medicare, Medicaid, and ones run by the HHS’ Administration for Children and Families.
In the District of Nebraska, seven defendants, including one physician, were charged in five separate schemes to defraud Medicare, Medicaid, and various HHS programs.
In the District of Nevada, four defendants, including three medical professionals were charged with conspiracies to commit health care fraud and distribute controlled substances.
In the District of New Jersey, eight defendants, including a New York doctor, an anesthesiology technologist for a Philadelphia hospital, and the owner of a medical billing company, were charged for their roles in five schemes to defraud private insurance companies of over $16 million.
In the Southern District of New York, two defendants were charged in schemes involving health care fraud or drug diversion.
In the Middle District of North Carolina, two defendants were charged with a conspiracy to defraud Medicare out of over $4 million.
In the Southern District of Ohio, three defendants – all medical professionals – were charged for their roles in two health care fraud schemes, one of which involved illegal drug distribution and kickbacks.
In the Eastern and Middle Districts of Pennsylvania, 12 defendants were charged for their roles in three drug diversion schemes.
In the Western District of Pennsylvania, four defendants – all physicians – were charged in various health care fraud and drug diversion schemes. One scheme involved 32,000 dosage units of buprenorphine.
In the District of Rhode Island, one defendant was charged for participating in a theft and aggravated identity theft scheme.
In the District of South Carolina, three defendants were charged for their separate roles in a conspiracy to possess with the intent to distribute fentanyl.
In the District of South Dakota, two defendants were charged in separate cases, one of which involved a scheme to defraud the Indian Health Service.
In the Middle District of Tennessee, 10 defendants were charged in two separate schemes, including a conspiracy to fraudulently obtain oxycodone.
In the Eastern District of Texas, two defendants were charged for their role in health care fraud schemes to defraud the Medicare and Medicaid programs.
In the District of Utah, two defendants were charged in two cases, one of which involved a $31 million scheme to defraud Medicare and Medicaid.
In the Western District of Virginia, eight defendants were charged for their alleged roles in health care fraud schemes. One $45 million scheme to defraud Medicaid involved falsification of documents in patient files.
In the Eastern District of Washington, a dentist and another individual were indicted for distributing and conspiring to distribute hydrocodone and tramadol without a legitimate medical purpose.
In the Eastern District of Wisconsin, three defendants were charged in a scheme involving the unlawful distribution of controlled substances and aggravated identity theft.
In addition, in the states of Arizona, Arkansas, California, Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Kansas, Louisiana, Maine, Michigan, Missouri, Mississippi, Nevada, New York, Oklahoma, Pennsylvania, Texas, Vermont, and Washington, 97 defendants have been charged with defrauding the Medicaid program out of over $27 million. These cases were investigated by each state’s respective Medicaid Fraud Control Units. In addition, the Medicaid Fraud Control Units of the states of California, District of Columbia, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Nevada, North Carolina, Ohio, Texas, Tennessee, and Virginia participated in the investigation of many of the federal cases discussed above.
The cases announced today are being prosecuted and investigated by U.S. Attorney’s Offices nationwide, along with Medicare Fraud Strike Force teams from the Criminal Division’s Fraud Section and from the U.S. Attorney’s Offices in the Southern District of Florida, Eastern District of Michigan, Eastern District of New York, Southern District of Texas, Central District of California, Eastern District of Louisiana, Northern District of Texas, Northern District of Illinois, Middle District of Louisiana, and the Middle District of Florida; and agents from the FBI, HHS-OIG, DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and state Medicaid Fraud Control Units.
A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Additional documents related to this announcement will shortly be available here:
https://www.justice.gov/opa/documents-and-resources-june-28-2018.
This operation also highlights the great work being done by the Department of Justice’s Civil Division. In the past fiscal year, the Department of Justice, including the Civil Division, has collectively won or negotiated over $2 billion in judgements and settlements related to matters alleging health care fraud.
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National Health Care Fraud Takedown Results in Charges Against 601 Individuals Responsible for over $2 Billion in Fraud LossesRead the Press Release
LAS VEGAS, Nev. – The largest ever health care fraud enforcement action by the Department of Justice includes four Nevada residents who were charged with conspiracy to distribute prescription opioids and health care fraud, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced today the national health care fraud takedown involved 601 charged defendants across 58 federal districts, including 165 doctors, nurses, and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.
“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions. “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history. This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”
“Prescription opioid-related health care fraud is a serious problem,” said U.S. Attorney Elieson. “Medical professionals hold a special place of trust in our society as healers, caregivers, and lifesavers. Doctors who violate their oath to ‘do no harm’ by illegally prescribing opioids for no medical necessity or file fraudulent health care bills will be held accountable.”
As part of the announcement, the District of Nevada filed charges against four individuals, including one doctor, with prescription opioid-related offenses. The cases have a combined loss of approximately $3.7 million.
- Robert D. Harvey, a surgical technician, Alejandro Incera and Leslie Kalyn, both nurse practitioners, were charged in a 29-count indictment. As alleged, Harvey and Incera conspired to use Dr. Horace Guerra’s pre-signed prescription pad to distribute Hydrocodone and Oxycodone to patients without a legitimate medical purpose in exchange for cash kickbacks. Incera and Kalyn allegedly prescribed Lidocaine, Modafinil, and Diclofenac Sodium to patients without a legitimate medical purpose, many of which were billed to Medicare/Medicaid by a pharmacy that filled the prescriptions. Harvey, Incera, and Kalyn were paid cash kickbacks for their patient referrals to the pharmacy. A jury trial is set for July 30, 2018.
- Dr. Horace P. Guerra was charged with conspiracy to distribute Oxycodone and Hydrocodone. As alleged, he provided pre-signed prescription pads to Robert Harvey and Alejandro Incera who wrote opioid prescriptions for patients without a legitimate medical purpose. His initial court appearance and plea hearing is set for July 25, 2018.
These charges are the result of joint investigations by the FBI, the Office of Inspector General of the U.S. Department of Health and Human Services, and the Nevada Attorney General’s Office Medicaid Fraud Control Unit. Assistant U.S. Attorney Kilby Macfadden is prosecuting these cases.
The Opioid Fraud and Abuse Detection Unit is a program that utilizes data to help combat the devastating opioid crisis. The District of Nevada was selected as one of 12 districts nationally to participate in the pilot program. The District of Nevada has assigned an experienced prosecutor that focuses solely on investigating and prosecuting health care fraud related to medical professionals who prescribe opioids, that unlawfully divert of dispense prescription opioids for illegitimate purposes.
A criminal information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Additional documents related to the national announcement are available here: https://www.justice.gov/opa/documents-and-resources-june-28-2018.
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National Health Care Fraud Takedown Results in Charges Against 601 Individuals Responsible for $2 Billion in Fraud LossesRead the Press Release
FRESNO, Calif. — Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced today the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses, and other licensed medical professionals for their alleged participation in health care fraud schemes involving approximately $2 billion in false billings. Of those charged, over 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS has initiated suspension actions against 587 providers, including doctors, nurses and pharmacists.
As part of today’s enforcement actions, U.S. Attorney for the Eastern District of California, McGregor W. Scott, announced four individuals facing health care fraud charges in Fresno.
Today’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, and State Medicaid Fraud Control Units.
The charges announced today aggressively target schemes billing Medicare, Medicaid, and TRICARE (a health insurance program for members and veterans of the armed forces and their families) for medically unnecessary prescription drugs and compounded medications that often were never even purchased or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.
“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions. “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history. This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”
“Every dollar recovered in this year’s operation represents not just a taxpayer’s hard-earned money—it’s a dollar that can go toward providing healthcare for Americans in need,” said HHS Secretary Azar. “This year’s Takedown Day is a significant accomplishment for the American people, and every public servant involved should be proud of their work.”
U.S. Attorney McGregor W. Scott said, “As today’s announcement highlights, we are working diligently with our law enforcement partners to hold accountable those who lie and cheat in an attempt to enrich themselves off of taxpayer dollars that are meant to help those in need. The U.S. Attorney’s Office for the Eastern District of California is committed to continuing these cooperative efforts and prosecuting health care fraud cases.”
According to court documents, the many defendants charged today allegedly participated in schemes to submit claims to Medicare, Medicaid and TRICARE for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare for services that were medically unnecessary or never performed. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over 2 billion in fraudulent billings. Because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims, aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.
The following cases in the Eastern District of California are part of today’s announcement:
Case no. 1:18-mj-100-sko
A criminal complaint filed in Fresno alleges that Hermine Hambartsumyan, 36, of Fresno, and Tem Phaphonh, 65, of Fresno, used the information of elderly Lao Medicare beneficiaries to submit false claims for durable medical equipment (DME) and physical therapy services. Phaphonh recruited the patients and gained their identification and insurance information. She then passed it to Hambartsumyan, who ran a series of DME businesses. The DME companies submitted claims to Medicare indicating that they had provided expensive orthotic braces to the beneficiaries. These claims were false because either the beneficiaries had received nothing or they had received inexpensive items for which Medicare does not reimburse. For example, one of the DME companies billed Medicare approximately $1,936 for orthotic braces including two knee braces and two ankle-foot braces for a Medicare beneficiary who had had his left leg amputated from the knee down and wore a prosthesis. The beneficiary had no knowledge of the DME company, never received the braces, and did not have a left foot or ankle on which to place an orthotic brace.
Hambartsumyan and Phaphonh also set up a health clinic in Porterville, California known as Villa Health Center LLC (VHC). Phaphonh recruited patients for this clinic for the purpose of submitting false claims, including false claims for physical therapy services. Beneficiaries received massages during their visits to VHC, and VHC billed Medicare for physical therapy services. The claims were false because Medicare requires such services be provided by trained physical or occupational therapists.
Case no. 1:18-mj-101-sko
A separate criminal complaint alleges that Gabriel Huerta, 38, of Fresno, and Natalie Corral, 38, of Fresno, were co-owners of a durable medical equipment business known as Central Valley Medical Supplies (CVMS) that falsely billed government health insurance programs for power wheelchair repairs. In many cases, CVMS did not perform the repairs, but even in the small amount of cases in which they were performed, the claims were false because the repairs were unnecessary and were not authorized by a physician, both of which are required by the programs. CVMS also billed for providing loaner wheelchairs to beneficiaries during the “repairs,” but no loaners were provided. From approximately January 2013 to June 2016, Medicare paid over $916,000 for false claims submitted under the direction of Huerta and Corral.
The Eastern District of California cases are the product of investigations by the Federal Bureau of Investigation, HHS OIG, and California Department of Health Care Services Investigation Branch. Assistant U.S. Attorney Michael G. Tierney is prosecuting the cases. A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
National Health Care Fraud Takedown Results in Charges Across the Country and in Southern District of GeorgiaRead the Press Release
SAVANNAH, GA: Attorney General Jeff Sessions and Department of Health and Human Services (“HHS”) Secretary Alex M. Azar III, announced today the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse. In the past fiscal year, the Department of Justice, including the Civil Division, has collectively won or negotiated over $2 billion in judgments and settlements related to matters alleging health care fraud.
Today’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and State Medicaid Fraud Control Units.
The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.
As part of this national enforcement action, the United States Attorney for the Southern District of Georgia announced the district’s largest takedown in history, including following public enforcement actions:
- A federal grand jury in Savannah indicted Dr. Frank H. Bynes, Jr on thirty-nine counts of unlawful distribution of controlled substances, including opioids, and nine counts of health care fraud. The indictment alleges that Bynes knowingly and intentionally distributed and dispensed, and caused to be distributed and dispensed, controlled substances that were not prescribed for a legitimate medical purpose and were not distributed and dispensed in the usual course of professional practice in a number of ways, including by prescribing inappropriate combinations of opioids and other controlled substances and engaging in unprofessional conduct with female patients. The indictment also alleges that health care programs paid for a number of substances improperly prescribed by Bynes during his “pill mill” operation.
- In Savannah, the United States charged Roderic Bain by criminal information with one count of making false statements relating to federal health care matters. According to the information, Bain fraudulently schemed from 2008 to 2018 to claim at least $1.5 million in reimbursements from Medicare for durable medical equipment that a physician never actually ordered.
- In Augusta, the United States charged Jonathan Austin by criminal information with one count of health care fraud and one count of making a false statement for use in determining Social Security Administration disability benefits. Austin allegedly created false and fraudulent documentation from 2015 to 2017 to make it appear as if he had been prescribed certain medications by a physician and as if he had filled and paid for those prescriptions at several local pharmacies. Austin claimed and received over $1.4 million in reimbursements from Tricare and Medicare for the purchase of these medications. However, as Austin knew, the prescriptions were never filled, and he had not incurred any of the claimed expenses. Additionally, the information alleges that Austin also submitted false documentation to the Social Security Administration in support of his application for disability insurance benefits.
- In Statesboro, the United States charged Evelyn Gay by criminal information with two counts of theft from a program receiving federal funds. According to the information, Gay fraudulently obtained and misapplied over $79,000 belonging to the Georgia Legal Services Program and Aging & Disability Advocacy Group, Inc., both of which receive federal funds through grant programs offered by the United States Department of Health and Human Services.
