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28 June 2018
Postal employee from Warrensville Heights indicted for stealing more than 250 gift cards from postal station in ClevelandRead the Press Release
A grand jury returned an indictment charging a U.S. Postal Service employee with stealing more than 250 gift cards from the mail while working at 2400 Orange Avenue in Cleveland.
Monique Wheeler, 54, of Warrensville Heights, was indicted on one count of theft of mail. Wheeler knowingly stole or took letters, postal cards, packages, bags, or mail and numerous gift cards of varying monetary amounts between July 2017 and September 2017, according to the indictment.
Wheeler stole from the mail gift cards to dozens of stores or services, including Aldi, Amazon, Applebee’s, Best Buy, Bob Evans, Buffalo Wild Wings, Chick Fil A, Chipotle, DSW, Game Stop, Home Depot, Kohl’s, Lowe’s, MasterCard, Panera, Red Lobster, Starbucks, Target, Victoria’s Secret, Visa, Xbox and others.
U.S. Attorney Justin Herdman said: “This defendant is accused of stealing hundreds of gift cards worth thousands of dollars over three months. Presumably some of these were birthday presents or other gifts that people entrusted to the postal service for delivery. Those who steal mail will be held accountable for their actions, just like any other criminal.”
U.S. Postal Service Office of Inspector General Special Agent in Charge Kenneth F. Cleevely stated: “The vast majority of the 600,000 Postal Service employees nationwide are hard working individuals worthy of America’s trust. However, when one of them decides to violate that trust, special agents of the USPS OIG will conduct an aggressive and thorough investigation, as was done in this case. Special agents will seek federal prosecution and the individual’s removal from the Postal Service. When an employee steals from the mail, they risk loss of employment, loss of their retirement, and loss of their freedom. To report postal employees involved in criminal activity, contact USPS OIG special agents at www.uspsoig.gov or 888-USPS-OIG.”
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to her case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Ranya Elzein and was investigated by the United States Postal Service Office of Inspector General.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Pierre Man Charged with Being a Felon in Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for being a Felon in Possession of a Firearm.
Michael Schmidt, age 43, 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 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about January 31, 2018, Schmidt, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed and received a .22 long rifle and a 12 gauge shotgun, which both had been shipped and transported in interstate and foreign commerce.
The charge is merely an accusation and Schmidt is presumed innocent until and unless proven guilty.
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 Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Lyman County Sheriff’s Office, and the U.S. Forest Service. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Schmidt was released on bond pending trial, which has been set for August 21, 2018.
Philadelphia Pharmacy Employee Charged with Conspiring to Distribute Thousands of Oxycodone TabletsRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that an indictment was unsealed today charging a Philadelphia pharmacy employee with conspiring to distribute controlled substances, including opioid painkillers.
Anmol Singh Kamra, 25, of Newtown Square, is charged with one count of conspiring with a doctor and another individual to distribute tens of thousands of tablets of oxycodone, a Schedule II controlled substance, in violation of federal drug law. Schedule II controlled substances have a high potential for abuse and may lead to severe psychological and physical dependence.
This case is part of a nationwide Department of Justice initiative targeting individuals who contribute to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics. According to the Centers for Disease Control and Prevention, approximately 91 Americans die every day of an opioid related overdose.
“We have to do everything in our power to make sure those who contribute to the destructive and deadly opioid crisis are held accountable,” said U.S. Attorney McSwain. “Too many Americans are dying. That’s why prosecuting those who traffic in opioids is a priority for the Department of Justice and for our Office.”
The indictment alleges the following:
Kamra worked at Campus Pharmacy at 4027 Market Street in Philadelphia, Pennsylvania. From about December 2012 through March 2016, Kamra filled hundreds of prescriptions for oxycodone knowing that the prescriptions were fraudulent.
Frank D. Brown, charged elsewhere, frequented a doctor’s office to obtain multiple sham prescriptions for controlled substances, including oxycodone, under both his own name and the names of others. Brown paid cash for these sham prescriptions. In December 2012, after purchasing the sham prescriptions, Brown began going to Campus Pharmacy, where Kamra would fill these sham prescriptions in exchange for cash.
Kamra, Brown, and the doctor used over 30 different names when filling and dispensing prescriptions at Campus Pharmacy. After obtaining the oxycodone tablets from Kamra, Brown sold the pills on the street to drug users in exchange for cash. Over time, Kamra provided oxycodone pills even when Brown failed to provide any prescription for those pills.
If convicted, Kamra faces a maximum possible sentence of 20 years’ imprisonment, a minimum of 3 years up to a lifetime of supervised release, a $1,000,000 fine, and a $100 special assessment.
The unsealing of today’s indictment was coordinated with the Criminal Division, Fraud Section’s Health Care Fraud Unit as part of its National Health Care Fraud Takedown. The case was investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration Diversion Unit. It is being prosecuted by Assistant United States Attorney Jessica Natali.
Oklahoma Man Sentenced to 22 Years in Prison for Six Armed RobberiesRead the Press Release
BOISE – Camron D. Brown, 21, of Oklahoma City, Oklahoma, was sentenced on Wednesday to 22 years in federal prison for six counts of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence, U.S. Attorney Bart M. Davis announced. Brown was indicted by a federal grand jury in Boise on May 9, 2017. He plead guilty to the offenses on March 13, 2018. He was sentenced by Chief U.S. District Judge B. Lynn Winmill at the Federal Courthouse in Boise.
According to court records, in early 2017, Brown robbed six different businesses using a gun, holding a total of ten people at gunpoint, and stealing in all almost $7,000. Specifically, Brown robbed the following businesses on the following dates:
- February 20, 2017, Brown robbed the Jackson’s Food Store at 897 S. Cole Road in Boise.
- February 20, 2017, twelve minutes after robbing the Jackson’s Food Store, Brown robbed Elements Massage at 7447 Emerald Street in Boise.
- February 21, 2017, Brown robbed the Human Bean Coffee stand at 2100 Broadway in Boise.
- February 25, 2017, Brown robbed the Game Stop store at 2025 12th Avenue in Nampa.
- March 8, 2017, Brown robbed the Continental Loans suite at 10530 Fairview Avenue in Boise.
- March 13, 2017, Brown robbed the Motel 6 at 2323 Airport Road in Boise.
Brown was arrested after a lengthy investigation. Police eventually interviewed Brown, who provided a false alibi. Police also discovered a social media posting in which Brown bragged about his crimes.
In addition to the prison sentence, Judge B. Lynn Winmill ordered Brown to pay $6,808.26 in restitution, as well as serve five years of federal supervised release. The supervised release will be served after Brown completes his 22-year sentence.
This case was investigated through the cooperation of the Boise Police Department, Nampa Police Department, Mountain Home Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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.
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- February 20, 2017, Brown robbed the Jackson’s Food Store at 897 S. Cole Road in Boise.
Operator of Dallas Physician Housecall Practice Arrested in Connection with Largest Health Care Fraud Enforcement Action in Department of Justice HistoryRead the Press Release
DALLAS – Nehaj Rizvi, 29, from Carrollton, Texas, was arrested today on a federal complaint charging her with health care fraud in connection with a $2.5 million home health care fraud scheme. The announcement was made today by U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
According to documents filed in the case, Life Spring Housecall Physicians, Inc., (Life Spring), generated hundreds of fraudulent home health orders and certifications for multiple home health agencies in the DFW area. Life Spring is operated by Rizvi and owned by her husband, Mohsin Raza.
Rizvi used a physician’s signature stamp to sign home health orders and home health certifications for patients that the physician had never seen and who were not qualified for home health care. In reality, far from being homebound, many of the patients were able to drive and carry out normal functions of everyday life. More than 100 home health agencies obtained physician orders and certifications from Life Spring, which enabled the agencies to claim their patients were homebound and gave the appearance that their services were justified. Life Spring’s false documents led to home health agencies billing Medicare approximately $2,500,000 in fraudulent claims.
