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February 2012

February 21, 2012; U.S. Attorney; Middle District of Pennsylvania: Former Monroe County Pharmacy Operator Pleads Guilty to Misbranding of Medication in Federal Court
The United States Attorney's Office for the Middle District of Pennsylvania, announced that the former owner of a pharmacy located in Sciota, Pennsylvania, Benny Salerno, age 38, of Stroudsburg, Pennsylvania, pleaded guilty to misbranding of pharmaceutical drugs at a hearing today in Wilkes Barre before United States District Court Judge A. Richard Caputo. Sentencing has been scheduled for May 24, 2012.
February 21, 2012; U.S. Attorney; Middle District of Pennsylvania: Former Penn State Professor Charged in $3 Million Federal Research Grant Fraud Pleads Guilty
The United States Attorney's Office for the Middle District of Pennsylvania announced that a former Penn State professor charged with a $3 million federal research grand fraud pleaded guilty today to all counts contained in the felony Information today in federal court before United States District Court Judge Christopher C. Conner, in Harrisburg.
February 21, 2012; U.S. Department of Justice: Fort Lauderdale, Florida-Area Halfway House Operator Sentenced to 33 Months in Prison for Participating in Fraud and Kickback Scheme
WASHINGTON - The manager and operator of a Fort Lauderdale, Fla.-area halfway house was sentenced today to 33 months in prison for his role in a Medicare fraud kickback scheme that funneled patients to a fraudulent mental health provider, American Therapeutic Corporation (ATC), announced the Department of Justice, FBI and Department of Health and Human Services.
February 21, 2012; U.S. Attorney; District of Idaho: Illinois Man Sentenced for Failing to Pay more than $50,000 in Child Support
BOISE - Rusty D. Haile, 47, of Keens, Illinois, was sentenced in federal court in Boise today for felony willful failure to pay a court-ordered child support obligation, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill sentenced Haile to five years probation and ordered him to pay $119,700.44 in restitution, the amount of his outstanding child support obligation. Haile pled guilty on November 28, 2011.
February 17, 2012; U.S. Attorney; District of Maine: Former PIN Rx Pharmacist Pleads Guilty to Kickback and Tax Charges
Portland, Maine - United States Attorney Thomas E. Delahanty II announced today that Reginald S. Gracie, Jr., age 40, of Bowdoin, Maine, pleaded guilty today in the U.S. District Court, in Portland, before Chief Judge John A. Woodcock, Jr., to corruptly soliciting and receiving kickbacks as an agent of an organization that received federal funds, and filing false federal income tax returns, all of which was relating to his employment at PIN Rx, a mail order pharmacy operated by the Penobscot Indian Nation in 2005 and 2006.
February 17, 2012; U.S. Attorney; District of Rhode Island: Medical Equipment Sales Rep Pleads Guilty to Federal Charge of Health Care Fraud
PROVIDENCE, R.I. - Sonja Ascoli, 59, of Woonsocket, R.I., pled guilty in U.S. District Court in Providence today to defrauding the federal Medicare program of more than $70,000, announced United States Attorney Peter F. Neronha.
February 16, 2012; U.S. Attorney; District of Kansas: Texas Man Convicted of Medicare Fraud in Kansas
KANSAS CITY, KS-A Texas man has been convicted of fraudulently billing Medicare for power wheelchairs and other medical devices, U.S. Attorney Barry Grissom said today.
February 14, 2012; U.S. Attorney; Southern District of Alabama: Four Convicted In Multi-Million Dollar Hemophilia Medication Kickback Scheme
United States Attorney Kenyen R. Brown announces today that a federal jury has convicted Lori Brill, Butch Brill, Jeff Vernon, and Chris Vernon of various charges arising out of their participation in a scheme to bill Alabama Medicaid for unnecessary hemophilia medication and to supply inducements, in the form of illicit commission payments, for Medicaid referrals.
February 14, 2012; U.S. Department of Justice: Two Houston-Area Nurses Sentenced to More Than Five Years in Prison for Roles in $5.2 Million Medicare Fraud Scheme
WASHINGTON - Two Houston-area nurses and two of their co-conspirators have been sentenced in Houston for their participation in a $5.2 million Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Service.
February 14, 2012; U.S. Attorney; Northern District of New York: Dead Beat Dad Sentenced
Albany, New York -United States Attorney Richard S. Hartunian, announced that Donald K. Tatro, age 42, of Pittsfield, Massachusetts, was sentenced by Senior United States District Court Judge Thomas J. McAvoy, in Federal District Court in Albany, on his guilty plea to one count of failure to pay child support. Tatro was sentenced to 5 years probation, 6 months of home detention, and ordered to make monthly payments of $345.00 toward an outstanding balance of $46,710.87.
February 13, 2012; U.S. Department of Justice: Co-Owner of Two Los Angeles-Area Health Care Companies Sentenced to 96 Months in Prison for Health Care Fraud
WASHINGTON - The co-owner of two Los Angeles-area health care companies was sentenced today to 96 months in prison for his conviction stemming from a nine-year scheme to defraud Medicare, announced the Departments of Justice and Health and Human Services.
February 10, 2012; U.S. Attorney; Northern District of California: Five Defendants Arrested For Medicare Fraud Scheme
SAN FRANCISCO - Agents from the Federal Bureau of Investigation and Office of Inspector General of the Department of Health and Human Services have arrested five defendants, including a medical doctor, for their participation in a fraud scheme involving more than $2.4 million in fraudulent Medicare billings, announced United States Attorney Melinda Haag; Stephanie Douglas, Special Agent in Charge of the Federal Bureau of Investigation in San Francisco; and Glenn R. Ferry, Special Agent in Charge for the Los Angeles Region's Office of Inspector General of the Department of Health and Human Services. The defendants were arrested on Feb. 9, 2012, and made their initial appearances in federal court that same day.
February 10, 2012; U.S. Attorney; District of South Dakota: Hudson Woman Charged with Obtaining Controlled Substances by Fraud and Health Care Fraud
US Attorney Brendan V. Johnson announced that a Hudson, South Dakota, woman has been indicted by a federal grand jury for Obtaining Controlled Substances by Fraud and Health Care Fraud.
February 10, 2012; U.S. Attorney; District of Rhode Island: Nationwide Supplier of Medical Equipment Sentenced to 37 Months in Federal Prison for Health Care Fraud, Money Laundering & Selling Adulterated and Misbranded Medical Devices
PROVIDENCE, R.I. - Gary Winner, 50, of Northbrook, Ill., owner of Planned Eldercare, a nationwide supplier of durable medical equipment located in Buffalo Grove, Ill., was sentenced today in U.S. District Court in Providence to 37 months in federal prison for defrauding the Medicare program of more than $2.2 million, announced U.S. Attorney Peter F. Neronha.
February 9, 2012; U.S. Attorney; District of Maine: Former Portland Podiatrist Indicted on Drug and Health Care Fraud Charges
Portland, Maine - United States Attorney Thomas E. Delahanty II announced today that a federal grand jury sitting in Portland indicted John B. Perry, age 50, currently of Bridgton, Maine, on drug and health care fraud charges. Perry is charged with one count of conspiracy to distribute oxycodone, one count of health care fraud, and forty-three counts of unlawful distribution of a controlled substance.
February 9, 2012; U.S. Department of Justice: Former DME Company Owner Lands in Federal Prison
HOUSTON - Bassey Essien, the former co-owner of Durable Medical Equipment (DME) companies Logic World Medical and Roben Medical in Houston, has been sentenced to 99 months in federal prison for defrauding the Texas Medicaid program, United States Attorney Kenneth Magidson announced today along with Texas Attorney General Greg Abbott. During sentencing this afternoon, U.S. District Judge Grey Miller explained that the Medicaid beneficiaries whose identities had been unlawfully used to defraud the government, were also to be considered victims of the scheme to defraud.
February 8, 2012; U.S. Department of Justice: Dava Pharmaceuticals to Pay U.S. $11 Million to Settle False Claims Act Allegations
Dava Pharmaceuticals Inc. has agreed to pay the United States $11 million to settle allegations that it violated the False Claims Act by misreporting drug prices in order to reduce its Medicaid Drug Rebate obligations, the Justice Department announced today.
February 8, 2012; U.S. Department of Justice: Assistant Administrator of Houston Hospital Indicted for Alleged Role in $116 Million Medicare Fraud Scheme
WASHINGTON - An assistant administrator of a Houston hospital was arrested today on charges related to his alleged participation in a $116 million Medicare fraud scheme involving false claims for mental health treatment, announced the Department of Justice, the FBI and the Department of Health and Human Services.
February 7, 2012; U.S. Department of Justice: Fourteen Hospitals to Pay U.S. More Than $12 Million to Resolve False Claims Act Allegations Related to Kyphoplasty
Fourteen hospitals located in New York, Mississippi, North Carolina, Washington, Indiana, Missouri and Florida have agreed to pay the United States a total of more than $12 million to settle allegations that the health care facilities submitted false claims to Medicare, the Justice Department announced today.
February 7, 2012; U.S. Attorney; Eastern District of Michigan: United States Recovers $6 Million in Cash and Property From Troy Laboratories and Owners Who Defrauded Medicare on Laboratory Tests
DETROIT - Three Troy laboratory companies will pay $6 million in cash and property to the U.S. government to resolve allegations that they violated the False Claims Act, U.S. Attorney Barbara L. McQuade announced today.
February 7, 2012; U.S. Department of Justice: Los Angeles Man Sentenced to 77 Months in Prison for Medicare Fraud Scheme Resulting in More Than $18.9 Million in Fraudulent Claims to Medicare
WASHINGTON - A Los Angeles-area man was sentenced yesterday to 77 months in prison for organizing and leading a medical clinic fraud scheme that used the stolen identities of physicians to submit more than $18.9 million in fraudulent claims to Medicare, the Department of Justice, the FBI and the Department of Health and Human Services announced.
February 7, 2012; Western District of North Carolina: Charlotte Woman Sentenced To 34 Months In Prison for Health Care Fraud
CHARLOTTE, NC-A Charlotte woman was sentenced yesterday in U.S. District Court to serve 34 months in prison to be followed by three years of supervised release for committing health care fraud, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Frank D. Whitney also ordered Darlene Hughes, 53, of Charlotte, to pay total restitution in the amount of $194,436.61.
February 6, 2012; U.S. Attorney; Southern District of Ohio: Owner and Employee of Columbus Pain Clinics Sentenced To 144 Months for Illegally Distributing Thousands of Pain Pills
COLUMBUS - Danette M. Hawthorne, 49, of Columbus was sentenced in U.S. District Court here today to 144 months in prison for distributing prescriptions for the equivalent of more than 11,000 dosages of pain medicine without a legitimate medical need for the prescriptions and fraudulently billing a government insurance program for the drugs. Hawthorne owned two Columbus clinics, Trinity Medical Center, LLC, and Perspective Medical Solutions, Inc.
February 6, 2012; U.S. Attorney; Southern District of Texas: Brownsville Mother and Daughter-In-Law Guilty in Health Care Fraud Scheme
McALLEN, TX-Felicitas Velez Alanis, 51, and her daughter-in-law, Erika Ortega Alanis, 27, both of Brownsville, Texas, have entered pleas of guilty to conspiracy to commit health care fraud, United States Attorney Kenneth Magidson announced today along with Texas Attorney General Greg Abbott.
February 6, 2012; U.S. Department of Justice: Louisiana Patient Recruiter Pleads Guilty in Health Care Fraud Scheme
WASHINGTON - A Baton Rouge, La.,-area resident pleaded guilty today for his role in a Medicare fraud scheme involving false claims for unnecessary durable medical equipment, announced the Department of Justice, the FBI, the Department of Health and Human Services and the Louisiana State Attorney General's Office.
February 3, 2012; U.S. Attorney; Eastern District of Arkansas: Owner Of Former Little Rock Medical Equipment Business Sentenced For Health Care Fraud
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and Mike Fields, Special Agent in Charge of the Dallas Regional Office for the HHS Office of Inspector General announced today the sentencing of Archibong Edem-Effiong, age 58, of Houston, Texas. United States District Judge Brian S. Miller sentenced Edem-Effiong to 27 months imprisonment, two years supervised release, and restitution in the amount of $983,273.18. The sentencing follows Edem-Effiong's October 7, 2011 guilty plea to one count of health care fraud.
February 3, 2012; U.S. Department of Justice: Louisiana Medical Equipment Company Owner Pleads Guilty in $21 Million Fraud Scheme
WASHINGTON - An owner of multiple Baton Rouge medical equipment companies pleaded guilty today for her role in a Medicare fraud scheme involving false claims and illegal kickback payments for unnecessary durable medical equipment, announced the Department of Justice, the FBI, the Department of Health and Human Services and the Louisiana State Attorney General's Office.
February 3, 2012; U.S. Attorney; Southern District of Texas: Pharmacy Owner Pleads Guilty to Conspiring to Commit Health Care Fraud
McALLEN, Texas - Sara Elicia Garza, 55, of Mission, Texas, has been convicted of conspiracy to commit health care fraud, United States Attorney Kenneth Magidson announced today along with Texas Attorney General Greg Abbott. Garza is a pharmacist and the owner and operator of Sara's Pharmacy and Gift Corner located in Mission.
February 2, 2012; U.S. Department of Justice: Rehabilitation Agency Owner in Detroit Found Guilty for Role in $2 Million Therapy Fraud Scheme
WASHINGTON - The owner of a rehabilitation agency in Dearborn, Mich., was convicted today by a federal jury in Detroit for his leading role in a fraudulent Medicare therapy scheme, announced the Department of Justice, FBI and the Department of Health and Human Services.
February 2, 2012; U.S. Attorney; Southern District of Texas: DME Business Owner Lands in Federal Prison for 10 Years for Health Care Fraud and Identity Theft Scheme
McALLEN, Texas - Juan De Leon, 41, of Edinburg, Texas, and owner of United DME Inc. was sentenced today to 120 months in federal prison, without parole, for his role in a health care fraud and identity theft scheme, United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott announced today.
February 1, 2012; U.S. Attorney; Northern District of Alabama: Former Hospice Owner Sentenced for Health Care Fraud
BIRMINGHAM-A federal judge today sentenced a Muscle Shoals man to 28 months in prison for taking part in a health care fraud totaling more than $3 million in connection to a hospice care program he operated, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Patrick Maley and Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick Jackson.

January 2012

January 31, 2012; U.S. Department of Justice

Patient Recruiter Pleads Guilty in Louisiana Health Care Fraud Scheme
WASHINGTON - An Atlanta resident pleaded guilty today for his role in a Louisiana-based Medicare fraud scheme involving fraudulent claims for unnecessary durable medical equipment, announced the Department of Justice, the FBI, the Department of Health and Human Services and the Louisiana State Attorney General's Office.

January 31, 2012; U.S. Attorney; Middle District of Pennsylvania

Former Penn State Professor Charged in $3 Million Federal Research Grant Fraud
The United States Attorney's Office for the Middle District of Pennsylvania announced that a felony Information has been filed in United States District Court in Harrisburg against Craig Grimes, age 55, of Raleigh, North Carolina, charging him with wire fraud, false statements, and money laundering. During the time period alleged in the Information, Grimes resided in Boalsburg, Pennsylvania, and was a Professor of Material Science and Engineering at The Pennsylvania State University.

January 31, 2012; U.S. Department of Justice

Fort Lauderdale, Florida-Area Halfway House Owner Sentenced to 28 Months in Prison for Participating in Medicare Fraud Kickback Scheme
WASHINGTON - The owner and president of a Fort Lauderdale, Fla.-area halfway house company was sentenced today to 28 months in prison for her role in a kickback scheme that funneled patients to a fraudulent mental health provider, American Therapeutic Corporation, announced the Department of Justice, the FBI and the Department of Health and Human Services.

