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Criminal and Civil Enforcement

December 2013

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

November 2013

November 26, 2013; U.S. Attorney; Middle District of Florida
Former Health Management Associates Executive Indicted for Obstruction-Related Offense
FORT MYERS, FL-Acting United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Joshua S. Putter (48, Needham, Massachusetts) with destruction, alteration, or falsification of records in federal investigations. If convicted, he faces a maximum penalty of 20 years in federal prison.
November 25, 2013; U.S. Attorney; Middle District of Louisiana
$1.2 Million Settlement Of Civil Health Care Fraud Case
Baton Rouge, LA - Acting United States Attorney Walt Green and Louisiana State Attorney General James "Buddy" Caldwell announced today that the United States and the State of Louisiana have reached a civil settlement with defendants, Sabine Optical Laboratories, Inc. d/b/a The Vision Center ("Sabine"), Dr. Carl Carnaggio, Sr., Dr. Carl Carnaggio, Jr. and Lori Carnaggio (collectively "Sabine Defendants") and Cypress Optical Laboratory, LLC, a Sabine-affiliated company. According to the terms of the settlement, Sabine paid $1,200,000 to the United States and the State of Louisiana, $819,960 of which constitutes the federal share and $380,040 of which constitutes the state share of costs reimbursed to the Medicaid program, which is a Federal-State matching entitlement program providing medical assistance for certain individuals and families with low incomes and resources.
November 22, 2013; U.S. Attorney; Western District of North Carolina
Charlotte Jury Finds Former Owner of Mental Health Clinic Guilty Of Defrauding Medicaid Using Stolen Identities of Children and Clinicians
CHARLOTTE, N.C. - A federal jury sitting in Charlotte returned a guilty verdict today for a Charlotte man accused of conspiring to defraud Medicaid of at least $700,000, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Calvin Cantrell Estrich, 32, of Charlotte, was convicted following a four-day trial before U.S. District Judge Max O. Cogburn, Jr. Estrich was also found guilty of committing health care fraud, making false statement in connection with a health care program, stealing the identities of children and clinicians to commit the fraud, money laundering and making false statements to investigators.
November 25, 2013; U.S. Attorney; Southern District of Texas
Former Durable Medical Equipment Company Owner Sentenced for Defrauding Medicare
HOUSTON - Emeka Daniel Orji, 43, of Richmond, has been sentenced to federal prison and ordered to pay restitution following his conviction for conspiracy to commit and committing health care fraud, announced United States Attorney Kenneth Magidson. Orji pleaded guilty July 29, 2013.
November 22, 2013; U.S. Attorney; Middle District of Tennessee
Prominent Nashville, Tennessee Pediatrician and Former Owner of Centennial Pediatrics Pleads Guilty To Health Care Fraud
NASHVILLE, Tenn. - Dr. Edward "Eddie" Hamilton, 54,of Nashville, Tenn. and former owner of the medical practice of Centennial Pediatrics, P.C., pleaded guilty yesterday in U.S. District Court to a misdemeanor count of health care fraud, announced David Rivera, United States Attorney for the Middle District of Tennessee. The plea comes as part of a global resolution of criminal and civil violations of the False Claims Act.
November 21, 2013; U.S. Attorney; Western District of Tennessee
Arkansas Woman Pleads Guilty To Million-Dollar Health Care Fraud, Money Laundering Scheme
Jackson, TN -Rebecca Christain, 57, of Mountain Home, AR, pleaded guilty on November 20, 2013, to a two-count federal information charging her with one count of health care fraud and one count of money laundering in relation to a Medicare fraud scheme, announced U.S. Attorney Edward L. Stanton III.
November 21, 2013; U.S. Department of Justice
Durable Medical Equipment Clinic Owner Pleads Guilty in Miami for Role in $11 Million Health Care Fraud Scheme
The former owner of a defunct durable medical equipment clinic based in Miami pleaded guilty today for his role in an $11 million Medicare fraud scheme. Francisco Enrique Chavez, 36, of Miami, pleaded guilty before U.S. District Judge Patricia A. Seitz in the Southern District of Florida to one count of health care fraud. He faces a maximum penalty of 10 years in prison when he is sentenced on Feb. 11, 2014.
November 21, 2013; U.S. Department of Justice
Vantage Oncology LLC to Pay More Than $2.08 Million for False Medicare Claims for Radiation Oncology Services
Vantage Oncology LLC (Vantage) has agreed to pay the government more than $2.08 million to settle allegations that it submitted false claims to Medicare for radiation oncology services performed at its Illinois centers from 2007 through June 2012, the Justice Department announced today. Vantage owns and manages radiation oncology centers in multiple states, including two centers in Spring Valley and Streator, Ill.
November 21, 2013; U.S. Attorney; District of New Jersey
Two New York Doctors Admit Taking Bribes in Test-Referrals Scheme with New Jersey Clinical Lab
Newark, N.J. - Two doctors with a practice in New York admitted today to accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC, of Parsippany, N.J., its president and numerous associates, New Jersey U.S. Attorney Paul J. Fishman announced. Richard Goldberg, 60, of Weston, Conn., and Gary Leeds, 60, of Greenwich, Conn., each pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court to one count of accepting bribes.
November 20, 2013; U.S. Attorney; Southern District of Georgia
Federal Jury Convicts Brunswick, Georgia Woman in $4 Million Medicaid Fraud Scheme
Brunswick, GA - Schella Logan Hope, 47, of Brunswick, Georgia, was convicted earlier this month by a federal jury of various health care fraud, aggravated identity theft, and money laundering offenses for her role in a $4 million scheme upon the Georgia Medicaid program. Chief United States District Court Judge Lisa Godbey Wood presided over HOPE's 5-day jury trial.
November 20, 2013; U.S. Attorney; District of New Jersey
Prominent Tri-State Cardiologist Sentenced To 78 Months in Prison for Record, $19 Million Billing Fraud Scheme, Exposing Patients to Unnecessary Medical Treatment
NEWARK, N.J. - A well-known cardiologist and the founder, CEO and sole owner of two large medical services companies in New Jersey and New York was sentenced today to 78 months in prison and ordered to pay $19 million in restitution for conspiring in a multimillion-dollar health care fraud scheme that subjected thousands of patients to unnecessary tests and potentially life-threatening, unneeded treatment, as well as treatment by unlicensed or untrained personnel. The sentence was announced today by New Jersey U.S. Attorney Paul J. Fishman.
November 19, 2013; U.S. Department of Justice
Nursing Home Operator to Pay $48 Million to Resolve Allegations Those Six California Facilities Billed for Unnecessary Therapy
The Ensign Group Inc., a skilled nursing provider based in Mission Viejo, Calif., that operates nursing homes across the western U.S. has agreed to pay $48 million to resolve allegations that it knowingly submitted to Medicare false claims for medically unnecessary rehabilitation therapy services, the Justice Department announced today. Six of Ensign's skilled nursing facilities in California allegedly submitted the false claims: Atlantic Memorial Healthcare Center, located in Long Beach; Panorama Gardens, located in Panorama City; The Orchard Post-Acute Care (a.k.a. Royal Court), located in Whittier; Sea Cliff Healthcare Center, located in Huntington Beach; Southland, located in Norwalk; and Victoria Care Center, located in Ventura.
November 18, 2013; U.S. Attorney; Central District of California
Orange County Ambulance Company Pays More Than $3 Million to Settle Allegations That it Overbilled Federal Health Care Programs
Santa Ana, CA-An Orange County-based ambulance company has paid the United States more than $3 million to settle a lawsuit alleging it received overpayments from the Medicare program and other federal health care programs for transporting patients who were not eligible for ambulance transports, United States Attorney André Birotte, Jr. announced today.
November 18, 2013; U.S. Attorney; Western District of Texas
Baptist Health Systems Settles Federal False Claims Act Civil Lawsuit
Baptist Health Systems, one of the largest health care providers in San Antonio, has paid $3,675,000 to the United States Department of Justice to settle allegations that it violated the federal False Claims Act by filing false claims for reimbursement under the Medicare program United States Attorney Robert Pitman announced today.
November 15, 2013; U.S. Attorney; Western District of Michigan
Staff Pharmacists at Kentwood Pharmacy Sentenced to Stiff Fines on Charges of Misbranding Drugs and Face Exclusion and Debarment from Federal Programs
Grand Rapids, Michigan - James D. Orr, 76, and Eugene A. Biegert, 69, of Grand Rapids, Michigan, and Thomas N. VerHage, 68, of Kentwood, Michigan were sentenced by U.S. District Judge Janet T. Neff to substantial fines following their guilty pleas to charges of the felony misbranding of drugs while working as staff pharmacists at Kentwood Pharmacy. The judge imposed monetary penalties exceeding the fine range recommended by federal sentencing guidelines: a fine of $30,000.00 for VerHage and Orr and $15,000.00 for Biegert.
November 15, 2013; U.S. Attorney; Eastern District of North Carolina
Ambulance Company Owner and Son Plead Guilty to Conspiracy to Commit Health Care and Wire Fraud
Greenville - United States Attorney Thomas G. Walker announced that today before United States District Judge Terrence W. Boyle, Phyllis Stallings Harrell and Paul Lynn Trueblood, both of Belvidere, North Carolina, pleaded guilty to count one of the second superseding indictment that charged them with conspiracy to commit health care fraud and wire fraud, in violation of Title 18, United States Code, Section 1349.
November 14, 2013; U.S. Attorney; Middle District of Louisiana
New Orleans Doctor Sentenced For Involvement in Health Care Fraud Scheme
Baton Rouge, LA - Acting United States Attorney Walt Green announced today that Dr. Anthony Stephen Jase, 44, of New Orleans, Louisiana, was sentenced to 15 months in prison and ordered to pay $360,293 in restitution for his convictions on health care fraud.
November 13, 2013; U.S. Attorney; Western District of New York
Jamaican National Indicted For Fraudulently Receiving Medicaid Benefits
Buffalo, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has returned a four-count indictment charging Georgia Bowen, a/k/a Georgia Bennett, 38, of Lackawanna, N.Y., with health care fraud and aggravated identity theft. The charges carry a maximum sentence of 10 years in prison, a $250,000 fine or both.
November 12, 2013; U.S. Department of Justice
Brooklyn Clinic Owner Sentenced for Role in $77 Million Medicare Fraud Scheme
The owner of a Brooklyn medical clinic was sentenced today to serve 15 years in prison for her leading role in a $77 million Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney for the Eastern District of New York Loretta E. Lynch, Assistant Director in Charge George Venizelos of the FBI's New York Field Office, and Special Agent in Charge Thomas O'Donnell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
November 8, 2013; U.S. Attorney; Southern District of Illinois
Former Washington Park Trustee and St. Clair County Probation Officer Pleads Guilty To Health Care Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on November 8, 2013, Darron A. Suggs, 39, of Washington Park, Illinois, pled guilty to a one-count indictment charging that he engaged in a scheme to commit health care fraud. Sentencing has been set for March 14, 2014, in United States District Court in East St. Louis, Illinois. At that time, Suggs will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
November 8, 2013; U.S. Attorney; Northern District of Illinois
Peru, Ill., Physician Indicted on Federal Charges for Allegedly Illegally Dispensing Prescription Medications
CHICAGO - A LaSalle County physician was taken into federal custody this morning after being indicted on federal charges alleging that he illegally dispensed prescription narcotics to three patients in 2012 and 2013. The defendant, Dr. Constantino Perales, was charged with 17 counts of illegally dispensing Oxycodone and/or Alprazolam in an indictment returned by a federal grand jury on Wednesday and made public today.
November 8, 2013; U.S. Attorney; District of South Dakota
California Woman Indicted For Failure to Pay Child Support
United States Attorney Brendan V. Johnson announced that an Anaheim, California, woman has been indicted by a federal grand jury for Failure to Pay Child Support. Cheryl K. Ernesti, a/k/a Cheryl K. Houska and Cheryl K. Pangan, age 42, was indicted by a federal grand jury on April 2, 2013, for failing to pay over $19,853 in past due child support. She appeared before U.S. Magistrate Judge John E. Simko on November 6, 2013, and pled not guilty to the Indictment.
November 7, 2013; U.S. Attorney; Eastern District of Texas
Beaumont Orthodontist Sentenced for Health Care Fraud Violations
BEAUMONT, Texas - A 70-year-old Beaumont orthodontist has been sentenced to federal prison for health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. Terrence Ewing Syler pleaded guilty on June 18, 2013, to health care fraud and was sentenced to 22 months in federal prison today by U.S. District Judge Thad Heartfield. Syler was also ordered to submit to forfeiture of $829,000 and pay a $6,000 fine
November 7, 2013; U.S. Attorney; Eastern District of California
Glendale Medicare Biller Sentenced to 18 Months in Prison for Role in Sacramento Area Healthcare Fraud
SACRAMENTO, Calif. - Shushanik Martirosyan, 47, of Glendale, Calif., was sentenced today by Chief United States District Judge Morrison C. England Jr. to 18 months in prison for conspiring to commit health care fraud. She pleaded guilty on March 31, 2011, and testified at the May 2011 trial of three doctors involved in the scam. Judge England ordered Martirosyan to pay $1,558,620 in restitution.
November 7, 2013; U.S. Attorney; District of Vermont
Bellows Falls Man Sentenced For Failure to Pay Child Support
The Office of the United States Attorney for the District of Vermont stated today that Lee Godden, 36, of Bellows Falls, Vermont, was sentenced on October 2, 2013, in United States District Court in Brattleboro, Vermont, to serve two-months imprisonment and a one-year term of supervised release following his guilty plea to two counts of failure to pay child support. Senior United States District Judge J. Garvan Murtha also ordered the defendant to pay restitution to his mothers of his two children in the amount of $50,771.00 and $50,131.13, for a total of $100,902.13.
November 7, 2013; U.S. Department of Justice
Detroit-Area Home Health Care Agency Owner Sentenced for Role in $2.2 Million
Medicare Fraud Scheme

The owner of a Detroit-area home health care agency was sentenced today to serve 65 months in prison for her leading role in a $2.2 million Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI's Detroit Field Office, and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations' Detroit Office made the announcement.
November 7, 2013; U.S. Department of Justice
Home Health Agency Owner Sentenced for Role in $13.8 Million Medicare Fraud Scheme
Detroit-area resident Javed Rehman was sentenced to serve 60 months in prison today for his role in a $13.8 million Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI's Detroit Field Office, and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations' Detroit Office made the announcement.
November 7, 2013; U.S. Attorney; Southern District of New York
Former Chief Executive Officer of Hospital for Special Surgery Sentenced In Manhattan Federal Court to 18 Months in Prison for Participating In Fraudulent Kickback Scheme
Preet Bharara, the United States Attorney for the Southern District of New York, announced that John R. Reynolds, the former Chief Executive Officer ("CEO") of the Hospital for Special Surgery (the "Hospital"), was sentenced today in Manhattan federal court to 18 months in prison for participating in a fraudulent scheme in which he was paid nearly $300,000 in undisclosed kickbacks from a subordinate Hospital employee. REYNOLDS pled guilty in July 2013 to one count of wire fraud and one count of making false statements to a law enforcement agent. He was sentenced by U.S. District Judge Harold Baer, Jr.
November 7, 2013; U.S. Attorney; Southern District of Texas
Three Handed Sentences for Lengthy Health Care Fraud Conspiracy
McALLEN, Texas - Two former clinic staffers and a physician assistant's wife have all been ordered to prison for conspiracy to defraud Medicare and the Texas Medicaid program in the operation of the Mission Clinic and La Hacienda Family Clinic, announced United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott.
November 6, 2013; U.S. Attorney; Eastern District of Missouri
Local Doctor Pleads Guilty To Making False Statement to Agent
St. Louis, MO - Dr. Erick Falconer pled guilty to making a false statement to federal agents regarding his purchases of misbranded Botox® from a foreign unlicensed drug wholesaler, some of which had counterfeit exterior packaging.
November 6, 2013; U.S. Attorney; Southern District of New York
Manhattan U.S. Attorney Announces $5 Million Settlement of Civil Forfeiture Claim against Dutchess County Medical Practice
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed, and simultaneously settled, a civil forfeiture lawsuit against the assets of Mid Hudson Medical Group, P.C. The Government's action alleges that MHMG received millions of dollars in proceeds from two schemes to defraud Medicare, the New York State Insurance Fund, and private health insurance providers. The stipulation and order of settlement requires MHMG to forfeit $5 million to the United States.
November 6, 2013; U.S. Department of Justice
Patient Broker of South Florida Psychiatric Hospital Sentenced for Role in $67 Million Health Care Fraud Scheme
A patient broker of a South Florida psychiatric hospital was sentenced today to serve 24 months in prison followed by three years of supervised release for her participation in a $67 million Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office, and Special Agent in Charge Christopher Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations' Miami Office made the announcement.
November 6, 2013; U.S. Department of Justice
Former Mental-Health Clinic Therapist Sentenced for Role in $55 Million Medicare Fraud Scheme
A former therapist for Biscayne Milieu, a Miami-based mental-health clinic, was sentenced today to serve 120 months in prison for his participation in a $55 million Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services' Office of Inspector General (HHS-OIG) Miami office made the announcement.
November 6, 2013; U.S. Attorney; Eastern District of Virginia
Health Care Service Provider and Others Indicted For Medicaid Fraud
NORFOLK, Va. - W. Wayne Perry, Jr., 54, of Suffolk, Va., was indicted by a federal grand jury today on one count of health care fraud, twenty-four counts of false statements relating to health care matters, one count of alteration of records and four counts of aggravated identity theft. Angela Perry, 51, of Suffolk, Va., was indicted on the same charges. Allison Hunter-Evans, 46, of North Chesterfield, Va., was indicted on one count of alteration of records.
November 6, 2013; U.S. Attorney; District of South Dakota
Four Individuals Indicted For Theft of Tribal Funds
United States Attorney Brendan V. Johnson announced that four individuals were indicted by a federal grand jury on October 11, 2013, for stealing funds from the Oglala Sioux Tribe. Samone Darla Milk, a/k/a Samone Darla Long Pumpkin, age 32, of Martin, South Dakota, was indicted for Conspiracy to Commit Theft Concerning Programs Receiving Federal Funds and two counts of Theft Concerning Programs Receiving Federal Funds.
November 5, 2013; U.S. Department of Justice
Orlando, Fla., Area Hospice to Pay $3 Million to Resolve Allegations That It Billed Medicare for Patients Not Terminally Ill
Hospice of the Comforter Inc. (HOTCI) has agreed to pay $3 million to resolve allegations that it violated the False Claims Act by submitting false claims to the Medicare program for hospice services provided to patients who were not eligible for the Medicare hospice benefit, the Justice Department announced today. HOTCI is headquartered in Altamonte Springs, Fla., and provides hospice services to patients residing in Seminole, Osceola and Orange counties in Florida.
November 4, 2013; U.S. Attorney; District of Kansas
Pharmacist Sentenced For Distributing Misbranded Drug for Kidney Dialysis Patients
Topeka, KAN. - A pharmacist has been sentenced to 48 months in federal prison for substituting a cheaper drug imported from China for the iron sucrose that the Federal Drug Administration has approved for kidney dialysis patients, U.S. Attorney Barry Grissom said today. He also was ordered to pay restitution of $848,504 and a $25,000 criminal fine, in addition to forfeiting $425,000 in cash.
November 4, 2013; U.S. Attorney; Northern District of Texas
Woman Convicted at Trial For Role in Nearly $3 Million Health Care Fraud Scheme Involving the Operation of Euless Healthcare Corp. is Sentenced to 72 Months in Federal Prison
DALLAS - Comfort Gates, 48, was sentenced this afternoon, by U.S District Judge David C. Godbey, to 72 months in federal prison and ordered to pay $830,000 in restitution following her conviction at trial in April 2013 on charges stemming from her involvement in the operation of Euless Healthcare Corporation and Medic Healthcare Incorporated. Gates is one six defendants convicted in the conspiracy. Judge Godbey ordered that Gates, a current resident of Houston, surrender to the Bureau of Prisons on January 13, 2014. Today's announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
November 4, 2013; U.S. Department of Justice
Johnson & Johnson to Pay More Than $2.2 Billion to Resolve Criminal and Civil Investigations Allegations Include Off-label Marketing and Kickbacks to Doctors and Pharmacists
WASHINGTON - Global health care giant Johnson & Johnson (J&J) and its subsidiaries will pay more than $2.2 billion to resolve criminal and civil liability arising from allegations relating to the prescription drugs Risperdal, Invega and Natrecor, including promotion for uses not approved as safe and effective by the Food and Drug Administration (FDA) and payment of kickbacks to physicians and to the nation's largest long-term care pharmacy provider. The global resolution is one of the largest health care fraud settlements in U.S. history, including criminal fines and forfeiture totaling $485 million and civil settlements with the federal government and states totaling $1.72 billion.
November 4, 2013; U.S. Attorney; Middle District of Florida
Two Plead Guilty In Connection With Sunshine Pharmacy Health Care Fraud Scheme
Fort Myers, Florida - Acting United States Attorney A. Lee Bentley, III announces that Delmer Holmes Parrish (44) and Patricia Parrish (74), both of Naples, today pleaded guilty to conspiracy to commit health care fraud. Delmer Holmes Parrish, a licensed pharmacist, and Patricia Parrish each face a maximum penalty of ten years in federal prison. In addition, they have agreed to pay restitution to the United States in the amount of $351,358.14. As part of the agreement, Delmer Holmes Parrish has also agreed to voluntarily relinquish his pharmacist license to the State of Florida. A sentencing date has not yet been set.
November 4, 2013; U.S. Attorney; Southern District of Illinois
Ramsey Man Pleads Guilty To Health Care Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 31, 2013, William Dale Sidener, 31, of Ramsey, Illinois, pled guilty to a one-count indictment charging that he engaged in a scheme to commit health care fraud. Sentencing has been set for March 7, 2014, in United States District Court in East St. Louis, Illinois. Sidener will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
November 1, 2013; U.S. Department of Justice
Owner and Marketer of Louisiana Medical Equipment Supply Company Indicted for Roles in $3 Million Medicare Fraud Scheme
The owner of a Louisiana medical equipment supply company and a marketer who worked for the company have been indicted for allegedly engaging in a $3 million Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, Special Agent in Charge Mike Fields of the Dallas Region of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), and Special Agent in Charge Michael Anderson of the FBI's New Orleans Division made the announcement.
November 1, 2013; U.S. Attorney; Southern District of New York
Dutchess County Orthopedic Surgeon Pleads Guilty To Multimillion Dollar Health Care Fraud Scheme
Preet Bharara, the United States Attorney for the Southern District of New York, announced that Dr. Spyros Panos, an orthopedic surgeon, pled guilty today in White Plains federal court before U.S. District Judge Nelson S. Roman to operating a long-running health care fraud scheme in which Panos defrauded Medicare, the New York State Insurance Fund, and numerous private health insurance providers out of over $2.5 million by systematically lying about the nature and scope of the surgical procedures that he performed.

October 2013

October 31, 2013; U.S. Department of Justice
Owner of Texas-based Ambulance Service Convicted of Health Care Fraud
A federal jury in Houston has convicted Gwendolyn Climmons-Johnson, 53, of multiple counts of health care fraud for submitting false and fraudulent claims to Medicare for ambulance services.
October 30, 2013; U.S. Department of Justice
Former Veterans Affairs Psychiatrist Pleads Guilty to Medicare Fraud
Dr. Mikhail L. Presman, a licensed psychiatrist employed by the Department of Veterans Affairs (VA), pleaded guilty today to health care fraud for falsely billing Medicare for home medical treatment to Medicare beneficiaries and agreed to forfeit more than $1.2 million in illegal profits.
October 30, 2013; U.S. Attorney; Western District of Oklahoma
Owner of St. Anthony Hospital Agrees to Pay $475,000 to Settle Civil Claims of Improper Billing for Inpatient Services That Should Have Been Outpatient
Oklahoma City, Oklahoma -- SSM Health Care of Oklahoma, Inc. ("SSM"), who owns and operates St. Anthony Hospital in Oklahoma City, Oklahoma, has agreed to pay $475,000 to the United States to settle civil claims relating to SSM's billing Medicare for inpatient services that should have been billed as outpatient services, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
October 30, 2013; U.S. Attorney; Southern District of New York
Thirteen Members Of Pharmacy Burglary Ring Charged With Stealing And Distributing Millions Of Dollars' Worth Of Prescription-Controlled Substances And Hundreds Of Thousands Of Dollars In Cash
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation ("FBI"), and Raymond W. Kelly, the Commissioner of the New York City Police Department ("NYPD") announced today the unsealing of charges against 13 members of a burglary ring (the "Burglary Ring") alleged to be responsible for more than 125 burglaries and attempted burglaries of pharmacies in Manhattan, the Bronx, Queens, and Brooklyn since 2010.
October 30, 2013; U.S. Attorney; Western District of Oklahoma
Oklahoma City Psychiatrist to Serve 30 Months in Federal Prison and Pay $20,000 Fine for Health
Care Fraud

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

CORPUS CHRISTI - A Corpus Christi-area physician has been charged in a 14-count indictment for a scheme to defraud Medicare and Medicaid through fraudulent billings, according to Texas Attorney General Greg Abbott, U.S. Attorney Kenneth Magidson, the FBI and Health and the Human Services Office of Inspector General.
October 2, 2013; Ohio Attorney General
Former Pharmacist Pleads Guilty to Health Care Fraud, Drug Adulteration Charges
Coshocton, Ohio - Ohio Attorney General Mike DeWine announced today that a former Coshocton pharmacist has pleaded guilty to federal charges alleging that she took between $1 million and $2.5 million from state, federal, and private medical insurance companies through fraudulent billing practices.

