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Criminal and Civil Enforcement

Criminal and Civil Enforcement Archive

February 2013

February 13, 2013; U.S. Department of Justice: Northern Virginia Therapy Provider to Pay $700,000 to Resolve False Claims Act Allegations
Fairfax, Va.-based skilled nursing facility Fairfax Nursing Center (FNC) and its owners have agreed to pay $700,000 to resolve allegations that they violated the False Claims Act by knowingly submitting or causing the submission to Medicare of false claims for non-reimbursable rehabilitation therapy services, the Justice Department announced today.
February 13, 2013; U.S. Attorney; District of New Jersey: New Jersey Doctor Sentenced To Five Months in Prison for Taking Cash Kickbacks for Medicare and Medicaid Patient Referrals
NEWARK, N.J. - A New Jersey doctor practicing in West Orange was sentenced today to five months in prison and five months of home confinement for his role in a payment-for-patients scheme in which he took envelopes of cash in exchange for making patient referrals, U.S. Attorney Paul J. Fishman announced.
February 11, 2013; U.S. Department of Justice: Former Registered Nurse Sentenced in Miami to 111 Months in Prison in Connection with $63 Million Mental Health Care Fraud Scheme
A former registered nurse was sentenced today to serve 111 months in prison for his role in a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN), announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
February 11, 2013; U.S. Department of Justice: Florida Physician to Pay $26.1 Million to Resolve False Claims Allegations
Steven J. Wasserman, M.D., a dermatologist practicing in Venice, Fla., has agreed to pay $26.1 million to resolve allegations that he violated the False Claims Act by accepting illegal kickbacks from a pathology laboratory and by billing the Medicare program for medically unnecessary services, the Justice Department announced today. The settlement is the largest ever with an individual under the False Claims Act in the Middle District of Florida and one of the largest with an individual under the False Claims Act in U.S. history.
February 11, 2013; U.S. Attorney; Western District of North Carolina: Charlotte Jury Convicts Woman in $650,000 Medicaid Fraud Scheme
CHARLOTTE, N.C. - A federal jury sitting in Charlotte convicted a Charlotte woman late Friday, February 8, 2013 of defrauding Medicaid of at least $650,000, obstructing an official proceeding and making false statements in connection with a health care matter, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
February 8, 2013; U.S. Attorney; Southern District of New York: Leader of Armenian Organized Crime Ring Sentenced in Manhattan Federal Court to 37 Months in Prison for His Role in $100 Million Medicare Fraud Scheme
Preet Bharara, the United States Attorney for the Southern District of New York, announced that Armen Kazarian was sentenced today in Manhattan federal court to 37 months in prison for his involvement with the Mirzoyan-Terdjanian Organization, an Armenian-American organized crime enterprise engaged in a wide range of criminal activity. Kazarian pled guilty to racketeering conspiracy in July 2011 and was sentenced today by U.S. District Judge Paul G. Gardephe.
February 7, 2013; U.S. Attorney; Southern District of New York: Manhattan U.S. Attorney Files and Simultaneously Settles Lawsuit against St. Luke's-Roosevelt Hospital Center for Fraudulently Billing Medicare and Medicaid
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed and simultaneously settled a health care fraud lawsuit under the False Claims Act against the St. Luke's-Roosevelt Hospital Center (the "Hospital"), Continuum Health Partners, Inc., and SLR Psychiatric Associates ("SLR") (collectively, "ST. LUKE'S") for improperly billing Medicare and Medicaid for out-patient services provided at its mental health clinics. As part of the settlement, St. Luke's agreed to pay $2,325,000 to settle the Government's claims for damages and penalties under the False Claims Act, with $1,258,115.17 of that amount to be paid to the United States and the balance to the State of New York for its share of the Medicaid overpayment.
February 7, 2013; U.S. Department of Justice: Maryland's St. Joseph's Medical Center Agrees to pay $4.9 Million for Medically Unnecessary Hospital Admissions
St. Joseph's Medical Center, a hospital located in Towson, Md., has reached a settlement with the United States to pay $4.9 million in connection with its submission of false claims to Medicare, Medicaid and other federal healthcare programs, the Justice Department announced today.
February 7, 2013; U.S. Attorney; District of New Jersey: Eleven People Arrested In Large-Scale Medicaid Fraud Scheme
NEWARK, N.J. - Federal and state agents this morning arrested 11 people who are charged by Complaint, along with two corporations, in connection with a large-scale scheme to defraud the Medicaid program of millions of dollars, U.S. Attorney Paul J. Fishman announced today.
February 4, 2012; U.S. Attorney; District of Kansas: Former Topeka Nonprofit Executive Sentenced To Federal Prison For Scheme To Steal Kansas Medicaid Funds
Topeka, Kan. - A former executive with a Topeka-based nonprofit corporation has been sentenced to three years in federal prison for scheming to steal more than $2 million in Kansas Medicaid funds, U.S. Attorney Barry Grissom said today. He also was ordered to pay $2,077,251 in restitution.
February 4, 2013; U.S. Attorney; Southern District of Florida: Two Patient Recruiters of Miami Home Health Company Plead Guilty in $20 Million Health Care Fraud Scheme
Two patient recruiters for a Miami home health care company have pleaded guilty for their participation in a $20 million home health Medicare fraud scheme. The guilty pleas were announced today by U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; Michael B. Steinbach, Acting Special Agent-in-Charge of the FBI's Miami Field Office; and Special Agent-in-Charge Christopher Dennis of the HHS Office of Inspector General, Office of Investigations Miami Office.
February 4, 2013; U.S. Department of Justice: Company Plead Guilty in $20 Million Health Care Fraud Scheme
WASHINGTON - Two patient recruiters for a Miami home health care company have pleaded guilty for their participation in a $20 million home health Medicare fraud scheme. The guilty pleas were announced today by Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Acting Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations, Miami Office.
February 4, 2013; U.S. Attorney; District of Minnesota: Apple Valley Woman Pleads Guilty To Defrauding a Home Health Care Company and Medica
MINNEAPOLIS-Earlier today in federal court, an Apple Valley woman pleaded guilty to defrauding both her employer and Medica. Lori Jo Mueller, age 48, pleaded guilty to one count of wire fraud and one count of health care fraud in connection to the crime. Mueller, who was charged on January 9, 2013, entered her plea before United States District Court Judge David S. Doty. In her plea agreement, Mueller admitted that from June of 2006 through June of 2012, she embezzled approximately $840,000 from Edelweiss Home Health Care, using the funds for her personal use.
February 1, 2013; U.S. Attorney; District of Western Wisconsin: Social Worker Sentenced for Health Care Fraud
Madison, Wis. - John W. Vaudreuil, United States Attorney for the Western District of Wisconsin, announced that defendant Dennis J. Vandermause, 65, Spokane, Wash., was sentenced this week by U.S. District Judge Barbara B. Crabb to five years' probation, and a fine of $10,000 dollars for defrauding Wisconsin's Intensive In-Home Treatment Services Program. He was also ordered to pay $114,713.89 in restitution.
February 1, 2013; U.S. Attorney; Eastern District of Michigan: Pharmacist/pharmacy Owner Sentenced to 17 Years for Health Care Fraud, Drug Offenses
A 50-year-old Canton pharmacist who owned and operated 26 pharmacies in the metro-Detroit area was sentenced today to 17 years in prison, U.S. Attorney Barbara L. McQuade announced today.