January 30, 2012; U.S. Attorney; Southern District of West Virginia

Man Sentenced To Six Years In Prison For Health Care Fraud Conspiracy
CHARLESTON, W.Va. - Sargis Tadevosyan, 42, an Armenian citizen, was sentenced today to a total of six years in prison by United States District Judge John T. Copenhaver, Jr. for conspiracy to commit health care fraud and aggravated identity theft. The Court sentenced the defendant to four years in prison for conspiracy to commit health care fraud and wire fraud and a mandatory consecutive two-year prison sentence for aggravated identity theft. After a four-day trial in November, Tadevosyan was found guilty of the two felony counts that were linked to a health care fraud scheme that intended to defraud more than $4 million from Medicare.

January 27, 2012; U.S. Attorney; Southern District of Texas

McAllen Area Health Care Marketer Arrested For Conspiracy and Anti-Kickback Violations
McALLEN, Texas - The owner of a purported health care resource center has been charged by a federal grand jury with one count of conspiracy to defraud the United States and two counts of soliciting and receiving kickback payments in violation of the federal anti-kickback statute, United States Attorney Kenneth Magidson announced today.

January 26, 2012; U.S. Department of Justice

Patient Recruiter Sentenced to 30 Months in Prison in Connection with $5.4 Million Medicare Fraud Scheme
WASHINGTON - A Miami resident was sentenced in Detroit today to 30 months in prison for his participation in a $5.4 million Detroit-area Medicare fraud scheme, announced the Department of Justice, FBI and Department of Health and Human Services.

January 26, 2012; U.S. Department of Justice

Owner and Employee of Miami Home Health Company Plead Guilty in $22 Million Health Care Fraud Scheme
WASHINGTON - The owner and an employee of a Miami health care agency pleaded guilty for their participation in a $22 million home health Medicare fraud scheme, the Department of Justice, the FBI and the Department of Health and Human Services announced today.

January 26, 2012; U.S. Attorney; Southern District of Texas

McAllen Area Health Insurance Agent Arrested in Mail Fraud/Identity Theft Scheme
McALLEN, Texas - A McAllen area insurance agent has been indicted on multiple counts of mail fraud and aggravated identity theft arising from a scheme to defraud several private insurance companies offering Medicare Advantage plans and other insurance products, United States Attorney Kenneth Magidson announced today.

January 25, 2012; U.S. Attorney; Northern District of New York

Cayuga Medical Center Of Ithaca, New York Settles Whistleblower Health Care Lawsuit For $3.5 Million
SYRACUSE, NEW YORK- United States Attorney Richard S. Hartunian announced that his office has settled a False Claims Act matter involving allegations that Cayuga Medical Center of Ithaca, New York, submitted false claims to Medicare and Medicaid in connection with improper physician recruitment agreements entered into between Cayuga Medical Center and various medical practices. The State of New York also participated in the settlement. Under the terms of the agreement, Cayuga Medical Center agreed to pay a total sum of $3,576,056.00. Of that amount, the State of New York will receive $426,305.00, and federal health care programs will recover $3,149,751.00.

January 25, 2012; U.S. Attorney; Southern District of Ohio

Government Official Sentenced to Four Years in Prison for Accepting Bribes
CINCINNATI-David T. Mersch, 57, the former operations manager for the Cincinnati offices of the U.S. Centers for Disease Control and Prevention (CDC) was sentenced to 48 months' imprisonment followed by three years of supervised release for accepting bribes from a construction company executive in exchange for awarding construction contracts to the company, California-based Entek Mechanical Corp.

January 24, 2012; U.S. Attorney; District of Rhode Island

Rhode Island Medical Equipment Sales Representative to Plead Guilty To Health Care Fraud
PROVIDENCE, RI-A Woonsocket, R.I., woman who allegedly promised custom fit shoes for diabetics and medical equipment for arthritis sufferers "at no cost" to Medicare beneficiaries at Rhode Island senior centers, housing complexes and assisted living centers, has agreed to plead guilty to defrauding Medicare of more than $70,000, announced U.S. Attorney Peter F. Neronha.

January 24, 2012; U.S. Attorney; Western District of Michigan

Nine Health Care Professionals, Including Five Doctors, Charged in Kickback Scheme
GRAND RAPIDS, MI-U.S. Attorney Donald A. Davis and Michigan Attorney General Bill Schuette announced today the federal indictment of eight individuals, including four licensed physicians and one licensed physician's assistant, for conspiracy to violate the federal Anti-Kickback Statute. Additionally, a state charge was filed against a Jackson, Michigan physician for allegedly accepting kickbacks to refer his patients to certain rehabilitation facilities. All eight federally charged defendants appeared today before U.S. Magistrate Judge Hugh W. Brenneman for an initial appearance on the charge, which carries a penalty of up to five years' imprisonment, a $250,000 fine, three years of supervised release, and restitution.

January 24, 2012; U.S. Attorney; Middle District of Louisiana

Guilty Pleas In Health Care Fraud Case
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced that Carla Clark, age 47, and Lillie Lavan, age 57, both of Pineville, Louisiana, pled guilty today before Senior U.S. District Court Judge Frank J. Polozola to counts of an indictment charging health care fraud.

January 24, 2012; U.S. Department of Justice

Miami-Area Nurse Pleads Guilty in $25 Million Health Care Fraud Scheme
WASHINGTON - A Miami-area nurse pleaded guilty today for his participation in a $25 million home health Medicare fraud scheme, the Department of Justice, the FBI and the Department of Health and Human Services announced today.

January 19, 2012; U.S. Department of Justice

10 Individuals Arrested in Puerto Rico for Health Care Fraud
SAN JUAN, P.R. - On January 12, 2012, a Federal grand jury returned two indictments against ten individuals for conspiracy to commit health care fraud, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was led by the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), with the collaboration of the United States Secret Service (USSS) and the Federal Bureau of Investigation (FBI).

Related Photo: Office of Inspector General agents arresting one of ten suspects detained in Puerto Rico on Medicare Fraud charges

January 18, 2012; U.S. Attorney; Northern District of Georgia

Owner of Doraville Medical Clinic Indicted for Health Care Fraud
ATLANTA, GA - David Song Sen Cui, 43, of Duluth, Georgia, has been indicted by a federal grand jury on charges of health care fraud in operating the "Atlanta Hope Medical Group" which billed Medicare for doctor services never performed.

January 18, 2012; U.S. Attorney's Office

U.S. Attorney's Office Obtains Judgment Against Canyon Co. Psychiatrist for Medicare and
Medicaid Fraud
BOISE - U.S. Attorney Wendy J. Olson announced today that her office's Affirmative Civil Enforcement Unit has prevailed in a lawsuit brought under the False Claims Act and obtained summary judgment in the amount of $93,556.26 against Canyon County psychiatrist Dr. Michael Applebaum. The government's civil lawsuit was brought under the False Claims Act

January 17, 2012; U.S. Department of Justice

Miami Resident Sentenced to Prison for Medicare Fraud
A Miami-area resident, Adriana Mejia, 40, was sentenced to 35 months in prison for her role in laundering money for a $200 million Medicare fraud scheme.

January 12, 2012; U.S. Department of Justice

Owner and Patient Recruiter Sentenced to Prison for Roles in $4.7 Million Louisiana Medicare
Fraud Scheme
WASHINGTON - An owner and a patient recruiter for a Louisiana durable medical equipment company were sentenced today to 60 and 55 months in prison, respectively, for their roles in a $4.7 million Medicare fraud scheme, announced the Department of Justice, the Department of Health and Human Services, the FBI and the Louisiana State Attorney General's Office.

January 12, 2012; U.S. Attorney; Central District of California

Owner of Westlake Home Health Agency Pleads Guilty to Bilking Medicare out of over $5 Million in Health Care Fraud Scheme
LOS ANGELES - A registered nurse who operated a home health agency based in Westlake has pleaded guilty to federal health care fraud charges in a $5 million Medicare fraud scheme involving kickbacks to doctors and patients who did not qualify for in-home health services.

January 12, 2012; U.S. Attorney; Eastern District of California

Physician Sentenced To Eight Years in Federal Prison for Role in Massive Medicare Fraud Scam
SACRAMENTO, Calif. - United States Attorney Benjamin B. Wagner announced that Alexander Popov, 47, of Los Angeles, was sentenced today by United States District Judge Morrison C. England Jr. to eight years and one month in prison for committing health care fraud and conspiring to commit health care fraud. He was found guilty by a jury on July 8, 2011.

January 12, 2012; U.S. Attorney; Middle District of Pennsylvania

Harrisburg Ambulance Company, Owner and Employee Indicted on Federal Medicare Fraud Charges
The United States Attorney's Office for the Middle District of Pennsylvania announced today that a Harrisburg-based ambulance company, its owner, and a managerial employee have been indicted by a grand jury in Harrisburg on federal health care fraud charges.

January 11, 2012; U.S. Attorney; District of Maryland

Gambrills Podiatrist Sentenced To Over 4 Years in Prison for Fraudulently Billing Medicare over $1.1 Million
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Larry Bernhard, age 56, a podiatrist who operated his business from his home in Gambrills, Maryland, today to 54 months in prison followed by three years of supervised release for health care fraud and aggravated identity theft related to a scheme to fraudulently bill Medicare for more than $1.1 million. Judge Bredar also entered an order requiring Bernhard to pay restitution of $1,122,992.08.

January 11, 2012; U.S. Attorney; District of Idaho

Caldwell Optometrist Charged in Federal Indictment
BOISE - Christopher Card, 59, of Caldwell, Idaho, was indicted yesterday by a federal grand jury in Boise for execution of a scheme to defraud health care benefit programs, U.S. Attorney Wendy J. Olson announced. Card is a licensed optometrist in the state of Idaho.

January 10, 2012; U.S. Attorney; Eastern District of Virginia

Alexandria Dentist Pleads Guilty to Health Care Fraud
ALEXANDRIA, Va. -Tuan Vu, 43, of Annandale, Va., pleaded guilty today to fraudulently billing insurance providers hundreds of thousands of dollars for dental services that he did not provide to his patients.

January 10, 2012; U.S. Attorney; Eastern District of Pennsylvania

Ambulance Company Worker Pleads Guilty to Fraud Scheme
PHILADELPHIA-Ivan Tkach, 30, of Philadelphia, pleaded guilty today to charges relating to a private ambulance company's involvement in a health care fraud scheme. Tkach admitted to giving false statements relating to health care and illegal remunerations relating to health care services.

January 9, 2012; U.S. Department of Justice

Los Angeles Church Pastor Sentenced to 180 Months in Prison for $14.2 Million Medicare
Fraud Scheme
The pastor of a now defunct Los Angeles church who owned and operated several fraudulent durable medical equipment supply companies was sentenced today to 180 months in prison for his role in a $14.2 million Medicare fraud scheme, the Department of Justice, the FBI and the Department of Health and Human Services announced.

January 9, 2012; U.S. Department of Justice

Broward County, Fla.-Area Halfway House Owner Pleads Guilty to Fraud and Kickback Scheme
WASHINGTON - The owner and operator of a Broward County, Fla.-area halfway house pleaded guilty today for his role in a Medicare fraud kickback scheme that funneled patients through a fraudulent mental health company, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).

January 6, 2012; U.S. Attorney; Eastern District of Michigan

U.S. Files $150 Million Complaint against Medical Imaging Company & Dr. Gwendolyn Washington for Kickbacks for Medicare Test Referrals & Inadequate Supervision of Radiology Tests
DETROIT - The government has filed suit seeking $150 million in damages and penalties under the False Claims Act against Universal Imaging, Inc. and its current and former owners, Phillip J. Young and Mark Lauhoff, United States Attorney Barbara L. McQuade announced today.

January 6, 2012; U.S. Department of Justice

Miami-Area Patient Recruiter Sentenced to 57 Months in Prison for Participating in Medicare Fraud Kickback Scheme
WASHINGTON - The owner and president of a Miami-area transportation company was sentenced yesterday to 57 months in prison for her role in a Medicare fraud kickback scheme that funneled patients through a fraudulent mental health company, American Therapeutic Corporation, announced the Department of Justice, FBI and Department of Health and Human Services.

January 6, 2012; U.S. Attorney; Western District of Texas

Former Texas Pain Management Physician and Psychiatrist Sentenced To Federal Prison on Health Care Fraud Charges
United States Attorney Robert Pitman announced that in El Paso today, 57-year-old Anthony Francis Valdez was sentenced to 25 years in federal prison followed by three years of supervised release in connection with an estimated $42 million fraudulent health care benefit program billing scheme. Valdez, a former physician, was the owner of the Institute of Pain Management with clinics in El Paso and San Antonio.

January 5, 2012; U.S. Attorney for the Middle District of Florida

Sarasota County Woman Sentenced for Health Care Fraud
Tampa, Florida - U.S. Attorney Robert E. O'Neill announces that Senior U.S. District Judge Susan C. Bucklew today sentenced Mira Matchin (58, Sarasota) to 18 months in federal prison for health care fraud. As part of her sentence, the court also entered a money judgment in the amount of $723,000, the proceeds of the scheme orchestrated by Matchin. Matchin pleaded guilty on October 28, 2011.

January 5, 2012; U.S. Department of Justice

Home Health Agency Owner Pleads Guilty in Connection with Detroit Fraud Scheme
WASHINGTON - Detroit-area resident Tausif Rahman pleaded guilty today for his role in organizing a $14 million Detroit-area home health care fraud and money laundering scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services.

January 5, 2012; U.S. Department of Justice

Office Manager for Miami Home Health Company Sentenced to 78 Months in Prison for Role in $25 Million Health Care Fraud Scheme
WASHINGTON - An office manager for a Miami home health care agency was sentenced today to 78 months in prison for her participation in a $25 million home health Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services. Two of her co-defendants were also sentenced to prison today for their roles in the fraud scheme.

January 3, 2012; U.S. Department of Justice

US Files Complaint Against National Chain of Hospice Providers Alleging False Claims on the Medicare Program
WASHINGTON - The United States has intervened and filed a complaint in a whistleblower suit against AseraCare Hospice, the Justice Department announced today. Golden Gate Ancillary LLC, dba AseraCare Hospice, is a for-profit business with approximately 65 hospice providers in 19 states, including Alabama, Georgia, Pennsylvania and Wisconsin.