“The charges announced today in Dallas are an example of the outstanding investigative work by this district’s Healthcare Fraud Strike Force that has been in operation since 2011,” stated U.S. Attorney Nealy Cox. “Home health care fraud continues to plague the DFW area. This office will continue to aggressively investigate and prosecute anyone trying to defraud Medicare and other public health care programs.”
“This takedown is a warning to fraudsters that their crimes will be uncovered,” said C.J. Porter, Special Agent in Charge of the Dallas Regional Office of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Along with our law enforcement partners, we will work to ensure that criminals who orchestrate these schemes are brought to justice.”
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the health care fraud offense charged against Rizvi is 10 years in federal prison and a $250,000 fine. The investigation is being conducted by Special Agents with HHS. Assistant U.S. Attorney Douglas Brasher is in charge of the prosecution.
Rizvi’s arrest is part of the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, announced today by Attorney General Jeff Sessions and HHS Secretary Alex M. Azar III. Today’s enforcement actions 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 approximately $2 billion in false billings to Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies. Of those charged, over 162 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. 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. “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.”
Additional documents related to this announcement are available at: https://www.justice.gov/opa/documents-and-resources-june-28-2018
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North Versailles Man Sentenced to Prison for Violating Drug and Firearms LawsRead the Press Release
PITTSBURGH, Pa. – A resident of North Versailles, Pennsylvania, has been sentenced in federal court to 13 months incarceration and three years supervised release on his conviction of conspiracy to possess and distribute oxycodone, an opiate, and violating federal firearms laws, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence yesterday on John Zurick, 41, of 506 Porter Street.
According to information presented to the court, Zurick participated in a criminal network of drug dealers that obtained opiate pain killers and then illegally distributed them to users in the Pittsburgh area. Zurick helped transport Antoinette Adair, one of the key dealers in the criminal network, to buy and sell opiate pills. While transporting Adair, Zurick was armed with a firearm, in violation of federal law.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Office of the Attorney General, the Pittsburgh Bureau of Police, and the Allegheny County Police Department for the investigation leading to the successful prosecution of Zurick.
New York Lawyer Pleads Guilty to over $9 Million in Illegal Money Transfers Between the U.S. and MexicoRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Angel M. Melendez, Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced today that IGNACIO FONCILLAS pled guilty to operating an unlicensed money transmitting business in connection with his transfer of over $9 million between the United States and Mexico. This illegal scheme allowed FONCILLAS’s customers to secretly send money to Mexico while avoiding anti-money laundering safeguards and obligations imposed upon legal money services businesses. FONCILLAS surrendered to federal agents this morning and his plea was taken by U.S. District Judge George B. Daniels.
U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Ignacio Foncillas, an attorney, established an illegal money transmitting service between the U.S. and Mexico. Foncillas did not register his company with FinCEN, the regulatory agency that oversees the U.S. financial system and reports suspicious financial transactions. Attempts by individuals or corporations to circumvent their regulatory obligations will be met with swift justice.”
HSI Special Agent in Charge Angel M. Melendez said: “Foncillas operated a transnational money transmitting business, moving millions without ever ensuring he had the proper licensing. The movement of money is regulated to limit fraudulent and criminal activity, which is why law enforcement is paying close attention to those operating without a license, and looking even more closely at money transactions crossing borders.”
According to the Information and statements made during proceedings in Manhattan federal court:
IGNACIO FONCILLAS is a lawyer in New York, New York. Between approximately September 2013 and September 2014, FONCILLAS used a company he had previously incorporated in Delaware (the “Company”) to transfer millions of dollars from the United States to Mexico. During this time, the Company was not registered with the Financial Crimes Enforcement Network (FinCEN), a component of the U.S. Department of the Treasury, or any of the states in which the Company operated, including New York, Delaware, or California, as required by both state and federal laws applicable to money transmitting businesses like the Company.
Unlicensed money transmitting businesses like the Company enable entities and individuals to move money into and through the U.S. financial system while avoiding licensed U.S. financial institutions that monitor for suspicious activity and report it to U.S. authorities, including through suspicious activity reports, or SARs. Instead, by going through unlicensed entities like the Company, foreign businesses ensure that suspicious patterns of transmissions will not be detected and reported as potential money laundering activity or other financial crime.
In order to move money in this manner, FONCILLAS opened bank accounts in the name of the Company at banks including Bank of America, Citibank, and Wells Fargo. When opening these accounts, FONCILLAS provided false and contradictory descriptions of the Company’s business, including investment, consulting, and wholesale trade. On many occasions, individuals around the country, mainly in the Southern California region, who had no affiliation with FONCILLAS or the Company, deposited cash into the Company’s bank accounts. On other occasions, FONCILLAS deposited cash he had received from others into the Company’s bank accounts in New York. At times, FONCILLAS lied to the banks about the purpose of these large cash deposits, including telling a bank teller that a cash deposit of over $150,000 was money he had been paid for a loan.
Following these deposits, FONCILLAS directed the transfer of that money to individuals and entities in Mexico, minus a fee. This fee was retained by FONCILLAS as payment for this money transmitting service and used to pay personal expenses such as credit cards and other bills. Through this conduct, the defendant and the Company have functioned as an unregulated financial institution, allowing others to move funds through and out of the U.S. with impunity, including not being subject to the filing of SARs that licensed transmitting businesses are required to file.
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FONCILLAS, 50, of New York, New York, pled guilty to one count of operating an unlicensed money transmitting business. The charge carries a maximum penalty of five years in prison. The maximum potential sentence in this case are prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
FONCILLAS is scheduled to be sentenced November 8, 2018.
Mr. Berman praised the outstanding investigative work of the Department of Homeland Security, Homeland Security Investigations.
This case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorneys Daniel M. Tracer and Niketh V. Velamoor are in charge of the prosecution.
New Orleans Men Sentenced After Pleading Guilty to Drug Conspiracy and Firearms OffensesRead the Press Release
U.S. Attorney Duane A. Evans announced that ELTON WELLS, age 39, and JUSTIN CRAFT, age 29, of New Orleans, were sentenced today after pleading guilty to several drug charges, including conspiracy to distribute and possession with intent to distribute one hundred grams or more of heroin. CRAFT also pled guilty to firearms offenses, including felon in possession of a firearm and possession of firearms in furtherance of a drug trafficking crime. WELLS was sentenced to 120 months incarceration and eight years supervised release. CRAFT was sentenced to 180 months incarceration and eight years supervised release.
According to court documents, In March of 2017, members of the NOPD/HIDTA Task Force received information from a source of information that three individuals, including WELLS and CRAFT, were heroin distributors in the area of Mandeville Street and Derbigny Street in New Orleans. Based on that information, officers conducted surveillance in that area.
On April 5, 2017, surveillance officers in the area of Mandeville and Derbigny Streets observed WELLS conduct a hand-to-hand drug transaction and return to his vehicle. Officers arrested WELLS and seized a quantity of heroin from WELLS.
On April 11, 2017, officers conducted surveillance in the same area and observed CRAFT conduct a hand-to-hand narcotics transaction with an individual. Officers arrested the individual and seized heroin that he purchased from CRAFT. A second individual who was also arrested after purchasing heroin in the area, informed officers that he regularly called one telephone that was shared by CRAFT, WELLS and another individual, and that any one of them would sell him an ounce of heroin.
Officers and DEA Special Agents obtained a search warrant for CRAFT’S residence at 14070 Wales Street in New Orleans. During the search, officers and agents seized 4.9 grams of heroin and several firearms, including two semi-automatic rifles, a semi-automatic pistol, and a shotgun.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, the New Orleans Police Department, and the St. Bernard Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney André Jones was in charge of the prosecution.
National healthcare fraud takedown results in charges against 590+ individuals, including one in Georgia, who are responsible for $2+ billion in fraud lossesRead the Press Release
ATLANTA – The Department of Justice (DOJ) and the Department of Health and Human Services (HHS) announced the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 590+ charged defendants across 56 federal districts, including 150+ 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 150 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Twenty-nine 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.
