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</li> </ul> </div> <div id="leftContentInterior"> <h1 class="m-remove">Criminal and Civil Enforcement</h1> <div class="featuredContent"> <p><a class="archive" href="/web/20140705072916/https://oig.hhs.gov/reports-and-publications/archives/enforcement/criminal/criminal_archive_2014.asp">Criminal and Civil Enforcement Archive</a></p> </div>   <div class="contentSeparator"></div> <h2 id="jul14">July 2014</h2> <dl class="criminal_report"> <dt id="CEA2014070301">July 2, 2014; U.S. Attorney; District of Connecticut</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/ct/Press2014/20140702-1.html">Connecticut Doctor Charged With Illegally Prescribing Oxycodone, Other Controlled Substances</a><br/> Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that DR. John Katsetos, 52, of Fairfield, was arrested yesterday on a charge that he exceeded the scope of his medical license to dispense controlled substances.</dd> <dt id="CEA2014070201">July 1, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/July/14-crm-693.html">Physician Pleads Guilty for Role in Detroit-Area Medicare Fraud Scheme</a><br/> A Detroit-area physician pleaded guilty today for his role in a $7 million health care fraud scheme. Walayat Khan, 66, of Ypsilanti, Michigan pleaded guilty before U.S. District Judge Paul D. Borman in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. Sentencing is scheduled for Oct. 7, 2014.</dd> <dt id="CEA2014070202">July 1, 2014; U.S. Attorney; Southern District of New York </dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nys/pressreleases/July14/HuachilloOscarPleaPR.php">Former Operator of NYC Health Clinics Pleads Guilty In Manhattan Federal Court to $30 Million Medicare Fraud Scheme</a><br/> Preet Bharara, the United States Attorney for the Southern District of New York, Thomas O'Donnell, the Special Agent-in-Charge of the New York Field Office of the United States Department of Health and Human Services Office of the Inspector General, Shantelle Kitchen, the Acting Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation Division, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation, announced today that Oscar Huachillo, the former operator of multiple HIV/AIDS clinics in New York City, pled guilty to orchestrating a scheme to defraud Medicare out of more than $31 million by billing Medicare for expensive treatments that were administered at a highly diluted dose or never administered at all, and were often medically unnecessary. Huachillo also pled guilty to evading more than $3.4 million in federal income taxes by falsely underreporting his income. Huachillo pled guilty before U.S. District Judge Katherine Polk Failla.</dd> </dl> <div class="contentSeparator"></div> <h2 id="jun14">June 2014</h2> <dl class="criminal_report"> <dt id="CEA2014070203">June 30, 2014; U.S. Attorney; District of North Dakota</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nd/news/2014/06-30-14-Chen%20Sentenced.html">Physician Sentenced for Medicare Fraud</a><br/> FARGO - U.S. Attorney Timothy Q. Purdon announced that John C. Chen, 50, Seattle, Washington, was sentenced on June 30, 2014, before U.S. District Judge Ralph R. Erickson to one year of probation for unlawful possession of an identification feature. Chen, a physician, was also ordered to pay restitution of $56,642.52 to the Centers for Medicare and Medicaid Services, which he satisfied as part of $150,000.00 settlement of a parallel civil proceedings in the Western District of Washington alleging violations under the False Claims Act. Chen was ordered to pay a $25 special assessment to the Crime Victims Fund in addition to his sentence.</dd> <dt id="CEA2014070101">June 30, 2014; U.S. Attorney; Western District of Missouri</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/mow/news2014/essary.sen.html">Former KC Man Sentenced For Fleeing U.S. To Avoid Paying Child Support</a><br/> KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Kansas City, Mo., man who has been living in Thailand was sentenced in federal court today for fleeing the United States in 2007 to avoid paying child support. Randy Lee Essary, 61, of Springfield, Mo., was sentenced by U.S. District Judge Brian C. Wimes to 21 months in federal prison without parole. The court also ordered Essary to pay $170,891 in child support.</dd> <dt id="CEA2014070102">June 30, 2014; U.S. Attorney; District of Maryland</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/md/news/2014/BaltimoreManSentencedToOver5YearsInPrisonForDozensOfCommercialBurglaries.html">Baltimore Man Sentenced To Over 5 Years In Prison For Dozens Of Commercial Burglaries</a><br/> Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Carl Paschall, Jr., age 32, of Baltimore, today to 66 months in prison followed by three years of supervised release for conspiring to commit bank larceny and interstate transportation of stolen goods. Judge Motz also entered an order that Paschall pay $200,000 in restitution. The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Howard County Police Chief William McMahon; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Kevin Davis; Special Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region; and Commissioner Anthony W. Batts of the Baltimore Police Department.</dd> <dt id="CEA2014063001">June 27, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/June/14-crm-675.html">Patient Recruiter Pleads Guilty For Role in $6.5 Million Health Care Fraud Scheme</a><br/> WASHINGTON - A patient recruiter for a Miami home health care agency pleaded guilty today in connection with a health care fraud scheme involving defunct home health care company Nestor's Health Services Inc. (Nestor HH). The owner and operator of Nestor HH pleaded guilty to charges related to the scheme earlier this month. On June 27, 2014, Euridice Borroto, 45, of Miami, Florida, pleaded guilty before U.S. Magistrate Judge Jonathan Goodman in the Southern District of Florida to one count of conspiracy to solicit and receive health care kickbacks and to defraud the United States. Sentencing is scheduled for Aug. 25, 2014.</dd> <dt id="CEA2014063002">June 27, 2014; U.S. Attorney; Southern District of New York</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nys/pressreleases/June14/ContinuumHealthPartnersincLawsuotPR.php">Manhattan U.S. Attorney Files Civil Fraud Suit against Hospital Group for Fraudulently Delaying Repayment of Nearly $1 Million of Medicaid Overcharges</a><br/> Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas P. DiNapoli, the New York State Comptroller, today announced the filing and unsealing of a civil fraud lawsuit against Continuum Health Partners, Inc., Beth Israel Medical Center d/b/a Mount Sinai Beth Israel, and St. Luke's-Roosevelt Hospital Center d/b/a Mount Sinai St. Luke's and Mount Sinai Roosevelt for the hospitals' fraudulent delay in fully repaying nearly $1 million in Medicaid overpayments for almost two years after it had discovered the overpayments. Federal law requires that when a recipient of Government funds discovers it has been overpaid, it must repay the Government within 60 days, but the hospitals in this case did not complete their repayments for nearly two years, and then only after repeated Government inquiries.</dd> <dt id="CEA2014062701">June 26, 2014; U.S. Attorney; District of Maryland</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/md/news/2014/DoctorsIndictedForHealthCareFraud.html">Doctors Indicted For Health Care Fraud</a><br/> Greenbelt, Maryland - A federal grand jury has indicted two doctors, Paramjit Singh Ajrawat, age 60, and his wife, Sukhveen Kaur Ajrawat, age 56, both of Potomac, Maryland, on charges of health care fraud in connection with the pain clinic they owned and operated. The indictment was returned on June 24, 2014.</dd> <dt id="CEA2014062702">June 26, 2014; U.S. Attorney; Eastern District of Pennsylvania</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/pae/News/2014/June/vasserman_release.htm">Ambulance Company Manager Sentenced To Five Years for Role in Medicare Fraud Conspiracy</a><br/> PHILADELPHIA - Mikhail Vasserman, 51, of Philadelphia, PA., was sentenced today to five years in prison for his role in a health care fraud scheme involving Penn Choice Ambulance Inc., operating from Huntingdon Valley, PA and Camp Hill, PA. Vasserman pleaded guilty on October 21, 2013 to conspiracy to commit health care fraud, false statements relating to health care matters, and paying kickbacks to patients, a total of 14 counts. Vasserman, who was the manager for Penn Choice's Huntingdon Valley base, was indicted with the company's owner Anna Mudrova, and operators Yury Gerasyuk, Irina Vasserman, Aleksandr Vasserman, Khusen Akhmedov, and Valeriy Davydchik, all of whom have pleaded guilty.</dd> <dt id="CEA2014062703">June 26, 2014; U.S. Attorney; Western District of Virginia</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/vaw/news/klein_26jun2014.html">Operators of Brian Center Health and Rehabilitation Center Indicted</a><br/> ROANOKE, VIRGINIA - A Federal Grand Jury in the Western District of Virginia in Roanoke has charged four individuals with a variety of Federal crimes, including racketeering [RICO], relating to the operation of a Weber City, Va., skilled nursing facility. In an indictment returned Tuesday, June 24, 2014, the Grand Jury has charged Avi Klein, 45, of Miami Beach, Fla., Alicia Dietrich, 52, of Lancaster, Ohio, Charles R. Menten, 62, of Wilton Manors, Fla., and Vicki Cox, 46, of Kingsport, Tenn. with various crimes relating to the operation of the nursing facility formerly known as the Brian Center Health and Rehabilitation Center in Weber City, Va.</dd> <dt id="CEA2014062601">June 25, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/June/14-civ-670.html">Nation's Largest Nursing Home Pharmacy Company to Pay $124 Million to Settle Allegations Involving False Billings to Federal Health Care Programs</a><br/> Omnicare Inc., the nation's largest provider of pharmaceuticals and pharmacy services to nursing homes, has agreed to pay $124.24 million for allegedly offering improper financial incentives to skilled nursing facilities in return for their continued selection of Omnicare to supply drugs to elderly Medicare and Medicaid beneficiaries, the Justice Department announced today. Omnicare is headquartered in Cincinnati, Ohio.</dd> <dt id="CEA2014062602">June 25, 2014; U.S. Attorney; Western District of North Carolina</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/ncw/pressreleases/2014/Charlotte-2014-06-25-le.html">Huntersville Physician Pleads Guilty To Health Care Fraud and Tax Fraud and Agrees To Pay $6.2 Million to Settle Civil Fraud Claims</a><br/> CHARLOTTE, N.C. - Mark Tuan Le, an internal medicine physician and former owner of Northcross Medical Center, pleaded guilty today to federal criminal charges in connection with a healthcare fraud scheme that billed health insurers for services that were not performed and for evading over $800,000 in taxes in 2009 and 2010, announced Anne M. Tompkins U.S. Attorney for the Western District of North Carolina. Earlier this month, Le, 55 of Huntersville, N.C., also agreed to pay $6.2 million to the United States to settle civil fraud allegations that Le and his medical center defrauded Medicare and Medicaid by submitting claims for medically unnecessary diagnostic test and procedures. The $6.2 million settlement is the Western District's largest ever against a single physician.</dd> <dt id="CEA2014062603">June 25, 2014; U.S. Attorney; Eastern District of Pennsylvania</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/pae/News/2014/June/fleshler_release.htm">Ambulance Company Co-Owner Sentenced To 13 1/2 Years for Health Care Fraud Scheme</a><br/> PHILADELPHIA - Vadim Fleshler, 33, of Philadelphia, PA, was sentenced today to 162 months in prison for a healthcare fraud scheme involving Superior EMS Ambulance Co., located in Huntingdon Valley, PA. Fleshler was a founder of Superior EMS Ambulance and managed its day-to-day operations. In December 2013, Fleshler pleaded guilty to all counts against him in the indictment including health care fraud, false statements in connection with health care matters, and conspiracy to commit health care fraud.</dd> <dt id="CEA2014062604">June 25, 2014; U.S. Attorney; District of Idaho</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/id/news/2014/jun/fernandez06252014.html">Caldwell Man Pleads Guilty to Social Security Fraud</a><br/> BOISE - Jose Louis Fernandez, 44, of Caldwell, Idaho, pleaded guilty today in federal court to one count of Social Security Fraud by Concealment of Material Facts, U.S. Attorney Wendy J. Olson announced. Sentencing is set before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise on September 4, 2014.</dd> <dt id="CEA2014070302">June 24, 2014; U.S. Attorney; Northern District of Iowa</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/ian/news/2014/jun_14/6_24_14_Blackhawk.html">Nursing Facility Agrees To Repay $500,000 to Resolve Civil Overpayment Allegations</a><br/> Blackhawk Lifecare Center, a skilled nursing facility in Lake View, Iowa, has agreed to pay $500,000 to resolve civil allegations that the facility, which utilized a third party therapy services provider, submitted or caused to be submitted improper therapy services claims for payment to the government. The government did not allege that Blackhawk's care resulted in patient harm or jeopardy to patients' conditions. As part of the settlement, Blackhawk did not admit to any liability or wrongdoing. </dd> <dt id="CEA2014062605">June 24, 2014; U.S. Attorney; District of Montana</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/mt/pressreleases/20140624171722.html">Former Blackfeet Po'Ka Project Officials Sentenced for Massive Grant Fraud HHS Inspector General Claims $4.6 million in Potential Fraud</a><br/> GREAT FALLS -- The United States Attorney's Office announced today that former officials of the Blackfeet Tribe's Po'Ka Project, a multi-million dollar federally funded effort to address the needs of troubled youth on the reservation, were sentenced in federal court in Great Falls by U.S. District Court Judge Brian M. Morris.</dd> <dt id="CEA2014062501">June 24, 2014; U.S. Attorney; Southern District of New York</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nys/pressreleases/June14/JoaquinGroceryArrestsPR.php">Six Charged In Manhattan Federal Court for Operating Illegal Prescription Drug Ring Out Of Bronx Grocery Store</a><br/> Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, and William J. Bratton, Commissioner of the New York City Police Department, announced today criminal charges against Carlos Paniagua, Jose Osvaldo Paniagua Jr., Jose Rafael Paniagua, Jose Osvaldo Paniagua Sr., Joan Torres and Jose Borgen-Reyes, for operating a massive prescription drug diversion ring, including the trafficking of both oxycodone and expensive HIV medication, out of Joaquin Grocery & Deli, a grocery store in the Bronx. All of the defendants except BORGEN-REYES currently operate Joaquin Grocery & Deli, a grocery store at 598 Morris Avenue in the Bronx, New York. In addition to selling grocery products, the Joaquin Grocery has operated for years as a marketplace for Medicaid Beneficiaries to sell their Medicaid-reimbursed prescription medication, including Oxycontin, Percocet, and expensive HIV medications.</dd> <dt id="CEA2014062401">June 24, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/June/14-crm-656.html">Owner of Home Health Company Pleads Guilty to Role in $6.5 Million Health Care Fraud Scheme</a><br/> The owner and operator of Nestor's Health Services, Inc. (Nestor HH), a now-defunct Miami home health care agency, pleaded guilty today in connection with a $6.5 million health care fraud scheme. Cruz Sonia Collado, 64, of Homestead, Florida, pleaded guilty before U.S. District Judge Robert N. Scola in the Southern District of Florida to one count of conspiracy to offer and pay health care kickbacks and to defraud the United States, and to one count of offering and paying health care kickbacks.</dd> <dt id="CEA2014062402">June 23, 2014; U.S. Attorney; Western District of Arkansas</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/arw/pressreleases/2014-06-23-Johnson.html">$4 Million Recovery in Dr. Stacey Johnson Matter</a><br/> Harrison, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced today a recovery of property in excess of $4,000,000.00, resulting from a claim filed in the Probate Estate of Stacey M. Johnson, deceased, in Baxter County, Arkansas, and through a civil forfeiture action filed in United States District Court. Both actions were filed by the U.S. Attorney's Office in September 2013. The Probate Court has today entered an Order directing that $3,480,000.00 of the assets of the Estate will go to the United States.</dd> <dt id="CEA2014062403">June 23, 2014; U.S. Attorney; District of Maine</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/me/news/20140623_suhum_sergio_sentenced.html">Guatemalan Man Sentenced to 16 Months for Fraud</a><br/> Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Sergio Suhum, also known as Sergio Suhum-Nacho, 26, a citizen of Guatemala illegally present in the United States, who most recently resided in Brunswick, Maine, was sentenced in U.S. District Court by Judge D. Brock Hornby to 16 months in prison for social security fraud, immigration document fraud, false personation of an American citizen, and theft of government benefits. He was also ordered to pay $1,354 in restitution. He pled guilty in February 2014.</dd> <dt id="CEA2014062301">June 19, 2014; U.S. Attorney; District of South Dakota</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/sd/pressreleases/2014/Pierre-2014-06-19-Levy.html">Rosebud Woman Sentenced For Acquiring Controlled Substances by Fraud</a><br/> United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman convicted of Acquiring Controlled Substances by Fraud and Theft was sentenced on June 17, 2014, by U.S. District Judge Roberto A. Lange.</dd> <dt id="CEA2014062001">June 19; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/June/14-crm-650.html">Patient Recruiter Pleads Guilty in Miami for Role in $205 Million Health Care Fraud Scheme</a><br/> A former patient recruiter pleaded guilty today in Miami, Florida, for his role in a $205 million Medicare fraud scheme.