- In Statesboro, the United States charged Christopher Dubois by criminal information with one count of making false statements relating to federal health care matters. Allegedly, Dubois created false prescriptions in 2013 in connection with claims submitted to the Federal Employee Health Benefits Plan.
- In Brunswick, the United States charged Paula Padgett by criminal information with one count of false statement for use in determining a federal health care benefit. From 2013 to 2017, Padgett allegedly prepared and submitted certain “Medical Travel Refund Request” forms to the Office of Worker’s Compensation Programs under the Federal Employees’ Compensation Act when Padgett knew that certain expenses claimed on the forms had not been incurred.
- In Savannah, the United States charged Kristian Hall by criminal information with one count of identity theft. Hall allegedly used the name and Drug Enforcement Agency Registration Number of another individual without lawful authority to obtain controlled substances.
- Recently in Augusta, Dr. John Glenn pled guilty to conspiring to falsify documents pertaining to Department of Transportation mandated medical examinations of holders of commercial driver’s licenses in exchange for cash.
- Earlier this month in Augusta, a federal jury convicted Eastman resident Dr. Mark Griffis following a three-day trial of conspiring to falsify documents pertaining to Department of Transportation mandated medical examinations of holders of commercial driver’s licenses.
- The United States and the State of Georgia reached a $739,711.15 civil settlement with Antioch Medical Associates, which does business as Antioch Foot & Ankle Group, based out of Savannah, Georgia. Based on its investigation, the United States and State of Georgia contended that Antioch Medical Associates improperly billed Medicare and Medicaid for nail debridement, evaluation, management, and therapy services for which Antioch was not entitled to reimbursement.
- The United States also reached either civil settlements or consent judgments with Austin, Gay, Dubois, and Padgett.
- In Brunswick, the United States and the State of Georgia filed a civil lawsuit against Miracle Home Care, Inc., Miracle Adult Day Care, Inc., Miracle Transportation, Shashicka Tyre-Hill, and Darlene Jackson. As alleged in the complaint, the Defendants submitted thousands of false or fraudulent claims to Medicaid for non-emergency transportation and adult day health services that did not occur, and falsified thousands of records that Miracle submitted to the United States to cover up their false claims, resulting in more than $1 million in improper payments being made by Medicaid to the Defendants.
- The United States recently announced a civil settlement totaling $4.1 million with Effingham Health System, based out of Effingham County, Georgia, to resolve allegations of opioid diversion.
“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions. “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history. This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”
United States Attorney Bobby L. Christine said, “By working together with our professional and dedicated partners in law enforcement, this Office just executed the largest health care fraud takedown in the history of the Southern District of Georgia. Make no mistake: if you are a physician who thinks they are above the law, a provider who thinks they can take advantage of federally-funded health care programs, a beneficiary who defrauds the very programs focused on providing assistance to millions, or anyone who thinks they can divert dangerous narcotics, you can expect to be hearing from us.”
“Fraud perpetrated against the Medicaid program harms every citizen of Georgia,” said Georgia Attorney General Chris Carr. “We are committed to eliminating activity that drives up the costs of providing healthcare, and through the actions of the Medicaid Fraud Control Unit, we will continue to pursue both criminal and civil enforcement to further this objective. Combining our resources with those of our valuable federal partners is a powerful tool in the ongoing fight to protect our government funded programs.”
“Health care fraud costs taxpayers billions of dollars and places our most vulnerable citizens at risk for harm and neglect,” said Derrick L. Jackson, Special Agent in Charge for the U.S. Department of Health & Human Services Office of Inspector General. “Working with our law enforcement partners, we are dedicated to protecting patients and the federal health care programs intended to serve them.”
“Every tax paying citizen, especially those who use federally subsidized programs like Medicare, is a victim when providers are driven by personal greed,” said J.C. Hacker, Acting Special Agent in Charge (A/SAC) of the FBI Atlanta field office. “Improper billing inflates costs and causes unnecessary waste, and the FBI and its law enforcement partners are dedicated to weed out such abuse and hold those responsible accountable.”
“The 2018 National Health Care Fraud Takedown effort demonstrates that the Defense Criminal Investigative Service and our investigative partners are committed to protecting TRICARE, the U.S. military health care program from fraud and abuse,” said John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service-Southeast Field Office (DCIS). “As part of this nationwide joint operation, the DCIS Southeast Field Office contributed significant resources and efforts to achieve a successful resolution, while taking effective steps to combat widespread health care fraud and preserve the integrity of this vital Department of Defense (DoD) program.”
Robert J. Murphy, the Special Agent in Charge of the DEA’s Atlanta Field Division stated, “The dispensing of addictive prescription pain medication under the guise of a licensed medical professional’s care is not about the good of the community or an individual’s specific health needs; it is about the greed of those involved in fraudulent schemes and illegal overprescribing. DEA and its law enforcement partners will continue to expend its time, energy, and resources in an effort to stem the tide against the growing opioid epidemic. The spirited level of law enforcement cooperation and the prosecution by the U.S. Attorney’s Office made this investigation a success.”
“The U.S. Department of Labor, Office of Inspector General, aggressively investigates fraud against the Federal Employees’ Compensation Act program and will continue to work with our law enforcement partners to combat fraud against all Department of Labor’s benefits programs,” said Labor Inspector General Scott S. Dahl.
“We often find that people who try to defraud Social Security are also taking advantage of other government benefit programs,” said Social Security Acting Inspector General Gale Stallworth Stone. “That’s why we maintain strong partnerships with other Federal, State, and local agencies, because our responsibility to taxpayers doesn’t end at Social Security. SSA OIG will continue to work closely with our law enforcement partners to detect and prevent benefit fraud across the country.”
“Working with the Department and Federal Motor Carrier Safety Administration to prevent and detect fraudulent activities by medical professionals in the motor carrier industry is a top priority for our office and demonstrates our commitment to ensuring the safety of the traveling public on our Nation’s roadways,” stated the U.S. Department of Transportation Office of Inspector General.
“We hope the prosecution of Evelyn Gay offers a strong deterrent to others contemplating stealing funds from the Legal Services Corporation (“LSC”) that are intended to provide much needed legal services to an underprivileged population,” said Jeffrey E. Schanz, Inspector General of the LSC, Office of Inspector General. “We appreciate the leadership offered by the U.S Attorney’s Office for the Southern District of Georgia in prosecuting individuals who steal funds meant to serve the civil legal needs of the poor in our country.”
“Today’s fine work by the Department of Justice, OPM OIG criminal investigators, and our other law enforcement partners demonstrates our office’s commitment to combatting fraud and abuse in the Federal Employees Health Benefits Program,” said Norbert E. Vint, Acting Office of Personnel Management Inspector General (OPM-OIG). “We will continue to aggressively investigate and prosecute all individuals who seek to steal taxpayer dollars and drive up health care costs for federal employees and their families.”
“Much like law enforcement, medical personnel should be held to a higher standard,” said Everett Ragan, director, Chatham-Savannah Counter Narcotics Team (CNT). “Doctor Frank Bynes and Medical Assistant Kristian Hall chose to dishonor their medical oaths and in doing so, committed criminal acts. Their job is to be here to help our community; not hurt it.”
The cases announced today were investigated by special agents, task force officers, and diversion investigations from HHS-OIG, FBI, DCIS, DEA, DOL-OIG, DHS-OIG, DOT-OIG, LSC-OIG, and OPM-OIG; Investigator Kimberly Reinken-Creamer of the United States Attorney’s Office, Southern District of Georgia; and; Investigative Auditor Denise Colson and Investigator Kevin White, Georgia Attorney General’s Office.
The United States was represented by Assistant United States Attorneys J. Thomas Clarkson, Nancy Greenwood, Matthew A. Josephson, Karl Knoche, Bradford Patrick, and Jonathan Porter. The State of Georgia was represented by Assistant Attorney General James Mooney. For additional information, please call the United States Attorney’s Office at (912) 652- 4422.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent unless and until proven guilty. The claims resolved by civil settlements are allegations only; there has been no determination of liability. Investigations remain ongoing as to others arising out of these announced actions.
Additional documents related to this announcement will shortly be available here:
https://www.justice.gov/opa/documents-and-resources-june-28-2018.
Several of these investigations remain ongoing. If you have any information regarding any of the prosecutions announced today or any other information regarding possible health care fraud, please contact the U.S. Attorney’s Office at (912) 652-4422.
National Health Care Fraud Takedown Results in Charges Against 601 Individuals Responsible for over $2 Billion in Fraud LossesRead the Press Release
WASHINGTON - Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced today the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.
Attorney General Sessions and Secretary Azar were joined in the announcement by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Deputy Director David L. Bowdich of the FBI, Assistant Administrator John Martin of the Drug Enforcement Administration (DEA), Deputy Inspector General Gary Cantrell of the HHS Office of Inspector General (OIG), Deputy Chief Eric Hylton of IRS Criminal Investigation (CI), Centers for Medicare and Medicaid Services (CMS) Deputy Administrator and Director of the Center for Program Integrity Alec Alexander and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS).
Today’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and State Medicaid Fraud Control Units.
The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.
“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions. “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history. This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”
“Every dollar recovered in this year’s operation represents not just a taxpayer’s hard-earned money—it’s a dollar that can go toward providing healthcare for Americans in need,” said HHS Secretary Azar. “This year’s Takedown Day is a significant accomplishment for the American people, and every public servant involved should be proud of their work.”
According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings. The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims. Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.
In connection with the national healthcare fraud takedown, the Office of the United States Attorney for the District of Vermont announced that Jennifer Stocker, 41, of New Haven, Vermont, was charged this week. On June 26, 2018, the government filed a criminal information charging Stocker with making false statements in applications for benefits funded with monies including from the U.S. Department of Health and Human Services. The charge stems from multiple applications that Stocker submitted between March 2014 and December 2015 for child care, health care, and other benefits in which Stocker falsely concealed the fact that she was married. In a plea agreement also filed June 26, 2018, Stocker has agreed to plead guilty and pay restitution totaling $139,597.35. As part of the plea agreement, the parties have agreed to jointly recommend a sentence of a five year term of probation.
The United States Attorney emphasized that the charges in the information are merely accusations and that the defendant is presumed innocent unless and until she is proven guilty. If convicted, Stocker faces up to five years’ imprisonment and a fine of up to $250,000. The actual sentence would be determined by the judge overseeing the case with reference to federal sentencing guidelines.
The Department of Health and Human Services Office of Inspector General and the State of Vermont, Program Integrity Units for the Child Development Division, Economic Services Division, and the Office of Vermont Health Access investigated Stocker’s actions. Stocker is represented by Assistant Federal Public Defender Elizabeth Quinn. The prosecutor is Assistant U.S. Attorney Nicole Cate.
U.S. Attorney Christina Nolan praised the federal and state investigative partners for their diligent and thorough investigation of Stocker’s fraud. “We will continue to prioritize prosecution of those who fraudulently obtain public funds, working with our outstanding federal and state investigative partners. The U.S. Attorney’s Office is committed to deploying civil and criminal resources to protect taxpayer dollars and bring justice to those who steal from the treasury.”
“Those who engage in health care fraud are exploiting programs that provide care for millions of Americans,” said Phillip M. Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services Office of Inspector General. “This takedown sends a clear message that we will aggressively pursue criminals to ensure they are held accountable for their actions.”
The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in 10 locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.
A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Monroe County Man Sentenced to 7 ½ Years in Prison for Heroin Trafficking and Firearms OffenseRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that Daryl Trent, age 43, of East Stroudsburg, Pennsylvania, was sentenced on June 27, 2018, by Senior U.S. District Court Judge James M. Munley to 90 months’ imprisonment and three years’ supervised release for trafficking in heroin and possessing a firearm in furtherance of a drug trafficking crime.
According to United States Attorney David J. Freed, Trent previously admitted to committing the drug offense on March 16, 2015, and committing the gun offense on July 25, 2014. Both crimes occurred in Monroe County. Trent admitted to possessing with intent to distribute between 10 and 20 grams of heroin, which is approximately equivalent to between 400 and 800 retail bags of heroin.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police from Monroe County. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Mississippi man faces interstate stalking charges for five-year- long crime against Evansville area high schoolersRead the Press Release
Used various social media accounts to communicate vulgar and sexually explicit messages to young women
PRESS RELEASE
Evansville – United States Attorney Josh Minkler announced today federal charges against a Mississippi man for his role in a four-year-long interstate stalking case involving young women from the Evansville area. Orlando L. Webber, 43, Columbus, Mississippi, has been charged with five counts of interstate stalking.
“Stalking is no longer a face-to-face crime,” said Minkler. “Social media has made us all vulnerable to criminals who can stalk from anywhere in the world. Those who believe they can remain anonymous should plan on federal law enforcement knocking on their door.”
For over four years, Webber is alleged to have used the moniker “Lando” to stalk as many as 30 high school- aged young women using various social media outlets. Most victims recall receiving vulgar and sexually explicit communications from Webber when they were 15-16 years old. Each time a victim would receive the stalking messages, she would block him from their accounts, only to have Webber use a different account name to resume the stalking.