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 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 steals valuable resources from individuals who are most in need of the funds that support medical services and programs,” said U. S. Attorney Byung J. Pak. “We will continue to focus our efforts on aggressively investigating and prosecuting medical professionals and others who defraud our healthcare system”
“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.”
“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.”
“The FBI is dedicated to protecting federally funded health care programs from those driven by greed, those who divert funds to their own pockets, taking them away from those who desperately need them,” said J. C. Hacker, Acting Special Agent in Charge (A/SAC) of FBI Atlanta. “The scope of this case is an indication of how widespread the problem is, but also an indication of how determined we are to stop it.”
“Our Medicaid Fraud Control Unit is committed to protecting the integrity of the Georgia Medicaid program, its members and the taxpayer dollars used to provide this service,” said Georgia Attorney General Chris Carr. “We will remain vigilant in our efforts to identify and detect fraud, abuse or waste and aggressively recover all funds spent inappropriately. We are grateful to work with our partners at the U.S. Attorney’s Office and law enforcement to protect Georgians.”
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 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. 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.
Specifically, the Northern District of Georgia case announced as part of the nationwide Medicare Strike Force takedown:
United States v Rosa Fitzhugh
According to U.S. Attorney Pak, the indictment, and other information presented in court: Rosa Fitzhugh owned and operated Casa Luisa, Inc. with locations in Decatur, Georgia. Fitzhugh was a licensed professional counselor (“LPC”) that purportedly provided mental health counseling. In 2014, Fitzhugh and Casa Luisa, Inc. were terminated from several Medicaid funded care management organizations (“CMOs”). After termination, Fitzhugh continued to fraudulently bill these CMOs by contracting with enrolled LPCs. Fitzhugh solicited LPCs to work as independent contractors with companies she controlled and then fraudulently billed CMOs using the LPCs provider numbers for services that were not provided.
Beginning in January 2015, and continuing until October 2017, Fitzhugh billed or directed others to fraudulently bill over $2.4 million to Medicaid CMOs by billing for individual and family psychotherapy services that were not provided, not provided as billed, and not entitled to reimbursement.
The case is being investigated by the U.S. Department of Health & Human Services, Office of the Inspector General, the Federal Bureau of Investigation, and the Georgia State Attorney General’s Medicaid Fraud Control Unit.
Jeffrey Brown, Deputy Chief of the Complex Frauds Section and Assistant Attorney General Elizabeth Grofic are prosecuting the case.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
National Healthcare Fraud Takedown Results in Charges of Medicaid Fraud Against Pair in Southern IllinoisRead the Press Release
Southern District of Illinois Indictment Part of Largest Health Care Fraud Enforcement Action in Department of Justice History
United States Attorney Donald S. Boyce announced today that a federal grand jury in East St. Louis, Illinois, has returned an indictment charging Elizabeth A. Schwarz, 55, of Highland, and Frank Coleman Stroehmer III, 62, of Granite City, with defrauding the Illinois Medicaid Home Services Program. The indictment comes as part of a larger coordinated effort led by the Department of Justice and the Department of Health and Human Services (HHS) to combat health care fraud nationwide.
Earlier today, U.S. Attorney General Jeff Sessions and HHS Secretary Alex M. Azar III announced the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force. The coordinated takedown was led by the Criminal Division, Fraud Section’s Health Care Fraud Unit and resulted in charges against 601 defendants across 55 federal districts. The charges cover a wide variety of health care fraud schemes that together total more than $2 billion in false billings.
According to the Southern District indictment, Schwarz was a beneficiary of the Illinois Home Services Program funded by Medicaid, and Stroehmer was one of her personal assistants in the same program. The pair were charged with felony health care fraud for claiming and receiving payments for services (hourly wages for supporting activities of daily living) that were never performed.
Schwarz and Stroehmer are scheduled to be arraigned on July 9, 2018, at the federal courthouse in East St. Louis, Illinois. Under federal law, each count of health care fraud is punishable by as much as ten years in prison and a $250,000 fine.
The case against Schwarz and Stroehmer is being investigated by HHS-OIG agents and the Illinois State Police Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney Michael J. Quinley.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
National Healthcare Fraud Takedown Results in Charges against 601 Individuals Responsible for over $2 Billion in Fraud LossesRead the Press Release
CEDAR RAPIDS - 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 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), Inspector General Daniel R. Levinson of the HHS Office of Inspector General (OIG), Deputy Chief Eric Hylton of IRS Criminal Investigation, Administrator Seema Verma of the Centers for Medicare and Medicaid Services (CMS), 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, 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 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.”
The United States Attorney for the Northern District of Iowa, Peter E. Deegan, Jr., lauded the enforcement actions. “Our office will aggressively fight health care fraud and prosecute those individuals who contribute to the opioid epidemic. We will seek out and prosecute those medical professionals who abuse the trust that society places in them by unlawfully diverting opioids and other controlled substances.”
“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 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.
United States Attorney Deegan announced two criminal prosecutions in the Northern District of Iowa. The prosecutions are:
United States v. James Moorehead: James Moorehead, a registered nurse, was charged with three counts of acquiring a controlled substance by misrepresentation, fraud, deception, or subterfuge, and seven counts of false statements relating to health care matters. The charges stem from Moorehead using the identities of multiple hospital patients with prescriptions for pain medications containing hydrocodone to dispense and divert the pills to his own personal use, and falsely indicating in Medicare beneficiaries’ medical records that those medications were administered to the patients. This case is being handled by AUSA Lyndie Freeman and was investigated by the Iowa Medicaid Fraud Control Unit.
United States v. Lacey Staveley: Lacey Staveley, also a nurse, was charged with one count of acquiring a controlled substance by misrepresentation, fraud, deception, and subterfuge, and three counts of false statements relating to health care matters. The charges stem from Staveley allegedly making false entries in the electronic medical records of a Cedar Falls, Iowa, nursing home with respect to two residents. It is alleged that Staveley indicated she had administered oral tablets containing hydrocodone, which was paid for by Medicare, to the nursing home residents when in truth Staveley diverted those oral tablets for her own use. This case is being handled by AUSA Tim Vavricek and was investigated by the Iowa Medicaid Fraud Control Unit.
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 nine 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.
Additional documents related to this announcement will 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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file numbers are 18-CR-2031-LRR and 18-CR-3021-LRR.
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National Healthcare Fraud Takedown Results in Charges Against 590+ Individuals Responsible for $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 by the Medicare Fraud Strike Force, involving 590+ charged defendants across 56 federal districts, including 150+ 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 150 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Twenty-nine state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS announced today that from June 2017 to the present, 587 providers have been served with exclusion notices 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), Inspector General Daniel R. Levinson of the HHS Office of Inspector General (OIG), Deputy Chief Eric Hylton of IRS Criminal Investigation (CI), Director Alec Alexander of the Centers for Medicare and Medicaid Services (CMS) Center for Program Integrity 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 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. 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.
Cases within the Eastern District of Louisiana include:
United States v. Luis Cabrera, Jr., et al. (E.D. La) (Opioids): On June 22, 2018, Luis R. Cabrera, Jr., Victoria J. Skeldon, Bennie R. Harris, Jesse J. Wildenfils, Stephanie N. Free, Jarrod A. Doubleday, John A. Doubleday, Whitney J. Swan, III, Stephanie M. Faciane, and Cynthia B. Foret, were charged in a twelve-count indictment related to their roles in violating the Controlled Substances Act. Cabrera, Jr., Skedon, Harris, Wildenfils, Free, Jarrod Doubleday, John Doubleday, Swan, III, and Faciane were charged with a dual-object conspiracy to acquire and obtain oxycodone by fraud and to possess oxycodone with the intent to distribute. Cabrera, Jr., and Skeldon were each charged with one count of possession of oxycodone with the intent to distribute. Harris, Wildenfils, Free, Jarrod Doubleday, John Doubleday, Swan, III, and Faciane were each charged with one count of obtaining oxycodone through fraud. Cabrera, Jr. and Foret were charged with a dual-object conspiracy to acquire and possess oxycodone through fraud and to possess oxycodone with the intent to distribute. Cabrera, Jr. and Foret were also charged with one count of possession of oxycodone with the intent to distribute.
