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Criminal and Civil Enforcement

October 2014

October 23, 2014; U.S. Attorney; Middle District of Pennsylvania
Owner Of Harrisburg Healthcare Services Firm Charged With Additional Offenses
The United States Attorney's Office for the Middle District of Pennsylvania announced that a federal grand jury returned a superseding indictment yesterday charging Rose Umana, 47, Mechanicsburg, the owner and operator of Vision Healthcare Services, Inc., with additional health care fraud and money laundering offenses.
October 22, 2014; U.S. Department of Justice
Founder of Detroit-Area Home Health Agencies Pleads Guilty to Health Care Fraud Conspiracy
The founder of three Detroit-area home health agencies pleaded guilty today in federal court for his role in a $22 million home health care fraud scheme.
October 22, 2014; U.S. Department of Justice
DaVita to Pay $350 Million to Resolve Allegations of Illegal Kickbacks
DaVita Healthcare Partners, Inc., one of the leading providers of dialysis services in the United States, has agreed to pay $350 million to resolve claims that it violated the False Claims Act by paying kickbacks to induce the referral of patients to its dialysis clinics, the Justice Department announced today. DaVita is headquartered in Denver, Colorado and has dialysis clinics in 46 states and the District of Columbia.
October 21, 2014; U.S. Department of
Justice Medicare Fraud Strike Force Case
Miami-Area Physician Assistant Sentenced to 15 Years in Prison for $200 Million Medicare Fraud Scheme
A Miami licensed physician assistant was sentenced today to serve 15 years in prison for participating in a Medicare fraud scheme involving approximately $200 million in fraudulent billings by American Therapeutic Corporation (ATC), a mental health company that was headquartered in Miami.
October 21, 2014; U.S. Department of Justice
Kentucky Cardiologists Agree to Pay $380,000 to Settle False Claims Act Allegations Based on Illegal Referrals
The Department of Justice announced today that two cardiologists based in London, Kentucky, have agreed to pay $380,000 to resolve allegations that they violated the False Claims Act by entering into sham management agreements with Saint Joseph Hospital, also based in London, Kentucky, in exchange for the referral of cardiology procedures and other healthcare services to Saint Joseph.
October 21, 2014; U.S. Attorney; District of Maryland
Timonium Man Sentenced To 18 Months In Prison For Stealing More Than $680,000 From An NIH Research Grant
Baltimore, Maryland - Chief U.S. District Judge Catherine C. Blake sentenced Jason Dietz, age 34, of Timonium, Maryland, today to 18 months in prison, followed by three years of supervised release, for theft of funds from a federal program, in connection with the theft of $683,705 in grant money from the National Institute for Drug Abuse for research conducted at its facilities in Baltimore. Chief Judge Blake also ordered Dietz to pay restitution of $683,705.
October 20, 2014; U.S. Department of Justice
President of Houston Hospital and Three Others Convicted in $158 Million Medicare Fraud Scheme
A federal jury in Houston today convicted the president of Riverside General Hospital (Riverside), his son, and two others for their participation in a $158 million Medicare fraud scheme involving false claims for mental health treatment. Ten defendants have now been convicted in connection with the Riverside fraud scheme.
October 20, 2014; U.S. Attorney; Northern District of Texas
Suburban Dermatologist Convicted Of Cheating Medicare And Private Insurers Of $2.6 Million In Health Care Fraud Scheme
CHICAGO - A dermatologist in west suburban Lombard was convicted today of defrauding Medicare and private health insurers by submitting false claims for more than 800 patients resulting in losses totaling more than $2.6 million. The defendant, DR. ROBERT KOLBUSZ, falsely diagnosed patients with actinic keratosis, or sun-induced skin lesions that have potential to become cancerous, and then billed public and private health insurers for treatments that were ineffective and falsely documented.
October 20, 2014; U.S. Attorney; Northern District of Ohio
Akron doctor pleads guilty to illegally prescribing painkillers
An Akron physician pleaded guilty to illegally prescribing hundreds of thousands of doses of painkillers and other pills to customers for no legitimate medical purpose, even after he learned some customers had died from overdose-related deaths, law enforcement officials said.
October 17, 2014; U.S. Department of Justice
Operators of Houston Area Diagnostic Centers Agree to Pay $2.6 Million to Settle Alleged False Claims Act Violations
Two groups of Houston-based diagnostic centers have agreed to pay the United States a total of more than $2.6 million to settle allegations that they violated the False Claims Act, announced Acting Assistant Attorney General Joyce R. Branda for the Department of Justice's Civil Division and U.S. Attorney Kenneth Magidson for the Southern District of Texas. The settlements were finalized without an admission of liability and without commencement of litigation.
October 16, 2014; U.S. Attorney; Northern District of Texas
Federal Grand Jury Charges San Angelo, Texas, Psychiatrist with 52 Counts of Health Care Fraud
LUBBOCK, Texas - A licensed psychiatrist, who submitted claims for services rendered to nursing home residents in San Angelo, Texas, and other communities in the counties surrounding Tom Green County, Texas, is in federal custody on charges that he defrauded Medicare and Medicaid of nearly $1.75 million, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
October 16, 2014; U.S. Attorney; Southern District of Illinois
Cahokia Man Pleads Guilty To Health Care Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 15, 2014, Quincy O. Gamble, 39, of Cahokia, Illinois, pled guilty to an indictment charging that he engaged in a scheme to commit health care fraud. Sentencing has been set for February 15, 2015, in United States District Court in East St. Louis, Illinois. Gamble will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
October 16, 2014; U.S. Attorney; Southern District of Illinois
Collinsville Man Pleads Guilty To Theft Of Medicaid Funds
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 15, 2014, Lawrence Thigpen, 53, of Collinsville, Illinois, pled guilty to submitting false and fraudulent bills in relation to personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home.
October 16, 2014; U.S. Attorney; Southern District of New York
Yonkers Cardiologist Convicted Of Fraud Sentenced In White Plains Federal Court To Three Years In Prison
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROHAN WIJETILAKA was sentenced today by U.S. District Judge Vincent L. Briccetti in White Plains federal court to three years in prison for health care fraud. WIJETILAKA, who previously pled guilty in June 2014, was also ordered by Judge Briccetti to pay a total of $2 million in forfeiture and restitution.
October 16, 2014; U.S. Attorney; Northern District of New York
Binghamton, New York - Hospital has paid more than $3.37 Million to resolve self-disclosed billing improprieties
ALBANY, NEW YORK - Our Lady of Lourdes Memorial Hospital, Inc. (Lourdes), a 242-bed hospital located in Binghamton, New York, has paid $3,373,898.28 to resolve False Claims Act liability stemming from Medicare billing improprieties that the hospital self-disclosed to the federal government, annnounced United States Attorney Richard S. Hartunian.
October 14, 2014; U.S. Department of Justice
Bioscan Principal Pleads Guilty in Multi-Million Dollar Health Care Fraud and Money Laundering Scheme
A Florida managing member of a shell company pleaded guilty today in federal court in Tampa, Florida, for his role in a multi-million dollar health care fraud and money laundering scheme.
October 14, 2014; U.S. Attorney; Southern District of Florida
Miami-Dade Business Owner Sentenced to 5.5 Years for Medicaid Fraud
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Attorney General Pam Bondi announce the sentencing of Yamile Calvo-Gonzalez, 41, of Homestead. United States District Judge Joan A. Lenard sentenced Calvo-Gonzalez to 66 months in prison, to be followed by three years of supervised release, and ordered her to pay $2,015,286.24 in restitution to the Centers for Medicare and Medicaid Services.
October 14, 2014; U.S. Attorney; District of New Jersey
Compounding Pharmacist Admits Paying Kickbacks for Referrals, Health Care Fraud
CAMDEN, N.J. - A pharmacist with a compounding pharmacy in Lakewood, New Jersey, admitted today to paying tens of thousands of dollars in cash bribes to physicians for referring pain cream prescriptions, defrauding health care benefit programs out of hundreds of thousands of dollars, U.S. Attorney Paul J. Fishman announced.
October 14, 2014; U.S. Attorney; Northern District of Georgia
Radiology Billing Company to Pay $1.95 Million to Resolve False Claims Act Allegations
ATLANTA - The United States Attorney's Office announced that it has reached a settlement with Medical Business Service, Inc. (MBS), which agreed to pay $1.95 million to settle claims that it violated the False Claims Act by fraudulently changing diagnosis codes on claims to Medicare and Medicaid, in order to get the rejected claims paid on behalf of radiologists. MBS was located in Florida, with an office in Duluth, Ga.
October 10, 2014; U.S. Attorney; Southern District of Florida Medicare Fraud Strike Force Case
Three Florida Residents are Charged with Health Care Fraud, Money Laundering and Drug Trafficking
Three Miami residents have been charged in a superseding indictment with health care fraud violations stemming from a $23 million Medicare fraud scheme. Two of the defendants are also charged with drug trafficking for submitting fraudulent prescriptions for oxycodone and other drugs to pharmacies.
October 10, 2014; U.S. Department of Justice
Extendicare Health Services Inc. Agrees to Pay $38 Million to Settle False Claims Act Allegations Relating to the Provision of Substandard Nursing Care and Medically Unnecessary Rehabilitation Therapy
Extendicare Health Services Inc. (Extendicare) and its subsidiary Progressive Step Corporation (ProStep) have agreed to pay $38 million to the United States and eight states to resolve allegations that Extendicare billed Medicare and Medicaid for materially substandard nursing services that were so deficient that they were effectively worthless and billed Medicare for medically unreasonable and unnecessary rehabilitation therapy services, the Justice Department and the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) jointly announced today. This resolution is the largest failure of care settlement with a chain-wide skilled nursing facility in the department's history.
October 9, 2014; U.S. Attorney; Southern District of Illinois
Missouri Woman Sentenced For Health Care Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that today, Tisa V. Vaughn, 49, of Florissant, Missouri, was sentenced on a one-count indictment charging that she engaged in a scheme to commit health care fraud. On March 19, 2014, a jury found Vaughn guilty after a three-day trial in federal court. Today, the district court sentenced Vaughn to fifteen months in federal prison, to be followed by three years of supervised release. Vaughn was also ordered to pay $14,873.56 in restitution back to the State of Illinois and a $100 special assessment.
October 9, 2014; U.S. Attorney; Southern District of New York
Manhattan U.S. Attorney Settles Civil Fraud Claims Against Caremed Pharmaceutical Services For Engaging In Fraudulent Conduct
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas O'Donnell, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General ("HHS-OIG"), New York Region, announced today that the United States filed a civil fraud lawsuit in Manhattan federal court against SORKIN'S RX LTD. D/B/A CAREMED PHARMACEUTICAL SERVICES ("CareMed"), a New York-based pharmacy that sells high-cost specialty drugs used to treat conditions that require complex treatment, such as cancer.
October 8, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Manager of Three Los Angeles Medical Clinics Indicted in $4 Million Medicare Fraud Scheme
An indictment was unsealed today charging two managers and operators of three Los Angeles medical clinics with Medicare fraud and conspiracy to pay illegal kickbacks for medical procedures that were never actually provided.
October 8, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Michigan Home Health Agency Owner Pleads Guilty in $22 Million Medicare Fraud Conspiracy
A former owner and manager of two Detroit-area home health care agencies has pleaded guilty in federal court for his role in a $22 million Medicare fraud conspiracy.
October 8, 2014; U.S. Attorney; Eastern District of Pennsylvania
New Jersey Man Charged With Health Care Fraud Scheme And Illegally Selling Steroids
PHILADELPHIA - An indictment was unsealed today in federal court charging Eric C. Opitz, 45, of Phillipsburg, New Jersey with health care fraud, mail fraud, and the illegal distribution human growth hormones ("HGH") and anabolic steroids, announced United States Attorney Zane David Memeger.
October 7, 2014; U.S. Attorney; District of New Jersey
Clifton, N.J., Ambulance Service Provider Arrested, Charged With Health Care Fraud
NEWARK, N.J. - A Passaic County man who operates a lucrative New Jersey ambulance company was arrested this morning at his home by special agents of the FBI and the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) on charges he ran the service after being barred from doing business with Medicare and laundered government payments, U.S. Attorney Paul J. Fishman announced.
October 6, 2014; U.S. Attorney; Western District of Michigan
Office Manager and Husband of Lansing Area Doctor Sentenced to Prison for Accepting Kickbacks and for Not Reporting to the IRS Income from Medical Marijuana Certifications
GRAND RAPIDS, MICHIGAN - U.S. District Judge Robert Holmes Bell sentenced Mohamad Abduljaber, 50, of Okemos, Michigan to three and a half years of imprisonment on charges of receipt of health care kickback payments and falsifying an income tax return, U.S. Attorney Patrick Miles announced today.
October 6, 2014; U.S. Attorney; Eastern District of Pennsylvania
Podiatrist Charged With Health Care Fraud and Identity Theft
Aileen Gong, D.P.M., 55, of King of Prussia, Pennsylvania, was charged by indictment, on October 3, 2014, with health care fraud, wire fraud, and aggravated identity theft, announced United States Attorney Zane David Memeger. The indictment charges that between 2009 and February 2014, Gong, a podiatrist, submitted at least $480,000 in fraudulent claims to Medicare.
October 3, 2014; U.S. Attorney; Southern District of Illinois
Mount Vernon Woman Pleads Guilty To Health Care Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today, that Margaret R. Teriet, 32, of Mount Vernon, Illinois, pled guilty to a one-count indictment charging that she engaged in a scheme to commit health care fraud. Sentencing has been set for January 15, 2015, in United States District Court in Benton, Illinois. Teriet will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
October 2, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Shell Company Operator Pleads Guilty in Multi-Million Dollar Health Care Fraud and Money Laundering Scheme
A Florida managing member of a shell company pleaded guilty today in federal court in Tampa for his role in a multi-million dollar health care fraud and money laundering scheme.
October 2, 2014; U.S. Attorney; Southern District of Florida Medicare Fraud Strike Force Case
South Florida Doctor and Other Professionals Charged with Health Care Fraud At Biscayne Milieu Health Center, Inc.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Derrick Jackson, Acting Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General's (HHS-OIG), Miami Regional Office, announce that Salo Shapiro, 69, a medical doctor, of Broward County, Marlene Cesar, 63, a licensed nurse practitioner, of Allentown, Pennsylvania and former resident of Miami, and Sonia Gallimore, 73, a licensed mental health counselor, of Broward County, were indicted on charges of conspiracy to commit health care fraud, health care fraud, and false statements related to health care matters, in violation of Title 18, United States Code, Sections 1349, 1347, and 1035.
October 1, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Detroit-Area Operator of Adult Day Care Center, Two Home Health Care Company Owners Convicted in $29 Million Medicare Fraud Conspiracy
A federal jury in Detroit late yesterday convicted the operator of an adult day care center and two individuals who owned and operated a network of home health care companies for their participation in a $29 million Medicare fraud scheme.