In April 2016, Victim 1 contacted the National Center for Missing and Exploited Children Cyber Tip Line to report that she and several other Evansville area high school girls were being harassed through their Twitter accounts. The messages included nude photographs of an adult male asking for sexual favors.
Federal law enforcement officials subpoenaed subscriber records and were able to locate Webber who lived with his mother in Columbus, Mississippi. FBI agents used facial recognition technology through the Mississippi Fusion Center to identify Webber.
This case was investigated by the Federal Bureau of Investigation and the Evansville Police Department.
Assistant United States Attorney Todd Shellenbarger, who is prosecuting this case for the government, said Webber faces up to five years’ imprisonment on each count if convicted.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
Webber will have his initial appearance at 3 p.m. today in the Evansville Federal Building.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who exploit children through the use of social media and to work closely with Project Safe Childhood. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 4.1 and 4.2
Minnesota Man Sentenced for Criminal ContemptRead the Press Release
United States Attorney Ron Parsons announced that a Moorehead, Minnesota, man convicted of Criminal Contempt pled guilty and was sentenced on June 26, 2018, by U.S. Magistrate Judge William D. Gerdes.
Jack Moore, age 30, was sentenced to time served equal to 2 days in custody and a special assessment to the Federal Crime Victims Fund in the amount of $10.
Moore was indicted by a federal grand jury on January 17, 2018. The conviction stemmed from an incident that occurred in December 2017, wherein Moore, who had been subpoenaed to testify as a witness in a federal criminal trial, failed to appear at the U.S. Courthouse in Aberdeen, South Dakota.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Middle Georgia Doctor and Clinic Staff Charged with Unlawful Prescribing of OpioidsRead the Press Release
An indictment is only an allegation of criminal conduct. All of the defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Dr. Thomas H. Sachy, age 54, Maureen Sachy, age 79, and Evelyne Ennis, age 51, of Gray, Georgia, and Brandy Hamilton (Birchfield), age 39, of Macon, Georgia are charged with Conspiracy to Distribute and Dispense Controlled Substances. Specifically, the defendants are accused of unlawfully dispensing and distributing Schedule II and Schedule IV controlled substance outside the usual course of professional practice and for no legitimate medical purpose. If convicted, each defendant faces a maximum sentence of twenty (20) years in prison, a $1,000,000.00 fine, or both.
Dr. Thomas Sachy is also charged with two counts of Unlawful Dispensation and Distribution of Controlled Substances Resulting in Death and Serious Bodily Injury. If convicted, he faces up to a maximum sentence of life in prison, a $1,000,000.00 fine, or both. Additionally, Dr. Thomas Sachy and Maureen Sachy are also charged with Maintaining a Drug Involved Premises, specifically, the Georgia Pain and Behavioral Medicine clinic located at 247 Lana Drive in Gray, Jones County, Georgia, as well as a Money Laundering Conspiracy. If convicted of either of those charges, Thomas and Maureen Sachy would each face up to twenty (20) years in prison, a $500,000.00 fine, or both.
“Dispensing opioids beyond what is medically necessary is not only unlawful, but has greatly contributed to what has been termed an opioid epidemic in our country. Our office will vigorously prosecute those who engage in this conduct, including, where appropriate, medical professionals,” stated United States Attorney Peeler.
This case is part of a National Health Care Fraud and Opioid Takedown announced by the Department of Justice on June 28, 2018. This case was investigated by the United States Drug Enforcement Agency (DEA) Tactical Diversion Squad-Atlanta Division Office, with assistance from the DEA Macon Regional Office, Department of Justice’s Document and Media Exploitation Program, Georgia Bureau of Investigation-Division of Forensic Services, Georgia Drug and Narcotic Agency, and the Georgia Department of Community Supervision. The case is being prosecuted on behalf of the United States by Assistant U.S. Attorney C. Shanelle Booker.
If you have any information related to this case or to any pharmaceutical drug abuse, please call the DEA Pharmaceutical Abuse Hotline at 1-877-RxAbuse or 1-877-792-2873. Questions concerning this release should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
DEA Tactical Diversion Squad-Atlanta Division Office has contacted the following medical centers and treatment programs in the Middle Georgia area who are now accepting patients in need of legitimate medical treatment:
Surrounding Area Pain Centers
- Hemlock Pain Center – Milledgeville
750 Cobb Street
Suite 150
Milledgeville, GA 31061
(478) 284-0670
M-Th 8:00 a.m. – 4:30 p.m.
Friday 8:00 a.m. – 12:00 p.m.
(potentially open every other Thursday)
- Hemlock Pain Center – Warner Robins
504 Osigian Blvd.
Warner Robins, GA 31088
(478) 333-6444
M-Th 8:00 a.m. – 5:00 p.m.
Friday 8:00 a.m. – 12:00 p.m.
- Hemlock Pain Center – Macon
101 Preston Court
Macon, GA 31210
(478) 745-2385
M-Th 8:00 a.m. – 4:30 p.m.
Friday 8:00 a.m. – 12:00 p.m.
- Pain Institute of Georgia
3356 Vineville Ave.
Macon, GA 31204
(478) 476-9247
M-Th 8:00 a.m. – 5:00 p.m.
Friday 9:00 a.m. – 1:00 p.m.
Surrounding Narcotic Treatment Programs for Patients in Withdrawal
- HealthQwest Frontiers, Inc – Macon
890 Northwoods Plaza
Macon, GA 31204
(478) 330 – 7164
M-F 5:45 a.m. – 2:00 p.m.
Saturday 7:00 a.m. – 9:00a.m.
24 hour crisis # 478.538.2780
- HealthQwest – Warner Robins
607 A Russell Parkway
Warner Robins, GA 31088
(478) 225-9860
M-F 5:45 a.m. – 2:00 p.m.
Saturday 7:30 a.m. – 9:30a.m.
24 hour crisis # 478.361.6411
- Georgia Treatment Services, LLC
6132 Hawkinsville Rd
Macon, Ga 31216
(478) 788-0066
M-F 6:00 a.m. to 1:00 p.m.,
Saturday 6:45 a.m. to 9:45 a.m.
24 hour crisis # 918.607.3473
- Hemlock Pain Center – Milledgeville
Mexican Woman Sentenced to Five Years in Federal Prison for Transporting HeroinRead the Press Release
On Thursday, June 28, 2018, Martha Z. Gamboa-Madrid, 49, was sentenced to five years in federal prison for possession with the intent to distribute heroin, United States Attorney Donald S. Boyce announced. Gamboa-Madrid was previously indicted on October 18, 2017.
The investigation began on June 12, 2017, when members of the Illinois State Police interdiction team made a traffic stop on Interstate 70, near Highland, Illinois. During the stop, the trooper obtained consent to search the car and located a concealed compartment containing packages totaling just over five kilograms of heroin.
Although she is a citizen of Mexico, Gamboa-Madrid was lawfully present in the United States at the time of the offense, having obtained a nonresident visitor visa. That visa has since been revoked as a result of her arrest in this case.
The investigation was conducted by agents from the Illinois State Police and its Metropolitan Enforcement Group of Southern Illinois. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Mexican National Indicted for Illegal Firearm Possession and Growing Marijuana on Public Forest LandRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Enrique Gomez-Perez, 30, of Mexico, charging him with manufacturing at least 100 marijuana plants, being an illegal alien in possession of a firearm, and depredation of public lands and resources, U.S. Attorney McGregor W. Scott announced.
According to court documents, law enforcement officers who were conducting aerial surveillance spotted an illegal marijuana grow in the area of Upper Backbone Creek in Shasta County, on land owned by the Bureau of Land Management. Law enforcement hiked into the area where they observed Gomez-Perez watering marijuana plants. They recovered a handgun, whose serial number was filed off and unidentifiable, from Gomez-Perez, and eradicated more than 800 plants from the area. At the site, water from a nearby stream had been diverted, many trees and other vegetation were cut to make room for the marijuana plants, and large piles of trash were stuffed under boulders and buried along the stream.
This case is the product of an investigation by the Bureau of Land Management, California Department of Fish and Wildlife, and California Department of Justice North State Marijuana Investigation Team. Assistant U.S. Attorneys David Spencer and Cameron Desmond are prosecuting the case.
If convicted, Gomez-Perez faces a mandatory minimum of five years in prison and a maximum statutory penalty of 40 years in prison and a $10 million fine for marijuana cultivation. He faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each of the other two counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Maysville Man Sentenced to 360 Months for Conspiracy to Distribute Heroin and Fentanyl Causing DeathRead the Press Release
COVINGTON, Ky. – Joshua D. Jett, 34, formerly of Maysville, Kentucky, was sentenced today to 360 months in federal prison, by United States District Judge David L. Bunning, for conspiracy to distribute heroin and fentanyl causing death.
Jett pled guilty, in June 2017, and admitted that he conspired with Kristian Bellamy and others to distribute heroin and fentanyl during the summer of 2016, and that drugs they distributed through that conspiracy caused a death on August 1, 2016. Jett and Bellamy regularly purchased what they believed to be heroin from Cincinnati and transported it back to Maysville, for use and distribution. They sold the drugs to several users on August 1, 2016; one of them, Amanda Hill-Borgmann, overdosed – on what was determined to be heroin and fentanyl – and died.
Under federal law, Jett must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for 5 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), jointly announced the sentence. The investigation was conducted by the DEA. The United States was represented by Assistant United States Attorney Tony Bracke.
Maryland Woman Arrested on Federal Charges Alleging She Defrauded D.C. Medicaid ProgramRead the Press Release
WASHINGTON – A Maryland woman who was employed as a personal care aide was arrested today on federal charges stemming from a scheme in which she allegedly submitted nearly $400,000 in false claims to the District of Columbia’s Medicaid program.
The announcement was made by U.S. Attorney Jessie K. Liu, Special Agent in Charge Matthew J. DeSarno, of the FBI Washington Field Office’s Criminal Division, District of Columbia Inspector General Daniel W. Lucas, and Special Agent in Charge Maureen R. Dixon, of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.
Hope Omone Falowo, 42, of Bowie, Md., was arrested on a criminal complaint charging her with health care fraud and making health care false statements. She made her first appearance in the U.S. District Court for the District of Columbia. She was released on personal recognizance pending a hearing set for July 19, 2018.
According to the complaint, Falowo was employed as a personal care aide from approximately January 2013 through March 2017. Under the Medicaid program, personal care aides perform services intended to assist Medicaid beneficiaries in carrying out the activities of daily living. These can include helping beneficiaries get in and out of bed, bathe, dress, eat out, take medication, and engage in toileting. To receive personal care services under Medicaid, a beneficiary must obtain a prescription from a doctor.
Last year, Falowo’s billing practices drew the attention of the District of Columbia Department of Health Care Finance, and that led to an investigation. According to the complaint, the investigation determined that Falowo submitted approximately $399,165 in false claims between 2013 and 2017. The complaint alleges that these claims fall into three categories: claims purporting that she provided services in excess of 24 hours in a given day; claims purporting that she provided services when she was in fact on international travel; and claims purporting that she provided services to Medicaid beneficiaries to whom she provided no care at all.
The charges in criminal complaints are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. The statutory maximum penalty for a charge of health care fraud is 10 years of incarceration. The statutory maximum for health care false statements is five years of incarceration. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The investigation into this matter was conducted by the FBI’s Washington Field Office, the District of Columbia Medicaid Fraud Control Unit, and the Office of Inspector General for the U.S. Department of Health and Human Services.
The case is being prosecuted by Trial Attorney Amy Markopoulos of the Justice Department’s Criminal Division, with assistance from Paralegal Specialist Robert Fishman.
The arrest this morning was among the results of the nation’s largest ever health care fraud enforcement action. Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced results of the nationwide effort earlier today. All told, the enforcement action involves 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics.
Maryland Man Charged with Two Armed Bank RobberiesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jacob Charles LaFrance, age 28, Thurmont, Maryland, was indicted by a federal grand jury on June 27, 2018, for the armed robbery of two banks.
According to United States Attorney David J. Freed, LaFrance is alleged to have committed the armed robberies of the PNC Bank in Fairfield, Adams County, on April 25, 2018 and the M&T Bank in Blue Ridge Summit, Franklin County, on May 3, 2018. In each robbery, LaFrance is alleged to have taken money in the custody and control of the bank and to have put lives in jeopardy through the use of a dangerous weapon.
The charges stem from an investigation conducted by the Federal Bureau of Investigation with the assistance of the Frederick County (MD) Sheriff’s Office, the Carroll Valley Borough Police, and the Washington Township Police Department. Assistant United States Attorney James T. Clancy is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for armed bank robbery is 25 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Manhattan U.S. Attorney Announces NYCHA Monitor Application ProcessRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that the Office is soliciting applications from qualified individuals to serve as Court-appointed monitor in connection with a proposed consent decree submitted to the Court for approval in the case of United States v. New York City Housing Authority, 18 Civ. 5213 (WHP).
Pursuant to the terms of the consent decree, the Government is to propose a monitor for approval by the Court. As set forth at greater length in the proposed consent decree, the monitor will be responsible for the remediation of extensive health and safety deficiencies in NYCHA housing, as well as oversight and reform of NYCHA management, controls, and operations.
