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Criminal and Civil Enforcement

Criminal and Civil Enforcement Archive

March 2014

March 7, 2014; U.S. Attorney; Northern District of Indiana: Roy Dunn: Conspiracy to Submit Fraudulent Claims to Medicare
Roy Dunn, 60, of Winamac, Indiana, a defendant in the case U.S. v Hoosier EMS Inc. et al., pled guilty before District Judge Joseph Van Bokkelen to the felony offense of conspiracy to submit fraudulent claims to Medicare in connection with ambulance transportation for Medicare recipients in Northwest Indiana. Sentencing has been set for May 20, 2014. This charge was filed as a result of an investigation by the Federal Bureau of Investigation, the Medicaid Fraud Control Unit, and the U.S. Department of Health and Human Services. This case is being prosecuted by Assistant United States Attorneys Diane Berkowitz and Thomas McGrath.
March 7, 2014; U.S. Attorney; Southern District of New York: Manhattan U.S. Attorney Announces Medicaid Fraud Charges Against Postal Employee And Spouse
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas O'Donnell, the Special Agent in Charge of the New York Office of the United States Department of Health and Human Services, Office of Inspector General ("HHS-OIG"), today announced charges against ALEXANDER KNOBEL, an employee of the United States Postal Service the ("Postal Service"), and his spouse, YANA MALKINA, for Medicaid fraud. The Complaint alleges that KNOBEL and MALKINA repeatedly submitted fraudulent documents to obtain and continue to receive Medicaid for themselves and their family, defrauding the Medicaid Program of nearly $100,000, and causing resources designed for low-income individuals to be diverted to themselves. The defendants were arrested this morning and are expected to be presented today before U.S. Magistrate Judge James L. Cott.
March 6, 2014; U.S. Department of Justice: Physician Pleads Guilty for Role in Detroit-Area Medicare Fraud Scheme
A former Detroit-area physician pleaded guilty today for his role in an $11.5 million health care fraud scheme.
March 3, 2014; U.S. Attorney; District of North Dakota: California Man Sentenced for Defrauding Medicare of $400,000
FARGO - U.S. Attorney Timothy Q. Purdon announced that on March 3, 2014, Robert Olie, 66, Torrance Calif., was sentenced before U.S. District Judge Ralph R. Erickson, to 12 months of electronic home monitoring and three year's supervised release for conspiracy to commit health care fraud. Olie was also ordered to pay $417,000 in restitution in addition to $100,000 in forfeiture of assets. Olie was ordered to pay $100 special assessment to the Crime Victims Fund in addition to his sentence.

February 2014

February 28, 2014; U.S. Attorney; Northern District of Indiana: Plea: Conspiracy to Submit False Claims to Medicare
Anthony Bitterling, 40, of Winimac, Indiana, a defendant in the case US v Hoosier EMS Inc. et al., pled guilty before District Judge Joseph Van Bokkelen to the felony offense of conspiring with other individuals to submit fraudulent claims to Medicare in connection with ambulance transportation. Sentencing has been set for 5/8/14. This charge was filed as a result of an investigation by the Federal Bureau of Investigation, the Medicare Fraud Control Unit, and the US Department of Health and Human Services. This case is being prosecuted by Assistant United States Attorneys Diane Berkowitz and Thomas McGrath.
February 28, 2014; U.S. Attorney; Northern District of New York: A Physician and Employee of a Former Utica and Fulton Area Medical Practice Indicted
United States Attorney Richard S. Hartunian announced the indictment of a physician and employee of a former Utica and Fulton area medical practice. Mahesh Kuthuru, M.D., age 43, and Bonnie Meislin, age 42, were indicted by a federal grand jury in Syracuse on February 26, 2014.
February 27, 2014; U.S. Attorney; District of Puerto Rico: Four Individuals Indicted And Arrested For Health Care Fraud
SAN JUAN, P.R. - Yesterday, February 26, a Federal grand jury returned a fourteen count-indictment against four individuals for health care fraud and causing the misbranding and adulteration of prescription medications with intent to mislead and defraud, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The defendants are facing a forfeiture allegation of $225,929.21.
February 27, 2014; U.S. Attorney; District of South Dakota: Kyle Man Charged with Health Care Fraud
United States Attorney Brendan V. Johnson announced that a Kyle, South Dakota, man has been indicted by a federal grand jury for Theft in Connection with Health Care, Health Care Fraud, False Statements Relating to Health Care Matters and Acquiring Controlled Substances by Fraud. Dean L. Hodges, age 59, was indicted on February 19, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on February 24, 2014, and pled not guilty to the Indictment.
February 27, 2014; U.S. Attorney; District of South Dakota: Pine Ridge Woman Charged With Health Care Fraud
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, woman has been indicted by a federal grand jury for False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substance by Fraud. Jamie Wounded Arrow, age 26, was indicted on February 19, 2014. She appeared before U.S. Magistrate Judge Veronica L. Duffy on February 24, 2014, and pled not guilty to the Indictment.
February 27, 2014; U.S. Department of Justice: Omnicare to Pay Government $4.19 Million to Resolve False Claims Act Allegations of Kickbacks
Omnicare Inc., an Ohio-based long-term care pharmacy, has agreed to pay the government $4.19 million to settle allegations that it engaged in a kickback scheme in violation of the False Claims Act, the Justice Department announced today. Omnicare provides pharmaceuticals and services to long-term care facilities and residents and other senior populations.
February 27, 2014; U.S. Department of Justice: Owner of Fake Michigan Psychotherapy Clinic Sentenced for Role in Medicare Fraud Scheme
The owner of two Flint, Mich., adult day care centers was sentenced today for his leadership role in a $3.2 million Medicare fraud scheme. Glenn English, 53, was sentenced by United States District Judge Victoria A. Roberts in the Eastern District of Michigan to serve 96 months in prison. In addition to his prison term, English was sentenced to serve three years of supervised release and was ordered to pay $988,529 in restitution.
February 26, 2014; U.S. Attorney; District of New Jersey: Doctor Admits Taking Bribes in Test-Referral Scheme with New Jersey Clinical Lab
Newark, N.J. - An internist with a practice in Montclair, N.J., admitted today accepting bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC, of Parsippany, N.J., its president and numerous associates, U.S. Attorney Paul J. Fishman announced. Charles Goldberg, 60, of West Orange, N.J., pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of accepting bribes.
February 26, 2014; U.S. Attorney; District of Utah: Salt Lake City Psychologist Charged With Health Care Fraud In Indictment Returned By Grand Jury
Salt Lake City - A federal grand jury returned an indictment Wednesday charging Charles Fredrick McCusker, age 62, of Salt Lake City, a licensed Utah psychologist, with health care fraud and mail fraud in connection with a health care fraud scheme the indictment alleges caused federal and private benefit programs to pay more than $1.3 million for services not provided to patients. The indictment alleges the conduct occurred from around 2007 to around August 2013
February 25, 2014; U.S. Attorney; District of Massachusetts: Concord Doctor Pleads Guilty for Role in $27 Million Home Health Care Scam
BOSTON - The former medical director of a Waltham-based home health agency pleaded guilty today for his role in a home health fraud scheme which cost Medicare over $27 million. Dr. Spencer Wilking, 65, of Concord, pleaded guilty today before U.S. District Judge Joseph L. Tauro to health care fraud. Sentencing is scheduled for May 20, 2014. The statutory maximum penalty for the crime is 10 years in prison, three years of supervised release, a fine of $250,000 or twice the gross loss to the Medicare program or twice the gross gain to Wilking (whichever is greater), restitution to Medicare, forfeiture of any proceeds of the offense, and exclusion from the Medicare program.
February 25, 2014; U.S. Department of Justice: Diagnostic Imaging Group to Pay $15.5 Million for Allegedly Submitting False Claims to Federal and State Health Care Programs
WASHINGTON - Diagnostic Imaging Group (DIG) has agreed to pay a total of $15.5 million to resolve allegations that its diagnostic testing facility falsely billed federal and state health care programs for tests that were not performed or not medically necessary and by paying kickbacks to physicians. Assistant Attorney General for the Justice Department's Civil Division Stuart F. Delery, U.S. Attorney for the District of New Jersey Paul J. Fishman and U.S. Attorney for the Eastern District of New York Loretta E. Lynch announced the settlement today.
February 25, 2014; U.S. Attorney; Middle District of Florida: United States Settles False Claims Act Lawsuit against Florida Pain Clinic and Its Owner
Tampa, Florida - United States Attorney A. Lee Bentley, III announced today that a Florida-based physician, Dr. Steven Chun, has agreed to pay $750,000 to resolve allegations that he and his clinic billed Medicare for physician office visits that he did not perform. The United States alleges that, between 2006 and 2011, Dr. Chun owned and operated a clinic, first in Sarasota and then in Bradenton, called Sarasota Pain Associates. The United States alleges that, beginning in 2006, Dr. Chun billed Medicare for office visits at the highest levels possible, falsely claiming to have conducted comprehensive examinations of patients with complex problems. In fact, those patients visited Sarasota Pain Associates for scheduled procedures for which Dr. Chun was paid. In addition to getting paid for those procedures, Dr. Chun billed and was paid by Medicare for examinations that he did not in fact perform.
February 24, 2014; U.S. Attorney; District of Connecticut: Physical Therapist Arrested On Health Care Fraud Charges
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that Danielle Faux, 46, of Weston, was arrested today on federal health care fraud charges. On February 19, 2014, a federal grand jury sitting in Bridgeport returned an indictment charging Faux with 46 counts of health care fraud and one count of obstruction of a federal audit.
February 21, 2014; U.S. Attorney; Southern District of Iowa: Former Newton, Iowa Doctor Pleads Guilty of Health Care Fraud and Illegal Distribution of Controlled Substance
DES MOINES, IA - The United States Attorney for the Southern District of Iowa, Nicholas A. Klinefeldt, announces that Lafayette James Twyner, Jr., age 64, a former doctor in Newton, Iowa, pleaded guilty in United States District Court on February 21, 2014, to one count of health care fraud and one count of illegal distribution of a schedule III controlled substance resulting in death, announced United States Attorney Nicholas A. Klinefeldt. If approved by the district court at sentencing, the plea agreement calls for Twyner to serve a total of 8 years of incarceration, which will include 5 years in prison and 3 years of home and/or community confinement.
February 21, 2014; U.S. Attorney; Eastern District of Missouri: Local Doctor Sentenced For Making False Statement to Agent
St. Louis, MO - Dr. Erick Falconer was sentenced to five months in prison, followed by five months of home confinement, on charges of making a false statement to federal agents regarding his purchases of misbranded Botox® from a foreign unlicensed drug wholesaler, some of which had counterfeit exterior packaging. Additionally, as part of his plea agreement, Dr. Falconer previously forfeited $20,000 to the Government.
February 21, 2014; U.S. Attorney; District of South Carolina: Andrews Woman Sentenced in Health Care Fraud Case
Columbia, South Carolina - United States Attorney Bill Nettles stated that Queen Edwards Nesmith, age 53, of Andrews, South Carolina, was sentenced today in federal court in Charleston for Health Care Fraud, a violation of 18 U.S.C. § 1346, and Aggravated Identity Theft, a violation of 18 U.S.C. § 1028A. Senior United States District Judge Sol Blatt Jr. of Charleston sentenced Nesmith to 24 months imprisonment on each charge, for a total of 48 months, and ordered her to pay approximately $411,000 in restitution.
February 21, 2014; U.S. Attorney; Southern District of California: Alvarado Pharmacy and Its Owner Ordered To Repay Medicare over $1 Million
United States Attorney Laura E. Duffy announced today that Alvarado Medical Plaza Pharmacy, Inc. was sentenced by United States District Court Judge Janis L. Sammartino to repay Medicare over $1 million, and to pay a $10,000 fine, following its conviction of federal Health Care Fraud for billing Medicare for unapproved oncology drugs.
February 21, 2014; U.S. Department of Justice: Endo Pharmaceuticals and Endo Health Solutions to Pay $192.7 Million to Resolve Criminal and Civil Liability Relating to Marketing of Prescription Drug Lidoderm for Unapproved Uses
Pharmaceutical company Endo Health Solutions Inc. and its subsidiary Endo Pharmaceuticals Inc. (Endo) have agreed to pay $192.7 million to resolve criminal and civil liability arising from Endo's marketing of the prescription drug Lidoderm for uses not approved as safe and effective by the Food and Drug Administration (FDA), the Justice Department announced today. The resolution includes a deferred prosecution agreement and forfeiture totaling $20.8 million and civil false claims settlements with the federal government and the states and the District of Columbia totaling $171.9 million. Endo Pharmaceuticals Inc. is a Delaware corporation headquartered in Malvern, Pa.
February 21, 2014; U.S. Department of Justice: New Jersey Doctor Who Provided Spa Services Pleads Guilty in Medicare Fraud Scheme
Dr. Chang Ho Lee, 68, of Palisades Park, N.J., pleaded guilty today to health care fraud and agreed to forfeit more than $3.4 million in fraud proceeds. According to court documents, Lee, who is a medical doctor, and two others recruited patients by offering free lunches and recreational classes and provided them with spa services, such as massages and facials, then falsely billed Medicare for more than $13 million using those patients' Medicare numbers.
February 20, 2014; U.S. Attorney; District of Columbia: More Than 20 People Arrested Following Investigations into Widespread Health Care Fraud in D.C. Medicaid Program as Charges Unsealed in Largest Health Care Fraud Takedown in D.C. History
WASHINGTON-More than 20 people, including operators of home care agencies and nurse staffing agencies, office workers, and personal care assistants, were arrested today following investigations into fraudulent billing practices in the home health care industry.
February 20, 2014; U.S. Attorney; Southern District of Texas: Houston Physician Arrested in Health Care Fraud Conspiracy
HOUSTON - Dr. Enyibuaku Rita Uzoaga, 41, and Charles Harris, 53, have been indicted on charges of conspiracy to commit health care fraud and health care fraud, announced United States Attorney Kenneth Magidson. The seven-count indictment was returned Feb. 12, 2014, and unsealed this morning as Uzoaga surrendered to federal authorities. She is expected to make an initial appearance before U.S. Magistrate Judge George C. Hanks Jr. at 10:00 a.m. today.
February 20, 2014; U.S. Attorney; Northern District of Georgia: Atlanta Doctor Sentenced For Defrauding Medicare and IRS
ATLANTA - Lawrence Eppelbaum has been sentenced to 50 months in prison and fined $3.5 million following his trial conviction on health care fraud, tax fraud and money laundering charges.
February 20, 2014; U.S. Attorney; Northern District of Illinois: Physician Arrested for Allegedly Illegally Dispensing Oxycodone and Falsely Billing Medicare in Undercover Probe
CHICAGO - A southwest suburban physician was arrested yesterday on federal charges for allegedly conspiring to illegally dispense a prescription medication and health care fraud, federal law enforcement officials announced today. The defendant, Sathish Narayanappa Babu, the owner of Anik Life Sciences Medical Corp., allegedly conspired to illegally dispense oxycodone and fraudulently billed Medicare for services he purportedly provided.
February 19, 2014; U.S. Department of Justice: Washington-Based Medical Device Manufacturer to Pay up to $5.25 Million to Settle Allegations of Causing False Billing of Federal Health Care Programs
Medical device manufacturer EndoGastric Solutions Inc. has agreed to pay the government up to $5.25 million to resolve allegations that it violated the False Claims Act by misleading health care providers about how to bill federal health care programs for a procedure using a device manufactured by the company and by paying kickbacks, the Justice Department announced today. EndoGastric Solutions is located in Redmond, Wash.
February 19, 2014; U.S. Department of Justice: Government Intervenes in Lawsuit against Tenet Healthcare Corp. and Georgia Hospital Owned by Health Management Associates Inc. Alleging Payment of Kickbacks
The government has intervened in a False Claims Act lawsuit against Tenet Healthcare Corp. (Tenet) and four of its hospitals in Georgia and South Carolina, as well as a hospital in Monroe, Ga., owned by Health Management Associates Inc. (HMA), alleging that the hospitals paid kickbacks to obstetric clinics serving primarily undocumented Hispanic women in return for referral of those patients for labor and delivery at the hospitals. The hospitals then billed the Medicaid programs in Georgia and South Carolina for the services provided to the referred patients and, in some instances, also obtained additional Medicare reimbursement based on the influx of low-income patients. Tenet and HMA are two of the largest owner/operators of hospitals in the United States. HMA was acquired by Community Health Systems last month. The government also is intervening against the clinics and related entities known as Hispanic Medical Management d/b/a Clinica de la Mama.
February 19, 2014; U.S. Attorney; Eastern District of Texas: Former Shelby County Residents Guilty in Health Care Fraud Scheme
BEAUMONT, Texas - A Center, Texas couple now living in Elgin, Texas, has pleaded guilty to federal violations in a health care fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
February 19, 2014; U.S. Attorney; District of New Jersey: Monmouth County, N.J., Doctor Admits Stealing $1.1 Million
NEWARK, N.J. - A pain management doctor with a practice based in Red Bank, N.J., admitted today that he embezzled more than $1.1 million from a medical practice, U.S. Attorney Paul J. Fishman announced. Robert Muscio, 40, a resident of Colts Neck, N.J., pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to one count of committing mail fraud to embezzle those monies.
February 18, 2014; U.S. Attorney; Central District of California: Three Found Guilty for Roles in $20 Million Health Care Fraud Scheme Involving Bogus Prescriptions for Expensive Anti-Psychotic Drugs
LOS ANGELES - Three people linked to a Glendale medical clinic - including a doctor who took money to let his name be used thousands times on bogus prescriptions - were found guilty today of federal fraud charges related to a $20 million scheme to defraud Medicare and Medi-Cal by, among other things, fraudulently prescribing expensive anti-psychotic medications and then re-billing the government for those drugs over and over.
February 18, 2014; U.S. Attorney; Southern District of Florida: Miami Physician Pleads Guilty in Medicare Fraud Scheme
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, and Mark R. Trouville, Special Agent in Charge, U.S. Drug Enforcement Administration, Miami Field Division, announce today that Christopher Gregory Wayne, an osteopathic physician residing in Miami, pled guilty before U.S. District Judge Robert N. Scola, Jr., to a criminal information that charges him with health care fraud and conspiracy to violate the narcotics laws of the United States. Sentencing has been scheduled for May 16, 2014.
February 14, 2014; U.S. Attorney; District of Massachusetts: Former Lab Executive Sentenced for Tax-Related Crimes
BOSTON - The former chief operating officer of a Woburn drug testing laboratory was sentenced yesterday for federal tax related crimes. U.S. District Court Judge George A. O'Toole, Jr. sentenced Patrick Cavanaugh, 50, of Gloucester, to 18 months in prison and one year of supervised release. In 2013, Cavanaugh pleaded guilty to four counts of subscribing to false tax returns for the tax years 2005 through 2008.
February 18, 2014; U.S. Attorney; Southern District of Texas: Corpus Christi Doctor Convicted in Connection with Fraudulent Health Care Billing Scheme
Corpus Christi, Texas - Dr. Roque Joel Ramirez, 49, of Robstown, has entered a plea of guilty to mail fraud in connection with his scheme to defraud Medicare and Medicaid through fraudulent billings, announced United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott.
February 18, 2014; U.S. Attorney; District of Maryland: Three Medical Groups and A Medical Billing Company Agree To Pay $3,340,979 to Resolve Investigation into Medicare Overbilling Scheme
Baltimore, Maryland - Medical billing company Engage Medical, Inc., its owner Sanjay Puri and three medical practices that were its clients have agreed to pay a total of $3,340,979 to resolve claims that Engage Medical overbilled for nuclear stress tests. Engage Medical and Sanjay Puri have agreed to pay $544,500; Advanced Cardiology Center and its owners Pankaj Lal, M.D., Mubashar Choudry, M.D. and Moshin Ijaz, M.D. agreed to pay $1,894,549.50; Reva Gill, M.D. and Kenilworth Internists, P.A. agreed to pay $242,204; and Sureshkumar Muttath, M.D. agreed to pay $659,726.
February 14, 2014; U.S. Attorney; Southern District of Illinois: Alton Doctor Pleads Guilty To Health Care Fraud and Illegal Dispensation of Controlled Substances
Viwathna Bhuthimethee, 68, a medical doctor who operated the Walk In Clinic, located at 654 East Broadway Street in Alton, Illinois, pled guilty today in federal court to the fifteen counts of an indictment which charged health care fraud against the Illinois Medicaid program and illegal distribution of Schedule III controlled substances (Hydrocodone) and Schedule IV controlled substances (Xanax) by prescribing outside the usual course of professional conduct and without legitimate medical purpose, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced.
February 13, 2014; U.S. Attorney; Eastern District of Louisiana: Former Chiropractor, David Lee Killen, Indicted On Health Care Fraud And Aggravated Identity Theft Charges
David Lee Killen, age 42, a resident of Covington, Louisiana, was charged today in a thirty-count health care fraud and four-count aggravated identity theft indictment by a Federal Grand Jury for his submission of fraudulent claims to Medicare, Medicaid and private insurers, announced U.S. Attorney Kenneth Allen Polite, Jr.
February 13, 2014; Eastern District of Washington: Walla Walla Man Sentenced To Probation And Ordered To Pay Over $106,000 For Willfully Failing To Pay Child Support
Richland, Washington - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Ty Warren Azeltine, 54, a resident of Walla Walla, was sentenced after having previously pleaded guilty in October, 2013 to Failure to Pay a Child Support Obligation, which is a misdemeanor offense. Senior United States District Court Judge Edward F. Shea sentenced Azeltine to a 30 month term of probation. Judge Shea ordered Azeltine to pay $106,725.23 in restitution, which represents the outstanding child support obligation owed. Judge Shea also ordered Azeltine to actively seek and maintain employment.
February 12, 2014; U.S. Attorney; Eastern District of Texas: Tyler County Woman Guilty of Health Care Fraud
BEAUMONT, Texas - A 31-year-old Woodville, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales. Kari Mannino pleaded guilty to conspiracy to commit health care fraud today before U.S. Magistrate Judge Keith F. Giblin.
February 12, 2014; U.S. Attorney; Western District of Missouri: Former KC Man Pleads Guilty To Fleeing U.S. To Avoid Paying Child Support - Project Save Our Children
Kansas City, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Kansas City, Mo., man who has been living in Thailand pleaded guilty in federal court to fleeing the United States in 2007 to avoid paying child support.
February 12, 2014; U.S. Attorney; Eastern District of Missouri: Local In-Home Healthcare Provider Indicted On Bank Fraud Charges
St. Louis, MO - Tina Kuehl was indicted on bank fraud charges involving her fraudulent statements involving payment of a bank loan. In November 2013, Kuehl was also indicted by a federal grand jury on five counts of health care fraud and one count of making false statements to federal agents. The trial of these offenses is scheduled for May 5, 2014.
February 11, 2014; U.S. Attorney; Northern District of Illinois: Local Physician Indicted on Charges of Health Care Fraud
Rockford, IL-A suspended Rockford physician was indicted today by a federal grand jury on charges of healthcare fraud. Charles S. DeHann, 59, of Belvidere, Illinois, was charged with nine counts of engaging in a scheme to defraud Medicare.
February 11, 2014; U.S. Department of Justice: Durable Medical Equipment Clinic Owner Sentenced for His Role in $11 Million Health Care Fraud Scheme
The former owner of a defunct durable medical equipment (DME) clinic was sentenced today in Miami to serve 70 months in prison for his role in an $11 million health care fraud scheme involving World Class Medical Clinic Corp. Francisco Enrique Chavez, 36, of Miami, was sentenced by U.S. District Judge Patricia A. Seitz in the Southern District of Florida. In addition to his prison term, Chavez was sentenced to three years of supervised release and ordered to pay $1,713,959 in restitution.
February 10, 2014; U.S. Department of Justice: Government Settles False Claims Act Allegations against Kentucky Addiction Clinic, Clinical Lab and Two Doctors for $15.75 Million
SelfRefind, a chain of addiction treatment clinics, PremierTox LLC, a clinical laboratory that performs urine testing and Drs. Bryan Wood and Robin Peavler, the owners of SelfRefind and PremierTox, have agreed to pay $15.75 million to resolve allegations that they violated the False Claims Act by submitting claims to Medicare and Kentucky's Medicaid program for tests that were medically unnecessary, more expensive than those performed or billed in violation of the Stark Law, the Department of Justice announced today. SelfRefind provides addiction services to Medicare and Medicaid beneficiaries in 12 locations across Kentucky.
February 7, 2014; U.S. Attorney; District of Maryland: Prince Frederick Physician Admits To Illegal Drug Distribution and Health Care Fraud Scheme
Greenbelt, Maryland - Physician George Mathews, age 76, of Prince Frederick, Maryland, pleaded guilty today to the illegal distribution of drugs and health care fraud. According to his plea agreement, Mathews had medical offices in Prince Frederick and in Waldorf, Maryland. From January 2007 to July 2011, Mathews repeatedly wrote prescriptions for drugs that he knew were without any legitimate medical purpose. On a number of occasions, Mathews prescribed drugs after being made aware that his patients were either selling or abusing the prescribed drugs. In addition, numerous patients stated that Mathews performed little or no examination before writing the prescriptions.
February 7, 2014; U.S. Attorney; District of Maryland: Car Repair Shop Owner and His Son Admit To Drug Trafficking and Armed Commercial Burglaries
Baltimore, Maryland -Chad Paschall, age 28, of Baltimore, pleaded guilty today to conspiring to distribute oxycodone and two counts of conspiring to commit bank burglary. His father, David Paschall, age 54, of Catonsville, Maryland, pleaded guilty yesterday to the drug and burglary conspiracies.
February 6, 2014; U.S. Attorney; Eastern District of Texas: Houston Man Sentenced in Multi-State Health Care Fraud Scheme
SHERMAN, Texas - A 55-year-old Houston man has been sentenced to federal prison for his role in a multi-state health care fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. Peter Pedro Egede pleaded guilty on Apr. 4, 2013, to health care fraud and was sentenced to 87 months in federal prison today by U.S. District Judge Marcia A. Crone. Egede was also ordered to pay restitution in the amount of $1,635,447.60 to the Medicare and Medicaid programs and a fine of $12,500.
February 6, 2014; U.S. Attorney; Eastern District of Texas: Former Hospital CFO Charged with Health Care Fraud
TYLER, Texas - The former Chief Financial Officer for Dr. Tariq Mahmood's Texas hospitals has been charged with health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. Joe White, 66, of Cameron, Texas, was indicted by a federal grand jury on Jan. 22, 2014, and charged with making false statements to the Centers for Medicare and Medicaid Services (CMS) and aggravated identity theft. White appeared for an arraignment hearing today before U.S. Magistrate Judge John D. Love.
February 6, 2014; U.S. Attorney; Northern District of Ohio: Salem Pharmacist Sentenced To Two Years in Prison for Health Care Fraud
A Salem, Ohio, pharmacist was sentenced to two years in prison and ordered to pay more than $300,000 in restitution after previously pleading guilty to health care fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio and Ohio Attorney General Mike DeWine. Bruce E. Franken, 53, will also be on supervised release for three years upon his release from federal prison.
February 5, 2014; U.S. Attorney; Southern District of New York: Manhattan U.S. Attorney Announces Charges Against Owner Of Bronx Clinic And 23 Other Individuals Involved In Illegal Distribution Of More Than Five Million Oxycodone Pills
Preet Bharara, the United States Attorney for the Southern District of New York, Bridget G. Brennan, the Special Narcotics Prosecutor for the City of New York ("SNP"), James J. Hunt, the Acting Special Agent-in-Charge of the New York Field Division of the U.S. Drug Enforcement Administration ("DEA"), and William Bratton, the Police Commissioner of the City of New York ("NYPD"), announced today the unsealing of an Indictment against 24 defendants in connection with a massive drug distribution ring that operated out of a purported medical clinic with multiple locations in the Bronx, New York, known as "Astramed," and unlawfully distributed more than five million tablets of the prescription painkiller oxycodone over a three-year period. The participants in the distribution ring included doctors, clinic employees, and drug traffickers who oversaw crews of "patients" who they sent into the clinics in order to obtain medically unnecessary prescriptions. The prescriptions were then filled at pharmacies, and the resulting pills resold on the streets of New York and elsewhere.
February 5, 2014; U.S. Attorney; Southern District of Texas: Husband, Wife and Business Associate Charged with Health Care Fraud
HOUSTON - William Owuama, 55, Marla Owuama, 46, and Florida Holiday Island, 64, all of Houston, have been charged in an eight-count indictment alleging conspiracy to commit health care fraud, health care fraud and conspiracy to violate the federal anti-kickback statute, announced United States Attorney Kenneth Magidson.
February 5, 2014; U.S. Attorney; Northern District of Texas: Abilene Dentist Sentenced to 18 Months in Federal Prison and Ordered to Pay Nearly $58,000 in Restitution in Medicaid Fraud Scheme
ABILENE, Texas - Dr. Tuan Truong, aka "Terry Truong," of Abilene, a dentist who practiced pediatric dentistry at Kool Smiles in Abilene, was sentenced this afternoon, by U.S. District Judge Jorge A. Solis, to 18 months in federal prison. Truong pleaded guilty in August 2013 to an Information charging one count of making a false statement in connection with a health care matter. Truong was also ordered to pay $57,969 in restitution to Kool Smiles. Today's announcement was made by U.S. Attorney Sarah R. Salda�a of the Northern District of Texas.
February 4, 2014; United States; District of New Jersey: New Jersey Doctor Convicted Of Taking Cash Kickbacks For Patient
Newark, N.J. - A doctor practicing in Newark was convicted at trial of receiving cash kickbacks for diagnostic testing referrals, becoming the 14th doctor and 16th defendant to be convicted in connection with the government's investigation of illegal payments made by an Orange, N.J., diagnostic testing facility, U.S. Attorney Paul J. Fishman announced today. Maryam Jafari, 43, was convicted of all three counts of a superseding indictment charging her with conspiracy and two counts of violating the federal health care anti-kickback statute after a three-week trial before U.S. District Judge Claire C. Cecchi in Newark federal court. The jury returned the guilty verdicts late Tuesday afternoon (Feb. 4, 2014) after two hours of deliberations.
February 4, 2014; U.S. Attorney; Western District of Louisiana: Madison Parish Hospital Administrator, Two Businessmen, Sentenced For Health Care Fraud
MONROE, La. - United States Attorney Stephanie A. Finley announced today that the former Madison Parish Hospital administrator and two of its vendors were sentenced Monday by U.S. District Judge Robert G. James for health care fraud. They pleaded guilty in October and November of 2013.
February 4, 2014; U.S. Attorney; Southern District of Texas: Speech Therapist and Office Manager Charged with Fraud
HOUSTON - Rebecca Lee Rabon, 44, and Tiffany Nicole Thompson, 31, both of Houston, have been charged in a 44-count indictment alleging conspiracy to commit health care fraud, health care fraud and aggravated identity theft, announced United States Attorney Kenneth Magidson along with Special Agent in Charge Janice Flores of the Defense Criminal Investigative Service (DCIS) - Southwest Field Office in Arlington.
February 3, 2014; U.S. Attorney; Northern District of Texas: Federal Jury Convicts Pharmacist, Physician's Office Manager and Three Drug Dealers in "Pill Mill" Operation
Dallas - A federal jury returned guilty verdicts late this afternoon against five individuals convicted for their roles in a pill mill conspiracy that operated in Dallas since 2010. The trial began Monday, January 27, 2013, in Dallas federal court before U.S. District Judge Barbara M. G. Lynn. Today's announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
February 3, 2014; U.S. Attorney; District of South Dakota: Rosebud Woman Charged With False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substance by Fraud
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman has been indicted by a federal grand jury for False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substance by Fraud. Letha Leroy, age 48, was indicted on January 15, 2014. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 31, 2014, and pled not guilty to the Indictment.
February 3, 2014; U.S. Department of Justice: Leader of $28.3 Million Medicare Fraud Scheme Pleads Guilty
A Florida man who had been the owner and operator of multiple physical therapy rehabilitation facilities pleaded guilty today for his role in organizing and leading a $28.3 million Medicare fraud scheme involving physical and occupational therapy services. Luis Duluc, 53, formerly of southwest Florida, pleaded guilty in the U.S. District Court for the Middle District of Florida to conspiracy to commit health care fraud and making a false statement relating to health care matters. His sentencing date will be set by the court. He faces a maximum penalty of 15 years in prison.