The charges stem from the defendant’s involvement in a prescription drug ring in the greater New Orleans area where the defendants used stolen fraudulent prescriptions to obtain and sell oxycodone pills. U.S. Attorney Evans praised the investigative work by the Federal Bureau of Investigation, HHS-OIG, the Drug Enforcement Administration, and the Jefferson Parish Sheriff’s Office. The case is being handled by DOJ Trial Attorney Jared Hasten and Assistant United States Attorney Myles Ranier (AUSA).
United States v. Wayne Jerome Celestine (E.D. La) (Opioids): On June 27, 2018, U.S. Attorney Duane A. Evans announced the unsealing of a superseding indictment against Wayne Jerome Celestine, age 57, a physician who practices in Gretna, Louisiana and resides in the New Orleans area. The superseding indictment contained the original charge of distribution of controlled substances, plus a money laundering charge involving approximately $1.6 million.
On Monday, April 30, 2018, Dr. Celestine was arrested. According to court records, Dr. Celestine illegally dispensed and conspired with others to illegally dispense controlled substances, including oxycodone, oxycodone/acetaminophen, oxycontin HCL, oxymorphone HCL, hydromorphone, opana, fentanyl, suboxone, and morphine sulfate, a Schedule II drug controlled substances; hydrocodone/acetaminophen, a Schedule III drug controlled substance until October 6, 2014, thereafter, a Schedule II drug controlled substance; and alprazolam, diazepam, and carisoprodol, Schedule IV drug controlled substances.
Celestine made his initial appearance on the original indictment before U.S. Magistrate Court Judge Daniel E. Knowles, III, on Monday, April 30, 2018. A detention hearing was held on May 1, 2018, and he was detained.
If convicted of the original charge (Count 1), Celestine will face a maximum of not more than 20 years in prison on the drug conspiracy charge, pursuant to Title 21, United States Code, Sections 841(a)(1) and 846. Celestine will also be subject to a fine of not more than one million dollars and a minimum term of supervised release of three years, following any term of imprisonment.
If convicted on the new additional charge (Count 2), Celestine faces not more than 20 years in prison, a $500,000 fine or twice the value of property involved, and three years of supervised release.
U.S. Attorney Evans praised the work of the Special Agents of the Drug Enforcement Administration, Internal Revenue Service, Jefferson Parish Sheriff’s Office, Harahan Police Department, Westwego Police Department, Louisiana State Police, St. Bernard Parish Sheriff’s Office, New Orleans Police Department, and New Orleans District Attorney’s Office in investigating this matter. Assistant United States Attorney John F. Murphy is in charge of the prosecution.
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 nine 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.
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National Healthcare Fraud Takedown Results in Charges Against over 600 Individuals, Including Several Chicago-Area Medical ProfessionalsRead the Press Release
CHICAGO — Several Chicago-area medical professionals, including four physicians, are facing federal criminal charges as part of the largest health care fraud enforcement action in Department of Justice history, federal authorities announced today.
The national enforcement action taken by the Medicare Fraud Strike Force involved over 600 defendants charged throughout the country, including more than 150 physicians, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $2 billion in false billings. Several of the doctors were charged for their alleged roles in prescribing and distributing opioids and other dangerous narcotics. In addition, the Department of Health and Human Services has initiated suspension actions against numerous providers, including doctors, nurses and pharmacists.
The national enforcement action was announced by Attorney General Jeff Sessions; HHS Secretary Alex M. Azar III; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Deputy Director David L. Bowdich of the Federal Bureau of Investigation; Assistant Administrator John Martin of the U.S. Drug Enforcement Administration; Inspector General Daniel R. Levinson of the HHS Office of Inspector General; Deputy Chief Eric Hylton of the Internal Revenue Service’s Criminal Investigation Division; Director Alec Alexander of the Centers for Medicare and Medicaid Services; and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service.
Today’s enforcement actions were led and coordinated by the DOJ Criminal Division Fraud Section’s Health Care Fraud Unit, in conjunction with the Medicare Fraud Strike Force – a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. The operation includes the participation of the DEA, DCIS, and State Medicaid Fraud Control Units.
"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."
"Medicare and Medicaid are significant health care programs that pay for vital medical services," said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. "Our office will continue to investigate and prosecute any medical professional who knowingly violates the rules and abuses the trust placed in them by the government and their patients."
"Our nation’s opioid epidemic has no boundaries, and today’s actions highlight just that," said Brian M. McKnight, Special Agent-in-Charge of the Chicago Field Division of the DEA. "Opioid addiction and the criminal activity driving it extend far beyond the cartels and gang violence to the rogue medical professionals identified today."
Several Chicago-area medical professionals, including four doctors, were charged as part of investigations in the Northern District of Illinois. The local charges were announced by U.S. Attorney Lausch; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor, Office of Inspector General; DEA Chicago SAC McKnight; Gabriel L. Grchan, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of HHS-OIG.
Two of the Illinois cases involved licensed physicians who allegedly falsely certified patients for home-health services reimbursed by Medicare. The indictments against DR. FLORENTINO LEONG and DR. RUBEN INOCENCIO allege that the doctors authorized in-home services even though they knew the patients were not confined to their homes and did not require such services. Dr. Leong, 78, of Orland Park, and Dr. Inocencio, 77, of Skokie, are charged with health care fraud and making false statements in a health care matter. Arraignment for Dr. Leong is set for today at 10:00 a.m. before U.S. District Judge Manish S. Shah, while arraignment for Dr. Inocencio has not yet been scheduled. Their cases are being prosecuted by Assistant U.S. Attorney Stephen Chahn Lee.
Another Illinois case involves a licensed psychiatrist, DR. KIRK HOPKINS, who allegedly earned more than $5.5 million by falsely billing Medicaid and Medicare for psychotherapy services that were never performed. Dr. Hopkins, 44, of Chicago, pleaded not guilty to five counts of wire fraud during his arraignment Wednesday before U.S. District Judge Joan H. Lefkow. A status hearing is set for July 25, 2018, at 9:00 a.m. The case is being prosecuted by Assistant U.S. Attorney Sheri H. Mecklenburg. Substantial investigative assistance was provided by the Illinois State Police Medicaid Fraud Control Bureau – North.
The fourth Illinois physician charged as part of the enforcement action is DR. SYED ATHER, who owned two home-visiting physician companies in Lincolnwood – Mobile Physicians S.C. and M&F Medical Services Ltd. Dr. Ather allegedly billed Medicare for at least $2.8 million of unnecessary and "up-coded" home-physician visits from 2010 to 2018. Dr. Ather, 44, of Lincolnwood, pleaded not guilty to 14 counts of health care fraud during his arraignment Wednesday before U.S. District Judge Matthew F. Kennelly. A status hearing is set for Sept. 24, 2018. The case is being prosecuted by Trial Attorney Leslie S. Garthwaite of the Justice Department’s Criminal Division Fraud Section.
Federal charges were also filed in Illinois against a patient marketer, LINDA HAWKINS, who recruited home-health patients on behalf of at least four agencies in the Chicago area. Hawkins allegedly promoted the services of her home-health agency clients at churches and senior buildings, and received more than $180,000 in bribes and kickbacks from the agencies from 2010 to 2016. An indictment charges Hawkins, of Robbins, with one count of conspiracy to solicit and receive health care kickbacks, and six counts of soliciting and receiving health care kickbacks. She is scheduled to be arraigned today at 1:30 p.m. before U.S. Magistrate Judge Michael T. Mason. The case is being prosecuted by Trial Attorney Patrick Mott of the Justice Department’s Criminal Division Fraud Section.
The owner of a home health agency was also charged as part of the Chicago-area investigations. YURI LUDVINSKY, 55, of Chicago, was charged with three counts of violating the Anti-Kickback Statute, stemming from alleged kickback payments Ludvinsky made to a physician for referring patients to Ludvinsky’s agency. Arraignment in federal court in Chicago has not yet been scheduled. The case is being prosecuted by Assistant U.S. Attorney Nathalina Hudson.