December 2011

December 29, 2011; U.S. Department of Justice: GE Healthcare Inc. Pays Us $30 Million to Resolve False Claims Act Allegations
GE Healthcare Inc. has paid the United States $30 million, plus interest, to settle allegations that a company it acquired in 2004, Amersham Health Inc., had violated the False Claims Act by causing Medicare to overpay for Myoview, a radiopharmaceutical used in certain cardiac diagnostic imaging procedures, the Justice Department announced.
December 21, 2011; U.S. Attorney; Southern District of Texas: Former DME Company Owner Lands in Federal Prison for 12 Years
HOUSTON - Benjamin Essien, the former owner of Durable medical Equipment (DME) companies Logic World Medical and Roben Medical in Houston, has been sentenced to 145 months in federal prison for defrauding the Texas Medicaid program, United States Attorney Kenneth Magidson announced today along with Texas Attorney General Greg Abbott. During sentencing this morning, U.S. District Judge Grey Miller explained that the Medicaid beneficiaries whose identities had been unlawfully used to defraud the government, were also to be considered victims of the scheme to defraud.
December 21, 2011; U.S. Attorney; District of Columbia: Medicare Recipient Pleads Guilty to Health Care Fraud
WASHINGTON - Walt R. Wilson, 42, of Washington, D.C., has pled guilty to the lead count in an indictment, health care fraud, stemming from a scheme involving more than $71,000 in fraudulent Medicare payments.
December 20, 2011; U.S. Attorney; Northern District of Texas: Federal Grand Jury Indicts Medical Supply Company Owner Who Allegedly Entered Into A Fraudulent Marriage And Provided False Statements To Obtain Citizenship - Defendant Also Under Indictment in NDTX for Role in Health Care Fraud Scheme
DALLAS - A federal grand jury in Dallas has indicted Plano, Texas, resident, Okey F. Nwagbara, 45, for making misrepresentations in immigration and naturalization documents that misled the government and prevented the government from examining material facts that may have prevented his naturalization. Nwagbara, who has been a naturalized citizen since 2008, was the owner/operator of Advanced MedEquip & Supplies Ltd., a durable medical equipment (DME) business in Richardson, Texas. Today's announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
December 20, 2011; U.S. Department of Justice: Fort Lauderdale, Florida-Area Halfway House Operator Pleads Guilty to Fraud and Kickback Scheme
WASHINGTON - The manager and operator of a Fort Lauderdale, Fla.-area halfway house pleaded guilty yesterday for his role in a Medicare fraud kickback scheme that funneled patients to a fraudulent mental health provider, American Therapeutic Corporation (ATC), announced the Department of Justice, FBI and the Department of Health and Human Services.
December 20, 2011; U.S. Department of Justice: Three Operators of Miami Home Health Company Plead Guilty in $60 Million Health Care Fraud Scheme
WASHINGTON - Three operators of a Miami health care agency pleaded guilty yesterday for their participation in a $60 million home health Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services.
December 19, 2011; U.S. Department of Justice: Justice Department Recovers $3 Billion in False Claims Act Cases in Fiscal Year 2011
WASHINGTON - The Justice Department secured more than $3 billion in settlements and judgments in civil cases involving fraud against the government in the fiscal year ending Sept. 30, 2011, Tony West, Assistant Attorney General for the Civil Division, announced today. This is the second year in a row that the department has surpassed $3 billion in recoveries under the False Claims Act, bringing the total since January 2009 to $8.7 billion - the largest three-year total in the Justice Department's history.
December 19, 2011; U.S. Department of Justice: Nurse, Administrator and Two Recruiters for Miami Home Health Companies Sentenced to Prison in $25 Million Health Care Fraud Scheme
WASHINGTON - Two patient recruiters, a nurse and an administrator for two Miami home health care companies were sentenced today for their participation in a $25 million home health Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services.
December 16, 2011; U.S. Attorney; Southern District of Texas: Pharmacy Technician Pleads Guilty to Conspiring to Commit Health Care Fraud
McALLEN, Texas - Valerie Jean Flores 38, of Mission, Texas, has been convicted of conspiracy to commit health care fraud, United States Attorney Kenneth Magidson announced today along with Texas Attorney General Greg Abbott. Flores was formerly employed a senior pharmacist technician by Sara Elicia Garza, 55, also of Mission - a pharmacist and owner and operator of Sara's Pharmacy and Gift Corner located in Mission.
December 14, 2011; U.S. Department of Justice: Three Patient Recruiters for Miami Home Health Companies Sentenced to Prison in $25 Million Health Care Fraud Scheme
WASHINGTON - Two patient recruiters for a Miami health care agency were sentenced today to 18 and 12 months in prison, respectively, for their participation in a $25 million home health Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services.
December 14, 2011; U.S. Department of Justice: Owners of Houston Mental Health Company and Assisted Living Facility Indicted for Alleged Roles in $90 Million Medicare Fraud Scheme
WASHINGTON - Two owners of a Houston mental health care company, Spectrum Care P.A., and the owner of a Houston assisted living facility were arrested today on charges related to their alleged participation in a $90 million Medicare fraud scheme, announced the Department of Justice, the Department of Health and Human Services and the FBI.
December 14, 2011; U.S. Attorney; Eastern District of Pennsylvania: Philadelphia Doctor Charged With Running Pill Mill
PHILADELPHIA - A 23-count Indictment was returned and four Informations were unsealed today charging a total of eight defendants, including Philadelphia physician Dr. Kermit B. Gosnell and members of his former staff, in a drug conspiracy case. Gosnell is charged with illegally prescribing highly-addictive painkillers and sedatives outside the usual course of professional practice and not for a legitimate medical purpose, along with related charges.
December 14, 2011; U.S. Attorney; District of Arizona News Release: Pain Management Doctor and Clinic Administrator Indicted On 130 Counts
PHOENIX- A federal grand jury in Phoenix returned a 130 count indictment against Angelo Chirban, 62, and Marilyn Chirban, 60, of Queen Creek, Arizona, for Conspiracy to Illegally Distribute Controlled Substances, Illegal Distribution of Controlled Substances, Health Care Fraud Conspiracy, Health Care Fraud, and Transactional Money Laundering.
December 12, 2011: Co-owners of Pocatello Physical Therapy, P.A. Sentenced in Federal Court
POCATELLO - The co-owners of Pocatello Physical Therapy, P.A., were sentenced in U.S. District Court today for altering records in a federal health care audit, U.S. Attorney Wendy J. Olson announced. Dan DesFosses, 65, and Colin "Ric" Benedetti, 58, both of Pocatello, appeared before U.S. District Judge Edward J. Lodge at the federal courthouse. DesFosses and Benedetti were each sentenced to three years of probation. DesFosses was fined $1,000 and ordered to pay $9,757.66 in restitution. Benedetti was ordered to pay $2,442 in restitution. Both will be required to do 300 hours of community service.
December 13, 2011; U.S. Attorney; District of New Jersey: Fourteen New Jersey Health Care Providers Arrested, Charged With Taking Cash Payments for Patient Referrals
NEWARK, N.J. - Thirteen New Jersey doctors and a nurse practitioner are charged in a cash-for tests referral scheme for allegedly taking illegal kickback payments to refer patients to an Orange, N.J., medical testing facility, New Jersey U.S. Attorney Paul J. Fishman and U.S. Department of Health and Human Services, Office of Inspector General Special Agent in Charge Tom O'Donnell announced.
December 12, 2011; U.S. Attorney; Western District of Missouri News Release: KC Woman, St. Louis Man Plead Guilty To Medicaid Kickbacks
KANSAS CITY, Mo. - Beth Phillips, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman and a St. Louis, Mo., man pleaded guilty in federal court today to kickbacks that were paid to refer Medicaid patients to a non-emergency medical transportation business.
December 12, 2011; U.S. Department of Justice: Minnesota-Based Medtronic Inc. Pays US $23.5 Million to Settle Claims That Company Paid Kickbacks to Physicians
WASHINGTON - Medtronic Inc. of Fridley, Minn., has agreed to pay the United States $23.5 million to resolve allegations that it violated the False Claim Act by using physician payments related to post-market studies and device registries as kickbacks to induce doctors to implant the company's pacemakers and defibrillators, the Justice Department announced today.
December 9, 2011; U.S. Attorney; Northern District of Georgia: Atlanta Radiologist Sentenced to Prison
ATLANTA, GA - RAJASHAHKER P. REDDY, 41, of Atlanta, Georgia, was sentenced to prison late yesterday by United States District Judge Orinda D. Evans on charges of health care fraud, wire fraud and mail fraud.
December 8, 2011; U.S. Attorney; Middle District of Louisiana News Release: Guilty Pleas in Baton Rouge, Louisiana, To Charges of Health Care Fraud and Money Laundering
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced that SONYA LEWIS WILLIAMS, age 46, of Baton Rouge, Louisiana, pled guilty today before U.S. District Court Judge Frank J. Polozola to two counts of an indictment charging her with health care fraud and money laundering.
December 8, 2011; U.S. Attorney; Southern District of Texas: Houston Federal Jury Returns Guilty Verdicts in Health Care Fraud Trial
HOUSTON - Kelvin Washington, 48, of Houston, has been convicted on all counts of health care fraud, conspiracy and violations of the anti-kickback statute charged against him, United States Attorney Kenneth Magidson announced today. The verdicts were returned less than an hour ago after six days of trial and three and a half hours of deliberation.
December 7, 2011; U.S. Attorney; Eastern District of California: Two Healthcare Systems Pay $2.3 Million Collectively To Settle Overpayment Claims
SACRAMENTO, Calif. - United States Attorney Benjamin B. Wagner announced that Catholic Healthcare West has paid $875,564 and Sutter Health Association has paid $1,433,509 to the United States to settle allegations that certain of their affiliate hospitals overcharged the government for infusion therapy and lithotripsy services.
December 8, 2011; U.S. Department of Justice: Owner of Miami-Area Mental Health Company Sentenced to 35 Years in Prison for Orchestrating $205 Million Medicare Fraud Scheme
WASHINGTON - The owner of a fraudulent Miami-area mental health care company, American Therapeutic Corporation (ATC), was sentenced today to 35 years in prison for orchestrating a $205 million Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services.
December 8, 2011; U.S. Attorney; District of New Jersey: Randolph, N.J., Otolaryngologist Pleads Guilty To Health Care Fraud
NEWARK, N.J. - A North Caldwell, N.J., doctor today admitted his role in defrauding Blue Cross Blue Shield of more than $725,000 by submitting false claims for services he never performed, U.S. Attorney Paul J. Fishman announced.
December 8, 2011; U.S. Attorney; District of Maryland: Gaithersburg Man Sentenced For Possessing Child Pornography
Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Andrew Liang, age 26, of Gaithersburg, Maryland, today to a year and a day in prison followed by five years of supervised release for possessing child pornography. Chief Judge Chasanow ordered that Liang pay a fine of $10,000 and that upon his release from prison, Liang must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
December 7, 2011; U.S. Attorney; Central District of California: Shield Healthcare Pays $5 Million to Resolve 'Whistleblower' Lawsuit Alleging It Overbilled Medi-Cal Program for Incontinence Supplies
Santa Ana, California - Shield Healthcare, a medical supply provider based in Santa Clarita, has paid the United States and the State of California a total of $5 million to resolve a "whistleblower" lawsuit alleging that the company submitted inflated bills to California's Medicaid program, Medi-Cal.
December 7, 2011; U.S. Attorney; Southern District of Texas: Palmview, Texas, Siblings Convicted of Health Care Fraud Conspiracy
McALLEN, Texas - A co-owner and manager of a McAllen-area durable medical equipment (DME) business have both pleaded guilty to conspiracy to commit health care fraud for their roles in a scheme to defraud Medicare and Medicaid through fraudulent billings for power wheelchairs, United States Attorney Kenneth Magidson announced today.
December 6, 2011; U.S. Department of Justice: Detroit-Area Clinic Owner Pleads Guilty in Connection with Medicare Fraud Scheme
WASHINGTON - A clinic owner pleaded guilty today for her participation in a Detroit-area Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services.
December 6, 2011; U.S. Department of Justice: Owners of Houston Health Care Company Sentenced to Prison for Medicare Fraud
WASHINGTON - Two owners of a Houston durable medical equipment (DME) company were each sentenced to prison today for their roles in a Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services
December 6, 2011; U.S. Department of Justice: Doctor and Two Nurses Sentenced to Prison for Roles in $25 Million Miami Health Care Fraud Scheme
WASHINGTON - Two nurses and a doctor were sentenced yesterday in Miami federal court for their participation in a $25 million home health Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services.
December 6, 2011; U.S. Department of Justice: St. Louis-Based KV Pharmaceutical to Pay $17 Million to Settle False Claims Allegations
WASHINGTON - KV Pharmaceutical Company, which was the St. Louis-based parent company of now-defunct Ethex Corporation, will pay $17 million to resolve False Claims Act allegations that Ethex failed to advise the Centers for Medicare and Medicaid Services (CMS) that two unapproved products did not qualify for coverage under federal health care programs, the Justice Department announced today. Ethex is alleged to have submitted false quarterly reports to the government related to a pair of drugs, Nitroglycerin Extended Release Capsules (Nitroglycerin ER) and Hyoscyamine Sulfate Extended Release Capsules (Hyoscyamine ER).
December 2, 2011; U.S. Department of Justice: Detroit-Area Clinic Owner Sentenced to 78 Months in Prison for Role in $9.1 Million Medicare Fraud Scheme
WASHINGTON - Joaquin Tasis was sentenced today to 78 months in prison for his role in a $9.1 million Detroit-area Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services.
December 2, 2011; U.S. Attorney; Eastern District of Virginia: Woodbridge Woman Sentenced to 51 Months for Defrauding Medicaid of Nearly $1 Million
ALEXANDRIA, Va. - Yanick Pierre, 51, of Woodbridge, Va., was sentenced today to 51 months in prison, followed by a three-year term of supervised release, for fraudulently billing Medicaid nearly $1 million from August 2008 to May 2010.
December 2, 2011; U.S. Attorney; District of Massachusetts: Dorchester Pharmacist Sentenced for Medicaid Fraud
BOSTON - A Dorchester pharmacist was sentenced yesterday in federal court for conspiracy to defraud the United States government by submitting false claims to Medicaid, a federally-funded program.
December 1, 2011; U.S. Attorney; Middle District of Pennsylvania: Pennsylvania Hospice to Pay U.S. $10.56 Million Settlement
The United States Attorney's Office for the Middle District of Pennsylvania, and the U.S. Department of Health and Human Services, Office of the Inspector General, announced today that Diakon Lutheran Social Ministries d/b/a Diakon Hospice Saint John (Diakon) has agreed to resolve its liability for violations of the False Claims Act (FCA) by paying the United States $10.56 million.