January 2013

January 31, 2013; U.S. Attorney; District of New Jersey: Health Care Practitioner Sentenced To Six Months In Prison, Six Months Home Detention, For Accepting Cash Kickbacks For Patient Referrals
NEWARK, N.J. - Daisy Deguzman, a New Jersey doctor who practiced in Newark, today was sentenced to six months in prison and six months of home detention for her role in a cash-for-patients scheme with a diagnostic facility in Orange, N.J., U.S. Attorney Paul J. Fishman announced.
January 31, 2013; U.S. Attorney; Southern District of California: Doctor and Owner of Medical Supply Company Plead Guilty In Million-Dollar Power Wheelchair Scam
United States Attorney Laura E. Duffy announced that a California medical doctor and the owner of the Oceanside Medical Supply in Long Beach, CA have both pled guilty to participating in a conspiracy to defraud the Medicare trust fund by submitting more than $1 million in fraudulent power wheelchair claims. Dr. Irving Schwartz and Jose Melendez entered their guilty pleas before Magistrate Judge Nita L. Stormes in federal court in San Diego, and pursuant to their plea agreements, the defendants are obligated to pay restitution to the Medicare trust fund for the losses caused by their scheme.
January 31, 2013; U.S. Attorney; District of Connecticut: Stratford Doctor Pays $700,000 to Settle False Claims Act Allegations
David B. Fein, United States Attorney for the District of Connecticut, today announced that James P. Ralabate, MD, a physician, and his professional corporation, Primary Care Associates P.C., which is located at 2890 Main Street in Stratford, have entered into a civil settlement with the government in which they will pay $700,000 to resolve allegations that Ralabate violated the False Claims Act.
January 30, 2013; U.S. Attorney; Northern District of Texas: Physician Pleads Guilty to Role in Health Care Fraud Conspiracy
DALLAS - On the day his trial was to begin in U.S. federal court, Dr. Daniel K. Leong, 59, who owned South Dallas Community Medical Center (SDCMC) on Martin Luther King Blvd., in Dallas, pleaded guilty to one count of conspiracy to commit health care fraud. Leong, who is in federal custody, faces a maximum penalty of five years in federal prison, a $250,000 fine and restitution. Sentencing is set for May 1, 2013, before U.S. District Judge Ed Kinkeade.
January 30, 2013; U.S. Attorney; Western District of Missouri: Psychologist Sentenced For $1 Million Health Care Fraud
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a psychologist practicing in the Lebanon, Mo., area was sentenced in federal court today for engaging in a $1 million scheme to defraud Medicare and Medicaid.
January 28, 2013; U.S. Department of Justice: Miami-Area Therapist Sentenced to Prison in Florida in $205 Million Community Mental Health
Fraud Scheme
Miami-area resident Nichole Eckert, former therapist at the mental health care company American Therapeutic Corporation (ATC), was sentenced today to serve 48 months in prison for participating in a $205 million Medicare fraud scheme.
January 25, 2013; U.S. Department of Justice: Former Program Director and Marketers Sentenced to Prison in Florida in $205 Million Community Mental Health Fraud Scheme
The former program director and two former marketers for Miami-based mental health care company American Therapeutic Corporation (ATC) have been sentenced to prison for their roles in a $205 million Medicare fraud and kickback scheme in which patients were forced to attend inappropriate treatment programs.
January 24, 2013; U.S. Attorney; Central District of California: San Fernando Valley Doctor Pleads Guilty in Multi-Million-Dollar Medicare Fraud Case Involving Treatments Never Performed
LOS ANGELES-A medical doctor who owns a clinic in the Winnetka district of the San Fernando Valley pleaded guilty today to federal fraud charges for bilking Medicare out of more than $3 million by submitting bills for procedures never performed, sometimes involving patients he never met.
January 24, 2013; U.S. Attorney; District of New Jersey: Major New Jersey Hospital Pays $12.5 Million To Resolve Kickback Allegations
NEWARK, N.J. - The Cooper Health System has agreed with the U.S. Attorney's Office for the District of New Jersey and the State of New Jersey to pay $12.6 million to settle allegations that it violated the federal False Claims Act and New Jersey False Claims Act by making improper payments to physicians under so-called "consulting" and "compensation" agreements as it sought to build its cardiology program.
January 24, 2013; U.S. Department of Justice: Four Sentenced to Prison in Florida Community Mental Health Center Case
The owners of three Miami-area assisted living facilities and an affiliated psychologist were sentenced to prison today in connection with a health care fraud scheme, involving now-defunct Miami-area health provider Health Care Solutions Network Inc. (HCSN), in which Medicare was billed for mental health treatments that were unnecessary or not provided.
January 24, 2013; U.S. Attorney; District of Massachusetts: Another Orthofix Defendant Sentenced for Committing Medicare Fraud
BOSTON - A former Orthofix territory manager was sentenced yesterday for defrauding Medicare by forging patient medical records. Michael J. McKay, 32, was sentenced by U.S. District Court Judge Denise J. Casper to one year of probation, with the first three months to be served in home confinement, and ordered to forfeit $10,000 and pay a fine of $3,000. In May 2012, McKay pleaded guilty to healthcare fraud.
January 24, 2013; U.S. Attorney; Western District of Louisiana: Houston Man Sentenced for Health Care Fraud
SHREVEPORT, La: United States Attorney Stephanie A. Finley announced today that Godspower Joseph Essang, 35, of Houston, Texas, was sentenced today, to 37 months in federal prison with three years supervised release for Medicare fraud. Essang was also ordered to pay $613,096 in restitution to Medicare. Judge Maurice S. Hicks immediately remanded Essang into the custody of the U. S. Marshal's Service to begin serving his sentence.
January 23, 2013; U.S. Department of Justice: Former Miami Clinic Director Sentenced to 70 Months in Prison for Role in HIV Infusion Fraud Scheme
A former Miami HIV infusion clinic director was sentenced today to serve 70 months in prison for his role in a $26.2 million HIV infusion fraud scheme, announced Assistant Attorney General Lanny Breuer of the Criminal Division, U.S. Wifredo A. Ferrer of the Southern District of Florida, Acting Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
January 23, 2013; U.S. Attorney; District of Minnesota: Brooklyn Park Man Sentenced For Health Care Fraud
MINNEAPOLIS-Earlier today in federal court, a 52-year-old Brooklyn Park man was sentenced for executing a scheme to defraud Medicaid out of more than $500,000. United States District Court Judge David S. Doty sentenced Allwell Tam Inimgba to 18 months in prison on one count of health care fraud. Inimgba, was charged on September 21, 2012, and pleaded guilty on October 9, 2012.
January 22, 2013; U.S. Attorney; Eastern District of Virginia: Provider of Home Health Care Services Sentenced for Medicaid Fraud
NORFOLK, Va. - Janice W. Holland, 42, of Suffolk, Va., was sentenced today to 51 months in prison for health care fraud and alteration of records, and a mandatory consecutive sentence of 24 months in prison for aggravated identity theft, for a total sentence of 75 months. She was also ordered to pay restitution to the Virginia Medicaid program in the amount of $630,339.30.
January 18, 2013; U.S. Attorney; Western District of Louisiana: Former Owner of Rest Assure Home Medical Equipment Sentenced In Federal Court on Health Care Fraud Charges
LAFAYETTE, La.: United States Attorney Stephanie A. Finley announced today that the former owner of Rest Assure Home Medical Equipment, located in Rayne, La., was sentenced to five years probation and was ordered to pay $175,923.93 in restitution for health care fraud related to Medicare reimbursements. The sentence was handed down yesterday in federal court in Lafayette by U.S. District Judge Elizabeth E. Foote.