The Medicare Fraud Strike Force operates in nine locations nationwide. Its 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. Since its inception in March 2007, the Medicare Fraud Strike Force has charged more than 3,700 defendants who collectively have falsely billed the Medicare program for more than $14 billion.
The public is reminded that charges are merely allegations, and all defendants are presumed innocent until proven guilty.
National Healthcare Fraud Takedown Results in Charges Against 601 Individuals Responsible for over $2 Billion in Fraud LossesRead the Press Release
Tampa, FL – U.S. Attorney Maria Chapa Lopez; Attorney General Jeff Sessions; Shimon R. Richmond, Special Agent in Charge for the U.S. Department of Health & Human Services Office of Inspector General; A.D. Wright, Special Agent in Charge of the DEA Miami Division; John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service-Southeast Field Office; Eric W. Sporre, Special Agent in Charge of the FBI Tampa Division; and Social Security Acting Inspector General Gale Stallworth Stone announced today that 21 individuals were charged in the Middle District of Florida for their alleged participation in various fraud schemes involving, among other things, health care fraud, distributing and dispensing controlled substances not for a legitimate medical purpose and outside the usual course of professional practice, conspiracy to solicit and receive health care kickbacks, and theft of government funds.
These charges are part of 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 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.
The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE, 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, including 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.”
“As patients, individuals place great confidence in their healthcare providers to ensure that the treatment and care they receive is delivered at the highest level,” said U.S. Attorney Chapa Lopez. “As taxpayers, our citizens expect that the programs they fund are utilized as they are intended, in a safe and prudent manner, free from fraud and deception. We will continue to work with our partners to ensure that these expectations are met.”
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 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. 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.
“Health care fraud and opioid abuse are threats to this country, both in terms of the well-being of patients and the viability of government health care programs,” said Shimon R. Richmond, Special Agent in Charge for the U.S. Department of Health & Human Services Office of Inspector General. “This takedown sends a clear message that criminals who engage in health care fraud schemes and illicit opioid distribution will be caught. Working collaboratively with our state and federal partners, we will continue to bring these criminals to justice.”
“DEA is committed to ending the opioid crisis that continues to plague Florida and endanger the welfare of our communities. We are equally committed to preventing prescription drug abuse which facilitates addiction and too often results in death,” said DEA Miami Field Division Deputy Special Agent in Charge Jaime Camacho. “The DEA Miami Field Division will continue to work with our law enforcement partners to protect our communities and ensure that medical professionals do not abuse their authority by over-prescribing unnecessary controlled medications.”
John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service-Southeast Field Office stated, "As part of the National Health Care Fraud multi-agency joint effort, the DCIS-Southeast Field Office contributed significant resources and efforts to achieve a successful operation to effectively combat widespread fraud and abuse, and preserve the integrity of TRICARE, a vital DoD program serving U.S. service members, retirees, and their families."
“The FBI Tampa Division is committed to working collaboratively with our federal, state and local partners to address the opioid crisis and health care fraud in our communities. The tireless efforts put forth by the investigators and attorneys in this investigation will have a significant impact and we will continue to work with a sense of urgency to identify others involved in similar schemes,” said Eric W. Sporre, Special Agent in Charge of the FBI Tampa Division.
“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.”
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.
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.
Middle District of Florida Case Summaries
Tampa
Dr. Charles Gerardi has been charged with conspiracy, health care fraud, and obstruction of a federal audit. Gerardi is a licensed psychologist who was formerly associated with a group practice known as Geriatric Psychological Specialists (GPS). According to court documents, GPS contracted with nursing homes and other long-term care facilities to provide psychological services to residents. For years, Gerardi impermissibly billed Medicare for providing medically unnecessary psychotherapy to Medicare beneficiaries who suffered from severe dementia and, at times, he billed for psychotherapy when he was actually performing medication management, a non-covered service when performed by a psychologist. First Coast initiated an audit of Gerardi’s practices in 2012. Gerardi tried to obstruct the audit by creating phony patient records and providing those records to the auditor. Finally, when First Coast placed Gerardi on prepayment review for the 20-minute billing code he had used for years, Gerardi changed his submitted billing code to reflect 45-minute sessions but continued to provide patients only 20-minute sessions.
Dr. Zachary Bird was charged in a six-count indictment with distributing and dispensing controlled substances not for a legitimate medical purpose and outside the usual course of professional practice. Bird is an anesthesiologist that operated a pain management clinic called Physicians Wellness and Pain Specialists (PWPS) in Tampa. According to court documents, this clinic functioned as a “pill mill” where Bird prescribed large quantities of opiates to his patients. Specifically, from January 2015 to the end of May 2018, Bird prescribed approximately 5.2 million tablets of hydrocodone, methadone, morphine, and oxycodone at PWPS. Bird was arrested on June 25, 2018.
Dr. Jeffrey Abraham has pleaded guilty to a one-count information charging him with distribution of controlled substances not specified by his DEA registration. Abraham was previously employed at two local Veterans Affairs hospitals in the Tampa-area. As a VA physician, he was authorized by the DEA to write prescriptions for controlled substances only as part of official federal duties. According to the plea agreement, Abraham resigned from the VA to work at a pain management clinic in Tampa. His official federal duty registration was not transferable, and Abraham did not obtain a new DEA registration to write controlled substance prescriptions to the patients he saw while employed at the clinic. From August 2017 to March 2018, while at the clinic, Abraham wrote over 2,000 prescriptions for controlled substances, including more than 600 prescriptions for hydromorphone and over 1,000 prescriptions for oxycodone. On March 8, 2018, Abraham admitted to federal agents that he knew his official federal duty DEA registration number could not be used at the clinic, and agreed to surrender his DEA registration.
Alcira Mercedes Wells and her former husband, Edward Leonard Wells, Jr., have been charged with conspiracy, healthcare fraud, and aggravated identity theft. According to the indictment, between May 2014 and February 2015, Centurion Compounding, Inc., a marketing firm that was located in Florida, employed representatives to market compounded medications for conditions like pain and scars to beneficiaries of health care benefit programs, especially TRICARE. Lifecare and Oldsmar Pharmacies billed the beneficiaries’ health care benefit plans for these creams, which ranged in price from approximately $900 to $21,000 for a one-month supply. Lifecare and Oldsmar, at various times, paid Centurion a portion, approximately 50%, of each claim paid by the health care benefit programs, minus expenses, for each prescription. Centurion, in turn, paid its marketing representatives a percentage of each paid claim, which ranged from 15-30% of the total claim amount after expenses. From September 2014 to February 2015, Alcira Wells was a Connecticut-based Centurion marketing representative married to Edward L. Wells, Jr., who was in the Army stationed at Ft. Bragg in North Carolina. Alcira Wells obtained from her mother-in-law, a nurse at a Navy hospital in Jacksonville, Florida, signed prescription forms prescribing Centurion-marketed compounded creams to Edward Wells and his brother. These prescriptions featured Alcira Wells’s Centurion rep number and the signature of a physician in Jacksonville. After receiving these signed prescription forms, Alcira Wells, with Edward Wells’s knowledge and consent, photocopied or otherwise duplicated them. The Wellses then submitted numerous fraudulent prescriptions for Centurion-marketed compounded medications for U.S. Army personnel stationed at Ft. Bragg and others living in Connecticut, which prescriptions the Jacksonville-based physician never wrote, authorized, or knew about. Edward Wells handed out Centurion prescription forms to personnel stationed with him in North Carolina, most of whom were subordinate in rank, and paid and offered to pay these TRICARE beneficiaries to obtain the compounded creams. After the soldiers filled out or provided their identifiers, Edward transmitted the beneficiaries’ information to Alcira Wells in Connecticut; she then transferred it onto forms with the doctor’s duplicated signature. Alcira Wells submitted these prescriptions first to Centurion and then to Lifecare or Oldsmar Pharmacy for filling, and all were billed to TRICARE. Centurion paid and promised to pay Alcira Wells and those working with her commissions for each filled prescription. The total claimed amount or intended loss was at least $1,246,787.00 and the total amount paid by TRICARE was $1,061,137.16.