September 2013

September 30, 2013; U.S. Department of Justice
Former Owner of Los Angeles Medical Equipment Supply Company Indicted in $4 Million Medicare Fraud Scheme
A former owner of a Los Angeles medical equipment supply company has been indicted for allegedly engaging in a $4 million Medicare fraud scheme. Valery Bogomolny, 41, of Los Angeles, Calif., was indicted in the Central District of California on six counts of health care fraud, each of which carries a maximum penalty of 10 years in prison upon conviction. Bogomolny was taken into custody on Sept. 27, 2013, and the indictment was unsealed following his initial appearance in federal court that afternoon.
September 30, 2013; U.S. Department of Justice
Former Owner of Los Angeles Medical Clinic Management Company Indicted in $13 Million Medicare Fraud Scheme
The former owner of a Los Angeles medical clinic management company has been indicted for his role in a $13 million scheme to defraud Medicare. Mikran "Mike" Meguerian, 36, of Glendale, Calif., was indicted in the Central District of California on one count of conspiracy to commit health care fraud and five counts of health care fraud, each of which carries a maximum penalty of 10 years in prison upon conviction. Meguerian was arrested on Sept. 26, 2013, and the indictment was unsealed following his initial appearance in federal court on Sept. 27, 2013.
September 30, 2013; U.S. Attorney; Southern District of Florida
Miami Physician Indicted in Medicare Fraud Scheme
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that a federal grand jury indicted defendant Christopher Gregory Wayne, 53, of Miami Beach, an osteopathic physician residing in Miami, for health care fraud. Wayne was arrested today and made his initial appearance at 2:00 p.m. before U.S. Magistrate Judge Barry L. Garber.
September 27, 2013; U.S. Attorney; Central District of California
Burbank-based Diagnostic Labs Agrees to Pay $17.5 Million to Resolve Illegal Kickback Allegations
LOS ANGELES - Kan-Di-Ki, LLC, doing business as Diagnostic Laboratories and Radiology (Diagnostic Labs), has agreed to pay $17.5 million to resolve allegations that it submitted false claims to Medicare and Medi-Cal (the State of California's Medicaid program) that were tainted by a kickback scheme.
September 27, 2013; U.S. Department of Justice
Two Miami-area Residents Indicted for Alleged Roles in $190 Million Medicare Fraud Scheme
Two Miami-area residents were indicted in connection with their alleged participation in a $190 million Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the HHS Office of Inspector General Office of Investigations Miami Office made the announcement after the indictment was unsealed.
September 27, 2013; U.S. Attorney; Eastern District of Tennessee
Cleveland Doctor Indicted For Fraud and Money Laundering
CHATTANOOGA, Tenn. - On Sept. 24, 2013, a federal grand jury in Chattanooga returned a 35-count indictment against Dr. Raymond Sean Brown, 44, of McDonald, Tenn., for wire fraud, mail fraud, health care fraud and money laundering. Brown's initial appearance and arraignment is scheduled for 2:00 p.m., Oct. 1, 2013, before U.S. Magistrate Judge Susan K. Lee, U.S. District Court, Chattanooga.
September 27 , 2013; U.S. Attorney; District of Maryland
Career Criminal Lenny Cain Sentenced to Over 13 Years in Prison in Oxycodone Conspiracy
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Lenny Cain, age 36, of Baltimore, Maryland, late yesterday to 160 months in prison followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute oxycodone, and for possession with intent to distribute oxycodone. Cain previously has been convicted of handgun crimes, cocaine distribution, assault, conspiracy and identity fraud.
September 27, 2013; U.S. Attorney; Southern District of Illinois
Collinsville Woman Pleads Guilty to Drug and Health Care Offenses
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 26, 2013, Julia Clymer, 48, of Collinsville, IL, pled guilty to a two-count information charging in count one that she engaged in a scheme to commit health care fraud and in count two that she had obtained controlled substances, including hydrocodone, through fraud and misrepresentation.
September 27, 2013; U.S. Attorney; Southern District of Illinois
East St. Louis Woman Pleads Guilty to Health Care Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 26, 2013, Sherri Goree, 36, of East St. Louis, IL, pled guilty to a one-count indictment charging that she engaged in a scheme to commit health care fraud. At her sentencing, Goree will face up to 10 years in prison, a fine of up to $250,000 and up to 3 years of supervised release.
September 26, 2013; U.S. Department of Justice
Medical Clinic Owners and Patient Recruiters Charged in Miami for Role in $8 Million Health Care Fraud Scheme
Several patient recruiters, including two medical clinic owners, have been arrested in connection with a health care fraud scheme involving defunct home health care company Flores Home Health Care Inc. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office; and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
September 26, 2013; U.S. Department of Justice
Miami Home Health Company Recruiter Pleads Guilty in $48 Million Health Care Fraud Scheme
A patient recruiter of a Miami health care company pleaded guilty today for his participation in a $48 million home health Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office; and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
September 25, 2013; U.S. Attorney; Central District of California
Second Highest Chiropractic Medicare Biller in California Pleads Guilty to Health Care Fraud
LOS ANGELES - A San Fernando Valley chiropractor, who was the second highest Medicare biller in California for chiropractic services, pled guilty yesterday to healthcare fraud in violation of 18 U.S.C. § 1347. Between 2005 and 2012, Houshang Pavehzadeh aka "Danny Paveh" (41), owner of Sylmar Physician Medical Group, Inc. - a storefront chiropractic clinic located in a strip mall - defrauded Medicare by billing for patients he never treated.
September 25, 2013; U.S. Attorney; District of South Dakota
Florida Man Indicted For Failure to Pay Child Support
United States Attorney Brendan V. Johnson announced that a Lakeland, Florida, man has been indicted by a federal grand jury for Failure to Pay Child Support. Jaime L. Warrenburg, age 31, was indicted on March 6, 2013, for failing to pay over $23,273.00 in past due child support. He appeared before U.S. Magistrate Judge John E. Simko on September 23, 2013, and pled not guilty to the Indictment.
September 25, 2013; U.S. Department of Justice
Five Miami Residents Arrested for Alleged Roles in $48 Million Home Health Care Fraud Scheme
Five Miami residents have been charged for their alleged roles in a $48 million home health Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office; and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement after the case was unsealed following the defendants' arrests this morning.
September 25, 2013; U.S. Department of Justice
California Mobile Lab and X-ray Provider, Diagnostic Laboratories and Radiology, to Pay $17.5 Million for Falsely Billing Medicare and Medi-CAL
Kan-Di-Ki LLC, formerly known as Kan-Di-Ki Inc., doing business as Diagnostic Laboratories and Radiology (Diagnostic Labs), will pay $17.5 million to settle allegations that the California-based company violated the federal and California False Claims Acts by paying kickbacks for referral of mobile lab and radiology services subsequently billed to Medicare and Medi-Cal (the state of California's Medicaid program), the Justice Department announced today.
September 25, 2013; U.S. Attorney; Eastern District of Pennsylvania
Superior Ambulance and Owners Charged in Multi-Million Dollar Health Care Fraud Scheme
Philadelphia - An indictment was unsealed today charging Superior EMS Ambulance Company, operating from Huntingdon Valley, PA, its owner, Beana Bell, 31, and operator Vadim Fleshler, 32, both of Philadelphia, with conspiracy to commit health care fraud. According to the indictment, the case involves a scheme in which the defendants submitted more than $4.4 million in fraudulent claims to Medicare. The defendants were also charged with making false statements in connection with health care matters. The indictment was announced by United States Attorney Zane David Memeger, Special Agent-in-Charge Nick DiGiulio with Health and Human Services Office of Inspector General and FBI Special Agent-in-Charge Ed Hanko.
September 24, 2013; U.S. Attorney; Eastern District of Pennsylvania
Doctor Sentenced for Running Pill Mill and Contributing to a Death
Dr. Norman Werther, 73, of Fort Washington, formerly of Horsham, was sentenced Sept. 24 to 25 years in prison for distribution of a controlled substance resulting in death and more than 300 counts stemming from his pill mill operation, according to the U.S. Attorney's Office.
September 24, 2013; U.S. Attorney; District of Kansas
Hays Woman Pleads Guilty To Social Security, Medicaid Fraud
TOPEKA, KAN. - A woman from Hays, Kan., has pleaded guilty to stealing more than $104,000 in government funds from Social Security and Medicaid, U.S. Attorney Barry Grissom said today. Earlyne C. Weigel, 57, Hays, Kan., pleaded guilty to one count of theft of government money.
September 20, 2013; U.S. Attorney; District of Massachusetts
Natick Man and Revere Woman Indicted for $27 Million Home Health Care Fraud Scheme
BOSTON - A Natick man and a Revere woman were charged today for orchestrating a $27 million home health care fraud scheme. Michael Galatis, 62, was indicted on charges of conspiracy to commit health care fraud, 11 counts of health care fraud, and seven counts of money laundering. Janie Troisi, 64, was indicted on charges of conspiracy to commit health care fraud and 11 counts of health care fraud.
September 20, 2013; U.S. Attorney; Southern District of Illinois
Centreville Woman Pleads Guilty To Health Care Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 20, 2013, Valerie W. Johnson, 56, of Centreville, Illinois, pled guilty to a one-count indictment charging that she engaged in a scheme to commit health care fraud. Sentencing has been set for January 9, 2014, in United States District Court in East St. Louis, Illinois. Johnson will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
September 18, 2013; U.S. Attorney; Central District of California
Owner of Home Health Agency that Defrauded Medicare Ordered to Pay $14.9 Million - Three Times the Losses Caused by Scheme
Los Angeles - A federal judge has ordered the owner of a home health agency that operated in the Westlake District of Los Angeles to pay nearly $15 million - or approximately three times the losses suffered by Medicare as a result of the company's illegal practices.
September 18, 2013; U.S. Attorney; Eastern District of Michigan
Oncologist Charged in Superseding Indictment with Medically Unnecessary Cancer Treatments
Scheme

Dr. Farid Fata was charged in a superseding indictment in the Eastern District of Michigan for a health care fraud scheme involving the administration of medically unnecessary drugs, including chemotherapy, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS). The superseding indictment adds eleven additional health care fraud counts, a count of conspiracy to receive and pay kickbacks as well as one count of naturalization fraud. Criminal forfeitures are also sought in the indictment.
September 18, 2013; U.S. Attorney; Middle District of Florida
Ocala Woman Sentenced To Federal Prison for Medicaid Fraud
Tampa, FL - U.S. District Judge James S. Moody, Jr. today sentenced Tiffany McIntyre (34, Ocala) to three years in federal prison for committing health care fraud and aggravated identity theft. As part of her sentence, the court ordered restitution and entered a money judgment in the amount of $128,051.76, the proceeds of the health care fraud. McIntyre pleaded guilty on June 3, 2013.
September 17, 2013; U.S. Attorney; Western District of Oklahoma
Licensed Counselor Pleads Guilty to Health Care Fraud
Oklahoma City, Oklahoma - Leann Richardson, 48, of Edmond, Oklahoma, pled guilty today to health care fraud in connection with a scheme to bill Medicaid for behavioral counseling services never provided, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. The Medicaid Program provides federal and state funds to pay for health care benefits for individuals who cannot afford necessary medical expenses.
September 17, 2013; U.S. Attorney; District of Kansas
Hospital Settles Federal Allegations Of Medicare False Claims
WICHITA, KAN.- Hutchinson Regional Medical Center, Inc., (formerly known as Promise Regional Medical Center - Hutchinson, Inc.) has agreed to pay $853,651 to the United States to settle allegations that the hospital submitted false claims to the Medicare program, U.S. Attorney Barry Grissom announced today. This payment is in addition to amounts the hospital previously refunded to the Medicare program for the claimed services. The payments to the United States total over $1.7 million.
September 17, 2013; Western District of Pennsylvania
Sewickley Woman Charged with Health Care Fraud
PITTSBURGH, Pa. - A Sewickley resident has been indicted by a federal grand jury in Pittsburgh on charges of health care fraud, United States Attorney David J. Hickton announced today. The one count indictment named Mary Monica Wilson-Lefler, 62, as the defendant. According to the indictment, Wilson was a salesperson who offered two durable medical equipment companies in the Pittsburgh area a business arrangement involving special air mattresses, known as powered pressure reducing mattresses or PPRAMS.
September 16, 2013; U.S. Department of Justice
"No Show" Doctor Sentenced to 151 Months in Prison in Connection with $77 Million Medicare Fraud Scheme
Gustave Drivas, M.D., 58, of Staten Island, N.Y., was sentenced to serve 151 months in prison for his role as a "no show" doctor in a $77 million Medicare fraud scheme. The State of New York revoked Dr. Drivas's medical license earlier this year.
September 13, 2013; U.S. Department of Justice
Florida Doctors, Hospitals and Clinics to Pay $3.5 Million to Settle Allegations of Improper Medicare, Medicaid and TRICARE Billing
Radiation oncology providers in Pensacola, Fla., will pay $3.5 million to the government and the state of Florida to resolve allegations that they billed Medicare, Medicaid and TRICARE - the health care program for uniformed service members, retirees and their families worldwide - for radiation oncology services that were not eligible for payment, the Justice Department announced today. The defendants include Gulf Region Radiation Oncology Centers Inc. (GRROC), Gulf Region Radiation Oncology MSO LLC, Sacred Heart Health System Inc., West Florida Medical Center Clinic P.A., Emerald Coast Radiation Oncology Center LLC (ECROC), Dr. Gerald Lowrey and Dr. Rod Krentel.
September 12, 2013; U.S. Attorney; Northern District of Texas
Physician-Owned Hospital Agrees to Resolve its Civil and Criminal Liability for Benefiting from Illegal Kickbacks to Physicians
DALLAS - Forest Park Medical Center, LLC (FPMC), a North Texas physician-owned hospital, paid over $258,000 to settle allegations that it violated the civil False Claims Act, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. The United States contends that a FPMC representative paid illegal kickbacks to area physicians to obtain referrals for Tricare patients, a federally funded health care program, in violation of the federal law, between 2008 and 2012. Based on the same allegations, FPMC entered into a Non-Prosecution Agreement with the United States and agreed to certain conditions, as well as a federally imposed monitor for not more than 24 months. FPMC fully cooperated with the investigation, and by settling civilly and criminally, did not admit any wrong-doing or liability.
September 12, 2013; U.S. Department of Justice
Mastermind of $11 Million Detroit Medicare Fraud Scheme Sentenced to 50 Months in Prison
Muhammad Shahab, the mastermind of an almost $11 million Medicare fraud scheme in Detroit, was sentenced today to 50 months in prison. Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI's Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
September 12, 2013; U.S. Attorney; Northern District of Ohio
Salem Pharmacist Charged with Health Care Fraud
A one-count criminal information was filed charging a Salem, Ohio, pharmacist with health care fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. Bruce E. Franken, 52, was excluded in 2003 from participating in all federal health care programs, including Medicare and Medicaid, for a minimum of 10 years as a result of his felony conviction, according to the information.
September 11, 2013; U.S. Attorney; District of New Jersey
Two Doctors and a Salesman Admit Roles in Bribes-For-Test Referrals Scheme Involving New Jersey Clinical Laboratory
NEWARK, N.J. - Two New Jersey doctors and a company salesman pleaded guilty today to their roles in a long-running bribes-for-test referrals scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president, and numerous associates, U.S. Attorney Paul J. Fishman announced.
September 11, 2013; U.S. Attorney; District of Massachusetts
Holyoke Woman Sentenced for Defrauding MassHealth
BOSTON - A Holyoke resident was sentenced in U.S. District Court in Springfield for defrauding MassHealth, by billing for personal care attendant services that were never provided. U.S. District Judge Michael A. Ponsor sentenced Miosottis Gonzalez, 25, to two years of probation and ordered her to pay $64,000 in restitution. In April, Gonzalez pleaded guilty to conspiracy to commit health care fraud.
September 11, 2013; U.S. Attorney; Southern District of Illinois
Alton Woman Pleads Guilty To Health Care Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 11, 2013, Roslyn James, 46, of Alton, IL, pled guilty to a one-count indictment charging that she engaged in a scheme to commit health care fraud. At her sentencing James will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release. Sentencing has been set for January 10, 2014, at 11:00 a.m. in United States District Court in East St. Louis, Illinois.
September 10, 2013; U.S. Attorney; Southern District of Illinois
Cahokia Illinois Woman Pleads Guilty To Health Care Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 10, 2013, Lisa C. Luckett, 50, of Cahokia, IL, pled guilty to a two-count indictment charging that she engaged in a scheme to commit health care fraud. At her sentencing Luckett will face up to 20 years in prison, a fine of up to $500,000, and up to 3 years of supervised release. Sentencing has been set for January 17, 2014, at 9:00 a.m. in United States District Court in East St. Louis, Illinois.
September 10, 2013; U.S. Department of Justice
Medical Supply Company Officer and Southern California Physician Sentenced for $1.5 Million Medicare Fraud
A former officer of Fendih Medical Supply Inc. was sentenced to serve 51 months in prison yesterday in Los Angeles for his role in a fraud scheme that resulted in $1.5 million in fraudulent claims to Medicare. In addition, a physician was sentenced to 27 months in prison for his role in the scheme.
September 10, 2013; U.S. Department of Justice
Three Executives of South Florida Psychiatric Hospital Sentenced in $67 Million Health Care Fraud Scheme
WASHINGTON - Three executives of Hollywood Pavilion LLC (HP), an inpatient psychiatric hospital located in Broward County, Fla., were sentenced today for their roles in a $67 million Medicare fraud scheme.
September 10, 2013; U.S. Attorney; District of Connecticut
Brookfield Podiatrist Sentenced To 41 Months in Federal Prison for Defrauding Medicare
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that Samir Zaky, 38, of Brookfield, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 41 months of imprisonment, followed by one year of supervised release, for defrauding Medicare.
September 6, 2013; U.S. Department of Justice
Brooklyn Resident Pleads Guilty in Connection with $13 Million Kickback and Health Care Fraud Scheme
A Brooklyn, N.Y., resident pleaded guilty today for his role as a patient recruiter in a $13 million kickback and health care fraud scheme, the fourth defendant to plead guilty in the scheme based at the Cropsey Medical Care PLLC clinic in Brooklyn.
September 5, 2013; U.S. Attorney; District of Maine
Portland Man Sentenced to Two Months in Jail for Stealing $46,585 in Welfare Benefits
Portland, Maine: United States Attorney Thomas E. Delahanty II announced today that Dafle Abdullahi Ali, age 46, of Portland, Maine, was sentenced in U.S. District Court in Portland by Judge D. Brock Hornby to 2 months in jail and 2 years of supervised release for making false statements to obtain Medicaid and food stamps benefits and theft of federal housing assistance funds. Ali pled guilty to these charges on May 2, 2013.
September 5, 2013; U.S. Attorney; Middle District of Louisiana
Sentencing In Health Care Fraud Case
BATON ROUGE, LA - Acting United States Attorney Walt Green announced that Sonya Lewis Williams, 47, of Baton Rouge, Louisiana, was sentenced to 37months for her convictions on counts of health care fraud and money laundering.
September 5, 2013; U.S. Attorney; Northern District of Texas
Owner of Home Health Care Company Sentenced to 10 Years in Federal Prison for Role in Health Care Fraud Conspiracy
DALLAS - Cyprian Akamnonu, 64, of Cedar Hill, Texas, was sentenced this morning by U.S. District Judge Sam A. Lindsay to the statutory maximum of 10 years in federal prison and ordered to pay $25,466,779 in restitution, following his guilty plea in October 2012 to one count of conspiracy to commit health care fraud.
September 5, 2013; U.S. Attorney; Eastern District of Louisiana
Siranush Tulumdzhyan and LA Medical Group, Inc. Sentenced For Conspiracy to Commit Health Care Fraud Violations
Siranush Tulumdzhyan, age 28, of Van Nuys, CA, was sentenced today by U.S. District Court Judge Eldon Fallon for her role in a health care fraud scheme, announced U.S. Attorney Dana J. Boente. TULUMDZHYAN was sentenced to 3 years probation with 6 months in a half-way house. Tulumdzhyan was ordered to pay restitution to Medicaid in the total amount of $31,589.
September 5, 2013; U.S. Department of Justice
Owners of Home Health Companies and Patient Recruiter Plead Guilty in Miami for Role in $20 Million Health Care Fraud Scheme
The owners and operators of several Miami home health care agencies and a patient recruiter pleaded guilty today in connection with a health care fraud scheme involving defunct home health care company Trust Care Health Services Inc.
September 5, 2013; U.S. Attorney; Southern District of Texas
Jury Convicts Bryan Woman in Health Care Fraud Conspiracy
Houston - Yolanda Nowlin, 42, has been convicted of conspiracy to commit health care fraud, four counts of health care fraud, conspiracy to commit kickback fraud and aiding and abetting Social Security fraud, United States Attorney Kenneth Magidson announced today. The verdicts were returned late yesterday afternoon following seven days of trial and less than three hours of deliberations.
September 4, 2013; U.S. Department of Justice
Two Patient Recruiters of Miami Home Health Company Plead Guilty in $48 Million Health Care Fraud Scheme
Two patient recruiters of a Miami health care company pleaded guilty late yesterday for their participation in a $48 million home health Medicare fraud scheme.
September 4, 2013; U.S. Attorney, Eastern District of Pennsylvania
Ambulance Company Owners Sentenced to Prison for Health Care Fraud Scheme
PHILADELPHIA - Aleksandr N. Zagorodony, 39, of Southampton, PA, was sentenced today to 78 months in prison for a healthcare fraud scheme involving MedEx Ambulance, Inc., located in Feasterville, PA. Zagorodny was the President and a founder of MedEx Ambulance. His 36 year-old brother, Sergey Zagorodny, from Philadelphia, PA, the former Vice-president and co-owner of the company, was sentenced to 60 months in prison for his involvement in the health care fraud scheme. MedEx Ambulance was ordered to be dissolved after it has been excluded from participation in Medicare and its assets are transferred to the government to satisfy restitution and forfeiture obligations. Each defendant had pleaded guilty to all counts in a 41-count indictment including health care fraud, false statements in connection with health care matters, wire fraud, and conspiracy to commit health care fraud and wire fraud.
September 4, 2013; U.S. Attorney, Southern District of Texas
Two Area Women Convicted in Home Health Services Conspiracy
CORPUS CHRISTI, Texas - Sylvia Salinas Ramirez, of Driscoll, and Debra Jean Velasquez, of Robstown, have been convicted of wire fraud and conspiring to do so as part of a scheme to defraud the Texas Medicaid program through fraudulent home health billings, United States Attorney Kenneth Magidson announced today along with Texas Attorney General Greg Abbott.
September 3, 2013; U.S. Attorney; District of South Dakota
Sioux Falls Man Sentenced For Failure to Pay Child Support
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man, formerly of Hot Springs, Arkansas, was sentenced on August 29, 2013, by U.S. District Court Judge Karen E. Schreier for Failure to Pay Child Support.

August 2013

August 30, 2013; U.S. Department of Justice
Former Office Manager for Health Care Solutions Network Sentenced in $63 Million Medicare Fraud
WASHINGTON-A former office manager at the defunct health care provider Health Care Solutions Network Inc. was sentenced today in Miami to serve 68 months in prison for her role in a fraud scheme that resulted in more than $63 million in fraudulent claims to Medicare and Florida Medicaid.
August 30, 2013; U.S. Attorney; District of Hawaii
Community Hospital Pays $451,428.00 to Resolve Allegation of Improper Claims
HONOLULU - Wahiawa General Hospital ("WGH") of Honolulu, Hawaii, shall pay $451,428.00 to settle two lawsuits alleging that WGH improperly billed the Medicare program, the State of Hawaii Medicaid program, and TRICARE, the federal health benefits program for military dependents. The settlement grew out of civil "whistleblower" lawsuits brought under the federal and State of Hawaii False Claims Acts in federal and state court by a doctor who had worked at the Physicians Center at Mililani ("PCM"), an out-patient clinic operated by WGH. The doctor alleged that WGH had submitted bills to Medicare and Medicaid programs for services provided by resident doctors without the level of supervision required by federal law. The federal and state governments initiated an investigation based upon the doctor's allegations.
August 28, 2013; U.S. Attorney; District of New Mexico
Former Non-Native Employee of Indian Health Services Pleads Guilty to Fraudulent Acquisition of Controlled Substances
Albuquerque - Jason Lucas, 30, of Albuquerque, N.M., pleaded guilty this morning to the acquisition of a controlled substance through fraud and deception under a plea agreement with the U.S. Attorney's Office. Lucas was indicted in Jan. 2013, and charged with five counts of acquiring controlled substances through fraud and deception and three counts of defrauding a health care benefit program by having the program pay for fraudulently acquired controlled substances.
August 28, 2013; U.S. Attorney; Northern District of Georgia
Emory University to Pay $1.5 Million to Settle False Claims Act Investigation
ATLANTA - The United States Attorney's Office for the Northern District of Georgia and Attorney General Sam Olens announced today they have reached a settlement with Emory University, which agreed to pay $1.5 million to settle claims that it violated the False Claims Act by billing Medicare and Medicaid for clinical trial services that were not permitted by the Medicare and Medicaid rules.
August 28, 2013; U.S. Attorney; Middle District of North Carolina
Alamance County Residents Sentenced For Health Care Fraud
Greensboro, N.C. - United States Attorney Ripley Rand of the Middle District of North Carolina announced today that two Alamance County residents have been sentenced to prison for defrauding the Medicaid program. Evelyn Fuller, 61, and Michael McLean, 57, were sentenced by United States District Judge Catherine Eagles in federal court in Greensboro, North Carolina, on Tuesday, August 27, 2013. FULLER was sentenced to 26 months imprisonment. Her co-defendant, McLean, was sentenced to 36 months imprisonment. Fuller and McLean were also ordered to pay restitution to the Medicaid program in the amount of $399,811.44. Both Fuller and Mclean will serve three years of supervised release after serving their prison sentences.
August 27, 2013; U.S. Department of Justice
MRI Diagnostic Testing Company, Imagimed LLC, and Its Former Owners and Chief Radiologist to Pay $3.57 Million to Resolve False Claims Act Allegations
New York-based Imagimed LLC, the company's former owners, William B. Wolf III and Dr. Timothy J. Greenan, and the company's former chief radiologist, Dr. Steven Winter, will pay $3.57 million to resolve allegations that they submitted to federal healthcare programs false claims for magnetic resonance imaging (MRI) services, the Justice Department announced today. Imagimed owns and operates fifteen MRI facilities, located primarily in New York state, under the name "Open MRI."
August 27, 2013; U.S. Attorney; Northern District of Illinois
Mobile Doctors' Chicago CEO and Doctor Arrested on Federal Health Care Fraud Charges; Offices Searched in Three Cities
CHICAGO - The chief executive officer of Chicago-based Mobile Doctors, which manages physicians who make house calls in six states, and one of its physicians in Chicago were arrested today on federal health care fraud charges. At the same time, federal agents executed search warrants at Mobile Doctors' offices in Chicago, Detroit, and Indianapolis, as well as warrants to seize up to $2.568 million in alleged fraud proceeds from various bank accounts. The charges allege a scheme to fraudulently increase (also known as "upcoding") Medicare bills for in-home patient visits that Mobile Doctors falsely claimed were more complicated and longer than they actually were. The charges also allege that Mobile Doctors' physicians falsely certified that patients were confined to their homes, enabling home health care agencies to claim fees for additional services for patients who were not actually qualified to receive them.
August 27, 2013; U.S. Attorney; Northern District of Texas
Abilene, Texas, Dentist Pleads Guilty in Medicaid Fraud Scheme
ABILENE, Texas - A dentist who practiced pediatric dentistry at Kool Smiles in Abilene, Texas, has admitted that he made false and fraudulent statements and entries on patient records, which caused Medicaid to be billed for, and pay, at least $120,000 for services falsely claimed to have been performed, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
August 26, 2013; U.S. Attorney; District of Colorado
Craig Doctor Arrested For Prescribing Drugs Resulting In Patient Deaths and Heath Care
Fraud Scheme

DENVER - Joel E. Miller, age 55, of Craig, Colorado, was arrested without incident today on charges of health care fraud, money laundering and distributing/dispensing controlled substances, federal and state authorities announced.
August 26, 2013; U.S. Department of Justice
Former Owner of Los Angeles Medical Equipment Supply Company Pleads Guilty to $2.6 Million Medicare Fraud Scheme
A former owner of a Los Angeles-area medical equipment supply company pleaded guilty today to a $2.6 million Medicare fraud scheme. .Akinola Afolabi, 54, of Long Beach, Calif., pleaded guilty before U.S. District Judge Philip S. Gutierrez in the Central District of California to one count of health care fraud.
August 26, 2013; U.S. Attorney; Central District of California
Los Angeles Man Who Recruited 'Patients' from Los Angeles' 'Skid Row' as Part of $10 Million Health Care Scam Sentenced to Federal Prison
LOS ANGELES-A Los Angeles man who recruited homeless people from the "Skid Row" section of Los Angeles as part of a widespread scheme to defraud Medicare and Medi-Cal by providing unnecessary health services was sentenced this morning to 18 months in federal prison.
August 23, 2013; U.S. Attorney; Eastern District of Pennsylvania
California Man Sentenced For Running Fraudulent Clinic
Philadelphia - George Baginyan, 33, of Glendale, California, was sentenced to two years in prison for operating a fraudulent clinic and defrauding Medicare. Baginyan was the owner of New Era Health Center Inc. ("New Era"), a purported clinic that was located near the Einstein Medical Center in Philadelphia. Between December 2008 and October 2009, Baginyan used the National Provider Identification number (NPI) of an elderly and frail doctor of osteopathy to bill Medicare for medical services and tests, making it appear that the doctor had provided those services and tests when he had not.
August 22, 2013; U.S. Attorney; District of Maryland
Hagerstown Pharmacist Sentenced To 30 Months in Prison for Health Care Fraud for Improperly Billing Medicare and Medicaid
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced David Russo, age 62, of Hagerstown, Maryland today to 30 months in prison, followed by one year of supervised release, for health care fraud in connection with a scheme to defraud Medicare and Medicaid by billing for prescriptions that Russo knew were not written for a legitimate medical purpose.
August 21, 2013; U.S. Department of Justice
Therapy Staffing Company Owner and Patient Recruiter Plead Guilty in $7 Million Health Care Fraud Scheme
A patient recruiter and a therapy staffing company owner pleaded guilty today in connection with a $7 million health care fraud scheme involving the now defunct home health care company Anna Nursing Services Corp.
August 21, 2013; U.S. Department of Justice
Long Island Physician to Pay U.S. $388,000 to Settle False Claims Act Allegations Related to Overbilling Medicare
WASHINGTON - Richard S. Obedian, a Long Island, N.Y., orthopedic surgeon, will pay the government $388,000 to settle allegations that he violated the False Claims Act by submitting false claims to Medicare for minimally invasive spine procedures, the Justice Department announced today.
August 20, 2103; U.S. Attorney; Eastern District of New York
Bostwick Laboratories, Inc. Pays $503,668 to Resolve Civil Fraud Allegations That Its Sales Representatives Used a Clinical Study to Induce Physicians to Utilize Its Services
Bostwick Laboratories, Inc. ("Bostwick") has entered into a civil settlement agreement in which it agreed to pay the United States $503,668.00 to resolve allegations that the company made illegal payments to induce certain physicians to utilize Bostwick's laboratory testing services - some of which were not medically necessary under the circumstances.
August 19, 2013; U.S. Attorney; Southern District of California
Physician Sentenced to Prison in $1 Million Power Wheelchair Scam
United States Attorney Laura E. Duffy announced that Irving J. Schwartz, M.D. was sentenced today to five months in prison, followed by five months in a halfway house, for his involvement in a scheme to defraud the Medicare trust fund by writing hundreds of false and fraudulent prescriptions for costly medical equipment that was not medically necessary. Dr. Schwartz was also ordered to pay restitution of $593,429.81 to the Medicare trust fund and to forfeit $55,800 in kickbacks that he received for his role in the fraudulent scheme.
August 19, 2013; U.S. Department of Justice
Shands Healthcare to Pay $26 Million to Resolve Allegations Related to Inpatient Stays at Six Florida Hospitals
Shands Teaching Hospital & Clinics Inc., Shands Jacksonville Medical Center Inc. and Shands Jacksonville Healthcare Inc., which operates a network of health care providers in Florida, will pay the government and the state of Florida a total of $26 million to settle allegations that six of its health care facilities submitted false claims to Medicare, Medicaid and other federal health care programs for inpatient procedures that should have been billed as outpatient services.
August 16, 2013; U.S. Attorney; Eastern District of Texas
Planned Parenthood Pays $4.3 Million to Settle Allegations of Unnecessary Medical Care
LUFKIN, Texas - Houston-based Planned Parenthood Gulf Coast has paid $4.3 million to resolve civil allegations under the False Claims Act in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
August 16, 2013; U.S. Attorney; Southern District of New York
High-Ranking Member of Enterprise Involved in Massive Medicare Fraud Sentenced in Manhattan Federal Court to 125 Months in Prison
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that Robert Terdjanian was sentenced yesterday to 125 months in prison for his role in a multi-million dollar Medicare fraud scheme, among other offenses including extortion and immigration fraud. Terdjanian pled guilty to racketeering in December 2011 before U.S. District Judge Paul G. Gardephe, who also imposed yesterday's sentence.
August 15, 2013; U.S. Attorney; District of Wyoming
Evanston Woman Sentenced for Health Care Fraud
United States Attorney Christopher A. Crofts announced today that on August 14, 2013, Brenda Murray, 52, of Evanston, Wyoming, was sentenced by Chief District Court Judge Nancy D. Freudenthal for Health Care Fraud. Murray was sentenced to five months of home confinement, two years of probation and ordered to pay restitution in the amount of $56,496.15.
August 15, 2013; U.S. Department of Justice
Michigan Physical Therapist and Home Health Agency Owner Pleads Guilty for Role in Medicare Fraud Scheme
A greater Detroit-area physical therapist who was also an owner of a home health agency pleaded guilty yesterday for his role in a $22 million home health care fraud scheme.
August 15, 2013; U.S. Department of Justice
Operators of Louisiana Home Health Company Sentenced for $17.1 Million Health Care Fraud Scheme
The owner of South Louisiana Home Health Care Inc. and the director of nursing for the Louisiana home health agency were sentenced today for their roles in a Medicare fraud scheme involving the payment of kickbacks and the falsification of documents.
August 14, 2013; U.S. Attorney; District of New Hampshire
Former Employee of Exeter Hospital Pleads Guilty To Charges Related To Multi-State
Hepatitis C Outbreak

