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27 June 2024
Virginia Company and Owner Sentenced for Criminally Filling WetlandsRead the Press Release
Boyd Farm LLC and its owner Frazier T. Boyd III were sentenced yesterday for criminally filling wetlands in Goochland and Louisa Counties, Virginia. Boyd Farm was sentenced to pay a fine of $300,000 and serve a year of probation for a felony violation of the Clean Water Act. Boyd was sentenced to 30 days home confinement and a year of probation.
At various times between 2017 and 2019, Boyd and his company had workers use excavators and other earthmoving equipment to pull vegetation, grub stumps and grade land at three sites in Virginia’s Piedmont region. The work left behind piles of dirt, slash and stumps. Operators hired by Boyd Farm then placed debris from those piles into wetlands and streams at the properties.
The Clean Water Act requires permits for such discharges into covered wetlands and other waters of the United States. Unpermitted discharges like these can destroy habitat and degrade the pollution cleaning function of wetlands. The United States does issue permits to fill wetlands under some conditions. Boyd Farm and Boyd knew of the requirement for these permits but did not seek or obtain them for any of their properties. In 2015, the Environmental Protection Agency (EPA) had issued Boyd Farm an Administrative Order requiring compliance with the Clean Water Act and requiring restoration of impacted wetlands and streams at another property in Goochland County where unpermitted discharges had occurred.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Jessica D. Aber for the Eastern District of Virginia made the announcement.
EPA’s Criminal Investigation Division investigated the case, with assistance from the Virginia Department of Environmental Quality.
Trial Attorney Elise Kent Bernanke of the Environment and Natural Resources Division and Assistant U.S. Attorney Michael Moore for the Eastern District of Virginia prosecuted the case.
Virginia Businesswoman Sentenced for Employment Tax CrimesRead the Press Release
A Virginia woman was sentenced today to 15 months in prison for not paying employment taxes to the IRS.
According to court documents and statements made in court, Gail Jones, of Dumfries, Virginia, was a co-owner and served as director, president and vice president of parcel delivery service S&G Property Management Inc. (S&G). Between 2013 and 2018, Jones caused income, Social Security and Medicare taxes to be withheld from S&G’s employees. However, Jones did not pay those withholdings to the IRS as she was required to do. To thwart potential IRS levies and other collection activities, Jones opened new bank accounts using other individuals’ social security numbers, new Employer Identification Numbers and variations of her business’ name. Between December 2016 and December 2018, she withdrew over $450,000 in cash from business bank accounts in lieu of paying the taxes owed.
In total, Jones caused a tax loss to the IRS of approximately $950,000.
Additionally, Jones fraudulently applied for two Paycheck Protection Program (PPP) loans, which were part of a COVID-19 relief program intended to provide loans to certain businesses to help them retain their employees or stay afloat during the pandemic. Jones applied for the loans even though S&G was no longer operating. She fraudulently received $20,800 in loans.
In addition to her prison sentence, U.S. District Judge Michael S. Nachmanoff for the Eastern District of Virginia sentenced Jones to three years of supervised release and to pay $950,100.18 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jessica D. Aber for the Eastern District of Virginia made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Marissa Brodney of the Tax Division and Assistant U.S. Attorney Kimberly Shartar for the Eastern District of Virginia prosecuted the case.
U.S. Attorney Breon Peace Announces 11 Arrests in National Health Care Fraud Enforcement ActionRead the Press Release
Today, United States Attorney Breon Peace announced criminal charges against nine defendants in connection with alleged schemes to defraud Medicare and Medicaid.
Merrick B. Garland, United States Attorney General; Breon Peace, United States Attorney for the Eastern District of New York; Nicole M. Argentieri, Principal Deputy Assistant Attorney General and head of the Justice Department’s Criminal Division; James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation; Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); Christi A. Grimm, the Department of Health and Human Services Inspector General (HHS-OIG); Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York, (IRS-CI); and Raymond A. Tierney, Suffolk County District Attorney, announced the arrests and charges.
“It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company, if you profit from the unlawful distribution of controlled substances, you will be held accountable,” stated Attorney General Garland. “The Justice Department will bring to justice criminals who defraud Americans, steal from taxpayer-funded programs, and put people in danger for the sake of profits.”
“These defendants have been charged with treating the Medicare and Medicaid programs like cash registers they could use to ring up withdrawals from the public treasury straight into their pockets,” stated United States Attorney Peace. “The enforcement actions announced today demonstrate my Office’s resolve to prosecute those who exploit our health care benefits programs for personal gain.”
Mr. Peace expressed his appreciation to the U.S. Drug Enforcement Administration, the New York City Police Department and the New York City Human Resources Administration, for their work on the cases.
“Health care fraud affects every American,” stated Principal Deputy Assistant Attorney General Argentieri. “It siphons off hard-earned tax dollars meant to provide care for the vulnerable and disabled. In doing so, it also raises the cost of care for all patients. Even worse, as the prosecutions we announce today underscore, health care fraud can harm patients and fuel addiction. The Criminal Division is committed to rooting out health care fraud, wherever it may be found, no matter who commits it. And we are using more tools than ever before to uncover misconduct and hold wrongdoers to account, whether they are executives in corner offices or doctors who violate their oaths.”
“These nine defendants allegedly submitted bills for services not provided collecting millions in reimbursements from Medicare and Medicaid programs. This is yet another unfortunate example of individuals abusing government services intended to help patients in need. These actions are representative of the FBI’s nationwide efforts to bring justice to criminals who attempt to manipulate healthcare programs for personal benefits,” stated FBI Assistant Director-in-Charge Smith.
“As alleged, the defendants abused their positions and power to exploit vulnerabilities in the Medicare and Medicaid systems to the tune of $7.1 million in illicit funds. Through the American Medical Utilization Management Corporation (AMC), these purported medical providers are accused of flouting vital narcotics regulations and healthcare practices despite the incalculable risks to the public,” said HSI New York Special Agent in Charge Ivan J. Arvelo. “HSI New York, through the New York OCEDTF Strike Force and in coordination with our law enforcement partners, is committed to disrupting the illegal distribution of prescription drugs by utilizing its broad statutory authorities to bring to an end the plague of overprescribed pharmaceuticals.”
“We will not tolerate fraud that preys on patients who need and deserve high quality health care,” stated HHS-OIG Inspector General Grimm. “The hard work of the HHS-OIG team and our outstanding law enforcement partners makes today’s action possible. We must protect taxpayer dollars and keep Americans safe from harms to their health, privacy, and financial well-being.”
“Health care providers are rightly expected to treat their patients with honesty and integrity, often in the most vulnerable times,” stated IRS-CI Special Agent-in-Charge Fattorusso. “The defendants in this case are accused of or have been convicted of betraying this sacred trust strictly for their own greed and financial gain. Today’s actions should serve to restore integrity in the system and put those who engage in these fraudulent acts on notice that law enforcement will not turn a blind eye.”
“My Office remains committed to stand and work with our federal partners in combatting crime and keeping our citizens safe," stated Suffolk County District Attorney Tierney. “Those who seek to illegally profit off the backs of hardworking U.S. taxpayers will be found out and brought to justice. The defrauding of our citizens will not be tolerated.”
U.S. v. Feng JiangOn June 26, 2024, Feng Jiang was charged by indictment with conspiracy to commit health care fraud, conspiracy to defraud the United States and pay health care kickbacks, conspiracy to commit money laundering and money laundering in connection with an alleged $24 million scheme involving multiple New York pharmacies. As alleged in the indictment, Jiang and his co-conspirators paid kickbacks in the form of supermarket gift certificates and cash to Medicare beneficiaries and Medicaid recipients who filled medically unnecessary prescriptions at Elmcare Pharmacy Inc. and NY Elm Pharmacy Inc. The indictment further alleges that Jiang and others wrote checks to various “trading companies” to obtain cash that was distributed as profits amongst the pharmacies’ owners and used to pay illegal kickbacks and bribes.
The case is being prosecuted by Trial Attorney Patrick J. Campbell of the Criminal Division, Fraud Section, Health Care Fraud Unit, Northeast Strike Force, which is based out of the Office’s Business and Securities Fraud Section.
U.S. v. Joseph Tony Brown-Arkah and Evens JeanOn June 26, 2024, Joseph Tony Brown-Arkah and Evens Jean were charged by indictment in connection with an alleged $7.1 million health care fraud scheme and narcotics distribution. Brown-Arkah and Jean were charged with conspiracy to commit health care fraud, health care fraud, conspiracy to distribute narcotics and narcotics distribution, and Jean was also charged with false statements. As alleged in the indictment, Brown-Arkah, the owner of American Medical Utilization Management Corporation (AMC), a medical clinic in Brooklyn, along with Jean, a nurse practitioner, and others, engaged in an alleged scheme to bill Medicare and Medicaid fraudulently for services not provided or not provided as billed, and to prescribe narcotics pursuant to prescriptions that were not issued for a legitimate medical purpose by a provider acting in the usual course of professional practice. In particular, AMC was a purported provider of medicated addiction treatment and had a significant number of patients being treated with buprenorphine (Suboxone), a Schedule III narcotic. Many of these patients received prescriptions written by Jean, who lived in Florida and did not see or speak with the patients; instead, Jean issued the narcotics prescriptions based on information provided by individuals not entitled to prescribe buprenorphine, some of whom were not licensed medical professionals. As alleged in the indictment, Jean also made multiple false statements to law enforcement regarding his prescriptions of buprenorphine.
The case is being prosecuted by Trial Attorneys Miriam Glaser Dauermann of the Department’s National Rapid Response Strike Force and Margaret Mortimer of the Criminal Division, Fraud Section, Health Care Fraud Unit, Northeast Strike Force, which is based out of the Office’s Business and Securities Fraud Section.
For patients who are prescribed a controlled substance medication and have lost access to their healthcare provider, contact either of these virtual treatment providers for evaluation, prescription for medication to help manage opioid withdrawal (buprenorphine, as applicable), and referral to outpatient care:
Virtual Express Care (NYC Health and Hospitals) (631) 397-2273; 24 hour/day, 7 days/week www.expresscare.nyc or MATTERS Medication for Addiction Treatment (765) M-A-T-T-E-R-S [(765) 628-8377] www.mattersnetwork.org
Referrals to harm reduction services and drug treatment programs:
Call the OASAS (Office of Addiction Services and Supports) 24/7 HOPEline 1-877-8-H-O-P-E-N-Y or text HOPENY (467369)
U.S. v. Albert MuratovAlbert Muratov pleaded guilty on June 11, 2024 to health care fraud in connection with a scheme to defraud Medicare by billing for undispensed cancer medication. Muratov, who operated Ave M Pharmacy in Brooklyn, New York, along with Artom Rafaelov and others, handled the pharmacy’s finances and payments and, together with others, caused the submission of approximately 253 claims to Medicare for Targretin Gel 1%. Targretin is a prescription drug used to treat skin conditions caused by Cutaneous T-Cell Lymphoma, a rare skin cancer. The average wholesale price for a 60-gram tube of Targretin Gel 1% was over $34,000. From 2017 to 2021, the defendant and his co-conspirators, including Rafaelov, billed Medicare for Targretin that was medically unnecessary, not ordered by a professional, or that they did not dispense; as a result, Medicare paid Ave M Pharmacy more than $4 million.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant U.S. Attorney John Vagelatos is in charge of the prosecution.
U.S. v. Artom RafaelovArtom Rafaelov pleaded guilty on September 28, 2022 to a criminal information charging him with health care fraud. Rafaelov owned and operated Ave M pharmacy in Brooklyn. Between approximately February 2017 and September 2021, Rafaelov and co-conspirator Albert Muratov defrauded Medicare by causing Ave M to submit fraudulent claims for Targretin Gel 1% (described above) that were neither purchased nor stocked by Ave M; and not medically necessary or not prescribed by the doctors that Ave M claimed had prescribed the medication. In March 2024, Rafaelov was sentenced by United States District Judge William F. Kuntz II to 37 months’ imprisonment and ordered to pay $4.2 million in restitution to Medicare.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant U.S. Attorney John Vagelatos is in charge of the prosecution.
U.S. v. Ahmed et al.
On June 11, 2024, Noman Ahmed, Adnan Arshad, Rehman Diwan, Jessica Hendrickson, Jose Marte, Mohammed Saleem, Faisal Shamsi and Waqas Shamsi were arrested on a eight-count indictment charging them with conspiracy to commit health care fraud, health care fraud, conspiracy to defraud the United States and pay health care kickbacks, paying health care kickbacks, and money laundering. The defendants owned, operated and were employees of several transportation companies. From approximately December 2020 to the present, the defendants paid illegal health care kickbacks to Medicaid beneficiaries so that those beneficiaries would order medical transportation services specifically from the defendants, which generally included transportation to addiction treatment centers for the beneficiaries’ purportedly necessary methadone treatment.
The defendants generally did not provide the medical transportation services ordered by the Medicaid beneficiaries. In total, the defendants and their transportation companies – 668 MTK Taxi LLC, All-Star Taxi LLC, Apollo Transportation, Sunrise Taxi LLC, and Transportation Solution NY Corp. d/b/a A1 Transport – fraudulently billed Medicaid millions of dollars for these services throughout the course of the scheme. At least two claims were submitted to Medicaid for individuals who were deceased, and some claims were submitted for individuals who were hospitalized or incarcerated.
The government’s case is being prosecuted by Assistant U.S. Attorney Adam Toporovsky of the Criminal Section of the Office’s Long Island Division, and Special Assistant U.S. Attorney Jennifer Milito.
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The charges in the indictments are allegations and the defendants are presumed innocent unless and until proven guilty.
The enforcement actions announced today by U.S. Attorney Peace are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 193 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.75 billion in alleged false billings to government programs. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the Department of Justice, in connection with the enforcement action, seized over $231 million in cash, luxury vehicles, gold and other assets.
The Defendants:
FENG JIANG (also known as “Jeff”)
Age: 42
Oakland Gardens, QueensE.D.N.Y. Docket No. 24-CR-264
_______________________________
JOSEPH TONY BROWN-ARKAH
Age: 76
Brooklyn, New YorkEVENS JEAN
Age: 58
Cape Coral, FloridaE.D.N.Y. Docket No. 24-CR-263
______________________________
ALBERT MURATOV
Age: 46
Forest Hills, QueensE.D.N.Y. Docket No. 24-CR-164 (WFK)
______________________________
ARTOM RAFAELOV
Age: 41
Fresh Meadows, Queens
E.D.N.Y. Docket No. 22-CR-368 (WFK)
______________________________
NOMAN AHMED
Age: 37
Port Jefferson Station, New YorkADNAN ARSHAD (also known as “Eddie”)
Age: 45
Mount Sinai, New YorkREHMAN DIWAN
Age: 24
Hicksville, New YorkJESSICA HENDRICKSON
Age: 36
Patchogue, New YorkJOSE MARTE
Age: 33
Bronx, New YorkMOHAMMED SALEEM
Age: 38
Dix Hills, New YorkFAISAL SHAMSI (also known as “Jimmy”)
Age: 49
Massapequa, New YorkWAQAS SHAMSI (also known as “Ricky”)
Age: 44
Massapequa, New YorkE.D.N.Y. Docket No. 24-CR-231 (JMA)
U.S. Attorney Announces Participation in Coordinated National Health Care Fraud Enforcement ActionRead the Press Release
Louisville, KY – Today, U.S. Attorney Michael A. Bennett announced criminal charges against six defendants in connection with schemes to defraud health care benefit programs and misuse of controlled substances in the Western District of Kentucky. The charges filed in federal court are part of the Justice Department’s 2024 National Health Care Fraud Enforcement Action. The charges stem from three unlawful billing schemes, one opioid theft scheme, and a doctor who allowed his staff to issue Schedule II controlled substance prescriptions in his absence.
“It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company, if you profit from the unlawful distribution of controlled substances, you will be held accountable,” said Attorney General Merrick B. Garland. “The Justice Department will bring to justice criminals who defraud Americans, steal from taxpayer-funded programs, and put people in danger for the sake of profits.”
The charges announced today by U.S. Attorney Bennett are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 193 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.75 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the Government, in connection with the enforcement action, seized over $231 million in cash, luxury vehicles, gold, and other assets.
The Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices for the Southern District of Alabama, District of Arizona, Central District of California, Northern District of California, Southern District of California, District of Connecticut, Middle District of Florida, Southern District of Florida, Northern District of Illinois, Eastern District of Kentucky, Western District to Kentucky, Eastern District of Louisiana, Middle District of Louisiana, Western District of Louisiana, Eastern District of Michigan, Western District of Michigan, Southern District of Mississippi, District of Montana, District of New Jersey, Eastern District of New York, Eastern District of North Carolina, Western District of Oklahoma, District of Rhode Island, Eastern District of Tennessee, Middle District of Tennessee, Eastern District of Texas, Northern District of Texas, Southern District of Texas, Eastern District of Virginia, Western District of Virginia, Southern District of West Virginia, and Eastern District of Wisconsin; and State Attorney Generals’ Offices for Arizona, California, Illinois, Indiana, Louisiana, New York, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, and South Dakota are prosecuting the cases in the National Enforcement Action, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.
The Western District of Kentucky, in particular, worked with the following law enforcement organizations to investigate and prosecute the cases filed during the enforcement period: the Department of Health and Human Services Office of Inspector General (HHS-OIG); the Federal Bureau of Investigation (FBI); the Drug Enforcement Administration (DEA); the United States Postal Inspection Service (USPIS); the Internal Revenue Service, Criminal Investigation (IRS-CI); the Defense Criminal Investigative Services; the U.S. Department of Labor (DOL); the U.S. Food and Drug Administration (FDA); the Kentucky State Police (KSP); the Kentucky Cabinet for Health and Family Services Office of Inspector General; the Kentucky Office of the Attorney General, Office of Medicaid Fraud and Abuse Control; and the Louisville Metro Police Department (LMPD).
The following individuals have been charged in the Western District of Kentucky:
Shafi Abbas, 57, of Pendleton, Kentucky, was charged by information with conspiracy to commit health care fraud and money laundering in connection with an alleged scheme to fraudulently obtain over $2.6 million in Medicare funds. According to the information, Abbas, through Aidmen Medical Equipment LLC and Justright Medical Equipment LLC, fraudulently billed Medicare for durable medical equipment, which was medically unnecessary, unwanted by patients, and not prescribed by the patients’ medical providers. Based on those false and fraudulent claims, Medicare paid approximately $1.3 million. In addition, Abbas allegedly transferred offshore the proceeds of health care fraud in a value greater than $10,000. The case is being prosecuted by Assistant U.S. Attorney Joseph Ansari of the U.S. Attorney’s Office for the Western District of Kentucky.
Carissa Uptegraff, 44, of Glasgow, Kentucky, was charged by indictment with theft of medical products. According to the indictment, Uptegraff, a pharmacy employee, stole a pre-retail medical product, oxycodone, which had a value over $5,000. The alleged thefts took place at two different pharmacies prior to the controlled substances being made available for retail purchase by a consumer. The case is being prosecuted by Assistant U.S. Attorney Joseph Ansari of the U.S. Attorney’s Office for the Western District of Kentucky.
Dr. Lawrence Peters, 62, of Louisville, Kentucky, was charged by information with conspiracy to illegally use a Drug Enforcement Administration (“DEA”) registration number issued to another. According to the information, Dr. Lawrence Peters allegedly conspired with others in his medical practice to issue pre-signed and unsigned prescriptions for Schedule II controlled substances and further directed his staff to fill the prescriptions at his physician’s owned pharmacy. The case is being prosecuted by Assistant U.S. Attorneys Joseph Ansari and Chris Tieke of the U.S. Attorney’s Office for the Western District of Kentucky.
Tammy Daniels a/k/a Tammy Richardson, 55, of Louisville, Kentucky, was charged by indictment with wire fraud and health care fraud in connection with an alleged scheme to fraudulently obtain over $750,000 from her employer, a medical practice, and over $422,000 in Medicare funds. According to the indictment, Daniels was employed as the accounts manager for a medical practice when she used the medical practice’s credit cards to purchase personal items, transferred money from the practice’s bank account to pay the credit card invoices, transferred money from the practice’s bank account to pay for other personal credit card purchases, and used her access and position to bill for false and fraudulent medical procedures to pay credit card invoices in order to hide the unlawful use of the credit cards, all without her employer’s knowledge and authorization. As a result of the fraudulent scheme, health care benefit programs, including Medicare, paid over $79,000. The case is being prosecuted by Assistant U.S. Attorney Joseph Ansari of the U.S. Attorney’s Office for the Western District of Kentucky.