January 2014

January 31, 2014; U.S. Department of Justice: Queens, N.Y., Doctor Sentenced for His Role in $15 Million Medicare Fraud Scheme
A Queens, N.Y., medical doctor was sentenced today to serve 12 months and a day in prison for his role in a scheme that fraudulently billed Medicare more than $15 million for, among other things, physical therapy and lesion removal services that were medically unnecessary and never provided. Hoi Yat Kam, 59, was sentenced by U.S. District Judge Edward R. Korman in the Eastern District of New York. In addition to his prison term, Kam was sentenced to serve three years of supervised release and to pay $2,217,656 in restitution.
January 31, 2014; U.S. Attorney; Western District of Michigan: Kentwood Pharmacy Owner and Thirteen Additional Employees Face Federal Charges
Grand Rapids, Michigan - U.S. Attorney Patrick Miles announced today that a federal grand jury returned a Second Superseding Indictment levelling additional charges against Kim Mulder, the CEO of Kentwood Pharmacy, and thirteen employees of the pharmacy. The indictment charges that Mulder conspired with Richard Clarke, Kentwood Pharmacy's Director of Sales, and Lawrence Harden, Kentwood Pharmacy's Chief Pharmacist, to return, restock and re-dispense drugs that were previously dispensed to nursing homes and adult foster care homes.
January 30, 2014; U.S. Department of Justice: Three Miami Residents Indicted for Alleged Roles in $190 Million Medicare Fraud Scheme
Three Miami residents have been indicted for their alleged participation in a $190 million Medicare fraud scheme. On Jan. 28, 2014, a federal grand jury in Miami returned a 10-count indictment charging Nelson Rojas, 43, Roger Bergman, 64, and Rodolfo Santaya, 54, for allegedly participating in a scheme to defraud Medicare by submitting false and fraudulent claims, from approximately December 2002 to October 2010.
January 30, 2014; U.S. Attorney; District of South Dakota: St. Francis Man Charged With False Statements and Fraud
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substance by Fraud.
January 30, 2014; U.S. Attorney; District of South Dakota: Idaho Man Sentenced for Failure to Pay Child Support
United States Attorney Brendan V. Johnson announced that a Post Falls, Idaho, man convicted of three counts of Failure to Pay Legal Child Support was sentenced on January 23, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
January 30, 2014; U. S. Attorney; Eastern District of Missouri: St. Charles Doctor Pleads Guilty To Medicare Fraud
St. Louis, MO - Dr. Khaled Hassan, St. Charles County, pled guilty to billing Medicare for "face to face" office visits performed on dates when he was actually traveling outside of the United States.
January 30, 2014; U.S. Attorney; Eastern District of California: Physician Practicing in Grass Valley and Yuba City Indicted for Illegal Prescription Practice
Sacramento, Calif. - A federal grand jury returned a six-count indictment today against Nicholas J. Capos Jr., 63, of Granite Bay, charging him with one count of conspiracy to distribute, dispense, and possess with intent to distribute oxycodone, and five counts of illegal distribution and dispensation of oxycodone, United States Attorney Benjamin B. Wagner announced.
January 29, 2014; U.S. Department of Justice: Kentucky Hospital Agrees to Pay Government $16.5 Million to Settle Allegations of Unnecessary Cardiac Procedures
Saint Joseph Health System Inc. has agreed to pay $16.5 million to resolve allegations that Saint Joseph Hospital violated the False Claims Act by submitting false claims to the Medicare and Kentucky Medicaid programs for a variety of medically unnecessary cardiac procedures, the Justice Department announced today. Saint Joseph Health System operates numerous hospitals statewide, including Saint Joseph Hospital, which is based in London, Ky.
January 29, 2014; U.S. Attorney; Southern District of Indiana: Hogsett Announces Charges against Indianapolis Man for Health Care Fraud
Joseph H. Hogsett, the United States Attorney, announced today that Ronald Reed, age 46, has been charged with conspiring to commit health care fraud in a scheme that involved the sale of electric wheelchairs and scooters and the potential loss of hundreds of thousands in taxpayer dollars. This comes as Hogsett's office has continued an effort to crack down on white collar fraud in Indiana's business community.
January 29, 2014; U.S. Attorney; Northern District of Ohio: Seven Ohio Oncologists Ordered To Pay $2.6 Million
Seven Ohio oncologists have been ordered to collectively pay nearly $2.6 million after pleading guilty to importing cancer medications that had not been approved by the Federal Drug Administration, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
January 28, 2014; U.S. Attorney; District of Maine: Scarborough Man Sentenced to 9 Years on Drug and Health Care Fraud Charges
Portland, Maine - United States Attorney Thomas E. Delahanty II announced that Adam Goodwin, 39, of Scarborough, Maine, was sentenced today in U.S. District Court by Judge George Singal to 9 years in prison and 3 years of supervised release for conspiracy to distribute oxycodone and health care fraud. Goodwin pled guilty to the charges on July 29, 2013.
January 28, 2014; U.S. Department of Justice: Patient Recruiter Pleads Guilty in Connection With $13 Million Health Care Fraud Scheme
Pavel Zborovskiy, 57, of Brooklyn, N.Y., pleaded guilty today to conspiracy to pay and receive illegal health care kickbacks in connection with a $13 million health care fraud and money laundering scheme. Zborovskiy pleaded guilty before U.S. District Judge Nina Gershon of the Eastern District of New York and is the sixth defendant to plead guilty in connection with the scheme. At sentencing on May 28, 2014, Zborovskiy faces a maximum penalty of five years in prison and a fine of more than $2.5 million.
January 28, 2014; U.S. Attorney; Eastern District of Kentucky: Saint Joseph London Hospital to Pay $16.5 Million to Settle False Claims Act Allegations of Unnecessary Heart Procedures
London, KY - Saint Joseph Health System, Inc., d/b/a Saint Joseph London Hospital ("Saint Joseph") has agreed to pay the U.S. Government $16.5 million to resolve civil allegations that it submitted false or fraudulent claims to the Medicare and Kentucky Medicaid programs for a variety of medically unnecessary heart procedures. According to the settlement agreement, the U.S. Government contends that from January 1, 2008 until August 31, 2011, several doctors working at the hospital performed numerous invasive cardiac procedures on Medicare and Medicaid patients who did not need them. The hospital then billed the federal programs for these unnecessary procedures, which include coronary stents, pacemakers, coronary artery bypass graft surgeries ("CABGS"), and diagnostic catheterizations.
January 27, 2014; U.S. Department of Justice: Medicare Fraud Strike Force Set Record Numbers for Health Care Fraud Prosecutions
The Justice Department's Medicare Fraud Strike Force has set record numbers for health care prosecutions in Fiscal Year 2013, demonstrating the targeted and coordinated approach remains strong as the strike force enters its eighth year of fighting fraud against the government's health care programs. In Fiscal Year 2013, the strike force set records in the number of cases filed (137), individuals charged (345), guilty pleas secured (234) and jury trial convictions (46). In addition, the defendants who were charged and sentenced are facing significant time in prison - an average of 52 months in prison for those sentenced in FY 2013, and an average of 47 months in prison for those sentenced since 2007.
January 27, 2014; U.S. Attorney; Northern District of Illinois: Illinois Hospice Executive Charged with Federal Health Care Fraud for Allegedly Falsely Elevating Level of Patients' Care
CHICAGO-An owner of an Illinois hospice company was charged with federal health care fraud for allegedly engaging in an extensive scheme to obtain higher Medicare and Medicaid payments by fraudulently elevating the level of hospice care for patients, many of whom resided at nursing homes he also controlled across the state. In many instances, the level of hospice care allegedly exceeded what was medically necessary or actually provided, including for some patients who did not have terminal illnesses or who were enrolled far longer?sometimes for several years?than the required life expectancy of six months or less.
January 24, 2014; U.S. Attorney; Northern District of Ohio: Solon Couple Indicted For $750,000 Health Care Fraud
A Solon couple was indicted on nine counts of health care fraud for defrauding Medicaid out of approximately $750,000 by providing ambulette rides to patients who did not use or need wheelchairs, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Ohio Attorney General Mike DeWine.
January 24, 2014; U.S. Department of Justice: Disbarred Attorney Pleads Guilty for Role in $28.3 Million Medicare Fraud Scheme
A North Carolina woman has pleaded guilty for her involvement in a $28.3 million Medicare fraud scheme involving physical and occupational therapy services. Margarita M. Grishkoff, 59, of Charlotte, N.C., and formerly of southwest Florida, pleaded guilty today in the U.S. District Court for the Middle District of Florida to conspiracy to commit health care fraud. Her sentencing date will be set by the court. She faces a maximum penalty of 10 years in prison.
January 24, 2014; U.S. Department of Justice: Home Health Agency Owner Sentenced for Role in $11 Million Detroit Medicare Fraud Scheme
A home health agency owner who participated in a Medicare fraud scheme that totaled almost $11 million was sentenced in Detroit today to serve 120 months in prison. Chiradeep Gupta, 39, was sentenced by U.S. District Judge Denise Page Hood in the Eastern District of Michigan. In addition to his prison term, Gupta was sentenced to serve three years of supervised release and was ordered to pay more than $10 million in restitution, jointly and severally with his co-defendants.
January 24, 2014; U.S. Department of Justice: Tennessee and Virginia Orthopedic Clinics to Pay $1.85 Million to Settle Allegations of Billing Medicare for Reimported Products
WASHINGTON - Two orthopedic clinics will pay a combined $1.85 million to resolve state and federal False Claims Act allegations that they knowingly billed state and federal health care programs for reimported osteoarthritis medications, known as viscosupplements, the Department of Justice announced today. Tennessee Orthopaedic Clinics P.C., headquartered in Knoxville, Tenn., will pay $1.3 million, and Appalachian Orthopaedic Clinics P.C., headquartered in Kingsport, Tenn., will pay $550,000.
January 24, 2014; U.S. Attorney; District of New Jersey: Pharmacist Admits Multiple Sales Of Oxycodone Without A Prescription, Agrees To Forfeit $1.5 Million
Newark, N.J. - The former pharmacist-in-charge of West Orange Pharmacy today admitted to illegally distributing hundreds of tablets of oxycontin in exchange for thousands of dollars in cash, U.S. Attorney Paul J. Fishman announced.
January 23, 2014; U.S. Attorney; Western District of Kentucky: Owners of Durable Medical Equipment Companies Sentenced To 54 Months in Prison for Their Roles in a Multi-Million Dollar Health Care Fraud Scheme
Louisville, KY - The former owners of two, now defunct durable medical equipment companies were sentenced to 54 months in prison, and ordered to pay $1,940,043.84 in restitution, by U.S. District Judge John G. Heyburn II, for conspiracy, health care fraud, submitting false claims and wire fraud announced David J. Hale, United State Attorney for the Western District of Kentucky.
January 23, 2014; U.S. Department of Justice: Owner of Houston Medical Equipment Companies Indicted for $3.4 Million Medicare Fraud Scheme
Huey P. Williams Jr., the owner and operator of two durable medical equipment (DME) companies, was arrested yesterday for his alleged role in a $3.4 million Medicare fraud scheme. The indictment charges Williams, 44, of Katy, Texas, with one count of health care fraud, which carries a maximum penalty of 10 years in prison upon conviction. Williams is expected to make his initial appearance in U.S. District Court for the Southern District of Texas in Houston.
January 23, 2014; U.S. Department of Justice: Home Health Agency Owner and Director of Nursing Indicted
The operator and director of nursing of a home health agency based in Richmond, Texas, was arrested yesterday for her alleged role in a Medicare fraud scheme and a conspiracy to structure bank withdrawals. The owner and operator of the same home health agency was also arrested yesterday for his alleged role in the conspiracy to structure bank withdrawals.
January 21, 2014; U.S. Attorney; Middle District of Pennsylvania: Millcreek Township School District Agrees to Pay Government $350,000 to Resolve Allegation of Improper Medicaid Reimbursement
The United States Attorney's Office for the Middle District of Pennsylvania announced that Millcreek Township School District has agreed to pay the United States $350,000 to resolve allegations that it submitted improper claims to the Medicaid-funded School Based Access Program. Millcreek Township School District is the public school system for students residing in Millcreek Township, Pennsylvania, a suburb of Erie.
January 17, 2014; U.S. Attorney; District of South Dakota: Kadoka Man Sentenced For Destruction of Government Property
United States Attorney Brendan V. Johnson announced that a Kadoka, South Dakota, man convicted of Destruction of Government Property was sentenced on January 13, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
January 17, 2014; U.S. Department of Justice: Nationwide Contract Therapy Providers to Pay $30 Million to Resolve False Claims Act Allegations
Contract therapy providers RehabCare Group Inc., RehabCare Group East Inc. and Rehab Systems of Missouri and management company Health Systems Inc. have agreed to pay $30 million to resolve claims that they violated the False Claims Act by engaging in a kickback scheme related to the referral of nursing home business, the Justice Department announced today. Additionally, as part of this settlement, the entities have agreed to restructure their business arrangement.
January 17, 2014; U.S. Department of Justice: Miami Patient Recruiter Pleads Guilty for Role in $190 Million Medicare Fraud Scheme
A patient recruiter for a fraudulent Miami-area mental health company, American Therapeutic Corporation (ATC), pleaded guilty today for her participation in a $190 million Medicare fraud scheme. Miami resident Mayelin Santoyo, 28, pleaded guilty before U.S. District Judge K. Michael Moore in the Southern District of Florida to one count of conspiracy to receive health care kickbacks. Sentencing has been scheduled for March 28, 2014.
January 17, 2014; U.S. Attorney; Middle District of Tennessee: Former Owners of Murfreesboro Ambulance Service Sentenced To Federal Prison for Defrauding Medicare
Woody Medlock, Sr., 70, and his wife, Kathy Medlock, 58, of Murfreesboro, Tennessee, former owners of Murfreesboro Ambulance Service, were sentenced yesterday to federal prison for Medicare fraud and aggravated identity theft, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
January 17, 2014; U.S. Attorney; District of South Dakota: Idaho Man Found Guilty Of Failure to Pay Legal Child Support
United States Attorney Brendan V. Johnson announced that David E. Cox, age 47, of Post Falls, Idaho, was found guilty by a federal jury in Rapid City, South Dakota, of 3 counts of Failure to Pay Legal Child Support.
January 16, 2014; U.S. Attorney; District of Kansas: Manhattan Physician Pleads Guilty To Unlawfully Prescribing Prescription Drugs
TOPEKA, KAN. - A Manhattan, Kan., physician pleaded guilty today to unlawfully prescribing prescription drugs, U.S. Attorney Barry Grissom said. Michael P. Schuster, 54, Manhattan, Kan., pleaded guilty to one count of conspiracy to distribute controlled substances.
January 15, 2014; U.S. Attorney; Eastern District of Pennsylvania: Brotherly Love Ambulance EMT Pleads Guilty to Health Care Fraud Scheme
PHILADELPHIA - Neel Jackson, 35, of Philadelphia, PA, pleaded guilty today to health care fraud in connection with a scheme involving Brotherly Love Ambulance, Inc. A sentencing hearing is scheduled for April 17, 2014.
January 13, 2014; U.S. Attorney; Central District of California: San Fernando Valley Woman Pleads Guilty to Federal Charges in $25 Million Health Care Fraud Case
Los Angeles-A North Hollywood woman who worked in the health care industry pleaded guilty today to federal charges for orchestrating a scheme that submitted nearly $25 million in fraudulent bills to Medicare for services and supplies, including power wheelchairs and diagnostic tests that were medically unnecessary and sometimes were never provided.
January 13, 2014; U.S. Attorney; Eastern District of New York: United States Settles Action against New York City Department of Education for Submitting False Claims to Medicaid for Psychological Services to Special Education Students
Loretta E. Lynch, United States Attorney for the Eastern District of New York, today announced that the United States has entered into a settlement with the City of New York in the case of Ohlmeyer ex rel. United States of America v. City of New York, a whistleblower action brought pursuant to the qui tam provisions of the federal False Claims Act, 31 U.S.C. Sections 3729-33 (the FCA). In its civil complaint, the United States alleged that the City of New York Department of Education (DOE) submitted false claims to Medicaid for psychological counseling services to special education students in the New York City public schools. The settlement calls for the City to pay $1,375,000 to the United States.
January 13, 2014; U.S. Department of Justice: Government Intervenes In Lawsuits against Health Management Associates Inc. Hospital Chain Alleging Unnecessary Inpatient Admissions and Payment of Kickbacks
WASHINGTON - The government has intervened in eight False Claims Act lawsuits against Health Management Associates Inc. (HMA) alleging that HMA billed federal health care programs for medically unnecessary inpatient admissions from the emergency departments at HMA hospitals and paid remuneration to physicians in exchange for patient referrals, the Justice Department announced today. The government also has joined in the allegations in one of these lawsuits that Gary Newsome, HMA's former CEO, directed HMA's corporate practice of pressuring emergency department physicians and hospital administrators to raise inpatient admission rates, regardless of medical necessity. HMA operates 71 hospitals in 15 states: Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, Missouri, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Washington and West Virginia.
January 10, 2014; U.S. Department of Justice: Former HealthEssentials Solutions Inc. Executives To Pay More Than $1 Million To Resolve Allegations Of Submitting False Claims To Federal Health Care Program
WASHINGTON - Michael R. Barr, former chief executive officer of Louisville, Kentucky-based HealthEssentials Solutions Inc., has paid $1 million to resolve allegations that he knowingly caused HealthEssentials to submit false claims to Medicare between 1999 and 2004, the Justice Department announced today. Norman J. Pfaadt, HealthEssentials' former chief financial officer, also agreed to pay $20,000 to resolve similar allegations. HealthEssentials provided primary medical care to patients in nursing facilities, assisted living facilities and other settings from 1998 until it filed for bankruptcy and ceased operations in 2005.
January 10, 2014; U.S. Attorney; Southern District of Texas: McAllen Area Ambulance Company Owner Charged with Multiple Health Care Fraud Allegations
McAllen, Texas ? The owner of a McAllen area ambulance transportation company has turned himself into federal authorities following the return of a federal indictment alleging a scheme to defraud Medicare and Texas Medicaid through fraudulent billings, announced United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott.
January 10, 2014; U.S. Attorney; Southern District of Illinois: Centreville Woman Sentenced For Health Care Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Valerie W. Johnson, 56, of Centreville, Illinois, was sentenced in United States District Court in East St. Louis, Illinois on one count of Health Care Fraud.
January 9, 2014; U.S. Attorney; District of New Jersey: Pharmacist Charged With Paying More Than $50,000 in Kickbacks to Doctor for Prescription Referrals
Newark, N.J. - A pharmacist with a compounding pharmacy in Lakewood, N.J., was arrested today and charged with paying more than $50,000 to a Toms River, N.J., physician to induce the doctor to make prescription referrals to the pharmacy, U.S. Attorney Paul J. Fishman announced. Vladimir Kleyman, 42, of Lakewood, N.J., the president and pharmacist in charge of Prescriptions R US - a compounding pharmacy in Lakewood - was charged with violating the Anti-Kickback Statute by using a middle-man to provide repeated cash payments - totaling at least tens of thousands of dollars - to a N.J. physician over the course of several months.
January 9, 2014; U.S. Department of Justice: Justice Department Collects More Than $8 Billion in Civil and Criminal Cases in Fiscal Year 2013
Attorney General Eric Holder today announced that the Justice Department collected at least $8 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The statistics indicate that in FY 2013, approximately $5.9 billion was collected by the department's litigating divisions and the U.S. Attorneys' offices in individually and jointly handled civil actions. The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct and collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. This number includes approximately $3.2 billion related to health care fraud and more than $430 million related to environmental cases. In addition, civil debts were collected on behalf of several federal agencies, including the Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
January 9, 2014; U.S. Department of Justice: CareFusion to Pay the Government $40.1 Million to Resolve Allegations That Include More Than $11 Million in Kickbacks to One Doctor
CareFusion Corp. has agreed to pay the government $40.1 million to settle allegations that it violated the False Claims Act by paying kickbacks and promoting its products for uses that were not approved by the Food and Drug Administration, the Justice Department announced today. CareFusion, a California-based medical technology company, develops, manufactures and sells pharmaceutical products, including products sold under the trade name ChloraPrep.
January 9, 2014; U.S. Attorney; Eastern District of California: Southern California Doctor Sentenced to over 3 Years in Prison for Medicare Fraud Scheme
Sacramento, Calif. - Dr. Emilio Louis Cruz III, 61, of Carson, Calif., was sentenced today by United States District Judge Morrison C. England Jr. to three years and two months in prison and ordered to pay $601,581 in restitution for his role in a conspiracy to commit Medicare fraud, United States Attorney Benjamin B. Wagner announced.
January 9, 2014; U.S. Attorney; Eastern District of Pennsylvania: Brotherly Love Ambulance EMT Charged In Health Care Fraud Scheme
Philadelphia - Neel Jackson, 35, of Philadelphia, PA, was charged today by Information with Health Care Fraud and aiding and abetting health care fraud, announced United States Attorney Zane David Memeger. In July 2010, Feda Kuran, who is charged elsewhere and has pleaded guilty, began operating Brotherly Love Ambulance, Inc. with a co-schemer. According to the Information, Jackson, an Emergency Medical Technician (EMT) employed by Brotherly Love, transported patients by ambulance when those patients could have been transported safely by other means and were, therefore, not eligible for ambulance service under Medicare and Medicaid requirements.
January 8, 2014; U.S. Attorney; Southern District of New York: Manhattan U.S. Attorney Simultaneously Files Additional Healthcare Fraud Claims Against Novartis Pharmaceuticals Corp. And Settles Lawsuit against Bioscrip, Inc., In Connection With a Multimillion-Dollar Kickback Scheme Involving a Prescription Drug
Preet Bharara, the United States Attorney for the Southern District of New York, and Ronald T. Hosko, the Assistant Director of the Federal Bureau of Investigation, Criminal Investigative Division ("FBI"), announced today that the United States has filed additional civil healthcare fraud claims in Manhattan federal court against NOVARTIS PHARMACEUTICALS CORP. ("NOVARTIS") and BIOSCRIP, INC. ("BIOSCRIP"). The Government's Amended Complaint seeks treble damages and civil penalties under the False Claims Act against NOVARTIS and BIOSCRIP for NOVARTIS providing kickbacks, in the form of patient referrals and in the guise of rebates, to BIOSCRIP in exchange for BIOSCRIP recommending refills to Exjade patients. The lawsuit alleges that, as a result of this kickback scheme, Medicare and Medicaid have paid tens of millions of dollars in reimbursements based on false, kickback-tainted claims for Exjade shipped by BIOSCRIP.
January 7, 2014; U.S. Attorney: Eastern District of Washington: United States Department Of Justice And The State Of Washington Announce Successful Health Care Fraud Settlement With Dr. Abhijit Deshpande And Pinnacle Health Care
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that the United States and the State of Washington have reached a civil settlement on behalf of the United States Department of Health and Human Services which administers the Medicare program and the Washington State Health Care Authority which administers the Medicaid program in the amount of $89, 965.38 for claims that Dr. Abhijit Deshpande and his clinics, the Yakima Sleep Center in Yakima, Washington, and the Pinnacle Sleep & Wake Disorder Center in Kennewick, Washington, both operating under the umbrella of his business Pinnacle Health Care, incorrectly overbilled the federal and state health care programs between January 1, 2009 through August 31, 2011.
January 7, 2014; U.S. Department of Justice: United States Government Settles False Claims Act Allegations against Florida Vein Clinic and
Its Owner
A Florida-based physician, Dr. Ravi Sharma, has agreed to pay $400,000 to resolve allegations that he and his clinics violated the False Claims Act by knowingly billing Medicare for vein injections and physician office visits performed by unqualified personnel, the Justice Department announced today.
January 7, 2014; U.S. Department of Justice: Medical Clinic Owner and Other Patient Recruiters Plead Guilty in Miami for Roles in $8 Million Health Care Fraud Scheme
Several patient recruiters, including a medical clinic owner, pleaded guilty today in connection with a health care fraud scheme involving Flores Home Health Care Inc., a defunct home health care company. At a hearing held before U.S. District Judge Ursula Ungaro of the Southern District of Florida, Lerida Labrada, 59, of Miami, pleaded guilty to conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison, and Mayra Flores, 49, and German Martinez, 36, both of Miami, pleaded guilty to conspiracy to defraud the United States and receive health care kickbacks, which carries a maximum penalty of five years in prison. Sentencing has been scheduled for March 14, 2014.
January 7, 2014; U.S. Department of Justice: Medical Clinic Owner Pleads Guilty in Miami for Role in Multiple Health Care Fraud Schemes Totaling Over $20 Million
The owner and operator of a Miami medical clinic pleaded guilty today in connection with multiple health care fraud schemes involving the defunct clinic Merfi Corp. Isabel Medina, 49, of Miami, pleaded guilty before U.S. District Judge Ursula Ungaro of the Southern District of Florida to conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison. Sentencing has been scheduled for March 14, 2014.
January 6, 2014; U.S. Attorney; Eastern District of Pennsylvania: Medical Center Agrees To $2 Million Settlement of Voluntary Disclosure
The United States announces that it has settled claims under the False Claims Act with St. Mary Medical Center (SMMC) for improperly administering certain physician income guarantee agreements. SMMC voluntarily disclosed the allegations and has agreed to pay $2,339,224.70 to resolve the matter.
January 7, 2014; U.S. Attorney; Northern District of Texas: Man Convicted at Trial for Role in Nearly $3 Million Health Care Fraud Scheme Involving the Operation of Euless Healthcare Corp. Sentenced to 72 Months in Federal Prison
Dallas-Godwin Umotong, 58, was sentenced by U.S District Judge David C. Godbey to 72 months in federal prison and ordered to pay $880,000 in restitution following his conviction at trial in April 2013 on charges stemming from his involvement in the operation of Euless Healthcare Corporation (EHC) and Medic Healthcare Incorporated (Medic). Umotong is the last of six defendants sentenced in the conspiracy. Judge Godbey ordered that Umotong, a resident of Houston, surrender to the Bureau of Prisons in March. Today's announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
January 7, 2014; U.S. Attorney; Western District of North Carolina: Former Clinic Owner Pleads Guilty To $3.4 Million Medicaid Fraud Scheme
Charlotte, N.C. - A Charlotte man pleaded guilty today for his involvement in a health care fraud scheme that attempted to defraud Medicaid of at least $3.4 million for sham mental and behavioral health services, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Ronnie Lorenzo Robinson, 36, of Charlotte, pleaded guilty today before U.S. Magistrate Judge David S. Cayer to two counts of health care fraud. At today's plea hearing, Robinson admitted that from in or about 2007 to in or about 2011, he engaged in a scheme to defraud Medicaid of at least $3.4 million in fraudulent reimbursement payments from false claims submitted to Medicaid.
January 6, 2014; U.S. Attorney; District of Columbia: Total Care Services to Pay $187,500 to Resolve False Claims Allegations Company, a D.C. Medicaid Provider, Was Accused of Billing for Services without Proper Documentation
WASHINGTON - Total Care Services and its owner have agreed to pay $187,500 to resolve allegations that they violated the False Claims Act by knowingly billing Medicaid for patient services for which they had no, insufficient, or inaccurate documentation.
January 6, 2014; U.S. Attorney; District of New Jersey: Doctor Admits Taking Bribes in Test-Referrals Scheme with New Jersey Clinical Lab
Newark, N.J. - A doctor with a family medicine practice in New Jersey admitted today to accepting bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president and numerous associates, New Jersey U.S. Attorney Paul J. Fishman announced. Joel Fischgrund, 60, of Livingston, N.J., pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court to one count of accepting bribes.

