Greenbelt, Maryland – Zhi Tian Lang, age 23, of Gaithersburg, Maryland, pleaded guilty on September 25, 2019, to receipt of child pornography and to extortion by threat to ruin the reputation of another.  Lang admitted that he threatened to post revealing photos of the victims on social media and other Internet platforms if they did not send him sexually explicit photographs and/or videos of themselves. 

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Acting Chief Marcus Jones of the Montgomery County Police Department.

According to his guilty plea, between at least January and October 2014 Lang communicated with minor female victims ranging in age from 13 to 17 years old and located throughout the United States, including South Dakota, Wisconsin, and New Jersey.  Lang used an Internet messaging application and used the name “Seth” when contacting his victims.  Lang would obtain pictures of minor victims from their social media accounts or through direct flirtation.  The picture often depicted the victims in their underwear.  Lang would then demand that unless the victim provided him with nude pictures, he would post the initial pictures on a public Internet account or send them directly to one or more of the victim’s acquaintances.

As detailed in his plea agreement, at least eight minor victims provided Lang sexually explicit photos and/or videos of themselves in response to Lang’s threats.  Lang admitted that he posted photographs of minor victims to coerce them and sent at least one photo to another individual.

As a result of his conviction, Lang will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).  Unless indigent, Lang will also be required to pay a special assessment of $5,000.

Lang faces a minimum mandatory sentence of five years and a maximum of 20 years in prison for receipt of child pornography and a maximum of two years in prison for extortion by threat to ruin the reputation of another.  U.S. District Judge Peter J. Messitte has scheduled sentencing for January 8, 2020 at 9:30 a.m.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.  For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.       

United States Attorney Robert K. Hur commended the FBI and the Montgomery County Police Department for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorney Joseph R. Baldwin, who is prosecuting the federal case.

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PHILADELPHIA – United States Attorney William M. McSwain joined fellow Justice Department officials today at a press conference to announce a coordinated health care fraud enforcement action across seven federal districts involving more than $800 million in loss and the distribution of over 3.25 million opioid pills in “pill mill” clinics. The takedown includes new charges against 48 defendants for their roles in submitting over $160 million in fraudulent claims. Of those 48 defendants, 15 are doctors or medical professionals, and at least 24 defendants were charged for their roles in diverting opioids. In the Eastern District of Pennsylvania, 17 defendants (five of whom are doctors or medical professionals) were arrested, and the conduct involved submission of more than $4 million in fraudulent claims and distribution of approximately 738,000 oxycodone pills to the streets of this District.

Today’s announcement comes one year after the Department of Justice announced the formation of the Newark/Philadelphia Regional Medicare Fraud Strike Force, a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section, and the U.S. Attorney’s Offices for the Eastern District of Pennsylvania and the District of New Jersey. The Strike Force focuses its efforts on aggressively investigating and prosecuting complex cases involving patient harm, large financial loss, and the illegal prescribing and distribution of opioids and other dangerous narcotics.

“As today’s takedown demonstrates, this Strike Force has produced precisely what we hoped it would – and by that I mean tangible results,” said U.S. Attorney McSwain. “We have brought together a wealth of resources, knowledge, and subject-matter expertise – that of health care fraud prosecutors, civil enforcement attorneys, data analysts, and law enforcement agencies – all working to stop fraud, waste, and abuse within our federal health care programs and to stem the tide of illegal opioid distribution. These are top priorities of the Department of Justice and of my Office, and our focus in this area continues to pay off.”

At the press conference, U.S. Attorney McSwain announced details about the following cases charged in the Eastern District of Pennsylvania:

Timothy F. Shawl, M.D., 60, of Garnet Valley, PA, a medical doctor, was charged with five counts of unlawful distribution of controlled substances. He allegedly wrote prescriptions for controlled substances that were outside the usual course of professional practice and not for a legitimate medical purpose. As alleged in the indictment, Shawl wrote prescriptions for controlled substances for patients without seeing, treating, or examining them. Shawl allegedly prescribed hundreds of prescriptions for oxycodone to approximately 16 patients, amounting to over 29,000 oxycodone tablets. The Federal Bureau of Investigation (FBI) conducted the investigation. The case is being prosecuted by Trial Attorney Debra Jaroslawicz of the DOJ Fraud Section.

The second case involves defendants Neil K. Anand, M.D., 42, of Bensalem, PA, and Asif Kundi, 31, Atif Mahmood Malik, 34, and Viktoriya Makarova, 33, all of Philadelphia, PA. Anand, a medical doctor, Kundi and Malik, unlicensed foreign medical school graduates, and Makarova, a nurse practitioner, were each indicted on one count of health care fraud and one count of conspiracy to distribute controlled substances. The charges stem from the defendants’ alleged submission of false and fraudulent claims to Medicare, health plans provided by the United States Office of Personnel Management (OPM), and Independence Blue Cross (IBC). The claims allegedly were for “Goody Bags,” which were stuffed with medically unnecessary prescription medications that were dispensed by non-pharmacy dispensing sites owned by Anand. In total, Medicare, OPM, and IBC allegedly paid over $4 million for the Goody Bags. Patients were allegedly required to take the Goody Bags in order to receive prescriptions for controlled substances.

According to the indictment, Malik and Kundi wrote prescriptions for controlled substances using blank prescriptions that were pre-signed by Anand or Makarova. Anand and Makarova provided over 10,000 prescriptions for Schedule II controlled substances, of which over 7,000 were for oxycodone, for a staggering total of over 634,000 oxycodone tablets distributed from this scheme. The investigation was conducted by the following agencies: FBI, Department of Health and Human Services – Office of Inspector General (HHS-OIG), United States Postal Service – Office of Inspector General (USPS-OIG), the Office of Personnel Management, the Pennsylvania Office of Attorney General, and the Philadelphia Police Department. The case is being prosecuted by DOJ Trial Attorney Jaroslawicz.

Additionally, 12 indictments were unsealed yesterday involving charges against 12 people for allegedly possessing oxycodone with intent to distribute. The indictments charge that, from September 2016 through June 2019, the 12 defendants all presented forged prescriptions for oxycodone to various pharmacies outside of Philadelphia, in order to obtain oxycodone to distribute to others. The defendants, all from Philadelphia, allegedly drove to Pennsylvania pharmacies in Marcus Hook, Drexel Hill, and Kennett Square, and a New Jersey pharmacy in Mount Laurel, to fill these forged prescriptions. The defendants are charged with at least two, and up to 32, counts of possession with intent to distribute oxycodone. The defendants are charged with having received anywhere from 6,300 milligrams to 135,000 milligrams of oxycodone, which is approximately 75,000 oxycodone pills.

Charged were: Lamar Dillard, 37; Jermaine Grant, 29; Katrina Tucker, 32; Maurice Bertrand, 31; Courtney Brockenborough, 34; Alan Alexander Harrison, 29; Abdullah Howard, 23; Jonathan Metellus, 32; Clinton Monte Bullock, 29; Crystal Coleman, 31; Marques Russell, 35; and Joseph Michael Simmons. One defendant, Metellus, is also charged with one count of health care fraud, for allegedly using his Medicaid card to purchase prescription drugs with a forged prescription. These cases were investigated by the Drug Enforcement Administration, HHS-OIG, the Pennsylvania Department of State’s Bureau of Enforcement and Investigations, the Chester County District Attorney’s Office, and the Easttown Township Police Department. They are being prosecuted by Assistant U.S. Attorneys David E. Troyer, Elizabeth Abrams, Joan Burnes, and Mary Kay Costello, all of the Eastern District of Pennsylvania.

Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in conjunction with its Medicare Fraud Strike Force, as well as the U.S. Attorney’s Offices for the Eastern District of Pennsylvania, District of New Jersey, Western District of Pennsylvania, Eastern District of New York, Western District of New York, District of Connecticut, and District of Columbia.

“Physicians and other medical professionals who fraudulently bill our federal health care programs are stealing from taxpayers and robbing vulnerable patients of necessary medical care. The medical professionals and others engaging in criminal behavior by peddling opioids for profit continue to fuel our nation’s drug crisis,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice will continue to use every tool at our disposal, including data analytics and traditional law enforcement techniques, to investigate, prosecute, and punish this reprehensible behavior and protect federal programs from abuse.”

“Today's indictments confirm the FBI's commitment to hunting down doctors and other healthcare professionals who act like drug dealers. The opioid crisis is devastating families here in Philadelphia and across the country. The FBI and its law enforcement partners will continue to focus on corrupt physicians and others driving the epidemic,” said Michael T. Harpster, Special Agent in Charge of the Philadelphia Division of the FBI.

“Today’s law enforcement actions show we are holding alleged bad actors accountable and working to prevent further harm to beneficiaries and taxpayers,” said Maureen R. Dixon, Special Agent in Charge, Philadelphia Regional Office of the Inspector General, U.S. Department of Health and Human Services. “HHS-OIG will continue to work with our law enforcement and community partners to combat health care fraud and drug diversion in the Philadelphia Region.”

“The DEA’s Diversion Investigators and Tactical Diversion Squads are missioned with the identification, investigation, and arrest of rogue DEA Registrants and drug trafficking organizations involved in the illegal distribution of controlled substances such as oxycodone and other prescription painkillers,” said Jonathan A. Wilson, Special Agent in Charge of the DEA’s Philadelphia Field Division. “Working with our partner agencies such as the U.S. Department of Health & Human Services, the U.S. Department of Labor, and the Federal Bureau of Investigation, the DEA will continue to pursue federal criminal cases and parallel civil proceedings against the registrants and organizations that seek to divert these powerful painkillers that have contributed to the opioid epidemic.”

U.S. Postal Service Office of Inspector General Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office, stated: “The Postal Service spends billions of dollars per year on health care related costs for postal employees, the majority of which is for legitimate purposes. However, a few medical providers try to take advantage of the system. USPS – OIG special agents will vigorously investigate health care fraud allegations that touch the Postal Service and will work with our law enforcement partners to bring fraudsters to justice.”

“The opioid, heroin, and fentanyl epidemic is devastating Pennsylvania communities, and it is fueled in part by prescription drug abuse,” said Pennsylvania Attorney General Josh Shapiro. “The defendants had a responsibility to help their patients, but instead they are charged with giving them dangerous opioids that they did not need. They also allegedly committed millions of dollars in insurance fraud, which causes rates for all consumers to increase. I’m proud to work with our law enforcement partners to put a stop to this criminal enterprise and protect the people of Pennsylvania.”