Michael Boaz, 45, and Christopher Augustus, 40, of Clinton, Kentucky were charged by indictment with conspiracy to commit health care fraud, health care fraud, and aggravated identity theft in connection with an alleged scheme to fraudulently obtain over $1,000,000 from health care benefit programs. According to the indictment, Boaz and Augustus falsely and fraudulently billed various health care benefit programs for medications dispensed from the Clinton and Bardwell Pharmacies by using material misrepresentations, material omissions, and deception in order to obtain authorization for the medications from physicians and nurse practitioners. In addition, the indictment alleges that Boaz and Augustus knowingly possessed, transferred, or used the means of identification two individuals, a nurse practitioner, and a physician, including the individuals’ names and unique National Provider Identifier numbers, without lawful authority, in relation to the health care fraud. The case is being prosecuted by Assistant U.S. Attorney Raymond McGee of the U.S. Attorney’s Office for the Western District of Kentucky.
A complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Two Indicted in Alleged Murder-for-Hire ConspiracyRead the Press Release
PROVIDENCE, RI – A federal grand jury in Rhode Island has returned a five-count indictment, charging two individuals with allegedly participating in a conspiracy to murder two federal prosecutors and a witness associated with a criminal matter now pending before the U.S. District Court in Massachusetts, announced United States Attorney Zachary A. Cunha.
Elijah Melton, 26, of Taunton and Kareem Pires, 25 of Wareham, currently detained in federal custody in Rhode Island, are named in an indictment that charges both men with conspiracy to tamper with a witness or informant by killing or attempting to kill, and conspiracy to use interstate commerce facilities in commission of murder-for-hire. Additionally, Melton faces three counts of solicitation to commit a crime of violence.
The defendants will be arraigned in U.S. District Court in Rhode Island on a later date to be determined by the court. A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
This matter was first charged by way of a federal criminal complaint filed in the District of Massachusetts by the U.S. Attorney’s Office in Boston. A press release issued at that time can be found here . At the direction of the Department of Justice in Washington, the District of Massachusetts is now recused from this matter.
The matter was investigated by the FBI and U.S. Marshals Service for the District of Massachusetts, with the assistance of the Donald W. Wyatt Detention Facility in Rhode Island. The matter is being prosecuted in the District of Rhode Island by Assistant U.S. Attorneys Stacey A. Erickson and Peter I. Roklan.
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melton_and_pires_indictment.pdfTwo Arizona men sentenced for methamphetamine and fentanyl trafficking in the Northern District of MississippiRead the Press Release
OXFORD, Miss. – Two Arizona men have been sentenced for trafficking drugs from California into the Northern District of Mississippi.
According to court records, Enrique Rivera, 45, previously pled guilty to conspiracy to possess with intent to distribute approximately 110 pounds of methamphetamine. Omar Villacorta was convicted at trial of conspiracy to possess with intent to distribute approximately 110 pounds of methamphetamine and aiding and abetting in the possession with intent to distribute approximately three kilograms of fentanyl.
Rivera was previously sentenced to 200 months incarceration with a five-year term of supervised release. At a sentencing hearing on Wednesday, Chief U.S. District Court Judge Debra M. Brown sentenced Villacorta to 235 months incarceration with five years of supervised release.
“This prosecution resulted from one of the largest drug seizures in the Northern District of Mississippi in recent history,” remarked U.S. Attorney Clay Joyner. “It was the result of a significant undercover operation involving state and federal law enforcement officers. Due to their diligence and professionalism, we were able to keep this methamphetamine and fentanyl off the streets of Mississippi.”
“This case demonstrates our unwavering commitment to dismantling drug trafficking organizations and holding those responsible accountable, regardless of where they come from. The significant sentences handed down send a clear message that trafficking dangerous narcotics like methamphetamine and fentanyl into Mississippi will not be tolerated,” said Drug Enforcement Administration Assistant Special Agent in Charge Anessa Daniels-McCaw.
The Panola County Sheriff’s Office, Batesville Police Department, Desoto County Sheriff’s Office, Mississippi Bureau of Investigations and Drug Enforcement Administration investigated the case.
The case was prosecuted by Assistant U.S. Attorneys Scott Leary and Chad Doleac.
Texas Man on Federal Supervised Release Charged with Transporting 30 Kilograms of Cocaine Through Columbia County, FloridaRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Hector Villarreal (36, Pasadena, TX) with possession with the intent to distribute 5 kilograms or more of cocaine. If convicted, Villarreal faces a minimum mandatory sentence of 10 years, up to life, in federal prison. The indictment also notifies Villarreal that the United States intends to forfeit any assets involved in the offense.
According to the indictment and public documents, on May 28, 2024, deputies from the Columbia County Sheriff’s Office, working collaboratively with deputies from the Lowndes County (Georgia) Sheriff’s Office, were performing drug interdiction work. As Villarreal was driving a rental SUV eastbound on I-10 in Lake City, Florida, the deputies witnessed Villarreal’s vehicle fail to maintain its lane. The deputies followed Villarreal’s vehicle as it turned onto the I-75 interchange to proceed south. When deputies made a traffic stop, Villarreal told them that he was on federal supervised release for narcotics trafficking out of Texas. Ultimately, a search of the vehicle led to the discovery of sealed cardboard boxes. When a Lowndes County drug canine alerted on the vehicle, deputies found 30 kilograms of cocaine inside the boxes.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration, the Columbia County Sheriff’s Office, and the Lowndes County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney A. Tysen Duva.
Tenderloin Neighborhood Drug Distributor Sentenced to 32 Months in PrisonRead the Press Release
SAN FRANCISCO – Yohan Murillo-Medina was sentenced today to serve 32 months in prison for possessing fentanyl and methamphetamine with the intent to distribute the drugs in the Tenderloin District of San Francisco, announced U.S. Attorney Ismail Ramsey and Drug Enforcement Administration (DEA) Special Agent in Charge Brian Clark. United States District Judge Jacqueline Scott Corley handed down the sentence.
Murillo-Medina, 22, of San Francisco, pleaded guilty to the charges on February 21, 2024. According to his plea agreement, Murillo-Medina admitted that in the early morning of January 30, 2023, he was near the corner of Golden Gate Avenue and Hyde Street where he was carrying a backpack and possessed a jacket. He ran when he noticed law enforcement officers approaching the area where he was located, and he discarded his backpack and jacket as he ran. Murillo-Medina acknowledged that he did this because he thought the officers were going to arrest him for possessing and trying to distribute the controlled substances in the backpack and jacket. After several blocks, Murillo-Medina stopped running and was detained. Law enforcement recovered the backpack and jacket which contained controlled substances including approximately 1,749.9 grams of a substance containing fentanyl; 20.7 grams of a substance containing methamphetamine; 26.7 grams of alprazolam pills; and 132.1 grams of marijuana.
On April 11, 2023, a federal grand jury indicted Murillo-Medina, charging him with one count of possession with intent to distribute fentanyl and one count of possession with intent to distribute methamphetamine, both in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C). Murillo-Medina pleaded guilty to both counts.
In addition to the 32-month prison sentence, Judge Corley ordered Murillo-Medina to serve three years of supervised release. Murillo-Medina has been detained since being taken into federal custody and will begin to serve his prison term immediately.
Assistant U.S. Attorney Jared Buszin is prosecuting the case with assistance from Laurence Macaraeg. The prosecution is the result of an investigation by the DEA and the San Francisco Police Department.
Swift Bear Man Sentenced for AssaultRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Swift Bear, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury. The sentencing took place on June 24, 2024.
William Moran, age 35, was sentenced to two years and two months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Moran was indicted by a federal grand jury in December of 2023. He pleaded guilty on March 21, 2024.
On November 18, 2023, Moran was consuming alcohol and socializing with a group of individuals in the Swift Bear Community, near White River, South Dakota. While there, he assaulted a woman, punching her and knocking her to the ground. Thereafter, he repeatedly punched and kicked her in the head and face. Other people tried to intervene, but he resisted efforts to stop him from assaulting the woman. He knocked another person to the ground. The woman was treated at a hospital in Rapid City, South Dakota, because she suffered hemorrhaging in her cranium, and had respiratory failure due to a collapsed lung. The area where the assault occurred is within the Rosebud Indian Reservation.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Moran was immediately remanded to the custody of the U.S. Marshals Service to serve his sentence.
Suspected Car Thief Facing Federal Charges for Involvement in Robbery at Edwardsville Best BuyRead the Press Release
EAST ST. LOUIS, Ill. – A Missouri woman is facing federal charges for her involvement in a robbery at the Best Buy in Edwardsville.
A federal grand jury charged Jakiaya T. McCoy, 21, of Florissant, Missouri, with two counts of transportation of a stolen vehicle, one count of interference with commerce by robbery and one count of unlawful possession of a machinegun.
“To help protect store employees and instill a better sense of safety for businesses, the U.S. Attorney’s Office is committed to reducing violent crime throughout the Metro East and southern Illinois by holding offenders accountable for their criminal acts,” said U.S. Attorney Rachelle Aud Crowe.
According to court documents, McCoy’s allegations stem from her involvement in a robbery of Best Buy in Edwardsville on Dec. 14, 2023. She is accused of unlawfully taking Apple iPads, a hoverboard and other property by force.
As alleged in the indictment, McCoy is also accused of possessing a Glock pistol with a machinegun conversion device, commonly known as a switch.
"No person or business should feel threatened by individuals who create chaos, spread fear, and have no regard for people or property," said Acting Special Agent in Charge Jermaine Deans. "The FBI Metro East Safe Streets Task Force is committed to ensuring the safety of the people who live in our communities and the businesses that operate there."
In addition, McCoy is accused of knowingly transporting two stolen vehicles in Madison County in November 2023, namely a 2013 Kia Optima and a 2018 Chrysler 300.
An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, a charge for interference with commerce by robbery is punishable by up to 20 years’ imprisonment, transportation of a stolen vehicle can face a term of up to 10 years’ imprisonment and possession of a machinegun may result in up to 10 years’ imprisonment.
McCoy is scheduled for arraignment at the federal courthouse in East St. Louis at 1 p.m. on Monday, July 8.
The FBI Springfield Field Office, the Glen Carbon Police Department, the Sunset Hills, Missouri, Police Department and the Wood River Police Department contributed to the investigation. Assistant U.S. Attorney Laura Reppert is prosecuting the case.
Superseding Indictment Charges Physician with Distributing A Controlled Substance and Related OffensesRead the Press Release
CHARLOTTE, N.C., Today, U.S. Attorney Dena J. King announced that a federal superseding indictment was filed in the Western District of North Carolina, charging Henry Ronald Emery, Jr., MD, 52, of Waxhaw, N.C., for the alleged unlawful distribution of a controlled substance.
A federal criminal indictment filed in September 2023, charged Dr. Emery, with one count of conspiracy to distribute controlled substances outside the bounds of professional medical practice, and 11 counts of distribution of controlled substances outside the bounds of professional medical practice. In addition to these offenses, the superseding indictment filed on July 11, 2024, charged Dr. Emery with one count of conspiracy to unlawfully use a registration number.
“It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company, if you profit from the unlawful distribution of controlled substances, you will be held accountable,” said Attorney General Merrick B. Garland. “The Justice Department will bring to justice criminals who defraud Americans, steal from taxpayer-funded programs, and put people in danger for the sake of profits.”
“The illicit prescription and distribution of opioids pose a serious threat to public health and safety,” said U.S. Attorney King. “Part of our efforts to fight the opioid epidemic and protect our communities, is identifying those who distribute these substances to our friends, neighbors, and loved ones. Whether it involves physicians improperly prescribing controlled substances or street dealers selling drugs in our neighborhoods, we are committed to holding accountable those who profit by exploiting others’ struggles with substance abuse.”
According to the charges, from no later than September 2018 through in or about 2022, Dr. Emery, then a physician licensed to practice medicine in North Carolina, allegedly conspired with other persons to intentionally and unlawfully prescribe, dispense, and distribute, and did unlawfully prescribe, dispense, and distribute, a mixture and substance containing a detectable amount of buprenorphine, a Schedule III controlled substance. It is also alleged that Dr. Emery engaged in the illegal distribution of buprenorphine on multiple occasions and while acting and intending to act outside the usual course of professional practice and not for a legitimate medical purpose. It is further alleged that Dr. Emery knowingly and intentionally conspired and agreed with others to use a registration number issued to another person in connection with the distribution or dispensing of a controlled substance.
The Justice Department announced today criminal charges against 193 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.75 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the Government, in connection with the enforcement action, seized over $231 million in cash, luxury vehicles, gold, and other assets.
The charges against Dr. Emery are allegations. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney King thanked the DEA and IRS-CI for their investigation of the case.
Assistant U.S. Attorneys Nick J. Miller and William Bozin of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Suburban Chicago Man Sentenced to 16 Years in Prison for Selling Fentanyl-Laced HeroinRead the Press Release
CHICAGO — A suburban Chicago man has been sentenced to 16 years in federal prison for selling fentanyl-laced heroin.
CALVIN CARTER sold the drugs on two occasions in the fall of 2019. The first sale occurred in a gas station parking lot in Olympia Fields, Ill., and the second occurred in a liquor store parking lot in Country Club Hills, Ill. Unbeknownst to Carter, the buyer in both transactions was surreptitiously cooperating with law enforcement.
Carter, 44, of Country Club Hills, Ill., pleaded guilty earlier this year to federal drug distribution charges. In imposing the 16-year prison sentence on June 20, 2024, U.S. District Judge Manish S. Shah found that the government proved Carter possessed a firearm in connection with the drug offenses. Multiple firearms were discovered during a court-authorized search of Carter’s residence shortly after the drug sales.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration. Substantial assistance was provided by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, FBI, Illinois State Police, and Chicago Police Department.
“Defendant possessed almost one kilogram of heroin and fentanyl that he intended to distribute to others,” Special Assistant U.S. Attorney Niranjan Emani argued in the government’s sentencing memorandum. “The type of drugs that defendant sold and intended for distribution have devastating effects on the community.”
The government was represented by Mr. Emani and Assistant U.S. Attorneys Tiffany Ardam and Kristen Totten.
St. Louis County Man Sentenced to 87 Months in Prison, Ordered to Pay More Than $1 Million for Elder Fraud and Disability FraudRead the Press Release
ST. LOUIS – U.S. District Judge Stephen R. Clark on Thursday sentenced a St. Louis County, Missouri man who financially exploited two elderly women while committing disability fraud to 87 months in prison and ordered him to repay more than $1.1 million.
Gino Rives, 36, of Edmundson, also agreed to return a house he obtained from one of the victims and will be ordered to return a total of six vehicles that he obtained from his two elderly victims. Judge Clark fined him $100,000.
Rives pleaded guilty in U.S. District Court in St. Louis in January to five counts of theft of government funds in the disability fraud case. He pleaded guilty in October in the elder fraud case to one count of access device fraud and one count of fraudulently effecting transactions.
Rives admitted fraudulently receiving payments from the Social Security Administration’s (SSA) Supplemental Security Income Program. Rives applied in 2010, claiming to have a mental health disorder. He repeatedly pretended to be incapable of answering basic questions during interviews and evaluations. He falsely claimed to have memory problems and difficulty concentrating, following instructions and completing tasks. He claimed he had never been employed, could not drive, was unable to handle his financial affairs and had no assets.
Rives concealed his employment in the construction and tree trimming industries, his participation in competitive mixed martial arts, his ownership of houses and vehicles, and his receipt of more than $721,692 since 2021. He now must pay the SSA $120,260.
Rives has also admitted financially exploiting two elderly women. He obtained four vehicles and checks totaling more than $855,000 from one woman for construction work on her house, most of which was never done. He also used her debit card for personal purchases for himself and his family. He executed a quit claim deed and transferred a house belonging to the other victim into his name. He moved her from her home and into a nursing home and permitted his mother to move into the home.
A nursing home administrator testified during the sentencing hearing that the victim was left at the facility with two sets of pajamas, two dresses, a pair of slippers, and a couple of sets of underwear. The victim received additional clothing purchased by the administrator and through donations obtained at the nursing home. The victim was left without “a single memento from her childhood or the international trips she made with her late husband,” a sentencing memo filed by Assistant U.S. Attorney Tracy Berry says. The memo says Rives was convicted in 2009 of another case involving the financial exploitation of the elderly and accused in a similar case in 2014.
Judge Clark ordered Rives to pay restitution of $1,042,848 in the elder fraud case.
Zella Rives, 57, admitted helping her son with the disability fraud. Austin James, a Jefferson County contractor, has also pleaded guilty and admitted aiding Rives with defrauding one of the victims. They have not yet been sentenced.
The Social Security Administration Office of Inspector General and the U.S. Secret Service investigated the case. Assistant U.S. Attorney Tracy Berry is prosecuting the case.
Anyone with information about disability fraud is asked to contact the SSA Office of Inspector General fraud hotline at 1-800-269-0271 or submit a report online at oig.ssa.gov/report. Concerns about suspected abuse or neglect of the elderly or disabled should be directed to Missouri’s Adult Abuse and Neglect Hotline at 800-392-0210 or online at health.mo.gov/safety/abuse/.
South Carolina Man Sentenced to Federal Prison for Stealing Deceased Wife’s Social Security BenefitsRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Albert Bayer (64, South Carolina, formerly of Hillsborough County, Florida) to one year and one day in federal prison for theft of government funds. As part of his sentence, the court also entered an order of forfeiture in the amount of $76,547, the proceeds of the offense. Bayer entered a guilty plea in March 2024.
According to court documents, Bayer’s wife, L.D., was receiving Social Security Disability Insurance Benefits. L.D. passed away on March 31, 2015, but her death was never reported to the Social Security Administration (SSA). Consequently, the SSA continued to make the benefit payments. From April 2015 through June 2023, Bayer accessed the funds meant for L.D. and used them to pay his own personal expenses. In total, Bayer knowingly and willfully stole approximately $76,547 in benefits to which he was not entitled.
This case was investigated by the Social Security Administration, Office of the Inspector General. It was prosecuted by Special Assistant United States Attorney Suzanne Huyler.
South Bend Man Sentenced for Theft of Government FundsRead the Press Release
SOUTH BEND – Yesterday, Jake Gregory Aarreberg, 50 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Cristal C. Brisco after pleading guilty to theft of government funds, announced United States Attorney Clifford D. Johnson.
Aarreberg was sentenced to 2 years of probation with 8 months home detention and was ordered to pay $226,389.56 in restitution to the victims of the offense.
According to documents in the case, from 2005 through 2023, Aarreberg falsely claimed to be a disabled military veteran and presented fraudulent military service records in order to obtain government benefits. As a result of his fraud, Aarreberg obtained VA medical benefits totaling over $96,000.00, and Social Security disability benefits totaling over $129,000.00.
This case was investigated by the Department of Veterans Affairs, Office of Inspector General and the Social Security Administration, Office of Inspector General. The case was prosecuted by Assistant United States Attorney Luke N. Reilander.
Six-Time Convicted Felon Who Shot Two People Outside San Bernardino Bar Sentenced to More Than 10 Years in PrisonRead the Press Release
LOS ANGELES – A San Bernardino County man and six-time convicted felon who shot two people outside a San Bernardino sports bar was sentenced today to 125 months in federal prison for illegally possessing ammunition.
Rafeal Yanni, 31, a.k.a. “Green Eyes,” of Colton, was sentenced by United States District Judge Fernando M. Olguin.
Yanni pleaded guilty on April 11 to one count of being a felon in possession of ammunition.
“This defendant’s criminal conduct resulted in two wounded and traumatized victims, but he has now earned a lengthy stay in federal prison,” said United States Attorney Martin Estrada. “Violent gun crime is a menace to our community and my office will continue to vigorously prosecute these kinds of cases. Those who commit gun crimes should be aware that the federal government will not hesitate to take action.”
According to court documents, in September 2023, Yanni was seen at a San Bernardino sports bar. As Yanni was leaving the bar, he was captured in surveillance cameras racking the slide of a firearm. When Yanni left the restaurant, he got into a fight in the parking lot with Victim 1. Yanni pulled out the firearm, which lacked a serial number (commonly called a “ghost gun”) and fired three shots at short range at Victim 1, who collapsed. After hearing gunshots and observing Victim 1 on the ground, Victim 2 ran to help Victim 1. Yanni then shot Victim 2 two times at short range as well.
Yanni fled the scene and was arrested two days later. Law enforcement found a loaded ghost gun inside a vehicle that he had just been in. Ballistics tests linked the seized firearm to the shootings.
Yanni is not permitted to possess ammunition because of six felony convictions on his record, including two convictions in Sacramento County Superior Court in 2021 for assault, one conviction for possession of a firearm by a felon in 2019 in San Bernardino County Superior Court, and unlawful taking of a vehicle in 2013 in San Bernardino County Superior Court.
Operation Safe Cities establishes strategic enforcement priorities with an emphasis on prosecuting the most significant drivers of violent crime. Across this region, the most damaging and horrific crimes are committed by a relatively small number of particularly violent individuals. This strategic enforcement approach is expected to increase the number of arrests, prosecutions and convictions of recidivists engaged in the most dangerous conduct. It is designed to improve public safety across the region by targeting crimes involving illicit guns, prohibited persons possessing firearms, or robbery crews that cause havoc and extensive losses to retail establishments.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Colton Police Department, and the San Bernardino Police Department investigated this matter.
