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19 June 2015
Albany Man Pleads Guilty to Filing 62 Fraudulent Tax ReturnsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced that Bryant T. Johnson, aged 26, of Albany, Georgia entered a guilty plea to one count of wire fraud and one count of aggravated identity theft on June 17, 2015 before the Honorable W. Louis Sands, Senior U. S. District Court Judge, in Albany.
In March 2012, a juvenile in the Dougherty County School System was interviewed about the theft of 65 “Student Emergency Contact Cards” from a local high school personnel office. The cards contained identity data, including date of birth and Social Security numbers, of students and were recovered from his backpack. The juvenile admitted that he had talked about using the stolen cards with Mr. Johnson. A search warrant of Mr. Johnson’s home recovered evidence which linked him to 62 online federal income tax returns linked to him via e-mail, hard copy address, or other data. The filings claimed a total of $419,028. Mr. Johnson actually received a total of $76,631. The police also seized numerous pre-paid debit cards in the name of 3rd parties that were funded with fraudulent income tax refunds.
For wire fraud, Mr. Johnson faces 20 years maximum imprisonment, a fine of $250,000, or both. For aggravated identity theft, he faces a mandatory minimum of two years imprisonment consecutive to any other term of imprisonment imposed, a fine of $250,000, or both. Sentencing is set for September 10, 2015 before Judge Sands.
“Identity theft has become one of the most pervasive crimes in our community and its results can be devastating to the victims who often lose their money and their property as well as suffer injury to their credit rating and their reputation. It is my policy that my office shall prosecute the perpetrators of these types of crimes to the fullest extent of the law,” said United States Attorney Michael J. Moore.
"IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system," stated Acting Special Agent in Charge, James E. Dorsey. "Individuals who devise schemes to steal public money face federal prosecution and federal prison."
The case was investigated by the Internal Revenue Service - Criminal Investigation and the Dougherty County School System Police Department. Assistant United States Attorney Jim Crane is prosecuting the case on behalf of the Government.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office at 478-621-2603.
Acting U.S. Attorney Cohen to Host Fifth Annual Youth Summit at Friendship Collegiate Academy in Northeast WashingtonRead the Press Release
WASHINGTON – Acting U.S. Attorney Vincent H. Cohen, Jr., the U.S. Attorney’s Office for the District of Columbia, the Project Safe Neighborhoods Task Force, and a wide variety of law enforcement and community partners are teaming up to sponsor a Youth Summit on Friday, June 26, 2015, at Friendship Collegiate Academy.
The fifth annual summit is themed “Breaking the Silence on Youth Violence” and will focus on teaching young people about their rights and how to interact with law enforcement. The event will include a line-up of dynamic speakers, entertainment, and resources. The guest emcee is DJ Flava of WKYS Radio (93.9 FM), and entertainment will be provided by performers such as Motive, KRU3H, Young Motive, D.O.P.E. Jam, DAWeapon01, and Chi Chi Monet.
Youths from the District of Columbia are invited to the program, which runs from 11 a.m. to 3 p.m., and is free of charge. Doors open at 10 a.m. Friendship Collegiate Academy, 4095 Minnesota Avenue NE, is conveniently located directly across the street from the Minnesota Avenue Metro station in order to provide accessibility for students to attend.
This is one of the largest events sponsored by the U.S. Attorney’s Office each year, typically drawing hundreds of youths. The fast-paced program assembles young people from under-served neighborhoods in the District of Columbia to discuss the most pressing public safety challenges facing their communities. The goal of the program is to reach out to area youth on current public safety topics in an informative and inspiring way.
This year, given recent national events, organizers decided to equip young people with the information that they need about interacting with the police and give them more insight into the important role of law enforcement in their communities. Acting U.S. Attorney Cohen is expected to be joined in panel discussions by District of Columbia Mayor Muriel Bowser, District of Columbia Attorney General Karl A. Racine, and others.
In addition to the panels and performers, this year’s event also features a skit, poetry reading, and discussion of topics including Internet safety. The summit also will include an information fair where non-profit organizations provide information on youth development programs, mentoring, and education activities.
Several partners will be coming together to present the day’s programs, including the East of the River Family Support Collaborative, Collaborative Solutions for Communities, Friendship Collegiate Academy Public Charter School, District of Columbia Youth Advisory Council, Metropolitan Police Department and our various other partners.. The effort is supported by Project Safe Neighborhoods, a Department of Justice initiative aimed at reducing gun and gang crimes. People with questions or interest in bringing a youth group to the Youth Summit may contact Lenney Lowe at the U.S. Attorney’s Office at (202)-698-1452 or [email protected].
Follow the event on Twitter: @DCNews1 or @YouthSummitDC.
Acting U.S. Attorney Cohen Reaches Out to Area Clergy in Aftermath of Violence in CharlestonRead the Press Release
Dear Clergy:
I am writing to offer my deepest condolences in the wake of the tragic shooting that occurred yesterday evening at Emanuel African Methodist Episcopal Church in Charleston, South Carolina. My thoughts and prayers are with the victims who lost their lives, the A.M.E. church family, and all congregations and places of worship in our community. There is no place in our society for this type of vicious attack, and the U.S. Attorney's Office seeks to offer encouragement to everyone affected by this tragedy.
As you may have heard, the Department of Justice has opened a hate crimes investigation. Earlier today, I spoke by phone with the Civil Rights Division of the Department of Justice and the United States Attorney for South Carolina about the work that they are doing to investigate and prosecute this terrible act. As our colleagues in law enforcement continue to investigate this matter, please know that my office continues to be a resource for all clergy and places of worship in the District.
This horrific event reminds us of the importance of discussing ways to improve safety, even within the most sacred of places and assemblies. In the following days, we will seek to hear from you about how my office and our law enforcement partners can assist clergy during this troubling time. It is our desire to work together as a community to best identify proactive techniques that might aid places of worship with enhancing overall safety for their congregants and respective communities.
I look forward to continuing our partnership as we strengthen the bonds in our community. Thank you for your work and leadership.
Sincerely,
Vincent H. Cohen, Jr.
Acting United States Attorney
18 June 2015
Woodring Sentenced to 15 Years for Attacks on Central Arkansas Power GridRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, Assistant Attorney General for National Security John P. Carlin, David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation, and Grover Crossland, Resident Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF)—Little Rock Field Office announced today that Jason Woodring, 38, of Jacksonville, Arkansas, was sentenced to 15 years imprisonment on charges related to his attacks on central Arkansas’ power grid between August and October 2013.
In addition to the term of imprisonment, Woodring will be required to pay $4,792,224.06 in restitution to Entergy for Woodring’s attacks on the power lines and electrical tower near Cabot, Ark., and a switching station in Scott, Ark. Woodring will also have to pay $48,729.39 to First Electric Cooperative for damage to the downed power lines and poles in Jacksonville, Ark. There is no parole in the federal system. Upon his release from prison he must serve five years of supervised release.
Woodring’s 2013 attacks included sabotaging an electrical support tower and downing a 500,000-volt power line onto a railroad track near Cabot, Ark., which resulted in approximately $550,000 worth of damage; setting fire to and destroying an Extra High Voltage (EHV) switching station in Scott, Ark., causing over $4,000,000 in damages; and cutting down two power poles, which led to the temporary loss of power to approximately 9,000 people in Jacksonville, Ark. Woodring was charged in an eight-count indictment by a federal grand jury on November 6, 2013.
On March 10, 2015, Woodring pleaded guilty to counts 2, 3, 4, and 8 of the indictment, including destruction of an energy facility for downing the Cabot power lines (Count Two) and for setting fire to the Scott power station (Count Three). He also 425 West Capitol Avenue, Suite 500 (501) 340-2600 Post Office Box 1229 Little Rock, Arkansas 72203-1229 pleaded guilty to using fire to commit a felony (Count Four) in relation to the arson in Scott. Finally, Woodring pleaded guilty to being an illegal drug user in possession of various firearms and ammunition (Count Eight) and agreed to forfeit the firearms and ammunition.
On Thursday, United States District Judge Billy Roy Wilson accepted the parties’ plea agreement and imposed the recommended 15-year sentence. Upon acceptance of the plea and sentence, the United States dismissed counts 1, 5, 6, and 7 of the indictment against Woodring.
This investigation was conducted by the FBI, Joint Terrorism Task Force, ATF, Union Pacific Police, Entergy, First Electric, Lonoke County Sheriff’s Office, Cabot Police, Arkansas State Police, Conway Police Department, Little Rock Police Department and Arkansas Game and Fish Commission.
Winchester Man Sentenced on Child Pornography Production ChargeRead the Press Release
Harrisonburg, VIRGINIA – A 65-year-old Winchester man, who previously pled guilty to exploiting two young girls, was sentenced yesterday in the United States District Court for the Western District of Virginia in Harrisonburg.
Phillip Daniel Rush, 65, of Winchester, Va., previously pled guilty to one count of production of child pornography. Yesterday in District Court, Rush was sentenced to 30 years in prison and a lifetime of supervised release thereafter. Rush was also ordered to pay a $25,000 fine.
“Mr. Rush has admitted to sexually exploiting young girls. His actions earned him a lengthy stay in federal prison,” Acting United States Attorney Anthony P. Giorno said today. “Mr. Rush is a sexual predator and he and others who engage in such acts will be held criminally accountable for their acts. We will continue to use every legal tool available to us in order to protect the most vulnerable amongst us, our children.”
According to a factual summary filed during Rush’s guilty plea hearing, around July 2012, Rush exploited a seven-year-old girl and an eight-year-old girl while they were visiting him. The defendant filmed the two girls engaging in sexually explicit conduct.
Specifically, Rush turned on the webcam of his computer and provided a sexual device to one of the girls. He also later provided a jar of Vaseline. The defendant can be seen during various portions of the hour-long film. An adult pornography movie can be heard playing in the background.
The Winchester Police Department began the investigation into Rush after the mother of an older child notified police that her child had viewed the video of the two minor girls Rush’s computer.
The investigation of the case was conducted by the Winchester Police Department, the United States Secret Service and the Frederick County Sheriff’s Office. Assistant United States Attorney Nancy S. Healey prosecuted the case for the United States.
Warrensburg Man Sentenced to 21 Years for Thousands of Images of Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Warrensburg, Mo., man was sentenced in federal court today for distributing and possessing hundreds of thousands of images of child pornography.
Richard Alan Sigsbury, 52, of Warrensburg, was sentenced by U.S. District Judge Gary A. Fenner to 21 years and 10 months in federal prison without parole.
On Oct. 30, 2014, Sigsbury pleaded guilty to four counts of distributing child pornography, four counts of advertising child pornography, one count of possessing child pornography and one count of possessing child obscenity.
According to court documents, Sigsbury actively advertised the contents of his collection to other like-minded pedophiles and distributed images of the sexual abuse of children to these individuals.
Sigsbury admitted that he was in possession of more than 500,000 images of child pornography and more than 600 videos of child pornography, including images of prepubescent children in bondage. Sigsbury admitted that he was involved in child pornography for more than a decade.
Federal agents in Texas identified Sigsbury’s e-mail address during an undercover investigation into online child pornography distribution. Agents executed a search warrant at Sigsbury’s residence on April 17, 2012, and seized computers, recording devices and electronic storage devices.
This case was prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
United States Attorney Stephen R. Wigginton Announces "Home Alone IV" and Nationwide Takedown of Health Care ScamsRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, and Gerald Roy, Special Agent in Charge, United States Department of Health and Human Services Office of Inspector General, Office of Investigations for Region 7 (Kansas City office) today announced indictments and arrests arising out of Operation Home Alone IV. The indictments are a fourth wave of charges targeting the abuse of a Medicaid program in Illinois that provides personal assistants to Medicaid recipients to assist them with general household activities and personal care. The program is intended for recipients under 60 years of age and is designed to reduce Medicaid expenditures by avoiding more expensive institutional care, including nursing home care.
This morning, Attorney General Loretta Lynch, and Department of Health and Human Services Secretary Sylvia Mathews Burwell, together with FBI Director James Comey and HHS Inspector General Daniel R. Levinson, announced the largest health care fraud takedown in the nation's history. The Southern District of Illinois was one of seventeen United States Attorney's Offices participating in the nationwide takedown. Several hundred federal agents took part in the arrests that began on Tuesday, June 16th.
The nationwide takedown centered on both medical services that were never performed but billed to the government together with medical services that were performed but were medically unnecessary. In the indictments returned in the Southern District of Illinois, the defendants are being charged with submitting bills for claimed personal assistant services that were purportedly medically necessary, but were not performed. Eleven of the twelve defendants were purported personal assistants and the other was a supposed recipient of the services.
Among the Operation Home Alone IV cases, are the following:
- A recipient was found in her home in an incoherent state and partially covered in dried excrement. She was discovered by a friend checking on her welfare after she had been unable to reach the recipient by phone for many days. The daughter of the customer was her Personal Assistant ("PA") and submitted claims for services.
- A recipient, who purportedly was unable to drive a car to work, indeed did drive to work as an East St. Louis School teacher. He also failed to disclose to the Social Security Administration that he was substantially gainfully employed as a teacher. A PA submitted false claims for services purportedly rendered in Illinois while the PA was actually in Costa Rica.
- A PA submitted claims while the recipient was in jail.
- A PA submitted claims for services at the same time she was working as a PA for a social services agency in East St. Louis.
- Several PA’s submitted claims while their customers were in the hospitals and nursing homes.
The following individuals were charged and arrested locally as part of Home Alone IV:
- Kevin Landis Boyd, 58, East St. Louis, IL
- Shirley A. Hair, 49, East St. Louis, IL
- Kiara S. Hopkins, 24, Belleville, IL
- Lisa Jorden, 50, Cottage Hills, IL
- Shelia Vickery, 40, Alton, IL
- Alfreda E. Perkins, 53, East St. Louis, IL
- Ann Marie Sheppard, 54, O’Fallon, IL
- LaTasha Stevenson, 37, Belleville, IL
- Jessica A. Teets, 27, Mulberry Grove, IL
- Terry L. Waeltermen, 30, Pocahontas, IL
Two other defendants have been charged, but not yet arrested.
Previous Operations Home Alone I through III had resulted in the indictment of 43 individual defendants. Of those, 42 were convicted (one died before sentencing) and given federal sentences ranging up to three years in federal prison.
Past cases involved personal assistants who were in jail at the time they were purportedly providing care to their customer, a customer who was in jail at the time he was ostensibly receiving the medically necessary services, PAs who lived out of state who were claiming to provide services in Illinois and PAs who billed for services while their customers were in a hospital and nursing home. In one case, a customer died of neglect at the same time as her PA was billing for providing for her care.
"After three previous rounds of indictments, I am truly mystified how these defendants thought they could get away with defrauding Medicaid through bogus claims of personal assistant services," said United States Attorney Wigginton. "I know that we can't prosecute our way out of this problem; but the fact remains that I will continue to prosecute until there is no such widespread abuse of this program. People who cheat this system rob from a very worthy program and steal directly from our fellow citizens."
"The home-care program provides vital services for many of our state’s most vulnerable residents," Attorney General Lisa Madigan said. "These prosecutions are critical to ensure that the integrity of the program is maintained."
"I find billing for personal assistant services while the customer was in a nursing home or hospital to be especially galling." said Special Agent in Charge Gerald Roy. "The whole purpose of the program is to save federal and state tax money by providing assistance to recipients so that they don't need to go to a hospital or nursing home."
"Working with federal officials, other agencies and the public, we will continue to fight fraud, waste and abuse in the Medicaid system." said Felicia Norwood, Director of the Illinois Department of Healthcare and Family Services. Norwood added that HFS has been coordinating closely with the Illinois Department of Human Services to provide oversight over programs.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of the jury.
This investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General, the Illinois State Police - Medicaid Fraud Control Bureau and the Federal Bureau of Investigation. The individual cases are being prosecuted by Assistant United States Attorneys Adam Hanna, William E. Coonan, Ranley R. Killian and Michael Hallock.
U.S. Attorney Notifies Manistique Residents of Mail DestructionRead the Press Release
MARQUETTE, MICHIGAN —U.S. Attorney Patrick Miles announced the indictment of Sarah Jane Paradise, a former U.S. Postal Service City Carrier, on charges of delaying, detaining and destroying U.S. Mail entrusted to her for delivery in Manistique, Michigan.
On the basis of an investigation by the U.S. Postal Service’s Office of Inspector General, the indictment alleges that Paradise, who was employed as a USPS City Carrier in Manistique, Michigan, delayed, detained and destroyed Standard A Mail, which is bulk business mail, that she was supposed to deliver to residences on her route from March 2013 until early March 2014. Her route in Manistique, which USPS identifies internally as "City Route 1," covered hundreds of residences in the heart of Manistique.
PARTS OF MANISTIQUE, MICHIGAN WITHIN CITY ROUTE 1
If you believe you are a victim of this alleged crime, you will be able to obtain court notices relating to this case by checking: http://www.justice.gov/usao-wdmi/victim-and-witness-assistance-program/vw-large-cases/Paradise.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
Two More Sentenced for Racketeering in Case Involving Ironworkers Local 401Read the Press Release
TWO MORE SENTENCED FOR RACKETEERING IN CASE INVOLVING IRONWORKERS LOCAL 401
PHILADELPHIA- Christopher Prophet, 44, of Richboro, PA, was sentenced today to 63 months in prison for his role in the corruption case involving Ironworkers Local 401. In addition to the prison term, U.S. District Court Judge Michael Baylson ordered three years of supervised release, $138,000 restitution, and a $200 special assessment. In December 2014, Prophet pleaded guilty to RICO conspiracy and attempted extortion which interferes with interstate commerce. Co-defendant Richard Ritchie, 45, of Philadelphia, was sentenced yesterday to four years in prison, three years of supervised release, $25,000 restitution, and a $300 special assessment.
During the offense conduct, Prophet acted as a business agent for the Ironworkers Local 401 and participated in more than five extortions or attempted extortions with the intent to force non-union contractors to hire union labor. Prophet recruited other members of the Ironworkers Local 401, whom he called his “Shadow Gang,” to assist him in these crimes. If a contractor refused to hire union labor, Prophet and the “Shadow Gang” typically would enter a non-union construction site at night, use sledgehammers to destroy anchor bolts, and cause tens of thousands of dollars in damage.
Ritchie, 45, of Philadelphia, pleaded guilty in December 2014 to RICO conspiracy, attempted extortion which interferes with interstate commerce and violent crime in aid of racketeering. The 12 defendants in the case were charged with conspiring to use violence and intimidation to get union members assigned to jobs on non-union worksites.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, Upper Merion Township Police, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance provided by Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.
Two Individuals Sentenced to Federal Prison for Participation in Long-Running Online Child Pornography RingRead the Press Release
Two men were sentenced today for their roles in a sophisticated conspiracy to distribute child pornography online, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Joshua J. Minkler of the Southern District of Indiana.
John D. Gries, 48, of Bayshore, New York, and James McCullars, 56, of Huntsville, Alabama, were sentenced to 30 years and to life in prison, respectively, by U.S. District Court Judge Sarah Evans Barker of the Southern District of Indiana. In November 2014, the defendants were convicted by a federal jury of conspiracy to distribute and receive child pornography, conspiracy to advertise child pornography and engaging in a child exploitation enterprise.