December 2013

December 31, 2013; U.S. Department of Justice: Colorado Health Care Organization and One of Its Montana Hospitals to Pay $3.85 Million for Allegedly Providing Financial Benefits to Referring Physicians and Physician Groups
St. James Healthcare (St. James), a hospital located in Butte, Mont., and its parent company, Sisters of Charity of Leavenworth Health System (Sisters of Charity), a health care organization based in Denver, Colo., have agreed to pay $3.85 million to resolve allegations that they violated the Anti-Kickback Statute, the Stark Law and the False Claims Act by improperly providing financial benefits to physicians and physician groups that made referrals to the hospital, the Justice Department announced today.
December 27, 2013; U.S. Department of Justice: Abbott Laboratories Pays U.S. $5.475 Million to Settle Claims That Company Paid Kickbacks to Physicians
Abbott Laboratories has agreed to pay the United States $5.475 million to resolve allegations that it violated the False Claims Act by paying kickbacks to induce doctors to implant the company's carotid, biliary and peripheral vascular products, the Justice Department announced today. Abbott is a global pharmaceuticals and health care products company based in Abbott Park, Ill.
December 26, 2013; U.S. Attorney; District of Arizona: Rural/Metro to Pay $2.8 Million to Resolve False Claims Allegations
PHOENIX - Rural/Metro Corporation, a Delaware corporation that through its subsidiaries and affiliates provides private ambulance and fire protection services in Arizona and approximately 20 other states, has agreed to pay the United States $2,802,112 to resolve civil allegations that various Rural/Metro ambulance companies violated the federal False Claims Act by submitting false bills to Medicare.
December 24, 2013; U.S. Attorney; Western District of Washington: Anesthesiologist Pleads Guilty To Unlawfully Distributing Oxycodone
A former hospital anesthesiologist pleaded guilty today in U.S. District Court in Seattle to distribution of oxycodone, announced U.S. Attorney Jenny A. Durkan. HIEU TU LE, 40, of Snohomish, Washington, a medical doctor licensed in Washington State since 2004, operated medical clinics in Seattle and Everett, Washington. In his plea agreement, LE admits that between March 2012 and July 2013 he wrote oxycodone prescriptions for cash and obtained oxycodone that he distributed for cash, all without a legitimate medical need to do so.
December 23, 2013; U.S. Attorney; Southern District of Florida: Two Miami Women Sentenced to Ten Years in Prison for Conspiring to Pay Healthcare Kickbacks
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Miami Regional Office, announce that U.S. District Judge Federico A. Moreno sentenced Yiral Cardona, 39, of Miami, and Susan Chi, 42, of Miami, to ten years in prison stemming from their leadership role in a conspiracy to pay healthcare kickbacks.
December 20, 2013; U.S. Attorney; Western District of Virginia: Pair Sentenced On Health Care Related False Statement Charges
Roanoke, Virginia - A mother and son who falsely billed Medicaid for services that were not performed were sentenced yesterday morning in the United States District Court for the Western District of Virginia in Roanoke. In a related case earlier this week, a registered nurse who also billed Medicaid for services that were not performed in relation to the same situation, pleaded guilty.
December 20, 2013; U.S. Attorney; Southern District of Texas: Local Doctor Pleads Guilty in Misbranding Drugs Case
Laredo, Texas - Eduardo Miranda M.D., 55, of Laredo, has pleaded guilty to one count of introducing misbranded drugs into the country, announced United States Attorney Kenneth Magidson. From October 2007 through January 2009, Miranda, a doctor who specializes in treating patients with cancer, ordered cancer drugs from a pharmacy called QSP, based in Canada. These drugs were not approved for distribution or use in the U.S. and did not bear adequate labeling for use. Some of the drugs had instructions and labeling in other languages. QSP was also not an authorized distributor or a retailer of these drugs in Canada.
December 20, 2013; U.S. Department of Justice: Justice Department Recovers $3.8 Billion from False Claims Act Cases in Fiscal Year 2013
The Justice Department secured $3. 8 billion in settlements and judgments from civil cases involving fraud against the government in the fiscal year ending Sept. 30, 2013, Assistant Attorney General for the Civil Division Stuart F. Delery announced today. This dollar amount, which is the second largest annual recovery of its type in history, brings total recoveries under the False Claims Act since January 2009 to $ 17 billion - nearly half the total recoveries since the Act was amended 27 years ago in 1986.
December 20, 2013; U.S. Department of Justice: Genzyme Corp. to Pay $22.28 Million to Resolve False Claims Allegations Related to "Slurry" Used in Patients
Genzyme Corp. has agreed to pay $22.28 million to resolve allegations that it marketed, and caused false claims to be submitted to federal and state health care programs for use of, a "slurry" version of its Seprafilm adhesion barrier, the Justice Department announced today. Seprafilm is a thin film intended to reduce adhesions after surgery by forming a bio-resorbable barrier between abdominal tissue and organs. Genzyme is a biotechnology corporation based in Cambridge, Mass., and was acquired by Sanofi-Aventis SA in April 2011.
December 20, 2013; U.S. Department of Justice: Patient Recruiter and Therapy Staffing Company Owner Sentenced for Roles in $7 Million Health Care Fraud Scheme
A patient recruiter and a therapy staffing company owner were sentenced today to serve 50 months and 46 months in prison, respectively, for their participation in a $7 million health care fraud scheme involving defunct home health care company Anna Nursing Services Corp. Ivan Alejo, 48, and Hugo Morales, 37, both of Miami, were sentenced by U.S. District Judge Jose E. Martinez in the Southern District of Florida. In addition to their prison terms, Alejo and Morales were both sentenced to serve three years of supervised release. Alejo and Morales were also ordered to pay jointly and severally with their co-defendants $6,928,931 and $1,958,279, respectively, in restitution.
December 20, 2013; U.S. Department of Justice: Unlicensed Miami Clinic Nurse Convicted at Trial and Sentenced for Role in $11 Million HIV Infusion Fraud Scheme
An unlicensed nurse who fled after being charged in 2008 and was captured this year was sentenced today to serve 108 months in prison for her role in a fraud scheme that resulted in more than $11 million in fraudulent claims to Medicare. Carmen Gonzalez, 39, of Cape Coral, Fla., worked at St. Jude Rehabilitation Center, a fraudulent HIV infusion clinic in Miami that was controlled by her cousins, Jose, Carlos and Luis Benitez, aka the Benitez Brothers. Gonzalez was also sentenced for failing to appear at a June 2008 bond hearing. The sentencing follows her conviction at trial to one count of conspiracy to defraud the United States to cause the submission of false claims and to pay health care kickbacks and one count of conspiracy to commit health care fraud. Gonzalez had previously pleaded guilty to a separate charge of failure to appear.
December 19, 2013; U.S. Department of Justice: Health Care Clinic Owner Sentenced for Role in $7 Million Medicare Fraud Scheme
The owner of a Miami home health care company was sentenced to serve 235 months in prison today for her participation in a $7 million health care fraud scheme involving defunct home health care company Anna Nursing Services Corp. Dora Moreira, 46, was sentenced by U.S. District Judge Jose E. Martinez in the Southern District of Florida. In addition to her prison term, Moreira was sentenced to serve three years of supervised release and ordered to pay $6,928,931 in restitution.
December 19, 2013; U.S. Department of Justice: Tennessee Cardiologist to Pay $1.15 Million to Settle Allegations That He Performed Medically Unnecessary Heart Procedures
Cardiologist Dr. Elie H. Korban will pay $1.15 million to resolve False Claims Act allegations that he billed Medicare and Medicaid for medically unnecessary cardiac stent placements, the Justice Department announced today. Korban owns Delta Clinic, with offices in Jackson, Tenn., and Lexington, Tenn., and has privileges at Jackson-Madison County General Hospital and Regional Hospital of Jackson, both in Jackson, Tenn.
December 18, 2013; U.S. Department of Justice: South Florida Man Pleads Guilty for Role in $10.5 Million Medicare Fraud Scheme
A south Florida man has pleaded guilty today for his role in a $10.5 million Medicare fraud scheme involving physical and occupational therapy services. Luis Alberto Garcia Perojo, 42, pleaded guilty in the U.S. District Court for the Middle District of Florida to conspiring to commit health care fraud. He faces a maximum penalty of 10 years in prison, and his sentencing will be scheduled at a later date. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, Acting U.S. Attorney for the Middle District of Florida A. Lee Bentley III, Special Agent in Charge Paul Wysopal of the FBI's Tampa Field Office and Special Agent in Charge Christopher Dennis of the U.S. Health and Human Services Office of Inspector General Office of Investigations made the announcement.
December 18, 2013; U.S. Attorney; District of New Jersey: New Jersey Doctor Admits Taking Bribes in Test-Referrals Scheme with New Jersey Clinical Lab
Newark, N.J. - A New Jersey doctor admitted today to accepting bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC, of Parsippany, N.J., its president and numerous associates, New Jersey U.S. Attorney Paul J. Fishman announced. Glenn Leslie, 59, of Ramsey, N.J., pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of accepting bribes.
December 18, 2013; U.S. Attorney; Southern District of Texas: Two Area Women Head to Federal Prison in Home Health Services Conspiracy
Corpus Christi, Texas -Debra Jean Velasquez, of Robstown, and Sylvia Salinas Ramirez, of Driscoll, have been ordered to prison in a scheme to defraud the Texas Medicaid program through fraudulent home health billings, announced United States Attorney Kenneth Magidson along with Texas Attorney General Greg Abbott. The woman entered guilty pleas Sept. 4, 2013, to conspiring to submit false and fraudulent bills to the Texas Medicaid Program by wire transmissions as well as wire fraud.
December 17, 2013; U.S. Attorney; Western District of Louisiana: Lake Charles Doctor Sentenced To 12 Months In Prison For Health Care Fraud
Lafayette, La. - United States Attorney Stephanie A. Finley announced today that Dr. Lynn E. Foret, 64, of Lake Charles, La., was sentenced by U.S. District Court Judge Richard T. Haik to 12 months in prison and three years of supervised release for defrauding Medicare, Medicaid and private insurance companies out of close to $1 million. He was also ordered to pay $871,947.66 restitution and a $25,000 fine. Foret pleaded guilty April 18, 2013.
December 16, 2013; U.S. Attorney; District of South Dakota: Rosebud Woman Charged With Acquiring Controlled Substances by Fraud and Theft In Connection With Healthcare
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman has been indicted by a federal grand jury for Acquiring Controlled Substances by Fraud and Theft in Connection with Healthcare. Bonnie Melissa Levy, age 38, was indicted on December 10, 2013. She appeared before U.S. Magistrate Judge Mark A. Moreno on December 11, 2013, and pled not guilty to the Indictment.
December 17, 2013; U.S. Department of Justice: Houston Doctor Indicted for Her Alleged Role in $158 Million Medicare Fraud Scheme
A Houston doctor has been arrested on charges related to her alleged participation in a $158 million Medicare fraud scheme involving false claims for mental health treatment. Sharon Iglehart, 56, of Houston, was charged in an indictment, filed in the Southern District of Texas and unsealed today, with one count of conspiracy to commit health care fraud and four counts of health care fraud. If convicted, Iglehart faces a maximum penalty of 10 years in prison on each count. Iglehart was arrested on Dec. 16, 2013, and made her initial appearance in federal court in Houston today.
December 17, 2013; U.S. Attorney; District of New Jersey: Morris County, N.J., Doctor Admits Taking Cash Kickbacks for Patient Referrals
Newark, N.J. - A Morris County, N.J., doctor practicing internal medicine admitted today to taking cash kickbacks for making referrals to a diagnostic testing lab in Orange, N.J., U.S. Attorney Paul J. Fishman announced. Mahesh Patel, 64, of Florham Park, N.J., a board-certified physician, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark to an information charging him with soliciting and receiving more than $6,000 in illegal cash kickbacks for patient referrals in violation of the federal health care anti-kickback statute.
December 17, 2013; U.S. Attorney; District of New Jersey: New Jersey Ophthalmologist Admits Lying To Federal Agents during Fraud Investigation about Reuse of Lucentis Vials
An ophthalmologist with a medical practice in Englewood, N.J., admitted today to lying to federal agents during a health care fraud investigation into the reuse of single-use vials of prescription Lucentis medication for multiple patients, U.S. Attorney Paul J. Fishman announced. Bernard J. Fowler, 68, of Mahwah, N.J., pleaded guilty to an information charging him with making false statements to federal agents with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). He entered his plea before U.S. District Judge Susan D. Wigenton in Newark federal court.
December 13, 2013; U.S. Attorney; Western District of Kentucky: Owner Of Bluegrass Women's Healthcare In Elizabethtown Ordered To Pay Victims $50,663.31 For Misbranding
LOUISVILLE, Ky. - The owner of Bluegrass Women's Healthcare, located in Elizabethtown, Kentucky was sentenced yesterday, in United States District Court, by United States District Judge John G. Heyburn, to one year probation for a single charge of misbranding, and the corporation, Bluegrass Women's Healthcare, was sentenced and ordered to pay a fine of $25,000 announced David J. Hale, United States Attorney for the Western District of Kentucky. The defendant owner, Canh Jeff Vo was also ordered to pay restitution in the amount of $50,663.31 to victims.
December 13, 2013; U.S. Attorney; Southern District of New York: Manhattan U.S. Attorney, FBI, and IRS Announce Charges against Pharmacy Owner In Multimillion-Dollar Medicare/Medicaid Fraud Scheme
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation ("FBI"), and Toni Weirauch, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation ("IRS-CI"), announced that Purna Chandra Aramalla was arrested yesterday for engaging in a scheme to defraud Medicaid and Medicare through the sale of illegally diverted prescription drugs. ARAMALLA was also charged with a related money laundering offense. ARAMALLA was arrested yesterday morning and was presented in Manhattan federal court before U.S. Magistrate Judge Debra Freeman yesterday afternoon. A preliminary hearing is scheduled for January 13, 2014.
December 12, 2013; U.S. Attorney; Central District of California: Doctor Pleads Guilty to Tax Offense Related to Health Care Fraud Scheme involving People Recruited from 'Skid Row'
Los Angeles - In the first case filed in relation to the second major investigation into the illegal recruitment of "Skid Row" denizens for unnecessary medical procedures, a La Mirada doctor pleaded guilty this afternoon to federal tax charges and admitted participating in a large-scale scheme to defraud Medicare and Medi-Cal.
December 12, 2013; U.S. Department of Justice: Two Patient Recruiters for Miami Home Health Companies Sentenced for Roles in $48 Million Health Care Fraud Scheme
WASHINGTON - Two patient recruiters for Miami health care companies were sentenced today for their participation in a $48 million home health Medicare fraud scheme.
December 12, 2013; U.S. Attorney; Southern District of Florida: Loxahatchee Pair Plead Guilty to Government Benefit Fraud Charges
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Lester Fernandez, Special Agent in Charge, U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff's Office, Thomas Caul, Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General, Atlanta Field Division, Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture (USDA), Office of Inspector General, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, announce that defendants Gloria Nereida Valle-Clas, 48, and Alexander Gonzalez, 40, of Loxahatchee, Florida, pled guilty today in West Palm Beach before U.S. Magistrate Judge James M. Hopkins.
December 12, 2013; U.S. Department of Justice: Therapist Pleads Guilty in Miami for His Role in $63 Million Health Care Fraud Scheme
A former licensed mental health counselor at the defunct health provider Health Care Solutions Network Inc. (HCSN) pleaded guilty today in Fort Lauderdale, Fla., for his role in a $63 million health care fraud scheme.
December 10, 2013; U.S. Attorney; District of South Dakota: Wanblee Man Pleads Not Guilty To Making False Statements to Obtain Controlled Substances
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, man has been indicted by a federal grand jury for False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substances by Fraud.
December 9, 2013; U.S. Department of Justice: Government Intervenes in False Claims Lawsuit against IPC the Hospitalist Co. Inc. Alleging Overbilling of Physician Services
The government has intervened in a lawsuit against IPC The Hospitalist Co. Inc., and its subsidiaries (IPC), alleging that IPC submitted false claims to federal health care programs, the Justice Department announced today. IPC, based in North Hollywood, Calif., is one of the largest providers of hospitalist services in the United States, employing physicians and other health care providers who work in more than 1,300 facilities in 28 states. Hospitalists are physicians who work only in hospitals and other long-term care facilities, overseeing and coordinating inpatient care from admission to discharge.
December 9, 2013; U.S. Attorney; Western District of New York: Former Doctor Sentenced To Home Detention for Health Care Fraud Convictions
BUFFALO, N.Y.--- U.S. Attorney William J. Hochul, Jr. announced that former medical doctor Daniel C. Gillick, 63, of Youngstown, N.Y., who previously pleaded guilty to obtaining controlled substances by fraud and health care fraud, was sentenced today to 6 months of home detention and 2 years' probation. As a part of the plea, the defendant surrendered his medical license.
December 5, 2013; U.S. Attorney; Western District of Texas: Owner of DTS Medical Supply Company in Devine, TX, And Two Employees Charged In Connection With $3.5 Million Health Care Fraud Scheme
A federal grand jury has indicted 52-year-old DTS Medical Supply Company owner Daniel Thomason Smith and two employees, in connection with an estimated $3.5 million Health Care Fraud scheme announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez and Texas Attorney General Greg Abbott.
December 5, 2013; U.S. Attorney; Western District of New York: Man Pleads Guilty To Non Payment of Child Support Obligation
Buffalo, N.Y. - U.S. Attorney William J. Hochul, Jr., announced today that Jonathan Dale, 61, formerly of Clarence, N.Y., pleaded guilty to failure to pay child support before Magistrate Judge H. Kenneth Schroeder. The charge carries a maximum sentence of six months in prison, a $5,000 fine, or both.
December 5, 2013; U.S. Department of Justice: 20 Detroit-area Residents Charged in Medicare Fraud Strike Force Takedown for Approximately $34 Million in False Billing
Twenty Detroit-area residents have been charged for their roles in physician home visit, home health care, chiropractic and psychotherapy schemes to submit more than $34 million in false billing to Medicare. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Paul M. Abbate of the FBI's Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General Chicago Regional Office made the announcement.
December 5, 2013; U.S. Attorney; District of New Jersey: New Jersey Gastroenterologist Admits Taking Cash Kickbacks for Patient Referrals
NEWARK, N.J. - A physician practicing gastroenterology and internal medicine in West Orange, N.J., pleaded guilty today to receiving cash kickbacks for diagnostic testing referrals, becoming the 13th doctor and 14th defendant to be convicted in connection with the government's investigation of illegal payments made by an Orange, N.J., diagnostic testing facility, U.S. Attorney Paul J. Fishman announced. John Green, M.D., 60, of Basking Ridge, N.J., pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with soliciting and receiving more than $14,000 in illegal cash kickbacks for patient referrals in violation of the federal health care anti-kickback statute.
December 5, 2013; U.S. Attorney; Southern District of New York: Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Health Care Fraud Charges Against Current and Former Russian Diplomats and Their Spouses
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation, today announced charges against 49 defendants for participating in a widespread fraud scheme from 2004 to August 2013 to illegally obtain nearly half a million dollars in Medicaid benefits. Each of the defendants charged in the Complaint unsealed today is a current or former Russian diplomat or the spouse of a diplomat employed at either the Russian Mission to the United Nations, the Russian Federation Consulate General in New York, or the Trade Representation of the Russian Federation in the USA, New York Office. The Complaint alleges that each of the defendants and their unnamed co-conspirators participated in a widespread scheme to illegally obtain Medicaid benefits for prenatal care and related costs by, among other things, falsely underreporting their income or falsely claiming that their child was a citizen of the United States.
December 5, 2013; U.S. Attorney; Northern District of Ohio: Former Pharmacist Ordered to Pay More than $2 Million
Coshocton, Ohio -- Ohio Attorney General Mike DeWine and U.S. Attorney for the Northern District of Ohio Steven Dettelbach announced today that a former Coshocton pharmacist has been ordered to pay more than $2 million in funds she obtained through fraudulent billing practices.
December 4, 2013; U.S. Department of Justice: Miami Home Health Company Owner and Recruiter Sentenced for Role in $48 Million Health Care Fraud Scheme
A patient recruiter of a Miami health care company was sentenced to serve 108 months in prison today for his participation in a $48 million home health Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General Office of Investigations Miami Office made the announcement.
December 4, 2013; U.S. Attorney; Western District of Kentucky: Louisville Physician Charged With Multiple Counts of Unlawful Distribution of Controlled Substances, Healthcare Fraud and Money Laundering
Louisville, Ky. - A Louisville physician was charged today, by a federal grand jury, with multiple counts of unlawful distribution of controlled substances, healthcare fraud and money laundering announced David J. Hale, United States Attorney for the Western District of Kentucky. According to the fourteen count indictment, George Kudmani, age 68, operated an obstetrician/gynecological medical practice located at 9702 Stonestreet Road, in Louisville, Kentucky. The practice did not employ any other individual with medical training. On average, Kudmani would see more than 35 patients per day. A typical first-time patient would pay $75 for a gynecological exam, and each visit thereafter, the patient would typically pay $35 in cash and receive a Schedule II-V controlled substance prescription without a physical examination.
December 4, 2013; U.S. Attorney; Northern District of California: Three Defendants Convicted In $3.2M Medicare Fraud Scheme
San Francisco - Patrick Adebowale Sogbein, his wife, Adebola Adefunke Adebimpe, and Eduardo Abad were convicted today by a federal jury, following a 13-day trial, of Conspiracy to Commit Health Care Fraud and Health Care Fraud, announced United States Attorney Melinda Haag; David Johnson, Special Agent in Charge of the Federal Bureau of Investigation in San Francisco; and Glenn R. Ferry, the Special Agent in Charge for the Los Angeles Regional Office of Inspector General of the Department of Health and Human Services. Sogbein and Abad were also convicted of Conspiracy to Pay and Receive Kickbacks involving the Medicare Program.
December 3, 2013; U.S. Department of Justice: Three Patient Recruiters for Miami Home Health Company Plead Guilty for Roles in $48 Million Fraud Scheme
Three patient recruiters for a Miami health care company pleaded guilty today for their participation in a $48 million home health Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office, and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General Office of Investigations Miami Office made the announcement.
December 2, 2013; U.S. Attorney; Southern District of Texas: Lymphedema & Wound Care Institute Settle False Claims Act Allegations
HOUSTON - Susan Morgan, Erin Hamilton and Ryan Chuston, doing business as the Lymphedema & Wound Care Institute Inc., have paid the United States $4.3 million to settle claims they violated the Federal False Claims Act by submitting claims to the Medicare Program for physical therapy treatments provided by unqualified therapists, announced United States Attorney Kenneth Magidson. Additionally, under the terms of the settlement agreement, Morgan will be barred from participating in federal health benefit programs for a period of 10 years.
December 2, 2013; U.S. Attorney; District of New Hampshire: Former Employee of Exeter Hospital Sentenced to 39 Years in Connection with Widespread Hepatitis C Outbreak
CONCORD, NH-David M. Kwiatkowski, 34, a former employee of Exeter Hospital, was sentenced today to serve 39 years in prison for his conduct in causing a widespread Hepatitis C outbreak in numerous states, announced John P. Kacavas, U.S. Attorney for the District of New Hampshire, and Barry R. Grissom, U.S. Attorney for the District of Kansas.
December 2, 2013; U.S. Department of Justice: CVS' Caremark Will Pay $4.25 Million for Allegedly Denying Medicaid Claims for Reimbursement of Prescription Drug Costs
Caremark LLC, a pharmacy benefit management company (PBM), will pay the government and five states a total of $4.25 million to settle allegations that it knowingly failed to reimburse Medicaid for prescription drug costs paid on behalf of Medicaid beneficiaries, who also were eligible for drug benefits under Caremark-administered private health plans, the Justice Department announced today. Caremark is operated by CVS Caremark Corp., one of the largest PBMs and retail pharmacies in the country. A PBM administers and manages the drug benefits for clients who offer drug benefits under a health insurance plan.
December 2, 2013; U.S. Department of Justice: Health Care Clinic Owners Sentenced for Role in $8 Million Health Care Fraud Scheme
Two health care clinic owners were sentenced today in connection with an $8 million health care fraud scheme involving the now-defunct home health care company Flores Home Health Care Inc. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office, and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General Office of Investigations Miami Office made the announcement.