November 2011

November 30, 2011; U.S. Department of Justice: Pompano Beach, Fla.-Area Assisted Living Facility Owner Pleads Guilty to Fraud and Kickback Scheme
WASHINGTON - The owner and operator of a Pompano Beach, Fla.-area assisted living facility pleaded guilty today for his role in a Medicare fraud kickback scheme that funneled patients through a fraudulent mental health company and a Medicaid fraud scheme that billed for assisted living services that were never provided, announced the Department of Justice, the FBI, the Department of Health and Human Services (HHS) and the Medicaid Fraud Control Unit (MFCU) of the Florida Office of the Attorney General.
November 29, 2011; U.S. Attorney; Southern District of Texas: Local Music Producer and Club Owner Convicted on Multiple Federal Charges
HOUSTON - Julian Kimble, 46, has pleaded guilty to conspiracy to commit healthcare fraud, conspiracy to commit money laundering and tax evasion, United States Attorney Kenneth Magidson announced today. Kimble is the owner of Pearl Records and Pearl Entertainment and investor in Grooves Restaurant & Lounge.
November 29, 2011; U.S. Department of Justice: Patient Recruiter Pleads Guilty in Connection with $5.4 Million Medicare Fraud Scheme in Detroit
WASHINGTON - A patient recruiter pleaded guilty today for his participation in a Medicare fraud scheme operated out of three Detroit-area health care clinics, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).
November 29, 2011; U.S. Department of Justice: Owner of Houston Health Care Company Pleads Guilty to Defrauding Medicare
WASHINGTON - The owner of a Houston health care company pleaded guilty today in connection with a Medicare fraud scheme involving durable medical equipment (DME), announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).
November 28, 2011; U.S. Attorney; Eastern District of Michigan: Southfield Family Practice Doctor, Dr. Gwendolyn Washington, Sentenced To 120 Months For Public Corruption, Illegal Prescription Drug Trafficking And Health Care Fraud
Dr. Gwendolyn Washington, M.D., age 67, was sentenced today to 120 months imprisonment for public corruption, health care fraud, and conspiring to illegally distribute prescription drugs, United States Attorney Barbara L. McQuade announced. McQuade was joined in the announcement by Andrew G. Arena, Special Agent in Charge, Federal Bureau of Investigation, Detroit Field Division and Lamont Pugh, III, Special Agent in Charge, Department of Health and Human Services, Office of Inspector General. Dr. Washington was sentenced by the Honorable Paul D. Borman.
November 22, 2011; U.S. Department of Justice: Detroit-Area Foot Doctor Pleads Guilty to Medicare Fraud Scheme
WASHINGTON - A Detroit-area foot doctor pleaded guilty today for his participation in a Medicare fraud scheme, announced the Department of Justice, FBI and the Department of Health and Human Services (HHS).
November 22, 2011; U.S. Department of Justice: U.S. Pharmaceutical Company Merck Sharp & Dohme to Pay Nearly One Billion Dollars Over Promotion of Vioxx®
WASHINGTON - American pharmaceutical company Merck, Sharp & Dohme has agreed to pay $950 million to resolve criminal charges and civil claims related to its promotion and marketing of the painkiller Vioxx® (rofecoxib), the Justice Department announced today. Under the terms of the resolution, Merck will plead guilty to a one-count information charging a single violation of the Food Drug and Cosmetic Act (FDCA) for introducing a misbranded drug, Vioxx�, into interstate commerce. Under the terms of its plea agreement with the United States, Merck will plead guilty to a misdemeanor for its illegal promotional activity and will pay a $321,636,000 criminal fine.
November 22, 2011; U.S. Department of Justice: United States Files Complaint Against BestCare Laboratory Services Alleging False Claims for Medicare Funds
WASHINGTON - The United States filed a complaint against BestCare Laboratories, Inc. and its founder and principal, Karim A. Maghareh, in the U.S. District Court for the Southern District of Texas, the Justice Department announced today. The suit alleges that the defendants knowingly misrepresented the distances traveled by its lab technicians to artificially increase reimbursement from Medicare for mileage-based technician travel allowance fees.
November 21, 2011; U.S. Attorney; Southern District of Florida: Miami Man Sentenced For Stealing Identity Information From DCF Computers For Use In Medicare Fraud Scam
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Henry Gutierrez, Postal Inspector in Charge, United States Postal Inspection Service, Miami Division, Vance Luce, Acting Special Agent in Charge, U.S. Secret Service, John V. Gillies, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and James K. Loftus, Director, Miami-Dade Police Department, announced today's sentencing of Yenky Sanchez, 25, of Miami, for conspiring to commit health care fraud, in violation of Title 18, United States Code, Section 1349; conspiring to commit authentication feature fraud, in violation of Title 18, United States Code, Sections 1028(a)(3) and (f); and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). U.S. District Judge Cecilia M. Altonaga sentenced Sanchez to 65 months in prison, followed by three years of supervised release. Judge Altonaga also imposed a $5,000.00 fine.
November 21, 2011; U.S. Attorney; District of New Jersey: Former Maxim Healthcare Services Senior Manager Sentenced to Prison for Health Care Fraud
TRENTON, N.J. - A former senior manager and 13-year employee of Maxim Healthcare Services, Inc. ("Maxim"), was sentenced today to five months in prison and five months of home confinement with electronic monitoring for his involvement in the unlicensed operation of Maxim office that billed nearly a million dollars to government health care programs, J. Gilmore Childers, First Assistant U.S. Attorney announced.
November 17, 2011; U.S. Attorney; District of Rhode Island: Nationwide Supplier of Medical Equipment Pleads Guilty to Health Care Fraud, Money Laundering & Selling Adulterated and Misbranded Medical Devices
PROVIDENCE, R.I. - The owner of Planned Eldercare, a nationwide supplier of durable medical equipment located in Buffalo Grove, Ill., pled guilty today in U.S. District Court in Providence, R.I., to defrauding the Medicare program by targeting arthritic and/or diabetic Medicare beneficiaries, and ensuring that his company ordered and shipped medical equipment and supplies to Medicare beneficiaries that they did not order and/or were not medically necessary.
November 17, 2011; U.S. Department of Justice: Houston Patient Recruiter Sentenced to 21 Months in Prison for Medicare Fraud Scheme Involving Claims of Hurricane Damage to Power Wheelchairs
WASHINGTON - A patient recruiter for a Houston durable medical equipment (DME) company was sentenced today to 21 months in prison for her role in a health care fraud scheme involving power wheelchairs, announced the Department of Justice, FBI and the Department of Health and Human Services.
November 17, 2011; U.S. Attorney; Northern District of California: Three Bay Area Residents Charged With Oxycodone Trafficking
SAN FRANCISCO - A federal grand jury in San Francisco returned an indictment in which three Bay Area residents are charged variously with conspiracy; possession with intent to distribute oxycodone and oxymorphone; distribution of oxycodone and oxymorphone; and possession of a firearm by a felon, United States Attorney Melinda Haag announced. The prosecution is the result of a seven month, multi-district investigation by the Federal Bureau of Investigation, Drug Enforcement Agency, and Health and Human Services.
November 17, 2011; U.S. Department of Justice: Fort Lauderdale, Fla.-Area Assisted Living Facility Manager Pleads Guilty to Fraud and Kickback Scheme
WASHINGTON - The manager of a Fort Lauderdale, Fla.-area assisted living facility and owner of a purported community mental health center pleaded guilty yesterday for his role in a Medicare fraud kickback scheme that funneled patients through a fraudulent mental health company, American Therapeutic Corporation (ATC), announced the Department of Justice, FBI and Department of Health and Human Services.
November 16, 2011; U.S. Attorney; District of New Jersey: Top New Jersey Prescriber of Drugs to Medicaid Patients Sentenced to 43 Months in Prison for Fraud Scheme Involving Fake Physicians
NEWARK, N.J. - A doctor with a practice in Elizabeth, N.J., was sentenced today to 43 months in prison for operating a health care fraud scheme in which patients were exposed to treatment during 20,000 patient visits from individuals who made as little as $10 an hour to pose as licensed physicians, U.S. Attorney Paul J. Fishman announced.
November 16, 2011; U.S. Attorney; Southern District of Texas: Houston Man Arrested for Health Care Fraud
HOUSTON - Endurance Iyamu, 47, of Houston, has been indicted and arrested for devising and executing a scheme to commit health care fraud, United States Attorney Kenneth Magidson announced today. Iyamu will appear for his arraignment and detention hearing on Friday, Nov. 18.
November 16, 2011; U.S. Attorney; Southern District of Texas: Arrested in Florida, Couple to Appear in Houston on Charges of Bankruptcy Fraud
HOUSTON - Husband and wife Michael Giventer and Julia Shvabskaya have been arrested for devising and executing a scheme to commit bankruptcy fraud and defrauding several creditors in Texas and elsewhere, U.S. Attorney Kenneth Magidson announced today. Giventer and Shvabskaya orchestrated the formation of multiple business entities allegedly dedicated to providing healthcare services.
November 15, 2011; U.S. Attorney; Northern District of Texas: Owner And Associates Of Euless Healthcare Corporation Arrested On Conspiracy And Health Care Fraud Charges
DALLAS - Three defendants who have been charged in a federal indictment, unsealed today, with various offenses related to their involvement in the operation of Euless Healthcare Corporation, were arrested this morning by special agents with the FBI and the U.S. Department of Health and Human Services - Office of the Inspector General, announced U.S. Attorney Sarah R. Salda�a of the Northern District of Texas.
November 15, 2011; U.S. Attorney; Western District of North Carolina: Monroe Physician To Pay $950,000 To Settle Government Civil Fraud Allegations
Millicent Francis-Lane, M.D. has agreed to pay $950,000 to the North Carolina Medicaid Program to resolve False Claims Act allegations, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina and North Carolina Attorney General Roy Cooper. Dr. Francis-Lane owns Union County Women's Care, which has offices in Monroe, N.C.
November 14, 2011; U.S. Department of Justice: U.S. Attorney General Holder and Dominican Prosecutor General Jiménez Sign Agreement to Share $7.5 Million in Forfeited Assets as Countries Agree to Share Assets Forfeited in Medicare Fraud Case
SANTO DOMINGO - Attorney General Eric Holder joined today with Dominican Prosecutor General Radhamés Jiménez Peña in Santo Domingo, Dominican Republic, to announce the signing of a case-specific agreement to share approximately $7.5 million in forfeited assets between the United States and the Dominican Office of the Prosecutor General. The United States expects to recover an additional approximately $30 million in forfeited assets as part of the agreement.
November 14, 2011; U.S. Department of Justice: Miami-Area Patient Recruiter Pleads Guilty to Fraud and Kickback Scheme
WASHINGTON - The owner and president of a Miami-area transportation company pleaded guilty today for her role in a Medicare fraud kickback scheme that funneled patients through a fraudulent mental health company, American Therapeutic Corporation (ATC), announced the Department of Justice, FBI and Department of Health and Human Services.
November 14, 2011; U.S. Attorney; District of New Jersey: Fugitive Returned From Pakistan After 13 Years Sentenced To Prison For 1997 Health Care Fraud
TRENTON, N.J. - A Jersey City, N.J., man who fled to Pakistan to avoid prosecution over a decade ago was sentenced today to 21 months in prison for defrauding Medicare of approximately $126,000 by submitting false claims in 1997, U.S. Attorney Paul J. Fishman announced.
November 14, 2011; U.S. Attorney; Southern District of Texas: Former Houston Doctor Sentenced to Federal Prison
HOUSTON - A former Houston physician has been sentenced to 70 months in prison following his convictions for conspiracy to commit mail fraud and mail fraud, United States Attorney Kenneth Magidson announced today.
November 10, 2011; U.S. Attorney; Western District of Washington: South Sound Doctor Convicted Of Multiple Counts Of Healthcare Fraud, Tax Crimes And
Drug Distribution
Antoine Johnson, 40, a former resident of Aberdeen, Washington, and his mother, Lawanda Johnson, were convicted today in U.S. District Court in Tacoma of more than two dozen federal felonies connected with their operation of four health care clinics in Western Washington. Following the three week jury trial, Antoine Johnson and Lawanda Johnson were convicted of 24 counts of health care fraud. Antoine Johnson was also convicted of 4 counts of filing false income tax returns and five counts of illegal drug distribution. Lawanda Johnson was convicted of six counts of filing false income tax returns. The jury deliberated about two and a half days before returning the guilty verdicts. U.S. District Judge Ronald B. Leighton scheduled sentencing for February 3, 2012.
November 10, 2011; U.S. Attorney; District of Maryland: Salisbury Cardiologist Sentenced To Over 8 Years In Prison For Implanting Unnecessary Cardiac Stents
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced cardiologist John R. McLean, age 59, of Salisbury, Maryland, today to 97 months in prison followed by three years of supervised release for six health care fraud offenses in connection with a scheme in which Dr. McLean submitted insurance claims for inserting unnecessary cardiac stents, ordered unnecessary tests and made false entries in patient medical records, in order to defraud Medicare, Medicaid and private insurers. Judge Quarles also ordered that McLean pay restitution to Medicare and the other health insurance programs of $579,070. Judge Quarles also ordered McLean to forfeit $579,070 as proceeds of the crime.
November 10, 2011; U.S. Department of Justice: Fort Lauderdale-area Halfway House Owners Plead Guilty to Kickback Scheme
WASHINGTON - The two managers and operators of a Fort Lauderdale, Fla.-area halfway house company pleaded guilty today for their role in a Medicare fraud kickback scheme that funneled patients through a fraudulent mental health company, American Therapeutic Corporation (ATC), announced the Department of Justice, FBI and Department of Health and Human Services.
November 8, 2011; U.S. Department of Justice: Miami-Area Patient Recruiter Pleads Guilty in $25 Million Health Care Fraud Scheme
WASHINGTON - A patient recruiter of a Miami health care agency pleaded guilty yesterday for her participation in a $25 million home health Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services.
November 8, 2011; U.S. Attorney; Middle District of Tennessee: Vanguard Health Care, Vanguard Health Care Ancillary to Pay two Million Dollars to Settle False Claims Act Allegations
Vanguard and its wholly owned subsidiary, Vanguard Health Care Ancillary, have agreed to pay the United States and the State of Tennessee two million dollars to settle False Claims Act allegations, announced Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee.
November 4, 2011; U.S. Attorney; Middle District of North Carolina: Area Dentist Pleads Guilty To Health Care Fraud
GREENSBORO, N.C. - United States Attorney Ripley Rand announced that Greensboro dentist Tung Thai Nguyen pleaded guilty yesterday to health care fraud charges in connection with false claims submitted to Medicaid.
November 3, 2011; U.S. Department of Justice: Former "Most Wanted" Health Care Fraud Fugitives Sentenced to 14 Years in Prison for $9.1 Million Detroit Medicare Fraud Scheme
WASHINGTON - Two sisters who owned a fraudulent Detroit-area medical clinic and who are former "Most Wanted" health care fraud fugitives were each sentenced in Miami today to 14 years in prison for their leading roles in a $9.1 million Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).
November 3, 2011; U.S. Attorney; Southern District of West Virginia: Federal Jury Convicts Man On Charges Related To Health Care Fraud Scheme
CHARLESTON, W.Va. - Sargis Tadevosyan, 42, an Armenian citizen, was convicted today by a federal jury in connection with a health care fraud scheme that intended to defraud millions of dollars from Medicare, announced U.S. Attorney Booth Goodwin. After a four-day trial, Tadevosyan was found guilty of two felony counts: conspiracy to commit health care fraud and wire fraud and aggravated identity theft.
November 3, 2011; U.S. Department of Justice: Detroit-Area Man Arrested In Connection With $30 Million Medicare Home Health Scheme
WASHINGTON - A Detroit-area resident was charged and arrested today in the Eastern District of Michigan for his alleged leading role in a $30 million Medicare fraud scheme involving home health services, announced the Department of Justice, the Department of Health and Human Services (HHS), the FBI and the HHS-Office of Inspector General (OIG). In addition to the arrest, law enforcement agents executed search warrants at five locations, seizure warrants for 31 bank accounts related to the scheme and suspended Medicare payments to 16 health care companies associated with the scheme.
November 2, 2011; U.S. Attorney; Southern District of Texas: Medical Equipment Business Owner and Manager Arrested for Health Care Fraud and Aggravated Identity Theft
McALLEN, Texas - A co-owner and manager of a McAllen-area durable medical equipment (DME) business have been indicted by a federal grand jury and charged with conspiracy to commit health care fraud, multiple counts of health care fraud and aggravated identity theft for their alleged roles in a scheme to defraud Medicare and Medicaid through fraudulent billings for power wheelchairs, United States Attorney Kenneth Magidson announced today. Both were arrested approximately an hour and a half ago without incident.
November 2, 2011; U.S. Attorney; District of Rhode Island: R.I. Ambulance Company Owner Sentenced To 24 Months In Federal Prison For Health Care Fraud; Ordered To Pay More Than $700,000 In Restitution
PROVIDENCE, R.I. - The owner and president of a Warwick, R.I., ambulance company was sentenced today to 24 month in federal prison, 3 years supervised release and 1,000 hours of community service for defrauding health care programs administered by Medicare and Blue Cross Blue Shield of Rhode Island of more than $700,000.
November 2, 2011; U.S. Department of Justice: Brooklyn, N.Y., Medicare Fraud Strike Force Charges 12 Individuals for Participating in Health Care Fraud Schemes Totaling More Than $95 Million
WASHINGTON - Twelve individuals, including three medical doctors, a doctor of osteopathy and a chiropractor, were charged today in the Eastern District of New York for their roles in separate health care fraud schemes that resulted in the submission of more than $95 million in false claims to the Medicare program, announced the Department of Justice, the FBI and the Department of Health and Human Services.
November 1, 2011; U.S. Attorney; Southern District of Texas: Medical Equipment Business Owner and Manager Arrested for Health Care Fraud and Aggravated
Identity Theft
McALLEN, Texas - A co-owner and manager of a McAllen-area durable medical equipment (DME) business have been indicted by a federal grand jury and charged with conspiracy to commit health care fraud, multiple counts of health care fraud and aggravated identity theft for their alleged roles in a scheme to defraud Medicare and Medicaid through fraudulent billings for power wheelchairs, United States Attorney Kenneth Magidson announced today. Both were arrested approximately an hour and a half ago without incident.
November 1, 2011; U.S. Attorney; Southern District of Texas: Home Healthcare Nurse Sentenced to Federal Prison
McALLEN, Texas - A former home healthcare nurse has been sentenced to federal prison without parole for making false statements relating to health care matters, United States Attorney Kenneth Magidson announced today.

