PORTLAND, Ore. – At approximately 5:30am today, federal law enforcement officers arrived at the federal building at 4310 SW Macadam Avenue in Portland and dismantled obstacles blocking access to the facility.

“Freedom of speech and peaceful assembly are sacred rights enjoyed by all Americans and the U.S. Attorney’s Office is committed to protecting these rights. However, when individuals break the law by blocking employees and the public from accessing a federal facility, federal law enforcement will respond to restore normal business operations,” said Billy J. Williams, U.S. Attorney for the District of Oregon.

“Federal law enforcement officers were able to effectively remove the demonstrators and blockades from in front of the entrances to the facility,” said L. Eric Patterson, Director of the Federal Protective Service. “We will continue to maintain a presence at the facility to ensure a safe reopening and enable employees and the public to safely conduct business at the facility.”

Seven demonstrators were taken into federal custody for failing to comply with directions given by law enforcement officers and blocking the building’s entrances. These violations are Class C misdemeanors under 41 C.F.R. § 102. The demonstrators were temporarily detained and cited by the Federal Protective Service, and then released. All were ordered to appear on the charges before a federal magistrate judge on September 7, 2018, in Portland.

An eighth individual was temporarily detained by federal law enforcement officers after approaching a police line in his vehicle. Shortly after the law enforcement operation began, the individual was spotted in a black SUV traveling near the federal facility. After spotting what appeared to be two rifles in the backseat of the vehicle, officers made contact with the individual and detained him without incident. Three airsoft guns were found in the vehicle. The individual was later released without being charged.

Beginning on June 25, 2018, demonstrators were issued four written and one verbal warning stating that it is unlawful to obstruct a federal facility. 41 C.F.R. § 102-74.390 and § 102-74.450 prohibit the obstruction of entrances, foyers, lobbies, corridors, offices, and parking lots of federal facilities.

Federal law does not restrict demonstrators from gathering on non-federal property adjacent to a federal facility. However, demonstrators are encouraged to review and adhere to all applicable state laws and local regulations.

HOUSTON – A 58-year-old an illegal alien from Mexico has been sentenced following his conviction to harboring illegal aliens, using a firearm during a crime of violence, illegal re-entry and being an alien in possession of a firearm, announced U.S. Attorney Ryan K. Patrick. J. Matias Picazo-Lucas pleaded guilty March 7, 2018.

Today, U.S. District Judge Keith Ellison handed Picazo-Lucas a total 96-month sentence. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence

On Aug. 3, 2017, an individual contacted Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) to report that a person had been smuggled into the United States and was being held against his will in Houston. That person advised that the unknown smugglers were demanding money in return for the release of the alien.

An undercover agent called the smuggler and arranged to meet him at a grocery store on Bellaire Boulevard to conduct a buyout of the relative. Law enforcement was on the scene when Picazo-Lucas arrived with two aliens who were being held. The agent and Picazo-Lucas discussed the payment, after which time authorities took Picazo-Lucas into custody. At the time of his arrest, he was found to be carrying a loaded .38 caliber pistol.

The two aliens were here illegally from Guatemala and indicated Picazo-Lucas and another individual, subsequently identified as Omar Picazo-Torres, had transported them to Houston in a tractor-trailer. Picazo-Lucas and Picazo-Torres held the hostages at gunpoint in order to intimidate them and prevent their escape.

The conspirators made phone calls to the person who had reported the kidnapping and other friends and family members of the hostages demanding payment for the release of the hostages.

Picazo-Lucas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Mexican National Omar Picazo-Lucas, 20, remains a fugitive and a warrant has been issued for his arrest. Anyone with information about his whereabouts is asked to contact HSI at 866-DHS-2-ICE.

HSI, Brazoria County Sheriff’s Office and the Houston Police Department conducted the investigation. Assistant U.S. Attorneys Douglas Davis and Kevin Lear are prosecuting the case.

WASHINGTON - Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced today the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 590+ charged defendants across 56 federal districts, including 150+ doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $2 billion in false billings. Of those charged, over 150 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Twenty-nine state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS announced today that from June 2017 to the present, 587 providers have been served with exclusion notices for conduct related to opioid diversion and abuse. 

Attorney General Sessions and Secretary Azar were joined in the announcement by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Deputy Director David L. Bowdich of the FBI, Assistant Administrator John Martin of the Drug Enforcement Administration (DEA), Inspector General Daniel R. Levinson of the HHS Office of Inspector General (OIG), Deputy Chief Eric Hylton of IRS Criminal Investigation (CI), Director Alec Alexander of the Centers for Medicare and Medicaid Services (CMS) Center for Program Integrity and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS).

Today’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG.  In addition, the operation includes the participation of the DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and State Medicaid Fraud Control Units. 

The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.   

“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions.  “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history.  This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”

“Every dollar recovered in this year’s operation represents not just a taxpayer’s hard-earned money—it’s a dollar that can go toward providing healthcare for Americans in need,” said HHS Secretary Azar.  “This year’s Takedown Day is a significant accomplishment for the American people, and every public servant involved should be proud of their work.”

According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare for services that were medically unnecessary or never performed. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings.  The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims.  Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.

Cases within theEastern District of Louisiana include:

United States v. Luis Cabrera, Jr., et al. (E.D. La) (Opioids): On June 22, 2018, Luis R. Cabrera, Jr., Victoria J. Skeldon, Bennie R. Harris, Jesse J. Wildenfils, Stephanie N. Free, Jarrod A. Doubleday, John A. Doubleday, Whitney J. Swan, III, Stephanie M. Faciane, and Cynthia B. Foret, were charged in a twelve-count indictment related to their roles in violating the Controlled Substances Act. Cabrera, Jr., Skedon, Harris, Wildenfils, Free, Jarrod Doubleday, John Doubleday, Swan, III, and Faciane were charged with a dual-object conspiracy to acquire and obtain oxycodone by fraud and to possess oxycodone with the intent to distribute. Cabrera, Jr., and Skeldon were each charged with one count of possession of oxycodone with the intent to distribute. Harris, Wildenfils, Free, Jarrod Doubleday, John Doubleday, Swan, III, and Faciane were each charged with one count of obtaining oxycodone through fraud. Cabrera, Jr. and Foret were charged with a dual-object conspiracy to acquire and possess oxycodone through fraud and to possess oxycodone with the intent to distribute. Cabrera, Jr. and Foret were also charged with one count of possession of oxycodone with the intent to distribute.