According to evidence presented at trial, from 2000 to 2012, Gries and McCullars operated various members-only online chat rooms dedicated to the advertisement, distribution, receipt and possession of child pornography. The trial evidence, as well as admissions by other defendants prosecuted in connection with “Operation Rounder,” showed that McCullars, Gries and other members of the conspiracy used these chat rooms and a number of online servers to expand their personal collections of materials depicting the exploitation of children, and sought to evade law enforcement through the use of sophisticated data encryption software.
Operation Rounder has identified nearly 100 children around the world who have been identified as victims of abuse. Other defendants who have been convicted in connection with this investigation include:
John Edwards, 62, of Indianapolis, sentenced to 17.5 years;
Thomas Vaughn, 45, of Anderson, Indiana, sentenced to 11 years;
John Rex Powell, 43, of Fort Myers, Florida, sentenced to 30 years;
Donald Printup, 36, of Niagara Falls, New York, sentenced to 14 years;
Michael Fredette, 46, of Waterford, New York, sentenced to 27 years;
Robert Guillen, 43, of Wesley Chapel, Florida, sentenced to 14 years;
David Bebetu, 51, of Agoura Hills, California, sentenced to 12.5 years;
Stephen Harvey Dault, 48, of McKinney, Texas, sentenced to 17 years; and
Rick Ricardo Leon, 53, of Arlington, Virginia, sentenced to 12.5 years.
This case was investigated by the U.S. Postal Inspection Service, with assistance from the Indiana Internet Crimes Against Children Task Force and the Department of Justice’s High Technology Investigative Unit, as a part of Project Safe Childhood. This case is being prosecuted by Trial Attorney Amy Larson of the Criminal Division’s Child Exploitation and Obscenity Section and Senior Litigation Counsel Steven D. DeBrota of the Southern District of Indiana.
Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Twelve charged for healthcare fraud violations totaling $28 millionRead the Press Release
Twelve people were charged in federal court this week as part of a nationwide sweep targeting healthcare fraud violations, law enforcement officials said.
Locally, the charges represent more than $28 million in money fraudulently obtained from Medicaid, Medicare or other insurance providers. The charges stem from three unrelated cases.
Details of cases filed this week:
United States v. Knight et. al.: Five people were named in an 18-count indictment for their roles in a $7 million home healthcare fraud conspiracy in which they provided forged documents and fraudulent forms to bill for services that were not provided.
Indicted are: Delores L. Knight, 69, of Cleveland Heights; Theresa L. Adams, 42, of Twinsburg; Isaac R. Knight, 28, of Macedonia; Sonja N. Ferrrell, 43, of Cleveland, and Juliet L. Bonner, 60, of Cleveland.
All five worked in some capacity for Just Like Familee II, Inc., and Just Like Familee III, Inc., which the defendants incorporated in 2005 and 2006, respectively, to provide home health services for elderly and disabled clients. The companies had locations at various times in Cleveland Heights, Twinsburg and Mentor, according to the indictment.
Together they defrauded Medicaid, Medicare and the Department of Veteran Affairs out of more than $7 million as a result of the conspiracy in which they prepared and submitted forged or false records in support of previously submitted and reimbursed billings for patients they did not actually provide face-to-face services, according to the indictment.
Prosecutors are seeking to forfeit all money that was illegally obtained, as well as a home at 1048 Morning Glory Drive in Macedonia owned by Delores L. Knight, and a home at 7915 Ridgetop Drive in Twinsburg owned by Theresa L. Adams.
United States v. Warsame et. al.: Five people were named in a 10-count indictment for their roles in a $3 million conspiracy involving a home health service company with offices in Cleveland to defraud government insurance programs by billing for services not provided.
Indicted are: Abdulazis Warsame, 50, of Cleveland; Yasin Warsame, 48, Amir Ahmed, 50, both of Columbus; George Epps, 42, of Cleveland, and Norma Lauer, 67, of Reynoldsburg.
All five worked for Lifeline Home Health Services, which was incorporated in 2006 and had an office at 12200 Fairhill Road in Cleveland.
The defendants conspired between 2009 to 2013 to defraud Medicaid by submitting false documentation to become an accredited home healthcare provider, forging documents to make it appear doctors had approved specific plans of care, fabricating and billing for home health visits that had not taken place. Ahmed also recruited patients by offering cash kickbacks in exchange for becoming patients of Lifeline, according to the indictment.
Collectively, Ahmed, Lauer and the Warsames received payment for more than $3 million in fraudulent claims, according to the indictment.
United States v. Ward: Queen Ward, 64, of Cleveland Heights, was charged with one count of healthcare fraud while her daughter, Sharon Ward, 45, of Richmond Heights, was charged with one count each of healthcare fraud and aggravated identity theft related to the fraudulent billing of more than $18.1 million.
Together, they owned and operated Heritage Home Healthcare Agency in Cleveland Heights, despite the fact that Sharon Ward was previously convicted of Medicaid fraud, which precluded her participation in all federal health care programs for five years. Sharon Ward continued to own Heritage Home Health while she was excluded, as well as continued to see patients as a nurse, conducted nursing visits and bill Medicaid for her and her employees’ services. Queen Ward continued to bill Medicaid for her daughter’s services, and continued to pay Sharon Ward, despite the fact that she had been told by the Ohio Medicaid Fraud Control Unit that Sharon Ward was an excluded provider and had never been reinstated as an accredited provider, according to court documents.
Queen Ward also created fraudulent background checks for prospective employees that had criminal records and therefore would have been disqualified, according to court documents.
Between 2006 and 2014, Heritage Home Health received more than $18.1 million from Medicaid and Sharon Ward received a salary of more than $2.2 million, all during Sharon Ward’s period of exclusion from federal health care programs, according to court documents.
“The conduct detailed in these cases is egregious,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “These programs were designed to help the sick and infirm, and these defendants defrauded them out of millions of dollars for their own personal gain.”
“Health care fraud affects every American,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “Waste, fraud and abuse take critical resources out of our health care system, contribute to the rising cost of health care and degrades the integrity of our health care system and legitimate patient care. This week’s efforts send a message to those defrauding our system that authorities will collaboratively address this significant crime problem.”
“Today’s announcement illustrates the OIG’s continued efforts in combating health care fraud,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG and our law enforcement partners are steadfast in our commitment to detecting and dismantling health care fraud schemes and holding perpetrators of these crimes accountable.”
“Ohio has one of the best Medicaid Fraud Control Units in the country, and we diligently work with our state, local, and federal partners to weed out those who bill Medicaid and Medicare for services they did not provide or services that are not medically necessarily,” said Attorney General Mike DeWine. “Heath care fraud diverts funds from people who legitimately need care, and through joint efforts like this one, we intend to continue to aggressively go after those who steal from taxpayers and take money that they are not entitled to receive.”
“Healthcare Fraud Task Force investigations are vital in identifying and holding accountable those who would steal from taxpayers, Medicare beneficiaries and veterans,” said Gavin McClaren, Cleveland Resident Agent in Charge, Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division.
“IRS-Criminal Investigation is dedicated to ensuring those that choose to launder their ill-gotten gains are held accountable for their crimes,” said Kathy Enstrom, Special Agent in Charge of IRS-Criminal Investigation Cincinnati Field Office. “Forfeiture of these assets should serve as a warning that law enforcement will not tolerate such flagrant abuse of our safety net programs.”
These are the just latest healthcare fraud cases filed by federal prosecutors following investigations by federal and state agencies. Others include indictments against Dr. Harold Persaud, who is awaiting trial on charges that he performed unnecessary catheterizations, tests, stent insertions and caused unnecessary coronary artery bypass surgeries as part of a scheme to overbill Medicare and other insurers by $7.2 million; seven people and a company for their roles in a multi-million dollar fraud conspiracy involving an experimental form of chiropractic manipulation performed in Shaker Heights; three people who operated Eman Transportation Services in Cleveland charged with defrauding Medicaid of approximately $245,000 by billing for rides of patients who did not use or need wheelchairs and for transporting Medicaid recipients to non-covered appointments and an Akron physician was sentenced to 10 years in prison for illegally prescribing hundreds of thousands of doses of painkillers and defrauding health insurance by submitting insurance claims for unperformed services, billing insurance providers for services after collecting a cash payment, and other fraudulent practices.
These cases are being prosecuted by Assistant U.S. Attorneys Michael L. Collyer, Mark Bennett, Adam Hollingsworth and Special Assistant U.S. Attorney Maritsa Flaherty, following investigations by the Federal Bureau of Investigation; U.S. Department of Health & Human Services, Office of Inspector General; Ohio Attorney General’s Medicaid Fraud Control Unit; the Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division; the Internal Revenue Service – Criminal Investigations.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment or information 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.
Twelve Charged in Western District of Kentucky as Part of Largest National Medicare Fraud Takedown in HistoryRead the Press Release
Six cases charged during three day sweep totaling approximately $7.8 million in false billings
LOUISVILLE, Ky. – Acting United States Attorney John E. Kuhn, Jr. today announced the results of a health care fraud sweep in the Western District of Kentucky as part of the largest national Medicare fraud takedown led by the Justice Department and Department of Health and Human Services (HHS) Medicare Fraud Strike Force. The three day sweep, in the Western District of Kentucky, resulted in charges against 12 individuals, including three medical physicians, for their alleged participation in health care fraud schemes, involving approximately $7.8 million in fraudulent billings.
“Losses caused by health care fraud are staggering, amounting to tens of billions of dollars every year,” said Acting U.S. Attorney John Kuhn. “Sadly, these fraud losses are passed along to the rest of us in the form of increased health care costs. For that reason, investigating and prosecuting health care fraud is one of the Department of Justice’s highest priorities. As these cases demonstrate, federal, state and local law enforcement agencies are working together to turn the tide by prosecuting more fraudsters and recovering more money. And our enforcement efforts make great financial sense, too: when we pursue fraud against federal health care programs, we know we recover almost eight dollars for every dollar we expend in investigative and prosecution costs.”
“The Healthcare industry is massive and as a result Health Care Fraud is big business for criminals,” stated FBI Special Agent in Charge Howard S. Marshall. “HCF is one of our top Complex Financial Crime priorities and we continue to dedicate significant investigative resources to address it. We work closely with our local, state and federal partners; I am proud of our investigators who work hard to hold these criminals accountable.”
“Kentucky is facing an epidemic of prescription drug abuse,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Physicians who overprescribe narcotics not only waste valuable taxpayer dollars and defraud Medicare and Medicaid, they also threaten the health and safety of their patients.”
In the Western District of Kentucky, three physicians were charged in separate cases. The charges included billing for services at a higher code than the service provided, prescribing pain medications that resulted in the deaths of patients, and billing for non FDA approved IUDs.
Further, in a separate scheme, five defendants were charged with operating chiropractic clinics that falsely billed health care benefit programs approximately $5 million for injections that patients never received. Another charged scheme involved the alleged staging of an auto accident for passenger participants to seek unnecessary pain management treatment. (Indictments and press releases are attached)
Nationally, the sweep resulted in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings. In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act. The coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants charged and loss amount.
U.S. Attorney Kuhn acknowledged and credited the law enforcement agencies investigating these cases: Federal Bureau of Investigation (FBI), the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), the U.S. Drug Enforcement Administration (DEA), the United States Postal Inspection Service, the Internal Revenue Service Criminal Investigation, the National Insurance Crime Bureau, FDA – Office of Criminal Investigations, Kentucky State Police (KSP), Indiana and Kentucky Medicaid Fraud Control Units, Warren County Drug Task Force and Louisville Metro Police Department.
Tulare County Man Charged with Committing More Mail Theft Crimes While Pending Trial in Mail Theft CaseRead the Press Release
FRESNO, Calif. — A federal grand jury returned a superseding indictment today alleging that Shannon Lester Sorrells, 36, of Dinuba, committed bank fraud and aggravated identity theft while awaiting trial for the original indictment, United States Attorney Benjamin B. Wagner announced.
According to the indictment, in May and June 2014, Sorrells stole three neighborhood delivery collection box units containing United States mail in Visalia. On July 3, 2014, a federal grand jury charged him with three counts of theft of government property and three counts of theft of U.S. Mail. Sorrells was released on his own recognizance, and trial was scheduled for August 4, 2015.
The superseding indictment returned today alleges that between December 2014 and February 2015, Sorrells obtained United States mail containing personal identification and financial information, including checks, of victims without their knowledge. He opened bank accounts in victims’ names and altered the checks and deposited them into the accounts. At times when committing the fraud, Sorrells presented himself as one of the victims whose identities he stole. Sorrells has been in custody since March 5, 2015.
This case is the product of an investigation by the United States Postal Inspection Service and the Visalia Police Department. Assistant United States Attorneys Megan A. S. Richards and Jeffrey Spivak are prosecuting the case.
If convicted, Sorrells faces a maximum statutory penalty of 30 years in prison and a $1 million fine on the bank fraud charges, five years in prison and a $250,000 fine for theft of mail, and a mandatory two-year consecutive sentence for the aggravated identity theft charge. 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.
Trio Charged with Running Illegal Pill Mill in Scioto CountyRead the Press Release
CINCINNATI – A federal grand jury has charged Margaret Temponeras, 50, of Portsmouth, Ohio, John Temponeras, 80, of Portsmouth, Ohio and Raymond Fankell, 60, of Wheelersburg, Ohio, with illegally running a pain clinic and distributing pain killers not for a legitimate purpose and outside the scope of medical practice in an indictment returned in Cincinnati.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA), Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Steven W. Schierholt, Executive Director, Ohio State Board of Pharmacy, and the Ohio High Intensity Drug Trafficking Area (HIDTA) announced the indictment returned today.
The indictment alleges that Margaret Temponeras and John Temponeras were physicians specializing in family practice and OBGYN respectively, who changed their medical focus to pain management and began operating Unique Pain Management LLC in Wheelersburg, Ohio. Margaret Temponeras also opened Unique Relief LLC in Wheelersburg, Ohio. Raymond Fankell owned and operated Prime Pharmacy Group Inc., doing business as Medi-Mart Pharmacy in Portsmouth, Ohio.
It is alleged that all three defendants dispensed diazepam, hydrocodone and oxycodone not for a legitimate purpose and outside the scope of medical practice. Margaret and John Temponeras allegedly “examined” more than 20 customers per day, and provided large amounts of prescription medications to customers that they knew or had a reasonable cause to believe were drug addicts or diverting/selling the medication.
The five-count indictment states that in furtherance of the conspiracy, the father and daughter would charge customers cash amounts that started at approximately $200 per office visit; they would not accept insurance payments. They allegedly referred patients to Fankell to have Fankell fill prescriptions. The court document also indicates that at least eight individuals were found dead after consuming medications prescribed by and dispensed from the defendants.
The three were charged with two counts of illegally distributing medication, which each carry a maximum penalty of 20 years in prison and a million dollar fine; these charges also carry an enhanced penalty of 20 years to life in prison if death resulted. John Temponeras and Raymond Fankell were charged with one count and Margaret Temponeras with two counts of maintaining a place for the purpose of distributing controlled substance, a crime punishable by up to 20 years in prison and a fine of up to $500,000.
U.S. Attorney Stewart commended the investigation of this case by the DEA, FBI, Ohio State Board of Pharmacy, and Ohio HIDTA.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Three Individuals Charged in South Florida for Possessing with the Intent to Distribute alpha-Pyrrolidinopentiophenone (a-PVP), a/k/a “Flakka”Read the Press Release
Two central Florida residents have been charged by indictment with conspiracy to import alpha-Pyrrolidinopentiophenone (a-PVP), a/k/a "Flakka" from China. A Broward County resident has also been charged by indictment with distributing “Flakka” within 1000 feet of a Ft. Lauderdale elementary school and possession of a firearm in furtherance of drug trafficking crime.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), A.D. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Franklin Adderley, Chief, City of Fort Lauderdale Police Department, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Michael J. Hernandez, 25, from Orlando, and Jonell Philip Vega-Mercado, 19, from Clermont, were charged with conspiracy to import, conspiracy to possess with the intent to distribute, and possession with the intent to distribute a Schedule I controlled substance, alpha-Pyrrolidinopentiophenone (a-PVP), a/k/a “Flakka.” If convicted, the defendants face a maximum statutory sentence of 20 years in prison for each offense.
According to allegations contained in court records, U.S. Customs and Border Protection (CBP) Officers in Chicago identified, searched and detained multiple parcels destined for Broward County, in the Southern District of Florida. Each of the parcels was shipped from China and allegedly contained multi-kilogram packages of a controlled substance, alpha-Pyrrolidinopentiophenone (a-PVP), a/k/a “Flakka.” The parcels were mailed to locations in Broward County. Hernandez and Vega-Mercado were apprehended while picking up two (2) of the packages in Fort Lauderdale. In total, law enforcement seized approximately 24 pounds of “Flakka,” with a total street value of approximately $500,000.
In a separate indictment, Brandon Laquaine Anderson, 29, was also charged with possession with intent to distribute “Flakka” within 1000 feet of a Ft. Lauderdale elementary school, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm as a convicted felon. If convicted of possession with intent to distribute “Flakka” within 1000 feet of a Ft. Lauderdale elementary school and possession of a firearm in furtherance of a drug trafficking crime, Anderson faces a minimum sentence of six years in prison and a maximum sentence of life imprisonment.
United States Attorney Wifredo A. Ferrer stated, “The continued collaboration between federal and local law enforcement agencies to attack the trafficking and importation of “Flakka,” and protect our community from exposure to this dangerous and potentially deadly drug, is of paramount importance. Today’s charges demonstrate that we are dedicated to improving public safety and the quality of life for law-abiding residents by protecting our neighborhoods and schools, adopting proactive law enforcement initiatives, and prosecuting repeat offenders, firearms violators, and narcotics traffickers.”
“These dangerous synthetic drugs compromise the public safety of our communities,” said HSI Miami Special Agent in Charge Alysa D. Erichs. “As today’s charges demonstrate, HSI will continue to aggressively target this emerging threat to the South Florida region.”
DEA Special Agent in Charge A.D. Wright stated, “Synthetic drugs are the most lethal drugs out there today no matter what trendy names these drugs dealers attach to them. Last year it was Molly, now it’s Flakka, and who knows what it will be called next. These are only street terms and these drugs can contain anything. The users are allowing themselves to be utilized as guinea pigs. They have no idea what they are putting into their bodies. The DEA will continue to work with our law enforcement partners to keep our citizens safe and put these dangerous drug dealers out of business.”
“Law enforcement in Florida are working collaboratively to combat the distribution of a very dangerous synthetic drug called “Flakka,” stated Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service, Miami Division. “We will aggressively investigate those that use the mail for criminal activity and bring them to justice.”
“The Fort Lauderdale Police Department will continue to work with various federal agencies and local partners to break the pipeline of flakka entering our community.”
“These drug dealers are only interested in padding their pockets and have complete disregard for the damage they cause to our families and our communities,” Sheriff Scott Israel said. “In addition to our enforcement efforts, I’ve put together a team of experts from our agency to educate the community about the dangers of this deadly drug in an effort to prevent more deaths.”
Mr. Ferrer commended the investigative efforts of HSI, DEA, USPIS, CBP, Fort Lauderdale Police Department and BSO. Both cases are being prosecuted by Assistant U.S. Attorney Sean T. McLaughlin.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Defendants in Bristol Virginia Utilities Kickback Scheme SentencedRead the Press Release
ABINGDON, VIRGINIA – Three of the four defendants convicted in a kickback scheme at the Bristol Virginia Utilities Authority were sentenced today in the United States District Court for the Western District of Virginia in Abingdon.
