MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Enrique Pacheco, age 30, of McAlester; Liliana Alvarez Soto, age 22, of Oklahoma City; Leroy Carl Fox, age 40, of McAlester; Matthew Scott Scraper, age 37, of McAlester; Alyssa Mae Syvongsa, age 19, of Tulsa; Shiana Nicole Johnson, age 24, of Ada; Feather Cheyenne Pacheco, age 23, of Tahlequah; Marc Anthony Cox, age 43, of Fort Gibson; Krystal Sue-Ann Mayen, age 30, of Oklahoma City; Kendall Brent Smith, age 50, of Okmulgee; Michael Sean Gunn, age 30, of Alma, Arkansas; Magdalena B. Mallard, age 34, of Fort Smith, Arkansas; Wesley Michael Rollins, age 31, of Tulsa;  Jamie Denise McDonald, age 30, of Tulsa; Kami Rai Gill, age 32, of Del City; Joel David Kazmierczak, age 46, of Broken Arrow; Alexandra Tristian Giemausaddle, age 31, of Anadarko; Trina Kay Rose, age 48, of Ada; Cheyenne Grace Alexus Tiger, age 22, of Oklahoma City; and Tina Marshall Stilwell, age 30, of Fort Gibson, were each indicted for Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A), punishable by not less than 10 years imprisonment and up to a $10,000,000 fine.

Muskogee residents Jose Miguel Pacheco, age 30; Maricsa Pacheco (Brown), age 29; Lannie Jo Carter, age 18; Daniel Pacheco, age 25; Teodoro Renteria Pacheco, age 55; Randy Eugene Langton, age 61; Tabitha Ann Bryant (Ford), age 37; Ervin Hernandez, age 31; and Christian Jonathan Hernandez, age 30, were also indicted for Drug Conspiracy. All 29 defendants are charged with conspiracy to distribute controlled substances, with some of those defendants additionally charged with other crimes, including International Money Laundering, Money Laundering Conspiracy and Distribution or Possession with Intent to Distribute Methamphetamine, Heroin, and/or Cocaine.

The Indictment alleges that beginning on November 4, 2016 and continuing until on or about September 11, 2019, in the Eastern District of Oklahoma and elsewhere, the defendants willfully and knowingly combined, conspired, confederated, and agreed together, and with others known and unknown to the Grand Jury, to commit offenses against the United States.

The Indictment also alleges that on certain dates from July 16, 2019 through August 8, 2019, in the Eastern District of Oklahoma, the defendants Enrique Pacheco, Lannie Jo Carter, Shaina Nicole Johnson, Trina Kay Rose, Daniel Pacheco, Maricsa Pacheco and Tabitha Ann Bryant, transmitted, transferred and attempted to transmit and transfer funds, that is United States Currency, by wire transfer from a place in the United States to a place outside the United States, with the intent to promote the carrying on of a specified unlawful activity, that is, the felonious importation, receiving, concealment, buying, selling, or otherwise dealing in a controlled substance, in violation of Title 21, United States Code, Section 1956(a)(2)(A) and Title 18, United States Code, Section 2, punishable by not more than 20 years imprisonment and a fine of the greater of $500,000.00 or two-times the amount of the transaction.  

The charges arose from a joint investigation led by the Drug Enforcement Administration, along with the Federal Bureau of Investigation, the Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Oklahoma Department of Corrections, the Oklahoma Highway Patrol, the Muskogee County Sheriff’s Office, the Muskogee Police Department, and the Tulsa County Sheriff’s Office. Additionally, many prominent agencies which are members of the DEA High Intensity Drug Trafficking Area Task Force (“HIDTA”), contributed to this investigation, including: the Tulsa Police Department, the Broken Arrow Police Department, the Chickasaw Nation Lighthorse Police Department, the Miami Police Department, the Moore Police Department, the El Reno Police Department,  the Yukon Police Department, the Duncan Police Department, the Norman Police Department, the Choctaw Police Department, the Edmond Police Department, the Oklahoma County Sheriff’s Office, the Canadian County Sheriff’s Office, the Rogers County District Attorney’s Office, and the Oklahoma County District Attorney’s Office. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (“OCDETF”) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney.

United States Attorney Brian J. Kuester said, “Each year hundreds of people in Oklahoma die as a result of drug overdoses. Among the drugs contributing to these tragic deaths are methamphetamine and heroin. This operation, known as operation “Pop Can,” targeted an organization dealing those deadly drugs in the Eastern District and throughout Oklahoma.” Kuester added, “This investigation has been a shining example of how the public benefits when law enforcement agencies collaborate. The scope, duration, and success of this takedown would not have been possible without the participation of the agencies involved.”

“Operation Pop Can has thus far resulted in 25 arrests, and the seizure of over 30 pounds of meth and approximately 5 pounds of heroin. This investigation is yet another, where a contraband phone is smuggled into a DOC facility, and then utilized by an inmate to orchestrate criminal activity spanning across all three Oklahoma Federal Judicial Districts,” said DEA Assistant Special Agent in Charge John Scott. “The success in this case was a direct result of the collaboration between federal, state, and local agencies.   It was a combined effort of everyone involved bringing their respective resources together to go after this criminal organization.  There is no doubt that the takedown of this group will have a positive effect on our community.”

“The FBI works closely with our federal, state, and local law enforcement partners to combat organized crime and illegal drug trafficking in Oklahoma. Today’s arrests are a reminder to those who prey on our communities - your criminal activity will not be tolerated and you will be brought to justice,” said Melissa Godbold, Special Agent in Charge of the FBI’s Oklahoma City Division.

“The selling of illicit drugs in our communities negatively impacts nearly all aspects of our lives,” said Tamera Cantu, IRS Special Agent In Charge of the Dallas Field Office.  “This investigation involves drug traffickers laundering their profits through wire transfers to Mexico.  The role of IRS-Criminal Investigation in narcotics cases is to track down these profits and dismantle the drug trafficking organizations. Today’s indictments emphasize our commitment to this role as we work alongside our law enforcement partners to protect people’s security, health and wellbeing by bringing these criminals to justice.”