November 2013

November 26, 2013; U.S. Attorney; Middle District of Florida: Former Health Management Associates Executive Indicted for Obstruction-Related Offense
FORT MYERS, FL-Acting United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Joshua S. Putter (48, Needham, Massachusetts) with destruction, alteration, or falsification of records in federal investigations. If convicted, he faces a maximum penalty of 20 years in federal prison.
November 25, 2013; U.S. Attorney; Middle District of Louisiana: $1.2 Million Settlement Of Civil Health Care Fraud Case
Baton Rouge, LA - Acting United States Attorney Walt Green and Louisiana State Attorney General James "Buddy" Caldwell announced today that the United States and the State of Louisiana have reached a civil settlement with defendants, Sabine Optical Laboratories, Inc. d/b/a The Vision Center ("Sabine"), Dr. Carl Carnaggio, Sr., Dr. Carl Carnaggio, Jr. and Lori Carnaggio (collectively "Sabine Defendants") and Cypress Optical Laboratory, LLC, a Sabine-affiliated company. According to the terms of the settlement, Sabine paid $1,200,000 to the United States and the State of Louisiana, $819,960 of which constitutes the federal share and $380,040 of which constitutes the state share of costs reimbursed to the Medicaid program, which is a Federal-State matching entitlement program providing medical assistance for certain individuals and families with low incomes and resources.
November 22, 2013; U.S. Attorney; Western District of North Carolina: Charlotte Jury Finds Former Owner of Mental Health Clinic Guilty Of Defrauding Medicaid Using Stolen Identities of Children and Clinicians
CHARLOTTE, N.C. - A federal jury sitting in Charlotte returned a guilty verdict today for a Charlotte man accused of conspiring to defraud Medicaid of at least $700,000, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Calvin Cantrell Estrich, 32, of Charlotte, was convicted following a four-day trial before U.S. District Judge Max O. Cogburn, Jr. Estrich was also found guilty of committing health care fraud, making false statement in connection with a health care program, stealing the identities of children and clinicians to commit the fraud, money laundering and making false statements to investigators.
November 25, 2013; U.S. Attorney; Southern District of Texas: Former Durable Medical Equipment Company Owner Sentenced for Defrauding Medicare
HOUSTON - Emeka Daniel Orji, 43, of Richmond, has been sentenced to federal prison and ordered to pay restitution following his conviction for conspiracy to commit and committing health care fraud, announced United States Attorney Kenneth Magidson. Orji pleaded guilty July 29, 2013.
November 22, 2013; U.S. Attorney; Middle District of Tennessee: Prominent Nashville, Tennessee Pediatrician and Former Owner of Centennial Pediatrics Pleads Guilty To Health Care Fraud
NASHVILLE, Tenn. - Dr. Edward "Eddie" Hamilton, 54,of Nashville, Tenn. and former owner of the medical practice of Centennial Pediatrics, P.C., pleaded guilty yesterday in U.S. District Court to a misdemeanor count of health care fraud, announced David Rivera, United States Attorney for the Middle District of Tennessee. The plea comes as part of a global resolution of criminal and civil violations of the False Claims Act.
November 21, 2013; U.S. Attorney; Western District of Tennessee: Arkansas Woman Pleads Guilty To Million-Dollar Health Care Fraud, Money Laundering Scheme
Jackson, TN -Rebecca Christain, 57, of Mountain Home, AR, pleaded guilty on November 20, 2013, to a two-count federal information charging her with one count of health care fraud and one count of money laundering in relation to a Medicare fraud scheme, announced U.S. Attorney Edward L. Stanton III.
November 21, 2013; U.S. Department of Justice: Durable Medical Equipment Clinic Owner Pleads Guilty in Miami for Role in $11 Million Health Care Fraud Scheme
The former owner of a defunct durable medical equipment clinic based in Miami pleaded guilty today for his role in an $11 million Medicare fraud scheme. Francisco Enrique Chavez, 36, of Miami, pleaded guilty before U.S. District Judge Patricia A. Seitz in the Southern District of Florida to one count of health care fraud. He faces a maximum penalty of 10 years in prison when he is sentenced on Feb. 11, 2014.
November 21, 2013; U.S. Department of Justice: Vantage Oncology LLC to Pay More Than $2.08 Million for False Medicare Claims for Radiation Oncology Services
Vantage Oncology LLC (Vantage) has agreed to pay the government more than $2.08 million to settle allegations that it submitted false claims to Medicare for radiation oncology services performed at its Illinois centers from 2007 through June 2012, the Justice Department announced today. Vantage owns and manages radiation oncology centers in multiple states, including two centers in Spring Valley and Streator, Ill.
November 21, 2013; U.S. Attorney; District of New Jersey: Two New York Doctors Admit Taking Bribes in Test-Referrals Scheme with New Jersey Clinical Lab
Newark, N.J. - Two doctors with a practice in New York admitted today to accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC, of Parsippany, N.J., its president and numerous associates, New Jersey U.S. Attorney Paul J. Fishman announced. Richard Goldberg, 60, of Weston, Conn., and Gary Leeds, 60, of Greenwich, Conn., each pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court to one count of accepting bribes.
November 20, 2013; U.S. Attorney; Southern District of Georgia: Federal Jury Convicts Brunswick, Georgia Woman in $4 Million Medicaid Fraud Scheme
Brunswick, GA - Schella Logan Hope, 47, of Brunswick, Georgia, was convicted earlier this month by a federal jury of various health care fraud, aggravated identity theft, and money laundering offenses for her role in a $4 million scheme upon the Georgia Medicaid program. Chief United States District Court Judge Lisa Godbey Wood presided over HOPE's 5-day jury trial.
November 20, 2013; U.S. Attorney; District of New Jersey: Prominent Tri-State Cardiologist Sentenced To 78 Months in Prison for Record, $19 Million Billing Fraud Scheme, Exposing Patients to Unnecessary Medical Treatment
NEWARK, N.J. - A well-known cardiologist and the founder, CEO and sole owner of two large medical services companies in New Jersey and New York was sentenced today to 78 months in prison and ordered to pay $19 million in restitution for conspiring in a multimillion-dollar health care fraud scheme that subjected thousands of patients to unnecessary tests and potentially life-threatening, unneeded treatment, as well as treatment by unlicensed or untrained personnel. The sentence was announced today by New Jersey U.S. Attorney Paul J. Fishman.
November 19, 2013; U.S. Department of Justice: Nursing Home Operator to Pay $48 Million to Resolve Allegations Those Six California Facilities Billed for Unnecessary Therapy
The Ensign Group Inc., a skilled nursing provider based in Mission Viejo, Calif., that operates nursing homes across the western U.S. has agreed to pay $48 million to resolve allegations that it knowingly submitted to Medicare false claims for medically unnecessary rehabilitation therapy services, the Justice Department announced today. Six of Ensign's skilled nursing facilities in California allegedly submitted the false claims: Atlantic Memorial Healthcare Center, located in Long Beach; Panorama Gardens, located in Panorama City; The Orchard Post-Acute Care (a.k.a. Royal Court), located in Whittier; Sea Cliff Healthcare Center, located in Huntington Beach; Southland, located in Norwalk; and Victoria Care Center, located in Ventura.
November 18, 2013; U.S. Attorney; Central District of California: Orange County Ambulance Company Pays More Than $3 Million to Settle Allegations That it Overbilled Federal Health Care Programs
Santa Ana, CA-An Orange County-based ambulance company has paid the United States more than $3 million to settle a lawsuit alleging it received overpayments from the Medicare program and other federal health care programs for transporting patients who were not eligible for ambulance transports, United States Attorney André Birotte, Jr. announced today.
November 18, 2013; U.S. Attorney; Western District of Texas: Baptist Health Systems Settles Federal False Claims Act Civil Lawsuit
Baptist Health Systems, one of the largest health care providers in San Antonio, has paid $3,675,000 to the United States Department of Justice to settle allegations that it violated the federal False Claims Act by filing false claims for reimbursement under the Medicare program United States Attorney Robert Pitman announced today.
November 15, 2013; U.S. Attorney; Western District of Michigan: Staff Pharmacists at Kentwood Pharmacy Sentenced to Stiff Fines on Charges of Misbranding Drugs and Face Exclusion and Debarment from Federal Programs
Grand Rapids, Michigan - James D. Orr, 76, and Eugene A. Biegert, 69, of Grand Rapids, Michigan, and Thomas N. VerHage, 68, of Kentwood, Michigan were sentenced by U.S. District Judge Janet T. Neff to substantial fines following their guilty pleas to charges of the felony misbranding of drugs while working as staff pharmacists at Kentwood Pharmacy. The judge imposed monetary penalties exceeding the fine range recommended by federal sentencing guidelines: a fine of $30,000.00 for VerHage and Orr and $15,000.00 for Biegert.
November 15, 2013; U.S. Attorney; Eastern District of North Carolina: Ambulance Company Owner and Son Plead Guilty to Conspiracy to Commit Health Care and Wire Fraud
Greenville - United States Attorney Thomas G. Walker announced that today before United States District Judge Terrence W. Boyle, Phyllis Stallings Harrell and Paul Lynn Trueblood, both of Belvidere, North Carolina, pleaded guilty to count one of the second superseding indictment that charged them with conspiracy to commit health care fraud and wire fraud, in violation of Title 18, United States Code, Section 1349.
November 14, 2013; U.S. Attorney; Middle District of Louisiana: New Orleans Doctor Sentenced For Involvement in Health Care Fraud Scheme
Baton Rouge, LA - Acting United States Attorney Walt Green announced today that Dr. Anthony Stephen Jase, 44, of New Orleans, Louisiana, was sentenced to 15 months in prison and ordered to pay $360,293 in restitution for his convictions on health care fraud.
November 13, 2013; U.S. Attorney; Western District of New York: Jamaican National Indicted For Fraudulently Receiving Medicaid Benefits
Buffalo, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has returned a four-count indictment charging Georgia Bowen, a/k/a Georgia Bennett, 38, of Lackawanna, N.Y., with health care fraud and aggravated identity theft. The charges carry a maximum sentence of 10 years in prison, a $250,000 fine or both.
November 12, 2013; U.S. Department of Justice: Brooklyn Clinic Owner Sentenced for Role in $77 Million Medicare Fraud Scheme
The owner of a Brooklyn medical clinic was sentenced today to serve 15 years in prison for her leading role in a $77 million Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney for the Eastern District of New York Loretta E. Lynch, Assistant Director in Charge George Venizelos of the FBI's New York Field Office, and Special Agent in Charge Thomas O'Donnell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
November 8, 2013; U.S. Attorney; Southern District of Illinois: Former Washington Park Trustee and St. Clair County Probation Officer Pleads Guilty To Health Care Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on November 8, 2013, Darron A. Suggs, 39, of Washington Park, Illinois, pled guilty to a one-count indictment charging that he engaged in a scheme to commit health care fraud. Sentencing has been set for March 14, 2014, in United States District Court in East St. Louis, Illinois. At that time, Suggs will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
November 8, 2013; U.S. Attorney; Northern District of Illinois: Peru, Ill., Physician Indicted on Federal Charges for Allegedly Illegally Dispensing Prescription Medications
CHICAGO - A LaSalle County physician was taken into federal custody this morning after being indicted on federal charges alleging that he illegally dispensed prescription narcotics to three patients in 2012 and 2013. The defendant, Dr. Constantino Perales, was charged with 17 counts of illegally dispensing Oxycodone and/or Alprazolam in an indictment returned by a federal grand jury on Wednesday and made public today.
November 8, 2013; U.S. Attorney; District of South Dakota: California Woman Indicted For Failure to Pay Child Support
United States Attorney Brendan V. Johnson announced that an Anaheim, California, woman has been indicted by a federal grand jury for Failure to Pay Child Support. Cheryl K. Ernesti, a/k/a Cheryl K. Houska and Cheryl K. Pangan, age 42, was indicted by a federal grand jury on April 2, 2013, for failing to pay over $19,853 in past due child support. She appeared before U.S. Magistrate Judge John E. Simko on November 6, 2013, and pled not guilty to the Indictment.
November 7, 2013; U.S. Attorney; Eastern District of Texas: Beaumont Orthodontist Sentenced for Health Care Fraud Violations
BEAUMONT, Texas - A 70-year-old Beaumont orthodontist has been sentenced to federal prison for health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. Terrence Ewing Syler pleaded guilty on June 18, 2013, to health care fraud and was sentenced to 22 months in federal prison today by U.S. District Judge Thad Heartfield. Syler was also ordered to submit to forfeiture of $829,000 and pay a $6,000 fine
November 7, 2013; U.S. Attorney; Eastern District of California: Glendale Medicare Biller Sentenced to 18 Months in Prison for Role in Sacramento Area Healthcare Fraud
SACRAMENTO, Calif. - Shushanik Martirosyan, 47, of Glendale, Calif., was sentenced today by Chief United States District Judge Morrison C. England Jr. to 18 months in prison for conspiring to commit health care fraud. She pleaded guilty on March 31, 2011, and testified at the May 2011 trial of three doctors involved in the scam. Judge England ordered Martirosyan to pay $1,558,620 in restitution.
November 7, 2013; U.S. Attorney; District of Vermont: Bellows Falls Man Sentenced For Failure to Pay Child Support
The Office of the United States Attorney for the District of Vermont stated today that Lee Godden, 36, of Bellows Falls, Vermont, was sentenced on October 2, 2013, in United States District Court in Brattleboro, Vermont, to serve two-months imprisonment and a one-year term of supervised release following his guilty plea to two counts of failure to pay child support. Senior United States District Judge J. Garvan Murtha also ordered the defendant to pay restitution to his mothers of his two children in the amount of $50,771.00 and $50,131.13, for a total of $100,902.13.
November 7, 2013; U.S. Department of Justice: Detroit-Area Home Health Care Agency Owner Sentenced for Role in $2.2 Million
Medicare Fraud Scheme
The owner of a Detroit-area home health care agency was sentenced today to serve 65 months in prison for her leading role in a $2.2 million Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI's Detroit Field Office, and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations' Detroit Office made the announcement.
November 7, 2013; U.S. Department of Justice: Home Health Agency Owner Sentenced for Role in $13.8 Million Medicare Fraud Scheme
Detroit-area resident Javed Rehman was sentenced to serve 60 months in prison today for his role in a $13.8 million Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI's Detroit Field Office, and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations' Detroit Office made the announcement.
November 7, 2013; U.S. Attorney; Southern District of New York: Former Chief Executive Officer of Hospital for Special Surgery Sentenced In Manhattan Federal Court to 18 Months in Prison for Participating In Fraudulent Kickback Scheme
Preet Bharara, the United States Attorney for the Southern District of New York, announced that John R. Reynolds, the former Chief Executive Officer ("CEO") of the Hospital for Special Surgery (the "Hospital"), was sentenced today in Manhattan federal court to 18 months in prison for participating in a fraudulent scheme in which he was paid nearly $300,000 in undisclosed kickbacks from a subordinate Hospital employee. REYNOLDS pled guilty in July 2013 to one count of wire fraud and one count of making false statements to a law enforcement agent. He was sentenced by U.S. District Judge Harold Baer, Jr.
November 7, 2013; U.S. Attorney; Southern District of Texas: Three Handed Sentences for Lengthy Health Care Fraud Conspiracy
McALLEN, Texas - Two former clinic staffers and a physician assistant's wife have all been ordered to prison for conspiracy to defraud Medicare and the Texas Medicaid program in the operation of the Mission Clinic and La Hacienda Family Clinic, announced United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott.
November 6, 2013; U.S. Attorney; Eastern District of Missouri: Local Doctor Pleads Guilty To Making False Statement to Agent
St. Louis, MO - Dr. Erick Falconer pled guilty to making a false statement to federal agents regarding his purchases of misbranded Botox® from a foreign unlicensed drug wholesaler, some of which had counterfeit exterior packaging.
November 6, 2013; U.S. Attorney; Southern District of New York: Manhattan U.S. Attorney Announces $5 Million Settlement of Civil Forfeiture Claim against Dutchess County Medical Practice
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed, and simultaneously settled, a civil forfeiture lawsuit against the assets of Mid Hudson Medical Group, P.C. The Government's action alleges that MHMG received millions of dollars in proceeds from two schemes to defraud Medicare, the New York State Insurance Fund, and private health insurance providers. The stipulation and order of settlement requires MHMG to forfeit $5 million to the United States.
November 6, 2013; U.S. Department of Justice: Patient Broker of South Florida Psychiatric Hospital Sentenced for Role in $67 Million Health Care Fraud Scheme
A patient broker of a South Florida psychiatric hospital was sentenced today to serve 24 months in prison followed by three years of supervised release for her participation in a $67 million Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office, and Special Agent in Charge Christopher Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations' Miami Office made the announcement.
November 6, 2013; U.S. Department of Justice: Former Mental-Health Clinic Therapist Sentenced for Role in $55 Million Medicare Fraud Scheme
A former therapist for Biscayne Milieu, a Miami-based mental-health clinic, was sentenced today to serve 120 months in prison for his participation in a $55 million Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services' Office of Inspector General (HHS-OIG) Miami office made the announcement.
November 6, 2013; U.S. Attorney; Eastern District of Virginia: Health Care Service Provider and Others Indicted For Medicaid Fraud
NORFOLK, Va. - W. Wayne Perry, Jr., 54, of Suffolk, Va., was indicted by a federal grand jury today on one count of health care fraud, twenty-four counts of false statements relating to health care matters, one count of alteration of records and four counts of aggravated identity theft. Angela Perry, 51, of Suffolk, Va., was indicted on the same charges. Allison Hunter-Evans, 46, of North Chesterfield, Va., was indicted on one count of alteration of records.
November 6, 2013; U.S. Attorney; District of South Dakota: Four Individuals Indicted For Theft of Tribal Funds
United States Attorney Brendan V. Johnson announced that four individuals were indicted by a federal grand jury on October 11, 2013, for stealing funds from the Oglala Sioux Tribe. Samone Darla Milk, a/k/a Samone Darla Long Pumpkin, age 32, of Martin, South Dakota, was indicted for Conspiracy to Commit Theft Concerning Programs Receiving Federal Funds and two counts of Theft Concerning Programs Receiving Federal Funds.
November 5, 2013; U.S. Department of Justice: Orlando, Fla., Area Hospice to Pay $3 Million to Resolve Allegations That It Billed Medicare for Patients Not Terminally Ill
Hospice of the Comforter Inc. (HOTCI) has agreed to pay $3 million to resolve allegations that it violated the False Claims Act by submitting false claims to the Medicare program for hospice services provided to patients who were not eligible for the Medicare hospice benefit, the Justice Department announced today. HOTCI is headquartered in Altamonte Springs, Fla., and provides hospice services to patients residing in Seminole, Osceola and Orange counties in Florida.
November 4, 2013; U.S. Attorney; District of Kansas: Pharmacist Sentenced For Distributing Misbranded Drug for Kidney Dialysis Patients
Topeka, KAN. - A pharmacist has been sentenced to 48 months in federal prison for substituting a cheaper drug imported from China for the iron sucrose that the Federal Drug Administration has approved for kidney dialysis patients, U.S. Attorney Barry Grissom said today. He also was ordered to pay restitution of $848,504 and a $25,000 criminal fine, in addition to forfeiting $425,000 in cash.
November 4, 2013; U.S. Attorney; Northern District of Texas: Woman Convicted at Trial For Role in Nearly $3 Million Health Care Fraud Scheme Involving the Operation of Euless Healthcare Corp. is Sentenced to 72 Months in Federal Prison
DALLAS - Comfort Gates, 48, was sentenced this afternoon, by U.S District Judge David C. Godbey, to 72 months in federal prison and ordered to pay $830,000 in restitution following her conviction at trial in April 2013 on charges stemming from her involvement in the operation of Euless Healthcare Corporation and Medic Healthcare Incorporated. Gates is one six defendants convicted in the conspiracy. Judge Godbey ordered that Gates, a current resident of Houston, surrender to the Bureau of Prisons on January 13, 2014. Today's announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
November 4, 2013; U.S. Department of Justice: Johnson & Johnson to Pay More Than $2.2 Billion to Resolve Criminal and Civil Investigations Allegations Include Off-label Marketing and Kickbacks to Doctors and Pharmacists
WASHINGTON - Global health care giant Johnson & Johnson (J&J) and its subsidiaries will pay more than $2.2 billion to resolve criminal and civil liability arising from allegations relating to the prescription drugs Risperdal, Invega and Natrecor, including promotion for uses not approved as safe and effective by the Food and Drug Administration (FDA) and payment of kickbacks to physicians and to the nation's largest long-term care pharmacy provider. The global resolution is one of the largest health care fraud settlements in U.S. history, including criminal fines and forfeiture totaling $485 million and civil settlements with the federal government and states totaling $1.72 billion.
November 4, 2013; U.S. Attorney; Middle District of Florida: Two Plead Guilty In Connection With Sunshine Pharmacy Health Care Fraud Scheme
Fort Myers, Florida - Acting United States Attorney A. Lee Bentley, III announces that Delmer Holmes Parrish (44) and Patricia Parrish (74), both of Naples, today pleaded guilty to conspiracy to commit health care fraud. Delmer Holmes Parrish, a licensed pharmacist, and Patricia Parrish each face a maximum penalty of ten years in federal prison. In addition, they have agreed to pay restitution to the United States in the amount of $351,358.14. As part of the agreement, Delmer Holmes Parrish has also agreed to voluntarily relinquish his pharmacist license to the State of Florida. A sentencing date has not yet been set.
November 4, 2013; U.S. Attorney; Southern District of Illinois: Ramsey Man Pleads Guilty To Health Care Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 31, 2013, William Dale Sidener, 31, of Ramsey, Illinois, pled guilty to a one-count indictment charging that he engaged in a scheme to commit health care fraud. Sentencing has been set for March 7, 2014, in United States District Court in East St. Louis, Illinois. Sidener will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
November 1, 2013; U.S. Department of Justice: Owner and Marketer of Louisiana Medical Equipment Supply Company Indicted for Roles in $3 Million Medicare Fraud Scheme
The owner of a Louisiana medical equipment supply company and a marketer who worked for the company have been indicted for allegedly engaging in a $3 million Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, Special Agent in Charge Mike Fields of the Dallas Region of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), and Special Agent in Charge Michael Anderson of the FBI's New Orleans Division made the announcement.
November 1, 2013; U.S. Attorney; Southern District of New York: Dutchess County Orthopedic Surgeon Pleads Guilty To Multimillion Dollar Health Care Fraud Scheme
Preet Bharara, the United States Attorney for the Southern District of New York, announced that Dr. Spyros Panos, an orthopedic surgeon, pled guilty today in White Plains federal court before U.S. District Judge Nelson S. Roman to operating a long-running health care fraud scheme in which Panos defrauded Medicare, the New York State Insurance Fund, and numerous private health insurance providers out of over $2.5 million by systematically lying about the nature and scope of the surgical procedures that he performed.