Robert James Kelley, 61, of Lexington, Va., David Copeland, 44, of Bristol, Va., and Michael Clark, 63, of Colbert, Ga., were all sentenced today for their roles in the scheme.
“This is a sad day for these defendants and their families. They have chosen to use their positions to enrich themselves at the expense of those who put their trust in them. Identifying public corruption is a priority for my office and prosecuting the offenders is necessary to maintain the public’s trust in our government institutions,” Acting United States Attorney Anthony P. Giorno said today. “I am proud of the cooperative work done by the investigators in this case, and I believe justice has been served.”
“Public corruption erodes the foundation of trust and confidence of a government’s procurement system,” Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division said today. “The FBI, recognizing public corruption as our top criminal priority, pledges to continue to work with our law enforcement partners and community members to hold accountable those who circumvent and manipulate the system for personal gain.”
“It is unacceptable to help yourself to the American public’s money and violate their trust,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today's sentencing’s stand as examples that IRS-CI, along with the United States Attorney and our law enforcement partners, will continue to investigate and prosecute crimes involving financial fraud and in particular fraud that erodes the public’s confidence.”
Kelley Jr., who is a former Vice President of Field Operations for BVU, previously pled guilty to one count of a multi-object conspiracy to commit mail fraud, money laundering and to defraud the United States. Today in District Court, Kelley was sentenced to 30 months in prison and ordered to pay $330,510 in restitution. In addition, he will forfeit $165,375.
Copeland, who is also a former Vice President of Field Operations for BVU, previously pled guilty to one count of a multi-object conspiracy to commit wire fraud and money laundering. Today in District Court, he was sentenced to 24 months in prison and ordered to pay $144,000 in restitution. In addition, he will forfeit $50,000.
Clarke, who previously performed contract work for BVU and submitted false invoices to Kelley Jr., previously pled guilty to one count of engaging in a conspiracy to defraud the Internal Revenue Service. Today in District Court, he was sentenced to eight months of federal incarceration. Clark was also issued a $2,000 fine and ordered to pay $110,065 in restitution.
A fourth defendant, James Todd Edwards, has yet to be sentenced for his role in the conspiracy.
The investigation of the case, which remains ongoing, is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Zachary Lee will prosecute the case for the United States.
Temple Hills Man Sentenced to Seven Years in Prison for Distributing Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Justin Alonza Jefferson, age 22, of Temple Hills, Maryland, today to seven years in prison, followed by 15 years of supervised release, for distribution of child pornography. Judge Chuang ordered that upon his release from prison, Jefferson must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Under the law, children who are abused to produce child pornography, and whose images are traded on the internet are entitled to restitution. Judge Chuang also ordered Jefferson to pay restitution totaling $7,500 to three such identified victims, whose images were among the child pornography Jefferson possessed.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to Jefferson’s plea agreement, in December 2012, Jefferson uploaded files depicting children engaged in sexually explicit conduct. On April 5, 2013, a search warrant was executed at Jefferson’s residence and law enforcement seized Jefferson’s laptop computer and an external hard drive, among other items. Jefferson was interviewed and admitted that he had been collecting child pornography since he was 12 years old and that his laptop and external hard drive contained images and videos of child pornography. A subsequent review of the laptop and external hard drive revealed approximately 8,000 image files and 800 movie files depicting minors engaged in sexually explicit conduct. Jefferson further admitted that he traded child pornography via the internet. A search warrant was executed for Jefferson’s email account and law enforcement seized numerous emails to and from Jefferson attaching image files of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Maryland State Police for their work in the investigation, and thanked the National Center for Missing and Exploited Children for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Nicolas A. Mitchell and Michael T. Packard, who prosecuted the case.
Tampa Man Convicted for Receiving Stolen Government PropertyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Charvester Anthony guilty of five counts of receiving stolen government property. He faces a maximum penalty of 10 years in federal prison on each count. His sentencing hearing is scheduled for September 18, 2015. Anthony was indicted on February 13, 2014.
According to testimony presented at trial, Anthony, who owned and operated two restaurants in Tampa, also conducted a fencing operation by cashing a series of stolen U.S. Treasury income tax refund checks and subsequently depositing them into his business and personal bank accounts. Most of the refund checks were obtained by means of fraudulent income tax returns that were filed using stolen identities. All of the checks bore forged signatures. According to the evidence presented at trial, Anthony knew that the checks were stolen when he cashed them, and consequently charged huge fees for doing so.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Bob Mosakowski.
Street Gang Member Sentenced to 30 Years Imprisonment on Firearm and Drug ChargesRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with Gregory Gant, Special Agent in Charge of the Kansas City Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced today that Marcus Allen, aka “House,” age 39, of Little Rock, was sentenced to 30 years in federal prison for unlawful possession of firearms, possession with intent to distribute cocaine, crack cocaine, and methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. Allen, a multi-convicted firearm and drug felon, is a self-admitted member of the Bloods street gang.
On November 19, 2014, Allen was convicted following a three-day jury trial of the following offenses charged in the superseding indictment in Case No. 4:14-cr-00057 KGB:
• Count One: Felon in Possession of a Firearm, 18 U.S.C. § 922(g)(1)
• Count Two: Possession with Intent to Distribute Cocaine, Crack Cocaine, and Methamphetamine, 21 U.S.C. § 841(a)(1)
• Count Three: Possessing a Firearm in Connection with a Drug Trafficking Crime, 18 U.S.C. § 924(c)
At today’s sentencing hearing United States District Court Judge Kristine G. Baker found that Allen qualified as an Armed Career Criminal under 18 U.S.C. § 924(e) and a Career Offender under United States Sentencing Guideline § 4B1.1. Allen’s Guidelines range reflected that the offense involved a semiautomatic firearm capable of accepting a large capacity magazine. Allen also received sentencing enhancements because the offense involved three or more firearms and the offense involved a stolen firearm. Judge Baker then sentenced Allen to 300 months on Count One and 240 months 425 West Capitol Avenue, Suite 500 (501) 340-2600 Post Office Box 1229 Little Rock, Arkansas 72203-1229 on Count Two, to run concurrent to each other, and 60 months on Count Three, to run consecutive to Counts One and Two, for a total of 360 months or 30 years.
There is no parole in the federal system. When Allen is released upon completion of his 30 year sentence, he will serve six years of supervised release. As a result of Allen’s convictions, he also forfeited the following property seized from his home on March 6, 2014: four firearms and $3,443 in drug proceeds.
At trial, the evidence established that on March 6, 2014, law enforcement agents executed a search warrant at Allen’s residence at 7815 Burnelle, Little Rock, Arkansas. Allen had been distributing drugs from 7815 Burnelle since at least November 2013. Agents found 35.23 grams of cocaine with scales used for weighing the cocaine for later distribution in the kitchen. Agents found 1.5 grams of crack cocaine and 5.6 grams of methamphetamine packaged for distribution in Allen’s bedroom. Also in Allen’s bedroom agents found four firearms, namely, a Colt model M4 Carbine 5.56mm caliber semi-automatic rifle; a Taurus model PT92AFS 9mm semi-automatic pistol; a Norinco model MAK90 Sporter .762 caliber rifle; and a Charter Arms model Bulldog Pug .44 caliber revolver, along with ammunition. One of the firearms had been stolen from a residence in Carruthersville, Missouri, prior to Allen’s purchase of that firearm.
“Marcus Allen is a gang member and repeat offender whose main contribution to our community is a long history of drug trafficking, violence and illegal possession of firearms,” Thyer said. “Arkansas is a safer place with this individual in federal prison for the next thirty years.”
The case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” program—a nationwide gun-violence reduction strategy led by ATF, in cooperation with federal, state, and local law enforcement officials. The case was investigated by the ATF, the Carruthersville, Mo., Police Department, and the Pemiscot County, Mo., Sherriff’s Office.
Store Owners in Kansas City, Kan., Plead Guilty to Theft from Food Stamp ProgramRead the Press Release
KANSAS CITY, KAN. - The owners of a store in Kansas City, Kan., have pleaded guilty to defrauding a federal food stamp program, U.S. Attorney Barry Grissom said today. The fraud totaled more than $227,000.
Saima Sajjad, 39, Kansas City, Mo., pleaded guilty today to one count of wire fraud. Her husband, Sajjad S. Chaudhry, 47, Kansas City, Mo., pleaded guilty June 16 to one count of conspiracy to defraud the U.S. Department of Agriculture, one count of conspiracy to commit wire fraud, and two counts of aggravated identity theft.
In their pleas, they admitted the crimes occurred while they owned the KC Gas Mart at 2850 State Avenue in Kansas City, Kan. The store participated in a federal food stamp program called the Supplemental Nutrition Assistance Program (SNAP).
The store came under investigation in the summer of 2013 because it reported engaging in thousands of dollars of SNAP benefits transaction, many of which were large purchases. Undercover investigators working with the USDA exchanged SNAP benefits for cash at KC Gas Mart, receiving approximately 50 percent of the value of the SNAP benefits. The rules of the program prohibit approved vendors from trading cash for food stamps, accepting food stamps for ineligible items and accepting food stamps from people who are not authorized to use them.
In addition, Chaudhry admitted he used another person’s electronic benefits card to purchase food items at a Sam’s Club store in Kansas City, Kan.
The defendants are set for sentencing Aug. 25. They face the following penalties:
Conspiracy to defraud USDA: a maximum penalty of five years in federal prison and a fine up to $250,000.
Conspiracy to commit wire fraud: A maximum penalty of 20 years and a fine up to $250,000.
Aggravated identity theft: A mandatory two years to be served consecutively.
Grissom commended the USDA-OIG and Special Assistant U.S. Attorney Erin Tomasic for their work on the case.
Sixteen Charged in Detroit Area as Part of Largest National Medicare Fraud Takedown in HistoryRead the Press Release
DETROIT, MI – Attorney General Loretta E. Lynch and Department of Health and Human Services (HHS) Secretary Sylvia Mathews Burwell announced today a nationwide sweep led by the Medicare Fraud Strike Force in 17 districts, resulting in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings. In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act. This coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants charged and loss amount.
“This action represents the largest criminal health care fraud takedown in the history of the Department of Justice, and it adds to an already remarkable record of enforcement,” said Attorney General Lynch. “The defendants charged include doctors, patient recruiters, home health care providers, pharmacy owners, and others. They billed for equipment that wasn’t provided, for care that wasn’t needed, and for services that weren’t rendered. In the days ahead, the Department of Justice will continue our focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives. We are prepared – and I am personally determined – to continue working with our federal, state, and local partners to bring about the vital progress that all Americans deserve.”
“Health care fraud has been pervasive throughout metro-Detroit in recent years, at great cost to the American taxpayer. We hope that cases like these will alert doctors, pharmacists and other providers that criminal investigators are now scrutinizing billing records so that we can detect fraud and hold wrongdoers accountable,” said Barbara L. McQuade U.S. Attorney for the Eastern District of Michigan.
“The abuse of our health care system through the submission of fraudulent claims and payment of illegal kickbacks is criminal and negatively impacts each and every law abiding, taxpaying citizen,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “Through the collective efforts of the Medicare Fraud Strike Force and law enforcement nationwide, the doctors, physical therapists and other licensed medical professionals charged and arrested in Michigan and around the country have been brought forward to face justice for their egregious criminal practices. The FBI, working in lockstep with its partners, remains committed to rooting out those within the medical profession who violate their patients’ trust, endanger their health, and defraud the health care system.”
“Today’s announcement illustrates that the Medicare Fraud Strike Force remains very active in Eastern Michigan,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “Individuals who attack federally funded health care programs should know that the Strike Force will detect and dismantle fraud operations and will ensure that perpetrators of these crimes are held accountable.”
“Health care fraud is all about the money,” said Jarod Koopman, Special Agent in Charge, Internal Revenue Service Criminal Investigation. “Our special agents bring their financial expertise to the table, teaming up with our law enforcement partners in order to help identify, investigate and dismantle these corrupt and costly schemes.”
In the Detroit area, sixteen individuals, including six doctors, a social worker, a pharmacist and two physical therapists were charged with a variety of health care fraud and kickback schemes totaling over $122 million. The schemes involved services that were medically unnecessary or never rendered, including physician visits, hospice care, home health care, and the billing but not dispensing of pharmaceuticals. In addition, law enforcement agents executed search warrants at eight locations and seizure warrants of 24 bank accounts related to the alleged schemes. The Centers for Medicare and Medicaid Services has moved to suspend 14 providers associated with the schemes.
The following charges were filed or unsealed:
United States v. Tahir, et al.
Five individuals, two physicians and three owners of hospice and home health care companies, were charged in an indictment with conspiring to commit health care fraud for their roles in a $58.3 million scheme to defraud Medicare by submitting fraudulent claims for home health care and hospice services that were medically unnecessary or not provided. The owners of the home health care and hospice companies, two of whom are also physical therapists, paid physicians and recruiters kickbacks for referring patients, then billed Medicare for medically unnecessary services, which were often never provided. The companies, located in Livonia, Michigan, are A Plus Hospice and Palliative Care, At Home Hospice, and At Home Network Inc., a home health care agency. The physicians who solicited and received kickbacks also submitted claims to Medicare for medically unnecessary physician services through their companies, Waseem Alam, M.D., P.C., Woodward Urgent Care, and Hatem Ataya, M.D., P.C. Those physicians prescribed beneficiaries medically unnecessary prescriptions, including controlled substances, for which Medicare also paid.
The defendants charged in the indictment are Shahid Tahir, 45, of Bloomfield, Michigan, Waseem Alam, 59, of Troy, Michigan, Hatem Ataya, 47, of Flushing, Michigan, Muhammad Tariq, 60, of West Bloomfield, Manawar Javed, 40, of West Bloomfield, Michigan.
United States v. Goldfein, M.D., et al.
Four individuals, a physician and three owners of home health care companies, were charged in a superseding indictment with conspiracy to commit health care and wire fraud, health care fraud, wire fraud and conspiracy to pay or receive health care kickbacks. The indictment alleges that the fraudulent claims were submitted by physicians who took kickbacks to refer home health care, then billed medically unnecessary services and prescribed unnecessary medications billed to Medicare.
The defendants charged in the indictment are William Binder, M.D., 58, Muhammad Zafar, 43, of Brownstown, Michigan, Tariq Khan, 47, of Woodhaven, Michigan, and Ghulam Shakir, 43.
United States v. Daneshvar, M.D.
Gerald Daneshvar, M.D., 39, of West Bloomfield, Michigan, was charged by indictment with his role in an over $5 million conspiracy to commit health care fraud by referring non-homebound patients for home health care services as well as billing for upcoded physician visits through Lake MI Mobile Doctors, PC (“Mobile Doctors”). The owner of Mobile Doctors and another physician employee were indicted in the Northern District of Illinois in 2013 for their roles in the same scheme.
United States v. Lerner, M.D., et al.
Laran Lerner, M.D., 59, of Northville, Michigan, a physician, and Mohamad Bazzi, 42, of Dearborn, Michigan, a licensed pharmacist and pharmacy owner, were charged by complaint with an over $24 million health care fraud scheme. Dr. Lerner provided medically unnecessary prescriptions for expensive pharmaceuticals for which Bazzi’s pharmacy, Advanced Pharmacy Services (APS) would bill Medicare, but not dispense. In addition, Dr. Lerner billed for unnecessary physician visits and referred beneficiaries for medically unnecessary home health care services through his clinic Greater Detroit Physical Therapy & Rehabilitation, located in Westland, Michigan.
United States v. Qadir, M.D.
Rizwan Qadir, M.D., 52, of Bloomfield Hills, Michigan, a physician, was charged by complaint with conspiracy to commit health care fraud and to pay or received kickbacks in a $19 million Medicare fraud scheme. Qadir paid patient recruiter Johnny Younan to bring him patients, for whom he would bill medically unnecessary tests and visits. Qadir also referred the beneficiaries for medically unnecessary home health care services.
United States v. Younan
Johnny Younan, 52, of Centerline, Michigan, was charged by complaint with conspiracy to pay or receive health care kickbacks to a physician, who would also prescribe Medicare beneficiaries controlled substances as an inducement to provide their Medicare information for billing.
United States v. Celestine Brown
Celestine Brown, 50, of Ypsilanti, Michigan, a licensed social worker, was charged by information with one count of health care fraud and one count of structuring in connection with her role in a $3.8 million scheme to defraud Medicare through the submission of false claims for psychotherapy services that were never rendered. Brown submitted the false claims through her company CBC Services, LLC located in Ypsilanti, Michigan. Brown is also alleged to have then structured cash withdrawals from her bank accounts in amounts of less than $10,000 to avoid reporting requirements.
United States v. Tamara Brown
Tamara Brown, 42, of Southfield, Michigan, was charged by complaint with her part in a $1.3 million kickback conspiracy. The complaint alleges that Brown solicited and received kickbacks from two Detroit area home health care agencies, Cherish Home Health Services, LLC, and Empirical Home Health Care, Inc., in return for providing patient referrals from a physician.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 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 their inception in March 2007, Strike Force operations in nine locations have charged over 2,300 defendants who collectively have falsely billed the Medicare program for over $7 billion.
Including today’s enforcement actions, nearly 900 individuals have been charged in national takedown operations, which have involved more than $2.5 billion in fraudulent billings. Today’s announcement marks the first time that districts outside of Strike Force locations have participated in a national takedown and accounted for 82 defendants charged in the takedown.
These cases were investigated by the FBI, HHS-OIG and IRS-CI and were brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. These cases are being prosecuted by Trial Attorneys Matthew C. Thuesen, Elizabeth Young, Amy Markopoulos and Drew Bradylyons.
A complaint, indictment or information is merely a charge, and defendants are presumed innocent until proven guilty.
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Sheppard Pratt Director and Her Husband Charged in Illegal $2.5 Million Billing SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Lyneth Nyabiosi, age 49, and her husband, Willie Evans III, a/k/a “James Davies” and “James Davis,” age 53, both of Bear, Delaware, on charges arising from a scheme to falsely bill Nyabiosi’s employer, Sheppard Pratt Health Systems, for approximately $2.5 million for work purportedly performed by a company that the defendants secretly controlled. The indictment was returned on June 16, 2015 and unsealed today following the arrest of the defendants.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Sheppard Pratt Health System is a private, non-profit health system in Maryland which offers mental health, substance use and special education services. Sheppard Pratt’s main campus is located at 6501 North Charles Street, Towson, Maryland. From November 2005 to September 2014, Nyabiosi was the director of the Health Information Management Department (HIM Department) of Sheppard Pratt. The department was responsible for receiving, organizing and storing patient medical records. As the director, Nyabsiosi was the highest ranking employee in the HIM Department.
According to the eight count indictment, Nyabiosi and Evans controlled and operated an entity named Information Management Solutions Technology (IMST), which purported to specialize in record management. On March 7, 2007, Nyabiosi, on behalf of Sheppard Pratt, entered into a contract with IMST to manage medical records for Sheppard Pratt, in violation of Sheppard Pratt’s conflict of interest policy. From 2006 to October 2014, and to conceal the inherent conflict of interest, the defendants falsely represented to Sheppard Pratt and others that IMST was operated by an account representative named “James Davis” and “James Davies,” when in fact no such person was employed by IMST.