Assistant United States Attorney Kelsey A. Stimson of the General Crimes Section prosecuted this case.
Sisseton Man Sentenced for Voluntary Manslaughter in Connection with a 30-Year-Old CrimeRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a Sisseton, South Dakota, man convicted of Voluntary Manslaughter. The sentencing took place on June 24, 2024.
Jay Adams, age 58, was sentenced to 10 years in federal prison, followed by three years of supervised release and ordered to pay a $50 special assessment to the Federal Crime Victims Fund.
Adams was indicted by a federal grand jury in April of 2023. He pleaded guilty in November of 2023.
In the early morning hours of September 4, 1992, in the Lake Traverse Indian Reservation, Adams killed a young person, in the heat of passion, by slamming the victim’s head on a hard concrete floor. Afterward, he placed her back on the bed and returned to his bedroom. Adams did not seek medical attention for the victim and later the same day discovered she had died. Adams feigned ignorance as to the cause of the victim’s injury. An initial investigation failed to identify Adams as the assailant and the case remained unsolved for over 30 years.
In early 2023, a witness to the crime came forward and identified Adams as being responsible for the death of the victim in 1992. Law enforcement officers from the Sisseton-Wahpeton Tribal Police Department and the FBI continued the investigation. Prior to indictment in April of 2023, investigators conducted interviews of other individuals associated with Adams and consulted with a pathologist to review the 1992 autopsy performed on the victim. The medical evidence corroborated Adams eventual statement related to his guilty plea that he injured the child, which caused blunt force trauma and caused the child’s death.
“Tragically this matter took thirty years to resolve,” said U.S. Attorney Alison J. Ramsdell. “But the resolution nonetheless demonstrates law enforcement’s relentless commitment to cracking these cases so that perpetrators can be held to account. It is our hope the Defendant’s sentence offers some measure of closure to the victim’s family.”
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case is part of the Department of Justice’s newly created Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which aims to aid in the prevention and response to missing or murdered Indigenous people through the resolution of MMIP cases and communication, coordination, and collaboration with federal, Tribal, state, and local partners. The Department views this work as a priority for its law enforcement components. Through the MMIP Regional Outreach Program, a broad spectrum of stakeholders work together to identify MMIP cases and issues in Tribal communities and develop comprehensive solutions to address them. This prosecution upholds the Department’s mission to the unwavering pursuit of justice on behalf of victims and their families despite the passage of time.
The investigation was conducted by the Sisseton-Wahpeton Tribal Police Department and the FBI. The case was prosecuted by MMIP Assistant U.S. Attorney for the Great Plains Region Troy R. Morley.
Adams was immediately remanded to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced to Federal Prison for Failure to Register as a Sex OffenderRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Lawrence L. Piersol has sentenced a Sioux Falls, South Dakota, man, convicted of Failure to Register as a Sex Offender. The sentencing took place on June 24, 2024, in Sioux Falls, South Dakota.
Stanley Richard Wright, age 48, was sentenced to two years and two months federal prison, followed by five years of supervised release. He was ordered to pay $100 as a statutorily required special assessment to the Federal Crime Victims Fund.
Wright was indicted for Failure to Register as a Sex Offender by a federal grand jury in February of 2024. He pleaded guilty on March 27, 2024.
Wright was convicted on a federal charge of Sexual Abuse in 2004. He is classified as a Tier III sex offender and is required to register as a sex offender for life. Prior to the charged incident, he last registered with the Sioux Falls Police Department on September 29, 2023, listing an address in Sioux Falls. Shortly thereafter, he left his registered address and no longer resided there. His whereabouts remained unknown until he was arrested on a warrant on November 28, 2023. This violated the requirement that he update his registration to include any change of residence within three business days.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Beau Blouin prosecuted the case.
Wright was remanded to the custody of the U.S. Marshals Service to continue serving his sentence.
Serial bank robber sentenced to federal prisonRead the Press Release
SAVANNAH, GA: A Georgia man with multiple bank robbery convictions has been sentenced to federal prison for the second time.
David Wayne Stanley, 59, of Cochran, Ga., was sentenced to 160 months in prison after pleading guilty to Bank Robbery, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge R. Stan Baker ordered Stanley to pay $6,677 in restitution and to serve three years of supervised release upon completion of is prison term. Stanley also must serve 12 additional months in prison, consecutive to his new sentence, after Chief Judge Baker revoked Stanley’s supervised release for committing the robbery while under sentence for a prior bank robbery conviction.
“It should be abundantly clear that repeated stints in prison have yet to prevent David Wayne Stanley from committing additional violent crimes,” said U.S. Attorney Steinberg. “This significant sentence will protect the community while he’s behind bars, and hold him accountable for his most recent crime.”
As described in court documents and testimony, in October 2023, Stanley robbed two tellers at the Wells Fargo Bank on Ogeechee Road in Savannah by telling them he had a gun and demanding cash from their registers. Investigators from the Chatham County Police Department and the FBI, with assistance from U.S. Probation Services, identified Stanley’s vehicle as the getaway car, and later arrested him at his residence.
Stanley’s prior felony convictions include a 2016 federal conviction for a Savannah bank robbery for which he served time in prison, and he was on supervised release at the time of the 2023 robbery. Additionally, Stanley previously served a state prison sentence in Texas for the robbery of seven banks in 2009, and he faces multiple charges for bank robberies in Texas that occurred in the days before the October 2023 Savannah robbery.
“Stanley’s prior prison time was apparently not enough of a teaching moment for him because he returned to his bank robbing ways while he was still on parole for the last bank robbery he committed,” said Will Clarke, Senior Supervisory Special Agent of FBI Atlanta’s Savannah office. “Thanks to the assistance of our partners with the Chatham County Police Department, he’ll have a long stint in federal prison to think about what he’ll do the next time he is released.”
“This is an example of the excellent work our Criminal Investigations Division does every day,” said Chatham County Police Department Acting Chief Julie Tolbert. “Our detectives quickly identified the suspect, and had him in custody within days of him committing this crime. We’re proud of the tireless efforts of all of the law enforcement officers who took an active part in making sure this case was solved quickly.”
The case was investigated by the FBI and the Chatham County Police Department, and prosecuted for the United States of America by Assistant U.S. Attorney Bradley R. Thompson and Special Assistant U.S. Attorney Makeia R. Jonese.
Schenectady Woman Pleads Guilty to Possession of Fentanyl and Cocaine with the Intent to DistributeRead the Press Release
ALBANY, NEW YORK – Tiffany Lynn Robillard, age 28, of Schenectady, New York, pled guilty today to possession of fentanyl and cocaine with intent to distribute. United States Attorney Carla B. Freedman and Frank A. Tarentino, III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
As part of her plea, Robillard admitted that, on March 25, 2024, she possessed over 3 kilograms of fentanyl and several hundred grams of cocaine, which she intended to distribute, and two firearms.
Robillard faces a minimum term of 10 years and up to life in prison, a fine of up to $10 million, and a term of post-imprisonment supervised release of at least 5 years and up to life. She will be sentenced on October 25, 2024, by United States District Judge Anne M. Nardacci.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The DEA is investigating the case with assistance from the Colonie Police Department, Schenectady Police Department, and New York State Police. Assistant U.S. Attorney Mikayla Espinosa is prosecuting the case.
Sanbornton Man Pleads Guilty to Possession of Child Sexual Abuse MaterialRead the Press Release
CONCORD – A Sanbornton man pleaded guilty today in federal court in Concord to possession of child sexual abuse material (CSAM), U.S. Attorney Jane E. Young announces.
Timothy Ryan, 35, pleaded guilty to a superseding information charging him with an additional count of possession of CSAM, for a total of two counts of possession of CSAM. On December 12, 2022, Ryan was originally charged by complaint with one count of possession of CSAM. U.S. District Court Judge Steven McAuliffe scheduled sentencing for October 8, 2024.
The defendant was identified as a top offender in the state of New Hampshire for supplying CSAM through the peer-to-peer network BitTorrent. Investigators traced the illicit internet activity to his residence. On December 13, 2022, a federal search warrant was executed on search his electronic devices. Forensic examination of the defendant’s cell phone revealed the presence of approximately 2,600 files of apparent CSAM.
In November 2023, while Ryan was on bond for his original federal CSAM charge, investigators with the Department of Veteran’s Affairs received information that an IP address associated with one of its residential facilities in Massachusetts was being used regularly to distribute known CSAM on the BitTorrent network. Further investigation revealed that Ryan had moved into that facility around the same time that the illicit activity was first observed. In December 2023, federal authorities executed a second search warrant for Ryan’s private room at the facility, resulting in the seizure of more electronic devices containing hundreds of images of CSAM.
The charging statute provides a sentence of no greater than 20 years in prison, a minimum 5 years of supervised release, a fine of $250,000 and mandatory restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Homeland Security Investigations and the United States Department of Veterans Affairs Office of the Inspector General led the investigation. Valuable assistance was provided by the United States Secret Service, the New Hampshire Internet Crimes Against Children Task Force, the Nashua Police Department, the Grafton County Sheriff’s Department, and the Sanbornton Police Department and the U.S. Veterans Affairs Police Service. Assistant U.S. Attorney Kasey Weiland is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
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San Antonio Man Sentenced to 11 Years in Prison After Mailing Fentanyl-Laced Pills, Causing Death of El PasoanRead the Press Release
EL PASO, Texas – A San Antonio man was sentenced in a federal court in El Paso to 132 months in prison for distributing fentanyl-laced pills through the mail, leading to the death of an El Paso woman.
According to court documents, Brennan Dane Short, 49, sold counterfeit M-30 pills to a purchaser in El Paso on March 21, 2023. Short mailed a package containing the pills from a United States Postal Service location. On March 27, 2023, the purchaser of the pills was found deceased at a hotel. The El Paso County Medical Examiner’s Office found that the deceased died of acute methamphetamine, cocaine, and fentanyl toxicity though she “would not have died but for the fentanyl.”
Short was arrested on Aug. 15, 2023. He pleaded guilty April 4 to one count of distribution of a controlled substance causing death or serious bodily injury.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
The Drug Enforcement Administration investigated the case.
Assistant U.S. Attorney Phillip Countryman prosecuted the case.
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Sacramento County Man Indicted for Attempted Coercion and Enticement of a MinorRead the Press Release
SACRAMENTO, Calif. — A single count indictment was unsealed following the arrest of Mark Sigl, 62, of Antelope, that charges him with attempted coercion and enticement to engage in sexual activity, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in March 2024, Sigl attempted to persuade, coerce, and entice a minor to engage in sexual activity including oral copulation.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Zulkar Khan is prosecuting the case.
If convicted, Sigl faces a mandatory minimum of 10 years in prison, a maximum of life in prison, and a fine of up to $250,000. 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.
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 those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Rosebud Man Sentenced for Transportation of Stolen FirearmRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Rosebud, South Dakota, man convicted of Transportation of Stolen Firearm. The sentencing took place on June 24, 2024.
Jeremiah Picotte, age 24, was sentenced to approximately five months in federal detention and three months of home confinement, followed by two years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Picotte was indicted by a federal grand jury in February of 2024. He pleaded guilty on March 28, 2024.
On December 13, 2023, Picotte was visiting a federal firearm licensee store in Valentine, Nebraska. While in the store, he picked up an AR-15 rifle, went to an area of the store where the store clerk could not see, and put the firearm down his pant leg, concealing the rifle with his pants and shirt. He walked out of the store and took the firearm to the Rosebud Reservation. At the time he took the rifle from Nebraska to South Dakota, he knew it was stolen. He later had someone else return the firearm to law enforcement officers.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Valentine Police Department, Rosebud Sioux Tribe Law Enforcement Services, FBI, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Tim Maher prosecuted the case.
Picotte was immediately remanded to the custody of the U.S. Marshals Service to serve his sentence.
Rhode Island Man Sentenced to 78 Months in PrisonRead the Press Release
SOUTH BEND – Yesterday, Jesus Martinez-Salas, 44 years old, of Providence, Rhode Island, was sentenced by United States District Court Judge Cristal C. Brisco after pleading guilty to distribution of 40 grams or more of fentanyl, announced United States Attorney Clifford D. Johnson.
Martinez-Salas was sentenced to 78 months in prison followed by 4 years of supervised release.
According to documents in the case, in late 2022, Martinez-Salas shipped more than a pound of fentanyl from Rhode Island to a buyer in Indiana.
This case was investigated by the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Joel Gabrielse.
This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Recidivist Sacramento Sex Offender Sentenced to 17.5 Years in Prison for Distributing and Possessing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Michael Joseph Taylor, 39, of Sacramento, was sentenced today by U.S. District Judge Daniel J. Calabretta to 17 years and six months in prison to be followed by 20 years of supervised release for distributing and possessing child sexual abuse material, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 2022 and 2023, Taylor used Reddit and Facebook Messenger to distribute multiple images depicting the sexual exploitation of children. Taylor also solicited a person on the internet whom he thought was the mother of daughters, aged four and six years old, to send him explicit images of her purported children. During this time period, Taylor possessed images and videos depicting child sexual abuse in two Google Drive accounts that he controlled.
Taylor’s criminal history includes at least nine prior convictions, including for failing to register as a sex offender in multiple jurisdictions and for attempted sexual abuse of a minor in Oregon. At the time he engaged in this criminal conduct, Taylor was on federal supervised release in Sacramento following a 2021 federal conviction for failing to register as a sex offender.
This case was the product of an investigation by the Internet Crimes Against Children Unit of the Sacramento Valley Hi-Tech Crimes Task Force, which includes the Sacramento County Sheriff’s Office. Assistant U.S. Attorney Sam Stefanki is prosecuting the case.
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 those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Purcellville man sentenced for paying Philippine sex trafficker to sexually abuse children on live webcamsRead the Press Release
ALEXANDRIA, Va. – A Purcellville man was sentenced today to 20 years in prison for his sexual exploitation of five children and his receipt and possession of thousands of images and videos depicting child sexual abuse material (CSAM).
According to court documents, Raymond Lee Chavez, 70, was a consultant on issues related to climate change and served international clients, including the United Nations. Between April 2017 and April 2022, Chavez purchased at least 15 livestreaming webcam shows involving the sexual abuse and exploitation of five prepubescent children from child sex traffickers based in the Philippines. Chavez recorded segments of several livestreams with his cell phone and saved the videos to his external hard drives.
Chavez and the traffickers communicated to arrange times for the shows, negotiate payment, and discuss the sex acts that Chavez wanted the children to perform. Often, prior to the start of the livestream, Chavez had a video call with the trafficker to preview the child. During this preview, Chavez asked the trafficker to display the child and confirm the child would perform certain sex acts. Once Chavez paid, the trafficker livestreamed the sexual abuse of the child, and on at least one occasion multiple children at once, being abused and performing sex acts. Chavez often wanted the children to wear makeup and “sexy stockings.” During the sexual abuse, Chavez continued to communicate with the trafficker and gave specific instructions about what he wanted to see the children do.
During a search of his residence on March 1, 2023, law enforcement found six different electronic devices containing more than 5,000 images and videos depicting child sexual abuse. Chavez had collected the CSAM between February 2003 and July 2022. The CSAM included depictions of the sexual abuse of toddlers and other prepubescent children. Chavez also used his computer to conduct numerous internet searches related to child prostitution and sex tourism in foreign countries. For example, in July and August 2012, Chavez searched for “child prostitution in cambodia 2012” and “xanax and viagra purchase in cambodia.” Chavez’s passport shows that he was issued, and used, a visa to visit Cambodia between July 27, 2012, and August 27, 2012.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Derek W. Gordon, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by U.S. District Judge Patricia Tolliver Giles.
Assistant U.S. Attorney Lauren Halper prosecuted the case.
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 U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), 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.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-180.
Providence Felon Sentenced for Possession of a FirearmRead the Press Release
PROVIDENCE, RI – A convicted felon found to be in possession of a privately made firearm, also known as a “ghost gun,” and hundreds of rounds of ammunition has been sentenced to 18 months in federal prison, announced United States Attorney Zachary A. Cunha.
Rafael Soriano, 35, pleaded guilty on December 14, 2023, to a charge of being a felon in possession of a firearm. He was sentenced on Wednesday by U.S. District Court Judge Mary S. McElroy to 18 months of incarceration to be followed by three years of federal supervised release.
According to information presented to the court, Soriano’s arrest came during a Bureau of Alcohol, Tobacco, Firearms, and Explosives and United States Postal Inspection Service investigation into individuals who use the United States mail in furtherance of violating federal firearm laws and individuals who are prohibited from possessing firearms.
As reflected in court documents, retailers that specialize in the advertising and sale of firearm parts, ammunition, and firearm accessories shipped orders through the U.S. Postal Service to Soriano and his brother, Lucas Soriano, at their mother’s address. These orders contained items that are commonly used to manufacture privately made firearms that lack serial numbers and other manufacturer or importer markings, rendering them difficult for law enforcement to trace.
ATF and USPIS agents executed a court-authorized search of Rafael Soriano’s residence and seized, among other items, a privately made firearm bearing no serial number, two magazines with a total of 37 rounds of 9mm ammunition, and a bag containing 293 rounds of assorted 9mm ammunition.
According to court records, Rafael Soriano was previously convicted and incarcerated on attempted armed robbery and drug trafficking charges.
Lucas Soriano was previously convicted on charges of being a felon in possession of a firearm and making false statements during the purchase of a firearm. He is currently serving a term of incarceration of 24 months in federal prison.
The case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Poughkeepsie Man Sentenced to 15 Years in Prison for Attempted Enticement of a Minor and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Aaron W. Scott, 28, of Poughkeepsie, New York, was sentenced today to 15 years in prison for attempting to entice and coerce an 11-year-old child into sexual activity and for possessing child pornography.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of his previously entered guilty plea, Scott admitted that between on or April 1, 2022, and June 14, 2022, he sent sexually explicit text messages to someone he believed was an 11-year-old girl in an attempt to entice the child into engaging in sexual acts with him. Scott admitted that on June 14, 2022, he traveled to Warren County, New York, with the intent to engage in sexual acts with the 11-year-old girl. Scott was arrested by law enforcement shortly after arriving at the location and was found in possession of child pornography at the time of his arrest.
United States District Judge Anne M. Nardacci also imposed a 25-year term of post-imprisonment supervised release, ordered Scott to pay $3,000 in restitution to a victim whose images he possessed, and ordered him to forfeit the devices that he used to attempt to entice the child and that contained the child pornography. Scott will be required to register as a sex offender after his release from prison.
This case was investigated by the FBI Child Exploitation Task Force, comprised of FBI Special Agents, and state and local police investigators, including from the New York State Police, the Colonie Police Department, and the Cary (North Carolina) Police Department. Assistant U.S. Attorney Allen J. Vickey prosecuted this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). 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 https://www.justice.gov/psc.
Portsmouth drug trafficker sentenced for illegally possessing firearmsRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to seven years in prison for being a felon in possession of multiple firearms.
According to court documents, on April 24, 2023, officers with Portsmouth Special Investigations Unit arrested Ryan Patrick Duggan, 41, on outstanding warrants from other jurisdictions, in the parking lot of a Motel 6 located in downtown Portsmouth.
At the time of the arrest, Duggan was working on a red moped in the parking lot. Law enforcement had observed Duggan in and around two BMW vehicles and a motorcycle. The moped and motorcycle were later identified as having been stolen. A law enforcement K-9 alerted on both BMW vehicles.
Law enforcement obtained search warrants for the BMW vehicles and Duggan’s room at the Motel 6. In the room, investigators found a 9mm handgun with no serial number, ammunition, and suspected narcotics. The handgun was equipped with a machinegun conversion device (MCD), enabling the handgun to operate as a fully automatic firearm.
One of the BMW vehicles displayed a North Carolina rear license plate that was not associated with it. Detectives searched the vehicle and recovered ammunition, a loaded magazine, a pill bottle containing suspected narcotics, a 12-gauge shotgun, a .223 rifle, a .726 rifle, and a 9mm pistol with a collapsible stock. The suspected narcotics were later determined to be 13 pills of gabapentin, .5328 grams of methamphetamine, and 10.9 grams of fentanyl.
Duggan has nine previous felony convictions. As a previously convicted felon, Duggan cannot legally possess firearms or ammunition.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Jason S. Miyares, Attorney General of Virginia; and Stephen Jenkins, Chief of Portsmouth Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney Amanda Cheney and Special Assistant U.S. Attorney Alyssa Miller, an Assistant Attorney General with the Virginia Attorney General’s Office, prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-80.
Podiatrist Sentenced for $4M Foot Bath Fraud SchemeRead the Press Release
Memphis, TN – A Tennessee podiatrist was sentenced today to four years in prison for a scheme to defraud Medicare and TennCare, a Medicaid program administered by the State of Tennessee, by prescribing and dispensing medically unnecessary foot bath medications and obtaining millions of dollars in reimbursements.