The charges stem from the defendant’s involvement in a prescription drug ring in the greater New Orleans area where the defendants used stolen fraudulent prescriptions to obtain and sell oxycodone pills.  U.S. Attorney Evans praised the investigative work by the Federal Bureau of Investigation, HHS-OIG, the Drug Enforcement Administration, and the Jefferson Parish Sheriff’s Office.  The case is being handled by DOJ Trial Attorney Jared Hasten and Assistant United States Attorney Myles Ranier (AUSA).

United States v. Wayne Jerome Celestine (E.D. La) (Opioids):  On June 27, 2018, U.S. Attorney Duane A. Evans announced the unsealing of a superseding indictment against Wayne Jerome Celestine, age 57, a physician who practices in Gretna, Louisiana and resides in the New Orleans area.  The superseding indictment contained the original charge of distribution of controlled substances, plus a money laundering charge involving approximately $1.6 million.

On Monday, April 30, 2018, Dr. Celestine was arrested. According to court records, Dr. Celestine illegally dispensed and conspired with others to illegally dispense controlled substances, including oxycodone, oxycodone/acetaminophen, oxycontin HCL, oxymorphone HCL, hydromorphone, opana, fentanyl, suboxone, and morphine sulfate, a Schedule II drug controlled substances; hydrocodone/acetaminophen, a Schedule III drug controlled substance until October 6, 2014, thereafter, a Schedule II drug controlled substance; and alprazolam, diazepam, and carisoprodol, Schedule IV drug controlled substances.   

Celestine made his initial appearance on the original indictment before U.S. Magistrate Court Judge Daniel E. Knowles, III, on Monday, April 30, 2018.  A detention hearing was held on May 1, 2018, and he was detained.

If convicted of the original charge (Count 1), Celestine will face a maximum of not more than 20 years in prison on the drug conspiracy charge, pursuant to Title 21, United States Code, Sections 841(a)(1) and 846.  Celestine will also be subject to a fine of not more than one million dollars and a minimum term of supervised release of three years, following any term of imprisonment.

If convicted on the new additional charge (Count 2), Celestine faces not more than 20 years in prison, a $500,000 fine or twice the value of property involved, and three years of supervised release.

U.S. Attorney Evans praised the work of the Special Agents of the Drug Enforcement Administration, Internal Revenue Service, Jefferson Parish Sheriff’s Office, Harahan Police Department, Westwego Police Department, Louisiana State Police, St. Bernard Parish Sheriff’s Office, New Orleans Police Department, and New Orleans District Attorney’s Office in investigating this matter.  Assistant United States Attorney John F. Murphy is in charge of the prosecution.

The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.

A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

# # #

U.S. Attorney Duane A. Evans announced that SAMUEL RAY LUCK, age 40, a resident of Raceland, Louisiana, was charged in a one-count indictment by a Federal Grand Jury for possessing a firearm after having been convicted of a misdemeanor crime of domestic violence.

On January 21, 2005, LUCK was convicted in McLean County, Kentucky for a violation of Kentucky Revised Statue (KRS) 508.030, Assault in the Fourth Degree, a misdemeanor crime of domestic violence.

If convicted, LUCK faces a maximum term of imprisonment of ten (10) years, a fine of $250,000.00, and three (3) years of supervised release following any term of imprisonment.     

U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.  

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.  Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.  In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lafourche Parish Sheriff’s Office.  It is being prosecuted by the Strike Force/Violent Crimes Unit of the U.S. Attorney’s Office.

ASHLEY MARIE GONZALES, 27, of Cheyenne, Wyoming was sentenced by Federal District Court Judge Nancy D. Freudenthal on June 25, 2018 for seize, confine, kidnap, carry away, and hold as well as possession of a firearm in furtherance of a crime of violence. Gonzales was arrested in Cheyenne, Wyoming. She received one hundred twenty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $200.00 special assessment. The Cheyenne Police Department, Weld County Colorado Sheriff’s Office, Wyoming Division of Criminal Investigation, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.

DUSTIN RAY TEEPLES, 43, of Orem, Utah was sentenced by Federal District Court Judge Nancy D. Freudenthal on June 26, 2018 for conspiracy to distribute heroin. Teeples was arrested in Washakie County, Wyoming. He received forty months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $900.00 in community restitution and a $100.00 special assessment. The Washakie County Sheriff’s Office investigated this case.

CALEB ALLEN ROOT, 38, with no known permanent address, was sentenced by Federal District Court Judge Nancy D. Freudenthal on June 26, 2018 for possession with intent to distribute methamphetamine and felon in possession of firearms and ammunition. Root was arrested in Sheridan, Wyoming. He received fifty-four months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $200.00 special assessment. The Sheridan Police Department, Wyoming Division of Criminal Investigation, and the US Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case.

BOSTON – A Boston-area investment adviser was sentenced today in federal court in Boston for using his clients’ funds to make his own investments and to pay personal expenses.

Cornelius Peterson, 29, of Newton, was senteced by U.S. District Court Judge Nathaniel M. Gorton to 20 months in prison, two years of supervised release and ordered to pay restitution in the amount of $462,000. Peterson previously pleaded guilty to one count of conspiracy and investment adviser fraud and three counts of bank fraud. Co-defendant James Polese, 51, of Wenham, pleaded guilty in April 2018 to one count of conspiracy and investment adviser fraud, eight counts of bank fraud, and one count of aggravated identity theft. He is scheduled to be sentenced on Aug. 2, 2018.