October 2011

October 31, 2011; U.S. Attorney; Southern District of New York: Manhattan U.S. Attorney Recovers $70 Million In Medicaid False Claims Act Lawsuit Against
New York City
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has settled a civil health care False Claims Act lawsuit it filed in January 2011 against the City of New York (the "City") for $70 million. The lawsuit alleges that the City improperly administered the Medicaid personal care services program by authorizing personal care services for Medicaid beneficiaries without the legally required assessments and approvals. The lawsuit further alleges that between 2000 and 2010, the United States paid tens of millions of dollars in reimbursements for these services. The settlement was approved yesterday and entered in Manhattan federal court today by U.S. District Court Judge Jed S. Rakoff.
October 31, 2011; U.S. Attorney; Southern District of Indiana: United States Attorney Hogsett Announces Conviction Of Fort Wayne Woman For Health Care Fraud
INDIANAPOLIS - Joseph H. Hogsett, United States Attorney for the Southern District of Indiana, announced today that Kateen Morris, 44, of Fort Wayne, was sentenced to 12 months in prison and ordered to pay nearly $400,000 in restitution to Hoosier taxpayers by U.S. District Judge William T. Lawrence following her guilty plea to health care fraud. Hogsett also announced that federal law enforcement agents have already recovered $337,999.75 in ill-gotten gains from Morris as part of their investigation.
October 31, 2011; U.S. Department of Justice: Owner of Houston Health Care Company Sentenced to 41 Months in Prison in Connection with $1.3 Million Medicare Fraud Scheme
WASHINGTON - An owner and operator of a Houston durable medical equipment (DME) company was sentenced today in Houston federal court to 41 months in prison for his role in a Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services.
October 28, 2011; U.S. Attorney; Southern District of Texas: Local Doctor Gets 11+ Years in Health Care Fraud Scheme
HOUSTON - Houston doctor Christina Joy Clardy, 57, has been sentenced to 135 months in federal prison for her role in a massive health care fraud conspiracy that billed the federal Medicare and Texas Medicaid programs for $45,039,230 over a two-and-a-half-year period, United States Attorney Kenneth Magidson announced today. Clardy was sentenced just a short while ago in federal court in Houston.
October 27, 2011; U.S. Attorney; Southern District of Texas: Houston Chiropractor Pleads Guilty to Health Care Fraud Conspiracy
HOUSTON - Justina Okehie aka Dr. Tina Collins, 55, of Richmond, Texas, has pleaded guilty to one count of conspiracy to commit health care fraud, United States Attorney Kenneth Magidson announced today.
October 27, 2011; U.S. Attorney; Central District of California: Authorities Arrest 16 Linked to $18 Million Health Care Fraud Scheme Involving Bogus Prescriptions for Expensive Anti-Psychotic Drugs
LOS ANGELES - Sixteen people associated with a Glendale medical clinic, including a doctor and the owners of a San Marino pharmacy, were arrested this morning on criminal charges related to an $18 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.
October 27, 2011; U.S. Department of Justice: California-Based DFine Inc. to Pay U.S. More Than $2.3 Million to Settle Claims That Company Paid Kickbacks to Physicians
WASHINGTON - DFine Inc. of San Jose, Calif., has agreed to pay the United States $2.39 million to resolve allegations under the False Claims Act (FCA) that the company paid kickbacks to induce physicians to use certain of the company's devices that are used in treating spinal fractures, the Justice Department announced today.
October 26, 2011; U.S. Department of Justice: California-Based DFine Inc. to Pay U.S. More Than $2.3 Million to Settle Claims That Company Paid Kickbacks to Physicians
WASHINGTON - DFine Inc. of San Jose, Calif., has agreed to pay the United States $2.39 million to resolve allegations under the False Claims Act (FCA) that the company paid kickbacks to induce physicians to use certain of the company's devices that are used in treating spinal fractures, the Justice Department announced today.
October 24, 2011; U.S. Attorney; Middle District of Florida: Major Principals of DME Company Sentenced for Medicare and Medicaid Fraud
TAMPA, FL-U.S. Attorney Robert E. O'Neill announces that U.S. District Judge Virginia Hernandez Covington sentenced Gregory Bane (41, Valrico), the vice president for operations and IT manager of Bane Medical Services and Oxygen and Respiratory Therapy to three years in federal prison for conspiracy to commit health care fraud, health care fraud, and submitting false claims. Tracy Bane (41, Valrico), the billing supervisor, was sentenced to six months in federal prison, and 18 months of house arrest for conspiracy to commit health care fraud, health care fraud, and submitting false claims.
October 21, 2011; U.S. Department of Justice: Pfizer to Pay $14.5 Million for Illegal Marketing of Drug Detrol
WASHINGTON - American pharmaceutical company Pfizer Inc. has agreed to pay $14.5 million to resolve False Claims Act allegations related to its marketing of the drug Detrol, the Justice Department announced today. The settlement resolves the last of a group of 10 qui tam, or whistleblower, suits that were filed in the District of Massachusetts and two other districts, beginning in 2003. The other nine suits were settled or dismissed in 2009 as part of the government's global resolution with Pfizer, under which the company agreed to pay $2.3 billion dollars to resolve civil claims and criminal charges regarding multiple drugs.
October 20, 2011; U.S. Attorney; Southern District of New York: Twenty-Four Defendants Charged In Health Care Billing Scams That Defrauded Insurance Companies, Medicare, And Medicaid Out Of Millions Of Dollars
Preet Bharara, the United States Attorney for the Southern District of New York, Janice K. Fedarcyk, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation ("FBI"), Raymond W. Kelly, the Police Commissioner of the City of New York ("NYPD"), Thomas O'Donnell, the Special Agent-in-Charge of the New York Office of the Inspector General, Department of Health and Human Services ("HHS"), and Benjamin M. Lawsky, the Superintendent of the New York Department of Financial Services ("NY DFS"), announced today the unsealing of three separate Indictments, charging 24 defendants with health care fraud. Two of the Indictments charge a total of 22 defendants with participating in fraudulent billing scams that caused no-fault insurance carriers to pay out millions of dollars in reimbursements for medical treatments that were never provided to patients or that were medically unnecessary.
October 20, 2011; U.S. Attorney; Western District of North Carolina: Charlotte Woman Sentenced To 92 Months In Prison For Medicaid Fraud
CHARLOTTE, N.C. - Sarah Lavonne Willis, 49, of Charlotte, was sentenced on Monday, October 17, 2011, to serve 92 months in federal prison, to be followed by three years of supervised release for committing healthcare fraud, money laundering, failure to file tax returns, and possession of a firearm by a convicted felon, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also ordered Willis to pay restitution in the amount of $1,085,041.78 to the North Carolina Medicaid Program and $145,197 to the Internal Revenue Service.
October 20, 2011; U.S. Attorney; Western District of North Carolina: Owner Of Charlotte Health Care Company Sentenced To Prison For $1.9 Million Medicaid Fraud
CHARLOTTE, N.C. - The owner of a Charlotte mental and behavioral health services company was sentenced on Tuesday, October 18, 2011, to serve 15 months in federal prison, to be followed by three years of supervised release for his role in a Medicaid fraud scheme, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
October 19, 2011; U.S. Department of Justice: Miami-Area Halfway House Owner Pleads Guilty to Fraud and Kickback Scheme
WASHINGTON - The owner and president of a Miami-area halfway house company pleaded guilty today for her role in a kickback scheme that funneled patients to a fraudulent mental health provider, American Therapeutic Corporation (ATC), and its related company, the American Sleep Institute (ASI), announced the Department of Justice, FBI and Department of Health and Human Services (HHS).
October 19, 2011; U.S. Attorney; Southern District of Indiana: United States Attorney's Office Recovers $578,820 From Louisville Company In Indiana Health Care Fraud Case
JEFFERSONVILLE - Joseph H. Hogsett, United States Attorney, announced today that civil claims against Premier Home Care, a durable medical equipment provider operating in southern Indiana, as well as central and southeastern Kentucky, have been resolved. Premier has agreed to pay $578,820 to the United States and $21,180 to the State of Indiana, more than twice the estimated damages resulting from the fraudulent acts.
October 18, 2011; U.S. Attorney; District of Maine: Kittery Respiratory Therapist and Business Plead Guilty to Health Care Fraud Offenses
Portland, Maine -- United States Attorney Thomas E. Delahanty II announced today that Seacoast Sleep Solutions, LLC, and its President, Peter Enzinger, of Kittery, each pled guilty in U.S. District Court in Portland to committing health care fraud.
October 18, 2011; U.S. Department of Justice: FDA Chemist Pleads Guilty to Using Insider Information to Trade on Pharmaceutical Stocks Resulting in Almost $4 Million in Profits
WASHINGTON - A Food and Drug Administration chemist pleaded guilty today before U.S. District Court Judge Deborah K. Chasanow in the District of Maryland to one count of securities fraud and one count of making false statements, related to a $3.7 million insider trading scheme that spanned nearly five years.
October 15, 2011; U.S. Attorney; Southern District of Indiana: Hogsett Announces Indianapolis Man Charged With Medicaid Fraud
INDIANAPOLIS - Joseph H. Hogsett, United States Attorney, announced today that Ahmed Mohamed Abugroon, 56, of Indianapolis, Indiana, was charged with health care fraud\ following an investigation by the Federal Bureau of Investigation and the Indiana Attorney General's Medicaid Fraud Control Unit.
October 14, 2011; U.S. Department of Justice: Montgomery, Alabama, Woman Pleads Guilty to Two Tax Fraud and Identity Theft Conspiracies - Multi-Million Dollar Fraud Schemes Used Stolen Information of Medicaid Recipients
WASHINGTON - Veronica Dale, a resident of Montgomery, Ala., pleaded guilty today to two tax fraud and identity theft conspiracies, the Justice Department and the Internal Revenue Service (IRS) announced. In addition to pleading guilty to two counts of conspiracy to defraud the government with respect to claims, Dale pleaded guilty to two counts of filing false, fictitious or fraudulent claims with the United States; two counts of theft of government money, property or records; one count of wire fraud; and one count of aggravated identity theft.
October 14, 2011; U.S. Attorney; Middle District of Louisiana: Jury Convicts Former Director Of The Louisiana Governor's Program On Abstinence Of Mail Fraud
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced that a federal jury has returned a guilty verdict against Gail Ray Dignam, age 64, currently of Diamondhead, Mississippi, and formerly of Baton Rouge, convicting the defendant of two counts of mail fraud. The verdict followed a three-day trial before United States District Judge James J. Brady.
October 13, 2011; U.S. Department of Justice: Owners of Fraudulent Lakeland, Florida, Physical Therapy Company Sentenced to 42 and 46 Months in Prison
WASHINGTON - Miami-area residents Angel Gonzalez and Jorge Zamora, who were the owners and operators of a fraudulent physical therapy company in Lakeland, Fla., were sentenced yesterday and today to 42 months in prison and 46 months in prison, respectively, for their leading roles in a scheme to defraud Medicare, announced the Department of Justice, the FBI and the Department of Health and Human Services.
October 13, 2011; U.S. Attorney; Central District of California: Grand Jury Indicts 14 in L.A.-Based OxyContin Ring that Allegedly Distributed Over 1 Million Pills of the Highly Addictive Painkillers
LOS ANGELES - Federal and state authorities this morning arrested 10 defendants - including two doctors - who are named in a federal indictment that alleges members of a drug trafficking organization illegally obtained and distributed more than 1 million OxyContin pills obtained largely through fraud against public insurance programs such as Medicare.
October 13, 2011; U.S. Attorney; Middle District of Louisiana: Sixth Sentenced For Scheme To Defraud Medicare
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced today that Chief United States District Judge Brian Jackson sentenced Ray Kirt, 45, a resident of New Iberia, Louisiana. Kirt was sentenced to serve forty-two months in prison, to pay restitution of $1,063,873 to Medicare, to forfeit the gross proceeds of his scheme to defraud Medicare, and to three years supervised release after imprisonment. Kirt had previously pled guilty to two counts of health care fraud.
October 12, 2011; U.S. Department of Justice: Owner of Houston Health Care Company Sentenced To 33 Months in Prison for Medicare Fraud
WASHINGTON - The owner and operator of a Houston durable medical equipment (DME) company was sentenced yesterday in Houston federal court to 33 months in prison for his role in a Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services.
October 12, 2011; U.S. Attorney; Eastern District of Pennsylvania: Hospice Owner Charged In Health Care Fraud Scheme
PHILADELPHIA - An indictment1 was unsealed today charging Matthew Kolodesh, a/k/a "Matvei Kolodech", with conspiracy to defraud Medicare of more than $14 million through his home hospice business, announced United States Attorney Zane David Memeger. Kolodesh was arrested this morning.
October 11, 2011; U.S. Attorney; Southern District of Florida: Twenty-Four Indicted In Oxycodone Trafficking And Health Care Fraud Scheme
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration, Christopher B. Dennis, Special Agent in Charge, Health and Human Services, Office of Inspector General, Jos� A. Gonzalez, IRS Special Agent in Charge, Director James K. Loftus, Miami-Dade Police Department, Al Lamberti, Sheriff, Broward Sheriff's Office, and H. Frank Farmer, M.D., State Surgeon General, Florida Department of Health (DOH), announced the unsealing of a federal indictment charging twenty four defendants for their participation in, among other things, conspiracy to distribute oxycodone and oxymorphone, and conspiracy to defraud Medicare. Twenty-one of the defendants, including a doctor, a pharmacist and two pain clinic operators are currently in custody after a multi-agency takedown was executed early this morning. Three defendants, Hattie Mae Green, Eliezer Salgado and Ronald Regains, remain at large.
October 11, 2011; U.S. Attorney for the District of Minnesota: Home Health Care Agency Owner Pleads Guilty To Aggravated Identity Theft Related To Health Care Fraud
MINNEAPOLIS-Recently in federal court, the operator of Universal Home Health, a home health care agency located in Golden Valley, pleaded guilty to an offense related to defrauding Medicaid. On October 7, 2011, Mustafa Hassan Mussa, age 56, of Minnetonka, pleaded guilty to one count of aggravated identity theft. Mussa, who was charged on August 18, 2011, entered his plea before United States District Court Judge Susan Richard Nelson.
October 7, 2011; U.S. Attorney; Eastern District of Arkansas: Former Medical Equipment Supplier Pleads Guilty To Health Care Fraud
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today the guilty plea of Archibong Edem-Effoing, age 58, of Houston, Texas. Edem-Effoing pled guilty to one count of health care fraud in violation of Title 18, United States Code, Section 1347. At the plea hearing held before United States District Judge Brian S. Miller, Edem-Effoing admitted that no later than December 22, 2007 and continuing through March 1, 2009, he engaged in a scheme to defraud Medicare by stealing the identity of a young Nigerian which he then used to apply for a Medicare Durable Medical Equipment (DME) supplier number. After receiving the DME number, he billed Medicare for arthritis kits and power wheelchairs that, in some cases, were not ordered by a physician, and which in other cases were never delivered.
October 7, 2011; U.S. Department of Justice: Detroit-Area Clinic Owner Sentenced to 10 Years in Prison for Role in $9.1 Million Medicare Fraud Scheme
WASHINGTON - Martin Tasis was sentenced today to 10 years in prison for his leading role in a $9.1 million Detroit-area Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services.
October 6, 2011; U.S. Attorney; Eastern District of Pennsylvania: King of Prussia Man Indicted on Health Care Fraud and Aggravated Identity Theft Charges
Elissa Jo Benoit was charged today by indictment with a total of 75 counts involving health care fraud, aggravated identity theft, aiding and abetting the distribution of controlled substances and distribution of controlled substances by a person at least 18 years of age to persons under 21 years of age, announced United States Attorney Zane David Memeger.
October 5, 2011; U.S. Attorney; Western District of North Carolina: Charlotte Woman Pleads Guilty To Scheme To Defraud Medicaid And Money Laundering
CHARLOTTE, N.C. - Joye Strong, 43, of Charlotte, pled guilty today to money laundering and defrauding Medicaid through her company, Advocating for America, LLC, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Joining U. S. Attorney Tompkins in making today's announcement is Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigations Unit (MIU).
October 5, 2011; U.S. Department of Justice: Johnson & Johnson Subsidiary Scios Pleads Guilty to Misbranding Heart Failure Drug Natrecor
SAN FRANCISCO - Scios Inc., a subsidiary of pharmaceutical giant Johnson & Johnson, pleaded guilty today to a misdemeanor violation of the Food, Drug and Cosmetic Act (FDCA) for introducing into interstate commerce its heart failure drug, Natrecor, for a use that was not approved by the Food and Drug Administration (FDA), the Justice Department announced. The district court also sentenced Scios, which is based in Fremont, Calif., to pay an $85 million criminal fine in accordance with the plea agreement between Scios and the United States.
October 5, 2011; U.S. Attorney; Southern District of New York: Manhattan U.S. Attorney Recovers $995,000 in Damages in Health Care Fraud Lawsuit against Columbia University and New York Presbyterian Hospital
NEW YORK - 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 health care fraud lawsuit against The Trustees of Columbia University ("Columbia"), New York Presbyterian Hospital ("Presbyterian Hospital"), and Dr. Erik Goluboff ("Dr. Goluboff"). The complaint, filed along with the settlement, alleges that Columbia, Presbyterian Hospital, and Dr. Goluboff fraudulently caused Medicare to be over-billed for urological procedures and billed for urological tests that were medically unnecessary. The settlement was approved October 4, 2011, in Manhattan federal court by U.S. District Court Judge Leonard B. Sand, and requires Columbia to pay $995,000 in civil damages under the False Claims Act.
October 5, 2011; U.S. Attorney; Southern District of Indiana: Terre Haute Pharmacist Sentenced For Healthcare Fraud And Money Laundering
TERRE HAUTE - United States Attorney Joseph H. Hogsett announced that John D. Love, 54, of Brazil, Ind., was sentenced today to 51 months of imprisonment for healthcare fraud and money laundering. This follows an investigation by the U.S. Department of Health and Human Services, Office of Inspector General, the Internal Revenue Service, the Federal Bureau of Investigation, and Indiana Attorney General Greg Zoeller's Medicaid Fraud Enforcement Unit.
October 3, 2011; U.S. Attorney; Northern District of Illinois: Attorney and Former Edgewater Hospital Owner Indicted for Allegedly Lying and Obstructing Justice to Impede U.S. and Bank Efforts to Collect Judgments Totaling More Than $188 Million
CHICAGO - An Indiana attorney was arrested today in Florida on federal charges alleging that he and his onetime client, the former owner and chief executive of the bankrupt Edgewater Hospital and Medical Center in Chicago, committed perjury and obstruction of justice to thwart efforts by the government and a bank creditor to collect civil judgments totaling approximately $188 million involving fraud that resulted in Edgewater's collapse.