January 18, 2013; U.S. Department of Justice: Owner of Texas Durable Medical Equipment Companies Convicted in Fraud Scheme
A Texas federal judge convicted the owner of two Texas-based durable medical equipment companies today on multiple health care fraud charges following a five-day bench trial, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division.
January 17, 2013; U.S. Department of Justice: Seven Arrested, Charged with $22 Million Detroit-area Home Health Care Fraud Scheme
Six Detroit-area residents and one Chicago-area resident were arrested today by federal agents on charges arising from the ongoing investigation into an alleged $22 million home health care fraud scheme. The indictment was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan; Special Agent in Charge Robert D. Foley III of the FBI's Detroit Field Office; Special Agent in Charge Lamont Pugh III of the Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office; and Special Agent in Charge Erick Martinez of the Internal Revenue Service Criminal Investigation (IRS-CI) Detroit Field Office.
January 17, 2013; U.S. Attorney; Northern District of Ohio: Youngstown Man Indicted on Seven Counts of Health Care Fraud
A federal indictment was filed charging Rolando Sepulveda with seven counts of health care fraud in connection with the operation of his ambulette company, Med Transportation, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Ohio Attorney General Mike DeWine.
January 16, 2013; U.S. Attorney; District of Columbia: Maryland Man Sentenced to 19 Months in Prison for Medicaid Fraud Involving Power Wheelchairs and Incontinence Supplies
WASHINGTON - Uche Ben Odunzeh, 32, of Laurel, Md., was sentenced today to 19 months in prison on a federal charge stemming from the submission of more than $600,000 in false health care claims, announced U.S. Attorney Ronald C. Machen Jr.
January 16, 2013; U.S. Attorney; District of New Jersey: Hudson County, N.J., Pediatrician Charged With Fraudulently Billing Medicaid For Nearly $1 Million
NEWARK, N.J. - A Hudson County, N.J., pediatrician was arrested at his home this morning for fraudulently billing Medicaid $900,000 for wound-repair treatments on children that were never rendered, U.S. Attorney Paul J. Fishman announced.
January 15, 2013; U.S. Attorney; Eastern District of Michigan: Podiatrist Sentenced to 55 Months in Prison in Connection with $1.6 Million Medical Billing
Fraud Scheme
FLINT, MI-A Fenton podiatrist was sentenced in Bay City yesterday to 55 months in prison for his participation in a $1.6 million fraudulent medical billing scheme.
January 14, 2013; U.S. Department of Justice: Los Angeles Check Cashing Store, Its Head Manager and Compliance Officer Sentenced for Violating Anti-money Laundering Laws
WASHINGTON - A Los Angeles check cashing store, its head manager and its designated anti-money laundering compliance officer were sentenced today in the Central District of California for failing to follow reporting and anti-money laundering requirements for over $8 million in transactions in violation of the Bank Secrecy Act (BSA), announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney for the Central District of California André Birotte Jr; Assistant Director in Charge Bill L. Lewis of the FBI Los Angeles Division; Chief of the Internal Revenue Service Criminal Investigation (IRS-CI) Richard Weber; and Glenn R. Ferry, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General's (HHS-OIG) Los Angeles region.
January 11, 2013; U.S. Attorney; Eastern District of Texas: Collin County Couple Arrested for Health Care Fraud Violations
SHERMAN, TX-A Collin County, Texas husband and wife have been arrested and charged with health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
January 11, 2013; U.S. Attorney; Eastern District of Virginia: Owners of Woodbridge Home Health Business Convicted for Health Care Fraud, Aggravated
Identity Theft
ALEXANDRIA, Va. - The owners of a Woodbridge, Va.-based home health care business have been convicted by a federal jury in Alexandria, Va., for submitting numerous false claims to Medicaid for reimbursement for services they did not provide.
January 10, 2013; U.S. Attorney; District of Minnesota: Apple Valley Woman Charged With Defrauding Home Health Care Company, Medica
MINNEAPOLIS-Yesterday in federal court, an Apple Valley woman was charged with defrauding both her employer and Medica. On January 9, 2012, Lori Jo Mueller, age 48, was charged via an Information with one count of wire fraud and one count of health care fraud.
January 9, 2013; U.S. Attorney; District of Massachusetts: Orthofix Defendant Sentenced for Defrauding Medicare
BOSTON - A former manager of medical device company Orthofix was sentenced today in federal court for defrauding Medicare by falsifying patient medical records.
January 8, 2013; U.S. Department of Justice: Detroit Doctor Pleads Guilty in Connection with Medicare Psychotherapy Fraud Scheme
WASHINGTON-A Detroit doctor at the center of a $13.2 million psychotherapy fraud scheme, which used the Medicare information of mentally-disabled Detroit residents to defraud Medicare, pleaded guilty today for his role in the scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Robert D. Foley, III of the FBI's Detroit Field Office; and Special Agent in Charge Lamont Pugh, III of the U.S. Department of Health and Human Services Office of Inspector General, Chicago Regional Office.
January 7, 2013; U.S. Department of Justice: Owner of Detroit Adult Day Care Centers Pleads Guilty in Connection with Medicare Psychotherapy Fraud Scheme
WASHINGTON - The owner of several Detroit-area businesses that housed severely mentally-disabled Medicare recipients pleaded guilty today for his role in a $13.2 million fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI's Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General, Chicago Regional Office.
January 4, 2013; U.S. Attorney; District of Connecticut: Madison Woman Who Made False Statements about Use of Federal Funds Sentenced To Federal Prison
David B. Fein, United States Attorney for the District of Connecticut, announced that AMY KUHNER, 55, formerly of Madison, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 15 months of imprisonment, followed by three years of supervised release, for making false statements about her use of federal grant monies. KUHNER also was ordered to pay a $5,000 fine.
January 4, 2013; U.S. Attorney; Northern District of Ohio: EMH Regional Medical Center and North Ohio Heart Center to pay $4.4 million to resolve False Claims Act Allegations
EMH Regional Medical Center has agreed to pay the United States $3,863,857 and North Ohio Heart Center Inc. (NOHC) has agreed to pay the United States $541,870 to settle allegations that they submitted false claims to Medicare, the Justice Department announced today.
January 4, 2013; U.S. Attorney; Southern District of Illinois: Thirteen-Year Fugitive Dr. Juan Rios Sentenced
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on January 4, 2013, Juan Rios, 65, of Peru, was sentenced to 37 months in prison and ordered to pay fines and restitution totaling over $320,000 for his conviction on health care fraud, mail fraud, and failure to appear. Rios was also ordered to serve three years of supervised release after his period of incarceration.
January 4, 2013; U.S. Attorney; District of New Jersey: Medical Assistant Pleads Guilty to Conspiracy to Bill Medicare for Unlicensed Physician's Services
NEWARK, N.J. - A medical assistant at a pair of large medical services companies with offices in New Jersey and New York admitted today to conspiring with the companies' chief executive officer to defraud Medicare over a four-year period by performing illegal, unlicensed physicians' services for patients, U.S. Attorney Paul J. Fishman announced. Mario Roncal, 61, of Woodland Park, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an Indictment charging him with one count of conspiracy to commit health care fraud.
January 4, 2013; U.S. Attorney; Western District of North Carolina: Shelby Woman Pleads Guilty To Defrauding Medicaid of $8 Million, Aggravated Identity Theft and Tax Fraud
CHARLOTTE, N.C. - A Shelby woman pleaded guilty today for her involvement in a health care fraud scheme that defrauded Medicaid of $8 million for sham mental and behavioral health services, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. In addition to defrauding Medicaid, Victoria Finney Brewton, 37, of Shelby, N.C., also pleaded guilty to stealing a therapist's identity to commit the fraud and to filing a false tax return.