The indictment further alleges that from 2007 to August 2014, the defendants submitted over 150 false invoices requesting that Sheppard Pratt pay IMST approximately $2.5 million. The invoices requested payment for work which was never performed, or for excessively inflated amounts for the work that was actually performed. For example, the invoices and other documents provided to Sheppard Pratt falsely represented that IMST stored and then shredded hundreds of thousands of boxes of sensitive medical records, when in fact IMST had stored substantially less. Nyabiosi, nonetheless personally approved all of the false invoices, thus causing Sheppard Pratt to mail checks to IMST totaling approximately $2.5 million. The defendants deposited the money in their bank account and used the money for personal expenditures, including loan and mortgage payments; home renovations and upgrades; personal wire transfers to Africa; and vehicle, food, clothing and entertainment expenses.
The indictment seeks forfeiture of $2.6 million, two residences located in Bear and Newark, Delaware and three vehicles.
The defendants face a maximum sentence of 20 years in prison for each of the eight counts of conspiring to commit mail fraud and mail fraud. An initial appearance was held for Nyabiosi yesterday and for Evans today in U.S. District Court in Baltimore. The defendants were released on home confinement and under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorney David I. Sharfstein, who is prosecuting the case.
Seventy-Three Charged in Southern District of Florida as Part of Largest National Medicare Fraud Takedown in HistoryRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Attorney General Loretta E. Lynch, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Amy L. Parker, Assistant Special Agent in Charge, Eastern Region, U.S. Office of Personnel Management, Office of Inspector General (OPM-OIG), Pam Bondi, Florida Attorney General, and, David W. Bourne, Special Agent in Charge, U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigations, Miami Field Office, announce that seventy-three (73) South Florida residents were charged for their alleged participation in various schemes to defraud Medicare and Medicaid out of more than $262,567.878. The charges in South Florida are part of a nationwide takedown by Medicare Fraud Strike Force operations in 17 cities that resulted in charges against 243 individuals, including more than 46 doctors, nurses, and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings. In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act. This coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants and loss amount.
U.S. Attorney Wifredo A. Ferrer stated, “The Medicare fraud schemes continue to be relentless. However, the efforts discussed today demonstrate that our national law enforcement initiatives are actively combatting this problem. Here, on the home front, we have charged thirty percent of the total defendants alleged to have participated in these evolving fraud schemes. Together, we have taken a solid stance against those who rob our communities of tax dollars intended to fund government programs that provide essential, quality of life benefits to the elderly and infirm. Those who commit Medicare fraud through the filing of false claims, payment or receipt of kickbacks, or fraudulent medical practices will be held accountable for defrauding the U.S. government.”
“This action represents the largest criminal health care fraud takedown in the history of the Department of Justice, and it adds to an already remarkable record of enforcement,” said Attorney General Lynch. “The defendants charged include doctors, patient recruiters, home health care providers, pharmacy owners, and others. They billed for equipment that wasn’t provided, for care that wasn’t needed, and for services that weren’t rendered. In the days ahead, the Department of Justice will continue our focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives. We are prepared – and I am personally determined – to continue working with our federal, state, and local partners to bring about the vital progress that all Americans deserve.”
“Health care fraud undercuts our country by driving up health care costs, wasting taxpayer dollars, and diverting Medicare and Medicaid funds designed to pay for legitimate health services. Taxpayers expect their government to fight back hard against such fraud and today’s crackdown shows our commitment to protecting Medicare, Medicaid, and the patients served by these government programs,” said Special Agent in Charge Shimon R. Richmond of U.S. Department of Health and Human Services Office of Inspector General’s Miami regional office. “Coordinating closely with our law enforcement partners, our agents work hard and well to ensure those who steal from federal health care programs pay dearly for their crimes.”
“Health care fraud is a multi-million dollar criminal industry that is bleeding off tax payer dollars from the system leaving people with legitimate health needs to bear the burden,” said George L. Piro, Special Agent in Charge, FBI Miami. “The FBI and its partners devote vast resources to investigate, catch and prosecute those committing health care fraud. To attack the problem from both ends, tougher regulations and oversight are key to reducing the amount of fraud from occurring in the first place.”
Florida Attorney General Pam Bondi stated, “When you charge for a medical procedure you never performed, for something a patient never needed or asked for and steal millions from our taxpayers, we are coming after you. I want to thank my Medicaid Fraud Control Unit and our federal partners who worked together through the Health Care Fraud Prevention and Enforcement Action Team, for the great investigative work that lead to these arrests.”
“Patients rely on the FDA to help keep their prescription medications safe and effective. When these drugs are diverted from the legitimate supply chain, they place the patient’s health at risk,” said George M. Karavetsos, Director, FDA Office of Criminal Investigations. “We will continue to work with our law enforcement colleagues to protect the public’s health.”
Specifically, the South Florida cases announced as part of the nationwide Medicare Fraud Strike Force takedown include:
- United States v. Daniel Suarez, et al., Case No. 15-20411-CR-Middlebrooks
Daniel Suarez, 23, of Miami, Maria Echarri, 40, of North Miami Beach, Angelina Gonzalez, 47, of Miami, Odalys del Carmen Borrego, 47, of Miami, Victor Manuel Ron, 30, of Homestead, Evelyn Parrado, 26, of Homestead, Enemisis Torres, 48, of Miami, and Aimee Geada, 39, of Miami, are charged by indictment with conspiracy to commit health care fraud and wire fraud and substantive counts of health care fraud. The indictment alleges that the defendants participated in overlapping conspiracies which took place from 2010 until the end of 2014. Suarez, Echarri, Gonzalez, and Borrego owned and operated four pharmacies, Alpha Pharmacy & Discount, Inc., Galaxy Pharmacy & Discount Inc., Dixie Pharmacy Discount Inc., and Nicole Pharmacy LLC, and husband and wife, Ron and Parrado, owned and operated a fifth pharmacy, NW Pharmacy, Inc. The indictment further alleges that the defendants and their co-conspirators submitted claims to Medicare and Part D drug plan sponsors that falsely and fraudulently represented that that prescription drugs that had been filled at their pharmacies, were medically necessary, prescribed by a doctor and were actually provided to Medicare beneficiaries. The indictment alleges that the co-conspirators paid Medicare beneficiaries for their personal identification numbers that were used to file false and fraudulent claims with Medicare drug plan sponsors. The indictment further alleges that Torres, through her clinic, Palmetto Comprehensive Healthcare, Inc., with the assistance of employee Geada, forged and altered Medicare beneficiary prescriptions and sold the prescriptions to the co-conspirators, who in turn, caused false and fraudulent claims to be filed with the Medicare and Part D drug program. As a result of these false and fraudulent claims, the defendants billed a total of at least $21.2 million from Medicare.
Mr. Ferrer commended the investigative efforts of HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
- United States v. Eklis Almanza, Juan E. Diaz Gonzalez, and Andres Rojas,Case No. 15-20412-CR-Williams
Eklis Almanza, 42, Juan E. Diaz Gonzalez, 47, both of Hialeah, and Andres Rojas, 56, of Miami, are charged by indictment with conspiracy to commit health care fraud and wire fraud and six counts of substantive health care fraud. The indictment alleges that Almanza, her husband Gonzalez, and their partner Rojas owned and operated Endless Medical Services, Corp., a/k/a “E-Z Pharmacy.” The indictment further alleges that the defendants conspired to commit health care and wire fraud from 2008 to May of 2014 by submitting claims to Medicare and Part D drug plan sponsors that falsely and fraudulently represented that prescription drugs were medically necessary, prescribed by a doctor and actually provided to Medicare Beneficiaries, when in fact this was not true. As a result of these false claims, the defendants received approximately $4,787,343 in overpayments from Medicare.
Mr. Ferrer commended the investigative efforts of HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
- United States v. Jose Pando, Magaly Gonzalez, and Daysi Sanchez,Case No. 14-20398-CR-Cooke
Jose Pando, 62, Magaly Gonzalez, 60, and Daysi Sanchez, 51, all of Hialeah, are charged by indictment with conspiracy to commit health care fraud and wire fraud, four counts of substantive health care fraud, and conspiracy to defraud the United States and pay health care kickbacks. The indictment alleges that the defendants submitted claims to Medicare and Medicare Part D drug plan sponsors that falsely and fraudulently represented that prescription drugs were medically necessary, prescribed by a doctor and actually provided to Medicare beneficiaries when, in fact, the drugs were not medically necessary and not provided. The Indictment also alleges that in furtherance of the conspiracy the co-conspirators submitted false and fraudulent prescription drug wholesaler invoices to conceal from PBMs auditing their operations that they had not purchased sufficient quantities of prescription drugs. As a result of these false and fraudulent claims to Medicare Part D drug plan sponsors made overpayments to Phrma Services, a company controlled by the defendants in the approximate amount of $2.7 million.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James Hayes.
- United States v. Jorge Collazo, Case No. 15-20426-CR-Middlebrooks
Jorge Collazo, 30, of Miami, an owner of Sonic Pharmacy, is charged by indictment with conspiracy to commit health care fraud and wire fraud and four counts of substantive health care fraud. The indictment alleges that the defendant and his co-conspirators submitted claims to Medicare and Medicare Part D drug plan sponsors that falsely and fraudulently represented that prescription drugs were medically necessary, prescribed by a doctor and actually provided to Medicare beneficiaries when, in fact, the drugs were not medically necessary and not provided. As a result of these false and fraudulent claims, Medicare drug plan sponsors made approximately $1.3 million dollars in overpayments to Sonic Pharmacy.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James Hayes.
- United States v. Yamille Duain Porro, Case No. 15-20426-CR-Williams
Dr. Yamille Duain Porro, 69, of Hialeah, is charged by indictment with conspiracy to commit health care fraud and wire fraud, two counts of substantive health care fraud, conspiracy to defraud the United States by paying and receiving health care kickbacks, and four substantive counts of receiving health care kickbacks. The indictment alleges that the defendant and her co-conspirators submitted claims to Medicare via interstate wire which fraudulently and falsely represented that home health care services were medically necessary, prescribed by a doctor, and provided to Medicare beneficiaries when, in fact, they were not medically necessary and not provided. The indictment further alleges that health care kickbacks were paid to patients, patient recruiters, and to the defendant in order to further the scheme. As a result of these false and fraudulent claims, Medicare paid Suncare Home Health and other Miami-based Home Health Agencies.
Mr. Ferrer commended the investigative efforts of the FBI, HHS-OIG and the United States Postal Inspection Service (USPIS). This case is being prosecuted by Assistant U.S. Attorney James Hayes.
- United States v. Adrian Armas and Asley Del Sol Fernandez,Case No. 15-20442-CR-Dimitrouleas
Adrian Armas, 27, and Asley Del Sol Fernandez, 34, both of Miami, are charged by indictment with conspiracy to commit health care fraud and wire fraud and four substantive health care fraud. The indictment alleges that the defendants and their co-conspirators submitted claims to Medicare and Medicare Part D drug plan sponsors that falsely and fraudulently represented that prescription drugs were medically necessary, prescribed by a doctor and actually provided to Medicare beneficiaries when in fact the drugs were not medically necessary and not provided. The indictment also alleges that in furtherance of the conspiracy the co-conspirators submitted false and fraudulent prescription drug wholesaler invoices to conceal from pharmacy benefit managers (PBMs) auditing their operations that they had not purchased sufficient quantities of prescription drugs. As a result of these false and fraudulent claims, Medicare Part D drug plan sponsors made overpayments to Astra Pharmacy in the approximate amount of $1.1 million.
Mr. Ferrer commended the investigative efforts of the HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James Hayes.
- United States v. Laura Ledesma, Case No. 15-20441-CR-Zloch
Laura Ledesma, 31, Hialeah, the president, director and registered agent of EDI Pharmacy, is charged by indictment with six counts of substantive health care fraud. The indictment alleges that the defendant submitted claims to Medicare and Medicare Part D drug plan sponsors that falsely and fraudulently represented that prescription drugs were medically necessary, prescribed by a doctor and actually provided to Medicare beneficiaries, when in fact the drugs were not medically necessary and not provided. As a result of the false and fraudulent claims, Medicare drug plan sponsors made approximately $3.3 million in overpayments to EDI Pharmacy.
Mr. Ferrer commended the investigative efforts of HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James Hayes.
- United States v. Odette Sanchez and Roque Garcia, Case No. 15-20396-CR-King
Odette Sanchez, 37, and Roque X. Garcia, 62, both of Miami Lakes, are charged by indictment with conspiracy to commit health care fraud and wire fraud and three counts of substantive health care fraud. The indictment alleges that Sanchez was the former owner of Limited Home Health Care, Inc., and Garcia was the former director of nursing for the company. The indictment further alleges that Sanchez and Garcia submitted and caused the submission of false and fraudulent claims to Medicare and Florida Medicaid for home health services that were neither medically necessary or actually provided by creating and causing the creation of false and fraudulent patient assessment forms which stated that Medicare and Medicaid beneficiaries were qualified to receive home health services, when in fact, they were not qualified.
Mr. Ferrer commended the investigative efforts of the HHS-OIG and the State of Florida Medicaid Fraud Control Unit (MFCU). This case is being prosecuted by Special Assistant U.S. Attorney Hagerenesh Simmons from the Florida Attorney General MFCU.
- United States v. Emilio Almuina, Case No. 15-20440-CR-Cohn
Emilio Almuina, 46, of Miami, the owner of Little Havana Drug Store, Inc., is charged by indictment with six counts of health care fraud. The indictment alleges that the defendant defrauded the Medicare program out of more than $1.1 million dollars by submitting claims to Medicare and Part D drug plan sponsors which falsely and fraudulently represented that prescription drugs were medically necessary, prescribed by a doctor and actually provided to Medicare beneficiaries, when, in fact, they were not medically necessary and not provided. The indictment also alleges that the defendant paid Medicare beneficiaries to obtain prescriptions for pharmaceutical items to be used in connection with the filing of the false claims. The indictment alleges that as a result of these false and fraudulent claims, Medicare made payments in the approximate amount of $1,161,446.
Mr. Ferrer commended the investigative efforts of FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Kevin J. Larsen.
- United States v. Ivan Fonseca and Ivon Fonseca, Case No. 15-20387-CR-Dimitrouleas
Ivan Fonseca, 51, of Palmetto Bay, and Ivon Fonseca, 53, of Miami, are charged by indictment with conspiracy to commit health care fraud and wire fraud, conspiracy to defraud the United States and receive health care kickbacks, and receipt of kickbacks. The indictment alleges that the defendants allegedly paid the owner of a clinic kickbacks in exchange for home health care service prescriptions. The defendants then used the purchased prescriptions to bill Medicare for physical therapy services that were not medically necessary and never rendered to Medicare beneficiaries. The indictment further alleges that the defendants paid the owner of a physical therapy staffing services agency to provide them with documentation that falsely and fraudulently represented that physical therapy had been rendered to Medicare beneficiaries, when such services were never, in fact rendered. The defendants, through their home health agency, RPH Home Health, fraudulently sought reimbursement from the Medicare program. The indictment also charges the defendants in a second conspiracy related to a scheme to defraud the United States and to receive health care kickbacks. In connection with this scheme, the defendants are charged with allegedly recruiting and referring Medicare beneficiaries to the owner of a Miami, Florida home health agency in exchange for kickbacks. As the result of the defendants’ fraudulent schemes, the Medicare program purportedly sustained losses of approximately $2.2 million.
Mr. Ferrer commended the investigative efforts of FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Kevin J. Larsen.
- United States v. James Bailey, Case No. 15-20425-CR-Ungaro
Jason Bailey, 39, of Opa Locka, is charged by indictment with ten counts of mail fraud, five counts of wire fraud, and one count of aggravated identity theft. The indictment alleges that the defendant was employed by a health care provider to submit claims on their behalf and while submitting claims for payment for services, the defendant caused insurance carriers to send payments to his own address. The defendant then allegedly deposited the checks into bank accounts he controlled.
Mr. Ferrer commended the investigative efforts of FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark.
- United States v. Jesus Martinez, Case No. 15-20448-CR-Martinez
Jesus Martinez, 52, Miami, is charged by Information with conspiracy to commit money laundering. According to the Information, the defendant and his co-conspirators allegedly agreed to engage in a series of financial transactions through American Master Trading, LLC, a Florida corporation. These financial transactions were undertaken in order to conceal the nature, location, source, and ownership of the proceeds of a specified unlawful activity. According to the allegations, the specified unlawful activity was the payment of kickbacks in connection with a Federal health care program, in violation of Title 42, United States Code, Section 1320a-7b(b)(2)(A).
Mr. Ferrer commended the investigative efforts of FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James Hayes.
- United States v. Dean Butler, et al., Case No. 15-20438-CR-Bloom
Dean Butler, 42, of Broward County, Nery Cowan, 53, of Miami, and Irina Mora, 47, of Miami, are charged with conspiracy to defraud the United States and pay and receive health care kickbacks, seven counts of substantive health care fraud, conspiracy to commit money laundering, and five counts of substantive money laundering. In addition, Cowan and Butler are charged with conspiracy to commit health care fraud and wire fraud. The indictment alleges that Butler, the owner, administrator, and director for Greater Miami Behavioral Healthcare, along with his associates Cowan and Mora paid kickbacks to patient brokers who, in turn, paid kickbacks to patient recruiters and assisted living facility owners located throughout the Southern District of Florida. The indictment further alleges that as a result of the defendants conduct, the Medicare program sustained losses of approximately $63.9 million.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Allan J. Medina of the Criminal Division’s Fraud Section.
- United States v. Otto Egea, Case No. 15-20449-CR-Lenard
Otto Egea, 57, of Miami, is charged by Information with conspiracy to defraud the United States and accept health care kickbacks. The Information filed against Egea, who served as a patient broker for Greater Miami Behavioral Healthcare, alleges that the defendant received kickbacks in exchange for recruiting patients.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Allan J. Medina of the Criminal Division’s Fraud Section.
- United States v. Nayra Nario, Case No. 15-20450-CR-Moore
Nayra Nario, 48, of Monroe County, is charged by Information with conspiracy to defraud the United States and accept health care kickbacks. The Information filed against Nario, who served as a patient broker for Greater Miami Behavioral Healthcare, alleges that the defendant received kickbacks in exchange for recruiting patients.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Allan J. Medina of the Criminal Division’s Fraud Section.
- United States v. Santiago Borges, et. al., Case No. 15-20383-CR-Ungaro
Santiago Borges, 50, Erik Alonso, 44, Cristina Alonso, 43, and Damian Mayol, 43, all of Miami, each face various charges from among the following offenses included in the indictment: conspiracy to commit health care fraud and wire fraud, conspiracy to defraud the United States and pay health care kickbacks, payment of kickbacks in connection with a federal health care program, and conspiracy to make false statements relating to health care matters. The indictment alleges that the four defendants caused the submission of false and fraudulent claims to Medicare for partial hospitalization program (“PHP”) services which were not medically necessary and not provided. As a result of this conduct, the Medicare program sustained losses of approximately $65 million.
Mr. Ferrer commended the investigation efforts of the FBI. This case is being prosecuted by DOJ Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
- United States v. Lourdes Mora, Case No. 15-20416-CR-King
United States v. Osnier Pupo, Case No. 15-20417-CR-King
Lourdes Mora, 59, a licensed mental health counselor, and Osnier Pupo, 38, both of Miami, are charged by Information with conspiracy to commit health care fraud and conspiracy to defraud the United States and pay and receive health care kickbacks, respectively. The Information filed against Mora alleges that she was a licensed mental health counselor who worked as a therapist at R&S, St. Theresa, and New Day where she fabricated patient records, including group therapy session notes, to make it appear that patients qualified for and received legitimate partial hospitalization program (“PHP”) services when, in fact, such services were not medically necessary and/or were not provided. The Information alleges that Pupo was paid for recruiting patients for the clinics, and in turn paid kickbacks to other patient recruiters for patient referrals and directly to beneficiaries to induce them to serve as patients at the clinics.