John Scully, Commissioner of the Oklahoma Department of Public Safety said, “Partnering with the Eastern District of the United States Attorney’s Office and our other law enforcement partners on this case, has resulted in multiple arrests and indictments.  Those arrests will certainly keep Oklahomans safer and will have a positive impact on the drug epidemic in our communities. These Drug Trafficking Organizations commit violent crimes in order to continue their criminal enterprise and the desire by those addicted, to obtain these illegal drugs drives them to commit related crimes as well.  Oklahomans should be proud of the coordinated response by the U.S. Attorney’s Office and these law enforcement agencies, to keep them safe.”           

Oklahoma Bureau of Narcotics and Dangerous Drugs Control Interim Director Bob Cook said, “It takes law enforcement in a cooperative effort with our federal, state and local partners to dismantle these groups that threaten the peace and safety of our communities.  OBN is committed in our mission to eradicate criminal drug organizations and fight to protect law abiding citizens.”

Muskogee County Sheriff Rob Frazier said, “Today’s search warrants and arrests represent the continued efforts of the Muskogee County Sheriff’s Office to combat illegal drugs and make Muskogee County a safer place for all. This office will continue our strong alliances with local, state, and federal law enforcement agencies to maximize our efforts against drug distributors in Muskogee County.”

“The Tulsa County Sheriff’s Office is proud to be part of this collaboration”, said Tulsa County Sheriff Vic Regalado. “These arrests are a perfect example of how our communities and the citizens of the Eastern District are safer, when local, state and federal authorities work together to take drug dealers off the streets.”

A grand jury Indictment does not constitute evidence of guilt.  A grand jury Indictment is a method of bringing formal charges against the defendant.  All defendants are presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt.
 

EVANSVILLE - United States Attorney Josh J. Minkler announced today that Derek D. Knight, 25, Canton, Michigan, was sentenced to 60 months in prison by United States District Judge Richard L. Young in Evansville, Indiana. Knight previously pleaded guilty to charges involving credit card fraud and aggravated identity theft. Codefendant Dylan C. Garrett, 26, Taylor, Michigan, also pleaded guilty to the same charges and was previously sentenced to four years imprisonment.

On October 21, 2017, Knight and Garrett were arrested by the Evansville Police Department following a traffic stop. During a search of the vehicle, officers found more than 83 different credit cards in six different names, fraudulent driver’s licenses, two computers, and a credit card Magstripe reader/writer. Knight purchased credit and debit card numbers from the Dark Web and used them to make fraudulent credit cards.

Knight was the leader of a group who used the fraudulent credit cards and driver’s licenses in at least 13 different states, including Indiana. The fraudulent credit cards were used to purchase Visa debit cards and gift cards for Lowes, iTunes, and other retail merchants. Knight, Garrett, and other members of the criminal conspiracy made more than 100 fraudulent purchases at over 60 stores totaling more than $107,000.

"Nothing good happens on the Dark Web," said Minkler. "Those who use the internet for criminal intent in violation of federal law will be identified and prosecuted. The U.S. Attorney’s Office seeks to protect individuals from becoming victims of identity theft and promotes businesses having safeguards in place to prevent fraud."

This case was investigated the Federal Bureau of Investigation, United States Secret Service and Evansville Police Department.

"Identity theft devastates people’s credit and can be time-consuming and costly for victims to restore their credit and clear their name after having their identity compromised," said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. "This sentence demonstrates that no matter how sophisticated and pervasive a scheme may be, the FBI and our partners are dedicated to identifying, investigating and stopping perpetrators who take advantage of citizens."

"Cyber enabled Credit Card Fraud investigations utilizing the ‘Dark Web’ remain a top priority for the Secret Service," said Andrew Campion, Assistant Special Agent in Charge of the U.S. Secret Service Indianapolis Field Office. "We are committed to protecting our nation’s financial institutions and the citizens of Indiana. I would like to thank the U.S. Attorney’s Office, the FBI and Evansville Police Department for their cooperation and partnership in this case."

According to Assistant United States Attorney Kyle Sawa, who prosecuted this case for the government, Knight and Garrett will each serve three years of supervised release following their imprisonment.

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to prosecute those individuals engaged in fraudulent activity and identity fraud through the use of bogus access devices purchased on the dark web other advanced technology. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.5 and 4.6.

SHERMAN, Texas – Three North Texas residents have been indicted on health care fraud violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Demetrius Cervantes, 44, of McKinney, Texas, Amanda Lowry, 39, of Sherman, Texas, and Lydia Henslee, 27, of Denison, Texas, were named in a federal indictment returned by a grand jury on Sep. 11, 2019.  The defendants were each charged with conspiracy to obtain information from a protected computer and conspiracy to unlawfully possess and use a means of identification

Cervantes, Lowry, and Henslee were indicted by a federal grand jury on Sep. 11, 2019. If convicted, they each face up to 15 years in federal prison.

The indictment was announced today during a press conference held in Dallas with Texas U.S. Attorneys and the Assistant Attorney General of the Justice Department’s Criminal Division.   A total of 58 individuals across all four federal districts in Texas were charged for their alleged involvement in Medicare fraud schemes and networks of “pill mill” clinics resulting in $66 million in loss and 6.2 million pills.  Of those charged, 16 were doctors or medical professionals, and 20 were charged for their role in diverting opioids.   

According to the indictment, the defendants are alleged to have breached a health care provider’s electronic health record (EHR) system in order to steal protected health information and personally identifiable information belonging to patients of the provider.  The information that was stolen from the provider was “repackaged” in the form of false and fraudulent physician orders and sold to durable medical equipment (DME) providers and contractors.  Within approximately eight months, the defendants obtained more the $1.4 million in proceeds from the sale of the stolen information.  The proceeds of the offenses were traced, and the following forfeitable assets were identified: a 2019 Land Rover Range Rover SC; a 2019 Dodge Durango; a 2018 Polaris RZR XP4 1000 EPS; a 2019 Can-Am Outlander 450; a 2019 Sea-Doo RXT-X 300 W; a 2019 Sea-Doo RXT-X 300 W; and a 2019 Karavan Sea-Doo Move.