January 3, 2013; U.S. Attorney; District of Maryland: Defendant Collected SSA Disability Benefits While Employed By SSA
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Christopher George Perry, age 50, of Baltimore, today to two years in prison followed by three years of supervised release for social security disability fraud, federal health benefit program fraud and health care fraud. Judge Bennett also ordered Perry to pay restitution totaling $154,234.54 to the Social Security Administration and Medicare.
January 3, 2013; U.S. Department of Justice: Florida-Based American Sleep Medicine to Pay $15.3 Million for Improperly Billing Medicare and Other Federal Healthcare Programs
Florida-based American Sleep Medicine LLC has agreed to pay $15,301,341 to resolve allegations that it billed Medicare, TRICARE - the health care program for Uniformed Service members, retirees and their families worldwide - and the Railroad Retirement Medicare Program for sleep diagnostic services that were not eligible for payment, the Justice Department announced today.
January 3, 2013; U.S. Department of Justice: Owner of Detroit Adult Day Care Centers Pleads Guilty in Connection with Medicare Psychotherapy Fraud Scheme
WASHINGTON - The owner of several Detroit-area adult day care centers pleaded guilty today for her role in a $13.2 million psychotherapy fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI's Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General, Chicago Regional Office.
January 3, 2013; U.S. Attorney; Middle District of Alabama: Wetumpka Woman Indicted for Stealing Over $750,000 from Medicaid
Montgomery, Alabama - Lashawn Denise Anthony, 41, of Wetumpka was arraigned today on charges that she stole over $750,000 from Alabama Medicaid, announced George L. Beck, U.S. Attorney for the Middle District of Alabama.
January 2, 2013; U.S. Attorney; Northern District of Georgia: Golden Living Nursing Homes Settle Allegations of Substandard Wound Care
ATLANTA - The United States Attorney's Office today announced that the United States and the State of Georgia have reached a settlement with GGNSC Holdings, LLC, of Plano, Texas, the operator of skilled nursing facilities located in Atlanta, Georgia, to resolve allegations under the False Claims Act and the Georgia State False Medicaid Claims Act, that GGNSC provided inadequate and worthless wound care services to residents at two of its Atlanta area nursing homes. GGNSC operates nursing homes under the "Golden Living" name. GGNSC has agreed to pay $613,300 to resolve these allegations. The United States' share of the settlement is $423,544.

December 2012

December 27, 2012; U.S. Department of Justice: Victory Pharma Inc. of San Diego Pays $11.4 Million to Resolve Kickback Allegations in Connection with Promotion of Its Drugs
Victory Pharma Inc., a specialty pharmaceutical company headquartered in San Diego, has agreed to pay $11,420,743 to resolve federal civil and criminal liability arising from its marketing of the pharmaceutical products Naprelan, Xodol, Fexmid and Dolgic, the Justice Department announced today. Under the agreement announced today, Victory entered into a deferred prosecution agreement and paid a criminal forfeiture of $1.4 million to resolve federal Ant-Kickback Statute allegations, and paid $9,938,310 to resolve False Claims Act allegations.
December 20, 2012; U.S. Attorney; Southern District of Florida: Miami Husband and Wife Sentenced on Medicare Fraud Charges
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, announce yesterday's sentencing of Lazaro Prat and Lisette Lopez Prat, husband and wife, both from Miami, on Medicare fraud and money laundering charges. Lazaro Prat was convicted of conspiring to defraud Medicare and conspiring to launder Medicare fraud proceeds. Lisette Lopez Prat was convicted of conspiring with her husband and others to launder the proceeds of Medicare fraud.
December 20, 2012; U.S. Attorney; Western District of Louisiana: Former Lafayette, La Cardiologist Reports To Prison to Begin Ten Year Sentence
Lafayette, La. - United States Attorney Stephanie A. Finley announced today that Dr. Mehmood M. Patel, 67, a former Lafayette cardiologist surrendered to the Bureau of Prisons on December 17, 2012, to begin serving a ten year sentence.
December 20, 2012; U.S. Attorney; Northern District of California: 10 Members of Fraudulent Prescription Ring Arrested
OAKLAND - On December 18, 2012, ten people were arrested for their participation in a network that obtained significant quantities of prescription narcotics through forged prescriptions, United States Attorney Melinda Haag announced.
December 20, 2012; U.S. Department of Justice: Clinical Director for Miami-based Health Care Clinic Sentenced to Prison for Role in $50 Million Medicare Fraud Scheme
WASHINGTON - A former clinical director for Biscayne Milieu, a Miami-based mental-health clinic, was sentenced today to 100 months in prison for his participation in a Medicare fraud scheme involving the submission of more than $50 million in fraudulent billings to Medicare, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Acting Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations Miami Office.
December 20, 2012; U.S. Attorney; Northern District of Illinois: Owner of Former South Suburban Home Health Care Business Sentenced To 10 Years in Prison for $2.9 Million Medicare Fraud
CHICAGO - The co-owner of a former south suburban home health care business was sentenced today to 10 years in federal prison for defrauding Medicare of more than $2.9 million by submitting tens of thousands of false claims annually that misrepresented medical services provided to beneficiaries. BAHIR HAJ KHALIL, the executive manager and co-owner of House Call Physicians LLC, in Palos Hills, was the last of three defendants to be sentenced following Khalil's conviction at a trial in September.
December 19, 2012; U.S. Department of Justice: Amgen Inc. Pleads Guilty To Federal Charge in Brooklyn and Pays $762 Million to Resolve Criminal Liability and Civil Fraud Allegations
Earlier today, at the federal courthouse in Brooklyn, New York, U.S. District Judge Sterling Johnson, Jr. accepted a guilty plea by American biotechnology giant Amgen Inc. ("Amgen") for illegally introducing a misbranded drug into interstate commerce, and approved Amgen's global settlement with the United States in which Amgen agreed to pay $762 million to resolve criminal and civil liability arising from its sale and promotion of certain drugs. The settlement represents the single largest criminal and civil fraud settlement involving a biotechnology company in U.S. history.
December 19, 2012; U.S. Department of Justice: Sanofi US Agrees to Pay $109 Million to Resolve False Claims Act Allegations of Free Product Kickbacks to Physicians
Sanofi-Aventis U.S. Inc. and Sanofi-Aventis U.S. LLC, subsidiaries of international drug manufacturer Sanofi (collectively, Sanofi US), have agreed to pay $109 million to resolve allegations that Sanofi US violated the False Claims Act by giving physicians free units of Hyalgan, a knee injection, in violation of the Anti-Kickback Statute, to induce them to purchase and prescribe the product. The settlement also resolves allegations that Sanofi US submitted false average sales price (ASP) reports for Hyalgan that failed to account for free units distributed contingent on Hyalgan purchases. The government alleges that the false ASP reports, which were used to set reimbursement rates, caused government programs to pay inflated amounts for Hyalgan and a competing product.
December 19, 2012; U.S. Department of Justice: Owners of Two Miami Home Health Companies Plead Guilty in $48 Million Health Care Fraud Scheme
The owners and operators of two Miami health care agencies pleaded guilty today for their participation in a $48 million home health Medicare fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Acting Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General, Office of Investigations Miami Office.