</dd> <dt id="CEA2014062002">June 19; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/June/14-crm-648.html">Former Owner of Physical Therapy Clinic Sentenced to Prison in Connection with Health Care Fraud Scheme</a><br/> A Florida man who was convicted of conspiracy to commit health care fraud was sentenced to serve 27 months in prison today in federal court in Tampa, Florida.</dd> <dt id="CEA2014062003">June 19, 2014; U.S. Attorney; Southern District of Illinois</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/ils/News/2014/Jun/06192014_Jones%20Press%20Release.html">Federal Jury Convicts Centreville Woman Of Bilking Medicaid</a><br/> Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on June 18, 2014, Irma Jones, 67, of Centreville, Illinois, after a three day jury trial in the United States District Court in East St. Louis, was convicted by jury after less than one hour deliberation on all three counts of an indictment charging that she engaged in a scheme to defraud the Medicaid program. The three counts included health care fraud, making false statements in connection with a healthcare benefit program, and lying to investigating agents when confronted with her scam. Sentencing in this case is set for October 10, 2014. The charge carries a maximum penalty of 10 years in prison, a $250,000 fine, and up to 3 years of supervised release.</dd> <dt id="CEA2014062004">June 19, 2014; U.S. Attorney; Middle District of Pennsylvania</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/pam/news/2014/Umana_06_19_14.html">Harrisburg Health Care Provider Charged Federally With Medicaid Fraud</a><br/> The United States Attorney's Office for the Middle District of Pennsylvania announced today that a Harrisburg-area health care services provider was charged on June 18th by a federal grand jury with making false statements relating to health care matters, money laundering, and identity theft.</dd> <dt id="CEA2014062005">June 18, 2014; U.S. Attorney; Eastern District of Kentucky</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/kye/news/2014/2014-06-18-murugesan.html">Somerset Oncology Practice and Office Manager Plead Guilty to Food, Drug and Cosmetic Act Offenses Related to Misbranded Cancer Treatment Drug</a><br/> LEXINGTON, KY - Hematology and Oncology Center PLLC (HOC) in Somerset, Ky., pled guilty in federal court on Tuesday to charges of knowingly receiving a misbranded cancer treatment drug.</dd> <dt id="CEA2014061901">June 18, 2014; U.S. Attorney; Northern District of California</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/can/news/2014/2014_06_18_three.sentenced.press.html">Three Defendants Sentenced To Prison In $3.2M Medicare Fraud Scheme</a><br/> SAN FRANCISCO - Patrick Adebowale Sogbein, his wife, Adebola Adefunke Adebimpe, and Eduardo Abad were sentenced yesterday to prison terms of 144 months, 51 months, and 12 months and 1 day, respectively, for conspiracy to commit health care fraud and health care fraud, announced United States Attorney Melinda Haag; David Johnson, Special Agent in Charge of the FBI in San Francisco; and Glenn R. Ferry, the Special Agent in Charge for the Los Angeles Regional Office of Inspector General of the Department of Health and Human Services.</dd> <dt id="CEA2014061902">June 18, 2014; U.S. Attorney; Southern District of Florida</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/fls/PressReleases/140618-01.html">Office Worker Pleads Guilty in Miami for Role in $7 Million Health Care Fraud Scheme</a><br/> An office worker pleaded guilty today in connection with a health care fraud scheme involving Anna Nursing Services Corp. (Anna Nursing), a defunct home health care company.</dd> <dt id="CEA2014061801">June 17, 2014; U.S. Attorney; Northern District of Illinois</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/iln/pr/chicago/2014/pr0617_01.html">U.S. Files Lawsuit against IPC the Hospitalist Company, Alleges Overbilling of Federal Health Insurers for Physician Services</a><br/> CHICAGO - The United States filed a civil lawsuit against California-based IPC The Hospitalist Company, Inc., and its subsidiaries, alleging that IPC submitted false claims to federal health care programs, the U.S. Attorney's Office announced today. The complaint alleges that IPC violated the federal False Claims Acts by knowingly engaging in systematic overbilling for hospital evaluation and management services billed to Medicare, Medicaid, and other federal health benefit programs.</dd> <dt id="CEA2014061802">June 17, 2014; U.S. Attorney; District of Idaho</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/id/news/2014/jun/pace06172014.html">Nampa Woman Pleads Guilty to Controlled Substance Delivery</a><br/> BOISE - Mary Jane Pace, 49, of Nampa, Idaho, pleaded guilty today to one count of distributing a controlled substance, U.S. Attorney Wendy J. Olson announced. Sentencing is set for September 9, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. According to the plea agreement, on May 24, 2012, Pace knowingly and intentionally distributed to an undercover police officer, five pills of 40 mg oxycodone, a Schedule II narcotic and controlled substance, in exchange for $100 in payment. She had obtained the controlled substances by prescription from a provider.</dd> <dt id="CEA2014061701">June 13, 2014; U.S. Attorney; Northern District of California</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/can/news/2014/2014_06_13_vaziri.sentenced.press.html">Napa Doctor Sentenced To Federal Prison for Tax Fraud</a><br/> SAN FRANCISCO - Ali Vaziri was sentenced yesterday to one year and one day in prison and ordered to pay a $10,000 fine and $116,703 in restitution for tax fraud, announced U.S. Attorney Melinda Haag, Federal Bureau of Investigation Special Agent in Charge David J. Johnson, IRS Criminal Investigation Special Agent in Charge José M. Martinez, and Department of Health and Human Services Office of Inspector General Special Agent in Charge Ivan Negroni.</dd> <dt id="CEA2014061702">June 13, 2014; U.S. Attorney; District of Idaho</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/id/news/2014/jun/minas06132014.html">Boise Doctor Charged With Controlled Substance Delivery</a><br/> BOISE - Michael Minas, 49, of Boise, Idaho, appeared today in federal court in Boise on an indictment charging him with seventeen counts of distributing a controlled substance, U.S. Attorney Wendy J. Olson announced. He was arrested yesterday morning outside of his medical practice in Eagle. Trial is set for August 12, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. The indictment alleges that Minas distributed oxycodone 30 mg and Oxycontin 80 mg, both Schedule II controlled substances, and diazepam, a Schedule IV controlled substance, and that he did so outside the usual course of professional practice and not for a legitimate medical purpose.</dd> <dt id="CEA2014061601">June 13, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/June/14-crm-632.html">Houston Ambulance Operator Sentenced for Her Role in $2.4 Million Health Care Fraud Scheme</a><br/> The owner and operator of a Houston area ambulance company was sentenced today to serve 97 months in prison for her role in a $2.4 million Medicare fraud scheme. Gwendolyn Climmons-Johnson, 54, was convicted by a federal jury in Houston, Texas, on Oct. 30, 2013, of one count of conspiracy to commit health care fraud and four counts of health care fraud. In addition to the prison sentence, Climmons-Johnson was also sentenced to serve three years of supervised release and ordered to pay $972,132 in restitution.</dd> <dt id="CEA2014061602">June 13, 2014; U.S. Attorney; Southern District of Florida</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/fls/PressReleases/140613-01.html">Miami Beach Physician Sentenced in Medicare Fraud Scheme</a><br/> Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Ryan P. Lynch, Acting Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration, Miami Field Division, announce that Christopher Gregory Wayne, 54, an osteopathic physician residing in Miami Beach, was sentenced today by U.S. District Judge Robert N. Scola, Jr. to 70 months in prison, followed by three years of supervised release. In addition, Judge Scola entered a $1.6 million forfeiture money judgment against Wayne and ordered the forfeiture of his Miami Beach residence and a 2002 Mercedes Benz. Christopher Gregory Wayne was also ordered to pay restitution to the Centers for Medicare and Medicaid Services in the amount of $1,649,042, the amount of loss suffered by the Medicare program.</dd> <dt id="CEA2014061603">June 13, 2014; U.S. Attorney; District of Maryland</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/md/news/2014/NursingHomeChainToPay750000ToResolve.html">Nursing Home Chain to Pay $750,000 to Resolve False Claims Act Allegations</a><br/> Baltimore, Maryland - Foundation Health Services, Inc. (FHS), its affiliated nursing facilities, and its president and chief executive officer Richard Daspit, Sr., have agreed to pay $750,000 to the United States and the State of Maryland to resolve allegations that they submitted false claims for payment to Medicaid and Medicare for materially substandard and/or worthless skilled nursing facility services. FHS is a Louisiana not-for-profit company that owns and manages nine nursing facilities in Pennsylvania, Mississippi, Virginia and Maryland, including Rock Glen Nursing and Rehabilitation Center, and Harborside (formerly Ravenwood) Nursing Center, both located in Baltimore City.</dd> <dt id="CEA2014061301">June 12, 2014; U.S. Attorney; Middle District of Louisiana</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/lam/news/2014/pr2014024.html">Federal Jury Convicts Owner of Healthcare Company in Multi-Million Dollar Fraud Scheme</a><br/> BATON ROUGE, LA - United States Attorney Walt Green announced that a federal jury returned unanimous verdicts of guilty this afternoon against Ahaoma Boniface Ohia, age 60, of Missouri City, Texas, on all seven counts of wire fraud charged in the indictment against him. Ohia was convicted of engaging in a multi-million dollar scheme to defraud Medicare from January 2007 through February 2009 through his company, All-Star Medical Supplies.</dd> <dt id="CEA2014061302">June 12, 2014; U.S. Attorney; District of New Jersey</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nj/Press/files/Jafari,%20Maryam%20Sentencing%20PR.html">New Jersey Doctor Sentenced To 21 Months in Prison for Taking Cash Kickbacks for Patient Referrals</a><br/> NEWARK, N.J. - A doctor who was convicted at trial of receiving cash kickbacks for diagnostic testing referrals was sentenced today to 21 months in prison, U.S. Attorney Paul J. Fishman announced today. Maryam Jafari, 43, was convicted Feb. 4, 2014, of all three counts of a superseding indictment charging her with conspiracy and two counts of violating the federal health care anti-kickback statute after a three-week trial before U.S. District Judge Claire C. Cecchi, who imposed the sentence today in Newark federal court. Jafari was a doctor licensed in New Jersey to practice internal medicine and operated an office in Newark. From 2010 through December 2011, Jafari solicited and received cash kickbacks from Orange Community MRI LLC in exchange for MRIs and CAT scans she referred to the diagnostic testing facility.</dd> <dt id="CEA2014061303">June 12, 2014; U.S. Attorney; District of Montana </dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.fbi.gov/saltlakecity/press-releases/2014/blackfeet-tanf-scheme-leads-to-30-months-in-federal-custody">Blackfeet TANF Scheme Leads to 30 Months in Federal Custody</a><br/> The United States Attorney's Office announced that SANDRA MARIE SANDERVILLE, 58, of Browning, was sentenced on June 12, 2014, to 30 months in federal prison, to be followed by two-and-one-half years of supervised release, by U.S. District Judge Brian M. Morris. During the hearing in Great Falls, Sanderville was also ordered to pay $297,612 in restitution. Sanderville was sentenced in connection with her February 27, 2014, guilty plea to theft from an Indian Tribal Government receiving federal grant funds.</dd> <dt id="CEA2014061101">June 10, 2014; U.S. Attorney; Southern District of New York </dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nys/pressreleases/June14/JordanStevenArrestPR.php">Manhattan U.S. Attorney Announces Arrest of Reality Television Cast Member for Failing to Pay Over $1 Million in Child Support</a><br/> Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas O'Donnell, the Special Agent-in-Charge of the New York Field Office of the United States Department of Health and Human Services Office of the Inspector General ("HHS-OIG"), announced the unsealing of a criminal Complaint against STEVEN JORDAN, a/k/a "Stevie Jordan," a/k/a "Stevie J," a cast member on a reality television show, for failing to pay over $1 million in child support obligations with respect to two children. JORDAN was arrested last night at his residence in Atlanta and is expected to be presented today in federal court in the Northern District of Georgia.</dd> <dt id="CEA2014062704">June 9, 2014; U.S. Attorney; District of Maine</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/me/news/20140609_backman_stacey_guilty_plea.html">Brunswick Women Pleads Guilty to Federal Program and Tax Fraud</a><br/> Portland, Maine - United States Attorney Thomas E. Delahanty II announced that Stacey A. Backman, 41, of Brunswick, Maine, pled guilty in U.S. District Court to federal program and tax fraud charges. According to court records, the defendant was a fund accountant at Coastal Enterprises, Inc. (CEI). CEI is a private, nonprofit, charitable Community Development Corporation and Community Development Financial Institution based in Wiscasset, Maine that received more than $10,000 in federal funds each year. From 2010 to January 2014, the defendant embezzled over $300,000 from CEI and failed to report the embezzled income on her federal income tax returns. CEI learned of the embezzlement in January 2014 and terminated the defendant's employment.</dd> <dt id="CEA2014061102">June 9, 2014; U.S. Attorney; District of New Jersey</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nj/Press/files/Patel,%20Nita%20and%20Kirtish%20Charged%20News%20Release.html">Morris County, N.J., Couple charged with conspiracy to commit health care fraud</a><br/> NEWARK, N.J. - A Morris County, N.J., couple who owned a mobile diagnostic testing company were arrested this morning and charged with conspiring to commit health care fraud, U.S. Attorney Paul J. Fishman announced. Nita K. Patel, 51, and Kirtish N. Patel, 51, of Rockaway, N.J., owners and operators of Biosound Medical Services Inc. and Heart Solutions of Parsippany, N.J., were charged by complaint with one count of conspiracy to commit health care fraud. They made their initial appearance today before U.S. Magistrate Judge James B. Clark III in Newark federal court. </dd> <dt id="CEA2014061001">June 9, 2014; U.S. Attorney; Southern District of Georgia</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.fbi.gov/atlanta/press-releases/2014/brunswick-woman-sentenced-to-16-years-in-prison-for-defrauding-medicaid-of-more-than-4-million">Brunswick Woman Sentenced to 16 Years in Prison for Defrauding Medicaid of More Than $4 Million</a><br/> BRUNSWICK, GA-Schella Logan Hope, 47, of Brunswick, Georgia, who was previously convicted by a federal jury of various health care fraud, aggravated identity theft, and money laundering offenses for her role in a multi-million-dollar Medicaid fraud conspiracy, was sentenced last month to 16 years in prison. The sentence was imposed by the Honorable Lisa Godbey Wood, Chief Judge for the United States District Court for the Southern District of Georgia, who also presided over Hope's trial.</dd> <dt id="CEA2014060901">June 6, 2014; U.S. Attorney; Northern District of Texas</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/txn/PressRelease/2014/JUN2014/jun6Thaw_Kincaid_sent.html">North Texas Men, Who Owned Hyperbaric Oxygen Therapy Companies, are Sentenced for Roles in Conspiracy to Commit Health Care Fraud</a><br/> DALLAS - Yesterday afternoon, two businessmen, Stanley Thaw, 72, of Frisco, Texas, and Michael Kincaid, 57, of Plano, Texas, who owned and operated hyperbaric oxygen therapy (HBOT) companies located in Plano, Denton, Hurst, Houston, and San Antonio, Texas, were each sentenced to five years in federal prison by U.S. District Judge Jorge A. Solis for conspiring to commit health care fraud. In addition, Judge Solis ordered them to pay approximately $1.5 million in restitution, jointly and severally. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.</dd> <dt id="CEA2014060902">June 6, 2014; U.S. Attorney; District of Maryland</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/md/news/2014/FirstConspiratorPleadsGuiltyInConspiracyToDistributeAndSellMillionsInContrabandCigaret.html">First Conspirator Pleads Guilty In Conspiracy To Distribute And Sell Millions In Contraband Cigarettes</a><br/> Baltimore, Maryland - Adam Azerman, age 59, of Pikesville, Maryland, pleaded guilty today to conspiracy to traffic in contraband cigarettes. The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.