September 2011

September 30, 2011; U.S. Attorney; Eastern District of Arkansas: Pine Bluff Doctor Sentenced In Health Care Fraud And Misbranding Case
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and Patrick J. Holland, Special Agent in Charge of the Food and Drug Administration's Office of Criminal Investigations for the Kansas City Field Office, announced Kelly Dean Shrum, age 43, a Doctor of Osteopathic Medicine who practiced as an obstetrician-gynecologist in Pine Bluff, Arkansas in 2008 and 2009 was sentenced by the Honorable James M. Moody to five years probation on each count of his conviction to be served concurrently. He was ordered to serve 200 hours community service each year of his probation. He was also ordered to pay $204,194.49 restitution and to forfeit $75,000 of proceeds from the health care fraud.
September 30, 2011 - U.S. Attorney; Southern District of Georgia: Miami Man Sentenced to More Than 11 Years In Prison On Multi-Million Dollar Medicare Fraud Scheme
SAVANNAH, GA - Alfredo Rasco, 52, from Miami, Florida was sentenced on Wednesday by United States District Court Judge William T. Moore, Jr. to 133 months in prison for his role in defrauding Medicare of approximately $4 million. Rasco's wife, Niurka Rasco, 50, was also sentenced on Wednesday to 3 years probation for her role in the scheme.
September 30, 2011; U.S. Department of Justice: Louisiana-Based LHC Group Inc. Agrees to Pay U.S. $65 Million to Resolve False Claims Act Allegations
WASHINGTON - LHC Group Inc. has agreed to pay $65 million, plus interest, to the federal government to resolve allegations that it violated the False Claims Act for false home healthcare billings to the Medicare, TRICARE and Federal Employees Health Benefits programs, the Justice Department announced today. The company also agreed to be bound by the terms of a Corporate Integrity Agreement with the Department of Health and Human Services - Office of Inspector General.
September 29, 2011; U.S. Attorney; District of Rhode Island: Nationwide Supplier Of Medical Equipment To Plead Guilty In R.I. To Health Care Fraud, Money Laundering & Selling Adulterated And Misbranded Medical Devices
PROVIDENCE, R.I. - An Illinois businessman has agreed to plead guilty in U.S. District Court in Providence, R.I., to a five-count Information charging him with health care fraud; the introduction of an adulterated and misbranded medical device into interstate commerce; and money laundering, it was announced by U.S. Attorney Peter F. Neronha.
September 29, 2011; U.S. Attorney; Southern District of Texas: Jury Convicts DME Business Owner of Health Care Fraud and Aggravated Identity Theft Scheme
McALLEN, Texas - A federal jury in McAllen has convicted the owner of a durable medical equipment business in connection with a health care fraud and aggravated identity theft scheme, United States Attorney Jos� Angel Moreno announced today along with Health and Human Services - Office of Inspector General (DHHS-OIG) Special Agent-in-Charge Mike Fields, FBI Special Agent-in-Charge Cory Nelson and Texas Attorney General Gregg Abbott.
September 28, 2011; U.S. Attorney; Southern District of Texas: DME Owner Sentenced to Prison for Defrauding Medicare of Millions in Wake of Hurricanes Katrina and Rita
HOUSTON - A former owner of a durable medical equipment company (DME) was sentenced today to more than six years in federal prison for engaging in a conspiracy to defraud Medicare of more than $5 million and wire fraud, United States Attorney Jos� Angel Moreno announced today.
September 28, 2011; U.S. Attorney for the Southern District of Florida: Doral Woman Sentenced To 43 Months For Medicare Fraud
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John V. Gillies, 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 today's sentencing of defendant Isachi Gil, of Doral, Florida. At today's hearing, U.S. District Judge Marcia Cooke sentenced Gil to 43 months in prison, to be followed by three years of supervised release. In addition, Gil was also ordered to perform 300 hours of community service and to pay restitution in the amount of $335,968.
September 27, 2011; U.S. Department of Justice: Kentucky Doctor Pays U.S. $349,860 to Settle False Claims Act Allegations
WASHINGTON -Louisville, Ky., physician Dr. Steven H. Stern and his practice, Kentuckiana Center for Better Bone and Joint Health PLLC (KCB) have agreed to pay $349,860 to settle allegations of overbilling Medicare, the Justice Department announced today.
September 27, 2011; U.S. Attorney; Eastern District of Tennessee: Hill-Rom Company, Inc. Will Pay $41.8 Million To Resolve Federal Health Care Fraud Investigation
KNOXVILLE, Tenn. - Hill-Rom Company, Inc., one of the largest national suppliers of durable medical equipment, has agreed to pay $41.8 million to settle alleged violations of the federal False Claims Act and other federal laws and regulations. This is the largest civil fraud recovery ever by the U.S. Attorney's Office for the Eastern District of Tennessee.
September 27, 2011; U.S. Department of Justice: Two Miami-Area Residents Plead Guilty in $25 Million Health Care Fraud Scheme
WASHINGTON - Two Miami-area residents pleaded guilty late yesterday in U.S. District Court in Miami for their participation in a $25 million home health Medicare fraud scheme, announced the Department of Justice, the Department of Health and Human Services and the FBI.
September 26, 2011; U.S. Attorney; District of North Dakota: Former Director of IHS Pharmacy Sentenced for Drug Charge
BISMARCK - United States Attorney Timothy Q. Purdon announced that on September 26, 2011, Douglas T. Aos, 56, of Belcourt, North Dakota, was sentenced by United States District Court Judge Daniel L. Hovland on a charge of acquisition of a controlled substance by misrepresentation. Aos pleaded guilty to the charge on June 27, 2011.
September 26, 2011; U.S. Department of Justice: Boston Scientific Subsidiary Guidant Pays U.S. $9.25 Million to Settle False Claims Act Allegations
WASHINGTON - Guidant LLC, a wholly owned subsidiary of Boston Scientific Corp. of Natick, Mass., has agreed to pay the United States $9.25 million to resolve False Claims Act allegations, the Justice Department announced today. The government alleges that the company inflated the cost of replacement pacemakers and defibrillators to federal health care programs by knowingly failing to grant warranty credits and rebates to hospitals for pacemakers and defibrillators that were explanted while covered under a product warranty or another credit program.
September 22, 2011; U.S. Attorney; Eastern District of Texas: Tyler, Texas Medical Supply Owner Sentenced for Health Care Fraud Scheme
TYLER, Texas - A 51-year-old Tyler man 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.
September 22, 2011; U.S. Attorney; Northern District of Iowa: Spencer Pharmacist Sentenced For Health Care Fraud
A pharmacist who formerly owned and operated Medicap pharmacy in Spencer, Iowa, and defrauded Medicaid and his own health insurance provider, was sentenced on September 21, 2011, to more than 3 years in federal prison.
September 22, 2011; U.S. Attorney; Southern District of New York: Manhattan U.S. Attorney Announces Settlement With Podiatrist To Pay $800,000 For Submitting False Medicare Claims
Preet Bharara, the United States Attorney for the Southern District of New York, announced that the United States has settled a civil fraud lawsuit it filed against Chaim Chaimowitz, a podiatrist, for submitting false claims to Medicare. According to the lawsuit, Chaimowitz sought reimbursement for non-compensable routine foot care, and billed Medicare for services that could not have been performed in the time period reported. The settlement, entered yesterday in Manhattan federal court by U.S. District Court Judge Robert W.Sweet, requires Chaimowitz to pay $800,000 to the United States under the False Claims Act. Chaimowitz has also entered into an Integrity Agreement with the Office of Inspector General of the Department of Health and Human Services for a five year period that, among other things, requires him to establish and maintain a compliance program and undertake training obligations.
September 21, 2011; U.S. Department of Justice: Ten Miami-Area Residents Plead Guilty in $25 Million Health Care Fraud Scheme
WASHINGTON - Ten Miami-area residents pleaded guilty today and yesterday in U.S. District Court in Miami for their participation in a $25 million home health Medicare fraud scheme, announced the Department of Justice, the Department of Health and Human Services (HHS) and the FBI.
September 19, 2011; U.S. Department of Justice: Former President of Fraudulent Florida Physical Therapy Company Sentenced to 24 Months in Prison for Medicare Fraud Scheme
WASHINGTON - The former president and administrator of a fraudulent physical therapy company in Lakeland, Fla., was sentenced today to 24 months in prison for his role in a scheme to defraud Medicare, announced the Department of Justice, the Department of Health and Human Services and the FBI.
September 19, 2011; U.S. Department of Justice: Owner of Miami-Area Mental Health Company Sentenced to 35 Years in Prison for Orchestrating $205 Million Medicare Fraud Scheme
WASHINGTON - Miami resident Marianella Valera, the owner of a mental health care company, American Therapeutic Corporation, was sentenced today to 35 years in prison for orchestrating a $205 million Medicare fraud scheme, announced the Department of Justice, the Department of Health and Human Services and the FBI.
September 16, 2011; U.S. Department of Justice: Owner of Miami-Area Mental Health Company Sentenced to 50 Years in Prison for Orchestrating $205 Million Medicare Fraud Scheme
WASHINGTON - Miami resident Lawrence Duran, the owner of a mental health care company, American Therapeutic Corporation (ATC), was sentenced today to 50 years in prison for orchestrating a $205 million Medicare fraud scheme, announced the Department of Justice, the Department of Health and Human Services and the FBI.
September 15, 2011; U.S. Attorney; District of New Jersey: Wright Medical Technology, Inc. Deferred Prosecution Agreement With Government Extended For 12 Months
NEWARK, N.J. - The 12-month Deferred Prosecution Agreement executed in September 2010 by Wright Medical Technology, Inc. - a publicly-traded national manufacturer and distributor of orthopaedic implant devices and supplies based in Arlington, Tenn. - has been extended by another 12 months, First Assistant U.S. Attorney J. Gilmore Childers announced.
September 15, 2011; U.S. Attorney; Eastern District of Louisiana: New Orleans Physician Charged With Conspiracy To Commit Health Care Fraud
Dr. Anthony Stephen Jase, age 41 and a resident of New Orleans, Louisiana, was charged in a one-count Bill of Information for conspiracy to commit health care fraud, announced U. S. Attorney Jim Letten.
September 15, 2011; U.S. Attorney; Western District of Missouri: Operation Oxyclean - KC Man Sentenced For Leading $1 Million Drug-Trafficking Conspiracy
KANSAS CITY, Mo. - Beth Phillips, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for leading a conspiracy to illegally distribute more than $1 million worth of OxyContin and oxycodone that were obtained, in part, by defrauding Medicare and other health care programs.
September 14, 2011; U.S. Attorney; Northern District of Georgia: Fake Doctor Pleads Guilty To Health Care Fraud And Criminal HIPAA Violations
Atlanta, GA - Matthew Paul Brown, 30, formerly of Atlanta, Georgia and Nashville, Tennessee, pleaded guilty today in federal district court to charges of health care fraud and wrongful disclosure of individually identifiable health information.
September 14, 2011; U.S. Attorney; Southern District of Florida: Jury Convicts Miami Man For Stealing Identity Information From DCF Computers For Use In Medicare Fraud Scam
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Henry Gutierrez, Postal Inspector in Charge, United States Postal Inspection Service, Miami Division, Michael K. Fithen, Special Agent in Charge, U.S. Secret Service, John V. Gillies, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Dawn E. Case, Inspector General, Florida Department of Children and Families, and James K. Loftus, Director, Miami-Dade Police Department, announced that a jury returned a verdict of guilty on September 12, 2011 against Yenky Sanchez, 25, of Miami. Sanchez was found guilty on one count of conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1349; one count of conspiracy to commit authentication feature fraud, in violation of Title 18, United States Code, Sections 1028(a)(3) and (f); and ten counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The guilty verdict against Sanchez follows on the heels of the guilty plea by his co-conspirator, Raul Lazaro Diaz-Perera, 43, of Miami, for the same charges.
September 14, 2011; U.S. Attorney; Eastern District of Pennsylvania: Durable Medical Equipment Company And Owner Sentenced In Medicare Fraud And Kickback Scheme
PHILADELPHIA - Robert Saul, 38, of Philadelphia, was sentenced yesterday to 66 months in prison for a Medicare fraud and kickback scheme involving his company, R&V Medical Supplies, LLC, also located in Philadelphia, announced United States Attorney Zane David Memeger. Saul pleaded guilty June 3, 2011 to conspiracy, 48 counts of health care fraud, six counts of mail fraud, 47 counts of paying illegal kickbacks, and three counts of obstruction of justice.
September 12, 2011; U.S. Attorney; District of New Jersey: Maxim Healthcare Services Charged with Fraud, Agrees to Pay Approximately $150 Million, Enact Reforms After False Billings Revealed as Common Practice
NEWARK, N.J. - Maxim Healthcare Services, Inc. ("Maxim") - one of the nation's leading providers of home healthcare services - has entered into a settlement to resolve criminal and civil charges relating to a nationwide scheme to defraud Medicaid programs and the Veterans Affairs program of more than $61 million. J. Gilmore Childers, Acting New Jersey U.S. Attorney; Tony West, Assistant Attorney General of the Civil Division of the Department of Justice; Tom ODonnell, Special Agent in Charge of the Health and Human Services Office of Inspector General (HHS OIG) region covering New Jersey; Michael B. Ward, Special Agent in Charge of the FBI's Newark Field Office; and Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of the Inspector General (VA OIG), Northeast Field Office, announced the developments today.
September 9, 2011; U.S. Department of Justice: U.S. Joined False Claims Act Lawsuit Against Florida's Halifax Hospital Medical Center and Halifax Staffing Inc.
WASHINGTON - The United States has partially intervened in a lawsuit under the False Claims Act against Halifax Hospital Medical Center and Halifax Staffing Inc. in the U.S. District Court for the Middle District of Florida, the Department of Justice announced today.
September 7, 2011; U.S. Attorney; Northern District of Illinois: Four Chicago Area Defendants Charged In Nationwide Medicare Fraud Strike Force Takedown; Three Others Charged With Defrauding Private Health Insurers
CHICAGO - An area vascular surgeon, three chiropractors, a psychologist and a nursing home admissions director are among seven defendants charged this week with participating in four separate, unrelated health care fraud schemes to defraud the Medicare program or private health insurers of millions of dollars, federal law enforcement officials announced today.
September 7, 2011; U.S. Attorney; Central District of California: Six Defendants Charged In Los Angeles As Part Of Nationwide Medicare Fraud Strike Force Takedown
Los Angeles - As part of a nationwide effort to target fraud against the Medicare program, two doctors and four others have been charged here for allegedly participating in schemes to defraud the Medicare program of nearly $11 million.
September 7, 2011; U.S. Attorney; Southern District of Texas: Two Houston-Area Residents Charged in Nationwide Medicare Fraud Strike Force Takedown
Houston -The owner of a Medicare referral business and the owner of a medical supply company have been charged for their participation in separate schemes to defraud the Medicare program of more than $62 million, announced the Departments of Justice, Health and Human Services and the Texas Attorney General's Office.
September 7, 2011; U.S. Attorney; Southern District of Florida: 45 Individuals And One Corporation Charged As Part Of Nationwide Operation By Health Care Fraud Prevention And Enforcement Action Teams (Heat)
Miami - Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John V. Gillies, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Christopher Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced charges against forty-five (45) individuals and one corporation as part of a nationwide enforcement operation by HEAT Task Force Teams. The 46 South Florida defendants are allegedly responsible for more than $160 million in false billings to Medicare.
September 7, 2011; U.S. Department of Health and Human Services: Medicare Fraud Strike Force Charges 91 Individuals For Approximately $295 Million In False Billing
WASHINGTON - Attorney General Eric Holder and Health and Human Services (HHS) Secretary Kathleen Sebelius announced today that a nationwide takedown by Medicare Fraud Strike Force operations in eight cities has resulted in charges against 91 defendants, including doctors, nurses, and other medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $295 million in false billing.
September 6, 2011; U.S. Attorney; Eastern District of Kentucky: Medicare Fraud Complaint Filed against Lexington Home Health Agency
LEXINGTON - United States Attorney for the Eastern District of Kentucky, Kerry B. Harvey, announced today that a civil complaint has been filed against Nurses' Registry in Lexington which adds new allegations regarding how the company defrauded Medicare.
September 2, 2011; U.S. Attorney; Western District of North Carolina: Mt. Holly Woman Pleads Guilty To Health Care Fraud Conspiracy And Money Laundering
CHARLOTTE, N.C. - Erika Holland, 41, of Mt. Holly, N.C., entered a plea of guilty today before U.S. Magistrate Judge David S. Cayer, to one count of conspiring to commit health care fraud, and one count of money laundering, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
September 1, 2011; U.S. Department of Justice: OIG Arrests Eleven in Puerto Rico for Alleged Health Care Fraud
The Office of Inspector General for the Department of Health and Human Services arrested eleven individuals this morning in Puerto Rico. The arrests were a result of the Federal grand jury's three indictments and one superseding indictment against thirteen individuals for conspiracy to commit health care fraud.
According to one indictment, one of the schemes was led by Dr. José López-Díaz, owner and operator of the health clinic Centro Pediátrico. With co-conspirators, Dr. José López-Díaz fraudulently billed Medicare for over 1.6 million dollars in services not rendered, receiving over 500,000 dollars. Dr. José López-Díaz billed for over 1800 claims for medical treatment provided to patients at a medical institution for which he never worked and for patients he never saw. He also billed for performing a procedure on female patients that can only be performed on males.
September 1, 2011; U.S. Attorney; Northern District of Texas: UTSW and Parkland Resolve Allegations of Improper Physician Supervision of Surgical Residents
DALLAS - The University of Texas Southwestern Medical Center at Dallas; the University of Texas Southwestern Medical Center at Dallas Medical Service, Research, and Development Plan; the University of Texas Southwestern Health Systems a/k/a UT Southwestern Health Systems (collectively "UTSW") agreed to pay the U.S. and Texas $1.4 million to resolve allegations that it, along with the Dallas County Hospital District d/b/a Parkland Health and Hospital System (Parkland), violated the civil False Claims Act and Texas Medicaid Fraud Prevention Act, announced U.S. Attorney James T. Jacks of the Northern District of Texas. The U.S. and Texas contend defendants caused "upcoded" claims to be submitted to Medicare and Medicaid for teaching physician-related items and services between 2004 and 2007. Defendants fully cooperated with the investigation, and by settling, did not admit any wrong-doing or liability.
September 1, 2011; U.S. Attorney; Northern District of Texas: Owners/Operators Of New Horizons Mental Health Facilities Plead Guilty To Federal Charges
DALLAS - Joanna Jones Ellis Kemp, 68, and her husband, Peter A. Kemp, 67, both of Plano, Texas, each appeared in federal court this morning before U.S. Magistrate Judge Irma C. Ramirez and pleaded guilty to one count of conspiracy to commit false statements relating to health care matters, announced U.S. Attorney James T. Jacks of the Northern District of Texas. They each face a maximum statutory sentence of five years in prison and a $250,000 fine. In addition, restitution could be ordered. Sentencing is set for December 21, 2011, before U.S. District Judge Ed Kinkeade.
September 1, 2011; U.S. Department of Justice: California Medical Billing Company Agrees to Pay U.S. $4.6 Million to Resolve Allegations of False Claims to Federal Health Care Programs
WASHINGTON - Janzen, Johnston & Rockwell Emergency Medicine Management Services Inc. (JJ&R), a provider of billing services for physicians, hospitals and other health care providers, has agreed to pay the United States $4.6 million to settle allegations that it submitted false claims to Medicare and Louisiana's Medicaid program, the Justice Department announced today. JJ&R is headquartered in El Segundo, Calif.
September 1, 2011; U.S. Attorney; Eastern District of Michigan: Eighteen Charged for Medicare Fraud Schemes in Detroit Involving $28 Million in False Billings
DETROIT-Eighteen individuals were charged in court documents unsealed today and yesterday in the Eastern District of Michigan for their participation in a series of separate Medicare fraud schemes involving home health and psychotherapy services, announced the Department of Justice, the Department of Health and Human Services (HHS), the FBI and the HHS Office of Inspector General. According to court documents unsealed today and yesterday in U.S. District Court in Detroit, the separate schemes allegedly involved a total of more than $28 million in fraudulent claims submitted to Medicare for services that were medically unnecessary and/or never provided. Fifteen of the defendants were arrested this morning, one defendant was arrested in July 2011, and two defendants remain at large. In addition, law enforcement agents today executed search warrants at 11 locations and seizure warrants of 28 bank accounts related to the alleged fraud schemes.