December 18, 2012; U.S. Attorney; Central District of California: Orange County Doctor Sentenced to Year in Prison in $11 Million Medicare Scam Involving Patients Recruited from L.A.'s 'Skid Row'
LOS ANGELES - A physician who admitted homeless patients to the Tustin Hospital and Medical Center after they had been driven from "Skid Row" in downtown Los Angeles as part of a Medicare fraud scheme has been sentenced to one year in federal prison. Dr. Kenneth Thaler, 61, of Westminster, was sentenced yesterday afternoon by Chief United States District Judge George H. King. Thaler, who admitted approximately 60 patients per month-including some who did not require hospitalization-also was ordered to pay approximately $11 million in restitution to the Medicare program.
December 18, 2012; U.S. Attorney; Eastern District of New York: Alleged Fugitive "Deadbeat Parent" Arrested For Failure To Pay Over $1 Million In Child Support
Earlier today, defendant Robert D. Sand, a fugitive wanted pursuant to a federal arrest warrant issued in the Eastern District of New York for failure to pay more than $1 million in court-ordered child support, was arrested by deputies with the United States Marshals Service after landing at Los Angeles International Airport following his deportation from the Republic of the Philippines.1 Sand's initial appearance is scheduled this afternoon before United States Magistrate Judge Bristol at the United States Courthouse in Los Angeles, California. Sand is scheduled to appear on January 16, 2013 ,before the Honorable Joseph F. Bianco at the United States Courthouse located in Central Islip, New York, for arraignment on an indictment that charges him with two counts of failure to pay child support.
December 18, 2012; U.S. Department of Justice: Owner of Brooklyn, N.Y., Clinic Pleads Guilty in Connection with $71 Million Medicare Fraud Scheme
WASHINGTON - The owner and manager of a Brooklyn, N.Y., health care clinic pleaded guilty today in federal court for her role in a $71 million Medicare fraud and money laundering scheme, announced Lanny A. Breuer, Assistant Attorney General of the Department of Justice Criminal Division; Loretta E. Lynch, U.S. Attorney for the Eastern District of New York; George Venizelos, Assistant Director in Charge, FBI, New York Field Office; and Thomas O'Donnell, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General.
December 18, 2012; U.S. Department of Justice: Physical Therapy Assistant Pleads Guilty in Connection with Detroit Medicare Fraud Scheme
WASHINGTON - Detroit-area resident Ankit Patel pleaded guilty today for his role in a $13.8 million home health care fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Robert D. Foley III of the FBI's Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General, Chicago Regional Office.
December 17, 2012; U.S. Department of Justice: Leader of $63 Million Mental Health Fraud Scheme Pleads Guilty in Miami
WASHINGTON - The owner of a string of community mental health centers pleaded guilty today in connection with a health care fraud and money laundering scheme involving defunct health care provider Health Care Solutions Network Inc. (HCSN), announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Acting Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations Miami office.
December 17, 2012; U.S. Department of Justice: Los Angeles-area Church Pastor Pleads Guilty to Money Laundering and Conspiring with Doctors, Others to Defraud Medicare of More Than $11 Million
WASHINGTON - A Los Angeles-area church pastor pleaded guilty today to conspiring with doctors, the operators of fraudulent medical clinics, street-level patient recruiters and others to defraud Medicare of more than $11 million, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney André Birotte Jr. of the Central District of California; Glenn R. Ferry, Special Agent in Charge for the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); Bill L. Lewis, Assistant Director in Charge of the FBI's Los Angeles Field Office; and Joseph Fendrick, Special Agent in Charge of the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse.
December 17, 2012; U.S. Attorney; Northern District of California: San Jose Woman Pleads Guilty to Conspiracy to Commit Health Care Fraud
SAN JOSE, CA-Gurinder Mand pleaded guilty in federal court in San Jose on December 12, 2012, to conspiracy to commit health care fraud, United States Attorney Melinda Haag announced. In pleading guilty, Mand admitted she knowingly and willfully conspired with the former owner of EZ Step pharmacy and others to submit false and fraudulent claims to health care benefit programs, including Medicare, Medi-Cal, and private insurance companies.
December 17, 2012; U.S. Attorney; Southern District of Texas: Houston Man Arrested for Health Care Fraud
HOUSTON - Lawrence T. Tyler, 40, has been indicted on charges of health care fraud and conspiracy to commit health care fraud, United States Attorney Kenneth Magidson announced today. The nine-count indictment, returned Wednesday, Dec. 12, 2012, was unsealed today upon his arrest without incident.
December 17, 2012; U.S. Attorney; Eastern District of Virginia: Ex-Staffing Manager of Home Health Care Services Provider Sentenced for Alteration of Records to Conceal Medicaid Fraud
NORFOLK, Va. - Lynette Smith, 41, of Suffolk, Va., was sentenced today to ten months in prison for altering records to conceal Medicaid fraud committed by a provider of home health care services. Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Virginia Attorney General Ken Cuccinelli made the announcement after sentencing by United States District Judge Robert G. Doumar.
December 14, 2012; U.S. Attorney; Central District of California: Hancock Park Physician Sentenced to Year in Federal Prison in Kickback Scheme that Defrauded Medicare Program
LOS ANGELES - A Los Angeles physician who received approximately $30,000 in illegal kickbacks as part of a scheme that defrauded Medicare out of more than $5 million has been sentenced to one year and one day in federal prison.
December 13, 2012; U.S. Attorney; Northern District of Texas: Amarillo, Texas, Orthodontist Pleads Guilty in Federal Court to Health Care Fraud
AMARILLO, Texas - Dr. Michael David Goodwin, 63, an orthodontist who practices in Amarillo, Texas, and Crown Point, Indiana, pleaded guilty in federal court today, before U.S. District Judge Mary Lou Robinson, to one count of health care fraud related to his scheme to defraud the Texas Medicaid program, announced U.S. Attorney Sarah R. Salda�a of the Northern District of Texas. Goodwin faces a maximum penalty of 10 years in federal prison, a $250,000 fine and restitution. He will remain on bond pending sentencing, which is set for February 7, 2013.
December 13, 2012; U.S. Department of Justice: Owner of Louisiana-based Health Care Company Convicted in Texas for Role in $6.7 Million Medicare Fraud Scheme
WASHINGTON - The owner and operator of a Louisiana-based durable medical equipment (DME) company was convicted today by a federal jury in Houston for his role in a $6.7 million Medicare fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney Kenneth Magidson of the Southern District of Texas; and Special Agent in Charge Mike Fields of the Dallas Regional Office of the U.S. Department of Health and Human Service's Office of the Inspector General (HHS-OIG).
December 13, 2012; U.S. Department of Justice: Houston-area Doctor Convicted in $17.3 Million Medicare Fraud Scheme Involving Fraudulent Claims for Home Health Care Services
WASHINGTON - A federal jury in Houston today convicted Ben Harris Echols, 63, of Houston, for conspiring to commit healthcare fraud by falsifying plans of care for Medicare beneficiaries, including patients whom he did not treat. After a four day trial, the jury convicted Echols of one count of conspiracy to commit health care fraud and six counts of false statements relating to health care matters.
December 12, 2012; U.S. Department of Justice: Pfizer Agrees to Pay $55 Million for Illegally Promoting Protonix for Off-Label Use
Pfizer Inc. will pay $55 million plus interest to resolve allegations that Wyeth LLC illegally introduced and caused the introduction into interstate commerce of a misbranded drug, Protonix, between February 2000 and June 2001, the Justice Department announced today.