This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, U.S. Department of the Treasury, Internal Revenue Service, Criminal Investigation, and the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service.  It was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan, Jr.

It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.

            CONCORD – Matthew MacLeod, 34, of Rochester, pleaded guilty in federal court on Wednesday to possession of fentanyl with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime, United States Attorney Scott W. Murray announced today.

            According to court documents and statements made in court, on November 7, 2018, officers from the Rochester Police Department conducted a traffic stop of a vehicle driven by MacLeod.  During a later search of the vehicle, officers found multiple drugs, including cocaine and over 40 grams of fentanyl.  MacLeod possessed the drugs with the intent to sell them.  Officers also seized a firearm from the vehicle. 

            MacLeod is scheduled to be sentenced on January 6, 2020.

            “Armed drug dealers are a menace to the public,” said U.S. Attorney Murray. “I am grateful for the work of the Rochester Police Department and the FBI in removing this threat from our streets.  Close cooperation by law enforcement is essential to addressing the opioid crisis.”  

            "Each and every day, the FBI and our law enforcement partners are working hard targeting armed drug dealers like Mr. MacLeod, who illegally contribute to the opioid crisis that continues to devastate communities all over the Granite state.  By finally accepting responsibility for his criminal conduct, he's one step closer to being held accountable for poisoning our streets with dangerous drugs and putting residents in harm's way," said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.

            This matter was investigated by the Federal Bureau of Investigation and the Rochester Police Department.  The case is being prosecuted by Assistant U.S. Attorney Anna Krasinski.    

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BOSTON – A Boston man was arrested yesterday and charged in federal court in Boston with being a felon in possession of a firearm.

Naysaan Austin, 23, was charged with one count of being a felon in possession of a firearm. Austin was detained yesterday following an initial appearance before Magistrate Judge M. Page Kelley.

According to the charging document, on June 16, 2019, Austin was arrested in Dorchester for carrying a Sig Sauer .22 caliber Mosquito Pistol loaded with five rounds of ammunition. The serial number on the gun was obliterated. Austin is prohibited from possessing a firearm due to prior convictions punishable by more than one year in prison.

The charging statute provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Chief of Police William G. Gross made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Criminal Division is prosecuting the case.

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

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

TALLAHASSEE, FLORIDA – Stephanie Lynn Fleming, 42, and Helen Elizabeth Storey, 37, both of Waldorf, Maryland (and formerly of Tallahassee, Florida), were arrested in Maryland after a federal grand jury in Tallahassee returned an indictment charging them with conspiracy to commit health care fraud, 75 counts of health care fraud, false statements in connection with a health care matter, and two counts of aggravated identity theft. The offenses are alleged to have been committed in the Northern District of Florida. The indictment was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.

The indictment alleges that Storey was the owner of North Florida Mental Health (NFMH), a Tallahassee-based counseling center that employed Fleming as one of its licensed mental health counselors. The indictment further alleges that beginning on or about April 15, 2016, Fleming and Storey submitted and caused to be submitted false and fictitious claims for payment and reimbursement to Florida Medicaid and its managed care organizations (MCOs) for psychotherapy, psychiatric diagnostic evaluations, and therapeutic behavioral services. In total, it is alleged that Fleming and Storey improperly obtained or attempted to obtain more than $250,000 from Florida Medicaid.

The indictment also alleges that in order for Fleming and NFMH to receive Florida Medicaid claim reimbursements:

• In or about February 2016, Storey made and submitted a materially false Florida Medicaid Provider Enrollment Application in which she falsely attested that Fleming (1) had not pled guilty or nolo contendere to a felony, (2) had no disciplinary action taken against any of her business or professional licenses held in Florida or any other state, and (3) had not surrendered a business or professional license in Florida or any other state.

• From about March 2016 to about March 2017, Fleming made and submitted a materially false Provider Agreement and a materially false Practitioner Network Application, in which she falsely attested that she had not pled guilty or nolo contendere to illegal conduct within the past ten years, and that she had not pled guilty or nolo contendere to a felony.

Fleming and Storey face the following potential penalties:

• Conspiracy to commit health care fraud: a maximum of 20 years prison;

• Health care fraud: a maximum of 10 years in prison per count;

• False statements in connection to health care matters: a maximum of 5 years in prison per count; and

• Aggravated identity theft: a 2-year mandatory minimum prison sentence per count, consecutive to any other sentence imposed.

This case resulted from an investigation by the Florida Attorney General’s Office – Medicaid Fraud Control Unit and the United States Department of Health and Human Services Office of Inspector General. Assistant United States Attorney Justin M. Keen is prosecuting the case.

"Law enforcement works tirelessly to detect health care fraud, and we will continue to use every lawful tool at our disposal to prosecute those who defraud public programs of their limited funds," U.S. Attorney Keefe said. "This indictment is the next step in holding these two defendants accountable for their actions."

Florida Attorney General Ashley Moody said, "Providing health care services without a valid license is not just a safety concern, it is illegal. Our Medicaid Fraud Control Unit worked closely with federal officials on this case to stop health care fraud and protect patients. Fraud of any kind will not be tolerated in Florida, and we will continue to work with our federal partners to protect the integrity of the Medicaid program."

Special Agent in Charge Omar Perez Aybar of the U.S. Department of Health and Human Services, Office of Inspector General said "Medicaid recipients deserve to receive services from licensed health care professionals. Those who submit materially false information on Medicaid agreements and applications, and enrich themselves through the submission of false claims, will be investigated and held accountable by our state and federal law enforcement partners."

The arraignment of Fleming and Storey is scheduled for September 26, 2019, at 1:30 p.m. at the United States Courthouse in Tallahassee.

An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

WILMINGTON– United States Attorney Robert J. Higdon, Jr. announced that Chief United States District Judge Terrence W. Boyle sentenced ANTHONYWILLIAMS 36, of New Hanover County to 168 months’ imprisonment, followed by 5 years of supervised released. On January 15, 2018, WILLIAMS plead guilty to conspiracy to possess with the intent to distribute 5 kilograms or more of Cocaine, possession with intent to distribute 28 grams or more of Crack Cocaine and 5 kilograms or more of Cocaine and possession of a firearm in furtherance of a drug trafficking crime.