Mr. Ferrer commended the investigation efforts of the FBI. This case is being prosecuted by DOJ Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
- United States v. Ana Ibis Rumbaut, Carlos Medina and Sheyla Diaz,Case No. 15-20424-CR-Altonaga
Ana Ibis Rumbaut, 44, of Hialeah, Carlos Medina, 63, of Miami, and Sheyla Diaz, 35, of Miami, are charged by indictment with conspiracy to commit health care fraud and wire fraud, conspiracy to defraud the United States and pay and receive health care kickbacks, and substantive kickback counts. The indictment alleges that the defendants and their co-conspirators participated in multi-million dollar health care fraud and kickback schemes involving a medical clinic, a fraudulent therapy staffing company, and multiple South Florida home health agencies. The indictment also alleges that Rumbaut was a patient recruiter who ran a fraudulent therapy staffing company that purportedly provided home health services to Medicare beneficiaries at these home health agencies, but in reality, often did not. The indictment further alleges that Medina was an owner of Doral Community Clinic, Inc. (“Doral”), a medical clinic that sold fraudulent home health prescriptions which were used by these home health agencies to fraudulently bill Medicare. The indictment alleges that Diaz worked at Doral and also sold fraudulent home health prescriptions. Through these home health agencies, the defendants and their co-conspirators allegedly submitted millions of dollars in false and fraudulent claims to Medicare for purported home health services.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorneys A. Brendan Stewart and Anne P. McNamara of the Criminal Division’s Fraud Section.
- United States v. Yovani Suarez, Case No. 15-20429-CR-Altonaga
Yovani Suarez, 48, of Miami, is charged by Information with conspiracy to commit health care fraud. The Information alleges that Suarez was a patient recruiter who worked closely with the owners and operators of several South Florida home health agencies. According to the Information, Suarez allegedly was paid kickbacks by the owners and operators of these agencies in return for referring beneficiaries to serve as patients at these agencies. The Information further alleges that the defendant bought fraudulent home health prescriptions from individuals at South Florida medical clinics and acted as a go-between for these home health agencies and other patient recruiters. Allegedly, in this role, the defendant offered other patient recruiters kickbacks for referring patients to these home health agencies.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorneys A. Brendan Stewart and Anne P. McNamara of the Criminal Division’s Fraud Section.
- United States v. Vladimir Prieto, et. al., Case No. 15-20385-CR-Middlebrooks
Vladimir Prieto, 52, of Miami, Ruben Maranges, 62, of Miami, Javier Paulino, 26, of Miami, Armando Lugo, 48, of Miami, and Mario Izquierdo, 57, of Hialeah, are charged by indictment with conspiracy to commit health care fraud and wire fraud, conspiracy to commit money laundering, conspiracy to defraud the United States and pay and receive health care kickbacks, and substantive kickback and money laundering counts. The indictment alleges that for several years the defendants participated in health care fraud, money laundering and kickback schemes involving USA Home Care Solution Agency, Corp. (“USA Home Care”). The indictment further alleges that patient recruiters provided non-homebound beneficiaries to owners and operators at this South Florida home health agency, in exchange for illegal kickbacks and bribes. The indictment alleges that the defendants laundered money, in order to help obtain cash used to pay many of these kickbacks. The indictment further alleges that the fraudulent therapy staffing companies documented home health services purportedly provided to beneficiaries at USA Home Care, but in reality, the services were often not provided. The indictment alleges that the estimated loss to the Medicare program from these activities is $8.7 million.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Anne P. McNamara of the Criminal Division’s Fraud Section.
- United States v. Milka Alvarez, et. al., Case No. 15-20436-CR-Gayles
Milka Alvarez, 42, of Miami, Jesus Miguel Perez, 50, of Miami, Joel Alvarez, 42, of Miami, Sandra Jaramillo, 39, of Miami, Adolfo Larrea, 53, of Miami, and Maria Teresa Pupo, 50, of Opa Locka, are charged by indictment with criminal offenses. Alvarez, Jaramillo, Alvarez, and Perez are all charged with conspiracy to commit health care fraud, and conspiracy to defraud the United States and pay health care kickbacks, and substantive counts of paying or receiving health care kickbacks. Larrea is charged with conspiracy to defraud the United States and pay and receive health care kickbacks and two substantive counts of payment of health care kickbacks. The indictment alleges that for more than five years, the defendants participated in health care fraud and kickback schemes involving the Yava Medical Office Inc. (“Yava”) clinic and several South Florida home health agencies, including D&D&D Home Health Care, Inc. (“D&D&D”) and Mercy Home Care Inc. (“Mercy”). The indictment further alleges that Alvarez was the longtime owner and operator of the Yava clinic. In this role, Alvarez allegedly conspired with others to sell fraudulent home health prescriptions which were used by the home health agencies to fraudulently bill Medicare for millions of dollars. Pupo was allegedly a patient recruiter who bought fraudulent prescriptions, and referred beneficiaries to D&D&D and Mercy. The indictment further alleges that Perez, Alvarez, Jaramillo, and Larrea were all owners, operators or employees of these home health agencies, and participated in the health care fraud and kickback schemes. Through these home health agencies, the defendants and their co-conspirators allegedly submitted false and fraudulent claims to Medicare for home health services purportedly provided to recruited Medicare beneficiaries.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Anne P. McNamara of the Criminal Division’s Fraud Section.
- United States v. Lazaro Del Rio, et. al., Case No. 15-20409-CR-Ungaro
Lazaro Del Rio, 55, of Miami, Hector Anzardo, 42, of Miami, Yanella Nunez, 41, of Hialeah, and Yocis Nunez, 42, of Hialeah, are charged by indictment with conspiracy to commit health care fraud and wire fraud, and with multiple counts of health care fraud. The indictment alleges that the defendants filed false and fraudulent prescription drug claims to Medicare and Part D drug plan sponsors through Vivi Pharmacy.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Anne P. McNamara of the Criminal Division’s Fraud Section.
- United States v. Alfredo Ramos, Case No. 15-20430-CR-Lenard
Alfredo Ramos, 48, of Miami, is charged by Information with conspiracy to defraud the United States and receive health care kickbacks. The Information alleges that Ramos was a patient recruiter for Professional Medical Home Health LLC, USA Home Care Solution Agency Corp., and Longcare Home Health Corporation, all of which were Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries. The Information alleges that Ramos referred Medicare beneficiaries to these agencies in exchange for kickback payments. As a result, Ramos and his co-conspirators allegedly caused false and fraudulent claims to be submitted to Medicare for home health services purportedly provided by these agencies.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Anne P. McNamara of the Criminal Division’s Fraud Section.
- United States v. Luis Toledo, Case No. 15-20407-CR-Cooke
Luis Toledo, 49, of Hialeah, is charged by indictment with conspiracy to defraud the United States and pay and receive health care kickbacks, conspiracy to commit money laundering, and substantive money laundering counts. The indictment alleges that Toledo paid kickbacks to patient recruiters in exchange for the referral of Medicare beneficiaries to Renovation Health Care, a Miami-Dade home health care agency. The indictment further alleges that the defendant and his co-conspirators engaged in a money laundering conspiracy to conceal the proceeds of the kickback scheme.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Kelly Graves of the Criminal Division’s Fraud Section.
- United States v. Idelia Florat Viamontes, Case No. 15-20432-CR-Ungaro
Idelia Florat Viamontes, 55, of Miami, is charged by Information with conspiracy to defraud the United States and receive health care kickbacks. The Information alleges that the defendant was a patient recruiter who referred Medicare beneficiaries to multiple Miami-Dade home health care agencies in exchange for bribes and kickbacks.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Kelly Graves of the Criminal Division’s Fraud Section.
- United States v. Khaled Elbeblawy, Case No. 15-20546-CR-Bloom
Khaled Elbeblawy, 38, of Broward County, is charged by Information with one count of conspiracy to commit health care fraud. The indictment alleges that the defendant was an employee of Willsand Home Health agency and Owner of JEM Home Health Care Inc. From 2006 through 2011, the defendant submitted and caused the submission of false claims to Medicare for home health services that were not medically necessary and not provided. The defendant also paid kickbacks to patient recruiters in return for referring Medicare beneficiaries to Willsand and JEM. As a result of the submission of false claims, Medicare made payments in the approximate amount of $37 million.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorneys Lisa H. Miller and Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
- United States v. Jose Ramos, Case No. 15-20435-CR-King
Jose Ramos, 42, of Miami, is charged by indictment with health care fraud. The indictment alleges that Ramos was the owner of Garcia Pharmacy, located in Miami-Dade County. The indictment further alleges Ramos used Garcia Pharmacy to submit claims to Medicare Part D drug plan sponsors for purportedly providing prescription drugs to Medicare beneficiaries when in fact, the beneficiaries were not prescribed and did not receive the medication.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Shubhra Shivpuri of the Criminal Division’s Fraud Section.
- United States v. Evelio Fernandez Penaranda, Case No. 15-20399-CR-Moore
Evelio Fernandez Penaranda, 47, of Miami, is charged by indictment with health care fraud. The indictment alleges that Fernandez Penaranda owned and operated Naranja Pharmacy and that from approximately May of 2013 until March of 2014, the defendant used the pharmacy to submit claims for prescription drugs to Medicare Part D and other Medicare Drug Sponsors, which were unnecessary, not prescribed and not provided.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Shubhra Shivpuri of the Criminal Division’s Fraud Section.
- United States v. James Banner, Case No. 15-20408-CR-Martinez
James Banner, 47, of Miami, is charged by indictment with conspiracy to defraud the United States and pay and receive health care kickbacks. The indictment alleges that Banner, who owned and operated Oracle Diagnostic Laboratories, had Oracle perform drug tests at several facilities in Southern Florida in exchange for a percentage of Oracle’s billings for these services to Medicare.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Nicholas E. Surmacz of the Criminal Division’s Fraud Section.
- United States v. Tamara Esponda, Case No. 15-20439-CR-Cohn
Tamara Esponda, 47, of Hialeah, is charged by indictment with healthcare fraud. The indictment alleges that Esponda, owner and operator of Biomax Pharmacy, caused the pharmacy to bill Medicare Part D drug plan sponsors for prescription drugs that it never dispensed, and never purchased from wholesalers. The indictment alleges that the estimated loss to the Medicare program as a result of Esponda’s actions is approximately $1,582,976 million.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Timothy Loper of the Criminal Division’s Fraud Section.
- United States v. Tomas Garcia Torres, Case No. 15-20346-CR-Lenard
Tomas Garcia Torres, 44, of Hialeah, is charged by indictment with healthcare fraud. The indictment alleges that Torres, owner and operator of San Nicolas Pharmacy caused the pharmacy to bill Medicare Part D drug plan sponsors for prescribing drugs that it never dispensed and never purchased. The indictment alleges that the estimated loss to the Medicare program as a result of Torres’ actions is approximately $1,680,127 million.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Timothy Loper of the Criminal Division’s Fraud Section.
- United States v. Raynel Soto-Rivera, Case No. 15-2740-mj-CMM
Raynel Soto-Rivera, age 39, of Hialeah, is charged by complaint with money laundering. According to allegations contained in the complaint, principals of Gold Care Home Health Services caused the submission of fraudulent claims to Medicare seeking payment for home health services that were not legitimately prescribed or provided. The complaint alleges that Medicare paid over $2.4 million to Gold Care Home Health Services based on these fraudulent claims. The complaint further alleges that Soto-Rivera assisted with laundering $50,000 in fraud proceeds he received from Gold Care Home Health Services.
Mr. Ferrer commended the investigation efforts of the FBI, HHS-OIG, and DHS-HSI. This case is being prosecuted by DOJ Attorney Christopher Hunter of the Criminal Division’s Fraud Section.
- United States v. Gustavo Castillo, Case No. 15-2783-CMM-Torres
Gustavo Castillo, 42, of Hialeah, is charged by complaint with laundering the proceeds of a conspiracy that attempted to defraud Medicare of almost $24 million by submitting false claims for durable medical equipment. The complaint alleges that as a result of the fraudulent conspiracy Medicare paid approximately $3.5 million. The complaint further alleges that the defendant owned and operated Castillo Transportation Services, which received approximately $140,000 from the members of the Medicare conspiracy.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Timothy Loper of the Criminal Division’s Fraud Section.
- United States v. Jorge Moreno and Luis Antony Rivera, Case No. 15-2806-mj-Torres
Jorge Moreno, 50, of Tampa, and Luis Antony Rivera, 50, of Punta Gorda, are charged by complaint prescription drug diversion, by selling prescription drugs, with the intent to defraud and mislead, not as a wholesale distributor, and without transaction history, transaction information, and transaction statements as required by Title 21, United States Code, Section 360eee-1(c)(1)(A)(iii), in violation of Title 21, United States Code Sections 331(t) and 333(a)(2). The complaint alleges that between April 6, 2015, and June 15, 2015, the defendants and their co-conspirators improperly sold diverted prescription drugs to undercover agents on three separate occasions during buy operations recorded and controlled by law enforcement. The complaint alleges that the drugs sold on these three occasions were worth, in the aggregate, approximately $200,000.
Mr. Ferrer commended the investigative efforts of the FDA-OCI and HHS-OIG.This case is being prosecuted by Assistant U.S. Attorney James Hayes.
- United States v. Miriam Valdez, Case No. 15-2833-mj-JG
Miriam Valdez, 62, of Miami, is charged by complaint with prescription drug diversion, by selling prescription drugs, with the intent to defraud and mislead, not as a wholesale distributor, and without transaction history, transaction information, and transaction statements as required by Title 21, United States Code, Section 360eee-1(c)(1)(A)(iii), in violation of Title 21, United States Code Sections 331(t) and 333(a)(2). The complaint alleges that on June 16, 2015, the defendant and her co-conspirator improperly sold diverted prescription drugs during a recorded law enforcement operation. The complaint alleges that the drugs sold on these three occasions were worth, in the aggregate, approximately $100,000.
Mr. Ferrer commended the investigative efforts of the FDA-OCI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James Hayes.
- United States v. Indira Martell, Case No. 15-2805-mj-TORRES
Indira Martell, 48, of Miami, an owner of Martell Pharmacy, is charged by complaint with health care fraud. The complaint alleges that the defendant and her accomplices submitted claims to Medicare and Medicare Part D drug plan sponsors and to Medicaid that falsely and fraudulently represented that prescription drugs were medically necessary, prescribed by a doctor and actually provided to Medicare beneficiaries when, in fact, the drugs were not medically necessary and were not provided. As a result of these false and fraudulent claims, Medicare Part D drug plan sponsors and Medicaid made approximately $4.9 million dollars in overpayments to Martell Pharmacy.
Mr. Ferrer commended the investigative efforts of HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James Hayes.
If convicted of a charged offense, a defendant faces a possible maximum statutory sentence of five years in prison for conspiracy to defraud the United States by paying and receiving health care kickbacks, in violation of Title 18, United States Code, Section 371; five years in prison for payment and receipt of kickbacks in connection with a federal health care program, in violation of Title 42, United States Code, Section 1320a; twenty years in prison for mail or wire fraud, in violation of Title 18, United States Code, Section 1341; ten years in prison for health care fraud, in violation of Title 18, United States Code, Section 1347; twenty years for conspiracy to commit health care fraud and wire fraud, in violation of Title 18, United States Code, Section 1349; twenty years for money laundering or conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956; and two years in prison consecutive to any other term for aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 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 their inception in March 2007, Strike Force operations in nine locations have charged over 2,300 defendants who collectively have falsely billed the Medicare program for over $7 billion.
Including today’s enforcement actions, nearly 900 individuals have been charged in national takedown operations, which have involved more than $2.5 billion in fraudulent billings. Today’s announcement marks the first time that districts outside of Strike Force locations have participated in a national takedown and accounted for 82 defendants charged in the takedown.
The cases announced today are being prosecuted and investigated by Medicare Fraud Strike Force teams from the Fraud Section of the Justice Department’s Criminal Division and from the U.S. Attorney’s Offices for 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 and the Middle District of Florida; and agents from the FBI, HHS-OIG, OPM, and state Medicaid Fraud Control Units (MFCU).
In addition to the Strike Force, today’s enforcement actions include cases brought by the U.S. Attorney’s Offices for the Southern District of Illinois, Northern District of Ohio, Western District of Pennsylvania, Western District of Kentucky, Southern District of New York, Alaska and the Southern District of Georgia.
A complaint, information or indictment is merely a charge, and defendants are presumed innocent until proven guilty.
To learn more about HEAT, go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Seven Charged in North Texas as Part of Largest National Medicare Fraud Takedown in HistoryRead the Press Release
DALLAS – Attorney General Loretta E. Lynch and Department of Health and Human Services (HHS) Secretary Sylvia Mathews Burwell announced today a nationwide sweep led by the Medicare Fraud Strike Force in 17 districts, resulting in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings. In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act. This coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants charged and loss amount.
“This action represents the largest criminal health care fraud takedown in the history of the Department of Justice, and it adds to an already remarkable record of enforcement,” said Attorney General Lynch. “The defendants charged include doctors, patient recruiters, home health care providers, pharmacy owners, and others. They billed for equipment that wasn’t provided, for care that wasn’t needed, and for services that weren’t rendered. In the days ahead, the Department of Justice will continue our focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives. We are prepared – and I am personally determined – to continue working with our federal, state, and local partners to bring about the vital progress that all Americans deserve.”
Acting U.S. Attorney John Parker of the Northern District of Texas announced that as part of the nationwide takedown, seven individuals, including two physicians and one registered nurse, were indicted in the district.
“This district will continue to focus all the tools and resources of the Medicare Fraud Strike Force on those who cheat not only Medicare and Medicaid, but all taxpayers and vulnerable patients as well,” said Acting U.S. Attorney Parker. “When these schemes are uncovered, and they will be, this office will not hesitate to bring indictments, such as the two that were unsealed this week in Dallas, against those who defraud these essential health care programs.”
One indictment charges each of the below-listed defendants with one count of conspiracy to commit health care fraud:
Noble U. Ezukanma, 56, of Fort Worth, Texas
Myrna S. Parcon, a/k/a “Merna Parcon,” 62, of Dallas, Texas
Lita S. Dejesus, 70, of Allen, Texas
Oliva A. Padilla, 57, of Garland, Texas
Ben P. Gaines, 55, of Plano, Texas
These five defendants were arrested on Tuesday, June 16, 2015. Each made their initial appearance in federal court and was released on bond. A sixth defendant is expected to surrender to federal authorities tomorrow in Dallas.
Defendants Ezukanma, Parcon, and Dejesus owned/operated US Physician Home Visits (USPHV), a/k/a “Healthcare Liaison Professionals, Inc.” located on Viceroy Drive in Dallas. Parcon was the owner/manager and Ezukanma was a licensed medical doctor who had an ownership interest in USPHV. Both Ezukanma and another physician provided their Medicare number to the company to use to submit Medicare claims. Dejesus served in various roles at USPHV, including overseeing Medicare billing.
Gaines formed A Good Homehealth (A Good), a/k/a “Be Good Healthcare, Inc.,” which was located in the same office as USPHV. Parcon, who owned and operated A Good, purchased the company through a “straw” buyer; both Gaines and Parcon concealed Parcon’s ownership.