</dd> <dt id="CEA2014060601">June 5, 2014; U.S. Attorney; District of New Jersey</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nj/Press/files/Onyenso,%20Chikezie%20Sentencing%20PR.html">Board-Certified New Jersey Pediatrician and Internist Sentenced To 20 Months in Prison for Taking Kickbacks</a><br/> NEWARK, N.J. - A board-certified pediatrician and internist from Morris County, N.J., was sentenced today to 20 months in prison for soliciting and taking cash and rental payments as kickbacks for his patients' diagnostic testing referrals, U.S. Attorney Paul J. Fishman announced. Chikezie Onyenso, 55, of Randolph, N.J., was convicted on Oct. 15, 2013, after a three-week trial before U.S. District Judge Claire C. Cecchi, of conspiracy to solicit and receive kickbacks from a diagnostic testing facility called Orange Community MRI LLC (Orange MRI), and of soliciting and taking such kickbacks from Orange MRI. Judge Cecchi imposed the sentence today in Newark federal court. </dd> <dt id="CEA2014060602">June 5, 2014; U.S. Attorney; Eastern District of Pennsylvania</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/pae/News/2014/June/akhmedov_release.htm">EMT Sentenced For Role in Ambulance Fraud Scheme</a><br/> PHILADELPHIA - Khusen Akhmedov, 23, of Philadelphia, PA and Lancaster, PA, was sentenced today to 27 months in prison for his role in a health care fraud scheme involving Penn Choice Ambulance Inc., operating from Philadelphia, PA, Huntingdon Valley, PA and Camp Hill, PA. Akhmedov pleaded guilty on December 5, 2013, to conspiracy to commit health care fraud, false statements relating to health care matters, and paying kickbacks to patients, a total of 16 counts. Akhmedov, an EMT for Penn Choice, was indicted with Penn Choice owner Anna Mudrova and operators Yury Gerasyuk, Mikhail Vasserman, Irina Vasserman, Aleksandr Vasserman, and Valeriy Davydchik, all of whom have pleaded guilty.</dd> <dt id="CEA2014060503">June 5, 2014; U.S. Attorney; Southern District of Illinois</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/ils/News/2014/Jun/06052014_Home%20Alone%203%20Press%20Release.html">"Home Alone 3"</a><br/> Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, and Gerald Roy, Special Agent in Charge, United States Department of Health and Human Services, Office of Inspector General, Office of Investigations for Region 7 (Kansas City office), announced today indictments arising out of Operation Home Alone 3. The indictments constitute a third wave of charges that targets the abuse of a Medicaid program in Illinois that provides personal assistants to Medicaid recipients to assist them with general household activities and personal care. The program is intended for recipients under 60 years of age and is designed to reduce Medicaid expenditures by avoiding more expensive institutional care, including nursing home care.</dd> <dt id="CEA2014060603">June 4, 2014; U.S. Attorney; Eastern District of Texas</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/txe/News/2014/edtx-hcf-yusuf-060414.html">Nigerian Fugitive Arrested for Health Care Fraud Violations</a><br/> TYLER, Texas - A 43-year-old Nigerian fugitive has been arrested at a Houston airport and will now face federal health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales. Vivian Yusuf, of Port Harcourt, Nigeria, the former owner of Ivy Health Care Supply, a Houston area medical supply company, was arrested on June 3, 2014 at George Bush Intercontinental Airport in Houston. Yusuf had been indicted for conspiracy to commit health care fraud, health care fraud, and aggravated identity theft and a fugitive since March 2011.</dd> <dt id="CEA2014060501">June 4, 2014; U.S. Attorney; Middle District of Florida</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/flm/press/2014/Jun/20140604_aldissi_bogomolova.html">Grand Jury Indicts Two Scientists for Obtaining Government Research Contracts by Fraud</a><br/> Tampa, Florida - United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Mahmoud Aldissi, a/k/a "Matt,"(62) and Anastassia Bogomolova, a/k/a "Anastasia," (51), both of Pinellas County, Florida, with conspiracy to commit wire fraud, wire fraud, aggravated identity theft, and falsification of records in a federal investigation. If convicted on all counts, each faces a maximum penalty of 20 years in federal prison. The Indictment also notifies the individuals that, among other specified property, the United States is also seeking a money judgment in the amount of $10,000,000, which reflects the proceeds of the charged criminal conduct.</dd> <dt id="CEA2014060502">June 4, 2014; U.S. Attorney; Northern District of Ohio & Ohio Attorney General</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.ohioattorneygeneral.gov/Media/News-Releases/June-2014/Husband-Wife-Sentenced-to-Prison-on-Health-Care-Fr">Husband, Wife Sentenced to Prison on Health Care Fraud Charges, Must Repay More than $800,000</a><br/> Ohio Attorney General Mike DeWine and U.S. Attorney for the Northern District of Ohio Steven M. Dettelbach announced today that the husband and wife owners of a Maple Heights ambulette company will each serve time in prison for fraudulently billing Medicaid for hundreds of thousands of dollars of transportation services that they did not actually provide.</dd> <dt id="CEA2014060401">June 3, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/June/14-crm-596.html">Los Angeles Physician Indicted in $33 Million Medicare Fraud Scheme</a><br/> A Los Angeles physician was indicted today for a $33 million scheme to defraud Medicare, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department's Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California, Special Agent in Charge Glenn R. Ferry of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) for the Los Angeles Region and Assistant Director in Charge Bill L. Lewis of the FBI's Los Angeles Field Office. Robert A. Glazer, 67, of Los Angeles, California, was indicted in the Central District of California and charged with one count of conspiracy to commit health care fraud.</dd> <dt id="CEA2014060402">June 3, 2014; U.S. Attorney; Southern District of Texas</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/txs/1News/Releases/2014%20June/140603%20-%20Kibert.html">Local Doctor and Four Others Charged with Defrauding Medicare of Nearly $3 Million</a><br/> HOUSTON - Leonard Kibert M.D., 63, of Houston, has been charged in a 47-count indictment alleging a conspiracy to defraud Medicare of $2.9 million, announced United States Attorney Kenneth Magidson. Also charged in the indictment are Tsolak Gevorgyan, 28, Christopher O'Brien, 41, Gregorius Brown, 48, and Robert Manning, 58, all also of Houston.</dd> <dt id="CEA2014060403">June 3, 2014; U.S. Attorney; Western District of Kentucky</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/kyw/news/2014/20140603-03.html">Owners of Elizabethtown Hematology Oncology, PLC Agree To Pay Over $3.7 Million to Settle False Billings to Government Health Care Programs</a><br/> LOUISVILLE, Ky. -Elizabethtown Hematology Oncology, PLC, and its owners have agreed to pay $3,739,325.41 to resolve allegations that they submitted or caused to be submitted false claims for payment to the Medicare, Medicaid, TRICARE - the health care program for Uniformed Service members, retirees and their families worldwide - and the Federal Employee Health Benefit Program (FEHBP) for extending the duration of chemotherapy infusion treatment to patients and inappropriately billing office visits for infusion therapy treatments, announced the Office of Inspector General of the Department of Health and Human Services and David J. Hale, United States Attorney for the Western District of Kentucky.</dd> </dl> <div class="contentSeparator"></div> <h2 id="may14">May 2014</h2> <dl class="criminal_report"> <dt id="CEA2014060301">May 30, 2014; U.S. Attorney; District of Maryland</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/md/news/2014/TimoniumManPleadsGuiltyToStealingOver570000FromAnNIHResearchGrant.html">Timonium Man Pleads Guilty To Stealing Over $570,000 From An NIH Research Grant</a><br/> Baltimore, Maryland - Baltimore, Maryland - Jason Dietz, age 34, of Timonium, Maryland, pleaded guilty today to theft of funds from a federal program, in connection with the theft of at least $571,205 in grant money from the National Institute for Drug Abuse for research conducted at its facilities in Baltimore.</dd> <dt id="CEA2014060101">May 30, 2014; U.S. Attorney; Southern District of Iowa</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/ias/news/2014/Twyner%20-%20Sentencing%205-30-2014.html">Former Newton Doctor Sentenced to 5 Years in Prison for Prescribing Controlled Substances outside the Course of Usual Medical Practice and Related Health Care Fraud</a><br/> DES MOINES, IA - On Thursday, May 29, 2014, Dr. Lafayette James Twyner, age 65, of Newton, Iowa, was sentenced to 5 years in prison by U.S. District Court Judge Stephanie M. Rose on charges relating to his alleged unlawful dissemination of controlled substances to patients, announced United States Attorney Nicholas A. Klinefeldt. Dr. Twyner had previously pled guilty on February 21, 2014 to federal charges of illegally dispensing hydrocodone resulting in death, and health care fraud. Over the course of several years, Dr. Twyner prescribed various controlled substances, mostly pain medications, to patients who had no legitimate need for them, and to some who were admittedly addicted to them. He then billed the patients - and their insurance companies - for the office visits when they sought drugs from him.</dd> <dt id="CEA2014060404">May 29, 2014; U.S. Attorney; Middle District of Tennessee</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/tnm/pressReleases/2014/5-29-14.html">First Call Ambulance Service, LLC. Settles False Claims Act Allegations</a><br/> First Call Ambulance Service, LLC., will pay $500,000 to settle allegations that it violated the False Claims Act ("FCA"), announced David Rivera, United States Attorney for the Middle District of Tennessee. The settlement resolves allegations by the United States and Tennessee that First Call up coded billings for ambulance transports provided to patients covered by federal healthcare programs and TennCare, Tennessee's joint state/federal Medicaid program.</dd> <dt id="CEA2014052901">May 28, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/May/14-civ-571.html">Minnesota-Based Medtronic Inc. to Pay $9.9 Million to Resolve Claims That Company Paid Kickbacks to Physicians</a><br/> Medtronic Inc., of Fridley, Minnesota, has agreed to pay the United States $9.9 million to resolve allegations under the False Claims Act that the company used various types of payments to induce physicians to implant pacemakers and defibrillators manufactured and sold by Medtronic, the Justice Department announced today. </dd> <dt id="CEA2014052902">May 28, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/May/14-civ-567.html">King's Daughters Medical Center to Pay Nearly $41 Million to Resolve Allegations of False Billing for Unnecessary Cardiac Procedures and Kickbacks</a><br/> Ashland Hospital Corp. d/b/a King's Daughters Medical Center (KDMC) has agreed to pay $40.9 million to resolve allegations that it submitted false claims to the Medicare and Kentucky Medicaid programs for medically unnecessary coronary stents and diagnostic catheterizations and had prohibited financial relationships with physicians referring patients to the hospital, the Justice Department announced today.</dd> <dt id="CEA2014052903">May 28, 2014; U.S. Attorney; District of Maryland</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/md/news/2014/Dr.JohnYacoubPleadsGuiltyToDrugDistribution.html">Dr. John Yacoub Pleads Guilty To Drug Distribution</a><br/> Baltimore, Maryland - Dr. John K. Yacoub, age 58, of Baltimore, Maryland pleaded guilty today to conspiracy to distribute and possess with intent to distribute fentanyl, hydrocodone, oxycodone, morphine and methadone.</dd> <dt id="CEA2014052801">May 27, 2014; U.S. Attorney; Eastern District of Pennsylvania</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/pae/News/2014/May/kolodesh_release.htm">Hospice Owner Sentenced To More Than 14 Years in Prison for Multi-Million Dollar Health Care Fraud Scheme</a><br/> PHILADELPHIA - Matthew Kolodesh, a/k/a "Matvei Kolodech," 52, of Churchville, PA, was sentenced Friday to 176 months in prison and ordered to pay $16.2 million in restitution to Medicare and $16.2 million in a forfeiture money judgment for orchestrating a scheme to defraud Medicare through his home hospice business, among other crimes, announced United States Attorney Zane David Memeger.</dd> <dt id="CEA2014052802">May 27, 2014; U.S. Attorney; Northern District of Illinois</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/iln/pr/chicago/2014/pr0527_01.html">Illinois Hospice Executive, Three Former Employees and Company Indicted for Allegedly Falsely Elevating Level of Patients' Care</a><br/> CHICAGO - An owner and three former employees of an Illinois hospice company, as well as the company itself, were indicted on federal health care fraud charges for allegedly engaging in an extensive scheme to obtain higher Medicare and Medicaid payments by fraudulently elevating the level of hospice care for patients. In many instances, the level of hospice care allegedly exceeded what was medically necessary or actually provided, including for some patients who did not have terminal illnesses or who were enrolled far longer than the required life expectancy of six months or less.</dd> <dt id="CEA2014052904">May 23, 2014; U.S. Attorney; District of Montana</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/mt/pressreleases/20140523115754.html">Former Oklahoma State University Professor Convicted on 26 Fraud and Public Corruption Charges Involving Blackfeet Po'Ka Program</a><br/> The United States Attorney's Office announced that on May 22, 2014, a federal jury found Gary Joseph Conti, 68, of Three Forks, guilty on 26 of 27 felony charges relating to his role in deceiving the government in an "in-kind" scheme that auditors have determined resulted in at least $4.6 million in fraud against a grant designed to help troubled and at-risk youth on the Blackfeet Indian Reservation.</dd> <dt id="CEA2014052301">May 22, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/May/14-crm-556.html">Owner and Recruiter for Louisiana and Texas Mental Health Clinics Convicted as Part of $258 Million Health Care Fraud Scheme in Baton Rouge, Louisiana</a><br/> An owner and operator of community mental health centers in Baton Rouge, Louisiana, as well as a patient recruiter for a related facility in Houston, Texas, were convicted on Wednesday, May 21, 2014, for their roles in a $258 million Medicare fraud scheme involving three facilities that filed fraudulent claims for psychiatric services that were unnecessary or never actually provided.</dd> <dt id="CEA2014052302">May 22, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/May/14-crm-554.html">Convicted Money Launderers Sentenced to Prison in Connection with Health Care Fraud Scheme</a><br/> Two Florida men were sentenced today in the Middle District of Florida for their roles in a fraud scheme involving the submission of more than $10 million in fraudulent claims to Medicare for physical therapy. Rafael Roche, 43, and Alain Remy, 36, previously pleaded guilty to an indictment charging them with conspiracy to commit money laundering involving financial proceeds from a health care fraud scheme. Today, they were sentenced to serve 46 months and 37 months respectively in prison to be followed by three years of supervised release. In addition, they will be required to pay $1,847,222 in restitution, jointly and severally with co-conspirators.</dd> <dt id="CEA2014052303">May 22, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/May/14-crm-551.html">Detroit-Area Home Health Agency Owner Sentenced to 72 Months in Prison for His Role in $13.8 Million Medicare Fraud Scheme</a><br/> The owner of a home health agency involved in a $13.8 million Medicare fraud scheme was sentenced today to serve 72 months in prison. Zahir Yousafzai, 44, was sentenced by U.S. District Judge Gerald E. Rosen in the Eastern District of Michigan. In addition to his prison term, Yousafzai was sentenced to three years of supervised release and was ordered to pay $4,131,135 in restitution, jointly and severally with his co-defendants.</dd> <dt id="CEA2014052201">May 21, 2014; U.S. Attorney; Southern District of West Virginia</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/wvs/press_releases/May2014/attachments/0521141_Calloway_Settlement.html">U.S. Attorney Goodwin Announces Record-Breaking Health Care Fraud Settlement</a><br/> CHARLESTON, W.Va. - United States Attorney Booth Goodwin today announced a $4.675 million settlement with Massachusetts-based Calloway Laboratories, Inc. (Calloway Labs) related to false billings submitted to West Virginia Medicaid and nationwide to Medicare. Calloway Labs, headquartered in Woburn, Massachusetts, provides clinical laboratory services, including urine drug testing, for Medicare and West Virginia Medicaid. From March of 2009 through April of 2013, Calloway Labs routinely billed Medicare and West Virginia Medicaid using a code designated for pathology services in addition to the code for urine drug testing. </dd> <dt id="CEA2014052202">May 21, 2014; U.S. Attorney; Eastern District of New York</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nye/pr/May14/2014May21.php">Long Island Doctor Arrested For Illegal Distribution of Controlled Substances</a><br/> A criminal complaint was unsealed today in federal court in the Eastern District of New York charging Dr. Michael Randall with illegal distribution of thousands of prescription pain pills, including oxycodone, oxymorphone, methadone, and carisoprodol. Randall surrendered earlier today, and his initial appearance is scheduled for this afternoon before United States Magistrate Judge A. Kathleen Tomlinson at the United States Courthouse, 100 Federal Plaza, Central Islip, New York.</dd> <dt id="CEA2014052203">May 21, 2014; U.S. Attorney; Southern District of Ohio</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/ohs/news/05-21-14_CIN.html">Pain Clinic Owner Sentenced To 14 Years In Prison And Ordered To Forfeit $6.3 Million In Profits</a><br/> CINCINNATI - The owner of three southern Ohio pain clinics, Tracy Bias, 49, of West Portsmouth, Ohio, was sentenced to spend 168 months in prison, serve another ten years under court supervision, and ordered to forfeit $6,348,000, an amount representing the proceeds of the pain clinics he operated for two years in Portsmouth, Ohio and Columbus, Ohio. Six doctors involved with the clinic have either been sentenced or are awaiting sentencing.</dd> <dt id="CEA2014052204">May 21, 2014; U.S. Attorney; Western District of Missouri</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/mow/news2014/schleicher.ple.html">Kansas City Man Pleads Guilty To $2.6 Million Health Care Fraud</a><br/> KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to submitting more than $2.6 million in health care claims, although he was excluded from participating in any federal health care programs after being convicted of a felony drug charge.