The application and related materials, and instructions for submission, are available at https://www.justice.gov/usao-sdny/monitors-receivers-claims-administrators. Applications must be received by this Office by July 11, 2018.
The consent decree remains subject to review and approval by the Court.
Manchester Woman Sentenced in Methamphetamine Trafficking ConspiracyRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced that Sabrina Moss, 32, formerly of Manchester, New Hampshire, was sentenced to serve six years in federal prison for participating in a methamphetamine trafficking conspiracy.
According to court documents, in April of 2017, Sabrina Moss agreed with her brother Dustin Moss to enlist another person to “catch” a large package of methamphetamine to be purchased by Dustin Moss and mailed by a supplier in Las Vegas, Nevada. Sabrina Moss recruited another New Hampshire man, Brian O’Rourke, to receive the package, and agreed to pay him with a quantity of crack cocaine. On April 19, 2017, federal agents intercepted the mailed parcel, obtained and executed a search warrant, and discovered 12 pounds of 92 percent pure methamphetamine inside. Later that day, agents delivered the package, now containing “dummy” drugs, to O’Rourke. Agents then followed him to a location in Manchester where Dustin Moss was waiting to receive the package of drugs.
Both Dustin Moss and O’Rourke were arrested that day. They both have pleaded guilty to federal charges and are awaiting sentencing.
Sabrina Moss was arrested on November 20, 2017. She pleaded guilty on March 19, 2018.
“Although opioids remain a high priority for prosecution, methamphetamine also presents a significant risk to the community,” said U.S. Attorney Murray. “This addictive substance is appearing in the Granite State with greater frequency and it poses a serious danger to the health and safety of those who ingest it. We will continue to partner with the law enforcement community to identify and prosecute those who are distributing this very dangerous drug.”
“The U.S. Postal Inspection Service, along with our federal, state and local law enforcement partners, will continue to dedicate the resources necessary to combat drug trafficking,” said Acting Inspector in Charge Delany De Leon-Colon. “Today’s sentencing is a result of a coordinated effort to keep methamphetamine and other drugs out of our communities. When the U.S. Mail is used to transport illegal drugs, it is taken very seriously. The U.S. Postal Inspection Service works diligently to preserve the integrity of the mail by investigating and bringing to justice, those who use it illegally.”
“This sentence reflects DEA’s commitment to bring to justice those that distribute methamphetamine,” said DEA Special Agent in Charge Brian D. Boyle. “DEA and its local, state and federal law enforcement partners will do everything in our power to keep this highly addictive drug off the streets of New Hampshire. This investigation demonstrates the strength of collaborative law enforcement and our partnership with the U.S. Attorney’s Office to aggressively pursue anyone who traffics this poison.”
This case was investigated by the U.S. Postal Inspection Service and the DEA, and prosecuted by former Assistant United States Attorney William Morse and Assistant U.S. Attorney John S. Davis.
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Manchester Man Pleads Guilty to Bank RobberyRead the Press Release
CONCORD - Robert R. Costello, 28, of Manchester, pleaded guilty in federal court to bank robbery, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on December 14, 2016, Costello walked into a Citizens Bank in Manchester, New Hampshire, and told the teller to give him money, using words to the effect of, "I don't want to hurt anybody but I'm desperate and it could happen." The teller gave Costello a quantity of United States currency. Surveillance cameras captured images of the robbery, which were broadcast on the news and in social media. Following tips from a number of individuals, Manchester police were able to identify Costello, who was apprehended on December 20, 2016.
Costello is scheduled to be sentenced on October 11, 2018.
“Bank robberies are violent crimes that threaten the safety of our citizens.” said U.S. Attorney Murray. “We are committed to working with all of our law enforcement partners to combat crimes of violence, protect our citizens and improve the safety and security of our state.”
This matter was investigated by the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.
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Man Sentenced to 93 months of Imprisonment for Arson and Malicious Damage and Destruction Charges Related to Fires at Three U.S. Government PropertiesRead the Press Release
St. Thomas, USVI – Spencer Wayne Allen, 26, was sentenced today before District Court Judge Curtis V. Gomez to 93 months of imprisonment for his convictions of arson and malicious damage and destruction to federal property, United States Attorney Gretchen C.F. Shappert announced. Judge Gomez also sentenced Allen to 3 years of supervised released, 300 hours of community service, and a $300 special assessment.
According to the plea agreement filed with the court, on February 28, 2017, Allen maliciously damaged the U.S. Navy and Marine Recruitment Center in the Nisky Shopping Center on St. Thomas by means of fire, resulting in the Center’s complete destruction. Also on February 28, 2017, Allen damaged by fire two other properties belonging to the United States – the Ron de Lugo Federal Building and United States Courthouse and the U.S. Coast Guard Station.
The case was investigated by the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Department of Homeland Security Investigations (HSI), and the Naval Criminal Investigative Service (NCIS), with the assistance of the Virgin Islands Territory Emergency Management Agency (VITEMA), Virgin Islands Police Department, Virgin Islands Port Authority, the Virgin Islands Fire Service, and the Virginia Beach Fire Department Fire Investigations. The case was prosecuted by Assistant United States Attorneys Meredith J. Edwards and Everard E. Potter.Man Charged in Robbery of Brinks Armored TruckRead the Press Release
HAMMOND – Akeem Jackson, 29 years old, of Chicago, Illinois, was charged in U.S. District Court in a Criminal Complaint with one count of Hobbs Act Robbery, announced United States Attorney Thomas L. Kirsch II.
According to documents in the case, Akeem Jackson was charged in the robbery of a Brinks armored truck driver at gunpoint in Hammond, Indiana on April 28, 2018. Jackson and others stole approximately $600,000 cash. Jackson was previously employed by Brinks as an armored car driver but was fired in 2016. Jackson gave a statement to law enforcement admitting his role in the robbery.
U.S. Attorney Kirsch said, “Prosecuting violent crime is a top priority for the U.S. Attorney’s Office. If convicted, Mr. Jackson will face severe consequences. Shortly, I will hire additional Assistant U.S. Attorneys to focus on and increase violent crime prosecutions such as this one. I commend the FBI and Hammond Police Department for their work investigating this brazen robbery.”
The United States Attorney's Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case was investigated by the FBI GRIT Task Force and the Hammond Police Department and will be prosecuted by Assistant United States Attorneys Jennifer Chang and Thomas McGrath.
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Lower Brule Man Charged with Drug Charges and Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance, Possession with Intent to Distribute a Controlled Substance, and Possession of a Firearm by a Prohibited Person.
Thomas James Eagle Thunder, age 21, was indicted on June 12, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 26, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $750,000 fine, up to 9 years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that commencing on or about August 1, 2017, Eagle Thunder knowingly and intentionally combined, conspired, confederated, and agreed with others to distribute and to possess with intent to distribute marijuana, which is a Schedule I controlled substance. Eagle Thunder, on or about February 15, 2018, knowingly and intentionally possessed with intent to distribute marijuana. Lastly, the Indictment also alleges that Eagle Thunder, being an unlawful user of, and addicted to a controlled substance, knowingly received and possessed several firearms, which had been shipped and transported in interstate and foreign commerce.
The charges are merely accusations and Eagle Thunder is presumed innocent until and unless proven guilty.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Eagle Thunder was released on bond pending trial which has been set for August 21, 2018.
Loranger Man Indicted for Being a Felon in Possession of a FirearmRead the Press Release
U.S. Attorney Duane A. Evans announced that PHILLIP GUIDRY, age 48, a resident of Loranger, was charged today in a one count indictment by a Federal Grand Jury with being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).
According to the indictment, PHILLIP GUIDRY possessed on March 2, 2018, two pistols and three shotguns. PHILLIP GUIDRY had previously been convicted in Orleans Parish and in Tangipahoa Parish for state-law felonies.
If convicted, PHILLIP GUIDRY faces up to 10 years imprisonment, a fine of up to $250,000, and up to three years of supervised release following any term of imprisonment.
U. S. Attorney Duane A. Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Louisiana State Police. The prosecution is being handled by Assistant United States Attorney David Howard Sinkman.
Logan County Man Sentenced for Attempting to Have Sex with Minor 'Daughters' in Exchange for Handyman Work Through CraigslistRead the Press Release
COLUMBUS, Ohio – Joseph L. Converse, 47, of Lakeview, Ohio, was sentenced in U.S. District Court to 188 months in prison and 15 years of supervised release for attempting to coerce and entice a minor.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Dallas Baldwin and other members of the Sheriff’s Internet Crimes Against Children Task Force announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, in November 2017, a detective with the Franklin County Internet Crimes Against Children Task Force observed a posting on Craigslist titled “handyman for daughter or daughters.”
The post indicated the person placing the advertisement – Converse – was seeking to spend time with an underage female in exchange for car or house repairs, and that the time spent with a “daughter” would involve sexual activity. Specifically, the ad stated that “bareback must be okay” and that a “good faith bj” was required before any handyman work started.
The undercover detective responded, posing as the father of a school-aged female in Columbus needing brake work done on his car.
During their conversation, Converse repeatedly asked for pictures of the 14-year-old girl. When the detective said he had a four-wheel drive vehicle, Converse said he normally receives both vaginal and anal after such a job. When the detective expressed concern about Converse’s demand for anal and the possibility of pregnancy during vaginal intercourse, Converse said, “There is anal to [sic] for 4w drive” and asked if the child was a virgin.
After talking, Converse eventually traveled to Columbus to engage in sex acts with the fictitious minor. He was arrested upon arrival. Investigators discovered his phone, condoms, baby oil and baby lotion in his vehicle. Examination of the phone revealed all of the email and text conversations between Converse and the detective, as well as a Kik conversation in which Converse discussed performing plumbing work in exchange for sex with a 16-year-old girl.
Converse pleaded guilty in February 2018.
U.S. Attorney Glassman commended the cooperative investigation by the Franklin County ICAC, as well as Assistant United States Attorneys Heather A. Hill and Jonathan J.C. Grey, who are representing the United States in this case.
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Little Rock Heroin and Cocaine Dealer Receives 30-Year Prison Sentence, Will Forfeit More Than $170,000Read the Press Release
LITTLE ROCK—Aaron “Black” Clark, who sold kilograms of heroin and cocaine out of his west Little Rock home, will spend the next 30 years in federal prison. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the FBI, announced the sentencing of Clark, 35, of Little Rock, on Thursday morning. Clark was arrested on May 24, 2017, as part of a major operation targeting several drug-trafficking organizations in central Arkansas.
United States District Court Judge James M. Moody sentenced Clark to 360 months’ imprisonment to be followed by five years of supervised release after Clark pleaded guilty to conspiracy to possess with intent to distribute heroin, count one of a 67-count indictment that charged 33 people in Clark’s drug-trafficking organization. In addition to the prison sentence, Clark forfeited $174,034 in cash, a diamond necklace, a Toyota Avalon and Dodge Charger, and seven firearms.
Clark, who has previously been convicted of federal drug crimes in Texas, pleaded guilty on October 26, 2017. At that hearing, Clark admitted that he was selling cocaine and heroin to dozens of people in the Little Rock area. Clark’s primary supplier was from El Paso, Texas. Based on multiple wiretaps on Clark’s phones, law enforcement agents were aware that he was obtaining and selling kilograms of cocaine for $31,500 each, as well as large quantities of heroin, marijuana, and methamphetamine.
“Little Rock is a safer place with Aaron Clark in federal prison for 30 years,” Hiland said. “This repeat criminal made a living selling deadly drugs on our streets and spreading his toxic, destructive influence within our community. Removing violent, repeat offenders like Clark will continue to be a priority for this office in the coming weeks and months, and criminals who want to engage in similar activities should look at today’s sentence and know similar consequences await you.”
“It is our goal to maximize the intensity of the pressure applied to repeat criminals in our district,” Hiland continued. “To that end, this office saw a record 73 indictments returned last month by a federal grand jury. That number is a very tangible reflection of our efforts to partner with local law enforcement to combat pervasive criminal activity in our hometown communities by unapologetically seeking the removal of repeat criminals to federal prison.”
On November 17, 2016, agents executed a search warrant at Clark’s west Little Rock residence. Agents seized more than $115,000 cash, jewelry, the two vehicles, 170 grams of heroin, a marijuana grow operation, and six firearms. Clark was not arrested at that time, and agents discovered that he continued to distribute narcotics.
After the November search warrant, Clark moved to a new west Little Rock residence. In May 2017, agents executed a search warrant at the new residence, as well as at an apartment Clark used to distribute narcotics. At these residences, agents seized another $55,353 cash, 1.7 kilograms of methamphetamine, marijuana, drug paraphernalia, a handgun, assorted ammunition, and a press used to package narcotics.
“Today’s sentencing of Clark illustrates the FBI’s commitment to work with our partners to prosecute individuals who sell dangerous drugs in our communities,” FBI SAC Upchurch said. “We extend our gratitude to the United States Attorney’s Office for the Eastern District of Arkansas and the FBI’s MET Rock Task Force which includes our law enforcement partners at the Little Rock Police Department and North Little Rock Police Department.”
In addition to Clark, five other defendants from his indictment have pleaded guilty and been sentenced. Four others are awaiting sentencing following their guilty pleas, and one defendant has a change of plea hearing scheduled. Twenty-two defendants are facing a pending trial on August 20, 2018. Hector Soto, believed to be Clark’s El Paso supplier, remains a fugitive.