Concord, N.H. -David M. Kwiatkowski, 34, a former employee of Exeter Hospital, pleaded guilty today to eight counts of obtaining controlled substances by fraud and eight counts of tampering with a consumer product, announced United States Attorney John P. Kacavas.
August 13, 2013; U.S. Department of Justice
Health Care Clinic Owners Plead Guilty in Miami for Roles in $8 Million Health Care Fraud Scheme
WASHINGTON - Two health care clinic owners pleaded guilty today in connection with an $8 million health care fraud scheme involving the now-defunct home health care company Flores Home Health Care Inc.
August 13, 2013; U.S. Attorney; Western District of Michigan
Health Care Business Owner Sentenced To Four Years in Prison, Pays A Million Dollar Civil Settlement, and Agrees To 20-Year Exclusion from Medicare and Medicaid In Connection With Illegal Kickback Scheme
Grand Rapids, Michigan - U.S. Attorney Patrick Miles announced today that Babubhai Rathod, age 44, of Okemos, Michigan, was sentenced to four years in prison and two years of supervised release for his lead role in a conspiracy to pay illegal kickbacks to health care practitioners and others to induce the referral of patients to medical clinics, physical therapy clinics, and a home health care agency.
August 13, 2013; U.S. Attorney; Northern District of Ohio
Seven Oncologists Charged with Importing Unapproved Drugs
Seven Ohio oncologists were charged with importing cancer medications that had not been approved by the Federal Drug Administration, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
August 12, 2013; U.S. Attorney; District of Maryland
Maryland General Hospital Agrees To Pay $750,000 to Resolve False Claims Act Allegations in Connection with Overbilling for Cardiac Testing
Baltimore, Maryland - Maryland General Hospital ("MGH"), an acute care hospital in Baltimore, Maryland that is part of the University of Maryland Medical Systems Corporation, agreed to pay $750,000 to settle allegations under the False Claims Act. The government alleged that MGH overbilled in connection with cardiac testing and failed to repay the overpayments after senior financial managers learned of them.
August 12, 2013; U.S. Attorney; District of New Jersey
Salesman Admits Role in Bribes-For-Test-Referrals Scheme Involving New Jersey Clinical Laboratory
NEWARK, N.J. - A Monmouth County, N.J. man pleaded guilty today to his role in a long-running bribes-for-test-referrals scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president, and numerous associates, U.S. Attorney Paul J. Fishman announced.
August 9, 2013; U.S. Department of Justice
United States Files Lawsuit against PharMerica Corporation for Violations of the False Claims Act and the Controlled Substances Act; Government Alleges That Long-term Care Pharmacy Billed Medicare for Schedule II Controlled Substances That Were Dispensed Without a Valid Prescription
The United States has filed suit against PharMerica Corp. in the U.S. District Court for the Eastern District of Wisconsin, the Justice Department announced today. The lawsuit alleges that PharMerica violated the False Claims Act and the Controlled Substances Act by dispensing controlled drugs without valid prescriptions and causing claims for illegally dispensed drugs to be submitted to the Medicare program.
August 8, 2013; U.S. Attorney; Western District of North Carolina
Mental Health Counselor Receives Six-Year Prison Sentence for Defrauding Medicaid of $6.1 Million
CHARLOTTE, N.C. - A mental health counselor who admitted overseeing a health care scheme that defrauded Medicaid of at least $6.1 million for sham mental and behavioral health services was sentenced to 72 months in prison today, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Linda Smoot Radeker, 72, of Shelby, N.C. was also sentenced to serve two years under court supervision and to pay $6,156,674.68 as restitution to Medicaid.
August 7, 2013; U.S. Attorney; Southern District of Ohio
Grand Jury Returns 10-Count Indictment against Spine Surgeon Alleging Health Care Fraud
A federal grand jury returned a ten-count indictment against Abubakar Atiq Durrani, 44, Mason, Ohio alleging that, beginning in 2009, he convinced patients to undergo medically unnecessary spinal surgeries then billed private and public healthcare benefit programs millions of dollars for the fraudulent services.
August 6, 2013; U.S. Attorney; Western District of Tennessee
Contract Counselor for Shelby County Juvenile Court Sentenced to Three Years for Health Care Fraud Scheme
Memphis, TN - Mechell D. Toles, 44, of Collierville, TN, was sentenced today by United States District Court Chief Judge Jon Phipps McCalla to three years in prison following her guilty plea to one count of health care fraud, announced U.S. Attorney Edward L. Stanton III.
August 6, 2013; U.S. Department of Justice
Oakland County Doctor and Owner of Michigan Hemotology and Oncology Centers Charged in $35 Million Medicare Fraud Scheme
Dr. Farid Fata, 48, of Oakland Township, Michigan, was arrested this morning and charged in a criminal complaint for his role in a health care fraud scheme which involved submitting false claims to Medicare for services that were medically unnecessary, including chemotherapy treatments.
August 6, 2013; U.S. Attorney; Southern District of New York
Manhattan U.S. Attorney and FBI Assistant Director in Charge Announce Charges against New York City Comptroller Candidate Kristin Davis for Illegally Distributing Prescription Pills
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI), announced today the arrest of KRISTIN DAVIS, a candidate for New York City comptroller, on charges of selling prescription pills containing controlled substances, including oxycodone, for cash. DAVIS was arrested yesterday in Manhattan and is expected to be presented this afternoon in Manhattan federal court before U.S. Magistrate Judge Sarah Netburn.
August 6, 2013; U.S. Attorney; District of New Jersey
Twin Brother Pharmacists Admit To Defrauding Patients and Insurance Companies of $1.5 Million
NEWARK, N.J. - Two pharmacists - twin brothers who previously owned the West Orange Pharmacy - today admitted reaping at least $1.5 million in illicit gains by defrauding patients, Medicaid and insurance companies over the past 15 years, U.S. Attorney Paul J. Fishman announced.
August 5, 2013; U.S. Attorney; Eastern District of Texas
Former Shelby County Residents Indicted in Health Care Fraud Scheme
Tyler, Texas - U.S. Attorney John M. Bales announced that a Center, Texas couple, now living in Elgin, Texas, and a Center, Texas man have been indicted on charges of conspiracy and health care fraud in the Eastern District of Texas.
August 1, 2013; U.S. Attorney, Southern District of Florida
Loxahatchee Pair Indicted in Conspiracy to Defraud Banks and Federal Benefit Programs
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Lester Fernandez, Special Agent in Charge, United States Department of Housing and Urban Development (HUD), Office of Inspector General, Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff's Office, Thomas Caul, Acting Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General, Karen Citizen-Wilcox, Special Agent in Charge, United States Department of Agriculture (USDA), Office of Inspector General, and Christopher B. Dennis, Special Agent in Charge, United States Department of Health and Human Services (HHS), Office of Inspector General, Miami Region, announced the indictment of defendants Gloria Nereida Valle-Clas, 48, and Alexander Gonzalez, 40, of Loxahatchee, Florida.
August 1, 2013; U.S. Attorney, Middle District of Georgia
Christine Rahl Sentenced For Health Care Fraud And Money Laundering
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Christine Rahl, 46, a resident of Social Circle, Georgia, was sentenced July 31, 2013 before the Honorable C. Ashley Royal, United States District Judge in Macon, Georgia, to fifty-seven (57) months imprisonment, to be followed by three (3) years supervised release, and a $500.00 mandatory assessment. Additionally, Judge Royal ordered Ms. Rahl to pay $1,586.847.14 in restitution.
August 1, 2013; U.S. Attorney, Southern District of Georgia
Victims Of Largest Fraud Case Prosecuted In Southern District of Georgia Receive Over $27 Million In Restitution
SAVANNAH, GA - United States Attorney Edward J. Tarver announced today the payment of over $27 million in restitution to the victims of the largest fraud case ever prosecuted in the Southern District of Georgia, United States v. Martin J. Bradley III, et al., Case No. 405-059 (S.D. Ga.).

July 2013

July 31, 2013; U.S. Attorney, District of Columbia
Former CEO/Owner of Home Health Care Provider Sentenced To Prison For Falsifying Records Involving a Federal Audit
WASHINGTON - Jeannette N. Awasum, the former owner of a health care provider, was sentenced today to eight months of incarceration on a federal charge stemming from falsifying records in connection with a U.S. Department of Health and Human Services audit.
July 30, 2013; U.S. Department of Justice
Wyeth Pharmaceuticals Agrees to Pay $490.9 Million for Marketing the Prescription Drug Rapamune for Unapproved Uses
Wyeth Pharmaceuticals Inc., a pharmaceutical company acquired by Pfizer, Inc. in 2009, has agreed to pay $490.9 million to resolve its criminal and civil liability arising from the unlawful marketing of the prescription drug Rapamune for uses not approved as safe and effective by the U.S. Food and Drug Administration (FDA), the Justice Department announced today. Rapamune is an "immunosuppressive" drug that prevents the body's immune system from rejecting a transplanted organ.
July 30, 2013; U.S. Department of Justice
Brooklyn Clinic Employee Sentenced to Eight Years in Prison in Connection with $77 Million Medicare Fraud Scheme
Yuri Khandrius, 50, of Brooklyn, N.Y., was sentenced today to eight years in prison for his role in a $77 million Medicare fraud scheme.
July 30, 2013; U.S. Department of Justice
False Claims Act Judgment Entered Against Washington, DC, Health Care Provider for More Than $17 Million
The U.S. District Court for the District of Columbia has entered judgment for more than $17 million against Dr. Ishtiaq Malik and his two companies, Ishtiaq Malik M.D., P.C. and Advanced Nuclear Diagnostics, for submitting false nuclear cardiology claims to federal and state health care programs, the Justice Department announced today. Ishtiaq Malik, a nuclear cardiologist, has practiced in the District of Columbia metropolitan area since 2002.
July 30, 2013; U.S. Department of Justice
Former Owner of Los Angeles Medical Equipment Supply Company Sentenced for Conspiring to Defraud Medicare
The owner and operator of a durable medical equipment (DME) supply company was sentenced today to serve 24 months in prison for conspiring to submit nearly $1 million in fraudulent claims to Medicare.
July 30, 2013; U.S. Attorney, Northern District of Illinois
Northwestern University to Pay Nearly $3 Million to the United States to Settle Cancer Research Grant Fraud Claims
CHICAGO - Northwestern University will pay the United States $2.93 million to settle claims of cancer research grant fraud by a former researcher and physician at the university's Robert H. Lurie Comprehensive Center for Cancer in Chicago. Northwestern agreed to the settlement in a federal False Claims Act lawsuit that was unsealed today after the government investigated the claims made by a former employee and whistleblower who will receive a portion of the settlement.
July 30, 2013; U.S. Attorney, Northern District of Texas
North Texas Men, Who Owned Hyperbaric Oxygen Therapy Companies, Plead Guilty to Conspiracy to Commit Health Care Fraud; Third Defendant Admits Conspiring to Make False Statements to a Financial Institution
DALLAS - This morning, two businessmen, Stanley Thaw, of Frisco, Texas, and Michael Kincaid, of Plano, Texas, who owned and operated hyperbaric oxygen therapy companies located in Plano, Denton, Hurst, Houston, and San Antonio, Texas, appeared before U.S. District Judge Jorge A. Solis and pleaded guilty to their roles in a conspiracy to commit health care fraud. Kernell Thaw also appeared in court this morning and pleaded guilty to one count of conspiracy to make false statements to a financial institution regarding properties in Dallas that she purchased from a local home builder. Today's announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
July 29, 2013; U.S. Attorney, Southern District of Florida
Hospital Employee and Accomplice Sentenced for Tax Refund Fraud Using Stolen Patient Information
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), and Scott J. Israel, Sheriff, Broward Sheriff's Office, announce that defendant Shalamar Major, 32, of Deerfield Beach, Florida, was sentenced today before U.S. District Judge Robin S. Rosenbaum, in connection with her previous conviction for unauthorized HIPAA disclosures, in violation of Title 42, United States Code, Section 1320d-6, and conspiracy to commit false claims, in violation of Title 18, United States Code, Section 286, in connection with a tax refund scheme that used stolen social security and other personal identifying information to file on-line tax returns claiming fraudulent tax refunds from the IRS.
July 29, 2013; U.S. Attorney, District of Maryland
Pharmacy Store Owner and Two Employees Charged With Health Care Fraud and Identity Theft
Baltimore, Maryland - A federal grand jury has indicted Reddy Vijay Annappareddy, age 45, of Fallston, Maryland; Vipinkumar Patel (V. Patel), age 30, of Edgewood, Maryland; and Jigar Patel (J. Patel), age 27, of Columbia, Maryland, on charges of health care fraud and aggravated identity theft in connection with a scheme to defraud Medicaid and Medicare by submitting false claims for prescription refills. The indictment was returned on July 23, 2013, and unsealed on July 25, 2013, upon the arrest of the Patels and the execution of search warrants at six locations, including three pharmacies and a storage space. The Patels had detention hearings today in federal court in Baltimore and were released under the supervision of U.S. Pretrial Services. No court appearance has been scheduled yet for Annappareddy.
July 29, 2013; U.S. Attorney, District of Massachusetts
Beth Israel Deaconess Medical Center to Pay $5.3 Million to Resolve Improper Medicare Claims
BOSTON - United States Attorney Carmen M. Ortiz and Susan J. Waddell, Special Agent in Charge of the Department of Health & Human Services, Office of Inspector General announced today that Beth Israel Deaconess Medical Center (BIDMC), a teaching hospital located in Boston, has agreed to pay the United States $5.315 million to settle allegations that it violated the False Claims Act by billing Medicare for inpatient admissions that should have been billed as lower reimbursed outpatient or observation services. The improper claims were submitted from June 1, 2004, through March 31, 2008.
July 26, 2013; U.S. Attorney, Southern District of Texas
Professional Medicare Beneficiary Turned Patient Recruiter Sentenced to Federal Prison
HOUSTON -- Robert Glenn Baker, 57, of Houston, has been sentenced for conspiracy to violate the anti-kickback statute, United States Attorney Kenneth Magidson announced today. Baker pleaded guilty to the charge on Aug. 15, 2012.
July 26, 2013; U.S. Attorney, District of Maryland
Leader of Baltimore Area Oxycodone Ring Sentenced to Prison
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Joseph Church, age 41, of Baltimore, Maryland, today to 51 months in prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute oxycodone.
July 26, 2013; U.S. Department of Justice
Dubuis Health System and Southern Crescent Hospital for Specialty Care, Inc. to Pay U.S. $8 Million to Resolve False Claims Act Allegations
Dubuis Health System and Southern Crescent Hospital for Specialty Care, Inc. (Southern Crescent) have agreed to pay the United States $8,000,000 to settle allegations that they submitted false claims to Medicare, the Justice Department announced today. Dubuis Health System manages long-term acute care hospitals in multiple states, including Southern Crescent. Southern Crescent is a long-term acute care hospital located in Riverdale, GA and is part of the CHRISTUS Health System.
July 25, 2013; U.S. Attorney, Southern District of Ohio
Spine Surgeon Arrested on Charges He Performed Unnecessary Surgeries and Billed Health Insurance Programs
CINCINNATI - Federal and state health care fraud investigators arrested Abubakar Atiq Durrani, 44, Mason, Ohio today based on a federal complaint alleging that he convinced patients to undergo medically unnecessary spinal surgeries then billed private and public healthcare benefit programs millions of dollars for the fraudulent services.
July 25, 2013; U.S. Department of Justice
Health Care Clinic Director Sentenced for Role in $63 Million Health Care Fraud Scheme
A former health care clinic director and licensed clinical psychologist at defunct health provider Health Care Solutions Network Inc. (HCSN) was sentenced today in Miami to serve 135 months in prison for her central role in a fraud scheme that resulted in more than $63 million in fraudulent claims to Medicare and Florida Medicaid.
July 24, 2013; U.S. Department of Justice
Michigan Physical Therapist Assistant/home Health Agency Owner Pleads Guilty for Role in Medicare Fraud Scheme
A greater Detroit-area physical therapist assistant - who was also an owner of a home health agency and a patient recruiter - pleaded guilty today for his role in a $22 million home health care fraud scheme.
July 24, 2013; U.S. Department of Justice
Owner of California Medical Equipment Supply Company Found Guilty of $11 Million Medicare Fraud Scheme
The daughter of a church pastor and owner of a California-based durable medical equipment (DME) supply company was found guilty by a jury of Medicare fraud charges for her role in a Medicare fraud scheme that resulted in over $11 million in fraudulent billings to Medicare.
July 24, 2013; U.S. Department of Justice
Philadelphia Money Launderer Pleads Guilty in Connection with Brooklyn Medicare Fraud Scheme
A Philadelphia resident pleaded guilty today for his role as a money launderer in a $13 million health care fraud scheme.
July 24, 2013; U.S. Attorney; District of Nevada
Two Women Sentenced for Nevada Medicaid Fraud Scheme
RENO, Nev. - Two women were sentenced today for their guilty pleas to federal health care fraud charges after they defrauded the Nevada Medicaid program of approximately $1 million, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
July 22, 2013; U.S. Attorney; Western District of New York
Physician Pleads Guilty To Health Care Fraud Charges
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced that Daniel C. Gillick, 63, a physician residing in Youngstown, N.Y., pleaded guilty to obtaining controlled substances by fraud and health care fraud. The charges carry a maximum sentence of 10 years in prison, a $500,000 fine or both.
July 22, 2013; U.S. Department of Justice
Home Health Agency Owner Pleads Guilty for Role in $13.8 Million Medicare Fraud Scheme
Detroit-area resident Javed Rehman pleaded guilty today for his role in a $13.8 million Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Robert D. Foley III of the FBI's Detroit Field Office and Special Agent in Charge Lamont Pugh III of the Chicago Regional Office for the U.S. Department of Health and Human Service's Office of Inspector General.
July 22, 2013; U.S. Attorney; Middle District of Florida
HPH Hospice to Pay $1 Million to Resolve False Claims Act Allegations
TAMPA - The United States Attorney's Office for the Middle District of Florida announced today that Hernando-Pasco Hospice, Inc., d/b/a HPH Hospice, has agreed to pay $1 million to resolve allegations that it violated the False Claims Act by submitting false claims for hospice services to the Medicare and Medicaid programs. HPH Hospice is a Florida not-for-profit corporation that provides hospice services in various locations throughout Hernando, Pasco, and Citrus counties in Florida.
July 22, 2013; U.S. Attorney; Southern District of Illinois
Doctor Sentenced In Health Care Fraud Obstruction Case
Dr. Mahmoud Yassin, 61, of Robinson, IL, was sentenced in federal district court in Benton for Obstructing a Criminal Health Care Fraud Investigator, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Dr. Yassin was sentenced to serve 3 years of probation, a fine of $10,000, a special assessment of $100, and ordered to pay restitution to BCBS of Illinois in the amount of $19,615.17. As a condition of probation, Dr. Yassin must also serve 30 days in prison.
July 19, 2013; U.S. Department of Justice
U.S. Intervenes in False Claims Act Lawsuit against Fla. Home Health Care Company and Its Owner
The government has intervened in a whistleblower lawsuit against A Plus Home Health Care, Inc., a home health care company in Fort Lauderdale, Fla., and its owner, Tracy Nemerofsky, the Justice Department announced today. The government alleges that A Plus offered referring physicians' spouses sham marketing positions with the company to induce the physicians to refer Medicare patients for home health care services.
July 19, 2013; U.S. Attorney; Northern District of Ohio
Orange Village Man Sentenced To Two Years in Prison, Ordered To Pay $1.9 Million for Health
Care Fraud

A man who lives in Orange, Ohio and admitted to overbilling Medicaid and Medicare was sentenced to two years in prison and ordered to pay more than $1.9 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. Divyesh "David" C. Patel, 40, pleaded guilty last year to one count of conspiracy to commit health care fraud and four counts of health care fraud.
July 18, 2013; U.S. Attorney; Northern District of California
Pharmaceutical Company Agrees To Pay $3.5 Million to Settle False Claims Act Allegations
SAN FRANCISCO - Mallinckrodt LLC, a pharmaceutical manufacturer, has agreed to pay $3.5 million to settle allegations that it made improper payments to physicians and, as a result, caused the submission of false claims to Medicare and Medicaid between January 2005 and June 2010, United States Attorney Melinda Haag announced.
July 18, 2013; U.S. Department of Justice
Owner of Los Angeles-area DME Company Pleads Guilty to Conspiring to Defraud Medicare and
Medi-Cal