August 2011

August 31, 2011; U.S. Attorney; Southern District of Texas: Houston Medical Equipment Company Owner Lands in Federal Prison for Medicare Fraud
HOUSTON - Sunny Robinson, the owner of Memorial Medical Supply - a Houston durable medical equipment business, has been sentenced to 97 months in prison for his role in a Medicare fraud scheme, United States Attorney José Angel Moreno announced today.
August 31, 2011; U.S. Department of Justice: Miami-Area Nurse Pleads Guilty in $25 Million Health Care Fraud Scheme
WASHINGTON - Miami-area resident Farah Maria Perez, a registered nurse, pleaded guilty today for her participation in a $25 million Medicare fraud scheme involving false billings for home health services, announced the Department of Justice, the FBI and the Department of Health and Human Services.
August 30, 2011; U.S. Attorney; District of North Dakota: Belcourt Man Sentenced for Drug Conspiracy Charge
BISMARCK - United States Attorney Timothy Q. Purdon announced that on August 29, 2011, Jordan Delong, 25, of Belcourt, North Dakota, was sentenced on a charge of conspiracy to possess with intent to distribute and distribute a controlled substance. Delong pleaded guilty to the charge on May 16, 2011.
August 25, 2011; U.S. Department of Justice: Detroit Occupational Therapist Pleads Guilty to Medicare Fraud Scheme
WASHINGTON - A Detroit-area occupational therapist pleaded guilty today for her participation in a Medicare fraud scheme, announced the Departments of Justice and Health and Human Services. Carol Gant, 66, pleaded guilty before U.S. District Judge Avern Cohn in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. At sentencing, Gant faces a maximum penalty of 10 years in prison and a $250,000 fine.
August 25, 2011; U.S. Department of Justice: Detroit-Area Clinic Owner Sentenced to 48 Months in Prison for Medicare Fraud Schemes Totaling More Than $15 Million
WASHINGTON- An owner of three Detroit-area clinics was sentenced to 48 months in prison today for his role in schemes that attempted to defraud the Medicare program of more than $15 million, the Departments of Justice and Health and Human Services announced.
August 24, 2011; U.S. Department of Justice: Former "Most Wanted" Health Care Fraud Fugitives Plead Guilty to $9.1 Million Detroit Medicare Fraud Scheme
WASHINGTON - Two sisters who owned a fraudulent Detroit-area medical clinic and who are former "Most Wanted" health care fraud fugitives pleaded guilty today in Miami for their leading roles in a $9.1 million Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services.; Related: OIG Captured Fugitives: Clara and Caridad Guilarte
August 23, 2011; U.S. Attorney; Middle District of Florida: President of DME Company Sentenced to 12 ½ Years for Medicare and Medicaid Fraud
TAMPA, FL-U.S. Attorney Robert E. O'Neill announces that U.S. District Judge Virginia Hernandez Covington today sentenced Ben Bane (64, Plant City) to 12 ½ years in federal prison for conspiracy to commit health care fraud, health care fraud, and submitting false claims. His prison sentence is to be followed by three years of supervised release. Bane was also ordered to pay $7 million in restitution, a $3 million fine, and a $1,000 special assessment. The court also entered a money judgment in the amount of $5,800,000, representing the proceeds of the health care fraud.
August 23, 2011; U.S. Attorney; Northern District of Texas: Government Recovers More Than $1.6 Million From Eleven Cities To Resolve Allegations They Caused Improper Medicare And Medicaid Ambulance Claims
DALLAS - The Texas cities of Plano, Frisco, Richardson, Mesquite, Celina, DeSoto, Corpus Christi, Cedar Hill, Rowlett, North Richland Hills and University Park (collectively "Cities") have agreed to pay the U.S. and Texas the collective amount of $1.69 million to resolve allegations they violated the civil False Claims Act and Texas Medicaid Fraud Prevention Act, announced U.S. Attorney James T. Jacks of the Northern District of Texas. The U.S. and Texas contend all the Cities caused "upcoded" claims to be submitted to Medicare and Medicaid for city-dispatched 911 ambulance transports between 2006 and 2010. All the Cities fully cooperated with the investigation, and by settling, did not admit any wrongdoing or liability.
August 23, 2011; U.S. Department of Justice: Miami-Area Doctor Pleads Guilty in $25 Million Health Care Fraud Scheme
WASHINGTON - A Miami-area medical doctor who owned two medical offices pleaded guilty today for his participation in a $25 million home health Medicare fraud scheme, announced the Department of Justice, FBI and the Department of Health and Human Services (HHS).
August 23, 2011; U.S. Department of Justice: Owner of Miami-Area Mental Health Care Corporation Convicted on All Counts for Orchestrating $205 Million Medicare Fraud Scheme
WASHINGTON - A federal jury today convicted a Miami-area owner of a mental health care company, American Therapeutic Corporation (ATC), for orchestrating a fraud scheme that resulted in the submission of more than $205 million in fraudulent claims to Medicare, announced the Department of Justice, FBI and Department of Health and Human Services.
August 23, 2011; U.S. Department of Justice: Miami-Area Medical Equipment Company Owners Sentenced to Prison for Medicare Fraud Scheme
WASHINGTON - The husband and wife owners and operators of a Miami-area medical equipment company were sentenced today to 70 months and 37 months in prison, respectively, for participating in a durable medical equipment (DME) health care fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services.
August 22, 2011; U.S. Attorney; Eastern District of Pennsylvania: Former Chair of Temple's Ophthalmology Department Convicted of Health Care Fraud
PHILADELPHIA - A federal jury today convicted Dr. Joseph J. Kubacki, 62, of Destin, Florida, of 150 counts of health care fraud, wire fraud, and making false statements in health care matters, announced United States Attorney Zane David Memeger. Kubacki was the Chairperson of the Ophthalmology Department of the Temple University School of Medicine and also served as the Assistant Dean for Medical Affairs when, between 2002 and 2007, he caused thousands of false claims to be submitted to health care benefit programs with false charges totaling more than $4.5 million for services rendered to patients whom Kubacki did not personally see or evaluate.
August 22, 2011; U.S. Department of Justice: Department of Health and Human Services Employee Pleads Guilty to Theft of Government Funds
WASHINGTON - An employee of the Department of Health and Human Services (HHS) pleaded guilty today in U.S. District Court in Asheville, N.C., to theft of approximately $114,494 in government funds, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division.
August 18, 2011; U.S. Attorney; District of Western Oklahoma: New York Men Convicted of Health Care Fraud in Wheelchair Scam
Oklahoma City, Oklahoma - Late yesterday, a jury found two New York men guilty of committing five counts of health care fraud in connection with the sale of power wheelchairs and wheelchair accessories to Medicare beneficiaries, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
August 18, 2011; U.S. Attorney; District of Minnesota: Two Charged in Medicaid Fraud Schemes
MINNEAPOLIS-Earlier today in federal court, a former employee and the operator of Universal Home Health, a home health care agency located in Golden Valley, were charged with offenses related to defrauding Medicaid. In separate Informations, Stephen Jon Rondestvedt, age 58, of Minneapolis, was charged with one count of health care fraud, and Mustafa Hassan Mussa, age 56, of Minnetonka, was charged with one count of aggravated identity theft.
August 17, 2011; U.S. Attorney; Southern District of Georgia: Armenian Nationals Plead Guilty In Multi-Million Dollar Medicare Fraud And Money Laundering Scheme
Brunswick, GA - Sahak Tumanyan, 44, an Armenian national from Los Angeles, pled guilty Monday before Chief United States District Judge Lisa Godbey Wood to his role in the laundering of $1.5 million defrauded from Medicare through a phony medical business in Brunswick, Georgia. Earlier this month, Arthur Manasarian, 48, also an Armenian national from Los Angeles, pled guilty before Chief Judge Wood to his role in the Medicare fraud scheme.
August 17, 2011; U.S. Department of Justice: Four Individuals Convicted in $4.7 Million Louisiana Medicare Fraud Scheme
WASHINGTON - The owner of a Baton Rouge, La., durable medical equipment (DME) company, a medical doctor and two patient recruiters were each convicted late yesterday for their roles in a $4.7 million Medicare fraud scheme, announced the Department of Justice, the FBI, the Department of Health and Human Services and the Medicaid Fraud Control Unit (MFCU) of the Louisiana State Attorney General's Office.
August 17, 2011; U.S. Attorney; Southern District of Florida: Miami Mother Sentenced to Jail in $12.3 Million Health Care Fraud Scheme
MIAMI, FL - Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John V. Gillies, 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, Office of Investigations, announced yesterday's sentencing of Isabel Torres, 48, of Hialeah, Florida, on health care fraud charges.
August 11, 2011; U.S. Attorney; Western District of Kentucky: Baptist Healthcare, Inc. and Hardin Memorial Hospital to Pay $8,900,000 to Settle Improper Billing of Medicare
LOUISVILLE, KY - The United States Department of Justice, United States Attorneys' Offices for the Western and Eastern Districts of Kentucky, and Office of Inspector General of the Department of Health and Human Services today announce the $8,900,000 settlement with Baptist Healthcare Systems, Inc. and Hardin County, Kentucky d/b/a Hardin Memorial Hospital. As part of this settlement, Baptist Healthcare Systems, Inc. has agreed to pay the United States $5,785,000 to resolve claims that the company improperly billed Medicare. Hardin Memorial Hospital, under the management of Baptist Healthcare Systems, Inc., has agreed to pay the United States $3,115,000 to resolve claims that the hospital improperly billed Medicare.
August 10, 2011; U.S. Department of Justice: Los Angeles Jury Convicts Two Church Pastors and Their Employee of $14.2 Million Medicare Fraud Scheme
WASHINGTON - Two pastors of a now defunct Los Angeles church and a woman they employed at their fraudulent durable medical equipment (DME) supply companies were convicted late yesterday of conspiracy and health care fraud charges in connection with a $14.2 million Medicare fraud scheme, announced the Departments of Justice and Health and Human Services (HHS).
August 10, 2011; U.S. Attorney; District of Maryland: Peninsula Regional Medical Center Agrees To Pay $1.8 Million To Resolve Allegations That It Failed To Prevent Medically Unnecessary Cardiac Stent Procedures By Dr. John R. McLean
Baltimore, Maryland - Peninsula Regional Medical Center ("PRMC") in Salisbury Maryland has agreed to pay $1.8 million to settle allegations under the False Claims Act that it was aware of, but failed to take action to prevent medically unnecessary cardiac stent procedures by John R. McLean, formerly a cardiologist with privileges at PRMC.
August 10, 2011; U.S. Attorney; Eastern District of Pennsylvania: Physician And Pharmacist Among Those Arrested In Drug Conspiracy And Health Care Fraud Case
PHILADELPHIA - A 498-count indictment1 was unsealed today charging 53 defendants, including a Montgomery County physician and a Northeast Philadelphia pharmacist, in a multimillion dollar drug conspiracy involving phony prescriptions, phony patients, and an alleged drug trafficking organization.
August 10, 2011; U.S. Attorney; Southern District of Florida: Miami Woman Is Tenth Person Arrested For Her Role In Leading $27 Million Health Care Fraud Conspiracy
MIAMI -- Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John V. Gillies, 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, Office of Investigations, announced today's arrest of Elizabet Lombera, 39, of Miami Lakes, Florida.
August 9, 2011; U.S. Attorney; District of Colorado: Two Former Western Colorado Doctors Indicted For Illegally Prescribing Controlled Substances - Prescriptions Doctors Wrote Were Responsible For a Total of Four Deaths
DENVER - Two Western Colorado doctors, Sam Jahani, M.D., age 49 of Cleveland, Texas, and Eric Peper, D.O., age 53 of Summerland Key, Florida, were indicted by a federal grand jury on August 3, 2011, on charges related to health care fraud, money laundering and dispensing controlled substances in which four cases resulted in death. Jahani was arrested by federal agents without incident in Texas. Peper has yet to be arrested. Jahani will make an appearance in U.S. District Court in Beaumont, Texas this afternoon. No court appearance has yet been set for Peper.
August 8, 2011; U.S. Attorney; Southern District of Florida: Miami Home Health Nurse Sentenced To Ten Years' Imprisonment For Health Care Fraud
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John V. Gillies, 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), Office of Investigations, announced today's sentencing of Armando Santos, 46, of Miami. In May 2001, a federal jury in Miami convicted Santos of one count of conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1349; four counts of health care fraud, in violation of Title 18, United States Code, Section 1347, and two counts of false statements related to health care matters, in violation of Title 18, United States Code, Section 1035. Chief U.S. District Judge Federico Moreno sentenced Santos to the statutory maximum of 10 years' imprisonment as to each of the fraud charges, and five years' imprisonment as to each of the false statement charges. The counts of conviction are to run concurrent to one another.
August 8, 2011; U.S. Attorney; District of Maryland: Oncologist Pleads Guilty To Purchasing Misbranded Drugs
Isabella Martire, M.D., age 52, of Laurel, Maryland, an oncologist in solo practice in Laurel, pleaded guilty to introducing a misbranded drug into interstate commerce. The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Antoinette V. Henry of the Food & Drug Administration - Office of Criminal Investigations, Metro Washington Field Office; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
August 5, 2011; U.S. Attorney; Southern District of Texas: Recruiter in Multi-Million Dollar Health Care Fraud Scheme Pleads Guilty to Conspiracy to Violate the Anti-Kickback Statute
HOUSTON - An accused recruiter in a multi-million dollar health care fraud scheme scheduled for trial on Monday, has instead pleaded guilty to conspiracy to violate the Anti-Kickback Statute, United States Attorney José Angel Moreno announced today. Birdie Leroy Revis, 60, of Houston, pleaded guilty before United States District Judge David Hittner this morning to conspiracy to violate the Anti-Kickback Statute. Trial had been scheduled to begin with jury selection on Monday, Aug. 8, 2011.
August 5, 2011; U.S. Attorney; Southern District of Indiana: Hogsett Announces Indianapolis Man Charged In Health Care Fraud Scheme
INDIANAPOLIS - Joseph H. Hogsett, United States Attorney announced, that earlier this week, William Maultsby, 52, Indianapolis, Indiana, was charged with health care fraud, following an investigation by the U.S. Health and Human Services Inspector General and Indiana Attorney General Medicaid Fraud Control Unit.
August 5, 2011; U.S. Attorney; Central District of California: Orange County Medical Center And Doctor Who Bilked Medicare Agree To Pay $7.5 Million To Settle Fraud Case
Pacific Coast Hematology, Inc., a medical group in Orange County, and Dr. Glen Justice, who was the primary physician at the group, have agreed to pay the United States $7.5 million to settle a civil lawsuit alleging that they submitted false claims to the Centers for Medicare and Medicaid Services.
August 4, 2011; U.S. Attorney; Southern District of Texas: Nursing Home Administrator Arrested for Health Care Fraud and Taking Kickbacks
HOUSTON - An employee of a Houston area nursing home has been arrested as a result of the return of a sealed indictment by a Houston grand jury charging him with conspiracy, health care fraud and violations of the anti-kickback statute arising from a scheme to unlawfully bill federal health care programs for ambulance transport, United States Attorney Jos� Angel Moreno along with Texas Attorney General Greg Abbott announced today.
August 2, 2011; U.S. Attorney; Western District of Kentucky: Owners Of Durable Medical Equipment Companies Indicted For Submitting False Billings To Medicare
A federal grand jury in Louisville, Kentucky has returned a 13 count indictment charging the owners of two durable medical equipment companies with conspiracy, health care fraud, submitting false claims and wire fraud announced David J. Hale, United State Attorney for the Western District of Kentucky.
August 2, 2011; U.S. Department of Justice: Miami-Area Resident Pleads Guilty to Participating in $200 Million Medicare Fraud Scheme
A Miami-area resident pleaded guilty today in U.S. District Court in Miami for his role in two separate fraud schemes that resulted in the submission of more than $200 million in fraudulent claims to Medicare, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).
August 2, 2011; U.S. Attorney; Eastern District of Michigan: Twenty-Six Indicted In Drug Distribution Investigation That Led To Uncovering Massive
Health Care
Fraud
An indictment returned by a federal grand jury in Detroit was unsealed today, charging twenty-six individuals for their participation in a large-scale health care fraud and drug distribution scheme, United States Attorney Barbara L. McQuade announced today. McQuade was joined in her announcement by Special Agent in Charge Robert L. Corso of the Drug Enforcement Administration, Special Agent in Charge Andrew G. Arena of the Federal Bureau of Investigation, and Lamont Pugh, Special Agent in Charge of the Inspector General of the Department of Health and Human Services.
August 1, 2011; U.S. Attorney; Southern District of Georgia: U.S. Files Suit against United Distributors and an Ohio Company for Defrauding the Medicare Program
SAVANNAH, GA - The United States has filed a complaint under the False Claims Act (FCA) against United Distributors, Inc., Commerce Benefits Group, Inc., Thomas Patton of Avon Lake, Ohio, and Linnie Reaves of Smyrna, Georgia. The complaint, entered today in the United States District Court in Savannah, alleges that the defendants violated the FCA by knowingly causing the submission of false and fraudulent claims for payment to the Medicare program.