October 2013

October 31, 2013; U.S. Department of Justice: Owner of Texas-based Ambulance Service Convicted of Health Care Fraud
A federal jury in Houston has convicted Gwendolyn Climmons-Johnson, 53, of multiple counts of health care fraud for submitting false and fraudulent claims to Medicare for ambulance services.
October 30, 2013; U.S. Department of Justice: Former Veterans Affairs Psychiatrist Pleads Guilty to Medicare Fraud
Dr. Mikhail L. Presman, a licensed psychiatrist employed by the Department of Veterans Affairs (VA), pleaded guilty today to health care fraud for falsely billing Medicare for home medical treatment to Medicare beneficiaries and agreed to forfeit more than $1.2 million in illegal profits.
October 30, 2013; U.S. Attorney; Western District of Oklahoma: Owner of St. Anthony Hospital Agrees to Pay $475,000 to Settle Civil Claims of Improper Billing for Inpatient Services That Should Have Been Outpatient
Oklahoma City, Oklahoma -- SSM Health Care of Oklahoma, Inc. ("SSM"), who owns and operates St. Anthony Hospital in Oklahoma City, Oklahoma, has agreed to pay $475,000 to the United States to settle civil claims relating to SSM's billing Medicare for inpatient services that should have been billed as outpatient services, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
October 30, 2013; U.S. Attorney; Southern District of New York: Thirteen Members Of Pharmacy Burglary Ring Charged With Stealing And Distributing Millions Of Dollars' Worth Of Prescription-Controlled Substances And Hundreds Of Thousands Of Dollars In Cash
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation ("FBI"), and Raymond W. Kelly, the Commissioner of the New York City Police Department ("NYPD") announced today the unsealing of charges against 13 members of a burglary ring (the "Burglary Ring") alleged to be responsible for more than 125 burglaries and attempted burglaries of pharmacies in Manhattan, the Bronx, Queens, and Brooklyn since 2010.
October 30, 2013; U.S. Attorney; Western District of Oklahoma: Oklahoma City Psychiatrist to Serve 30 Months in Federal Prison and Pay $20,000 Fine for Health
Care Fraud
Oklahoma City, Oklahoma -AMAR NATH BHANDARY, M.D., 53, from Edmond, Oklahoma, was sentenced to serve 30 months in prison by United States District Judge Joe Heaton for health care fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Following his release from prison, Judge Heaton ordered Dr. Bhandary to serve three years supervised release and pay a $20,000 fine.
October 29, 2013; U.S. Attorney; Southern District of Illinois: Centralia Man Pleads Guilty To Health Care Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 29, 2013, Michael E. Mays, 53, of Centralia, IL, pled guilty to a two-count indictment charging that he engaged in a scheme to commit health care fraud and that he made false statements in connection with health care benefits.
October 29, 2013; U.S. Department of Justice: Illinois Man Arrested for Alleged Role in $12 Million Health Care Fraud Scheme
A Rockford, Ill., man was arrested today in connection with an indictment charging three Chicago-area residents for their roles in an alleged $12 million health care fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney Zachary Fardon of the Northern District of Illinois, Acting Special Agent in Charge Robert J. Shields Jr. of the FBI's Chicago Office, and Special Agent in Charge Lamont Pugh III of the Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
October 28, 2013; U.S. Attorney; Eastern District of Virginia: Alleged Hacker Charged in Virginia with Breaching Multiple Government Agency Computers
ALEXANDRIA, VA-Lauri Love, 28, of Stradishall, England, was charged in a criminal complaint unsealed today with conspiracy to access and damage the protected computer networks of multiple U.S. government agencies. Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the Federal Bureau of Investigation's Washington Field Office; John R. Hartman, Deputy Inspector General for Investigations at the U.S. Department of Energy; and Nick DiGiulio, Special Agent in Charge, Office of Inspector General, U.S. Department of Health and Human Services, made the announcement after the unsealing of the criminal complaint in federal court.
October 28, 2013; U.S. Attorney; Northern District of Georgia: Medical Business Owner Pleads Guilty to Medicaid Fraud
ATLANTA - Jennifer C. Alsdorf has pleaded guilty to health care fraud for filing fraudulent claims with the Georgia Medicaid program.
October 29, 2013; U.S. Department of Justice: Owners and Supervisor of Ambulance Transportation Company Plead Guilty In Los Angeles For Role in Ambulance Fraud Scheme
WASHINGTON - The owners and supervisor of Alpha Ambulance Inc. (Alpha), a now-defunct Los Angeles-area ambulance transportation company, have pleaded guilty in connection with an ambulance fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney André Birotte Jr. of the Central District of California; Special Agent in Charge Glenn R. Ferry of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); and Assistant Director in Charge Bill L. Lewis of the FBI's Los Angeles Field Office made the announcement.
October 25, 2013; U.S. Attorney; Northern District of Indiana: Hoosier EMS Employee Pleads Guilty to Health Care Fraud
Kahley Vergon-Mayotte, 28, of Monticello, Indiana, a defendant in the case US v Hoosier EMS Inc. et al., pled guilty before District Judge Joseph Van Bokkelen to the felony offense of conspiracy to commit health care fraud. Sentencing has been set for 1/8/2014. This charge was filed as a result of an investigation by the Federal Bureau of Investigation, the Medicaid Fraud Control Unit and the United States Department of Health and Human Services. This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
October 25, 2013; U.S. Attorney; District of South Dakota: Pierre Man Sentenced for Failure to Pay Child Support
United States Attorney Brendan V. Johnson announced that a Pierre, South Dakota, man charged with Failure to Pay Child Support has pled guilty and was sentenced on October 23, 2013, by U.S. District Judge Roberto A. Lange.
October 24, 2103; U.S. Attorney; District of Connecticut: Guilford Podiatrist Sentenced To 30 Months in Federal Prison for Defrauding Medicare
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that RICHARD SOKOLOFF, 70, of Guilford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 30 months of imprisonment, followed by 18 months of supervised release, for defrauding Medicare.
October 24, 2013; U.S. Attorney; Northern District of Texas: Physician Sentenced to 48 Months in Federal Prison for Role in Health Care Fraud Conspiracy
DALLAS - Dr. Daniel K. Leong, 59, who owned South Dallas Community Medical Center (SDCMC) on Martin Luther King Blvd., in Dallas, was sentenced yesterday by U.S. District Judge Ed Kinkeade to 48 months in federal prison and ordered to pay $865,163 in restitution for his role in a conspiracy to defraud Medicare and Medicaid. Leong must surrender to the Bureau of Prisons on January 15, 2014. Today's announcement was made by U.S. Attorney Sarah R. Salda�a of the Northern District of Texas.
October 24, 2013; U.S. Department of Justice: Two Plead Guilty To Money Laundering Conspiracy in $10.5 Million Medicare Fraud Scheme
WASHINGTON - Two men from Miami have pleaded guilty to laundering millions of dollars obtained through a $10.5 million Medicare fraud scheme using shell companies they controlled.
October 24, 2013; U.S. Department of Justice: Former Owner of Salt Lake City Medical Equipment Supply Company Indicted and Three Company Employees Plead Guilty for Roles in Medicare Fraud Scheme
A former owner of a Salt Lake City medical equipment supply company has been indicted and three former company employees have pleaded guilty for allegedly engaging in a $20 million Medicare fraud scheme.
October 24, 2013; U.S. Attorney; District of New Jersey: Internist Sentenced To Six Months in Prison, Plus Home Confinement, For Taking Cash Kickbacks for Patient Referrals
NEWARK, N.J. - A Somerset County doctor practicing internal medicine at Newark Community Health Center, where she was formerly the clinical director, was sentenced today to six months in prison and five months of home confinement for receiving cash kickbacks for diagnostic testing referrals of her patients, U.S. Attorney Paul J. Fishman announced.
October 23, 2013; U.S. Attorney; District of South Dakota: Colorado Man Indicted For Failure to Pay Child Support
United States Attorney Brendan V. Johnson announced that a Denver, Colorado, man charged with Failure to Pay Child Support was sentenced on October 21, 2013, by U.S. District Court Judge Karen E. Schreier.
October 23, 2013; U.S. Attorney; Southern District of Texas: McAllen Area Ambulance Company Owner and Former Biller Indicted on Multiple Health Care Crimes
McALLEN, Texas - Frank Gonzalez, 30, and Graciela Escamilla, 51, both of Mission, have been charged in a federal indictment for their alleged roles in a scheme to defraud Medicare and Texas Medicaid through fraudulent billings, announced United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott.
October 23, 2013; U.S. Department of Justice: Administrator and Employee of Two Miami Home Health Companies Sentenced for Role in $74 Million Health Care Fraud Scheme
The administrator and employee of two Miami health care companies was sentenced today to serve 60 months in prison for her participation in a $74 million home health Medicare fraud scheme.
October 23, 2013; U.S. Attorney; Northern District of Illinois: Owner, Executives and Physicians at Closed Sacred Heart Hospital Indicted in Alleged Medicare Referral Kickback Conspiracy
CHICAGO - The owner and three other executives of the now-closed Sacred Heart Hospital and four physicians affiliated with the former west side facility were indicted on federal charges alleging that they collectively paid and received hundreds of thousands of dollars in illegal kickbacks in exchange for the referral of hospital patients who were insured by Medicare and Medicaid. Sacred Heart allegedly paid physicians bribes and kickbacks to induce patient referrals and increase the patient census, which, in turn, increased hospital revenue.
October 23, 2013; U.S. Attorney; Eastern District of Pennsylvania: Doctor Sentenced For Kickback Scheme Involving a Philadelphia Hospice
Philadelphia - Eugene Goldman, M.D., 55, of Philadelphia, was sentenced today to 51 months in prison and a $300,000 fine for conspiring to violate the anti-kickback statute and violating the anti-kickback statute in relation to his role in a kickback scheme arising from his employment as the Medical Director at Home Care Hospice Inc. (HCH). U.S. District Court Judge Eduardo Robreno ordered Goldman to immediately begin serving his sentence and also ordered three years of supervised release. Goldman also faces mandatory exclusion from participation in any federal health care program.
October 22, 2013; U.S. Attorney; Western District of Virginia: Dublin Doctor Sentenced on Drug Diversion Charges
ROANOKE, VIRGINIA -- A former medical doctor from Dublin, Va., who in February was convicted on 172 criminal counts of diverting pain medication, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke.
October 22, 2013; U.S. Attorneys; District of Kansas and Eastern District of Louisiana: Mail-Order Diabetic Supply Company and Its Owners Resolve Allegations of Civil and Criminal Fraud
New Orleans, Louisiana - The owners of Kansas-based Global Medical Direct, LLC and Global Medical Inc., Robert Shea and Mark Franz, have agreed to pay $7 million to resolve allegations against them in connection with a scheme to submit false claims to the federal Medicare and Tricare healthcare programs, announced United States Attorney Kenneth Allen Polite, Jr. from the Eastern District of Louisiana along with United States Attorney Barry Grissom, from the District of Kansas. The companies have also agreed to pay to the United States $5 million in proceeds from the sale of all of the companies' assets to settle civil allegations under the False Claims Act. Shea and Franz will also receive twenty-year exclusions from participation in any federal healthcare program as part of the settlement.
October 22, 2013; U.S. Attorney; Western District of New York: Man Who Posed As Wellsville Doctor Sentenced For Health Care Fraud
Buffalo, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Fitzgerald Anthony Hudson, 53, formerly of Western New York, who was convicted of health care fraud for lying about his qualifications to practice medicine, was sentenced to 24 months in prison and three years supervised release by Chief U.S. District Chief Judge William M. Skretny. The defendant was also ordered to pay restitution in the amount of $227,548.35.
October 21, 2013; U.S. Attorney; Southern District of Texas: Sugar Land Physician Sentenced to Federal Prison for Diagnostic Testing Scam
HOUSTON - Donald Gibson II, 57, of Sugar Land, is headed to prison following his conviction of conspiracy to commit health care fraud relating to medically unnecessary diagnostic testing and physical
October 21, 2013; U.S. Attorney; Eastern District of Michigan: Kmart Corporation to Pay U.S. More Than $2.5 Million to Settle False Claims Act Allegations for Partially Filled Prescriptions
Kmart Corporation has agreed to pay the United States and 32 participating states a total of $2,550,000 to settle allegations of false prescription claims by its national pharmacy centers to government health insurance programs, U.S. Attorney Barbara L. McQuade announced today.
October 21, 2013; U.S. Attorney; Western District of Kentucky: Nelson County Drug Store Owner Sentenced To 27 Months for Health Care Fraud and Wire Fraud
LOUISVILLE, Ky. - The owner of Crume Drug Store, located in Nelson County, Kentucky, was sentenced in federal court October 1, 2013, by Chief Judge Joseph H. McKinley, Jr., to 27 months in prison, followed by a two year term of supervised release, and was ordered to pay $242,963.04 in restitution, announced David J. Hale, United States Attorney for the Western District of Kentucky.
October 18, 2013; U.S. Attorney; Northern District of Iowa: Sioux City Community Health Center Pays $200,000 To Resolve False Claims Act Allegations
Siouxland Community Health Center (SCHC), a community health center in Sioux City, has agreed to pay $200,000 to resolve allegations that it violated the Federal False Claims Act and the State of Iowa False Claims Act. The United States and the State of Iowa contend that SCHC improperly submitted claims to Iowa Medicaid for dental outreach services performed on children who were not eligible for the service because they were either recently treated in SCHC's dental clinic or were recently the recipient of SCHC's dental outreach services. As part of the settlement, SCHC did not admit to any wrongdoing or liability.
October 18, 2013; U.S. Attorney; Middle District of Florida: Disbarred Attorney and Her Ex-Husband Sentenced To Prison for Stealing $2.8 Million from Clients in Medicaid Planning Fraud Scheme
Orlando, FL - Chief U.S. District Judge Anne Conway sentenced Ross Littlefield (48, Kissimmee) and Linda Littlefield (41, Kissimmee) yesterday for money laundering. Ross Littlefield was sentenced to four years in federal prison. Linda Littlefield was sentenced to five years in prison. As part of their sentence, the court also entered a restitution order in the amount of $2,888,418.05 and a money judgment in the amount of $155,739.93. The Littlefields pleaded guilty on June 11, 2013.
October 18, 2013; U.S. Department of Justice: Operators of Michigan Adult Day Care Centers Convicted in $3.2 Million Medicare Fraud Scheme
A federal jury in Detroit today convicted the owner and the program coordinator of two Flint, Mich., adult day care centers for their participation in a $3.2 million Medicare fraud scheme.
October 18, 2013; U.S. Attorney; District of Connecticut: Greenwich Doctor Pays $300,000 to Settle Allegations under The False Claims Act
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that JUN XU, M.D., and his professional corporation, Rehabilitation Medicine And Acupuncture Center M.D., LLC., of Riverside, Conn., have entered into a civil settlement with the government in which they will pay $300,000 to resolve allegations that XU violated the False Claims Act.
October 18, 2013; U.S. Attorney; District of Kansas: Indictment: Wichita Chiropractor Defrauded Health Insurers
Wichita, KA - A federal indictment charging a Wichita chiropractor in a $1.3 million health care fraud scheme was unsealed today, U.S. Attorney Barry Grissom. The chiropractor surrendered his license today.
October 17, 2013; U.S. Attorney; Southern District of Illinois: Cahokia Woman Pleads Guilty To Health Care Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 16, 2013, Karashia A. Tabbs, 45, of Cahokia, Illinois, pled guilty to a one-count indictment charging that she engaged in a scheme to commit health care fraud. Sentencing has been set for January 23, 2014, in United States District Court in East St. Louis, Illinois. Tabbs will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
October 17, 2013; U.S. Department of Justice: Boston Scientific and Subsidiaries to pay $30 Million for Guidant's Sale of Defective Heart Devices for Use in Medicare Patients
WASHINGTON - Boston Scientific Corp. and its subsidiaries, Guidant LLC, Guidant Sales LLC and Cardiac Pacemakers Inc. (Guidant), have agreed to pay $30 million to settle allegations that, between 2002 and 2005, Guidant knowingly sold defective heart devices to health care facilities that in turn implanted the devices into Medicare patients, the Justice Department announced today. Boston Scientific acquired Guidant, a medical device manufacturer, in 2006.
October 17, 2013; U.S. Department of Justice: Former Los Angeles-area Pastor Sentenced for Role in $11 Million Medicare Fraud Scheme
A pastor and owner of a Los Angeles-area medical supply company was sentenced today for his role in a power wheelchair fraud scheme that defrauded Medicare out of more than $11 million. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Andr� Birotte Jr. of the Central District of California; Special Agent in Charge Glenn R. Ferry of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); Assistant Director in Charge Bill L. Lewis of the FBI's Los Angeles Field Office; and Special Agent in Charge Joseph Fendrick of the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse made the announcement.
October 17, 2013; U.S. Attorney; Eastern District of Pennsylvania: Hospice Owner Convicted in Multi-Million Dollar Health Care Fraud
PHILADELPHIA - Matthew Kolodesh, a/k/a "Matvei Kolodech", 51, of Churchville, PA, was found guilty of conspiracy to defraud Medicare of more than $14 million through his home hospice business, announced United States Attorney Zane David Memeger. A federal jury delivered its verdict today. Kolodesh's business, Home Care Hospice, Inc. ("HCH"), located at 2801Grant Avenue in Philadelphia, submitted claims totaling approximately $14.3 million for patients that were not eligible for or did not receive the hospice services billed to Medicare.
October 17, 2013; U.S. Attorney; District of Rhode Island: Former R.I Doctor to Pay $1.2 Million for Fraudulent Billings to Medicare and Medicaid
PROVIDENCE, RI - Dr. Hafeez Kahn, a former Rhode Island physician with practices located in Smithfield and East Providence, R.I., will pay the government $1.2 million dollars, twice the amount of money a Settlement Agreement states he fraudulently billed the Medicare and Medicaid programs, it was announced today by the United States Attorney's Office, the Department of Health and Human Services, Office of Inspector General (HHS-OIG), and the Rhode Island Attorney General's Office.
October 17, 2013; U.S. Attorney; Northern District of Texas: Father and Son Convicted on Conspiracy and Health Care Fraud Charges
DALLAS - A federal jury has convicted two local men on conspiracy and health care fraud charges related to their operation of a physician house call company in North Texas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
October 14, 2013; U.S. Attorney; Southern District of Texas: Corpus Christi Doctor Charged With Health Care Fraud in Probe Conducted by State and Federal
Officials
CORPUS CHRISTI - A Corpus Christi-area physician has been charged in a 14-count indictment for a scheme to defraud Medicare and Medicaid through fraudulent billings, according to Texas Attorney General Greg Abbott, U.S. Attorney Kenneth Magidson, the FBI and Health and the Human Services Office of Inspector General.
October 2, 2013; Ohio Attorney General: Former Pharmacist Pleads Guilty to Health Care Fraud, Drug Adulteration Charges
Coshocton, Ohio - Ohio Attorney General Mike DeWine announced today that a former Coshocton pharmacist has pleaded guilty to federal charges alleging that she took between $1 million and $2.5 million from state, federal, and private medical insurance companies through fraudulent billing practices.

September 2013

September 30, 2013; U.S. Department of Justice: Former Owner of Los Angeles Medical Equipment Supply Company Indicted in $4 Million Medicare Fraud Scheme
A former owner of a Los Angeles medical equipment supply company has been indicted for allegedly engaging in a $4 million Medicare fraud scheme. Valery Bogomolny, 41, of Los Angeles, Calif., was indicted in the Central District of California on six counts of health care fraud, each of which carries a maximum penalty of 10 years in prison upon conviction. Bogomolny was taken into custody on Sept. 27, 2013, and the indictment was unsealed following his initial appearance in federal court that afternoon.
September 30, 2013; U.S. Department of Justice: Former Owner of Los Angeles Medical Clinic Management Company Indicted in $13 Million Medicare Fraud Scheme
The former owner of a Los Angeles medical clinic management company has been indicted for his role in a $13 million scheme to defraud Medicare. Mikran "Mike" Meguerian, 36, of Glendale, Calif., was indicted in the Central District of California on one count of conspiracy to commit health care fraud and five counts of health care fraud, each of which carries a maximum penalty of 10 years in prison upon conviction. Meguerian was arrested on Sept. 26, 2013, and the indictment was unsealed following his initial appearance in federal court on Sept. 27, 2013.
September 30, 2013; U.S. Attorney; Southern District of Florida: Miami Physician Indicted in Medicare Fraud Scheme
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that a federal grand jury indicted defendant Christopher Gregory Wayne, 53, of Miami Beach, an osteopathic physician residing in Miami, for health care fraud. Wayne was arrested today and made his initial appearance at 2:00 p.m. before U.S. Magistrate Judge Barry L. Garber.
September 27, 2013; U.S. Attorney; Central District of California: Burbank-based Diagnostic Labs Agrees to Pay $17.5 Million to Resolve Illegal Kickback Allegations
LOS ANGELES - Kan-Di-Ki, LLC, doing business as Diagnostic Laboratories and Radiology (Diagnostic Labs), has agreed to pay $17.5 million to resolve allegations that it submitted false claims to Medicare and Medi-Cal (the State of California's Medicaid program) that were tainted by a kickback scheme.
September 27, 2013; U.S. Department of Justice: Two Miami-area Residents Indicted for Alleged Roles in $190 Million Medicare Fraud Scheme
Two Miami-area residents were indicted in connection with their alleged participation in a $190 million Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the HHS Office of Inspector General Office of Investigations Miami Office made the announcement after the indictment was unsealed.
September 27, 2013; U.S. Attorney; Eastern District of Tennessee: Cleveland Doctor Indicted For Fraud and Money Laundering
CHATTANOOGA, Tenn. - On Sept. 24, 2013, a federal grand jury in Chattanooga returned a 35-count indictment against Dr. Raymond Sean Brown, 44, of McDonald, Tenn., for wire fraud, mail fraud, health care fraud and money laundering. Brown's initial appearance and arraignment is scheduled for 2:00 p.m., Oct. 1, 2013, before U.S. Magistrate Judge Susan K. Lee, U.S. District Court, Chattanooga.
September 27 , 2013; U.S. Attorney; District of Maryland: Career Criminal Lenny Cain Sentenced to Over 13 Years in Prison in Oxycodone Conspiracy
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Lenny Cain, age 36, of Baltimore, Maryland, late yesterday to 160 months in prison followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute oxycodone, and for possession with intent to distribute oxycodone. Cain previously has been convicted of handgun crimes, cocaine distribution, assault, conspiracy and identity fraud.
September 27, 2013; U.S. Attorney; Southern District of Illinois: Collinsville Woman Pleads Guilty to Drug and Health Care Offenses
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 26, 2013, Julia Clymer, 48, of Collinsville, IL, pled guilty to a two-count information charging in count one that she engaged in a scheme to commit health care fraud and in count two that she had obtained controlled substances, including hydrocodone, through fraud and misrepresentation.
September 27, 2013; U.S. Attorney; Southern District of Illinois: East St. Louis Woman Pleads Guilty to Health Care Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 26, 2013, Sherri Goree, 36, of East St. Louis, IL, pled guilty to a one-count indictment charging that she engaged in a scheme to commit health care fraud. At her sentencing, Goree will face up to 10 years in prison, a fine of up to $250,000 and up to 3 years of supervised release.
September 26, 2013; U.S. Department of Justice: Medical Clinic Owners and Patient Recruiters Charged in Miami for Role in $8 Million Health Care Fraud Scheme
Several patient recruiters, including two medical clinic owners, have been arrested in connection with a health care fraud scheme involving defunct home health care company Flores Home Health Care Inc. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office; and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
September 26, 2013; U.S. Department of Justice: Miami Home Health Company Recruiter Pleads Guilty in $48 Million Health Care Fraud Scheme
A patient recruiter of a Miami health care company pleaded guilty today for his participation in a $48 million home health Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office; and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
September 25, 2013; U.S. Attorney; Central District of California: Second Highest Chiropractic Medicare Biller in California Pleads Guilty to Health Care Fraud
LOS ANGELES - A San Fernando Valley chiropractor, who was the second highest Medicare biller in California for chiropractic services, pled guilty yesterday to healthcare fraud in violation of 18 U.S.C. § 1347. Between 2005 and 2012, Houshang Pavehzadeh aka "Danny Paveh" (41), owner of Sylmar Physician Medical Group, Inc. - a storefront chiropractic clinic located in a strip mall - defrauded Medicare by billing for patients he never treated.
September 25, 2013; U.S. Attorney; District of South Dakota: Florida Man Indicted For Failure to Pay Child Support
United States Attorney Brendan V. Johnson announced that a Lakeland, Florida, man has been indicted by a federal grand jury for Failure to Pay Child Support. Jaime L. Warrenburg, age 31, was indicted on March 6, 2013, for failing to pay over $23,273.00 in past due child support. He appeared before U.S. Magistrate Judge John E. Simko on September 23, 2013, and pled not guilty to the Indictment.
September 25, 2013; U.S. Department of Justice: Five Miami Residents Arrested for Alleged Roles in $48 Million Home Health Care Fraud Scheme
Five Miami residents have been charged for their alleged roles in a $48 million home health Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office; and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement after the case was unsealed following the defendants' arrests this morning.
September 25, 2013; U.S. Department of Justice: California Mobile Lab and X-ray Provider, Diagnostic Laboratories and Radiology, to Pay $17.5 Million for Falsely Billing Medicare and Medi-CAL
Kan-Di-Ki LLC, formerly known as Kan-Di-Ki Inc., doing business as Diagnostic Laboratories and Radiology (Diagnostic Labs), will pay $17.5 million to settle allegations that the California-based company violated the federal and California False Claims Acts by paying kickbacks for referral of mobile lab and radiology services subsequently billed to Medicare and Medi-Cal (the state of California's Medicaid program), the Justice Department announced today.
September 25, 2013; U.S. Attorney; Eastern District of Pennsylvania: Superior Ambulance and Owners Charged in Multi-Million Dollar Health Care Fraud Scheme
Philadelphia - An indictment was unsealed today charging Superior EMS Ambulance Company, operating from Huntingdon Valley, PA, its owner, Beana Bell, 31, and operator Vadim Fleshler, 32, both of Philadelphia, with conspiracy to commit health care fraud. According to the indictment, the case involves a scheme in which the defendants submitted more than $4.4 million in fraudulent claims to Medicare. The defendants were also charged with making false statements in connection with health care matters. The indictment was announced by United States Attorney Zane David Memeger, Special Agent-in-Charge Nick DiGiulio with Health and Human Services Office of Inspector General and FBI Special Agent-in-Charge Ed Hanko.
September 24, 2013; U.S. Attorney; Eastern District of Pennsylvania: Doctor Sentenced for Running Pill Mill and Contributing to a Death
Dr. Norman Werther, 73, of Fort Washington, formerly of Horsham, was sentenced Sept. 24 to 25 years in prison for distribution of a controlled substance resulting in death and more than 300 counts stemming from his pill mill operation, according to the U.S. Attorney's Office.
September 24, 2013; U.S. Attorney; District of Kansas: Hays Woman Pleads Guilty To Social Security, Medicaid Fraud
TOPEKA, KAN. - A woman from Hays, Kan., has pleaded guilty to stealing more than $104,000 in government funds from Social Security and Medicaid, U.S. Attorney Barry Grissom said today. Earlyne C. Weigel, 57, Hays, Kan., pleaded guilty to one count of theft of government money.
September 20, 2013; U.S. Attorney; District of Massachusetts: Natick Man and Revere Woman Indicted for $27 Million Home Health Care Fraud Scheme
BOSTON - A Natick man and a Revere woman were charged today for orchestrating a $27 million home health care fraud scheme. Michael Galatis, 62, was indicted on charges of conspiracy to commit health care fraud, 11 counts of health care fraud, and seven counts of money laundering. Janie Troisi, 64, was indicted on charges of conspiracy to commit health care fraud and 11 counts of health care fraud.
September 20, 2013; U.S. Attorney; Southern District of Illinois: Centreville Woman Pleads Guilty To Health Care Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 20, 2013, Valerie W. Johnson, 56, of Centreville, Illinois, pled guilty to a one-count indictment charging that she engaged in a scheme to commit health care fraud. Sentencing has been set for January 9, 2014, in United States District Court in East St. Louis, Illinois. Johnson will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
September 18, 2013; U.S. Attorney; Central District of California: Owner of Home Health Agency that Defrauded Medicare Ordered to Pay $14.9 Million - Three Times the Losses Caused by Scheme
Los Angeles - A federal judge has ordered the owner of a home health agency that operated in the Westlake District of Los Angeles to pay nearly $15 million - or approximately three times the losses suffered by Medicare as a result of the company's illegal practices.
September 18, 2013; U.S. Attorney; Eastern District of Michigan: Oncologist Charged in Superseding Indictment with Medically Unnecessary Cancer Treatments
Scheme
Dr. Farid Fata was charged in a superseding indictment in the Eastern District of Michigan for a health care fraud scheme involving the administration of medically unnecessary drugs, including chemotherapy, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS). The superseding indictment adds eleven additional health care fraud counts, a count of conspiracy to receive and pay kickbacks as well as one count of naturalization fraud. Criminal forfeitures are also sought in the indictment.
September 18, 2013; U.S. Attorney; Middle District of Florida: Ocala Woman Sentenced To Federal Prison for Medicaid Fraud
Tampa, FL - U.S. District Judge James S. Moody, Jr. today sentenced Tiffany McIntyre (34, Ocala) to three years in federal prison for committing health care fraud and aggravated identity theft. As part of her sentence, the court ordered restitution and entered a money judgment in the amount of $128,051.76, the proceeds of the health care fraud. McIntyre pleaded guilty on June 3, 2013.
September 17, 2013; U.S. Attorney; Western District of Oklahoma: Licensed Counselor Pleads Guilty to Health Care Fraud
Oklahoma City, Oklahoma - Leann Richardson, 48, of Edmond, Oklahoma, pled guilty today to health care fraud in connection with a scheme to bill Medicaid for behavioral counseling services never provided, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. The Medicaid Program provides federal and state funds to pay for health care benefits for individuals who cannot afford necessary medical expenses.
September 17, 2013; U.S. Attorney; District of Kansas: Hospital Settles Federal Allegations Of Medicare False Claims
WICHITA, KAN.- Hutchinson Regional Medical Center, Inc., (formerly known as Promise Regional Medical Center - Hutchinson, Inc.) has agreed to pay $853,651 to the United States to settle allegations that the hospital submitted false claims to the Medicare program, U.S. Attorney Barry Grissom announced today. This payment is in addition to amounts the hospital previously refunded to the Medicare program for the claimed services. The payments to the United States total over $1.7 million.
September 17, 2013; Western District of Pennsylvania: Sewickley Woman Charged with Health Care Fraud
PITTSBURGH, Pa. - A Sewickley resident has been indicted by a federal grand jury in Pittsburgh on charges of health care fraud, United States Attorney David J. Hickton announced today. The one count indictment named Mary Monica Wilson-Lefler, 62, as the defendant. According to the indictment, Wilson was a salesperson who offered two durable medical equipment companies in the Pittsburgh area a business arrangement involving special air mattresses, known as powered pressure reducing mattresses or PPRAMS.
September 16, 2013; U.S. Department of Justice: "No Show" Doctor Sentenced to 151 Months in Prison in Connection with $77 Million Medicare Fraud Scheme
Gustave Drivas, M.D., 58, of Staten Island, N.Y., was sentenced to serve 151 months in prison for his role as a "no show" doctor in a $77 million Medicare fraud scheme. The State of New York revoked Dr. Drivas's medical license earlier this year.
September 13, 2013; U.S. Department of Justice: Florida Doctors, Hospitals and Clinics to Pay $3.5 Million to Settle Allegations of Improper Medicare, Medicaid and TRICARE Billing
Radiation oncology providers in Pensacola, Fla., will pay $3.5 million to the government and the state of Florida to resolve allegations that they billed Medicare, Medicaid and TRICARE - the health care program for uniformed service members, retirees and their families worldwide - for radiation oncology services that were not eligible for payment, the Justice Department announced today. The defendants include Gulf Region Radiation Oncology Centers Inc. (GRROC), Gulf Region Radiation Oncology MSO LLC, Sacred Heart Health System Inc., West Florida Medical Center Clinic P.A., Emerald Coast Radiation Oncology Center LLC (ECROC), Dr. Gerald Lowrey and Dr. Rod Krentel.
September 12, 2013; U.S. Attorney; Northern District of Texas: Physician-Owned Hospital Agrees to Resolve its Civil and Criminal Liability for Benefiting from Illegal Kickbacks to Physicians
DALLAS - Forest Park Medical Center, LLC (FPMC), a North Texas physician-owned hospital, paid over $258,000 to settle allegations that it violated the civil False Claims Act, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. The United States contends that a FPMC representative paid illegal kickbacks to area physicians to obtain referrals for Tricare patients, a federally funded health care program, in violation of the federal law, between 2008 and 2012. Based on the same allegations, FPMC entered into a Non-Prosecution Agreement with the United States and agreed to certain conditions, as well as a federally imposed monitor for not more than 24 months. FPMC fully cooperated with the investigation, and by settling civilly and criminally, did not admit any wrong-doing or liability.
September 12, 2013; U.S. Department of Justice: Mastermind of $11 Million Detroit Medicare Fraud Scheme Sentenced to 50 Months in Prison
Muhammad Shahab, the mastermind of an almost $11 million Medicare fraud scheme in Detroit, was sentenced today to 50 months in prison. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI's Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
September 12, 2013; U.S. Attorney; Northern District of Ohio: Salem Pharmacist Charged with Health Care Fraud
A one-count criminal information was filed charging a Salem, Ohio, pharmacist with health care fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. Bruce E. Franken, 52, was excluded in 2003 from participating in all federal health care programs, including Medicare and Medicaid, for a minimum of 10 years as a result of his felony conviction, according to the information.
September 11, 2013; U.S. Attorney; District of New Jersey: Two Doctors and a Salesman Admit Roles in Bribes-For-Test Referrals Scheme Involving New Jersey Clinical Laboratory
NEWARK, N.J. - Two New Jersey doctors and a company salesman pleaded guilty today to their roles in a long-running bribes-for-test referrals scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president, and numerous associates, U.S. Attorney Paul J. Fishman announced.
September 11, 2013; U.S. Attorney; District of Massachusetts: Holyoke Woman Sentenced for Defrauding MassHealth
BOSTON - A Holyoke resident was sentenced in U.S. District Court in Springfield for defrauding MassHealth, by billing for personal care attendant services that were never provided. U.S. District Judge Michael A. Ponsor sentenced Miosottis Gonzalez, 25, to two years of probation and ordered her to pay $64,000 in restitution. In April, Gonzalez pleaded guilty to conspiracy to commit health care fraud.
September 11, 2013; U.S. Attorney; Southern District of Illinois: Alton Woman Pleads Guilty To Health Care Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 11, 2013, Roslyn James, 46, of Alton, IL, pled guilty to a one-count indictment charging that she engaged in a scheme to commit health care fraud. At her sentencing James will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release. Sentencing has been set for January 10, 2014, at 11:00 a.m. in United States District Court in East St. Louis, Illinois.
September 10, 2013; U.S. Attorney; Southern District of Illinois: Cahokia Illinois Woman Pleads Guilty To Health Care Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 10, 2013, Lisa C. Luckett, 50, of Cahokia, IL, pled guilty to a two-count indictment charging that she engaged in a scheme to commit health care fraud. At her sentencing Luckett will face up to 20 years in prison, a fine of up to $500,000, and up to 3 years of supervised release. Sentencing has been set for January 17, 2014, at 9:00 a.m. in United States District Court in East St. Louis, Illinois.
September 10, 2013; U.S. Department of Justice: Medical Supply Company Officer and Southern California Physician Sentenced for $1.5 Million Medicare Fraud
A former officer of Fendih Medical Supply Inc. was sentenced to serve 51 months in prison yesterday in Los Angeles for his role in a fraud scheme that resulted in $1.5 million in fraudulent claims to Medicare. In addition, a physician was sentenced to 27 months in prison for his role in the scheme.
September 10, 2013; U.S. Department of Justice: Three Executives of South Florida Psychiatric Hospital Sentenced in $67 Million Health Care Fraud Scheme
WASHINGTON - Three executives of Hollywood Pavilion LLC (HP), an inpatient psychiatric hospital located in Broward County, Fla., were sentenced today for their roles in a $67 million Medicare fraud scheme.
September 10, 2013; U.S. Attorney; District of Connecticut: Brookfield Podiatrist Sentenced To 41 Months in Federal Prison for Defrauding Medicare
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that Samir Zaky, 38, of Brookfield, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 41 months of imprisonment, followed by one year of supervised release, for defrauding Medicare.
September 6, 2013; U.S. Department of Justice: Brooklyn Resident Pleads Guilty in Connection with $13 Million Kickback and Health Care Fraud Scheme
A Brooklyn, N.Y., resident pleaded guilty today for his role as a patient recruiter in a $13 million kickback and health care fraud scheme, the fourth defendant to plead guilty in the scheme based at the Cropsey Medical Care PLLC clinic in Brooklyn.
September 5, 2013; U.S. Attorney; District of Maine: Portland Man Sentenced to Two Months in Jail for Stealing $46,585 in Welfare Benefits
Portland, Maine: United States Attorney Thomas E. Delahanty II announced today that Dafle Abdullahi Ali, age 46, of Portland, Maine, was sentenced in U.S. District Court in Portland by Judge D. Brock Hornby to 2 months in jail and 2 years of supervised release for making false statements to obtain Medicaid and food stamps benefits and theft of federal housing assistance funds. Ali pled guilty to these charges on May 2, 2013.
September 5, 2013; U.S. Attorney; Middle District of Louisiana: Sentencing In Health Care Fraud Case
BATON ROUGE, LA - Acting United States Attorney Walt Green announced that Sonya Lewis Williams, 47, of Baton Rouge, Louisiana, was sentenced to 37months for her convictions on counts of health care fraud and money laundering.
September 5, 2013; U.S. Attorney; Northern District of Texas: Owner of Home Health Care Company Sentenced to 10 Years in Federal Prison for Role in Health Care Fraud Conspiracy
DALLAS - Cyprian Akamnonu, 64, of Cedar Hill, Texas, was sentenced this morning by U.S. District Judge Sam A. Lindsay to the statutory maximum of 10 years in federal prison and ordered to pay $25,466,779 in restitution, following his guilty plea in October 2012 to one count of conspiracy to commit health care fraud.
September 5, 2013; U.S. Attorney; Eastern District of Louisiana: Siranush Tulumdzhyan and LA Medical Group, Inc. Sentenced For Conspiracy to Commit Health Care Fraud Violations
Siranush Tulumdzhyan, age 28, of Van Nuys, CA, was sentenced today by U.S. District Court Judge Eldon Fallon for her role in a health care fraud scheme, announced U.S. Attorney Dana J. Boente. TULUMDZHYAN was sentenced to 3 years probation with 6 months in a half-way house. Tulumdzhyan was ordered to pay restitution to Medicaid in the total amount of $31,589.
September 5, 2013; U.S. Department of Justice: Owners of Home Health Companies and Patient Recruiter Plead Guilty in Miami for Role in $20 Million Health Care Fraud Scheme
The owners and operators of several Miami home health care agencies and a patient recruiter pleaded guilty today in connection with a health care fraud scheme involving defunct home health care company Trust Care Health Services Inc.
September 5, 2013; U.S. Attorney; Southern District of Texas: Jury Convicts Bryan Woman in Health Care Fraud Conspiracy
Houston - Yolanda Nowlin, 42, has been convicted of conspiracy to commit health care fraud, four counts of health care fraud, conspiracy to commit kickback fraud and aiding and abetting Social Security fraud, United States Attorney Kenneth Magidson announced today. The verdicts were returned late yesterday afternoon following seven days of trial and less than three hours of deliberations.
September 4, 2013; U.S. Department of Justice: Two Patient Recruiters of Miami Home Health Company Plead Guilty in $48 Million Health Care Fraud Scheme
Two patient recruiters of a Miami health care company pleaded guilty late yesterday for their participation in a $48 million home health Medicare fraud scheme.
September 4, 2013; U.S. Attorney, Eastern District of Pennsylvania: Ambulance Company Owners Sentenced to Prison for Health Care Fraud Scheme
PHILADELPHIA - Aleksandr N. Zagorodony, 39, of Southampton, PA, was sentenced today to 78 months in prison for a healthcare fraud scheme involving MedEx Ambulance, Inc., located in Feasterville, PA. Zagorodny was the President and a founder of MedEx Ambulance. His 36 year-old brother, Sergey Zagorodny, from Philadelphia, PA, the former Vice-president and co-owner of the company, was sentenced to 60 months in prison for his involvement in the health care fraud scheme. MedEx Ambulance was ordered to be dissolved after it has been excluded from participation in Medicare and its assets are transferred to the government to satisfy restitution and forfeiture obligations. Each defendant had pleaded guilty to all counts in a 41-count indictment including health care fraud, false statements in connection with health care matters, wire fraud, and conspiracy to commit health care fraud and wire fraud.
September 4, 2013; U.S. Attorney, Southern District of Texas: Two Area Women Convicted in Home Health Services Conspiracy
CORPUS CHRISTI, Texas - Sylvia Salinas Ramirez, of Driscoll, and Debra Jean Velasquez, of Robstown, have been convicted of wire fraud and conspiring to do so as part of a scheme to defraud the Texas Medicaid program through fraudulent home health billings, United States Attorney Kenneth Magidson announced today along with Texas Attorney General Greg Abbott.
September 3, 2013; U.S. Attorney; District of South Dakota: Sioux Falls Man Sentenced For Failure to Pay Child Support
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man, formerly of Hot Springs, Arkansas, was sentenced on August 29, 2013, by U.S. District Court Judge Karen E. Schreier for Failure to Pay Child Support.