The owner of a Los Angeles-area durable medical equipment (DME) supply company has pleaded guilty to conspiring to defraud Medicare and Medi-Cal of more than $650,000.
July 18, 2013; U.S. Attorney; Southern District of New York
United States Settles Medicare Billing Fraud Lawsuit with Multi-Specialty Health Care Provider for $1 Million
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas O'Donnell, Special Agent-in-Charge of the Department of Health and Human Services, Office of Inspector General (HHS-OIG), New York region, announced today that the United States has settled for $1 million a civil health care False Claims Act lawsuit it filed on March 5, 2013 in Manhattan federal court against Park Avenue Medical Associates, P.C., Park Avenue Health Care Management, LLC, and Park Avenue Health Care Management, INC. (collectively "PAMA"), affiliated companies in the business of providing multi-specialty medical services in New York.
July 18, 2013; U.S. Attorney; District of New Jersey
South Jersey Doctor Sentenced To Two Years in Prison for Fraud Scheme Involving Home Health Care for Elderly Patients
TRENTON, N.J. - A doctor who was the owner and founder of Visiting Physicians of South Jersey (VPA) - a Hammonton, N.J., provider of home-based physician services for seniors - was sentenced today to 24 months in prison for charging lengthy visits to elderly patients that they did not receive, U.S. Attorney Paul J. Fishman announced.
July 18, 2013; U.S. Attorney; District of Maryland
16 Defendants Charged In a Commercial Burglary Ring and Drug Conspiracy
Baltimore, Maryland - A federal grand jury has returned three indictments charging 16 defendants - eight in a conspiracy to distribute prescription drugs, heroin and cocaine around the Baltimore metropolitan area and the remaining defendants in conspiracies to commit armed home invasions, residential burglaries and commercial burglaries. The indictments were returned on July 16, 2013 and unsealed today upon the arrests of the defendants and execution of search warrants at 21 locations in Baltimore, Baltimore County and Anne Arundel County.
July 18, 2013; U.S. Attorney; Eastern District of Missouri
Local Physician, Clinic and Nurse Practitioner Indicted On Health Care Fraud Charges
St. Louis, MO - Dr. Mel Lucas, Patterson Medical Clinic, Inc. and nurse practitioner, Robyn Levy, were indicted on multiple health care fraud related charges for their alleged false billing for services never rendered and false statements in patients' medical records.
July 17, 2013; U.S. Attorney; Southern District of New York
Manhattan U.S. Attorney Announces Charges against Eight Individuals in Connection with $2.3 Million Bribery and Kickback Scheme to Secure Business from a Medical Cost-Management Company
Preet Bharara, the United States Attorney for the Southern District of New York, Thomas O'Donnell, the Special Agent-in-Charge of the New York Office of the U.S. Department of Health and Human Services, Office of Inspector General, and Steven G. Hughes, the Special Agent-in-Charge of the New York Office of the U.S. Secret Service today announced charges against eight individuals for their alleged involvement in a lucrative scheme in which information technology vendors paid over $2.3 million in bribes and kickbacks to secure business from executives of a Manhattan-based medical cost management company.
July 17, 2013; U.S. Attorney; Middle District of Pennsylvania
Williamsport Resident Sentenced To 70 Months on Federal Tax Charges
The United States Attorney's Office for the Middle District of Pennsylvania announced today that Cheryl Cobia, age 27, of Williamsport, Pennsylvania was sentenced to 70 months' imprisonment by U.S. District Court Judge Matthew W. Brann on July 9, 2013, in U.S. District Court in Williamsport. Cobia pleaded guilty earlier this year to charges of conspiracy and false statements in connection with a scheme to file false federal income tax returns in 2009-2011. Cobia was also charged with making false statements in applications for food stamps and medical assistance benefits.
July 17, 2013; Drug Enforcement Administration; New York Division
Rx Trafficking Ring Controlled Brooklyn Medical Practices: Nearly $3.4 Million in Pills Diverted
Manhattan, NY - Brian R. Crowell, Special Agent in Charge, Drug Enforcement Administration (DEA), New York Division, Bridget G. Brennan, New York City's Special Narcotics Prosecutor, New York City Police Commissioner Raymond W. Kelly, Tom F. O'Donnell, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General New York Region (HHS-OIG), and New York State Commissioner of Health Nirav R. Shah, M.D., M.P.H., announced today the indictment and arrest of five members of a prescription drug trafficking ring that illegally collected and distributed over $3.4 million in oxycodone and other prescription drugs through medical offices they controlled in Brooklyn.
July 17, 2013; U.S. Attorney; District of New Jersey
Three Doctors Admit Accepting Bribes for Test Referrals to New Jersey Clinical Laboratory
NEWARK, N.J. - Three New Jersey doctors admitted today they accepted tens of thousands of dollars in bribes from Parsippany, N.J.-based Biodiagnostic Laboratory Services LLC (BLS) as part of a long-running scheme operated by the lab, its president, and numerous associates, U.S. Attorney Paul J. Fishman announced.
July 17, 2013; Office of the District Attorney; Richmond County, NY
D.A. Donovan, NYPD Take down Ring of ID Scammers Who Targeted More Than 80 Patients from a South Shore Doctor's Office
Staten Island, NY - Richmond County District Attorney Daniel M. Donovan, Jr. and NYPD Commissioner Raymond Kelly today announced the indictments and arrests of one Staten Islander and four Bronx residents on charges that include enterprise corruption, identity theft, falsifying business records, criminal possession of stolen property, grand larceny and grand larceny as a hate crime, among other charges, for stealing patient information from a Staten Island doctor's office and using the stolen data to create new debit cards and make cash withdrawals against the victim's accounts, as well as filing false income tax returns in order to steal refunds from the victims and the Internal Revenue Service.
July 16, 2013; U.S. Department of Justice
Florida Health Care Medical Director and Six Therapists Arrested for Alleged Roles in $63 Million Fraud Scheme
The former medical director at defunct health provider Health Care Solutions Network (HCSN) and six therapists were arrested today, accused of conspiring to fraudulently bill Medicare and Florida Medicaid more than $63 million.
July 16, 2013; U.S. Attorney; Eastern District of New York
Brooklyn Money Launderer Sentenced to 37 Months in Prison in Connection with $77 Million Medicare Fraud Scheme
BROOKLYN, NY - Earlier today, Anatoly Kraiter, 35, of Brooklyn, New York, was sentenced today to 37 months in prison for his role as a money launderer for a $77 million Medicare fraud scheme. In addition to the prison term, U.S. District Judge Nina Gershon of the Eastern District of New York sentenced Kraiter to three years of supervised release and ordered him to forfeit $100,000. Kraiter's surrender date is September 16, 2013.
July 16, 2013; U.S. Attorney; Middle District of Tennessee
Behavioral Analyst Pleads Guilty To Health Care Fraud
NASHVILLE, Tenn. - July 16, 2013 - Jenny Lynn Hall, formerly known as Jenny Lynn Unterstein, 37, of Smithville, Tenn., pleaded guilty yesterday in U.S. District Court, to health care fraud, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
July 15, 2013; U.S. Attorney; Eastern District of Tennessee
Morristown Dentist Indicted For TennCare Fraud
GREENEVILLE, Tenn. - On Jul. 9, 2013, a federal grand jury in Greeneville returned an indictment against Gary Dean Stump, D.M.D., 57, of Bean Station, Tenn., charging him with health care fraud for submitting false claims to TennCare's program for dental services to children, TennDent.
July 15, 2013; U.S. Attorney; District of South Dakota
Kadoka Man Indicted For Burglary, Destruction of Government Property and Theft
United States Attorney Brendan V. Johnson announced that a Kadoka, South Dakota, man has been indicted by a federal grand jury for allegedly unlawfully entering the Indian Health Service Clinic at Wanblee and stealing prescription pills on July 5, 2013.
July 12, 2013; U.S. Attorney; Western District of North Carolina
Owner of Charlotte Behavioral Health Company Sentenced To Two Years in Prison for $400,000 Medicaid Fraud Scheme
CHARLOTTE, N.C. - A Charlotte man and owner of a behavioral health company was sentenced on Thursday, July 11, 2013, to serve 24 months in prison for attempting to obtain nearly $400,000 in fraudulent reimbursement claims from North Carolina Medicaid, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Gregory Benny Lassiter, Jr., 32, of Charlotte, was also ordered to remain under court supervision for two years, following his prison term.
July 11, 2013; U.S. Attorney; Eastern District of Missouri
University City Doctor Sentenced For Overbilling Medicare And Medicaid
St. Louis, MO - DR. WIT A. JAMRY was sentenced to one year and a day and ordered to pay restitution of $119,000 and a fine of $30,000 for billing Medicare and Medicaid for services he had not performed. His company Dr. Wit-Internal Medicine Professional Geriatric, P.C. was ordered to pay $119,000 in restitution.
July 11, 2013; U.S. Attorney; Southern District of Illinois
Program Fraud Indictments Announced
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, and Gerald Roy, Special Agent in Charge, United States Department of Health and Human Services, Office of Inspector General, Office of Investigations for Region 7 (Kansas City office), announced today a second wave of indictments arising out of the abuse of a Medicaid program in Illinois that pays personal assistants to assist Medicaid recipients with general household activities and personal care. The program is intended for recipients under 60 years of age and is ostensibly designed to reduce Medicaid expenditures by avoiding more expensive institutional care, including nursing home care.
July 11, 2013; U.S. Attorney; Central District of California
Ventura County-based Amgen Inc. Pays Over $15 Million to Resolve Allegations that it Illegally Marketed Cancer Drug with Kickbacks
LOS ANGELES - Biopharmaceutical company Amgen Inc. today paid the United States more than $15 million to resolve allegations that the Ventura County company provided illegal financial incentives to physicians and physician groups to induce them to prescribe the cancer drug Xgeva.
July 11, 2013; U.S. Attorney; Southern District of Texas
RGV DME Owner Gets 12 Years in Federal Prison for $11 Million Health Care Fraud Scheme
McALLEN, Texas - The owner of a now defunct McAllen area durable medical equipment (DME) business has been ordered to prison for his role in a conspiracy and scheme to defraud Medicare and Medicaid through fraudulent billings, United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott announced today. The scheme involved approximately $11.1 million in false claims to Medicare and Medicaid.
July 11, 2013; U.S. Attorney; District of New Jersey
Cardiologist sentenced to prison for taking cash kickbacks for patient referrals
NEWARK, N.J. - An Edison, N.J., cardiologist was sentenced today to 30 months in prison for referring patients for diagnostic testing in exchange for cash kickbacks as part of a cash-for-patients scheme with a diagnostic facility in Orange, N.J., U.S. Attorney Paul J. Fishman announced.
July 11, 2013; U.S. Attorney; Southern District of New York
Former Chief Executive Officer Of Hospital For Special Surgery Pleads Guilty In Manhattan Federal Court To Fraudulent Kickback Scheme
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOHN R. REYNOLDS, the former Chief Executive Officer ("CEO") of the Hospital for Special Surgery (the "Hospital"), pled guilty today in Manhattan federal court to participating in a fraudulent scheme in which he was paid nearly $300,000 in undisclosed kickbacks from a subordinate Hospital employee. REYNOLDS, who was arrested in September 2012, also pled guilty to making false statements to a law enforcement agent. U.S. Magistrate Judge Debra Freeman presided over today's plea proceeding.
July 11, 2013; U.S. Attorney; Middle District of Alabama
Wetumpka Woman Pleads Guilty to Health Care Fraud
Montgomery, Alabama - LaShawn Denise Anthony, 42, of Wetumpka, entered a guilty plea today to one count of health care fraud, admitting that she and her business had falsely billed Alabama Medicaid, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. Anthony had been scheduled to go to trial on July 22, 2013, on the indictment returned against her in December 2012.
July 10, 2013; U.S. Attorney; Eastern District of Michigan
United States Intervenes in Health Care Fraud Action and Obtains $4 Million in Settlement
The United States will receive $4 million in settlement of a lawsuit brought under the False Claims Act against a cardiology practice and a hospital in Jackson, Michigan, United States Attorney Barbara L. McQuade announced today. McQuade was joined in the announcement by Lamont Pugh,III, Special Agent in Charge, Department of Health and Human Services Office of Inspector General ("HHS-OIG") and Robert D. Foley, III, Special Agent in Charge, FBI Detroit Field Division.
July 10, 2013; U.S. Attorney; Eastern District of Michigan
Jury Convicts Podiatrist, Psychologist And Pharmacist In Health Care Fraud Case
A podiatrist, a psychologist and a pharmacist were convicted today in federal court in Detroit, Michigan for health care fraud and controlled substance distribution, United States Attorney Barbara L. McQuade announced today.
July 9, 2013; U.S. Attorney; South Carolina
Federal Grand Jury Indictments: Andrews Woman Indicted for Health Care Fraud
Queen Edwards Nesmith, age 53, of Andrews, South Carolina, was charged in a two count Indictment with Health Care Fraud in violation of Title 18, United States Code, Section 1347, and Aggravated Identity Theft in violation of Title 18, United States Code, Section 1028A. The maximum penalty for the Health Care Fraud is 10 years imprisonment and a fine of $250,000, and the Aggravated Identity Theft carries a mandatory two-year prison term.
July 9, 2013; U.S. Attorney; Eastern District of Pennsylvania
Philadelphia Doctor Pleads Guilty to Running Pill Mill
PHILADELPHIA - Kermit Gosnell, 72, of Philadelphia, pleaded guilty today to 12 counts in connection with running a pill mill out of his clinic located at 3801-3805 Lancaster Avenue in Philadelphia. Gosnell pleaded guilty to conspiracy to distribute controlled substances, including oxycodone, alprazolam, and codeine; distribution and aiding and abetting the distribution of oxycodone; and maintaining a place for the illegal distribution of controlled substances. U.S. District Court Judge Cynthia M. Rufe scheduled a sentencing hearing for October 4, 2013. He faces an advisory sentencing guideline range of 292 to 365 months in prison.
July 8, 2013; U.S. Department of Justice
US Joins False Claims Act Lawsuit Alleging Illegal Physician Compensation by Mobile, Ala., Health Firm
The government has intervened in a False Claims Act lawsuit against Infirmary Health System Inc. and its related entities: IMC-Diagnostic and Medical Clinic P.C., Diagnostic Physicians Group P.C. and Infirmary Medical Clinics P.C., the Department of Justice announced today. The lawsuit alleges that IMC-Diagnostic and Medical Clinic, in Mobile, Ala., billed Medicare for services referred by Diagnostic Physicians Group physicians, in violation of the Stark Law and Anti-Kickback Statute. IMC-Diagnostic and Medical Clinic is owned by Infirmary Medical Clinics, a subsidiary of Infirmary Health System, also based in Mobile.
July 8, 2013; U.S. Department of Justice
Supervisor of $63 Million Health Care Fraud Scheme Sentenced in Florida to 10 Years in Prison
A former supervisor at defunct health provider Health Care Solutions Network Inc. (HCSN) was sentenced today in Miami to serve 10 years in prison for her central role in a fraud scheme that resulted in more than $63 million in fraudulent claims to Medicare and Florida Medicaid.
July 3, 2013; U.S. Department of Justice
Tacoma, Wash., Medical Firm to Pay $14.5 Million to Settle Overbilling Allegations
WASHINGTON - Sound Inpatient Physicians Inc. will pay $14.5 million to settle allegations that it overbilled Medicare and other federal health care programs, the Justice Department announced today. Sound Physicians is a Tacoma, Wash.-based provider of hospitalists and other physicians to hospitals and other medical facilities. It employs more than 700 hospitalists and post-acute physicians, who provide services at 70 hospitals and a growing network of post-acute facilities in 22 states.
July 3, 2013; U.S. Department of Justice
North Carolina-Based Trans1 to Pay U.S. $6 Million to Settle False Claims Act Allegations
Medical device manufacturer TranS1 Inc., now known as Baxano Surgical Inc., has agreed to pay the United States $6 million to resolve allegations under the False Claims Act that the company caused health care providers to submit false claims to Medicare and other federal health care programs for minimally-invasive spine surgeries, the Justice Department announced today.
July 2, 2013; U.S. Attorney; Southern District of Florida
Defendant Pleads Guilty to Health Care Fraud in Connection with HIV Infusion Clinic
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced that defendant Jorge Alipio Perez Villa pleaded guilty yesterday to one count of healthcare fraud for his participation in a healthcare fraud scheme involving a purported HIV infusion clinic. Sentencing is scheduled for September 9, 2013 before U.S. District Judge Joan A. Lenard
July 2, 2013; U.S. Department of Justice
Fifty-Five Hospitals to Pay U.S. More Than $34 Million to Resolve False Claims Act Allegations Related to Kyphoplasty
Fifty-five hospitals located throughout twenty-one states have agreed to pay the United States a total of more than $34 million to settle allegations that the health care facilities submitted false claims to Medicare for kyphoplasty procedures, the Justice Department announced today. Kyphoplasty is a minimally-invasive procedure used to treat certain spinal fractures that often are due to osteoporosis.
July 2, 2013; U.S. Attorney; Eastern District of Tennessee
Johnson City Physicians to Pay $4.25 Million to Resolve Civil False Claims Allegations Re Unapproved Foreign Drugs
GREENEVILLE, Tenn.- William R. Kincaid, M.D., Millard R. Lamb, M.D., and Charles O. Famoyin, M.D., former partners in East Tennessee Hematology-Oncology Associates, P.C., d/b/a McLeod Cancer and Blood Center (McLeod Cancer) in Johnson City, Tenn., have agreed to pay via separate settlement agreements $4.25 million, plus interest, to resolve allegations that they violated the False Claims Act by knowingly submitting or causing the submission to the Medicare and TennCare/Medicaid programs of false claims for misbranded, unapproved chemotherapy drugs that were administered through the McLeod Cancer clinic.
July 1, 2013; U.S. Department of Justice
Los Angeles Medical Supply Company Owner Sentenced to Five Years in Prison for $8.4 Million Medicare Fraud Scheme
The owner and operator of a durable medical equipment (DME) supply company was sentenced today to serve five years in prison in connection with a health care fraud scheme involving Latay Medical Services, a DME company based in Gardena, Calif.
July 1, 2013; U.S. Department of Justice
Los Angeles-Area Doctor and Patient Recruiter Plead Guilty to Participating in a Power Wheelchair Scheme That Defrauded Medicare of Over $10.1 Million
A Los Angeles-area doctor and a patient recruiter pleaded guilty today for their roles in a power wheelchair fraud scheme that defrauded Medicare of over $10.1 million.
July 1, 2013; U.S. Attorney; Western District of Kentucky
Operators of University of Louisville Hospital to Pay $2,833,408.60 to Settle False Medicare Billings
LOUISVILLE, Ky. - University Medical Center, doing business as University of Louisville Hospital, has voluntarily entered into a settlement agreement with the United States to pay $2,833,408.60 to settle allegations that it submitted or caused to be submitted false claims for payment to the Medicare program in violation of the Federal False Claims Act, announced David J. Hale, United States Attorney for the Western District of Kentucky, and the Office of Inspector General of the Department of Health and Human Services.

June 2013

June 28, 2013; U.S. Attorney; Central District of California
Owner of Rehabilitation Facility Pleads Guilty to Mail Fraud Charge
SANTA ANA, California - The owner and chief executive officer of a comprehensive outpatient rehabilitation facility pleaded guilty today to mail fraud for submitting claims to Medicare for services that were not prescribed by treating doctors.
June 28, 2013; U.S. Attorney; Southern District of California
Local Oncology Practice Sentenced To Pay Millions for Medicare Fraud
The La Jolla oncology practice known as Joel I. Bernstein, M.D., Inc. was sentenced today to pay a $500,000 fine, forfeit $1.2 million and make restitution to Medicare in the amount of $1.7 million for purchasing unapproved foreign cancer drugs and billing Medicare as if the drugs were legitimate.
June 28, 2013; U.S. Department of Justice
Executives from Miami-Area Mental Health Care Hospital Convicted for Participating in $70 Million Medicare Fraud Scheme
WASHINGTON - A federal jury today convicted four individuals for their participation in a Medicare fraud scheme involving nearly $70 million in fraudulent billings by Hollywood Pavilion (HP), a mental health care hospital.
June 27, 2013; US Department of Justice
Former Department of Health and Human Services Employee Sentenced to Prison for Wire Fraud Scheme
A former employee of the Department of Health and Human Services' Office of the Assistant Secretary for Preparedness and Response (HHS-ASPR) was sentenced today to serve six months in prison for his role in a scheme to defraud the United States by submitting fraudulent employment offers in order to claim retention bonuses totaling $138,875, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division.
June 26, 2013; U.S. Attorney; Northern District of Texas
Former Owner of Local Durable Medical Equipment Company is Sentenced to 35 Months in Federal Prison for Defrauding Medicare and Medicaid
Dallas - Philip Odoemena, 60, the former owner/operator of Kingsway Medical Systems, Inc., (Kingsway) was sentenced today by U.S. District Judge Barbara M. G. Lynn to 35 months in federal prison and ordered to pay $483,995 in restitution, following his guilty plea in September 2012 to one count of health care fraud. Odoemena has been in custody since his arrest in early May 2012. Today's announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
June 26, 2013; U.S. Attorney; Southern District of Ohio
Owners of Lawrence County Medical Clinics Charged With Health Care Fraud
Cincinnati - A federal grand jury has charged four people with health care fraud, alleging that they improperly charged government insurance programs for medically unnecessary procedures in connection with two medical clinics they owned and operated in Coal Grove, Ohio.
June 26, 2013; U.S. Attorney; District of Connecticut
Guilford Podiatrist Pleads Guilty To Medicare Fraud
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that Richard Sokoloff, 70, of Guilford, waived his right to indictment and pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to one count of health care fraud.
June 25, 2013; U.S. Attorney; Northern District of West Virginia
West Virginia Doctor Convicted of Health Care Fraud
Wheeling, West Virginia - A North Central West Virginia doctor was convicted today of twenty-two felony charges related to health care fraud, bankruptcy fraud, and the filing of false tax returns.
June 25, 2013; U.S. Attorney; Southern District of Texas
Austin Doctor Charged with Defrauding Medicare of $2 Million in Less than Two Months
HOUSTON - Dr. Dennis B. Barson Jr., 40, and his medical clinic administrator, Dario Juarez, 53, have been charged in a 20-count indictment alleging a conspiracy to defraud Medicare of $2.1 million in less than two months, United States Attorney Kenneth Magidson announced today.
June 24, 2013; U.S. Attorney; Southern District of California
Owner of Medical Supply Company Sentenced To Prison for His Role in Million-Dollar Power Wheelchair Scams
United States Attorney Laura E. Duffy announced that Jose Melendez, the owner and operator of Oceanside Medical Services, was sentenced to 18 months in prison today for his involvement in a health care fraud conspiracy that resulted in over $1 million in false claims to the Medicare trust fund. Melendez was also ordered to pay $593,429.81 in restitution, and will be on supervised release for three years after completing his custodial sentence.
June 24, 2013; U.S. Attorney; Northern District of Georgia
Atlanta Doctor Convicted For Health Care Fraud, Tax Evasion and Money Laundering
ATLANTA - After a two-week trial, a federal jury has convicted Lawrence Eppelbaum, 54, of Roswell, Georgia on health care fraud, tax fraud and money laundering in relation to a scheme in which he illegally induced patients from all over the country to be treated at his medical clinic in Atlanta by providing free travel accommodations through a purported charitable entity that he controlled.
June 21, 2013; U.S. Attorney; District of Maine
Former Portland Podiatrist Sentenced on Drug and Health Care Fraud Charges
Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Dr. John B. Perry, 52, of Cumberland, was sentenced today in United States District Court by Judge George Singal to 8 years in prison for conspiracy, unlawful distribution of oxycodone and health care fraud. Perry pled guilty to the charges on December 4, 2012.
June 21, 2013; U.S. Attorney; Eastern District of Michigan
Detroit-Area Doctors Charged with Illegal Distribution of Prescription Drugs and Health Care Fraud
An indictment was unsealed today charging Dr. Hussein "Sam" Awada, 43, and Dr. Luis Collazo, 53, with the illegal distribution of prescription drugs and health care fraud, United States Attorney Barbara L. McQuade announced today.
June 20, 2013; U.S. Attorney; Western District of Washington
Lakewood Oncologist to Pay $3.1 Million to Settle Health Care Fraud Claims
Dr. Alfred H. Chan, an oncologist in Lakewood, Washington, and his family, have agreed to pay the United States $3.1 million to settle allegations that he and his wife defrauded federal health care programs by significantly and repeatedly overbilling for cancer treatment medications. From at least April 2006 through April 2009, the government contends that Dr. Chan and his wife Judy Chan intentionally inflated claims to Medicare, TRICARE, and other federal health care programs, resulting in a loss to the government estimated at over $1 million. Today's settlement represents a recovery of almost three times the estimated loss to federal health care programs.
June 20, 2013; U.S. Attorney; Southern District of Texas
Houston Man Arrested in Health Care Fraud Scheme
HOUSTON - Mathew U. Okorocha, 63, has been indicted on charges of conspiracy to commit health care fraud, United States Attorney Kenneth Magidson announced today. Okorocha, of Houston, joins Lawrence T. Tyler, 41, also of Houston, in a 10-count superseding indictment, returned June 12, 2013.
June 20, 2013; U.S. Attorney; Middle District of Florida
Straw Owner of Venice Physical Therapy Clinic Pleads Guilty to Conspiracy to Commit Health Care Fraud
TAMPA-United States Attorney Robert E. O'Neill announces that Roberto Fernandez Gonzalez (63, Naples) pleaded guilty today to conspiracy to commit health care fraud. Gonzalez faces a maximum penalty of 10 years in federal prison.
June 20, 2013; U.S. Attorney; District of Maryland
Employee Pleads Guilty To Theft of Government Property
Greenbelt, Maryland - Mary Michelle Thompson, age 42, of Glen Burnie, Maryland, pleaded guilty today to theft of government property in connection with her misuse of her government credit card. The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Elton Malone, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Special Investigations Branch.
June 19, 2013; U.S. Attorney; Western District of North Carolina
Charlotte Woman Sentenced To 5 Years in Prison for $650,000 Medicaid Fraud Scheme
CHARLOTTE, N.C. - Chief U.S. District Court Judge Frank D. Whitney sentenced a Charlotte woman on Tuesday, June 18, 2103, to serve 60 months in prison and two years under court supervision for defrauding Medicaid of $650,000, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Charlotte Elizabeth Garnes, 39, of Charlotte, was also ordered to pay $792,184.52 in restitution.
June 18, 2013; U.S. Attorney; Eastern District of New York
Brooklyn Licensed Home Health Care Services Agency Pays One Million Dollars to Settle Civil Fraud Claims That it Provided Unqualified Home Health Aides to Medicaid Recipients
The United States and New York State have entered into settlement agreements with Parkshore Home Health Care, LLC, d/b/a Renaissance Home Health Care, Inc. ("Renaissance"), a Brooklyn-based licensed home health care services agency. These settlements resolve allegations that Renaissance provided unqualified home health aides to home health agencies, who in turn sent these unqualified aides into the homes of Medicaid recipients throughout New York City and then billed the Medicaid program for their services. Under the terms of the agreements, Renaissance will pay a total of $1,000,000.
June 18, 2013; U.S. Attorney; Eastern District of Texas
Beaumont Orthodontist Guilty of Health Care Fraud Violations
BEAUMONT, Texas - A 70-year-old Beaumont orthodontist has pleaded guilty to health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
June 18, 2013; U.S. Attorney; Southern District of Texas
Ambulance Company Owner and Operator Heads to Federal Prison
HOUSTON - Julian Kimble, 48, has been handed a federal prison sentence following his convictions for conspiracy to commit health care fraud, conspiracy to commit money laundering and tax evasion, United States Attorney Kenneth Magidson announced today. Kimble pleaded guilty to these federal crimes on Nov. 29, 2011.
June 18, 2013; U.S. Attorney; Northern District of Georgia
Medical Business Owner Indicted for Medicaid Fraud
ATLANTA - Jennifer C. Alsdorf has been indicted on charges of health care fraud and wire fraud for filing over $500,000 in fraudulent claims with the Georgia Medicaid program.
June 17, 2013; U.S. Attorney; Eastern of Texas
Former Shelby County Couple Indicted for Health Care Fraud Violations
BEAUMONT, Texas - A Center, Texas, couple now living in Elgin, Texas, has been indicted and charged with health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. Bill Harvill, 59, and his wife, Cathy Harvill, 56, were indicted by a federal grand jury on Mar. 27, 2013, and charged with theft of government money. They were arrested on June 7, 2013, in Elgin, Texas, and appeared before U.S. Magistrate Zachary J. Hawthorn today for an initial appearance. According to the indictment, from January 2007 to June 2010, the Harvills submitted false and fraudulent claims to Medicare and Medicaid in order to receive more than $624,000 from the Department of Health and Human Services.
June 17, 2013; U.S. Department of Justice
Owner of Louisiana-based Health Care Company Sentenced in Texas to 97 Months in Prison in Connection with $6.7 Million Medicare Fraud Scheme
The owner and operator of a Louisiana-based durable medical equipment (DME) company was sentenced today to serve 97 months in prison for his role in a $6.7 million Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Kenneth Magidson of the Southern District of Texas; and Special Agent in Charge Mike Fields of the Dallas Regional Office of the U.S. Department of Health and Human Service's Office of the Inspector General
June 14, 2013; U.S. Attorney; Eastern District of New York
Former New York State Senate Majority Leader Pedro Espada, Jr. Sentenced To Five Years'
Imprisonment

Earlier today, Pedro Espada, Jr. was sentenced before Judge Frederic Block in U.S. District Court in Brooklyn, New York, to five years' imprisonment, to be followed by three years of supervised release, for theft of federal funds from Bronx-based non-profit healthcare clinics, and lying on his 2005 personal tax return. As part of that sentence, Judge Block ordered Espada to serve 100 hours of community service, restitution to the Internal Revenue Service in the amount of $118,531, restitution to the victims of his thefts in an amount to be determined, and forfeiture of $368,088. The court remanded Espada to the custody of the Bureau of Prisons. Espada is a former New York State Senator for the 33rd Senate District in the Bronx, who served as the New York State Senate Majority Leader from 2009 to 2010.
June 14, 2013; U.S. Attorney; District of Connecticut
Federal Jury Finds Brookfield Podiatrist Guilty of Medicare Fraud
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut; Susan J. Waddell, Special Agent in Charge of U.S. Health and Human Services, Office of Inspector General for New England; and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, today announced that a federal jury in Hartford has found Samir Zaky, 38, of Brookfield, guilty of 14 counts of health care fraud and 14 counts of making false statements relating to health care matters.
June 14, 2013; U.S. Attorney; District of Maryland
Hagerstown Pharmacist Pleads Guilty To Health Care Fraud for Improperly Billing Medicare and
Medicaid