September 2014

September 30, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Two Defendants Charged in Connection with Detroit-Area Home Health Kickback Scheme
Two Detroit-area residents were arrested today on charges related to a Medicare fraud scheme in which they are alleged to have referred Medicare beneficiaries to home health care agencies in exchange for kickbacks.
September 30, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Detroit-Area Doctor and Three Others Indicted for Their Alleged Roles in $7 Million Health Care Fraud Scheme
Four defendants, including a Detroit-area physician, were charged in a superseding indictment with a $7 million health care fraud conspiracy. Fifteen defendants have now been charged in this case, including seven who have pleaded guilty for their conduct.
September 30, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Miami Home Health Care Agency Owner Indicted in $8 Million Medicare Fraud Scheme
The owner of a Miami home health care agency has been arrested in connection with an $8 million health care fraud scheme involving Acclaim Home Healthcare Inc.
September 30, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Six Defendants Charged for $6 Million Miami Home Health Care Fraud Scheme
Six South Florida residents have been indicted for their alleged participation in a $6.2 million Medicare fraud scheme involving defunct home health care company Professional Medical Home Health LLC (Professional Home Health).
September 29, 2014; U.S. Department of Justice
Administrator Sentenced to 68 Months in Prison for Role in $6 Million Miami Home Health Care Fraud Scheme
An administrator of a Miami home health care company, Professional Medical Home Health LLC, was sentenced to serve 68 months in prison and ordered to pay $6,257,142 million in restitution today for her participation in a $6 million health care fraud scheme.
September 26, 2014; U.S. Department of Justice
Michigan Physician Pleads Guilty for Role in Medicare Fraud Scheme
A Detroit-area physician who made fraudulent referrals for home health care in a $1.3 million Medicare fraud scheme pleaded guilty today.
September 26, 2014; U.S. Department of Justice
Caremark Will Pay $6 Million to Resolve False Claims Act Allegations
Caremark L.L.C., a pharmacy benefit management company (PBM), will pay the United States $6 million to settle allegations that Caremark knowingly failed to reimburse Medicaid for prescription drug costs paid on behalf of Medicaid beneficiaries who also were eligible for drug benefits under Caremark-administered private health plans, the Justice Department announced today. Caremark is operated by CVS Caremark Corporation, one of the largest PBMs and retail pharmacies in the country.
September 26, 2014; U.S. Department of Justice
Former Owner of Durable Medical Equipment Company Arrested in Health Care Fraud and Money Laundering Scheme
A Miami man was arrested today on health care fraud and money laundering charges in connection with an alleged $24 million scheme to defraud Medicare.
September 26, 2014; U.S. Attorney; Southern District of Illinois
Area Women Plead Guilty To Medicaid Funds Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that on September 25, 2014, Tamekia Hall, 38, of East St. Louis, Illinois, pled guilty to submitting false and fraudulent bills in relation to personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. The investigation determined that Hall was falsifying time sheets in order receive personal assistant payments during times when the customer was actually in the hospital. Also, on today's date, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Maketa Davis 33, of East St. Louis, Illinois, pled guilty to submitting false and fraudulent bills in relation to personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. The investigation determined that Davis was falsifying time sheets in order receive personal assistant payments during times when she was actually working at Lessie Bates Home.
September 25, 2014; U.S. Department of Justice
Owner of Home Health Agency Sentenced to Five Years in Prison for Structuring $1.8 Million in Cash Withdrawals to Conceal a $4.5 Million Healthcare Fraud Scheme
The owner of a home health services company was sentenced to serve five years in prison for his leading role in a conspiracy to structure over $1.8 million in bank withdrawals to conceal a $4.5 million healthcare fraud scheme.
September 25, 2014; U.S. Department of Justice
Seven Defendants Indicted and Three Other Defendants Plead Guilty for Their Roles in $56 Million Medicare Fraud Scheme
A New Orleans grand jury today indicted seven defendants for their roles in a $56 million Medicare fraud scheme that operated in New Orleans and surrounding communities. Thirteen defendants have now been charged in this case, three of whom pleaded guilty to their conduct yesterday.
September 24, 2014; U.S. Attorney; Western District of Michigan
Catholic Charities West Michigan Agrees to Implement Compliance Program in Settlement of Government's False Claims Act Allegations
GRAND RAPIDS, MICHIGAN - Catholic Charities West Michigan, a nonprofit organization based in Grand Rapids, has entered into an agreement with the U.S. Attorney's Office for the Western District of Michigan that requires the agency to implement a compliance program and hire an independent organization to review Catholic Charities' claims for behavioral health services under penalty of a potential exclusion from federal health care programs. The settlement announced today resolves allegations that between May 1, 2010 and December 31, 2013, Catholic Charities' Behavioral Health Unit submitted false Medicaid claims for services that were rendered by a Catholic Charities practitioner with a lapsed license, services that did not comply with applicable supervision and documentation requirements, and services that Catholic Charities upcoded using billing codes for higher-paying services than were actually performed.
September 24, 2024; U.S. Department of Justice
Shire Pharmaceuticals LLC to Pay $56.5 Million to Resolve False Claims Act Allegations Relating to Drug Marketing and Promotion Practices
Pharmaceutical company Shire Pharmaceuticals LLC will pay $56.5 million to resolve civil allegations that it violated the False Claims Act as a result of its marketing and promotion of several drugs, the Justice Department announced today. Shire, located in Wayne, Pennsylvania, manufactures and sells pharmaceuticals, including Adderall XR, Vyvanse and Daytrana, which are approved for the treatment of attention deficit hyperactivity disorder (ADHD), and Pentasa and Lialda, which are approved for the treatment of mild to moderate active ulcerative colitis.
September 24, 2014; U.S. Attorney; Eastern District of New York
Enzo Biochem, Inc. And Enzo Clinical Laboratories Pay $3.5 Million To Resolve Civil Fraud Allegations
U.S. Attorney Loretta E. Lynch today announced that the United States and New York State have entered into a settlement agreement with Enzo Biochem, Inc., and one of its subsidiaries, Enzo Clinical Laboratories (collectively, "Enzo"), to resolve a case brought under the federal False Claims Act and the New York False Claims Act. The matter involves allegations that Enzo wrongfully input diagnosis codes into claim forms that it submitted for payment to the Centers for Medicare & Medicaid Services ("CMS"). Under the terms of the Settlement Agreement, Enzo will pay a total of $3,510,245.94 to resolve the investigation.
September 24, 2014; U.S. Attorney; Eastern District of New York
East Islip Doctor Pleads Guilty To The Illegal Distribution Of Oxycodone
Carmine G. Mandarano, a medical doctor whose practice is located in East Islip, New York, pleaded guilty today to the illegal distribution of oxycodone, a highly addictive prescription pain killer. Mandarano entered his plea before United States Magistrate Judge Gary R. Brown at the United States Courthouse located in Central Islip, New York. At sentencing, Mandarano faces a maximum of 20 years' imprisonment and a $1 million fine. Mandarano has agreed to forfeit $150,000 in criminally-derived proceeds to the government.
September 24, 2014; U.S. Attorney; Eastern District or Arkansas
Fake Nurse Sentenced to 4-Year Prison Sentence
LITTLE ROCK, AR - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that United States District Judge Brian S. Miller sentenced Susan Elaine Boyce, 60, formerly of Pleasant Plains, Arkansas, to four years in prison to be followed by three years of supervised release. Judge Miller also ordered Boyce to pay $175,099.24 in restitution to the Searcy Special School District.
September 23, 2014; U.S. Attorney; Western District of Virginia
Three Indicted For Role In Suboxone, Laboratory Fraud Scheme
ABINGDON, VIRGINIA - A Federal grand jury sitting in the United States District Court for the Western District of Virginia in Abingdon has indicted three individuals on healthcare fraud and kickback charges.
September 22, 2014; U.S. Department of Justice
Former Owner of Los Angeles-Area Medical Equipment Supply Company Sentenced for $2.6 Million Medicare Fraud Scheme
The former owner of a Long Beach, California, medical supply company was sentenced today to serve 30 months in prison and ordered to pay $1,490,532 in restitution for his role in a scheme to provide unnecessary power wheelchairs to Medicare patients, resulting in $2.6 million in fraudulent claims to Medicare.
September 22, 2014; U.S. Attorney; Northern District of Georgia
Hospital and Cardiologist Settle False Claims Act Case
ATLANTA, GA - The United States Attorney's Office announced it has reached settlements with Banks-Jackson-Commerce Hospital and Nursing Home Authority d/b/a Banks Jackson Commerce Medical Center (BJC) and Dr. Narasimhulu Neelagaru that total over $500,000.
September 19, 2014; U.S. Attorney; Southern District of Iowa
Nurse-CEO Sentenced to Federal Prison for Health Care Fraud and Money Laundering
DES MOINES, IA - On September 15, 2014, Angela Shae Ellison, age 47, of Centerville, Iowa, the former owner and CEO of Cornerstone Counseling Center, was sentenced by U.S. District Court Judge Stephanie M. Rose on charges of health care fraud and money laundering, announced U.S. Attorney Nicholas A. Klinefeldt. Ellison was ordered to serve one year and one day in prison, and was ordered to pay $724,359.26 in restitution, and pay $200 to the Crime Victim Fund.
September 18, 2014; U.S. Attorney; Eastern District of Missouri
Cape Girardeau Neurosurgeon, Owner of Medical Device Supplier and Their Two Companies Indicted on Federal Anti-Kickback Charges
Cape Girardeau, MO -MIDWEST NEUROSURGEONS LLC and its owner, DR. SONJAY FONN, and DS MEDICAL LLC and its owner, DEBORAH SEEGER, were indicted for allegedly violating the Medicare Anti-Kickback Statute by conspiring to solicit and receive commissions from medical device manufacturers related to the purchase of spinal implants and supplies used during spinal fusion surgeries performed by Dr. Fonn.
September 18, 2014; U.S. Attorney; Eastern District of Texas
Captured Fugitive Guilty of Health Care Fraud Violations
TYLER, Texas - A 44-year-old captured fugitive has pleaded guilty in connection with a federal health care fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales. Vivian Yusuf, formerly of Port Harcourt, Nigeria, pleaded guilty to conspiracy to commit health care fraud on Sep. 17, 2014 before U.S. Magistrate Judge John D. Love.
September 18, 2014; U.S. Department of Justice
Three Patient Recruiters Sentenced in $20 Million Miami Health Care Fraud Scheme
Three patient recruiters were sentenced to prison today for their participation in a $20 million health care fraud scheme involving defunct home health care company Trust Care Health Services Inc. (Trust Care).
September 17, 2014; U.S. Attorney; Eastern District of Virginia
Medicaid Provider and Wife Convicted of Health Care Fraud
NORFOLK, Va. - W. Wayne Perry, Jr., 55, and his wife, Angela Perry, 52, formerly of Suffolk, Va., were convicted after a three-week trial late yesterday afternoon by a federal jury of one count of conspiracy to commit health care fraud, four counts of health care fraud, eight counts of false statements relating to health care matters, one count of alteration of records and four counts of aggravated identity theft.
September 17, 2014; U.S. Department of Justice
Florida Home Health Care Company and Its Owners Agree to Resolve False Claims Act Allegations for $1.65 Million
A Plus Home Health Care Inc. and its owners, Tracy Nemerofsky and her father, Stephen Nemerofsky, have agreed to pay $1.65 million to the United States to settle allegations that A Plus paid spouses of referring physicians for sham marketing positions in order to induce patient referrals, the Justice Department announced today. A Plus is a home health care company located in Fort Lauderdale, Florida.
September 16, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Detroit-Area Doctor Admits to Providing Medically Unnecessary Chemotherapy to Patients
A Detroit-area hematologist-oncologist pleaded guilty today for his role in a health care fraud scheme, admitting that he administered unnecessary chemotherapy to fraudulently bill the Medicare program and private insurance companies. According to court records, the scheme enabled the doctor to submit approximately $225 million in claims to Medicare over six years.
September 16, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Ambulance Company Manager Pleads Guilty to $5.5 Million Medicare Fraud Conspiracy
The general manager of a Southern California ambulance company pleaded guilty yesterday in Los Angeles to conspiracy to commit Medicare fraud, conspiracy to obstruct a Medicare audit, and making materially false statements to law enforcement officers.
September 16, 2014; U.S. Attorney; District of New Jersey
Two New Jersey Doctors Admit Taking Bribes in Test-Referrals Scheme with New Jersey Clinical Lab
NEWARK, N.J. - Two doctors with practices in Secaucus and Hawthorne, New Jersey, today admitted accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
September 15, 2014; U.S. Attorney; District of Massachusetts
Maryland Skilled Nursing Facility Agrees to Pay $1.3 Million to Resolve Allegtions that It Submitted False Claims for Rehabilitation Therapy
Boston, MA - Episcopal Ministries to the Aging, Inc. (EMA), an Eldersburg, Md. based company that operates William Hill Manor, a skilled nursing facility in Easton, Md., has entered into an agreement to pay $1.3 million to resolve allegations that it submitted false claims for rehabilitation therapy purportedly provided by RehabCare Group East, Inc. (RehabCare), a subsidiary of Kindred Healthcare, Inc.
September 15, 2014; U.S. Department of Justice
Episcopal Ministries to the Aging Inc. to Pay $1.3 Million for Allegedly Causing Submission of Claims for Unreasonable or Unnecessary Rehabilitation Therapy at Skilled Nursing Facility
Episcopal Ministries to the Aging Inc. (EMA), a Maryland not-for-profit corporation that owns skilled nursing facilities, has agreed to pay $1.3 million to the government for submitting false claims to Medicare for unreasonable or unnecessary rehabilitation therapy purportedly provided by RehabCare Group East Inc., a subsidiary of Kindred Healthcare Inc.
September 15, 2014; U.S. Attorney; District of Maryland
Owner Of Alpha Diagnostics Indicted For $7.5 Million Health Care Fraud Scheme
Baltimore, Maryland - A federal grand jury has indicted the owner of Alpha Diagnostics, Rafael Chikvashvili, age 67, of Baltimore, Maryland, on health care fraud and other charges related to a scheme to defraud Medicare and Medicaid of more than $7.5 million. The indictment was returned on September 11, 2014, and unsealed today. Chikvashvili had an initial appearance today in U.S. District Court in Baltimore and was released under the supervision of U.S. Pretrial Services.
September 11, 2014; U.S. Attorney; Western District of Louisiana
Shreveport Woman Pleads Guilty to Health Ccare Fraud, Wire Fraud
SHREVEPORT, La. - The owner and operator of a Shreveport intensive outpatient program company pleaded guilty to charging Medicare for services never rendered, U.S. Attorney Stephanie A. Finley announced today.
September 11, 2014; U.S. Department of Justice
Owner of Tax Return Preparation Franchise and Health Provider Business Sentenced to Prison for Tax Fraud, Healthcare Fraud and Money Laundering
A man formerly of Raleigh, North Carolina, and now of Miami, was sentenced today to serve 135 months in prison for tax fraud, healthcare fraud and money laundering crimes in two separate cases in federal court, announced Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division and U.S. Attorney Ripley Rand for the Middle District of North Carolina.
September 11, 2014; U.S. Attorney; Southern District of New York
New York City Employee Pleads Guilty In Manhattan Federal Court To Million-Dollar Medicaid Fraud
Preet Bharara, United States Attorney for the Southern District of New York, announced today that AKIM MURRAY, an employee of the Medicaid Reimbursement Unit of the New York City Human Resources Administration ("HRA"), pled guilty before U.S. District Judge Richard M. Berman to a Medicaid fraud scheme in which MURRAY, whose job involved issuing reimbursements for Medicaid-eligible expenses, manipulated the system in order to have over one million dollars' worth of checks issued to his friends and criminal associates. Those co-conspirators, in turn, gave MURRAY a substantial cut of the proceeds.
September 9, 2014; U.S. Attorney; District of Columbia
Area Chiropractor Pleads Guilty to Health Care Fraud In Scheme Involving Billings to D.C. Medicaid Program
WASHINGTON - Lewis J. Levine, 57, a chiropractor who practiced in Southeast Washington, pled guilty today to a federal charge of health care fraud for his role in a scheme involving fraudulent claims to the District of Columbia Medicaid program.
September 9, 2014; U.S. Attorney; Middle District of Florida
United States Settles False Claims Act Allegations Against Florida-Based Sleep Clinic And Two Physicians; Joins Lawsuit Against Two Additional Doctors
Jacksonville, Florida B The United States has formally settled part of, and joined in part of, a lawsuit brought by a whistle-blower that alleges a Northeast Florida based sleep clinic intentionally billed the government for millions of dollars of services that were not medically necessary, and, in some instances, were never actually performed. The qui tam complaint, filed by a former employee of the clinic, alleges that the defendants - a sleep clinic and four physicians - violated the False Claims Act (FCA) by knowingly submitting false claims to the government for payment.
September 8, 2014; U.S. Department of Justice
United States Pursues Claims Against Neurosurgeon, Spinal Implant Company, Physician-Owned Distributorships and Their Non-Physician Owners for Alleged Kickbacks and Medically Unnecessary Surgeries
The United States has filed two complaints under the False Claims Act against Michigan neurosurgeon Dr. Aria Sabit, spinal implant company Reliance Medical Systems, two Reliance distributorships-Apex Medical Technologies and Kronos Spinal Technologies-and the companies' owners, Brett Berry, John Hoffman and Adam Pike, the Justice Department announced today. The complaints allege that Apex Medical and Kronos Spinal paid physicians, including Sabit, to induce them to use Reliance spinal implants in the surgeries they performed.
September 8, 2014; U.S. Department of Justice
Owner of Home Health Care Company Sentenced to 75 Months in Prison for $6.5 Million Medicare Fraud Scheme
The owner and operator of a Miami home health care company was sentenced to 75 months in prison today for her participation in a $6.5 million Medicare fraud scheme involving the now defunct home health care company, Nestor's Health Services Inc. (Nestor Home Health).
September 5, 2014; U.S. Department of Justice
Two Companies to Pay $3.75 Million for Allegedly Causing Submission of Claims for Unreasonable or Unnecessary Rehabilitation Therapy at Skilled Nursing Facilities
Life Care Services LLC (LCS), a manager of skilled nursing facilities based in Des Moines, Iowa, and CoreCare V LLP, doing business as ParkVista, a skilled nursing facility in Fullerton, California, have agreed to pay a total of $3.75 million to the government for causing the submission of false claims to Medicare for unreasonable or unnecessary rehabilitation therapy purportedly provided by RehabCare Group East Inc., a subsidiary of Kindred Healthcare Inc.
September 4, 2014; U.S. Attorney; Northern District of Illinois
Suspended Physician Pleads Guilty To Illegally Dispensing Oxycodone And Falsely Billing Medicare In Undercover Probe
CHICAGO - A suburban physician whose medical license was suspended after he was arrested earlier this year pleaded guilty today to health care fraud and illegally prescribing controlled substance medications. The defendant, SATHISH NARAYANAPPA BABU, who owned Anik Life Sciences Medical Corp., admitted that he illegally prescribed oxycodone and other controlled substances, and fraudulently billed Medicare approximately $500,000, and fraudulently collected approximately $216,000, for services he did not provide.
September 3, 2014; U.S. Attorney; District of North Dakota
Glendale California Man Sentenced in Multimillion Dollar Health Insurance Fraud Scheme
FARGO - U. S. Attorney Timothy Q. Purdon announced that on Sept. 3, 2014, Hovakim David Mkhitarian, 31, Glendale, Calif., was sentenced before U. S. District Judge Ralph R. Erickson to serve seven months in prison and seven months electronic home monitoring for charges of conspiracy to commit health care fraud. Mkhitarian was also ordered to pay $2000 in restitution and a $100 special assessment to the Crime Victims Fund.
September 3, 2014; U.S. Attorney; Southern District of Illinois
Prison Inmate Cheats Taxpayers Out Of Medicaid Funds
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 3, 2014, Christopher Spivey, 30, pled guilty to submitting false and fraudulent bills in relation to personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. The investigation determined that Spivey was submitting bills claiming to care for the customer while he was incarcerated in Richland County Jail in Olney, Illinois.
September 3, 2014; U.S. Attorney; Southern District of Illinois
East Saint Louis Woman Pleads Guilty To Health Care Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today, that Beatrice L. Randall, 59, of East Saint Louis, Illinois, pled guilty to a one-count indictment charging that she engaged in a scheme to commit health care fraud. Sentencing has been set for December 5, 2014, in United States District Court in East St. Louis, Illinois. Randall will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
September 3, 2014; U.S. Attorney; Southern District of New York
Staten Island Physician's Assistant And Two Other Individuals Arrested For Illegal Distribution Of Oxycodone Pills
Preet Bharara, the United States Attorney for the Southern District of New York, James J. Hunt, the Acting Special Agent-in-Charge of the New York Field Division of the U.S. Drug Enforcement Administration ("DEA"), Thomas O'Donnell, the Special Agent-in-Charge of the New York Field Office of the United States Department of Health and Human Services Office of the Inspector General ("HHS-OIG"), and William J. Bratton, the Commissioner of the New York City Policy Department ("NYPD"), announced today the unsealing of an Indictment in Manhattan federal court charging LEONARD MARCHETTA, a physician's assistant, WILLIAM TAGLIAFERRO, and GREGORY ZACCAGNINO with federal drug offenses in connection with an oxycodone distribution ring they operated out of a Staten Island-based medical clinic run by MARCHETTA.
September 3, 2014; U.S. Attorney; Middle District of Louisiana
Two More Individuals Sentenced For Their Roles in Large-Scale Medicare Fraud Scheme
BATON ROUGE, LA - A facility administrator and mental health therapist have been sentenced for their roles in an extensive Medicare fraud scheme. Chief U.S. District Court Judge Brian A. Jackson sentenced the individuals.
September 2, 2014; U.S. Attorney; Northern District of California
The United States Sues Nursing Home Owners And Operators And Their Manager Under The False Claims Act
SAN FRANCISCO - The United States filed a civil False Claims Act complaint on Friday against the owners, operators, and manager of two nursing homes in Watsonville, Calif., United States Attorney Melinda Haag announced.
September 2, 2014; U.S. Attorney; Middle District of North Carolina
Medicaid Provider Pleads to Federal Fraud Charges
GREENSBORO, N.C. - A Timberlake, North Carolina, woman pleaded guilty to health care fraud and money laundering, announced United States Attorney Ripley Rand of the Middle District of North Carolina.