Parcon and Padilla formed Essence Home Health (Essence), a/k/a “Primary Angel, Inc.,” located on Midway Road in Addison, Texas.
While the three companies appeared to be set up as three separate entities, the companies worked as one; the same employees often worked for all three companies and were often paid by all three companies.
According to the indictment, from January 1, 2009 to approximately June 9, 2013, the defendants ran a conspiracy to defraud Medicare. As part of the fraudulent business model, Ezukanma and another physician certified 94% of the Medicare beneficiaries receiving home health services from A Good, and 65% of the Medicare beneficiaries receiving home health services from Essence. Had Medicare known of the true ownership and improper relationship between the three companies, Medicare would not have allowed these companies to enroll in the program and bill for services.
The indictment alleges that USPHV submitted billing primarily under Dr. Ezukanma’s Medicare provider number, regardless of who actually performed the service. They billed at an alarming rate, generally billing for only the most comprehensive physician exam, and always adding a prolonged service code. USPHV submitted claims to Medicare for physician visits of 90 minutes or more, when most visits took only 15 to 20 minutes. Most all of USPHV patients came from home health companies soliciting certifications and recertifications for home health. More than 97% of USPHV Medicare patients received home health care, whether they needed it or not. The indictment alleges that false certifications caused Medicare to pay more than $40 million for fraudulent home health services.
The other indictment charges Mariamma Viju, 50, of Garland, Texas, with one count of conspiracy to commit health care fraud, five counts of health care fraud, and one count of wrongful disclosure of individually identifiable health information. Viju is a registered nurse and is the co-owner and Director of Nursing for Dallas Home Health, Inc. She was arrested on Tuesday, June 16, 2015, made her initial appearance in federal court, and was released on bond.
The indictment alleges Viju and her coconspirators stole patient information from Dallas-area hospitals with the intent to use that information to solicit patients for Dallas Home Health. Viju allegedly purposefully took that information from Baylor University Medical Center at Dallas, where she worked as a nurse until her employment was terminated.
Dallas Home Health billed Medicare and Texas Medicaid for home health service on behalf of Medicare beneficiaries and Medicaid clients who were not homebound and other otherwise eligible for covered home health services. As Director of Nursing, Viju falsified and exaggerated the nature of patients’ health conditions to increase the amount billed to Medicare and Medicaid, and paid to Dallas Home Health. Viju also allegedly paid kickbacks to Medicare beneficiaries to recruit and retain them as patients of Dallas Home Health.
In a related case, Mariamma Viju’s husband, Viju Mathew, 50, also of Garland, a former registration specialist at Parkland Hospital in Dallas, pleaded guilty in November 2014 to one count of fraud and related activity in connection with identification documents, authentication features and information (identity theft). He used his position at the hospital to obtain confidential patient information, including patients’ names, telephone numbers, dates of birth, participation in the Medicare program, and government-issued health insurance claim numbers so that he could use it to contact prospective patients for his home health care business. He is scheduled to be sentenced in August 2015.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 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 their inception in March 2007, Strike Force operations in nine locations have charged over 2,300 defendants who collectively have falsely billed the Medicare program for over $7 billion.
Including today’s enforcement actions, nearly 900 individuals have been charged in national takedown operations, which have involved more than $2.5 billion in fraudulent billings. Today’s announcement marks the first time that districts outside of Strike Force locations have participated in a national takedown and accounted for 82 defendants charged in the takedown.
A complaint or indictment is merely a charge, and defendants are presumed innocent until proven guilty. The maximum statutory penalty for each count in each of these two indictments is 10 years in federal prison and a $250,000 fine.
The Northern District of Texas cases are being investigated by the FBI, the U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit and were brought as part of the Medicare Fraud Strike Force supervised by the Criminal Division Fraud Section and the U.S. Attorney’s Office for the Northern District of Texas.
Assistant U.S. Attorneys Katherine Pfeifle and Douglas Brasher are in charge of the prosecutions.
Settlement Reached in Fraud Lawsuit Against Sapulpa CompanyRead the Press Release
TULSA, Okla.—Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma, announced today that H&R Enterprises, LLC has agreed to pay $6,500 in civil penalties to settle allegations of violating the Buy American Act (BAA) and submitting false claims to the United States, in violation of the False Claims Act.
In December 2009, H&R Enterprises, LLC, based in Sapulpa, OK, submitted a bid on a construction project for rehabilitating and painting multiple storage tanks in the City of Dimmitt, Texas that was funded by the Stimulus Act and administered by the Environmental Protection Agency. In order to ensure compliance with the BAA, H&R was required to submit documentation, known as BAA Certificates, certifying that the materials to be used on the project were manufactured in the United States.
The United States Attorney’s Office brought a lawsuit against H&R under the False Claims Act. The suit alleged that steel reinforcing plates used by H&R were not manufactured in the U.S. and that the BAA Certificates submitted by H&R for the steel plates were falsified in that they contained fictitious names and forged signatures of personnel of the American companies from which the steel plates were purportedly acquired; the notary stamps on the Certificates were counterfeited; and the notary’s names were forged.
“This settlement demonstrates a commitment to ensuring individuals and companies that do business with the Government, and receive taxpayer money, comply with the law. We will investigate and prosecute violators, regardless of the monetary value of the violation,” said U.S. Attorney Williams. “We encourage the public to report individuals and companies that are committing fraud or otherwise violating the law concerning Government contracts.”
The Buy American Act was codified in the depression era during the time of the New Deal to help American companies. The Act established a general preference for the use of materials manufactured in the United States on public works projects funded by the U.S. Government. Contractors on public works projects are required to certify the materials used are manufactured in the United States.
Assistant United States Attorney Marianne Hardcastle represented the United States and the investigation was conducted by Agent Edwin Debiew, Environmental Protection Agency, Office of Inspector General, Office of Investigations.
Sentencings for June 12 - June 18, 2015Read the Press Release
Jeremy Charles Hubbard, 36, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on June 18, 2015, for being a felon in possession of a firearm. Hubbard was arrested in Casper, Wyoming. He received 12 months and one day imprisonment, to be followed by three years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Natrona County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Omar Gomez-Salazar, 22, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 12, 2015, for illegal re-entry of a previously deported alien into the United States. Gomez-Salazar was arrested in Wheatland, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Seminole County Man Sentenced for Receipt of Child PornographyRead the Press Release
Orlando, Florida – United States District Judge Ann C. Conway has sentenced Edward Adams (57, Sanford) to 11 years and 3 months in federal prison for receipt of child pornography. He was also ordered to serve a life term of supervision following his release from prison. Adams pleaded guilty on January 28, 2015.
According to the plea agreement, in September 2014, an FBI task force officer conducted an investigation involving child pornography being shared online. The officer downloaded images depicting child pornography from a computer that was later traced to Adams. On November 10, 2014, a federal search warrant was executed at Adams’s residence and his laptop computer was seized. The forensic analyses of the computer revealed images and movies depicting child pornography. During an interview with agents, Adams admitted that he had downloaded and possessed child pornography, and that he had sexually molested a minor in 1978.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Sellersburg woman indicted on six counts of wire fraudRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today federal charges against a Sellersburg woman for six counts of wire fraud. Lesley R. Kruer, 42, was charged by indictment this week for her role in stealing over $250,000 in a 10 year period.
“Stealing from corporate businesses affects us all,” said Minkler. “It increases prices we pay at the counter and has a generally negative effect on our economy.”
Kruer was the office manager for a company based in Sellersburg, IN., which operated 28 Kentucky Fried Chicken restaurants in Indiana and Kentucky. She was entrusted with the company’s payroll, to pay vendors and purchase equipment. Kruer had access to and signature authority for bank accounts for the victim company and was authorized to use company credit cards for business expenses.
The scheme to defraud allegedly began in July 2004 and continued until June 2014 with the victim company sustaining over $250,000 in losses. Kruer accessed the payroll system giving herself unauthorized raises and abused company credit cards pretending to be making business expense purchases when in fact she was using the cards for personal items like a foot massager and paying her personal cell phone bill. Further, she intentionally overpaid vendors for goods and services they provided. When the vendor would reimburse the company for the overpayment, Kruer allegedly deposited the check into her personal account.
This case was jointly investigated by the United States Secret Service and the Clark County Sheriff’s Department.
“This case demonstrates the strong partnership of the Secret Service Electronic Crimes Task Force and the Clark County Sheriff’s Department in protecting individuals and businesses within the community,” said Craig Hutzell, Acting Special Agent in Charge, Louisville Field Office, U.S. Secret Service. “We will continue to leverage this relationship in our pursuit of those who would use illegal means and criminal behavior to take advantage of others.”
According to Assistant United States Attorney Tiffany J. McCormick who is prosecuting this case for the government, Kruer faces up to 20 years in federal prison if convicted.
An indictment is only a charge and not evidence of guilt. All defendants are innocent until proven otherwise in federal court.
Second Individual Pleads Guilty to Investment FraudRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that Bryan T. Zuzga (37, Coldwater, Michigan) has pleaded guilty to conspiracy to commit wire fraud. He faces up to 20 years in federal prison and has also agreed to pay more than $11.6 million in restitution to his victims. A sentencing date has not yet been set.
According to court documents, Zuzga and his two conspirators, Jenifer E. Hoffman (38, Clermont) and John C. Boschert (43, Apopka), defrauded over $11 million from more than 100 victims through investments offered in connection with a company called Assured Capital Consultants. As part of their solicitations, the conspirators represented to investors that money would be placed in a Performing Private Placement Investment, and that Boschert had connections to the trading program being used. Investors were told that their investments would be safe and that none of their money would leave the attorney escrow account that belonged to Zuzga, who was represented as being an attorney licensed in Florida. Investors were further advised that their funds would be used as collateral for a line of credit, which would then be used in trading.
None of those representations were true. Zuzga was not an attorney licensed in Florida or any other state, and the funds were not deposited into any escrow account controlled by him. Instead, the three operated a scheme in which money from later investors was paid to earlier investors. The three also used some of the money from the scheme for themselves, including purchasing residences for Hoffman and Zuzga.
In a prior civil proceeding, the United States forfeited two residences belonging to Hoffman and Zuzga, which had been purchased with proceeds from the scheme. The government obtained more than $850,000 from the sale of the properties. The proceeds from those sales were distributed to the victims of the scheme.
Boschert pleaded guilty on October 29, 2014, to conspiracy to commit wire fraud and is scheduled to be sentenced on June 23, 2015. Hoffman has been charged with one count of conspiracy, eleven counts of wire fraud, and one count of making a false tax return. Her trial is set for July 6, 2015. If convicted, she faces a maximum penalty of 20 years in federal prison for each count of conspiracy and wire fraud, and 3 years in federal prison for the false tax return.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the United States Secret Service, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Roger B. Handberg, James Mandolfo, and Nicole M. Andrejko.
Sanford Man Pleads Guilty to Producing and Receiving Child PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Douglas Scheels (43, Sanford) pleaded guilty today to producing and receiving child pornography. He faces a mandatory minimum penalty of 15 years, up to 30 years, in federal prison for the production charge and a mandatory minimum of 5 years, up to 20 years, for the receipt charge. A sentencing date has not yet been set.
According to the plea agreement, from at least June 2014, and continuing through his arrest on January 11, 2015, Scheels sought out, identified, communicated with, and sexually exploited several minor victims. He enticed two minors from his neighborhood into producing child pornography. Scheels also sought out additional minor victims from his neighborhood. Using online communications, Scheels persuaded a minor to produce and send him explicit photos, and also communicated with additional minors over the Internet for the same purpose.
This case was investigated by the Federal Bureau of Investigation, the Seminole County Sheriff’s Office, and the Sanford Police Department. It is being prosecuted by Assistant United States Attorney J. Bishop Ravenel.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
San Miguel County Man Sentenced to 92 Months for Trafficking Narcotics in Lea and Bernalillo CountiesRead the Press Release
ALBUQUERQUE – Ruben Estrada, 54, of Las Vegas N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 92 months in federal prison followed by five years of supervised release for his conviction on conspiracy and cocaine trafficking charges.
Estrada was one of six defendants charged as the result of an investigation primarily targeting a drug trafficking organization operating in Lea County, N.M., that allegedly was led by co-defendant Leroy Castillo, 33, of Hobbs, N.M. The investigation, which was led by the FBI and Lea County Drug Task Force (LCDTF) with assistance from the DEA and New Mexico State Police, was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Estrada was arrested on May 1, 2014, on a criminal complaint charging him, Castillo and four other defendants with conspiracy to violate the federal narcotics laws and possession of cocaine and heroin with intent to distribute. According to the criminal complaint, Estrada, Castillo, Joe Padilla, 33, Sergio Garza, 35, both of Hobbs, N.M., Richard Armijo-Romero, 23, of Las Vegas, N.M., and Charlie Gutierrez, 35, of Albuquerque, N.M., committed these offenses in Lea and Bernalillo Counties, N.M., between late April 2014 and early May 2014. Armijo-Romero and Gutierrez were arrested with Estrada on May 1, 2014, Garza was arrested in Hobbs on May 1, 2014, and Padilla was arrested on Feb. 19, 2015. Castillo has not yet been arrested and is considered a fugitive.
The criminal complaint outlines an investigation revealing that the defendants participated in a conspiracy to transport narcotics from Arizona to New Mexico and planned to distribute the narcotics in Lea and Bernalillo Counties.
Estrada, Castillo and their co-defendants subsequently were indicted in May 2014. Count 1 of the seven-count indictment charged all six defendants with participating in a cocaine trafficking conspiracy in Lea County in late April and early May 2014. Count 2 charged the six men with participating in a conspiracy to distribute cocaine in Bernalillo County, N.M., on May 1, 2014. Counts 3 and 4 charged Castillo with possession of cocaine and heroin with intent to distribute on May 1, 2014 in Lea County, and Counts 5 and 6 charged Garza with possession of cocaine with intent to distribute on May 1, 2014. Count 7 charged Garza with using and carrying a firearm in relation to a drug trafficking crime.
On March 11, 2015, Estrada pled guilty to a felony information charging him with participating in a cocaine trafficking conspiracy and possession of cocaine with intent to distribute. Estrada admitted having approximately eight kilograms of cocaine in his possession when he was arrested on May 1, 2014. Estrada also admitted that he violated the conditions of his supervised release from a prior cocaine trafficking conviction in 2006 by committing the crimes to which he is pleading guilty and by traveling to Arizona without the permission of his probation officer.
Garza, Armijo-Romero, Padilla and Gutierrez have entered guilty pleas and are pending sentencing. Castillo, who has yet to be arrested, is considered a fugitive. Individuals with information regarding the whereabouts of Castillo are asked to call the FBI at 505-622-6001. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces, Roswell and Albuquerque offices of the FBI and the LCDTF, with assistance from the Las Cruces office of the DEA, the New Mexico State Police and the Phoenix Police Department. The case is being prosecuted by Assistant U.S. Attorneys Terri L. Abernathy and Shaheen P. Torgoley.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Sacramento Men Indicted for Trafficking Methamphetamine and CocaineRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Sacramento residents Benjamin Macias, 37, and Sergio Ambriz, 26, charging them with conspiracy to distribute cocaine, distributing cocaine, and distributing methamphetamine, United States Attorney Benjamin B. Wagner announced. Macias is also charged with possessing a firearm in furtherance of a drug trafficking crime and being a felon in possession of firearm.
According to court documents, in 2014 and 2015, Macias supplied Ambriz with cocaine and Ambriz sold the cocaine to an undercover agent in Sacramento and El Dorado Counties. Ambriz also sold the undercover agent methamphetamine. When Macias was arrested, a Ruger 9mm pistol was found in his vehicle.
This case is the product of an investigation by the Drug Enforcement Administration. Assistant United States Attorney Michael McCoy is prosecuting the case.
If convicted, Macias faces a maximum statutory sentence of 40 years in prison and a $5 million fine. Ambriz faces a maximum statutory sentence of life in prison and an $8 million fine. 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Roswell Man Pleads Guilty to Fleeing from Border Patrol CheckpointRead the Press Release
ALBUQUERQUE – Vincent Edward Romero, 18, of Roswell, N.M., pled guilty today in federal court in Las Cruces, N.M., to a felony information charging him with fleeing from a U.S. Border Patrol Checkpoint at a high rate of speed. The guilty plea was entered without the benefit of a plea agreement.
Romero was arrested on March 3, 2015, during a routine inspection at the U.S. Border Patrol Checkpoint on U.S. Highway 54 in Otero County, N.M. According to the criminal complaint, after Romero entered the checkpoint, Border Patrol agents directed him to a secondary inspection area. Romero disregarded agents’ directions and drove away from the checkpoint, leading agents in a high speed pursuit.
At sentencing, Romero faces a statutory maximum penalty of five years in federal prison. Romero’s sentencing hearing has yet to be scheduled.
This case was investigated by the Alamogordo office of the U.S. Border Patrol and is being prosecuted by Assistant U.S. Attorney Amanda Gould of the U.S. Attorney’s Las Cruces Branch Office.
Ridgefield Doctor Pays $218,633 to Settle Allegations under the False Claims ActRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that EDWARD BERMAN, MD, a physician with a practice in Ridgefield, has entered into a civil settlement with the government in which he will pay $218,633 to resolve allegations that BERMAN violated the False Claims Act.
U.S. Attorney Daly explained that the allegations against BERMAN involve fraudulent billing to Medicare for subsequent skilled nursing facility (“SNF”) services. The government alleges that BERMAN submitted claims to Medicare for SNF services that were not performed in accordance with Medicare requirements. Specifically, the government alleges that BERMAN “upcoded” certain services, submitting claims to Medicare by using a higher-paying billing code when services with lower-paying billing codes were actually provided.
To resolve his liability under the False Claims Act, BERMAN will pay $218,633, in order to reimburse the Medicare programs for conduct occurring during the time period January 1, 2008, through March 4, 2014.
“Health care providers that overcharge Medicare drain critical funds from the Medicare program and increase health care costs,” U.S. Attorney Daly stated. “The U.S. Attorney’s office is committed to vigorously pursuing physicians and other health care providers who submit fraudulent claims to federal health care programs. Providers who submit false claims to the government face serious monetary and administrative sanctions.”
Under the False Claims Act, the government can recover up to three times its actual damages, plus penalties of $5,500 to $11,000 for each false claim.
This case was investigated by the Office of Inspector General for the Department of Health and Human Services. The case was prosecuted by Assistant U.S. Attorney Anne F. Thidemann with the assistance of Auditor Kevin A. Saunders.
In entering into the settlement agreement, BERMAN did not admit liability.
U.S. Attorney Daly encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force (203) 785-9270 or 1-800-HHS-TIPS.
Renewable energy company pays $387,000 to settle allegations of fraud in American Recovery and Reinvestment Act programRead the Press Release
DENVER -- WECSREP Inc., a renewable energy company based in Palm Springs, California, has paid $387,000 to settle allegations that it violated the False Claims Act when it submitted applications to the U.S. Department of Treasury under a program created by the American Recovery and Reinvestment Act of 2009 (ARRA).
The National Renewable Energy Laboratory (NREL) in Golden, Colorado reviewed applications for a program that offered companies up to a 30 percent cash reimbursement for initiating and placing into service “renewable energy properties” such as solar and wind projects. The funds for the reimbursement came from Treasury funds set aside under section 1603 of the ARRA.