Baltimore, Maryland - David Russo, age 62, of Hagerstown, Maryland pleaded guilty today to health care fraud in connection with a scheme to defraud Medicare and Medicaid by billing for prescriptions that Russo knew were not written for a legitimate medical purpose.
June 13, 2013; U.S. Attorney; Southern District of Florida
Former CEO of Miami Beach Community Health Center Sentenced in Six Million Dollar Scam
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, announced the sentencing of defendant Kathryn Abbate, 64, of Hollywood, FL, to 42 months in prison, to be followed by 3 years of supervised release.
June 12, 2013; U.S. Attorney; District of Massachusetts
Virginia Doctor Indicted for Perjury in Orthofix Investigation
BOSTON - A Virginia woman was charged today with making a false declaration to a grand jury. Ilene Terrell, 65, of Fredericksburg, Va., was indicted with making a false declaration to a grand jury. The indictment alleges that Terrell, a podiatrist, and representatives of Orthofix, Inc., manipulated patient medical records to induce Medicare to pay for claims for Orthofix bone growth stimulator medical devices that did not meet Medicare's payment guidelines. When Terrell was asked about these matters before the grand jury, she lied, claiming that she was not aware that any records had been manipulated.
June 12, 2013; U.S. Attorney; District of New Jersey
Internist Admits Taking Cash Kickbacks for Patient Referrals
NEWARK, N.J. - A Somerset County doctor practicing internal medicine at Newark Community Health Center, where she is the clinical director, today admitted receiving cash kickbacks for diagnostic testing referrals of her patients, U.S. Attorney Paul J. Fishman announced.
June 12, 2013; U.S. Attorney; Western District of Louisiana
Shreveport Doctor Sentenced For Health Care Fraud
SHREVEPORT, La. - United States Attorney Stephanie A. Finley announced that Edozie Chukwudinma Okereke, 57, of Shreveport, was sentenced Monday by U.S. District Judge S. Maurice Hicks Jr. to 21 months in federal prison with three years' supervised release for health care fraud. Okereke was also ordered to pay $679,836 in restitution to Medicare.
June 12, 2013; U.S. Attorney; District of Minnesota
Apple Valley Woman Sentenced for Defrauding a Home Health Care Company and Medica
MINNEAPOLIS-Earlier today in federal court, an Apple Valley woman was sentenced for defrauding both her employer and Medica. United States District Court Judge David S. Doty sentenced Lori Jo Mueller, age 48, to 51 months on one count of wire fraud and one count of health care fraud in connection to the crime. Mueller was charged on January 9, 2013, and pleaded guilty on February 4, 2013. In her plea agreement, Mueller admitted that from June of 2006 through June of 2012, she embezzled approximately $840,000 from Edelweiss Home Health Care, using the funds for her personal use.
June 11, 2013; U.S. Attorney; Eastern District of Pennsylvania
Doctor Convicted of Running Pill Mill and Contributing to a Death
Philadelphia - A federal jury, today, found Dr. Norman Werther, 74, of Ft. Washington, PA, guilty of more than 300 counts, including distribution of a controlled substance resulting in death. In addition to the charge of distribution resulting in death, the jury found Werther guilty of 184 counts of illegally distributing oxycodone, 116 counts of money laundering, six counts of conspiracy to distribute controlled substances, and one count of maintaining a drug-involved premises.
June 11, 2013; U.S. Attorney; Northern District of Ohio
Cleveland Man Sentenced To 12 Years In Prison For Leading Ring That Obtained Blank Prescriptions, Forged Them And Sold The Painkillers
A Cleveland man was sentenced to 12 years in prison for leading a ring that obtained blank prescription pads that were used to fraudulently obtain thousands of prescription painkiller pills, law enforcement officials announced today. Louis Eppinger, 53, led a conspiracy that forged prescriptions for Oxycontin and Percocet pills, hired people to have them filled at pharmacies throughout the region, then sold the pills on the street, according to court documents. He previously pleaded guilty to conspiracy to possess with intent to distribute Oxycodone, health care fraud and aggravated identity theft.
June 10, 2013; U.S. Department of Justice
Four Former WellCare Executives Found Guilty in Florida
A federal jury in Tampa found four former executives of WellCare Health Plans Inc., a health maintenance organization (HMO) operator, guilty of various charges, including health care fraud, making false statements relating to health care matters and making false statements to a law enforcement officer, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney Robert E. O'Neill of the Middle District of Florida and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations Miami office.
June 10, 2013; U.S. Attorney; District of New Jersey
President of New Jersey Clinical Laboratory, Six Salesmen Admit Bribing Doctors for More Than $100 Million in Test Referrals
NEWARK, N.J. - The president of Parsippany, N.J.-based Biodiagnostic Laboratory Services LLC (BLS), three BLS employees and three associates admitted today to a conspiracy in which millions of dollars in bribes were paid to physicians over a number of years in exchange for blood sample referrals worth more than $100 million to the company, U.S. Attorney Paul J. Fishman announced.
June 6, 2013; U.S. Attorney; Northern District of Iowa
Cedar Rapids Dentist to Pay $100,000 to Resolve False Claims Act Allegations
Dennis Schuller, D.D.S., a Cedar Rapids dentist, has agreed to pay $100,000 to resolve allegations that he violated the False Claims Act by improperly billing the Medicaid system for certain x-rays and exams, medically unnecessary procedures, and other medically unnecessary items.
June 6, 2013; U.S. Department of Justice
Michigan Doctor Sentenced for Role in Medicare Fraud Scheme
Lansing-area resident Dr. Paul Kelly was sentenced to 18 months in prison today for his role in a $13.8 million Medicare fraud scheme. Acting Assistant Attorney General Mythili Raman of the Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Robert D. Foley III of the FBI's Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services, Office of Inspector General's Chicago Regional Office, made the announcement.
June 6, 2013; U.S. Attorney; Southern District of Texas
Stafford DME Owner Heads to Federal Prison for Health Care Fraud and Identity Theft
HOUSTON - Abdul Waheed Alex Shittu, 55, a naturalized United States citizen from the Federal Republic of Nigeria, has been sentenced to 81 months in federal prison following his convictions of conspiracy to commit health care fraud and aggravated identity theft, United States Attorney Kenneth Magidson announced today.
June 5, 2013; U.S. Attorney; Eastern District of Kentucky
London Physician Pleads Guilty to Health Care Fraud Charges in First Case of its Kind in Kentucky
FRANKFORT-A London, Kentucky cardiologist pleaded guilty to charges that he falsely recorded the severity of patients' illnesses in order to receive payment for numerous heart procedures. Sandesh Rajaram Patil, 51, a former cardiologist at St. Joseph's Hospital in London, admitted Tuesday in Frankfort to making false statements regarding the placement of heart stents. Stents are metal tubes surgically inserted into a patient's arteries in order to improve blood flow.
June 5, 2013; U.S. Attorney; District of South Dakota
California Man Sentenced for Failure to Pay Child Support
United States Attorney Brendan V. Johnson announced that a Livermore, California man charged with Failure to Pay Legal Child Support was sentenced on May 31, 2013 by U.S. Magistrate Court Judge John E. Simko.
June 5, 2013; U.S. Attorney; Northern District of California
San Jose Woman Sentenced To 13 Months in Prison for Role in Health Care Fraud Scheme
SAN JOSE - Gurinder Mand was sentenced today to 13 months in prison and ordered to pay $254,906.20 in restitution for her involvement in a health care fraud scheme operated out of a San Jose pharmacy, United States Attorney Melinda Haag announced.
June 5, 2013; U.S. Attorney; District of Connecticut
Substance Abuse Counselor Sentenced To Two Years in Federal Prison for Defrauding
Medicaid Program

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that Alan Emmett Bradley, 57, formerly of Norwalk, Conn., and Ocoee, Fla., was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 24 months of imprisonment, followed by two years of supervised release, for defrauding Connecticut's Medicaid program. Bradley also was ordered to pay $151,898.75 in restitution.
June 3, 2013; U.S. Attorney; District of Connecticut
Stealth Dental Clinic Operator Pleads Guilty To Health Care Fraud and Tax Evasion Offenses
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut; Susan J. Waddell, Special Agent in Charge of U.S. Health and Human Services, Office of Inspector General for New England, William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that Gary F. Anusavice, also known as "Gary Andrews," "Gary Andrus" and "Gary Francis," 60, of North Kingstown, R.I., pleaded guilty today before United States Magistrate Judge William I. Garfinkel in Bridgeport to health care fraud and tax evasion offenses stemming from his involvement in a $20 million Medicaid fraud scheme.
June 5, 2013; U.S. Attorney; District of Maryland
Lenny Cain Convicted in Oxycodone Conspiracy
Baltimore, Maryland - A federal jury today convicted Lenny Cain, age 36, of Baltimore, Maryland, for conspiracy to distribute and possess with intent to distribute oxycodone, and for possession with intent to distribute oxycodone. The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Anne Arundel County Police Acting Chief Lt. Colonel Pamela R. Davis; and Howard County Police Chief William McMahon.
June 3, 2013; U.S. Attorney; Eastern District of Pennsylvania
Doctor Convicted In Kickback Scheme Involving A Philadelphia Hospice
PHILADELPHIA - A federal jury has returned guilty verdicts against Eugene Goldman, M.D., 55, of Philadelphia, on one count of conspiring to violate the anti-kickback statute and four counts of violating the anti-kickback statute in relation to his role in a kickback scheme arising from his employment as the Medical Director at Home Care Hospice Inc. (HCH). U.S. District Court Judge Eduardo Robreno scheduled a sentencing hearing for September 9, 2013.
June 3, 2013; U.S. Attorney; Southern District of Texas
Local Physicians Sentenced Again - Must Pay More than $37 Million in Restitution
HOUSTON - Drs. Arun and Kiran Sharma, two local physicians previously sentenced for defrauding Medicare, Medicaid and more than a dozen private insurers, have appeared in federal court for a resentencing hearing on restitution and forfeiture issues, United States Attorney Kenneth Magidson announced today.

May 2013

May 31, 2013; U.S. Attorney; Northern District of Texas
Parkland Memorial Hospital pays nearly $1.4 Million to Resolve Allegations it Submitted Improper Physical Medicine and Rehabilitation Claims
DALLAS - Dallas County Hospital District d/b/a Parkland Health and Hospital System (Parkland) settled allegations it violated the civil False Claims Act and Texas Medicaid Fraud Prevention Act, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. The U.S. and Texas contend Parkland caused unallowable and "upcoded" physician consultations and other services to be submitted to Medicare and Texas Medicaid for certain physical medicine and rehabilitation (PMR) related items and services between 2007 and 2011. Parkland fully cooperated with the investigation, and by settling, did not admit any wrong-doing or liability.
May 31, 2013; U.S. Attorney; Middle District of Tennessee
Owners of Murfreesboro Ambulance Service Found Guilty of 42 Counts of Conspiracy, Medicare Fraud, Wire Fraud, and Aggravated Identity Theft
Woody Medlock, Sr., 69, and his wife, Kathy Medlock, 57, of Murfreesboro, Tennessee, former owners of Murfreesboro Ambulance Service, were convicted by a jury on charges of conspiracy, Medicare fraud, wire fraud, and aggravated identity theft, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee. A third defendant, Woody ("Bubba") Medlock, Jr., was acquitted of similar charges.
May 29, 2013; U.S. Attorney; District of Nevada
Woman Sentenced To Over Four Years in Prison for Defrauding Medicare of $11 Million in Fraudulent Billing Scheme
LAS VEGAS, Nev. - A woman who defrauded the Medicare program of $11.1 million in a fraudulent medical equipment billing scheme, was sentenced today to 51 months in prison, three years of supervised release, and criminal forfeiture of $11.1 million in assets, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
May 29, 2013; U.S. Attorney; Northern District of Texas
Owner of a Dallas Medical Equipment Supply Company is sentenced to 30 Months in Federal Prison on Health Care Fraud Conviction
DALLAS - Olalekan Sorunke, 40, of Rowlett, Texas, was sentenced today by U.S. District Judge Jorge A. Solis to 30 months in federal prison and ordered to pay $691,175 in restitution, following his guilty plea in February 2013 to one count of health care fraud, stemming from the operation of his business, Lincoln Medical Supply, Inc. (Lincoln), in Dallas. Judge Solis ordered that Sorunke surrender to the Bureau of Prisons on July 10, 2013. Today's announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
May 28, 2013; U.S. Attorney; Western District of North Carolina
Charlotte Man Arrested And Charged With Stealing Identities Of Children And Clinicians To Commit Medicaid Fraud
CHARLOTTE, N.C. - A Charlotte man charged with defrauding Medicaid of at least $450,000 and stealing the identities of children and clinicians to commit the fraud was arrested in Charlotte today, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
May 28, 2013; U.S. Attorney; Western District of Oklahoma
Oklahoma City Doctor Pleads Guilty to Defrauding Medicaid
Oklahoma City, Oklahoma - AMAR NATH BHANDRY, M.D., 53, of Oklahoma City, has pled guilty to committing health care fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
May 24, 2013; U.S. Attorney; Middle District of Florida
Pharmacist and Former Owner of St. George Pharmacy Pleads Guilty To Conspiracy to Commit Health Care Fraud
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Samuel Wahba (45, Palm Harbor) pleaded guilty yesterday to conspiracy to commit health care fraud, lying to a federal agency, making false claims to a federal health care program, and concealing his exclusion from all federal health care programs with the intent to fraudulently seek payment from such programs. Wahba faces a maximum penalty of five years in federal prison for the charge.
May 24, 2013; U.S. Attorney; Western District of Oklahoma
Former Employee of Assisted Living Center Sentenced to 37 Months in Prison for Fraud
Oklahoma City, Oklahoma - Yesterday, JAMES LESTER HAUSAM, JR., 29, of Oklahoma City, Oklahoma, was sentenced to serve 37 months in prison in connection with a scheme to steal money from a resident at a metro retirement home, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
May 24, 2013; U.S. Attorney; Eastern District of Louisiana
Jerayr Rostamian and His Company Sentenced for Structuring Financial Transactions to Avoid Reporting Requirements and Conspiracy to Commit Money Laundering
Dana J. Boente, U. S. Attorney; Michael Anderson, Special Agent in Charge, Federal Bureau of Investigation; Mike Fields, Department of Health and Human Services, Office of Inspector General; Fred Duhy, Louisiana Department of Justice's Medicaid Fraud Control Unit, and Gabriel Grchan, Special Agent in Charge, Internal Revenue Service-Criminal Investigation announced today that JERAYR ROSTAMIAN, age 50, from Northridge, California, was sentenced today to 40 months incarceration and fined $250,000 by U. S. District Judge Lance M. Africk after previously pleading guilty to structuring monetary transactions to avoid reporting requirements. In addition to the term of imprisonment, Judge Africk ordered that ROSTAMIAN be placed on three years of supervised release following his term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of his supervised release. The corporation ROSTAMIAN owned, MED-TECH TECHNOLOGIES, INC., was sentenced today to five years probation and restitution in the amount of $3,722,480 to be paid to Medicare and Medicaid. MED-TECH TECHNOLOGIES, INC. previously plead guilty to a conspiracy to commit money laundering. Additionally, Judge Africk ordered MED-TECH's assets forfeited.
May 24, 2013; U.S. Department of Justice
ISTA Pharmaceuticals Inc. Pleads Guilty to Federal Felony Charges; Will Pay $33.5 Million to Resolve Criminal Liability and False Claims Act Allegations
Pharmaceutical company ISTA Pharmaceuticals, Inc. pled guilty earlier today to conspiracy to introduce a misbranded drug into interstate commerce and conspiracy to pay illegal remuneration in violation of the Federal Anti-Kickback Statute, the Justice Department announced today. U.S. District Court Judge Richard J. Arcara accepted ISTA's guilty pleas. The guilty pleas are part of a global settlement with the United States in which ISTA agreed to pay $33.5 million to resolve criminal and civil liability arising from its marketing, distribution and sale of its drug Xibrom.
May 22, 2013; U.S. Department of Justice
Health Care Clinic Director Sentenced in Miami to 111 Months for His Role in $63 Million Health Care Fraud Scheme
A former health care clinic director and licensed therapist was sentenced in Miami to 111 months in prison today in connection with a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc.
May 22, 2013; U.S. Attorney; District of Nevada
Las Vegas Urology Practice Agrees To Pay U.S. Department Of Justice $1 Million to Settle Civil Health Care Fraud Allegations
Las Vegas - A local urology practice, Las Vegas Urology, LLP, has agreed to pay the United States Department of Justice $1 million to resolve civil allegations that it improperly billed Medicare, TRICARE, and other federal health care insurance programs, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
May 21, 2013; U.S. Attorney; District of Kansas
Pharmacist's Plea: Kidney Dialysis Patients Received Misbranded Drugs
Topeka, Kan. - A pharmacist from Tennessee has pleaded guilty to substituting a cheaper drug imported from China for the iron sucrose that the Federal Drug Administration has approved for kidney dialysis patients, U.S. Attorney Barry Grissom said today. The misbranded drug was administered to kidney dialysis patients in Kansas.
May 21, 2013; U.S. Attorney; Southern District of Illinois
Personal Assistant and Beneficiary Sentenced for Fraud on the Medicaid Home Services Program
On May 21, 2013, Daniel Geary, 39, of Caseyville, IL, was sentenced in District Court in East St. Louis, IL, on one count of False Statement related to Health Care Matters, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
May 21, 2013; U.S. Department of Justice
U.S. Renal Care to Pay $7.3 Million to Resolve False Claims Act Allegations
U.S. Renal Care, headquartered in Plano, Texas, has agreed to pay $7.3 million to resolve allegations that Dialysis Corporation of America (DCA) violated the False Claims Act by submitting false claims to the Medicare program for more Epogen than was actually administered to dialysis patients at DCA facilities, the Justice Department announced today. U.S. Renal Care, which acquired DCA in June 2010, owns and operates more than 100 freestanding outpatient dialysis facilities throughout the United States.
May 21, 2013; U.S. Attorney; Eastern District of New York
Most Wanted "Deadbeat Parent" Sentenced to 31 Months' Imprisonment for Fleeing to Evade over $1 Million in Child Support Obligations
Earlier today, at the federal courthouse in Central Islip, New York, Robert D. Sand, the nation's "Most Wanted Deadbeat Parent" according to law enforcement, was sentenced to 31 months in prison followed by one year of supervised release by United States District Judge Joseph F. Bianco. Sand previously pleaded guilty to two counts of traveling in interstate and foreign commerce with the intent to evade court ordered child support obligations totaling over $1 million including interest and penalties. Sand was also sentenced to restitution in the amount of his unpaid support obligations - $903,789.
May 20, 2013; U.S. Attorney; District of Maryland
Laurel Man Sentenced To 20 Years in Prison for Producing Child Pornography
Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Frank Alan Klukosky, age 43, of Laurel, Maryland, today to 20 years in prison, followed by lifetime supervised release, for producing child pornography. Chief Judge Chasanow also ordered that upon his release from prison Klukosky must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act
May 16, 2013; U.S. Attorney: District of South Carolina
$1.2 Million Settlement With Durable Medical Equipment Company, International Rehabilitative Sciences D/B/A RS Medical Resolves South Carolina False Claims Act Lawsuit
Columbia, South Carolina - United States Attorney Bill Nettles announced that the government has reached a settlement with RS Medical for $1,214,665.00 to resolve claims that employees of RS Medical in South Carolina and Illinois submitted claims to Medicare for Transcutaneous Electrical Nerve Stimulation (TENS) Units, conductive garments for TENS Units, back braces, cervical traction systems, muscle stimulators, and custom-fit knee braces (collectively "the durable medical equipment") that (1) lacked physician orders; (2) lacked the required supporting documentation; and/or (3) lacked medical necessity.
May 14, 2013; U.S. Attorney; District of Massachusetts
Orthofix Territory Manager Convicted for Committing Health Care Fraud and Paying Kickbacks
BOSTON - A former Orthofix territory manager was convicted today for health care fraud and paying kickbacks. Hunter A. Rigsby, 33, of Knoxville, Tenn., pleaded guilty before U.S. District Judge F. Dennis Saylor IV to health care fraud and paying kickbacks. Rigsby was a territory manager for Orthofix, Inc., a company that sold bone growth stimulator medical devices. Bone growth stimulators are used by patients who have broken bones or spinal fusions that are not healing properly.
May 14, 2013; U.S. Attorney; Central District of California
Los Angeles-Area Residents Accused of Attempting to Bilk Medicare of $22 Million Arrested as Part of Nationwide Crackdown
LOS ANGELES-Twelve Los Angeles-area residents-including California's second-largest biller for chiropractic services, a physician's assistant, and owners of durable medical equipment and ambulance companies-were taken into custody today in relation to seven criminal cases that allege they cumulatively submitted more than $22 million in false billings to Medicare.
May 14, 2013; U.S. Attorney; Southern District of Florida
Twenty-Four 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, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service, Miami Field Office, and Michael J. DePalma, Acting Special in Charge, Internal Revenue Service, Criminal Investigation, announced that twenty-four (24) South Florida residents were charged for their alleged participation in various schemes to defraud Medicare out of more than $45,299,935 million. The charges in South Florida are part of a nationwide takedown by Medicare Fraud Strike Force operations in eight cities that resulted in charges against 89 individuals, including doctors, nurses and other licensed professionals, for their alleged participation in Medicare fraud schemes involving approximately $223 million in false billings.
May 14, 2013; U.S. Department of Justice
Community Health Center Program Coordinator Sentenced to 70 Months for Role in $63 Million Fraud Scheme
WASHINGTON - A former program coordinator at the defunct health provider Health Care Solutions Network Inc. (HCSN) was sentenced in Miami to 70 months in prison today for her role in a $63 million fraud scheme.
May 14, 2013; U.S. Attorney; Eastern District of New York
Two Doctors, Including a Psychiatrist for the U.S. Department of Veterans Affairs, and Two Others Charged in Brooklyn as Part of Nationwide Medicare Strike Force Initiative
Four individuals, including two doctors, have been charged for their alleged participation in two separate schemes that falsely billed the Medicare and Medicaid programs for more than $17 million. The charges filed in Brooklyn, New York, are part of a nationwide takedown by the Medicare Fraud Strike Force operations that led to charges against 89 individuals for their alleged participation in schemes to collectively submit approximately $223 million in fraudulent claims.
May 14, 2013; U.S. Attorney; Northern District of Illinois
Federal Medicare Fraud Strike Force Charges Chicago-Area Defendants with Defrauding Medicare and Other Health Insurers
Chicago-Two area physicians and three health clinic co-owners are among seven defendants charged here with engaging in five separate, unrelated health care fraud schemes to defraud the Medicare program and/or private health insurers of millions of dollars, federal law enforcement officials announced today.
May 14, 2013; U.S. Attorney; Eastern District of Pennsylvania
Leader in Philadelphia Ambulance Scam Sentenced To 92 Months in Prison
PHILADELPHIA - William Hlushmanuk, a/k/a "Bill Le," 35, of Philadelphia, was sentenced today to 92 months in prison for his participation in a health care fraud conspiracy involving ambulance services that were not medically necessary.
May 14, 2013; U.S. Department of Justice & Department of Health and Human Services
Medicare Fraud Strike Force Charges 89 Individuals for Approximately $223 Million in False Billing
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 eight cities has resulted in charges against 89 individuals, including doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $223 million in false billings.
May 13, 2013; U.S. Attorney; Middle District of Tennessee
Celina Pharmacist Sentenced In Federal Court
William Lester Donaldson, 53, of Celina, Tennessee was sentenced on May 10, 2013, by Chief United States District Judge William J. Haynes, Jr., to serve 15 months in prison, followed by 3 years of supervised release and a fine of $25,000 for possessing Hydrocodone with the intent to distribute, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
May 13, 2013; U.S. Attorney; Eastern District of Kentucky
Somerset Optometrist and Eye Care Group Sued for Medicare and Medicaid Fraud
The U.S. Attorney's Office filed a lawsuit today against a Somerset optometrist and his practice group, alleging that Dr. Philip Robinson and Associates in Eye Care P.S.C., defrauded the Medicare and Medicaid programs.
May 13, 2013; U.S. Department of Justice
C.R. Bard Inc. to Pay U.S. $48.26 Million to Resolve False Claims Act Claims
C.R. Bard Inc. has agreed to pay the United States $48.26 million to resolve claims that it knowingly caused false claims to be submitted to the Medicare program for brachytherapy seeds used to treat prostate cancer in violation of the False Claims Act. Bard is a New Jersey based corporation that develops, manufacturers, and markets medical products used for a variety of conditions, including prostate cancer.
May 13, 2013; U.S. Department of Justice
Generic Drug Manufacturer Ranbaxy Pleads Guilty and Agrees to pay $500 Million to Resolve False Claims Allegations, cGMP Violations and False Statements to the FDA
In the largest drug safety settlement to date with a generic drug manufacturer, Ranbaxy USA Inc., a subsidiary of Indian generic pharmaceutical manufacturer Ranbaxy Laboratories Limited, pleaded guilty today to felony charges relating to the manufacture and distribution of certain adulterated drugs made at two of Ranbaxy's manufacturing facilities in India, the Justice Department announced today. Ranbaxy also agreed to pay a criminal fine and forfeiture totaling $150 million and to settle civil claims under the False Claims Act and related State laws for $350 million.
May 13, 2013; U.S. Department of Justice
Detroit-Area Clinic Owner Sentenced to 40 Months in Prison for Role in $19 Million Health Care Fraud Scheme
A Detroit-area adult day care center owner was sentenced today to serve 40 months in prison for billing for unnecessary psychotherapy services, or services that were not provided, as part of a health care fraud conspiracy which led to more than $19 million in fraudulent Medicare billings.
May 13, 2013; U.S. Department of Justice
Detroit Area Home Health Agency Owner Sentenced to 60 Months for Role in $13 Million Health Care Fraud Scheme
A Detroit-area home health care agency owner was sentenced today to 60 months in prison for causing the submission of over $1 million in false and fraudulent billing to Medicare as part of a $13.8 million health care fraud conspiracy.
May 13, 2013; U.S. Attorney; Southern District of Texas
Two Area Women Charged with Submitting Fraudulent Bills for Home Health Services
CORPUS CHRISTI, Texas - Sylvia Salinas Ramirez, of Driscoll, and Debra Jean Velasquez, of Robstown, have surrendered to authorities following the return of an indictment alleging they perpetrated a scheme to defraud the Texas Medicaid program through fraudulent home health billings, United States Attorney Kenneth Magidson announced today along with Texas Attorney General Greg Abbott.
May 10, 2013; U.S. Attorney; Southern District of Texas
Former Nigerian Fugitive Heads to Prison in Multi-Million Dollar Fraud Scheme
Houston - Godwin Chiedo Nzeocha, 56, a naturalized United States citizen originally from the Federal Republic of Nigeria, has been sentenced to 109 months in federal prison for his role in the multi-million dollar City Nursing health care fraud scheme, United States Attorney Kenneth Magidson announced today.
May 10, 2013; U.S. Attorney; Northern District of Ohio
Medina Chiropractor Sentenced To 2 1/2 Years in Prison for Health Care Fraud
A Medina chiropractor was sentenced to 30 months in prison for overbilling Medicare and insurance companies more than $1.8 million for medical equipment and treatment that were not medically necessary, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
May 9, 2013; U.S. Attorney; Middles District of Georgia
Health Care Fraud and Money Laundering
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Christine Rahl, age 46, a resident of Social Circle, Georgia, entered a plea of guilty today to a multi-count Information before the Honorable C. Ashley Royal, United States District Judge in Macon, Georgia. Count One charged Ms. Rahl with Embezzlement in Connection with Health Care, in violation of Title 18 United States Code, Section 669. Counts Two through Five charged Ms. Rahl with Money Laundering, in violation of Title 18 United States Code, Section 1957.
May 9, 2013; U.S. Attorney; Middle District of Florida
South Bay Man Sentenced To More Than 2 Years in Prison for Stealing Government Money in Tax Fraud Scheme
Tampa, FL - U.S. District Judge Mary S. Scriven sentenced Larry Lee Northern, Jr. to 32 months in federal prison for theft of government funds and aggravated identity theft. Northern pleaded guilty on January 19, 2013.
May 8, 2013; U.S. Department of Justice
Administrator and Employee of Miami Home Health Companies Pleads Guilty for Role in $74 Million Health Care Fraud Scheme
Washington - A Miami resident who was an administrator of a home health care company and was the employee of another home health care company pleaded guilty today for her participation in a $74 million home health Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations Miami Office.
May 8, 2013; U.S. Department of Justice
Clinic Owners Sentenced for Roles in $13.3 Million Medicare Fraud Scheme
WASHINGTON-Miami residents Raymond Arias, 42, and his wife, Emelitza Arias, 25, have been sentenced in Detroit to 100 months and 12 months in prison, respectively, for their participation in a $13.3 million Medicare fraud scheme.
May 7 2013; U.S. Attorney; Middle District of Tennessee
Behavioral Analyst Charged With Health Care Fraud
Jenny Lynn Hall, formerly known as Jenny Lynn Unterstein, 37, of Smithville, Tenn., was charged with health care fraud in a one-count criminal information filed today in U.S. District Court, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
May 7, 2013; U.S. Department of Justice
Health Care Clinic Director Pleads Guilty in Miami for Role in $63 Million Fraud Scheme
Washington - A former health care clinic director and licensed clinical psychologist pleaded guilty today in connection with a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN), announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations Miami office.
May 7, 2013; U.S. Attorney; Western District of North Carolina
Leader of Medicaid Fraud Conspiracy Sentenced To 40 Months in Prison for $336,000 Healthcare Fraud & Money Laundering
Statesville, N.C. - An Alleghany Co. woman was sentenced on Monday, May 6, 2013 to serve 40 months in prison and two years of supervised release for health care fraud conspiracy and money laundering, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
May 6, 2013; U.S. Attorney; District of Minnesota
North Oaks Couple Sentenced for Health-Care Fraud
Minneapolis-Earlier today in federal court in Minneapolis, a North Oaks couple was sentenced for committing health-care fraud, specifically making false statements to garner, county, state, and federal benefits and assistance for their disabled children. James N. Hood, age 69, was sentenced to 42 months in federal prison and ordered to pay a $200,000 fine on one count of mail fraud, one count of health care fraud, and one count of theft of public money. His wife, Cynthia Marsalis Hood, age 55, was ordered to serve three years of probation and pay a $300,000 fine on one count of mail fraud and one count of making a false statement for use in determining rights to Social Security benefits. The couple was also ordered to pay restitution in the total amount of $483,312.82 to the agencies victimized by this crime. The Hoods were charged on October 1, 2012, and pleaded guilty on October 24, 2012.
May 6, 2013; U.S. Department of Justice
Patient Recruiter of Miami Home Health Company Sentenced to 37 Months in Prison for Role in $20 Million Health Care Fraud Scheme
A patient recruiter for a Miami health care company was sentenced today to serve 37 months in prison for his participation in a $20 million Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.
May 6, 2013; U.S. Attorney; Middle District of North Carolina
Dentist Sentenced - Medicaid Fraud Nets Prison Term, Fine And Restitution
GREENSBORO, N.C. - Sassan Bassiri, DDS, age 46, has been sentenced to five months in prison followed by five months home confinement, announced Ripley Rand, United States Attorney for the Middle District of North Carolina.
May 3, 2013; U.S. Department of Justice
Adventist Health Pays United States and State of California $14.1 Million to Resolve False Claims Act Allegations
Adventist Health System/West, dba Adventist Health, and its affiliated hospital White Memorial Medical Center have agreed to pay the United States and the state of California $14.1 million to settle claims that they violated the False Claims Act, the Justice Department announced today. Adventist Health is headquartered in Roseville, Calif., in the Eastern District of California, and operates 19 hospitals and over 150 clinics in California, Hawaii, Oregon and Washington. White Memorial Medical Center is a teaching hospital located in Los Angeles.
May 3, 2013; U.S. Department of Justice
Leader of $29.1 Million Medicare Fraud Scheme Pleads Guilty in Detroit
The mastermind of a $29.1 million Medicare fraud scheme involving approximately 30 purported medical clinics pleaded guilty today in Detroit for his role in the scheme.
May 2, 2013; U.S. Attorney; Central District of California
Operator of San Fernando Valley Medical Clinics Sentenced to 14 Years in Federal Prison for Illegally Distributing Oxycodone
Santa Ana, California - A woman who operated four medical clinics in Reseda and Northridge was sentenced today to 14 years in federal prison for distributing the powerful and widely abused prescription narcotic oxycodone.
May 2, 2013; U.S. Department of Justice
United States Files False Claims Act Lawsuit against the Largest For-Profit Hospice Chain in the United States
The United States has filed suit against Chemed Corporation and various wholly owned hospice subsidiaries, including Vitas Hospice Services LLC and Vitas Healthcare Corporation, alleging false Medicare billings for hospice services, the Justice Department announced today. Vitas is the largest for-profit hospice chain in the United States and provides hospice services to patients in 18 states (Alabama, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Kansas, Michigan, Missouri, New Jersey, Ohio, Pennsylvania, Texas, Virginia and Wisconsin) and the District of Columbia. Chemed, which is based in Cincinnati, Ohio and also owns Roto-Rooter Group Inc., a national drain cleaning and plumbing service company, acquired Vitas in 2004.
May 2, 2013; U.S. Attorney; District of New Jersey
Two Former Employees of Clinical Laboratory Admit Roles in Multimillion-Dollar Cash-For-Referral Scheme
Newark, N.J. - Two former sales representatives of Biodiagnostic Laboratory Services LLC (BLS) admitted today to conspiring with others to bribe doctors to refer patient blood samples to BLS, U.S. Attorney Paul J. Fishman announced. Peter Breihof, 42, of Nutley, N.J., and William Dailey, 41, of Wall, N.J., both pleaded guilty before U.S. District Judge Stanley R. Chesler to Informations charging them with conspiracy to violate the Anti-Kickback Statute and the Federal Travel Act.
May 1, 2013; U.S. Attorney; Middle District of Pennsylvania
Harrisburg Ambulance Company Pleads Guilty to Submitting False Statements to Medicare
The United States Attorney's Office for the Middle District of Pennsylvania announced today that a Harrisburg-based ambulance company has pleaded guilty to multiple False Statement charges related to Medicare fraud. Advantage Medical Transport, Inc, headquartered at 733 Fire House Lane, Harrisburg, pleaded guilty before U.S. District Court Judge Christopher C. Conner today to 14 Counts of False Statements in Health Care Matters, 18 USC 1035. Each Count is punishable by up to as much as a $500,000 fine. Serge Sivchuk, age 27, the sole owner of Advantage, appeared in court and entered the guilty pleas on behalf of the Corporation. The Government estimated the total loss to Medicare as a result of the fraud was approximately $740,000.
May 1, 2013; U.S. Attorney; District of Kansas
Grand Jury Returns Indictment Charging Manhattan Physician with Unlawfully Distributing Prescription Drugs
Topeka, Kan. - A grand jury has returned an indictment charging a physician in Manhattan, Kan., with unlawfully distributing prescription drugs, U.S. Attorney Barry Grissom said today. Physician Michael Schuster, 53, who operates Manhattan Pain and Spine in Manhattan, Kan., is charged with four counts: One count of conspiracy to illegally distribute controlled substances, one count of unlawful distribution of controlled substances, one count of unlawfully distributing controlled substances to a person under 21 years old and one count of maintaining a premises in furtherance of unlawful drug distribution.
May 1, 2013; U.S. Department of Justice
Montana Hospitals Agree to Pay $3.95 Million to Resolve Alleged False Claims Act and Stark Law Violations
St. Vincent Healthcare, a hospital located in Billings, Mont., and Holy Rosary Healthcare, a hospital located in Miles City, Mont., have agreed to pay $3.95 million plus interest to resolve allegations that they violated the Stark Law and the False Claims Act by improperly providing incentive pay to physicians that made referrals to the hospitals, the Justice Department announced today.