</dd> <dt id="CEA2014052205">May 21, 2014; U.S. Attorney; Eastern District of Pennsylvania</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/pae/News/2014/May/hch_release.htm">U.S. Files Complaint against Philadelphia Hospice Provider and Its Owners and Operators Alleging False Claims on Medicare</a><br/> PHILADELPHIA - The United States filed a complaint in U.S. District Court today in a whistleblower suit against a now-defunct, for-profit Philadelphia provider of hospice services, Home Care Hospice, Inc. (HCH), and its owners and operators, announced First Assistant United States Attorney Louis D. Lappen. In its complaint, the government alleges that HCH, its Executive Director and owner Alex Pugman, its Development Executive Svetlana Ganetsky, and its de facto owner Matthew Kolodesh violated the False Claims Act when they falsely claimed and received millions of taxpayer dollars intended for dying Medicare recipients in need of hospice care. </dd> <dt id="CEA2014052206">May 21, 2014; U.S. Attorney; Eastern District of Pennsylvania</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/pae/News/2014/May/hairston_release.htm">Philadelphia Man Charged In Health Care Fraud Scheme</a><br/> PHILADELPHIA - Jermaine Hairston, 38, of Philadelphia, Pennsylvania, was charged by indictment, filed yesterday, with health care fraud and aggravated identity theft, announced United States Attorney Zane David Memeger.</dd> <dt id="CEA2014052101">May 20, 2014; U.S. Attorney; District of South Dakota</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/sd/pressreleases/2014/RC-2014-05-20-Quiver.html">Wanblee Man Sentenced For Assault and Making False Statements</a><br/> United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury and False Statements Relating to Health Care Matters was sentenced on May 15, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.</dd> <dt id="CEA2014052001">May 19, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/May/14-crm-529.html">Former Wellcare Chief Executive Sentenced for Health Care Fraud</a><br/> Former WellCare Chief Executive Officer Todd S. Farha, 45, of Tampa, Florida, was sentenced today in the Middle District of Florida to serve 36 months in prison for defrauding the Florida Medicaid program.</dd> <dt id="CEA2014051901">May 16, 2014; U.S. Attorney; District of New Jersey </dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nj/Press/files/Patel,%20Mahesh%20Sentencing%20News%20Release.html">Morris County, N.J., Doctor Sentenced to Prison, Fined for Taking Cash Kickbacks for Patient Referrals</a><br/> NEWARK, N.J. - A doctor practicing internal medicine in Orange, N.J., was sentenced today to five months in prison and five months of home confinement for taking cash kickbacks for making referrals to a diagnostic testing lab in Orange, U.S. Attorney Paul J. Fishman announced. Mahesh Patel, 64, of Florham Park, N.J., a board-certified physician, previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with soliciting and receiving more than $6,000 in illegal cash kickbacks for patient referrals in violation of the federal health care anti-kickback statute.</dd> <dt id="CEA2014051601">May 15, 2014; U.S. Attorney; Southern District of Texas</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/txs/1News/Releases/2014%20May/140515%20-%20Ramirez.html">Corpus Christi Doctor Heads to Prison for Fraudulent Health Care Billing Scheme</a><br/> CORPUS CHRISTI, Texas - Dr. Roque Joel Ramirez, 48, of Robstown, has been ordered to federal prison following his conviction of mail fraud in connection with his scheme to defraud Medicare and Medicaid through fraudulent billings, announced United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott. Ramirez pleaded guilty Feb. 18, 2014.</dd> <dt id="CEA2014051602">May 15, 2014; U.S. Attorney; District of New Jersey</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nj/Press/files/Martinho,%20Michele%20Plea%20News%20Release.html">New York Physician Admits Taking Bribes in Test-Referrals Scheme with New Jersey Clinical Lab</a><br/> NEWARK, N.J. - A physician with a practice in New York admitted today to accepting over $100,000 in exchange for test referrals as part of a massive bribery scheme operated by Biodiagnostic Laboratory Services LLC (BLS) of Parsippany, N.J., its president and numerous associates, U.S. Attorney Paul J. Fishman announced. Michele Martinho, 39, of New York, pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging her with one count of accepting bribes.</dd> <dt id="CEA2014051603">May 15, 2014; U.S. Attorney; Eastern District of North Carolina</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nce/press/2014/2014-may-15.html">Ambulance Company Owner and Son Sentenced For Conspiracy to Commit Health Care & Wire Fraud</a><br/> RALEIGH - United States Attorney Thomas G. Walker announced that today, United States District Judge Terrence W. Boyle sentenced Phyllis Stallings Harrell and Paul Lynn Trueblood, both of Belvidere, North Carolina. Harrell was sentenced to 72 months imprisonment followed by 3 years of supervised release and was also ordered to pay restitution in the amount of $1,598,356.91. Trueblood was sentenced to 53 months imprisonment followed by 3 years of supervised release and ordered to pay restitution in the amount of $1,516,654.21.</dd> <dt id="CEA2014051501">May 14, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/May/14-crm-513.html">Patient Recruiter Sentenced In Detroit for Role in $14.5 Million Medicare Fraud Scheme</a><br/> WASHINGTON - A patient recruiter who participated in a Medicare fraud scheme that totaled almost $14.5 million was sentenced in Detroit yesterday to serve 86 months in prison. Richard Shannon, 41, was sentenced by U.S. District Judge Denise Page Hood in the Eastern District of Michigan. In addition to his prison term, Shannon was sentenced to serve three years of supervised release and was ordered to pay more than $1.6 million in restitution, jointly and severally with his co-defendants. On Oct. 26, 2012, Shannon, a patient recruiter for a network of fraudulent home health care companies, was found guilty at trial of one count of conspiracy to commit health care fraud. According to evidence presented at trial, Shannon and his co-conspirators caused the submission of false and fraudulent claims to Medicare through All American and Patient Choice, two Oak Park-based home health care companies, which purported to provide skilled nursing and physical therapy services to Medicare beneficiaries in the greater Detroit area.</dd> <dt id="CEA2014051502">May 14, 2014; U.S. Attorney; District of South Dakota</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/sd/pressreleases/2014/SF-2014-05-14-Johnson.html">Sioux Falls Man Sentenced for Health Care Fraud</a><br/> United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man convicted of Making False Statements Relating to Health Care Matters was sentenced on May 12, 2014, by U.S. District Judge Karen E. Schreier.</dd> <dt id="CEA2014051503">May 13, 2014; U.S. Attorney; Southern District of Florida</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/fls/PressReleases/140513-01.html">Fifty South Florida Residents Charged as Part of Nationwide Coordinated Takedown by Medicare Fraud Strike Force Operations</a><br/> Wifredo A. Ferrer, United States Attorney for the Southern District of Florida announced that fifty South Florida residents were charged for their alleged participation in various schemes to defraud Medicare out of more than $65,701,885. The charges in South Florida are part of a nationwide takedown by Medicare Fraud Strike Force operations in six cities that resulted in charges against 90 individuals, including doctors, nurses, licensed medical professionals and others, for their alleged participation in Medicare fraud schemes involving approximately $260 million in false billings.</dd> <dt id="CEA2014051504">May 12, 2014; U.S. Attorney; Southern District of Texas </dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/txs/1News/Releases/2014%20May/140512%20-%20Tyler.html">Jury Convicts Humble Man on all Charges in Health Care Fraud Conspiracy</a><br/> HOUSTON - Lawrence Tyler, 41, has been convicted of conspiracy to commit health care fraud, seven counts of health care fraud and one count of money laundering, announced United States Attorney Kenneth Magidson. The verdicts were returned just moments ago following five days of trial and less than four hours of deliberation. Tyler, of Humble, ran a durable medical equipment company called 1866-ICPayday.com from 2006 to 2008. The evidence at trial showed that between January 2007 and December 2008, Tyler engaged in a scheme to defraud Medicare and Medicaid. He falsely billed Medicare and Medicaid for so-called "ortho kits" which consisted of an assortment of various back, knee, ankle, wrist and shoulder braces.</dd> <dt id="CEA2014051401">May 13, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/May/14-crm-504.html">Dallas-Based Physician and Home Health Agency Director of Nursing Convicted in $3 Million Medicare Fraud Conspiracy</a><br/> Late yesterday, a federal jury in the Northern District of Texas convicted a physician and a home health agency manager for their participation in a $3 million Medicare fraud conspiracy. Joseph Megwa, M.D., and Ebolose Eghobor, R.N., were convicted of one count of conspiracy to commit health care fraud, and Megwa was convicted of three substantive counts of health care fraud. Eghobor was acquitted of the three substantive health care fraud counts brought against him. The home health care charges related to a scheme involving PTM Healthcare Services Inc. (PTM), which was owned and operated by Ferguson Ikhile, R.N. Ikhile pleaded guilty in 2013 to conspiracy to commit health care fraud.</dd> <dt id="CEA2014051402">May 13, 2014; U.S. Attorney; Eastern District of New York</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.fbi.gov/newyork/press-releases/2014/brookyln-medical-equipment-providers-charged-in-alleged-13-million-scheme-to-defraud-government-funded-health-plans">Brooklyn Medical Equipment Providers Charged in Alleged $13 Million Scheme to Defraud Government-Funded Health Plans</a><br/> BROOKLYN-Earlier today, an indictment was unsealed charging Chikwere Onyekwere and Uchechi Onyekwere, registered owners and officers of purported durable medical equipment (DME) companies located in Brooklyn, New York, with executing a scheme to submit over $13 million in fraudulent claims to a New York-based, government-sponsored managed care organization. The defendants were arrested earlier this morning and will be presented for arraignment later today at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York, before United States Magistrate Judge Joan M. Azrack.</dd> <dt id="CEA2014051403">May 13, 2014; U.S. Attorney; District of Oregon</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/or/news/2014/20140513_boutros.html">Sibling Sentenced to 4 Months in Jail for Theft of Sister's Welfare Benefits</a><br/> PORTLAND, Ore. - A Portland woman was sentenced to four months in jail for stealing more than $10,000 in benefits intended for her disabled sister. Killda I. Boutros, 46, appeared in federal court for sentencing last week after previously pleading guilty to Social Security fraud in November. </dd> <dt id="CEA2014051303">May 13, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/May/14-crm-503.html">Medicare Fraud Strike Force Charges 90 Individuals for Approximately $260 Million in False Billing with 27 Medical Professionals, Including 16 Doctors, Charged with Health Care Fraud</a><br/> Attorney General Eric Holder and Department of Health and Human Services (HHS) Secretary Kathleen Sebelius announced today that a nationwide takedown by Medicare Fraud Strike Force operations in six cities has resulted in charges against 90 individuals, including 27 doctors, nurses and other medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $260 million in false billings. This coordinated takedown is the seventh national Medicare fraud takedown in Strike Force history. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team, a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.</dd> <dt id="CEA2014051301">May 12, 2014; U.S. Attorney; District of Columbia</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/dc/news/2014/may/14-111.html">Former Employee of Day Treatment Program Found Guilty of Criminal Abuse of a Vulnerable Adult Defendant Made Malicious Statements toward Person in Her Care</a><br/> WASHINGTON - Ivy Fauntroy, 34, a former employee of United Cerebral Palsy of Washington & Northern Virginia, a District of Columbia day services provider for individuals with developmental disabilities, has been found guilty and been sentenced for criminal abuse of a vulnerable person in her care, U.S. Attorney Ronald C. Machen, Jr. and District of Columbia Inspector General Charles J. Willoughby announced today.</dd> <dt id="CEA2014051201">May 9, 2014; U.S. Attorney; District of Connecticut</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/ct/Press2014/20140509-1.html">Physical Therapist Facing Additional Health Care Fraud and Tax Fraud Charges</a><br/> Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DANIELLE FAUX, 46, of Weston, has been charged in a 54-count superseding indictment with federal health care fraud and income tax fraud offenses. The superseding indictment was returned by a grand jury in Bridgeport on April 16, 2014, and FAUX appeared today before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport and entered a plea of not guilty to the charges.</dd> <dt id="CEA2014050901">May 8, 2014; U.S. Attorney; District of Columbia</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.fbi.gov/washingtondc/press-releases/2014/district-woman-pleads-guilty-to-health-care-fraud-sold-counterfeit-documents-to-would-be-home-health-care-aides">District Woman Pleads Guilty to Health Care Fraud, Sold Counterfeit Documents to Would-Be Home Health Care Aides</a><br/> WASHINGTON - Adoshia L. Flythe, 36, of Washington, D.C., pled guilty today to a federal charge of health care fraud following an undercover investigation into the sale of counterfeit health certificates to people seeking jobs in the home health care industry. Flythe pled guilty in the U.S. District Court for the District of Columbia. The Honorable Rudolph Contreras scheduled sentencing for Sept. 4, 2014. The charge carries a statutory maximum of 10 years in prison as well as financial penalties. Under federal sentencing guidelines, Flythe faces up to six months of incarceration and a fine of up to $5,000.</dd> <dt id="CEA2014050902">May 8, 2014; U.S. Attorney; Southern District of New York</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nys/pressreleases/May14/TomasovichKurtissCompl-.php">Ocala, Florida Man Charged With Failure to Pay Child Support for His Children Who Reside In Orange County, New York</a><br/> Preet Bharara, the United States Attorney for the Southern District of New York, and Tom O'Donnell, the Special Agent-in-Charge of the New York Field Office of the Inspector General, United States Department of Health and Human Services, announced the arrest yesterday of Kurtiss L. Tomasovich for failure to pay child support. Tomasovich was arrested and presented in federal court in Ocala, Florida, before U.S. Magistrate Judge Philip R. Lammens.</dd> <dt id="CEA2014050801">May 7, 2014; U.S. Attorney; District of South Dakota</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/sd/pressreleases/2014/SF-2014-05-07-Milk.html">Martin Woman Sentenced In Federal Program Fraud Case</a><br/> United States Attorney Brendan V. Johnson announced that a Martin, South Dakota, woman convicted of Conspiracy to Commit Theft Concerning Programs Receiving Federal Funds was sentenced on May 6, 2014, by Jeffrey L. Viken, Chief U.S. District Judge. Samone Darla Milk, age 32, was sentenced to 14 months in custody, to be followed by 3 years of supervised release. She was also ordered to make restitution of $109,135. Milk was indicted for Conspiracy to Commit Theft Concerning Programs Receiving Federal Funds and two counts of Theft Concerning Programs Receiving Federal Funds by a federal grand jury on October 8, 2013. She pled guilty to the conspiracy charge on January 3, 2014, and the other charges were dismissed.</dd> <dt id="CEA2014050701">May 6, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/May/14-civ-476.html">Government Settles False Claims Act Allegations against Florida-Based Baptist Health System for $2.5 Million</a><br/> Baptist Health System Inc. (Baptist Health), the parent company for a network of affiliated hospitals and medical providers in the Jacksonville, Florida, area, has agreed to pay $2.5 million to settle allegations that its subsidiaries violated the False Claims Act by submitting claims to federal health care programs for medically unnecessary services and drugs, the Department of Justice announced today. The alleged misconduct involved Medicare, Medicaid, TRICARE and the Federal Employee Health Benefits Program.</dd> <dt id="CEA2014050601">May 6, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/May/14-crm-474.html">Owners of Los Angeles Ambulance Company Sentenced for Medicare Fraud Scheme</a><br/> WASHINGTON - The owners of Alpha Ambulance Inc. (Alpha), a now-defunct Los Angeles-area ambulance transportation company, have been sentenced in connection with a Medicare fraud scheme. Aleksey Muratov, aka Russ Muratov, 32, and Alex Kapri, aka Alex Kapriyelov or Alexander Kapriyelov, 56, were sentenced by U.S. District Court Judge Audrey B. Collins in the Central District of California to serve 108 months and 75 months in prison, respectively. Both Kapri and Muratov pleaded guilty on Oct. 28, 2014, to conspiracy to commit health care fraud. Muratov and Kapri were owners and operators of Alpha, which specialized in the provision of non-emergency ambulance transportation services to Medicare-eligible beneficiaries, primarily dialysis patients.