On June 6, 2017, the New Hanover County Sheriff’s Narcotics Division served a search warrant at WILLIAMS’s residence in Wilmington, North Carolina.  Law enforcement found more than 12 kilogram of Cocaine, 388 grams of Crack Cocaine, a loaded semi-automatic handgun, items used to convert cocaine into crack cocaine and $205,000 in cash. 

During the course of the investigation, law enforcement uncovered that WILLIAMS was responsible for distributing more than 60 kilograms of Cocaine and 4 kilograms of Crack Cocaine.

This case was part of a joint operation between the New Hanover and Brunswick County Sheriffs’ Offices and the Federal Bureau of Investigation’s Coastal Carolina Criminal Enterprise Task Force.   This Task Force uses resources from federal, state and local law enforcement to efficiently and effectively target and combat criminal groups operating in coastal, southern North Carolina.  A key component of this task force’s success involves the use of task force officers from local law enforcement who have direct knowledge of the criminal activity in their areas.

This case is also part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina.  This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.

The investigation of this case was conducted by the Federal Bureau of Investigation’s Coastal Carolina Criminal Enterprise Task Force and the New Hanover and Brunswick County Sheriffs’ Offices, North Carolina State Bureau of Investigations and the Wilmington Police Department.  Assistant United States Attorney Timothy Severo prosecuted the case on behalf of the government.  

United States (U.S.) Attorney Richard W. Moore, of the Southern District of Alabama, announces that Vaughan Regional Medical Center, a community hospital located in Selma, Alabama, along with emergency room physicians Dr. Phillip Alan Hicks and Dr. Sai S. Namburu, also of Selma, have agreed to pay $1.45 million to resolve allegations that they violated the False Claims Act.  Dr. Hicks, former Vaughan Chief of Staff and Director of Emergency Services, owned and operated Integrity Emergency Care, Inc., also a named and settling Defendant.

The allegations resolved by this settlement arose from a whistleblower lawsuit filed under the False Claims Act by Dr. Samuel Clemmons.  He alleged residents who were not fully licensed were independently covering shifts in the Vaughan Emergency Department (Vaughan ER Department).  According to Dr. Clemmons, he communicated with Vaughan and LifePoint Health about the illegal use of these residents in the Vaughan Emergency Department, and no action was taken.  The whistleblower will receive $275,000.00 of the recovered funds.

“The significance of this case highlights the responsibilities of medical professionals and healthcare administrators to protect their patients from harm, and to prevent fraud against any federal health insurance program during the performance of their duties,” said U.S. Attorney Richard W. Moore for the Southern District of Alabama.  “The citizens of the Selma community are entitled to quality healthcare administered by fully licensed physicians, and actions taken to put patient care in jeopardy and to circumvent state and federal law will not be tolerated.”

Per the investigation by the U.S., from mid-2009 to March 31, 2012, residents were recruited from the UAB-Selma Family Medicine Residency Program to independently treat patients in Vaughan’s ER Department outside the course and scope of their residency program.  The residents were not fully licensed and credentialed physicians, yet per the investigation, were paid $50 per hour cash along with licensed emergency room physicians who were also paid an extra $50 per hour to co-sign the residents’ charts.  This illegal moonlighting was perpetuated by falsifying medical records and submitting false claims to Medicare as if the services were provided by licensed physicians. 

“Patients expect treatment by fully qualified medical professionals, and taxpayers should never be paying for healthcare provided fraudulently by an unlicensed physician–as alleged in this case,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services.  “We will aggressively work with our law enforcement partners in pursuit of those who would defraud government health programs and the individuals they serve.”

The investigation and litigation were conducted by the Office of Inspector General, Department of Health and Human Services, and the U.S. Attorney’s Office.  The FCA claims settled are allegations only, and there has been no determination of liability.  A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Alabama at http://www.justice.gov/usao/als/. The case is captioned U.S. ex rel. Clemmons v. Vaughan Regional Medical Center, et al., Civil Action No. 2:14-cv-416-TFM-C (S.D. Ala.).

TALLAHASSEE, FLORIDA - Kevin Robert Lee, 35, of Tallahassee, was sentenced yesterday to 66 months in federal prison after he pleaded guilty to 20 counts of bank fraud, aggravated identity theft, and theft from a lending institution, as well as three counts of filing a false tax return. The crimes involved more than $800,000 in theft. The sentence was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.

Between June 2014 and November 2017, Lee was the lending director of FSU Credit Union (FSUCU), a Tallahassee-based credit union. As lending director, Lee’s position allowed him to open new customer accounts and approve lines of credit. He also served as treasurer of the Tallahassee Chapter of Credit Unions (TCCU), a non-profit organization that advocates legislation favorable to credit unions. In 2014, Lee used the name, date of birth, and social security number of the President of TCCU to create a second fraudulent account for that organization. Lee used the original TCCU account for fraudulent activity while leaving the new account for legitimate TCCU transactions. Lee also created two accounts using the names, dates of birth, and social security numbers of his college roommates and used them as "intermediary accounts" into which funds stolen from FSUCU customers were deposited. Lee transferred funds from inactive customer accounts to pay down the lines of credit to the intermediary accounts he created or deposited them into TCCU’s original bank account. He also used the stolen funds to pay off personal credit cards, make mortgage and car payments, and pay for his children’s private school tuition. In total, Lee stole over $800,000 from the FSUCU. Additionally, in February 2016, March 2017, and March 2018, Lee filed tax returns in which he failed to claim as income the funds he stole from FSUCU.

"One of the most important assets of American financial institutions is customers’ faith in their integrity, and this defendant used his position of trust to steal their funds and the credit union’s reputation," Keefe said. "This sentence should send a clear message that anyone who tries to violate the public’s trust will end up paying severe consequences."