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.

Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced James Edward Phillips, III (45, Jacksonville) to 10 years in federal prison for selling cocaine and possessing a firearm as a convicted felon. Phillips had pleaded guilty on June 11, 2019.

According to court documents, on four occasions during the summer of 2018, Phillips sold cocaine to a confidential informant working at the direction of the Bureau of Alcohol, Tobacco, Firearms and Explosives. On two of those occasions, Phillips also sold a total of three firearms, one of which was a rifle equipped with a 50-round drum magazine. At the time, Phillips was a 15-time convicted felon and therefore prohibited from possessing firearms or ammunition under federal law. His previous convictions include kidnapping with a firearm, armed burglary with assault or battery, armed burglary, battery on a law enforcement officer, possession of a firearm by a convicted felon, burglary, and grand theft.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Brian A. Benczkowski, Assistant Attorney General for the Justice Department’s Criminal Division; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and Derrick L. Jackson, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Atlanta Regional Office,announced that a total of 30 defendants were charged with offenses relating to their alleged participation in various schemes to defraud Medicare, Medicaid and private insurance. The conduct allegedly resulted in more than $86 million in fraudulent billings. Those charged included physicians as well as other medical and business professionals.

The charges announced involve schemes alleged to have billed Medicare, Medicaid and private insurance companies for medically unnecessary services, such as home health, prescriptions drugs, durable medical equipment and addiction treatment services.

“Health care programs provide vital services to Americans,” said U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida.  “Those who perpetuate these pervasive health care fraud schemes steal taxpayer dollars from intended beneficiaries and threaten the viability of government programs.  We commend the coordinated and continued efforts of our federal law enforcement partners to root out fraud and abuse in our healthcare system.”  

“The defendants charged today allegedly bilked the American people to the tune of millions in fraudulent billings,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.  “All Americans should stand with the Department as we fight the fight against these unscrupulous schemes in Florida, Georgia, and across the country.”

“Being a healthcare professional in the Medicare program is a privilege, not a right.  When physicians and other healthcare providers put their own financial gain above patient well-being and honest billing of government health programs, they violate the basic trust that taxpayers extend to healthcare professionals,” said Special Agent in Charge Derrick L. Jackson of the HHS-OIG Atlanta Regional Office.  “Today’s arrests puts corrupt medical professionals on alert that law enforcement will do everything possible to root out all forms of waste, fraud and abuse in our federal health care programs.”

“The FBI and its federal, state and local partners are working tirelessly every day to detect and combat schemes like those announced today,” said Special Agent in Charge George L. Piro of the FBI’s Miami Field Office.  “Despite our efforts, we still need the public's help in reporting suspicious activity.  If anyone suspects they are a victim of health care fraud please call your local FBI office or the HHS Office of Inspector General.”

The following are some of the health care fraud cases have been charged recently in the Southern District of Florida:

Substance Abuse Treatment:

U.S. v. Peter Port, Brian Dublynn, & Jennifer Sanford, Case No. 19-20583-CR-Williams

Peter Port, 64, of Boca Raton, Brian Dublynn, 62, of Fort Lauderdale, and Jennifer Sanford, 57, of Hollywood, were charged for their alleged participation in a scheme to defraud private health insurance companies.  Port, Dublynn and Sanford were each charged with one count of conspiracy to commit health care fraud and wire fraud and four counts of health care fraud.  In addition, Port and Dublynn were each charged with one count of conspiracy to commit money laundering and five counts of money laundering.  The defendants caused Safe Haven Recovery Inc. (Safe Haven), a substance abuse treatment facility in Miami, and several clinical laboratories to submit false and fraudulent claims to health insurance plans for addiction treatment services that were not provided as billed and laboratory tests that were not medically necessary.  DOJ Trial Attorney David A. Snider is prosecuting this case.   

Home Health:

U.S. v. Dr. Richard S. Mallia, Case No. 19-20623-CR-Altonaga

Richard S. Mallia, D.P.M., 55, a podiatrist, was charged by indictment with one count of conspiracy to defraud the United States and to receive kickbacks, one count of conspiracy to commit health care fraud and wire fraud, and three counts of health care fraud, for his role in a health care fraud conspiracy that caused a loss of approximately $7.7 million to the Medicare program.  The indictment alleges that Mallia accepted cash kickbacks in exchange for writing medically unnecessary home health prescriptions and also participated in a scheme to submit claims to Medicare for relatively expensive foot procedures that he never performed.  DOJ Trial Attorney Alexander Thor Pogozelski is prosecuting this case.   

U.S. v. Maribel Sera, Case No. 19-20625-CR-Williams

Maribel Sera, 51, of Hialeah, was charged by information with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program.  According to the information, the defendant participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to TC Home Health Care of Hialeah.   Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case. 

U.S. v. Juan Jose Mesa, et al., Case No. 19-20574-CR-Gayles

Juan Jose Mesa, 58, and Madelaine Varona, 47, both of Miami, owners and/or operators of All Excellent OT-PT Service LLC of Miami and Cruz Healthcare Corp. of Miami, respectively; Sandra Cardona, 47, of Hialeah, an allegedly unlicensed therapist; and Silvia Salvatori, 67, of Pembroke Pines, Florida, a licensed massage therapist, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud.  Mesa and Varona were also charged with five and six counts of health care fraud, respectively.  The charges stem from Mesa’s and Varona’s alleged roles in a scheme to defraud Part A of the Medicare program of more than $4 million by billing for home health services that were not rendered and paying kickbacks to patient recruiters in exchange for patient referrals.  Cardona and Salvatori, who were allegedly not licensed to provide physical therapy, accepted payment from a licensed physical therapist, paid by their co-conspirators, in exchange for allegedly obtaining signed patient visitation forms from Medicare beneficiaries used to submit false and fraudulent claims.  Assistant U.S. Attorney Kevin Larsen is prosecuting this case. 

U.S.  v. Sara Tania Ruiz and Maria Laura Prieto, Case No. 19-20588-CR-Moore

Sara Tania Ruiz, 55, of Hialeah, and Maria Laura Prieto, 60, of Miami, were charged by indictment with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program.  According to the indictment, the defendants participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to home health agencies, including ACM Home Health Corp. of Miami and TC Home Health Care Inc. of Hialeah.  Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.

U.S. v. Marisol Padilla, Case No. 19-20589-CR-Martinez

Marisol Padilla, 48, of Hialeah, was charged by indictment with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program.  According to the indictment, the defendant participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to TC Home Health Care of  Hialeah.  Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case. 

U.S. v. Ana Maria Fernandez and Berta Leon, Case No. 19-20573-CR-Ungaro          

Ana Maria Fernandez, 62, and Berta Leon, 69, of Miami, Florida, were charged with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program.  According to the indictment, the defendants participated in a conspiracy to use their company ABC Medical Solutions Corp. of Miami, to solicit and receive kickback payments for the referral of Medicare beneficiaries to home health agencies, including ACM Home Health Corp. of Miami and TC Home Health Care Inc. of Hialeah, Florida.  Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.  

U.S. v. Jocelyn De La Caridad Perez and Joaquin Guevara, Case No. 19-20582-CR-Altonaga

Jocelyn De La Caridad Perez, 41, and Joaquin Guevara, 46, both of Miami, were charged by indictment with one count of conspiracy to receive health care kickbacks.  Perez was also charged with one count of conspiracy to commit health care fraud and wire fraud, and Guevara was also charged with three counts of receipt of kickbacks in connection with a federal health care program.  According to the indictment, Perez was an administrator of Joe Rehabilitation and Diagnostic, Inc. (Joe Rehab), an outpatient rehabilitation facility in Doral, Florida, that purportedly provided therapy services to Medicare beneficiaries.  As part of the fraudulent scheme, Perez allegedly conspired with others to pay kickbacks and bribes for the referral of Medicare beneficiaries to Joe Rehab so their information could be used to submit fraudulent claims to Medicare for services purportedly provided, regardless of whether the Medicare beneficiaries needed or received the services.  Assistant U.S. Attorney Anne P. McNamara is prosecuting this case.  

Private Insurance:

U.S. v. Ivan Bejerano,Case No. 19-20591-CR-King

Ivan Bejerano, 49, of Miami, was charged by indictment with seven counts of health care fraud and one count of conspiracy to commit health care and wire fraud.  According to the indictment, Dynamic Physical Rehab Inc. (Dynamic) was a Miami medical clinic that purportedly provided private insurance beneficiaries with various medical treatments and services. From June 2017 through July 2019, Bejerano allegedly submitted and caused the submission of claims, via interstate wires, totaling approximately $2.5 million that falsely and fraudulently represented that various health care benefits, primarily physical therapy, were medically necessary, prescribed by a doctor, and had been provided by Dynamic to insurance beneficiaries of Blue Cross Blue Shield (BCBS).  Assistant U.S. Attorney Shannon Shaw is prosecuting this case.   

U.S. v. Deivys Ernesto Alvarez,Case No. 19-20604-CR-Bloom

Deivys Ernesto Alvarez, 48, of Hialeah, was charged by indictment with one count of conspiracy to commit health care fraud and wire fraud and four counts of health care fraud.  According to the indictment, Alvarez was the owner of Diagnostic Center of Medley Inc., a Miami medical clinic.  AP & JL Medical Center Inc. (AP & JL) was another Miami medical clinic that purportedly provided private insurance beneficiaries with various medical treatments and services.  Alvarez and co-conspirators allegedly recruited and paid Comcast Corp. and Telemundo Corp. employees, through Diagnostic Center of Medley Inc., and referred those employees and/or the employees’ personal information to AP & JL to fraudulently bill BCBS.  Alvarez and his co-conspirators allegedly submitted and caused the submission of false and fraudulent claims, via interstate wires, totaling approximately $800,500.  Assistant U.S. Attorney Timothy J. Abraham is prosecuted this case.

U.S. v. Francisco Abreu Tartabull, Case No. 19-20605-CR-Altonaga

Francisco Abreu Tartabull, 53, of Miami, was charged by indictment with conspiracy to commit health care fraud and wire fraud in connection with his role in a $2.1 million private insurance fraud scheme.  According to the indictment, Tartabull was the owner and operator of South Dade Medical Center Inc. (South Dade), a Miami medical clinic that purportedly provided Blue Cross Blue Shield insurance beneficiaries with various medical treatments and services.  As part of the fraudulent scheme, Tartabull and his co-conspirators submitted more than $2.1 million in fraudulent claims to Blue Cross Blue Shield.  These claims falsely represented that the benefits Tartabull’s clinic had billed insurance for were medically necessary, prescribed by a doctor, and had been provided by South Dade to these beneficiaries.  As a result of these false claims, Blue Cross Blue Shield paid Tartabull’s clinic more than $920,000.  Tartabull then used this ill-gotten money for his own personal use and benefit, and to further the fraud.  The FBI investigated this case.  Assistant U.S. Attorney Anne P. McNamara is prosecuting this case.  Assistant U.S. Attorney Anne P. McNamara is prosecuting this case. 