</dd> <dt id="CEA2014050702">May 5, 2014; U.S. Attorney; Eastern District of Kentucky</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/kye/news/2014/2014-05-05-almond.html">Newport Chiropractor Convicted of Health Care Fraud Conspiracy</a><br/> COVINGTON, KY - - The owner of a chiropractic clinic in Newport, Ky., has been convicted of a fraud scheme involving tens of thousands of dollars. A federal jury in Covington convicted 48-year-old Andrea Almond, of Cincinnati, Ohio, of conspiracy to commit health care fraud, late Friday afternoon. The jury returned the verdict after four days of trial, following six hours of deliberation. According to evidence established at trial, from September 2008 through April 2010, Almond conspired with a co-defendant to bill the Kentucky Medicaid Program for chiropractic services rendered at the Newport Chiropractic Center.</dd> <dt id="CEA2014051302">May 2, 2014; U.S. Attorney Northern District of Indiana</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/inn/press_release/documents/2014/May_14/may%202%2014%20rosenberg%20et%20al.htm">Guilty Plea in Conspiracy to Receive Kickbacks for Medicare & Medicaid Patient Referrals</a><br/> Linda Rosenberg, 60, of Chicago, Illinois, pled guilty before District Judge Joseph Van Bokkelen to the felony offenses of participating in a conspiracy to receive kickbacks for the referral of Medicaid and Medicare patients to other services providers, dispensing a controlled substance outside the scope of professional practice and legitimate medical purpose and misbranding. Sentencing has been set for 9/10/14. These charges were filed as a result of an investigation by the Drug Enforcement Administration. This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.</dd> <dt id="CEA2014050602">May 2, 2014; U.S. Attorney; Middle District of Alabama</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/alm/press/2014/2014_05_02_robinson-white.html">Opelika Doctor Indicted for Selling Misbranded Intrauterine Devices</a><br/> Montgomery, Alabama - Dr. Yashica Robinson-White, 38 of Opelika, Alabama was indicted by a federal grand jury for health care fraud totaling over $60,000.00 and for introducing misbranded drugs into interstate commerce, announced U.S. Attorney George L. Beck, Jr.. The indictment charges that Robinson-White committed health care fraud by falsely billing claims to Medicaid for birth control devices known as intrauterine devices ("IUDs"). Robinson-White purchased these IUDs from a company in Great Neck, New York. Because the IUDs were made outside the United States and because the IUDs were not labeling in English, they are considered misbranded drugs under the Food, Drug and Cosmetic Act. The IUDs are treated as misbranded drugs under the law because they release the birth control drug, levonorgestrel. Further, because the IUDs were misbranded, Robinson-White obtained them cheaper than a lawful IUD.</dd> <dt id="CEA2014050201">Thursday, May 2, 2014; U.S. Attorney; Eastern District of Missouri</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/moe/news/2014/may/kuehl_tina.html">Local In-Home Healthcare Provider Pleads Guilty to Fraud Charges</a><br/> St. Louis, MO - TINA KUEHL pled guilty yesterday to bank fraud charges involving her fraudulent statements involving payment of a bank loan. In a separate unrelated case, she and her company, Better Way Home Care, pled guilty to multiple healthcare fraud charges. Kuehl and Better Way represented on billing work sheets and claim forms that patients had received therapy services when they knew that the patients had not received the therapy. Kuehl and Better Way caused the submission of hundreds of reimbursement claims to Medicare for services which they knew had not been provided.</dd> <dt id="CEA2014050603">May 1, 2014; U.S. Attorney; District of Montana</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/mt/pressreleases/20140501164837.html">Havre Psychologist Pleads Guilty To Bribery and Tax Fraud</a><br/> The United States Attorney's Office announced that Dr. James Howard Eastlick, Jr., the former Clinical Psychologist at the Rocky Boy Health Clinic, entered pleas today in three of four indictments handed down by the Grand Jury charging him with public corruption and tax fraud. Eastlick appeared before U.S. District Judge Brian Morris in Great Falls to enter the guilty pleas. </dd> </dl> <div class="contentSeparator"></div> <h2 id="apr14">April 2014</h2> <dl class="criminal_report"> <dt id="CEA2014050501">April 30, 2014; U.S. Attorney; Southern District of Texas</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.fbi.gov/houston/press-releases/2014/two-fugitives-arrested-in-continuum-healthcare-kickback-conspiracy">Two Fugitives Arrested in Continuum Healthcare Kickback Conspiracy</a><br/> HOUSTON-Two more Houston residents have been taken into custody on charges contained in a 13-count indictment alleging a conspiracy to pay kickbacks to 10 area personal care home owners and patient advocates, announced United States Attorney Kenneth Magidson. Jacqueline Harris, 51, and Vernon Lacy, III, 29, were patient advocates for Continuum Healthcare LLC. Both were fugitives in the case until they were found and arrested by the U.S. Marshals Service Gulf Coast Regional Fugitive Task Force with the assistance of the FBI.</dd> <dt id="CEA2014050101">April 30, 2014; Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/April/14-crm-459.html">Detroit-Area Physical Therapist, Physical Therapy Assistant and Unlicensed Doctor Convicted in $14.9 Million Medicare Fraud Scheme</a><br/> A federal jury in Detroit today convicted a physical therapist, physical therapy assistant and unlicensed doctor for their participation in a nearly $15 million Medicare fraud scheme.</dd> <dt id="CEA2014050102">April 30, 2014; U.S. Attorney; District of New Jersey</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nj/Press/files/Somerset%20Medical%20Center%20Settlement%20PR.html">New Jersey Regional Medical Center Pays Hundreds of Thousands to Resolve Kickback Allegations</a><br/> NEWARK, N.J. - Somerset Medical Center - a regional medical center located in Somerville, N.J. - has paid $435,640 to settle allegations that it violated the federal False Claims Act by making improper rental payments to a cardiology group that referred large numbers of patients to the hospital, New Jersey U.S. Attorney Paul J. Fishman announced today.</dd> <dt id="CEA2014043001">April 29, 2013; U.S. Attorney; Western District of Missouri</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/mow/news2014/miller.ple.html">Former Waldo Chiropractor Pleads Guilty to $3 Million Medicare Fraud</a><br/> KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former owner of a Kansas City, Mo., clinic pleaded guilty in federal court today to a $3 million Medicare fraud scheme.</dd> <dt id="CEA2014043002">April 29, 2014; U.S. Attorney; Eastern District of Missouri</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/moe/news/2014/april/white_cheryl.html">Former CEO of SEMO Health Network Pleads Guilty to Submitting False Grant Documents</a><br/> St. Louis, MO - CHERYL ANN WHITE pled guilty to conspiring to create and submit numerous false documents related to Southeast Missouri Health Network, Inc. to federal agencies from 2004 to 2013.</dd> <dt id="CEA2014043003">April 28, 2014; U.S. Attorney; Western District of Virginia</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/vaw/news/carter_28apr2014.html">Former Fire Chief, Wife, Sentenced On Fraud Charges</a><br/> ROANOKE, VIRGINIA - The former fire chief in Buchanan, Va., and his wife, were sentenced today in the United States District Court for the Western District of Virginia in Roanoke to charges stemming from Fraud.</dd> <dt id="CEA2014042901">April 28, 2014; U.S. Attorney; District of North Dakota</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nd/news/2014/04-28-14-Hochhalter%20Sentenced.html">New Leipzig Man Sentenced For False Statements To Medicaid</a><br/> BISMARCK - U.S. Attorney Timothy Q. Purdon announced that on April 28, 2014, Donald A. Hochhalter, 65, New Leipzig, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of Making or Causing to be Made False Statements or Representations in a matter involving Medicaid. Hochhalter pled guilty to the charge, a misdemeanor, on January 16, 2014.</dd> <dt id="CEA2014042902">April 25, 2014; U.S. Attorney; Middle District of Pennsylvania</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.fbi.gov/philadelphia/press-releases/2014/old-forge-pharmacist-pleads-guilty-to-health-care-fraud-charges">Old Forge Pharmacist Pleads Guilty to Health Care Fraud Charges</a><br/> The United States Attorney's Office for the Middle District of Pennsylvania announced that an Old Forge pharmacist pleaded guilty in Scranton today to health care fraud charges before the U.S. District Court Judge Malachy E. Mannion.</dd> <dt id="CEA2014042801">April 25, 2014; U.S. Attorney; Southern District of Texas</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/txs/1News/Releases/2014%20April/140425%20-%20Parsons%20and%20Edson.html">Continuum Healthcare Executives and 8 Others Charged with Kickback Conspiracy</a><br/> HOUSTON - Jeffery Parsons, of Crockett, and David Edson, of Palm Harbor, Fla., have been charged in a 13-count indictment alleging a conspiracy to pay kickbacks to several area personal care home owners and patient advocates, announced United States Attorney Kenneth Magidson today. Edson, 65, and Parsons, 55, were the vice presidents of Development and Operations, respectively, for Continuum Healthcare LLC.</dd> <dt id="CEA2014042501">April 24, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/April/14-crm-434.html">Owner of Baton Rouge Pharmacy Pleads Guilty for Directing $2.2 Million Health Care Fraud Scheme</a><br/> The owner of a Louisiana pharmacy pleaded guilty today for directing a $2.2 million Medicare fraud scheme to repackage and redistribute prescription medications. Mona Patrice Carter, 47, pleaded guilty before U.S. District Judge James J. Brady of the Middle District of Louisiana to one count of health care fraud. Sentencing will be determined at a later date.</dd> <dt id="CEA2014042502">April 24, 2014; U.S. Attorney; District of New Jersey</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nj/Press/files/Babaria,%20Ashokkumar%20Sentencing%20PR.html">Former Owner, Medical Director, of Diagnostic Testing Center Sentenced to 46 Months in Prison</a><br/> NEWARK, N.J. - A radiologist who owned and operated a diagnostic testing center in Orange, N.J., was sentenced today to 46 months in prison and ordered to forfeit more than $2 million for overseeing a sprawling cash-for-patients scheme to bribe doctors for testing referrals, U.S. Attorney Paul J. Fishman announced.</dd> <dt id="CEA2014042503">April 24, 2014; U.S. Attorney; Southern District of New York</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nys/pressreleases/April14/AkimMurrayChargePR.php">New York City Employee Charged in Manhattan Federal Court with Medicaid Fraud</a><br/> Preet Bharara, United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation, and Mark G. Peters, the Commissioner of the New York City Department of Investigation, announced today the arrest of Akim Murray, an employee of the Medicaid Reimbursement Unit of the New York City Human Resources Administration, for Medicaid fraud. The Complaint alleges that Murray, an HRA Eligibility Specialist whose job involved issuing reimbursements for Medicaid-eligible expenses, manipulated the system in order to have hundreds of thousands of dollars' worth of checks issued to his friends and criminal associates, who in turn gave him a substantial cut of the proceeds</dd> <dt id="CEA2014042401">April 23, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/April/14-civ-422.html">Amedisys Home Health Companies Agree to Pay $150 Million to Resolve False Claims Act Allegations</a><br/> WASHINGTON - Amedisys Inc. and its affiliates (Amedisys) have agreed to pay $150 million to the federal government to resolve allegations that they violated the False Claims Act by submitting false home healthcare billings to the Medicare program, the Department of Justice announced today. Amedisys, a Louisiana-based for-profit company, is one of the nation's largest providers of home health services and operates in 37 states, the District of Columbia and Puerto Rico. </dd> <dt id="CEA2014042402">April 23, 2014; U.S. Attorney; Southern District of Texas</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/txs/1News/Releases/2014%20April/140423%20-%20Nowlin.html">Bryan Woman Heads to Prison in Health Care Fraud Conspiracy</a><br/> HOUSTON - Yolanda Nowlin, 42, has been ordered to federal prison for 11 years following her multiple convictions in relation to a large health care fraud conspiracy, announced United States Attorney Kenneth Magidson. A federal jury in Houston convicted Nowlin Sept. 4, 2013, following seven days of trial and less than three hours of deliberations.</dd> <dt id="CEA2014042101">April 18, 2014; U.S. Attorney; Eastern District of Oklahoma</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/oke/news/2014/04182014.html">Durant Medical Center Of Southeastern Oklahoma to Pay $1.5 Million To Resolve False Claims Act Lawsuit</a><br/> Muskogee, Oklahoma - The Medical Center of Southeastern Oklahoma, located in Durant, Oklahoma, and its parent, Health Management Associates, Inc., have agreed to pay $1,065,000 to the United States and $435,000.00 to the State of Oklahoma to resolve allegations that the hospital billed SoonerCare, the Oklahoma Medicaid Program, for surgical procedures performed by Dr. Daniel Castro, and related hospital services, that were not medically necessary, the United States Attorney's Office for the Eastern District of Oklahoma announced today. The settlement also resolves claims that the hospital billed for services related to surgical procedures that Castro did not perform. In January of this year, HMA was acquired by Community Health Systems, a nationwide acute care hospital chain. MCSO is an acute care hospital in Durant, Oklahoma, and Dr. Castro is an otolaryngologist who practiced at MCSO from 2005 to 2010.</dd> <dt id="CEA2014042102">April 18, 2014; U.S. Attorney; District of Massachusetts </dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/ma/news/2014/April/TerrellIlenesentencingPR.html">Virginia Doctor Sentenced For Lying to Grand Jury about Medicare Fraud Scheme</a><br/> BOSTON - A Virginia podiatrist was sentenced yesterday for making false declarations to a grand jury about her participation in a Medicare fraud scheme. U.S. District Court Judge Nathaniel M. Gorton sentenced Ilene Terrell, 65, of Fredericksburg, Va., to five months in prison, five months of home confinement, and two years of supervised release. He also ordered her to pay a $15,000 fine. In January 2014, Terrell pleaded guilty to four counts of making false declarations to a grand jury. Terrell, a podiatrist, lied to the grand jury about her role in falsifying patient medical records to induce Medicare to pay for claims for Orthofix bone growth stimulator medical devices that did not meet Medicare's payment guidelines. Bone growth stimulators are externally-worn medical devices that help regenerate bone cells and are used to assist the healing of broken bones. Medicare only pays for a bone growth stimulator, which costs approximately $4,000, if the medical supplier provides records demonstrating that fracture healing has ceased for three or more months.</dd> <dt id="CEA2014042103">April 17, 2014; U.S. Attorney; Eastern District of Michigan</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/mie/news/2014/2014_4_17_bqandil.html">Dearborn Heights Doctor Convicted Of Health Care Fraud</a><br/> A Dearborn Heights doctor was convicted today in federal court on charges of illegal drug distribution, health care fraud and money laundering, U.S. Attorney Barbara L. McQuade announced today. U.S. District Judge Arthur J. Tarnow found Dr. Basil Qandil, 36, guilty on all 34 counts in the indictment. The evidence presented during the two-week trial showed that between 2011 and 2013, Qandil prescribed more than 3.7 million dosage units of controlled substances outside the course of legitimate medical practice. The prescriptions were issued after either a cursory examination or no examination at all. He wrote unlawful prescriptions for narcotic drugs including Oxycodone and Vicodin, which were resold on the street market or used by addicted patients.</dd> <dt id="CEA2014041801">April 17, 2014; U.S. Attorney; Northern District of West Virginia</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/wvn/news/2014/april/batra.html">Health Care Providers to Pay $1 Million for False Claims, Improper Referrals</a><br/> WHEELING, WEST VIRGINIA -- Two Ohio Valley health care providers will pay a million dollar penalty after violating Federal law by submitting false claims to Medicare. United States Attorney William J. Ihlenfeld, II, announced that Devender Batra, M.D., and Belmont Cardiology, Inc. will pay $1 million to the United States after causing East Ohio Regional Hospital and Ohio Valley Medical Center to submit fraudulent claims to Medicare from January 2009 to August of 2010, in violation of the Federal False Claims Act. The settlement ends an investigation into improper compensation arrangements between Dr. Batra, East Ohio Regional Hospital and Ohio Valley Medical Center. The arrangements with Dr. Batra and Belmont Cardiology led the hospitals to submit false claims for prohibited referrals for various health services in violation of Federal law.</dd> <dt id="CEA2014041802">April 17, 2014; U.S. Attorney; Western District of Oklahoma</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.fbi.gov/oklahomacity/press-releases/2014/owner-manager-and-hospice-company-indicted-for-committing-medicare-fraud">Owner, Manager, and Hospice Company Indicted for Committing Medicare Fraud</a><br/> OKLAHOMA CITY-A federal grand jury in Oklahoma City has returned an indictment charging Paula Kluding, 38, from Chandler, Oklahoma; Patricia Carter, 42, from Tecumseh, Oklahoma; and Prairie View Hospic Inc. (Prairie View Hospice), an Oklahoma corporation located in Chandler, Oklahoma, with 39 separate counts relating to Medicare fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.