Lee was sentenced to 66 months years in federal prison, followed by 5 years supervised release. Additionally, he was ordered to pay $979,839.49 in restitution to the FSUCU and its insurance company, and to the United States Internal Revenue Service. Additionally, Lee was also ordered to pay $11,589.48 in prosecution costs to the United States Internal Revenue Service.

Assistant United States Attorney Justin M. Keen prosecuted the case, which was investigated by the Florida Department of Law Enforcement and the Internal Revenue Service – Criminal Investigation, after being alerted by FSU Credit Union. Scott Schneider, Supervisory Special Agent, IRS-CI, said, "This case was an outstanding example of the kind of state and federal cooperation that puts criminals behind bars. Criminals will not be allowed to undermine the public’s confidence in upstanding institutions."

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

FRANKFORT, Ky. – On Tuesday, Joshua Bybee, 23, of Frankfort, Kentucky, was sentenced to 18 months in federal prison by United States District Judge Gregory F. Van Tatenhove for making a false statement in the acquisition of a firearm.

Bybee had previously pleaded guilty to one count involving the making of a false statement during the purchase of a firearm. On January 14, 2019, Bybee entered Dan’s Discount Jewelry and Pawn in Frankfort, a federally licensed firearms dealer, and attempted to purchase a 9mm pistol. In his attempt, Bybee represented that he was not legally prohibited from purchasing or possessing a firearm when, in fact, he was subject to two separate domestic violence orders from two different individuals. Both domestic violence orders restrained Bybee from harassing, stalking, or threatening individuals covered under the order. Additionally, both orders prohibited the Bybee from possessing a firearm while each order was in effect. Federal law prohibits the possession of firearms by persons subject to domestic violence orders.  The business declined to sell the firearm to Bybee after a background check revealed the domestic violence orders.

Bybee must serve 85 percent of his 18 month sentence. Upon completion of his imprisonment, he will be under the supervision of the United States Probation Office for a period of three years.

“The making of false statements in an attempt to obtain a firearm is a serious felony offense, especially when the person is prohibited for possessing firearms by domestic violence orders,” said United States Attorney Robert M. Duncan, Jr. “The defendant attempted to conceal the existence of his domestic violence orders by misrepresenting his status to the federally licensed firearms dealer.  Fortunately, the background check worked; it prevented the sale, kept the firearm out of the hands of a an individual already subject to two court orders due to violence, and helped prevent a more dangerous situation.”       

The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Tommy Estevan, Acting Special Agent in Charge, ATF, Louisville Field Division, jointly made the announcement.

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. The PSN program was reinvigorated 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.

– END –

BOSTON – A Woburn man pleaded guilty yesterday in federal court in Boston to being a felon in possession of a firearm and ammunition.

Vasily Hardy, 28, pleaded guilty to one count of being a felon in possession of a firearm and ammunition before U.S. District Court Senior Judge Rya W. Zobel. Sentencing is scheduled for Dec. 12, 2019. Hardy was previously charged by criminal complaint and arrested in January 2019.  He has been in custody since his arrest.

According to charging documents, on Nov. 14, 2018, a police officer conducted a vehicle stop after observing the vehicle’s driver make multiple traffic violations. After identifying the driver as Hardy, the officer was informed over the radio that there was an active warrant for Hardy’s arrest. Hardy was subsequently arrested and his vehicle was searched. During the search, the officer recovered a Sig Sauer, semi-automatic pistol loaded with an eight-round magazine of .45 caliber ammunition as well as a second eight-round magazine. During an interview with law enforcement, Hardy confirmed that the handgun belonged to him and that he did not have a license to carry a firearm in Massachusetts. Further investigation revealed that Hardy was prohibited from possessing firearms and ammunition due to a previous conviction of larceny from a person in 2013, which is punishable by more than a year in jail.

The charging statute provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided by the Wellesley Police Department, Norfolk County District Attorney’s Office, and the Hillsborough County Attorney’s Office in New Hampshire. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.

United States Attorney Richard W. Moore of the Southern District of Alabama announced that Tobais Deshawn McKay, 40, of Ft. Meyers, Florida, was sentenced in federal court in Mobile to 322 months’ imprisonment.  In April of 2019, McKay pled guilty to three federal charges, attempt to distribute cocaine, felon in possession of a firearm and using, carrying or possessing a firearm in relation to or in furtherance of a drug trafficking felony. 

Court documents filed in connection with his guilty plea reflect that McKay made contact with a confidential informant working with Homeland Security Investigations agents about obtaining large amounts of cocaine in Mobile which he would then take back to south Florida for distribution.  They agreed on two kilograms as the initial delivery.  When McKay arrived in Mobile to accept delivery, he brought cash and jewelry to exchange for the drugs.  He was also found in possession of four guns.  McKay’s prior felony convictions include Aggravated Battery with a Deadly Weapon and Trafficking in Heroin.  McKay’s criminal history supported a finding under the United States Sentencing Guidelines that he is a career criminal, which set his advisory guideline range at 262 months to 287 months.

United States District Court Judge William H. Steele imposed the sentence of 322 months’ imprisonment, consisting of 262 months on the drug count, and 120 months on the felon in possession count, with those sentences running concurrent.  Judge Steele ordered the 60 month mandatory minimum sentence for the using, carrying and possessing a firearm in relation to or in furtherance of the drug trafficking felony to run consecutively, as required by that statute.  The total sentence was 322 months.  Judge Steele also ordered that McKay will serve a total of 5 years on supervised release, following his release from imprisonment.  He ordered that McKay will pay $300 in special mandatory assessments, but no fine was imposed.  McKay will also undergo testing and treatment for drug abuse as a separate condition of his supervision. 

The case was investigated by the Mobile County Sheriff’s Office and the Department of Homeland Security.  It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria A. Bedwell.

United States Attorney Richard W. Moore of the Southern District of Alabama announced that Marcus Antoine Bivins, 30, of Monroeville, Alabama, was sentenced in federal court on two charges—carjacking and discharging a firearm in furtherance of a crime of violence.  Bivins pled guilty to the charges in May of 2019. 