From approximately 2014 to June 2017, Polese and Peterson misappropriated approximately half a million dollars from their clients by transferring funds out of their clients’ accounts without their knowledge or consent. Specifically, on Aug. 20, 2014, Polese and Peterson used $100,000 from a client’s account to invest in a wind farm project despite the fact that it was not an investment opportunity authorized by their company. On May 15, 2015, Polese and Peterson used $400,000 from another client’s account to back a letter of credit in support of the wind farm project. On multiple occasions in 2017, Polese transferred funds from a client’s account to pay personal expenses, including college tuition payments and credit card bills. Polese and Peterson were terminated from the company in June 2017.

United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Securities & Exchange Commission also provided valuable assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Economic Crimes Unit prosecuted the case.

PHILADELPHIA – United States Attorney William M. McSwain announced today that Stephen Humbert, D.O. and Raymond Ferraro, P.A., who both work in Havertown, Pennsylvania, have agreed to pay the United States a total of $112,500 to resolve allegations that they improperly prescribed opioids to one of their former patients.

The Drug Enforcement Administration (DEA) conducted an investigation regarding oxycodone and fentanyl that were prescribed to a deceased patient. The investigation revealed that Humbert and Ferraro collectively prescribed approximately 4,000 pills of oxycodone and over 200 patches of fentanyl to the deceased patient for over a year.

After the DEA launched the investigation, Humbert and Ferraro cooperated with federal investigators. In addition to the monetary settlement, Humbert and Ferraro have agreed to an administrative agreement with the DEA that requires regular reporting of their prescriptions for controlled substances and new policies for their opioid patients.

“Given the opioid epidemic that our society is facing, it is critical for practitioners to prescribe opioids with caution and discretion,” said U.S. Attorney McSwain. “While our Office appreciates the cooperation that these two healthcare providers gave in the midst of the investigation, this resolution serves as an important reminder to all healthcare providers that they must exercise caution and judgment in prescribing these dangerous substances.”

“The DEA will continue to investigate any report of a doctor or other registrant misusing or abusing their privilege to prescribe controlled substances,” said Jon Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “In addition to criminal sanctions, the DEA can impose administrative restrictions and pursue civil fines against registrants that are involved in the improper prescription of controlled substances as was done in this investigation.”

The case was investigated by the Drug Enforcement Administration. Assistant United States Attorney Anthony D. Scicchitano handled the matter. 

BOISE – Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced today the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings.  Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics.  Thirty state Medicaid Fraud Control Units also participated in today’s arrests.  In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.

U.S. Attorney for the District of Idaho Bart M. Davis announced the District of Idaho’s participation in the National Health Care Fraud Takedown.  In the District of Idaho, three defendants, all of whom are medical professionals, were charged for their roles in three separate fraud schemes involving controlled substances.

Jennifer Fanopoulos, 40, of Meridian, Idaho, is a registered nurse who pleaded not guilty on June 26, 2018, to an indictment charging her with multiple counts of obtaining controlled substances by fraud and identity theft.  Fanopoulos’ trial is set for August 21, 2018, in front of Senior U.S. District Court Judge Edward J. Lodge at the federal courthouse in Boise.

Benjamin Hurley, 37, of Rigby, Idaho, is a pharmacist who pleaded not guilty on June 26, 2018, to an indictment charging him with two counts of obtaining controlled substances by fraud.  Hurley’s trial will be set for a later date in front of U.S. District Court Judge David C. Nye at the federal courthouse in Boise.

John Steiner, 35, of Lewiston, Idaho, is a pharmacist who is charged in an indictment with multiple counts of obtaining controlled substances by fraud.  Steiner is set to appear in court on July 3, 2018, before Chief U.S. Magistrate Judge Ronald E. Bush at the federal courthouse in Coeur d’Alene.

The charge of obtaining controlled substances by fraud is punishable by up to four years in prison, a maximum fine of $250,000 and one year of supervised release.  The charge of identity theft is punishable by up to twenty years in prison, a maximum fine of $250,000, and three years of supervised release.

These three cases were investigated by the Drug Enforcement Agency Tactical Diversion Squad.  The Department of Health and Human Services Office of Inspector General also assisted with the investigation of Fanopoulos.

An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

# # #

FRESNO, Calif. — Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced today the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses, and other licensed medical professionals for their alleged participation in health care fraud schemes involving approximately $2 billion in false billings. Of those charged, over 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS has initiated suspension actions against 587 providers, including doctors, nurses and pharmacists.

As part of today’s enforcement actions, U.S. Attorney for the Eastern District of California, McGregor W. Scott, announced four individuals facing health care fraud charges in Fresno. 

Today’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, and State Medicaid Fraud Control Units.  

The charges announced today aggressively target schemes billing Medicare, Medicaid, and TRICARE (a health insurance program for members and veterans of the armed forces and their families) for medically unnecessary prescription drugs and compounded medications that often were never even purchased or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.

“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions. “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history. This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”

 “Every dollar recovered in this year’s operation represents not just a taxpayer’s hard-earned money—it’s a dollar that can go toward providing healthcare for Americans in need,” said HHS Secretary Azar. “This year’s Takedown Day is a significant accomplishment for the American people, and every public servant involved should be proud of their work.”

U.S. Attorney McGregor W. Scott said, “As today’s announcement highlights, we are working diligently with our law enforcement partners to hold accountable those who lie and cheat in an attempt to enrich themselves off of taxpayer dollars that are meant to help those in need. The U.S. Attorney’s Office for the Eastern District of California is committed to continuing these cooperative efforts and prosecuting health care fraud cases.”

According to court documents, the many defendants charged today allegedly participated in schemes to submit claims to Medicare, Medicaid and TRICARE for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare for services that were medically unnecessary or never performed. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over 2 billion in fraudulent billings. Because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims, aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.