</dd> <dt id="CEA2014041803">April 17, 2014; District of New Mexico</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nm/press-releases/2014/Apr/141%20-%202014-04-17_jain_pr.html">Pawan Kumar Jain Arrested on Charges of Unlawfully Dispensing Prescription Drugs and Health Care Fraud</a><br/> ALBUQUERQUE - A federal grand jury has returned an indictment charging Pawan Kumar Jain, 61, of Las Cruces, N.M., with the unlawful dispensing of opioid pain medication and health care fraud charges, announced by Acting U.S. Attorney Damon P. Martinez, Special Agent in Charge Joseph M. Arabit of the DEA's El Paso Field Division and Special Agent in Charge Carol K.O. Lee of the FBI's Albuquerque Division. The 50 health care fraud charges allege that Jain engaged in a scheme to defraud two health care benefit programs, Medicare and Medicaid, by submitting claims for payment for prescription medications he dispensed to patients outside the usual course of medical practice and without legitimate medical purpose. The maximum statutory penalty for a conviction on each of the health care fraud charges is ten years in prison and a $250,000 fine.</dd> <dt id="CEA2014041701">April 16, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/April/14-civ-395.html">Tennessee Substance Abuse Treatment Facility Agrees to Resolve False Claims Act Allegations for $9.25 Million</a><br/> The Department of Justice announced today that CRC Health Corp. (CRC) has agreed to pay $9.25 million to the federal government and the State of Tennessee to settle allegations that CRC knowingly submitted false claims by providing substandard treatment to adult and adolescent Medicaid patients suffering from alcohol and drug addiction at its facility in Burns, Tenn. CRC, based in Cupertino, Calif., is a nationwide provider of substance abuse and mental health treatment services.</dd> <dt id="CEA2014041702">April 16, 2014; U.S. Attorney; Eastern District of Pennsylvania</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/pae/News/2014/April/astellas_release.htm">Astellas Pharma US, Inc. To Pay $7.3 Million To Resolve False Claims Act Allegations</a><br/> PHILADELPHIA - Pharmaceutical company Astellas Pharma US, Inc., will pay $7.3 million to resolve allegations that it violated the False Claims Act in connection with its marketing and promoting of the drug Mycamine for pediatric use. The settlement was announced today by United States Attorney Zane David Memeger and the Justice Department. Astellas Pharma US, Inc., located in Northbrook, Illinois, manufactures and sells pharmaceutical drugs, including Mycamine.</dd> <dt id="CEA2014041703">April 16, 2014; U.S. Attorney; Eastern District of Pennsylvania</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/pae/News/2014/April/enowitch_release.htm">Connecticut Man Charged With Running Online Fake Diploma Scheme</a><br/> PHILADELPHIA - James Enowitch, 48, of Cromwell, CT, was charged today by information with mail fraud and aiding and abetting mail fraud, in connection with the operation of a number of fraudulent diploma mills, announced United States Attorney Zane David Memeger. As a result, between 2003 and 2012, Enowitch allegedly sold $5 million worth of fake degrees throughout the world.</dd> <dt id="CEA2014041601">April 14, 2014; U.S. Attorney; Central District of California</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/cac/Pressroom/2014/043.html">S.F. Valley Woman Who Orchestrated Health Care Fraud Scheme that Submitted Nearly $25 Million in Bogus Bills Sentenced to over 7 Years</a><br/> LOS ANGELES - A North Hollywood woman who worked in the health care industry was sentenced this afternoon to 76 months in federal prison for orchestrating a scheme that submitted nearly $25 million in fraudulent bills to Medicare for services and supplies that were medically unnecessary and sometimes were never provided. Susanna Artsruni, 46, who formerly owned a durable medical equipment (DME) company and worked at a number of medical clinics in Los Angeles, was sentenced by United States District Judge Margaret M. Morrow.</dd> <dt id="CEA2014041602">April 14, 2014; U.S. Attorney; Northern District of Texas</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/txn/PressRelease/2014/APR2014/apr14Bullard_sent.html">Former Employee at Medistat Group, Associates, Inc., in Desoto, Texas, Sentenced to 33 Months in Federal Prison for Role in Health Care Fraud Conspiracy</a><br/> DALLAS - Jerry C. Bullard, 57, of Mesquite, Texas, was sentenced this afternoon, by U.S. District Judge Sam A. Lindsay, to 33 months in federal prison and ordered to pay $317,779 in restitution, following his guilty plea in February 2012 to one count of conspiracy to commit health care fraud. Bullard worked in the durable medical equipment department of Medistat Group Associates, Inc., an association of health care providers in Desoto, Texas. Judge Lindsay ordered that Bullard surrender to the Bureau of Prisons on July 15, 2014. </dd> <dt id="CEA2014041603">April 14, 2014; U.S. Attorney; District of Massachusetts</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/ma/news/2014/April/LubinMarvinpleaPR.html">Worcester Man Pleads Guilty to Stealing Government Money</a><br/> BOSTON - A Worcester man pleaded guilty today in U.S. District Court in Worcester today to participating in a scheme to steal more than $110,000 from the federal government. Marvin Lubin, 22, pleaded guilty before U.S. District Court Judge Timothy S. Hillman to theft of public money. In March 2014, Lubin was charged in a felony information. Sentencing is scheduled for July 7, 2014.</dd> <dt id="CEA2014041501">April 14, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/April/14-civ-379.html">Government Intervenes in Lawsuit against Medical Equipment Supplier Orbit Medical Inc. and Former Vice President Jake Kilgore</a><br/> The government has intervened in a False Claims Act lawsuit against Orbit Medical Inc. and Jake Kilgore alleging that Orbit Medical's sales representatives boosted power wheelchair and accessory sales by altering and forging physician prescriptions and supporting documentation, the Justice Department announced today. Orbit Medical is a durable medical equipment supplier based in Salt Lake City, Utah. Jake Kilgore is the former vice president and sales manager at Orbit Medical for the Western region of the United States.</dd> <dt id="CEA2014041502">April 14, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/April/14-civ-378.html">Government Settles False Claims Act Allegations against Kansas Cancer Treatment Facility and Its Owner</a><br/> Hope Cancer Institute, a cancer treatment facility in Kansas, and Dr. Raj Sadasivan, the owner of Hope Cancer Institute, have agreed to pay $2.9 million to resolve allegations that they violated the False Claims Act by submitting claims to Medicare, Medicaid and the Federal Employee Health Benefits Program for drugs and services that were not provided to beneficiaries, the Department of Justice announced today. </dd> <dt id="CEA2014041503">April 10, 2014; U.S. Attorney; Middle District of North Carolina</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/ncm/news/2014/04_10_14.html">Owner of Tax Return Preparation Franchise and Health Provider Business Pleads Guilty to Tax Fraud, Healthcare Fraud and Money Laundering</a><br/> Claude Arthur Verbal II, formerly of Raleigh, N.C., and now of Miami, pleaded guilty to tax fraud, healthcare fraud and money laundering in two separate cases in federal court, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Ripley Rand for the Middle District of North Carolina. Verbal pleaded guilty to one count of conspiracy to defraud the United States, one count of aiding and assisting the preparation of false tax returns, one count of healthcare fraud and one count of money laundering. The plea was accepted late yesterday by U.S. District Judge Catherine Eagles in Greensboro, N.C., and sentencing was set for Aug. 11, 2014. Verbal faces up to 28 years in federal prison and $850,000 in fines, and has agreed to pay restitution to the Internal Revenue Service (IRS) and Medicaid. According to court documents, Verbal was the owner and operator of Infinite Wellness Concepts (IWC), a Medicaid behavioral health provider with locations in Burlington, Durham and Greensboro, N.C. IWC was contracted to provide group therapy, intensive in-home services, enhanced mental health and substance abuse services. Court documents state that Verbal acquired at least one million dollars in fraudulently obtained funds from the Medicaid program.</dd> <dt id="CEA2014041401">April 11, 2014; U.S. Attorney; District of New Jersey</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nj/Press/files/El%20Amir,%20Medhat%20Indictment%20News%20Release.html">Bergen County, N.J., Doctor Charged With Tax Violations</a><br/> NEWARK - A Bergen County, N.J., doctor who owns three immediate care facilities in Hudson County, N.J., was arrested today on multiple tax violations, including allegedly making cash deposits of more than $5.8 million into bank accounts he controlled, U.S. Attorney Paul J. Fishman announced. </dd> <dt id="CEA2014041101">April 10, 2014; U.S. Attorney; Western District of North Carolina</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/ncw/pressreleases/2014/Charlotte-2014-04-10-brewton.html">Federal Judge Hands Down Prison Sentences To Two Women For Using Stolen Identities To Claim Millions Of Dollars From Medicaid In Related Health Care Fraud Schemes</a><br/> CHARLOTTE, N.C. - Two women who defrauded Medicaid of millions of dollars using stolen therapists' identities in related health care fraud schemes have been sentenced to prison by a federal judge in Charlotte, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.</dd> <dt id="CEA2014041102">April 9, 2014; U.S. Attorney; District of Maryland</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/md/news/2014/BaltimorePrescriptionDrugTraffickerSentencedTo5YearsInPrison.html">Baltimore Prescription Drug Trafficker Sentenced To 5 Years in Prison</a><br/> Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Richard Ashbrook, age 51, of Baltimore, today to five years in prison followed by three years of supervised release for conspiring to distribute oxycodone.</dd> <dt id="CEA2014041001">April 9, 2014; U.S. Attorney; District of New Jersey</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nj/Press/files/Eastburn,%20Norman%20Plea%20News%20Release.html">Tom's River, N.J., Chiropractor Admits Receiving Bribes for Patient Referrals</a><br/> NEWARK, N.J. - A chiropractor with a practice in Toms River, N.J., admitted today to accepting bribes to refer a number of his patients to a New Jersey-licensed pain management physician, U.S. Attorney Paul J. Fishman announced. Norman Eastburn, 48, of Jackson, N.J., pleaded guilty to an information charging him with one count of violating the Anti-Kickback statute. He entered his guilty plea before U.S. District Judge Stanley R. Chesler in Newark federal court.</dd> <dt id="CEA2014041002">April 9, 2014; U.S. Attorney; District of Columbia</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/dc/news/2014/apr/14-083.html">Physical Therapy Clinics to Pay $2.78 Million to Resolve False Claims Act Allegations</a><br/> WASHINGTON - Two companies that operate physical therapy clinics in Washington, D.C., Virginia, and Maryland, along with three individuals associated with the businesses, have agreed to pay the United States $2.78 million to settle allegations that the firms' billings to Medicare and the TRICARE health care program violated the False Claims Act. The companies -- Alliance Rehabilitation, LLC and Active Physical Therapy Services, LLC -- submitted invoices to Medicare and TRICARE through a consolidated billing office in Fairfax, Va., that was managed and overseen by Geeta Trehan, of Virginia. The companies' owners, Thomas Bray and Rajeev Gupta, both of Maryland, also managed the operations.</dd> <dt id="CEA2014041003">April 9, 2014; U.S. Attorney; District of New Jersey</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.fbi.gov/newark/press-releases/2014/morris-county-physician-admits-taking-bribes-in-test-referrals-scheme-with-new-jersey-clinical-lab">Morris County Physician Admits Taking Bribes in Test Referrals Scheme with New Jersey Clinical Lab</a><br/> NEWARK, NJ-A physician with a practice in Madison, New Jersey admitted today to accepting bribes of $2,000 per month in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS) of Parsippany, New Jersey; its president; and numerous associates, U.S. Attorney Paul J. Fishman announced. Wayne Lajewski, 51, pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of accepting bribes.</dd> <dt id="CEA2014041004">April 9, 2014; U.S. Attorney; District of Kansas</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/ks/PressReleases/2014/April%202014/April09b.html">Manhattan Physician Sentenced For Unlawfully Prescribing Prescription Drugs</a><br/> TOPEKA, KAN. - A Manhattan, Kan., physician was sentenced Wednesday to five years in federal prison for unlawfully prescribing prescription drugs, U.S. Attorney Barry Grissom said. Michael P. Schuster, 54, Manhattan, Kan., pleaded guilty to one count of conspiracy to distribute controlled substances.</dd> <dt id="CEA2014041005">April 9, 2014; U.S. Attorney; District of Kansas</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/ks/PressReleases/2014/April%202014/April09d.html">Kansas Home Health Worker's Bills Claimed She Was Working Up To 39 Hours A Day</a><br/> TOPEKA, KAN. - A Kansas City, Kan., woman working as a personal care attendant was indicted Wednesday on a federal charge that Medicaid paid more than $587,000 based on fraudulent bills she submitted, U.S. Attorney Barry Grissom and Kansas Attorney General Derek Schmidt announced. Doris Betts, 54, Kansas City, Kan., was charged with six counts of health care fraud.</dd> <dt id="CEA2014040901">April 8, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/April/14-crm-353.html">Detroit Home Health Agency Office Manager Sentenced for Her Role in $5.8 Million Medicare Fraud Scheme</a><br/> The office manager of a Detroit-area home health agency was sentenced today to serve 46 months in prison for her role in a $5.8 million Medicare fraud scheme. Nabila Mahbub, 28, was sentenced by U.S. District Judge Denise Page Hood in the Eastern District of Michigan. In addition to her prison term, Mahbub was sentenced to serve two years of supervised release and was ordered to pay more than $3 million in restitution, jointly and severally with her co-defendants. A jury convicted Mahbub of one count of health care fraud conspiracy in April 2013. According to evidence presented at trial, the defendant and her co-conspirators caused the submission of false and fraudulent claims to Medicare through All American Home Care Inc., a home health care company located in Oak Park, Mich., that purported to provide skilled nursing and physical therapy services to Medicare beneficiaries in the greater Detroit area.</dd> <dt id="CEA2014040902">April 8, 2014; U.S. Attorney; Southern District of Florida</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/fls/PressReleases/140408-01.html">Ten Individuals Indicted for Medicare Fraud Scheme</a><br/> Nine residents of Miami-Dade County and a resident of Hillsborough County have been indicted for their alleged participation in a $12.5 million Medicare fraud scheme. On March 20, 2014, a federal grand jury in Miami returned a 59-count indictment charging Vicente Diaz, 39, Daniel Ocampo, 35, Elsa Capo, 71, Santiago Sepulveda, 79, Marta Curbeco, 67, Margarita Rodriguez, 72, Francisco Maysonet, 67, Pedro Peralta, 69, Amira Galan, 79, and Ana Rosa Santana, 77, for allegedly participating in a scheme to defraud Medicare by submitting false and fraudulent claims, and the payment and receipt of kickbacks in connection with a federal health care program, from approximately November 2011 to October 2013.</dd> <dt id="CEA2014040701">April 4, 2014; U.S. Attorney; District of Maryland</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/md/news/2014/MarylandWomanIndictedForTreatingPatientsWhileFraudulentlyPosingAsAPhysiciansAssistant.html">Maryland Woman Indicted for Treating Patients While Fraudulently Posing as a Physician's Assistant</a><br/> Baltimore, Maryland - A federal grand jury has indicted Shawna Michelle Gunter, age 36, of Severna Park, Maryland, on charges of wire fraud, aggravated identity theft and health care fraud. The indictment was returned on March 18, 2014, and unsealed today upon Gunter's arrest. According to the four count indictment and search warrant affidavit, from July 5 to August 29, 2013, Gunter acted as a physician's assistant, even though she did not have the medical education, training or qualifications to do so. Gunter sought employment as a physician's assistant with a pediatrician who had offices in Centreville and Chestertown, Maryland. To gain employment, Gunter allegedly provided a forged Howard University physician's assistant diploma. She also allegedly provided a forged physician's assistant certificate bearing the license number of another physician assistant practicing in Salisbury, without the victim's knowledge or approval, as well as a forged DEA controlled substance registration certificate bearing a registration number that was almost identical to the victim's.</dd> <dt id="CEA2014040702">April 3, 2014; U.S. Attorney; Southern District of Illinois</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/ils/News/2014/Apr/04032014_Bhuthimethee%20Press%20Release.html">Alton Doctor Sentenced On Charges of Health Care Fraud and Illegal Dispensation of Controlled Substances</a><br/> Viwathna Bhuthimethee, 69, a medical doctor who operated the Walk In Clinic, located on East Broadway Street in Alton, Illinois, was sentenced, today, in district court to twelve months and a day in federal prison on his guilty plea to the fifteen felony counts of an indictment which charged health care fraud against the Illinois Medicaid program and illegal distribution of Schedule III controlled substances (Hydrocodone) and Schedule IV controlled substances (Xanax) by prescribing outside the usual course of professional conduct and without legitimate medical purpose, Stephen R. Wigginton, the United States Attorney for the Southern District of Illinois announced. The Court also imposed a $5,000 fine, a $1,500 special assessment, restitution to Medicaid of $397.48, and two years of supervision following release from prison.