According to court documents filed in connection with his guilty plea, Bivins admitted that on January 2, 2018, he and another man were in a GMC Yukon driven by the victim. Bivins was directing the victim where to go, ostensibly to pick up the other man’s truck. Bivins told the victim to drive down a dirt road that Bivins said led to his grandmother’s house, but was in fact a dead end. At the end of the road, Bivins pulled a pistol and pointed it at the victim’s head. The victim heard a click, which was Bivins pulling the trigger. The gun did not fire. The victim tried to escape from the car, and found the doors were locked. The second man tried to put a nylon cooler over the victim’s head, but ultimately the victim escaped the car. As he ran through the woods, the victim heard several shots. The victim found help and reported the incident to the Monroe County Sheriff’s Office.

The next day, Sheriff’s deputies responded to a wreck involving the GMC Yukon taken from the victim. At the scene of the wreck were Bivins and the other man, who both complained that they needed medical attention. Deputies asked Bivins if he was armed, and Bivins claimed he was not. However, during the process of treating Bivins, medical personnel in the ambulance found a Smith & Wesson .40 caliber pistol between his legs. The other man was interviewed and corroborated the victim’s account of Bivins taking the vehicle at gunpoint and shooting at the victim as he ran away. The second man said he and Bivins used the victim’s Yukon to attempt to burglarize businesses, including by ramming the car into the wall of one business. The man reported he and Bivins had wrecked the Yukon in a confrontation with another subject.

United States District Court Judge William H. Steele imposed a sentence of 177 months imprisonment, consisting of 57 months on the carjacking charge and 120 months on the gun charge, ordering that they run consecutively.  Bivins will serve a term of 5 years on supervised release upon the completion of his sentence, during which he will undergo drug and alcohol abuse treatment and mental health treatment.  Bivins was not ordered to pay a fine, but the judge ordered that he pay the victim of the carjacking $6,425 in restitution.  Bivins was also ordered to pay $100 in special assessments.  Bivins faces pending charges in Monroe County Circuit Court for murder and robbery first degree. 

The case was investigated by the Monroe County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.

WILMINGTON, Del. – A Smyrna woman was sentenced today by U.S. District Judge Maryellen Noreika to 18 months in prison for defrauding the U.S. Social Security Administration (“SSA”) of more than $175,000.

According to court documents, Deborah Vaughn, 63, spent over a decade collecting fraudulent Social Security funds intended for her deceased mother-in-law. Each month for twelve years, the SSA deposited approximately $1,100 into a bank account belonging to Vaughn’s mother-in-law. Vaughn, who was a joint-user on the bank account, fraudulently accessed and withdrew the money—knowing that her mother-in-law, the rightful beneficiary of the Social Security funds, had died in 2006.  When the SSA contacted Vaughn in 2013 and again in 2018, Vaughn repeatedly lied, including pretending to be her deceased mother-in-law, to ensure that the Social Security deposits would continue.

David C. Weiss, U.S. Attorney for the District of Delaware, commented on the sentence: “By defrauding the government, Vaughn’s conduct subverted the purpose of the SSA: to provide a safety net for vulnerable individuals in our society. The Court’s sentence reflects the seriousness of fraud against the government and should serve as a warning to those inclined to lie and cheat to obtain Social Security payments they do not deserve.”

“I want to thank the U.S. Attorney’s Office for its support in bringing this individual to justice and recovering funds for Social Security,” said Gail S. Ennis, Inspector General for the Social Security Administration. “We will continue to work closely with SSA and other agencies to identify beneficiary deaths and pursue those who misuse those payments after someone dies.”

SSA’s Office of the Inspector General investigated this case; Assistant U.S. Attorney Christopher R. Howland prosecuted it.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Criminal Action No. 19-cr-63-MN.

INDIANAPOLIS – The Department of Justice and United States Attorney Josh J. Minkler announce that the former president of a drug compounding company was sentenced to prison for his convictions for conspiring to defraud the Food and Drug Administration (FDA) and for multiple counts of distributing adulterated drugs.

U.S. District Judge James R. Sweeney II sentenced Paul J. Elmer, 68, the former president and owner of Pharmakon Pharmacueticals, Inc. to 33 months in prison. Elmer also was ordered to pay a $25,000 fine and serve one year of supervised release after serving his prison sentence.

“The Department of Justice takes seriously conduct that unlawfully undermines the safety of compounded drugs,” said Assistant Attorney General Jody Hunt of the Department of Justice's Civil Division. “We will not tolerate actions that impede the FDA’s efforts to ensure the safety of such drugs, and we will thoroughly investigate and prosecute those who knowingly endanger patients.”

“Pharmaceutical manufacturers, such as Pharmakon, have a duty to ensure they are producing drugs that are formulated correctly and are safe for public consumption,” said Minkler. “The U.S. Attorney’s Office is committed to prosecuting those individuals who prioritize profit over safety and negligently compromise the integrity of their product.”

On April 10, 2019, after an eight-day trial, a jury in Indianapolis, Indiana, convicted Elmer, formerly a licensed pharmacist, of one felony count of conspiracy to defraud the FDA and to obstruct FDA inspections, three misdemeanor counts of introducing adulterated drugs into interstate commerce, and six misdemeanor counts of adulterating drugs while held for sale after shipment of a drug component in interstate commerce.

Pharmakon was a Noblesville, Indiana drug compounding company, founded by Elmer, which made and distributed compounded, sterile, intravenous drugs to military and civilian hospitals throughout the United States.

In June 2017, a grand jury returned an indictment against Elmer and Pharmakon’s former compliance director, Caprice R. Bearden, for the conspiracy and adulteration offenses. On April 29, 2019, Bearden was sentenced to five months in prison and three years of supervised release, following her entry of a guilty plea to all charges.

The evidence at trial showed that, between 2013 and 2016, at Elmer’s direction, Pharmakon routinely shipped compounded drugs to hospitals without having received laboratory test results that verified that the drugs were their purported strengths. Furthermore, evidence shows that, despite later receiving laboratory test results showing potency failures, Elmer did not recall over- or under-potent drugs, notify the FDA of the potency failures, or conduct any investigation to determine the cause of the potency failures. The evidence showed that Pharmakon shipped customers at least 70 lots of over- or under-potent drugs from 2013 to 2016.