August 2014

Friday, August 29, 2014; U.S. Department of Justice
Manufacturer of Spinal Devices and Surgeon to Pay United States $2.6 Million to Settle Alleged Kickback Scheme
Omni Surgical L.P., doing business as Spine 360, a manufacturer of devices used in spinal surgery, and Dr. Jamie Gottlieb, an Indiana spinal surgeon, have agreed to pay $2.6 million to the United States to settle allegations that Spine 360 paid illegal kickbacks to Gottlieb to induce him to use the company's products. Spine 360 is based in Austin, Texas.
Friday, August 29, 2014; U.S. Attorney; Eastern District of Texas
Former Hospital Employee Pleads Guilty To Criminal HIPPA Charges
TYLER, Texas - U.S. Attorney John M. Bales announced today that a former employee of an East Texas hospital has pleaded guilty to criminal HIPAA charges in the Eastern District of Texas.
August 28, 2014; U.S. Department of Justice
United States Intervenes in False Claims Act Lawsuits against Evercare Hospice and Palliative Care, Now Known as Optum Palliative Care and Hospice
The United States has partially intervened against defendants in two whistleblower lawsuits in the Federal District Court for the District of Colorado alleging Evercare Hospice and Palliative Care (Evercare) submitted false claims for the Medicare hospice benefit. Evercare is now known as Optum Palliative and Hospice Care, which provides hospice services across the United States. One of the suits names Evercare's parent companies, including UnitedHealth Group Inc.
August 28, 2014; U.S. Department of Justice
Detroit-Area Man Indicted for Attempting to Conceal Evidence in Connection with Upcoming Trial for $30 Million Medicare Fraud Scheme
A Detroit -area man was indicted today for obstruction of justice in connection with his alleged attempts to conceal evidence relevant to his upcoming trial for an alleged health care fraud scheme with estimated losses exceeding $30 million. Zafar Mehmood, 48, of Ypsilanti, Michigan, is currently awaiting trial for his alleged role in a health care fraud scheme involving, among other allegations, the submission of fraudulent claims to Medicare for services that were medically unnecessary or never provided. Mehmood allegedly used at least four home health agencies in the Detroit area, including Access Care Home Care Inc., Patient Care Home Care Inc., Hands On Healing Home Care Inc. and All State Home Care Inc., to perpetrate his fraud.
August 27, 2014; U.S. Attorney; Northern District of Alabama
Cullman Mother and Son Face Fraud and Tax Charges in Scheme to Steal from East Alabama Health Center
BIRMINGHAM -- Federal prosecutors today charged a Cullman mother and son in connection with a scheme to defraud federal government health agencies and a non-profit east Alabama health center of more than $100,000 for personal expenditures including electronic fish finders, truck tires, cell phones and an adult website membership.
August 27, 2014; U.S. Attorney; Northern District of Georgia
Corporate Vice President Pleads Guilty to Healthcare Fraud Scheme
ATLANTA - Daniel K. Lane, Jr. has pleaded guilty to conspiring to commit healthcare fraud for filing fraudulent claims with Medicare, Blue Cross Blue Shield, and other insurers.
August 27, 2014; U.S. Attorney; Western District of Virginia
Wise Dentist Pleads Guilty To Drug Charges; Newton Mullins Admits to Obtaining Prescription Drugs by Fraud
ABINGDON, VIRGINIA - A Wise, Va. dentist has admitted to obtaining hydrocodone by fraud and to illegally distributing over 2,500 hydrocodone pills. Newton Carroll Mullins, 65, of Wise, Va., who operates a dental practice in Wise, Virginia, waived his right to be indicted this morning and pled guilty to a two-count Information charging him with one count of possession with the intent to distribute and distributing hydrocodone and one count of obtaining hydrocodone by fraud.
August 26, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Owner of Home Health Care Company Sentenced to Nearly Six Years in Prison for Role in $6 Million Medicare Fraud Scheme
A co-owner of Professional Medical Home Health LLC was sentenced today to serve 70 months in prison and ordered to pay $6.2 million in restitution for her participation in a health care fraud scheme involving the now defunct home health care company. According to court documents, Annarella Garcia, 44, of Hialeah, Florida, was a co-owner of Professional Medical Home Health, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. Between December 2008 and February 2014, Garcia and others engaged in a scheme to bill the Medicare Program for expensive physical therapy and home health care services that were not medically necessary or were not provided. During that time, Professional Medical Home Health was paid approximately $6.25 million by Medicare for the fraudulent claims.
August 26, 2014; U.S. Department of Justice
Former Acting HHS Cyber Security Director Convicted for Engaging in Child Pornography Enterprise
The former acting director of cyber security at the U.S. Department of Health and Human Services was convicted by a federal jury in the District of Nebraska today of engaging in a child exploitation enterprise, conspiracy to advertise and distribute child pornography, and accessing a computer with intent to view child pornography in connection with his membership in a child pornography website. Timothy DeFoggi, 56, formerly of Germantown, Maryland, is the sixth individual to be convicted as part of an ongoing investigation targeting three child pornography websites. The three websites were run by a single administrator, who has since been convicted in the District of Nebraska of engaging in a child exploitation enterprise in connection with his administration of the sites.
August 26, 2014; U.S. Attorney; Southern District of Texas
DME Owner Heads to Prison for Multiple Counts of Health Care Fraud
HOUSTON - Andrea Michelle Tellison, 47, has been ordered to federal prison for eight years following her convictions of 14 counts of health care fraud and seven counts of aggravated identity theft, announced United States Attorney Kenneth Magidson. A jury convicted Tellison April 2, 2014, following three days of trial and less than two hours of deliberation.
August 25, 2014; U.S. Attorney; Central District of California
South Bay Doctor Pleads Guilty in Medicare Fraud Case, Admitting He Wrote Bogus Prescriptions for Power Wheelchairs and Other DME
LOS ANGELES - A Los Angeles County physician whose referrals led to more than $1.7 million in fraudulent Medicare billing pleaded guilty this afternoon to participating in a conspiracy to defraud Medicare by writing prescriptions for unneeded durable medical equipment (DME), such as power wheelchairs. Charles Okoye, a 52-year-old Carson resident, pleaded guilty to one count of conspiracy to commit health care fraud.
August 25, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Louisiana Psychiatrist Sentenced to Serve More Than Seven Years in Prison for His Role in $258 Million Medicare Fraud Scheme
A Louisiana psychiatrist was sentenced in federal court in Baton Rouge, Louisiana, today to serve 86 months in prison for his role in a $258.5 million Medicare fraud scheme involving partial hospitalization psychiatric services. He was further ordered to pay $43.5 million in restitution and to forfeit all proceeds from the fraudulent scheme. According to documents filed in the case, Zahid Imran, M.D., 56, of Baton Rouge, served as the medical director of Shifa Community Mental Health Center of Baton Rouge, and co-owned Serenity Center of Baton Rouge and Shifa Community Mental Health Center of Texas. As part of the scheme, Imran admitted mentally ill patients to the facilities, some of whom were inappropriate for partial hospitalization, and then re-certified the patients' appropriateness for the program in an effort to continue to bill Medicare for services. To support the fraudulent Medicare billing, Imran and others falsified patient treatment records to reflect services on dates when no such services were provided. Imran pleaded guilty on May 13, 2014, to conspiracy to commit health care fraud.
August 22, 2014; U.S. Attorney; Western District of Michigan
Lansing Area Doctor Sentenced To Prison for Accepting Kickbacks for Medical Referrals and Not Reporting Cash Income from Signing Medical Marijuana Certifications
GRAND RAPIDS, MICHIGAN - United States District Judge Robert Holmes Bell sentenced Dr. Shannon Wiggins, 45, of Okemos, Michigan to two years of imprisonment on charges of receipt of health care kickback payments and falsifying an income tax return, U.S. Attorney Patrick A. Miles, Jr. announced today. The convictions arise from an Indictment which charged that between January 2004 and April 2011 Dr. Wiggins conspired with her husband, Mohamad Abduljaber, to receive kickbacks for referring patients for electrodiagnostic testing. Dr. Wiggins also admitted signing a false tax return which did not accurately disclose cash income that she earned from signing medical marijuana certifications. Abduljaber has entered guilty pleas to the same charges and awaits sentencing on October 2.
August 22, 2014; U.S. Attorney; Middle District of Florida
Local Woman Indicted On Health Care Fraud Charges
Tampa, FL - United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Lisvet Martinez (42, Tampa) with twelve counts of health care fraud and two counts of making false statements in connection with health care matters. If convicted on all counts, she faces a maximum penalty of twenty years in federal prison on the health care fraud charge and five years on each of the false statement offenses. The indictment also notifies Martinez that the United States intends to seek a forfeiture money judgment in the amount of at least $251,650.00, which is alleged to be traceable to proceeds of the offense.
August 22, 2014; U.S. Attorney; Middle District of Pennsylvania
Tioga County Physician and Three Others Indicted For Unlawful Distribution of Controlled Substances and Health Care Fraud
The United States Attorney's Office for the Middle District of Pennsylvania announced today that a Tioga County physician has been charged with unlawful distribution of controlled substances and health care fraud. Three other individuals are also charged in an indictment returned Tuesday by a federal grand jury in Scranton, Pennsylvania. According to United States Attorney Peter Smith, the indictment charges Dr. John Terry, age 63, and Thomas Ray, age 51, both of Wellsboro, Pennsylvania, with Possession with Intent to Distribute a Controlled Substance and Health Care Fraud. It also charges David Hatch, age 27, Addison, New York, and Stephen Heffner, Jr., age 46, Elkland, Pennsylvania, with health care fraud. The defendants allegedly aided and abetted each other in a scheme to obtain benefits from a health care program by false and fraudulent pretenses.
August 22, 2014; U.S. Attorney; Southern District of Texas
Humble Man Sentenced for Multiple Convictions in Health Care Fraud Conspiracy
HOUSTON-Lawrence Tyler, 42, has been ordered to prison for six years following his convictions of conspiracy to commit health care fraud, seven counts of health care fraud and one count of money laundering, announced United States Attorney Kenneth Magidson. A Houston jury convicted Tyler on May 12, 2014, following five days of trial and less than four hours of deliberation.
August 21, 2014; U.S. Attorney; Northern District of Ohio
Westlake Cardiologist Indicted For Performing Unnecessary Medical Procedures and Tests to Overbill Insurers by $7.2 Million
A 16-count indictment was unsealed in federal court charging a Westlake cardiologist with performing unnecessary catheterizations, tests, stent insertions and causing unnecessary coronary artery bypass surgeries as part of a scheme to overbill Medicare and other insurers by $7.2 million, law enforcement officials said. Dr. Harold Persaud, 55, was indicted on one count of health care fraud, 14 counts of making false statements and one count of engaging in monetary transactions in property derived from criminal activity.
August 21, 2014; U.S. Attorney; District of Maryland
Baltimore Man Sentenced to Prison for Armed Commercial Burglaries and a Home Invasion Robbery
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced William Metcalf, age 39, of Baltimore, today to __ in prison, followed by _ years of supervised release, for conspiracy to commit bank burglary. Judge Motz also entered an order requiring Metcalf to pay restitution of $75,000. The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Howard County Police Chief William McMahon; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Kevin Davis; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region; and Commissioner Anthony W. Batts of the Baltimore Police Department.
August 20, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Michigan Home Health Agency Owner Pleads Guilty to Participating in $22 Million Medicare Fraud Scheme
A greater Detroit-area owner of three home health agencies pleaded guilty today for his role in a $22 million home health care fraud scheme. According to information contained in plea documents, Muhammad Aamir, 43, of Bloomfield Hills, Michigan, admitted that, beginning in 2008 and continuing through January 2013, he conspired with others to bill Medicare for home health care services that were not actually rendered, not medically necessary, and procured through paying illegal kickbacks.
August 20, 2014; U.S. Attorney; Northern District of California
San Francisco and Los Banos Doctor Sentenced To Two Years in Prison in $3.2M Medicare Fraud Scheme
SAN FRANCISCO - Edna Calaustro was sentenced to 24 months in prison and Mele Saavedra was sentenced to 3 years' probation yesterday for conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks involving the Medicare program, and health care fraud. The evidence at trial showed that beginning in approximately December 2006 and continuing through July 2011, Patrick Sogbein, the owner of Debs Medical Distributors, a Van Nuys durable medical equipment company, and his wife, Adebola Adefunke Adebimpe, the owner of Dignity Medical Supply, a Santa Clarita durable medical equipment company, submitted over 400 false and fraudulent claims to Medicare using fraudulent prescriptions and medical records prepared by Calaustro. The evidence also showed that Sogbein and Adebimpe worked with Calaustro, then a San Francisco-based physician, and street level recruiters, including Eduardo Abad and Saavedra.
August 20, 2014; U.S. Attorney; District of Maryland
Pharmacy Store Employees Plead Guilty In Scheme to Defraud Health Care Benefit Programs
Baltimore, Maryland - Vipinkumar Patel (V. Patel), age 30, of Edgewood, Maryland; and Jigar Patel (J. Patel), age 27, of Columbia, Maryland, have each pleaded guilty to making false statements relating to health care matters in connection with a scheme to defraud Medicaid, Medicare and the Federal Employees Health Benefits Program by submitting false claims for prescription refills. Vipinkumar Patel pleaded guilty on August 19, 2014 and Jigar Patel pleaded guilty today.
August 18, 2014; U.S. Attorney; Central District of California
Leader of $20 Million Fraud Scheme Involving Bogus Prescriptions for Expensive Anti-Psychotics Sentenced to 8 Years in Federal Prison
LOS ANGELES - The leader of a $20 million health care fraud scheme based at a Glendale medical clinic was sentenced today to eight years in federal prison for overseeing a plot to fraudulently prescribe expensive anti-psychotic medications and to sell those drugs back to pharmacies through the black market, where the drugs would be billed to the government over and over.
August 18, 2014; U.S. Attorney; District of Arizona
Carondelet Health Network to pay $35 Million to Resolve False Claims Allegations Involving St. Joseph's And St. Mary's Hospitals in Tucson
TUCSON, Ariz. - Carondelet Health Network, an Arizona non-profit corporation doing business as Carondelet St. Mary's Hospital and Carondelet St. Joseph's Hospital in Tucson, Ariz., has agreed to pay the United States $35,000,000 to resolve civil allegations that the hospitals violated the federal False Claims Act by submitting false bills to Medicare and other federal health care programs.
August 18, 2014; U.S. Attorney; Middle District of Louisiana Medicare Fraud Strike Force Case
Baton Rouge Woman Sentenced To Lengthy Prison Term for Her Role in Multi-Million Dollar Medicare Fraud Scheme
BATON ROUGE, LA - An owner and operator of community mental health centers in Baton Rouge, Louisiana, and Houston, Texas, was sentenced today to serve more than eight years in prison for her role in an extensive Medicare fraud scheme. Chief U.S. District Court Judge Brian A. Jackson sentenced HOOR NAZ JAFRI, age 54, of Baton Rouge, Louisiana, to one hundred and two (102) months in federal prison, to be followed by a three-year term of supervised release. JAFRI was also ordered to pay restitution in the amount of $43,528,584 and will be required to forfeit all proceeds from the fraudulent scheme.
August 15, 2014; U.S. Attorney; Eastern District of Pennsylvania
Albert Einstein Healthcare and Fornance Physician Services Agree To Settlement Of Voluntary Disclosure
The United States announces that it has settled claims under the False Claims Act with Albert Einstein Healthcare Network and Fornance Physician Services for improperly billing federal health care programs for services submitted on behalf of Dr. Roman. Einstein and Fornance voluntarily disclosed the allegations and have agreed to pay $ 348,854.00 to resolve the matter.
August 15, 2014; U.S. Department of Justice
Former Owner of Los Angeles Medical Clinic Management Company Pleads Guilty in $3.2 Million Medicare Fraud Scheme
The former owner of a Los Angeles medical clinic management company pleaded guilty today in connection with his role in a scheme to defraud Medicare. Mihran "Mike" Meguerian, 37, of Glendale, California, pleaded guilty before U.S. District Judge Beverly R. O'Connell in the Central District of California to one count of conspiracy to commit health care fraud.
August 14, 2014; U.S. Attorney; Northern District of New York
New York Heart Center to Pay More Than $1.33 Million to Settle Allegations of False Claims Act and Stark Law Violations
ALBANY, NEW YORK: Cardiovascular Specialists, P.C., d/b/a New York Heart Center (NYHC) - a group practice of cardiologists with offices throughout central and northern New York - has agreed to pay the United States $1,336,636.98 plus interest to resolve allegations that it violated the False Claims Act and the Physician Self-Referral Law (commonly known as the Stark Law) by knowingly compensating its physicians in a manner that violated federal law, announced United States Attorney Richard S. Hartunian.
August 14, 2014; U.S. Attorney; Southern District of Georgia
Government Settles False Claims Act Allegations against Optim Healthcare
SAVANNAH, GA: Optim Healthcare, based in Savannah, and others have agreed to pay the United States a total of $4 million to settle allegations that they submitted false claims to the Government. The settlement announced today resolves allegations that between 2008 and 2012, Optim Healthcare, through its physician-owned hospital in Tattnall County and through its ambulatory surgical center in Savannah, submitted claims for surgical and other medical procedures to Medicare that were: (1) improperly inflated, (2) misidentified in order to receive a higher rate of reimbursement, and (3) in violation of the federal prohibition against physician self-referrals, commonly known as the Stark Law. The Stark Law is intended to ensure that a physician's medical judgment is not compromised by improper financial incentives and is based solely on the best interests of the patient.
August 14, 2014; U.S. Attorney; District of Massachusetts
Former Tufts Health Plan Employee Convicted of Disclosing Personal Patient Information
BOSTON - A former employee of Tufts Health Plan pleaded guilty today to stealing personal identifying information belonging to hundreds of customers. The stolen data included names, dates of birth, and Social Security numbers, primarily of customers over the age of 65.
August 13, 2014; U.S. Attorney; Middle District of Georgia
Middle Georgia Tax Preparer Sentenced
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Jackie Elvine, a/k/a Jackie Young, 39, of Jeffersonville, Georgia, was sentenced on August 13, 2014 to serve 5 years (63 months) in prison for health care fraud, aiding in the preparation of a false tax return and false claims against the Government. The sentence was handed down by the Honorable Marc T. Treadwell, United States District Court Judge, in Macon, Georgia. The Court also ordered Ms. Elvine to pay restitution in the amount of $372,008.88.
August 12, 2014; U.S. Attorney; Northern District of Ohio
Former Head of Cleveland Anti-Poverty Agency Charged With Bribery, Conspiracy
The former head of a Cleveland-area anti-poverty agency was charged with accepting more than $23,000 in cash, home renovations and other things of value in exchange for steering work to specific contractors, law enforcement officials said. Jacqueline K. Middleton, 69, of Shaker Heights, was charged in a criminal information with two counts of honest services fraud, one count of bribery in federally funded programs and one count of Hobbs Act Conspiracy.
August 12, 2014; U.S. Attorney; Eastern District of Virginia
Northern Virginia Dermatologist Charged with Health Care Fraud
ALEXANDRIA, Va. - Amir Bajoghli, 44, of McLean, Virginia-a dermatologist, the owner of the Skin & Laser Surgery Center and a former Washingtonian magazine "Top Doctor"-was indicted by a federal grand jury today on 60 counts of health care fraud, aggravated identity theft and obstruction of justice.
August 12, 2014; U.S. Attorney; Eastern District of California
Former Director of Yosemite National Park Child Care Center Charged with Embezzlement
FRESNO, Calif. - Charity Brocchini, 40, of Sonora, has been charged with embezzling more than $42,000 from the Yosemite National Park Child Care Center, United States Attorney Benjamin B. Wagner announced. On Thursday, August 7, 2014, a federal grand jury in Fresno returned an indictment charging her with two counts of wire fraud and one count of embezzlement concerning program receiving federal funds.
August 8, 2014; U.S. Department of Justice
McKesson Corp. to Pay $18 Million to Resolve False Claims Allegations Related to Shipping Services Provided Under Centers for Disease Control Vaccine Distribution Contract
McKesson Corporation has agreed to pay $18 million to resolve allegations that it improperly set temperature monitors used in shipping vaccines under its contract with the Centers for Disease Control and Prevention, the Justice Department announced today. McKesson is a pharmaceutical distributor with corporate headquarters in San Francisco.
August 8, 2014; U.S. Attorney; Southern District of Ohio
Owners of Lawrence County Medical Clinics Plead Guilty To Conspiracy to Commit Health Care Fraud
Four people involved in the operation of Advanced Family Medical Center and Watkins-Tsai Imaging in Coal Grove, Ohio have pleaded guilty to conspiracy to commit health care fraud, admitting that they improperly charged government insurance programs for medically unnecessary procedures.
August 7, 2014; U.S. Attorney; Southern District of Ohio
Columbus Home Health Operator Sentenced in Fraud Scheme
COLUMBUS-The owner of Columbus-based Janis Home Health Care, Eric Isakov, 45, was sentenced to 42 months in prison, followed by two years of supervised release, and ordered to pay restitution of $900,000 for defrauding the Medicare and Medicaid programs by paying kickbacks in the form of gift cards and videogame systems to people who would sign up with his company, and paying senior living centers for referrals.
August 7, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Disbarred Attorney Sentenced to Prison for Her Role in $28.3 Million Medicare Fraud Scheme
A disbarred Florida attorney was sentenced in federal court in Tampa, Florida today to serve 70 months in prison in connection with her role in a $28.3 million Medicare fraud scheme involving false claims for physical and occupational therapy services. Margarita Grishkoff, 60, of Charlotte, North Carolina, formerly of southwest Florida, pleaded guilty on Jan. 24, 2014, to conspiracy to commit health care fraud. In addition to serving a prison term of 70 months, Grishkoff was sentenced to serve three years of supervised release and ordered to pay $14,424,856 in restitution, jointly and severally with her co-conspirators.
August 7, 2014; U.S. Attorney; Northern District of Georgia
Former Co-Owner of Atlanta-based Medical Clinic Chain and Former Hospital Executive Plead Guilty to Illegal Pay-for-Patient Conspiracy
ATLANTA -Tracey Cota and Gary Lang have pleaded guilty to conspiracy to violate the Anti-Kickback Statute by paying and receiving illegal remuneration in exchange for Medicaid patient referrals to hospitals in the Atlanta area and on Hilton Head Island, S.C.
August 4, 2014; U.S. Attorney; Northern District of New York
New York City to Pay More Than $1 Million To Resolve Medicaid False Claims Act Lawsuit
ALBANY, NEW YORK - The City of New York has agreed to pay the United States $1.05 million to settle allegations that the New York City Human Resources Administration (HRA) violated the False Claims Act by causing various insurance companies (known as "managed care organizations" or "MCOs") to provide health care coverage to individuals that HRA knew, or should have known, were ineligible to receive Medicaid benefits through New York State's Medicaid program, according to United States Attorney Richard S. Hartunian. Medicaid is a matching program in which the United States shares with the States the cost of medical services for low income and disabled individuals.
August 4, 2014; U.S. Department of Justice
Community Health Systems Inc. to Pay $98.15 Million to Resolve False Claims Act Allegations
The Justice Department announced today that Community Health Systems Inc. (CHS), the nation's largest operator of acute care hospitals, has agreed to pay $98.15 million to resolve multiple lawsuits alleging that the company knowingly billed government health care programs for inpatient services that should have been billed as outpatient or observation services. The settlement also resolves allegations that one of the company's affiliated hospitals, Laredo Medical Center, improperly billed the Medicare program for certain inpatient procedures and for services rendered to patients referred in violation of the Physician Self-Referral Law, commonly known as the Stark Law. CHS is based in Franklin, Tennessee, and has 206 affiliated hospitals in 29 states.
August 1, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Former Owner of Southern California Medical Supply Company Found Guilty for a 10-Year, $8.3 Million Medicare Fraud Scheme
On July 31, 2014, a federal jury in Los Angeles found that the former owner of a durable medical equipment (DME) supply company located in Carson, California, was guilty of health care fraud charges relating a 10-year scheme in which Medicare was fraudulently billed more than $8 million for DME that was not medically necessary.