Dion Gregory Fisher and Samuel Blaine Huffman have been charged with conspiracy to possess with the intent to manufacture and distribute, and possession with the intent to distribute, counterfeit oxycodone pills made with fentanyl and a fentanyl analogue. Fisher is also charged with multiple counts of distributing the counterfeit oxycodone pills and engaging in money laundering-illegal monetary transactions using proceeds of the drug crimes.
Phillip Morose has been charged with conspiracy to possess with the intent to distribute and to distribute counterfeit oxycodone pills made with fentanyl and a fentanyl analogue.
Christopher McKinney has agreed to plead guilty to conspiring with Fisher, Morose and others to manufacture and distribute counterfeit oxycodone pills made with fentanyl and a fentanyl analogue. According to the plea agreement, Fisher and McKinney manufactured and sold counterfeit oxycodone pills. Fisher supplied the fentanyl and pill processing materials, and pressed the powder fentanyl into counterfeit oxycodone pills with the help of Huffman. McKinney sold the pills to Morose, using the U.S. Mail to exchange packages of pills and currency. His change of plea hearing is set for July 2, 2018.
Konrad Guzewicz has entered pleas of guilty to four counts of money laundering. According to the plea agreement, Guzewicz engaged in illegal monetary transactions involving proceeds of the drug crimes with which Fisher has been charged. Guzewicz admitted that Fisher recruited him to launder large sums of cash generated by the distribution of counterfeit oxycodone pills made with fentanyl and other controlled substances or analogues, and he personally participated in the laundering of at least $120,000 in drug proceeds for Fisher.
Caridad Limberg-Gonzalez and Dr. Thomas Carpenter have been charged with one count of conspiracy to commit health care fraud and wire fraud, four counts of health care fraud and three counts of making false statements in connection with heath care matters. According to the indictment, Limberg-Gonzalez owned Foundational Health, a Tampa-area clinic, and Carpenter was the medical director there. Between May 2011 and October 2016, Limberg-Gonzalez caused Foundational Health to submit $1.8 million in claims to Part B of the Medicare program listing Carpenter as the rendering physician. In truth, the services were provided by nurse practitioners, physician’s assistants, and medical doctors who were not enrolled in the Medicare program, all without any supervision by Carpenter. In addition, Limberg-Gonzalez gave Carpenter plans of care and face-to-face encounter forms authorizing home health services to sign. Carpenter signed the documents, even though he never saw or cared for the patients identified in those documents. According to the indictment, Accurate Home Health, a Tampa-area home health agency, relied on the documents that Carpenter signed to submit approximately $762,000 in claims to Part A of the Medicare program.
Roselle Fitzgerald has been charged with one count of theft of government funds, two counts of false statement to a federal agency, seven counts of counterfeit or forged securities, and three counts of fraudulent use of a means of identification. According to the indictment, Fitzgerald worked as a title closer at various law firms while simultaneously obtaining Social Security Disability Insurance and Medicare benefits to which she was not entitled. She also made material false statements to employees of the Social Security Administration regarding her work activity. In addition, Fitzgerald possessed counterfeit or forged checks from the law firms at which she was employed and used the means of identification of others in connection with the counterfeit or forged checks. The indictment also notifies Fitzgerald that the United States is seeking a money judgement in the amount of $192,091.20, the proceeds of theft of government funds and the counterfeit or forged securities.
Orlando
Erving Rodriguez was charged by information with one count of conspiracy to solicit and receive health care kickbacks. The charge stems from Rodriguez’s role as the owner of ER Pro Corp., a marketing company that purportedly provided marketing services to pharmacies. According to court documents, from approximately January 2015 through August 2015, Rodriguez was involved in a scheme whereby he was paid by Life Worth Living Pharmacy for sending prescriptions for expensive compounded creams to the pharmacy that were ultimately billed to TRICARE. Rodriguez received approximately $3,185,155.96 in kickback payments for prescriptions that were ultimately billed to TRICARE for approximately $7,625,263.38.
Homer Zulaica was charged by information with conspiracy to offer and pay health care kickbacks stemming from his role as a sales representative for QMedRX, a compounding pharmacy. According to court documents, from approximately May 2013 through April 2014, Zulaica paid health care kickbacks to, among others, a physician and TRICARE beneficiaries in return for prescribing and receiving expensive compounded prescriptions that were billed to TRICARE. As a result of these kickbacks, TRICARE paid QMedRX approximately $1,271,198.68.
Dr. Christopher Devine was indicted on one count of conspiracy to commit health care fraud and wire fraud and two counts of health care fraud for his role in prescribing medically unnecessary compounded creams for TRICARE beneficiaries. According to the indictment, from approximately May 2013 through March 2015, Devine provided these prescriptions for medically unnecessary compounded drugs to a sales representative, Homer Zulaica, and in return received health care kickbacks. The compounded drugs were ultimately billed to TRICARE and resulted in a loss of approximately $1,640,363.98.
Omar Zoobi, a pharmacist and co-owner of Metro Pharmacy (“Metro”) and Metro RX Pharmacy LLC (“Metro RX”), and Gregory Sikorski, a physician’s assistant, were indicted in a 10-count indictment charging each with one count of conspiracy to commit health care fraud and wire fraud, four counts of health care fraud, and one count of conspiracy to defraud the United States and pay and receive health care kickbacks. Zoobi was also charged with two counts of paying health care kickbacks and Sikorski was charged with two counts of receiving health care kickbacks. The charges stem from a scheme whereby Zoobi and another co-conspirator allegedly paid kickbacks to Sikorski in return for prescribing medically unnecessary compounded creams that were billed by Metro and Metro RX to Medicare. Metro and Metro RX also billed Medicare for prescription drugs that were not dispensed or were not dispensed as prescribed. As a result of these actions, from approximately January 2012 through February 2018, Medicare paid Metro and Metro RX approximately $5,511,963.53.
Ashraf Badr, a pharmacist and co-owner of Metro Pharmacy (“Metro”) and Metro RX Pharmacy LLC (“Metro RX”), was charged by information with one count of conspiracy to commit health care fraud stemming from his role in a scheme whereby Badr and a co-conspirator paid a physician’s assistant kickbacks in return for prescribing medically unnecessary compounded creams that were billed to Medicare. Metro and Metro RX also billed Medicare for prescription drugs that were not dispensed. As a result of these actions, from approximately January 2012 through February 2018, Medicare paid Metro and Metro RX approximately $1,812,499.64.
Andres Arteaga Perez has been charged with one count of theft of government property and one count of aggravated identity theft. According to court documents, Perez applied for and received Social Security Disability Insurance Benefits, Supplemental Security Income, and Medicare benefits under a stolen identity. He received $423,602.80 in Social Security and Medicare benefits to which he was not entitled.