December 12, 2012; U.S. Attorney; Middle District of Florida: Local Pharmacist Guilty Of Filling Hundreds of Fraudulent Oxycodone Prescriptions
Tampa, Florida - A federal jury yesterday found Emmanuel I. Mekowulu (56, Tampa) guilty of conspiring with other persons to knowingly and intentionally distribute and dispense a controlled substance, primarily Oxycodone, outside of a legitimate medical purpose and not in the usual course of professional practice. Mekowulu faces a maximum penalty of 20 years in federal prison. As part of the sentence, he will also forfeit his Florida Department of Health Pharmacist License and the DEA Registration and Florida Department of Health Pharmacy License for Felky Rx, LLC, which were used to commit or facilitate the offense.
December 12, 2012; U.S. Attorney; Southern District of Florida: Medicare Beneficiaries and Patient Recruiter Found Convicted of Accepting Kickbacks from Home Health Agency
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service, Miami Division, announce that defendants Marianela Terrero, Daymi Fuentes Gil, Olga Martinez Rodriguez, and Joel Loyola, were convicted by a jury after trial of conspiracy to pay and receive health care kickbacks related to home health services. Sentencing has been scheduled for February 19, 2013 at 11:30 AM before U.S. District Judge Donald M. Middlebrooks.
December 12, 2012; U.S. Attorney; Southern District of Florida: Sunrise Man Arrested and Charged in $20 Million Payroll Tax Fraud Scheme
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announce the unsealing of a December 6, 2012 indictment charging Sonny Austin Ramdeo, 35, of Sunrise, with wire fraud in connection with a $20 million federal payroll tax fraud scheme, in violation of Title 18, United States Code, Section 1343 and 2. Ramdeo was arrested today in Brooklyn, and made his initial appearance in federal court in the Eastern District of New York earlier today. He is expected to be removed to the Southern District of Florida on these charges.
December 11, 2012; U.S. Department of Justice: Detroit-Area Physical Therapy Assistant Sentenced to 30 Months in Prison for Role in $13.8 Million Home Health Care Fraud Scheme
WASHINGTON-A Detroit-area registered physical therapy assistant was sentenced today to serve 30 months in prison for her role in a nearly $13.8 million Medicare fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Robert D. Foley III of the FBI's Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General Chicago Regional Office.
December 11, 2012; U.S. Attorney; District of Idaho: Caldwell Optometrist Sentenced for Defrauding Health Care Benefit Programs
BOISE - U.S. Attorney Wendy J. Olson announced today that Christopher Card, 60, of Caldwell, Idaho, was sentenced in United States District Court to 36 months in prison followed by three years of supervised release for executing a scheme to defraud health care benefit programs. U.S. District Judge Edward J. Lodge also ordered Card to pay $1 million in restitution and fined him $100,000. He pleaded guilty to the charge on August 16, 2012.
December 10, 2012; U.S. Department of Justice: Brooklyn, N.Y., Physician and Clinic President Pleads Guilty to Medicare Fraud Scheme
WASHINGTON - A medical doctor and the president of two Brooklyn, N.Y., medical clinics pleaded guilty today for his role in a scheme resulting in more than $11.7 million in fraudulent Medicare claims, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division.
December 10, 2012; U.S. Department of Justice: Brooklyn, N.Y., Doctor Sentenced to 30 Months in Prison for Role in Medicare and Private Insurance Fraud Scheme
WASHINGTON - A Brooklyn, N.Y., board-certified colorectal surgeon, who owned and operated a New York medical clinic, was sentenced today to serve 30 months in prison for his role in a fraud scheme that billed Medicare and more than 10 private insurance companies for surgeries and other complex medical procedures that were never performed, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division, Acting Assistant Director in Charge George Venizelos of the FBI's New York Field Office and Special Agent in Charge Thomas O'Donnell of the U.S. Department of Health and Human Services Office of Inspector General New York Regional Office.
December 7, 2012; U.S. Attorney; Southern District of Mississippi: Summit Oncologist, Madison Biller Sentenced for Health Care Fraud
JACKSON, MI-Dr. Meera Sachdeva, 50, of Summit, Brittany McCoskey, 26, of Monticello, and Monica Weeks, 40, of Madison, were sentenced in U.S. District Court today on charges that they defrauded Medicare by submitting false claims for chemotherapy services, announced U.S. Attorney Gregory K. Davis, FBI Special Agent in Charge Daniel McMullen, and Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.
December 7, 2012; U.S. Attorney; Eastern District of North Carolina: Ambulance Company Owner and Son Indicted In Health Care Fraud Conspiracy
GREENVILLE - United States Attorney Thomas G. Walker announced that today United States District Judge Malcolm J. Howard unsealed an Indictment against Phyllis Stallings Harrell and Paul Lynn Trueblood, both of Belvidere, North Carolina. The Indictment charges Harrell and Trueblood in 68 counts, including Conspiracy to Commit Health Care and Wire Fraud, in violation of Title 18, United States Code, Section 1349; Health Care Fraud, in violation of Title 18, United States Code, Section 1347; Wire Fraud, in violation of Title 18, United States Code, Section 1343; False Statements Relating to Health Care Matters, in violation of Title 18, United States Code, Section 1035; Conducting Transactions in Criminally Derived Property, in violation of Title 18, United States Code, Section 1957; and Making Material False Statements, in violation of Title 18, United States Code, Section 1001.
December 6, 2012; U.S. Attorney; Southern District of Florida: Hialeah Clinic Company Owner Convicted in Medicare Fraud Scheme
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of the Inspector General, Miami Division, announced that a federal jury found defendant Maggie Leon, 35 of Hialeah, Florida, guilty of eight counts of health care fraud, in violation of Title 18, United States Code, Section 1347, and conspiracy to commit the same, Title 18, United States Code, Section 1349. Sentencing has been scheduled for February 6, 2013 before U.S. States District Judge Paul Huck.
December 6, 2012; U.S. Department of Justice: Healthpoint Ltd. to Pay up to $48 Million for False Medicaid and Medicare Claims for Unapproved Prescription Drug
Healthpoint Ltd. and DFB Pharmaceuticals will pay up to $48 million to resolve allegations that Healthpoint caused false claims to be submitted to Medicare and Medicaid for an unapproved drug, Xenaderm, which was ineligible for reimbursement by those programs, the Justice Department announced today. Under the terms of the agreement, Healthpoint and DFB will pay $28 million, plus another $20 million if there is a change in ownership of Healthpoint or DFB over the next three years.
December 6, 2012; U.S. Department of Justice: Pharmacy Owner Pleads Guilty in Miami for Role in $23 Million Health Care Fraud Scheme
WASHINGTON - A co-owner and operator of three Miami discount pharmacies pleaded guilty today in connection with a $23 million health care fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Acting Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations Miami office.
December 6, 2012; U.S. Attorney; Southern District of Texas: Bryan Women Charged With Health Care Fraud
HOUSTON - Yolanda Nowlin, 41, and Carla Parnell, 49, both of Bryan, have been charged in a seven-count indictment alleging conspiracy to commit health care fraud, health care fraud, conspiracy to pay kickbacks and theft of government money, United States Attorney Kenneth Magidson announced today. Nowlin was the owner of Yellabone Medical Equipment Inc. in Bryan and Parnell was its office manager.
December 5, 2012; U.S. Attorney; District of Connecticut: Substance Abuse Counselor Indicted On Health Care Fraud and Identity Theft Offenses
David B. Fein, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford returned a 27-count indictment yesterday charging Alan Emmett Bradley, 57, of Norwalk, Conn. and Ocoee, Fla., with health care fraud and identity theft offenses.
December 5, 2012; U.S. Attorney; Northern District of West Virginia: Doctor Charged with Health Care Fraud, Tax Offenses, and Bankruptcy Fraud
Wheeling, West Virginia - A West Virginia doctor has been charged with twenty-three felonies related to the operation of his dermatology practice in Bridgeport.