</dd> <dt id="CEA2014040401">April 3, 2014; U.S. Attorney; Eastern District of Pennsylvania</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/pae/News/2014/April/davydchik_release.htm">Ambulance Company Driver Sentenced To Prison</a><br/> PHILADELPHIA - Valeriy Davydchik, 59, of Philadelphia, PA, was sentenced today to 24 months in prison for his role in a conspiracy to defraud Medicare involving Penn Choice Ambulance Inc., located in Camp Hill, PA and Huntingdon Valley, PA. On April 9, 2013, the defendant, Anna Mudrova, Yury Gerasyuk, Mikhail Vasserman, Irina Vasserman, Aleksandr Vasserman, Khusen Akhmedov, and Penn Choice Ambulance Inc. were indicted and charged with conspiracy to commit health care fraud and related charges. All defendants have pleaded guilty and await sentencing before U.S. District Court Judge Juan R. Sánchez.</dd> <dt id="CEA2014040402">April 2, 2014; U.S. Attorney; Eastern District of Arkansas</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/are/news/2014/April/Barrow_indictment_healthcare_fraud_040214.html">Husband and Wife Doctors Indicted For Healthcare Fraud</a><br/> Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced today that a Federal Grand Jury has indicted Dr. Robert Barrow, age 60, and Dr. Angela Barrow, age 50, of Little Rock charging both with one count of conspiracy to commit health care fraud and six counts of health care fraud. In addition, Dr. Robert Barrow is also charged with four counts of making false statements in relation to health care matters.</dd> <dt id="CEA2014040301">April 2, 2014; U.S. Attorney; Central District of California</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/cac/Pressroom/2014/040.html">Three Arrested after Being Named in New Indictment that Alleges Money Laundering, Health Care Fraud and Tax Fraud Schemes</a><br/> LOS ANGELES - Three people who were recently named in a superseding indictment that adds health care fraud charges to money laundering and tax fraud schemes were arrested this morning by federal authorities. Edgar Hakobyan, 30, of Glendale; Karen Sarkissian, 43, of Glendale; and L'Tanya Smith, 57, of Ladera Park, were taken into custody without incident and are scheduled to be arraigned on the indictment this afternoon in United States District Court.</dd> <dt id="CEA2014040302">April 2, 2014; U.S. Attorney; Southern District of Texas</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/txs/1News/Releases/2014%20April/140402%20-%20Tellison.html">DME Owner Convicted on all Counts</a><br/> HOUSTON - Andrea Michelle Tellison, 47, has been convicted today of 14 counts of health care fraud and seven counts of aggravated identity theft, announced United States Attorney Kenneth Magidson. The jury returned its verdicts this afternoon following three days of trial and less than two hours of jury deliberation. Tellison, the director of operations, chief compliance officer and co-owner of Texas Durable Medical Company was charged in March 2013 with health care fraud and aggravated identity theft in relation to the submission of approximately $1.48 million worth of enteral nutrition and enteral feeding supply claims to Medicare.</dd> <dt id="CEA2014040201">April 1, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/April/14-crm-330.html">Physician Pleads Guilty for Role in Detroit-area Medicare Fraud Scheme</a><br/> A Detroit-area physician pleaded guilty today for her role in a $7 million health care fraud scheme. Adelina Herrero, 72, of Ann Arbor, Mich., pleaded guilty before U.S. District Judge Paul D. Borman in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. Sentencing will be scheduled at a later date.</dd> </dl> <div class="contentSeparator"></div> <h2 id="mar14">March 2014</h2> <dl class="criminal_report"> <dt id="CEA2014040101">March 31, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/March/14-crm-326.html">Los Angeles Physician Assistant Pleads Guilty in Two Medicare Fraud Cases</a><br/> A Los Angeles physician assistant pleaded guilty today to defrauding Medicare by signing fraudulent prescriptions for durable medical equipment while working at two separate medical clinics in California. Erasmus Kotey, 77, of Montebello, Calif., pleaded guilty before U.S. District Judge Margaret M. Morrow in the Central District of California to one count of health care fraud and one count of conspiracy to commit health care fraud. Sentencing is scheduled for Sept. 8, 2014.</dd> <dt id="CEA2014040102">March 31, 2014; U.S. Attorney; Northern District of Texas</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/txn/PressRelease/2014/MAR2014/mar31StJohn_sent.html">Father and Son Sentenced to Lengthy Federal Prison Sentences on Conspiracy and Health Care Fraud Convictions</a><br/> Dallas - Two Grand Prairie, Texas, men, convicted at trial in October 2013 on conspiracy and health care fraud charges related to their operation of A Medical House Calls, a physician house-call company in North Texas, were sentenced this morning by U.S. District Judge David C. Godbey, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.</dd> <dt id="CEA2014040103">March 31, 2014; U.S. Attorney; Middle District of Florida</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/flm/press/2014/Mar/20140331_Parrish.html">Two Sentenced In Connection With Sunshine Pharmacy Health Care Fraud</a><br/> Fort Myers, Florida - United States District Judge John E. Steele today sentenced Delmer Holmes Parrish (44) and Patricia Parrish (74), both of Naples, for their roles in a conspiracy to commit health care fraud that operated from Sunshine Pharmacy in Naples, Florida. Delmer Holmes Parrish, a licensed Pharmacist, was sentenced to two years in federal prison. Patricia Parrish was sentenced three years of probation, to include 120 days of home confinement, and ordered to pay a $5,000 fine. Both were also ordered to pay restitution to the United States in the amount of $351,358.14, the proceeds of the crime. Pursuant to their agreement, this amount was paid in full, immediately following the sentencing. As part of the plea agreement, Delmer Holmes Parrish also permanently relinquished his Pharmacist License to the State of Florida.</dd> <dt id="CEA2014033101">March 28, 2014; U.S. Attorney; Middle District of Florida</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/flm/press/2014/Mar/20140328_Fuertes.html">Husband and Wife Arrested For Operating Clinic to Defraud Medicare</a><br/> Tampa, FL - United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Miami residents Gladys Fuertes (40) and her husband Mario Fuertes (38) with conspiracy, healthcare fraud, aggravated identity theft, and obstructing a healthcare investigation. The Fuerteses were arrested on Wednesday morning in Miami. If convicted, each faces a maximum penalty of ten years in federal prison on each of the conspiracy and healthcare fraud counts and five years on each of the obstruction counts, as well as mandatory sentences of two years in prison for each of the aggravated identity theft counts. The indictment also notifies the couple that the United States is seeking a money judgment in the amount of $266,423.20, which is traceable to the proceeds of the alleged criminal conduct.</dd> <dt id="CEA2014032801">March 26, 2014; U.S. Attorney; Southern District of Illinois</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.fbi.gov/springfield/press-releases/2014/effingham-doctor-indicted-on-charges-of-health-care-fraud-and-illegal-dispensation-of-controlled-substances">Effingham Doctor Indicted on Charges of Health Care Fraud and Illegal Dispensation of Controlled Substances</a><br/> A federal grand jury sitting in East St. Louis, Illinois returned a 15-count indictment against an Effingham County doctor, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The indictment was opened today upon the arrest and arraignment of the doctor in Benton, Illinois.</dd> <dt id="CEA2014032701">March 26, 2014; U.S. Attorney; Eastern District of Michigan</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/mie/news/2014/2014_3_26_jmilliner.html">Ferndale Doctor Pleads Guilty To Prescription Drug Trafficking</a><br/> Dr. Joel Milliner, M.D., age 45, of Ferndale pleaded guilty yesterday to distribution of controlled substances including prescription pain killers, U.S. Attorney Barbara L. McQuade announced. Milliner pleaded guilty to distribution of controlled substances outside of the course of legitimate medicine. Over the course of several months, Milliner wrote prescriptions for Opana and Oxycondone that he knew would be diverted for illicit purposes.</dd> <dt id="CEA2014032702">March 26, 2014; U.S. Attorney; Northern District of Ohio</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/ohn/news/2014/26marad.html">Akron Physician and Three Employees Indicted For Illegally Prescribing Hundreds of Thousands of Painkillers and Other Pills</a><br/> An Akron physician and three of his employees were indicted for illegally prescribing hundreds of thousands of doses of painkillers and other pills to customers for no legitimate medical purpose, even after he learned some customers had died from overdose-related deaths, law enforcement officials announced today. Adolph Harper, Jr., 63, of Akron, Adria Harper, 34, of Akron, Patricia Laughman, 51, of Barberton, Ohio, and Tequilla Berry, 35, of Akron, are all named in the 134-count indictment.</dd> <dt id="CEA2014032703">March 26, 2014; U.S. Attorney; District of South Dakota</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/sd/pressreleases/2014/RC-2014-03-26-Gray.html">Rapid City Man Charged With Theft from Indian Health Service</a><br/> United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Theft or Embezzlement in Connection with Health Care. Michael Gray, age 58, was indicted on March 18, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 20, 2014, and pled not guilty to the Indictment.</dd> <dt id="CEA2014032601">March 25, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/March/14-crm-310.html">Long Island Doctor Arrested and Accused of Multi-million Medicare Fraud Scheme</a><br/> A Long Island, N.Y., doctor was arrested today on charges that he submitted millions of dollars in false billings to Medicare. Dr. Syed Imran Ahmed, 49, was charged with one count of health care fraud by a criminal complaint unsealed this morning in federal court in Brooklyn, N.Y. A seizure warrant seeking millions of dollars of Ahmed's alleged ill-gotten gains, including the contents of seven bank accounts, was also unsealed. In addition, a civil forfeiture complaint was also filed today against Ahmed's residence located in Muttontown, N.Y., valued at approximately $4 million. Further, search warrants were executed earlier today at six locations in New York, Michigan and Nevada.</dd> <dt id="CEA2014032602">March 25, 2014; U.S. Attorney; District of New Jersey</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nj/Press/files/Gorukanti,%20Surender%20Plea%20PR.html">New York Doctor Admits Taking Bribes for Referring Tests to New Jersey Clinical Lab</a><br/> NEWARK, N.J. - A pediatrician with a New York practice in Staten Island and Brooklyn admitted today he accepted bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president and numerous associates, New Jersey U.S. Attorney Paul J. Fishman announced. Surender Gorukanti, 46, of Brooklyn, pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of accepting bribes.</dd> <dt id="CEA2014032501">March 24, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/March/14-crm-304.html">Southern California Man Found Guilty of Health Care Fraud and Aggravated Identity Theft for Role in $1.5 Million Medicare Fraud Scheme</a><br/> A Southern California man who ran a durable medical equipment supply company has been found guilty by a federal jury in Los Angeles for his role in a $1.5 million Medicare fraud scheme. Vahe Tahmasian, 36, of Glendale, Calif., was found guilty on March 21, 2014, in U.S. District Court in the Central District of California of one count of conspiracy to commit health care fraud, six counts of health care fraud and six counts of aggravated identity theft. Sentencing is set for June 9, 2014.</dd> <dt id="CEA2014032401">March 21, 2014; U.S. Attorney; Eastern District of North Carolina</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nce/press/2014/2014-mar-21.html">Duke University Health System, Inc. Agrees To Pay $1 Million for Alleged False Claims Submitted To Federal Health Care Programs</a><br/> RALEIGH - United States Attorney for the Eastern District of North Carolina Thomas G. Walker and North Carolina Attorney General Roy Cooper announced jointly that Duke University Health System, Inc. (Duke University Health System) has agreed to pay $1 million to resolve allegations under the U.S. and North Carolina False Claims Acts that it made false claims in conjunction with certain services provided to beneficiaries of Federal health care programs (Medicare, Medicaid, and TRICARE).</dd> <dt id="CEA2014032402">March 21, 2014; U.S. Attorney; Southern District of Texas</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/txs/1News/Releases/2014%20March/140321%20-%20Mego%20and%20Yarra.html">U.S. Settles Civil Lawsuit against Valley Heart Consultants/Doctors</a><br/> McALLEN, Texas - Valley Heart Consultants Dr. Carlos Mego and Dr. Subbarao Yarra have settled a suit brought by the United States in McAllen alleging violations of the Federal False Claims Act, announced United States Attorney Kenneth Magidson. The suit alleged that from Jan. 1, 2004, through September 2010, Mego and Yarra violated the False Claims Act by billing Medicare for nuclear stress tests and physical examinations which were allegedly substandard. The United States also alleged that the nuclear medicine used in the tests was injected by personnel who lacked the requisite license. Many of the nuclear stress tests were allegedly unnecessary, as well as many of the coronary angiographies, echocardiograms and carotid doppler studies which the defendants billed to Medicare, according to the allegations. </dd> <dt id="CEA2014032403">March 20, 2014; U.S. Attorney; District of Oregon</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/or/news/2014/20140320_boutros.html">Sibling Sentenced to 6 Months in Jail for Theft of Welfare Benefits</a><br/> PORTLAND, Ore. - A Portland man was sentenced to 6 months in jail for stealing more than $8,000 in benefits intended for his disabled sister. Jason I. Boutros, 49, appeared in federal court for sentencing yesterday after previously pleading guilty to Social Security fraud in December.</dd> <dt id="CEA2014032101">March 20, 2014; U.S. Attorney; Southern District of Illinois</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/ils/News/2014/Mar/03202014_Vaughn%20Press%20Release.html">Federal Jury Finds Missouri Woman Guilty Of Health Care Fraud</a><br/> Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on March 19, 2014, Tisa V. Vaughn, 49, of Florissant, Missouri, was found guilty in United States District Court in East St. Louis, Illinois, on an indictment charging that she engaged in a scheme to commit health care fraud. Sentencing is set for July 11, 2014. The charge carries a maximum penalty of 10 years in prison, a $250,000 fine, and up to 3 years of supervised release.</dd> <dt id="CEA2014032102">March 20, 2014; U.S. Attorney; Middle District of Pennsylvania</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/pam/news/2014/Clark_03_20_14.html">Mechanicsburg Doctor and Owner of Two Medical Facilities Sentenced To 15 Months Imprisonment</a><br/> The United States Attorney for the Middle District of Pennsylvania announced that today, Chief United States District Court Judge Christopher Conner sentenced a Mechanicsburg doctor, Timothy Clark, age 47 to 15 months imprisonment for health care fraud and pension fraud. Clark was also ordered to pay restitution of $130,535.05 and forfeiture of $105,518.46.</dd> <dt id="CEA2014032001">March 19, 2014; U.S. Attorney; Western District of Pennsylvania</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/paw/news/2014/2014_march/2014_03_19_01.html">$1.5M Settlement with West Penn Allegheny Health System Resolves False Claims Act Allegations</a><br/> PITTSBURGH - West Penn Allegheny Health System, Inc. ("WPAHS") has agreed to pay the United States $1,529,281.50 to settle False Claims Act allegations, United States Attorney David Hickton announced today. The settlement results from a self-disclosure by WPAHS to the United States Attorney's Office. Based on information provided by WPAHS, the United States alleged that WPAHS leased space to physicians at below-market rates to induce referrals of patients to WPAHS, in violation of the Anti-Kickback Statute and Stark Law. The United States further alleged that these referrals resulted in improper claims being submitted to federal health care programs.</dd> <dt id="CEA2014031901">March 18, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/March/14-crm-280.html">Straw Owner of Clinic Sentenced in Medicare Fraud Scheme</a><br/> A Florida man who had been the straw owner of a physical therapy rehabilitation facility has been sentenced to serve 30 months in prison for his role in a $28.3 million Medicare fraud scheme. Roberto Fernandez Gonzalez, 63, formerly of southwest Florida, was sentenced by U.S. District Judge Susan C. Bucklew in the Middle District of Florida and was ordered to forfeit $446,738 and pay the same amount in restitution. Fernandez pleaded guilty on June 24, 2013, to conspiracy to commit health care fraud.