Skip Navigation Change Font Size

Criminal and Civil Enforcement

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.

Top

Return to Enforcement Actions

I'm Looking For

Let's start by choosing a topic

Exclusions Database Report Fraud
Newsletter Sign Up Envelop Graphic

Stay up to date on the latest OIG news and opinions

Office of Inspector General, U.S. Department of Health and Human Services | 330 Independence Avenue, SW, Washington, DC 20201