According to court documents and evidence presented at trial, Nathan Lucas, D.P.M., 59, of Memphis, owned and operated a podiatry clinic and two pharmacies. Lucas regularly prescribed antibiotic and antifungal drugs to be mixed into a tub of water for patients to soak their feet. These drug cocktails included capsules, creams, and powders that were not indicated to be dissolved in water and some of which were not even water soluble. Lucas chose these medications to prescribe and dispense based on their anticipated reimbursement amount, rather than medical necessity. From October 2018 through September 2021, Lucas caused his pharmacies to submit nearly $4 million in claims to Medicare and TennCare for dispensing expensive foot bath medications that were not medically necessary and not eligible for reimbursement, for which Lucas’s pharmacies were reimbursed over $3 million.
A federal jury convicted Lucas on March 18 of five counts of health care fraud.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Kevin G. Ritz for the Western District of Tennessee; Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG); and Director David Rausch of the Tennessee Bureau of Investigation (TBI) made the announcement.
HHS-OIG and TBI investigated the case.
Trial Attorney Sara E. Porter and Assistant Chief Justin M. Woodard of the Criminal Division’s Fraud Section prosecuted the case, with assistance from the U.S. Attorney’s Office for the Western District of Tennessee.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Updated June 27, 2024
Topic
HEALTH CARE FRAUD
Components
Criminal Division
Criminal - Criminal Fraud Section
USAO - Tennessee, Western
Press Release Number: 24-826
Podiatrist Sentenced for $4M Foot Bath Fraud SchemeRead the Press Release
A Tennessee podiatrist was sentenced today to four years in prison for a scheme to defraud Medicare and TennCare, a Medicaid program administered by the State of Tennessee, by prescribing and dispensing medically unnecessary foot bath medications and obtaining millions of dollars in reimbursements.
According to court documents and evidence presented at trial, Nathan Lucas, D.P.M., 59, of Memphis, owned and operated a podiatry clinic and two pharmacies. Lucas regularly prescribed antibiotic and antifungal drugs to be mixed into a tub of water for patients to soak their feet. These drug cocktails included capsules, creams, and powders that were not indicated to be dissolved in water and some of which were not even water soluble. Lucas chose these medications to prescribe and dispense based on their anticipated reimbursement amount, rather than medical necessity. From October 2018 through September 2021, Lucas caused his pharmacies to submit nearly $4 million in claims to Medicare and TennCare for dispensing expensive foot bath medications that were not medically necessary and not eligible for reimbursement, for which Lucas’s pharmacies were reimbursed over $3 million.
A federal jury convicted Lucas on March 18 of five counts of health care fraud.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Kevin G. Ritz for the Western District of Tennessee; Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG); and Director David Rausch of the Tennessee Bureau of Investigation (TBI) made the announcement.
HHS-OIG and TBI investigated the case.
Trial Attorney Sara E. Porter and Assistant Chief Justin M. Woodard of the Criminal Division’s Fraud Section prosecuted the case, with assistance from the U.S. Attorney’s Office for the Western District of Tennessee.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Pierce County, Washington man sentenced to four years in prison for illegal possession of cache of firearmsRead the Press Release
Tacoma – A Pierce County, Washington man was sentenced today in U.S. District Court in Tacoma to four years in prison for unlawful possession of a machinegun and unlawful possession of firearms related to his October 2023 arrest at a Fife, Washington auto glass business, announced U.S. Attorney Tessa M. Gorman. Brady Lee Eltz, 39, has been in custody since his federal arrest on October 31, 2023. At the sentencing hearing Chief U.S. District Judge David G. Estudillo said, “This conduct is not only serious but alarming to read about and see. You possessed very dangerous weapons. It’s unclear what your motivation was.”
According to records filed in the case, on October 4, 2023, Fife Police were dispatched to an auto-glass repair shop where workers at the shop reported seeing firearms in the trunk of a vehicle Eltz brought in for repair. Workers also reported seeing bullet holes in the vehicle.
After law enforcement took Eltz into custody, they checked the bathroom at the business because Eltz had gone into the bathroom when he saw police arrive.
In the cabinet below the sink police found two firearms – 9 mm handguns. One, a Glock, had an illegal switch known as an “auto-sear” installed. The switch allows the gun to be fired automatically, making it a machinegun. The Glock had been reported stolen. Both the Glock and the other handgun had rounds chambered.
Fife Police towed Eltz’s vehicle and applied for a warrant to search it. During the search of the vehicle’s trunk, they found three additional firearms – including a stolen rifle that had been modified to fire automatically, making it a machinegun. Police then discovered a bag with two improvised explosive devices. Pierce County Sheriff’s Office bomb technicians were called in to evaluate the devices and make them safe. One was an explosive simulator likely stolen from the U.S. Army. It can cause serious bodily injury if exploded in a confined space. The second explosive was a thick cardboard tube filled with a black flammable powder.
After the explosives were made safe, police continued their search of the trunk and found two additional rifles, hundreds of rounds of ammunition, latex face masks, body armor, gun sights, holsters, and other firearms accessories. Eltz also had GPS trackers, several knives, and a voice-changing device.
As prosecutors wrote in their sentencing memo, Eltz has a history of collecting similar armaments, false credentials, and disguises. “In 2007, he had a gun magazine loaded with 30 rounds of hollow point ammunition, a homemade silencer, ballistic helmet, handcuffs, emergency vehicle red light, sword, electronic stun gun, nun-chucks, knives, and a City of Milton “Director of Public Safety” badge. In 2012, Eltz had a stolen rifle with a silencer, three pistols, two other rifles, a US Army backpack with Army gear, a Department of Defense identification card (in another name), multiple rifle and pistol magazines (loaded), a law enforcement duty belt, a WSP “SWAT Sergeant” shirt, night vision goggles, large military-style knives, and more. At the time, he was driving an older style police vehicle that still had emergency lights.”
All the guns, ammunition and auto-sear devices in this case are being forfeited to the government.
Eltz is prohibited from possessing any firearms because of criminal convictions including a 2013 conviction in the Western District of Washington for unlawful possession of firearms. Eltz was sentenced to five years in prison for that crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF) with assistance from the Fife Police Department and the Pierce County Sheriff’s Office. The Washington State Patrol assisted with locating and arresting Eltz on a federal warrant after he posted bail and left state custody.
The case was prosecuted by Assistant United States Attorney Marci L. Ellsworth.
Orleans Parish Man Sentenced for Theft from Interstate ShipmentRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MALIK MACK (“MACK”), age 27, of New Orleans, was sentenced on June 11, 2024 to twenty-four (24) months in prison, after previously pleading guilty to theft from an interstate shipment and aiding and abetting in that theft, by U.S. District Judge Brandon S. Long.
According to court records, on March 29, 2023, MACK, along with three other individuals, entered the Norfolk Southern Railyard, a facility that houses interstate shipments, to steal Ford F-150 Rapture trucks. Norfolk Southern Railway Police, recognizing that a theft was in progress, pursued the suspects and apprehended MACK. MACK admitted to entering the facility to steal the black Ford F-150 Rapture truck that was being moved by one of the individuals. The truck was valued at approximately $80,625.00.
Additionally, Judge Long sentenced MACK to three years of supervised release and payment of a $100 mandatory special assessment fee.
U.S. Attorney Evans praised the work of, the United States Department of Homeland Security, the Norfolk Southern Railway Police, the United States Department of Homeland Security, the New Orleans Police Department, and the Louisiana State Police in investigating this matter. Assistant U.S. Attorney Troy L. Bell of the Violent Crimes Unit is in charge of the prosecution.
OptumRx Agrees to Pay $20M to Resolve Allegations that It Filled Certain Opioid Prescriptions in Violation of the Controlled Substances ActRead the Press Release
OptumRx Inc., a prescription drug benefit provider, has agreed to pay $20 million to resolve allegations that it improperly filled certain opioid prescriptions in violation of the Controlled Substances Act.
The settlement resolves an investigation initiated by the Drug Enforcement Administration (DEA) into whether, between April 2013 and April 2015, OptumRx improperly filled certain opioid prescriptions in combination with other drugs such as benzodiazepines and muscle relaxants, commonly referred to as “trinity” prescriptions. The United States alleged that these combination prescriptions, which OptumRx filled primarily from a mail order pharmacy location in Carlsbad, California, raised “red flags” indicating that the prescriptions may not have been intended for legitimate medical use and could lead to abuse or diversion of highly addictive and powerful opioids. The United States also contended that these trinity prescriptions carry significant risk of harm and that these red flags must be resolved prior to filling a controlled substance prescription. During the course of its investigation, the government alleged that OptumRx received numerous trinity prescriptions that raised red flags but filled those prescriptions without always resolving the red flags.
OptumRx reports that the company has instituted enhanced protocols in handing opioid prescriptions since 2017 to reduce the number, dose and duration of opioid prescriptions it dispenses. OptumRx also reports that it instituted more robust concurrent drug utilization review procedures to assist in identifying and not filling prescriptions for dangerous opioid combinations and excess dosing. During the course of the government’s investigation, OptumRx also closed its mail order pharmacy operations in Carlsbad, California.
“Pharmacies providing opioids and other controlled substances have a duty under the Controlled Substances Act to ensure that they fill prescriptions only for legitimate medical purposes,” said Principal Deputy Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to work with its law enforcement partners to ensure that pharmacies do not contribute to the opioid addiction crisis.”
“Pharmacies are the last line of defense protecting the public from potentially dangerous and addictive medications,” said U.S. Attorney Tara McGrath for Southern District of California. “Combating the opioid crisis on all fronts includes holding pharmacies accountable if they shirk any part of the responsibilities required in filling prescriptions for potentially harmful drugs.”
“DEA registrants have an obligation to protect the public, not help fuel the opioid epidemic,” said Assistant Administrator Thomas W. Prevoznik of the DEA Diversion Control Division. “The trinity style prescription combination helped fuel the start of the opioid addiction crisis and raises a red flag, which this registrant should have recognized and reacted to rather than putting profits before patients’ safety.”
DEA’s Office of Diversion Control, San Diego Division Office conducted the investigation.
Assistant U.S. Attorneys Joseph Price, Dylan Aste, Betsy Boutelle and Colin McDonald for the Southern District of California and Trial Attorneys Scott B. Dahlquist and Brandon Robers and Assistant Directors Rachael Doud and Gabriel H. Scannapieco of the Civil Division's Consumer Protection Branch represented the United States.
This is the second substantial resolution of an opioid related investigation announced by the Justice Department in recent months. Late last year, the department announced a $12 million resolution and consent decree involving Droguería Betances LLC, one of Puerto Rico’s largest drug distributors. In that case, the United States alleged that Betances failed to report to the DEA hundreds of “suspicious orders” for opioids and other controlled substances distributed to Betances’ pharmacy customers.
The claims resolved by the settlement agreement announced today are allegations only. And there has been no determination of liability.
Newton County Board of Commissioners Chairman and Real Estate Broker Charged with Money LaunderingRead the Press Release
ATLANTA – Marcello Banes, Chairman of the Newton County Board of Commissioners, and Stephanie Lindsey, a real estate broker and attorney, have been indicted by a federal grand jury for conspiring to launder money obtained from wire fraud and honest services wire fraud.
“By allegedly laundering proceeds obtained from a fraud conspiracy, these defendants violated the trust placed in them by their client, their constituents, and their fellow commissioners,” said U.S. Attorney Ryan K. Buchanan. “Public officials who undermine the public’s faith in our institutions by abusing their power for personal gain must be held accountable.”
“Banes and Lindsey undermined the public’s confidence in government and business in Georgia,” said FBI Atlanta Special Agent in Charge Keri Farley. “This indictment is a stern warning that anyone who violates our laws will be brought to face justice.”
“This is a case of a public official breaking the public’s trust to enrich himself and a realtor who did not serve her client, but instead, assisted the public official in breaking the law,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Criminal Investigation special agents, our law enforcement partners, and the U.S. Attorney’s office are working together to hold those who break the law accountable.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: In 1999, Jasper, Morgan, Newton, and Walton Counties established a Joint Development Authority (JDA) to create an industrial area to attract industries to bring jobs and investment to the region. The JDA is controlled by an eight-member board of directors, with two members from each of the four counties. Marcello Banes, as the Chairman of the Newton County Board of Commissioners, represented Newton County on the JDA.
In 2018, a company identified in the indictment as “Company A” expressed an interest in purchasing approximately 40 acres of the JDA’s land for commercial development. Banes responded to Company A’s interest in the parcel by coordinating a brokerage agreement between Company A and Lindsey by which Company A would pay Lindsey’s CSL Realty Group (CSL) $150,000 upon completion of Company A’s purchase of the parcel.
The indictment alleges that at the time Company A entered this brokerage agreement, Banes and Lindsey misled Company A into believing that the commission was only intended for Lindsey. Neither Banes nor Lindsey disclosed to Company A that Lindsey would pay most of the commission -- which was contingent on the JDA voting to approve the sale -- to Banes. Had Company A’s owners known Banes would receive any of the commission, they would not have entered the brokerage agreement.
At a JDA board meeting on January 22, 2019, Banes voted along with other JDA members to pass a resolution authorizing the transfer of the parcel, which allowed the purchase of the land by Company A. Banes allegedly never disclosed to the JDA that, upon Company A’s acquisition of the land, Company A would pay $150,000 to Lindsey, who would funnel most of the payment to Banes.
Company A’s purchase was finalized on March 1, 2019. Although Lindsey was not present at the closing and neither she nor CSL were referenced in the closing documents, Lindsey contacted Company A the next day to collect the $150,000 payment. Shortly after receiving the payment, Lindsey allegedly passed $100,000 of it to Banes through a newly formed business entity they created. Banes used a substantial amount of that payment for a new house he was building in Newton County.
In addition to the money laundering offense, Lindsey is charged with two federal tax violations which allege that she filed two federal income tax returns for 2019 in which she claimed false business deductions to reduce her tax liability for the $150,000 payment.
Banes is also charged with lying to FBI special agents during a 2023 interview. The indictment alleges that he falsely told FBI agents that he was unaware Lindsey was involved as a broker for the sale of the land to Company A.
Marcello C. Banes, 48, and Stephanie R. Lindsey, 52, both of Covington, Georgia, were charged with conspiracy to launder money obtained from wire fraud and honest services wire fraud, and with money laundering. The grand jury also indicted Lindsey for federal income tax fraud and Banes for making materially false statements to FBI special agents.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove each defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
Assistant U.S Attorneys Brent Alan Gray and Bret R. Hobson are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
New York Man Arrested for Trafficking Guns, Machinegun Conversion Devices, and NarcoticsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”); Daniel B. Brubaker, the Inspector in Charge of the New York Division of the U.S. Postal Inspection Service ("USPIS"); and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced today the arrest of CALEB ECCLES-GONSALVES in connection with his sale and distribution of firearms, machinegun conversion devices (“MCDs”), silencers, ammunition, and narcotics. ECCLES-GONSALVES was arrested this morning in St. Petersburg, Florida, and will be presented later today in the U.S. District Court for the Middle District of Florida. The case is assigned to U.S. District Judge Richard M. Berman.
U.S. Attorney Damian Williams said: “As alleged, Caleb Eccles-Gonsalves participated in a scheme to illegally traffic various contraband into and around New York City, including guns, narcotics, and gun accessories like machinegun conversion devices, silencers, and ammunition. Machinegun conversion devices are particularly dangerous gun accessories that turn ordinary firearms into fully automatic weapons. Removing these extraordinarily dangerous devices from our streets is an important law enforcement goal, and we will continue working diligently with our law enforcement partners to keep these devices and other illegal guns out of New York City.”
HSI Special Agent in Charge Ivan J. Arvelo said: “As alleged, the defendant trafficked illicit high-powered weapons, accessories, and ghost guns and in turn overlooked the incalculable dangers posed to the public. HSI New York is committed to working with law enforcement partners to confront violent crime and its underlying causes directly. I commend HSI’s Violent Gang Task Force, the New York Police Department, and the U.S. Attorney’s Office for the Southern District of New York for our shared dedication to removing illegal guns from our streets.”
USPIS Inspector in Charge Daniel B. Brubaker said: “The defendants allegedly used the U.S. Mail to traffic and distribute illegal firearms and other contraband in New York City without any regard for public safety in our communities. The United States Postal Inspection Service will continue to aggressively pursue and investigate anyone who attempts to use the mail to encourage gun violence and ongoing drug use in our communities. Combating these illegal activities will always be a priority for postal inspectors. I commend our partners in the NYPD, HSI, and the U. S. Attorney’s Office for the Southern District of New York for their collaborative efforts on this investigation.”
NYPD Commissioner Edward A. Caban said: “These charges punctuate that the manufacturing and trafficking of fully assembled untraceable ghost guns, as well as their component parts, is among the most pressing public safety concerns in New York City today. NYPD investigators and our federal partners will continue to vigorously pursue these types of cases in order to deliver on our promise to keep all New Yorkers safe, and to hold accountable anyone who allegedly involves themselves in this illicit trade.”
According to the allegations in the Indictment unsealed today in Manhattan federal court, as well as publicly filed court documents and statements at public court proceedings:1
From about July 2023 up to and including June 2024, ECCLES-GONSALVES participated in a conspiracy to sell at least two MCDs, multiple firearms — including a privately manufactured “ghost” gun (depicted below) — and narcotics. An MCD is a combination of parts that, when installed on a semiautomatic firearm, enables the firearm to automatically shoot more than one shot, without manual reloading, by a single function of the trigger. A “ghost” gun is an unserialized, privately manufactured firearm that is difficult to trace and typically constructed from a kit.
ECCLES-GONSALVES and his co-conspirators used the U.S. Postal Service (“USPS”) to ship MCDs as well as firearms from Florida to New York. In addition, ECCLES-GONSALVES advertised multiple guns, including at least one rifle, as available for sale. Law enforcement seized USPS parcels during the course of the investigation and seized, among other things, a privately manufactured “ghost” gun, a silencer, an MCD, ammunition, and magazines. A photo of a "ghost gun" and silencer seized from a USPS parcel during the course of this investigation is copied below:
At the time of his arrest today, law enforcement officers executed a search warrant in the home in which ECCLES-GONSALVES was staying in St. Petersburg, Florida. During the search, as depicted below, law enforcement officers recovered, among other things, 13 firearms, magazines, ammunition, and a lower receiver.
* * *
ECCLES-GONSALVES, 29, of Brooklyn, New York, is charged with conspiracy to possess and transfer a machinegun, which carries a maximum potential sentence of five years in prison; possession and transfer of a machinegun, which carries a maximum potential sentence of 10 years in prison; conspiracy to engage in the unlicensed business of dealing in firearms, which carries a maximum potential sentence of five years in prison; and narcotics distribution, which carries a maximum potential sentence of 20 years in prison.
The maximum potential sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding work of HSI, the NYPD, and USPIS.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Ashley C. Nicolas and Timothy Ly are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
1 As the introductory phrase signifies, the entirety of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
New Orleans Man Pleads Guilty to Drug Trafficking and Firearms OffensesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JAMAR HOLMES (“HOLMES”), age 35, of New Orleans, pled guilty on June 26, 2024, before United States District Judge Sarah Vance. to violating the Federal Controlled Substances and Gun Control Acts.
Specifically, HOLMES pled guilty to Counts 1 through 6 of the indictment pending against him.
Count 1 charged that HOLMES distributed quantities of cocaine on July 24, 2023, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). Count 2 charged that HOLMES distributed quantities of cocaine on July 27, 2023, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). Count 3 charged that HOLMES distributed forty (40) grams or more of a mixture containing fentanyl on July 31, 2023, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B). Count 4 charged that HOLMES distributed forty (40) grams or more of a mixture containing fentanyl on August 4, 2023, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B). Count 5 charged that HOLMES distributed forty (40) grams or more of a mixture containing fentanyl on August 10, 2023, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B). Count 6 charged that HOLMES knowingly sold a stolen firearm on August 25, 2024, in violation of Title 18, United States Code, Sections 922(j) and 924(a)(2).
According to court documents, HOLMES sold cocaine to an undercover agent on July 24, 2023 and July 27, 2023. Additionally, on July 31, 2023, August 4, 2023, and August 9, 2023, HOLMES sold fentanyl to the undercover agent. On August 25, 2023, HOLMES sold a stolen Sig-Sauer, Model P320, .9-millimeter semi-automatic pistol to the undercover agent.
For Counts 1 and 2, HOLMES faces up to 20 years imprisonment, up to a $1,000,000 fine, and at least 3 years of supervised release, if convicted. For Counts 3, 4, and 5, HOLMES faces a mandatory minimum sentence of 5 years, up to 40 years imprisonment, a fine of up to $5,000,000, and at least 4 years of supervised release, if convicted. For Count 6, HOLMES faces up to 15 years imprisonment, up to a $250,000 fine, and up to 3 years supervised release, if convicted. HOLMES also faces payment of a $100 mandatory special assessment fee for each count.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The prosecution is being handled by Assistant United States Attorney Rachal Cassagne of the Narcotics Unit.