The primary investigation into Clark was conducted by FBI’s Met Rock Task Force, in coordination with the Little Rock Police Department and North Little Rock Police Department. Assistant United States Attorney Benecia Moore is prosecuting the case.
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This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available on-line at
http://www.justice.gov/edarTwitter:
@EDARNEWSLewiston Resident Arrested in New York and Charged with Crack TraffickingRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Everton Jones, 22, currently residing in Lewiston, was arrested in New York and charged today by criminal complaint in U.S. District Court with distribution of cocaine base, commonly known as “crack.”
According to the complaint, the charge arose from an investigation into crack trafficking in Lewiston.
If convicted, the defendant faces up to 20 years in prison and a $1,000,000 fine.
The investigation is being conducted by the FBI’s Southern Maine Gang Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the U.S. Drug Enforcement Administration; the Maine State Police; and the Lewiston Police Department.
A criminal complaint is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
Leslie Acosta Sentenced to 7 Months in Federal Prison for Participation in Conspiracy that Looted Money from NonprofitRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Leslie Acosta, former Pennsylvania State Representative and former employee of the Juniata Community Mental Health Clinic, was sentenced today to seven months in federal prison by U.S. District Court Judge Joel H. Slomsky. Acosta was also ordered to pay $623,000 in restitution.
Acosta had previously pled guilty to conspiracy to commit money laundering. The charge arose out of Acosta’s agreement to cash unearned checks from the Clinic and give the cash to Renee Tartaglione, who at the time was President of the Board of Directors of the Clinic. Acosta agreed to cooperate with the government in its investigation of Tartaglione and testified at Tartaglione’s federal criminal trial in 2017.
“Today’s sentence recognizes the need to punish those who help others steal money from nonprofit corporations,” said U.S. Attorney McSwain. “It reinforces the important principle that nonprofit organizations, especially those that provide services to the disadvantaged, exist for the people they serve and not for the personal enrichment of their leaders. Our office will continue to aggressively pursue those who participate in schemes to steal from nonprofits.”
The case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service. It is being prosecuted by Assistant U.S. Attorney Bea L. Witzleben and Department of Justice Trial Attorney Peter Halpern.
Lawrence, Massachusetts Man Sentenced on Firearm ChargesRead the Press Release
CONCORD – United States attorney Scott W. Murray announced today that Yoelfi Feliz, 21, of Lawrence, Massachusetts was sentenced to 70 months in federal prison for obtaining firearms in exchange for drugs.
According to court documents and statements made in court, from March 8, 2017, through April 13, 2017, Feliz conspired with another individual to purchase eight firearms in exchange for drugs and to pay down a drug debt. The co-conspirator claimed that he started purchasing firearms for Feliz because he owed Feliz money for heroin that Feliz had “fronted” him. According to the co-conspirator, he ran up a drug debt of approximately $2000. The co-conspirator stated that Feliz asked him to buy firearms as a way to pay off his debt. One of the firearms was recovered after a juvenile in Lawrence, Massachusetts shot himself in the hand with the firearm.
Feliz previously pleaded guilty to one count of conspiracy to make a false statement during the acquisition of a firearm and one count of possession of a firearm in furtherance of a drug trafficking crime.
“Placing guns in the hands of drug traffickers endangers everyone,” said U.S. Attorney Murray. “We will work closely with all of our law enforcement partners to prevent the illegal sale of firearms and fully prosecute those who commit crimes involving firearms.”
“When individuals illegally obtain numerous firearms, it is likely they will end up in the hands of criminals which puts the public's safety at risk. ATF is focused on using every investigative technique available to remove all illegal firearms from our streets in order to keep our communities safe,” said Mickey Leadingham Special Agent in Charge, ATF Boston Field Division.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Lawrence, Massachusetts Police Department. Assistant United States Attorney Debra M. Walsh and Assistant United States Attorney Charles Rombeau prosecuted the case.
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Lafourche Parish Arrest Leads to Federal Grand Jury Indictment of a Prohibited Person Possessing a FirearmRead the Press Release
U.S. Attorney Duane A. Evans announced that SAMUEL RAY LUCK, age 40, a resident of Raceland, Louisiana, was charged in a one-count indictment by a Federal Grand Jury for possessing a firearm after having been convicted of a misdemeanor crime of domestic violence.
On January 21, 2005, LUCK was convicted in McLean County, Kentucky for a violation of Kentucky Revised Statue (KRS) 508.030, Assault in the Fourth Degree, a misdemeanor crime of domestic violence.
If convicted, LUCK faces a maximum term of imprisonment of ten (10) years, a fine of $250,000.00, and three (3) years of supervised release following any term of imprisonment.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lafourche Parish Sheriff’s Office. It is being prosecuted by the Strike Force/Violent Crimes Unit of the U.S. Attorney’s Office.
Judge Sentences New York Man to 10 Years in Prison for Illegally Possessing Guns and HeroinRead the Press Release
PITTSBURGH, PA – A former resident of Brooklyn, New York, has been sentenced in federal court to 10 years of imprisonment and eight years of supervised release on his convictions for conspiracy to distribute 100 grams or more of heroin and for possession of a firearm by a convicted felon, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Nashawn Williams, 35, currently incarcerated, but who last resided in Brooklyn, New York.
According to information presented to the court, Williams acted as a supplier in a drug trafficking organization that distributed heroin in Pittsburgh. Upon execution of a search warrant, agents found Williams to be in possession of over 100 grams of heroin and firearms. Federal law prohibits felons from possessing firearms, and Williams has a prior felony conviction for conspiracy to distribute 50 grams or more of cocaine. He was also on supervised release for the prior offense at the time of the current offense.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration for the investigation leading to the successful prosecution of Williams.
Joint Law Enforcement Action Clears Entrances to Federal Facility in SW PortlandRead the Press Release
PORTLAND, Ore. – At approximately 5:30am today, federal law enforcement officers arrived at the federal building at 4310 SW Macadam Avenue in Portland and dismantled obstacles blocking access to the facility.
“Freedom of speech and peaceful assembly are sacred rights enjoyed by all Americans and the U.S. Attorney’s Office is committed to protecting these rights. However, when individuals break the law by blocking employees and the public from accessing a federal facility, federal law enforcement will respond to restore normal business operations,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
“Federal law enforcement officers were able to effectively remove the demonstrators and blockades from in front of the entrances to the facility,” said L. Eric Patterson, Director of the Federal Protective Service. “We will continue to maintain a presence at the facility to ensure a safe reopening and enable employees and the public to safely conduct business at the facility.”
Seven demonstrators were taken into federal custody for failing to comply with directions given by law enforcement officers and blocking the building’s entrances. These violations are Class C misdemeanors under 41 C.F.R. § 102. The demonstrators were temporarily detained and cited by the Federal Protective Service, and then released. All were ordered to appear on the charges before a federal magistrate judge on September 7, 2018, in Portland.
An eighth individual was temporarily detained by federal law enforcement officers after approaching a police line in his vehicle. Shortly after the law enforcement operation began, the individual was spotted in a black SUV traveling near the federal facility. After spotting what appeared to be two rifles in the backseat of the vehicle, officers made contact with the individual and detained him without incident. Three airsoft guns were found in the vehicle. The individual was later released without being charged.
Beginning on June 25, 2018, demonstrators were issued four written and one verbal warning stating that it is unlawful to obstruct a federal facility. 41 C.F.R. § 102-74.390 and § 102-74.450 prohibit the obstruction of entrances, foyers, lobbies, corridors, offices, and parking lots of federal facilities.
Federal law does not restrict demonstrators from gathering on non-federal property adjacent to a federal facility. However, demonstrators are encouraged to review and adhere to all applicable state laws and local regulations.
FPS Officers Clear Entrance to Federal Facility FPS Officers Assemble Prior to Reopening Federal Facility FPS Officers Assemble Prior to Reopening Federal Facility FPS Officers Assemble Prior to Reopening Federal Facility FPS Officers Separate Demonstrators Connected at Wrist by "Sleeping Dragon" Device FPS Officers Separate Demonstrators Connected at Wrist by "Sleeping Dragon" Device FPS Officer Disassembles Demonstration Debris FPS Officers Clear Entrance to Federal Facility Airsoft Guns Found in VehicleJeanerette man pleads guilty to resisting, attacking, threatening Chitimacha tribal police officerRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that a Jeanerette man pleaded guilty Wednesday to resisting, attacking and threatening a Chitimacha police officer.
Barry David Bryce 61, of Jeanerette, Louisiana, pleaded guilty before U.S. Magistrate Judge Patrick Hanna to assaulting a police officer. According to the guilty plea, a Chitimacha tribal police officer pulled over Bryce’s vehicle on September 23, 2017 on suspicion of operating a vehicle while intoxicated. After conducting a number of field sobriety tests and observing Bryce, the officer arrested him, and after placing handcuffs on him, Bryce began making threats of violence against the officer and kicked the officer. Bryce also resisted the officer’s attempt to put him in a police vehicle.
Bryce faces up to a year in prison, a year of supervised release and a $100,000 fine.
Jurisdiction in Indian Country is based upon the unique sovereign relationship between the federal government and Indian tribes. Congress has criminalized certain acts that take place in Indian Country. The U.S. Attorney’s Office prosecutes all felony cases arising in Indian Country that violate federal law.
The Chitimacha Tribal Police Department conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Jamaican National Indicted on Conspiracy, Mail Fraud and Money Laundering ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jennmariey Burchell, age 25, a Jamaican citizen residing in Panama City, Florida, was indicted on June 27, 2018, by a federal grand jury on 16 conspiracy, mail fraud, and money laundering charges.
Burchell was arrested on May 30, 2018, in Panama City on a complaint and warrant, and ordered detained by United States Magistrate Judge Schwab following a June 26, 2018, preliminary hearing in Harrisburg.
According to United States Attorney David J. Freed, the indictment alleges Burchell and identified and unidentified coconspirators perpetrated a scheme to defraud senior citizens, some of whom resided in the Middle District of Pennsylvania, that were falsely told they had won multi-million dollar international sweepstakes prizes. The indictment alleges the purported winners were directed to send Western Union and MoneyGram money transfers, money orders and checks to persons known as “money mules,” ostensibly to pre-pay taxes and other fictitious expenses, in order to collect the non-existent cash prizes. The Indictment further alleges that Burchell enlisted the “money mules” to receive and transfer the fraud proceeds to him and other conspirators in Jamaica.
The case was investigated by the Harrisburg Office of the United States Postal Inspection Service. Assistant United States Attorney Kim Douglas Daniel is prosecuting the case.
The United States Attorney’s Office and the United States Postal Inspection Service remind all citizens that they should never make an advance payment of any kind on the promise of a sweepstakes prize, loan or grant.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines, and could include a term of supervisory release following imprisonment, and a fine.
Mail Fraud and Money Laundering are each punishable by up to 20 years’ imprisonment. Conspiracy to commit Mail Fraud and Money Laundering carry a five-year statutory maximum.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Jamaican Man Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Christopher Kevin Solomon, a/k/a Kevin Murphy, age 41, and a citizen of Jamaica, was sentenced today to time served (5 months in jail) for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Acting Chief Patrol Agent, United States Border Patrol, Swanton Sector.
Solomon was removed from the United States to Jamaica on April 26, 2003. On January 17, 2018, a Border Patrol Agent arrested him in Hogansburg, New York. Solomon admitted that he returned to the United States without permission following the removal.
Following the sentencing, Solomon was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Investment Advisor Pleads Guilty to Investment FraudRead the Press Release
BOISE - Rick Guyon, a/k/a, Richard Guyon, a/k/a Rick Garrison, a/k/a Mark Thomas, 59, pleaded guilty yesterday to one count of wire fraud, U.S. Attorney Bart M. Davis announced. Pursuant to a written plea agreement filed with the court, Guyon pleaded guilty to count five of the indictment.
According to the plea agreement, from 2015 through 2017, Guyon devised a scheme to defraud individual investors. The scheme involved soliciting $1,956,400 from investors based on false and fraudulent representations about the defendant’s education, employment history, and financial condition, and false and fraudulent representations that the money would be invested in financial markets and that the defendant would not collect any commissions on the investments. Once he obtained the money, he spent it on personal expenses. To cover up what he had done, Guyon provided investors with false and fraudulent monthly account statements showing positive returns on investments.
According to the plea agreement, Guyon’s scheme to defraud investors (i) resulted in an actual loss of between $1,500,000 and $3,500,000; (ii) resulted in a substantial financial hardship to an investor-victim who personally lost approximately $1,281,783; and (iii) involved the defendant acting as an organizer and leader of at least three other participants in the scheme.
Sentencing for Guyon is set for October 9, 2018, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Federal Bureau of Investigation.