August 2013

August 30, 2013; U.S. Department of Justice: Former Office Manager for Health Care Solutions Network Sentenced in $63 Million Medicare Fraud
WASHINGTON-A former office manager at the defunct health care provider Health Care Solutions Network Inc. was sentenced today in Miami to serve 68 months in prison for her role in a fraud scheme that resulted in more than $63 million in fraudulent claims to Medicare and Florida Medicaid.
August 30, 2013; U.S. Attorney; District of Hawaii: Community Hospital Pays $451,428.00 to Resolve Allegation of Improper Claims
HONOLULU - Wahiawa General Hospital ("WGH") of Honolulu, Hawaii, shall pay $451,428.00 to settle two lawsuits alleging that WGH improperly billed the Medicare program, the State of Hawaii Medicaid program, and TRICARE, the federal health benefits program for military dependents. The settlement grew out of civil "whistleblower" lawsuits brought under the federal and State of Hawaii False Claims Acts in federal and state court by a doctor who had worked at the Physicians Center at Mililani ("PCM"), an out-patient clinic operated by WGH. The doctor alleged that WGH had submitted bills to Medicare and Medicaid programs for services provided by resident doctors without the level of supervision required by federal law. The federal and state governments initiated an investigation based upon the doctor's allegations.
August 28, 2013; U.S. Attorney; District of New Mexico: Former Non-Native Employee of Indian Health Services Pleads Guilty to Fraudulent Acquisition of Controlled Substances
Albuquerque - Jason Lucas, 30, of Albuquerque, N.M., pleaded guilty this morning to the acquisition of a controlled substance through fraud and deception under a plea agreement with the U.S. Attorney's Office. Lucas was indicted in Jan. 2013, and charged with five counts of acquiring controlled substances through fraud and deception and three counts of defrauding a health care benefit program by having the program pay for fraudulently acquired controlled substances.
August 28, 2013; U.S. Attorney; Northern District of Georgia: Emory University to Pay $1.5 Million to Settle False Claims Act Investigation
ATLANTA - The United States Attorney's Office for the Northern District of Georgia and Attorney General Sam Olens announced today they have reached a settlement with Emory University, which agreed to pay $1.5 million to settle claims that it violated the False Claims Act by billing Medicare and Medicaid for clinical trial services that were not permitted by the Medicare and Medicaid rules.
August 28, 2013; U.S. Attorney; Middle District of North Carolina: Alamance County Residents Sentenced For Health Care Fraud
Greensboro, N.C. - United States Attorney Ripley Rand of the Middle District of North Carolina announced today that two Alamance County residents have been sentenced to prison for defrauding the Medicaid program. Evelyn Fuller, 61, and Michael McLean, 57, were sentenced by United States District Judge Catherine Eagles in federal court in Greensboro, North Carolina, on Tuesday, August 27, 2013. FULLER was sentenced to 26 months imprisonment. Her co-defendant, McLean, was sentenced to 36 months imprisonment. Fuller and McLean were also ordered to pay restitution to the Medicaid program in the amount of $399,811.44. Both Fuller and Mclean will serve three years of supervised release after serving their prison sentences.
August 27, 2013; U.S. Department of Justice: MRI Diagnostic Testing Company, Imagimed LLC, and Its Former Owners and Chief Radiologist to Pay $3.57 Million to Resolve False Claims Act Allegations
New York-based Imagimed LLC, the company's former owners, William B. Wolf III and Dr. Timothy J. Greenan, and the company's former chief radiologist, Dr. Steven Winter, will pay $3.57 million to resolve allegations that they submitted to federal healthcare programs false claims for magnetic resonance imaging (MRI) services, the Justice Department announced today. Imagimed owns and operates fifteen MRI facilities, located primarily in New York state, under the name "Open MRI."
August 27, 2013; U.S. Attorney; Northern District of Illinois: Mobile Doctors' Chicago CEO and Doctor Arrested on Federal Health Care Fraud Charges; Offices Searched in Three Cities
CHICAGO - The chief executive officer of Chicago-based Mobile Doctors, which manages physicians who make house calls in six states, and one of its physicians in Chicago were arrested today on federal health care fraud charges. At the same time, federal agents executed search warrants at Mobile Doctors' offices in Chicago, Detroit, and Indianapolis, as well as warrants to seize up to $2.568 million in alleged fraud proceeds from various bank accounts. The charges allege a scheme to fraudulently increase (also known as "upcoding") Medicare bills for in-home patient visits that Mobile Doctors falsely claimed were more complicated and longer than they actually were. The charges also allege that Mobile Doctors' physicians falsely certified that patients were confined to their homes, enabling home health care agencies to claim fees for additional services for patients who were not actually qualified to receive them.
August 27, 2013; U.S. Attorney; Northern District of Texas: Abilene, Texas, Dentist Pleads Guilty in Medicaid Fraud Scheme
ABILENE, Texas - A dentist who practiced pediatric dentistry at Kool Smiles in Abilene, Texas, has admitted that he made false and fraudulent statements and entries on patient records, which caused Medicaid to be billed for, and pay, at least $120,000 for services falsely claimed to have been performed, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
August 26, 2013; U.S. Attorney; District of Colorado: Craig Doctor Arrested For Prescribing Drugs Resulting In Patient Deaths and Heath Care
Fraud Scheme
DENVER - Joel E. Miller, age 55, of Craig, Colorado, was arrested without incident today on charges of health care fraud, money laundering and distributing/dispensing controlled substances, federal and state authorities announced.
August 26, 2013; U.S. Department of Justice: Former Owner of Los Angeles Medical Equipment Supply Company Pleads Guilty to $2.6 Million Medicare Fraud Scheme
A former owner of a Los Angeles-area medical equipment supply company pleaded guilty today to a $2.6 million Medicare fraud scheme. .Akinola Afolabi, 54, of Long Beach, Calif., pleaded guilty before U.S. District Judge Philip S. Gutierrez in the Central District of California to one count of health care fraud.
August 26, 2013; U.S. Attorney; Central District of California: Los Angeles Man Who Recruited 'Patients' from Los Angeles' 'Skid Row' as Part of $10 Million Health Care Scam Sentenced to Federal Prison
LOS ANGELES-A Los Angeles man who recruited homeless people from the "Skid Row" section of Los Angeles as part of a widespread scheme to defraud Medicare and Medi-Cal by providing unnecessary health services was sentenced this morning to 18 months in federal prison.
August 23, 2013; U.S. Attorney; Eastern District of Pennsylvania: California Man Sentenced For Running Fraudulent Clinic
Philadelphia - George Baginyan, 33, of Glendale, California, was sentenced to two years in prison for operating a fraudulent clinic and defrauding Medicare. Baginyan was the owner of New Era Health Center Inc. ("New Era"), a purported clinic that was located near the Einstein Medical Center in Philadelphia. Between December 2008 and October 2009, Baginyan used the National Provider Identification number (NPI) of an elderly and frail doctor of osteopathy to bill Medicare for medical services and tests, making it appear that the doctor had provided those services and tests when he had not.
August 22, 2013; U.S. Attorney; District of Maryland: Hagerstown Pharmacist Sentenced To 30 Months in Prison for Health Care Fraud for Improperly Billing Medicare and Medicaid
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced David Russo, age 62, of Hagerstown, Maryland today to 30 months in prison, followed by one year of supervised release, for health care fraud in connection with a scheme to defraud Medicare and Medicaid by billing for prescriptions that Russo knew were not written for a legitimate medical purpose.
August 21, 2013; U.S. Department of Justice: Therapy Staffing Company Owner and Patient Recruiter Plead Guilty in $7 Million Health Care Fraud Scheme
A patient recruiter and a therapy staffing company owner pleaded guilty today in connection with a $7 million health care fraud scheme involving the now defunct home health care company Anna Nursing Services Corp.
August 21, 2013; U.S. Department of Justice: Long Island Physician to Pay U.S. $388,000 to Settle False Claims Act Allegations Related to Overbilling Medicare
WASHINGTON - Richard S. Obedian, a Long Island, N.Y., orthopedic surgeon, will pay the government $388,000 to settle allegations that he violated the False Claims Act by submitting false claims to Medicare for minimally invasive spine procedures, the Justice Department announced today.
August 20, 2103; U.S. Attorney; Eastern District of New York: Bostwick Laboratories, Inc. Pays $503,668 to Resolve Civil Fraud Allegations That Its Sales Representatives Used a Clinical Study to Induce Physicians to Utilize Its Services
Bostwick Laboratories, Inc. ("Bostwick") has entered into a civil settlement agreement in which it agreed to pay the United States $503,668.00 to resolve allegations that the company made illegal payments to induce certain physicians to utilize Bostwick's laboratory testing services - some of which were not medically necessary under the circumstances.
August 19, 2013; U.S. Attorney; Southern District of California: Physician Sentenced to Prison in $1 Million Power Wheelchair Scam
United States Attorney Laura E. Duffy announced that Irving J. Schwartz, M.D. was sentenced today to five months in prison, followed by five months in a halfway house, for his involvement in a scheme to defraud the Medicare trust fund by writing hundreds of false and fraudulent prescriptions for costly medical equipment that was not medically necessary. Dr. Schwartz was also ordered to pay restitution of $593,429.81 to the Medicare trust fund and to forfeit $55,800 in kickbacks that he received for his role in the fraudulent scheme.
August 19, 2013; U.S. Department of Justice: Shands Healthcare to Pay $26 Million to Resolve Allegations Related to Inpatient Stays at Six Florida Hospitals
Shands Teaching Hospital & Clinics Inc., Shands Jacksonville Medical Center Inc. and Shands Jacksonville Healthcare Inc., which operates a network of health care providers in Florida, will pay the government and the state of Florida a total of $26 million to settle allegations that six of its health care facilities submitted false claims to Medicare, Medicaid and other federal health care programs for inpatient procedures that should have been billed as outpatient services.
August 16, 2013; U.S. Attorney; Eastern District of Texas: Planned Parenthood Pays $4.3 Million to Settle Allegations of Unnecessary Medical Care
LUFKIN, Texas - Houston-based Planned Parenthood Gulf Coast has paid $4.3 million to resolve civil allegations under the False Claims Act in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
August 16, 2013; U.S. Attorney; Southern District of New York: High-Ranking Member of Enterprise Involved in Massive Medicare Fraud Sentenced in Manhattan Federal Court to 125 Months in Prison
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that Robert Terdjanian was sentenced yesterday to 125 months in prison for his role in a multi-million dollar Medicare fraud scheme, among other offenses including extortion and immigration fraud. Terdjanian pled guilty to racketeering in December 2011 before U.S. District Judge Paul G. Gardephe, who also imposed yesterday's sentence.
August 15, 2013; U.S. Attorney; District of Wyoming: Evanston Woman Sentenced for Health Care Fraud
United States Attorney Christopher A. Crofts announced today that on August 14, 2013, Brenda Murray, 52, of Evanston, Wyoming, was sentenced by Chief District Court Judge Nancy D. Freudenthal for Health Care Fraud. Murray was sentenced to five months of home confinement, two years of probation and ordered to pay restitution in the amount of $56,496.15.
August 15, 2013; U.S. Department of Justice: Michigan Physical Therapist and Home Health Agency Owner Pleads Guilty for Role in Medicare Fraud Scheme
A greater Detroit-area physical therapist who was also an owner of a home health agency pleaded guilty yesterday for his role in a $22 million home health care fraud scheme.
August 15, 2013; U.S. Department of Justice: Operators of Louisiana Home Health Company Sentenced for $17.1 Million Health Care Fraud Scheme
The owner of South Louisiana Home Health Care Inc. and the director of nursing for the Louisiana home health agency were sentenced today for their roles in a Medicare fraud scheme involving the payment of kickbacks and the falsification of documents.
August 14, 2013; U.S. Attorney; District of New Hampshire: Former Employee of Exeter Hospital Pleads Guilty To Charges Related To Multi-State
Hepatitis C Outbreak
Concord, N.H. -David M. Kwiatkowski, 34, a former employee of Exeter Hospital, pleaded guilty today to eight counts of obtaining controlled substances by fraud and eight counts of tampering with a consumer product, announced United States Attorney John P. Kacavas.
August 13, 2013; U.S. Department of Justice: Health Care Clinic Owners Plead Guilty in Miami for Roles in $8 Million Health Care Fraud Scheme
WASHINGTON - Two health care clinic owners pleaded guilty today in connection with an $8 million health care fraud scheme involving the now-defunct home health care company Flores Home Health Care Inc.
August 13, 2013; U.S. Attorney; Western District of Michigan: Health Care Business Owner Sentenced To Four Years in Prison, Pays A Million Dollar Civil Settlement, and Agrees To 20-Year Exclusion from Medicare and Medicaid In Connection With Illegal Kickback Scheme
Grand Rapids, Michigan - U.S. Attorney Patrick Miles announced today that Babubhai Rathod, age 44, of Okemos, Michigan, was sentenced to four years in prison and two years of supervised release for his lead role in a conspiracy to pay illegal kickbacks to health care practitioners and others to induce the referral of patients to medical clinics, physical therapy clinics, and a home health care agency.
August 13, 2013; U.S. Attorney; Northern District of Ohio: Seven Oncologists Charged with Importing Unapproved Drugs
Seven Ohio oncologists were charged with importing cancer medications that had not been approved by the Federal Drug Administration, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
August 12, 2013; U.S. Attorney; District of Maryland: Maryland General Hospital Agrees To Pay $750,000 to Resolve False Claims Act Allegations in Connection with Overbilling for Cardiac Testing
Baltimore, Maryland - Maryland General Hospital ("MGH"), an acute care hospital in Baltimore, Maryland that is part of the University of Maryland Medical Systems Corporation, agreed to pay $750,000 to settle allegations under the False Claims Act. The government alleged that MGH overbilled in connection with cardiac testing and failed to repay the overpayments after senior financial managers learned of them.
August 12, 2013; U.S. Attorney; District of New Jersey: Salesman Admits Role in Bribes-For-Test-Referrals Scheme Involving New Jersey Clinical Laboratory
NEWARK, N.J. - A Monmouth County, N.J. man pleaded guilty today to his role in a long-running bribes-for-test-referrals scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president, and numerous associates, U.S. Attorney Paul J. Fishman announced.
August 9, 2013; U.S. Department of Justice: United States Files Lawsuit against PharMerica Corporation for Violations of the False Claims Act and the Controlled Substances Act; Government Alleges That Long-term Care Pharmacy Billed Medicare for Schedule II Controlled Substances That Were Dispensed Without a Valid Prescription
The United States has filed suit against PharMerica Corp. in the U.S. District Court for the Eastern District of Wisconsin, the Justice Department announced today. The lawsuit alleges that PharMerica violated the False Claims Act and the Controlled Substances Act by dispensing controlled drugs without valid prescriptions and causing claims for illegally dispensed drugs to be submitted to the Medicare program.
August 8, 2013; U.S. Attorney; Western District of North Carolina: Mental Health Counselor Receives Six-Year Prison Sentence for Defrauding Medicaid of $6.1 Million
CHARLOTTE, N.C. - A mental health counselor who admitted overseeing a health care scheme that defrauded Medicaid of at least $6.1 million for sham mental and behavioral health services was sentenced to 72 months in prison today, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Linda Smoot Radeker, 72, of Shelby, N.C. was also sentenced to serve two years under court supervision and to pay $6,156,674.68 as restitution to Medicaid.
August 7, 2013; U.S. Attorney; Southern District of Ohio: Grand Jury Returns 10-Count Indictment against Spine Surgeon Alleging Health Care Fraud
A federal grand jury returned a ten-count indictment against Abubakar Atiq Durrani, 44, Mason, Ohio alleging that, beginning in 2009, he convinced patients to undergo medically unnecessary spinal surgeries then billed private and public healthcare benefit programs millions of dollars for the fraudulent services.
August 6, 2013; U.S. Attorney; Western District of Tennessee: Contract Counselor for Shelby County Juvenile Court Sentenced to Three Years for Health Care Fraud Scheme
Memphis, TN - Mechell D. Toles, 44, of Collierville, TN, was sentenced today by United States District Court Chief Judge Jon Phipps McCalla to three years in prison following her guilty plea to one count of health care fraud, announced U.S. Attorney Edward L. Stanton III.
August 6, 2013; U.S. Department of Justice: Oakland County Doctor and Owner of Michigan Hemotology and Oncology Centers Charged in $35 Million Medicare Fraud Scheme
Dr. Farid Fata, 48, of Oakland Township, Michigan, was arrested this morning and charged in a criminal complaint for his role in a health care fraud scheme which involved submitting false claims to Medicare for services that were medically unnecessary, including chemotherapy treatments.
August 6, 2013; U.S. Attorney; Southern District of New York: Manhattan U.S. Attorney and FBI Assistant Director in Charge Announce Charges against New York City Comptroller Candidate Kristin Davis for Illegally Distributing Prescription Pills
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI), announced today the arrest of KRISTIN DAVIS, a candidate for New York City comptroller, on charges of selling prescription pills containing controlled substances, including oxycodone, for cash. DAVIS was arrested yesterday in Manhattan and is expected to be presented this afternoon in Manhattan federal court before U.S. Magistrate Judge Sarah Netburn.
August 6, 2013; U.S. Attorney; District of New Jersey: Twin Brother Pharmacists Admit To Defrauding Patients and Insurance Companies of $1.5 Million
NEWARK, N.J. - Two pharmacists - twin brothers who previously owned the West Orange Pharmacy - today admitted reaping at least $1.5 million in illicit gains by defrauding patients, Medicaid and insurance companies over the past 15 years, U.S. Attorney Paul J. Fishman announced.
August 5, 2013; U.S. Attorney; Eastern District of Texas: Former Shelby County Residents Indicted in Health Care Fraud Scheme
Tyler, Texas - U.S. Attorney John M. Bales announced that a Center, Texas couple, now living in Elgin, Texas, and a Center, Texas man have been indicted on charges of conspiracy and health care fraud in the Eastern District of Texas.
August 1, 2013; U.S. Attorney, Southern District of Florida: Loxahatchee Pair Indicted in Conspiracy to Defraud Banks and Federal Benefit Programs
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Lester Fernandez, Special Agent in Charge, United States Department of Housing and Urban Development (HUD), Office of Inspector General, Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff's Office, Thomas Caul, Acting Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General, Karen Citizen-Wilcox, Special Agent in Charge, United States Department of Agriculture (USDA), Office of Inspector General, and Christopher B. Dennis, Special Agent in Charge, United States Department of Health and Human Services (HHS), Office of Inspector General, Miami Region, announced the indictment of defendants Gloria Nereida Valle-Clas, 48, and Alexander Gonzalez, 40, of Loxahatchee, Florida.
August 1, 2013; U.S. Attorney, Middle District of Georgia: Christine Rahl Sentenced For Health Care Fraud And Money Laundering
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Christine Rahl, 46, a resident of Social Circle, Georgia, was sentenced July 31, 2013 before the Honorable C. Ashley Royal, United States District Judge in Macon, Georgia, to fifty-seven (57) months imprisonment, to be followed by three (3) years supervised release, and a $500.00 mandatory assessment. Additionally, Judge Royal ordered Ms. Rahl to pay $1,586.847.14 in restitution.
August 1, 2013; U.S. Attorney, Southern District of Georgia: Victims Of Largest Fraud Case Prosecuted In Southern District of Georgia Receive Over $27 Million In Restitution
SAVANNAH, GA - United States Attorney Edward J. Tarver announced today the payment of over $27 million in restitution to the victims of the largest fraud case ever prosecuted in the Southern District of Georgia, United States v. Martin J. Bradley III, et al., Case No. 405-059 (S.D. Ga.).