The following cases in the Eastern District of California are part of today’s announcement:

Case no. 1:18-mj-100-sko

A criminal complaint filed in Fresno alleges that Hermine Hambartsumyan, 36, of Fresno, and Tem Phaphonh, 65, of Fresno, used the information of elderly Lao Medicare beneficiaries to submit false claims for durable medical equipment (DME) and physical therapy services. Phaphonh recruited the patients and gained their identification and insurance information. She then passed it to Hambartsumyan, who ran a series of DME businesses. The DME companies submitted claims to Medicare indicating that they had provided expensive orthotic braces to the beneficiaries. These claims were false because either the beneficiaries had received nothing or they had received inexpensive items for which Medicare does not reimburse. For example, one of the DME companies billed Medicare approximately $1,936 for orthotic braces including two knee braces and two ankle-foot braces for a Medicare beneficiary who had had his left leg amputated from the knee down and wore a prosthesis. The beneficiary had no knowledge of the DME company, never received the braces, and did not have a left foot or ankle on which to place an orthotic brace.

Hambartsumyan and Phaphonh also set up a health clinic in Porterville, California known as Villa Health Center LLC (VHC). Phaphonh recruited patients for this clinic for the purpose of submitting false claims, including false claims for physical therapy services. Beneficiaries received massages during their visits to VHC, and VHC billed Medicare for physical therapy services. The claims were false because Medicare requires such services be provided by trained physical or occupational therapists.

Case no. 1:18-mj-101-sko

A separate criminal complaint alleges that Gabriel Huerta, 38, of Fresno, and Natalie Corral, 38, of Fresno, were co-owners of a durable medical equipment business known as Central Valley Medical Supplies (CVMS) that falsely billed government health insurance programs for power wheelchair repairs. In many cases, CVMS did not perform the repairs, but even in the small amount of cases in which they were performed, the claims were false because the repairs were unnecessary and were not authorized by a physician, both of which are required by the programs. CVMS also billed for providing loaner wheelchairs to beneficiaries during the “repairs,” but no loaners were provided. From approximately January 2013 to June 2016, Medicare paid over $916,000 for false claims submitted under the direction of Huerta and Corral.

The Eastern District of California cases are the product of investigations by the Federal Bureau of Investigation, HHS OIG, and California Department of Health Care Services Investigation Branch. Assistant U.S. Attorney Michael G. Tierney is prosecuting the cases. A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Assistant U. S. Attorney Valerie Chu (619) 546-6750    

NEWS RELEASE SUMMARY– June 28, 2018

SAN DIEGO – Seven defendants, including a physician and two chiropractors, were charged in San Diego as part of the largest healthcare fraud enforcement action in Department of Justice history.

The national takedown involved 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants (including 76 doctors) were charged for their roles in prescribing and distributing opioids and other dangerous narcotics.

In San Diego, the cases include:

• Marco Antonio Chavez, a licensed medical doctor specializing in psychiatry, was charged with 30 counts of health care fraud in connection with over $928,000 in bills he submitted to TRICARE for services he never provided.  He was also charged with five counts of aggravated identity theft and one count of obstruction of a federal audit. According to the indictment, he misappropriated the personal identifying information of TRICARE beneficiaries to submit fraudulent bills to TRICARE, and then lied during the course of a subsequent federal audit. Chavez allegedly used the proceeds of his scheme to purchase, among other luxury items, a 2016 Jaguar F-type and tens of thousands of dollars in David Yurman jewelry.  On June 26, 2018, agents executed a search warrant at Chavez’s residence, and seized the Jaguar.  The United States is seeking to forfeit all proceeds of Chavez’s illegal activity.
   
• Four defendants, including two chiropractors, a physical therapist and an acupuncturist, were charged with conspiracy to commit health care fraud and honest services fraud and to pay unlawful kickbacks stemming from their operation of R.I.S.E. Medical Center.  According to the indictment, R.I.S.E. operated several “Wellness Centers” in San Diego County, including Bonita and Oceanside, and offering a range of services including physical therapy, diagnostic tests, massages, chiropractic treatments, and acupuncture. Since TRICARE and Medicare do not cover most of those benefits, the defendants misrepresented acupuncture, chiropractic, and massage services as “physical therapy,” and billed TRICARE and Medicare as if “physical therapy” had been provided.  Joserodel Zavala Candelario, a chiropractor and owner of R.I.S.E., imposed quotas for non-reimbursable services and treatments, allegedly telling staff that they were expected to provide a certain number of diagnostic tests, “no matter what”; to “grab patients in lobbies to put into provider schedules”; and to ply patients with complimentary treatments so R.I.S.E. could continue to fraudulently bill TRICARE and Medicare.  According to the indictment, the defendants fraudulently billed over $23 million to TRICARE, and over $9 million to Medicare.
   
• In addition, Candelario was also charged with paying a patient recruiter over $18,000 to refer TRICARE patients to the R.I.S.E. clinic.  The recruiter, Mariam Reyes, was charged separately with conspiring to solicit and receive kickbacks.
   
• In a separate indictment, Candelario was charged with participating in a scheme to defraud California Workers’ Compensation insurers and R.I.S.E. patients by receiving illegal kickbacks and bribes to refer patients to certain providers.  According to the indictment, Candelario paid kickbacks to his co-schemers through a front company in exchange for referrals of Workers’ Compensation patients, and then concealed these kickbacks through sham “marketing” agreements.  One of Candelario’s co-schemers, Boris Dadiomov, was charged separately for his role in the fraudulent conspiracy.  As a result of their unlawful cross-referral kickback scheme, Candelario and the other schemers received over 500 illegal patient referrals and submitted over $6.6 million in false billings to insurance companies.  
   

“With healthcare costs skyrocketing, and with patients’ well being on the line, we cannot afford the financial and physical costs of fraud,” said U.S. Attorney Adam Braverman. “Doctors are especially culpable as they are violating the sacred trust they should have with their patients. We are working hard every day to protect patients, taxpayers, ratepayers who are being exploited by those members of the medical community who prefer purchasing power over principle.”