July 2011

July 28, 2011; U.S. Attorney; Eastern District of Michigan: Southfield Family Practice Doctor, Dr. Gwendolyn Washington, Pleads Guilty to Illegal Prescription Drug Trafficking and Health Care Fraud
Dr. Gwendolyn Washington, M.D., age 67, pleaded guilty today to four felony counts involving drug trafficking and health care fraud, United States Attorney Barbara L. McQuade announced. McQuade was joined in the announcement by Andrew G. Arena, Special Agent in Charge, Federal Bureau of Investigation, Detroit Field Division and Lamont Pugh, III, Special Agent in Charge, Department of Health and Human Services, Office of Inspector General.
July 27, 2011; U.S. Attorney; Southern District of Florida: Miami Husband and Wife Charged with Home Health Care Fraud
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John V. Gillies, 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), Office of Investigations, Miami Regional Office, announced the indictment of Elizabeth Acosta Sanz and Luis Alejandro Sanz, both of Miami, Florida, on charges of conspiracy to commit health care fraud, health care fraud, conspiracy to pay kickbacks, the payment of kickbacks, conspiracy to commit money laundering, and money laundering, in violation of Title 18, United States Code, Sections 1349, 1347, 371 and 1956, respectively.
July 27, 2010; U.S. Attorney; District of Connecticut: Walgreens Pays $140,000 To Settle Allegations Under The False Claims Act
United States Attorney David B. Fein and Connecticut Attorney General George Jepsen today announced that The Walgreen Co., a nationwide retail pharmacy chain, has entered into a civil settlement with the federal and state governments in which it will pay $140,000 to resolve allegations that it violated the False Claims Act and common law.
July 26, 2011; U.S. Attorney; Western District of Texas: Seven Former Texas Medicaid Medical Transportation Program Call Center Employees Arrested On Federal Health Care Fraud Charges
United States Attorney John E. Murphy, Special Agent in Charge Cory B. Nelson, Federal Bureau of Investigation -San Antonio Division, Special Agent in Charge George M. Fields, Department of Health and Human Services Office of Inspector General-Dallas Field Division and Texas Attorney General Greg Abbott announced that federal, state and local authorities arrested 18 individuals this morning, including seven former Texas Medicaid Medical Transportation Program San Antonio call center employees, in connection with a health care fraud investigation focusing on more than 1,000 fraudulent transportation claims totaling approximately $200,000.
July 26, 2011; U.S. Attorney; District of Maryland: Salisbury Cardiologist Convicted Of Implanting Unnecessary Cardiac Stents
A federal jury in Baltimore convicted cardiologist John R. McLean, age 59, of Salisbury, Maryland, today on six health care fraud offenses in connection with a scheme in which Dr. McLean submitted insurance claims for inserting unnecessary cardiac stents, ordered unnecessary tests and made false entries in patient medical records, in order to defraud Medicare, Medicaid and private insurers.
July 26, 2011; U.S. Department of Justice: Two Brooklyn, N.Y., Pharmacists Charged in $3 Million Health Care Fraud Scheme
Two defendants who co-owned and operated two Brooklyn, N.Y.,-area pharmacies were arrested today on health care fraud charges for their alleged participation in a scheme to defraud Medicare Part D that resulted in more than $3 million in fraudulent billings, announced the Department of Justice, FBI and the Department of Health and Human Services and its Office of Inspector General.
July 26, 2011; U.S. Department of Justice: U.S. Government Intervenes in False Claims Lawsuit Against Nurses' Registry and Home Health Corporation
The United States has intervened in a lawsuit against Nurses' Registry and Home Health Corporation in the U.S. District Court for the Eastern District of Kentucky, the Justice Department announced today. The lawsuit was filed in March 2008 by two former Nurses' Registry employees, Alicia Robinson-Hill and David Price, and alleges among other things that Nurses' Registry made false claims to Medicare for medically unnecessary home health services.
July 26, 2011; U.S. Attorney; District of Minnesota: Brooklyn Park Man Pleads Guilty To Defrauding Medicaid
July 25, 2011; U.S. Attorney; Central District of California: Orange County Doctor Sentenced To 18 Months In Prison For Billing For Cancer Meds That Were Never Provided
July 21, 2011; U.S. Department of Justice: Patient Recruiter for Miami Health Care Agency Pleads Guilty in $25 Million Medicare Fraud Scheme
July 20, 2011; U.S. Attorney; District of Massachusetts: Dorchester Pharmacist Convicted For Defrauding Medicare And Medicaid
July 20, 2011; U.S. Attorney; Northern District of Illinois: U.S. Arrests Owners Of Home Health Care Business And Suspended Podiatrist On Charges Alleging Medicare And Visa Fraud
July 20, 2011; U.S. Attorney; District of Colorado: Alpha Sleep Diagnostic Centers And Its Subsidiaries Settles Allegations Of Submitting Improper Claims For Payment To Medicare
July 18, 2011; U.S. Attorney; Middle District of Louisiana: Baton Rouge Man Sentenced To Four-Year Prison Term For Health Care Fraud
July 15, 2011; U.S. Attorney; Eastern District of Tennessee: Physician Receives One Year Prison Sentence for Health Care Fraud and Tax Offenses
July 14, 2011; U.S. Attorney; Central District of Illinois: Indictment Charges Two Doctors with Defrauding Medicaid, Insurance Companies of $24 Million in Operation of Weight-Loss Clinics
July 14, 2011; U.S. Department of Justice: Owner of Fraudulent Physical Therapy Company Pleads Guilty to Medicare Fraud Scheme
July 14, 2011; U.S. Department of Justice: Manager of Miami Health Care Agency and Registered Nurse Plead Guilty in $25 Million Health Care Fraud Scheme
July 13, 2011; U.S. Department of Justice: Three Miami-Area Residents Plead Guilty to Participating in $200 Million Medicare Fraud Scheme
July 13, 2011; U.S. Attorney for the Middle District of Tennessee: Tenncare Fraud Settlement Announced
July 13, 2011; U.S. Attorney; Western District of Washington: Lakewood Oncologist And Wife Indicted For Health Care Fraud, False Statements, Obstruction And Money Laundering
July 12, 2011; U.S. Department of Justice: Patient Recruiter Sentenced to 27 Months in Prison in Connection with Detroit-Area Infusion Therapy Schemes
July 11, 2011; U.S. Attorney, District of New Jersey: Toms River, New Jersey Man Admits Posing As A Doctor, Treating Elderly Patients In Medicare Fraud Scheme
July 8, 2011; U.S. Attorney's Office; Southern District of New York: Leader of Armenian Organized Crime Ring Pleads Guilty in Manhattan Federal Court to Racketeering
July 8, 2011; U.S. Attorney's Office; District of Connecticut: New Milford Clinical Social Worker Pays $210,000 to Settle Allegations Under the False Claims Act
July 8, 2011; U.S. Department of Justice: Co-Owner of Two Health Care Companies Convicted on Multiple Health Care Fraud Charges
July 7, 2011; Federal Bureau of Investigation, Atlanta Division: Atlanta Radiologist Guilty of Fraudulently Passing off Diagnoses Prepared by Non-Physician Employees
July 6, 2011; U.S. Attorney's Office; Middle District of Pennsylvania: Convicted Carbondale Physician Excluded from Participation in All Federal Health Care Programs
July 6, 2011; U.S. Department of Justice: Brooklyn Neurologist Pleads Guilty in Health Care Fraud Scheme
July 6, 2011; U.S. Attorney; District of Maryland: Gambrills Podiatrist Pleads Guilty To Fraudulently Billing Medicare Over $1.1 Million