July 2014

July 30, 2014; U.S. Attorney; District of Maine
Massachusetts Man Convicted of Failure to Pay Child Support and Drug Charge
Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jay Dandreo, 52, of Lynn, Massachusetts, was convicted yesterday after a two-day jury trial in U.S.District Court in Portland of willfully failing to pay child support and possession with the intent to manufacture or distribute marijuana.
July 30, 2014; U.S. Attorney; Middle District of Pennsylvania
Avoca Woman Charged With Health Care Fraud
The United States Attorney's Office for the Middle District of Pennsylvania announced that Sandra Jalowiec, age 43, Avoca, Pennsylvania was charged with health care fraud in a criminal information filed in U.S. District Court in Scranton yesterday.
July 30, 2014; U.S. Attorney; Middle District of Louisiana Medicare Fraud Strike Force Case
Operators of Healthcare Company Convicted of Fraud and Kickbacks
BATON ROUGE, LA - United States Attorney Walt Green announced that IMEH U. EBERE, age 55, of Baton Rouge, Louisiana, and SHEILA R. HIVES, age 51, of Baker, Louisiana, have each been convicted of health care fraud offenses in connection with their roles at Golden Medical Equipment & Supply, Inc. ("Golden"), a Baton Rouge-based company that provided durable medical equipment in the Baton Rouge area since 2003.
July 29, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Director of Nursing Pleads Guilty in Miami for Role in $7 Million Health Care Fraud Scheme
A former director of nursing pleaded guilty today in connection with a health care fraud scheme involving Anna Nursing Services Corp. (Anna Nursing), a defunct home health care company in Miami.
July 29, 2014; U.S. Department of Justice; Northern District of Illinois Medicare Fraud Strike Force Case
"Doctor At Home" Manager Arrested on Federal Health Care Fraud Charge; Allegedly Ran Extensive Medicare Fraud Scheme
CHICAGO - A registered nurse who operates a suburban health care provider that sends physicians to patients' homes was arrested today on a federal health care fraud charge. The defendant, DIANA JOCELYN GUMILA, who manages Suburban Home Physicians, doing business as Doctor At Home, was charged with health care fraud in a criminal complaint that was unsealed upon her arrest. The complaint alleges a scheme to defraud Medicare by falsely certifying patients as being confined to their homes and requiring home health services; falsely increasing, or "upcoding," claims for services; over-scheduling and double-billing patient visits, submitting false claims for providing extensive oversight of patients' home health services, and billing for tests that were not medically necessary.
July 29, 2014; U.S. Department of Justice; Central District of California
Owner of Home Health Agency Sentenced to Nearly Five Years for Bilking Medicare out of $5 Million in Health Care Fraud Scheme
LOS ANGELES - A registered nurse who operated GreatCare Home Health, Inc., a home health agency based in the Westlake district of Los Angeles, has been sentenced to 57 months in federal prison for orchestrating a $5 million Medicare fraud scheme involving kickbacks to doctors and patients who did not qualify for in-home health services provided by GreatCare.
July 28, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Physician Assistant and Certified Nursing Assistant Convicted in $200 Million Medicare Fraud Scheme
A federal jury in Miami today convicted a physician assistant and a certified nursing assistant, both South Florida residents, for their participation in a Medicare fraud scheme involving approximately $200 million in fraudulent billings by American Therapeutic Corporation (ATC), a mental health care company headquartered in Miami.
July 28, 2014; U.S. Department of Justice
Vascular Solutions Inc. to Pay $520,000 to Resolve False Claims Allegations Relating to Medical Device
Vascular Solutions Inc. (VSI) has agreed to pay $520,000 to resolve allegations that it caused false claims to be submitted to federal health programs by marketing a medical device for the ablation (or sealing) of perforator veins without FDA approval and despite the failure of its own clinical trial, the Justice Department announced today. VSI is a medical device company based in Minneapolis, Minnesota.
July 28, 2014; U.S Attorney; Eastern District of Missouri
Local In-Home Healthcare Provider Sentenced on Fraud Charges
St. Louis, MO - TINA KUEHL was sentenced to 51 months in prison on multiple healthcare fraud charges and separate unrelated bank fraud charges and ordered to pay $200,000 restitution. Her company, Better Way Home Care, was sentenced to three years of probation and also ordered to pay $200,000 restitution. Kuehl and Better Way represented on billing work sheets and claim forms that patients had received therapy services when they knew that the patients had not received the therapy. Kuehl and Better Way caused the submission of hundreds of reimbursement claims to Medicare for services which they knew had not been provided.
July 28, 2014; U.S. Attorney; Eastern District of Pennsylvania
Ambulance Company Owner Sentenced to Eight Years for Medicare Fraud
PHILADELPHIA - Anna Mudrova, 41, of Huntingdon Valley, PA., was sentenced today to eight years in prison for her role in a health care fraud scheme involving Penn Choice Ambulance Inc., operating from Huntingdon Valley, PA and Camp Hill, PA. Mudrova pleaded guilty on February 12, 2014, to conspiracy to commit health care fraud. Mudrova, who was the owner of Penn Choice, was indicted with Mikhail Vasserman, Yury Gerasyuk, Irina Vasserman, Aleksandr Vasserman, Khusen Akhmedov, and Valeriy Davydchik, all of whom have pleaded guilty.
July 24, 2014; U.S. Attorney; Eastern District of Texas
Texas Doctor Convicted of Health Care Fraud Violations
TYLER, Texas - A Dallas County, Texas, physician has been convicted of 15 counts of health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. Tariq Mahmood, 63, of Cedar Hill, Texas, was found guilty by a jury of conspiracy to commit health care fraud, seven counts of health care fraud, and seven counts of aggravated identity theft following a four day trial before U.S. District Judge Michael Schneider.
July 24, 2014; U.S. Attorney; Eastern District of Virginia
Hacker Charged with Breaching Multiple Government Computers and Stealing Thousands of Employee and Financial Records
ALEXANDRIA, Va. - Lauri Love, 29, of Stradishall, England, was indicted today by a federal grand jury in the Eastern District of Virginia on charges of conspiracy, causing damage to a protected computer, access device fraud and aggravated identity theft. According to the indictment, beginning around October 2012, Love and his conspirators accessed without authorization protected computers belonging to DOE, HHS, U.S. Sentencing Commission, FBI's Regional Computer Forensics Laboratory, Deltek, Inc. and Forte Interactive, Inc. Love and his conspirators gained unauthorized access to the protected computers by exploiting a known vulnerability in Adobe ColdFusion, a software program designed to build and administer websites and databases.
July 24, 2014; U.S. Attorney; District of South Dakota
Four Individuals Sentenced In Federal Program Fraud Case
United States Attorney Brendan V. Johnson announced that four individuals convicted of Conspiracy to Commit Theft Concerning Programs Receiving Federal Funds or Theft Concerning Programs Receiving Federal Funds have been sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
July 24, 2014; U.S. Attorney; Southern District of Illinois
U.S. Seniors Deceived By Foreign Scammers in Medicare Hoax
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that a federal grand jury in East St. Louis, Illinois, returned an indictment on July 23, 2014, charging three Canadian citizens with defrauding elderly American citizens. Fawaz Sebai, also known as "Frank Sebag," 36, Vassilios Klouvatos, also known as "Billy Klouvatos," 29, and Lefkothea Klouvatos, also known as "Thea Klouvatos," 22, all of Laval, in the province of Quebec, Canada, were each charged with eight counts of mail fraud, wire fraud, and conspiracy to commit mail and wire fraud. Each charge carries a term in federal prison of up to 25 years, a fine of $250,000 and five years of supervised release. Arrest warrants have been issued. The United States Attorney's Office will seek extradition of the defendants from Canada.
July 24, 2014; U.S. Attorney; Southern District of Florida
Palm Beach County Brothers and Company Sentenced in $4 million "Cash Back" Food Stamp Fraud Scheme
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Ryan P. Lynch, Acting Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff's Office, announce that Ali Jaber, 52, and his brother, Hadi Jaber, 42, both of Greenacres, and Jaber Enterprises, Inc., doing business as Fajita's Meat and Fish Market (Fajita's), located in Palm Springs, were sentenced today before U.S. Judge Donald M. Middlebrooks. Ali and Habi Jaber were each sentenced to 70 months in prison, to be followed by three years of supervised release. Both defendants agreed to pay $4 million, jointly and severally, as restitution to the United States Department of Agriculture. The corporation, Jaber Enterprises, Inc., was sentenced to five years of organizational probation and $4 million in restitution.
July 23, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Owner and Administrator of Miami Home Health Companies Pleads Guilty for Role in $74 Million Health Care Fraud Scheme
A Miami resident who owned a home health care company and was the administrator of another home health care company pleaded guilty today for her participation in a $74 million Medicare fraud scheme. Elsa Ruiz, 45, pleaded guilty today before U.S. District Judge Marcia G. Cooke in the Southern District of Florida to one count of conspiracy to commit health care fraud. Her sentencing is scheduled for Oct. 8, 2014.
July 22, 2014; U.S. Attorney; Western District of Pennsylvania
$343,000 Settlement with American International Biotechnology, LLC Resolves False Claims Act Allegations
PITTSBURGH - American International Biotechnology, LLC ("AIB") has agreed to pay the United States $343,739.45 to settle False Claims Act allegations, United States Attorney David J. Hickton announced today. The settlement resolves allegations that AIB violated the False Claims Act by obtaining improper referrals for genetic tests billed to the Medicare program.
July 22, 2014; U.S. Attorney; Northern District of Georgia
Owner of Allergy Lab Pleads Guilty to Faking Allergy Test Results
ATLANTA - Rahsaan Jackson Garth has pleaded guilty to a charge of health care fraud for faking the results of allergy tests that patients' doctors had ordered.
July 21, 2014; U.S. Attorney; Eastern District of Michigan
Jury Convicts 38th Defendant in Health Care Fraud Scheme
The owner of a Livonia home health care agency and several pharmacies was convicted of health care fraud charges Friday after a seven-day jury trial, United States Attorney Barbara L. McQuade announced today.
July 21, 2014; U.S. Department of Justice
Alabama Hospital System and Physician Group Agree to Pay $24.5 Million to Settle Lawsuit Alleging False Claims for Illegal Medicare Referrals
Mobile, Alabama-based Infirmary Health System Inc. (IHS), two IHS-affiliated clinics and Diagnostic Physicians Group P.C. (DPG) have agreed to pay the United States $24.5 million to resolve a lawsuit alleging that they violated the False Claims Act by paying or receiving financial inducements in connection with claims to the Medicare program, the Justice Department announced today.
July 21, 2014; U.S. Attorney; District of Kansas
Wichita Chiropractor Pleads Guilty In Health Care Fraud Case
TOPEKA, KAN. - A Wichita chiropractor pleaded guilty Monday to defrauding health care insurers of more than $1.3 million, U.S. Attorney Barry Grissom. Jeffrey D. Fenn, 33, Wichita, Kan., pleaded guilty to one count of health care fraud, two counts of aggravated identity theft and one count of tax evasion. In his plea, he admitted that from March 2011 to October 2013 he executed a health care fraud scheme through his businesses, including Wichita Health and Wellness, Fenn Chiropractic, P.A. and Wichita Pain Associates, P.A. Fenn submitted false claims to Medicare, Blue Cross/Blue Shield of Kansas and Coventry Health Care of Kansas, Inc., and the Federal Employees Health Benefits Program.
July 21, 2014; U.S. Attorney; Southern District of West Virginia
Former West Virginia DHHR Employee Pleads Guilty To Fraud
CHARLESTON, W.Va. - Shannon Collins, 41, of Logan, West Virginia, plead guilty today in federal court in Charleston to defrauding the West Virginia Department of Health and Human Resources (DHHR). In 2009, Collins, also known as Shannon Varney, worked as a case worker for the DHHR office in Logan County. Using the social security number of two deceased individuals, Collins set up bogus accounts upon which she made claims for benefits, and had the checks mailed to her. Collins also obtained Mountain State Cards (formerly known as the food stamp program), which she used from April to December of 2009. The total combined loss was in excess of $58,000.
July 18, 2014; U.S. Attorney; Middle District of Florida
Lakeland Doctor Pleads Guilty To Healthcare Fraud
Tampa, FL - United States Attorney A. Lee Bentley, III announces that James F. Pruchniewski, (66, Lakeland) today pleaded guilty to one count of healthcare fraud. Dr. Purchniewski faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
July 17, 2014; U.S. Attorney; District of Maryland
X-Ray Technician Who Became Company's Vice President Pleads Guilty To Health Care Fraud
Baltimore, Maryland - Timothy Emeigh, age 50, of York Springs, Pennsylvania pleaded guilty today to health care fraud arising from a scheme in which insurance providers and Medicare were fraudulently billed for tests interpreted by unlicensed personnel, and for tests and services which in fact had not been provided.
July 15, 2014; U.S. Attorney; District of New Jersey
New York Doctor Admits Taking Bribes in Test-Referrals Scheme with New Jersey Clinical Lab
NEWARK, N.J. - A doctor with a New York practice admitted today to accepting more than $100,000 in exchange for test referrals as part of a massive bribery scheme operated by Biodiagnostic Laboratory Services LLC of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
July 15, 2014; U.S. Attorney; Northern District of Illinois
Skokie Couple Arrested for Allegedly Bilking Medicare and Paying Kickbacks for Patients in $800,000 Health Care Fraud Scheme
CHICAGO - A Skokie couple was arrested today after they and their home health care company were indicted on federal health care fraud charges for allegedly bilking Medicare of more than $800,000 for physician services that were never provided to patients. The couple and their company were also charged with conspiring to pay another defendant $11,000 in illegal kickbacks for patient referrals.
July 14, 2014; U.S. Attorney; Northern District of Texas Medicare Fraud Strike Force Case
Licensed Pharmacist Convicted in "Pill Mill" Operation is sentenced to 60 Months in Federal Prison
DALLAS - A licensed pharmacist, who along with four co-defendants was convicted at trial earlier this year for their roles in a "pill mill" operation in Dallas, was sentenced this afternoon, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Lisa L. Hollier, 44, of Sunnyvale, Texas, was sentenced by U.S. District Judge Barbara M. G Lynn to 60 months in federal prison. She has been in custody since her conviction in February 2014. Hollier owned and operated Urban Independent Pharmacy (UIP), located at 6300 Samuell Blvd., in Dallas. The jury convicted Hollier on one count of conspiracy to distribute, unlawfully, a controlled substance.
July 11, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
South Florida Man Sentenced to Prison for $10.5 Million Medicare Fraud Scheme
A south Florida man was sentenced today in federal court in Tampa, Florida, to serve 48 months in prison in connection with a $10.5 million Medicare fraud scheme involving physical and occupational therapy services. Luis Alberto Garcia Perojo (Garcia), 43, previously pleaded guilty to an information charging him with conspiracy to commit health care fraud. In addition to his prison term, he was sentenced to serve three years of supervised release and ordered to pay $6,248,056 in restitution, jointly and severally with his co-conspirators.
July 10, 2014; U.S. Attorney; District of New Jersey
Head Pharmacist of West Orange Pharmacy Sentenced To 37 Months in Prison for Selling Oxycodone without Prescriptions
NEWARK, N.J. - The former pharmacist in charge of West Orange Pharmacy was sentenced today to 37 months in prison for illegally distributing hundreds of tablets of oxycontin in exchange for thousands of dollars in cash, U.S. Attorney Paul J. Fishman announced. Leonard "Lenny" Stefanelli, 49, of East Hanover, New Jersey, previously pleaded guilty to an information charging him with illegally dispensing oxycodone. Stefanelli also admitted to conspiring with brothers Robert and William Carlucci, both 70, of Florham Park, New Jersey, to submit fraudulent bills to health care benefit providers, including Medicare and Medicaid. U.S. District Judge Faith S. Hochberg imposed the sentence today in Newark federal court.
July 10, 2014; U.S. Attorney; District of Massachusetts
Florida Man Pleads Guilty to Stealing Government Money
Boston - A Florida man pleaded guilty in U.S. District Court in Worcester today to participating in a scheme to steal more than $110,000 from the federal government. Sniders Jean-Jacques, 26, of Sunny Isles Beach, Fla., pleaded guilty to theft of public money. In June 2014, Jean-Jacques was charged in a felony information.
July 10, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Four Patient Recruiters Plead Guilty in Miami to Roles in $20 Million Health Care Fraud Scheme
WASHINGTON-Four patient recruiters pleaded guilty in connection with a $20 million health care fraud scheme involving Trust Care Health Services Inc. (Trust Care), a defunct home health care company. At a hearing today before U.S. District Judge Darrin P. Gayles of the Southern District of Florida, Estrella Perez, 57, and Solchys Perez, 34, both pleaded guilty to conspiracy to commit health care fraud, and Abigail Aguila, 40, pleaded guilty to conspiracy to defraud the United States and receive health care kickbacks.
July 10, 2014; U.S. Attorney; Eastern District of Pennsylvania
Child Care Center Owner Pleads Guilty To Fraud
PHILADELPHIA -Tianna Edwards, 32, of Philadelphia, Pennsylvania, pleaded guilty today to wire fraud in connection with a scheme to defraud the Pennsylvania Department of Public Welfare, announced United States Attorney Zane David Memeger.
July 10, 2014; U.S. Attorney; Northern District of New York
Watertown Area Hospital Settles Health Care Lawsuit
United States Attorney Richard S. Hartunian announced today that his office has settled a civil action under the False Claims Act, against the Carthage Area Hospital. This case involves allegations that the Carthage Area Hospital ("Carthage") double-billed Medicare for operating room services and ambulatory services from September 1, 2006 through June 30, 2010. Carthage submitted approximately 1900 claims for payment to Medicare which improperly contained both revenue code 360 (operating room services) and revenue code 490 (ambulatory surgery).
July 10, 2014; U.S. Attorney; District of Nevada
Former Chief Operating Officer of Nevada Endoscopy Center Pleads Guilty To Medicare/Medicaid Fraud Billing Scheme
LAS VEGAS, Nev. - The former chief operating officer of a defunct Nevada endoscopy center, pleaded guilty today to conspiring with the former owner/physician of the center, Dipak Desai, to defraud Medicare, Medicaid and other private health insurance companies by inflating and overcharging for anesthesia services it provided, announced Daniel G. Bogden, United States Attorney for the District of Nevada. Tonya Rushing, 46, of Las Vegas, pleaded guilty before U.S. District Judge Larry R. Hicks to one count of conspiracy to commit health care fraud, and is scheduled to be sentenced on Sept. 25, 2014, at 1:00 p.m. Rushing faces up to five years in prison and a $250,000 fine.
July 7, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Southern California Man Sentenced to 121 Months in Prison for Medicare Fraud and Identity Theft
A Southern California man who was convicted at trial of conspiracy to commit health care fraud, six counts of health care fraud and six counts of aggravated identity theft was sentenced to serve 121 months in prison today in federal court in Los Angeles. Vahe Tahmasian, 36, of Glendale, California, was found guilty by a federal jury on March 21, 2014, for his role in a $1.5 million Medicare fraud and identity theft scheme. In addition to his prison term of 121 months, he was sentenced to serve three years of supervised release and ordered to pay $994,036 in restitution to the Medicare program.
July 7, 2014; U.S. Attorney; District of New Jersey
Cedar Grove, N.J. Doctor Sentenced To Two Years in Prison for Accepting Bribes for Test Referrals to Clinical Laboratory
NEWARK, N.J. - A Cedar Grove, N.J., doctor was sentenced today to 24 months in prison for accepting tens of thousands of dollars in bribes from Parsippany, N.J.,-based Biodiagnostic Laboratory Services LLC (BLS) as part of a long-running scheme operated by the lab, its president, and numerous associates, U.S. Attorney Paul J. Fishman announced. Dennis Aponte, 46, previously pleaded guilty U.S. District Judge Stanley R. Chesler to violating the Federal Travel Act. Judge Chesler imposed Aponte's sentence today in Newark federal court.
July 3, 2014; U.S. Attorney; Eastern District of Texas
Former Hospital Employee Indicted For Criminal HIPAA Violations
TYLER, Texas - A former employee of an East Texas hospital has been indicted for criminal violations of the Health Insurance Portability and Accountability Act, more commonly known as HIPAA, in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. Joshua Hippler, 30, formerly of Longview, Texas, was indicted on charges of Wrongful Disclosure of Individually Identifiable Health Information. According to the indictment, from December 1, 2012, through January 14, 2013, Hippler, who was then an employee of a covered entity under HIPAA, obtained protected health information with the intent to use the information for personal gain. HIPAA contains provisions protecting the privacy of individually identifiable health information.
July 2, 2014; U.S. Attorney; District of Connecticut
Connecticut Doctor Charged With Illegally Prescribing Oxycodone, Other Controlled Substances
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that DR. John Katsetos, 52, of Fairfield, was arrested yesterday on a charge that he exceeded the scope of his medical license to dispense controlled substances.
July 1, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Physician Pleads Guilty for Role in Detroit-Area Medicare Fraud Scheme
A Detroit-area physician pleaded guilty today for his role in a $7 million health care fraud scheme. Walayat Khan, 66, of Ypsilanti, Michigan pleaded guilty before U.S. District Judge Paul D. Borman in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. Sentencing is scheduled for Oct. 7, 2014.
July 1, 2014; U.S. Attorney; Southern District of New York
Former Operator of NYC Health Clinics Pleads Guilty In Manhattan Federal Court to $30 Million Medicare Fraud Scheme
Preet Bharara, the United States Attorney for the Southern District of New York, Thomas O'Donnell, the Special Agent-in-Charge of the New York Field Office of the United States Department of Health and Human Services Office of the Inspector General, Shantelle Kitchen, the Acting Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation Division, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation, announced today that Oscar Huachillo, the former operator of multiple HIV/AIDS clinics in New York City, pled guilty to orchestrating a scheme to defraud Medicare out of more than $31 million by billing Medicare for expensive treatments that were administered at a highly diluted dose or never administered at all, and were often medically unnecessary. Huachillo also pled guilty to evading more than $3.4 million in federal income taxes by falsely underreporting his income. Huachillo pled guilty before U.S. District Judge Katherine Polk Failla.