“The FBI is fully committed to protecting our nation’s health care programs that have an impact on San Diegans,” said FBI Special Agent in Charge John Brown.  “As evidenced by the broad range of health care fraud cases announced today, the FBI and our partners have shown that we will uncover fraud affecting our public health insurance programs whether committed by a mental health professional, a chiropractor, physical therapist, acupuncturist, physician, ancillary medical service provider or a medical marketer….the health and safety of our citizens depend on it.”

“Public health insurance programs, such as Medicare and TRICARE, are not a personal pocketbook for criminals seeking to exploit government programs designed to help those who need these plans the most,” stated R. Damon Rowe, Special Agent in Charge of IRS Criminal Investigation’s Los Angeles Field Office.  “Taxpayers rightly expect individuals working in the healthcare industry that receive payments from taxpayer-funded programs to scrupulously follow the rules.  IRS Criminal Investigation will continue to protect the integrity of public health insurance programs and ensure that doctors, chiropractors, and medical service providers who profit from these illicit schemes are held accountable.”

The national takedown was announced today by Attorney General Jeff Sessions. The cases aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries.  The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department.  According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.  

According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided.  In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare.  Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings.  The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims.  Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.

The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  The Medicare Fraud Strike Force operates in 10 locations nationwide.  Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.

DEFENDANT                                               Case Number 18cr2930                               

Marco Antonio Chavez                                  

SUMMARY OF CHARGES

(Counts 1-30)

Health Care Fraud – Title 18, United States Code, Section 1347

Maximum Penalty: Twenty years’ imprisonment, $250,00 fine, restitution, forfeiture

(Counts 31-36)

Aggravated Identity Theft – Title 18, U.S.C., Section 1028A

Maximum Penalty: Mandatory two years’ imprisonment, consecutive (per count)

(Count 37)

Obstruction of Federal Audit – Title 18, U.S.C., Section 1516

Maximum Penalty: Five years’ imprisonment, $250,000 fine

DEFENDANT                                               Case Number 18cr3015                               

Boris Dadiomov                                            

SUMMARY OF CHARGES

Conspiracy to Commit Honest Services Mail Fraud and Healthcare Fraud – Title 18, U.S.C., Section 1349

Maximum penalty: Twenty years’ imprisonment and $250,000 fine

DEFENDANTS                                            Case Number 18cr3057       

Joserodel Zavala Candelario   (1)                   

James Ward, Jr. (2)

Robert Cohen (3)

Antony Y. Lim (4)

SUMMARY OF CHARGES

Conspiracy to Commit Offenses– Title 18, U.S.C., Section 371

Maximum Penalty: Five years’ imprisonment, $250,000 fine, restitution, forfeiture

Honest Services Mail Fraud – Title 18, U.S.C., Section 1341, 1346

Maximum penalty: Twenty years’ imprisonment and $250,000 fine, restitution, forfeiture

Health Care Fraud – Title 18, U.S.C., Section 1347

Maximum penalty: Twenty years’ imprisonment and $250,000 fine

Honest Services Wire Fraud - Title 18, U.S.C., Section 1341, 1346

Maximum penalty: Twenty years’ imprisonment and $250,000 fine         

DEFENDANT                                               Case Number 18cr3016                   

Meriam Reyes

SUMMARY OF CHARGES

Conspiracy to Solicit and Receive Kickbacks – Title 18, U.S.C., Section 371

Maximum penalty: Five years’ imprisonment and $250,000 fine, restitution, forfeiture

AGENCIES

Federal Bureau of Investigation

Internal Revenue Service

Defense Criminal Investigative Service

California Department of Insurance

San Diego County District Attorney's Office

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

PHILADELPHIA – U.S. Attorney William M. McSwain announced that Leslie Acosta, former Pennsylvania State Representative and former employee of the Juniata Community Mental Health Clinic, was sentenced today to seven months in federal prison by U.S. District Court Judge Joel H. Slomsky.  Acosta was also ordered to pay $623,000 in restitution.

Acosta had previously pled guilty to conspiracy to commit money laundering.  The charge arose out of Acosta’s agreement to cash unearned checks from the Clinic and give the cash to Renee Tartaglione, who at the time was President of the Board of Directors of the Clinic.  Acosta agreed to cooperate with the government in its investigation of Tartaglione and testified at Tartaglione’s federal criminal trial in 2017. 

“Today’s sentence recognizes the need to punish those who help others steal money from nonprofit corporations,” said U.S. Attorney McSwain. “It reinforces the important principle that nonprofit organizations, especially those that provide services to the disadvantaged, exist for the people they serve and not for the personal enrichment of their leaders.  Our office will continue to aggressively pursue those who participate in schemes to steal from nonprofits.”

The case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service. It is being prosecuted by Assistant U.S. Attorney Bea L. Witzleben and Department of Justice Trial Attorney Peter Halpern.

LAS VEGAS, Nev. – The largest ever health care fraud enforcement action by the Department of Justice includes four Nevada residents who were charged with conspiracy to distribute prescription opioids and health care fraud, announced U.S. Attorney Dayle Elieson for the District of Nevada.

Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced today the national health care fraud takedown involved 601 charged defendants across 58 federal districts, including 165 doctors, nurses, and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.

“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions. “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history. This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”

“Prescription opioid-related health care fraud is a serious problem,” said U.S. Attorney Elieson. “Medical professionals hold a special place of trust in our society as healers, caregivers, and lifesavers. Doctors who violate their oath to ‘do no harm’ by illegally prescribing opioids for no medical necessity or file fraudulent health care bills will be held accountable.”

As part of the announcement, the District of Nevada filed charges against four individuals, including one doctor, with prescription opioid-related offenses. The cases have a combined loss of approximately $3.7 million.