Ft. Myers
Dr. Michael Frey has pleaded guilty to two counts of conspiracy to receive healthcare kickbacks. In addition to his guilty plea, Frey has agreed to a civil settlement under which he will pay $2.8 million to the United States to resolve allegations that he violated the False Claims Act in a number of ways, including receiving illegal kickbacks and by ordering medically unnecessary laboratory tests. During the relevant period, Frey was a practicing interventional pain management specialist and one of the two principal owners of Advanced Pain Management Specialists, P.A., which is located in Fort Myers. Beginning in 2010, Frey conspired with the owners of A&G Spinal Solutions, LLC, a durable medical equipment provider, to receive compensation in exchange for referrals to A&G Spinal. Frey was paid a percentage of A&G Spinal’s profits based on his referrals and referrals from other providers at Advanced Pain. A&G Spinal rewarded Frey through checks made payable to his wife, creating the impression that Mrs. Frey was an employee of A&G Spinal, when she was not. The two principals of A&G Spinal, Ryan Williamson and William Pierce, have pleaded guilty to conspiring to pay healthcare kickbacks to Frey and are currently awaiting sentencing. In addition, from 2013 to 2015, Frey also received cash payments from Ryan Williamson in exchange for referrals of compound pharmaceutical pain cream prescriptions. Williamson has also pleaded guilty for his role in this arrangement. In his plea agreement, Frey also admitted that he had received kickbacks in the form of speaker fees paid to him in connection with his participation in largely bogus Insys Therapeutics, Inc. speaker event programs. Insys manufactures a fentanyl sublingual spray known as SUBSYS. Insys paid kickbacks to Frey to induce him to write prescriptions for their product. The civil settlement also resolves allegations that, between 2013 and 2016, Frey caused the submission of false claims to Medicare and TRICARE by ordering definitive Urine Drug Testing (“UDT”) in circumstances where such testing was not reasonable and medically necessary. In addition, the civil settlement resolves kickback allegations associated with anesthesia services provided by Anesthesia Partners of SWFL, LLC that was owned by Frey and his partner Dr. Jonathan Daitch. Anesthesia Partners provided anesthesia services exclusively for the procedures performed by the Advanced Pain physicians. They contracted with Certified Registered Nurse Anesthetists (“CRNAs”) to provide the anesthesia services. These CRNAs were paid a contracted rate, and Anesthesia Partners would bill Medicare and TRICARE directly for the anesthesia services they provided. This arrangement resulted in improper reimbursements to Frey as one of the owners of Anesthesia Partners.
The Middle District of Florida cases are being prosecuted by Assistant U.S. Attorneys Kelley Howard-Allen, Rachel Jones, Greg Pizzo, Amanda Riedel, Daniel Baeza, Simon Eth, and Gregory Nolan, Trial Attorneys Alexander Kramer and Timothy Loper of the Criminal Division’s Fraud Section, and Special Assistant U.S. Attorney Suzanne Huyler.
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 today's national announcement are available here: https://www.justice.gov/opa/documents-and-resources-june-28-2018.
National Healthcare Fraud Takedown Results in Charges Against 601 Individuals Responsible for $2 Billion in Fraud LossesRead the Press Release
HARRISBURG - 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.
Attorney General Sessions and Secretary Azar were joined in the announcement by Acting Assistant Attorney 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), Inspector General Daniel R. Levinson of the HHS Office of Inspector General (OIG), Deputy Chief Eric Hylton of IRS Criminal Investigation, Administrator Seema Verma of the Centers for Medicare and Medicaid Services (CMS), 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, 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 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.”
“The level of this public health crisis demands extraordinary efforts in the areas of Health Care Fraud and Drug Diversion,” said United States Attorney David J. Freed. “We will not waver in our efforts to reduce the amount of drugs on our streets and the deaths that so often follow their over prescription and misuse. Today’s nationwide takedown involving substantial cooperation across federal and state agencies helps us send a strong message: This must stop.”
“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.”
“Health care fraud is not a victimless crime – it affects every one of us,” said Maureen Dixon, Special Agent in Charge for the U.S. Department of Health & Human Services Office of Inspector General. “We will continue to work with our law enforcement partners to bring these criminals to justice, return stolen dollars back to our government health care programs, and protect our most vulnerable citizens.”
“The distribution of controlled substance medications for no legitimate medical purpose by a registrant and individuals seeking to obtain them by fraud or forgery is a tremendous threat to the community in which these medications are diverted,” said Jon Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The DEA will continue to investigate any registrant suspected of misusing or abusing their privileges as well as any individual that is seeking to obtain these medications by fraud or other unlawful means. DEA greatly appreciates the coordinated efforts of all the agencies participating in this investigation.”
“Not only did Doctor Stremmel prescribe controlled substances to patients outside of medical necessity, he also falsified records in order to cover his tracks in patient files,” Attorney General Josh Shapiro said. “Thanks to U.S. Attorney David Freed’s office and cooperation with our other law enforcement partners, this man will be held accountable.”
According to court documents, the defendants 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 United States Attorney's Office for the Middle District of Pennsylvania charged Robert L. Stremmel, age 74, of York, Pennsylvania on June 27, 2018, with dispensing opiates and amphetamines outside the course of a professional practice and not for a legitimate medical purpose. The indictment alleges that between July 2013 and January 2018, Stremmel distributed to one person more than 21,000 tablets of oxycodone and dextroamphetamine-amphetamine, both Schedule II controlled substances. The indictment also charges Stremmel with prescribing Xanax, codeine, and Tramadol, Schedule IV and V controlled substances. It is alleged that Stremmel intentionally prescribed these controlled substances outside the usual course of professional practice and not for a legitimate medical purpose. The indictment further charged Stremmel with making a false statement related to a health care matter for allegedly falsifying medical records in conjunction with a Medicare claim.
Diversion Investigators with the Drug Enforcement Administration, Special Agents with the Office of Inspector General for the Department of Health and Human Services and Special Agents with the Pennsylvania Office of Attorney General-Medicaid Fraud Control Section conducted this investigation with assistance from the East Lampeter Township Police Department.
Also charged in four indictments were ten residents of Cumberland and Perry County with obtaining possession of oxycodone, a Schedule II Controlled Substance, by misrepresentation, fraud and forgery. Charged in the indictments are:
- Pauline M. Wolfe, age 62, of Carlisle, PA;
- Bruce A. Greenwald, age 40, Mechanicsburg, PA;
- Angela L. Greenwald, age 40, Mechanicsburg, PA;
- Charles J. Greenwald, age 31, of Carlisle, PA;
- Heather Amanda Wolfe, age 27, of Carlisle, PA;
- Megan Nico Bergstresser, age 31, Carlisle, PA;
- Amy Beth Jones, age 32, Mechanicsburg, PA;
- Joseph Benjamin Shatto, age 28, of Carlisle, PA;
- Melissa L. Hunsicker, age 43, of Enola, PA;
- David Allen Hunsicker, age 48, of Dillsburg, PA.
The indictments allege that between December 2016, and June 2017, the defendants conspired with each other and others to create false, fraudulent and forged prescriptions for oxycodone. Several of the defendants were also charged with making false statements in connection with payment of health care benefits. The indictment also alleges several defendants used the Medicare and Medicaid program benefits to pay for the forged prescriptions they filled at area pharmacies. At least three of the defendants stole the identities of Medicare and Medicaid beneficiaries to obtain payment for the fraudulently obtained opioids. The conspiracy is alleged to have resulted in the unlawful possession of approximately 10,000 oxycodone tablets.
Special Agents of the Office of Inspector General (OIG) for the United States Department of Health and Human Services and Diversion Investigators with the Drug Enforcement Administration (DEA) conducted this investigation. On June 26, 2018, OIG, DEA, Carlisle Police Department, Mechanicsburg Police Department, Marysville Police Department, West Shore Regional Police Department, Pennsylvania State Police, Perry County Sheriff’s Department, BNI and Cumberland County Sheriff’s Department searched for and executed arrest warrants for the defendants. Assistant United States Attorney Joseph Terz is prosecuting both cases.
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 nine 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.
# # #
National Health Care Fraud Takedown Results in Charges Against 601 Individuals Responsible for over $2 Billion in Fraud LossesRead the Press Release
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.
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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 $6.2 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, 21 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.
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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.
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, 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.”
“We will continue to prosecute criminal acts that contribute to the opioid abuse crisis and that undermine our healthcare system in our district,” said Richard W. Moore, United States Attorney for the Southern District of Alabama. “We have skilled prosecutors and diligent special agents who know how to present these cases to juries who we will ask to convict these defendants.”
“The abuse of prescription drugs remains a significant problem in communities across the nation, to include Alabama. For the health and safety of our citizens, DEA will continue to target the illegal diversion of these pharmaceuticals, which can destroy lives. We hope that these indictments and arrest will serve as a reminder to anyone who might illegally divert pharmaceuticals that they will be held accountable for the harm they cause,” said Stephen G. Azzam, Special Agent in Charge of the Drug Enforcement Administration’s New Orleans Field Division.
“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.”