June 2014

June 30, 2014; U.S. Attorney; District of North Dakota
Physician Sentenced for Medicare Fraud
FARGO - U.S. Attorney Timothy Q. Purdon announced that John C. Chen, 50, Seattle, Washington, was sentenced on June 30, 2014, before U.S. District Judge Ralph R. Erickson to one year of probation for unlawful possession of an identification feature. Chen, a physician, was also ordered to pay restitution of $56,642.52 to the Centers for Medicare and Medicaid Services, which he satisfied as part of $150,000.00 settlement of a parallel civil proceedings in the Western District of Washington alleging violations under the False Claims Act. Chen was ordered to pay a $25 special assessment to the Crime Victims Fund in addition to his sentence.
June 30, 2014; U.S. Attorney; Western District of Missouri
Former KC Man Sentenced For Fleeing U.S. To Avoid Paying Child Support
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Kansas City, Mo., man who has been living in Thailand was sentenced in federal court today for fleeing the United States in 2007 to avoid paying child support. Randy Lee Essary, 61, of Springfield, Mo., was sentenced by U.S. District Judge Brian C. Wimes to 21 months in federal prison without parole. The court also ordered Essary to pay $170,891 in child support.
June 30, 2014; U.S. Attorney; District of Maryland
Baltimore Man Sentenced To Over 5 Years In Prison For Dozens Of Commercial Burglaries
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Carl Paschall, Jr., age 32, of Baltimore, today to 66 months in prison followed by three years of supervised release for conspiring to commit bank larceny and interstate transportation of stolen goods. Judge Motz also entered an order that Paschall pay $200,000 in restitution. The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Howard County Police Chief William McMahon; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Kevin Davis; Special Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region; and Commissioner Anthony W. Batts of the Baltimore Police Department.
June 27, 2014; U.S. Attorney; District of Maine
California Man Pleads Guilty to Theft and Embezzlement from the Passamaquoddy Tribe
Bangor, Maine - United States Attorney Thomas E. Delahanty II announced that Charles Fourcloud, 59, of San Jose, California, pleaded guilty yesterday in U.S. District Court in Bangor, to stealing and embezzling funds from the Passamaquoddy Tribe at Pleasant Point.
June 27, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Patient Recruiter Pleads Guilty For Role in $6.5 Million Health Care Fraud Scheme
WASHINGTON - A patient recruiter for a Miami home health care agency pleaded guilty today in connection with a health care fraud scheme involving defunct home health care company Nestor's Health Services Inc. (Nestor HH). The owner and operator of Nestor HH pleaded guilty to charges related to the scheme earlier this month. On June 27, 2014, Euridice Borroto, 45, of Miami, Florida, pleaded guilty before U.S. Magistrate Judge Jonathan Goodman in the Southern District of Florida to one count of conspiracy to solicit and receive health care kickbacks and to defraud the United States. Sentencing is scheduled for Aug. 25, 2014.
June 27, 2014; U.S. Attorney; Southern District of New York
Manhattan U.S. Attorney Files Civil Fraud Suit against Hospital Group for Fraudulently Delaying Repayment of Nearly $1 Million of Medicaid Overcharges
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas P. DiNapoli, the New York State Comptroller, today announced the filing and unsealing of a civil fraud lawsuit against Continuum Health Partners, Inc., Beth Israel Medical Center d/b/a Mount Sinai Beth Israel, and St. Luke's-Roosevelt Hospital Center d/b/a Mount Sinai St. Luke's and Mount Sinai Roosevelt for the hospitals' fraudulent delay in fully repaying nearly $1 million in Medicaid overpayments for almost two years after it had discovered the overpayments. Federal law requires that when a recipient of Government funds discovers it has been overpaid, it must repay the Government within 60 days, but the hospitals in this case did not complete their repayments for nearly two years, and then only after repeated Government inquiries.
June 26, 2014; U.S. Attorney; District of Maryland
Doctors Indicted For Health Care Fraud
Greenbelt, Maryland - A federal grand jury has indicted two doctors, Paramjit Singh Ajrawat, age 60, and his wife, Sukhveen Kaur Ajrawat, age 56, both of Potomac, Maryland, on charges of health care fraud in connection with the pain clinic they owned and operated. The indictment was returned on June 24, 2014.
June 26, 2014; U.S. Attorney; Eastern District of Pennsylvania
Ambulance Company Manager Sentenced To Five Years for Role in Medicare Fraud Conspiracy
PHILADELPHIA - Mikhail Vasserman, 51, of Philadelphia, PA., was sentenced today to five years in prison for his role in a health care fraud scheme involving Penn Choice Ambulance Inc., operating from Huntingdon Valley, PA and Camp Hill, PA. Vasserman pleaded guilty on October 21, 2013 to conspiracy to commit health care fraud, false statements relating to health care matters, and paying kickbacks to patients, a total of 14 counts. Vasserman, who was the manager for Penn Choice's Huntingdon Valley base, was indicted with the company's owner Anna Mudrova, and operators Yury Gerasyuk, Irina Vasserman, Aleksandr Vasserman, Khusen Akhmedov, and Valeriy Davydchik, all of whom have pleaded guilty.
June 26, 2014; U.S. Attorney; Western District of Virginia
Operators of Brian Center Health and Rehabilitation Center Indicted
ROANOKE, VIRGINIA - A Federal Grand Jury in the Western District of Virginia in Roanoke has charged four individuals with a variety of Federal crimes, including racketeering [RICO], relating to the operation of a Weber City, Va., skilled nursing facility. In an indictment returned Tuesday, June 24, 2014, the Grand Jury has charged Avi Klein, 45, of Miami Beach, Fla., Alicia Dietrich, 52, of Lancaster, Ohio, Charles R. Menten, 62, of Wilton Manors, Fla., and Vicki Cox, 46, of Kingsport, Tenn. with various crimes relating to the operation of the nursing facility formerly known as the Brian Center Health and Rehabilitation Center in Weber City, Va.
June 25, 2014; U.S. Department of Justice
Nation's Largest Nursing Home Pharmacy Company to Pay $124 Million to Settle Allegations Involving False Billings to Federal Health Care Programs
Omnicare Inc., the nation's largest provider of pharmaceuticals and pharmacy services to nursing homes, has agreed to pay $124.24 million for allegedly offering improper financial incentives to skilled nursing facilities in return for their continued selection of Omnicare to supply drugs to elderly Medicare and Medicaid beneficiaries, the Justice Department announced today. Omnicare is headquartered in Cincinnati, Ohio.
June 25, 2014; U.S. Attorney; Western District of North Carolina
Huntersville Physician Pleads Guilty To Health Care Fraud and Tax Fraud and Agrees To Pay $6.2 Million to Settle Civil Fraud Claims
CHARLOTTE, N.C. - Mark Tuan Le, an internal medicine physician and former owner of Northcross Medical Center, pleaded guilty today to federal criminal charges in connection with a healthcare fraud scheme that billed health insurers for services that were not performed and for evading over $800,000 in taxes in 2009 and 2010, announced Anne M. Tompkins U.S. Attorney for the Western District of North Carolina. Earlier this month, Le, 55 of Huntersville, N.C., also agreed to pay $6.2 million to the United States to settle civil fraud allegations that Le and his medical center defrauded Medicare and Medicaid by submitting claims for medically unnecessary diagnostic test and procedures. The $6.2 million settlement is the Western District's largest ever against a single physician.
June 25, 2014; U.S. Attorney; Eastern District of Pennsylvania
Ambulance Company Co-Owner Sentenced To 13 1/2 Years for Health Care Fraud Scheme
PHILADELPHIA - Vadim Fleshler, 33, of Philadelphia, PA, was sentenced today to 162 months in prison for a healthcare fraud scheme involving Superior EMS Ambulance Co., located in Huntingdon Valley, PA. Fleshler was a founder of Superior EMS Ambulance and managed its day-to-day operations. In December 2013, Fleshler pleaded guilty to all counts against him in the indictment including health care fraud, false statements in connection with health care matters, and conspiracy to commit health care fraud.
June 25, 2014; U.S. Attorney; District of Idaho
Caldwell Man Pleads Guilty to Social Security Fraud
BOISE - Jose Louis Fernandez, 44, of Caldwell, Idaho, pleaded guilty today in federal court to one count of Social Security Fraud by Concealment of Material Facts, U.S. Attorney Wendy J. Olson announced. Sentencing is set before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise on September 4, 2014.
June 24, 2014; U.S. Attorney; Northern District of Iowa
Nursing Facility Agrees To Repay $500,000 to Resolve Civil Overpayment Allegations
Blackhawk Lifecare Center, a skilled nursing facility in Lake View, Iowa, has agreed to pay $500,000 to resolve civil allegations that the facility, which utilized a third party therapy services provider, submitted or caused to be submitted improper therapy services claims for payment to the government. The government did not allege that Blackhawk's care resulted in patient harm or jeopardy to patients' conditions. As part of the settlement, Blackhawk did not admit to any liability or wrongdoing.
June 24, 2014; U.S. Attorney; District of Montana
Former Blackfeet Po'Ka Project Officials Sentenced for Massive Grant Fraud HHS Inspector General Claims $4.6 million in Potential Fraud
GREAT FALLS -- The United States Attorney's Office announced today that former officials of the Blackfeet Tribe's Po'Ka Project, a multi-million dollar federally funded effort to address the needs of troubled youth on the reservation, were sentenced in federal court in Great Falls by U.S. District Court Judge Brian M. Morris.
June 24, 2014; U.S. Attorney; Southern District of New York
Six Charged In Manhattan Federal Court for Operating Illegal Prescription Drug Ring Out Of Bronx Grocery Store
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, and William J. Bratton, Commissioner of the New York City Police Department, announced today criminal charges against Carlos Paniagua, Jose Osvaldo Paniagua Jr., Jose Rafael Paniagua, Jose Osvaldo Paniagua Sr., Joan Torres and Jose Borgen-Reyes, for operating a massive prescription drug diversion ring, including the trafficking of both oxycodone and expensive HIV medication, out of Joaquin Grocery & Deli, a grocery store in the Bronx. All of the defendants except BORGEN-REYES currently operate Joaquin Grocery & Deli, a grocery store at 598 Morris Avenue in the Bronx, New York. In addition to selling grocery products, the Joaquin Grocery has operated for years as a marketplace for Medicaid Beneficiaries to sell their Medicaid-reimbursed prescription medication, including Oxycontin, Percocet, and expensive HIV medications.
June 24, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Owner of Home Health Company Pleads Guilty to Role in $6.5 Million Health Care Fraud Scheme
The owner and operator of Nestor's Health Services, Inc. (Nestor HH), a now-defunct Miami home health care agency, pleaded guilty today in connection with a $6.5 million health care fraud scheme. Cruz Sonia Collado, 64, of Homestead, Florida, pleaded guilty before U.S. District Judge Robert N. Scola in the Southern District of Florida to one count of conspiracy to offer and pay health care kickbacks and to defraud the United States, and to one count of offering and paying health care kickbacks.
June 23, 2014; U.S. Attorney; Western District of Arkansas
$4 Million Recovery in Dr. Stacey Johnson Matter
Harrison, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced today a recovery of property in excess of $4,000,000.00, resulting from a claim filed in the Probate Estate of Stacey M. Johnson, deceased, in Baxter County, Arkansas, and through a civil forfeiture action filed in United States District Court. Both actions were filed by the U.S. Attorney's Office in September 2013. The Probate Court has today entered an Order directing that $3,480,000.00 of the assets of the Estate will go to the United States.
June 23, 2014; U.S. Attorney; District of Maine
Guatemalan Man Sentenced to 16 Months for Fraud
Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Sergio Suhum, also known as Sergio Suhum-Nacho, 26, a citizen of Guatemala illegally present in the United States, who most recently resided in Brunswick, Maine, was sentenced in U.S. District Court by Judge D. Brock Hornby to 16 months in prison for social security fraud, immigration document fraud, false personation of an American citizen, and theft of government benefits. He was also ordered to pay $1,354 in restitution. He pled guilty in February 2014.
June 19, 2014; U.S. Attorney; District of South Dakota
Rosebud Woman Sentenced For Acquiring Controlled Substances by Fraud
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman convicted of Acquiring Controlled Substances by Fraud and Theft was sentenced on June 17, 2014, by U.S. District Judge Roberto A. Lange.
June 19; U.S. Department of Justice Medicare Fraud Strike Force Case
Patient Recruiter Pleads Guilty in Miami for Role in $205 Million Health Care Fraud Scheme
A former patient recruiter pleaded guilty today in Miami, Florida, for his role in a $205 million Medicare fraud scheme.
June 19; U.S. Department of Justice Medicare Fraud Strike Force Case
Former Owner of Physical Therapy Clinic Sentenced to Prison in Connection with Health Care Fraud Scheme
A Florida man who was convicted of conspiracy to commit health care fraud was sentenced to serve 27 months in prison today in federal court in Tampa, Florida.
June 19, 2014; U.S. Attorney; Southern District of Illinois
Federal Jury Convicts Centreville Woman Of Bilking Medicaid
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on June 18, 2014, Irma Jones, 67, of Centreville, Illinois, after a three day jury trial in the United States District Court in East St. Louis, was convicted by jury after less than one hour deliberation on all three counts of an indictment charging that she engaged in a scheme to defraud the Medicaid program. The three counts included health care fraud, making false statements in connection with a healthcare benefit program, and lying to investigating agents when confronted with her scam. Sentencing in this case is set for October 10, 2014. The charge carries a maximum penalty of 10 years in prison, a $250,000 fine, and up to 3 years of supervised release.
June 19, 2014; U.S. Attorney; Middle District of Pennsylvania
Harrisburg Health Care Provider Charged Federally With Medicaid Fraud
The United States Attorney's Office for the Middle District of Pennsylvania announced today that a Harrisburg-area health care services provider was charged on June 18th by a federal grand jury with making false statements relating to health care matters, money laundering, and identity theft.
June 18, 2014; U.S. Attorney; Eastern District of Kentucky
Somerset Oncology Practice and Office Manager Plead Guilty to Food, Drug and Cosmetic Act Offenses Related to Misbranded Cancer Treatment Drug
LEXINGTON, KY - Hematology and Oncology Center PLLC (HOC) in Somerset, Ky., pled guilty in federal court on Tuesday to charges of knowingly receiving a misbranded cancer treatment drug.
June 18, 2014; U.S. Attorney; Northern District of California
Three Defendants Sentenced To Prison In $3.2M Medicare Fraud Scheme
SAN FRANCISCO - Patrick Adebowale Sogbein, his wife, Adebola Adefunke Adebimpe, and Eduardo Abad were sentenced yesterday to prison terms of 144 months, 51 months, and 12 months and 1 day, respectively, for conspiracy to commit health care fraud and health care fraud, announced United States Attorney Melinda Haag; David Johnson, Special Agent in Charge of the FBI in San Francisco; and Glenn R. Ferry, the Special Agent in Charge for the Los Angeles Regional Office of Inspector General of the Department of Health and Human Services.
June 18, 2014; U.S. Attorney; Southern District of Florida Medicare Fraud Strike Force Case
Office Worker Pleads Guilty in Miami for Role in $7 Million Health Care Fraud Scheme
An office worker pleaded guilty today in connection with a health care fraud scheme involving Anna Nursing Services Corp. (Anna Nursing), a defunct home health care company.
June 17, 2014; U.S. Attorney; Northern District of Illinois
U.S. Files Lawsuit against IPC the Hospitalist Company, Alleges Overbilling of Federal Health Insurers for Physician Services
CHICAGO - The United States filed a civil lawsuit against California-based IPC The Hospitalist Company, Inc., and its subsidiaries, alleging that IPC submitted false claims to federal health care programs, the U.S. Attorney's Office announced today. The complaint alleges that IPC violated the federal False Claims Acts by knowingly engaging in systematic overbilling for hospital evaluation and management services billed to Medicare, Medicaid, and other federal health benefit programs.
June 17, 2014; U.S. Attorney; District of Idaho
Nampa Woman Pleads Guilty to Controlled Substance Delivery
BOISE - Mary Jane Pace, 49, of Nampa, Idaho, pleaded guilty today to one count of distributing a controlled substance, U.S. Attorney Wendy J. Olson announced. Sentencing is set for September 9, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. According to the plea agreement, on May 24, 2012, Pace knowingly and intentionally distributed to an undercover police officer, five pills of 40 mg oxycodone, a Schedule II narcotic and controlled substance, in exchange for $100 in payment. She had obtained the controlled substances by prescription from a provider.
June 13, 2014; U.S. Attorney; Northern District of California
Napa Doctor Sentenced To Federal Prison for Tax Fraud
SAN FRANCISCO - Ali Vaziri was sentenced yesterday to one year and one day in prison and ordered to pay a $10,000 fine and $116,703 in restitution for tax fraud, announced U.S. Attorney Melinda Haag, Federal Bureau of Investigation Special Agent in Charge David J. Johnson, IRS Criminal Investigation Special Agent in Charge José M. Martinez, and Department of Health and Human Services Office of Inspector General Special Agent in Charge Ivan Negroni.
June 13, 2014; U.S. Attorney; District of Idaho
Boise Doctor Charged With Controlled Substance Delivery
BOISE - Michael Minas, 49, of Boise, Idaho, appeared today in federal court in Boise on an indictment charging him with seventeen counts of distributing a controlled substance, U.S. Attorney Wendy J. Olson announced. He was arrested yesterday morning outside of his medical practice in Eagle. Trial is set for August 12, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. The indictment alleges that Minas distributed oxycodone 30 mg and Oxycontin 80 mg, both Schedule II controlled substances, and diazepam, a Schedule IV controlled substance, and that he did so outside the usual course of professional practice and not for a legitimate medical purpose.
June 13, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Houston Ambulance Operator Sentenced for Her Role in $2.4 Million Health Care Fraud Scheme
The owner and operator of a Houston area ambulance company was sentenced today to serve 97 months in prison for her role in a $2.4 million Medicare fraud scheme. Gwendolyn Climmons-Johnson, 54, was convicted by a federal jury in Houston, Texas, on Oct. 30, 2013, of one count of conspiracy to commit health care fraud and four counts of health care fraud. In addition to the prison sentence, Climmons-Johnson was also sentenced to serve three years of supervised release and ordered to pay $972,132 in restitution.
June 13, 2014; U.S. Attorney; Southern District of Florida
Miami Beach Physician Sentenced in Medicare Fraud Scheme
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Ryan P. Lynch, Acting Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration, Miami Field Division, announce that Christopher Gregory Wayne, 54, an osteopathic physician residing in Miami Beach, was sentenced today by U.S. District Judge Robert N. Scola, Jr. to 70 months in prison, followed by three years of supervised release. In addition, Judge Scola entered a $1.6 million forfeiture money judgment against Wayne and ordered the forfeiture of his Miami Beach residence and a 2002 Mercedes Benz. Christopher Gregory Wayne was also ordered to pay restitution to the Centers for Medicare and Medicaid Services in the amount of $1,649,042, the amount of loss suffered by the Medicare program.
June 13, 2014; U.S. Attorney; District of Maryland
Nursing Home Chain to Pay $750,000 to Resolve False Claims Act Allegations
Baltimore, Maryland - Foundation Health Services, Inc. (FHS), its affiliated nursing facilities, and its president and chief executive officer Richard Daspit, Sr., have agreed to pay $750,000 to the United States and the State of Maryland to resolve allegations that they submitted false claims for payment to Medicaid and Medicare for materially substandard and/or worthless skilled nursing facility services. FHS is a Louisiana not-for-profit company that owns and manages nine nursing facilities in Pennsylvania, Mississippi, Virginia and Maryland, including Rock Glen Nursing and Rehabilitation Center, and Harborside (formerly Ravenwood) Nursing Center, both located in Baltimore City.
June 12, 2014; U.S. Attorney; Middle District of Louisiana Medicare Fraud Strike Force Case
Federal Jury Convicts Owner of Healthcare Company in Multi-Million Dollar Fraud Scheme
BATON ROUGE, LA - United States Attorney Walt Green announced that a federal jury returned unanimous verdicts of guilty this afternoon against Ahaoma Boniface Ohia, age 60, of Missouri City, Texas, on all seven counts of wire fraud charged in the indictment against him. Ohia was convicted of engaging in a multi-million dollar scheme to defraud Medicare from January 2007 through February 2009 through his company, All-Star Medical Supplies.
June 12, 2014; U.S. Attorney; District of New Jersey
New Jersey Doctor Sentenced To 21 Months in Prison for Taking Cash Kickbacks for Patient Referrals
NEWARK, N.J. - A doctor who was convicted at trial of receiving cash kickbacks for diagnostic testing referrals was sentenced today to 21 months in prison, U.S. Attorney Paul J. Fishman announced today. Maryam Jafari, 43, was convicted Feb. 4, 2014, of all three counts of a superseding indictment charging her with conspiracy and two counts of violating the federal health care anti-kickback statute after a three-week trial before U.S. District Judge Claire C. Cecchi, who imposed the sentence today in Newark federal court. Jafari was a doctor licensed in New Jersey to practice internal medicine and operated an office in Newark. From 2010 through December 2011, Jafari solicited and received cash kickbacks from Orange Community MRI LLC in exchange for MRIs and CAT scans she referred to the diagnostic testing facility.
June 12, 2014; U.S. Attorney; District of Montana
Blackfeet TANF Scheme Leads to 30 Months in Federal Custody
The United States Attorney's Office announced that SANDRA MARIE SANDERVILLE, 58, of Browning, was sentenced on June 12, 2014, to 30 months in federal prison, to be followed by two-and-one-half years of supervised release, by U.S. District Judge Brian M. Morris. During the hearing in Great Falls, Sanderville was also ordered to pay $297,612 in restitution. Sanderville was sentenced in connection with her February 27, 2014, guilty plea to theft from an Indian Tribal Government receiving federal grant funds.
June 10, 2014; U.S. Attorney; Southern District of New York
Manhattan U.S. Attorney Announces Arrest of Reality Television Cast Member for Failing to Pay Over $1 Million in Child Support
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas O'Donnell, the Special Agent-in-Charge of the New York Field Office of the United States Department of Health and Human Services Office of the Inspector General ("HHS-OIG"), announced the unsealing of a criminal Complaint against STEVEN JORDAN, a/k/a "Stevie Jordan," a/k/a "Stevie J," a cast member on a reality television show, for failing to pay over $1 million in child support obligations with respect to two children. JORDAN was arrested last night at his residence in Atlanta and is expected to be presented today in federal court in the Northern District of Georgia.
June 9, 2014; U.S. Attorney; District of Maine
Brunswick Women Pleads Guilty to Federal Program and Tax Fraud
Portland, Maine - United States Attorney Thomas E. Delahanty II announced that Stacey A. Backman, 41, of Brunswick, Maine, pled guilty in U.S. District Court to federal program and tax fraud charges. According to court records, the defendant was a fund accountant at Coastal Enterprises, Inc. (CEI). CEI is a private, nonprofit, charitable Community Development Corporation and Community Development Financial Institution based in Wiscasset, Maine that received more than $10,000 in federal funds each year. From 2010 to January 2014, the defendant embezzled over $300,000 from CEI and failed to report the embezzled income on her federal income tax returns. CEI learned of the embezzlement in January 2014 and terminated the defendant's employment.
June 9, 2014; U.S. Attorney; District of New Jersey
Morris County, N.J., Couple charged with conspiracy to commit health care fraud
NEWARK, N.J. - A Morris County, N.J., couple who owned a mobile diagnostic testing company were arrested this morning and charged with conspiring to commit health care fraud, U.S. Attorney Paul J. Fishman announced. Nita K. Patel, 51, and Kirtish N. Patel, 51, of Rockaway, N.J., owners and operators of Biosound Medical Services Inc. and Heart Solutions of Parsippany, N.J., were charged by complaint with one count of conspiracy to commit health care fraud. They made their initial appearance today before U.S. Magistrate Judge James B. Clark III in Newark federal court.
June 9, 2014; U.S. Attorney; Southern District of Georgia
Brunswick Woman Sentenced to 16 Years in Prison for Defrauding Medicaid of More Than $4 Million
BRUNSWICK, GA-Schella Logan Hope, 47, of Brunswick, Georgia, who was previously convicted by a federal jury of various health care fraud, aggravated identity theft, and money laundering offenses for her role in a multi-million-dollar Medicaid fraud conspiracy, was sentenced last month to 16 years in prison. The sentence was imposed by the Honorable Lisa Godbey Wood, Chief Judge for the United States District Court for the Southern District of Georgia, who also presided over Hope's trial.
June 6, 2014; U.S. Attorney; Northern District of Texas
North Texas Men, Who Owned Hyperbaric Oxygen Therapy Companies, are Sentenced for Roles in Conspiracy to Commit Health Care Fraud
DALLAS - Yesterday afternoon, two businessmen, Stanley Thaw, 72, of Frisco, Texas, and Michael Kincaid, 57, of Plano, Texas, who owned and operated hyperbaric oxygen therapy (HBOT) companies located in Plano, Denton, Hurst, Houston, and San Antonio, Texas, were each sentenced to five years in federal prison by U.S. District Judge Jorge A. Solis for conspiring to commit health care fraud. In addition, Judge Solis ordered them to pay approximately $1.5 million in restitution, jointly and severally. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
June 6, 2014; U.S. Attorney; District of Maryland
First Conspirator Pleads Guilty In Conspiracy To Distribute And Sell Millions In Contraband Cigarettes
Baltimore, Maryland - Adam Azerman, age 59, of Pikesville, Maryland, pleaded guilty today to conspiracy to traffic in contraband cigarettes. The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
June 5, 2014; U.S. Attorney; District of New Jersey
Board-Certified New Jersey Pediatrician and Internist Sentenced To 20 Months in Prison for Taking Kickbacks
NEWARK, N.J. - A board-certified pediatrician and internist from Morris County, N.J., was sentenced today to 20 months in prison for soliciting and taking cash and rental payments as kickbacks for his patients' diagnostic testing referrals, U.S. Attorney Paul J. Fishman announced. Chikezie Onyenso, 55, of Randolph, N.J., was convicted on Oct. 15, 2013, after a three-week trial before U.S. District Judge Claire C. Cecchi, of conspiracy to solicit and receive kickbacks from a diagnostic testing facility called Orange Community MRI LLC (Orange MRI), and of soliciting and taking such kickbacks from Orange MRI. Judge Cecchi imposed the sentence today in Newark federal court.
June 5, 2014; U.S. Attorney; Eastern District of Pennsylvania
EMT Sentenced For Role in Ambulance Fraud Scheme
PHILADELPHIA - Khusen Akhmedov, 23, of Philadelphia, PA and Lancaster, PA, was sentenced today to 27 months in prison for his role in a health care fraud scheme involving Penn Choice Ambulance Inc., operating from Philadelphia, PA, Huntingdon Valley, PA and Camp Hill, PA. Akhmedov pleaded guilty on December 5, 2013, to conspiracy to commit health care fraud, false statements relating to health care matters, and paying kickbacks to patients, a total of 16 counts. Akhmedov, an EMT for Penn Choice, was indicted with Penn Choice owner Anna Mudrova and operators Yury Gerasyuk, Mikhail Vasserman, Irina Vasserman, Aleksandr Vasserman, and Valeriy Davydchik, all of whom have pleaded guilty.
June 5, 2014; U.S. Attorney; Southern District of Illinois
"Home Alone 3"
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, and Gerald Roy, Special Agent in Charge, United States Department of Health and Human Services, Office of Inspector General, Office of Investigations for Region 7 (Kansas City office), announced today indictments arising out of Operation Home Alone 3. The indictments constitute a third wave of charges that targets the abuse of a Medicaid program in Illinois that provides personal assistants to Medicaid recipients to assist them with general household activities and personal care. The program is intended for recipients under 60 years of age and is designed to reduce Medicaid expenditures by avoiding more expensive institutional care, including nursing home care.
June 4, 2014; U.S. Attorney; Eastern District of Texas
Nigerian Fugitive Arrested for Health Care Fraud Violations
TYLER, Texas - A 43-year-old Nigerian fugitive has been arrested at a Houston airport and will now face federal health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales. Vivian Yusuf, of Port Harcourt, Nigeria, the former owner of Ivy Health Care Supply, a Houston area medical supply company, was arrested on June 3, 2014 at George Bush Intercontinental Airport in Houston. Yusuf had been indicted for conspiracy to commit health care fraud, health care fraud, and aggravated identity theft and a fugitive since March 2011.
June 4, 2014; U.S. Attorney; Middle District of Florida
Grand Jury Indicts Two Scientists for Obtaining Government Research Contracts by Fraud
Tampa, Florida - United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Mahmoud Aldissi, a/k/a "Matt,"(62) and Anastassia Bogomolova, a/k/a "Anastasia," (51), both of Pinellas County, Florida, with conspiracy to commit wire fraud, wire fraud, aggravated identity theft, and falsification of records in a federal investigation. If convicted on all counts, each faces a maximum penalty of 20 years in federal prison. The Indictment also notifies the individuals that, among other specified property, the United States is also seeking a money judgment in the amount of $10,000,000, which reflects the proceeds of the charged criminal conduct.
June 4, 2014; U.S. Attorney; Northern District of Ohio & Ohio Attorney General
Husband, Wife Sentenced to Prison on Health Care Fraud Charges, Must Repay More than $800,000
Ohio Attorney General Mike DeWine and U.S. Attorney for the Northern District of Ohio Steven M. Dettelbach announced today that the husband and wife owners of a Maple Heights ambulette company will each serve time in prison for fraudulently billing Medicaid for hundreds of thousands of dollars of transportation services that they did not actually provide.
June 3, 2014; U.S. Department of Justice Medicare Fraud Strike Force Case
Los Angeles Physician Indicted in $33 Million Medicare Fraud Scheme
A Los Angeles physician was indicted today for a $33 million scheme to defraud Medicare, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department's Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California, Special Agent in Charge Glenn R. Ferry of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) for the Los Angeles Region and Assistant Director in Charge Bill L. Lewis of the FBI's Los Angeles Field Office. Robert A. Glazer, 67, of Los Angeles, California, was indicted in the Central District of California and charged with one count of conspiracy to commit health care fraud.
June 3, 2014; U.S. Attorney; Southern District of Texas
Local Doctor and Four Others Charged with Defrauding Medicare of Nearly $3 Million
HOUSTON - Leonard Kibert M.D., 63, of Houston, has been charged in a 47-count indictment alleging a conspiracy to defraud Medicare of $2.9 million, announced United States Attorney Kenneth Magidson. Also charged in the indictment are Tsolak Gevorgyan, 28, Christopher O'Brien, 41, Gregorius Brown, 48, and Robert Manning, 58, all also of Houston.
June 3, 2014; U.S. Attorney; Western District of Kentucky
Owners of Elizabethtown Hematology Oncology, PLC Agree To Pay Over $3.7 Million to Settle False Billings to Government Health Care Programs
LOUISVILLE, Ky. -Elizabethtown Hematology Oncology, PLC, and its owners have agreed to pay $3,739,325.41 to resolve allegations that they submitted or caused to be submitted false claims for payment to the Medicare, Medicaid, TRICARE - the health care program for Uniformed Service members, retirees and their families worldwide - and the Federal Employee Health Benefit Program (FEHBP) for extending the duration of chemotherapy infusion treatment to patients and inappropriately billing office visits for infusion therapy treatments, announced the Office of Inspector General of the Department of Health and Human Services and David J. Hale, United States Attorney for the Western District of Kentucky.