• Robert D. Harvey, a surgical technician, Alejandro Incera and Leslie Kalyn, both nurse practitioners, were charged in a 29-count indictment. As alleged, Harvey and Incera conspired to use Dr. Horace Guerra’s pre-signed prescription pad to distribute Hydrocodone and Oxycodone to patients without a legitimate medical purpose in exchange for cash kickbacks. Incera and Kalyn allegedly prescribed Lidocaine, Modafinil, and Diclofenac Sodium to patients without a legitimate medical purpose, many of which were billed to Medicare/Medicaid by a pharmacy that filled the prescriptions. Harvey, Incera, and Kalyn were paid cash kickbacks for their patient referrals to the pharmacy. A jury trial is set for July 30, 2018.
• Dr. Horace P. Guerra was charged with conspiracy to distribute Oxycodone and Hydrocodone. As alleged, he provided pre-signed prescription pads to Robert Harvey and Alejandro Incera who wrote opioid prescriptions for patients without a legitimate medical purpose. His initial court appearance and plea hearing is set for July 25, 2018.

These charges are the result of joint investigations by the FBI, the Office of Inspector General of the U.S. Department of Health and Human Services, and the Nevada Attorney General’s Office Medicaid Fraud Control Unit. Assistant U.S. Attorney Kilby Macfadden is prosecuting these cases.

The Opioid Fraud and Abuse Detection Unit is a program that utilizes data to help combat the devastating opioid crisis. The District of Nevada was selected as one of 12 districts nationally to participate in the pilot program. The District of Nevada has assigned an experienced prosecutor that focuses solely on investigating and prosecuting health care fraud related to medical professionals who prescribe opioids, that unlawfully divert of dispense prescription opioids for illegitimate purposes.

A criminal information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Additional documents related to the national announcement are available here: https://www.justice.gov/opa/documents-and-resources-june-28-2018.

###

Surrounding Area Pain Centers 

• Hemlock Pain Center – Milledgeville
  750 Cobb Street
  Suite 150
  Milledgeville, GA 31061
  (478) 284-0670
  M-Th 8:00 a.m. – 4:30 p.m.
  Friday 8:00 a.m. – 12:00 p.m.
  (potentially open every other Thursday)
   
• Hemlock Pain Center – Warner Robins
  504 Osigian Blvd.
  Warner Robins, GA 31088
  (478) 333-6444
  M-Th 8:00 a.m. – 5:00 p.m.
  Friday 8:00 a.m. – 12:00 p.m.
   
• Hemlock Pain Center – Macon
  101 Preston Court
  Macon, GA 31210
  (478) 745-2385
  M-Th 8:00 a.m. – 4:30 p.m.
  Friday 8:00 a.m. – 12:00 p.m.
   
• Pain Institute of Georgia
  3356 Vineville Ave.
  Macon, GA 31204
  (478) 476-9247
  M-Th 8:00 a.m. – 5:00 p.m.
  Friday 9:00 a.m. – 1:00 p.m.

Surrounding Narcotic Treatment Programs for Patients in Withdrawal 

• HealthQwest Frontiers, Inc – Macon
  890 Northwoods Plaza
  Macon, GA 31204
  (478) 330 – 7164
  M-F  5:45 a.m. – 2:00 p.m.
  Saturday 7:00 a.m. – 9:00a.m.
  24 hour crisis # 478.538.2780
   
• HealthQwest – Warner Robins
  607 A Russell Parkway
  Warner Robins, GA 31088
  (478) 225-9860
  M-F  5:45 a.m. – 2:00 p.m.
  Saturday 7:30 a.m. – 9:30a.m.
  24 hour crisis # 478.361.6411
   
• Georgia Treatment Services, LLC
  6132 Hawkinsville Rd
  Macon, Ga 31216
  (478) 788-0066
  M-F 6:00 a.m. to 1:00 p.m.,
  Saturday 6:45 a.m. to 9:45 a.m.
  24 hour crisis # 918.607.3473 
   
   
   

COVINGTON, Ky. – Joshua D. Jett, 34, formerly of Maysville, Kentucky, was sentenced today to 360 months in federal prison, by United States District Judge David L. Bunning, for conspiracy to distribute heroin and fentanyl causing death.

Jett pled guilty, in June 2017, and admitted that he conspired with Kristian Bellamy and others to distribute heroin and fentanyl during the summer of 2016, and that drugs they distributed through that conspiracy caused a death on August 1, 2016.  Jett and Bellamy regularly purchased what they believed to be heroin from Cincinnati and transported it back to Maysville, for use and distribution.  They sold the drugs to several users on August 1, 2016; one of them, Amanda Hill-Borgmann, overdosed – on what was determined to be heroin and fentanyl – and died.

Under federal law, Jett must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for 5 years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), jointly announced the sentence.  The investigation was conducted by the DEA.  The United States was represented by Assistant United States Attorney Tony Bracke.

WASHINGTON - Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced today the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings.  Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics.  Thirty state Medicaid Fraud Control Units also participated in today’s arrests.  In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse. 

Attorney General Sessions and Secretary Azar were joined in the announcement by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Deputy Director David L. Bowdich of the FBI, Assistant Administrator John Martin of the Drug Enforcement Administration (DEA), Deputy Inspector General Gary Cantrell of the HHS Office of Inspector General (OIG), Deputy Chief Eric Hylton of IRS Criminal Investigation (CI), Centers for Medicare and Medicaid Services (CMS) Deputy Administrator and Director of the Center for Program Integrity Alec Alexander and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS).

Today’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG.  In addition, the operation includes the participation of the DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and State Medicaid Fraud Control Units. 

The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries.  The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department.  According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.   

“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions.  “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history.  This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”

“Every dollar recovered in this year’s operation represents not just a taxpayer’s hard-earned money—it’s a dollar that can go toward providing healthcare for Americans in need,” said HHS Secretary Azar.  “This year’s Takedown Day is a significant accomplishment for the American people, and every public servant involved should be proud of their work.”

According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided.  In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare.  Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings.  The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims.  Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.