</dd> <dt id="CEA2014031902">March 18, 2014; U.S. Attorney; Northern District of Alabama</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/aln/News/March%202014/18%20Mar,%202014%20AFC.html">American Family Care Inc. To Pay $1.2 Million to Settle Allegations of Inflated Medicare Claims</a><br/> WASHINGTON - American Family Care Inc. has agreed to pay the government $1.2 million to resolve allegations under the False Claims Act that it knowingly submitted claims to Medicare for outpatient office visits that were billed at a higher rate than was appropriate, the Justice Department announced today. American Family Care is a network of walk-in medical clinics headquartered in Birmingham, Ala., with offices in Alabama, Tennessee and Georgia.</dd> <dt id="CEA2014031903">March 18, 2014; U.S. Attorney; District of Connecticut</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/ct/Press2014/20140318.html">Osteopathic Physician Arrested on Health Care Fraud Charges</a><br/> Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that David Lester Johnston, 45, of Ridgefield, was arrested today on federal health care fraud charges. On March 12, 2014, a federal grand jury sitting in Hartford returned an indictment charging Johnston with 14 counts of health care fraud and 14 counts of making false statements relating to health care matters.</dd> <dt id="CEA2014031904">March 17, 2014; U.S. Attorney; District of South Carolina</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/sc/news/3.17.14.lewis.html">Defendants Convicted of Health Care Fraud to be Sentenced</a><br/> Columbia, South Carolina ----- Truman Levi Lewis, age 35, of Charlotte, North Carolina, and Norman Devi Lewis, age 32, of Georgetown, South Carolina, are scheduled to be sentenced at 10 a.m. and 11:30 a.m., respectively, on Wednesday, March 19, 2014, at the Federal Court House in Charleston. In August of last year, both were convicted by a jury on charges of Conspiracy to Commit Health Care Fraud, a violation of 18 U.S.C. § 1349, 1347, Conspiracy to Commit Money Laundering, a violation of 18 U.S.C § 1956(h) and four counts of Wire Fraud, violations of 18 U.S.C § 1343. United States District Judge Richard M. Gergel of Charleston presided over the trial and will impose the sentences.</dd> <dt id="CEA2014031801">March 17, 2014; U.S. Attorney; Northern District of Texas</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/txn/PressRelease/2014/MAR2014/mar17Padron_sent.html">Physician Sentenced to 57 Months in Federal Prison on Health Care Fraud Conviction</a><br/> DALLAS - Dr. Nicolas Alfonso Padron, 54, of Garland, Texas, was sentenced this morning by U.S. District Judge David C. Godbey to 57 months in federal prison and ordered to pay $9,484,111 in restitution to the Centers for Medicare and Medicaid Services (CMS). Dr. Padron pleaded guilty in September 2013 to one count of count of conspiracy to commit health care fraud stemming from his role as medical director of a physician house-call company, A Medical House Calls (A Medical). Dr. Padron has been in custody since his arrest in June 2012. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.</dd> <dt id="CEA2014031802">March 14, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/March/14-crm-274.html">Medical Clinic Owner Sentenced for Role in Multiple Health Care Fraud Schemes Totaling<br/>Over $20 Million</a><br/> The owner and operator of a Miami medical clinic, Merfi Corp., was sentenced today to serve 108 months in prison for her participation in multiple health care fraud schemes. Isabel Medina, 49, of Miami, was sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida. In addition to her prison term, Medina was also sentenced to serve three years of supervised release and was ordered to pay $8,437,393 in restitution.</dd> <dt id="CEA2014031803">March 14, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/March/14-crm-273.html">Medical Clinic Owner and Other Patient Recruiters Sentenced for Roles in $8 Million Health Care Fraud Scheme</a><br/> Several patient recruiters, including a medical clinic owner, were sentenced today for their participation in a health care fraud scheme involving Flores Home Health Care Inc., a defunct home health care company. Lerida Labrada, 59; Mayra Flores, 49; and German Martinez, 36, all of Miami, were sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida to serve 37 months, 24 months, and 24 months in prison, respectively. In addition to their prison terms, all of the defendants were sentenced to three years of supervised release and ordered to pay between $200,000 and $400,000 in restitution.</dd> <dt id="CEA2014031905">March 13, 2014; U.S. Attorney; District of Massachusetts</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/ma/news/2014/March/MashaliFathallaindictedPR.html">Pain Management Physician Charged with Overbilling Medicare</a><br/> BOSTON - A physician specializing in pain management was charged today for overbilling the Medicare program. Fathalla Mashali, 59, of Dover, was indicted on nine counts of heath care fraud. Mashali was a licensed physician in Massachusetts and Rhode Island who operated New England Wellness & Pain Management, P.C., which was also known as New England Pain Associates, P.C., Greystone Pain Management, Inc., and New England Pain Institute, P.C., or NEPA. NEPA, a pain management clinic with locations in Massachusetts and Rhode Island, served many patients who were Medicare beneficiaries.</dd> <dt id="CEA2014031401">March 13, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/March/14-civ-270.html">Memorial Hospital in Ohio Pays Government $8.5 Million to Settle False Claims Act Allegations</a><br/> Memorial Hospital, an Ohio nonprofit corporation that operates an acute care hospital in Fremont, Ohio, has agreed to pay $8.5 million to settle claims that it violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute by engaging in improper financial relationships with referring physicians, the Justice Department announced today.</dd> <dt id="CEA2014031402">March 13, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/March/14-crm-265.html">Former Veterans Affairs Psychiatrist Sentenced For Medicare Fraud</a><br/> WASHINGTON - A licensed psychiatrist formerly employed by the Department of Veterans Affairs (VA) was sentenced today to serve 18 months in prison for falsely claiming to provide at-home services to Medicare beneficiaries. Dr. Mikhail L. Presman, 56, of Brooklyn, N.Y., was sentenced by Judge I. Leo Glasser in the Eastern District of New York. Presman was sentenced to serve three years of supervised release following his prison term and ordered to forfeit $1.2 million and pay restitution to Medicare.</dd> <dt id="CEA2014031403">March 13, 2014; U.S. Attorney; District of New Jersey</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nj/Press/files/Carlucci,%20William%20and%20Robert%20Sentencing%20PR.html">Twin Brother Pharmacists Each Sentenced To 42 Months in Prison for Defrauding Patients and Insurance Companies of $1.5 Million</a><br/> NEWARK, N.J. - Two pharmacists - twin brothers who previously owned the West Orange Pharmacy - were each sentenced 42 months in prison today for reaping at least $1.5 million in illicit gains by defrauding patients, Medicaid and insurance companies over the past 15 years, U.S. Attorney Paul J. Fishman announced. Robert and William Carlucci, both 70 and of Florham Park, N.J., previously pleaded guilty before U.S. Magistrate Judge Michael A. Hammer to separate informations charging them with conspiring to commit health care fraud. The sentenced was imposed today by U.S. District Judge Faith Hochberg in Newark federal court.</dd> <dt id="CEA2014031404">March 13, 2014; U.S. Attorney; District of Maryland</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/md/news/2014/OphthalmologistAgreesToPay1.4MillionAndTo20YearVoluntaryExclusionFromFederalProgramsTo.html">Ophthalmologist Agrees To Pay $1.4 Million and To 20 Year Voluntary Exclusion from Federal Programs To Settle Claims That He Performed Medically Unnecessary Laser Procedures</a><br/> Baltimore, Maryland - John Arthur Kiely, M.D., of Lutherville, Maryland, has agreed to pay the United States $1.4 million to settle claims under the Federal False Claims Act that he submitted and caused the submission of false claims by Bon Secours Hospital to Medicare and Medicaid between October 29, 2002 and April 14, 2009. Kiely has also agreed to a 20 year voluntary exclusion from Federal health care programs.</dd> <dt id="CEA2014031301">March 12, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/March/14-crm-261.html">Jury Convicts All Seven Defendants in $97 Million Medicare Fraud Scheme</a><br/> A federal jury in Houston today convicted two owners of a former Houston mental health care company, Spectrum Care P.A. (Spectrum), several of its employees and the owners of certain Houston group care homes for their participation in a $97 million Medicare fraud scheme. Physicians Mansour Sanjar, 81, and Cyrus Sajadi, 66, the owners of Spectrum, were each convicted of conspiracy to commit health care fraud and conspiracy to pay kickbacks as well as related counts of health care fraud and paying illegal kickbacks. Adam Main, 33, a physician's assistant, was convicted of conspiracy to commit health care fraud and related counts of health care fraud. Shokoufeh Hakimi, 66, administrator of Spectrum, was convicted of conspiracy to commit health care fraud, conspiracy to pay kickbacks and a related count of paying an illegal kickback. Chandra Nunn, 35, a group home owner, was also convicted of conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks and related counts of receiving illegal kickbacks. Sharonda Holmes, 40, a patient recruiter, was convicted of conspiracy to pay and receive kickbacks and a related count of receiving an illegal kickback. Shawn Manney, 51, a group home owner, was convicted of conspiracy to pay and receive illegal kickbacks.</dd> <dt id="CEA2014031201">March 11, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/March/14-civ-252.html">Florida Hospital System Agrees to Pay the Government $85 Million to Settle Allegations of Improper Financial Relationships with Referring Physicians</a><br/> Halifax Hospital Medical Center and Halifax Staffing Inc. (Halifax), a hospital system based in the Daytona Beach, Fla., area, have agreed to pay $85 million to resolve allegations that they violated the False Claims Act by submitting claims to the Medicare program that violated the Physician Self-Referral Law, commonly known as the Stark Law, the Justice Department announced today.</dd> <dt id="CEA2014031202">March 11, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/March/14-civ-251.html">Pharmaceutical Company to Pay $27.6 Million to Settle Allegations Involving False Billings to Federal Health Care Programs</a><br/> Pharmaceutical manufacturer Teva Pharmaceuticals USA Inc. and a subsidiary, IVAX LLC, have agreed to pay the government and the state of Illinois $27.6 million for allegedly violating the False Claims Act by making payments to induce prescriptions of an anti-psychotic drug for Medicare and Medicaid beneficiaries . Teva Pharmaceuticals USA is located in North Wales, Pa., and IVAX LLC is a Florida company.</dd> <dt id="CEA2014031302">March 7, 2014; U.S. Attorney; Eastern District of Michigan</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/mie/news/2014/2014_3_7_bpatel_etal.html">Jury Convicts Doctor, Pharmacist, Marketer in Health Care Fraud Scheme</a><br/> A doctor, a pharmacist and a marketer were convicted today in federal court in Detroit for health care fraud and controlled substance distribution, U.S. Attorney Barbara L. McQuade announced today. The jury returned guilty verdicts against Dr. Carl Fowler, M.D., 61, of West Bloomfield, pharmacist Mukesh Khunt, 34, of Toronto, Ontario, Canada, and Michael Thoran of Detroit. Defendants Fowler and Thoran were convicted on all three of the counts with which they were charged, conspiracies to commit health care fraud, to distribute controlled substances, and to pay or receive health care kickbacks. </dd> <dt id="CEA2014031303">March 7, 2014; U.S. Attorney; Southern District of Illinois</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/ils/News/2014/Mar/03072014_Sidener%20Press%20Release.html">Ramsey Man Sentenced on Health Care Fraud Charge</a><br/> Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on March 7, 2014, William Dale Sidener, 31, of Ramsey, Illinois, was sentenced on the one-count indictment charging that he engaged in a scheme to commit health care fraud in the United States District Court in East St. Louis, Illinois. The district court sentenced Sidener to serve three years of probation, with the three months to be in home confinement. The district court also ordered Sidener to pay $4,677.75 in restitution to the Illinois Department of Human Services and pay a special assessment of $100.00.</dd> <dt id="CEA2014031304">March 7, 2014; U.S. Attorney; Western District of Pennsylvania</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/paw/news/2014/2014_march/2014_03_07_01.html">Former Family Physician Sentenced to Probation, Community Service for Selling Drug Samples</a><br/> PITTSBURGH - A Pittsburgh-area family doctor has been sentenced in federal court to one year of probation with 200 hours of community service and a $5000 fine on his conviction of the unlawful sale of pharmaceutical drug samples, United States Attorney David J. Hickton announced today.</dd> <dt id="CEA2014031203">March 7, 2014; U.S. Attorney; Southern District of New York</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nys/pressreleases/March14/panosspyrossentencing.php">Dutchess County Orthopedic Surgeon Sentenced In White Plains Federal Court to 54 Months for Multimillion Dollar Health Care Fraud Scheme</a><br/> Preet Bharara, the United States Attorney for the Southern District of New York, announced that Dr. Spyros Panos, an orthopedic surgeon, was sentenced today in White Plains federal court before U.S. District Judge Nelson S. Roman to serve 54 months in prison for operating a long-running health care fraud scheme in which PANOS defrauded Medicare, the New York State Insurance Fund, and numerous private health insurance providers (the "Health Insurance Providers") out of over $2.5 million by systematically lying about the nature and scope of the surgical procedures that he performed. In addition, PANOS was ordered to forfeit $5 million. He was ordered to surrender to start serving his prison term in 30 days.</dd> <dt id="CEA2014031101">March 7, 2014; U.S. Attorney; Northern District of Indiana</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.fbi.gov/indianapolis/press-releases/2014/week-in-reviewhammond-2">Roy Dunn: Conspiracy to Submit Fraudulent Claims to Medicare</a><br/> Roy Dunn, 60, of Winamac, Indiana, a defendant in the case U.S. v Hoosier EMS Inc. et al., pled guilty before District Judge Joseph Van Bokkelen to the felony offense of conspiracy to submit fraudulent claims to Medicare in connection with ambulance transportation for Medicare recipients in Northwest Indiana. Sentencing has been set for May 20, 2014. This charge was filed as a result of an investigation by the Federal Bureau of Investigation, the Medicaid Fraud Control Unit, and the U.S. Department of Health and Human Services. This case is being prosecuted by Assistant United States Attorneys Diane Berkowitz and Thomas McGrath.</dd> <dt id="CEA2014031001">March 7, 2014; U.S. Attorney; Southern District of New York</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nys/pressreleases/March14/KnobelMalkinaArrestPR.php">Manhattan U.S. Attorney Announces Medicaid Fraud Charges Against Postal Employee And Spouse</a><br/> Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas O'Donnell, the Special Agent in Charge of the New York Office of the United States Department of Health and Human Services, Office of Inspector General ("HHS-OIG"), today announced charges against ALEXANDER KNOBEL, an employee of the United States Postal Service the ("Postal Service"), and his spouse, YANA MALKINA, for Medicaid fraud. The Complaint alleges that KNOBEL and MALKINA repeatedly submitted fraudulent documents to obtain and continue to receive Medicaid for themselves and their family, defrauding the Medicaid Program of nearly $100,000, and causing resources designed for low-income individuals to be diverted to themselves. The defendants were arrested this morning and are expected to be presented today before U.S. Magistrate Judge James L. Cott.</dd> <dt id="CEA2014030701">March 6, 2014; U.S. Department of Justice</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/opa/pr/2014/March/14-crm-240.html">Physician Pleads Guilty for Role in Detroit-Area Medicare Fraud Scheme</a><br/> A former Detroit-area physician pleaded guilty today for his role in an $11.5 million health care fraud scheme.</dd> <dt id="CEA2014030501">March 3, 2014; U.S. Attorney; District of North Dakota</dt> <dd><a class="exit" href="https://web.archive.org/web/20140705072916/http://www.justice.gov/usao/nd/news/2014/03-03-14-Robert%20Olie%20Sentenced.html">California Man Sentenced for Defrauding Medicare of $400,000</a><br/> FARGO - U.S. Attorney Timothy Q. Purdon announced that on March 3, 2014, Robert Olie, 66, Torrance Calif., was sentenced before U.S. District Judge Ralph R. Erickson, to 12 months of electronic home monitoring and three year's supervised release for conspiracy to commit health care fraud. Olie was also ordered to pay $417,000 in restitution in addition to $100,000 in forfeiture of assets. Olie was ordered to pay $100 special assessment to the Crime Victims Fund in addition to his sentence.</dd> </dl> <p><p><a class="top" href="#top">Top</a></p></p> <p><a class="back" href="/web/20140705072916/https://oig.hhs.gov/fraud/enforcement/index.asp">Return to Enforcement Actions</a></p> </div> </div>  <div id="rightSide"> <div id="imLookingForHeading"><span>I'm Looking For</span></div> <div id="imLookingFor"> <p>Let's start by choosing a topic</p> <div id="chooseTopic"> <a href="#">Select One </a> </div> </div> <div id="topicSelection"> <a href="#" id="closeButton"><span>X</span></a> <ul class="leftSide"> <li> <a href="/web/20140705072916/https://oig.hhs.gov/reports-and-publications/compendium/"> <h3>Compendium</h3> <p>Priority recommendations summarized.</p> </a> </li> <li> <a href="/web/20140705072916/https://oig.hhs.gov/reports-and-publications/workplan/index.asp#current"> <h3>FY 2014 Work Plan</h3> <p>OIG projects planned for 2014.</p> </a> </li> <li> <a 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