December 3, 2012; U.S. Department of Justice: Brooklyn, N.Y., Clinic Employee Pleads Guilty in Connection with $71 Million Medicare Fraud Scheme
WASHINGTON - A Brooklyn, N.Y., resident pleaded guilty today for his role in a $71 million Medicare fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division, U.S. Attorney for the Eastern District of New York Loretta E. Lynch, Acting Assistant Director in Charge George Venizelos of the FBI's New York Field Office and Special Agent in Charge Thomas O'Donnell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).
December 3, 2012: Eastern District of Tennessee: The United States has filed a Complaint-in-Intervention under the False Claims Act against Life Care Centers of America.

November 2012

November 30, 2012; U.S. Attorney; Southern District of Florida: President of Miami Medical Clinic Sentenced on Health Care Fraud Charges
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announce yesterday's sentencing of defendant Arbilio Yanes on Medicare fraud and related offenses. U.S. District Judge Cecilia M. Altonaga sentenced Yanes to 151 months in prison.
November 30, 2012; U.S. Attorney; District of Maryland: Former NIH Employee Sentenced for Using Government Credit Cards for Personal Use
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Tamia M. McCoy, age 33, of Germantown, Maryland, today to six months in prison, followed by six months of home detention as part of three years of supervised release, and 100 hours of community service, for theft of government property and money, in connection with her use of government credit cards to make unauthorized purchases of goods and services for her personal use. McCoy was also ordered by pay restitution of $106,096.09.
November 29, 2012; U.S. Attorney; District of New Hampshire: Former Employee Of Exeter Hospital Indicted In Connection With Hepatitis C Outbreak
CONCORD, N.H. -David M. Kwiatkowski, 33, a former employee of Exeter Hospital, has been indicted for his alleged role in causing the Hepatitis C outbreak that infected patients in New Hampshire as well as other states, announced United States Attorney John P. Kacavas.
November 29, 2012; U.S. Attorney; District of Connecticut: Brookfield Podiatrist Charged with Medicare Fraud
David B. Fein, United States Attorney for the District of Connecticut, announced that SAMIR ZAKY, 37, of Brookfield, was arrested today on federal health care fraud charges.
November 29, 2012; U.S. Attorney; Eastern District of Pennsylvania: Death Charge Added To Indictment Against Pill Mill Doc
PHILADELPHIA - A third superseding indictment was unsealed today against Dr. Norman Werther, 73, of Horsham, adding nine new defendants and dozens more charges, most notably distribution of a controlled substance resulting in death, announced First Assistant United States Attorney Louis D. Lappen. It is the first such case in the Eastern District of Pennsylvania. Werther was originally indicted on August 10, 2011 with 51 co-defendants.
November 28, 2012; U.S. Department of Justice: Two Brooklyn Clinic Employees Plead Guilty in Connection with $71 Million Medicare Fraud Scheme
WASHINGTON-Two Brooklyn, New York residents pleaded guilty today for their roles in a $71 million Medicare fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney for the Eastern District of New York Loretta E. Lynch; Acting Assistant Director in Charge Mary E. Galligan of the FBI's New York Field Office; and Special Agent in Charge Thomas O'Donnell of the U.S. Department of Health and Human Services Office of Inspector General.
November 28, 2012; U.S. Department of Justice: Lauderdale County Doctor Pleads Guilty to Health Care and Wire Fraud
FLORENCE-A Lauderdale County physician pleaded guilty today in federal court to fraud totaling about $1 million in connection with billing a health insurer and Medicare for non-reimbursable cosmetic skin treatments, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein.
November 28, 2012; U.S. Attorney; Southern District of Texas: Palmview Siblings Sentenced for Health Care Fraud Conspiracy
McALLEN, Texas - Velma Alaniz, 31, and her brother Valente Alaniz, 27, both of Palmview, have been sentenced to federal prison for their roles in a scheme to defraud Medicare and Medicaid through fraudulent billings for power wheelchairs, incontinent supplies and other medical items, United States Attorney Kenneth Magidson announced today along with and Texas Attorney General Greg Abbott.
November 27, 2012; U.S. Department of Justice: Baylor University Medical Center to Pay More Than $900,000 for False Medicare Claims for Radiation Oncology Services
Baylor University Medical Center, Baylor Health Care System and HealthTexas Provider Network (collectively, Baylor) have agreed to pay the United States $907,355 to settle allegations that Baylor submitted false claims to Medicare, the Civilian Health and Medical Program of the Uniformed Services (TRICARE) and the Federal Employees Health Benefit Program (FEHBP) for various radiation oncology services, including intensity modulated radiation therapy, the Justice Department announced today.
November 26, 2012; U.S. Department of Justice: Los Angeles-Area Doctor Pleads Guilty to Conspiring to Defraud Medicare of Over $11 Million
WASHINGTON- A Los Angeles-area doctor pleaded guilty today to conspiring to defraud Medicare of over $11 million, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney André Birotte Jr. of the Central District of California; Glenn R. Ferry, Special Agent in Charge for the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General; Bill L. Lewis, Assistant Director in Charge of the FBI's Los Angeles Field Office; and Tony Sidley, Assistant Chief of the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse.
November 20, 2012; U.S. Attorney; District of South Dakota: Mission Woman Indicted on Health Care Fraud Charges
US Attorney Brendan V. Johnson announced that a Mission woman has been indicted by a federal grand jury for two counts of health care fraud and one charge of larceny.
November 20, 2012; U.S. Department of Justice: Group of Owned and Affiliated Florida Hospitals Agree to Pay U.S. $10.1 Million to Resolve False Claims Act Allegations
WASHINGTON-Morton Plant Mease Health Care Inc. and its affiliated hospitals (Morton Plant) have agreed to pay $10,169,114 to the federal government to resolve allegations that they violated the False Claims Act by submitting false claims for services rendered to Medicare patients, the Justice Department announced today. Morton Plant owns and operates, or is affiliated with, Morton Plant Hospital, St. Joseph's Hospital, Morton Plant North Bay Hospital, St. Anthony's Hospital, Mease Countryside Hospital, and Mease Dunedin Hospital. These hospitals are part of the BayCare Health System in Florida's Pinellas, Hillsborough, and Pasco counties.
November 20, 2012; U.S. Department of Justice: South Carolina-based Harmony Care Hospice Inc. and CEO/Owner Daniel J. Burton to Pay U.S. $1.286 Million to Resolve False Claims Act Allegations
Harmony Care Hospice Inc. (Harmony) and Harmony owner and chief executive officer Daniel J. Burton have agreed to pay the United States $1,286,999.32 to settle allegations that the South Carolina-based company submitted false claims to Medicare for patients under care at its hospice facilities, the Justice Department announced today.
November 20, 2012; U.S. Department of Justice: Two Plead Guilty in Miami for Roles in $63 Million Mental Health Care Fraud Scheme
WASHINGTON -A registered nurse pleaded guilty today and a former program coordinator pleaded guilty yesterday in connection with a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN), announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Acting Special Agent-in-Charge of the FBI's Miami Field Office; and Special Agent-in-Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations Miami office.
November 19, 2012; U.S. Department of Justice: Detroit-Area Nurse Sentenced to 30 Months in Prison for Role in $13.8 Million Home Health Care Fraud Scheme
WASHINGTON-A Detroit-area registered nurse was sentenced today to serve 30 months in prison for his role in a nearly $13.8 million Medicare fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Robert D. Foley III of the FBI's Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General Chicago Regional Office.