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Illegal Alien Sentenced to 27 Months in Federal Prison for Human SmugglingRead the Press Release
Gulfport, Miss. – Kenneth Samuel Hernandez-Valdez a/k/a Kenneth Hernandez, 18, an illegal alien from Honduras, was sentenced today by U.S. District Judge Louis Guirola, Jr. to 27 months in federal prison followed by two years of supervised release, for conspiracy to transport illegal aliens within the United States, announced U.S. Attorney Mike Hurst, Special Agent in Charge Jere T. Miles of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans, and Joseph A. Banco Jr., Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
As a result of this felony conviction, Hernandez-Valdez will face Department of Homeland Security removal proceedings upon the completion of his prison sentence. Hernandez-Valdez pled guilty on April 3, 2018, to conspiracy to transport illegal aliens with the United States.
On January 30, 2018, two Hancock County Sheriff’s Deputies, working together but in separate patrol vehicles, conducted traffic stops of two Honda Pilot Sport Utility Vehicles (SUVs) that were traveling together. Hernandez-Valdez was the driver of one of the SUVs and Ever Anibal Silva-Escobar was the driver of the other SUV. The U.S. Border Patrol was contacted and arrived on the scene shortly thereafter.
Neither of the drivers had a valid driver’s license, and both were found to be in the United States illegally. Each vehicle contained eight passengers who also were found to be illegal aliens. The SUVs each contained a total of nine occupants even though each vehicle only had seat belts for eight occupants. All eighteen occupants of both vehicles were arrested and transported to the Border Patrol Station in Gulfport.
On April 12, 2018, Silva-Escobar pled guilty to conspiracy to transport illegal aliens within the United States. He is scheduled to be sentenced on July 17, 2018.
Four of the passengers in the SUVs have pled guilty to unlawful re-entry by an alien after deportation or removal: Pedro Lopez-Alvarez, a/k/a Pedro Alvarez-Baten, 21, an illegal alien from Guatemala; Silvano Doroteo Morales-Ventura, 23, an illegal alien from Mexico; Wilmer Antonio Rubi-Padilla, 25, an illegal alien from Honduras, and Yesica Paola Rojas-Baten, 19, an illegal alien from Guatemala.
Lopez-Alvarez, Morales-Ventura and Rubi-Padilla are scheduled to be sentenced on July 3, 2018, and Rojas-Baten is scheduled to be sentenced on August 2, 2018. Each of the four aliens who unlawfully returned after removal faces a maximum penalty of two years in prison and a $250,000 fine. All of the defendants will be subject to Department of Homeland Security removal proceedings upon the completion of their sentences.
The case was investigated by Homeland Security Investigations, the U.S. Border Patrol, and the Hancock County Sheriff’s Department. Assistant United States Attorney Stan Harris was the prosecutor for the case.
Illegal Alien Ordered to Prison for Multiple ChargesRead the Press Release
HOUSTON – A 58-year-old an illegal alien from Mexico has been sentenced following his conviction of harboring illegal aliens, using a firearm during a crime of violence, illegal re-entry and being an alien in possession of a firearm, announced U.S. Attorney Ryan K. Patrick. J. Matias Picazo-Lucas pleaded guilty March 7, 2018.
Today, U.S. District Judge Keith Ellison handed Picazo-Lucas a total 96-month sentence. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence
On Aug. 3, 2017, an individual contacted Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) to report that a person had been smuggled into the United States and was being held against his will in Houston. That person advised that the unknown smugglers were demanding money in return for the release of the alien.
An undercover agent called the smuggler and arranged to meet him at a grocery store on Bellaire Boulevard to conduct a buyout of the relative. Law enforcement was on the scene when Picazo-Lucas arrived with two aliens who were being held. The agent and Picazo-Lucas discussed the payment, after which time authorities took Picazo-Lucas into custody. At the time of his arrest, he was found to be carrying a loaded .38 caliber pistol.
The two aliens were here illegally from Guatemala and indicated Picazo-Lucas and another individual, subsequently identified as Omar Picazo-Torres, had transported them to Houston in a tractor-trailer. Picazo-Lucas and Picazo-Torres held the hostages at gunpoint in order to intimidate them and prevent their escape.
The conspirators made phone calls to the person who had reported the kidnapping and other friends and family members of the hostages demanding payment for the release of the hostages.
Picazo-Lucas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Mexican National Omar Picazo-Lucas, 20, remains a fugitive and a warrant has been issued for his arrest. Anyone with information about his whereabouts is asked to contact HSI at 866-DHS-2-ICE.
HSI, Brazoria County Sheriff’s Office and the Houston Police Department conducted the investigation. Assistant U.S. Attorneys Douglas Davis and Kevin Lear are prosecuting the case.
Idaho Man Sentenced to 25 Years in Federal Prison for Second Degree MurderRead the Press Release
PORTLAND, Ore. – Julian Darryl James Simpson, 25, of Lewiston, Idaho, was sentenced today to 300 months in federal prison following his conviction for second degree murder. Simpson, an enrolled member of the Confederated Tribes of the Umatilla Indian Reservation, pleaded guilty to this charge on October 27, 2017.
According to court documents, on March 19, 2016, Simpson and codefendant Victor Joseph Contreras attended a party on the Confederated Tribes of the Umatilla Indian Reservation. As a result of escalating disputes between suspected gang members at the party, Simpson and Contreras were asked to leave.
When other party goers left the house, Simpson and Contreras opened fire on them using semiautomatic pistols. Simpson fired at least one shot at a victim, striking him in the back of the head, and fired additional shots into a nearby car. Contreras, upon hearing the gunshots, fired more than 20 rounds into the crowd of party goers, striking a second victim just above the ankle. The first victim was medically evacuated to a nearby hospital but later died from his injuries. Simpson was arrested a week later in Lewiston with the firearm used to kill the victim.
Contreras pleaded guilty to assault resulting in serious bodily injury and possession of a firearm in furtherance of a crime of violence on July 5, 2017. His sentencing is scheduled for July 19, 2018.
The case was jointly investigated by the FBI and the Umatilla Tribal Police Department, and prosecuted by Scott M. Kerin, Jennifer J. Martin, Paul T. Maloney, and John C. Brassell, Assistant U.S. Attorneys for the District of Oregon.
Husband and Wife Charged with Health Care FraudRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven returned a 17-count indictment yesterday charging KWASI GYAMBIBI, 40, of Stamford, and KAKRA GYAMBIBI, 37, formerly of New Canaan and currently residing in Maryland, with health care fraud offenses.
KWASI GYAMBIBI was arrested this morning in Stamford. He was arraigned before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven, entered not guilty pleas to the charges, and was released on bond. KAKRA GYAMBIBI is expected to appear in federal court to answer the charges by July 2, 2018.
As alleged in the indictment, KWASI GYAMBIBI and KAKRA GYAMBIBI are married. KWASI GYAMBIBI was formerly employed by the State of Connecticut and worked at UConn-Stamford, and KAKRA GYAMBIBI is a physician who worked as a hospitalist at Stamford Hospital. Advantage Pharmacy was a compounding pharmacy located in Hattiesburg, Mississippi. As a compounding pharmacy, Advantage created compound prescription drugs specifically tailored for individual patients who had a medical need for a compound drug, by mixing together individual ingredients in the exact strength and dosage prescribed by the health care provider to meet the unique needs of a patient. One tube of a compound drug cream prepared and dispensed by Advantage Pharmacy typically cost health care benefit programs thousands of dollars, and some individual tubes of cream cost more than $10,000 for a one-month supply. KWASI GYAMBIBI acted as, and eventually became, a sales representative for Advantage Pharmacy.
The indictment alleges that, in 2014 and 2015, KWASI and KAKRA GYAMBIBI engaged in a scheme to defraud the State of Connecticut Pharmacy Benefit Plan, TRICARE and other health care programs by submitting prescriptions for compound pharmacy medications prepared and dispensed by Advantage Pharmacy. Although the prescriptions were signed by KAKRA GYAMBIBI, she did not treat, examine, or even meet with the patients for whom the prescriptions were written. Based on these false and misleading claims, the victim health care programs paid Advantage Pharmacy for the compound prescription drugs. Advantage Pharmacy, in tum, paid commissions of between 15 percent to 25 percent to sales representatives, including KWASI GYAMBIBI’s cousin.
The indictment further alleges that KWASI GYAMBIBI and KAKRA GYAMBIBI also induced the victim health care programs to pay Advantage Pharmacy more than $280,000 for their own compound prescription drugs.
It is alleged that the scheme resulted in more than $1.5 million in losses to the victim health care programs.
The indictment charges each defendant with 16 counts of health care fraud and one count of conspiracy to commit health care fraud. Each of the counts carries a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau Investigation. U.S. Attorney Durham thanked the Office of the Attorney General of the State of Connecticut for their assistance with the investigation. The case is being prosecuted by Assistant U.S. Attorney David J. Sheldon.
This indictment is announced as part of a national health care fraud takedown. Earlier today, Attorney General Jeff Sessions and other federal law enforcement officials announced the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, The U.S. Department of Health and Human Services announced that, since July 2017, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.
“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions. “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history. This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”
Honduran Man Pleads Guilty to Conspiring to Launder over $1 Million in Bribes and Funds Misappropriated from the Honduran Social Security AgencyRead the Press Release
A Honduran man pleaded guilty in federal court yesterday for his role in a conspiracy to launder into the United States more than $1.3 million in foreign bribe payments and public funds from the Republic of Honduras. Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Deputy Director Thomas D. Homan of U.S. Immigration and Customs Enforcement (ICE) made the announcement.
Carlos Zelaya, 47, a citizen of Honduras who was residing in the New Orleans area, pleaded guilty before U.S. District Judge Martin L.C. Feldman of the Eastern District of Louisiana to one count of conspiracy to commit money laundering. Sentencing is set for Oct. 3 at 1:30 p.m. CT.
According to admissions made as part of the plea agreement, Carlos Zelaya conspired with his brother, the former Executive Director of the Honduran Institute of Social Security, and others to launder over $1.3 million in bribe payments. These bribes were paid by two Honduran businessmen for the benefit of the Executive Director. The funds were then laundered into the New Orleans area through international wire transfers and used to purchase real estate, including for a commercial property. Carlos Zelaya collected and spent the rental income derived from the properties, even after a federal judge ordered him to preserve the funds pending resolution of a federal civil forfeiture suit. During that case, he also made false statements to the U.S. government in written discovery responses and to a federal judge in the Eastern District of Louisiana while testifying under oath. As part of the conspiracy, Carlos Zelaya also used his brother’s high-ranking official position to profit from lucrative Honduran government contracts and then laundered the misappropriated funds into the New Orleans area. Under the terms of the plea agreement, Carlos Zelaya agreed to forfeit those properties.
The investigation was conducted by ICE Homeland Security Investigations New Orleans and Miami. The case is being prosecuted by Trial Attorneys Stephen A. Gibbons, Marybeth Grunstra, and Michael B. Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section with assistance from the U.S. Attorney’s Office for the Eastern District of Louisiana. Valuable assistance was provided by the Justice Department’s Office of International Affairs.
This case was brought under the Department of Justice’s Kleptocracy Asset Recovery Initiative by a team of prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section. These prosecutors partner with federal law enforcement agencies to prosecute those who engage in and facilitate foreign official corruption which has effects on the U.S. financial system, to forfeit assets purchased with the proceeds of that corruption, and, where appropriate, to repatriate the recovered funds for the benefit of the people of the country harmed by such abuse of public office. Individuals with information about possible proceeds of foreign corruption located in, or laundered through, the United States should contact federal law enforcement or send an email to [email protected].
Honduran Man Pleads Guilty to Conspiring to Launder over $1 Million in Bribes and Funds Misappropriated from the Honduran Social Security AgencyRead the Press Release
A Honduran man pleaded guilty in federal court yesterday for his role in a conspiracy to launder into the United States more than $1.3 million in foreign bribe payments and public funds from the Republic of Honduras. Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Deputy Director Thomas D. Homan of U.S. Immigration and Customs Enforcement (ICE) made the announcement.
Carlos Zelaya, 47, a citizen of Honduras who was residing in the New Orleans area, pleaded guilty before U.S. District Judge Martin L.C. Feldman of the Eastern District of Louisiana to one count of conspiracy to commit money laundering. Sentencing is set for Oct. 3 at 1:30 p.m. CT.
According to admissions made as part of the plea agreement, Carlos Zelaya conspired with his brother, the former Executive Director of the Honduran Institute of Social Security, and others to launder over $1.3 million in bribe payments. These bribes were paid by two Honduran businessmen for the benefit of the Executive Director. The funds were then laundered into the New Orleans area through international wire transfers and used to purchase real estate, including for a commercial property. Carlos Zelaya collected and spent the rental income derived from the properties, even after a federal judge ordered him to preserve the funds pending resolution of a federal civil forfeiture suit. During that case, he also made false statements to the U.S. government in written discovery responses and to a federal judge in the Eastern District of Louisiana while testifying under oath. As part of the conspiracy, Carlos Zelaya also used his brother’s high-ranking official position to profit from lucrative Honduran government contracts and then laundered the misappropriated funds into the New Orleans area. Under the terms of the plea agreement, Carlos Zelaya agreed to forfeit those properties.
The investigation was conducted by ICE Homeland Security Investigations New Orleans and Miami. The case is being prosecuted by Trial Attorneys Stephen A. Gibbons, Marybeth Grunstra, and Michael B. Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section with assistance from the U.S. Attorney’s Office for the Eastern District of Louisiana. Valuable assistance was provided by the Justice Department’s Office of International Affairs.