FDA consumer safety officers testified at trial about two inspections of Pharmakon they conducted in 2014. One inspection was prompted by Pharmakon’s distribution of 200 percent potent midazolam, a sedative that was used to treat premature infants, to an Indianapolis hospital.  The consumer safety officers testified to observing — and informing Elmer of — numerous violations of FDA regulations during each inspection. And Former Pharmakon employees testified that Elmer and Bearden misled and interfered with these FDA inspections to prevent the FDA from knowing about the potency failures as well as other aspects of the business. Former employees also testified that certain changes in process that Elmer and Bearden told the FDA Pharmakon would enact never happened.

According to other evidence at the trial, in February 2016, Pharmakon distributed 2,460 percent super-potent morphine sulfate, an opioid pain medication, to hospitals in Indianapolis and Chicago. Nurses at the Indianapolis hospital administered the morphine, not knowing that it was 2,460 percent super potent, to infants in the pediatric unit. Three infants suffered adverse effects from the narcotic overdose. One infant needed to be revived through the administration of Naloxone (commonly known as Narcan) and sent by helicopter to a nearby hospital with a neo-natal intensive care unit. These adverse events led to a final FDA inspection in which FDA consumer safety officers testified that they discovered evidence of multiple previous potency failures that had been concealed by Bearden during the first two inspections. Former employees testified that Elmer and Bearden misled and interfered with this final FDA inspection as well.

“Producing unsafe drugs puts patients at risk and is particularly concerning when they reach already vulnerable populations such as premature infants. This conviction demonstrates that those, including drug compounders, who distribute harmful drugs will be held accountable under the law,” said Director Catherine A. Hermsen, FDA Office of Criminal Investigations. “The FDA continues to play an important role in protecting patients — including young children — and we will continue to work with our law enforcement partners to pursue and bring to justice those who place profits before the health of U.S. patients.”

“When drug compounders disregard safety standards and violate the law, patient health can be put at significant risk. In this case, we saw unacceptable behavior from the defendant whose company distributed dangerous products that led to serious adverse events in infants,” said Stacy Amin, FDA Chief Counsel. “The FDA is fully committed to working with the Department of Justice to stop these bad actors and protect patients from potential public health risks.”

Assistant Attorney General Jody Hunt and U.S. Attorney Minkler commended the FDA’s Office of Criminal Investigations, which conducted the investigation. The case was prosecuted by Assistant U.S. Attorney Cindy J. Cho of the U.S. Attorney’s Office for the Southern District of Indiana and Senior Litigation Counsel David A. Frank of the Department’s Consumer Protection Branch, with assistance from Paul Joseph of the FDA’s Office of Chief Counsel.

For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Indiana visit its website at https://www.justice.gov/usao-sdin.

NEW ORLEANS, LOUISIANA – MARK DOUGLAS, age 72, a resident of New Orleans, Louisiana, pled guilty on September 17, 2019 to a one-count bill of information for embezzlement of union funds before the Honorable Greg G. Guidry, announced U.S. Attorney Peter G. Strasser. Sentencing is scheduled for January 20, 2019.

According to court documents, between November 11, 2011 and January 17, 2015, DOUGLAS acted as President of the United Food and Commercial Workers Local 1101. DOUGLAS was responsible for the local’s grievances with the Domino Sugar Company and running the day to day operations of the union. 

Union officers were permitted to file “lost time” claims to be reimbursed for conducting union business. Lost time is generally taken for arbitrations, attorney visits, accountant visits, or negotiations with Domino Sugar Company. During his time as President, DOUGLAS filed fraudulent “lost time” claims with the union, totaling approximately $6,280.91.

DOUGLAS faces 5 years of imprisonment, a $10,000 fine, and 3 years of supervised release.

U.S. Attorney Strasser praised the work of the U.S Department of Labor, Office of Labor-Management Standards, in investigating this matter.  The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Supervisor, General Crimes.

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Jeffrey H. Ernisse, 63, was sentenced today to 20 years in prison for producing and possessing child pornography in 2015 and engaging in illicit sexual conduct with a minor in the Philippines between 2014 and 2015.  U.S. District Court Judge Lynn S. Adelman of the Eastern District of Wisconsin ordered the sentence to run consecutive to a state sentence on which Ernisse has another three years to serve, and will be followed by ten years of supervised release.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin made the announcement.

According to admissions made in connection with his guilty plea, while law enforcement was investigating Ernisse for production of child pornography in Wisconsin, they discovered evidence of additional child pornography production from the Philippines on Ernisse’s digital devices.  He traveled to the Philippines in June 2014 and married a woman he met on the internet.  He sexually assaulted her four-year-old daughter and then recorded the sexual assaults on March 10, 2015 and April 17, 2015.

“Across the world, predators like Jeffrey Ernisse are exploiting children and sharing those despicable acts with others online.  This case demonstrates our commitment to pursue justice against predators, wherever the case leads.  We must use every tool available to confront child sex abuse,” stated U.S. Attorney Krueger.   

The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) with the cooperation of the Sheboygan Police Department.  Former Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Megan J. Paulson of the Eastern District of Wisconsin prosecuted the case.

This investigation is a 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 U.S. Attorneys’ Offices and 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.

SHERMAN, Texas –A 43-year-old Mexican national with a prior felony conviction has been sentenced to federal prison for immigration violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Julio Edgar Ruiz-Bautista pleaded guilty on July 19, 2019, to unlawful reentry by a deported alien and was sentenced to 54 months in federal prison by U.S. District Judge Amos Mazzant on Sep. 18, 2019

According to information presented in court, on Feb. 22, 2019, Ruiz-Bautista was taken in to custody following an investigation by ICE Dallas Fugitive Operations Team 3. The investigation revealed Ruiz-Bautista had been previously removed from the United States on Oct. 3, 2017, following serving a five year sentence for aggravated sexual assault of a child in Dallas County.  Ruiz-Bautista was indicted on federal immigration violations on Mar. 20, 2019 and will be deported after serving this prison sentence.