Nevada Woman Sentenced for Methamphetamine Trafficking and Failure to AppearRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Sparks, Nevada, woman convicted of Conspiracy to Distribute a Controlled Substance, Possession with Intent to Distribute a Controlled Substance, and Failure to Appear. The sentencing took place on June 24, 2024.
Dawn Eagle Feather Floyd, 42, was sentenced to six and half years in federal prison on each of the two drug convictions to be served concurrently. She was sentenced to one year and eight months on the failure to appear conviction to be served consecutively to the drug convictions for a total of eight years and three months in federal prison. Following release from custody, Floyd will be on supervised release for four years. She was also ordered to pay a fine of $1000, and a $300 special assessment to the Federal Crime Victims Fund.
Floyd was indicted by a federal grand jury in August of 2020. A superseding indictment was filed in May of 2023. She was found guilty of the drug charges following a federal jury trial on March 29, 2024. She pleaded guilty to the Failure to Appear charge on April 15, 2024.
Floyd lived in Valentine, Nebraska, in the fall of 2019, when she knowingly and intentionally agreed with others to distribute and possess with intent to distribute 50 grams or more of methamphetamine within the Rosebud Sioux Indian Reservation. Floyd conspired with others to travel to Colorado where she obtained methamphetamine and brought it back to her home in Valentine and then onto the Rosebud Reservation for distribution. Law enforcement recovered over 100 grams of methamphetamine from Floyd’s residence, vehicle, and person during the investigation. Floyd’s methamphetamine was tested and found to be 100 percent pure. While awaiting trial, Floyd, who had been released on bond, fled the District of South Dakota, and knowingly failed to appear for her jury trial that had been set for August of 2023. Floyd was arrested in Nevada and brought back to South Dakota to stand trial in March of 2024.
This case was investigated by the FBI, Rosebud Sioux Tribe Law Enforcement Services, Northern Plains Safe Trails Drug Enforcement Task Force, and the Valentine Police Department. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Eagle Feather Floyd was immediately remanded to the custody of the U.S. Marshals Service.
National Health Care Fraud Enforcement Action Results in 193 Defendants Charged and over $2.75 Billion in False ClaimsRead the Press Release
The Justice Department today announced the 2024 National Health Care Fraud Enforcement Action, which resulted in criminal charges against 193 defendants, including 76 doctors, nurse practitioners, and other licensed medical professionals in 32 federal districts across the United States, for their alleged participation in various health care fraud schemes involving approximately $2.75 billion in intended losses and $1.6 billion in actual losses.
In connection with the coordinated nationwide law enforcement action, and together with federal and state law enforcement partners, the government seized over $231 million in cash, luxury vehicles, gold, and other assets.
“It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company, if you profit from the unlawful distribution of controlled substances, you will be held accountable,” said Attorney General Merrick B. Garland. “The Justice Department will bring to justice criminals who defraud Americans, steal from taxpayer-funded programs, and put people in danger for the sake of profits.”
“The extraordinary Special Agents of Homeland Security Investigations (HSI) were proud to play an integral role in this multi-agency investigation and national takedown of healthcare fraud,” said Secretary of Homeland Security Alejandro N. Mayorkas. “Through this action, we in federal law enforcement send a clear and strong message—that we will hold accountable those health care providers and prescribers who prey on their patients for profit and disregard the first rule of medical care: do no harm.”
“Healthcare fraud victimizes patients, endangers the health of vulnerable people, and plunders healthcare programs,” said FBI Director Christopher Wray. “This wide-ranging collaboration demonstrates the FBI’s commitment to rooting out predatory healthcare fraud, protecting patients, and ensuring critical healthcare funds go where they are needed most.”
The charges alleged include over $900 million fraud scheme committed in connection with amniotic wound grafts; the unlawful distribution of millions of pills of Adderall and other stimulants by five defendants associated with a digital technology company; an over $90 million fraud committed by corporate executives distributing adulterated and misbranded HIV medication; over $146 million in fraudulent addiction treatment schemes; over $1.1 billion in telemedicine and laboratory fraud; and over $450 million in other health care fraud and opioid schemes.
“Health care fraud affects every American,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “It siphons off hard-earned tax dollars meant to provide care for the vulnerable and disabled. In doing so, it also raises the cost of care for all patients. Even worse, as the prosecutions we announce today underscore, health care fraud can harm patients and fuel addiction. The Criminal Division is committed to rooting out health care fraud, wherever it may be found, no matter who commits it. And we are using more tools than ever before to uncover misconduct and hold wrongdoers to account, whether they are executives in corner offices or doctors who violate their oaths.”
Today’s enforcement action was led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section and its core partners: U.S. Attorneys’ Offices, the Department of Health and Human Services Office of Inspector General (HHS-OIG), FBI, and Drug Enforcement Administration (DEA). The cases were investigated by agents from the division’s core partner agencies along with other federal and state law enforcement agencies. The cases are being prosecuted by Health Care Fraud Strike Force teams from the Criminal Division’s Fraud Section, 32 U.S. Attorneys’ Offices nationwide, and 11 State Attorney Generals’ Offices.
“This work is important to the Department of Health and Human Services (HHS) and the millions of Americans we serve. HHS vigorously pursues anyone who commits fraud against our health care programs. But it takes all of us, working together, to be successful,” said HHS Deputy Secretary Andrea Palm. “Those who steal from these programs are stealing from the American families who rely on them and putting patients at risk. We won’t stop until all those who try to defraud the federal government are caught and held accountable.”
“We will not tolerate fraud that preys on patients who need and deserve high quality health care,” said the HHS-OIG Inspector General Christi A. Grimm. “The hard work of the HHS-OIG team and our outstanding law enforcement partners makes today’s action possible. We must protect taxpayer dollars and keep Americans safe from harms to their health, privacy, and financial well-being.”
Amniotic Wound Grafts
Charges were filed in the District of Arizona against four individuals who allegedly filed $900 million in false and fraudulent claims to Medicare for amniotic wound grafts used on Medicare patients. As alleged, the defendants targeted elderly Medicare patients, many of whom were terminally ill. The defendants caused medically unnecessary and expensive amniotic grafts to be applied to these vulnerable patients’ wounds indiscriminately, without coordination with the patients’ treating physicians and without proper treatment for infection, to superficial wounds that did not need this treatment, and in sizes that far exceeded the size of the wound. In just 16 months, Medicare paid two defendants more than $600 million as a result of their fraud scheme, paying on average more than a million dollars per patient for these unnecessary grafts. These two defendants owned wound care companies in Arizona and received more than $330 million in illegal kickbacks in exchange for purchasing the grafts billed to Medicare. In connection with the charges, the government seized over $70 million, including four luxury vehicles, gold, jewelry, and cash.
“Every dollar saved by investigating fraud is critical to the sustainability of the Medicare program and the needs of the people who depend on it,” said Administrator Chiquita Brooks-LaSure of the Centers for Medicare & Medicaid Services (CMS). “In addition to the actions taken by the Justice Department, CMS took 127 administrative actions in the last six months separately against providers for their alleged involvement in health care fraud schemes. We thank our partners at the Department of Justice and Department of Health and Human Services Office of Inspector General for working closely with us to identify, investigate, and eliminate waste, fraud, and abuse in our federal health care programs.”
Distribution of Adderall and Other Stimulants
Five additional defendants associated with digital technology company Done Global Inc. and its affiliated entity, Done Health P.C. (collectively, “Done”), were charged for the unlawful distribution of millions of Adderall pills. The CEO and Clinical President of Done were charged on June 13 in a scheme to distribute Adderall and other stimulants over the internet. The charges announced today include those against one of the most prolific prescribers working for Done, a Florida nurse practitioner who prescribed over 1.5 million pills of Adderall and other stimulants to patients across the United States. The indictment alleges that the nurse practitioner prescribed Adderall and other stimulants without interaction with patients, pursuant to Done’s “auto-refill” policy. This policy allowed patients to obtain continued prescriptions after an initial encounter without any further audio or visual interaction with a medical professional. This allegedly resulted in the nurse practitioner prescribing Adderall and other stimulants to individuals suffering from drug addiction and continuing to issue Adderall prescriptions for months after the overdose deaths of patients.
“DEA works tirelessly to protect the public from harm, be it cartels funneling fentanyl into our communities or medical providers caring more about profits than patients,” said DEA Administrator Anne Milgram. “The CEO and clinical director of Done Global Inc. are charged with over-prescribing millions of unneeded stimulant pills, potentially putting patients in danger and exacerbating the current stimulant medicine shortage. The seriousness of these actions should not be understated. DEA will continue to hold anyone accountable who endangers the health and well-being of Americans.”
Diverted HIV Medication
Three owners and executives of a wholesale distributor of pharmaceutical drugs were charged in connection with an alleged $90 million wire fraud conspiracy to introduce adulterated and misbranded HIV drugs into the market. The HIV drugs were allegedly acquired through unlawful “buyback” schemes in which previously dispensed bottles of prescription drugs were bought from vulnerable patients. The defendants allegedly purchased these drugs from the black market and resold them to pharmacies throughout the country with falsified documentation designed to conceal the true source of the medication. Pharmacies then dispensed these diverted HIV medications to unsuspecting patients. At times, patients received bottles labeled as their prescription medication, but the bottles contained a different drug entirely, with one patient passing out and remaining unconscious for 24 hours after taking an anti-psychotic drug thinking it was his prescribed HIV medication.
Addiction Treatment Cases
The addiction treatment cases announced today include charges filed in the District of Arizona and Southern District of Florida against four defendants in connection with more than $146 million of allegedly false and fraudulent claims for services for vulnerable patients seeking treatment for drug or alcohol addiction. As alleged in one of the indictments, one defendant paid kickbacks in exchange for the referral of patients recruited from the homeless population and Native American reservations. She then fraudulently billed Arizona Medicaid for substance abuse treatment services that were either never provided or were provided at a level that was so substandard that it failed to serve any treatment purpose. The defendant is charged with money laundering offenses for her lavish purchases with the fraud proceeds, as well as obstruction of justice for allegedly falsifying records in response to a grand jury subpoena for documents.
Telemedicine and Laboratory Fraud Cases
Thirty-six defendants were charged in connection with the submission of over $1.1 billion in fraudulent claims to Medicare resulting from telemedicine schemes. For example, in separate cases involving similar schemes that were perpetrated by different criminal networks in the Southern District of Texas, Northern District of Texas, and District of New Jersey, clinical laboratory owners allegedly paid illegal kickbacks and bribes, including to telemedicine companies, in exchange for the referral of orders for unnecessary genetic testing. The results of these genetic tests—which were supposed to detect genetic mutations that could indicate an elevated risk of cancer, cardiovascular disease, Parkinson’s disease, and other serious illness—were not used in the patients’ treatment. Other telemedicine schemes included the unsealing of a complaint in the Eastern District of Virginia against a psychiatrist who allegedly submitted fraudulent claims based on minimal patient interactions, including for visits that lasted between 10 to 30 seconds. The continued focus on prosecuting health care fraud schemes involving telemedicine reflects the Department’s commitment to rooting out these schemes, which has saved taxpayers billions of dollars.
Cases Involving the Illegal Prescription and Distribution of Opioids and Other Health Care Fraud Schemes
The other cases announced today charge 14 defendants with crimes related to the illegal prescription and distribution of opioids that resulted in millions in false billings, including several charges against medical professionals and others who prescribed unnecessary opioids, Suboxone, and other controlled substances.
An additional 126 defendants are charged with various other health care fraud schemes involving over $450 million in false and fraudulent claims to Medicare, Medicaid, and private insurance companies for treatments that were medically unnecessary or never provided. Ten defendants across the country were charged in connection with fraudulent COVID-19 testing, including an over $65 million scheme charged in the Southern District of Florida.
The Center for Program Integrity of the Centers for Medicare and Medicaid Services (CPI/CMS) separately announced today that it took adverse administrative actions in the last six months against 127 medical providers for their alleged involvement in health care fraud.
Principal Assistant Deputy Chief Jacob Foster, Assistant Chief Rebecca Yuan, and Trial Attorney Miriam L. Glaser Dauermann of the Health Care Fraud Unit of the Criminal Division’s Fraud Section led and coordinated today’s enforcement action. The cases are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices for the Southern District of Alabama, District of Arizona, Central District of California, Northern District of California, Southern District of California, District of Connecticut, Middle District of Florida, Southern District of Florida, Northern District of Illinois, Eastern District of Kentucky, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, Western District of Louisiana, Eastern District of Michigan, Western District of Michigan, Southern District of Mississippi, District of Montana, District of New Jersey, Eastern District of New York, Eastern District of North Carolina, Western District of Oklahoma, District of Rhode Island, Eastern District of Tennessee, Middle District of Tennessee, Eastern District of Texas, Northern District of Texas, Southern District of Texas, Eastern District of Virginia, Western District of Virginia, Southern District of West Virginia, and Eastern District of Wisconsin; and State Attorney Generals’ Offices for Arizona, California, Illinois, Indiana, Louisiana, New York, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, and South Dakota. The Health Care Fraud Unit’s Data Analytics Team used cutting-edge data analytics to identify and support the investigations that led to these charges.
In addition to the FBI, HHS-OIG, DEA, and CMS/CPI, HSI, IRS Criminal Investigation, Department of Veterans Affairs Office of Inspector General, Defense Criminal Investigative Service, Department of Labor, United States Postal Service Office of Inspector General, and other federal, state, and local law enforcement agencies participated in the operation. The Medicaid Fraud Control Units of the states of Arizona, California, Connecticut, Florida, Illinois, Indiana, Kentucky, Louisiana, New York, North Carolina, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, South Dakota, Tennessee, Texas, and Virginia also participated in the investigation of many of the federal and state cases announced today.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force. Prior to the charges announced as part of today’s nationwide enforcement action and since its inception in March 2007, the Health Care Fraud Strike Force, which operates in 27 districts, charged more than 5,400 defendants who collectively billed Medicare, Medicaid, and private health insurers more than $27 billion.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The following documents related to today’s announcement are available on the Health Care Fraud Unit website through these links:
- Graphics and Resources
- Case Descriptions
- Court Documents
National Health Care Fraud Enforcement Action Results in 193 Defendants Charged and over $2.75 Billion in False ClaimsRead the Press Release
38 Defendants Charged in the Southern District of Florida
MIAMI - Today, U.S. Attorney Markenzy Lapointe announced criminal charges against thirty-eight defendants in connection with alleged health care fraud schemes prosecuted in the Southern District of Florida. The charges filed in federal court are part of the Justice Department’s 2024 National Health Care Fraud Enforcement Action. The charges stem from various schemes to defraud government and private health care benefit programs by submitting false claims for items and services that were not needed and, in many instances, never provided as well as a scheme to unlawfully distribute adulterated and misbranded prescription medications.
“It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company, if you profit from the unlawful distribution of controlled substances, you will be held accountable,” said Attorney General Merrick B. Garland. “The Justice Department will bring to justice criminals who defraud Americans, steal from taxpayer-funded programs, and put people in danger for the sake of profits.”
“The results of this coordinated law enforcement action demonstrate that the U.S. Attorney’s Office for the Southern District of Florida is committed to combatting health care fraud through the prosecution of those who steal from taxpayer-funded programs, defraud Americans, and compromise our health care system,” stated U.S. Attorney Markenzy Lapointe. “Our Office and law enforcement partners will continue to fight health care fraud by holding those accountable, at all levels of the healthcare industry, who put profits above patient care and exploit patients and our invaluable health care programs.”
The charges announced today by U.S. Attorney Markenzy Lapointe for the Southern District of Florida are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 193 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.75 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the Government, in connection with the enforcement action, seized over $231 million in cash, luxury vehicles, gold, and other assets.
The Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices for the Southern District of Alabama, District of Arizona, Central District of California, Northern District of California, Southern District of California, District of Connecticut, Middle District of Florida, Southern District of Florida, Northern District of Illinois, Eastern District of Kentucky, Western District to Kentucky, Eastern District of Louisiana, Middle District of Louisiana, Western District of Louisiana, Eastern District of Michigan, Western District of Michigan, Southern District of Mississippi, District of Montana, District of New Jersey, Eastern District of New York, Eastern District of North Carolina, Western District of Oklahoma, District of Rhode Island, Eastern District of Tennessee, Middle District of Tennessee, Eastern District of Texas, Northern District of Texas, Southern District of Texas, Eastern District of Virginia, Western District of Virginia, Southern District of West Virginia, and Eastern District of Wisconsin; and State Attorney Generals’ Offices for Arizona, California, Illinois, Indiana, Louisiana, New York, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, and South Dakota are prosecuting the cases in the National Enforcement Action, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.
The Southern District of Florida, in particular, worked with the Department’s Criminal Division and the following law enforcement organizations to investigate and prosecute the cases filed during the enforcement period: the Department of Health and Human Services Office of Inspector General (HHS-OIG), FBI, Florida Office of the Attorney General Medicaid Fraud Control Unit (MFCU) and U.S. Marshals Service (USMS).
“We will not tolerate fraud that preys on patients who need and deserve high quality health care,” said the Honorable Christi A. Grimm, the Department of Health and Human Services Inspector General. “The hard work of the HHS-OIG team and our outstanding law enforcement partners makes today’s action possible. We must protect taxpayer dollars and keep Americans safe from harms to their health, privacy, and financial well-being.”
“The numbers speak for themselves – 193 defendants and over $2.75 billion in alleged false billings. Health care fraud in South Florida is a large and growing problem. This is why the FBI and our partners at the U.S. Attorney’s Office for the Southern District of Florida, HHS-OIG and MFCU devote considerable time and resources to investigate, catch, and prosecute those committing this type of fraud,” said Jeffrey B. Veltri, Special Agent in Charge of the FBI Miami Field Office. “The law enforcement professionals who unravel these scams are to be commended for their diligence and commitment. Yet we need the public’s help. If anyone suspects they are a victim of health care fraud please call your local FBI office, the Florida Attorney General, or the HHS-OIG."
“I am proud of our Medicaid Fraud Control Unit’s work to fight fraud through this massive nationwide action, stopping fraudsters who stole billions from healthcare programs, including more than $15 million from Florida Medicaid. We will continue to take a hard stance against criminals looking to exploit taxpayer-funded programs,” stated Florida Attorney General Ashley Moody.
The following individuals have been charged in the Southern District of Florida:
In U.S. v. Marco Antonio Ramos Izquierdo, et al., Case No. 24-20238-CR-Becerra, Marco Antonio Ramos Izquierdo, 42, of Cuba, Marelys Ruiz Ulloa, 45, of Miami, Fla., Jakeline Canova Cebrian, 58, of Miami, Fla., Roberto Cisneros Cebrian, 53, of Miami, Fla., Jose Antonio Rio Roche, 53, of Miami, Fla., Reiniel Claro Estrada, 42, of Phoenix, Ariz., Maria De Los Angeles Abreu Perez, 37, of Houston, Tex., Nelson Enrique Gonzalez Diaz, 38, of Doral, Fla., Jonathan Jose Martinez Lambrano, 41, of Houston, Tex., Ana Maria Gomez Contreras, 42, of Houston, Tex., Levy Alberto Colina Garcia, 37, of Doral, Fla., and Gloria Guillibeth Diaz Salas, 34, of Doral, Fla., were charged by indictment with conspiracy to commit money laundering and money laundering for their role in distributing the proceeds of fourteen durable medical equipment (DME) companies. According to the indictment, Medicare and Medicaid paid these fourteen companies approximately $17,600,000 as a result of false and fraudulent claims for DME. The indictment details how the DME companies transferred approximately $3,906,649 of the fraud proceeds to shell companies, including those owned by Ramos Izquierdo, Ruiz Ulloa, Canova Cebrian, Cisneros Cebrian, Rio Roche, and Claro Estrada. Those defendants then made cash withdrawals from their shell companies and also wrote checks from the shell companies that received these fraud proceeds to individual check cashers, including individual checks between $4,000 and $9,000 totaling a combined approximate amount of $2,513,381 made out to Abreu Perez, Gonzalez Diaz, Martinez Lambrano, Gomez Contreras, Colina Garcia, and Diaz Salas. HHS-OIG, FBI Miami, USMS and MFCU investigated the case. Assistant U.S. Attorney Will J. Rosenzweig of the U.S. Attorney’s Office for the Southern District of Florida is prosecuting the case. Assistant U.S. Attorney Marx Calderon of the U.S. Attorney’s Office for the Southern District of Florida is handling asset forfeiture.