In Winamac, Indiana, two individuals involved with the operation of Transport Loving Care (also known as Alliance EMS)allegedly submitted false claims to Medicare and Medicaid. Michael Wilson and Jaqueline “Jay” Podell – allegedly claimed they provided transportation of recipients to dialysis by ambulance service when in fact the recipients were ambulatory, did not require ambulance transportation and were not eligible for ambulance transportation. The Indictment claims the loss to Indiana Medicaid is in excess of $10,000. Charges include conspiracy to commit health care fraud (Medicare); health care fraud (Medicare); Medicaid health care fraud; and forfeiture.

In Gary, Indiana, two individuals involved in the operation of Lending a Helping Hand Transportation -- Felicia Blount and Charlotte Hunter -- allegedly billed Indiana Medicaid for services not rendered, inflating mileage for trips from Northwest Indiana to Indianapolis by approximately 100 miles per trip. The total fraud to the Indiana Medicaid program is in excess of $100,000. The two defendants are charged with health care fraud and the indictment also seeks forfeiture.

In San Pierre, Indiana, four individuals involved in United Mobile Care – Edward Kerr, Brenda Kerr, Mark Estrada and Tammy Estrada – allegedly submitted false claims to the Medicare and Medicaid program. They allegedly claimed they provided transportation of recipients to dialysis by ambulance service when in fact the recipients were ambulatory, did not require ambulance transportation and were not eligible for ambulance transportation. The Indictment claims the losses in excess of $100,000. Charges include 1 count of conspiracy to commit health care fraud and 10 counts of health care fraud. 

US Attorney Kirsch said, “The defendants indicted in these cases are charged with stealing tax payer money by defrauding our health care funds.  The victims are the taxpayers.  Working with our law enforcement partners we will continue to investigate and prosecute perpetrators of these fraudulent schemes.”

"Health care fraud is a threat to this country, both in terms of the well-being of patients and the integrity of government health care programs,” said Lamont Pugh, Special Agent in Charge for the U.S. Department of Health & Human Services Office of Inspector General. “Our agents will continue to work with our law enforcement partners to ensure these criminals are held accountable for their actions.”

“Medicaid fraud leaves in its wake many victims,” Attorney General Hill said. “Any licensed providers who commit this offense are taking advantage of those for whom they are supposed to provide care, including the disabled and less fortunate who rely on Medicaid. In addition, they are also fleecing all taxpayers whose hard-earned money is used to fund these programs. The investigators and lawyers in our Medicaid Fraud Control Unit are doing good work to help bring lawbreakers to justice. At the same time, we respect the due process to which all are entitled, and all those who stand accused of this crime are certainly presumed innocent until a court finds otherwise.”

The cases announced today are being prosecuted and investigated by U.S. Attorney’s Offices nationwide, along with Medicare Fraud Strike Force teams from the Criminal Division’s Fraud Section and from the U.S. Attorney’s Offices in the Southern District of Florida, Eastern District of Michigan, Eastern District of New York, Southern District of Texas, Central District of California, Eastern District of Louisiana, Northern District of Texas, Northern District of Illinois, Middle District of Louisiana, and the Middle District of Florida; and agents from the FBI, HHS-OIG, DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and state Medicaid Fraud Control Units.

A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Additional documents related to this announcement will shortly be available here:

https://www.justice.gov/opa/documents-and-resources-june-28-2018.

This operation also highlights the great work being done by the Department of Justice’s Civil Division.  In the past fiscal year, the Department of Justice, including the Civil Division, has collectively won or negotiated over $2 billion in judgements and settlements related to matters alleging health care fraud. 

# # #

United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced today that Scott Hess, a 54-year old resident of Menominee Falls, Wisconsin, and Craig Hilborn, a 55-year old resident of Birmingham, Michigan, were sentenced by the Honorable J.P. Stadtmueller for their participation in a wire fraud scheme.

Until late 2015, Hess was an in-house attorney at Johnson Controls, Inc., in Milwaukee, Wisconsin.  Hilborn ran his own law firm in Michigan.  Together, Hess and Hilborn devised and executed a scheme to defraud Johnson Controls: Hess created fraudulent invoices for legal work purportedly completed by Hilborn’s law firm.  Hess then approved those invoices on behalf of his employer, causing Johnson Controls to pay Hilborn’s law firm the invoiced amounts.  In reality, Hilborn’s law firm did not perform any meaningful legal work for Johnson Controls.  Hess and Hilborn carried out the scheme from 2000 through 2015, in the process stealing approximately $4.5 million from Johnson Controls.

In March and April of 2018, Hess and Hilborn both pleaded guilty to two counts of wire fraud, in violation of Title 18 United States Code § 1343. On June 15, 2018, the Honorable J.P. Stadtmueller sentenced Hess to 32 months in prison, three years supervised release and a $90,000 fine. On June 28, 2018, the Honorable J.P. Stadtmueller sentenced Hilborn to 21 months in prison, two year’s supervised release and a $60,000 fine. Both Hess and Hilborn were ordered to pay full restitution to Johnson Controls.

This case was investigated by the Federal Bureau of Investigation.  It was prosecuted by Assistant United States Attorney Rebecca Taibleson.

 #    #    #    #    #

For Additional Information Contact:

Public Information Officer Dean Puschnig 414-297-1700

United States Attorney Matthew D. Krueger announced that on June 26, 2018, a federal grand jury in Milwaukee returned an indictment charging Albert Golant, aka Alex Golant, (age: 37) of Wales, Wisconsin with twelve counts of wire fraud and bank fraud.  Golant is charged with seven counts of wire fraud, in violation of Title 18, United States Code, Section 1341 and five counts of bank fraud in violation of Title 18, United States Code, Section 1344.  Each of the wire fraud charges contained in the indictment carries a maximum penalty of up to twenty years in prison and a fine of up to $250,000, or both.  Each of the bank fraud charges contained in the indictment carries a maximum penalty of thirty years in prison and a fine of up to $1 million, or both. 