Pharmacy:

U.S. v. Elba Cobos Baile and Yolanda Castano, Case No. 19-20581-CR-Cooke

Elba Cobos Baile, 60, and Yolanda Castano, 55, both of Miami, were charged by indictment with four counts of health care fraud and one count of conspiracy to commit health care fraud and wire fraud.  Cobos and Castano were the owners and operators of Pharmacy Solution, a retail pharmacy in Miami-Dade County. The indictment alleges that from on or about March 1, 2012 to September 17, 2014, Cobos and Castano submitted and caused the submission of claims, via interstate wires, which falsely and fraudulently represented that various health care benefits, primarily prescription drugs, were medically necessary, prescribed by a doctor and had been provided by Pharmacy Solution to Medicare beneficiaries.  As a result of these false and fraudulent claims, Medicare prescription drug plan sponsors allegedly made payments funded by the Medicare Part D Program to the corporate bank accounts of Pharmacy Solution in the approximate amount of at least $2.1 million.Assistant U.S. Attorney Christopher J. Clark is prosecuting this case.   

U.S. v. Tania Rodriguez and Rafael Vidal, Case No. 19-20584-CR-King

Tania Rodriguez, 48, and Rafael Vidal, 61, both of Miami, were charged by indictment with one count of conspiracy to commit healthcare and wire fraud and seven counts of health care fraud.  According to the indictment, the defendants participated in a conspiracy to use their company, American United Pharmacy Corp. of Miami, to offer and pay kickbacks for the referral of Medicare beneficiaries to their pharmacy, and to submit false and fraudulent claims to Medicare for prescription drugs that were not provided to Medicare beneficiaries.  Assistant U.S. Attorney David Turken is prosecuting this case.   

U.S. v. Ricardo Ignacio Perez and Ricardo Perez-Leon, Case No. 19-20594-CR-Williams

Ricardo Ignacio Perez, 54, and Ricardo Perez-Leon, 31, both of Miami, the owners and operators of three Miami pharmacies, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud; one count of conspiracy to defraud the United States and pay and receive health care kickbacks; and three counts of health care fraud.  The indictment alleges that the defendants participated in a scheme to pay kickbacks and bribes to patient recruiters and to fraudulently bill Medicare drug plan sponsors for prescription medications.  The indictment alleges that, during the course of the fraudulent scheme, the defendants received approximately $5.3 million from Medicare drug plan sponsors for prescription medications that were medically unnecessary, never provided and/or never purchased by the defendants’ pharmacies.  DOJ Trial Attorneys Sara Clingan and Tim Loper are prosecuting the case.  

Durable Medical Equipment:

U.S. v. Steven Kahn and Pamela Edwin, Case No. 19-80169-CR-Rosenberg

Steven Kahn, 61, of Boca Raton, and Pamela Edwin, 33, of Delray Beach, the owner and office manager, respectively, of a Broward county telemedicine company, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud and three counts of wire fraud. Kahn was also charged with five counts of money laundering.  The indictment alleges that the defendants paid kickbacks and bribes to physicians in exchange for signing doctors’ orders, and that the defendants then sold the doctors’ orders to Medicare providers who used the orders to submit approximately $39 million in fraudulent claims to Medicare.  DOJ Trial Attorneys Sara Clingan and Catherine Wagner are prosecuting the case.

U.S. v. Jordan Karlick, Michael Moranz and Jordan Chibnick, Case No. 19-80168-CR-Rosenberg

Jordan Karlick, 33, of Boca Raton, Michael Moranz, 32, of Lake Worth, and Jordan Chibnick, 36, of Plantation, the owners of Palm Beach durable medical equipment (DME) companies, were charged by indictment with one count of conspiracy to commit healthcare fraud and wire fraud, one count of conspiracy to defraud the United States and pay kickbacks, four counts of health care fraud, and three counts of payment of kickbacks.  The indictment alleges that the defendants paid kickbacks and bribes in exchange for signed doctors’ orders for DME, which the defendants used to fraudulently bill Medicare for over $23 million.  The indictment alleges that defendants sought to impede Medicare beneficiary’s ability to return DME that they did not want or need to defendants’ companies, so that defendants could continue to bill Medicare for that DME.  DOJ Trial Attorneys Sara Clingan and Catherine Wagner are prosecuting the case.

U.S. Attorney Fajardo Orshan commends the investigative efforts of HHS-OIG and FBI.

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

The Fraud Section leads the Medicare Fraud Strike Force (MFSF), which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, MFSF maintains 15 strike forces operating in 24 districts and has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

BOSTON – A Brockton man was indicted yesterday in federal court in Boston with being a felon in possession of a firearm.

Clive McFarlane, 36, was indicted on one count of being a felon in possession of a firearm. 

According to the charging documents, on Aug. 27, 2019, McFarlane was found in possession of a Rohm Gesellschaft .25 caliber revolver, one round of Remington .25 caliber ammunition and seven rounds of Cascade Cartridges .25 caliber ammunition. McFarlane had previously been convicted of being a felon in possession of a firearm and other crimes punishable by more than a year in jail and therefore was prohibited from possessing firearms.

The charging statute provides for a sentence of up to 10 years in prison, up to three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. 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; Plymouth County District Attorney Timothy J. Cruz; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Criminal Division is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in 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.

United States Attorney Erica H. MacDonald today announced a federal criminal complaint against SEQUANA CIGOLO, 38, and JASON LYNNDROTTI WINSTON, 48, for their roles in illegally supplying a firearm that was used in multiple shootings in Minneapolis, Minnesota and Chicago, Illinois. CIGOLO and WINSTON were arrested on September 25, 2019. They will make their initial appearances today at 2:00 pm before Magistrate Judge Becky R. Thorson in U.S. District Court in Minneapolis, Minnesota.

According to allegations in the criminal complaint and law enforcement affidavit, on September 18, 2019, in Chicago, Illinois, while walking to lunch, “Individual A,” was shot in the back with a 9mm semi-automatic pistol by “Individual B,” leaving her paralyzed. Chicago Police Department (CPD) Officers responded, collected evidence, and subsequently identified Individual B as the suspect. On September 21, 2019, CPD Officers located Individual B and attempted to take him into custody. Individual B shot a CPD Officer three times using a 9mm semi-automatic pistol before fleeing. Hours later, CPD Officers again located Individual B and while attempting to take him into custody, Individual B fired several shots. CPD Officers exchanged gunfire with Individual B, wounding him and subsequently taking him into custody. 

According to allegations in the criminal complaint and law enforcement affidavit, an urgent firearms trace by Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) indicated that the 9mm semi-automatic pistol that was recovered during Individual B’s arrest, was purchased by CIGOLO on July 11, 2019, from Bill’s Gun Shop in Robbinsdale, Minnesota. Law enforcement agents learned that CIGOLO’s brother was the victim of a shooting on July 28, 2019. A forensic comparison of the ballistic evidence from all three crime scenes (two in Chicago and one in Minneapolis) revealed that the firearm used in the Minneapolis shooting was the same 9mm semi-automatic pistol used in the Chicago shootings, and was the same firearm CIGOLO purchased on July 11, 2019. 

According to allegations in the criminal complaint and law enforcement affidavit, on September 24, 2019, during an interview with law enforcement, CIGOLO admitted to purchasing a firearm for her ex-boyfriend’s cousin, WINSTON, who had asked her to do so because he was a convicted felon and therefore could not legally purchase a firearm himself. CIGOLO admitted to lying on the ATF Form 4473, stating that she was purchasing the firearm for herself, when in fact she was not. After purchasing the 9mm semi-automatic pistol, CIGOLO gave the firearm to WINSTON, who paid her approximately $250.00. That same day, law enforcement interviewed WINSTON at his residence, where they found a pistol box and the original pistol safety lock for a 9mm semi-automatic pistol, and a magazine loaded with 9mm rounds of ammunition. WINSTON admitted to transferring the 9mm semi-automatic pistol to the individual who was charged in Hennepin County with the July 28, 2019, shooting of CIGOLO’s brother.

“The Chicago Police Department works tirelessly on a daily basis to stem the flow of illegal firearms into the city. Prohibited persons and those who supply firearms to those individuals will be held accountable and brought to justice,” said Superintendent Eddie Johnson of the Chicago Police Department. “I would like to extend my gratitude to the special agents of the ATF Chicago and St. Paul Field Divisions and the officers of the Minneapolis Police Department who worked hand in hand with our officers over the course of this investigation.”

This case is the result of an investigation conducted by the ATF Chicago Field Division, the Chicago Police Department, the ATF St. Paul Field Division, and the Minneapolis Police Department.

This case was made possible by investigative leads generated from the ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.

This case is being prosecuted by Assistant U.S. Attorney Nathan H. Nelson.

Defendant Information:

SEQUANA CIGOLO, 38

Minneapolis, Minn.

Charges:

• Making a false statement to acquire firearms (straw purchase of a firearm), 1 count

JASON LYNNDROTTI WINSTON, 48

Minneapolis, Minn.

Charges:

• Making a false statement to acquire firearms (straw purchase of a firearm), 1 count
• Aiding and abetting felon in possession of a firearm, 1 count

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

Edgar Veytia, a dual citizen of the United States and Mexico, and the former State Attorney General for the State of Nayarit, Mexico, was sentenced today to 20 years’ imprisonment and ordered to pay $1 million in forfeiture following his guilty plea to participating in an international heroin, cocaine, methamphetamine and marijuana manufacturing and distribution conspiracy responsible for importing illegal drugs from Mexico to the United States.  The sentencing was held before United States District Judge Carol Bagley Amon in federal court in Brooklyn

Richard P. Donoghue, United States Attorney for the Eastern District of New York; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; William D. Bodner, Special Agent-in-Charge, Drug Enforcement Administration, Los Angeles Division (DEA); Timothy M. Dunham, Special Agent-in-Charge, Federal Bureau of Investigation, Washington, D.C. Field Office (FBI); and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI), announced the sentence.