In U.S. v. Santiago Garcia Jorge, Case No. 24-20237-CR-Altman, Santiago Garcia Jorge, 49, of Land O’ Lakes, Fla., was charged by indictment with conspiracy to commit money laundering and money laundering for his role in distributing the proceeds of a fraudulent DME company. The indictment alleges that in connection with his role as the president and registered agent of Gold Medical Supply Inc., a company that submitted false and fraudulent claims to Medicare and Medicaid in the approximate amount of $7,498,260 and was paid approximately $1,402,478 by Medicare and Medicaid, Garcia Jorge transferred approximately $1,384,875 of the fraud proceeds to shell companies located in the Southern District of Florida. Garcia Jorge did so by writing approximately $174,990 in checks directly to those shell companies, but also by transferring approximately $1,209,855 to three other Gold Medical bank accounts that he controlled before then transferring them to the same shell companies. HHS-OIG, FBI Miami and MFCU investigated the case. Assistant U.S. Attorney Will J. Rosenzweig of the U.S. Attorney’s Office for the Southern District of Florida is prosecuting the case. Assistant U.S. Attorney Marx Calderon of the U.S. Attorney’s Office for the Southern District of Florida is handling asset forfeiture.
In U.S. v. Jorge Acosta, Case No. 24-20270-CR-Gayles, Jorge Acosta, 55, of Land O’ Lakes, Fla., was charged by information with conspiracy to commit health care fraud in connection with an alleged scheme to defraud various private insurance plans. According to the information, Acosta was a licensed physical therapist who worked at Phoenix Rehab Center Corp., a medical clinic based in Miami. Acosta’s co-conspirators offered and paid kickbacks to patient recruiters in exchange for referring beneficiaries of Administrative Services Only (ASO) corporate insurance plans, held by employers JetBlue Airways and AT&T Inc. and administered by Blue Cross Blue Shield (BCBS), to Phoenix Rehab for various forms of physical therapy treatments that they did not need and in many cases never received. Acosta falsified and backdated claims forms for submission to BCBS that falsely and fraudulently represented that various health care benefits had been provided by Phoenix Rehab to beneficiaries of BCBS and ASO insurance plans managed by BCBS. FBI Miami investigated this case. Assistant U.S. Attorney Will J. Rosenzweig of the U.S. Attorney’s Office for the Southern District of Florida is prosecuting the case. Assistant U.S. Attorney Marx Calderon of the U.S. Attorney’s Office for the Southern District of Florida is handling asset forfeiture.
In U.S. v. Omar Cabrera Hernandez, Case No. 24-20245-CR-Damian, Omar Cabrera Hernandez, 55, of Miami, Fla., was charged by information with conspiracy to offer and pay health care kickbacks to patients. Hernandez, as the administrator of the clinic Advanced Community Wellness Center, Inc. in Hialeah, Fla., participated in a conspiracy to pay patients illegal kickbacks to attend psychosocial rehabilitation services at the clinic which were then billed to Medicaid. This conduct resulted in an improper benefit of at least $400,597 and submission of claims to Medicaid totaling over approximately $3.5 million. HHS-OIG Miami, FBI Miami and MFCU investigated the case. Assistant U.S. Attorney Timothy Abraham of the U.S. Attorney’s Office for the Southern District of Florida is prosecuting it. Assistant U.S. Attorney Emily Stone of the U.S. Attorney’s Office for the Southern District of Florida is handling asset forfeiture.
In U.S. v. Yordany Rivera Bermudez, Case No. 24-20256-CR-Damian, Yordany Rivera Bermudez, 35, of Ft. Myers, Fla., was charged by indictment with health care fraud in connection with a scheme to defraud Medicare and Medicaid of nearly $3 million for DME that was never supplied to Medicare beneficiaries and Medicaid recipients. As alleged in the indictment, Rivera Bermudez was the president and operator of Acqualina Health Medical Solutions Inc. (Acqualina), a company located in North Miami, Fla., that purported to provide DME to eligible Medicare and Medicaid recipients. In a ten-month period, Acqualina submitted approximately $2.9 million in allegedly fraudulent health care claims to Medicare and Medicaid for DME that Acqualina never provided, and that Medicare and Medicaid recipients never requested or needed. As a result, Medicare and Medicaid paid approximately $1.2 million to Acqualina. HHS-OIG, FBI Miami and MFCU investigated the case. Special Assistant U.S. Attorney Marc Canzio of the U.S. Attorney’s Office for the Southern District of Florida is prosecuting the case. Assistant U.S. Attorney Mitchell Hyman of the U.S. Attorney’s Office for the Southern District of Florida is handling asset forfeiture.
In U.S. v. Jorge Luis Pajon Rodriguez, Case No. 24-20260-CR-Williams, Jorge Luis Pajon Rodriguez, 58, of Miami, Fla., was charged by information with conspiracy to offer and pay health care kickbacks to patients in connection with a scheme to defraud Medicaid. As alleged in the information, Pajon Rodriguez, as the owner of the Miami clinic Gables Community Wellness Center, Inc., participated in a conspiracy to pay patients illegal kickbacks to attend psychosocial rehabilitation services at the clinic which were then billed to Medicaid. This conduct resulted in an improper benefit of at least $1,338,184 and approximately $6 million in claims to Medicaid. HHS-OIG Miami, FBI Miami and MFCU investigated the case. Assistant U.S. Attorney Timothy Abraham of the U.S. Attorney’s Office for the Southern District of Florida is prosecuting it. Assistant U.S. Attorney Emily Stone of the U.S. Attorney’s Office for the Southern District of Florida is handling asset forfeiture.
In U.S. v. Yoan Manuel Sanchez Cardet, et al., Case No. 24-60112-CR-Leibowitz, Yoan Manuel Sanchez Cardet, 34, of Homestead, Fla., and Alain Cabrera Marquez, 48, of Austin, Tex., were charged by indictment with conspiracy to commit health care fraud and wire fraud in connection with an alleged scheme to fraudulently obtain more than $3.2 million in Medicare funds. According to the indictment, Sanchez Cardet was involved in arranging the purchase of a DME company, PRNX Medical Supply Corp., that was acquired for the sole purpose of submitting fraudulent claims to Medicare. According to the indictment, Sanchez Cardet was also involved in installing Cabrera Marquez as the sole listed officer of PRNX Medical who signed relevant documents on behalf of the company, in order to conceal the identities of the beneficial owners of the company. FBI and HHS-OIG investigated the case. Assistant U.S. Attorney Aimee C. Jimenez of the U.S. Attorney’s Office for the Southern District of Florida is prosecuting it. Assistant U.S. Attorney Daren Grove of the U.S. Attorney’s Office for the Southern District of Florida is handling asset forfeiture.
In U.S. v. Daniel David Espinoza, Case No. 24-60105-CR-Singhal, Daniel David Espinoza, 55, of Parkland, Fla., was charged by information with conspiracy to commit money laundering for allegedly laundering illegal proceeds derived from a health care fraud scheme. According to the information, five DME companies received approximately $5 million from Medicare for the submission of false and fraudulent claims for DME that they did not actually provide and/or was not medically necessary. Espinoza then laundered approximately $3.4 million of those fraud proceeds, primarily through his own company, Danoza Enterprises, and disbursed the proceeds to himself, his family, and others involved in the fraud. FBI and HHS-OIG investigated the case. Assistant U.S. Attorney Aimee C. Jimenez of the U.S. Attorney’s Office for the Southern District of Florida is prosecuting it. Assistant U.S. Attorney Daren Grove of the U.S. Attorney’s Office for the Southern District of Florida is handling asset forfeiture.
In U.S. v. Justin Blair and Trevor Blair, Case No. 24-cr-80074-Middlebrooks, Justin Blair, 34, and Trevor Blair, 30, both of Boca Raton, Fla,, were charged by indictment with conspiracy to defraud the United States and to receive health care kickbacks, solicitation and receipt of kickbacks in connection with a federal health care program, conspiracy to commit money laundering, and money laundering in connection with an alleged kickback scheme involving a laboratory based in Texas. As alleged in the indictment, Justin Blair and Trevor Blair were partners in PIC Group 21, LLC (PIC Group), a call center that conducted deceptive telemarketing to persuade Medicare beneficiaries and their doctors to order genetic tests. PIC Group allegedly sold signed orders to the lab, which billed Medicare more than $3.5 million based on the orders from PIC Group. PIC Group allegedly received more than $2.5 million in kickbacks and laundered the proceeds through entities controlled by the defendants. HHS-OIG and FBI investigated the case. The case is being prosecuted by Trial Attorney Owen Dunn of the Florida Strike Force. Assistant U.S. Attorney Mitchell Hyman of the U.S. Attorney’s Office for the Southern District of Florida is handling asset forfeiture.
In U.S. v. Enrique Perez-Paris et al., Case No. 24-cr-20155-Ruiz, Enrique Perez-Paris, 47, of Aventura, Fla.; Diego Sanudo Sanchez Chocron, 47, of Venice, Calif.; Gregory Charles “Milo” Caskey, 57, of San Antonio, Tex.; Omar Palacios, 34, of Miami, Fla.; and Nadir Perez, 26, of Miami, Fla., were charged by superseding indictment with conspiracy to commit health care fraud, health care fraud, conspiracy to defraud the United States and to pay and receive health care kickbacks, and conspiracy to commit money laundering in connection with an alleged $65 million scheme to bill health care benefit programs, including Medicare and the Health Resources and Services Administration COVID-19 Uninsured Program, for medically unnecessary and otherwise non-reimbursable COVID-19 and genetic testing. Palacios and Perez were also charged with receipt of kickbacks in connection with a federal health care program. As alleged in the superseding indictment, Perez-Paris, Sanchez, and Caskey owned Innovative Genomics, an independent clinical laboratory in San Antonio. Perez-Paris, Sanchez, and Caskey paid kickbacks and bribes to physicians and patient recruiters, including Palacios and Perez, to generate orders for COVID-19 and genetic testing that Innovative Genomics would use to support false and fraudulent claims for reimbursement. The defendants also caused health care benefit programs to be billed for COVID-19 testing that the Food and Drug Administration had not approved for emergency-use authorization. The defendants further caused Medicare to be billed for genetic testing that patients did not need, that was procured by payments made directly to physicians, and that Innovative Genomics did not process. HHS-OIG and FBI investigated the case. Trial Attorney Reginald Cuyler Jr. of the Florida Strike Force is prosecuting the case. Assistant U.S. Attorney Marx Calderon of the U.S. Attorney’s Office for the Southern District of Florida is handling asset forfeiture.
In U.S. v. Adam Brosius, et al., Case No. 24-cr-20255-Dimitrouleas, Adam Brosius, 59, of Delray Beach, Fla., and Patrick Boyd, 43, and Charles Boyd, 46, both of Easton, Md. were charged by indictment with conspiracy to introduce into interstate commerce adulterated and misbranded drugs and to defraud the United States; introducing into interstate commerce misbranded drugs; conspiracy to traffic in medical products with false documentation; conspiracy to commit wire fraud; and wire fraud. As alleged in the indictment, Patrick Boyd and Charles Boyd were the owners of Safe Chain Solutions LLC (Safe Chain), a wholesale distributor of pharmaceutical drugs. Brosius was a part owner of Safe Chain and the owner of Worldwide Pharma Sales Group, Inc., which helped Safe Chain locate suppliers of HIV drugs and pharmacy customers to purchase HIV drugs. According to the indictment, Safe Chain purchased more than $90 million of heavily discounted and diverted prescription drugs, primarily HIV medication, from five black-market suppliers. These diverted HIV drugs were often acquired through unlawful “buyback” schemes, in which previously dispensed bottles of prescription drugs were purchased from patients. The drugs were then resold to Safe Chain with falsified documentation designed to conceal the true source of the medications. After purchasing HIV medication from the black-market suppliers, the defendants sold the diverted drugs to pharmacies throughout the country. Pharmacies then dispensed these diverted HIV medications to unsuspecting patients. At times, patients received bottles labeled as their prescription medication, but the bottles contained a different drug entirely, with one patient passing out and remaining unconscious for 24 hours after taking an anti-psychotic drug thinking it was his prescribed HIV medication. FBI and HHS-OIG investigated the case. The case is being prosecuted by Trial Attorneys Alexander Thor Pogozelski of the Market Integrity and Major Frauds Unit and Jacqueline DerOvanesian of the Florida Strike Force. Assistant U.S. Attorney Jorge Delgado of the U.S. Attorney’s Office for the Southern District of Florida is assisting with asset forfeiture.
In U.S. v. Alicia Hiller, Case No. 24-80079-CR-Rosenberg, Alicia Hiller, 45, of Pompano Beach, Fla., was charged by indictment with conspiracy to commit wire fraud and health care fraud, and health care fraud, in connection with her role in an unlawful scheme to defraud Medicare by submitting false and fraudulent claims for medically unnecessary DME. As alleged in the indictment, Hiller was the owner of Lifeline Recruiting, Inc. (Lifeline), which she used to pay medical providers to sign prescriptions for DME, even though the providers were not reviewing the beneficiaries’ medical records and were not making an actual assessment of medical necessity. Hiller described these providers as “happy clickers” or “auto-clickers.” Those prescriptions were then used to submit false and fraudulent claims to Medicare for the medically unnecessary DME. As a result of the scheme, Medicare paid more than $40 million on the false and fraudulent claims. HHS-OIG and FBI investigated the case. Trial Attorney Raymond Beckering III of the National Rapid Response Strike Force is prosecuting the case. Assistant U.S. Attorney Emily Stone of the U.S. Attorney’s Office for the Southern District of Florida is assisting with asset forfeiture.
In U.S. v. Wesley Jackson, Case No. 24-cr-20269-Smith, Wesley Jackson, 28, of Long Island City, N.Y., was charged by information with health care fraud in connection with an alleged scheme to fraudulently bill Medicare for over $2.1 million for medically unnecessary orthotic braces, using sham contracts and invoices to disguise the payments. According to the information, Jackson, the owner of a marketing company called Jackson Media LLC, sold doctors’ orders for medically unnecessary orthotic braces to DME suppliers in exchange for kickbacks and bribes. HHS-OIG and MFCU investigated the case. The case is being prosecuted by Trial Attorney Jacqueline DerOvanesian of the Florida Strike Force. Assistant U.S. Attorney Jorge Delgado of the U.S. Attorney’s Office for the Southern District of Florida is assisting with asset forfeiture.
In U.S. v. Ryan Michael Pattrin, Case No. 24-cr-60109-Leibowitz, Ryan Michael Pattrin, 48, of Fort Lauderdale, Fla., was charged by indictment with conspiracy to commit health care fraud and wire fraud, conspiracy to defraud the United States and to pay and receive health care kickbacks, and solicitation and receipt of kickbacks. According to the indictment, Pattrin was one of the owners of Infinity Medical Supply LLC, a DME company that billed Medicare for medically unnecessary DME based on doctors’ orders procured through illegal kickbacks and bribes. The indictment also alleges that Pattrin was one of the owners of National Health Care Advocates LLC, a purported marketing company that referred doctors’ orders for DME to DME companies in exchange for illegal kickbacks and bribes. The indictment alleges that Pattrin and his co-conspirators caused DME companies, including Infinity, to submit over $7.9 million in false and fraudulent claims to Medicare. HHS-OIG and FBI investigated the case. The case is being prosecuted by Trial Attorney Andrea Savdie of the Florida Strike Force. Assistant U.S. Attorney G. Raemy Charest-Turken of the U.S. Attorney’s Office for the Southern District of Florida is handling asset forfeiture.
In U.S. v. Michael Cascone, Case No. 24-cr-20243-Singhal, Michael Cascone, 31, of Delray Beach, Fla., was charged by information with conspiracy to commit health care fraud. According to the information, Cascone owned two DME companies, Limitless Medical Supplies, LLC and Your Medical Supply Co, LLC, that paid illegal kickbacks and bribes to a purported marketing company in exchange for referring beneficiaries and doctors’ orders for DME that was medically unnecessary and ineligible for reimbursement by Medicare. The information alleges that through Limitless Medical Supplies, LLC and Your Medical Supply Co, LLC, Cascone submitted approximately $3,493,466 in false and fraudulent claims for reimbursement from Medicare. HHS-OIG and FBI investigated the case. The case is being prosecuted by Trial Attorney Andrea Savdie of the Florida Strike Force. Assistant U.S. Attorney G. Raemy Charest-Turken of the U.S. Attorney’s Office for the Southern District of Florida is handling asset forfeiture.
In U.S. v. Angelica Pacheco, Case No. 24-cr-20253-Becerra, Angelica Pacheco, 37, of Hialeah, Fla., was charged by indictment with conspiracy to commit health care fraud and wire fraud, health care fraud, and wire fraud in a sober home scheme involving $19.2 million billed to private insurers. Pacheco owned and operated Florida Life Recovery and Rehabilitation LLC (Florida Life) which purportedly provided several levels of outpatient substance abuse care. As alleged in the indictment, Pacheco submitted or caused the submission of false and fraudulent claims to private insurers for therapy services that were not provided, or were not provided as billed, and excessive and medically unnecessary urinalyses that were not factored into patient treatment. The indictment further alleges that Pacheco fraudulently obtained Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL) loans on behalf of Florida Life by falsely certifying that the company was not engaged in any illegal activities. In November 2023, Pacheco was elected to the City Council for the City of Hialeah. FBI investigated this case. The case is being prosecuted by Assistant Chief James Hayes of the National Rapid Response Strike Force and Trial Attorney Aisha Schafer Hylton of the Florida Strike Force. Assistant U.S. Attorney Joshua Paster of the U.S. Attorney’s Office for the Southern District of Florida is handling asset forfeiture.
In U.S. v. Smith et al., Case No. 24-cr-20268-Becerra, Deborah Smith, 62, of Hialeah, Fla., and Mabel de la Caridad Rodriguez Brito, 53, of Miami, Fla., were charged by information with conspiracy to commit health care fraud in connection with an alleged scheme to fraudulently obtain over $58,000 in Medicare funds. According to the information, Smith and Rodriguez were employees at a medical facility, and sold Medicare patient information in exchange for cash. That patient information was later used to submit false and fraudulent claims to Medicare for durable medical equipment that was never provided and/or was medically unnecessary and ineligible for reimbursement by Medicare. HHS-OIG and FBI investigated the case. The case is being prosecuted by Trial Attorney Jessica A. Massey of the Florida Strike Force and Health Care Fraud Unit Assistant Chief Emily Gurskis. Assistant U.S. Attorneys G. Raemy Charest-Turken and Jorge Delgado of the U.S. Attorney’s Office for the Southern District of Florida are handling asset forfeiture.
In U.S. v. Betscy Kurian, Case No. 24-cr-60114-Singhal, Betscy Kurian, 59, of Coral Springs, Fla., was charged by information with conspiracy to distribute and dispense controlled substances, in connection with a scheme to dispense controlled substances, primarily oxycodone. As alleged in the information, Kurian, a pharmacist, dispensed oxycodone knowing that these prescriptions were not written in the course of professional practice for a legitimate medical purpose. HHS-OIG and FBI investigated the case. The case is being prosecuted by Trial Attorney Jacqueline DerOvanesian of the Florida Strike Force. Assistant U.S. Attorney Jorge Delgado of the Southern District of Florida is handling asset forfeiture.
In U.S. v. Lianet Sacerio, Case No. 24-20267-CR-Ruiz, Lianet Sacerio, 38, of Miami, Fla., was charged by information with obstruction of criminal investigations of health care offenses. As charged in the information, from March 2022 through March 2023, Sacerio made false representations to law enforcement agents regarding her own knowledge, involvement, and financial interest in health care fraud offenses under investigation. FBI Miami investigated the case. Assistant U.S. Attorneys Joseph Egozi and Lindsey Lazopoulos Friedman of the Southern District of Florida are prosecuting it. Assistant U.S. Attorney Joshua Paster of the Southern District of Florida is handling asset forfeiture.
A complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov.
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National Health Care Fraud Enforcement Action Results in 193 Defendants Charged and over $2.75 Billion in False ClaimsRead the Press Release
DETROIT - Today, United States Attorney Dawn N. Ison announced criminal charges against six defendants in connection with alleged schemes to defraud Medicare. The charges filed in federal court in Detroit are part of the Justice Department’s 2024 National Health Care Fraud Enforcement Action.
“It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company, if you profit from the unlawful distribution of controlled substances, you will be held accountable,” said Attorney General Merrick B. Garland. “The Justice Department will bring to justice criminals who defraud Americans, steal from taxpayer-funded programs, and put people in danger for the sake of profits.”
“Medicare is an essential safety net for seniors and individuals with disabilities. The Department of Justice and my office are committed to investigating and prosecuting those who steal taxpayer funds intended to protect vulnerable members of our community,” said United States Attorney Dawn N. Ison.
“We will not tolerate fraud that preys on patients who need and deserve high quality health care,” said the Honorable Christi A. Grimm, the Department of Health and Human Services Inspector General (HHS-OIG). “The hard work of the HHS-OIG team and our outstanding law enforcement partners makes today’s action possible. We must protect taxpayer dollars and keep Americans safe from harms to their health, privacy, and financial well-being.”
The charges announced today by U.S. Attorney Ison are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 147 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.5 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the government, in connection with the enforcement action, seized over $150 million in cash, luxury vehicles, gold, and other assets.