To qualify for this program, companies submitted the costs they incurred building renewable energy projects to NREL, which reviewed and approved projects for reimbursement with Treasury funds. In its 35 applications to this program, WECSREP claimed inflated installation costs of up to 414 percent of the original installation costs, while concealing the original installation costs from NREL and Treasury. In many cases, instead of receiving a 30 percent reimbursement for its projects, WECSREP was able to recoup the entire installation cost of the project from Treasury funds based on the inflated costs submitted in its applications. The money paid to WECSREP went far beyond what was authorized by the program, and the United States alleged that WECSREP’s abuse of this government program violated the False Claims Act.
“WECSCREP abused a renewable energy program set up under the American Recovery and Reinvestment Act to help stimulate the economy in the tough days after the 2008 Financial Crisis,” said U.S. Attorney John Walsh. “By paying this penalty under the False Claims Act, WECSREP is finally handing back the taxpayer money it received by inflating costs estimates, inflated estimates that may have deprived others of the opportunity to participate in these programs at a time of economic crisis.”
“This settlement reinforces the commitment of the Treasury Office of the Inspector General to pursue cases against those who attempt to defraud the U.S. Treasury Department and misuse public funds,” said Assistant Inspector General for Investigations John L. Phillips.
The claims settled by this agreement are allegations only. There has been no determination of liability.
This matter was investigated by the U.S. Department of Treasury’s Office of Inspector General. It was handled by Assistant U.S. Attorneys Amanda Rocque and Zeyen Wu.
Quincy Man Sentenced for Obstructing Marathon Bombing InvestigationRead the Press Release
BOSTON – A Quincy man was sentenced in U.S. District Court in Boston today to 30 months in prison and three years of supervised release for obstructing the investigation of the Boston Marathon bombings.
“In this case our investigation succeeded despite Matanov’s lies to law enforcement,” said United States Attorney Carmen M. Ortiz. “He should have helped instead of hindered, and assisted instead of obstructed. The cost of this conduct is 30 months in federal prison.”
“During an ongoing terrorism investigation, Khairullozhon Matanov repeatedly and intentionally lied to the FBI about his knowledge of the Tsarnaev brothers’ activities in the hours and days immediately following the bombings,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “His actions resulted in the diversion of critical manpower at a time when we did not have the resources to spare. The FBI hopes this case sends a strong warning to others that misleading law enforcement will not be tolerated.”
In March 2015, Khairullozhon Matanov, 24, of Quincy, pleaded guilty to one count of falsifying, concealing, and covering up a material fact in a federal investigation and three counts of making materially false statements in a federal investigation.
After the FBI released photos of the suspected bombers, Matanov realized that federal agents would likely want to talk with him because of his ties to them, especially his contact with the Tsarnaev brothers during the week following the bombings. Consequently, Matanov took steps to impede the FBI’s investigation into the extent of his friendship, contact, and communication with the Tsarnaevs, and into any information and views he held related to terrorism and the Tsarnaevs. Matanov deleted information from his computer, some of which contained violent content or calls to violence, and made multiple false statements to federal investigators and others. Those acts delayed and extended the bombing investigation by causing the FBI to expend additional resources in restoring and analyzing Matanov’s computer deletions and investigating his shifting and conflicting stories.
U.S. Attorney Ortiz, FBI SAC Lisi, and Lowell Police Superintendent William Taylor, made the announcement today. This investigation was conducted by members of the FBI’s Joint Terrorism Task Force, which is also composed of officers from other federal, state, and local law enforcement agencies. Assistance in the investigation was also provided by the Boston, Braintree, Waltham, and Quincy Police Departments; the Massachusetts State Police; Customs and Border Protection; Naval Criminal Investigative Service; and the Internal Revenue Service’s Criminal Investigation. The case was prosecuted by Assistant U.S. Attorneys Scott L. Garland and Aloke S. Chakravarty of Ortiz’s Anti-Terrorism and National Security Unit.
Philadelphia Woman Charged with Stealing Dead Mother's BenefitsRead the Press Release
PHILADELPHIA - Delores Turner, 62, of Philadelphia, PA, was charged today by information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the information, the defendant received retirement benefits intended for her mother, after her mother’s death in June 2012 until September 2014. The defendant’s alleged actions resulted in a loss to the government of approximately $30,159.
If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment, a three‑year period of supervised release, restitution to the government of $30,159, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Phelps County Man Sentenced on Federal Methamphetamine ChargesRead the Press Release
St. Louis, MO – WILLIAM C. CRANK II, Rolla, MO, was sentenced to 28 months in prison involving his distribution of methamphetamine in March and April 2014, in Phelps County. He appeared this morning in St. Louis before United States District Judge John Ross.
This case was investigated by the South Central Drug Task Force. Assistant United States Attorney John Mantovani handled the case for the U.S. Attorney's Office.
Peekskill Man Charged in White Plains Federal Court with Distribution of Heroin and Fentanyl Causing the Death of an IndividualRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-In-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and George N. Longworth, the Commissioner of the Westchester County Department of Public Safety, on behalf of the Westchester County Northern Narcotics Initiative, announced the filing of a Superseding Indictment charging LAKUAN RHYNE, 23, of Peekskill, New York, with distributing heroin and fentanyl, the use of which caused the overdose death of an individual. The Superseding Indictment also charges RHYNE and 11 other defendants with conspiring to distribute heroin, crack cocaine, and powder cocaine in and around Westchester County from at least 2014 up to and including January 2015.
All of the 12 defendants were charged in the original Indictment, filed in January 2015, and have previously been taken into custody. The Superseding Indictment adds the charge against RHYNE for distributing narcotics that caused the death of an individual. The case is assigned to U.S. District Judge Nelson S. Román.
U.S. Attorney Bharara stated: “Overdose deaths from heroin and fentanyl have become an epidemic in many communities north of New York City. Another young person from one of those communities died, the tragic victim of heroin and fentanyl allegedly peddled by the defendant Lakuan Rhyne. The charge brought against that defendant in the Superseding Indictment serves as a reminder that the sale of such poison cannot be tolerated, and that behind every overdose death, law enforcement is looking for the drug dealer responsible.”
FBI Assistant Director-in-Charge Rodriguez stated: “Drug distribution puts profits above life. In this case, it is alleged Lakuan Rhyne and his associates distributed or conspired to distribute heroin, crack cocaine, and powder cocaine out of cars, residences, and on the streets of Westchester County, New York. It is also alleged that Ryne’s distribution of heroin laced with fentanyl led to the death of Thomas Coogan. Although we cannot always protect people from themselves, we can hold people accountable for their actions. We will continue to work with our partners to investigate these offenses in order to protect our communities.”
Commissioner Longworth stated: “The Westchester County Department of Public Safety remains committed to working with federal and local law enforcement to combat the distribution and sale of heroin in our county. I am grateful to the FBI Violent Crimes Task Force and the U.S. Attorney’s Office for the valuable partnership they have forged with Westchester’s law enforcement community.”
According to the allegations in the Superseding Indictment and other information in the public record[1]:
The defendants were members of drug trafficking conspiracies operating in the area of Westchester County, New York. LAKUAN RHYNE, a/k/a “Rico,” was a leader of the drug distribution rings. From at least early 2014 through January 2015, RHYNE and his associates conspired to distribute significant quantities of heroin, crack cocaine, and powder cocaine in and around Westchester County. RHYNE and his associates sold their drugs out of cars, residences, and on the streets. At least some of the heroin distributed by RHYNE was laced with fentanyl, a synthetic opioid that is significantly stronger than both ordinary heroin and morphine.
On January 26, 2014, RHYNE sold some of his fentanyl-laced heroin to Thomas Coogan, a 23-year-old resident of Buchanan, New York. Later that day, after using the heroin supplied by RHYNE, Coogan died. The Westchester County Medical Examiner’s report indicates that Coogan died of “acute mixed drug intoxication (heroin, fentanyl, and alprazolam).” If convicted of the offense of distributing narcotics the use of which resulted in Coogan’s death, as charged in Count Four of the Superseding Indictment, RHYNE faces a mandatory minimum sentence of 20 years in prison, and a maximum sentence of life in prison.
The four-count Superseding Indictment also charges RHYNE and varying combinations of his associates with conspiring to distribute and possess with intent to distribute (i) one kilogram or more of heroin, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A) (Count One); (ii) 280 grams or more of crack cocaine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A) (Count Two); and (iii) 500 grams or more of cocaine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B) (Count Three).
Charts containing the names, ages, residences, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
* * *
Mr. Bharara praised the outstanding investigative work of the FBI, the Westchester County Northern Narcotics Initiative, which comprises officers of the Westchester County Department of Public Safety and the police departments of Peekskill, Croton-on-Hudson, Buchanan, Bedford, Yorktown, Mount Kisco, and Ossining, New York, as well as the FBI Violent Crimes Task Force. He also thanked the Westchester County District Attorney’s Office for its participation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney George Turner is in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
15-150 ###
CHARGE
DEFENDANTS
MAXIMUM PENALTIES
Count One
Narcotics conspiracy – Heroin
(Conspiracy to distribute and possess with intent to distribute 1 kilogram or more of heroin, in violation of 21 U.S.C. §§ 846, 841(a)(1) & 841(b)(1)(A))
LAKUAN RHYNE
a/k/a “Rico”
JESSE DABBS
DAIVON PRYOR
JONATHAN THORNTON a/k/a “Staxx”
JOHNSON VANIYAPURAKAL
Life in prison
Mandatory minimum: 10 years in prison
Count Two
Narcotics conspiracy – Crack
(Conspiracy to distribute and possess with intent to distribute 280 grams or more of crack cocaine, in violation of 21 U.S.C. §§ 846, 841(a)(1) & 841(b)(1)(A))
LAKUAN RHYNE
a/k/a “Rico”
JESSE DABBS
MICHAEL DOUSE
MICHAEL GRAY
KEVIN HERBIN
ROBERT MILLER
DWAYNE MOUNTAIN
JONATHAN THORNTON
a/k/a “Staxx”
Life in prison
Mandatory minimum: 10 years in prison
Count Three
Narcotics conspiracy – Cocaine
(Conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine, in violation of 21 U.S.C. §§ 846, 841(a)(1) & 841(b)(1)(B))
LAKUAN RHYNE
a/k/a “Rico”
JESSE DABBS
CURTIS DIMMIE
MICHAEL DOUSE
MICHAEL GRAY
MICHAEL HARRINGTON
ROBERT MILLER
JONATHAN THORNTON
a/k/a “Staxx”
JOHNSON VANIYAPURAKAL
40 yrs. in prison
Mandatory minimum: five years in prison
Count Four
Narcotics distribution resulting in death
(21 U.S.C. §§ 841(a)(1) & 841(b)(1)(C))
LAKUAN RHYNE
a/k/a “Rico”
Life in prison
Mandatory minimum: 20 years in prison
Defendant
Age
Residence
LAKUAN RHYNE
23
Peekskill, NY
JESSE DABBS
24
Peekskill, NY
CURTIS DIMMIE
47
Mohegan Lake, NY
MICHAEL DOUSE
39
Flushing, NY
MICHAEL GRAY
48
Ossining, NY
MICHAEL HARRINGTON
36
Mahopac, NY
KEVIN HERBIN
24
Cortlandt Manor, NY
ROBERT MILLER
36
Cortlandt Manor, NY
DWAYNE MOUNTAIN
28
Putnam Valley, NY
DAIVON PRYOR
20
Poughkeepsie, NY
JONATHAN THORNTON
29
Peekskill, NY
JOHNSON VANIYAPURAKAL
26
Mahopac, NY
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Owners and Staff of Louisville Area Chiropractic Clinics Charged with Health Care Fraud and Identity TheftRead the Press Release
Fraudulently Billed Insurance Companies $5 million for Services Never Performed
LOUISVILLE, Ky. – Acting United States Attorney John E. Kuhn, Jr. today announced the indictment and arrests of owners and staff of Louisville area chiropractic clinics and a medical billing corporation on charges of health care fraud and identity theft. The scheme involved unsuspecting chiropractors, patients, insurance companies, and area employers – namely Jeffboat, LLC located in Jeffersonville, Indiana. Over an eight-month-long period, the defendants are accused of scheming to fraudulently bill insurance companies $5 million for services never performed that cost Jeffboat a loss of approximately $1.3 million.
According to the eight count indictment, beginning no later than November 25, 2013, and continuing through July 18, 2014, five named defendants recruited unsuspecting chiropractors to either open chiropractic clinics or to staff existing chiropractic clinics in the Louisville area. Their intent was to fraudulently bill insurance companies from the clinics.Each chiropractor provided his/her National Provider Identifier (NPI) number to defendants Claudia Lopez and Oskel Lezcano in order to credential the clinics with various insurance companies.Thereafter, the defendants recruited employees from Jeffboat and others to seek chiropractic services from the clinics.However, unbeknownst to the patients and the chiropractors, the clinics billed over $5,000,000 for methocarbamol injections (a muscle relaxant),using the patients’ names, dates of birth, insurance/policy numbers, addresses, and patient IDs/Social Security Numbers without the patients’ knowledge and for injections that were never provided.
The clinics used Lezcano’s billing companies, Gold Hands Medical Billing Corp and Gold Hands Medical Billing B, Inc., to process the fraudulent billings for payment through Jeffboat’s third-party administrator, United Health Care Services, Inc. In addition, multiple clinics billed for the fraudulent injections using the same patients’ names.
Claudia Lopez, Oskel Lezcano, Ariel Borrego-Hernandez, Sergio Betancourt, and Ledinson Chavez operated and controlled multiple chiropractic clinics in the Louisville area including: Xpress Diagnostics Center, Inc.; Prudential Chiropractic Medical Center, PLLC; Klondike Chiropractic Medical Center, LLC; Be Well Chiropractic Center, Corp.; Chiropractic and Medical Center, LLC, even though the clinics were placed in various chiropractors’ names.
All five defendants are charged with one count of health care fraud. Lopez and Lezcano are both charged with additional counts of aggravated identity theft. If convicted at trial, the defendants could be sentenced to no more than ten years in prison, a $250,000 fine and a three year period of supervised release. Defendant Lopez could be sentenced to an additional 4 years in prison and fined an additional $500,000 for a conviction on the identity theft charges.Defendant Lezcano could be sentenced to an additional 10 years in prison and fined an additional $500,000 for a conviction on the identity theft charges.
This case is being prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb and is being investigated by the Federal Bureau of Investigation (FBI), the United States Postal Inspection Service, the Internal Revenue Service Criminal Investigation, the Louisville Metro Police Department and the National Insurance Crime Bureau.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Owner and Two Employees of Medical Equipment Provider Indicted for Health Care Fraud ConspiracyRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Harry Crawford, age 55, Elma Myles, age 51, and Matthew Hightower, age 33, all of Baltimore, Maryland, on charges related to a scheme to defraud Medicaid and other health care benefit programs out of at least $900,000. The indictment was returned on June 3, 2015 and unsealed on June 17, 2015, upon the arrest of the defendants. These charges are part of a nationwide takedown by Medicare Fraud Strike Force operations in 17 cities, including Baltimore.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Chief James W. Johnson of the Baltimore County Police Department.
According to the three-count indictment, Crawford owned and operated RX Resources and Solutions (RXRS), a durable medical equipment provider located in Randallstown, Maryland. RXRS provided hospital beds, wheelchairs, and disposable medical supplies including adult incontinence products, diabetic test strips and wound care items. Crawford was President and CEO of RXRS. Myles worked at the company and was responsible, among other things, for billing health care benefit programs for supplies provided by RXRS. Beginning in 2012, Hightower worked as a delivery driver for RXRS.
The indictment alleges that from 2010 through May 2014, Crawford and Myles conspired to defraud Medicaid and other health benefit programs by billing for supplies that were never provided, or overcharging for materials actually delivered, and by billing for supplies that were unneeded and had not been prescribed by a physician. The indictment alleges that Hightower joined the conspiracy in May 2012.
Specifically, the indictment alleges that the defendants used the personal identity information of clients to submit fraudulent claims to Medicaid and other health care benefits programs for disposable medical supplies that were not delivered to the beneficiary. In addition, the defendants allegedly delivered medical supplies to beneficiaries who did not need the supplies and whose physicians had not prescribed the supplies, even after the beneficiaries reported that they did not want or need the supplies. The indictment alleges that Hightower would sign or have someone else sign delivery tickets when deliveries had not actually taken place so that the records of RXRS would falsely document the delivery. According to the indictment, Hightower provided the forged and fraudulent delivery tickets to RXRS as part of his duties.
The indictment seeks the forfeiture of $900,000, as the proceeds of the offense.
The defendants face a maximum sentence of 10 years in prison for the conspiracy and for health care fraud; and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. An initial appearance was held for all the defendants on June 17, 2015 in U.S. District Court in Baltimore. The defendants were released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 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 their inception in March 2007, Strike Force operations in nine locations have charged over 2,300 defendants who collectively have falsely billed the Medicare program for over $7 billion.
Today’s enforcement actions resulted in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, as well as the three defendants charged in Maryland, for their alleged participation in Medicare and Medicaid fraud schemes involving approximately $712 million in false billings.
United States Attorney Rod J. Rosenstein praised the HHS-OIG and Baltimore County Police Department for their work in the investigation and thanked the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office and the Maryland Medicaid Fraud Control Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Sandra Wilkinson and Aaron Zelinsky, who are prosecuting the case.
Nurse Practitioner Indicted for Identity Theft, Defrauding More Than $330,000 in Health Care ServicesRead the Press Release
Jackson, TN – A nurse practitioner has been indicted for forging the signature of a physician on nearly 150 treatment forms, causing Medicare and TennCare to disburse more than $330,000 in payments for unauthorized services.
According to the indictment, from around April 23, 2010 to about June 17, 2014, John Michael Briley unlawfully utilized the identification of a local physician to authorize home health care services for more than 40 individuals. Briley used the physician’s name to order home health care services for Medicare and TennCare recipients 146 times, without the physician’s consent.
Medicare is a federally funded and administered health care program serving people aged 65 and older and others with disabilities. Furthermore, Medicaid is a federal insurance program that provides services to qualifying indigent persons. In Tennessee, the Medicaid program is funded by the federal government and the State of Tennessee, and is referred to as TennCare.
According to the indictment, before Medicare or TennCare can fund home health care services, "Home Health Certifications and Plans of Treatment" forms must be completed. The forms require the signature of a physician as a condition of payment.
Briley is a nurse practitioner, a position not categorized as a physician under federal regulations. Therefore, he forged the signature of a local physician to access home health care services from Medicare and TennCare.
Briley is employed at a private medical practice, Primary Care Specialists-South.
"As the indictment alleges, Briley schemed to defraud the government of health care funding designated for elderly, disabled, and underprivileged citizens," said U.S.
Attorney Edward Stanton III. "We will remain steadfast in working with our law enforcement partners to bring to justice those who seek to cheat the health care system for illegal gain."
"This indictment is part of a national health care fraud takedown which involves cases across the country," said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services — Office of Inspector General in Atlanta. "The combined effort should assure tax payers that those that steal federal health care dollars will be held accountable for their actions."
Briley has been charged with one count of aggravated identity theft and 146 counts of making false statements in a healthcare-related matter
If convicted, Briley faces a mandatory sentence of two years imprisonment and up to a $250,000 fine for aggravated identity theft. He also faces up to five years imprisonment for each of the 146 counts of making false statements, as well as up to a $250,000 fine.