“When Joaquin ‘El Chapo’ Guzmán was sentenced to life imprisonment, we warned that there were more days of reckoning to come. The sentence imposed on this corrupt Mexican government official makes this just such a day,” stated United States Attorney Donoghue.  “Neither Mexican cartel leaders nor corrupt officials who assist them should sleep well tonight. We are coming for you.”  Mr. Donoghue thanked the DEA New York Field Office for its assistance on the case.

“Today’s sentencing of Mr. Veytia shows DEA’s strong commitment to the rule of law and collaboration with other Government agencies,” said DEA Special Agent-in-Charge Bodner. “Our agents will continue to be relentless in the worldwide pursuit of drug traffickers and the corrupt government officials who protect them.”

“Veytia abused his position in the government and protected drug traffickers who brought dangerous drugs through his country to the U.S. on behalf of a violent Mexican drug cartel," stated FBI Special Agent-in-Charge Dunham.  “The FBI stands for fair and honest law enforcement and will continue to investigate any individual who places greed over the rule of law and commits such crimes that bring harmful drugs and corruption to our communities.”

“Working with the cartel, Veytia used Mexican law enforcement to protect drug loads, intimidate and harm rival drug traffickers.  He also used his role as Attorney General to obstruct justice when cartel members were arrested,” stated HSI Special Agent-in-Charge Fitzhugh.  “Law enforcement partnerships in investigating this case is what brought this individual who used his position of power for criminal gains to now face justice for his actions.”

U.S. law enforcement has been investigating the H-2 Cartel, a violent Mexican drug trafficking organization based in Nayarit and Sinaloa, Mexico, that was previously led by Juan Francisco Patron Sanchez.  The H-2 Cartel had numerous distribution cells in the United States, including in Los Angeles, Las Vegas, Ohio, Minnesota, North Carolina and New York.  The DEAestimates that between January 2013 and February 2017, the H-2 Cartel distributed on a monthly basis approximately 500 kilograms of heroin, 100 kilograms of cocaine, 200 kilograms of methamphetamine and 3,000 kilograms of marijuana into the United States and earned millions of dollars in illegal proceeds.  In furtherance of its drug trafficking operation,the H-2 Cartel used firearms and physical violence, including torture and dozens of homicides.

Veytia used his position as the top law enforcement officer in the State of Nayarit to assist and sanction the cartel’s operations in Mexico, in exchange for bribes on a monthly basis.  Vetyia also directed other corrupt Mexican law enforcement officers under his supervision to assist the H-2 Cartel, released members and associates of the cartel from prison after they had been arrested for drug trafficking-related crimes, instructed corrupt Mexican law enforcement officers to target rival drug traffickers for wiretaps and arrests and assisted the H-2 Cartel in carrying out murders and other acts of violence. In addition, Veytia assisted the H-2 Cartel in covering up the murder of a rival drug trafficker in October 2015.

The case was investigated by the DEA, FBI and HSI as part of the Organized Crime Drug Enforcement Task Forces (OCDETF).  The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation and prosecution of major drug trafficking organizations.  The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section and the Narcotics and Dangerous Drug Section of the Department of Justice.  Assistant U.S. Attorneys Michael P. Robotti, Craig R. Heeren and Ryan C. Harris of the Eastern District of New York are prosecuting the case, together with Trial Attorneys Jason Ruiz and Anthony Aminoff of the Narcotics and Dangerous Drug Section.

The Defendant:

Edgar Veytia  
Age: 48
EDNY Docket No. 17-CR-115 (CBA)

HOUSTON – A 65-year-old Lubrizol Corporation employee has been taken into custody following the return of a 10-count indictment for wire fraud, announced U.S. Attorney Ryan K. Patrick.

A federal grand jury returned the indictment under seal Sept. 17 against James Arthur Camp, of New Braunfels. Today, he is expected to make his initial appearance before U.S. Magistrate Judge Christina Bryan at 2 p.m.

The indictment alleges Camp was employed at Lubrizol Corporation in Deer Park, a  provider of specialty chemicals for the transportation, industrial and consumer markets. While employed there, he allegedly defrauded the company of $9,256,712.54 from approximately April 1998 through November 2017.

In order to execute the scheme, Camp submitted fraudulent invoices for laboratory services from two companies he owned, knowing they had not actually been performed. He then allegedly caused Lubrizol to issue payments to those companies. The indictment further alleges he used the fraudulently - obtained payments for his own personal use and benefit.

If convicted, Camp faces up to 20 years imprisonment on each count as well as a possible $250,000 maximum fine.         

The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.

NEWARK, N.J. – The Justice Department today announced a coordinated health care fraud enforcement action across seven federal districts in the Northeastern United States, involving more than $800 million in losses and the distribution of over 3.25 million pills of opioids in “pill mill” clinics and doctors’ offices. The takedown includes new charges and convictions by guilty plea against 54 defendants for their roles in submitting nearly $800 million in fraudulent claims made to federal payers, including 15 doctors or medical professionals, and 24 defendants are charged for their roles in diverting opioids.

The cases prosecuted by this Office in connection with the takedown reflect all of the different facets of our health care and opioids work. Doctors, marketing executives, pharmacists, and the owners and operators of a genetic testing laboratory have been charged with, or have plead guilty to a range of criminal conduct, including: the criminal prescription of highly-addictive opioid pills to patients with no medical need, the paying of kickbacks and other fraud related to unnecessary genetic testing, fraud and abuse in the compounded medicines business, and other crimes that victimize federal health care programs like Medicare and Medicaid, as well as patients across New Jersey who need medical care.

Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the District of New Jersey, Eastern District of Pennsylvania, Western District of Pennsylvania, Eastern District of New York, Western District of New York, District of Connecticut, and District of Columbia. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, IRS-Criminal Investigation, DOD-DCIS, FDA-OIG, the Medicaid Fraud Control Unit, and other federal and state law enforcement agencies participated in the operation.

The charges involve individuals contributing to the opioid epidemic, including medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the Centers for Disease Control, approximately 115 Americans die every day of an opioid-related overdose.

Today’s arrests and guilty pleas come one-year after the Department of Justice announced the formation of the Newark/Philadelphia Regional MFSF, a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section, the U.S. Attorney’s Offices for the District of New Jersey and the Eastern District of Pennsylvania, as well as law enforcement partners. The Strike Force focuses its efforts on aggressively investigating and prosecuting complex cases involving patient harm, large financial loss, and the illegal prescribing and distribution of opioids and other dangerous narcotics.

“Rooting out and prosecuting abuses within our health care system is a top priority for my office,” Craig Carpenito, U.S. Attorney for the District of New Jersey, said. “In New Jersey, these illegal activities run the gamut from over-prescribing dangerous opioids, to running pharmacies improperly, to mis-prescribing unnecessary medications, to tricking patients – often the elderly or vulnerable – into seeking expensive genetic testing or compounded prescriptions they don’t need. Today’s message should be clear: We are dedicated to combatting all forms of illegal activity in the health care arena. If you put patients’ health at risk with criminal intent, you will be dealt with as a criminal.”

“Physicians and other medical professionals who fraudulently bill our federal health care programs are stealing from taxpayers and robbing vulnerable patients of necessary medical care. The medical professionals and others engaging in criminal behavior by peddling opioids for profit continue to fuel our nation’s drug crisis,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice will continue to use every tool at our disposal, including data analytics and traditional law enforcement techniques, to investigate, prosecute, and punish this reprehensible behavior and protect federal programs from abuse.”

“The FBI does not care about your status in life, your professional standing, your level of income, or your personal connections when you break the law,” Assistant Special Agent in Charge Wayne Jacobs of the FBI’s Newark Field Office said. “If you try to scam the system, if you exploit your professional license just to pad your pockets, if you mortgage your morals just to inflate your bank account, you will only find yourself in deeper debt. We are committed to protecting the public; we are intent on rooting out fraud and corruption; we are duty-bound to track down and arrest anyone who is breaking our federal laws. Don’t be next.”

*********

Among those charged in the District of New Jersey are the following:

Two Doctors Mis-Prescribing Opioids

• Evangelos Megariotis, 66, of Clifton, New Jersey, an orthopedic surgeon who owns and operates Clifton Orthopedic Associates in Clifton, New Jersey. Megariotis was charged by complaint with prescribed large amounts of controlled substances, such as oxycodone, Percocet, Xanax, and promethazine with codeine outside the usual course of medical practice and without a legitimate purpose. He wrote these allegedly illegal prescriptions to patients he knew were abusing opioids. In two years, Megariotis allegedly prescribed more than 1.4 million tablets of oxycodone and over 450 gallons of promethazine with codeine cough syrup to his patients. The Government is represented by Assistant U.S. Attorney Erica Liu, Deputy Chief of the Criminal Division.

• Joseph Santiamo, 64, of Staten Island, New York, a doctor who specialized in geriatric care, was charged by complaint with prescribing powerful opioids to patients he knew were addicted. According to the complaint, Santiamo also solicited sexual favors from some patients in return for writing them an opioid prescription. In a recorded statement to agents, Santiamo admitted he knew his prescriptions were being abused, but kept writing them anyway. Just twenty of Santiamo’s patients allegedly received more than 100,000 oxycodone pills for no legitimate medical purpose. The Government is represented by Assistant U.S. Attorney Brian Urbano of the Criminal Division.

Ex-Sales Rep. Committing Compounding Fraud:

• Kent Courtheyn, of Kent, Ohio, a former medical device sales representative, indicted for his alleged role in marketing compounded (i.e. customized) medicines to patients who didn’t need them. Courtheyn allegedly steered prescriptions for these expensive compounded medications to his conspirators, and took a cut for his role. The indictment alleges that the scheme caused at least $10 million in losses to participating health care plans, at least $3.5 million of which was paid by TRICARE, the federal program that pays for health care services for veterans. The Government is represented by Assistant U.S. Attorney Erica Liu, Deputy Chief of the Criminal Division.