Nine defendants were arrested this week in the Southern District of Alabama for their roles in the unlawful distribution of opioids. They were charged with the distributions of controlled substances to include, Morphine, Hydrocodone, Oxycodone, Oxymorphone, OxyContin, or Fentanyl. Three of the defendants are from Selma and the remaining six are from Mobile.
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 Against 601 Individuals Responsible for More than $2 Billion in Fraud Losses; Seven Charged in San DiegoRead the Press Release
Assistant U. S. Attorney Valerie Chu (619) 546-6750
NEWS RELEASE SUMMARY – June 28, 2018
SAN DIEGO – Seven defendants, including a physician and two chiropractors, were charged in San Diego as part of the largest healthcare fraud enforcement action in Department of Justice history.
The national 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.
In San Diego, the cases include:
- Marco Antonio Chavez, a licensed medical doctor specializing in psychiatry, was charged with 30 counts of health care fraud in connection with over $928,000 in bills he submitted to TRICARE for services he never provided. He was also charged with five counts of aggravated identity theft and one count of obstruction of a federal audit. According to the indictment, he misappropriated the personal identifying information of TRICARE beneficiaries to submit fraudulent bills to TRICARE, and then lied during the course of a subsequent federal audit. Chavez allegedly used the proceeds of his scheme to purchase, among other luxury items, a 2016 Jaguar F-type and tens of thousands of dollars in David Yurman jewelry. On June 26, 2018, agents executed a search warrant at Chavez’s residence, and seized the Jaguar. The United States is seeking to forfeit all proceeds of Chavez’s illegal activity.
- Four defendants, including two chiropractors, a physical therapist and an acupuncturist, were charged with conspiracy to commit health care fraud and honest services fraud and to pay unlawful kickbacks stemming from their operation of R.I.S.E. Medical Center. According to the indictment, R.I.S.E. operated several “Wellness Centers” in San Diego County, including Bonita and Oceanside, and offering a range of services including physical therapy, diagnostic tests, massages, chiropractic treatments, and acupuncture. Since TRICARE and Medicare do not cover most of those benefits, the defendants misrepresented acupuncture, chiropractic, and massage services as “physical therapy,” and billed TRICARE and Medicare as if “physical therapy” had been provided. Joserodel Zavala Candelario, a chiropractor and owner of R.I.S.E., imposed quotas for non-reimbursable services and treatments, allegedly telling staff that they were expected to provide a certain number of diagnostic tests, “no matter what”; to “grab patients in lobbies to put into provider schedules”; and to ply patients with complimentary treatments so R.I.S.E. could continue to fraudulently bill TRICARE and Medicare. According to the indictment, the defendants fraudulently billed over $23 million to TRICARE, and over $9 million to Medicare.
- In addition, Candelario was also charged with paying a patient recruiter over $18,000 to refer TRICARE patients to the R.I.S.E. clinic. The recruiter, Mariam Reyes, was charged separately with conspiring to solicit and receive kickbacks.
- In a separate indictment, Candelario was charged with participating in a scheme to defraud California Workers’ Compensation insurers and R.I.S.E. patients by receiving illegal kickbacks and bribes to refer patients to certain providers. According to the indictment, Candelario paid kickbacks to his co-schemers through a front company in exchange for referrals of Workers’ Compensation patients, and then concealed these kickbacks through sham “marketing” agreements. One of Candelario’s co-schemers, Boris Dadiomov, was charged separately for his role in the fraudulent conspiracy. As a result of their unlawful cross-referral kickback scheme, Candelario and the other schemers received over 500 illegal patient referrals and submitted over $6.6 million in false billings to insurance companies.
“With healthcare costs skyrocketing, and with patients’ well being on the line, we cannot afford the financial and physical costs of fraud,” said U.S. Attorney Adam Braverman. “Doctors are especially culpable as they are violating the sacred trust they should have with their patients. We are working hard every day to protect patients, taxpayers, ratepayers who are being exploited by those members of the medical community who prefer purchasing power over principle.”
“The FBI is fully committed to protecting our nation’s health care programs that have an impact on San Diegans,” said FBI Special Agent in Charge John Brown. “As evidenced by the broad range of health care fraud cases announced today, the FBI and our partners have shown that we will uncover fraud affecting our public health insurance programs whether committed by a mental health professional, a chiropractor, physical therapist, acupuncturist, physician, ancillary medical service provider or a medical marketer….the health and safety of our citizens depend on it.”
“Public health insurance programs, such as Medicare and TRICARE, are not a personal pocketbook for criminals seeking to exploit government programs designed to help those who need these plans the most,” stated R. Damon Rowe, Special Agent in Charge of IRS Criminal Investigation’s Los Angeles Field Office. “Taxpayers rightly expect individuals working in the healthcare industry that receive payments from taxpayer-funded programs to scrupulously follow the rules. IRS Criminal Investigation will continue to protect the integrity of public health insurance programs and ensure that doctors, chiropractors, and medical service providers who profit from these illicit schemes are held accountable.”
The national takedown was announced today by Attorney General Jeff Sessions. The cases 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.
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.
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.
DEFENDANT Case Number 18cr2930
Marco Antonio Chavez
SUMMARY OF CHARGES
(Counts 1-30)
Health Care Fraud – Title 18, United States Code, Section 1347
Maximum Penalty: Twenty years’ imprisonment, $250,00 fine, restitution, forfeiture
(Counts 31-36)
Aggravated Identity Theft – Title 18, U.S.C., Section 1028A
Maximum Penalty: Mandatory two years’ imprisonment, consecutive (per count)
(Count 37)
Obstruction of Federal Audit – Title 18, U.S.C., Section 1516
Maximum Penalty: Five years’ imprisonment, $250,000 fine
DEFENDANT Case Number 18cr3015
Boris Dadiomov
SUMMARY OF CHARGES
Conspiracy to Commit Honest Services Mail Fraud and Healthcare Fraud – Title 18, U.S.C., Section 1349
Maximum penalty: Twenty years’ imprisonment and $250,000 fine
DEFENDANTS Case Number 18cr3057
Joserodel Zavala Candelario (1)
James Ward, Jr. (2)
Robert Cohen (3)
Antony Y. Lim (4)
SUMMARY OF CHARGES
Conspiracy to Commit Offenses– Title 18, U.S.C., Section 371
Maximum Penalty: Five years’ imprisonment, $250,000 fine, restitution, forfeiture
Honest Services Mail Fraud – Title 18, U.S.C., Section 1341, 1346
Maximum penalty: Twenty years’ imprisonment and $250,000 fine, restitution, forfeiture
Health Care Fraud – Title 18, U.S.C., Section 1347
Maximum penalty: Twenty years’ imprisonment and $250,000 fine
Honest Services Wire Fraud - Title 18, U.S.C., Section 1341, 1346
Maximum penalty: Twenty years’ imprisonment and $250,000 fine
DEFENDANT Case Number 18cr3016
Meriam Reyes
SUMMARY OF CHARGES
Conspiracy to Solicit and Receive Kickbacks – Title 18, U.S.C., Section 371
Maximum penalty: Five years’ imprisonment and $250,000 fine, restitution, forfeiture
AGENCIES
Federal Bureau of Investigation
Internal Revenue Service
Defense Criminal Investigative Service
California Department of Insurance
San Diego County District Attorney's Office
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
- Marco Antonio Chavez, a licensed medical doctor specializing in psychiatry, was charged with 30 counts of health care fraud in connection with over $928,000 in bills he submitted to TRICARE for services he never provided. He was also charged with five counts of aggravated identity theft and one count of obstruction of a federal audit. According to the indictment, he misappropriated the personal identifying information of TRICARE beneficiaries to submit fraudulent bills to TRICARE, and then lied during the course of a subsequent federal audit. Chavez allegedly used the proceeds of his scheme to purchase, among other luxury items, a 2016 Jaguar F-type and tens of thousands of dollars in David Yurman jewelry. On June 26, 2018, agents executed a search warrant at Chavez’s residence, and seized the Jaguar. The United States is seeking to forfeit all proceeds of Chavez’s illegal activity.
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.
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
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/edar
Twitter: @EDARNEWS
Lewiston 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.