“The judge’s sentence was, I would suspect, a result of the fact that this offender had a history of sexual assault of a child, and then continued to illegally re-enter this country,” said U.S. Attorney Joseph D. Brown.  “These are the types of offenders that make the immigration issue difficult for everyone.”

This case was investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) and prosecuted by Assistant U.S. Attorney William R. Tatum.

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The Department of Justice announced today that compounding pharmacy Diabetic Care Rx LLC, or Patient Care America (PCA), PCA’s Chief Executive Officer Patrick Smith, PCA’s former Vice President of Operations Matthew Smith, and private equity firm Riordan, Lewis & Haden Inc. (RLH) have agreed to resolve a lawsuit alleging that they violated the False Claims Act through their involvement in a kickback scheme to generate referrals of prescriptions for expensive pain creams, scar creams, and vitamins, regardless of patient need, which were reimbursed by TRICARE, the federal health care program for military members and their families. PCA and RLH have agreed to pay $21,050,000, Patrick Smith has agreed to pay at least $300,000, and Matthew Smith has agreed to pay at least $12,788. These settlement amounts were based on defendants’ ability to pay.

“Kickback schemes taint decision-making and cause taxpayer-funded health care programs to pay for items or services that patients may not need,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We will hold accountable health care providers involved in such schemes designed to induce referrals of prescriptions that are reimbursed by federal health care programs.”

“The prosecution and resolution of this case demonstrates the U.S. Attorney’s Office continuing commitment to hold all responsible parties to account for the submission of claims to federal health care programs that are tainted by unlawful kickback arrangements,” said United States Attorney Ariana Fajardo Orshan. “Kickback schemes lead to unnecessary medical services and drive up the cost of health care for all.”

“This settlement sends a clear message about the Defense Criminal Investigation Service (DCIS) and its law enforcement partners’ unwavering commitment to protect the integrity of TRICARE, the Department of Defense’s health care program which serves to protect our U.S. military, their family members, and military retirees,” said Special Agent in Charge Cyndy Bruce of the DCIS Southeast Field Office. “Health care providers who manipulate and abuse the TRICARE program in order to seek financial gain by submitting false claims and demonstrating a lack of regard for TRICARE patients and the health care plan which is charged to provide their medical care, will be diligently investigated and held accountable for their actions.”

This settlement resolves a lawsuit pursued by the United States against PCA for allegedly paying kickbacks to outside “marketers” to target military members and their families for prescriptions for compounded creams and vitamins, which were formulated to ensure the highest possible reimbursement from TRICARE. The United States alleged that the marketers paid telemedicine doctors who prescribed the creams and vitamins without seeing the patients, or in some cases, even speaking to them. The settlement also resolves the United States’ allegations that PCA and a marketer routinely jointly paid the copayments owed by patients referred by the marketer, without any verification of the patients’ financial needs, and then disguised the payments as coming from a sham charitable organization, which was affiliated with the marketer. Finally, the settlement resolves the United States’ allegations that PCA continued to claim reimbursement for prescriptions referred by the marketers despite regularly receiving complaints from patients that revealed the prescriptions were being generated without patient consent or a valid patient-prescriber relationship. RLH, the private equity firm that managed PCA on behalf of its investors, allegedly knew of and agreed to the plan to pay outside marketers to generate the prescriptions and financed the kickback payments to the marketers. Patrick Smith and Matthew Smith were executives of PCA who allegedly executed the scheme. 

The lawsuit resolved by the settlement was originally filed under the whistleblower (or “qui tam”) provisions of the False Claims Act by Marisela Medrano and Ada Lopez, two former employees of PCA. The qui tam provisions permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The False Claims Act authorizes the United States to intervene and take over such lawsuits, which the United States did here, in part. The share to be awarded in this case has not been determined yet.

This civil settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch (Fraud Section), the United States Attorney’s Office for the Southern District of Florida, the Defense Criminal Investigative Service, and the U.S. Food & Drug Administration’s Office of Criminal Investigations. 

The lawsuit is captioned United States ex rel. Medrano and Lopez v. Diabetic Care Rx LLC, d/b/a Patient Care America, et al., No. 15-CV-62617 (S.D. Fla.). The claims resolved by the settlement are allegations only and there has been no determination of liability.

The Justice Department today announced that it has filed a lawsuit against the City of Troy, Michigan, alleging that the City violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) by treating places of worship worse than equivalent nonreligious assemblies in its zoning code and denying zoning approval to a Muslim group seeking to establish a place of worship.

“Zoning laws that treat mosques, churches, synagogues, and other religious assemblies less favorably than nonreligious assemblies illegally restrict religious exercise in violation of the Religious Land Use and Institutionalized Persons Act,” said Eric Dreiband, Assistant Attorney General for the Civil Rights Division of the Department of Justice. “The Department of Justice is committed to ensuring that local governments do not discriminate against faith communities in violation of federal law.”

“Troy is obligated to treat religious assemblies and institutions on equal terms with nonreligious assemblies and institutions,” said Matthew Schneider, United States Attorney for the Eastern District of Michigan. “This complaint reflects our commitment to protect the religious liberties of all people in this district.”

The complaint, filed in the Eastern District of Michigan, alleges that in 2018 the City of Troy(City) denied zoning approval to Adam Community Center, an organization of Muslims who live and work in Troy, to operate a place of worship. In 2018, after a nine-year search for a permanent location in Troy, the Center acquired a building in one of the City’s commercial districts to use as a community center and place of worship. The City’s zoning laws allow a nonreligious place of assembly, such as a theater or banquet hall, to use the same building without further approval. But because of zoning restrictions on places of worship, the Center had to overcome an additional hurdle and seek City approval to use the building.

On June 19, 2018, Troy’s zoning board denied the Center’s application. The complaint alleges that the City’s denial of approval for the Center, and its unequal treatment of all places of worship in the City compared to nonreligious uses, violate a provision of RLUIPA that requires religious assemblies to be treated at least as well as nonreligious assemblies.  The suit also alleges that the City’s actions imposed a substantial burden on the Center’s religious exercise in violation of another provision of RLUIPA.

RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.

In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force.  The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.

Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.