PrimeAid Pharmacy Indictment:

• Yana Shtindler, 44, and Samuel “Sam” Khaimov, 47, both of Glen Head, New York; Alex Fleyshmakher, 33, of Morganville, New Jersey; and Ruben Sevumyants, 36, of Marlboro, New Jersey, charged by indictment. From 2009 through August 2017, Prime Aid Pharmacies (located in Union City, New Jersey and Bronx, New York) engaged in a slew of fraudulent activities including: (a) paying illegal bribes and kickbacks to doctors and doctors’ employees in exchange for prescription referrals to Prime Aid; (b) billing health insurance providers for medications that were never actually provided to patients; and (c) opening new pharmacies and concealing the true ownership of those pharmacies to obtain lucrative contracts they otherwise would not have obtained. The scheme of billing for medications that were never dispensed to patients was so egregious that Prime Aid received reimbursement payments of over $65 million for prescription medications that it never even ordered from distributors or had in stock. In total, Prime Aid’s multiple schemes defrauded Medicare, Medicaid, and private insurers out of at least $99 million. The Government is represented by Assistant U.S. Attorneys Joshua L. Haber and Jason Gould of the Criminal Division.

Empire Pharmacy Criminal Complaint:

• Eduard “Eddy” Shtindler, 36, of Paramus, New Jersey, charged by complaint with conspiracy to commit health care fraud and conspiracy to pay illegal kickbacks to a doctor. From 2012 through at least 2017, Shtindler owned and operated Empire Pharmacy in West New York, New Jersey. For most of that time, Shtindler allegedly paid bribes to a psychiatrist in Hudson County, New Jersey, to induce the doctor to send prescriptions to Empire. On occasion, Shtindler secreted cash bribes in pill bottles that were delivered to the doctor. In exchange for these bribes, the doctor steered patients to Empire pharmacy. In addition, starting in 2015, Empire – at Shtindler’s direction – perpetrated a fraudulent scheme to induce doctors to send expensive specialty medication prescriptions to Empire. Specialty medications often required “prior authorization” before being approved for reimbursement by Medicare, Medicaid, and some private insurance providers. To receive prior authorization approval more quickly and successfully than any other pharmacies, Empire employees, including two pharmacists, repeatedly falsified prior authorization forms for medications for various conditions, including psoriasis and Hepatitis C. In total, Empire defrauded Medicare and Medicaid out of at least $2 million. The Government is represented by Assistant U.S. Attorney Joshua L. Haber of the Criminal Division.

Ark Labs Genetic Testing Indictment:

• Dr. Matthew S. Ellis, 53, of Gainesville, Florida; Edward B. Kostishion, 59, of Lakeland, Florida; Kyle D. Mclean, 36, of Arlington Heights, Illinois; Kacey C. Plaisance, 38, of Altamonte Springs, Florida; Jeremy Richey, 39, of Mars, Pennsylvania; and Jeffrey Tamulski, 46, of Tampa, Florida. Kostishion, Plaisance, and Richey operated Ark Laboratory Network LLC (Ark), a company that purported to operate a network of laboratories that facilitated genetic testing. Ark partnered with Privy Health, Inc., a company that McLean operated, and another company to acquire DNA samples and Medicare information from hundreds of patients through various methods, including offering $75 gift cards to patients, all without the involvement of a treating health care professional. Ellis, a physician based in Gainesville, served as the ordering physician who authorized genetic testing for hundreds of patients across the country that he never saw, examined, or treated. These included patients from New Jersey and various other states where Ellis was not licensed to practice medicine. Through this process, Ellis, Kostishion, Plaisance, and McLean submitted and caused to be submitted fraudulent orders for genetic tests to numerous clinical laboratories. These orders falsely certified that Ellis was the patients’ treating physician and, in many cases, contained false information indicating that a patient had a personal or family history of cancer, when, in fact, the patient had no cancer history whatsoever. In 2018 alone, Medicare paid clinical laboratories at least approximately $4.6 million for genetic tests that Ellis ordered in this manner. In addition, Kostishion, Plaisance, Richey, and Tamulski entered into kickback agreements with certain clinical laboratories under which the laboratories would pay Ark a bribe in exchange for delivering DNA samples and orders for genetic tests. The bribe payments were based on the percentage of Medicare revenue that the laboratories received in connection with the tests. Among other things, Kostishion, Plaisance, Richey, and Tamulski concealed these kickback arrangements through issuing sham invoices to laboratories that purportedly reflected services provided at an hourly rate even though the parties had already agreed upon the bribe amount, which was based on the revenue the laboratories received. In 2018, the clinical laboratories paid Ark at least approximately $1.8 million in bribes. The Government is represented by Assistant U.S. Attorney Bernard Cooney of the Criminal Division.

Doctor Pleads Guilty in Compounding Case

• Bernard Ogon M.D., 46, of Burlington, New Jersey, pleaded guilty on September 25, 2019 to one count of health care fraud conspiracy for his participation in a vast compounded medication telemedicine conspiracy. As part of the conspiracy, Ogon admittedly signed prescriptions for compounded medications (that is, medications with ingredients of a drug tailored to the needs of a particular patient) without having established a doctor-patient relationship, spoken to the patient or conducting any medical evaluation. Ogon often signed preprinted prescription forms—with patient information and medication already filled out—where all that was required was his signature. Then, instead of providing the prescription to the patient, Ogon would return the prescriptions to specific compounding pharmacies involved in the conspiracy. Ogon was paid $20 to $30 for each prescription he signed, and his participation in the conspiracy caused losses to health care benefit programs of over $24 million, including losses to government health care programs of over $7 million. The Government is represented by Assistant U.S. Attorney Jason Gould of the Criminal Division.

The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

U.S. Attorney Carpenito also thanked special investigators from his office for their work on these cases.

A complaint, information or indictment is merely an accusation, and all defendants are presumed innocent until and until proven guilty.

Jackson, TN –Marshawn Keith Burrus, 56, has been sentenced to 188 months in federal prison for being a felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the sentence today.

According to information presented in court, on June 8, 2018, officers with the Jackson Police Department made contact with a suspicious vehicle in the parking lot of the Old Hickory Inn, Jackson, Tennessee. Officers observed in plain view a .40 caliber pistol in the empty back seat. An investigation of the firearm in the vehicle led officers with the Jackson-Madison County Metro Narcotics Unit to apply for and execute a search warrant of a motel room where they found Burrus along with other individuals, as well as, a 9mm pistol, cocaine, liquid codeine, methamphetamine and marijuana.

The defendant provided a statement to law enforcement that he had purchased both pistols from two separate individuals. Burrus had previously been convicted in state court of multiple felony offenses including four counts of robbery with a deadly weapon, aggravated burglary, sale of drugs, possession of a firearm by a convicted felon, evading arrest by motor vehicle, two counts of carjacking and another possession of a firearm by a convicted felon.

Burrusmade an appearance bond on the state case. On August 20, 2018, he was arrested again by Jackson Police Department for possession of a firearm as a convicted felon and other drug offenses. On August 23, 2018, the District Court issued an arrest warrant on a complaint for the June 8, 2018, incident and the defendant has remained in custody.

U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger to community, and in this case, the defendant was an armed career criminal who continued to possess firearms despite his prior felony conviction history. There is and ought to be a significant consequence for such recidivist criminal behavior, and this is one more armed career criminal removed from our streets. Gun Crime is Max Time."

On September 24, 2019, U.S. Chief District Court Judge, S. Thomas Anderson sentenced Burrus to 188 months imprisonment followed by 5 years supervised release.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jackson Police Department and Jackson-Madison County Metro Narcotics.

Assistant U.S. Attorney Hillary Parham prosecuted this case on behalf of the government.

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          LOS ANGELES– Authorities this morning arrested five defendants charged in a federal grand jury indictment alleging they took part in a drug trafficking ring that imported pound quantities of cocaine and heroin from Mexico, then used modified BMW “trap cars” to distribute those drugs throughout the United States.

          The four-count indictment charges a total of seven defendants with conspiracy to distribute controlled substances, and alleges a series of acts between December 2017 and July 2018.

          In today’s takedown, law enforcement seized approximately 20 kilograms (44.1 pounds) of cocaine, multiple firearms, three trap cars, and equipment for making butane honey oil, which contains a much higher percentage of tetrahydrocannabinol (THC) than found in traditional marijuana products.

          The five defendants arrested today are expected to make their initial court appearance this afternoon in United States District Court in downtown Los Angeles.

          Joel Antonio Villegas, a.k.a. “Junior,” 31, of Downey, and William Ariel Moreno, 29, also of Downey, are accused of being the operation’s ringleaders who obtained kilogram quantities of heroin and cocaine from Mexico for U.S. customers. Villegas and Moreno were found in possession of cocaine and guns in their homes at the time of their arrests this morning. Villegas is an alleged drug distributer who obtains drugs from a Mexican supplier and distributes the narcotics from the Los Angeles area to customers throughout the United States, using both trap cars and commercial shipping companies.

          According to the indictment, Villegas directed co-conspirators to buy two 2005 BMW X5 automobiles so they could be outfitted with secret compartments to carry narcotics. Villegas allegedly also arranged for the shipment of two crates containing 55 pounds of marijuana and honey oil to Orlando, Florida. He also advised other members of the conspiracy that commercially shipping, rather than mailing, marijuana and honey oil “better ensured that law enforcement would not intercept the packages and seize the drugs,” the indictment alleges.

          The two BMWs belonging to the Villegas organization were stopped on the same day in April 2018 at the U.S.-Mexico border, where officers found hidden compartments inside their engine manifolds, containing multiple kilograms of cocaine and heroin, intended for distribution throughout the United States. Last year, law enforcement seized at least $71,000 in cash, along with pound quantities of cocaine and heroin in connection with this organization.

          In addition to the conspiracy charge, Villegas and another co-conspirator also are charged with possessing with intent to distribute 13.3 pounds of cocaine. Two other co-defendants have been charged with possessing with intent to distribute 11 pounds of cocaine. Authorities are continuing to search for defendants Milton Ponce, 31, of Paramount, and Jonathan Ortiz, 30, of Downey, who are believed to be fugitives.

          If convicted on all counts, the defendants would face a statutory maximum sentence of life in federal prison and mandatory minimum sentences of at least 10 years in federal prison.

          An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

          This matter is being investigated by the FBI, the Drug Enforcement Administration, IRS-Criminal Investigation, U.S. Customs and Border Protection, the California Highway Patrol, the Pasadena Police Department, the South Gate Police Department, and the Jacksonville Sheriff’s Office with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).

          This case is being prosecuted by Assistant United States Attorneys A. Carley Palmer of the International Narcotics, Money Laundering, and Racketeering Section and Jonathan S. Galatzan of the Asset Forfeiture Section.