The indictment alleges that Golant has been involved in the business of purchasing luxury vehicles in the United States using straw buyers and shipping them overseas to individual foreign buyers both directly and through vehicle brokers.  Golant, and others, knowingly devised and participated in a scheme to defraud.  The indictment alleges that it was part of the scheme that Golant obtained funds from third parties, including vehicle brokers, investors, and lenders, by representing that the funds would be used to purchase specific luxury vehicles.  Instead, Golant diverted tens of millions of dollars to his own personal use.  Golant used the funds to gamble at casinos, to pay off gambling debts, to provide funds to professional gamblers to gamble on his behalf, to pay off prior loans, and to satisfy obligations to other clients.

It was further part of the scheme that Golant fraudulently sold luxury vehicles, which he knew had previously been sold and exported to China, to dealerships in Wisconsin and Illinois.  After the vehicle was fraudulently sold to the dealership, Golant represented that he had a customer who would buy the vehicle back from the dealership using financing.  Golant submitted false and fraudulent financing applications on behalf of his customers to obtain the financing for the vehicles. 

Through his scheme, Golant fraudulently obtained at least $30 million from at least 40 different victims. This matter was investigated by the Internal Revenue Service-Criminal Investigations and the Federal Bureau of Investigation and has been assigned to Assistant United States Attorney Laura S. Kwaterski for prosecution. 

The public is cautioned that an indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty.

#    #    #    #    #

For Additional Information Contact:

Public Information Officer Dean Puschnig 414-297-1700

            CONCORD - Juan Garcia, 34, of Roxbury, Massachusetts, pleaded guilty on Thursday in federal court to conspiracy to distribute fentanyl, United States Attorney Scott W. Murray announced today.

             According to court documents and statements made in court, in early 2016, the FBI received information regarding a drug dealer known as “Tony,” who was distributing drugs in Nashua and elsewhere.  “Tony” was later identified as the defendant, who has used multiple names, including Juan Garcia.  In February and March of 2016, the FBI used a cooperating individual to buy over 40 grams of fentanyl from the defendant and his associates in Lawrence, Massachusetts.  The defendant was subsequently arrested in April 2017. 

            Garcia is scheduled to be sentenced on October 10, 2018.

           “Fentanyl trafficking poses a grave danger to the health and safety of our citizens,” said U.S. Attorney Murray.  “In order to protect the public, we will aggressively target and prosecute those who are distributing this lethal drug in the Granite State.”

            "This defendant had no regard for the people to whom he peddled his poison, and the FBI Safe Streets Gang Task Force will continue to do work with our law enforcement partners to do everything it can to put a stop to drug dealers like him in an effort to make our communities safer, " said Harold H. Shaw, Special Agent in Charge of the FBI Boston Division

            This matter was investigated by the FBI New Hampshire Safe Streets Gang Task Force, which is comprised of the FBI, the New Hampshire State Police, New Hampshire Probation and Parole, and the Police Departments of Hudson, Manchester, and Nashua.  Assistance was provided by the FBI North Shore Gang Task Force. The case is being prosecuted by Assistant U.S. Attorney Shane Kelbley and First Assistant U.S. Attorney John J. Farley.

###

            CONCORD - Joseph A. Foistner, 67, an attorney and resident of New Boston, New Hampshire, was arrested on charges of bank fraud, wire fraud, and money laundering, announced United States Attorney Scott W. Murray.

             According to an Indictment that was unsealed earlier today, Foistner is licensed to practice law in Massachusetts.  Until May 2017, he owned and managed “The Law Office of Joseph A. Foistner, Esquire & Affiliates, P.C.”

            The five-count Indictment alleges that Foistner received a $2.9 million personal loan from North American Savings Bank through the U.S. Department of Veterans Affairs Home Loan Guaranty Program in November of 2015.  The Indictment also alleges that he received a $250,000 business loan from Newtek Small Business Finance, LLC, through the U.S. Small Business Administration loan guaranty program in April of 2017.  According to the Indictment, Foistner obtained the loans by providing false information about his law office’s income production and his personal income to the bank and Newtek.

            According to the Indictment, the VA’s Home Loan Guaranty Program is designed to help veterans of the U.S. military achieve home ownership and the SBA’s loan guaranty program is designed to promote the creation, expansion and development of small businesses.

            In the money laundering charge, the Indictment alleges that Foistner engaged in a monetary transaction in criminally derived property of a value greater than $10,000 when he caused $201,000 from the proceeds of the $250,000 business loan to be deposited to a bank account owned by an entity known as the “JFL Nominee Trust.”

            During a hearing in U.S. District Court earlier today, Foistner’s trial was scheduled for September 5, 2018.

            The public is reminded that an Indictment is merely an accusation and Foistner is presumed to be innocent unless the charges are proven beyond a reasonable doubt.   

            The case is being investigated by the U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division; the U.S. Small Business Administration, Office of Inspector General, and the Federal Bureau of Investigation.  It is being prosecuted by Asssistant U.S. Attorney Robert Kinsella and John S. Davis.

###

LEXINGTON, Ky.— Melvin Tremayne Mahone,  31, of Lexington, was sentenced to 15 years in federal prison by Chief United States District Judge  Karen Caldwell for Trafficking in more than 40 grams of Fentanyl and Possession of Firearms in Furtherance of Drug Trafficking.

On October 20, 2016, a search warrant was executed at Mahone’s residence, on American Avenue in Lexington.  During the arrest and search of Mahone, officers located approximately 60 grams of fentanyl concealed in his underwear.  Fentanyl can be lethal in the 2 milligram range.  In close proximity to Mahone were two loaded firearms.  Mahone has a prior federal felony conviction for drug trafficking.  Mahone pleaded guilty to the charges in March.

Under federal law, Mahone must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for 8 years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowery, Special Agent in Charge, ATF; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the sentence.

The investigation was conducted by the Lexington Police Department and the ATF.  The United States was represented by Assistant United States Attorney Roger W. West.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  Attorney General Sessions reinvigorated PSN in 2017, as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, local strategies to reduce violent crime.