July 2013

July 31, 2013; U.S. Attorney, District of Columbia: Former CEO/Owner of Home Health Care Provider Sentenced To Prison For Falsifying Records Involving a Federal Audit
WASHINGTON - Jeannette N. Awasum, the former owner of a health care provider, was sentenced today to eight months of incarceration on a federal charge stemming from falsifying records in connection with a U.S. Department of Health and Human Services audit.
July 30, 2013; U.S. Department of Justice: Wyeth Pharmaceuticals Agrees to Pay $490.9 Million for Marketing the Prescription Drug Rapamune for Unapproved Uses
Wyeth Pharmaceuticals Inc., a pharmaceutical company acquired by Pfizer, Inc. in 2009, has agreed to pay $490.9 million to resolve its criminal and civil liability arising from the unlawful marketing of the prescription drug Rapamune for uses not approved as safe and effective by the U.S. Food and Drug Administration (FDA), the Justice Department announced today. Rapamune is an "immunosuppressive" drug that prevents the body's immune system from rejecting a transplanted organ.
July 30, 2013; U.S. Department of Justice: Brooklyn Clinic Employee Sentenced to Eight Years in Prison in Connection with $77 Million Medicare Fraud Scheme
Yuri Khandrius, 50, of Brooklyn, N.Y., was sentenced today to eight years in prison for his role in a $77 million Medicare fraud scheme.
July 30, 2013; U.S. Department of Justice: False Claims Act Judgment Entered Against Washington, DC, Health Care Provider for More Than $17 Million
The U.S. District Court for the District of Columbia has entered judgment for more than $17 million against Dr. Ishtiaq Malik and his two companies, Ishtiaq Malik M.D., P.C. and Advanced Nuclear Diagnostics, for submitting false nuclear cardiology claims to federal and state health care programs, the Justice Department announced today. Ishtiaq Malik, a nuclear cardiologist, has practiced in the District of Columbia metropolitan area since 2002.
July 30, 2013; U.S. Department of Justice: Former Owner of Los Angeles Medical Equipment Supply Company Sentenced for Conspiring to Defraud Medicare
The owner and operator of a durable medical equipment (DME) supply company was sentenced today to serve 24 months in prison for conspiring to submit nearly $1 million in fraudulent claims to Medicare.
July 30, 2013; U.S. Attorney, Northern District of Illinois: Northwestern University to Pay Nearly $3 Million to the United States to Settle Cancer Research Grant Fraud Claims
CHICAGO - Northwestern University will pay the United States $2.93 million to settle claims of cancer research grant fraud by a former researcher and physician at the university's Robert H. Lurie Comprehensive Center for Cancer in Chicago. Northwestern agreed to the settlement in a federal False Claims Act lawsuit that was unsealed today after the government investigated the claims made by a former employee and whistleblower who will receive a portion of the settlement.
July 30, 2013; U.S. Attorney, Northern District of Texas: North Texas Men, Who Owned Hyperbaric Oxygen Therapy Companies, Plead Guilty to Conspiracy to Commit Health Care Fraud; Third Defendant Admits Conspiring to Make False Statements to a Financial Institution
DALLAS - This morning, two businessmen, Stanley Thaw, of Frisco, Texas, and Michael Kincaid, of Plano, Texas, who owned and operated hyperbaric oxygen therapy companies located in Plano, Denton, Hurst, Houston, and San Antonio, Texas, appeared before U.S. District Judge Jorge A. Solis and pleaded guilty to their roles in a conspiracy to commit health care fraud. Kernell Thaw also appeared in court this morning and pleaded guilty to one count of conspiracy to make false statements to a financial institution regarding properties in Dallas that she purchased from a local home builder. Today's announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
July 29, 2013; U.S. Attorney, Southern District of Florida: Hospital Employee and Accomplice Sentenced for Tax Refund Fraud Using Stolen Patient Information
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), and Scott J. Israel, Sheriff, Broward Sheriff's Office, announce that defendant Shalamar Major, 32, of Deerfield Beach, Florida, was sentenced today before U.S. District Judge Robin S. Rosenbaum, in connection with her previous conviction for unauthorized HIPAA disclosures, in violation of Title 42, United States Code, Section 1320d-6, and conspiracy to commit false claims, in violation of Title 18, United States Code, Section 286, in connection with a tax refund scheme that used stolen social security and other personal identifying information to file on-line tax returns claiming fraudulent tax refunds from the IRS.
July 29, 2013; U.S. Attorney, District of Maryland: Pharmacy Store Owner and Two Employees Charged With Health Care Fraud and Identity Theft
Baltimore, Maryland - A federal grand jury has indicted Reddy Vijay Annappareddy, age 45, of Fallston, Maryland; Vipinkumar Patel (V. Patel), age 30, of Edgewood, Maryland; and Jigar Patel (J. Patel), age 27, of Columbia, Maryland, on charges of health care fraud and aggravated identity theft in connection with a scheme to defraud Medicaid and Medicare by submitting false claims for prescription refills. The indictment was returned on July 23, 2013, and unsealed on July 25, 2013, upon the arrest of the Patels and the execution of search warrants at six locations, including three pharmacies and a storage space. The Patels had detention hearings today in federal court in Baltimore and were released under the supervision of U.S. Pretrial Services. No court appearance has been scheduled yet for Annappareddy.
July 29, 2013; U.S. Attorney, District of Massachusetts: Beth Israel Deaconess Medical Center to Pay $5.3 Million to Resolve Improper Medicare Claims
BOSTON - United States Attorney Carmen M. Ortiz and Susan J. Waddell, Special Agent in Charge of the Department of Health & Human Services, Office of Inspector General announced today that Beth Israel Deaconess Medical Center (BIDMC), a teaching hospital located in Boston, has agreed to pay the United States $5.315 million to settle allegations that it violated the False Claims Act by billing Medicare for inpatient admissions that should have been billed as lower reimbursed outpatient or observation services. The improper claims were submitted from June 1, 2004, through March 31, 2008.
July 26, 2013; U.S. Attorney, Southern District of Texas: Professional Medicare Beneficiary Turned Patient Recruiter Sentenced to Federal Prison
HOUSTON -- Robert Glenn Baker, 57, of Houston, has been sentenced for conspiracy to violate the anti-kickback statute, United States Attorney Kenneth Magidson announced today. Baker pleaded guilty to the charge on Aug. 15, 2012.
July 26, 2013; U.S. Attorney, District of Maryland: Leader of Baltimore Area Oxycodone Ring Sentenced to Prison
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Joseph Church, age 41, of Baltimore, Maryland, today to 51 months in prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute oxycodone.
July 26, 2013; U.S. Department of Justice: Dubuis Health System and Southern Crescent Hospital for Specialty Care, Inc. to Pay U.S. $8 Million to Resolve False Claims Act Allegations
Dubuis Health System and Southern Crescent Hospital for Specialty Care, Inc. (Southern Crescent) have agreed to pay the United States $8,000,000 to settle allegations that they submitted false claims to Medicare, the Justice Department announced today. Dubuis Health System manages long-term acute care hospitals in multiple states, including Southern Crescent. Southern Crescent is a long-term acute care hospital located in Riverdale, GA and is part of the CHRISTUS Health System.
July 25, 2013; U.S. Attorney, Southern District of Ohio: Spine Surgeon Arrested on Charges He Performed Unnecessary Surgeries and Billed Health Insurance Programs
CINCINNATI - Federal and state health care fraud investigators arrested Abubakar Atiq Durrani, 44, Mason, Ohio today based on a federal complaint alleging that he convinced patients to undergo medically unnecessary spinal surgeries then billed private and public healthcare benefit programs millions of dollars for the fraudulent services.
July 25, 2013; U.S. Department of Justice: Health Care Clinic Director Sentenced for Role in $63 Million Health Care Fraud Scheme
A former health care clinic director and licensed clinical psychologist at defunct health provider Health Care Solutions Network Inc. (HCSN) was sentenced today in Miami to serve 135 months in prison for her central role in a fraud scheme that resulted in more than $63 million in fraudulent claims to Medicare and Florida Medicaid.
July 24, 2013; U.S. Department of Justice: Michigan Physical Therapist Assistant/home Health Agency Owner Pleads Guilty for Role in Medicare Fraud Scheme
A greater Detroit-area physical therapist assistant - who was also an owner of a home health agency and a patient recruiter - pleaded guilty today for his role in a $22 million home health care fraud scheme.
July 24, 2013; U.S. Department of Justice: Owner of California Medical Equipment Supply Company Found Guilty of $11 Million Medicare Fraud Scheme
The daughter of a church pastor and owner of a California-based durable medical equipment (DME) supply company was found guilty by a jury of Medicare fraud charges for her role in a Medicare fraud scheme that resulted in over $11 million in fraudulent billings to Medicare.
July 24, 2013; U.S. Department of Justice: Philadelphia Money Launderer Pleads Guilty in Connection with Brooklyn Medicare Fraud Scheme
A Philadelphia resident pleaded guilty today for his role as a money launderer in a $13 million health care fraud scheme.
July 24, 2013; U.S. Attorney; District of Nevada: Two Women Sentenced for Nevada Medicaid Fraud Scheme
RENO, Nev. - Two women were sentenced today for their guilty pleas to federal health care fraud charges after they defrauded the Nevada Medicaid program of approximately $1 million, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
July 22, 2013; U.S. Attorney; Western District of New York: Physician Pleads Guilty To Health Care Fraud Charges
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced that Daniel C. Gillick, 63, a physician residing in Youngstown, N.Y., pleaded guilty to obtaining controlled substances by fraud and health care fraud. The charges carry a maximum sentence of 10 years in prison, a $500,000 fine or both.
July 22, 2013; U.S. Department of Justice: Home Health Agency Owner Pleads Guilty for Role in $13.8 Million Medicare Fraud Scheme
Detroit-area resident Javed Rehman pleaded guilty today for his role in a $13.8 million Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Robert D. Foley III of the FBI's Detroit Field Office and Special Agent in Charge Lamont Pugh III of the Chicago Regional Office for the U.S. Department of Health and Human Service's Office of Inspector General.
July 22, 2013; U.S. Attorney; Middle District of Florida: HPH Hospice to Pay $1 Million to Resolve False Claims Act Allegations
TAMPA - The United States Attorney's Office for the Middle District of Florida announced today that Hernando-Pasco Hospice, Inc., d/b/a HPH Hospice, has agreed to pay $1 million to resolve allegations that it violated the False Claims Act by submitting false claims for hospice services to the Medicare and Medicaid programs. HPH Hospice is a Florida not-for-profit corporation that provides hospice services in various locations throughout Hernando, Pasco, and Citrus counties in Florida.
July 22, 2013; U.S. Attorney; Southern District of Illinois: Doctor Sentenced In Health Care Fraud Obstruction Case
Dr. Mahmoud Yassin, 61, of Robinson, IL, was sentenced in federal district court in Benton for Obstructing a Criminal Health Care Fraud Investigator, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Dr. Yassin was sentenced to serve 3 years of probation, a fine of $10,000, a special assessment of $100, and ordered to pay restitution to BCBS of Illinois in the amount of $19,615.17. As a condition of probation, Dr. Yassin must also serve 30 days in prison.
July 19, 2013; U.S. Department of Justice: U.S. Intervenes in False Claims Act Lawsuit against Fla. Home Health Care Company and Its Owner
The government has intervened in a whistleblower lawsuit against A Plus Home Health Care, Inc., a home health care company in Fort Lauderdale, Fla., and its owner, Tracy Nemerofsky, the Justice Department announced today. The government alleges that A Plus offered referring physicians' spouses sham marketing positions with the company to induce the physicians to refer Medicare patients for home health care services.
July 19, 2013; U.S. Attorney; Northern District of Ohio: Orange Village Man Sentenced To Two Years in Prison, Ordered To Pay $1.9 Million for Health
Care Fraud
A man who lives in Orange, Ohio and admitted to overbilling Medicaid and Medicare was sentenced to two years in prison and ordered to pay more than $1.9 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. Divyesh "David" C. Patel, 40, pleaded guilty last year to one count of conspiracy to commit health care fraud and four counts of health care fraud.
July 18, 2013; U.S. Attorney; Northern District of California: Pharmaceutical Company Agrees To Pay $3.5 Million to Settle False Claims Act Allegations
SAN FRANCISCO - Mallinckrodt LLC, a pharmaceutical manufacturer, has agreed to pay $3.5 million to settle allegations that it made improper payments to physicians and, as a result, caused the submission of false claims to Medicare and Medicaid between January 2005 and June 2010, United States Attorney Melinda Haag announced.
July 18, 2013; U.S. Department of Justice: Owner of Los Angeles-area DME Company Pleads Guilty to Conspiring to Defraud Medicare and
Medi-Cal
The owner of a Los Angeles-area durable medical equipment (DME) supply company has pleaded guilty to conspiring to defraud Medicare and Medi-Cal of more than $650,000.
July 18, 2013; U.S. Attorney; Southern District of New York: United States Settles Medicare Billing Fraud Lawsuit with Multi-Specialty Health Care Provider for $1 Million
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas O'Donnell, Special Agent-in-Charge of the Department of Health and Human Services, Office of Inspector General (HHS-OIG), New York region, announced today that the United States has settled for $1 million a civil health care False Claims Act lawsuit it filed on March 5, 2013 in Manhattan federal court against Park Avenue Medical Associates, P.C., Park Avenue Health Care Management, LLC, and Park Avenue Health Care Management, INC. (collectively "PAMA"), affiliated companies in the business of providing multi-specialty medical services in New York.
July 18, 2013; U.S. Attorney; District of New Jersey: South Jersey Doctor Sentenced To Two Years in Prison for Fraud Scheme Involving Home Health Care for Elderly Patients
TRENTON, N.J. - A doctor who was the owner and founder of Visiting Physicians of South Jersey (VPA) - a Hammonton, N.J., provider of home-based physician services for seniors - was sentenced today to 24 months in prison for charging lengthy visits to elderly patients that they did not receive, U.S. Attorney Paul J. Fishman announced.
July 18, 2013; U.S. Attorney; District of Maryland: 16 Defendants Charged In a Commercial Burglary Ring and Drug Conspiracy
Baltimore, Maryland - A federal grand jury has returned three indictments charging 16 defendants - eight in a conspiracy to distribute prescription drugs, heroin and cocaine around the Baltimore metropolitan area and the remaining defendants in conspiracies to commit armed home invasions, residential burglaries and commercial burglaries. The indictments were returned on July 16, 2013 and unsealed today upon the arrests of the defendants and execution of search warrants at 21 locations in Baltimore, Baltimore County and Anne Arundel County.
July 18, 2013; U.S. Attorney; Eastern District of Missouri: Local Physician, Clinic and Nurse Practitioner Indicted On Health Care Fraud Charges
St. Louis, MO - Dr. Mel Lucas, Patterson Medical Clinic, Inc. and nurse practitioner, Robyn Levy, were indicted on multiple health care fraud related charges for their alleged false billing for services never rendered and false statements in patients' medical records.
July 17, 2013; U.S. Attorney; Southern District of New York: Manhattan U.S. Attorney Announces Charges against Eight Individuals in Connection with $2.3 Million Bribery and Kickback Scheme to Secure Business from a Medical Cost-Management Company
Preet Bharara, the United States Attorney for the Southern District of New York, Thomas O'Donnell, the Special Agent-in-Charge of the New York Office of the U.S. Department of Health and Human Services, Office of Inspector General, and Steven G. Hughes, the Special Agent-in-Charge of the New York Office of the U.S. Secret Service today announced charges against eight individuals for their alleged involvement in a lucrative scheme in which information technology vendors paid over $2.3 million in bribes and kickbacks to secure business from executives of a Manhattan-based medical cost management company.
July 17, 2013; U.S. Attorney; Middle District of Pennsylvania: Williamsport Resident Sentenced To 70 Months on Federal Tax Charges
The United States Attorney's Office for the Middle District of Pennsylvania announced today that Cheryl Cobia, age 27, of Williamsport, Pennsylvania was sentenced to 70 months' imprisonment by U.S. District Court Judge Matthew W. Brann on July 9, 2013, in U.S. District Court in Williamsport. Cobia pleaded guilty earlier this year to charges of conspiracy and false statements in connection with a scheme to file false federal income tax returns in 2009-2011. Cobia was also charged with making false statements in applications for food stamps and medical assistance benefits.
July 17, 2013; Drug Enforcement Administration; New York Division: Rx Trafficking Ring Controlled Brooklyn Medical Practices: Nearly $3.4 Million in Pills Diverted
Manhattan, NY - Brian R. Crowell, Special Agent in Charge, Drug Enforcement Administration (DEA), New York Division, Bridget G. Brennan, New York City's Special Narcotics Prosecutor, New York City Police Commissioner Raymond W. Kelly, Tom F. O'Donnell, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General New York Region (HHS-OIG), and New York State Commissioner of Health Nirav R. Shah, M.D., M.P.H., announced today the indictment and arrest of five members of a prescription drug trafficking ring that illegally collected and distributed over $3.4 million in oxycodone and other prescription drugs through medical offices they controlled in Brooklyn.
July 17, 2013; U.S. Attorney; District of New Jersey: Three Doctors Admit Accepting Bribes for Test Referrals to New Jersey Clinical Laboratory
NEWARK, N.J. - Three New Jersey doctors admitted today they accepted tens of thousands of dollars in bribes from Parsippany, N.J.-based Biodiagnostic Laboratory Services LLC (BLS) as part of a long-running scheme operated by the lab, its president, and numerous associates, U.S. Attorney Paul J. Fishman announced.
July 17, 2013; Office of the District Attorney; Richmond County, NY: D.A. Donovan, NYPD Take down Ring of ID Scammers Who Targeted More Than 80 Patients from a South Shore Doctor's Office
Staten Island, NY - Richmond County District Attorney Daniel M. Donovan, Jr. and NYPD Commissioner Raymond Kelly today announced the indictments and arrests of one Staten Islander and four Bronx residents on charges that include enterprise corruption, identity theft, falsifying business records, criminal possession of stolen property, grand larceny and grand larceny as a hate crime, among other charges, for stealing patient information from a Staten Island doctor's office and using the stolen data to create new debit cards and make cash withdrawals against the victim's accounts, as well as filing false income tax returns in order to steal refunds from the victims and the Internal Revenue Service.
July 16, 2013; U.S. Department of Justice: Florida Health Care Medical Director and Six Therapists Arrested for Alleged Roles in $63 Million Fraud Scheme
The former medical director at defunct health provider Health Care Solutions Network (HCSN) and six therapists were arrested today, accused of conspiring to fraudulently bill Medicare and Florida Medicaid more than $63 million.
July 16, 2013; U.S. Attorney; Eastern District of New York: Brooklyn Money Launderer Sentenced to 37 Months in Prison in Connection with $77 Million Medicare Fraud Scheme
BROOKLYN, NY - Earlier today, Anatoly Kraiter, 35, of Brooklyn, New York, was sentenced today to 37 months in prison for his role as a money launderer for a $77 million Medicare fraud scheme. In addition to the prison term, U.S. District Judge Nina Gershon of the Eastern District of New York sentenced Kraiter to three years of supervised release and ordered him to forfeit $100,000. Kraiter's surrender date is September 16, 2013.
July 16, 2013; U.S. Attorney; Middle District of Tennessee: Behavioral Analyst Pleads Guilty To Health Care Fraud
NASHVILLE, Tenn. - July 16, 2013 - Jenny Lynn Hall, formerly known as Jenny Lynn Unterstein, 37, of Smithville, Tenn., pleaded guilty yesterday in U.S. District Court, to health care fraud, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
July 15, 2013; U.S. Attorney; Eastern District of Tennessee: Morristown Dentist Indicted For TennCare Fraud
GREENEVILLE, Tenn. - On Jul. 9, 2013, a federal grand jury in Greeneville returned an indictment against Gary Dean Stump, D.M.D., 57, of Bean Station, Tenn., charging him with health care fraud for submitting false claims to TennCare's program for dental services to children, TennDent.
July 15, 2013; U.S. Attorney; District of South Dakota: Kadoka Man Indicted For Burglary, Destruction of Government Property and Theft
United States Attorney Brendan V. Johnson announced that a Kadoka, South Dakota, man has been indicted by a federal grand jury for allegedly unlawfully entering the Indian Health Service Clinic at Wanblee and stealing prescription pills on July 5, 2013.
July 12, 2013; U.S. Attorney; Western District of North Carolina: Owner of Charlotte Behavioral Health Company Sentenced To Two Years in Prison for $400,000 Medicaid Fraud Scheme
CHARLOTTE, N.C. - A Charlotte man and owner of a behavioral health company was sentenced on Thursday, July 11, 2013, to serve 24 months in prison for attempting to obtain nearly $400,000 in fraudulent reimbursement claims from North Carolina Medicaid, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Gregory Benny Lassiter, Jr., 32, of Charlotte, was also ordered to remain under court supervision for two years, following his prison term.
July 11, 2013; U.S. Attorney; Eastern District of Missouri: University City Doctor Sentenced For Overbilling Medicare And Medicaid
St. Louis, MO - DR. WIT A. JAMRY was sentenced to one year and a day and ordered to pay restitution of $119,000 and a fine of $30,000 for billing Medicare and Medicaid for services he had not performed. His company Dr. Wit-Internal Medicine Professional Geriatric, P.C. was ordered to pay $119,000 in restitution.
July 11, 2013; U.S. Attorney; Southern District of Illinois: Program Fraud Indictments Announced
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, and Gerald Roy, Special Agent in Charge, United States Department of Health and Human Services, Office of Inspector General, Office of Investigations for Region 7 (Kansas City office), announced today a second wave of indictments arising out of the abuse of a Medicaid program in Illinois that pays personal assistants to assist Medicaid recipients with general household activities and personal care. The program is intended for recipients under 60 years of age and is ostensibly designed to reduce Medicaid expenditures by avoiding more expensive institutional care, including nursing home care.
July 11, 2013; U.S. Attorney; Central District of California: Ventura County-based Amgen Inc. Pays Over $15 Million to Resolve Allegations that it Illegally Marketed Cancer Drug with Kickbacks
LOS ANGELES - Biopharmaceutical company Amgen Inc. today paid the United States more than $15 million to resolve allegations that the Ventura County company provided illegal financial incentives to physicians and physician groups to induce them to prescribe the cancer drug Xgeva.
July 11, 2013; U.S. Attorney; Southern District of Texas: RGV DME Owner Gets 12 Years in Federal Prison for $11 Million Health Care Fraud Scheme
McALLEN, Texas - The owner of a now defunct McAllen area durable medical equipment (DME) business has been ordered to prison for his role in a conspiracy and scheme to defraud Medicare and Medicaid through fraudulent billings, United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott announced today. The scheme involved approximately $11.1 million in false claims to Medicare and Medicaid.
July 11, 2013; U.S. Attorney; District of New Jersey: Cardiologist sentenced to prison for taking cash kickbacks for patient referrals
NEWARK, N.J. - An Edison, N.J., cardiologist was sentenced today to 30 months in prison for referring patients for diagnostic testing in exchange for cash kickbacks as part of a cash-for-patients scheme with a diagnostic facility in Orange, N.J., U.S. Attorney Paul J. Fishman announced.
July 11, 2013; U.S. Attorney; Southern District of New York: Former Chief Executive Officer Of Hospital For Special Surgery Pleads Guilty In Manhattan Federal Court To Fraudulent Kickback Scheme
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOHN R. REYNOLDS, the former Chief Executive Officer ("CEO") of the Hospital for Special Surgery (the "Hospital"), pled guilty today in Manhattan federal court to participating in a fraudulent scheme in which he was paid nearly $300,000 in undisclosed kickbacks from a subordinate Hospital employee. REYNOLDS, who was arrested in September 2012, also pled guilty to making false statements to a law enforcement agent. U.S. Magistrate Judge Debra Freeman presided over today's plea proceeding.
July 11, 2013; U.S. Attorney; Middle District of Alabama: Wetumpka Woman Pleads Guilty to Health Care Fraud
Montgomery, Alabama - LaShawn Denise Anthony, 42, of Wetumpka, entered a guilty plea today to one count of health care fraud, admitting that she and her business had falsely billed Alabama Medicaid, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. Anthony had been scheduled to go to trial on July 22, 2013, on the indictment returned against her in December 2012.
July 10, 2013; U.S. Attorney; Eastern District of Michigan: United States Intervenes in Health Care Fraud Action and Obtains $4 Million in Settlement
The United States will receive $4 million in settlement of a lawsuit brought under the False Claims Act against a cardiology practice and a hospital in Jackson, Michigan, United States Attorney Barbara L. McQuade announced today. McQuade was joined in the announcement by Lamont Pugh,III, Special Agent in Charge, Department of Health and Human Services Office of Inspector General ("HHS-OIG") and Robert D. Foley, III, Special Agent in Charge, FBI Detroit Field Division.
July 10, 2013; U.S. Attorney; Eastern District of Michigan: Jury Convicts Podiatrist, Psychologist And Pharmacist In Health Care Fraud Case
A podiatrist, a psychologist and a pharmacist were convicted today in federal court in Detroit, Michigan for health care fraud and controlled substance distribution, United States Attorney Barbara L. McQuade announced today.
July 9, 2013; U.S. Attorney; South Carolina: Federal Grand Jury Indictments: Andrews Woman Indicted for Health Care Fraud
Queen Edwards Nesmith, age 53, of Andrews, South Carolina, was charged in a two count Indictment with Health Care Fraud in violation of Title 18, United States Code, Section 1347, and Aggravated Identity Theft in violation of Title 18, United States Code, Section 1028A. The maximum penalty for the Health Care Fraud is 10 years imprisonment and a fine of $250,000, and the Aggravated Identity Theft carries a mandatory two-year prison term.
July 9, 2013; U.S. Attorney; Eastern District of Pennsylvania: Philadelphia Doctor Pleads Guilty to Running Pill Mill
PHILADELPHIA - Kermit Gosnell, 72, of Philadelphia, pleaded guilty today to 12 counts in connection with running a pill mill out of his clinic located at 3801-3805 Lancaster Avenue in Philadelphia. Gosnell pleaded guilty to conspiracy to distribute controlled substances, including oxycodone, alprazolam, and codeine; distribution and aiding and abetting the distribution of oxycodone; and maintaining a place for the illegal distribution of controlled substances. U.S. District Court Judge Cynthia M. Rufe scheduled a sentencing hearing for October 4, 2013. He faces an advisory sentencing guideline range of 292 to 365 months in prison.
July 8, 2013; U.S. Department of Justice: US Joins False Claims Act Lawsuit Alleging Illegal Physician Compensation by Mobile, Ala., Health Firm
The government has intervened in a False Claims Act lawsuit against Infirmary Health System Inc. and its related entities: IMC-Diagnostic and Medical Clinic P.C., Diagnostic Physicians Group P.C. and Infirmary Medical Clinics P.C., the Department of Justice announced today. The lawsuit alleges that IMC-Diagnostic and Medical Clinic, in Mobile, Ala., billed Medicare for services referred by Diagnostic Physicians Group physicians, in violation of the Stark Law and Anti-Kickback Statute. IMC-Diagnostic and Medical Clinic is owned by Infirmary Medical Clinics, a subsidiary of Infirmary Health System, also based in Mobile.
July 8, 2013; U.S. Department of Justice: Supervisor of $63 Million Health Care Fraud Scheme Sentenced in Florida to 10 Years in Prison
A former supervisor at defunct health provider Health Care Solutions Network Inc. (HCSN) was sentenced today in Miami to serve 10 years in prison for her central role in a fraud scheme that resulted in more than $63 million in fraudulent claims to Medicare and Florida Medicaid.
July 3, 2013; U.S. Department of Justice: Tacoma, Wash., Medical Firm to Pay $14.5 Million to Settle Overbilling Allegations
WASHINGTON - Sound Inpatient Physicians Inc. will pay $14.5 million to settle allegations that it overbilled Medicare and other federal health care programs, the Justice Department announced today. Sound Physicians is a Tacoma, Wash.-based provider of hospitalists and other physicians to hospitals and other medical facilities. It employs more than 700 hospitalists and post-acute physicians, who provide services at 70 hospitals and a growing network of post-acute facilities in 22 states.
July 3, 2013; U.S. Department of Justice: North Carolina-Based Trans1 to Pay U.S. $6 Million to Settle False Claims Act Allegations
Medical device manufacturer TranS1 Inc., now known as Baxano Surgical Inc., has agreed to pay the United States $6 million to resolve allegations under the False Claims Act that the company caused health care providers to submit false claims to Medicare and other federal health care programs for minimally-invasive spine surgeries, the Justice Department announced today.
July 2, 2013; U.S. Attorney; Southern District of Florida: Defendant Pleads Guilty to Health Care Fraud in Connection with HIV Infusion Clinic
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced that defendant Jorge Alipio Perez Villa pleaded guilty yesterday to one count of healthcare fraud for his participation in a healthcare fraud scheme involving a purported HIV infusion clinic. Sentencing is scheduled for September 9, 2013 before U.S. District Judge Joan A. Lenard
July 2, 2013; U.S. Department of Justice: Fifty-Five Hospitals to Pay U.S. More Than $34 Million to Resolve False Claims Act Allegations Related to Kyphoplasty
Fifty-five hospitals located throughout twenty-one states have agreed to pay the United States a total of more than $34 million to settle allegations that the health care facilities submitted false claims to Medicare for kyphoplasty procedures, the Justice Department announced today. Kyphoplasty is a minimally-invasive procedure used to treat certain spinal fractures that often are due to osteoporosis.
July 2, 2013; U.S. Attorney; Eastern District of Tennessee: Johnson City Physicians to Pay $4.25 Million to Resolve Civil False Claims Allegations Re Unapproved Foreign Drugs
GREENEVILLE, Tenn.- William R. Kincaid, M.D., Millard R. Lamb, M.D., and Charles O. Famoyin, M.D., former partners in East Tennessee Hematology-Oncology Associates, P.C., d/b/a McLeod Cancer and Blood Center (McLeod Cancer) in Johnson City, Tenn., have agreed to pay via separate settlement agreements $4.25 million, plus interest, to resolve allegations that they violated the False Claims Act by knowingly submitting or causing the submission to the Medicare and TennCare/Medicaid programs of false claims for misbranded, unapproved chemotherapy drugs that were administered through the McLeod Cancer clinic.
July 1, 2013; U.S. Department of Justice: Los Angeles Medical Supply Company Owner Sentenced to Five Years in Prison for $8.4 Million Medicare Fraud Scheme
The owner and operator of a durable medical equipment (DME) supply company was sentenced today to serve five years in prison in connection with a health care fraud scheme involving Latay Medical Services, a DME company based in Gardena, Calif.
July 1, 2013; U.S. Department of Justice: Los Angeles-Area Doctor and Patient Recruiter Plead Guilty to Participating in a Power Wheelchair Scheme That Defrauded Medicare of Over $10.1 Million
A Los Angeles-area doctor and a patient recruiter pleaded guilty today for their roles in a power wheelchair fraud scheme that defrauded Medicare of over $10.1 million.
July 1, 2013; U.S. Attorney; Western District of Kentucky: Operators of University of Louisville Hospital to Pay $2,833,408.60 to Settle False Medicare Billings
LOUISVILLE, Ky. - University Medical Center, doing business as University of Louisville Hospital, has voluntarily entered into a settlement agreement with the United States to pay $2,833,408.60 to settle allegations that it submitted or caused to be submitted false claims for payment to the Medicare program in violation of the Federal False Claims Act, announced David J. Hale, United States Attorney for the Western District of Kentucky, and the Office of Inspector General of the Department of Health and Human Services.