May 2014

May 30, 2014; U.S. Attorney; District of Maryland
Timonium Man Pleads Guilty To Stealing Over $570,000 From An NIH Research Grant
Baltimore, Maryland - Baltimore, Maryland - Jason Dietz, age 34, of Timonium, Maryland, pleaded guilty today to theft of funds from a federal program, in connection with the theft of at least $571,205 in grant money from the National Institute for Drug Abuse for research conducted at its facilities in Baltimore.
May 30, 2014; U.S. Attorney; Southern District of Iowa
Former Newton Doctor Sentenced to 5 Years in Prison for Prescribing Controlled Substances outside the Course of Usual Medical Practice and Related Health Care Fraud
DES MOINES, IA - On Thursday, May 29, 2014, Dr. Lafayette James Twyner, age 65, of Newton, Iowa, was sentenced to 5 years in prison by U.S. District Court Judge Stephanie M. Rose on charges relating to his alleged unlawful dissemination of controlled substances to patients, announced United States Attorney Nicholas A. Klinefeldt. Dr. Twyner had previously pled guilty on February 21, 2014 to federal charges of illegally dispensing hydrocodone resulting in death, and health care fraud. Over the course of several years, Dr. Twyner prescribed various controlled substances, mostly pain medications, to patients who had no legitimate need for them, and to some who were admittedly addicted to them. He then billed the patients - and their insurance companies - for the office visits when they sought drugs from him.
May 29, 2014; U.S. Attorney; Middle District of Tennessee
First Call Ambulance Service, LLC. Settles False Claims Act Allegations
First Call Ambulance Service, LLC., will pay $500,000 to settle allegations that it violated the False Claims Act ("FCA"), announced David Rivera, United States Attorney for the Middle District of Tennessee. The settlement resolves allegations by the United States and Tennessee that First Call up coded billings for ambulance transports provided to patients covered by federal healthcare programs and TennCare, Tennessee's joint state/federal Medicaid program.
May 28, 2014; U.S. Department of Justice
Minnesota-Based Medtronic Inc. to Pay $9.9 Million to Resolve Claims That Company Paid Kickbacks to Physicians
Medtronic Inc., of Fridley, Minnesota, has agreed to pay the United States $9.9 million to resolve allegations under the False Claims Act that the company used various types of payments to induce physicians to implant pacemakers and defibrillators manufactured and sold by Medtronic, the Justice Department announced today.
May 28, 2014; U.S. Department of Justice
King's Daughters Medical Center to Pay Nearly $41 Million to Resolve Allegations of False Billing for Unnecessary Cardiac Procedures and Kickbacks
Ashland Hospital Corp. d/b/a King's Daughters Medical Center (KDMC) has agreed to pay $40.9 million to resolve allegations that it submitted false claims to the Medicare and Kentucky Medicaid programs for medically unnecessary coronary stents and diagnostic catheterizations and had prohibited financial relationships with physicians referring patients to the hospital, the Justice Department announced today.
May 28, 2014; U.S. Attorney; District of Maryland
Dr. John Yacoub Pleads Guilty To Drug Distribution
Baltimore, Maryland - Dr. John K. Yacoub, age 58, of Baltimore, Maryland pleaded guilty today to conspiracy to distribute and possess with intent to distribute fentanyl, hydrocodone, oxycodone, morphine and methadone.
May 27, 2014; U.S. Attorney; Eastern District of Pennsylvania
Hospice Owner Sentenced To More Than 14 Years in Prison for Multi-Million Dollar Health Care Fraud Scheme
PHILADELPHIA - Matthew Kolodesh, a/k/a "Matvei Kolodech," 52, of Churchville, PA, was sentenced Friday to 176 months in prison and ordered to pay $16.2 million in restitution to Medicare and $16.2 million in a forfeiture money judgment for orchestrating a scheme to defraud Medicare through his home hospice business, among other crimes, announced United States Attorney Zane David Memeger.
May 27, 2014; U.S. Attorney; Northern District of Illinois
Illinois Hospice Executive, Three Former Employees and Company Indicted for Allegedly Falsely Elevating Level of Patients' Care
CHICAGO - An owner and three former employees of an Illinois hospice company, as well as the company itself, were indicted on federal health care fraud charges for allegedly engaging in an extensive scheme to obtain higher Medicare and Medicaid payments by fraudulently elevating the level of hospice care for patients. In many instances, the level of hospice care allegedly exceeded what was medically necessary or actually provided, including for some patients who did not have terminal illnesses or who were enrolled far longer than the required life expectancy of six months or less.
May 23, 2014; U.S. Attorney; District of Montana
Former Oklahoma State University Professor Convicted on 26 Fraud and Public Corruption Charges Involving Blackfeet Po'Ka Program
The United States Attorney's Office announced that on May 22, 2014, a federal jury found Gary Joseph Conti, 68, of Three Forks, guilty on 26 of 27 felony charges relating to his role in deceiving the government in an "in-kind" scheme that auditors have determined resulted in at least $4.6 million in fraud against a grant designed to help troubled and at-risk youth on the Blackfeet Indian Reservation.
May 22, 2014; U.S. Department of Justice
Owner and Recruiter for Louisiana and Texas Mental Health Clinics Convicted as Part of $258 Million Health Care Fraud Scheme in Baton Rouge, Louisiana
An owner and operator of community mental health centers in Baton Rouge, Louisiana, as well as a patient recruiter for a related facility in Houston, Texas, were convicted on Wednesday, May 21, 2014, for their roles in a $258 million Medicare fraud scheme involving three facilities that filed fraudulent claims for psychiatric services that were unnecessary or never actually provided.
May 22, 2014; U.S. Department of Justice
Convicted Money Launderers Sentenced to Prison in Connection with Health Care Fraud Scheme
Two Florida men were sentenced today in the Middle District of Florida for their roles in a fraud scheme involving the submission of more than $10 million in fraudulent claims to Medicare for physical therapy. Rafael Roche, 43, and Alain Remy, 36, previously pleaded guilty to an indictment charging them with conspiracy to commit money laundering involving financial proceeds from a health care fraud scheme. Today, they were sentenced to serve 46 months and 37 months respectively in prison to be followed by three years of supervised release. In addition, they will be required to pay $1,847,222 in restitution, jointly and severally with co-conspirators.
May 22, 2014; U.S. Department of Justice
Detroit-Area Home Health Agency Owner Sentenced to 72 Months in Prison for His Role in $13.8 Million Medicare Fraud Scheme
The owner of a home health agency involved in a $13.8 million Medicare fraud scheme was sentenced today to serve 72 months in prison. Zahir Yousafzai, 44, was sentenced by U.S. District Judge Gerald E. Rosen in the Eastern District of Michigan. In addition to his prison term, Yousafzai was sentenced to three years of supervised release and was ordered to pay $4,131,135 in restitution, jointly and severally with his co-defendants.
May 21, 2014; U.S. Attorney; Southern District of West Virginia
U.S. Attorney Goodwin Announces Record-Breaking Health Care Fraud Settlement
CHARLESTON, W.Va. - United States Attorney Booth Goodwin today announced a $4.675 million settlement with Massachusetts-based Calloway Laboratories, Inc. (Calloway Labs) related to false billings submitted to West Virginia Medicaid and nationwide to Medicare. Calloway Labs, headquartered in Woburn, Massachusetts, provides clinical laboratory services, including urine drug testing, for Medicare and West Virginia Medicaid. From March of 2009 through April of 2013, Calloway Labs routinely billed Medicare and West Virginia Medicaid using a code designated for pathology services in addition to the code for urine drug testing.
May 21, 2014; U.S. Attorney; Eastern District of New York
Long Island Doctor Arrested For Illegal Distribution of Controlled Substances
A criminal complaint was unsealed today in federal court in the Eastern District of New York charging Dr. Michael Randall with illegal distribution of thousands of prescription pain pills, including oxycodone, oxymorphone, methadone, and carisoprodol. Randall surrendered earlier today, and his initial appearance is scheduled for this afternoon before United States Magistrate Judge A. Kathleen Tomlinson at the United States Courthouse, 100 Federal Plaza, Central Islip, New York.
May 21, 2014; U.S. Attorney; Southern District of Ohio
Pain Clinic Owner Sentenced To 14 Years In Prison And Ordered To Forfeit $6.3 Million In Profits
CINCINNATI - The owner of three southern Ohio pain clinics, Tracy Bias, 49, of West Portsmouth, Ohio, was sentenced to spend 168 months in prison, serve another ten years under court supervision, and ordered to forfeit $6,348,000, an amount representing the proceeds of the pain clinics he operated for two years in Portsmouth, Ohio and Columbus, Ohio. Six doctors involved with the clinic have either been sentenced or are awaiting sentencing.
May 21, 2014; U.S. Attorney; Western District of Missouri
Kansas City Man Pleads Guilty To $2.6 Million Health Care Fraud
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to submitting more than $2.6 million in health care claims, although he was excluded from participating in any federal health care programs after being convicted of a felony drug charge.
May 21, 2014; U.S. Attorney; Eastern District of Pennsylvania
U.S. Files Complaint against Philadelphia Hospice Provider and Its Owners and Operators Alleging False Claims on Medicare
PHILADELPHIA - The United States filed a complaint in U.S. District Court today in a whistleblower suit against a now-defunct, for-profit Philadelphia provider of hospice services, Home Care Hospice, Inc. (HCH), and its owners and operators, announced First Assistant United States Attorney Louis D. Lappen. In its complaint, the government alleges that HCH, its Executive Director and owner Alex Pugman, its Development Executive Svetlana Ganetsky, and its de facto owner Matthew Kolodesh violated the False Claims Act when they falsely claimed and received millions of taxpayer dollars intended for dying Medicare recipients in need of hospice care.
May 21, 2014; U.S. Attorney; Eastern District of Pennsylvania
Philadelphia Man Charged In Health Care Fraud Scheme
PHILADELPHIA - Jermaine Hairston, 38, of Philadelphia, Pennsylvania, was charged by indictment, filed yesterday, with health care fraud and aggravated identity theft, announced United States Attorney Zane David Memeger.
May 20, 2014; U.S. Attorney; District of South Dakota
Wanblee Man Sentenced For Assault and Making False Statements
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury and False Statements Relating to Health Care Matters was sentenced on May 15, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
May 19, 2014; U.S. Department of Justice
Former Wellcare Chief Executive Sentenced for Health Care Fraud
Former WellCare Chief Executive Officer Todd S. Farha, 45, of Tampa, Florida, was sentenced today in the Middle District of Florida to serve 36 months in prison for defrauding the Florida Medicaid program.
May 16, 2014; U.S. Attorney; District of New Jersey
Morris County, N.J., Doctor Sentenced to Prison, Fined for Taking Cash Kickbacks for Patient Referrals
NEWARK, N.J. - A doctor practicing internal medicine in Orange, N.J., was sentenced today to five months in prison and five months of home confinement for taking cash kickbacks for making referrals to a diagnostic testing lab in Orange, U.S. Attorney Paul J. Fishman announced. Mahesh Patel, 64, of Florham Park, N.J., a board-certified physician, previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with soliciting and receiving more than $6,000 in illegal cash kickbacks for patient referrals in violation of the federal health care anti-kickback statute.
May 15, 2014; U.S. Attorney; Southern District of Texas
Corpus Christi Doctor Heads to Prison for Fraudulent Health Care Billing Scheme
CORPUS CHRISTI, Texas - Dr. Roque Joel Ramirez, 48, of Robstown, has been ordered to federal prison following his conviction of mail fraud in connection with his scheme to defraud Medicare and Medicaid through fraudulent billings, announced United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott. Ramirez pleaded guilty Feb. 18, 2014.
May 15, 2014; U.S. Attorney; District of New Jersey
New York Physician Admits Taking Bribes in Test-Referrals Scheme with New Jersey Clinical Lab
NEWARK, N.J. - A physician with a practice in New York admitted today to accepting over $100,000 in exchange for test referrals as part of a massive bribery scheme operated by Biodiagnostic Laboratory Services LLC (BLS) of Parsippany, N.J., its president and numerous associates, U.S. Attorney Paul J. Fishman announced. Michele Martinho, 39, of New York, pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging her with one count of accepting bribes.
May 15, 2014; U.S. Attorney; Eastern District of North Carolina
Ambulance Company Owner and Son Sentenced For Conspiracy to Commit Health Care & Wire Fraud
RALEIGH - United States Attorney Thomas G. Walker announced that today, United States District Judge Terrence W. Boyle sentenced Phyllis Stallings Harrell and Paul Lynn Trueblood, both of Belvidere, North Carolina. Harrell was sentenced to 72 months imprisonment followed by 3 years of supervised release and was also ordered to pay restitution in the amount of $1,598,356.91. Trueblood was sentenced to 53 months imprisonment followed by 3 years of supervised release and ordered to pay restitution in the amount of $1,516,654.21.
May 14, 2014; U.S. Department of Justice
Patient Recruiter Sentenced In Detroit for Role in $14.5 Million Medicare Fraud Scheme
WASHINGTON - A patient recruiter who participated in a Medicare fraud scheme that totaled almost $14.5 million was sentenced in Detroit yesterday to serve 86 months in prison. Richard Shannon, 41, was sentenced by U.S. District Judge Denise Page Hood in the Eastern District of Michigan. In addition to his prison term, Shannon was sentenced to serve three years of supervised release and was ordered to pay more than $1.6 million in restitution, jointly and severally with his co-defendants. On Oct. 26, 2012, Shannon, a patient recruiter for a network of fraudulent home health care companies, was found guilty at trial of one count of conspiracy to commit health care fraud. According to evidence presented at trial, Shannon and his co-conspirators caused the submission of false and fraudulent claims to Medicare through All American and Patient Choice, two Oak Park-based home health care companies, which purported to provide skilled nursing and physical therapy services to Medicare beneficiaries in the greater Detroit area.
May 14, 2014; U.S. Attorney; District of South Dakota
Sioux Falls Man Sentenced for Health Care Fraud
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man convicted of Making False Statements Relating to Health Care Matters was sentenced on May 12, 2014, by U.S. District Judge Karen E. Schreier.
May 13, 2014; U.S. Attorney; Southern District of Florida
Fifty South Florida Residents Charged as Part of Nationwide Coordinated Takedown by Medicare Fraud Strike Force Operations
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida announced that fifty South Florida residents were charged for their alleged participation in various schemes to defraud Medicare out of more than $65,701,885. The charges in South Florida are part of a nationwide takedown by Medicare Fraud Strike Force operations in six cities that resulted in charges against 90 individuals, including doctors, nurses, licensed medical professionals and others, for their alleged participation in Medicare fraud schemes involving approximately $260 million in false billings.
May 12, 2014; U.S. Attorney; Southern District of Texas
Jury Convicts Humble Man on all Charges in Health Care Fraud Conspiracy
HOUSTON - Lawrence Tyler, 41, has been convicted of conspiracy to commit health care fraud, seven counts of health care fraud and one count of money laundering, announced United States Attorney Kenneth Magidson. The verdicts were returned just moments ago following five days of trial and less than four hours of deliberation. Tyler, of Humble, ran a durable medical equipment company called 1866-ICPayday.com from 2006 to 2008. The evidence at trial showed that between January 2007 and December 2008, Tyler engaged in a scheme to defraud Medicare and Medicaid. He falsely billed Medicare and Medicaid for so-called "ortho kits" which consisted of an assortment of various back, knee, ankle, wrist and shoulder braces.
May 13, 2014; U.S. Department of Justice
Dallas-Based Physician and Home Health Agency Director of Nursing Convicted in $3 Million Medicare Fraud Conspiracy
Late yesterday, a federal jury in the Northern District of Texas convicted a physician and a home health agency manager for their participation in a $3 million Medicare fraud conspiracy. Joseph Megwa, M.D., and Ebolose Eghobor, R.N., were convicted of one count of conspiracy to commit health care fraud, and Megwa was convicted of three substantive counts of health care fraud. Eghobor was acquitted of the three substantive health care fraud counts brought against him. The home health care charges related to a scheme involving PTM Healthcare Services Inc. (PTM), which was owned and operated by Ferguson Ikhile, R.N. Ikhile pleaded guilty in 2013 to conspiracy to commit health care fraud.
May 13, 2014; U.S. Attorney; Eastern District of New York
Brooklyn Medical Equipment Providers Charged in Alleged $13 Million Scheme to Defraud Government-Funded Health Plans
BROOKLYN-Earlier today, an indictment was unsealed charging Chikwere Onyekwere and Uchechi Onyekwere, registered owners and officers of purported durable medical equipment (DME) companies located in Brooklyn, New York, with executing a scheme to submit over $13 million in fraudulent claims to a New York-based, government-sponsored managed care organization. The defendants were arrested earlier this morning and will be presented for arraignment later today at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York, before United States Magistrate Judge Joan M. Azrack.
May 13, 2014; U.S. Attorney; District of Oregon
Sibling Sentenced to 4 Months in Jail for Theft of Sister's Welfare Benefits
PORTLAND, Ore. - A Portland woman was sentenced to four months in jail for stealing more than $10,000 in benefits intended for her disabled sister. Killda I. Boutros, 46, appeared in federal court for sentencing last week after previously pleading guilty to Social Security fraud in November.
May 13, 2014; U.S. Department of Justice
Medicare Fraud Strike Force Charges 90 Individuals for Approximately $260 Million in False Billing with 27 Medical Professionals, Including 16 Doctors, Charged with Health Care Fraud
Attorney General Eric Holder and Department of Health and Human Services (HHS) Secretary Kathleen Sebelius announced today that a nationwide takedown by Medicare Fraud Strike Force operations in six cities has resulted in charges against 90 individuals, including 27 doctors, nurses and other medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $260 million in false billings. This coordinated takedown is the seventh national Medicare fraud takedown in Strike Force history. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team, a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
May 12, 2014; U.S. Attorney; District of Columbia
Former Employee of Day Treatment Program Found Guilty of Criminal Abuse of a Vulnerable Adult Defendant Made Malicious Statements toward Person in Her Care
WASHINGTON - Ivy Fauntroy, 34, a former employee of United Cerebral Palsy of Washington & Northern Virginia, a District of Columbia day services provider for individuals with developmental disabilities, has been found guilty and been sentenced for criminal abuse of a vulnerable person in her care, U.S. Attorney Ronald C. Machen, Jr. and District of Columbia Inspector General Charles J. Willoughby announced today.
May 9, 2014; U.S. Attorney; District of Connecticut
Physical Therapist Facing Additional Health Care Fraud and Tax Fraud Charges
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DANIELLE FAUX, 46, of Weston, has been charged in a 54-count superseding indictment with federal health care fraud and income tax fraud offenses. The superseding indictment was returned by a grand jury in Bridgeport on April 16, 2014, and FAUX appeared today before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport and entered a plea of not guilty to the charges.
May 8, 2014; U.S. Attorney; District of Columbia
District Woman Pleads Guilty to Health Care Fraud, Sold Counterfeit Documents to Would-Be Home Health Care Aides
WASHINGTON - Adoshia L. Flythe, 36, of Washington, D.C., pled guilty today to a federal charge of health care fraud following an undercover investigation into the sale of counterfeit health certificates to people seeking jobs in the home health care industry. Flythe pled guilty in the U.S. District Court for the District of Columbia. The Honorable Rudolph Contreras scheduled sentencing for Sept. 4, 2014. The charge carries a statutory maximum of 10 years in prison as well as financial penalties. Under federal sentencing guidelines, Flythe faces up to six months of incarceration and a fine of up to $5,000.
May 8, 2014; U.S. Attorney; Southern District of New York
Ocala, Florida Man Charged With Failure to Pay Child Support for His Children Who Reside In Orange County, New York
Preet Bharara, the United States Attorney for the Southern District of New York, and Tom O'Donnell, the Special Agent-in-Charge of the New York Field Office of the Inspector General, United States Department of Health and Human Services, announced the arrest yesterday of Kurtiss L. Tomasovich for failure to pay child support. Tomasovich was arrested and presented in federal court in Ocala, Florida, before U.S. Magistrate Judge Philip R. Lammens.
May 7, 2014; U.S. Attorney; District of South Dakota
Martin Woman Sentenced In Federal Program Fraud Case
United States Attorney Brendan V. Johnson announced that a Martin, South Dakota, woman convicted of Conspiracy to Commit Theft Concerning Programs Receiving Federal Funds was sentenced on May 6, 2014, by Jeffrey L. Viken, Chief U.S. District Judge. Samone Darla Milk, age 32, was sentenced to 14 months in custody, to be followed by 3 years of supervised release. She was also ordered to make restitution of $109,135. Milk was indicted for Conspiracy to Commit Theft Concerning Programs Receiving Federal Funds and two counts of Theft Concerning Programs Receiving Federal Funds by a federal grand jury on October 8, 2013. She pled guilty to the conspiracy charge on January 3, 2014, and the other charges were dismissed.
May 6, 2014; U.S. Department of Justice
Government Settles False Claims Act Allegations against Florida-Based Baptist Health System for $2.5 Million
Baptist Health System Inc. (Baptist Health), the parent company for a network of affiliated hospitals and medical providers in the Jacksonville, Florida, area, has agreed to pay $2.5 million to settle allegations that its subsidiaries violated the False Claims Act by submitting claims to federal health care programs for medically unnecessary services and drugs, the Department of Justice announced today. The alleged misconduct involved Medicare, Medicaid, TRICARE and the Federal Employee Health Benefits Program.
May 6, 2014; U.S. Department of Justice
Owners of Los Angeles Ambulance Company Sentenced for Medicare Fraud Scheme
WASHINGTON - The owners of Alpha Ambulance Inc. (Alpha), a now-defunct Los Angeles-area ambulance transportation company, have been sentenced in connection with a Medicare fraud scheme. Aleksey Muratov, aka Russ Muratov, 32, and Alex Kapri, aka Alex Kapriyelov or Alexander Kapriyelov, 56, were sentenced by U.S. District Court Judge Audrey B. Collins in the Central District of California to serve 108 months and 75 months in prison, respectively. Both Kapri and Muratov pleaded guilty on Oct. 28, 2014, to conspiracy to commit health care fraud. Muratov and Kapri were owners and operators of Alpha, which specialized in the provision of non-emergency ambulance transportation services to Medicare-eligible beneficiaries, primarily dialysis patients.
May 5, 2014; U.S. Attorney; Eastern District of Kentucky
Newport Chiropractor Convicted of Health Care Fraud Conspiracy
COVINGTON, KY - - The owner of a chiropractic clinic in Newport, Ky., has been convicted of a fraud scheme involving tens of thousands of dollars. A federal jury in Covington convicted 48-year-old Andrea Almond, of Cincinnati, Ohio, of conspiracy to commit health care fraud, late Friday afternoon. The jury returned the verdict after four days of trial, following six hours of deliberation. According to evidence established at trial, from September 2008 through April 2010, Almond conspired with a co-defendant to bill the Kentucky Medicaid Program for chiropractic services rendered at the Newport Chiropractic Center.
May 2, 2014; U.S. Attorney Northern District of Indiana
Guilty Plea in Conspiracy to Receive Kickbacks for Medicare & Medicaid Patient Referrals
Linda Rosenberg, 60, of Chicago, Illinois, pled guilty before District Judge Joseph Van Bokkelen to the felony offenses of participating in a conspiracy to receive kickbacks for the referral of Medicaid and Medicare patients to other services providers, dispensing a controlled substance outside the scope of professional practice and legitimate medical purpose and misbranding. Sentencing has been set for 9/10/14. These charges were filed as a result of an investigation by the Drug Enforcement Administration. This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
May 2, 2014; U.S. Attorney; Middle District of Alabama
Opelika Doctor Indicted for Selling Misbranded Intrauterine Devices
Montgomery, Alabama - Dr. Yashica Robinson-White, 38 of Opelika, Alabama was indicted by a federal grand jury for health care fraud totaling over $60,000.00 and for introducing misbranded drugs into interstate commerce, announced U.S. Attorney George L. Beck, Jr.. The indictment charges that Robinson-White committed health care fraud by falsely billing claims to Medicaid for birth control devices known as intrauterine devices ("IUDs"). Robinson-White purchased these IUDs from a company in Great Neck, New York. Because the IUDs were made outside the United States and because the IUDs were not labeling in English, they are considered misbranded drugs under the Food, Drug and Cosmetic Act. The IUDs are treated as misbranded drugs under the law because they release the birth control drug, levonorgestrel. Further, because the IUDs were misbranded, Robinson-White obtained them cheaper than a lawful IUD.
Thursday, May 2, 2014; U.S. Attorney; Eastern District of Missouri
Local In-Home Healthcare Provider Pleads Guilty to Fraud Charges
St. Louis, MO - TINA KUEHL pled guilty yesterday to bank fraud charges involving her fraudulent statements involving payment of a bank loan. In a separate unrelated case, she and her company, Better Way Home Care, pled guilty to multiple healthcare fraud charges. Kuehl and Better Way represented on billing work sheets and claim forms that patients had received therapy services when they knew that the patients had not received the therapy. Kuehl and Better Way caused the submission of hundreds of reimbursement claims to Medicare for services which they knew had not been provided.
May 1, 2014; U.S. Attorney; District of Montana
Havre Psychologist Pleads Guilty To Bribery and Tax Fraud
The United States Attorney's Office announced that Dr. James Howard Eastlick, Jr., the former Clinical Psychologist at the Rocky Boy Health Clinic, entered pleas today in three of four indictments handed down by the Grand Jury charging him with public corruption and tax fraud. Eastlick appeared before U.S. District Judge Brian Morris in Great Falls to enter the guilty pleas.