The case is being investigated by the Department of Health and Human Services — Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Matt Wilson is prosecuting the government’s case.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
# # # #
Norwalk Man Charged with Orchestrating Investment Fraud ScamRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAMES E. NEILSEN, 55, of Norwalk, was arrested today on a criminal complaint charging him with defrauding individual investors out of more than $400,000.
Following his arrest, NEILSEN appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was ordered detained.
According to statements made in court, it is alleged that NEILSEN defrauded three individuals by convincing them to invest their money with him. Instead of investing funds as promised, NEILSEN used the money to pay other investors and to make various personal expenditures.
The complaint charges NEILSEN with wire fraud, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the Federal Bureau of Investigation with valuable assistance from the Greenwich Police Department and the Connecticut Department of Banking.
Citizens with information that may be helpful to this investigation are encouraged to contact the FBI at (203) 333-3512.
The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
North Canton man faces child pornography chargesRead the Press Release
Kenneth J. Smith, 36, of North Canton, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The Indictment charges that from on or about August 18, 2012, through on or about December 3, 2014, Smith knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On December 9, 2014 and December 12, 2014, images of child pornography were also found on his Blackberry cellular phone, Dell computer, and a Western Digital external hard drive .
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this 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.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Department of Homeland Security, Cleveland Office.
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.
Nine Sentenced for Funnel Account Conspiracy Relating to Conspiracy to Traffic MarijuanaRead the Press Release
CORPUS CHRISTI, Texas - Six men and three women have now been ordered to federal prison following the sentencing of two more today in a lengthy case which was the result of the efforts of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed “Operation Prototype,” announced U.S. Attorney Kenneth Magidson.
Those sentenced for crimes relating to this drug trafficking and money laundering conspiracy include Francisco R. Canchola, 39, Antonio Medina-Soto, 24, Efren Amescua, 39, Brenda Amescua, 19, Luz Medina, 36, Carlos Flores, 26, and Maria D. Amescua, 43, all of Mission; Prudencio Villalobos, 45, of Jackson, Ga., and Saul Villanueva-Garcia, 44, of Doraville, Ga.
Today, Canchola received a sentence of 168 months in federal prison, while Villanueva-Garcia was ordered to serve 262 months for their convictions of conspiracy to possess with intent to distribute more than 1000 kilograms of marijuana as well as conspiracy to launder monetary instruments. Both will also serve five years of supervised release.
Medina-Soto was also convicted of those same counts and was previously sentenced to 48 months in prison. The remaining defendants were convicted of conspiracy to launder monetary instruments. Efren Amescua, Medina, Flores, Maria Amescua, and Villalobos were ordered to serve 37, 18, 24, 24, and 36 months, respectively, while Brenda Amescua will serve 12 months and one day.
During the sentencing hearings, evidence was presented regarding the extent of this criminal organization. The was a marijuana and money laundering conspiracy operating between California, Chicago, Ill., Rio Grande Valley as well as Atlanta, Ga. Law enforcement agents identified at least six drug seizures in the United States for which this drug-trafficking organization is responsible. The organization employed the use of sophisticated hidden compartments to transport narcotics into the country. Further, this organization would create multiple fictitious identifications that members used to rent warehouses and residences to store the narcotics until they could be further transported north.
The investigation has revealed at least nine funnel bank accounts that were used by members of the drug trafficking organization to further their activities inside the country. A combined analysis of these accounts has revealed that they were used in a coordinated manner to funnel illicit bulk currency from throughout the country to South Texas. Specifically, between January 2010 and April 2014 more than $1.1 million in cash deposits were made to these bank accounts at locations in Alabama, Florida, North Carolina, Illinois, Indiana, Georgia, Pennsylvania and New York. These interstate U.S. currency deposits were followed by over-the-counter withdrawals and ATM withdrawals at multiple locations in Mission and McAllen.
The investigation leading to the criminal charges was conducted in Corpus Christi lead by the Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Mission Police Department, U.S. Border Patrol, Customs and Border Protection and the U.S. Marshals Service. Assistant U.S. Attorney Julie K. Hampton is prosecuting the case.
New Orleans man sentenced to 18 months in prison for possessing counterfeit credit cards in VintonRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that a New Orleans man was sentenced to 18 months in prison for possessing counterfeit credit cards in order to make illegal purchases.
Izell Mayes, 24, of New Orleans, was sentenced by U.S. District Judge Patricia Minaldi on one count of possession of 15 or more counterfeit or unauthorized access devices. He was also sentenced to three years of supervised release and ordered to pay $1,591 restitution. According to the March 12, 2015 guilty plea, Mayes was riding in a car that was stopped for speeding on February 9, 2014 in Vinton, La. Upon further investigation, the car was searched and 50 counterfeit credit cards in Mayes’ name were found. Forty counterfeit cards under another name were also found in the car. Mayes later confessed to picking up the cards in Houston before traveling to Louisiana. He used the cards in department stores in Houston earlier that day. The last card used was in Baytown, Texas.
The U.S. Secret Service and the ATF investigated the case. Assistant U.S. Attorney Howard C. Parker prosecuted the case.
New Jersey Man Charged with Conspiracy to Provide Material Support to ISILRead the Press Release
A Bergen County, New Jersey, man was charged today with conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, announced Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Paul J. Fishman of the District of New Jersey and Special Agent in Charge Richard M. Frankel of the FBI’s Newark, New Jersey, Division.
Samuel Rahamin Topaz, 21, of Fort Lee, New Jersey, was arrested at his home on June 17, 2015, and is charged by complaint with one count of conspiring with others in New Jersey and New York to provide services and personnel to ISIL. He made his initial appearance this afternoon before U.S. Magistrate Judge Cathy L. Waldor of the District of New Jersey.
“Samuel Topaz is alleged to have conspired with others to travel abroad to provide material support to ISIL,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority. Stemming the flow of foreign fighters abroad and prosecuting those who attempt to provide material support to designated foreign terrorist organizations is key to our national security and public safety.”
“Providing fighters and resources to a terrorist organization like ISIL is a threat to our country and its citizens,” said U.S. Attorney Fishman. “We will continue to use all the tools at our disposal to disrupt the efforts of those who are trying to do harm at home and abroad.”
“Material support of a terrorist organization is a violation of federal law,” said Special Agent in Charge Frankel. “Topaz conspired to provide services and personnel to ISIL. Topaz discussed his desire to travel to Syria to join ISIL. Fortunately, this threat did not materialize due to the indefatigable efforts of the FBI’s Joint Terrorism Task Force. Prevention of terrorism is the FBI’s top priority and I ask the citizens of New Jersey to assist us in this task by remaining vigilant and contacting the FBI or the police if they see or hear anything suspicious.”
According to documents filed in this case and statements made in court:
The FBI and the Joint Terrorism Task Force (JTTF) have been investigating a group of individuals from New York and New Jersey who have allegedly conspired to provide material support to ISIL. Conspirator 1 (CC-1) was a resident of Rutherford, New Jersey, until departing the United States on May 5, 2015, allegedly to join ISIL. Conspirator 2 (CC-2) was a resident of Queens, New York, until he was arrested June 13, 2015, in New York on terrorism charges. Conspirator 3 (CC-3) is a resident of New Jersey.
On May 1, 2015, Topaz discussed CC-1’s plan to travel overseas to join ISIL. CC-1 sent Topaz a message stating that he would be leaving in a few days and asked, “[d]id you do what i [sic] advised you to do.” Topaz responded, “I’m saving my money for it bro trust me I got it.” On May 4, 2015, Topaz stated that he had his passport but needed cash to purchase his ticket. CC-2 replied, “My trip is looking months away[.] if u can take a loan out for 5k or even 2.5k then ur [sic] good, they take US dollars in dawla so u can eat and buy stuff, and they provide u with housing when u reach the land of Islam.” Topaz and CC-2 then discussed that they would be reuniting with CC-1 in Turkey before going to the dawla. CC-2 stated that CC-1 would go first, and then they would join him soon thereafter.
On May 21, 2015, Topaz and CC-3 discussed that they needed to “lay low” and refrain from taking action in furtherance of the conspiracy to provide material support to ISIL that might be detected by law enforcement. Topaz also told CC-3 that they need to discuss “hijra” in person. Topaz later told members of the JTTF that he and his conspirators used the term “hijra” (often spelled “hijrah”) to refer to traveling overseas to join ISIL.
On June 13, 2015, CC-2 was arrested by the FBI and charged in a criminal complaint filed with the U.S. District Court of the Eastern District of New York with conspiring to provide material support to ISIL. On June 15, 2015, Topaz wrote to an unidentified individual that CC-2 had not been answering his phone and added, “We gotta leave ASAP.”
The count of conspiracy to provide material support to a designated foreign terrorist organization carries a maximum potential penalty of 15 years in prison and a fine of $250,000.
This case is being investigated by the FBI and JTTF. This case is being prosecuted by Assistant U.S. Attorneys L. Judson Welle, Dennis C. Carletta, and Francisco J. Navarro of the District of New Jersey, with assistance from the National Security Division’s Counterterrorism Section.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Topaz Complaint
New Hampshire Man Sentence to 141 Months for a String of Armed RobberiesRead the Press Release
BOSTON – A Salem, N.H. man was sentenced today in U.S. District Court in Boston to 141 months after pleading guilty to committing six armed bank robberies in the Merrimack Valley area in 2013.
Rafael Beamud, Jr., 34, was sentenced today by U.S. District Court Judge Denise J. Casper on six counts of armed robbery and one count of possession of a firearm in furtherance of his crimes.
On Feb. 21, 2013, Beamud walked into a TD Bank in Methuen. He approached a teller, brandishing a firearm, and ordered the teller to empty the cash drawers, making sure there was no “dye pack” put into plastic bags that he provided. Beamud threatened to shoot if an alarm was tripped. The teller placed the money from the drawers into one of the plastic bags and Beamud left the bank, leaving one of the plastic bags behind. The bag was processed for fingerprints which led to Beamud’s identification. He was arrested in April 2013 and he confessed to committing a number of armed robberies across three New England states, including Massachusetts. He is facing additional armed robbery charges in New Hampshire.
The charge of armed robbery provides a sentence of no greater than 25 years in prison, five years supervised release, and $250,000 fine on each count. The charge of brandishing a firearm during the commission of a crime of violence provides for a mandatory minimum term of seven years in prison with no greater than a lifetime in prison, five years of supervised release, and a $250,000 fine. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. In this case, the parties signed a plea agreement agreeing to incarceration for 141 months to be followed by 5 years of supervised release.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistance was also provided by the Drug Enforcement Administration; Salem, N.H., North Andover, Dracut, and Methuen Police Departments; and the Massachusetts State Police. The case was prosecuted by Assistant U.S. Attorney Eve A. Piemonte of Ortiz’s Major Crimes Unit.
National Medicare Fraud Takedown Results in Charges Against 243 Individuals for Approximately $712 Million in False BillingRead the Press Release
Attorney General Loretta E. Lynch and Department of Health and Human Services (HHS) Secretary Sylvia Mathews Burwell announced today a nationwide sweep led by the Medicare Fraud Strike Force in 17 districts, resulting in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings. In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act. This coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants charged and loss amount.
Attorney General Lynch and Secretary Burwell were joined in the announcement by FBI Director James B. Comey, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Inspector General Daniel R. Levinson of the HHS Office of Inspector General (HHS-OIG) and Deputy Administrator and Director of CMS Center for Program Integrity Shantanu Agrawal, M.D.
The defendants are charged with various health care fraud-related crimes, including conspiracy to commit health care fraud, violations of the anti-kickback statutes, money laundering and aggravated identity theft. The charges are based on a variety of alleged fraud schemes involving various medical treatments and services, including home health care, psychotherapy, physical and occupational therapy, durable medical equipment (DME) and pharmacy fraud. More than 44 of the defendants arrested are charged with fraud related to the Medicare prescription drug benefit program known as Part D, which is the fastest-growing component of the Medicare program overall.
“This action represents the largest criminal health care fraud takedown in the history of the Department of Justice, and it adds to an already remarkable record of enforcement,” said Attorney General Lynch. “The defendants charged include doctors, patient recruiters, home health care providers, pharmacy owners, and others. They billed for equipment that wasn’t provided, for care that wasn’t needed, and for services that weren’t rendered. In the days ahead, the Department of Justice will continue our focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives. We are prepared – and I am personally determined – to continue working with our federal, state, and local partners to bring about the vital progress that all Americans deserve.”
“This Administration is committed to fighting fraud and protecting taxpayer dollars in Medicare and Medicaid,” said Secretary Burwell. “This takedown adds to the hundreds of millions we have saved through fraud prevention since the Affordable Care Act was passed. With increased resources that have allowed the Strike Force to expand and new tools, like enhanced screening and enrollment requirements, tough new rules and sentences for criminals, and advanced predictive modeling technology, we have managed to better find and fight fraud as well as stop it before it starts.”
According to court documents, the defendants participated in alleged schemes to submit claims to Medicare and Medicaid for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, Medicare beneficiaries and other co-conspirators allegedly were 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 conspiring to submit a total of approximately $712 million in fraudulent billing.
“The people charged in this case targeted the system each of us depends on in our most vulnerable moments,” said Director James Comey. “Health care fraud is a crime that hurts all of us and each dollar taken from programs that help the sick and the suffering is one dollar too many.”
“Every day, the Criminal Division is more strategic in our approach to prosecuting Medicare Fraud,” said Assistant Attorney General Caldwell. “We obtain and analyze billing data in real-time. We target hot spots – areas of the country and the types of health care services where the billing data shows the potential for a high volume of fraud – and we are speeding up our investigations. By doing this, we are increasingly able to stop schemes at the developmental stage, and to prevent them from spreading to other parts of the country.”
“Health care fraud drives up health care costs, wastes taxpayer money, undermines the Medicare and Medicaid programs, and endangers program beneficiaries,” said Inspector General Levinson. “Today’s takedown includes perpetrators of prescription drug fraud, home health care fraud, and personal care services fraud, three particularly harmful types of fraud plaguing our health care system. This record-setting takedown sends a message to would-be perpetrators that health care fraud is a risky way to line your pockets. Our agents and our law enforcement partners stand ready to protect these vital programs and ensure that those who would steal from federal health care programs ultimately pay for their crimes.”
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 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 their inception in March 2007, Strike Force operations in nine locations have charged over 2,300 defendants who collectively have falsely billed the Medicare program for over $7 billion.
Including today’s enforcement actions, nearly 900 individuals have been charged in national takedown operations, which have involved more than $2.5 billion in fraudulent billings. Today’s announcement marks the first time that districts outside of Strike Force locations participated in a national takedown, and they accounted for 82 defendants charged in this takedown.
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In Miami, a total of 73 defendants were charged with offenses relating to their participation in various fraud schemes involving approximately $263 million in false billings for home health care, mental health services and pharmacy fraud. In one case, administrators in a mental health center billed close to $64 million between 2006 and 2012 for purported intensive mental health treatment to beneficiaries and allegedly paid kickbacks to patient recruiters and assisted living facility owners throughout the Southern District of Florida. Medicare paid approximately half of the claimed amount.
In Houston and McAllen, Texas, 22 individuals were charged in cases involving over $38 million in alleged fraud. One of these defendants allegedly coached beneficiaries on what to tell doctors to make them appear eligible for Medicare services and treatments and then received payment for those who qualified. The company that paid the defendant for patients submitted close to $16 million in claims to Medicare, over $4 million of which was paid.
In Dallas, seven people were charged in connection with home health care schemes. In one scheme, six owners and operators of a physician house call company submitted nearly $43 million in billings under the name of a single doctor, regardless of who actually provided the service. The company also significantly exaggerated the length of physician visits, often times billing for 90 minutes or more for an appointment that lasted only 15 or 20 minutes.
In Los Angeles, eight defendants were charged for their roles in schemes to defraud Medicare of approximately $66 million. In one case, a doctor is charged with causing almost $23 million in losses to Medicare through his own fraudulent billing and referrals for DME, including over 1000 expensive power wheelchairs and home health services that were not medically necessary and often not provided.
In Detroit, 16 defendants face charges for their alleged roles in fraud, kickback and money laundering schemes involving approximately $122 million in false claims for services that were medically unnecessary or never rendered, including home health care, physician visits, and psychotherapy, as well as pharmaceuticals that were billed but not dispensed. Among these are three owners of a hospice service who allegedly paid kickbacks for referrals made by two doctors who defrauded Medicare Part D by issuing medically unnecessary prescriptions.
In Tampa, five individuals were charged with participating in a variety of schemes, ranging from fraudulent physical therapy billings to a scheme involving millions in physician services and tests that never occurred. In one case, a licensed pain management physician sought reimbursement for nerve conduction studies and other services that he allegedly never performed. Medicare paid the defendant over $1 million for these purported services.
In Brooklyn, N.Y., nine individuals were charged in two separate criminal schemes involving physical and occupational therapy. In one case, three individuals face charges for their roles in a previously charged $50 million physical therapy scheme. In the second case, six defendants were charged for their roles in a $8 million physical and occupational therapy scheme.
In New Orleans, 11 people were charged in connection with $110 million in home health care and psychotherapy schemes. In one case, four individuals who operated two companies – one in Louisiana and one in California – that mass-marketed talking glucose monitors (TGMs) across the country allegedly sent TGMs to Medicare beneficiaries regardless of whether they were needed or requested. The companies billed Medicare approximately $38 million for the devices and Medicare paid the companies over $22 million.
The cases announced today are being prosecuted and investigated by Medicare Fraud Strike Force teams from the Fraud Section of the Justice Department’s Criminal Division and from the U.S. Attorney’s Offices of 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 and the Middle District of Florida; and agents from the FBI, HHS-OIG and state Medicaid Fraud Control Units.
In addition to the Strike Force, today’s enforcement actions include cases brought by the U.S. Attorney’s Offices of the Southern District of California, Southern District of Illinois, Northern District of Ohio, Western District of Kentucky, District of Maryland, District of Connecticut, District of Alaska and the Southern District of Georgia.
A complaint or indictment is merely a charge, and defendants are presumed innocent until proven guilty.
The court documents for each case will posted online, as they become available, here: http://www.justice.gov/opa/documents-and-resources-june-2015-medicare-fraud-strike-force-press-conference.
The Affordable Care Act has provided new tools and resources to fight fraud in federal health care programs. The law provides an additional $350 million for health care fraud prevention and enforcement efforts, which has allowed the Justice Department to hire more prosecutors and the Strike Force to expand from two cities to nine. It also toughens sentencing for criminal activity, enhances provider and supplier screenings and enrollment requirements, and encourages increased sharing of data across government.
In addition to providing new tools and resources to fight fraud, the Affordable Care Act clarified that for sentencing purposes, the loss is determined by the amount billed to Medicare and increased the sentencing guidelines for the billed amounts, which has provided a strong deterrent effect due to increased prison time, particularly in the most egregious cases.
Morgantown woman convicted of arsonRead the Press Release
CLARKSBURG, WEST VIRGINIA – Sarah Beth Meckley, 33, of Morgantown, West Virginia, was convicted today of arson, United States Attorney William J. Ihlenfeld, II, announced.
In May 2014, Meckley maliciously damaged and destroyed by means of fire and explosive materials the Chateau Royale Apartment Complex in Morgantown.
Meckley pled guilty today to a criminal Information charging her with one count of “Arson of a Building Used in Interstate Commerce.” She faces between five and twenty years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew Cogar prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Fire Marshal investigated.
U.S. District Judge Irene M. Keeley presided.