June 2013

June 28, 2013; U.S. Attorney; Central District of California: Owner of Rehabilitation Facility Pleads Guilty to Mail Fraud Charge
SANTA ANA, California - The owner and chief executive officer of a comprehensive outpatient rehabilitation facility pleaded guilty today to mail fraud for submitting claims to Medicare for services that were not prescribed by treating doctors.
June 28, 2013; U.S. Attorney; Southern District of California: Local Oncology Practice Sentenced To Pay Millions for Medicare Fraud
The La Jolla oncology practice known as Joel I. Bernstein, M.D., Inc. was sentenced today to pay a $500,000 fine, forfeit $1.2 million and make restitution to Medicare in the amount of $1.7 million for purchasing unapproved foreign cancer drugs and billing Medicare as if the drugs were legitimate.
June 28, 2013; U.S. Department of Justice: Executives from Miami-Area Mental Health Care Hospital Convicted for Participating in $70 Million Medicare Fraud Scheme
WASHINGTON - A federal jury today convicted four individuals for their participation in a Medicare fraud scheme involving nearly $70 million in fraudulent billings by Hollywood Pavilion (HP), a mental health care hospital.
June 27, 2013; US Department of Justice: Former Department of Health and Human Services Employee Sentenced to Prison for Wire Fraud Scheme
A former employee of the Department of Health and Human Services' Office of the Assistant Secretary for Preparedness and Response (HHS-ASPR) was sentenced today to serve six months in prison for his role in a scheme to defraud the United States by submitting fraudulent employment offers in order to claim retention bonuses totaling $138,875, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division.
June 26, 2013; U.S. Attorney; Northern District of Texas: Former Owner of Local Durable Medical Equipment Company is Sentenced to 35 Months in Federal Prison for Defrauding Medicare and Medicaid
Dallas - Philip Odoemena, 60, the former owner/operator of Kingsway Medical Systems, Inc., (Kingsway) was sentenced today by U.S. District Judge Barbara M. G. Lynn to 35 months in federal prison and ordered to pay $483,995 in restitution, following his guilty plea in September 2012 to one count of health care fraud. Odoemena has been in custody since his arrest in early May 2012. Today's announcement was made by U.S. Attorney Sarah R. Salda�a of the Northern District of Texas.
June 26, 2013; U.S. Attorney; Southern District of Ohio: Owners of Lawrence County Medical Clinics Charged With Health Care Fraud
Cincinnati - A federal grand jury has charged four people with health care fraud, alleging that they improperly charged government insurance programs for medically unnecessary procedures in connection with two medical clinics they owned and operated in Coal Grove, Ohio.
June 26, 2013; U.S. Attorney; District of Connecticut: Guilford Podiatrist Pleads Guilty To Medicare Fraud
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that Richard Sokoloff, 70, of Guilford, waived his right to indictment and pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to one count of health care fraud.
June 25, 2013; U.S. Attorney; Northern District of West Virginia: West Virginia Doctor Convicted of Health Care Fraud
Wheeling, West Virginia - A North Central West Virginia doctor was convicted today of twenty-two felony charges related to health care fraud, bankruptcy fraud, and the filing of false tax returns.
June 25, 2013; U.S. Attorney; Southern District of Texas: Austin Doctor Charged with Defrauding Medicare of $2 Million in Less than Two Months
HOUSTON - Dr. Dennis B. Barson Jr., 40, and his medical clinic administrator, Dario Juarez, 53, have been charged in a 20-count indictment alleging a conspiracy to defraud Medicare of $2.1 million in less than two months, United States Attorney Kenneth Magidson announced today.
June 24, 2013; U.S. Attorney; Southern District of California: Owner of Medical Supply Company Sentenced To Prison for His Role in Million-Dollar Power Wheelchair Scams
United States Attorney Laura E. Duffy announced that Jose Melendez, the owner and operator of Oceanside Medical Services, was sentenced to 18 months in prison today for his involvement in a health care fraud conspiracy that resulted in over $1 million in false claims to the Medicare trust fund. Melendez was also ordered to pay $593,429.81 in restitution, and will be on supervised release for three years after completing his custodial sentence.
June 24, 2013; U.S. Attorney; Northern District of Georgia: Atlanta Doctor Convicted For Health Care Fraud, Tax Evasion and Money Laundering
ATLANTA - After a two-week trial, a federal jury has convicted Lawrence Eppelbaum, 54, of Roswell, Georgia on health care fraud, tax fraud and money laundering in relation to a scheme in which he illegally induced patients from all over the country to be treated at his medical clinic in Atlanta by providing free travel accommodations through a purported charitable entity that he controlled.
June 21, 2013; U.S. Attorney; District of Maine: Former Portland Podiatrist Sentenced on Drug and Health Care Fraud Charges
Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Dr. John B. Perry, 52, of Cumberland, was sentenced today in United States District Court by Judge George Singal to 8 years in prison for conspiracy, unlawful distribution of oxycodone and health care fraud. Perry pled guilty to the charges on December 4, 2012.
June 21, 2013; U.S. Attorney; Eastern District of Michigan: Detroit-Area Doctors Charged with Illegal Distribution of Prescription Drugs and Health Care Fraud
An indictment was unsealed today charging Dr. Hussein "Sam" Awada, 43, and Dr. Luis Collazo, 53, with the illegal distribution of prescription drugs and health care fraud, United States Attorney Barbara L. McQuade announced today.
June 20, 2013; U.S. Attorney; Western District of Washington: Lakewood Oncologist to Pay $3.1 Million to Settle Health Care Fraud Claims
Dr. Alfred H. Chan, an oncologist in Lakewood, Washington, and his family, have agreed to pay the United States $3.1 million to settle allegations that he and his wife defrauded federal health care programs by significantly and repeatedly overbilling for cancer treatment medications. From at least April 2006 through April 2009, the government contends that Dr. Chan and his wife Judy Chan intentionally inflated claims to Medicare, TRICARE, and other federal health care programs, resulting in a loss to the government estimated at over $1 million. Today's settlement represents a recovery of almost three times the estimated loss to federal health care programs.
June 20, 2013; U.S. Attorney; Southern District of Texas: Houston Man Arrested in Health Care Fraud Scheme
HOUSTON - Mathew U. Okorocha, 63, has been indicted on charges of conspiracy to commit health care fraud, United States Attorney Kenneth Magidson announced today. Okorocha, of Houston, joins Lawrence T. Tyler, 41, also of Houston, in a 10-count superseding indictment, returned June 12, 2013.
June 20, 2013; U.S. Attorney; Middle District of Florida: Straw Owner of Venice Physical Therapy Clinic Pleads Guilty to Conspiracy to Commit Health Care Fraud
TAMPA-United States Attorney Robert E. O'Neill announces that Roberto Fernandez Gonzalez (63, Naples) pleaded guilty today to conspiracy to commit health care fraud. Gonzalez faces a maximum penalty of 10 years in federal prison.
June 20, 2013; U.S. Attorney; District of Maryland: Employee Pleads Guilty To Theft of Government Property
Greenbelt, Maryland - Mary Michelle Thompson, age 42, of Glen Burnie, Maryland, pleaded guilty today to theft of government property in connection with her misuse of her government credit card. The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Elton Malone, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Special Investigations Branch.
June 19, 2013; U.S. Attorney; Western District of North Carolina: Charlotte Woman Sentenced To 5 Years in Prison for $650,000 Medicaid Fraud Scheme
CHARLOTTE, N.C. - Chief U.S. District Court Judge Frank D. Whitney sentenced a Charlotte woman on Tuesday, June 18, 2103, to serve 60 months in prison and two years under court supervision for defrauding Medicaid of $650,000, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Charlotte Elizabeth Garnes, 39, of Charlotte, was also ordered to pay $792,184.52 in restitution.
June 18, 2013; U.S. Attorney; Eastern District of New York: Brooklyn Licensed Home Health Care Services Agency Pays One Million Dollars to Settle Civil Fraud Claims That it Provided Unqualified Home Health Aides to Medicaid Recipients
The United States and New York State have entered into settlement agreements with Parkshore Home Health Care, LLC, d/b/a Renaissance Home Health Care, Inc. ("Renaissance"), a Brooklyn-based licensed home health care services agency. These settlements resolve allegations that Renaissance provided unqualified home health aides to home health agencies, who in turn sent these unqualified aides into the homes of Medicaid recipients throughout New York City and then billed the Medicaid program for their services. Under the terms of the agreements, Renaissance will pay a total of $1,000,000.
June 18, 2013; U.S. Attorney; Eastern District of Texas: Beaumont Orthodontist Guilty of Health Care Fraud Violations
BEAUMONT, Texas - A 70-year-old Beaumont orthodontist has pleaded guilty to health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
June 18, 2013; U.S. Attorney; Southern District of Texas: Ambulance Company Owner and Operator Heads to Federal Prison
HOUSTON - Julian Kimble, 48, has been handed a federal prison sentence following his convictions for conspiracy to commit health care fraud, conspiracy to commit money laundering and tax evasion, United States Attorney Kenneth Magidson announced today. Kimble pleaded guilty to these federal crimes on Nov. 29, 2011.
June 18, 2013; U.S. Attorney; Northern District of Georgia: Medical Business Owner Indicted for Medicaid Fraud
ATLANTA - Jennifer C. Alsdorf has been indicted on charges of health care fraud and wire fraud for filing over $500,000 in fraudulent claims with the Georgia Medicaid program.
June 17, 2013; U.S. Attorney; Eastern of Texas: Former Shelby County Couple Indicted for Health Care Fraud Violations
BEAUMONT, Texas - A Center, Texas, couple now living in Elgin, Texas, has been indicted and charged with health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. Bill Harvill, 59, and his wife, Cathy Harvill, 56, were indicted by a federal grand jury on Mar. 27, 2013, and charged with theft of government money. They were arrested on June 7, 2013, in Elgin, Texas, and appeared before U.S. Magistrate Zachary J. Hawthorn today for an initial appearance. According to the indictment, from January 2007 to June 2010, the Harvills submitted false and fraudulent claims to Medicare and Medicaid in order to receive more than $624,000 from the Department of Health and Human Services.
June 17, 2013; U.S. Department of Justice: Owner of Louisiana-based Health Care Company Sentenced in Texas to 97 Months in Prison in Connection with $6.7 Million Medicare Fraud Scheme
The owner and operator of a Louisiana-based durable medical equipment (DME) company was sentenced today to serve 97 months in prison for his role in a $6.7 million Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Kenneth Magidson of the Southern District of Texas; and Special Agent in Charge Mike Fields of the Dallas Regional Office of the U.S. Department of Health and Human Service's Office of the Inspector General
June 14, 2013; U.S. Attorney; Eastern District of New York: Former New York State Senate Majority Leader Pedro Espada, Jr. Sentenced To Five Years'
Imprisonment
Earlier today, Pedro Espada, Jr. was sentenced before Judge Frederic Block in U.S. District Court in Brooklyn, New York, to five years' imprisonment, to be followed by three years of supervised release, for theft of federal funds from Bronx-based non-profit healthcare clinics, and lying on his 2005 personal tax return. As part of that sentence, Judge Block ordered Espada to serve 100 hours of community service, restitution to the Internal Revenue Service in the amount of $118,531, restitution to the victims of his thefts in an amount to be determined, and forfeiture of $368,088. The court remanded Espada to the custody of the Bureau of Prisons. Espada is a former New York State Senator for the 33rd Senate District in the Bronx, who served as the New York State Senate Majority Leader from 2009 to 2010.
June 14, 2013; U.S. Attorney; District of Connecticut: Federal Jury Finds Brookfield Podiatrist Guilty of Medicare Fraud
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut; Susan J. Waddell, Special Agent in Charge of U.S. Health and Human Services, Office of Inspector General for New England; and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, today announced that a federal jury in Hartford has found Samir Zaky, 38, of Brookfield, guilty of 14 counts of health care fraud and 14 counts of making false statements relating to health care matters.
June 14, 2013; U.S. Attorney; District of Maryland: Hagerstown Pharmacist Pleads Guilty To Health Care Fraud for Improperly Billing Medicare and
Medicaid
Baltimore, Maryland - David Russo, age 62, of Hagerstown, Maryland pleaded guilty today to health care fraud in connection with a scheme to defraud Medicare and Medicaid by billing for prescriptions that Russo knew were not written for a legitimate medical purpose.
June 13, 2013; U.S. Attorney; Southern District of Florida: Former CEO of Miami Beach Community Health Center Sentenced in Six Million Dollar Scam
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, announced the sentencing of defendant Kathryn Abbate, 64, of Hollywood, FL, to 42 months in prison, to be followed by 3 years of supervised release.
June 12, 2013; U.S. Attorney; District of Massachusetts: Virginia Doctor Indicted for Perjury in Orthofix Investigation
BOSTON - A Virginia woman was charged today with making a false declaration to a grand jury. Ilene Terrell, 65, of Fredericksburg, Va., was indicted with making a false declaration to a grand jury. The indictment alleges that Terrell, a podiatrist, and representatives of Orthofix, Inc., manipulated patient medical records to induce Medicare to pay for claims for Orthofix bone growth stimulator medical devices that did not meet Medicare's payment guidelines. When Terrell was asked about these matters before the grand jury, she lied, claiming that she was not aware that any records had been manipulated.
June 12, 2013; U.S. Attorney; District of New Jersey: Internist Admits Taking Cash Kickbacks for Patient Referrals
NEWARK, N.J. - A Somerset County doctor practicing internal medicine at Newark Community Health Center, where she is the clinical director, today admitted receiving cash kickbacks for diagnostic testing referrals of her patients, U.S. Attorney Paul J. Fishman announced.
June 12, 2013; U.S. Attorney; Western District of Louisiana: Shreveport Doctor Sentenced For Health Care Fraud
SHREVEPORT, La. - United States Attorney Stephanie A. Finley announced that Edozie Chukwudinma Okereke, 57, of Shreveport, was sentenced Monday by U.S. District Judge S. Maurice Hicks Jr. to 21 months in federal prison with three years' supervised release for health care fraud. Okereke was also ordered to pay $679,836 in restitution to Medicare.
June 12, 2013; U.S. Attorney; District of Minnesota: Apple Valley Woman Sentenced for Defrauding a Home Health Care Company and Medica
MINNEAPOLIS-Earlier today in federal court, an Apple Valley woman was sentenced for defrauding both her employer and Medica. United States District Court Judge David S. Doty sentenced Lori Jo Mueller, age 48, to 51 months on one count of wire fraud and one count of health care fraud in connection to the crime. Mueller was charged on January 9, 2013, and pleaded guilty on February 4, 2013. In her plea agreement, Mueller admitted that from June of 2006 through June of 2012, she embezzled approximately $840,000 from Edelweiss Home Health Care, using the funds for her personal use.
June 11, 2013; U.S. Attorney; Eastern District of Pennsylvania: Doctor Convicted of Running Pill Mill and Contributing to a Death
Philadelphia - A federal jury, today, found Dr. Norman Werther, 74, of Ft. Washington, PA, guilty of more than 300 counts, including distribution of a controlled substance resulting in death. In addition to the charge of distribution resulting in death, the jury found Werther guilty of 184 counts of illegally distributing oxycodone, 116 counts of money laundering, six counts of conspiracy to distribute controlled substances, and one count of maintaining a drug-involved premises.
June 11, 2013; U.S. Attorney; Northern District of Ohio: Cleveland Man Sentenced To 12 Years In Prison For Leading Ring That Obtained Blank Prescriptions, Forged Them And Sold The Painkillers
A Cleveland man was sentenced to 12 years in prison for leading a ring that obtained blank prescription pads that were used to fraudulently obtain thousands of prescription painkiller pills, law enforcement officials announced today. Louis Eppinger, 53, led a conspiracy that forged prescriptions for Oxycontin and Percocet pills, hired people to have them filled at pharmacies throughout the region, then sold the pills on the street, according to court documents. He previously pleaded guilty to conspiracy to possess with intent to distribute Oxycodone, health care fraud and aggravated identity theft.
June 10, 2013; U.S. Department of Justice: Four Former WellCare Executives Found Guilty in Florida
A federal jury in Tampa found four former executives of WellCare Health Plans Inc., a health maintenance organization (HMO) operator, guilty of various charges, including health care fraud, making false statements relating to health care matters and making false statements to a law enforcement officer, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney Robert E. O'Neill of the Middle District of Florida and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations Miami office.
June 10, 2013; U.S. Attorney; District of New Jersey: President of New Jersey Clinical Laboratory, Six Salesmen Admit Bribing Doctors for More Than $100 Million in Test Referrals
NEWARK, N.J. - The president of Parsippany, N.J.-based Biodiagnostic Laboratory Services LLC (BLS), three BLS employees and three associates admitted today to a conspiracy in which millions of dollars in bribes were paid to physicians over a number of years in exchange for blood sample referrals worth more than $100 million to the company, U.S. Attorney Paul J. Fishman announced.
June 6, 2013; U.S. Attorney; Northern District of Iowa: Cedar Rapids Dentist to Pay $100,000 to Resolve False Claims Act Allegations
Dennis Schuller, D.D.S., a Cedar Rapids dentist, has agreed to pay $100,000 to resolve allegations that he violated the False Claims Act by improperly billing the Medicaid system for certain x-rays and exams, medically unnecessary procedures, and other medically unnecessary items.
June 6, 2013; U.S. Department of Justice: Michigan Doctor Sentenced for Role in Medicare Fraud Scheme
Lansing-area resident Dr. Paul Kelly was sentenced to 18 months in prison today for his role in a $13.8 million Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Robert D. Foley III of the FBI's Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services, Office of Inspector General's Chicago Regional Office, made the announcement.
June 6, 2013; U.S. Attorney; Southern District of Texas: Stafford DME Owner Heads to Federal Prison for Health Care Fraud and Identity Theft
HOUSTON - Abdul Waheed Alex Shittu, 55, a naturalized United States citizen from the Federal Republic of Nigeria, has been sentenced to 81 months in federal prison following his convictions of conspiracy to commit health care fraud and aggravated identity theft, United States Attorney Kenneth Magidson announced today.
June 5, 2013; U.S. Attorney; Eastern District of Kentucky: London Physician Pleads Guilty to Health Care Fraud Charges in First Case of its Kind in Kentucky
FRANKFORT-A London, Kentucky cardiologist pleaded guilty to charges that he falsely recorded the severity of patients' illnesses in order to receive payment for numerous heart procedures. Sandesh Rajaram Patil, 51, a former cardiologist at St. Joseph's Hospital in London, admitted Tuesday in Frankfort to making false statements regarding the placement of heart stents. Stents are metal tubes surgically inserted into a patient's arteries in order to improve blood flow.
June 5, 2013; U.S. Attorney; District of South Dakota: California Man Sentenced for Failure to Pay Child Support
United States Attorney Brendan V. Johnson announced that a Livermore, California man charged with Failure to Pay Legal Child Support was sentenced on May 31, 2013 by U.S. Magistrate Court Judge John E. Simko.
June 5, 2013; U.S. Attorney; Northern District of California: San Jose Woman Sentenced To 13 Months in Prison for Role in Health Care Fraud Scheme
SAN JOSE - Gurinder Mand was sentenced today to 13 months in prison and ordered to pay $254,906.20 in restitution for her involvement in a health care fraud scheme operated out of a San Jose pharmacy, United States Attorney Melinda Haag announced.
June 5, 2013; U.S. Attorney; District of Connecticut: Substance Abuse Counselor Sentenced To Two Years in Federal Prison for Defrauding
Medicaid Program
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that Alan Emmett Bradley, 57, formerly of Norwalk, Conn., and Ocoee, Fla., was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 24 months of imprisonment, followed by two years of supervised release, for defrauding Connecticut's Medicaid program. Bradley also was ordered to pay $151,898.75 in restitution.
June 3, 2013; U.S. Attorney; District of Connecticut: Stealth Dental Clinic Operator Pleads Guilty To Health Care Fraud and Tax Evasion Offenses
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut; Susan J. Waddell, Special Agent in Charge of U.S. Health and Human Services, Office of Inspector General for New England, William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that Gary F. Anusavice, also known as "Gary Andrews," "Gary Andrus" and "Gary Francis," 60, of North Kingstown, R.I., pleaded guilty today before United States Magistrate Judge William I. Garfinkel in Bridgeport to health care fraud and tax evasion offenses stemming from his involvement in a $20 million Medicaid fraud scheme.
June 5, 2013; U.S. Attorney; District of Maryland: Lenny Cain Convicted in Oxycodone Conspiracy
Baltimore, Maryland - A federal jury today convicted Lenny Cain, age 36, of Baltimore, Maryland, for conspiracy to distribute and possess with intent to distribute oxycodone, and for possession with intent to distribute oxycodone. The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Anne Arundel County Police Acting Chief Lt. Colonel Pamela R. Davis; and Howard County Police Chief William McMahon.
June 3, 2013; U.S. Attorney; Eastern District of Pennsylvania: Doctor Convicted In Kickback Scheme Involving A Philadelphia Hospice
PHILADELPHIA - A federal jury has returned guilty verdicts against Eugene Goldman, M.D., 55, of Philadelphia, on one count of conspiring to violate the anti-kickback statute and four counts of violating the anti-kickback statute in relation to his role in a kickback scheme arising from his employment as the Medical Director at Home Care Hospice Inc. (HCH). U.S. District Court Judge Eduardo Robreno scheduled a sentencing hearing for September 9, 2013.
June 3, 2013; U.S. Attorney; Southern District of Texas: Local Physicians Sentenced Again - Must Pay More than $37 Million in Restitution
HOUSTON - Drs. Arun and Kiran Sharma, two local physicians previously sentenced for defrauding Medicare, Medicaid and more than a dozen private insurers, have appeared in federal court for a resentencing hearing on restitution and forfeiture issues, United States Attorney Kenneth Magidson announced today.

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