April 2014

April 30, 2014; U.S. Attorney; Southern District of Texas
Two Fugitives Arrested in Continuum Healthcare Kickback Conspiracy
HOUSTON-Two more Houston residents have been taken into custody on charges contained in a 13-count indictment alleging a conspiracy to pay kickbacks to 10 area personal care home owners and patient advocates, announced United States Attorney Kenneth Magidson. Jacqueline Harris, 51, and Vernon Lacy, III, 29, were patient advocates for Continuum Healthcare LLC. Both were fugitives in the case until they were found and arrested by the U.S. Marshals Service Gulf Coast Regional Fugitive Task Force with the assistance of the FBI.
April 30, 2014; Department of Justice
Detroit-Area Physical Therapist, Physical Therapy Assistant and Unlicensed Doctor Convicted in $14.9 Million Medicare Fraud Scheme
A federal jury in Detroit today convicted a physical therapist, physical therapy assistant and unlicensed doctor for their participation in a nearly $15 million Medicare fraud scheme.
April 30, 2014; U.S. Attorney; District of New Jersey
New Jersey Regional Medical Center Pays Hundreds of Thousands to Resolve Kickback Allegations
NEWARK, N.J. - Somerset Medical Center - a regional medical center located in Somerville, N.J. - has paid $435,640 to settle allegations that it violated the federal False Claims Act by making improper rental payments to a cardiology group that referred large numbers of patients to the hospital, New Jersey U.S. Attorney Paul J. Fishman announced today.
April 29, 2013; U.S. Attorney; Western District of Missouri
Former Waldo Chiropractor Pleads Guilty to $3 Million Medicare Fraud
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former owner of a Kansas City, Mo., clinic pleaded guilty in federal court today to a $3 million Medicare fraud scheme.
April 29, 2014; U.S. Attorney; Eastern District of Missouri
Former CEO of SEMO Health Network Pleads Guilty to Submitting False Grant Documents
St. Louis, MO - CHERYL ANN WHITE pled guilty to conspiring to create and submit numerous false documents related to Southeast Missouri Health Network, Inc. to federal agencies from 2004 to 2013.
April 28, 2014; U.S. Attorney; Western District of Virginia
Former Fire Chief, Wife, Sentenced On Fraud Charges
ROANOKE, VIRGINIA - The former fire chief in Buchanan, Va., and his wife, were sentenced today in the United States District Court for the Western District of Virginia in Roanoke to charges stemming from Fraud.
April 28, 2014; U.S. Attorney; District of North Dakota
New Leipzig Man Sentenced For False Statements To Medicaid
BISMARCK - U.S. Attorney Timothy Q. Purdon announced that on April 28, 2014, Donald A. Hochhalter, 65, New Leipzig, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of Making or Causing to be Made False Statements or Representations in a matter involving Medicaid. Hochhalter pled guilty to the charge, a misdemeanor, on January 16, 2014.
April 25, 2014; U.S. Attorney; Middle District of Pennsylvania
Old Forge Pharmacist Pleads Guilty to Health Care Fraud Charges
The United States Attorney's Office for the Middle District of Pennsylvania announced that an Old Forge pharmacist pleaded guilty in Scranton today to health care fraud charges before the U.S. District Court Judge Malachy E. Mannion.
April 25, 2014; U.S. Attorney; Southern District of Texas
Continuum Healthcare Executives and 8 Others Charged with Kickback Conspiracy
HOUSTON - Jeffery Parsons, of Crockett, and David Edson, of Palm Harbor, Fla., have been charged in a 13-count indictment alleging a conspiracy to pay kickbacks to several area personal care home owners and patient advocates, announced United States Attorney Kenneth Magidson today. Edson, 65, and Parsons, 55, were the vice presidents of Development and Operations, respectively, for Continuum Healthcare LLC.
April 24, 2014; U.S. Department of Justice
Owner of Baton Rouge Pharmacy Pleads Guilty for Directing $2.2 Million Health Care Fraud Scheme
The owner of a Louisiana pharmacy pleaded guilty today for directing a $2.2 million Medicare fraud scheme to repackage and redistribute prescription medications. Mona Patrice Carter, 47, pleaded guilty before U.S. District Judge James J. Brady of the Middle District of Louisiana to one count of health care fraud. Sentencing will be determined at a later date.
April 24, 2014; U.S. Attorney; District of New Jersey
Former Owner, Medical Director, of Diagnostic Testing Center Sentenced to 46 Months in Prison
NEWARK, N.J. - A radiologist who owned and operated a diagnostic testing center in Orange, N.J., was sentenced today to 46 months in prison and ordered to forfeit more than $2 million for overseeing a sprawling cash-for-patients scheme to bribe doctors for testing referrals, U.S. Attorney Paul J. Fishman announced.
April 24, 2014; U.S. Attorney; Southern District of New York
New York City Employee Charged in Manhattan Federal Court with Medicaid Fraud
Preet Bharara, United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation, and Mark G. Peters, the Commissioner of the New York City Department of Investigation, announced today the arrest of Akim Murray, an employee of the Medicaid Reimbursement Unit of the New York City Human Resources Administration, for Medicaid fraud. The Complaint alleges that Murray, an HRA Eligibility Specialist whose job involved issuing reimbursements for Medicaid-eligible expenses, manipulated the system in order to have hundreds of thousands of dollars' worth of checks issued to his friends and criminal associates, who in turn gave him a substantial cut of the proceeds
April 23, 2014; U.S. Department of Justice
Amedisys Home Health Companies Agree to Pay $150 Million to Resolve False Claims Act Allegations
WASHINGTON - Amedisys Inc. and its affiliates (Amedisys) have agreed to pay $150 million to the federal government to resolve allegations that they violated the False Claims Act by submitting false home healthcare billings to the Medicare program, the Department of Justice announced today. Amedisys, a Louisiana-based for-profit company, is one of the nation's largest providers of home health services and operates in 37 states, the District of Columbia and Puerto Rico.
April 23, 2014; U.S. Attorney; Southern District of Texas
Bryan Woman Heads to Prison in Health Care Fraud Conspiracy
HOUSTON - Yolanda Nowlin, 42, has been ordered to federal prison for 11 years following her multiple convictions in relation to a large health care fraud conspiracy, announced United States Attorney Kenneth Magidson. A federal jury in Houston convicted Nowlin Sept. 4, 2013, following seven days of trial and less than three hours of deliberations.
April 18, 2014; U.S. Attorney; Eastern District of Oklahoma
Durant Medical Center Of Southeastern Oklahoma to Pay $1.5 Million To Resolve False Claims Act Lawsuit
Muskogee, Oklahoma - The Medical Center of Southeastern Oklahoma, located in Durant, Oklahoma, and its parent, Health Management Associates, Inc., have agreed to pay $1,065,000 to the United States and $435,000.00 to the State of Oklahoma to resolve allegations that the hospital billed SoonerCare, the Oklahoma Medicaid Program, for surgical procedures performed by Dr. Daniel Castro, and related hospital services, that were not medically necessary, the United States Attorney's Office for the Eastern District of Oklahoma announced today. The settlement also resolves claims that the hospital billed for services related to surgical procedures that Castro did not perform. In January of this year, HMA was acquired by Community Health Systems, a nationwide acute care hospital chain. MCSO is an acute care hospital in Durant, Oklahoma, and Dr. Castro is an otolaryngologist who practiced at MCSO from 2005 to 2010.
April 18, 2014; U.S. Attorney; District of Massachusetts
Virginia Doctor Sentenced For Lying to Grand Jury about Medicare Fraud Scheme
BOSTON - A Virginia podiatrist was sentenced yesterday for making false declarations to a grand jury about her participation in a Medicare fraud scheme. U.S. District Court Judge Nathaniel M. Gorton sentenced Ilene Terrell, 65, of Fredericksburg, Va., to five months in prison, five months of home confinement, and two years of supervised release. He also ordered her to pay a $15,000 fine. In January 2014, Terrell pleaded guilty to four counts of making false declarations to a grand jury. Terrell, a podiatrist, lied to the grand jury about her role in falsifying patient medical records to induce Medicare to pay for claims for Orthofix bone growth stimulator medical devices that did not meet Medicare's payment guidelines. Bone growth stimulators are externally-worn medical devices that help regenerate bone cells and are used to assist the healing of broken bones. Medicare only pays for a bone growth stimulator, which costs approximately $4,000, if the medical supplier provides records demonstrating that fracture healing has ceased for three or more months.
April 17, 2014; U.S. Attorney; Eastern District of Michigan
Dearborn Heights Doctor Convicted Of Health Care Fraud
A Dearborn Heights doctor was convicted today in federal court on charges of illegal drug distribution, health care fraud and money laundering, U.S. Attorney Barbara L. McQuade announced today. U.S. District Judge Arthur J. Tarnow found Dr. Basil Qandil, 36, guilty on all 34 counts in the indictment. The evidence presented during the two-week trial showed that between 2011 and 2013, Qandil prescribed more than 3.7 million dosage units of controlled substances outside the course of legitimate medical practice. The prescriptions were issued after either a cursory examination or no examination at all. He wrote unlawful prescriptions for narcotic drugs including Oxycodone and Vicodin, which were resold on the street market or used by addicted patients.
April 17, 2014; U.S. Attorney; Northern District of West Virginia
Health Care Providers to Pay $1 Million for False Claims, Improper Referrals
WHEELING, WEST VIRGINIA -- Two Ohio Valley health care providers will pay a million dollar penalty after violating Federal law by submitting false claims to Medicare. United States Attorney William J. Ihlenfeld, II, announced that Devender Batra, M.D., and Belmont Cardiology, Inc. will pay $1 million to the United States after causing East Ohio Regional Hospital and Ohio Valley Medical Center to submit fraudulent claims to Medicare from January 2009 to August of 2010, in violation of the Federal False Claims Act. The settlement ends an investigation into improper compensation arrangements between Dr. Batra, East Ohio Regional Hospital and Ohio Valley Medical Center. The arrangements with Dr. Batra and Belmont Cardiology led the hospitals to submit false claims for prohibited referrals for various health services in violation of Federal law.
April 17, 2014; U.S. Attorney; Western District of Oklahoma
Owner, Manager, and Hospice Company Indicted for Committing Medicare Fraud
OKLAHOMA CITY-A federal grand jury in Oklahoma City has returned an indictment charging Paula Kluding, 38, from Chandler, Oklahoma; Patricia Carter, 42, from Tecumseh, Oklahoma; and Prairie View Hospic Inc. (Prairie View Hospice), an Oklahoma corporation located in Chandler, Oklahoma, with 39 separate counts relating to Medicare fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
April 17, 2014; District of New Mexico
Pawan Kumar Jain Arrested on Charges of Unlawfully Dispensing Prescription Drugs and Health Care Fraud
ALBUQUERQUE - A federal grand jury has returned an indictment charging Pawan Kumar Jain, 61, of Las Cruces, N.M., with the unlawful dispensing of opioid pain medication and health care fraud charges, announced by Acting U.S. Attorney Damon P. Martinez, Special Agent in Charge Joseph M. Arabit of the DEA's El Paso Field Division and Special Agent in Charge Carol K.O. Lee of the FBI's Albuquerque Division. The 50 health care fraud charges allege that Jain engaged in a scheme to defraud two health care benefit programs, Medicare and Medicaid, by submitting claims for payment for prescription medications he dispensed to patients outside the usual course of medical practice and without legitimate medical purpose. The maximum statutory penalty for a conviction on each of the health care fraud charges is ten years in prison and a $250,000 fine.
April 16, 2014; U.S. Department of Justice
Tennessee Substance Abuse Treatment Facility Agrees to Resolve False Claims Act Allegations for $9.25 Million
The Department of Justice announced today that CRC Health Corp. (CRC) has agreed to pay $9.25 million to the federal government and the State of Tennessee to settle allegations that CRC knowingly submitted false claims by providing substandard treatment to adult and adolescent Medicaid patients suffering from alcohol and drug addiction at its facility in Burns, Tenn. CRC, based in Cupertino, Calif., is a nationwide provider of substance abuse and mental health treatment services.
April 16, 2014; U.S. Attorney; Eastern District of Pennsylvania
Astellas Pharma US, Inc. To Pay $7.3 Million To Resolve False Claims Act Allegations
PHILADELPHIA - Pharmaceutical company Astellas Pharma US, Inc., will pay $7.3 million to resolve allegations that it violated the False Claims Act in connection with its marketing and promoting of the drug Mycamine for pediatric use. The settlement was announced today by United States Attorney Zane David Memeger and the Justice Department. Astellas Pharma US, Inc., located in Northbrook, Illinois, manufactures and sells pharmaceutical drugs, including Mycamine.
April 16, 2014; U.S. Attorney; Eastern District of Pennsylvania
Connecticut Man Charged With Running Online Fake Diploma Scheme
PHILADELPHIA - James Enowitch, 48, of Cromwell, CT, was charged today by information with mail fraud and aiding and abetting mail fraud, in connection with the operation of a number of fraudulent diploma mills, announced United States Attorney Zane David Memeger. As a result, between 2003 and 2012, Enowitch allegedly sold $5 million worth of fake degrees throughout the world.
April 14, 2014; U.S. Attorney; Central District of California
S.F. Valley Woman Who Orchestrated Health Care Fraud Scheme that Submitted Nearly $25 Million in Bogus Bills Sentenced to over 7 Years
LOS ANGELES - A North Hollywood woman who worked in the health care industry was sentenced this afternoon to 76 months in federal prison for orchestrating a scheme that submitted nearly $25 million in fraudulent bills to Medicare for services and supplies that were medically unnecessary and sometimes were never provided. Susanna Artsruni, 46, who formerly owned a durable medical equipment (DME) company and worked at a number of medical clinics in Los Angeles, was sentenced by United States District Judge Margaret M. Morrow.
April 14, 2014; U.S. Attorney; Northern District of Texas
Former Employee at Medistat Group, Associates, Inc., in Desoto, Texas, Sentenced to 33 Months in Federal Prison for Role in Health Care Fraud Conspiracy
DALLAS - Jerry C. Bullard, 57, of Mesquite, Texas, was sentenced this afternoon, by U.S. District Judge Sam A. Lindsay, to 33 months in federal prison and ordered to pay $317,779 in restitution, following his guilty plea in February 2012 to one count of conspiracy to commit health care fraud. Bullard worked in the durable medical equipment department of Medistat Group Associates, Inc., an association of health care providers in Desoto, Texas. Judge Lindsay ordered that Bullard surrender to the Bureau of Prisons on July 15, 2014.
April 14, 2014; U.S. Attorney; District of Massachusetts
Worcester Man Pleads Guilty to Stealing Government Money
BOSTON - A Worcester man pleaded guilty today in U.S. District Court in Worcester today to participating in a scheme to steal more than $110,000 from the federal government. Marvin Lubin, 22, pleaded guilty before U.S. District Court Judge Timothy S. Hillman to theft of public money. In March 2014, Lubin was charged in a felony information. Sentencing is scheduled for July 7, 2014.
April 14, 2014; U.S. Department of Justice
Government Intervenes in Lawsuit against Medical Equipment Supplier Orbit Medical Inc. and Former Vice President Jake Kilgore
The government has intervened in a False Claims Act lawsuit against Orbit Medical Inc. and Jake Kilgore alleging that Orbit Medical's sales representatives boosted power wheelchair and accessory sales by altering and forging physician prescriptions and supporting documentation, the Justice Department announced today. Orbit Medical is a durable medical equipment supplier based in Salt Lake City, Utah. Jake Kilgore is the former vice president and sales manager at Orbit Medical for the Western region of the United States.
April 14, 2014; U.S. Department of Justice
Government Settles False Claims Act Allegations against Kansas Cancer Treatment Facility and Its Owner
Hope Cancer Institute, a cancer treatment facility in Kansas, and Dr. Raj Sadasivan, the owner of Hope Cancer Institute, have agreed to pay $2.9 million to resolve allegations that they violated the False Claims Act by submitting claims to Medicare, Medicaid and the Federal Employee Health Benefits Program for drugs and services that were not provided to beneficiaries, the Department of Justice announced today.
April 10, 2014; U.S. Attorney; Middle District of North Carolina
Owner of Tax Return Preparation Franchise and Health Provider Business Pleads Guilty to Tax Fraud, Healthcare Fraud and Money Laundering
Claude Arthur Verbal II, formerly of Raleigh, N.C., and now of Miami, pleaded guilty to tax fraud, healthcare fraud and money laundering in two separate cases in federal court, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Ripley Rand for the Middle District of North Carolina. Verbal pleaded guilty to one count of conspiracy to defraud the United States, one count of aiding and assisting the preparation of false tax returns, one count of healthcare fraud and one count of money laundering. The plea was accepted late yesterday by U.S. District Judge Catherine Eagles in Greensboro, N.C., and sentencing was set for Aug. 11, 2014. Verbal faces up to 28 years in federal prison and $850,000 in fines, and has agreed to pay restitution to the Internal Revenue Service (IRS) and Medicaid. According to court documents, Verbal was the owner and operator of Infinite Wellness Concepts (IWC), a Medicaid behavioral health provider with locations in Burlington, Durham and Greensboro, N.C. IWC was contracted to provide group therapy, intensive in-home services, enhanced mental health and substance abuse services. Court documents state that Verbal acquired at least one million dollars in fraudulently obtained funds from the Medicaid program.
April 11, 2014; U.S. Attorney; District of New Jersey
Bergen County, N.J., Doctor Charged With Tax Violations
NEWARK - A Bergen County, N.J., doctor who owns three immediate care facilities in Hudson County, N.J., was arrested today on multiple tax violations, including allegedly making cash deposits of more than $5.8 million into bank accounts he controlled, U.S. Attorney Paul J. Fishman announced.
April 10, 2014; U.S. Attorney; Western District of North Carolina
Federal Judge Hands Down Prison Sentences To Two Women For Using Stolen Identities To Claim Millions Of Dollars From Medicaid In Related Health Care Fraud Schemes
CHARLOTTE, N.C. - Two women who defrauded Medicaid of millions of dollars using stolen therapists' identities in related health care fraud schemes have been sentenced to prison by a federal judge in Charlotte, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
April 9, 2014; U.S. Attorney; District of Maryland
Baltimore Prescription Drug Trafficker Sentenced To 5 Years in Prison
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Richard Ashbrook, age 51, of Baltimore, today to five years in prison followed by three years of supervised release for conspiring to distribute oxycodone.
April 9, 2014; U.S. Attorney; District of New Jersey
Tom's River, N.J., Chiropractor Admits Receiving Bribes for Patient Referrals
NEWARK, N.J. - A chiropractor with a practice in Toms River, N.J., admitted today to accepting bribes to refer a number of his patients to a New Jersey-licensed pain management physician, U.S. Attorney Paul J. Fishman announced. Norman Eastburn, 48, of Jackson, N.J., pleaded guilty to an information charging him with one count of violating the Anti-Kickback statute. He entered his guilty plea before U.S. District Judge Stanley R. Chesler in Newark federal court.
April 9, 2014; U.S. Attorney; District of Columbia
Physical Therapy Clinics to Pay $2.78 Million to Resolve False Claims Act Allegations
WASHINGTON - Two companies that operate physical therapy clinics in Washington, D.C., Virginia, and Maryland, along with three individuals associated with the businesses, have agreed to pay the United States $2.78 million to settle allegations that the firms' billings to Medicare and the TRICARE health care program violated the False Claims Act. The companies -- Alliance Rehabilitation, LLC and Active Physical Therapy Services, LLC -- submitted invoices to Medicare and TRICARE through a consolidated billing office in Fairfax, Va., that was managed and overseen by Geeta Trehan, of Virginia. The companies' owners, Thomas Bray and Rajeev Gupta, both of Maryland, also managed the operations.
April 9, 2014; U.S. Attorney; District of New Jersey
Morris County Physician Admits Taking Bribes in Test Referrals Scheme with New Jersey Clinical Lab
NEWARK, NJ-A physician with a practice in Madison, New Jersey admitted today to accepting bribes of $2,000 per month in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS) of Parsippany, New Jersey; its president; and numerous associates, U.S. Attorney Paul J. Fishman announced. Wayne Lajewski, 51, pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of accepting bribes.
April 9, 2014; U.S. Attorney; District of Kansas
Manhattan Physician Sentenced For Unlawfully Prescribing Prescription Drugs
TOPEKA, KAN. - A Manhattan, Kan., physician was sentenced Wednesday to five years in federal prison for unlawfully prescribing prescription drugs, U.S. Attorney Barry Grissom said. Michael P. Schuster, 54, Manhattan, Kan., pleaded guilty to one count of conspiracy to distribute controlled substances.
April 9, 2014; U.S. Attorney; District of Kansas
Kansas Home Health Worker's Bills Claimed She Was Working Up To 39 Hours A Day
TOPEKA, KAN. - A Kansas City, Kan., woman working as a personal care attendant was indicted Wednesday on a federal charge that Medicaid paid more than $587,000 based on fraudulent bills she submitted, U.S. Attorney Barry Grissom and Kansas Attorney General Derek Schmidt announced. Doris Betts, 54, Kansas City, Kan., was charged with six counts of health care fraud.
April 8, 2014; U.S. Department of Justice
Detroit Home Health Agency Office Manager Sentenced for Her Role in $5.8 Million Medicare Fraud Scheme
The office manager of a Detroit-area home health agency was sentenced today to serve 46 months in prison for her role in a $5.8 million Medicare fraud scheme. Nabila Mahbub, 28, was sentenced by U.S. District Judge Denise Page Hood in the Eastern District of Michigan. In addition to her prison term, Mahbub was sentenced to serve two years of supervised release and was ordered to pay more than $3 million in restitution, jointly and severally with her co-defendants. A jury convicted Mahbub of one count of health care fraud conspiracy in April 2013. According to evidence presented at trial, the defendant and her co-conspirators caused the submission of false and fraudulent claims to Medicare through All American Home Care Inc., a home health care company located in Oak Park, Mich., that purported to provide skilled nursing and physical therapy services to Medicare beneficiaries in the greater Detroit area.
April 8, 2014; U.S. Attorney; Southern District of Florida
Ten Individuals Indicted for Medicare Fraud Scheme
Nine residents of Miami-Dade County and a resident of Hillsborough County have been indicted for their alleged participation in a $12.5 million Medicare fraud scheme. On March 20, 2014, a federal grand jury in Miami returned a 59-count indictment charging Vicente Diaz, 39, Daniel Ocampo, 35, Elsa Capo, 71, Santiago Sepulveda, 79, Marta Curbeco, 67, Margarita Rodriguez, 72, Francisco Maysonet, 67, Pedro Peralta, 69, Amira Galan, 79, and Ana Rosa Santana, 77, for allegedly participating in a scheme to defraud Medicare by submitting false and fraudulent claims, and the payment and receipt of kickbacks in connection with a federal health care program, from approximately November 2011 to October 2013.
April 4, 2014; U.S. Attorney; District of Maryland
Maryland Woman Indicted for Treating Patients While Fraudulently Posing as a Physician's Assistant
Baltimore, Maryland - A federal grand jury has indicted Shawna Michelle Gunter, age 36, of Severna Park, Maryland, on charges of wire fraud, aggravated identity theft and health care fraud. The indictment was returned on March 18, 2014, and unsealed today upon Gunter's arrest. According to the four count indictment and search warrant affidavit, from July 5 to August 29, 2013, Gunter acted as a physician's assistant, even though she did not have the medical education, training or qualifications to do so. Gunter sought employment as a physician's assistant with a pediatrician who had offices in Centreville and Chestertown, Maryland. To gain employment, Gunter allegedly provided a forged Howard University physician's assistant diploma. She also allegedly provided a forged physician's assistant certificate bearing the license number of another physician assistant practicing in Salisbury, without the victim's knowledge or approval, as well as a forged DEA controlled substance registration certificate bearing a registration number that was almost identical to the victim's.
April 3, 2014; U.S. Attorney; Southern District of Illinois
Alton Doctor Sentenced On Charges of Health Care Fraud and Illegal Dispensation of Controlled Substances
Viwathna Bhuthimethee, 69, a medical doctor who operated the Walk In Clinic, located on East Broadway Street in Alton, Illinois, was sentenced, today, in district court to twelve months and a day in federal prison on his guilty plea to the fifteen felony counts of an indictment which charged health care fraud against the Illinois Medicaid program and illegal distribution of Schedule III controlled substances (Hydrocodone) and Schedule IV controlled substances (Xanax) by prescribing outside the usual course of professional conduct and without legitimate medical purpose, Stephen R. Wigginton, the United States Attorney for the Southern District of Illinois announced. The Court also imposed a $5,000 fine, a $1,500 special assessment, restitution to Medicaid of $397.48, and two years of supervision following release from prison.
April 3, 2014; U.S. Attorney; Eastern District of Pennsylvania
Ambulance Company Driver Sentenced To Prison
PHILADELPHIA - Valeriy Davydchik, 59, of Philadelphia, PA, was sentenced today to 24 months in prison for his role in a conspiracy to defraud Medicare involving Penn Choice Ambulance Inc., located in Camp Hill, PA and Huntingdon Valley, PA. On April 9, 2013, the defendant, Anna Mudrova, Yury Gerasyuk, Mikhail Vasserman, Irina Vasserman, Aleksandr Vasserman, Khusen Akhmedov, and Penn Choice Ambulance Inc. were indicted and charged with conspiracy to commit health care fraud and related charges. All defendants have pleaded guilty and await sentencing before U.S. District Court Judge Juan R. Sánchez.
April 2, 2014; U.S. Attorney; Eastern District of Arkansas
Husband and Wife Doctors Indicted For Healthcare Fraud
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced today that a Federal Grand Jury has indicted Dr. Robert Barrow, age 60, and Dr. Angela Barrow, age 50, of Little Rock charging both with one count of conspiracy to commit health care fraud and six counts of health care fraud. In addition, Dr. Robert Barrow is also charged with four counts of making false statements in relation to health care matters.
April 2, 2014; U.S. Attorney; Central District of California
Three Arrested after Being Named in New Indictment that Alleges Money Laundering, Health Care Fraud and Tax Fraud Schemes
LOS ANGELES - Three people who were recently named in a superseding indictment that adds health care fraud charges to money laundering and tax fraud schemes were arrested this morning by federal authorities. Edgar Hakobyan, 30, of Glendale; Karen Sarkissian, 43, of Glendale; and L'Tanya Smith, 57, of Ladera Park, were taken into custody without incident and are scheduled to be arraigned on the indictment this afternoon in United States District Court.
April 2, 2014; U.S. Attorney; Southern District of Texas
DME Owner Convicted on all Counts
HOUSTON - Andrea Michelle Tellison, 47, has been convicted today of 14 counts of health care fraud and seven counts of aggravated identity theft, announced United States Attorney Kenneth Magidson. The jury returned its verdicts this afternoon following three days of trial and less than two hours of jury deliberation. Tellison, the director of operations, chief compliance officer and co-owner of Texas Durable Medical Company was charged in March 2013 with health care fraud and aggravated identity theft in relation to the submission of approximately $1.48 million worth of enteral nutrition and enteral feeding supply claims to Medicare.
April 1, 2014; U.S. Department of Justice
Physician Pleads Guilty for Role in Detroit-area Medicare Fraud Scheme
A Detroit-area physician pleaded guilty today for her role in a $7 million health care fraud scheme. Adelina Herrero, 72, of Ann Arbor, Mich., pleaded guilty before U.S. District Judge Paul D. Borman in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. Sentencing will be scheduled at a later date.