April 2013

April 30, 2013; U.S. Attorney; Northern District of California
California Rural Indian Health Board Inc. Settles False Claims Act Lawsuit
San Francisco - The California Rural Indian Health Board Inc. ("CRIHB"), a nontribal entity and grantee of the U.S. Department of Health and Human Services ("HHS"), Substance Abuse and Mental Health Services Administration ("SAMHSA"), agreed to pay the United States $532,000, and to be terminated from an existing SAMHSA grant, thereby relinquishing funds valued at over $4.6 million, announced United States Attorney Melinda Haag. In addition, CRIHB will be subject to certain administrative conditions imposed by SAMHSA, and will not be eligible to apply for any new SAMHSA funding opportunities for two federal fiscal years.
April 29, 2013; U.S. Attorney; Southern District of Georgia
Armenian National Pleads Guilty In $1.5 Million Health Care Fraud and Money Laundering Scheme
Brunswick, GA: Avetik Moskovian, 46, an Armenian National, plead guilty Tuesday before Chief United States District Court Judge Lisa Godbey Wood to his role in a conspiracy launder approximately $1.5 million in funds defrauded from Medicare through a phony medical business in Brunswick, Georgia.
April 26, 2013; U.S. Department of Justice
United States Files Complaint against Novartis Pharmaceuticals Corp. for Allegedly Paying Kickbacks to Doctors in Exchange for Prescribing Its Drugs
The Justice Department announced today that the United States has filed a second civil false claims lawsuit against Novartis Pharmaceuticals Corp. involving alleged kickbacks paid by the company to health care providers. The government's complaint seeks damages and civil penalties under the False Claims Act and under the common law for paying kickbacks to doctors to induce them to prescribe Novartis pharmaceutical products that were reimbursed by federal health care programs. The lawsuit alleges that the payments violated the Anti-Kickback Statute and, as a result of Novartis's unlawful conduct, the government paid false claims for reimbursement for Novartis pharmaceutical products.
April 25, 2013; U.S. Attorney; Southern District of Florida
Florida Man Sentenced to 55 Months Imprisonment for Role in Health Care-Fraud and Money Remitting Ring
Wifredo A. Ferrer, United States Attorney of the Southern District of Florida, Addy Villanueva, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced that Oscar Sanchez, 47, of Naples, was sentenced to 55 months imprisonment, 20 months home confinement, and three years of supervised release for his role in a money laundering conspiracy, in violation of Title 18, United States Code, Section 1956(h). In addition, U.S. District Judge Paul Huck entered a forfeiture order that consisted of a personal money judgment against Sanchez in the amount of $10,000,000. In partial satisfaction of that judgment, Sanchez will be forfeiting to the United States four properties worth about $635,000, and $63,196, in cash. Sanchez also must perform 1,600 hours of community service during his first year after his term of imprisonment.
April 25, 2013; U.S. Department of Justice
Southern California Physician and Two Co-Conspirators Found Guilty For Roles in $1.5 Million Medicare Fraud Scheme
WASHINGTON - A Southern California physician, a durable medical equipment (DME) supply company employee and a health care professional were found guilty late yesterday by a federal jury in Los Angeles for their roles in a $1.5 million Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Criminal Division; U.S. Attorney for the Central District of California André Birotte Jr.; Bill L. Lewis, Assistant Director in Charge of the FBI's Los Angeles Field Office; and Glenn R. Ferry, Special Agent in Charge of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General.
April 25, 2013; U.S. Department of Justice
Supervisor of $63 Million Health Care Fraud Scheme Convicted
WASHINGTON - A federal jury today convicted a Miami-area supervisor of a mental health care company, Health Care Solutions Network (HCSN), for helping to orchestrate a fraud scheme that crossed state lines and that resulted in the submission of more than $63 million in fraudulent claims to Medicare and Florida Medicaid.
April 25, 2013; U.S. Attorney; Western District of North Carolina
Former Owner of Wilkesboro Clinical Laboratory Pleads Guilty To Criminal Health Care Fraud and Tax Charges and Agrees To Pay $300,000 to Settle Civil Fraud Allegations
CHARLOTTE, N.C. - The former owner of Wilkesboro Clinical Laboratory ("WCL") pleaded guilty today in U.S. District Court for his involvement in a health care fraud scheme in which he and his company billed Medicare for services which were not rendered, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Louis Francis Curte, 49, also admitted he filed false tax returns from 2007 to 2010. In a separate civil settlement with the U.S. Attorney's Office, Curte also agreed to pay $300,000 to resolve civil fraud allegations that he and his company violated the Physician Self-Referral Act or "Stark Law."
April 25, 2013; U.S. Attorney; Western District of Virginia
Washington DC Doctor Indicted on Rx Drug Charges
Abingdon, Virginia -- A Washington D.C.-based doctor has been indicted by a Federal Grand Jury sitting in the United States District Court for the Western District of Virginia in Abingdon on allegations of illegally distributing prescription drugs. The grand jury has charged Alen Johannes Salerian, 65, of Bethesda, Md., in a 36-count indictment that was unsealed this afternoon following the defendant's initial court appearance.
April 24, 2013; U.S. Attorney; Western District of Kentucky
Louisville Fugitive and Former Owner of Jet Medical Supplies Charged with Health Care Fraud and Wire Fraud
LOUISVILLE, Ky. - The former owner of Jet Medical Supplies, LLC, was charged by a federal grand jury in Louisville, Kentucky, on five counts of wire fraud, five counts of health care fraud, and ordered to forfeit all property and gross proceeds derived from the offenses, announced David J. Hale, United States Attorney for the Western District of Kentucky. Jorge Jesus Cubillo Fernandez, a fugitive from the law, also, was added to the U.S. Department of Health and Human Services, Office of Inspector General's Most Wanted Fugitives list.
April 24, 2013; U.S. Department of Justice
Detroit Home Health Company Employee Pleads Guilty for Role in Medicare Fraud Scheme
An employee of Detroit medical service companies that fabricated patient visit notes and other documents as part of a $24 million home health care fraud scheme pleaded guilty today for her role in the conspiracy, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI's Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General, Chicago Regional Office.
April 23, 2013; U.S. Attorney; Eastern District of Texas
Texas Doctor Indicted for Health Care Fraud Violations
TYLER, Texas - A Dallas County, Texas, physician has been arrested and charged with health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. Tariq Mahmood, 61, of Cedar Hill, Texas, was indicted by a federal grand jury on April 11, 2013, and charged with conspiracy to commit health care fraud and seven counts of health care fraud. Mahmood went before U.S. Magistrate Judge John D. Love today for an initial appearance.
April 23, 2013; U.S. Attorney; District of Kansas
Manhattan Physician Charged With Unlawfully Prescribing Prescription Drugs
TOPEKA, KAN. - A doctor in Manhattan, Kan., has been charged with unlawfully prescribing prescription drugs, U.S. Attorney Barry Grissom said today. Physician Michael Schuster, 53, who operates Manhattan Pain and Spine in Manhattan, Kan., is charged with one count of conspiracy to illegally distribute controlled substances.
April 23, 2013; U.S. Attorney; District of South Dakota
Fort Pierre Man Charged with Failure to Pay Child Support
United States Attorney Brendan V. Johnson announced that a Fort Pierre, South Dakota man has been indicted by a federal grand jury for Failure to Pay Legal Child Support. Jason L. Hackett, age 36, was indicted by a federal grand jury on July 10, 2012. He appeared before U.S. Magistrate Judge Moreno on April 18, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 2 years' imprisonment, a $250,000 fine, 1 year of supervised release, $100 special assessment and possible restitution.
April 23, 2013; U.S. Attorney; District of Columbia
Maryland Business Owner Pleads Guilty to Health Care Fraud In Scheme Involving More Than $200,000 in False Medicaid Claims
WASHINGTON - Tina Jackson-White, the owner and president of Family Home Medical Equipment and Supplies, LLC, pled guilty today to a federal charge of health care fraud stemming from a scheme in which the firm submitted and collected more than $200,000 in fraudulent Medicaid claims.
April 23, 2013; U.S. Attorney; Southern District of New York
Manhattan U.S. Attorney Files Healthcare Fraud Lawsuit against Novartis Pharmaceuticals Corp. For Orchestrating a Multi-Million Dollar Prescription Drug Kickback Scheme
Preet Bharara, the United States Attorney for the Southern District of New York, and Ronald T. Hosko, the Assistant Director of the Federal Bureau of Investigation, Criminal Investigative Division ("FBI"), announced today that the United States has filed a civil healthcare fraud lawsuit against Novartis Pharmaceuticals Corp. ("Novartis"). The Government's Complaint seeks treble damages and civil penalties under the False Claims Act against Novartis for giving kickbacks, in the form of rebates and discounts, to 20 or more pharmacies in exchange for their switching transplant patients from competitor drugs to Novartis's drug, Myfortic. The lawsuit alleges that, as a result of Novartis's kickback scheme, Medicare and Medicaid have issued tens of millions of dollars in reimbursements based on false, kickback-tainted claims.
April 22, 2013; U.S. Department of Justice
Former Owner of Los Angeles Medical Equipment Supply Company Pleads Guilty to Conspiring to Defraud Medicare
A former owner of a Los Angeles-area medical equipment supply company pleaded guilty today to conspiring with others to defraud Medicare, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney André Birotte Jr. of the Central District of California; Glenn R. Ferry, Special Agent in Charge for the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General; and Bill L. Lewis, Assistant Director in Charge of the FBI's Los Angeles Field Office.
April 22, 2013; U.S. Attorney; Middle District of Pennsylvania
Mechanicsburg Doctor and Owner of Two Medical Facilities Pleads Guilty In Federal Court
The United States Attorney's Office for the Middle District of Pennsylvania announced that a Mechanicsburg doctor and owner of two Central Pennsylvania medical facilities pleaded guilty today in federal court in Harrisburg before U.S. District Judge Christopher C. Conner. Department of Health and Human Services, Office of Inspector General Special Agents were involved in the investigation that involved health care fraud, money laundering and embezzlement from an employee benefit plan.
April 22, 2013; U.S. Attorney; Northern District of Alabama
Lauderdale County Doctor Sentenced for Health Care and Wire Fraud
Florence - A federal judge today sentenced a Lauderdale County physician to one year and a day in prison for health care fraud totaling about $1 million in connection with billing a health insurer and Medicare for non-reimbursable cosmetic skin treatments, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein.
April 19, 2013; U.S. Attorney; Southern District of Georgia
Two Georgia Dieticians Charged With Medicaid Fraud
Brunswick, GA - Schella Hope, 47, a licensed dietician whose business, Hope Nutritional Services, was located in Brunswick, Georgia, and Arlene Murrell, 65, a licensed dietician whose business, Quality Nutrition Services, was located in Newnan, Georgia, were charged with various health care fraud offenses in a forty-five count indictment returned by a federal grand jury sitting in Savannah, Georgia earlier this month. The indictment alleges that between January 2005 and September 2011, HOPE submitted bills to Medicaid for these services totaling almost $4 million.
April 18, 2013; U.S. Attorney; Western District of Louisiana
Lake Charles Doctor Pleads Guilty To Health Care Fraud
Lafayette, La. - United States Attorney Stephanie A. Finley announced today that Dr. Lynn E. Foret, 63, of Lake Charles, La., pleaded guilty before U.S. District Court Judge Richard T. Haik to defrauding Medicare, Medicaid and private insurance companies out of close to $1 million.
April 18, 2013; U.S. Department of Justice
Owner of Texas Durable Medical Equipment Companies Sentenced to 41 Months
Hugh Marion Willett, the owner of two Texas-based durable medical equipment companies, was sentenced today to 41 months in prison, followed by three years of supervised release, and ordered to pay $182,450 in restitution, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division.
April 18, 2013; U.S. Attorney; Western District of North Carolina
Charlotte Neurologist Will Pay $2 Million to Settle Civil Fraud Allegations
CHARLOTTE, N.C. - A Charlotte neurologist has agreed to pay $2 million plus interest to the United States to settle civil fraud allegations, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Hemanth P. Rao, MD, is the owner of and principal neurologist at The Neurological Institute in Charlotte, formerly known as Neurological Consultants of the Carolinas.
April 18, 2013; U.S. Attorney; Northern District of Illinois
Fifth Sacred Heart Hospital Physician Arrested For Allegedly Illegally Prescribing Hydrocodone to a Patient
CHICAGO - A Chicago physician associated with Sacred Heart Hospital on the city's west side is facing federal charges for allegedly illegally prescribing hydrocodone to a hospital patient without having a valid license and registration to prescribe controlled substances. The defendant, Dr. Kenneth S. Nave, allegedly illegally used the Drug Enforcement Administration registration number of another physician when he prescribed the hydrocodone last December.
April 17, 2013; U.S. Department of Justice
Detroit-Area Home Health Agency Office Manager Convicted In $5.8 Million Medicare Fraud Scheme
WASHINGTON - A federal jury in Detroit today convicted the office manager of a home health agency for her participation in a $5.8 million Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Robert D. Foley III, Special Agent in Charge of the FBI Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations Detroit Office.
April 17, 2013; U.S. Attorney; Eastern District of Pennsylvania
Owner of Brotherly Love Ambulance Pleads Guilty To $2 Million Health Care Fraud Scheme
PHILADELPHIA - Feda Kuran, 37, of Philadelphia, PA, pleaded guilty today to a health care fraud scheme that involved billing Medicare for ambulance services that were not medically necessary, that were not actually provided, or that were induced by illegal kickbacks. During this health care fraud scheme, the defendant also gave and received illegal kickbacks. As a result, the Medicare program paid more than $2,015,712 for the fraudulent bills. Kuran pleaded guilty to one count of Health Care Fraud and one count of violating the Anti-Kickback Statute. U.S. District Court Judge William H. Yohn, Jr. scheduled a sentencing hearing for July 24, 2013. Kuran faces a maximum possible sentence of 15 years in prison, three years of supervised release, a $250,000 fine, a $200 special assessment, and restitution to Medicare. In addition, the defendant has agreed to forfeiture and a money judgment against her for more than $2 million.
April 16, 2013; U.S. Department of Justice
Amgen to Pay U.S. $24.9 Million to Resolve False Claims Act Allegations
Amgen Inc., a California-based biotechnology company, has agreed to pay the United States $24.9 million to settle allegations that it violated the False Claims Act, the Justice Department announced today. Amgen develops, manufactures, and sells pharmaceutical products, including products sold under the trade name Aranesp.
April 16, 2013; U.S. Attorney; Central District of California
San Fernando Valley Doctor Who Pled Guilty in $3 Million Medicare Fraud Case Sentenced to More Than Three Years in Federal Prison
LOS ANGELES-A medical doctor who owns a cosmetic medicine clinic in the Winnetka district of the San Fernando Valley has been sentenced to 42 months in federal prison for bilking Medicare out of more than $3 million by submitting bills for procedures he never performed.
April 16, 2013; U.S. Attorney; Northern District of Illinois
Sacred Heart Hospital Owner, Executive and Four Doctors Arrested in Alleged Medicare Referral Kickback Conspiracy
CHICAGO - The owner and another senior executive of Sacred Heart Hospital and four physicians affiliated with the west side facility were arrested today for allegedly conspiring to pay and receive illegal kickbacks, including more than $225,000 in cash, along with other forms of payment, in exchange for the referral of patients insured by Medicare and Medicaid to the hospital.
April 15, 2013; U.S. Attorney; Northern District of Ohio
Orange, Ohio, Man Pleaded Guilty To Overbilling Medicaid and Medicare by $2.5 Million
A man who lives in Orange, Ohio, admitted to overbilling Medicaid and Medicare by more than $2.5 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. Divyesh "David" C. Patel, age 39, pleaded guilty to one count of conspiracy to commit health care fraud and four counts of health care fraud. Patel is expected to be sentenced later this year.
April 12, 2013; U.S. Attorney; Southern District of New York
Participant in $100 Million Medicare Fraud Sentenced in Manhattan Federal Court to 135 Months
in Prison

Preet Bharara, the United States Attorney for the Southern District of New York, announced today that Herayer Baghoumian was sentenced today to 135 months in prison for his role in a $100 million massive Medicare fraud scheme. Baghoumian pled guilty to racketeering in March 2012, and was sentenced today by U.S. District Judge Paul G. Gardephe.
April 10, 2013; U.S. Attorney; Eastern District of Pennsylvania
Seven Charged In Health Care Fraud Scheme - Medicare Billed $3.6 Million for Unnecessary Ambulance Rides
PHILADELPHIA - An indictment was unsealed today charging Penn Choice Ambulance Inc., operating from Philadelphia, PA, Huntington Valley, PA and Camp Hill, PA, its owner, Anna Mudrova, and operators Yury Gerasyuk, Mikhail Vasserman, Irina Vasserman, Aleksandr Vasserman, Valeriy Davydchik, and Khusen Akhmedov, with conspiracy to commit health care fraud. The alleged scheme involved more than $3.6 million in fraudulent claims submitted to Medicare. The defendants were also charged with related crimes including making false statements in connection with health care matters, aggravated identity theft, paying kickbacks to patients, and money laundering, announced United States Attorney Zane David Memeger.
April 10, 2013; U.S. Attorney; District of New Jersey
Prominent Tri-State Cardiologist Admits Record $19 Million Billing Fraud Scheme, Exposing Patients to Unskilled and Unnecessary Medical Treatment
NEWARK, N.J. - A well-known cardiologist and the founder, CEO, and sole owner of a pair of large medical services companies in New Jersey and New York admitted today to conspiring in a multimillion-dollar health care fraud scheme that subjected thousands of patients to unnecessary tests and potentially life-threatening, unneeded treatment, as well as treatment by unlicensed or untrained personnel. The guilty plea was announced today by New Jersey U.S. Attorney Paul J. Fishman.
April 10, 2013; U.S. Attorney; Eastern District of New York
Long Island Health Care Provider Sentenced to 12 Years in Prison for $10 Million Medicare Fraud and HIPAA Identity Theft
Earlier today, Helene Michel, an owner and officer of Medical Solutions Management, Inc. ("MSM"), was sentenced to 12 years in federal prison by United States District Judge Joseph F. Bianco at the federal courthouse in Central Islip, New York. Michel was convicted after a three-week jury trial in August 2012 of conspiracy to commit health care fraud, health care fraud, and HIPAA identity theft crimes. At today's sentencing, Judge Bianco also ordered that Michel forfeit $1.3 million that was seized by the government at the time of her indictment.
April 9, 2013; U.S. Attorney; District of New Jersey
Clinical Laboratory President and New Jersey Doctor, Others Charged with Company in Multimillion-Dollar Cash for Referral Scheme
NEWARK, N.J. - Federal agents arrested the president and part-owner of Parsippany, N.J.-based Biodiagnostic Laboratory Services LLC (BLS), a New Jersey physician and two other BLS employees this morning on charges they participated in a long-running scheme to bribe doctors to refer patient blood samples to BLS and to order unnecessary tests, resulting in tens of millions of dollars in profit for the company. The charges were announced today by New Jersey U.S. Attorney Paul J. Fishman.
April 9, 2013; U.S. Attorney; Northern District of Texas
Amarillo, Texas, Orthodontist Sentenced to 50 Months in Federal Prison on Health Care
Fraud Conviction

AMARILLO, Texas - Dr. Michael David Goodwin, 63, an orthodontist who practiced in Amarillo, Texas, and Crown Point, Indiana, was sentenced today by U.S. District Judge Mary Lou Robinson to 50 months in federal prison and ordered to pay $1,810,960 in restitution, following his guilty plea in December 2012 to one count of health care fraud related to the Texas Medicaid program. In addition, Goodwin must forfeit $1,558,911, which are the gross proceeds traceable to his offense, as well as more than $244,000 the government seized in May and July 2011 from his JP Morgan Chase accounts. Judge Robinson ordered that he surrender to the Bureau of Prisons on April 29, 2013. Today's announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
April 9, 2013; U.S. Attorney; District of Massachusetts
Holyoke Woman Pleads Guilty to Health Care Fraud
Boston - A Holyoke resident pleaded guilty today in U.S. District Court in Springfield to defrauding MassHealth by billing for personal care attendant services that were never provided.
April 8, 2013; U.S. Attorney: Eastern District of New York
Brooklyn Doctor Convicted in $77 Million Medicare Fraud Scheme
Gustave Drivas, M.D., a medical doctor and resident of Staten Island, was convicted today of two felony counts for his role in a $77 million Medicare fraud scheme. The jury's verdict followed an eight-week long trial in United States District Court in Brooklyn, New York, before the Honorable Nina Gershon. The conviction was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Mythili Raman, Acting Assistant Attorney General of the United States for the Department of Justice.
April 5, 2013; U.S. Department of Justice
Miami-Based Health Care Clinic and Its Owners and Operators Sentenced for $50 Million
Fraud Scheme

The owners and operators of Biscayne Milieu, a Miami-based mental-health clinic, and the clinic itself were sentenced today for their participation in a Medicare fraud scheme involving the submission of more than $50 million in fraudulent billings to Medicare, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations Miami Office.
April 4, 2013; U.S. Attorney; Western District of Michigan
Grand Rapids Podiatrist Sentenced to Prison in Health Care Fraud Scheme
Grand Rapids, Michigan - Anthony J. Kirk, D.P.M., 61, of Grand Rapids, Michigan, was sentenced to six months in prison, fined $15,000, and ordered to pay $65,110 in restitution for committing health care fraud, U.S. Attorney Patrick Miles announced today. Upon release from prison, Dr. Kirk will be placed on home detention for a period of five months, during which time he must remain in his residence except for employment and other activities approved in advance by his probation officer. The sentence was imposed by U.S. District Judge Janet T. Neff.
April 4, 2013; U.S. Attorney; Eastern District of Pennsylvania
Owner of Brotherly Love Ambulance Charged in $2 Million Health Care Fraud Scheme
PHILADELPHIA - Feda Kuran, 37, of Philadelphia, PA, was charged today in an Information11An Information is an accusation. A defendant is presumed innocent unless and until proven guilty. alleging a health care fraud scheme that involved billing Medicare for ambulance services that were not medically necessary, that were not actually provided, or that were induced by illegal kickbacks. As a result, the Medicare program paid more than $2 million for the inappropriate bills. Kuran is charged with Health Care Fraud and violating the Anti-Kickback Statute, announced United States Attorney Zane David Memeger.
April 3, 2013; U.S. Attorney; District of Columbia
Former CEO/Owner of Home Health Care Provider Pleads Guilty To Falsifying Records in Connection With a Federal Audit
WASHINGTON - Jeannette N. Awasum, the former owner of a health care provider, pled guilty today to a federal charge stemming from falsifying records in connection with a U.S. Department of Health and Human Services audit.
April 3, 2013; U.S. Attorney; Northern District of Texas
Federal Jury Convicts Three in Health Care Fraud Scheme Stemming From Their Involvement in the Operation of Euless Healthcare Corp.
DALLAS - Following a seven-day trial, before U.S. District Judge David C. Godbey, a federal jury has convicted three defendants on health care fraud and related charges stemming from their involvement in the operation of Euless Healthcare Corporation (EHC) and Medic Healthcare Incorporated (Medic), announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. ECH was located on West Bedford Euless Road in Hurst Texas, and Medic, which operated from October 2009 to May 2011, was located on Bonhomme Road in Houston.
April 3, 2013; U.S. Department of Justice
Intermountain Health Care Inc. Pays U.S. $25.5 Million to Settle False Claims Act Allegations
Intermountain Health Care Inc. has agreed to pay the United States $25.5 million to settle claims that it violated the Stark Statute and the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today. Intermountain operates the largest health system in the state of Utah.
April 3, 2013; U.S. Attorney; Middle District of Pennsylvania
Easton Hospital Agrees To Pay Government $454,866 to Resolve Allegation of Improper
Medicare Claims

The United States Attorney's Office for the Middle District of Pennsylvania announced that Easton Hospital has agreed to pay the United States $454,866 to resolve allegations that it submitted improper claims to the Medicare program. Easton Hospital is a subsidiary of Community Health Systems and is located in Easton, Pennsylvania.
April 3, 2013; U.S. Attorney; Middle District of Pennsylvania
St. Luke's University Health Network Agrees to Pay Government $1,029,791 to Resolve Alleged Improper Medicare Claims
The United States Attorney's Office for the Middle District of Pennsylvania announced that the St. Luke's University Health Network has agreed to pay the United States $1,029,791 to resolve allegations that it erroneously submitted improper claims to the Medicare program. St. Luke's University Health Network owns and operates St. Luke's Hospital of Bethlehem, St. Luke's Quakertown Hospital, and St. Luke's Miners Memorial Hospital.
April 2, 2013; U.S. Attorney; District of Kansas
Pretty Prairie Woman Pleads Guilty to Health Care Fraud
TOPEKA, KAN. - A woman from Pretty Prairie, Kan., who fraudulently received payments from the Kansas Medicaid program to care for her sister with Downs Syndrome has pleaded guilty to federal health care fraud charges, U.S. Attorney Barry Grissom said today.
April 2, 2013; U.S. Attorney; Eastern District of Wisconsin
Prevea Clinic, Inc. Agrees to Civil Settlement of $94,000.00 To Resolve False Claims Act Allegations
United States Attorney James L. Santelle for the Eastern District of Wisconsin announced today that the United States has reached a civil settlement with the Prevea Clinic, Inc., resolving allegations that Prevea submitted false claims to the Medicare Program. The amount of the settlement is $94,000.00.
April 2, 2013; U.S. Department of Justice
Detroit-Area Home Health Agency Owner and Physical Therapist Convicted in $2.3 Million Medicare Fraud Scheme
A federal jury in Detroit today convicted a home health agency owner and a physical therapist for their participation in a $2.3 million Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan; Robert D. Foley III, Special Agent in Charge of the FBI Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Detroit Office.
April 2, 2013; U.S. Attorney; Eastern District of Pennsylvania
Ambulance Company and Owners Plead Guilty in Health Care Fraud Scheme
PHILADELPHIA-MedEx Ambulance Inc., located in Feasterville, Pennsylvania, and its owners, Aleksandr N. Zagrodony and Sergey Zagorodny, pleaded guilty to all counts of a 41-count indictment charging them with health care fraud, false statements in connection with health care matters, wire fraud, and conspiracy to commit health care fraud and wire fraud, announced United States Attorney Zane David Memeger.
April 2, 2013; U.S. Attorney; Western District of North Carolina
Charlotte Woman Pleads Guilty to $4.8 Million Medicaid Scheme, Aggravated Identity Theft, and Other Charges
CHARLOTTE, NC-A Charlotte woman pleaded guilty today in U.S. District Court for her involvement in a health care fraud scheme that attempted to defraud Medicaid of $4.8 million for sham mental and behavioral health services, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Rodnisha Sade Cannon, 26, of Charlotte, also pleaded guilty to stealing a therapist's identity to commit the fraud, money laundering conspiracy, and attempting to sell her Mercedes-Benz in order to prevent law enforcement agents from seizing the vehicle.
April 1, 2013; U.S. Department of Justice
Patient Recruiter for Miami Home Health Company Sentenced to 36 Months in $20 Million Health Care Fraud Scheme
A patient recruiter for a Miami health care company was sentenced today to serve 36 months in prison for his participation in a $20 million home health Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.
April 1, 2013; U.S. Department of Justice
Operators of Louisiana Home Health Company Convicted in $17.1 Million Health Care Fraud Scheme
The owner and the director of nursing of a Louisiana home health agency were each convicted late Friday for conspiring to defraud Medicare of $17.1 million announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Donald J. Cazayoux Jr. of the Middle District of Louisiana; Mike Fields, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas regional office; Michael Anderson, Special Agent in Charge of the FBI's New Orleans Division; and Louisiana State Attorney General James Buddy Caldwell.
April 1, 2013; U.S. Attorney; Southern District of Texas
Former Doctor Pleads Guilty in $19+ Million Health Care Fraud Scheme
HOUSTON - Donald Gibson II, 56, of Richmond, has been convicted of conspiracy to commit health care fraud relating to medically unnecessary diagnostic testing and physical therapy, United States Attorney Kenneth Magidson announced today.