This case was brought under the Department of Justice’s Kleptocracy Asset Recovery Initiative by a team of prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section. These prosecutors partner with federal law enforcement agencies to prosecute those who engage in and facilitate foreign official corruption which has effects on the U.S. financial system, to forfeit assets purchased with the proceeds of that corruption, and, where appropriate, to repatriate the recovered funds for the benefit of the people of the country harmed by such abuse of public office. Individuals with information about possible proceeds of foreign corruption located in, or laundered through, the United States should contact federal law enforcement or send an email to [email protected].
Honduran Man Admits Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Jose Isaias Guerrero, a/k/a Jose Isaias Herrera, age 40, and a citizen of Honduras, pled guilty today to illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
Guerrero was removed from the United States to Mexico on October 19, 2010 and again on November 26, 2010. On April 20, 2018, ICE-ERO Officers arrested him in Greene County, New York. Guerrero admitted that he returned to the United States without permission following the prior removals.
Guerrero faces up to 2 years in prison and a fine of up to $250,000 when he is sentenced by Senior United States District Judge Lawrence E. Kahn on October 25, 2018. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Hattiesburg Couples’ Civil Lawsuit Against FBI and IRS Chiefs DismissedRead the Press Release
Hattiesburg, Miss. – Two lawsuits filed by former Forest County Sheriff’s Chief Deputy Charles Bolton and his wife, Linda Bolton, against the head of FBI’s Mississippi Field Office and the former head of the IRS’s Criminal Investigative Division for Mississippi have been dismissed by United States District Judge Keith Starrett.
The Boltons, both convicted of federal tax-related charges in 2016, alleged in their lawsuits that in April 2017, FBI Special Agent in Charge Christopher Freeze and former IRS Special Agent in Charge Jerome McDuffie made slanderous statements about them while appearing on a WDAM televised news program. According to the Boltons, both officials misrepresented as fact that the Boltons had stolen food from the Forrest County Jail and diverted it into their personal business. The United States Attorney’s Office for the Southern District of Mississippi asked the Court to substitute the United States for the individual defendants and to then dismiss the actions for lack of jurisdiction.
In granting the United States’ requests, Judge Starrett noted that, in September 2016, the Boltons were convicted in his court of federal tax-related crimes and that in March 2017, they were sentenced to prison and ordered to pay fines and restitution. Judge Starrett also noted that as part of the sentencing he considered other relevant conduct of the Boltons, which included evidence that they had stolen food from the Forrest County Jail, used it in their catering and restaurant business, and failed to pay taxes on the value of the stolen food. Judge Starrett found that the alleged slanderous statements attributed to SAC Freeze and former SAC McDuffie were made while they were acting within the course and scope of their employment as federal law enforcement officials and, consequently, the Boltons’ exclusive remedy was an action against the United States under the Federal Tort Claims Act. He also found that, because the Boltons had not presented their slander claims to either the FBI or the IRS prior to filing suit as required by the Federal Tort Claims Act, the Court lacked jurisdiction over those claims.
U.S. Attorney Hurst commended Assistant United States Attorney Stephen R. Graben who represented SAC Freeze and former SAC McDuffie.
Grandview Man Pleads Guilty to Armed Robbery Conspiracy, Faces 25 Years in PrisonRead the Press Release
KANSAS CITY, Mo. – A Grandview, Mo., man pleaded guilty in federal court today to his role in a three-months-long conspiracy that included at least 27 armed robberies, culminating in the armed robbery of a Walgreens in Blue Springs, Mo., in which a suspect was fatally shot by law enforcement officers.
Deonte J. Collins-Abbott, 23, pleaded guilty before U.S. Chief District Judge Greg Kays to participating in a conspiracy to commit robbery and to possessing a firearm in furtherance of a crime of violence.
By pleading guilty today, Collins-Abbott admitted that he committed eight armed robberies between Feb. 3, 2016, and March 24, 2016. Collins-Abbott admitted that he and co-conspirators robbed businesses in Blue Springs, Independence, North Kansas City, Raytown, Kansas City, Mo., and Kansas City, Kan., at gunpoint.
Collins-Abbott admitted that he and two other men robbed the Walgreens at 9th and Duncan in Blue Springs on March 24, 2016. According to court documents, once inside, one of the robbers placed a firearm to the back of an employee’s head and took money from the front register. Collins-Abbott and Jermon Seals of Shawnee, Kan., went over the pharmacy counter and took prescription grade cough syrup at gunpoint from the pharmacist. They left the business but were confronted by law enforcement officers as they were walking back to the vehicle. They failed to comply with the officers’ commands, according to the court documents, and Seals turned towards the officers, pointing a gun in their direction. Officers returned fire and Seals was struck in the exchange. Collins-Abbott and Thomas were apprehended by officers after a short foot pursuit.
Co-defendants Demetrius Nelson, 25, of Kansas City, Mo., and Parrise K. Black, also known as “Kilo,” 26, of Grandview, have also pleaded guilty.
Under the terms of today’s plea agreement, Collins-Abbott will be sentenced to 25 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Adam Caine and David Raskin. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Independence, Mo., Police Department, the North Kansas City, Mo., Police Department, the Kansas City, Kan., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Marshals Service.
Four Individuals Indicted with Charges Related to Running Pills in Hamilton, Defrauding MedicaidRead the Press Release
CINCINNATI – A federal grand jury has charged four individuals in three separate cases related to pill mills in Hamilton, Ohio. The charging documents allege responsibility for the death of at least three patients and more than $2.4 million in healthcare fraud.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio Attorney General Mike DeWine, Anthony Groeber, Executive Director, State Medical Board of Ohio, Steven Schierholt, Executive Director, State of Ohio Board of Pharmacy, and Sarah D. Morrison, Administrator, Ohio Bureau of Workers Compensation, announced the charges.
Dr. Saad Sakkal
According to a 39-count indictment returned in Cincinnati, Sakkal engaged in the illegal distribution of prescription drugs, including opioids. Sakkal is charged with being responsible for the deaths of at least two patients, who died in 2016, due to complications resulting from drug use.
Sakkal, who was arrested by federal agents in Florida today, began practicing at Lindenwald Medical Association, Inc. in Hamilton, Ohio in February 2015. He also owned and operated the medical practice Metabolic Care Center in Mason, Ohio.
It is alleged that Sakkal prescriped medically-dangerous combinations of controlled substances, including:
- “Holy Trinity,” which consists of an opiate, a benzodiazepine and a stimulant,
- “Prescriptive Speedball” that includes an opiate and a stimulant, and
- “Triple Threat Heaven,” which consists of methadone, a benzodiazepine and a stimulant.
“According to the indictment, after Sakkal joined Lindenwald Medical Association the type of patients changed, with patients waiting long periods of time in order to see Sakkal, including waiting outside in the parking lot for the practice to open,” U.S. Attorney Glassman said.
Numerous pharmacies denied to fill Sakkal’s prescriptions, and pharmacists even called Sakkal to warn him of the risks inherent in his prescribing practices.
In response, on December 31, 2016, Sakkal organized and led a small group of his patients on a series of protests at local pharmacies, demanding that they continue to fill his prescriptions.
Dr. Nilesh Jobalia
According to the indictment in this case, Jobalia, 53, of Cincinnati, owned and operated Cincinnati Centers for Pain Relief in Hamilton, Ohio from March 2013 through December 2017. Although the practice was not registered as such, it allegedly operated almost exclusively as a pain clinic.
The 114-count indictment alleges patients were prescribed fentanyl, oxycodone, methadone, morphine and other controlled substances on many occasions without actually being seen by the doctor. According to the indictment, at least one patient died as a result of using the prescribed controlled substances.
Jobalia’s practice also billed Medicare, Medicaid and the Bureau of Workers’ Compensation for medically unnecessary prescriptions.
“For example, prescriptions to one customer alone caused the Bureau of Workers’ Compensation to pay more than $450,000 for medically unnecessary drugs,” Glassman said. “In total, it is alleged that Jobalia caused more than $2 million in false claims.”
It is also alleged that Jobalia received more than $103,000 from a pharmaceutical company for purported speaking engagements about a Fentanyl Spray, a medication intended for breakthrough cancer pain.
The speaking engagements were actually sham programs, though, according to the indictment, in which many attendees were not medical professionals permitted to prescribe Fentanyl Spray. Usually, Jobalia, some of his staff and the pharmaceutical sales representative were the only people present at the engagements, which were held at fine dining restaurants in the Cincinnati area. It is alleged that Jobalia received $1,600 to $2,200 per “speaking engagement” on 17 separate occasions.
Jobalia is charged with 88 counts of unlawful distribution of a controlled substance, one count of unlawful distribution of a controlled substance with death resulting, eight counts of health care fraud and 17 counts of violating the anti-kickback law.
This case is a result of the Department of Justice’s Opioid Fraud and Abuse Detection Unit’s investigative efforts. United States Attorney General Jeff Sessions announced last summer that the Southern District of Ohio is one of 12 Districts nationwide to receive the pilot program designed to focus specifically on opioid-related health care fraud.
Lindenwald Medical Association, Inc.
Three individuals are charged in the indictment alleging Lindenwald Medical Association, Inc. overcharged Medicare and Medicaid by approximately $400,000 by upcoding billing codes for medical services.
The four-count indictment includes one count of conspiracy to commit health care fraud and three counts of health care fraud.
Dr. Rakesh Sharma, 47, of Alachua, Fla., is the previous owner of Lindenwald Medical Association, Inc. He allegedly directed employees to see as many patients per day as they could, typically between 40 and 60 per provider. He also promised bonuses based on the receivables in the office.
It is alleged that patients were given very cursory exams and then prescribed controlled substances.
“The indictment alleges that urine tests were given to patients but never reviewed,” Glassman said. “In fact, according to the charging document, the results of those urine tests showed that patients were not taking the prescriptions, but likely diverting them.”
The indictment also alleges Sharma and co-conspirator Mike Jones, 51, of Liberty Township, Ohio – a nurse practitioner at the practice, ordered genetic tests regardless of medical necessity and received kickbacks from the labs processing the tests.
The three Southern District of Ohio cases are part of the largest health care fraud enforcement action in Department of Justice history this week, which resulted in at least 76 doctors charged and 84 opioid cases involving more than 13 million illegal dosages of opioids. The national takedown includes charges across 58 federal districts against more than 600 individuals total, who are allegedly responsible for more than $2 billion in fraud losses.
“Health care fraud is a threat to this country, both in terms of the well-being of patients and the integrity of government health care programs,” said Lamont Pugh, Special Agent in Charge for the U.S. Department of Health & Human Services Office of Inspector General. “Our agents will continue to work with our law enforcement partners to ensure these criminals are held accountable for their actions.”
“At the Ohio Attorney General’s Office, we’re committed to protecting Ohio families. Collaborating on the investigation and prosecution of cases like these is one of the ways we fulfill that mission,” Ohio Attorney General Mike DeWine said.
U.S. Attorney Glassman commended the investigation of the local cases by the HHS OIG, DEA, Ohio Medical and Pharmacy boards, Bureau of Workers’ Compensation and Ohio Attorney General’s Medicaid Fraud Unit, as well as Assistant United States Attorneys Salvador A. Dominguez, Timothy Oakley and Timothy Mangan and Special Assistant United States Attorney Maritsa Flaherty, who are prosecuting the cases.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Four Individuals Charged in the Northern District of Florida as Part of National Health Care Fraud TakedownRead the Press Release
PENSACOLA, FLORIDA – Michael Scott Burton, 51, of Decatur, Georgia; Marie Ann Smith, 54, of Auburn, Georgia; Bradley D. Pounds, 46, of Jacksonville, Florida; and Heather E. Pounds, 45, also of Jacksonville, were arraigned on Tuesday, June 26, after a federal grand jury returned an indictment charging them with conspiracy to commit health care fraud and wire fraud. Additionally, Burton was charged with conspiracy to commit money laundering and 10 counts of money laundering. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges the following:
TRICARE and other private insurance companies were defrauded of more than $8 million for compounded creams and pills that were not medically necessary. The individuals who were provided the compounded creams and pills never saw the “prescribing” health care provider.
As a part of this scheme, Burton contacted Brad Hodgson, an employee with a doctor’s office in Atlanta, Georgia, and asked Hodgson to write compounded cream prescriptions for individuals who were not patients of the doctor’s practice where Hodgson worked. Upon Hodgson’s agreement to write the prescriptions, and as part of the scheme, Burton arranged for the Pounds and others to become “representatives” for Burton’s company, Simply Surgical. These representatives provided Burton with the personal identifying information and insurance cards of insurance company beneficiaries for whom the prescriptions could be issued. Burton agreed to pay the representatives for the information they provided him.
Following Burton’s receipt of the personal identifying information, Burton e-mailed the information to Hodgson and Smith, a billing coordinator at the Atlanta doctor’s office. Hodgson and Smith then caused prescriptions, purportedly signed by the Atlanta doctor and bearing the doctor’s DEA registration number, to be issued and faxed to a pharmacy in Pensacola. The doctor did not authorize or sign the prescriptions Hodgson and Smith submitted. Further, the health care beneficiaries whose information was submitted by Burton were not patients of the doctor’s office. The prescriptions issued were not medically necessary and were not provided by an authorized health care provider.