March 2014

March 31, 2014; U.S. Department of Justice
Los Angeles Physician Assistant Pleads Guilty in Two Medicare Fraud Cases
A Los Angeles physician assistant pleaded guilty today to defrauding Medicare by signing fraudulent prescriptions for durable medical equipment while working at two separate medical clinics in California. Erasmus Kotey, 77, of Montebello, Calif., pleaded guilty before U.S. District Judge Margaret M. Morrow in the Central District of California to one count of health care fraud and one count of conspiracy to commit health care fraud. Sentencing is scheduled for Sept. 8, 2014.
March 31, 2014; U.S. Attorney; Northern District of Texas
Father and Son Sentenced to Lengthy Federal Prison Sentences on Conspiracy and Health Care Fraud Convictions
Dallas - Two Grand Prairie, Texas, men, convicted at trial in October 2013 on conspiracy and health care fraud charges related to their operation of A Medical House Calls, a physician house-call company in North Texas, were sentenced this morning by U.S. District Judge David C. Godbey, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
March 31, 2014; U.S. Attorney; Middle District of Florida
Two Sentenced In Connection With Sunshine Pharmacy Health Care Fraud
Fort Myers, Florida - United States District Judge John E. Steele today sentenced Delmer Holmes Parrish (44) and Patricia Parrish (74), both of Naples, for their roles in a conspiracy to commit health care fraud that operated from Sunshine Pharmacy in Naples, Florida. Delmer Holmes Parrish, a licensed Pharmacist, was sentenced to two years in federal prison. Patricia Parrish was sentenced three years of probation, to include 120 days of home confinement, and ordered to pay a $5,000 fine. Both were also ordered to pay restitution to the United States in the amount of $351,358.14, the proceeds of the crime. Pursuant to their agreement, this amount was paid in full, immediately following the sentencing. As part of the plea agreement, Delmer Holmes Parrish also permanently relinquished his Pharmacist License to the State of Florida.
March 28, 2014; U.S. Attorney; Middle District of Florida
Husband and Wife Arrested For Operating Clinic to Defraud Medicare
Tampa, FL - United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Miami residents Gladys Fuertes (40) and her husband Mario Fuertes (38) with conspiracy, healthcare fraud, aggravated identity theft, and obstructing a healthcare investigation. The Fuerteses were arrested on Wednesday morning in Miami. If convicted, each faces a maximum penalty of ten years in federal prison on each of the conspiracy and healthcare fraud counts and five years on each of the obstruction counts, as well as mandatory sentences of two years in prison for each of the aggravated identity theft counts. The indictment also notifies the couple that the United States is seeking a money judgment in the amount of $266,423.20, which is traceable to the proceeds of the alleged criminal conduct.
March 26, 2014; U.S. Attorney; Southern District of Illinois
Effingham Doctor Indicted on Charges of Health Care Fraud and Illegal Dispensation of Controlled Substances
A federal grand jury sitting in East St. Louis, Illinois returned a 15-count indictment against an Effingham County doctor, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The indictment was opened today upon the arrest and arraignment of the doctor in Benton, Illinois.
March 26, 2014; U.S. Attorney; Eastern District of Michigan
Ferndale Doctor Pleads Guilty To Prescription Drug Trafficking
Dr. Joel Milliner, M.D., age 45, of Ferndale pleaded guilty yesterday to distribution of controlled substances including prescription pain killers, U.S. Attorney Barbara L. McQuade announced. Milliner pleaded guilty to distribution of controlled substances outside of the course of legitimate medicine. Over the course of several months, Milliner wrote prescriptions for Opana and Oxycondone that he knew would be diverted for illicit purposes.
March 26, 2014; U.S. Attorney; Northern District of Ohio
Akron Physician and Three Employees Indicted For Illegally Prescribing Hundreds of Thousands of Painkillers and Other Pills
An Akron physician and three of his employees were indicted for illegally prescribing hundreds of thousands of doses of painkillers and other pills to customers for no legitimate medical purpose, even after he learned some customers had died from overdose-related deaths, law enforcement officials announced today. Adolph Harper, Jr., 63, of Akron, Adria Harper, 34, of Akron, Patricia Laughman, 51, of Barberton, Ohio, and Tequilla Berry, 35, of Akron, are all named in the 134-count indictment.
March 26, 2014; U.S. Attorney; District of South Dakota
Rapid City Man Charged With Theft from Indian Health Service
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Theft or Embezzlement in Connection with Health Care. Michael Gray, age 58, was indicted on March 18, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 20, 2014, and pled not guilty to the Indictment.
March 25, 2014; U.S. Department of Justice
Long Island Doctor Arrested and Accused of Multi-million Medicare Fraud Scheme
A Long Island, N.Y., doctor was arrested today on charges that he submitted millions of dollars in false billings to Medicare. Dr. Syed Imran Ahmed, 49, was charged with one count of health care fraud by a criminal complaint unsealed this morning in federal court in Brooklyn, N.Y. A seizure warrant seeking millions of dollars of Ahmed's alleged ill-gotten gains, including the contents of seven bank accounts, was also unsealed. In addition, a civil forfeiture complaint was also filed today against Ahmed's residence located in Muttontown, N.Y., valued at approximately $4 million. Further, search warrants were executed earlier today at six locations in New York, Michigan and Nevada.
March 25, 2014; U.S. Attorney; District of New Jersey
New York Doctor Admits Taking Bribes for Referring Tests to New Jersey Clinical Lab
NEWARK, N.J. - A pediatrician with a New York practice in Staten Island and Brooklyn admitted today he accepted bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president and numerous associates, New Jersey U.S. Attorney Paul J. Fishman announced. Surender Gorukanti, 46, of Brooklyn, pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of accepting bribes.
March 24, 2014; U.S. Department of Justice
Southern California Man Found Guilty of Health Care Fraud and Aggravated Identity Theft for Role in $1.5 Million Medicare Fraud Scheme
A Southern California man who ran a durable medical equipment supply company has been found guilty by a federal jury in Los Angeles for his role in a $1.5 million Medicare fraud scheme. Vahe Tahmasian, 36, of Glendale, Calif., was found guilty on March 21, 2014, in U.S. District Court in the Central District of California of one count of conspiracy to commit health care fraud, six counts of health care fraud and six counts of aggravated identity theft. Sentencing is set for June 9, 2014.
March 21, 2014; U.S. Attorney; Eastern District of North Carolina
Duke University Health System, Inc. Agrees To Pay $1 Million for Alleged False Claims Submitted To Federal Health Care Programs
RALEIGH - United States Attorney for the Eastern District of North Carolina Thomas G. Walker and North Carolina Attorney General Roy Cooper announced jointly that Duke University Health System, Inc. (Duke University Health System) has agreed to pay $1 million to resolve allegations under the U.S. and North Carolina False Claims Acts that it made false claims in conjunction with certain services provided to beneficiaries of Federal health care programs (Medicare, Medicaid, and TRICARE).
March 21, 2014; U.S. Attorney; Southern District of Texas
U.S. Settles Civil Lawsuit against Valley Heart Consultants/Doctors
McALLEN, Texas - Valley Heart Consultants Dr. Carlos Mego and Dr. Subbarao Yarra have settled a suit brought by the United States in McAllen alleging violations of the Federal False Claims Act, announced United States Attorney Kenneth Magidson. The suit alleged that from Jan. 1, 2004, through September 2010, Mego and Yarra violated the False Claims Act by billing Medicare for nuclear stress tests and physical examinations which were allegedly substandard. The United States also alleged that the nuclear medicine used in the tests was injected by personnel who lacked the requisite license. Many of the nuclear stress tests were allegedly unnecessary, as well as many of the coronary angiographies, echocardiograms and carotid doppler studies which the defendants billed to Medicare, according to the allegations.
March 20, 2014; U.S. Attorney; District of Oregon
Sibling Sentenced to 6 Months in Jail for Theft of Welfare Benefits
PORTLAND, Ore. - A Portland man was sentenced to 6 months in jail for stealing more than $8,000 in benefits intended for his disabled sister. Jason I. Boutros, 49, appeared in federal court for sentencing yesterday after previously pleading guilty to Social Security fraud in December.
March 20, 2014; U.S. Attorney; Southern District of Illinois
Federal Jury Finds Missouri Woman Guilty Of Health Care Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on March 19, 2014, Tisa V. Vaughn, 49, of Florissant, Missouri, was found guilty in United States District Court in East St. Louis, Illinois, on an indictment charging that she engaged in a scheme to commit health care fraud. Sentencing is set for July 11, 2014. The charge carries a maximum penalty of 10 years in prison, a $250,000 fine, and up to 3 years of supervised release.
March 20, 2014; U.S. Attorney; Middle District of Pennsylvania
Mechanicsburg Doctor and Owner of Two Medical Facilities Sentenced To 15 Months Imprisonment
The United States Attorney for the Middle District of Pennsylvania announced that today, Chief United States District Court Judge Christopher Conner sentenced a Mechanicsburg doctor, Timothy Clark, age 47 to 15 months imprisonment for health care fraud and pension fraud. Clark was also ordered to pay restitution of $130,535.05 and forfeiture of $105,518.46.
March 19, 2014; U.S. Attorney; Western District of Pennsylvania
$1.5M Settlement with West Penn Allegheny Health System Resolves False Claims Act Allegations
PITTSBURGH - West Penn Allegheny Health System, Inc. ("WPAHS") has agreed to pay the United States $1,529,281.50 to settle False Claims Act allegations, United States Attorney David Hickton announced today. The settlement results from a self-disclosure by WPAHS to the United States Attorney's Office. Based on information provided by WPAHS, the United States alleged that WPAHS leased space to physicians at below-market rates to induce referrals of patients to WPAHS, in violation of the Anti-Kickback Statute and Stark Law. The United States further alleged that these referrals resulted in improper claims being submitted to federal health care programs.
March 18, 2014; U.S. Department of Justice
Straw Owner of Clinic Sentenced in Medicare Fraud Scheme
A Florida man who had been the straw owner of a physical therapy rehabilitation facility has been sentenced to serve 30 months in prison for his role in a $28.3 million Medicare fraud scheme. Roberto Fernandez Gonzalez, 63, formerly of southwest Florida, was sentenced by U.S. District Judge Susan C. Bucklew in the Middle District of Florida and was ordered to forfeit $446,738 and pay the same amount in restitution. Fernandez pleaded guilty on June 24, 2013, to conspiracy to commit health care fraud.
March 18, 2014; U.S. Attorney; Northern District of Alabama
American Family Care Inc. To Pay $1.2 Million to Settle Allegations of Inflated Medicare Claims
WASHINGTON - American Family Care Inc. has agreed to pay the government $1.2 million to resolve allegations under the False Claims Act that it knowingly submitted claims to Medicare for outpatient office visits that were billed at a higher rate than was appropriate, the Justice Department announced today. American Family Care is a network of walk-in medical clinics headquartered in Birmingham, Ala., with offices in Alabama, Tennessee and Georgia.
March 18, 2014; U.S. Attorney; District of Connecticut
Osteopathic Physician Arrested on Health Care Fraud Charges
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that David Lester Johnston, 45, of Ridgefield, was arrested today on federal health care fraud charges. On March 12, 2014, a federal grand jury sitting in Hartford returned an indictment charging Johnston with 14 counts of health care fraud and 14 counts of making false statements relating to health care matters.
March 17, 2014; U.S. Attorney; District of South Carolina
Defendants Convicted of Health Care Fraud to be Sentenced
Columbia, South Carolina ----- Truman Levi Lewis, age 35, of Charlotte, North Carolina, and Norman Devi Lewis, age 32, of Georgetown, South Carolina, are scheduled to be sentenced at 10 a.m. and 11:30 a.m., respectively, on Wednesday, March 19, 2014, at the Federal Court House in Charleston. In August of last year, both were convicted by a jury on charges of Conspiracy to Commit Health Care Fraud, a violation of 18 U.S.C. § 1349, 1347, Conspiracy to Commit Money Laundering, a violation of 18 U.S.C § 1956(h) and four counts of Wire Fraud, violations of 18 U.S.C § 1343. United States District Judge Richard M. Gergel of Charleston presided over the trial and will impose the sentences.
March 17, 2014; U.S. Attorney; Northern District of Texas
Physician Sentenced to 57 Months in Federal Prison on Health Care Fraud Conviction
DALLAS - Dr. Nicolas Alfonso Padron, 54, of Garland, Texas, was sentenced this morning by U.S. District Judge David C. Godbey to 57 months in federal prison and ordered to pay $9,484,111 in restitution to the Centers for Medicare and Medicaid Services (CMS). Dr. Padron pleaded guilty in September 2013 to one count of count of conspiracy to commit health care fraud stemming from his role as medical director of a physician house-call company, A Medical House Calls (A Medical). Dr. Padron has been in custody since his arrest in June 2012. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
March 14, 2014; U.S. Department of Justice
Medical Clinic Owner Sentenced for Role in Multiple Health Care Fraud Schemes Totaling
Over $20 Million

The owner and operator of a Miami medical clinic, Merfi Corp., was sentenced today to serve 108 months in prison for her participation in multiple health care fraud schemes. Isabel Medina, 49, of Miami, was sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida. In addition to her prison term, Medina was also sentenced to serve three years of supervised release and was ordered to pay $8,437,393 in restitution.
March 14, 2014; U.S. Department of Justice
Medical Clinic Owner and Other Patient Recruiters Sentenced for Roles in $8 Million Health Care Fraud Scheme
Several patient recruiters, including a medical clinic owner, were sentenced today for their participation in a health care fraud scheme involving Flores Home Health Care Inc., a defunct home health care company. Lerida Labrada, 59; Mayra Flores, 49; and German Martinez, 36, all of Miami, were sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida to serve 37 months, 24 months, and 24 months in prison, respectively. In addition to their prison terms, all of the defendants were sentenced to three years of supervised release and ordered to pay between $200,000 and $400,000 in restitution.
March 13, 2014; U.S. Attorney; District of Massachusetts
Pain Management Physician Charged with Overbilling Medicare
BOSTON - A physician specializing in pain management was charged today for overbilling the Medicare program. Fathalla Mashali, 59, of Dover, was indicted on nine counts of heath care fraud. Mashali was a licensed physician in Massachusetts and Rhode Island who operated New England Wellness & Pain Management, P.C., which was also known as New England Pain Associates, P.C., Greystone Pain Management, Inc., and New England Pain Institute, P.C., or NEPA. NEPA, a pain management clinic with locations in Massachusetts and Rhode Island, served many patients who were Medicare beneficiaries.
March 13, 2014; U.S. Department of Justice
Memorial Hospital in Ohio Pays Government $8.5 Million to Settle False Claims Act Allegations
Memorial Hospital, an Ohio nonprofit corporation that operates an acute care hospital in Fremont, Ohio, has agreed to pay $8.5 million to settle claims that it violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute by engaging in improper financial relationships with referring physicians, the Justice Department announced today.
March 13, 2014; U.S. Department of Justice
Former Veterans Affairs Psychiatrist Sentenced For Medicare Fraud
WASHINGTON - A licensed psychiatrist formerly employed by the Department of Veterans Affairs (VA) was sentenced today to serve 18 months in prison for falsely claiming to provide at-home services to Medicare beneficiaries. Dr. Mikhail L. Presman, 56, of Brooklyn, N.Y., was sentenced by Judge I. Leo Glasser in the Eastern District of New York. Presman was sentenced to serve three years of supervised release following his prison term and ordered to forfeit $1.2 million and pay restitution to Medicare.
March 13, 2014; U.S. Attorney; District of New Jersey
Twin Brother Pharmacists Each Sentenced To 42 Months in Prison for Defrauding Patients and Insurance Companies of $1.5 Million
NEWARK, N.J. - Two pharmacists - twin brothers who previously owned the West Orange Pharmacy - were each sentenced 42 months in prison today for reaping at least $1.5 million in illicit gains by defrauding patients, Medicaid and insurance companies over the past 15 years, U.S. Attorney Paul J. Fishman announced. Robert and William Carlucci, both 70 and of Florham Park, N.J., previously pleaded guilty before U.S. Magistrate Judge Michael A. Hammer to separate informations charging them with conspiring to commit health care fraud. The sentenced was imposed today by U.S. District Judge Faith Hochberg in Newark federal court.
March 13, 2014; U.S. Attorney; District of Maryland
Ophthalmologist Agrees To Pay $1.4 Million and To 20 Year Voluntary Exclusion from Federal Programs To Settle Claims That He Performed Medically Unnecessary Laser Procedures
Baltimore, Maryland - John Arthur Kiely, M.D., of Lutherville, Maryland, has agreed to pay the United States $1.4 million to settle claims under the Federal False Claims Act that he submitted and caused the submission of false claims by Bon Secours Hospital to Medicare and Medicaid between October 29, 2002 and April 14, 2009. Kiely has also agreed to a 20 year voluntary exclusion from Federal health care programs.
March 12, 2014; U.S. Department of Justice
Jury Convicts All Seven Defendants in $97 Million Medicare Fraud Scheme
A federal jury in Houston today convicted two owners of a former Houston mental health care company, Spectrum Care P.A. (Spectrum), several of its employees and the owners of certain Houston group care homes for their participation in a $97 million Medicare fraud scheme. Physicians Mansour Sanjar, 81, and Cyrus Sajadi, 66, the owners of Spectrum, were each convicted of conspiracy to commit health care fraud and conspiracy to pay kickbacks as well as related counts of health care fraud and paying illegal kickbacks. Adam Main, 33, a physician's assistant, was convicted of conspiracy to commit health care fraud and related counts of health care fraud. Shokoufeh Hakimi, 66, administrator of Spectrum, was convicted of conspiracy to commit health care fraud, conspiracy to pay kickbacks and a related count of paying an illegal kickback. Chandra Nunn, 35, a group home owner, was also convicted of conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks and related counts of receiving illegal kickbacks. Sharonda Holmes, 40, a patient recruiter, was convicted of conspiracy to pay and receive kickbacks and a related count of receiving an illegal kickback. Shawn Manney, 51, a group home owner, was convicted of conspiracy to pay and receive illegal kickbacks.
March 11, 2014; U.S. Department of Justice
Florida Hospital System Agrees to Pay the Government $85 Million to Settle Allegations of Improper Financial Relationships with Referring Physicians
Halifax Hospital Medical Center and Halifax Staffing Inc. (Halifax), a hospital system based in the Daytona Beach, Fla., area, have agreed to pay $85 million to resolve allegations that they violated the False Claims Act by submitting claims to the Medicare program that violated the Physician Self-Referral Law, commonly known as the Stark Law, the Justice Department announced today.
March 11, 2014; U.S. Department of Justice
Pharmaceutical Company to Pay $27.6 Million to Settle Allegations Involving False Billings to Federal Health Care Programs
Pharmaceutical manufacturer Teva Pharmaceuticals USA Inc. and a subsidiary, IVAX LLC, have agreed to pay the government and the state of Illinois $27.6 million for allegedly violating the False Claims Act by making payments to induce prescriptions of an anti-psychotic drug for Medicare and Medicaid beneficiaries . Teva Pharmaceuticals USA is located in North Wales, Pa., and IVAX LLC is a Florida company.
March 7, 2014; U.S. Attorney; Eastern District of Michigan
Jury Convicts Doctor, Pharmacist, Marketer in Health Care Fraud Scheme
A doctor, a pharmacist and a marketer were convicted today in federal court in Detroit for health care fraud and controlled substance distribution, U.S. Attorney Barbara L. McQuade announced today. The jury returned guilty verdicts against Dr. Carl Fowler, M.D., 61, of West Bloomfield, pharmacist Mukesh Khunt, 34, of Toronto, Ontario, Canada, and Michael Thoran of Detroit. Defendants Fowler and Thoran were convicted on all three of the counts with which they were charged, conspiracies to commit health care fraud, to distribute controlled substances, and to pay or receive health care kickbacks.
March 7, 2014; U.S. Attorney; Southern District of Illinois
Ramsey Man Sentenced on Health Care Fraud Charge
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on March 7, 2014, William Dale Sidener, 31, of Ramsey, Illinois, was sentenced on the one-count indictment charging that he engaged in a scheme to commit health care fraud in the United States District Court in East St. Louis, Illinois. The district court sentenced Sidener to serve three years of probation, with the three months to be in home confinement. The district court also ordered Sidener to pay $4,677.75 in restitution to the Illinois Department of Human Services and pay a special assessment of $100.00.
March 7, 2014; U.S. Attorney; Western District of Pennsylvania
Former Family Physician Sentenced to Probation, Community Service for Selling Drug Samples
PITTSBURGH - A Pittsburgh-area family doctor has been sentenced in federal court to one year of probation with 200 hours of community service and a $5000 fine on his conviction of the unlawful sale of pharmaceutical drug samples, United States Attorney David J. Hickton announced today.
March 7, 2014; U.S. Attorney; Southern District of New York
Dutchess County Orthopedic Surgeon Sentenced In White Plains Federal Court to 54 Months for Multimillion Dollar Health Care Fraud Scheme
Preet Bharara, the United States Attorney for the Southern District of New York, announced that Dr. Spyros Panos, an orthopedic surgeon, was sentenced today in White Plains federal court before U.S. District Judge Nelson S. Roman to serve 54 months in prison for operating a long-running health care fraud scheme in which PANOS defrauded Medicare, the New York State Insurance Fund, and numerous private health insurance providers (the "Health Insurance Providers") out of over $2.5 million by systematically lying about the nature and scope of the surgical procedures that he performed. In addition, PANOS was ordered to forfeit $5 million. He was ordered to surrender to start serving his prison term in 30 days.
March 7, 2014; U.S. Attorney; Northern District of Indiana
Roy Dunn: Conspiracy to Submit Fraudulent Claims to Medicare
Roy Dunn, 60, of Winamac, Indiana, a defendant in the case U.S. v Hoosier EMS Inc. et al., pled guilty before District Judge Joseph Van Bokkelen to the felony offense of conspiracy to submit fraudulent claims to Medicare in connection with ambulance transportation for Medicare recipients in Northwest Indiana. Sentencing has been set for May 20, 2014. This charge was filed as a result of an investigation by the Federal Bureau of Investigation, the Medicaid Fraud Control Unit, and the U.S. Department of Health and Human Services. This case is being prosecuted by Assistant United States Attorneys Diane Berkowitz and Thomas McGrath.
March 7, 2014; U.S. Attorney; Southern District of New York
Manhattan U.S. Attorney Announces Medicaid Fraud Charges Against Postal Employee And Spouse
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas O'Donnell, the Special Agent in Charge of the New York Office of the United States Department of Health and Human Services, Office of Inspector General ("HHS-OIG"), today announced charges against ALEXANDER KNOBEL, an employee of the United States Postal Service the ("Postal Service"), and his spouse, YANA MALKINA, for Medicaid fraud. The Complaint alleges that KNOBEL and MALKINA repeatedly submitted fraudulent documents to obtain and continue to receive Medicaid for themselves and their family, defrauding the Medicaid Program of nearly $100,000, and causing resources designed for low-income individuals to be diverted to themselves. The defendants were arrested this morning and are expected to be presented today before U.S. Magistrate Judge James L. Cott.
March 6, 2014; U.S. Department of Justice
Physician Pleads Guilty for Role in Detroit-Area Medicare Fraud Scheme
A former Detroit-area physician pleaded guilty today for his role in an $11.5 million health care fraud scheme.
March 3, 2014; U.S. Attorney; District of North Dakota
California Man Sentenced for Defrauding Medicare of $400,000
FARGO - U.S. Attorney Timothy Q. Purdon announced that on March 3, 2014, Robert Olie, 66, Torrance Calif., was sentenced before U.S. District Judge Ralph R. Erickson, to 12 months of electronic home monitoring and three year's supervised release for conspiracy to commit health care fraud. Olie was also ordered to pay $417,000 in restitution in addition to $100,000 in forfeiture of assets. Olie was ordered to pay $100 special assessment to the Crime Victims Fund in addition to his sentence.

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