Columbus—A convicted felon with an extensive criminal history in both Alabama and Georgia was found guilty late Tuesday on illegal gun and drug charges, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. After deliberating approximately two hours, a citizen jury found Freddie Clark, 42, of Phenix City, AL guilty on all three charges, including possession of a firearm by a convicted felon, possession of methamphetamine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. U.S. District Judge Clay Land presided over the federal jury trial in Columbus beginning on Monday, September 23, 2019. Mr. Clark faces a combined maximum 512 months imprisonment for his crimes and will be sentenced on February 4, 2020. There is no parole in the federal system. 

“The penalties for serial criminals in the Middle District of Georgia are severe. Repeat, dangerous offenders will not be tolerated by law-abiding citizens or law enforcement,” said Charlie Peeler, the U.S. Attorney. “It is a priority of this office to target and prosecute violent offenders who harm the safety of our communities. I want to thank the Columbus Police Department and the ATF for their work in this case.”

Mr. Clark was pulled over by a Columbus Police Department officer for extreme erratic driving March 14, 2018 at 3:30 a.m. on Buena Vista Road. Mr. Clark did not exit the car as directed, and upon approaching the vehicle, the arresting officer saw a pistol on Mr. Clark’s lap. The officer was able to remove the loaded Ruger .380 from Mr. Clark and the defendant was taken into custody. Officers found various drugs and 85 grams of methamphetamine on Mr. Clark and inside his vehicle. Mr. Clark has a total of eight prior felony convictions in Alabama and Georgia state courts.

This case was prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

The case was investigated by the Columbus Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Christopher Williams is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.

NEWARK, N.J. – The Justice Department today announced a coordinated health care fraud enforcement action across seven federal districts in the Northeastern United States, involving more than $800 million in losses and the distribution of over 3.25 million pills of opioids in “pill mill” clinics and doctors’ offices. The takedown includes new charges and convictions by guilty plea against 54 defendants for their roles in submitting nearly $800 million in fraudulent claims made to federal payers, including 15 doctors or medical professionals, and 24 defendants are charged for their roles in diverting opioids.

Attorney for the United States Rachael A. Honig said the cases prosecuted by this Office in connection with the takedown reflect all of the different facets of the office's health care and opioids work. Doctors, marketing executives, pharmacists, and the owners and operators of a genetic testing laboratory have been charged with, or have plead guilty to a range of criminal conduct, including: the criminal prescription of highly-addictive opioid pills to patients with no medical need, the paying of kickbacks and other fraud related to unnecessary genetic testing, fraud and abuse in the compounded medicines business, and other crimes that victimize federal health care programs like Medicare and Medicaid, as well as patients across New Jersey who need medical care.

Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the District of New Jersey, Eastern District of Pennsylvania, Western District of Pennsylvania, Eastern District of New York, Western District of New York, District of Connecticut, and District of Columbia. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, IRS-Criminal Investigation, DOD-DCIS, FDA-OIG, the Medicaid Fraud Control Unit, and other federal and state law enforcement agencies participated in the operation.

The charges involve individuals contributing to the opioid epidemic, including medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the Centers for Disease Control, approximately 115 Americans die every day of an opioid-related overdose.

Today’s arrests and guilty pleas come one-year after the Department of Justice announced the formation of the Newark/Philadelphia Regional MFSF, a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section, the U.S. Attorney’s Offices for the District of New Jersey and the Eastern District of Pennsylvania, as well as law enforcement partners. The Strike Force focuses its efforts on aggressively investigating and prosecuting complex cases involving patient harm, large financial loss, and the illegal prescribing and distribution of opioids and other dangerous narcotics.

“Physicians and other medical professionals who fraudulently bill our federal health care programs are stealing from taxpayers and robbing vulnerable patients of necessary medical care. The medical professionals and others engaging in criminal behavior by peddling opioids for profit continue to fuel our nation’s drug crisis,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice will continue to use every tool at our disposal, including data analytics and traditional law enforcement techniques, to investigate, prosecute, and punish this reprehensible behavior and protect federal programs from abuse.”

“The FBI does not care about your status in life, your professional standing, your level of income, or your personal connections when you break the law,” Assistant Special Agent in Charge Wayne Jacobs of the FBI’s Newark Field Office said. “If you try to scam the system, if you exploit your professional license just to pad your pockets, if you mortgage your morals just to inflate your bank account, you will only find yourself in deeper debt. We are committed to protecting the public; we are intent on rooting out fraud and corruption; we are duty-bound to track down and arrest anyone who is breaking our federal laws. Don’t be next.”

Among those charged in the District of New Jersey are the following:

• Aaron Williamsky 59, of Marlboro, New Jersey, and Nadia Levit, 40, of Englishtown, New Jersey, owners of approximately 25 durable medical equipment companies, pleaded guilty on Sept. 18 and Sept. 25, respectively, for their participation in a health care fraud scheme related to their payment of kickbacks in exchange for doctors’ orders for medically unnecessary orthotic braces. Levit’s conduct admittedly caused losses in excess of $120 million and Williamsky’s conduct admittedly caused losses in excess of $170 million. Williamsky also pleaded guilty to a money laundering conspiracy related to his attempt to conceal at least $1.65 million of the proceeds of the fraud. The case was investigated by FBI, HHS-OIG, IRS-CI and special agents of the U.S. Attorney's Office. The case is being prosecuted by Assistant U.S. Attorneys J. Stephen Ferketic and Sean Sherman and  of the District of New Jersey.

The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

A complaint, information or indictment is merely an accusation, and all defendants are presumed innocent until and until proven guilty.

On March 7, 2019, a five-count Indictment, S4 17 Cr. 630 (ER), was unsealed charging Ruja Ignatova with wire fraud, securities fraud, and money laundering offenses in connection with an alleged international pyramid scheme that involved the marketing of a purported cryptocurrency called “OneCoin.”  On May 28, 2019, co-defendant Konstantin Ignatov entered a not guilty plea to a one-count Information, S7 17 Cr. 630 (ER), charging him with conspiracy to commit wire fraud in connection with the OneCoin scheme.  Co-defendant Mark S. Scott has been charged in a one-count Indictment, S6 17 Cr. 630 (ER), alleging that he conspired to launder proceeds of the OneCoin scheme; Scott’s case is presently scheduled for trial on November 4, 2019.

Yesterday, the District Court entered an Order in the case, directing a series of entities and individuals – namely, OneCoin Ltd., OnePayments Ltd., OneNetwork Services Ltd., OneAcademy, OneLife, RavenR, Ruja Ignatova, Frank Ricketts, Manon Hubenthal, Irina Dilkinska, International Marketing Services GmBH, International Marketing Services Pte, International Marketing Strategies Ltd., and B&N Consult EOOD (collectively, the “Affected Parties”) – to Show Cause why the Court should not enter an Order finding that any privilege the Affected Parties may have in communications with counsel falls within the crime-fraud exception to the attorney-client privilege, or has otherwise been waived for failure to assert or defend such privilege.  The Order to Show Cause requires that the Affected Parties respond within 10 days of the entry of the Order, i.e., no later than October 7, 2019, due to intervening weekend days.

The District Court also unsealed a previously sealed Order dated July 23, 2019, regarding the application of the crime-fraud exception to certain materials in the case.  Copies of yesterday’s Order to Show Cause and the July 23, 2019, Order are appended to this press release.

DAYTON – A federal grand jury has charged 19 local individuals in a narcotics conspiracy involving more than 400 grams of fentanyl, 500 grams of methamphetamine, 500 grams of cocaine and heroin.

Eight of the defendants were arrested this morning, four were already in law enforcement custody and one has self-surrendered. Six currently remain at large.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA), announced the charges.

Those charged include:

*Currently a fugitive

According to the 27-count indictment, Crawford Bogle and Pope (with the assistance of other co-defendants) allegedly acquired for resale bulk amounts of controlled substances, including kilogram quantities of methamphetamine, fentanyl, heroin and cocaine. Crawford Bogle and Pope then allegedly processed and repacked the illegal drugs for resale in Southern Ohio, Kentucky and elsewhere.

It is alleged the group used 13 Dayton homes, apartments and business properties to process, store and distribute the drugs and cash proceeds.

The indictment details that defendants allegedly delivered hundreds of thousands of dollars to pay for kilogram quantities of the drugs. Crawford Bogle, Pope and others used proceeds from the drug sales to purchase a variety of high-end goods, including luxury cars.

Barney allegedly provided various members of the organization with fraudulent dealership tags to conceal their true ownership of vehicles through his car dealership.

In May 2019, Barney allegedly fled from a federal task force officer after an acquaintance of the illicit organization left a stash house in Dayton while in possession of more than $100,000 in cash.

In June 2019, members of the group allegedly hid bulk cash in a Dayton park while attempting to evade federal task force officers. It is alleged that Crawford Bogle searched the park the next day in an effort to locate the cash.

Defendants are charged with attempting to, conspiring to and distributing controlled substances (10 years up to life in prison), as well as communicating to facilitate a drug crime (up to four years in prison).

U.S. Attorney Glassman commended the investigation of this case by the DEA and the assistance of the Ohio State Highway Patrol, Montgomery County Sherriff’s Office, and Dayton, Middletown and Springfield police departments, as well as Assistant United States Attorneys Brent G. Tabacchi and Dominick S. Gerace, who are prosecuting the case.

An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.

If you have any information regarding the whereabouts of those remaining at large, please text SOFAST and your tip to 847411.

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Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Brian A. Benczkowski, Assistant Attorney General for the Justice Department’s Criminal Division; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and Derrick L. Jackson, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Atlanta Regional Office,announced that a total of 30 defendants were charged with offenses relating to their alleged participation in various schemes to defraud Medicare, Medicaid and private insurance. The conduct allegedly resulted in more than $86 million in fraudulent billings. Those charged included physicians as well as other medical and business professionals.

The charges announced involve schemes alleged to have billed Medicare, Medicaid and private insurance companies for medically unnecessary services, such as home health, prescriptions drugs, durable medical equipment and addiction treatment services.

“Health care programs provide vital services to Americans,” said U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida.  “Those who perpetuate these pervasive health care fraud schemes steal taxpayer dollars from intended beneficiaries and threaten the viability of government programs.  We commend the coordinated and continued efforts of our federal law enforcement partners to root out fraud and abuse in our healthcare system.”  

“The defendants charged today allegedly bilked the American people to the tune of millions in fraudulent billings,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.  “All Americans should stand with the Department as we fight the fight against these unscrupulous schemes in Florida, Georgia, and across the country.”