March 2013

March 28, 2013; U.S. Attorney; District of New Jersey
South Jersey Doctor Admits Making Half A Million Dollars in Fraud Scheme Involving Home Health Care for Elderly Patients
TRENTON, N.J. - A physician who was the owner and founder of Visiting Physicians of South Jersey - a Hammonton, N.J., provider of home-based physician services for seniors -pleaded guilty today for charging lengthy visits to elderly patients that they did not receive, U.S. Attorney Paul J. Fishman announced.
March 28, 2013; U.S. Attorney; Central District of California
SoCal Woman Sentenced to 13 Years in Federal Prison in Medicare Fraud Scheme Involving Durable Medical Equipment
LOS ANGELES-A Carson woman has been sentenced to 156 months in federal prison in an $8 million Medicare fraud case in which she illegally paid kickbacks for referrals to patients whose beneficiary information was used to make bogus claims to the government health care program.
March 25, 2013; U.S. Attorney; Western District of Tennessee
Shelby County Juvenile Court Psychiatric Counselor Pleads Guilty To $500,000 Health Care Fraud Scheme
Memphis, TN - Mechell D. Toles, 44, of Collierville, TN, pleaded guilty this morning to a one count Information charging her with health care fraud, announced United States Attorney for the Western District of Tennessee, Edward L. Stanton III. Toles, a licensed professional counselor who formerly operated offices in Memphis and Collierville, will be sentenced on July 1, 2013 before Chief United States District Judge Jon Phipps McCalla.
March 22, 2013; U.S. Attorney; Eastern District of Pennsylvania
Temple University Agrees to pay $100,000 to Resolve Overbilling
PHILADELPHIA- Temple University has agreed to a $100,000 settlement to resolve allegations arising from overbilling for neurology services. The settlement agreement, which was reached on February 22, 2013, was announced by United States Attorney Zane David Memeger. The overbilling to Medicaid and Medicare programs arose from services rendered at Temple University's own facilities as well as services rendered at Frankford Hospital by Temple physicians.
March 22, 2013; U.S. Department of Justice
Registered Nurse Pleads Guilty in Connection with Detroit Medicare Fraud Scheme
A registered nurse who fabricated nursing visit forms in connection with a $24 million home health care fraud conspiracy in Detroit pleaded guilty today for her role in the scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI's Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General, Chicago Regional Office.
March 22, 2013; U.S. Attorney; Western District of Missouri
Medical Clinic Director, CEO Plead Guilty To Health Care Fraud, False Tax Return
Kansas City, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the married owner/director and chief executive officer of a Kansas City, Mo., medical clinic pleaded guilty in federal court today to health care fraud and filing a false tax return.
March 22, 2013; U.S. Attorney, Southern District of Texas
DME Owner Arrested in 21-Count Health Care Fraud Indictment
HOUSTON - Andrea Michelle Tellison, 46, has been arrested following the return of a 21-count indictment charging her with health care fraud and aggravated identity theft, United States Attorney Kenneth Magidson announced today.
March 21, 2013; U.S. Attorney; Southern District of New York
Manhattan U.S. Attorney Announces Charges against Bronx Pharmacy Owner for Participating In Medicaid Fraud Scheme Involving the Diversion of Prescription Drugs
Preet Bharara, the United States Attorney for the Southern District of New York and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, announced today the unsealing of charges against David Correa, a Bronx pharmacy owner, for his participation in a Medicaid fraud scheme involving the unlawful diversion of prescription drugs that had previously been dispensed to Medicaid recipients in the New York City area ("second-hand" drugs).
March 21, 2013; U.S. Attorney; Western District of Kentucky
Owner of Bluegrass Women's Healthcare in Elizabethtown Charged with Health Care Fraud, Mail Fraud, Misbranding and Smuggling
LOUISVILLE, Ky. - The owner of Bluegrass Women's Healthcare, located in Elizabethtown, Kentucky was charged, in a 13 count federal grand jury indictment this week, with health care fraud, mail fraud, misbranding and smuggling announced David J. Hale, United States Attorney for the Western District of Kentucky.
March 20, 2013; U.S. Attorney; Western District of Virginia
Former Saltville Rescue Squad President Sentenced
Abingdon, Virginia -- The former president of the Saltville Rescue Squad was sentenced today in the United States District Court for the Western District of Virginia in Abingdon on healthcare fraud charges.
March 20, 2013; U.S. Attorney; Western District of Kentucky
Nelson County, Kentucky Drug Store Owner Guilty Of Health Care Fraud and Wire Fraud
LOUISVILLE, Ky. - The owner of Crume Drug Store, located in Nelson County, Kentucky, pleaded guilty in federal court today, before Magistrate Judge James D. Moyer, to a two count federal information, charging Timothy Sizemore with health care fraud and wire fraud, announced David J. Hale, United States Attorney for the Western District of Kentucky.
March 20, 2013; U.S. Attorney; Eastern District of Michigan
Forty-Four Individuals Indicted In Health Care Fraud and Drug Distribution Scheme
Forty-Four individuals have been charged in a health care fraud and drug distribution scheme, U.S. Attorney Barbara L. McQuade announced today.
March 20, 2013; U.S. Department of Justice
Hospice of Arizona and Related Entities Pay $12 Million to Resolve False Claims Act Allegations
Hospice of Arizona L.C., along with a related entity, American Hospice Management LLC, and their parent corporation, American Hospice Management Holdings LLC, have agreed to pay $12 million to resolve allegations that they violated the False Claims Act by submitting or causing the submission of false claims to the Medicare program for ineligible hospice services, the Justice Department announced today.
March 20, 2013; U.S. Attorney; Southern District of Florida
Miami Beach Community Health Center CEO Pleads Guilty in $6 Million Embezzlement Scam
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Michael A. Steinbach, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of the Inspector General, announced that defendant Kathryn Abbate, 64, of Hollywood, FL, pled guilty today to theft of money from programs receiving federal funds, in violation of Title 18, United States Code, Section 666.
March 19, 2013; U.S. Attorney; District of South Dakota
Colorado Man Indicted for Failure to Appear
United States Attorney Brendan V. Johnson announced that a Colorado man was indicted by a federal grand jury for failing to appear in federal court on another matter pending against him.
March 19, 2013; U.S. Attorney; Eastern District of Michigan
Thirteen Individuals Indicted in Health Care Fraud and Drug Distribution Scheme
Thirteen individuals have been charged in a large-scale health care fraud and drug distribution scheme, United States Attorney Barbara L. McQuade announced today.
March 18, 2013; U.S. Attorney; Middle District of Louisiana
Woman Sentenced for Involvement in Health Care Fraud Scheme
BATON ROUGE, LA-United States Attorney Donald J. Cazayoux, Jr. announced today that Sandra Parkman Thompson, 58, of New Orleans, Louisiana, was sentenced to 18 months in prison and ordered to pay $129,330 in restitution for her convictions on health care fraud and conspiracy to pay and receive illegal remunerations.
March 15, 2013; U.S. Attorney; Southern District of Florida
Two Medicare Beneficiaries Found Guilty Of Soliciting Kickbacks in Home Health Care Case
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Antonio J. Gomez, Postal Inspector In Charge of the U.S. Postal Inspection Service, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, inform that a federal jury found Defendants Rene Suarez-Basanta, 67 years of age, and Marta Gonzalez, also 67 years of age, guilty of charges related to Medicare fraud.
March 15, 2013; U.S. Department of Justice
Medical Director for Miami-Based Health Care Clinic Sentenced to 144 Months in Prison for Role in $50 Million Medicare Fraud Scheme
A former medical director for Biscayne Milieu, a Miami-based mental-health clinic, was sentenced today to serve 144 months in prison for his role in a fraud scheme involving the submission of more than $50 million in fraudulent billings to Medicare, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations Miami Office.
March 15, 2013; U.S. Department of Justice
Former Department of Health and Human Services Employee Pleads Guilty in Washington to Wire Fraud Charge in Retention Bonus Scheme
An employee of the Department of Health and Human Services' Office of the Assistant Secretary for Preparedness and Response (HHS-ASPR) pleaded guilty today in Washington, D.C., to defrauding the United States by submitting fraudulent employment offers in order to claim retention bonuses totaling $138,875, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division.
March 14, 2013; U.S. Department of Justice
Houston-Area Doctor Sentenced to 63 Months in Prison for Role in $17.3 Million Medicare
Fraud Scheme

A Texas doctor was sentenced today to serve 63 months in prison for conspiring to commit health care fraud by falsifying plans of care for Medicare beneficiaries, including patients whom he did not treat, as part of a $17.3 million Medicare fraud scheme.
March 14, 2013; U.S. Attorney; Southern District of Texas
McAllen Urologist and Wife Charged in Heath Care Fraud Scheme and Conspiracy to Violate Iranian Sanctions
HOUSTON - A federal grand jury has returned a four-count, superseding indictment against urologist Hossein Lahiji M.D. and his wife, attorney Najmeh Vahid Lahiji, both of McAllen and San Antonio, United States Attorney Kenneth Magidson announced today. The second superseding Indictment, returned late yesterday, charges the couple with conspiracy to commit health care fraud, health care fraud and for conspiring to violate Iranian sanctions.
March 13, 2013; U.S. Attorney; District of Massachusetts
Spaulding Rehabilitation Hospital North Shore Settles Allegations of Improper Medicare Billing
BOSTON - On March 12, the United States reached a civil settlement with the Shaughnessy-Kaplan Rehabilitation Hospital (doing business as Spaulding Rehabilitation Hospital for Continuing Medical Care North Shore, or "Spaulding"), resolving allegations that it inappropriately billed Medicare for certain days of patient care in violation of Medicare's "midnight rule."
March 12, 2013; U.S. Attorney; Middle District of Florida
Local Pharmacist Sentenced To 10 Years in Federal Prison for Filling Hundreds of Fraudulent Oxycodone Prescriptions
Tampa, Florida - U.S. District Judge James D. Whittemore sentenced Emmanuel I. Mekowulu (56, Tampa) yesterday to 10 years in federal prison for conspiring with other persons to knowingly and intentionally distribute and dispense, and cause the distribution and dispensing of Oxycodone outside of a legitimate medical purpose and not in the usual course of professional practice. The court also ordered Mekowulu to forfeit his Florida pharmacist license, and the pharmacy license he held for the Felky Pharmacy, both of which he used to facilitate the offense.
March 13, 2013; U.S. Attorney; Middle District of Alabama
Home Health Care Company Techota, LLC, to Pay United States $150,000 to Resolve False Claims Allegations
Montgomery, Alabama - Techota, LLC has agreed to pay the United States $150,000 to resolve claims in a federal qui tam lawsuit that it violated the False Claims Act by making false claims for payment to Medicare for home health care services, announced George L. Beck, U.S. Attorney for the Middle District of Alabama. Techota, LLC, based in Nashville, Tennessee, provides home health care services in Alabama under the names CV Home Health of Bibb County and CV Home Health Services. The settlement resolves claims in the federal lawsuit that Techota, LLC, billed Medicare for home health services that were not eligible for reimbursement because the services were not medically reasonable and necessary or were not provided under a valid plan of care. Under the terms of a global settlement, Techota, LLC, will also enter into a Corporate Integrity Agreement with the Office of Inspector General of the Department of Health and Human Services.
March 13, 2013; U.S. Attorney; District of Connecticut
Substance Abuse Counselor Pleads Guilty To Federal Health Care Fraud Charge
David B. Fein, United States Attorney for the District of Connecticut, announced that Alan Emmett Bradley, 57, of Norwalk, Conn., and Ocoee, Fla., pleaded guilty today before United States District Judge Vanessa L. Bryant in Hartford to one count of health care fraud.
March 12, 2013; U.S. Attorney; Southern District of Georgia
Armenian National Sentenced To 41 Months in Prison for Role in Health Care Fraud Conspiracy
Brunswick, GA - Khoren Gasparian, 30, an Armenian national, was sentenced last Friday by Chief United States District Court Judge Lisa Godbey Wood to 41 months in prison for his role in a conspiracy to defraud Medicare through phony medical businesses in Savannah, Georgia.
March 8, 2013; U.S. Attorney; Eastern District of Tennessee
Grace Healthcare and Grace Ancillary Services Agree To Pay United States and State Of Tennessee $2.7 Million to Resolve False Claims Allegations
CHATTANOOGA, Tenn. -- Chattanooga based nursing home chain Grace Healthcare LLC and its affiliate, Grace Ancillary Services LLC (collectively, Grace), have agreed to pay $2.7 million, plus interest, to resolve allegations that they violated the False Claims Act by knowingly submitting or causing the submission to the Medicare and TennCare/Medicaid programs of false claims for medically unreasonable and unnecessary rehabilitation therapy. Grace Ancillary Services LLC provided the therapy in some of the skilled nursing facilities Grace Healthcare LLC owns and/or manages in Tennessee and elsewhere.
March 8, 2013; U.S. Attorney; Western District of Louisiana
Woman Ordered to Pay Restitution for Filing False Day Care Services Claims to Federal Program
LAKE CHARLES, La - United States Attorney Stephanie A. Finley announced that Annette Victorian, 44, of Lake Charles, was ordered Thursday by U.S. District Judge Patricia Minaldi to pay $71,660.70 in restitution, a $1,000 fine, serve five years' probation, and complete 100 hours of community service, for defrauding the Louisiana Department of Children and Family Services.
March 8, 2013; U.S. Department of Justice
Tennessee-Based Therapy Providers to Pay $2.7 Million to Resolve False Claims Act Allegations
The Justice Department announced today that Chattanooga, Tenn., based nursing home manager Grace Healthcare LLC and its affiliate Grace Ancillary Services LLC (collectively, Grace) have agreed to pay $2.7 million, plus interest, to resolve allegations that they violated the False Claims Act by knowingly submitting or causing the submission to the Medicare and TennCare/Medicaid programs of false claims for medically unreasonable and unnecessary rehabilitation therapy. Grace Ancillary Services LLC provided the therapy in some of the skilled nursing facilities Grace Healthcare LLC owns and/or manages in Tennessee and elsewhere.
March 7, 2013; Department of Justice
Health Care Clinic Director Pleads Guilty in Miami for Role in $63 Million Health Care Fraud Scheme
A former health care clinic director and licensed therapist pleaded guilty today in connection with a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc., announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations Miami office.
March 7, 2013; U.S. Attorney; Central District of California
Orange County Doctor Convicted of Six Counts of Health Care Fraud in Multi-Million Dollar Scam involving Durable Medical Equipment
LOS ANGELES - A federal jury has convicted a Buena Park doctor for participating in a health care fraud scheme involving unnecessary procedures and prescriptions that led to Medicare paying out nearly $3 million on fraudulent claims for durable medical equipment and nutritional supplies. Following a five-day trial, Dr. Augustus Ohemeng, 62, was found guilty yesterday afternoon of six counts health care fraud.
March 5, 2013; U.S. Attorney; Southern District of Texas
Corpus Christi Radiologist Group and Children's Genetic Services Clinic Settle False Claims Act Allegations
HOUSTON - Children's Physician Services of South Texas (CPSST) and Radiology Associates have agreed to pay to settle claims they violated the False Claims Act and the Texas Medicaid Fraud Prevention Act between 2002 and 2007, United States Attorney Kenneth Magidson announced today. CPSST, a part of the Driscoll Health System, has agreed to pay $1.5 million, while Radiology Associates, an independent physician group serving the Driscoll Health System, will pay $800,000 to settle claims they billed and received payment twice for the professional reading and interpretation of genetic ultrasounds.
March 5, 2013; U.S. Attorney; Southern District of New York
Manhattan U.S. Attorney Sues Park Avenue Medical Associates for Medicare Billing Fraud
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed a lawsuit against Park Avenue Medical Associates ("PAMA") and Park Avenue Medical Associates, P.C. ("PAMA PC"), and related entities, alleging that they billed Medicare for services purportedly provided to elderly, mentally ill patients that were not medically necessary, were not documented in the medical record, and/or failed otherwise to comply with Medicare rules and regulations. The Government's Complaint alleges that, as a consequence of the conduct of PAMA and PAMA PC, the entity that allegedly submitted claims to Medicare on behalf of PAMA, Medicare paid the defendants for thousands of claims that were not eligible for payment, resulting in over $1 million in damages.
March 5, 2013; U.S. Department of Justice
Par Pharmaceuticals Pleads Guilty and Agrees to Pay $45 Million to Resolve Civil and Criminal Allegations Related to Off-Label Marketing
New Jersey-based Par Pharmaceutical Companies Inc. pleaded guilty in federal court today and agreed to pay $45 million to resolve its criminal and civil liability in the company's promotion of its prescription drug Megace ES for uses not approved as safe and effective by the Food and Drug Administration (FDA) and not covered by federal health care programs, the Justice Department announced.
March 5, 2013; U.S. Department of Justice
Owner and Operator of Houston-Area Ambulance Service Convicted in Medicare Fraud Scheme
The owner and operator of a Houston-area ambulance company was convicted by a federal jury in Houston of multiple counts of health care fraud for submitting false and fraudulent claims to Medicare, Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Stephen L. Morris of the FBI's Houston Field Office and Special Agent in Charge Mike Fields of the U.S. Health and Human Services Office of Inspector General, Office of Investigations Houston Office announced today.
March 4, 2013; U.S. Attorney; District of South Dakota
Minnesota Man Charged with Failure to Pay Child Support
United States Attorney Brendan V. Johnson announced that Jesse Lawrence Brown Otter, age 45, of Minneapolis, Minnesota appeared before U.S. Magistrate Roberto A. Lange on February 26, 2013 and pled guilty to an Indictment that charged him with Failure to Pay Legal Child Support. The maximum penalty upon conviction is two years imprisonment; a $250,000.00 fine; one year supervised release; one additional year of custody upon revocation; a $100.00 assessment fee; and child support restitution amount owed at the time of sentencing.
March 4, 2013; U.S. Attorney; District of Maryland
Laurel Man Pleads Guilty To Producing Child Pornography
Greenbelt, Maryland - Frank Alan Klukosky, age 43, of Laurel, Maryland, pleaded guilty today to producing child pornography. 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 Richard McLaughlin of the Laurel Police Department; Howard County Police Chief William McMahon; and Elton Malone, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Special Investigations Branch
March 1, 2013; U.S. Attorney; Northern District of West Virginia
Doctor gets 50 Month Sentence for Health Care Fraud & Tax Evasion
Wheeling, West Virginia - A Parkersburg, West Virginia, doctor was sentenced to 50 months in federal prison today as a result of his convictions for "Health Care Fraud" and "Tax Evasion."
March 1, 2013; U.S. Attorney; Western District of Kentucky
Nelson County, Kentucky Drug Store Owner Charged With Health Care Fraud and Wire Fraud
LOUISVILLE, Ky. - The owner of Crume Drug Store, located in Nelson County, Kentucky, was charged in United States District Court this week, in a two count federal information, with wire fraud and billing private insurance companies and Medicare Part D for fraudulent prescriptions, announced David J. Hale, United States Attorney for the Western District of Kentucky.