The Eastern District of Michigan, in particular, worked with the Department’s Criminal Division and the following law enforcement organizations to investigate and prosecute the cases filed during the enforcement period: the Department of Health and Human Services Office of Inspector General (HHS-OIG) and the Federal Bureau of Investigation.
The following individuals have been charged in the Eastern District of Michigan:
• Ibrahim Sammour, 63, and Bashier Sammour, 28, of Wayne County, Michigan, were charged by indictment with conspiracy to pay illegal kickbacks, Ibrahim Sammour was additionally charged with conspiracy to commit health care fraud and health care fraud, and Bashier Sammour was additionally charged with making false statements relating to health care matters, all in connection with an alleged scheme to fraudulently obtain over $2 million from Medicare. According to charging documents, the Sammours operated Individualized Home Health Care, P.C., through which they submitted false and fraudulent claims to Medicare for home health care services that were medically unnecessary, not provided as represented, or not rendered. Five others were also charged by information—two registered nurses, two group home owners, and a licensed practical nurse—for their involvement in the charged conspiracies. The case is being prosecuted by Trial Attorneys Shankar Ramamurthy and Jeff Crapko of the Midwest Strike Force.
• Yvette Hardy, 60, of Wayne County, Michigan, was charged by information with health care fraud in connection with an alleged scheme to fraudulently obtain over $3.4 million in Medicare funds. According to the information, Hardy, who owned and operated Pebble Brook Care Agency LLC, caused the submission of false and fraudulent claims to Medicare for psychotherapy services that were not provided as represented or not rendered at all. The case is being prosecuted by Trial Attorney Shankar Ramamurthy of the Midwest Strike Force.
• Ruby Scott, 53, of Oakland County, Michigan, was charged by indictment with a conspiracy to defraud the United States and to pay illegal health care kickbacks, as well as with paying illegal health care kickbacks, in connection with an alleged scheme to fraudulently obtain over $2.2 million in Medicare funds. According to the indictment, Scott, who owned and operated Delta Home Health Care LLC, caused the submission of claims to Medicare for home health care services obtained through the payment of illegal kickbacks to patient recruiters in violation of the Anti-Kickback Statute. The case is being prosecuted by Trial Attorneys Shankar Ramamurthy and Kelly Warner of the Midwest Strike Force.
• Dr. Vijil Rahulan, 52, of Hyderabad, India, was charged by indictment with conspiracy to commit heath care fraud and health care fraud, in connection with an alleged scheme to fraudulently obtain over $82 million in Medicare funds. As alleged in the indictment, Rahulan caused the submission of false and fraudulent claims for DME and genetic testing that were medically unnecessary or otherwise ineligible for reimbursement through Medicare because they were not the product of a doctor-patient relationship and examination. The indictment further alleges that the defendant’s fraudulent conduct resulted in over $28.7 million being paid by Medicare. The case is being prosecuted by Trial Attorneys Kelly Warner and Andres Almendarez of the Midwest Strike Force.
• Amro Sharafeldin, 40, of Michigan, was charged by criminal complaint with a scheme to violate the Anti-Kickback Statute and illegally purchase Medicare beneficiary information, in connection with Sharafeldin’s operation of Prestige Specialty Pharmacy (“Prestige”) in Sterling Heights, Michigan. As alleged in the complaint, Sharafeldin, through Prestige, agreed to pay kickbacks and bribes to illegally acquire Medicare beneficiary information, which he and others then used in February and March 2023 to bill Medicare more than $1 million for OTC COVID-19 tests, regardless of whether the Medicare beneficiary requested the test kits. The case is being prosecuted by Assistant U.S. Attorney Andrew Lievense of the U.S. Attorney’s office for the Eastern District of Michigan.
A complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.
National Health Care Fraud Enforcement Action Results in 193 Defendants Charged and over $2.75 Billion in False ClaimsRead the Press Release
BILLINGS — Today, U.S. Attorney Jesse Laslovich, for the District of Montana, announced criminal charges against a Whitefish physician in connection with alleged schemes to defraud Medicare and other government health program. The charges filed in federal court are part of the Justice Department’s 2024 National Health Care Fraud Enforcement Action. The charges stem from fraudulently charging Medicare and other government health programs for telemedicine office visits that did not occur.
“It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company, if you profit from the unlawful distribution of controlled substances, you will be held accountable,” said Attorney General Merrick B. Garland. “The Justice Department will bring to justice criminals who defraud Americans, steal from taxpayer-funded programs, and put people in danger for the sake of profits.”
“As alleged, the defendant, Ronald David Dean, falsely billed Medicare and other health programs so he could enrich himself by diverting government health care funds meant to help elderly and disabled persons. Specifically, we allege he billed for telemedicine visits that did not occur and signed orders for durable medical equipment and covid-19 tests patients did not need, all of which resulted in over $39 million in false billing. As this action shows, we are committed to aggressively investigating and prosecuting those who try to defraud our health care programs,” U.S. Attorney Laslovich said.
An information charging Dean, along with a plea agreement, was filed on June 24. An arraignment and plea hearing are scheduled for July 17 in U.S. District Court in Missoula.
The charges announced today by U.S. Attorney Laslovich are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 193 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.75 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the Government, in connection with the enforcement action, seized over $231 million in cash, luxury vehicles, gold, and other assets.
The Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices for the Southern District of Alabama, District of Arizona, Central District of California, Northern District of California, Southern District of California, District of Connecticut, Middle District of Florida, Southern District of Florida, Northern District of Illinois, Eastern District of Kentucky, Western District to Kentucky, Eastern District of Louisiana, Middle District of Louisiana, Western District of Louisiana, Eastern District of Michigan, Western District of Michigan, Southern District of Mississippi, District of Montana, District of New Jersey, Eastern District of New York, Eastern District of North Carolina, Western District of Oklahoma, District of Rhode Island, Eastern District of Tennessee, Middle District of Tennessee, Eastern District of Texas, Northern District of Texas, Southern District of Texas, Eastern District of Virginia, Western District of Virginia, Southern District of West Virginia, and Eastern District of Wisconsin; and State Attorney Generals’ Offices for Arizona, California, Illinois, Indiana, Louisiana, New York, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, and South Dakota are prosecuting the cases in the National Enforcement Action, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.
The District of Montana, in particular, worked with the Department’s Criminal Division and the following law enforcement organizations to investigate and prosecute the cases filed during the enforcement period: the Department of Health and Human Services Office of Inspector General (HHS-OIG), Department of Veterans Affairs Office of Inspector General (VA-OIG) and Railroad Retirement Board Office of Inspector General.
“We will not tolerate fraud that preys on patients who need and deserve high quality health care,” said the Honorable Christi A. Grimm, the Department of Health and Human Services Inspector General (HHS-OIG). “The hard work of the HHS-OIG team and our outstanding law enforcement partners makes today’s action possible. We must protect taxpayer dollars and keep Americans safe from harms to their health, privacy, and financial well-being.”
“The defendant’s agreement to plead guilty will hold him accountable for his fraudulent actions and reflects the magnitude of the crime committed against CHAMPVA and Medicare,” said Acting Special Agent in Charge Molly King of the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “The VA OIG’s continued oversight of VA’s multiple healthcare programs is one of the agency’s highest priorities. We thank our law enforcement partners for their efforts in this joint investigation.”
The following individual has been charged in the District of Montana:
Ronald David Dean, 64, of Whitefish, Montana, a licensed physician, was charged by information with conspiracy to commit wire fraud in connection with a telemedicine scheme. As alleged in the information, Dean was paid by a telemedicine company to sign orders for durable medical equipment that patients did not need. Dean then fraudulently charged Medicare and other government health programs for telemedicine office visits that did not occur. The telemedicine company also used Dean’s information to prescribe unneeded and unnecessary covid tests to patients. In total, Dean’s order resulted in false billing to government health care programs of over $39 million. The U.S. Attorney’s Office for the District of Montana is prosecuting the case.
A complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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National Health Care Fraud Enforcement Action Results in 193 Defendants Charged and over $2.75 Billion in False ClaimsRead the Press Release
NEWARK, N.J. – Today, U.S. Attorney Philip R. Selliniger, District of New Jersey, announced criminal charges against 13 defendants in connection with alleged schemes to defraud Medicare, Medicaid, TRICARE, and private health insurers. The charges filed in federal court are part of the Department of Justice’s 2024 National Health Care Fraud Enforcement Action.
“It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company, if you profit from the unlawful distribution of controlled substances, you will be held accountable,” said Attorney General Merrick B. Garland. “The Justice Department will bring to justice criminals who defraud Americans, steal from taxpayer-funded programs, and put people in danger for the sake of profits.”
U.S. Attorney Philip R. Sellinger“Patients rely on Medicare and other health insurers to cover the costs of necessary care, and the system is built on trust. Health care providers and others who take advantage of that system through fraud or illegal kickbacks reap unwarranted profits and undermine the system. The cases announced today – part of a nationwide action against 193 defendants allegedly resulting in over $2.75 billion in alleged false billings, and the seizure of over $231 million in cash, luxury vehicles, gold and other assets – allege a variety of misconduct, but they all seek to hold accountable those who put profits over patients. Along with our law enforcement partners, this office is committed to safeguarding Medicare and the health care system from fraud and illegal kickback schemes.”
The charges announced today by U.S. Attorney Sellinger are part of a strategically coordinated, two-week nationwide law enforcement action.
The Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices for the District of New Jersey, the Southern District of Alabama, District of Arizona, Central District of California, Northern District of California, Southern District of California, District of Connecticut, Middle District of Florida, Southern District of Florida, Northern District of Illinois, Eastern District of Kentucky, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, Western District of Louisiana, Eastern District of Michigan, Western District of Michigan, Southern District of Mississippi, District of Montana, Eastern District of New York, Southern District of New York, Eastern District of North Carolina, Western District of Oklahoma, District of Rhode Island, Middle District of Tennessee, Northern District of Texas, Southern District of Texas, Eastern District of Tennessee, Eastern District of Virginia, and Southern District of West Virginia; and the State Attorney Generals’ Offices for California, New York, Pennsylvania, Puerto Rico, Rhode Island, and South Dakota are prosecuting the cases in the National Enforcement Action, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of each case involved in today’s enforcement action are available on the Department's website here.
The District of New Jersey worked with the Department’s Criminal Division and other law enforcement organizations to investigate and prosecute the cases filed during the enforcement period.
“We will not tolerate fraud that preys on patients who need and deserve high quality health care,” said the Honorable Christi A. Grimm, the Department of Health and Human Services Inspector General (HHS-OIG). “The hard work of the HHS-OIG team and our outstanding law enforcement partners makes today’s action possible. We must protect taxpayer dollars and keep Americans safe from harms to their health, privacy, and financial well-being.”
“The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General, is fully committed to working with our law enforcement partners and the Justice Department to hold those who engage in fraudulent activity at the expense of the U.S. military accountable for their actions,” Acting Special Agent-in-Charge Brian J. Solecki of the DCIS Northeast Field Office, said. “Protecting the integrity of the healthcare system utilized by our military members and their families is of the utmost importance and continues to be a top priority for DCIS.”
“We remain fully committed to bringing justice to those who steal from Amtrak’s resources, including these current and former Amtrak employees accused of defrauding Amtrak’s health care plans,” Amtrak’s Inspector General, Kevin H. Winters, said. “The alleged actions by these employees and health care providers drained millions in Amtrak’s funds – resources ultimately provided by American taxpayers – and we hope these charges will serve as a deterrent for those considering engaging in such schemes. Anyone who suspects or observes such fraud should report it to our investigators via our fraud, waste, and abuse hotline.”
The following individuals have been charged in District of New Jersey:
- Kimberlee Otero, 47, of Camden, New Jersey, was charged by information with conspiracy to unlawfully distribute and possess with intent to distribute a controlled substance. The case is being prosecuted by Trial Attorney Nicholas K. Peone of the Northeast Strike Force and Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office for the District of New Jersey.
- Hyunji Choi, aka “Regina Choi,” aka “Regina Beatrice,” 39, of Woodside, New York, was charged by information with conspiracy to commit health care fraud in connection with a scheme to defraud the Amtrak health care plan. As alleged in the information, Choi, a medical biller, submitted false and fraudulent claims to the Amtrak health care plan for services that were not provided, resulting in loss to the Amtrak health care plan of at least approximately $959,902.79. Choi paid cash bribes and kickbacks to co-conspirator Amtrak employees, in return for the employees’ agreement to allow their insurance to be used for false billing. The case is being prosecuted by Assistant U.S. Attorneys Katherine M. Romano and Jessica R. Ecker of the U.S. Attorney’s Office for the District of New Jersey.
- Timothy Bogen, 59, of Hamden, Connecticut, Kevin Frink, 52, of Willingboro, New Jersey, Dion Jacob, 50, of Brooklyn, New York, Quinton Johnson, 52, of Irvington, New Jersey, David Lonergan, 64, of Rockaway Park, New York, David McBrien, 36, of Levittown, Pennsylvania, Gregory Richardson, 34, of Roosevelt, New York, Rodolfo Rivera, 41, of Clayton, Delaware, Michael Toal, 34, of Hazlet, New Jersey, and Damany Walker, 41, of Irvington, New Jersey, were charged by indictment with conspiracy to commit health care fraud in connection with a scheme to defraud the Amtrak health care plan, which resulted in a loss of approximately $11,054,831 to Amtrak. The defendants were Amtrak employees and participants in the Amtrak health care plan who allowed their personal and insurance information, and in some cases that of their dependents, to be used for false and medically unnecessary billing in return for cash kickbacks and bribes paid by co-conspirator health care providers. The case is being prosecuted by Assistant U.S. Attorneys Katherine M. Romano and Jessica R. Ecker of the U.S. Attorney’s Office for the District of New Jersey.
- Elise Nocella, 54, of Naples, Florida, was charged by information with conspiring to violate the Anti-Kickback Statute by paying kickbacks for DME orders. As alleged in the information, Nocella, who owned and operated a marketing company that marketed DME, offered and paid physicians at a pain management practice kickbacks in exchange for DME orders. Nocella supplied the physicians with a variety of expensive items, including cash, full-season access to a suite for professional football games, expensive lunches and dinners at networking events and practice group meetings, and other expensive gifts, and subsequently billed Medicare and other health care benefit programs for the orders. The case is being prosecuted by Assistant U.S. Attorney DeNae Thomas of the U.S. Attorney’s Office for the District of New Jersey.
A complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
National Health Care Fraud Enforcement Action Results in 193 Defendants Charged and over $2.75 Billion in False ClaimsRead the Press Release
CHARLOTTESVILLE, Va. – The Justice Department today announced the 2024 National Health Care Fraud Enforcement Action, which resulted in criminal charges against 193 defendants, including 76 doctors, nurse practitioners, and other licensed medical professionals in 32 federal districts across the United States, for their alleged participation in various health care fraud schemes involving approximately $2.75 billion in intended losses and $1.6 billion in actual losses.
In connection with the coordinated nationwide law enforcement action, and together with federal and state law enforcement partners, the government seized over $231 million in cash, luxury vehicles, gold, and other assets.
“It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company, if you profit from the unlawful distribution of controlled substances, you will be held accountable,” said Attorney General Merrick B. Garland. “The Justice Department will bring to justice criminals who defraud Americans, steal from taxpayer-funded programs, and put people in danger for the sake of profits.”
“The extraordinary Special Agents of Homeland Security Investigations (HSI) were proud to play an integral role in this multi-agency investigation and national takedown of healthcare fraud,” said Secretary of Homeland Security Alejandro N. Mayorkas. “Through this action, we in federal law enforcement send a clear and strong message—that we will hold accountable those health care providers and prescribers who prey on their patients for profit and disregard the first rule of medical care: do no harm.”
“Healthcare fraud victimizes patients, endangers the health of vulnerable people, and plunders healthcare programs,” said FBI Director Christopher Wray. “This wide-ranging collaboration demonstrates the FBI’s commitment to rooting out predatory healthcare fraud, protecting patients, and ensuring critical healthcare funds go where they are needed most.”
The charges alleged include over $900 million fraud scheme committed in connection with amniotic wound grafts; the unlawful distribution of millions of pills of Adderall and other stimulants by five defendants associated with a digital technology company; an over $90 million fraud committed by corporate executives distributing adulterated and misbranded HIV medication; over $146 million in fraudulent addiction treatment schemes; over $1.1 billion in telemedicine and laboratory fraud; and over $450 million in other health care fraud and opioid schemes.
“Health care fraud affects every American,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “It siphons off hard-earned tax dollars meant to provide care for the vulnerable and disabled. In doing so, it also raises the cost of care for all patients. Even worse, as the prosecutions we announce today underscore, health care fraud can harm patients and fuel addiction. The Criminal Division is committed to rooting out health care fraud, wherever it may be found, no matter who commits it. And we are using more tools than ever before to uncover misconduct and hold wrongdoers to account, whether they are executives in corner offices or doctors who violate their oaths.”
Today’s enforcement action was led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section and its core partners: U.S. Attorneys’ Offices, the Department of Health and Human Services Office of Inspector General (HHS-OIG), FBI, and Drug Enforcement Administration (DEA). The cases were investigated by agents from the division’s core partner agencies along with other federal and state law enforcement agencies. The cases are being prosecuted by Health Care Fraud Strike Force teams from the Criminal Division’s Fraud Section, 32 U.S. Attorneys’ Offices nationwide, and 11 State Attorney Generals’ Offices.
“This work is important to the Department of Health and Human Services (HHS) and the millions of Americans we serve. HHS vigorously pursues anyone who commits fraud against our health care programs. But it takes all of us, working together, to be successful,” said HHS Deputy Secretary Andrea Palm. “Those who steal from these programs are stealing from the American families who rely on them and putting patients at risk. We won’t stop until all those who try to defraud the federal government are caught and held accountable.”
“We will not tolerate fraud that preys on patients who need and deserve high quality health care,” said the HHS-OIG Inspector General Christi A. Grimm. “The hard work of the HHS-OIG team and our outstanding law enforcement partners makes today’s action possible. We must protect taxpayer dollars and keep Americans safe from harms to their health, privacy, and financial well-being.”
Amniotic Wound Grafts
Charges were filed in the District of Arizona against four individuals who allegedly filed $900 million in false and fraudulent claims to Medicare for amniotic wound grafts used on Medicare patients. As alleged, the defendants targeted elderly Medicare patients, many of whom were terminally ill. The defendants caused medically unnecessary and expensive amniotic grafts to be applied to these vulnerable patients’ wounds indiscriminately, without coordination with the patients’ treating physicians and without proper treatment for infection, to superficial wounds that did not need this treatment, and in sizes that far exceeded the size of the wound. In just 16 months, Medicare paid two defendants more than $600 million as a result of their fraud scheme, paying on average more than a million dollars per patient for these unnecessary grafts. These two defendants owned wound care companies in Arizona and received more than $330 million in illegal kickbacks in exchange for purchasing the grafts billed to Medicare. In connection with the charges, the government seized over $70 million, including four luxury vehicles, gold, jewelry, and cash.
“Every dollar saved by investigating fraud is critical to the sustainability of the Medicare program and the needs of the people who depend on it,” said Administrator Chiquita Brooks-LaSure of the Centers for Medicare & Medicaid Services (CMS). “In addition to the actions taken by the Justice Department, CMS took 127 administrative actions in the last six months separately against providers for their alleged involvement in health care fraud schemes. We thank our partners at the Department of Justice and Department of Health and Human Services Office of Inspector General for working closely with us to identify, investigate, and eliminate waste, fraud, and abuse in our federal health care programs.”
Distribution of Adderall and Other Stimulants
Five additional defendants associated with digital technology company Done Global Inc. and its affiliated entity, Done Health P.C. (collectively, “Done”), were charged for the unlawful distribution of millions of Adderall pills. The CEO and Clinical President of Done were charged on June 13 in a scheme to distribute Adderall and other stimulants over the internet. The charges announced today include those against one of the most prolific prescribers working for Done, a Florida nurse practitioner who prescribed over 1.5 million pills of Adderall and other stimulants to patients across the United States. The indictment alleges that the nurse practitioner prescribed Adderall and other stimulants without interaction with patients, pursuant to Done’s “auto-refill” policy. This policy allowed patients to obtain continued prescriptions after an initial encounter without any further audio or visual interaction with a medical professional. This allegedly resulted in the nurse practitioner prescribing Adderall and other stimulants to individuals suffering from drug addiction and continuing to issue Adderall prescriptions for months after the overdose deaths of patients.
“DEA works tirelessly to protect the public from harm, be it cartels funneling fentanyl into our communities or medical providers caring more about profits than patients,” said DEA Administrator Anne Milgram. “The CEO and clinical director of Done Global Inc. are charged with over-prescribing millions of unneeded stimulant pills, potentially putting patients in danger and exacerbating the current stimulant medicine shortage. The seriousness of these actions should not be understated. DEA will continue to hold anyone accountable who endangers the health and well-being of Americans.”