“Being a healthcare professional in the Medicare program is a privilege, not a right.  When physicians and other healthcare providers put their own financial gain above patient well-being and honest billing of government health programs, they violate the basic trust that taxpayers extend to healthcare professionals,” said Special Agent in Charge Derrick L. Jackson of the HHS-OIG Atlanta Regional Office.  “Today’s arrests puts corrupt medical professionals on alert that law enforcement will do everything possible to root out all forms of waste, fraud and abuse in our federal health care programs.”

“The FBI and its federal, state and local partners are working tirelessly every day to detect and combat schemes like those announced today,” said Special Agent in Charge George L. Piro of the FBI’s Miami Field Office.  “Despite our efforts, we still need the public's help in reporting suspicious activity.  If anyone suspects they are a victim of health care fraud please call your local FBI office or the HHS Office of Inspector General.”

The following are some of the health care fraud cases have been charged recently in the Southern District of Florida:

Substance Abuse Treatment:

U.S. v. Peter Port, Brian Dublynn, & Jennifer Sanford, Case No. 19-20583-CR-Williams

Peter Port, 64, of Boca Raton, Brian Dublynn, 62, of Fort Lauderdale, and Jennifer Sanford, 57, of Hollywood, were charged for their alleged participation in a scheme to defraud private health insurance companies.  Port, Dublynn and Sanford were each charged with one count of conspiracy to commit health care fraud and wire fraud and four counts of health care fraud.  In addition, Port and Dublynn were each charged with one count of conspiracy to commit money laundering and five counts of money laundering.  The defendants caused Safe Haven Recovery Inc. (Safe Haven), a substance abuse treatment facility in Miami, and several clinical laboratories to submit false and fraudulent claims to health insurance plans for addiction treatment services that were not provided as billed and laboratory tests that were not medically necessary.  DOJ Trial Attorney David A. Snider is prosecuting this case.   

Home Health:

U.S. v. Dr. Richard S. Mallia, Case No. 19-20623-CR-Altonaga

Richard S. Mallia, D.P.M., 55, a podiatrist, was charged by indictment with one count of conspiracy to defraud the United States and to receive kickbacks, one count of conspiracy to commit health care fraud and wire fraud, and three counts of health care fraud, for his role in a health care fraud conspiracy that caused a loss of approximately $7.7 million to the Medicare program.  The indictment alleges that Mallia accepted cash kickbacks in exchange for writing medically unnecessary home health prescriptions and also participated in a scheme to submit claims to Medicare for relatively expensive foot procedures that he never performed.  DOJ Trial Attorney Alexander Thor Pogozelski is prosecuting this case.   

U.S. v. Maribel Sera, Case No. 19-20625-CR-Williams

Maribel Sera, 51, of Hialeah, was charged by information with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program.  According to the information, the defendant participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to TC Home Health Care of Hialeah.   Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case. 

U.S. v. Juan Jose Mesa, et al., Case No. 19-20574-CR-Gayles

Juan Jose Mesa, 58, and Madelaine Varona, 47, both of Miami, owners and/or operators of All Excellent OT-PT Service LLC of Miami and Cruz Healthcare Corp. of Miami, respectively; Sandra Cardona, 47, of Hialeah, an allegedly unlicensed therapist; and Silvia Salvatori, 67, of Pembroke Pines, Florida, a licensed massage therapist, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud.  Mesa and Varona were also charged with five and six counts of health care fraud, respectively.  The charges stem from Mesa’s and Varona’s alleged roles in a scheme to defraud Part A of the Medicare program of more than $4 million by billing for home health services that were not rendered and paying kickbacks to patient recruiters in exchange for patient referrals.  Cardona and Salvatori, who were allegedly not licensed to provide physical therapy, accepted payment from a licensed physical therapist, paid by their co-conspirators, in exchange for allegedly obtaining signed patient visitation forms from Medicare beneficiaries used to submit false and fraudulent claims.  Assistant U.S. Attorney Kevin Larsen is prosecuting this case. 

U.S.  v. Sara Tania Ruiz and Maria Laura Prieto, Case No. 19-20588-CR-Moore

Sara Tania Ruiz, 55, of Hialeah, and Maria Laura Prieto, 60, of Miami, were charged by indictment with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program.  According to the indictment, the defendants participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to home health agencies, including ACM Home Health Corp. of Miami and TC Home Health Care Inc. of Hialeah.  Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.

U.S. v. Marisol Padilla, Case No. 19-20589-CR-Martinez

Marisol Padilla, 48, of Hialeah, was charged by indictment with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program.  According to the indictment, the defendant participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to TC Home Health Care of  Hialeah.  Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case. 

U.S. v. Ana Maria Fernandez and Berta Leon, Case No. 19-20573-CR-Ungaro          

Ana Maria Fernandez, 62, and Berta Leon, 69, of Miami, Florida, were charged with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program.  According to the indictment, the defendants participated in a conspiracy to use their company ABC Medical Solutions Corp. of Miami, to solicit and receive kickback payments for the referral of Medicare beneficiaries to home health agencies, including ACM Home Health Corp. of Miami and TC Home Health Care Inc. of Hialeah, Florida.  Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.  

U.S. v. Jocelyn De La Caridad Perez and Joaquin Guevara, Case No. 19-20582-CR-Altonaga

Jocelyn De La Caridad Perez, 41, and Joaquin Guevara, 46, both of Miami, were charged by indictment with one count of conspiracy to receive health care kickbacks.  Perez was also charged with one count of conspiracy to commit health care fraud and wire fraud, and Guevara was also charged with three counts of receipt of kickbacks in connection with a federal health care program.  According to the indictment, Perez was an administrator of Joe Rehabilitation and Diagnostic, Inc. (Joe Rehab), an outpatient rehabilitation facility in Doral, Florida, that purportedly provided therapy services to Medicare beneficiaries.  As part of the fraudulent scheme, Perez allegedly conspired with others to pay kickbacks and bribes for the referral of Medicare beneficiaries to Joe Rehab so their information could be used to submit fraudulent claims to Medicare for services purportedly provided, regardless of whether the Medicare beneficiaries needed or received the services.  Assistant U.S. Attorney Anne P. McNamara is prosecuting this case.  

Private Insurance:

U.S. v. Ivan Bejerano,Case No. 19-20591-CR-King

Ivan Bejerano, 49, of Miami, was charged by indictment with seven counts of health care fraud and one count of conspiracy to commit health care and wire fraud.  According to the indictment, Dynamic Physical Rehab Inc. (Dynamic) was a Miami medical clinic that purportedly provided private insurance beneficiaries with various medical treatments and services. From June 2017 through July 2019, Bejerano allegedly submitted and caused the submission of claims, via interstate wires, totaling approximately $2.5 million that falsely and fraudulently represented that various health care benefits, primarily physical therapy, were medically necessary, prescribed by a doctor, and had been provided by Dynamic to insurance beneficiaries of Blue Cross Blue Shield (BCBS).  Assistant U.S. Attorney Shannon Shaw is prosecuting this case.   

U.S. v. Deivys Ernesto Alvarez,Case No. 19-20604-CR-Bloom

Deivys Ernesto Alvarez, 48, of Hialeah, was charged by indictment with one count of conspiracy to commit health care fraud and wire fraud and four counts of health care fraud.  According to the indictment, Alvarez was the owner of Diagnostic Center of Medley Inc., a Miami medical clinic.  AP & JL Medical Center Inc. (AP & JL) was another Miami medical clinic that purportedly provided private insurance beneficiaries with various medical treatments and services.  Alvarez and co-conspirators allegedly recruited and paid Comcast Corp. and Telemundo Corp. employees, through Diagnostic Center of Medley Inc., and referred those employees and/or the employees’ personal information to AP & JL to fraudulently bill BCBS.  Alvarez and his co-conspirators allegedly submitted and caused the submission of false and fraudulent claims, via interstate wires, totaling approximately $800,500.  Assistant U.S. Attorney Timothy J. Abraham is prosecuted this case.

U.S. v. Francisco Abreu Tartabull, Case No. 19-20605-CR-Altonaga

Francisco Abreu Tartabull, 53, of Miami, was charged by indictment with conspiracy to commit health care fraud and wire fraud in connection with his role in a $2.1 million private insurance fraud scheme.  According to the indictment, Tartabull was the owner and operator of South Dade Medical Center Inc. (South Dade), a Miami medical clinic that purportedly provided Blue Cross Blue Shield insurance beneficiaries with various medical treatments and services.  As part of the fraudulent scheme, Tartabull and his co-conspirators submitted more than $2.1 million in fraudulent claims to Blue Cross Blue Shield.  These claims falsely represented that the benefits Tartabull’s clinic had billed insurance for were medically necessary, prescribed by a doctor, and had been provided by South Dade to these beneficiaries.  As a result of these false claims, Blue Cross Blue Shield paid Tartabull’s clinic more than $920,000.  Tartabull then used this ill-gotten money for his own personal use and benefit, and to further the fraud.  The FBI investigated this case.  Assistant U.S. Attorney Anne P. McNamara is prosecuting this case.  Assistant U.S. Attorney Anne P. McNamara is prosecuting this case. 

Pharmacy:

U.S. v. Elba Cobos Baile and Yolanda Castano, Case No. 19-20581-CR-Cooke

Elba Cobos Baile, 60, and Yolanda Castano, 55, both of Miami, were charged by indictment with four counts of health care fraud and one count of conspiracy to commit health care fraud and wire fraud.  Cobos and Castano were the owners and operators of Pharmacy Solution, a retail pharmacy in Miami-Dade County. The indictment alleges that from on or about March 1, 2012 to September 17, 2014, Cobos and Castano submitted and caused the submission of claims, via interstate wires, which falsely and fraudulently represented that various health care benefits, primarily prescription drugs, were medically necessary, prescribed by a doctor and had been provided by Pharmacy Solution to Medicare beneficiaries.  As a result of these false and fraudulent claims, Medicare prescription drug plan sponsors allegedly made payments funded by the Medicare Part D Program to the corporate bank accounts of Pharmacy Solution in the approximate amount of at least $2.1 million. Assistant U.S. Attorney Christopher J. Clark is prosecuting this case.   

U.S. v. Tania Rodriguez and Rafael Vidal, Case No. 19-20584-CR-King

Tania Rodriguez, 48, and Rafael Vidal, 61, both of Miami, were charged by indictment with one count of conspiracy to commit healthcare and wire fraud and seven counts of health care fraud.  According to the indictment, the defendants participated in a conspiracy to use their company, American United Pharmacy Corp. of Miami, to offer and pay kickbacks for the referral of Medicare beneficiaries to their pharmacy, and to submit false and fraudulent claims to Medicare for prescription drugs that were not provided to Medicare beneficiaries.  Assistant U.S. Attorney David Turken is prosecuting this case.   