February 2013

February 28, 2013; U.S. Attorney; Middle District of Pennsylvania
Podiatrist Sentenced To Prison for Health Care Fraud
The United States Attorney's Office for the Middle District of Pennsylvania announced that podiatrist who practiced in Harrisburg and Elizabethtown was sentenced today to 16 months in federal prison for committing health care fraud.
February 28, 2013; U.S. Department of Justice
Owners of Miami Home Health Companies Sentenced to Prison in $48 Million Health Care Fraud Scheme
The owners and operators of two Miami health care agencies were sentenced to nine years and more than four years in prison today, respectively, and ordered to pay millions in restitution for their participation in a $48 million home health Medicare fraud scheme that billed for unnecessary home health care and therapy services.
February 27, 2013; U.S. Attorney; Middle District of North Carolina
Alamance County Residents Plead To Health Care Fraud
GREENSBORO, N.C. - United States Attorney for the Middle District of North Carolina Ripley Rand announced today that EVELYN FULLER and MICHAEL MCLEAN pleaded guilty in federal court in Greensboro before United States District Judge Catherine C. Eagles to felony charges of conspiracy to commit health care fraud and health care fraud.
February 26, 2013; U.S. Department of Justice
Former Owners of Los Angeles-Area Medical Equipment Wholesaler Plead Guilty to Conspiring with Customers to Defraud Medicare
Two former owners of a Los Angeles-area medical equipment wholesale supply company pleaded guilty today to conspiring with their customers to defraud Medicare.
February 25, 2013; U.S. Attorney; Eastern District of Kentucky
Erlanger Nursing Home and United States Government Settle Civil Allegations
COVINGTON, KY - Under a settlement agreement with the U.S. Government, Villaspring Health Care Center, Inc., and Carespring Health Care Management, LLC are further enhancing the care that they provide to residents of Villaspring's nursing home in Erlanger, Ky., announced United States Attorney Kerry Harvey.
February 25, 2013; U.S. Department of Justice
Owner of Mental Health Facilities Sentenced to 168 Months in Prison in Connection with $63 Million Health Care Fraud Scheme
A former owner of mental health facilities in Florida and North Carolina was sentenced today to serve 168 months in prison for his leadership role in a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN), announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations Miami office.
February 25, 2013; U.S. Department of Justice
Miami Pharmacy Owner Sentenced to 14 Years in Prison in $23 Million Health Care Fraud Scheme
A co-owner and operator of three Miami discount pharmacies was sentenced today to 168 months in prison for his role in a health care fraud scheme that submitted more than $23 million in false claims to Medicare.
February 25, 2013; U.S. Department of Justice
South Carolina Ambulance Company to Pay U.S $800,000 to Resolve False Claims Allegations
Williston Rescue Squad Inc. has agreed to pay the United States $800,000 to resolve allegations that it violated the False Claims Act by making false claims for payment to Medicare for ambulance transports, the Justice Department announced today. Williston, based in Williston, S.C., provides ambulance transport services in the southwestern part of South Carolina.
February 25, 2013; U.S. Attorney; Southern District of New York
Manhattan Doctor Pleads Guilty To $8.5 Million Medicare Fraud Scheme
Preet Bharara, the United States Attorney for the Southern District of New York, announced that Dr. Roberto Aymat, a medical doctor, pled guilty today in Manhattan federal court to participating in a scheme to defraud Medicare out of approximately $8.5 million through the use of fraudulent HIV/AIDS clinics in New York. As part of the scheme, Aymat and others billed Medicare for medications that were never administered or that were administered but were medically unnecessary. He pled guilty before U.S. District Judge George B. Daniels. Three other participants in the scheme, Asmed Barrera, Augusto Guzman, and Jorge Rivero, previously pled guilty.
February 25, 2013; U.S. Attorney; Southern District of Texas
Local Businessman Convicted in $19 Million Health Care Fraud Scheme
HOUSTON-Joseph Edem, 53, of Richmond, has been convicted of conspiracy to commit health care fraud relating to medically unnecessary diagnostic testing and physical therapy, United States Attorney Kenneth Magidson announced today.
February 25, 2013; U.S. Attorney; Southern District of Texas
South Texas Couple Sentenced in Bankruptcy Fraud Case
HOUSTON-Michael Giventer, 53, formerly of Brownsville, has been ordered to prison for five years following his conviction of conspiracy to commit bankruptcy fraud, United States Attorney Kenneth Magidson announced today. He pleaded guilty to the charge in spring 2012, along with his wife, Florida resident Julia Shavabskaya, 40.
February 25, 2013; U.S. Attorney; District of Connecticut
Old Saybrook Physical Therapist Sentenced, Agrees to Pay $328,828 to Resolve False Claims Act Liability
The United States Attorney for the District of Connecticut announced that Todd Roberts, 47, of Old Saybrook, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to three years of probation for obstructing a federal audit. Roberts and his physical therapy practice, Roberts Physical and Aquatics Therapy, also have entered into a civil settlement agreement with the government in which they will pay $328,828 to resolve allegations that they violated the False Claims Act.
February 25, 2013; King's County, NY District Attorney
Kings County District Attorney Collaborates with USDOJ, USHHS, and NYC Human Resources Administration to Prosecute Provider Doctor Charged With Overcharging Medicaid and Medicare Hundreds of Thousands of Dollars
Kings County District Attorney Charles J. Hynes today announced the creation of a first-of-its-kind collaboration, where local prosecutors and city agencies team up with the federal Health and Human Services Office of the Inspector General and the United States Attorney's Office, to investigate and prosecute doctors and pharmacists who commit fraud against Medicaid and Medicare. The Brooklyn District Attorney's Office will combine its efforts with those of Loretta E. Lynch, US Attorney for the Eastern District of New York; Kathleen Sebelius, United States Secretary for Health and Human Services; Daniel Levinson, Inspector General for HHS; Robert Doar, Commissioner of the New York City Human Resources Administration; and James Sheehan, HRA's Chief Integrity Officer.
February 22, 2013; U.S. Department of Justice
Illegal Marketer of Medicare Information Admits Role in Detroit-area Home Health Care Fraud Scheme
A health care worker who sold Medicare beneficiary information to Detroit-area home health agency operators as part of a $24.7 million home health care fraud conspiracy pleaded guilty today for his role in the scheme, which sought to profit by billing for home healthcare services that were medically unnecessary and not provided.
February 22, 2013; U.S. Attorney; Middle District of Pennsylvania
Harrisburg Ambulance Company Owner Pleads Guilty To Submitting False Statement To Medicare
The United States Attorney's Office for the Middle District of Pennsylvania announced today that the owner of a Harrisburg-based ambulance company has pleaded guilty to a False Statement charge related to Medicare fraud.
February 21, 2013; U.S. Attorney; Southern District of West Virginia
Golden Heart Executive Director Sentenced To Almost 4 Years in Federal Prison for Conspiracy
CHARLESTON, W.Va. - U.S. Attorney Booth Goodwin announced today that the founder and executive director of a St. Albans-based in-home care business was sentenced to 46 months in federal prison for conspiracy in connection with a health care fraud investigation. Shida S. Jamie, 63, owner of Golden Heart In Home Care, LLC (Golden Heart), previously pleaded guilty in October 2012. Jamie admitted that in or about August or early September 2009, she altered and falsified records and documents of Golden Heart. Golden Heart specialized in providing in-home care services to the elderly and disabled under a contract with Putnam Aging Inc., an authorized West Virginia Medicaid provider.
February 21, 2013; U.S. Attorney; Southern District of Texas
RGV DME Owner and Two Others Convicted in $11 Million Health Care Fraud Scheme
McALLEN - The owner of a now defunct McAllen area durable medical equipment (DME) business, his wife and another former employee have been convicted for their roles in a conspiracy and scheme to defraud Medicare and Medicaid through fraudulent billings, United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott announced today. As part of his plea, RGV DME Owner Marcello Herrera, 40, admitted he sent more than $11.1 million in false claims to Medicare and Medicaid.
February 21, 2013; U.S. Attorney; Eastern District of New York
Most Wanted "Deadbeat Parent" Pleads Guilty to Flight To Evade over $1.2 Million in Child Support Obligations
Earlier today, defendant Robert D. Sand, the nation's "Most Wanted Deadbeat Parent" according to a child support enforcement web page, pleaded guilty to two counts of traveling in interstate and foreign commerce with the intent to evade child support obligations totaling over $1.2 million. The proceedings were held before the Honorable Joseph F. Bianco at the United States Courthouse located in Central Islip, New York. Sand faces a maximum sentence of 4 years' imprisonment when sentenced on May 21, 2013.
February 21, 2013; U.S. Attorney; Middle District of Pennsylvania
Two Williamsport Residents Charged With Conspiracy to Submit False Income Tax Returns
The United States Attorney's Office for the Middle District of Pennsylvania announced today that charges have been filed against Cheryl Cobia and Sharieff Wilkins, both of Williamsport, Pennsylvania.
February 20, 2013; U.S. Attorney; Southern District of Georgia
Augusta Optometrist Pleads Guilty To Health Care Fraud Charge
Augusta, GA - Jeffrey Sponseller, 47, of Augusta, Georgia pleaded guilty today before United States District Court Judge J. Randal Hall to submitting over $800,000 in fraudulent claims to Medicare.
February 19, 2013; U.S. Attorney; Middle District of Tennessee
Miami Man Sentenced In Federal Court for Medical Identity Theft Scheme
Yennier Capote Gonzalez, 33, of Miami, Florida, was sentenced on February 15, 2013, by Chief U.S. District Judge William J. Haynes, Jr., to serve 67 months in federal prison, and ordered to pay restitution in the amount of $19,296 for his role in a medical identity theft scheme, announced Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee.
February 19, 2013; U.S. Attorney; Eastern District of Virginia
Provider of Home Health Care Services Pleads Guilty to $294,000 Medicaid Fraud
NORFOLK, Va. - Angie L. Gilchrist, 57, of Suffolk, Va., pleaded guilty today in Norfolk federal court to health care fraud. Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Virginia Attorney General Ken Cuccinelli made the announcement after Gilchrist's plea was accepted by United States District Senior Judge Henry C. Morgan, Jr. Gilchrist faces a maximum penalty of 10 years in prison and a fine of $250,000 when she is sentenced on May 22, 2013.
February 14, 2013; U.S. Attorney; Southern District of Illinois
Doctor Enters Guilty Plea in Obstruction Case
Dr. Mahmoud Yassin, 60, of Robinson, IL, pled guilty in federal district court for obstructing a criminal health care fraud investigator, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Dr. Yassin will be sentenced for this felony offense on May 30, 2013, in Benton, Illinois, at which time he may be sentenced to up to 10 years in prison, a fine of up to $250,000, a special assessment of $100, and a period of up to 3 years of supervised release following prison.
February 14, 2013; U.S. Attorney for the District of New Jersey
Cardiologist Admits Taking Cash Kickbacks for Patient Referrals
NEWARK, N.J. - An Edison cardiologist today admitted referring patients for diagnostic testing in exchange for cash kickbacks as part of a cash-for-patients scheme with a diagnostic facility in Orange, N.J., U.S. Attorney Paul J. Fishman announced.
February 13, 2013; U.S. Attorney; District of South Florida
CEO Charged in Multi-Million Dollar Embezzlement Scam
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kathy Fernandez Rundle, State Attorney for Miami-Dade County, jointly announced the filing of federal and state charges against defendant Kathryn Abbate, 64, of Hollywood, Florida.
February 13, 2013; U.S. Department of Justice
Northern Virginia Therapy Provider to Pay $700,000 to Resolve False Claims Act Allegations
Fairfax, Va.-based skilled nursing facility Fairfax Nursing Center (FNC) and its owners have agreed to pay $700,000 to resolve allegations that they violated the False Claims Act by knowingly submitting or causing the submission to Medicare of false claims for non-reimbursable rehabilitation therapy services, the Justice Department announced today.
February 13, 2013; U.S. Attorney; District of New Jersey
New Jersey Doctor Sentenced To Five Months in Prison for Taking Cash Kickbacks for Medicare and Medicaid Patient Referrals
NEWARK, N.J. - A New Jersey doctor practicing in West Orange was sentenced today to five months in prison and five months of home confinement for his role in a payment-for-patients scheme in which he took envelopes of cash in exchange for making patient referrals, U.S. Attorney Paul J. Fishman announced.
February 11, 2013; U.S. Department of Justice
Former Registered Nurse Sentenced in Miami to 111 Months in Prison in Connection with $63 Million Mental Health Care Fraud Scheme
A former registered nurse was sentenced today to serve 111 months in prison for his role in a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN), announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
February 11, 2013; U.S. Department of Justice
Florida Physician to Pay $26.1 Million to Resolve False Claims Allegations
Steven J. Wasserman, M.D., a dermatologist practicing in Venice, Fla., has agreed to pay $26.1 million to resolve allegations that he violated the False Claims Act by accepting illegal kickbacks from a pathology laboratory and by billing the Medicare program for medically unnecessary services, the Justice Department announced today. The settlement is the largest ever with an individual under the False Claims Act in the Middle District of Florida and one of the largest with an individual under the False Claims Act in U.S. history.
February 11, 2013; U.S. Attorney; Western District of North Carolina
Charlotte Jury Convicts Woman in $650,000 Medicaid Fraud Scheme
CHARLOTTE, N.C. - A federal jury sitting in Charlotte convicted a Charlotte woman late Friday, February 8, 2013 of defrauding Medicaid of at least $650,000, obstructing an official proceeding and making false statements in connection with a health care matter, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
February 8, 2013; U.S. Attorney; Southern District of New York
Leader of Armenian Organized Crime Ring Sentenced in Manhattan Federal Court to 37 Months in Prison for His Role in $100 Million Medicare Fraud Scheme
Preet Bharara, the United States Attorney for the Southern District of New York, announced that Armen Kazarian was sentenced today in Manhattan federal court to 37 months in prison for his involvement with the Mirzoyan-Terdjanian Organization, an Armenian-American organized crime enterprise engaged in a wide range of criminal activity. Kazarian pled guilty to racketeering conspiracy in July 2011 and was sentenced today by U.S. District Judge Paul G. Gardephe.
February 7, 2013; U.S. Attorney; Southern District of New York
Manhattan U.S. Attorney Files and Simultaneously Settles Lawsuit against St. Luke's-Roosevelt Hospital Center for Fraudulently Billing Medicare and Medicaid
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed and simultaneously settled a health care fraud lawsuit under the False Claims Act against the St. Luke's-Roosevelt Hospital Center (the "Hospital"), Continuum Health Partners, Inc., and SLR Psychiatric Associates ("SLR") (collectively, "ST. LUKE'S") for improperly billing Medicare and Medicaid for out-patient services provided at its mental health clinics. As part of the settlement, St. Luke's agreed to pay $2,325,000 to settle the Government's claims for damages and penalties under the False Claims Act, with $1,258,115.17 of that amount to be paid to the United States and the balance to the State of New York for its share of the Medicaid overpayment.
February 7, 2013; U.S. Department of Justice
Maryland's St. Joseph's Medical Center Agrees to pay $4.9 Million for Medically Unnecessary Hospital Admissions
St. Joseph's Medical Center, a hospital located in Towson, Md., has reached a settlement with the United States to pay $4.9 million in connection with its submission of false claims to Medicare, Medicaid and other federal healthcare programs, the Justice Department announced today.
February 7, 2013; U.S. Attorney; District of New Jersey
Eleven People Arrested In Large-Scale Medicaid Fraud Scheme
NEWARK, N.J. - Federal and state agents this morning arrested 11 people who are charged by Complaint, along with two corporations, in connection with a large-scale scheme to defraud the Medicaid program of millions of dollars, U.S. Attorney Paul J. Fishman announced today.
February 4, 2012; U.S. Attorney; District of Kansas
Former Topeka Nonprofit Executive Sentenced To Federal Prison For Scheme To Steal Kansas Medicaid Funds
Topeka, Kan. - A former executive with a Topeka-based nonprofit corporation has been sentenced to three years in federal prison for scheming to steal more than $2 million in Kansas Medicaid funds, U.S. Attorney Barry Grissom said today. He also was ordered to pay $2,077,251 in restitution.
February 4, 2013; U.S. Attorney; Southern District of Florida
Two Patient Recruiters of Miami Home Health Company Plead Guilty in $20 Million Health Care Fraud Scheme
Two patient recruiters for a Miami home health care company have pleaded guilty for their participation in a $20 million home health Medicare fraud scheme. The guilty pleas were announced today by U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; Michael B. Steinbach, Acting Special Agent-in-Charge of the FBI's Miami Field Office; and Special Agent-in-Charge Christopher Dennis of the HHS Office of Inspector General, Office of Investigations Miami Office.
February 4, 2013; U.S. Department of Justice
Company Plead Guilty in $20 Million Health Care Fraud Scheme
WASHINGTON - Two patient recruiters for a Miami home health care company have pleaded guilty for their participation in a $20 million home health Medicare fraud scheme. The guilty pleas were announced today by Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Acting Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations, Miami Office.
February 4, 2013; U.S. Attorney; District of Minnesota
Apple Valley Woman Pleads Guilty To Defrauding a Home Health Care Company and Medica
MINNEAPOLIS-Earlier today in federal court, an Apple Valley woman pleaded guilty to defrauding both her employer and Medica. Lori Jo Mueller, age 48, pleaded guilty to one count of wire fraud and one count of health care fraud in connection to the crime. Mueller, who was charged on January 9, 2013, entered her plea before United States District Court Judge David S. Doty. In her plea agreement, Mueller admitted that from June of 2006 through June of 2012, she embezzled approximately $840,000 from Edelweiss Home Health Care, using the funds for her personal use.
February 1, 2013; U.S. Attorney; District of Western Wisconsin
Social Worker Sentenced for Health Care Fraud
Madison, Wis. - John W. Vaudreuil, United States Attorney for the Western District of Wisconsin, announced that defendant Dennis J. Vandermause, 65, Spokane, Wash., was sentenced this week by U.S. District Judge Barbara B. Crabb to five years' probation, and a fine of $10,000 dollars for defrauding Wisconsin's Intensive In-Home Treatment Services Program. He was also ordered to pay $114,713.89 in restitution.
February 1, 2013; U.S. Attorney; Eastern District of Michigan
Pharmacist/pharmacy Owner Sentenced to 17 Years for Health Care Fraud, Drug Offenses
A 50-year-old Canton pharmacist who owned and operated 26 pharmacies in the metro-Detroit area was sentenced today to 17 years in prison, U.S. Attorney Barbara L. McQuade announced today.

January 2013

January 31, 2013; U.S. Attorney; District of New Jersey
Health Care Practitioner Sentenced To Six Months In Prison, Six Months Home Detention, For Accepting Cash Kickbacks For Patient Referrals
NEWARK, N.J. - Daisy Deguzman, a New Jersey doctor who practiced in Newark, today was sentenced to six months in prison and six months of home detention for her role in a cash-for-patients scheme with a diagnostic facility in Orange, N.J., U.S. Attorney Paul J. Fishman announced.
January 31, 2013; U.S. Attorney; Southern District of California
Doctor and Owner of Medical Supply Company Plead Guilty In Million-Dollar Power Wheelchair Scam
United States Attorney Laura E. Duffy announced that a California medical doctor and the owner of the Oceanside Medical Supply in Long Beach, CA have both pled guilty to participating in a conspiracy to defraud the Medicare trust fund by submitting more than $1 million in fraudulent power wheelchair claims. Dr. Irving Schwartz and Jose Melendez entered their guilty pleas before Magistrate Judge Nita L. Stormes in federal court in San Diego, and pursuant to their plea agreements, the defendants are obligated to pay restitution to the Medicare trust fund for the losses caused by their scheme.
January 31, 2013; U.S. Attorney; District of Connecticut
Stratford Doctor Pays $700,000 to Settle False Claims Act Allegations
David B. Fein, United States Attorney for the District of Connecticut, today announced that James P. Ralabate, MD, a physician, and his professional corporation, Primary Care Associates P.C., which is located at 2890 Main Street in Stratford, have entered into a civil settlement with the government in which they will pay $700,000 to resolve allegations that Ralabate violated the False Claims Act.
January 30, 2013; U.S. Attorney; Northern District of Texas
Physician Pleads Guilty to Role in Health Care Fraud Conspiracy
DALLAS - On the day his trial was to begin in U.S. federal court, Dr. Daniel K. Leong, 59, who owned South Dallas Community Medical Center (SDCMC) on Martin Luther King Blvd., in Dallas, pleaded guilty to one count of conspiracy to commit health care fraud. Leong, who is in federal custody, faces a maximum penalty of five years in federal prison, a $250,000 fine and restitution. Sentencing is set for May 1, 2013, before U.S. District Judge Ed Kinkeade.
January 30, 2013; U.S. Attorney; Western District of Missouri
Psychologist Sentenced For $1 Million Health Care Fraud
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a psychologist practicing in the Lebanon, Mo., area was sentenced in federal court today for engaging in a $1 million scheme to defraud Medicare and Medicaid.
January 28, 2013; U.S. Department of Justice
Miami-Area Therapist Sentenced to Prison in Florida in $205 Million Community Mental Health
Fraud Scheme

Miami-area resident Nichole Eckert, former therapist at the mental health care company American Therapeutic Corporation (ATC), was sentenced today to serve 48 months in prison for participating in a $205 million Medicare fraud scheme.
January 25, 2013; U.S. Department of Justice
Former Program Director and Marketers Sentenced to Prison in Florida in $205 Million Community Mental Health Fraud Scheme
The former program director and two former marketers for Miami-based mental health care company American Therapeutic Corporation (ATC) have been sentenced to prison for their roles in a $205 million Medicare fraud and kickback scheme in which patients were forced to attend inappropriate treatment programs.
January 24, 2013; U.S. Attorney; Central District of California
San Fernando Valley Doctor Pleads Guilty in Multi-Million-Dollar Medicare Fraud Case Involving Treatments Never Performed
LOS ANGELES-A medical doctor who owns a clinic in the Winnetka district of the San Fernando Valley pleaded guilty today to federal fraud charges for bilking Medicare out of more than $3 million by submitting bills for procedures never performed, sometimes involving patients he never met.
January 24, 2013; U.S. Attorney; District of New Jersey
Major New Jersey Hospital Pays $12.5 Million To Resolve Kickback Allegations
NEWARK, N.J. - The Cooper Health System has agreed with the U.S. Attorney's Office for the District of New Jersey and the State of New Jersey to pay $12.6 million to settle allegations that it violated the federal False Claims Act and New Jersey False Claims Act by making improper payments to physicians under so-called "consulting" and "compensation" agreements as it sought to build its cardiology program.
January 24, 2013; U.S. Department of Justice
Four Sentenced to Prison in Florida Community Mental Health Center Case
The owners of three Miami-area assisted living facilities and an affiliated psychologist were sentenced to prison today in connection with a health care fraud scheme, involving now-defunct Miami-area health provider Health Care Solutions Network Inc. (HCSN), in which Medicare was billed for mental health treatments that were unnecessary or not provided.
January 24, 2013; U.S. Attorney; District of Massachusetts
Another Orthofix Defendant Sentenced for Committing Medicare Fraud
BOSTON - A former Orthofix territory manager was sentenced yesterday for defrauding Medicare by forging patient medical records. Michael J. McKay, 32, was sentenced by U.S. District Court Judge Denise J. Casper to one year of probation, with the first three months to be served in home confinement, and ordered to forfeit $10,000 and pay a fine of $3,000. In May 2012, McKay pleaded guilty to healthcare fraud.
January 24, 2013; U.S. Attorney; Western District of Louisiana
Houston Man Sentenced for Health Care Fraud
SHREVEPORT, La: United States Attorney Stephanie A. Finley announced today that Godspower Joseph Essang, 35, of Houston, Texas, was sentenced today, to 37 months in federal prison with three years supervised release for Medicare fraud. Essang was also ordered to pay $613,096 in restitution to Medicare. Judge Maurice S. Hicks immediately remanded Essang into the custody of the U. S. Marshal's Service to begin serving his sentence.
January 23, 2013; U.S. Department of Justice
Former Miami Clinic Director Sentenced to 70 Months in Prison for Role in HIV Infusion Fraud Scheme
A former Miami HIV infusion clinic director was sentenced today to serve 70 months in prison for his role in a $26.2 million HIV infusion fraud scheme, announced Assistant Attorney General Lanny Breuer of the Criminal Division, U.S. Wifredo A. Ferrer of the Southern District of Florida, Acting Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
January 23, 2013; U.S. Attorney; District of Minnesota
Brooklyn Park Man Sentenced For Health Care Fraud
MINNEAPOLIS-Earlier today in federal court, a 52-year-old Brooklyn Park man was sentenced for executing a scheme to defraud Medicaid out of more than $500,000. United States District Court Judge David S. Doty sentenced Allwell Tam Inimgba to 18 months in prison on one count of health care fraud. Inimgba, was charged on September 21, 2012, and pleaded guilty on October 9, 2012.
January 22, 2013; U.S. Attorney; Eastern District of Virginia
Provider of Home Health Care Services Sentenced for Medicaid Fraud
NORFOLK, Va. - Janice W. Holland, 42, of Suffolk, Va., was sentenced today to 51 months in prison for health care fraud and alteration of records, and a mandatory consecutive sentence of 24 months in prison for aggravated identity theft, for a total sentence of 75 months. She was also ordered to pay restitution to the Virginia Medicaid program in the amount of $630,339.30.
January 18, 2013; U.S. Attorney; Western District of Louisiana
Former Owner of Rest Assure Home Medical Equipment Sentenced In Federal Court on Health Care Fraud Charges
LAFAYETTE, La.: United States Attorney Stephanie A. Finley announced today that the former owner of Rest Assure Home Medical Equipment, located in Rayne, La., was sentenced to five years probation and was ordered to pay $175,923.93 in restitution for health care fraud related to Medicare reimbursements. The sentence was handed down yesterday in federal court in Lafayette by U.S. District Judge Elizabeth E. Foote.
January 18, 2013; U.S. Department of Justice
Owner of Texas Durable Medical Equipment Companies Convicted in Fraud Scheme
A Texas federal judge convicted the owner of two Texas-based durable medical equipment companies today on multiple health care fraud charges following a five-day bench trial, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division.
January 17, 2013; U.S. Department of Justice
Seven Arrested, Charged with $22 Million Detroit-area Home Health Care Fraud Scheme
Six Detroit-area residents and one Chicago-area resident were arrested today by federal agents on charges arising from the ongoing investigation into an alleged $22 million home health care fraud scheme. The indictment was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan; Special Agent in Charge Robert D. Foley III of the FBI's Detroit Field Office; Special Agent in Charge Lamont Pugh III of the Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office; and Special Agent in Charge Erick Martinez of the Internal Revenue Service Criminal Investigation (IRS-CI) Detroit Field Office.
January 17, 2013; U.S. Attorney; Northern District of Ohio
Youngstown Man Indicted on Seven Counts of Health Care Fraud
A federal indictment was filed charging Rolando Sepulveda with seven counts of health care fraud in connection with the operation of his ambulette company, Med Transportation, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Ohio Attorney General Mike DeWine.
January 16, 2013; U.S. Attorney; District of Columbia
Maryland Man Sentenced to 19 Months in Prison for Medicaid Fraud Involving Power Wheelchairs and Incontinence Supplies
WASHINGTON - Uche Ben Odunzeh, 32, of Laurel, Md., was sentenced today to 19 months in prison on a federal charge stemming from the submission of more than $600,000 in false health care claims, announced U.S. Attorney Ronald C. Machen Jr.
January 16, 2013; U.S. Attorney; District of New Jersey
Hudson County, N.J., Pediatrician Charged With Fraudulently Billing Medicaid For Nearly $1 Million
NEWARK, N.J. - A Hudson County, N.J., pediatrician was arrested at his home this morning for fraudulently billing Medicaid $900,000 for wound-repair treatments on children that were never rendered, U.S. Attorney Paul J. Fishman announced.
January 15, 2013; U.S. Attorney; Eastern District of Michigan
Podiatrist Sentenced to 55 Months in Prison in Connection with $1.6 Million Medical Billing
Fraud Scheme

FLINT, MI-A Fenton podiatrist was sentenced in Bay City yesterday to 55 months in prison for his participation in a $1.6 million fraudulent medical billing scheme.
January 14, 2013; U.S. Department of Justice
Los Angeles Check Cashing Store, Its Head Manager and Compliance Officer Sentenced for Violating Anti-money Laundering Laws
WASHINGTON - A Los Angeles check cashing store, its head manager and its designated anti-money laundering compliance officer were sentenced today in the Central District of California for failing to follow reporting and anti-money laundering requirements for over $8 million in transactions in violation of the Bank Secrecy Act (BSA), announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney for the Central District of California André Birotte Jr; Assistant Director in Charge Bill L. Lewis of the FBI Los Angeles Division; Chief of the Internal Revenue Service Criminal Investigation (IRS-CI) Richard Weber; and Glenn R. Ferry, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General's (HHS-OIG) Los Angeles region.
January 11, 2013; U.S. Attorney; Eastern District of Texas
Collin County Couple Arrested for Health Care Fraud Violations
SHERMAN, TX-A Collin County, Texas husband and wife have been arrested and charged with health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
January 11, 2013; U.S. Attorney; Eastern District of Virginia
Owners of Woodbridge Home Health Business Convicted for Health Care Fraud, Aggravated
Identity Theft

ALEXANDRIA, Va. - The owners of a Woodbridge, Va.-based home health care business have been convicted by a federal jury in Alexandria, Va., for submitting numerous false claims to Medicaid for reimbursement for services they did not provide.
January 10, 2013; U.S. Attorney; District of Minnesota
Apple Valley Woman Charged With Defrauding Home Health Care Company, Medica
MINNEAPOLIS-Yesterday in federal court, an Apple Valley woman was charged with defrauding both her employer and Medica. On January 9, 2012, Lori Jo Mueller, age 48, was charged via an Information with one count of wire fraud and one count of health care fraud.
January 9, 2013; U.S. Attorney; District of Massachusetts
Orthofix Defendant Sentenced for Defrauding Medicare
BOSTON - A former manager of medical device company Orthofix was sentenced today in federal court for defrauding Medicare by falsifying patient medical records.
January 8, 2013; U.S. Department of Justice
Detroit Doctor Pleads Guilty in Connection with Medicare Psychotherapy Fraud Scheme
WASHINGTON-A Detroit doctor at the center of a $13.2 million psychotherapy fraud scheme, which used the Medicare information of mentally-disabled Detroit residents to defraud Medicare, pleaded guilty today for his role in the scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Robert D. Foley, III of the FBI's Detroit Field Office; and Special Agent in Charge Lamont Pugh, III of the U.S. Department of Health and Human Services Office of Inspector General, Chicago Regional Office.
January 7, 2013; U.S. Department of Justice
Owner of Detroit Adult Day Care Centers Pleads Guilty in Connection with Medicare Psychotherapy Fraud Scheme
WASHINGTON - The owner of several Detroit-area businesses that housed severely mentally-disabled Medicare recipients pleaded guilty today for his role in a $13.2 million fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI's Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General, Chicago Regional Office.
January 4, 2013; U.S. Attorney; District of Connecticut
Madison Woman Who Made False Statements about Use of Federal Funds Sentenced To Federal Prison
David B. Fein, United States Attorney for the District of Connecticut, announced that AMY KUHNER, 55, formerly of Madison, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 15 months of imprisonment, followed by three years of supervised release, for making false statements about her use of federal grant monies. KUHNER also was ordered to pay a $5,000 fine.
January 4, 2013; U.S. Attorney; Northern District of Ohio
EMH Regional Medical Center and North Ohio Heart Center to pay $4.4 million to resolve False Claims Act Allegations
EMH Regional Medical Center has agreed to pay the United States $3,863,857 and North Ohio Heart Center Inc. (NOHC) has agreed to pay the United States $541,870 to settle allegations that they submitted false claims to Medicare, the Justice Department announced today.
January 4, 2013; U.S. Attorney; Southern District of Illinois
Thirteen-Year Fugitive Dr. Juan Rios Sentenced
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on January 4, 2013, Juan Rios, 65, of Peru, was sentenced to 37 months in prison and ordered to pay fines and restitution totaling over $320,000 for his conviction on health care fraud, mail fraud, and failure to appear. Rios was also ordered to serve three years of supervised release after his period of incarceration.
January 4, 2013; U.S. Attorney; District of New Jersey
Medical Assistant Pleads Guilty to Conspiracy to Bill Medicare for Unlicensed Physician's Services
NEWARK, N.J. - A medical assistant at a pair of large medical services companies with offices in New Jersey and New York admitted today to conspiring with the companies' chief executive officer to defraud Medicare over a four-year period by performing illegal, unlicensed physicians' services for patients, U.S. Attorney Paul J. Fishman announced. Mario Roncal, 61, of Woodland Park, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an Indictment charging him with one count of conspiracy to commit health care fraud.
January 4, 2013; U.S. Attorney; Western District of North Carolina
Shelby Woman Pleads Guilty To Defrauding Medicaid of $8 Million, Aggravated Identity Theft and Tax Fraud
CHARLOTTE, N.C. - A Shelby woman pleaded guilty today for her involvement in a health care fraud scheme that defrauded Medicaid of $8 million for sham mental and behavioral health services, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. In addition to defrauding Medicaid, Victoria Finney Brewton, 37, of Shelby, N.C., also pleaded guilty to stealing a therapist's identity to commit the fraud and to filing a false tax return.
January 3, 2013; U.S. Attorney; District of Maryland
Defendant Collected SSA Disability Benefits While Employed By SSA
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Christopher George Perry, age 50, of Baltimore, today to two years in prison followed by three years of supervised release for social security disability fraud, federal health benefit program fraud and health care fraud. Judge Bennett also ordered Perry to pay restitution totaling $154,234.54 to the Social Security Administration and Medicare.
January 3, 2013; U.S. Department of Justice
Florida-Based American Sleep Medicine to Pay $15.3 Million for Improperly Billing Medicare and Other Federal Healthcare Programs
Florida-based American Sleep Medicine LLC has agreed to pay $15,301,341 to resolve allegations that it billed Medicare, TRICARE - the health care program for Uniformed Service members, retirees and their families worldwide - and the Railroad Retirement Medicare Program for sleep diagnostic services that were not eligible for payment, the Justice Department announced today.
January 3, 2013; U.S. Department of Justice
Owner of Detroit Adult Day Care Centers Pleads Guilty in Connection with Medicare Psychotherapy Fraud Scheme
WASHINGTON - The owner of several Detroit-area adult day care centers pleaded guilty today for her role in a $13.2 million psychotherapy fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI's Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General, Chicago Regional Office.
January 3, 2013; U.S. Attorney; Middle District of Alabama
Wetumpka Woman Indicted for Stealing Over $750,000 from Medicaid
Montgomery, Alabama - Lashawn Denise Anthony, 41, of Wetumpka was arraigned today on charges that she stole over $750,000 from Alabama Medicaid, announced George L. Beck, U.S. Attorney for the Middle District of Alabama.
January 2, 2013; U.S. Attorney; Northern District of Georgia
Golden Living Nursing Homes Settle Allegations of Substandard Wound Care
ATLANTA - The United States Attorney's Office today announced that the United States and the State of Georgia have reached a settlement with GGNSC Holdings, LLC, of Plano, Texas, the operator of skilled nursing facilities located in Atlanta, Georgia, to resolve allegations under the False Claims Act and the Georgia State False Medicaid Claims Act, that GGNSC provided inadequate and worthless wound care services to residents at two of its Atlanta area nursing homes. GGNSC operates nursing homes under the "Golden Living" name. GGNSC has agreed to pay $613,300 to resolve these allegations. The United States' share of the settlement is $423,544.

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