Diverted HIV Medication
Three owners and executives of a wholesale distributor of pharmaceutical drugs were charged in connection with an alleged $90 million wire fraud conspiracy to introduce adulterated and misbranded HIV drugs into the market. The HIV drugs were allegedly acquired through unlawful “buyback” schemes in which previously dispensed bottles of prescription drugs were bought from vulnerable patients. The defendants allegedly purchased these drugs from the black market and resold them to pharmacies throughout the country with falsified documentation designed to conceal the true source of the medication. Pharmacies then dispensed these diverted HIV medications to unsuspecting patients. At times, patients received bottles labeled as their prescription medication, but the bottles contained a different drug entirely, with one patient passing out and remaining unconscious for 24 hours after taking an anti-psychotic drug thinking it was his prescribed HIV medication.
Addiction Treatment Cases
The addiction treatment cases announced today include charges filed in the District of Arizona and Southern District of Florida against four defendants in connection with more than $146 million of allegedly false and fraudulent claims for services for vulnerable patients seeking treatment for drug or alcohol addiction. As alleged in one of the indictments, one defendant paid kickbacks in exchange for the referral of patients recruited from the homeless population and Native American reservations. She then fraudulently billed Arizona Medicaid for substance abuse treatment services that were either never provided or were provided at a level that was so substandard that it failed to serve any treatment purpose. The defendant is charged with money laundering offenses for her lavish purchases with the fraud proceeds, as well as obstruction of justice for allegedly falsifying records in response to a grand jury subpoena for documents.
Telemedicine and Laboratory Fraud Cases
Thirty-six defendants were charged in connection with the submission of over $1.1 billion in fraudulent claims to Medicare resulting from telemedicine schemes. For example, in separate cases involving similar schemes that were perpetrated by different criminal networks in the Southern District of Texas, Northern District of Texas, and District of New Jersey, clinical laboratory owners allegedly paid illegal kickbacks and bribes, including to telemedicine companies, in exchange for the referral of orders for unnecessary genetic testing. The results of these genetic tests—which were supposed to detect genetic mutations that could indicate an elevated risk of cancer, cardiovascular disease, Parkinson’s disease, and other serious illness—were not used in the patients’ treatment. Other telemedicine schemes included the unsealing of a complaint in the Eastern District of Virginia against a psychiatrist who allegedly submitted fraudulent claims based on minimal patient interactions, including for visits that lasted between 10 to 30 seconds. The continued focus on prosecuting health care fraud schemes involving telemedicine reflects the Department’s commitment to rooting out these schemes, which has saved taxpayers billions of dollars.
Cases Involving the Illegal Prescription and Distribution of Opioids and Other Health Care Fraud Schemes
The other cases announced today charge 14 defendants with crimes related to the illegal prescription and distribution of opioids that resulted in millions in false billings, including several charges against medical professionals and others who prescribed unnecessary opioids, Suboxone, and other controlled substances.
An additional 126 defendants are charged with various other health care fraud schemes involving over $450 million in false and fraudulent claims to Medicare, Medicaid, and private insurance companies for treatments that were medically unnecessary or never provided. Ten defendants across the country were charged in connection with fraudulent COVID-19 testing, including an over $65 million scheme charged in the Southern District of Florida.
The Center for Program Integrity of the Centers for Medicare and Medicaid Services (CPI/CMS) separately announced today that it took adverse administrative actions in the last six months against 127 medical providers for their alleged involvement in health care fraud.
Principal Assistant Deputy Chief Jacob Foster, Assistant Chief Rebecca Yuan, and Trial Attorney Miriam L. Glaser Dauermann of the Health Care Fraud Unit of the Criminal Division’s Fraud Section led and coordinated today’s enforcement action. The cases are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices for the Southern District of Alabama, District of Arizona, Central District of California, Northern District of California, Southern District of California, District of Connecticut, Middle District of Florida, Southern District of Florida, Northern District of Illinois, Eastern District of Kentucky, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, Western District of Louisiana, Eastern District of Michigan, Western District of Michigan, Southern District of Mississippi, District of Montana, District of New Jersey, Eastern District of New York, Eastern District of North Carolina, Western District of Oklahoma, District of Rhode Island, Eastern District of Tennessee, Middle District of Tennessee, Eastern District of Texas, Northern District of Texas, Southern District of Texas, Eastern District of Virginia, Western District of Virginia, Southern District of West Virginia, and Eastern District of Wisconsin; and State Attorney Generals’ Offices for Arizona, California, Illinois, Indiana, Louisiana, New York, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, and South Dakota. The Health Care Fraud Unit’s Data Analytics Team used cutting-edge data analytics to identify and support the investigations that led to these charges.
In addition to the FBI, HHS-OIG, DEA, and CMS/CPI, HSI, IRS Criminal Investigation, Department of Veterans Affairs Office of Inspector General, Defense Criminal Investigative Service, Department of Labor, United States Postal Service Office of Inspector General, and other federal, state, and local law enforcement agencies participated in the operation. The Medicaid Fraud Control Units of the states of Arizona, California, Connecticut, Florida, Illinois, Indiana, Kentucky, Louisiana, New York, North Carolina, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, South Dakota, Tennessee, Texas, and Virginia also participated in the investigation of many of the federal and state cases announced today.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force. Prior to the charges announced as part of today’s nationwide enforcement action and since its inception in March 2007, the Health Care Fraud Strike Force, which operates in 27 districts, charged more than 5,400 defendants who collectively billed Medicare, Medicaid, and private health insurers more than $27 billion.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The following documents related to today’s announcement are available on the Health Care Fraud Unit website through these links:
- Graphics and Resources
- Case Descriptions
- Court Documents
National Health Care Fraud Enforcement Action Results in 193 Defendants Charged and over $2.75 Billion in False ClaimsRead the Press Release
KNOXVILLE, Tenn. – Today, U.S. Attorney Francis M. Hamilton III announced criminal charges against six defendants in connection with alleged schemes to defraud the U.S. Department of Labor, Office of Worker’s Compensation Program, Division of Energy Employees Occupational Illness Compensation (“DOL-DEEOIC”). The charges filed in federal court are part of the Justice Department’s 2024 National Health Care Fraud Enforcement Action. The charges stem from the submission, or causing the submission, of fraudulent claims for home health services that were not actually rendered.
The charges announced today by U.S. Attorney Hamilton are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 193 defendants for their alleged participation in health care fraud and opioid abuse schemes that, in the aggregate, resulted in the submission of over $2.75 billion in alleged false billings.
The DOJ Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices for the Southern District of Alabama, District of Arizona, Central District of California, Northern District of California, Southern District of California, District of Connecticut, Middle District of Florida, Southern District of Florida, Northern District of Illinois, Eastern District of Kentucky, Western District to Kentucky, Eastern District of Louisiana, Middle District of Louisiana, Western District of Louisiana, Eastern District of Michigan, Western District of Michigan, Southern District of Mississippi, District of Montana, District of New Jersey, Eastern District of New York, Eastern District of North Carolina, Western District of Oklahoma, District of Rhode Island, Eastern District of Tennessee, Middle District of Tennessee, Eastern District of Texas, Northern District of Texas, Southern District of Texas, Eastern District of Virginia, Western District of Virginia, Southern District of West Virginia, and Eastern District of Wisconsin; and State Attorney Generals’ Offices for Arizona, California, Illinois, Indiana, Louisiana, New York, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, and South Dakota are prosecuting the cases in the National Enforcement Action, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of each case involved in today’s enforcement action are available on the Department’s website at Case Descriptions.
The U.S. Attorney’s Office for the Eastern District of Tennessee, in particular, worked with the Federal Bureau of Investigation, the Department of Labor – Office of Inspector General, and the Tennessee Medicaid Fraud Control Unit.
In the United States District Court for the Eastern District of Tennessee, Caleb Mullins, 40, Megan Mullins, 37, both of Oak Ridge, Tennessee, and CAMM Care, LLC doing business as Patriot Homecare (“CAMM Care”), were charged by indictment in connection with an alleged scheme to defraud the DOL-DEEOIC. DOL-DEEOIC administers the health care benefit program designed to compensate current or former Department of Energy employees, vendors, contractors, and subcontractors diagnosed with occupational illnesses causally linked to toxic exposures during their employment. Among other health care benefits, this program provides home health benefits to qualifying beneficiaries, including skilled nursing care and non-skilled care. As alleged in the indictment, Caleb Mullins, the owner and President of CAMM Care, and Megan Mullins, the Executive Vice President of CAMM Care, conspired with each other and others not named in the indictment to create and submit fraudulent payment claims for homecare services that were not actually rendered.
Samantha Seiber (“Seiber”), 35, of Wartburg, Tennessee, Apryl Hard (“Hard”), 46, of Louisville, Tennessee, and Lois Hamby (“Hamby”), 62, of Oliver Springs, Tennessee, were also charged in separate indictments with defrauding the DOL-DEEOIC. As alleged in the respective indictments, Seiber, Hard, and Hamby each had her own DOL-DEEOIC provider number, and each billed the DOL-DEEOIC for skilled nursing services that were not actually rendered.
The cases in the Eastern District of Tennessee are being prosecuted by Assistant United States Attorneys William A. Roach, Jr., and Jeremy S. Dykes of the United States Attorney’s Office for the Eastern District of Tennessee.
A complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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National Enforcement Action Results in 193 Individuals Charged, Including 2 in West Virginia, for over $2.75 Billion in False Claims and Controlled Substance Abuse SchemesRead the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson announced criminal charges today against a Logan County physician and a Kentucky registered nurse in connection with separate alleged controlled substance abuse schemes. The charges filed in federal court are part of the Justice Department’s 2024 National Health Care Fraud Enforcement Action.
“It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company, if you profit from the unlawful distribution of controlled substances, you will be held accountable,” said Attorney General Merrick B. Garland. “The Justice Department will bring to justice criminals who defraud Americans, steal from taxpayer-funded programs, and put people in danger for the sake of profits.”
“The indictments handed up in the Southern District of West Virginia allege that the defendants betrayed their duties as health care providers for personal gain,” Thompson said. “The nationwide enforcement action announced today shows the commitment of the U.S. Department of Justice and this office to safeguard patients and the health care system from abuse and fraud.”
The charges announced today by Thompson are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 193 defendants for their alleged participation in health care fraud and controlled substance abuse schemes that resulted in the submission of over $2.75 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the Government, in connection with the enforcement action, seized over $231 million in cash, luxury vehicles, gold, and other assets.
The Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices for the Southern District of Alabama, District of Arizona, Central District of California, Northern District of California, Southern District of California, District of Connecticut, Middle District of Florida, Southern District of Florida, Northern District of Illinois, Eastern District of Kentucky, Western District to Kentucky, Eastern District of Louisiana, Middle District of Louisiana, Western District of Louisiana, Eastern District of Michigan, Western District of Michigan, Southern District of Mississippi, District of Montana, District of New Jersey, Eastern District of New York, Eastern District of North Carolina, Western District of Oklahoma, District of Rhode Island, Eastern District of Tennessee, Middle District of Tennessee, Eastern District of Texas, Northern District of Texas, Southern District of Texas, Eastern District of Virginia, Western District of Virginia, Southern District of West Virginia, and Eastern District of Wisconsin; and State Attorney Generals’ Offices for Arizona, California, Illinois, Indiana, Louisiana, New York, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, and South Dakota are prosecuting the cases in the National Enforcement Action, with assistance from the Health Care Fraud Unit’s Data Analytics Team.
Descriptions of each case involved in today’s enforcement action are available on the Department’s website.
The Southern District of West Virginia, in particular, worked with the Department’s Criminal Division and the following law enforcement organizations to investigate and prosecute the cases filed during the enforcement period: the Drug Enforcement Administration (DEA) and the Food and Drug Administration-Office of Criminal Investigations (FDA-OCI).
The following individuals have been charged in the Southern District of West Virginia:
- Brian McDevitt, D.O., 60, of Chapmanville, was charged by indictment with three counts of unlawful distribution of a controlled substance in connection with prescribing clonazepam outside the scope of professional practice and not for a legitimate medical purpose. As alleged in the indictment, McDevitt, a sole practitioner operating the Chapmanville Medical Clinic, knowingly issued clonazepam prescriptions on three separate dates that were outside the scope of professional practice and not for a legitimate medical purpose. The case is being prosecuted by Assistant United States Attorneys Owen Reynolds and Francesca Rollo.
- Jacqueline Brewster, 54, of Belfry, Kentucky, was charged by indictment with one count of obtaining controlled substances by fraud, one count of tampering with consumer products, and one count of wrongfully obtaining individually identifiable health information under false pretenses and with intent to use for personal gain in connection with the theft of, and tampering with, vials of hydromorphone at a hospital in Raleigh County, West Virginia. As alleged in the indictment, Brewster, a travel nurse, used her credentials to access hydromorphone for her own personal use. Brewster tampered with the hydromorphone vials by diluting the remaining liquid in the bottles to make it appear as though they were full. As part of this scheme, Brewster accessed patient files for patients not assigned to her. The case is being prosecuted by Assistant United States Attorney Owen Reynolds.
A complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:24-cr-96 McDevitt) and 5:24-cr-104 (Brewster).
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N.C. Man Sentenced to over 13 Years in Federal Prison for Drug TraffickingRead the Press Release
COLUMBIA, S.C. — Rico Green, 48, of Waxhaw, N.C. was sentenced to more than 13 years in federal prison after pleading guilty to a drug trafficking offense.
Evidence presented to the court showed that on Jan. 5, 2022, Green sold fentanyl to members of the Lancaster County Drug Task Force during an undercover operation. The undercover buy was part of a larger investigation which revealed Green’s drug trafficking activity in Lancaster County, S.C. and Union County, N.C. In March 2022, Green was found with a large quantity of fentanyl after he attempted to run from Lancaster County deputies during a traffic stop. The court also heard evidence that months after his March 2022 arrest and subsequent bond, Green attempted to sell a firearm to another undercover officer during a drug deal in Waxhaw, N.C.
Green pleaded guilty to drug trafficking on March 27, 2024. Green has two prior convictions for distribution of cocaine, two prior convictions for distribution of crack cocaine, and two prior convictions for trafficking cocaine.
United States District Judge Mary Geiger Lewis sentenced Green to 160 months imprisonment, to be followed by a six-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the South Carolina Law Enforcement Division, the Lancaster County Sheriff’s Office, the Lancaster Police Department, and the Union County, N.C. Sheriff’s Office. Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case.
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Mooresville Man Is Sentenced to More Than Nine Years in Prison Possession of A Firearm by A FelonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Charod Terron Terry, 35, of Mooresville, N.C., to 110 months in prison followed by three years of supervised release for possession of a firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Sheriff Darren Campbell of the Iredell County Sheriff’s Office, and Chief David W. Onley of the Statesville Police Department join U.S. Attorney King in making today’s announcement.
According to court documents and today’s sentencing hearing, on July 14, 2022, deputies with the Iredell County Sheriff’s Office were conducting a vehicle check when they observed a car attempting to evade the checkpoint. Law enforcement proceeded to conduct a traffic stop of the vehicle. Terry was a passenger in the vehicle. During the stop, law enforcement asked Terry to exit the vehicle. As Terry exited the vehicle, the deputies observed a partial firearm hidden inside a bag that was tucked between the passenger seat and the passenger door of the vehicle. Law enforcement retrieved from the bag a firearm, as well as trafficking quantities of fentanyl and cocaine base. During the investigation, law enforcement determined the firearm belonged to Terry. Testimony also showed that Terry had dealt cocaine base to undercover officers on eight different occasions in 2021. Court records show that Terry is a felon with prior convictions for drug possession and he is prohibited from possessing a firearm. At today’s sentencing hearing, Terry received an enhanced sentence for his use of a firearm in connection with drug trafficking.
On February 2, 2024, Terry pleaded guilty to possession of a firearm by a convicted felon. He is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the ATF, the Iredell County Sheriff’s Office, and the Statesville Police Department for their investigation of the case.
Assistant U.S. Attorney Alfredo De La Rosa of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Montclair Pharmacist Charged with Submitting over $300 Million in Fraudulent Claims to Medi-Cal in Medication Reimbursement ScamRead the Press Release
LOS ANGELES – An Inland Empire pharmacist has been charged with using his Montclair pharmacy to submit more than $300 million in fraudulent Medi-Cal claims for prescription medications that were medically unnecessary, often not provided to patients, and were obtained through the payment of tens of millions of dollars in illegal kickbacks, the Justice Department announced today.
Kyrollos Mekail, 36, of Moreno Valley, is charged with two counts of health care fraud. He is expected to be arraigned in the coming weeks in United States District Court.
The charges filed in federal court are part of the Department of Justice’s 2024 National Health Care Fraud Enforcement Action.
“This case alleges that a licensed pharmacist committed an enormous fraud against a public health program designed to help our state’s neediest residents,” said United States Attorney Martin Estrada. “Bringing to justice those who unlawfully take from the public is a priority for my office, especially where those offenders harm the most vulnerable in our community.”
“It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company, if you profit from the unlawful distribution of controlled substances, you will be held accountable,” said Attorney General Merrick B. Garland. “The Justice Department will bring to justice criminals who defraud Americans, steal from taxpayer-funded programs, and put people in danger for the sake of profits.”
“Healthcare fraud victimizes patients, endangers the health of vulnerable people, and plunders healthcare programs,” said FBI Director Christopher Wray. “This wide-ranging collaboration demonstrates the FBI’s commitment to rooting out predatory healthcare fraud, protecting patients, and ensuring critical healthcare funds go where they are needed most.”
According to court documents, Mekail is a licensed California pharmacist who owns, operates, and is the pharmacist-in-charge of the Montclair-based Monte VP LLC, which does business as Monte Vista Pharmacy. Monte Vista Pharmacy is a provider under Medi-Cal, a California health care benefit program that provides reimbursement for medically necessary health care services for low-income individuals – including families with children, seniors, persons with disabilities, individuals in foster care, and pregnant women – and receives a significant amount of federal funding.
In early 2022, Medi-Cal suspended its requirement that health care providers obtain prior authorization before providing certain health care services or medications as a condition of reimbursement. The suspension of the prior authorization requirements was part of an ongoing transition of Medi-Cal’s prescription drug program to a new payment system.
From May 2022 to March 2023, Mekail and his co-schemers allegedly exploited Medi-Cal’s prior authorization suspension by billing Medi-Cal tens of millions of dollars per month for dispensing high-reimbursement, non-contracted, generic drugs through Monte Vista Pharmacy. Some prescription medications purportedly were to treat pain and also included Folite tablets, a vitamin available over the counter.
Normally, these high-cost reimbursement medications would have required prior authorization under Medi-Cal’s old payment system. The information alleges the medication involved in this scheme was medically unnecessary, frequently was not dispensed to patients, and procured by kickbacks.
In less than one year, Monte Vista Pharmacy billed Medi-Cal approximately $306,521,392 for the medications, of which Medi-Cal paid Monte Vista Pharmacy approximately $204,032,151, according to court documents.
Mekail allegedly paid two co-schemers more than $36 million of the fraudulently obtained Medi-Cal proceeds as kickbacks for referring the prescriptions. He allegedly disguised these kickbacks as payments for “consulting services.”
“Health care fraud affects every American,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “It siphons off hard-earned tax dollars meant to provide care for the vulnerable and disabled. In doing so, it also raises the cost of care for all patients. Even worse, as the prosecutions we announce today underscore, health care fraud can harm patients and fuel addiction. The Criminal Division is committed to rooting out health care fraud, wherever it may be found, no matter who commits it. And we are using more tools than ever before to uncover misconduct and hold wrongdoers to account, whether they are executives in corner offices or doctors who violate their oaths.”
“This work is important to the Department of Health and Human Services (HHS) and the millions of Americans we serve. HHS vigorously pursues anyone who commits fraud against our health care programs. But it takes all of us, working together, to be successful,” said HHS Deputy Secretary Andrea Palm. “Those who steal from these programs are stealing from the American families who rely on them and putting patients at risk. We won’t stop until all those who try to defraud the federal government are caught and held accountable.”
“We will not tolerate fraud that preys on patients who need and deserve high quality health care,” said the HHS-OIG Inspector General Christi A. Grimm. “The hard work of the HHS-OIG team and our outstanding law enforcement partners makes today’s action possible. We must protect taxpayer dollars and keep Americans safe from harms to their health, privacy, and financial well-being.”
An information is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted of all charges, Mekail would face a statutory maximum sentence of 10 years in federal prison for each count of health care fraud.
The United States Department of Health and Human Services Office of Inspector General (HHS-OIG), the FBI, and the California Department of Justice are investigating this matter.
Assistant United States Attorney Roger A. Hsieh of the Major Frauds Section and Assistant Chief Niall M. O’Donnell and Trial Attorney Siobhan M. Namazi of the U.S. Department of Justice, Criminal Division, Fraud Section are prosecuting this case. Assistant United States Attorney James E. Dochterman of the Asset Forfeiture and Recovery Section is handling asset forfeiture matters in this case.