Following receipt of the prescriptions, employees of a Pensacola pharmacy manufactured compounded substances and then caused the substances to be shipped to the respective health care beneficiaries. The Pensacola pharmacy caused TRICARE and other health care benefit programs to be billed for the prescriptions.
By this conduct, Burton and others defrauded TRICARE and other health care benefit programs of more than $8 million. The trial is scheduled for August 6, 2018.
If convicted, all defendants face a maximum of 10 years in prison for each count of health care fraud conspiracy and a maximum of 20 years in prison for each count of wire fraud conspiracy. If convicted, Burton faces a maximum of 10 years in prison for each count of money laundering and money laundering conspiracy.
The case is being investigated by the Defense Criminal Investigative Service; the Florida Department of Law Enforcement; the Florida Department of Financial Services, Bureau of Insurance Fraud; and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Tiffany H. Eggers.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
About the National Health Care Fraud Takedown:
Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III announced today the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses, and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.
Attorney General Sessions and Secretary Azar were joined in the announcement by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Deputy Director David L. Bowdich of the FBI, Assistant Administrator John Martin of the Drug Enforcement Administration (DEA), Deputy Inspector General Gary Cantrell of the HHS Office of Inspector General (OIG), Deputy Chief Eric Hylton of IRS Criminal Investigation (CI), Centers for Medicare and Medicaid Services (CMS) Deputy Administrator and Director of the Center for Program Integrity Alec Alexander, and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS).
Today’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and State Medicaid Fraud Control Units.
The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.
“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions. “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history. This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”
“Every dollar recovered in this year’s operation represents not just a taxpayer’s hard-earned money—it’s a dollar that can go toward providing healthcare for Americans in need,” said HHS Secretary Azar. “This year’s Takedown Day is a significant accomplishment for the American people, and every public servant involved should be proud of their work.”
According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare. Collectively, the doctors, nurses, licensed medical professionals, health care company owners, and others charged are accused of submitting a total of over $2 billion in fraudulent billings. The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims. Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.
“Healthcare fraud touches every corner of the United States and not only costs taxpayers money, but also can have deadly consequences,” said FBI Deputy Director Bowdich. “Through investigations across the country, we have seen medical professionals putting greed above their patients’ well-being and trusted doctors fanning the flames of the opioid crisis. I want to thank the agents, analysts and our law enforcement partners in every field office who work each and every day to stop these criminals and hold them accountable for their actions.”
“DEA is committed to ending the opioid crisis occurring in our communities and preventing prescription drug misuse,” said DEA Assistant Administrator Martin. “DEA will continue to work with our partners every day to protect our citizens while ensuring that patients have adequate access to these critical medications.”
“This year’s operations, focusing on opioid-related schemes, spotlight the far-reaching impact of health care fraud,” said HHS Deputy Inspector General Cantrell. “Such crimes threaten the vitally important Medicare and Medicaid programs and the beneficiaries they serve. Though we have made significant progress in our fight against health care fraud; our efforts are not complete. We will continue to work with our partners to protect the health and safety of millions of Americans.”
“It takes a special kind of person to prey on the sick and vulnerable as happened in many of these health care fraud schemes,” said Deputy Chief Hylton. “Medical professionals and others callously placed individuals and vital healthcare services in harm’s way simply because of greed. IRS-CI special agents continue to work side-by-side with other federal, state, and local law enforcement officers to uncover these schemes and hold these criminals accountable for their actions.”
“CMS makes it a top priority to protect the health and safety of millions of beneficiaries who depend on vital federal healthcare programs,” said Alec Alexander, deputy administrator and director of the Center for Program Integrity. “CMS’ Center for Program Integrity collaborates closely with our law enforcement partners to safeguard precious taxpayer dollars. Under Administrator Seema Verma, we will continue to strengthen this partnership with law enforcement in order to ensure the integrity and sustainability of these essential programs that serve millions of Americans.”
“Heath care fraud wounds our service members and veterans alike, as they rely upon and rightfully expect uncompromised care through the Department of Defense’s TRICARE Program,” said DCIS Director O’Reilly. “Investigations that culminated in enforcement actions over the past several days underscore the steadfast commitment of the Defense Criminal Investigative Service and our investigative partners to vigorously investigate fraud impacting TRICARE. We remain vigilant in our efforts to ensure the high standards of care our service members, military retirees, and their dependents deserve while safeguarding American taxpayer dollars.”
The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in 10 locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Fort Thompson Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on June 25, 2018, by U.S. District Judge Roberto A. Lange.
Casey World Turner, age 30, was sentenced to 6 months in federal prison, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
World Turner was indicted by a federal grand jury on February 14, 2018. He pled guilty on April 10, 2018.
The conviction stems from an incident on January 19, 2018, when an officer with the BIA Law Enforcement was dispatched to a residence in Fort Thompson. The officer observed World Turner walking up the porch of his mother’s residence, and he called out to World Turner to come speak with him.
After refusing the officer’s request, World Turner removed his jacket, assumed a bladed stance with both fists raised, and stared at the officer. The officer grabbed World Turner by the wrist and attempted to secure him in wrist restraints. World Turner began pulling away from the officer, while simultaneously pushing him with his other arm. The defendant continued to wrestle and resist until another officer arrived and helped subdue World Turner.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
World Turner was immediately turned over to the custody of the U.S. Marshals Service.
Former Rockcastle County Deputy Sheriff Indicted for Using Excessive Force Against Arrestee and for Obstructing JusticeRead the Press Release
LONDON, Ky. – A federal grand jury in London, Kentucky, today returned a two-count indictment charging Brandon McIntosh, a former deputy of the Rockcastle County Sheriff’s Office, with violating the civil rights of an arrestee by using excessive force against him and then filing a false report to obstruct the investigation of that assault.
The indictment alleges that on Nov. 6, 2016, McIntosh assaulted P.D., an arrestee, using a dangerous weapon and resulting in bodily injury to P.D. The indictment further alleges that McIntosh filed a report falsely stating that, as McIntosh approached P.D., P.D. became very combative and that McIntosh used the least amount of force to get P.D. under control.
If convicted, McIntosh faces a maximum term of imprisonment of 10 years on the civil rights charge and twenty years on the obstruction charge.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
The Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney Hydee Hawkins of the Eastern District of Kentucky and Trial Attorney Mary J. Hahn of the Civil Rights Division are prosecuting the case.
Former Rockcastle County Deputy Sheriff Indicted for Using Excessive Force Against Arrestee and for Obstructing JusticeRead the Press Release
A federal grand jury in London, Kentucky, today returned a two-count indictment charging Brandon McIntosh, a former deputy of the Rockcastle County Sheriff’s Office, with violating the civil rights of an arrestee by using excessive force against him and then filing a false report to obstruct the investigation of that assault.
The indictment alleges that on Nov. 6, 2016, McIntosh assaulted P.D., an arrestee, using a dangerous weapon and resulting in bodily injury to P.D. The indictment further alleges that McIntosh filed a report falsely stating that, as McIntosh approached P.D., P.D. became very combative and that McIntosh used the least amount of force to get P.D. under control.
If convicted, McIntosh faces a maximum term of imprisonment of 10 years on the civil rights charge and twenty years on the obstruction charge.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
The Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney Hydee Hawkins of the Eastern District of Kentucky and Trial Attorney Mary J. Hahn of the Civil Rights Division are prosecuting the case.
Former Philadelphia Police Sergeant Sentenced for Soliciting BribesRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that former Philadelphia Police Department Sergeant Brian Smith, 35, of Philadelphia, PA, was sentenced today to 15 months’ imprisonment, three years’ supervised release, a $10,000 fine, and a $200 special assessment. U.S. District Judge Gerald Pappert imposed the sentence. Smith previously pled guilty to two counts of soliciting a bribe.
According to court papers, Smith joined the Philadelphia Police Department (PPD) as an officer in June 2005, and was promoted to the rank of Sergeant in March 2016. Between December 2015 and November 2016, Smith solicited and accepted weekly bribe payments of $200 from a tow truck operator in exchange for lucrative accident location information. Smith would obtain this confidential law enforcement information from his PPD mobile data terminal and immediately send it by text messages to the tow truck operator in exchange for the corrupt payments. Smith also accepted monthly bribe payments of $800 per month from a second tow truck operator for such information.
Smith’s conduct unlawfully circumvented the PPD’s rotational towing policy. In 2008, the PPD instituted the policy, which requires patrol officers to notify Police Radio of any accident that requires vehicle towing. Police Radio maintains an accurate list of towing companies for an equitable rotation and distribution of towing assignments and calls a tow truck operator directly off the list. The City of Philadelphia instituted this rotational program as a public safety and consumer protection measure to stop wreck-chasing and to prevent accident victims from being taken advantage of by price-gauging tow truck operators. The program came in response to a series of highly publicized, violent encounters between tow truck operators who competed for the potentially lucrative work of towing cars damaged in accidents.
“Our efforts in this case illustrate that my Office is committed to stamping out corruption wherever it takes place,” said U.S. Attorney McSwain. “As a Sergeant in the Philadelphia Police Department, Smith repeatedly abused his position of trust. Today’s sentence makes plain that public officials who subvert the rule of law like this to line their own pockets will pay the price—and the only currency we accept will be their freedom.”
"It's grimly ironic, and beyond disappointing, that Brian Smith chose to game a system instituted in the interests of public safety and fair play," said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "What he saw as an easy way to pad his paycheck on the sly, federal law deems clear corruption. Public servants, particularly in law enforcement, must be held to the highest of ethical standards. Those falling short, like former Sergeant Smith, must be rooted out—and firmly held to account."
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, Internal Affairs Division, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
Former Office Manager Sentenced to 51 Months in Prison for Embezzling More Than $1.5 Million from EmployerRead the Press Release
WASHINGTON – The former office manager of a trade association management company was sentenced today to 51 months in prison on a federal charge of wire fraud for embezzling more than $1.5 million from the firm, announced U.S. Attorney Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.
Leunea D. Myers, 39, of Clinton, Md., pled guilty in March 2018 in the U.S. District Court for the District of Columbia. She was sentenced by the Honorable Christopher R. Cooper. Following her prison term, she will be placed on three years of supervised release. She also must pay $1,550,075 in restitution to her former employer and two of its clients, and the Court issued a forfeiture money judgment in the same amount.
According to a statement of offense filed as part of the plea, Myers worked from February 2015 to November 2017 as the office manager and bookkeeper for a company identified in court documents as “Company A.” This company is a professional trade association management company in the District of Columbia that has been in business for more than 40 years. It has two primary clients. Myers’s responsibilities included tracking client billings and receipts, depositing money, and reconciling clients’ bank accounts, drafting checks, and preparing financial statements.
From April 2015 through November 2017, Myers embezzled funds by making unauthorized charges on company credit cards and by writing fraudulent checks directly to herself or to pay third parties to pay bills that she owed.
In announcing the sentence, U.S. Attorney Liu and Assistant Director in Charge McNamara commended the work of those who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Special Assistant U.S. Attorney Rebecca Caruso and former Special Assistant U.S. Attorneys Sean Welsh and Parker Tobin, who assisted with forfeiture issues; Paralegal Specialist Brittany Phillips; former Paralegal Specialist Kate Abrey, and former Assistant U.S. Attorney John P. Marston. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Derrick L. Williams, who handled the sentencing phase of the case.
Former Norwich Pharmacist Charged with Forging Prescriptions to Acquire Oxycodone and AlprazolamRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that on June 20, 2018, a grand jury in New Haven returned a 12-count indictment charging ERIC TINGLEY, 42, formerly of Lebanon, Connecticut and currently residing in Las Vegas, Nevada, with using forged prescriptions to acquire thousands of oxycodone and alprazolam tablets from the Connecticut pharmacy where he was employed.
TINGLEY was arrested yesterday in Rhode Island. Following his arrest, he appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and is detained pending a detention hearing scheduled for tomorrow at 2:30 p.m.
As alleged in the indictment, TINGLEY was a licensed pharmacist employed at a pharmacy in Norwich. Between approximately October 2016 and July 2017, TINGLEY forged approximately 183 prescriptions for oxycodone and approximately 26 prescriptions for alprazolam, and filled the forged prescriptions at the pharmacy where he worked. Through these forged prescriptions, TINGLEY unlawfully obtained more than 35,000 oxycodone tablets and more than 2,000 alprazolam tablets. He then distributed the drugs for his own benefit.
The indictment charges TINGLEY with one count of possession with intent to distribute oxycodone and alprazolam, an offense that carries a maximum term of imprisonment of 20 years, and 11 counts of obtaining oxycodone and alprazolam by fraud and forgery, and offense that carries a maximum term of imprisonment of four years on each count.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and John T. Pierpont, Jr.
This indictment is announced as part of a national health care fraud takedown. Earlier today, Attorney General Jeff Sessions and other federal law enforcement officials announced the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, The U.S. Department of Health and Human Services announced that, since July 2017, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.
“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions. “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history. This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”