U.S. v. Ricardo Ignacio Perez and Ricardo Perez-Leon, Case No. 19-20594-CR-Williams

Ricardo Ignacio Perez, 54, and Ricardo Perez-Leon, 31, both of Miami, the owners and operators of three Miami pharmacies, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud; one count of conspiracy to defraud the United States and pay and receive health care kickbacks; and three counts of health care fraud.  The indictment alleges that the defendants participated in a scheme to pay kickbacks and bribes to patient recruiters and to fraudulently bill Medicare drug plan sponsors for prescription medications.  The indictment alleges that, during the course of the fraudulent scheme, the defendants received approximately $5.3 million from Medicare drug plan sponsors for prescription medications that were medically unnecessary, never provided and/or never purchased by the defendants’ pharmacies.  DOJ Trial Attorneys Sara Clingan and Tim Loper are prosecuting the case.  

Durable Medical Equipment:

U.S. v. Steven Kahn and Pamela Edwin, Case No. 19-80169-CR-Rosenberg

Steven Kahn, 61, of Boca Raton, and Pamela Edwin, 33, of Delray Beach, the owner and office manager, respectively, of a Broward county telemedicine company, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud and three counts of wire fraud. Kahn was also charged with five counts of money laundering.  The indictment alleges that the defendants paid kickbacks and bribes to physicians in exchange for signing doctors’ orders, and that the defendants then sold the doctors’ orders to Medicare providers who used the orders to submit approximately $39 million in fraudulent claims to Medicare.  DOJ Trial Attorneys Sara Clingan and Catherine Wagner are prosecuting the case.

U.S. v. Jordan Karlick, Michael Moranz and Jordan Chibnick, Case No. 19-80168-CR-Rosenberg

Jordan Karlick, 33, of Boca Raton, Michael Moranz, 32, of Lake Worth, and Jordan Chibnick, 36, of Plantation, the owners of Palm Beach durable medical equipment (DME) companies, were charged by indictment with one count of conspiracy to commit healthcare fraud and wire fraud, one count of conspiracy to defraud the United States and pay kickbacks, four counts of health care fraud, and three counts of payment of kickbacks.  The indictment alleges that the defendants paid kickbacks and bribes in exchange for signed doctors’ orders for DME, which the defendants used to fraudulently bill Medicare for over $23 million.  The indictment alleges that defendants sought to impede Medicare beneficiary’s ability to return DME that they did not want or need to defendants’ companies, so that defendants could continue to bill Medicare for that DME.  DOJ Trial Attorneys Sara Clingan and Catherine Wagner are prosecuting the case.

U.S. Attorney Fajardo Orshan commends the investigative efforts of HHS-OIG and FBI.

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

The Fraud Section leads the Medicare Fraud Strike Force (MFSF), which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, MFSF maintains 15 strike forces operating in 24 districts and has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Today, a South Florida man pled guilty to charges arising from his participation in kidnapping a victim at gunpoint and, along with his co-conspirators, facilitating his torture. 

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

Justin Boccio, 33, of Deerfield Beach, pled guilty to conspiracy to commit kidnapping, in violation of Title 18, United States Code, 1201(c); and kidnapping, in violation of Title 18, United States Code, Section 1201(a) (Case No. 19-CR-20261). Boccio is scheduled to be sentenced by U.S. District Judge Cecilia M. Altonaga on December 5, 2019 at 9:00 a.m. He faces a maximum statutory sentence of life in prison. 

According to court records, Boccio and co-defendant Serge Nkorina (“Nkorina”), along with others, plotted to kidnap and torture a victim in an attempt to obtain tens of thousands of dollars from him. To facilitate the kidnapping, on or about December 30, 2018, Nkorina and Boccio purchased supplies at a Home Depot in Broward County, Florida. On or about January 5, 2019, the two rented a van from Budget with Florida tag number GHPT19. Then, on January 14, 2019, Boccio entered the victim’s office and made false representations on paperwork inside of the victim’s office. Later that same day, January 14, 2019, Nkorina and Boccio intercepted the victim in a Walmart parking lot in Broward County, Florida. Nkorina and Boccio blindfolded the victim and forced the victim into the rental van. The kidnappers then transported their victim to a storage facility in Margate, Florida, in which they burned the victim’s hands with a blowtorch while threatening to kill him with a firearm and other weapons. The kidnappers demanded information about the victim’s home address, including access codes to the victim’s residence. On or about January 15, 2019, Nkorina visited the premises of the victim’s home while carrying a firearm. Ultimately, also on January 15, 2019, Nkorina and Boccio left the victim, with his hands and feet bound, in his vehicle, which they relocated to the parking lot of Cheetah Gentlemen’s Club in Broward County, Florida. 

Boccio is detained in South Florida and Nkorina was arrested and detained in Spain.  Nkorina has not yet made his appearance in the South Florida case and is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office in this matter. She thanked the Hallandale Police Department for their assistance.  This case is being prosecuted by Assistant U.S. Attorney Lisa H. Miller in the Southern District of Florida.

The case is 19-20261-CR-CMA, pending before United States District Judge Cecilia M. Altonaga. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

SHREVEPORT, La. –United States Attorney David C. Joseph of the Western District of Louisiana announces that Biomedical Research Foundation of Northwest Louisiana and its related companies, and the Board of Supervisors of Louisiana State University and Agricultural and Mechanical College have agreed to pay $531,241.74 in damages and/or civil penalties to resolve claims that they violated the False Claims Act and other laws while operating University Health Hospital in Shreveport.

“Providers who fail to submit accurate data affect beneficiaries who depend on Medicare funding for access to safe and effective healthcare services,” said Joseph.  “The United States Attorney’s Office is committed to investigating allegations of fraud concerning Medicare services and we will continue to pursue those whose actions undermine the integrity of the Medicare program and the data it relies upon.”

The Biomedical Research Foundation of Northwest Louisiana and LSU were alleged to have sought and obtained payment from Medicare for procedures that required reporting to a qualified registry.  The procedures that they failed to report involved implantable automatic defibrillators, which are electronic devices designed to detect and treat life-threatening tachyarrhythmias.

Medicare coverage for implanting the defibrillators was part of a coverage expansion in 2005, which required that the procedure be studied and analyzed through data submitted to qualified registries.  This effort was part of a new Coverage with Evidence Development initiative, which expands access to important new treatments while facilitating the collection of evidence so that the Centers for Medicare and Medicaid Services can continue to monitor the effects of its coverage decisions.  The data collected was to be used to ensure the safety and quality of care provided to Medicare patients.     

This settlement resolves allegations originally brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. 

The government’s intervention in this matter illustrates its emphasis on combating health care fraud.  One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).

The Department of Health and Human Services, Office of Inspector General, This investigated the matter.  Assistant U.S. Attorney Melissa Theriot and Affirmative Civil Enforcement investigator Christopher Knighton prosecuted the case.

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United States Attorney Richard W. Moore of the Southern District of Alabama announced that Derick Thomas Cumbie, a 26 year old resident of Mobile, Alabama was sentenced to 37 months of incarceration for possession of a firearm after being convicted of five felonies, namely, Theft of Property in 2018, Theft of Property in 2012, Burglary Third Degree in 2018, Receiving Stolen Property First Degree in 2018 and Unlawful Possession of a Controlled Substance in 2012.

On June 26, 2019, Cumbie entered a guilty plea pursuant to a plea agreement and admitted in open court that on February 3, 2019, Mobile County, AL deputies responded to a call for someone trespassing on property.  When they arrived at the address on Padgett Switch Road in Irvington, they saw Cumbie get out of a Gray Nissan truck and flee when he saw the deputies.  The deputies chased him and caught him.  Cumbie told the deputies he ran because he had outstanding warrants.  Deputies returned to the Nissan and saw, in plain view, on the front passenger seat a small quantity of methamphetamine (a field test confirmed it to be methamphetamine). The methamphetamine was seized.  Deputies also saw, in plain view, a Glock pistol protruding from a duffle bag on the front passenger seat. Deputies seized the Glock and found it to be loaded.  It is described as a Glock, model 17, 9mm pistol.  After waiving his Miranda rights, Cumbie told the deputies that the Glock was his and he described it for them.    Cumbie knew he was a convicted felon at the time he possessed the firearm.

Deputies of the Mobile County Sheriff’s Office along with special agents of the FBI investigated the case and brought it to the U. S. Attorney's Office for prosecution.  The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.

COLUMBUS, Ohio – The 22^nd and final defendant related to a Las Vegas-to-Columbus oxycodone distribution ring pleaded guilty in U.S. District Court today.

Edward Vaughns, 56, of Las Vegas, pleaded guilty to conspiring to possess with intent to distribute oxycodone and to launder money.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA), Mona Passmore, acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division, and Ohio Attorney General Dave Yost announced the plea entered into today before U.S. District Judge Edmund A. Sargus Jr.

According to court documents, defendants had been diverting oxycodone pills from the Las Vegas area to Columbus since at least 2012. Law enforcement officials seized numerous U.S. mail packages containing thousands of oxycodone pills and large amounts of cash being sent between Las Vegas and Columbus in connection with this drug trafficking organization.

The co-conspirators also engaged in financial transactions – making use of wire transfers, bank accounts, and prepaid debit cards – involving hundreds of thousands of dollars to conceal the nature and source of their profits and promote the drug trafficking organization’s activities.  Money was used to purchase airline tickets, pay for hotel rooms and cover other costs associated with bringing the drugs to Columbus for distribution. 

According to Vaughns’ plea, specifically, Vaughn was responsible for the distribution of at least 15,000 oxycodone pills.

Others charged in the related cases include: Marcus Pryor, Marquis Pryor, Maisha Caples, Michael Griffin, James Stone, David Pryor, Sukita Williams, Danny Williams, Russell Briggs, Richard Briggs, Tiana Castro, Dontonyo Courtney, Larissa Harris-Patterson, Joquline Harris, Alfred James, Rashod Todd, Raynard Miller, Arthur Pirtle, Thomas Lane, Gary Washington and Jerry Campbell.

U.S. Attorney Glassman commended the cooperative investigation by the DEA, IRS Criminal Investigation, USPIS and Ohio Bureau of Criminal Investigation (BCI), as well as Assistant United States Attorneys Michael J. Hunter and Brian J. Martinez, who are prosecuting the cases.

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