November 19, 2012; U.S. Attorney; District of Maryland: Coventry Health Care, Inc. Agrees To Pay $3 Million To The U.S. As Part Of A Non-Prosecution
Agreement
Baltimore, Maryland - Coventry Health Care, Inc. (Coventry) has agreed to pay the United States $3 million in return for the agreement by the United States Attorney's Office for the District of Maryland not to prosecute Coventry criminally for any crimes arising from the unauthorized access by its employees to a Medicare database.
November 16, 2012; U.S. Attorney; Northern District of New York: Utica, New York Physician Indicted In $12,000,000 Health Care Fraud Scheme
Richard S. Hartunian, United States Attorney, Northern District of New York, Thomas O'Donnell, Special Agent in Charge of the New York Field Division of the U.S. Department of Health and Human Services Office of Inspector General, and Clifford C. Holly, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation, announced today that a Binghamton, New York grand jury returned an indictment on November 14, 2012, charging Utica physician DILIP D. KACHARE, 58, with three counts of Health Care Fraud and sixteen counts of Mail Fraud. If found guilty, KACHARE faces a statutory maximum sentence of 10 years imprisonment and a fine of up to $250,000.00 on the Health Care Fraud counts, and a statutory maximum sentence of 20 years imprisonment and a fine of up to $250,000.00 on the Mail Fraud counts.
November 16, 2012; U.S. Department of Justice: Two Patient Recruiters Sentenced in Miami for Roles in $50 Million Medicare Fraud Scheme
WASHINGTON - Two former patient recruiters for Miami-based mental health clinic Biscayne Milieu Health Care Inc. were sentenced today for their participation in a Medicare fraud scheme involving the submission of more than $50 million in fraudulent billings to Medicare, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Acting Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations Miami Office.
November 16, 2012; U.S. Department of Justice: Program Director and Therapist from Miami-Area Mental Health Care Corporation Convicted for Participating in $205 Million Medicare Fraud Scheme
WASHINGTON - A federal jury yesterday convicted a Miami-area program director and a Miami-area therapist for their participation in a Medicare fraud scheme involving more than $205 million in fraudulent billings by mental health care corporation American Therapeutic Corporation (ATC), announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Acting Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations Miami Office.
November 15, 2012; U.S. Attorney; Western District of Tennessee: Mississippi Resident Pleads Guilty To Medicare Fraud Scheme Involving Power Mobility Devices
Memphis, TN - Tess Gurley Rouse, 41, of Corinth, Mississippi, pleaded guilty today to one count of defrauding Medicare of more than $368,000, announced United States Attorney Edward L. Stanton III. Using her company, Eagle Eye Durable Medical Equipment in Counce, Tennessee, Rouse falsified claims electronically for Power Mobility Devices for Medicare beneficiaries in West Tennessee, North Mississippi and elsewhere. Many of the recipients would not have qualified for these devices under the criteria established by Medicare.
November 15, 2012; U.S. Attorney; Northern District of Illinois: Chicago Psychiatrist Allegedly Submitted At Least 190,000 False Claims to Medicare and Medicaid; Lawsuit Alleges Kickbacks to Prescribe Antipsychotic Medication for Nursing Home Patients
CHICAGO - A Chicago psychiatrist received illegal kickbacks from pharmaceutical companies and submitted at least 140,000 false claims to Medicare and Medicaid for antipsychotic medications he prescribed for thousands of mentally ill patients in area nursing homes, according to a civil health care fraud lawsuit filed today by the United States. The defendant, Dr. Michael J. Reinstein, also submitted at least 50,000 claims to Medicare and Medicaid, falsely stating that he provided "pharmacologic management" for his patients at more than 30 area nursing homes and long-term care facilities, the lawsuit alleges.
November 14, 2012; U.S. Attorney; Southern District of Texas: DME Owner Convicted of Health Care Fraud and Aggravated Identity Theft
HOUSTON - Abdul Waheed Alex Shittu, 54, a naturalized United States citizen from the Federal Republic of Nigeria, has pleaded guilty today to one count of conspiracy to commit health care fraud and one count of aggravated identity theft, United States Attorney Kenneth Magidson announced today.
November 14, 2012; U.S. Attorney; District of Kansas: Indictment: Kidney Dialysis Patients Received Misbranded Drugs
TOPEKA, KAN. - A Tennessee pharmacist is charged with substituting a cheaper drug imported from China for the iron sucrose that the Federal Drug Administration has approved for kidney dialysis patients, U.S. Attorney Barry Grissom said today.
November 14, 2012; U.S. Attorney; District of Connecticut: Manchester Man Pleads Guilty To Federal Drug and Firearms Charges
David B. Fein, United States Attorney for the District of Connecticut, announced that Robert Gentile, 76, of Manchester, pleaded guilty today before United States District Judge Robert N. Chatigny in Hartford to multiple controlled substances and firearms offenses.
November 13, 2012; U.S. Attorney; Eastern District of Virginia: Mental Health Service Provider Sentenced to 48 Months for Conspiracy to Commit Health Care Fraud
RICHMOND, Va. - Joseph T. Hackett, 32, of Asheville, N.C., was sentenced today to 48 months in prison, followed by a term of three years of supervised release, for Conspiracy to Commit Health Care Fraud. He also agreed to forfeit $1,570,041.60 and pay $1,570,041.60 in restitution to the Virginia Department of Medical Assistance Services.
November 9, 2012; U.S. Attorney; Eastern District of Virginia: Owner of Chantilly Pain Clinic Sentenced to 180 Months for Drug-Trafficking, Fraud Charges
ALEXANDRIA, Va. - Paul Boccone, 56, was sentenced today to 180 months in prison, followed by three years of supervised release, for turning his Chantilly-based pain clinic into a haven for drug addicts, servicing thousands of customers traveling hundreds of miles to illegally obtain large amounts of oxycodone and other prescription pain medicine. Charles Brown, Jr., 52, the lead nurse practitioner at Chantilly Specialists, was also sentenced today to 60 months in prison, followed by three years of supervised release, for his role in distributing oxycodone.
November 8, 2012; U.S. Attorney; Northern District of Indiana: Indictments Returned in Hammond Federal Court
HAMMOND, IN-The United States Attorney's Office announced indictments were returned on November 8, 2012 for Hoosier EMS Roy Dunn, 59, and Kahley Vergon-Mayotte, 27, both of Winimac, Indiana; and Anthony Bitterling, 39, of Monticello, Indiana. They were charged with conspiracy to commit health care fraud. These charges were filed as the result of an investigation by the Federal Bureau of Investigation, the United States Department of Health and Human Services, and the Indiana Medicaid Fraud Control Unit.
November 6, 2012; U.S. Attorney; Eastern District of Michigan: Detroit-area Physician Sentenced to 60 Months for Health Care Fraud
Jonathan Agbebiyi, 63, of Sterling Heights, Michigan, was sentenced yesterday for his role in a $5.4 million Medicare fraud scheme, announced United States Attorney Barbara L. McQuade. McQuade was joined in the announcement by Assistant Attorney General Lanny A Breuer of the Criminal Division in Washington, DC, Special Agent-In-Charge, Robert Foley, III, Federal Bureau of Investigation and Special Agent in Charge Lamont Pugh III of the Health and Human Services - Office of Inspector General's Chicago Regional Office.
November 6, 2012; U.S. Attorney; Western District of Missouri: Former Jasper County Official Pleads Guilty To Document Fraud
Springfield, Mo. - David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that the former public administrator of Jasper County, Mo., pleaded guilty in federal court today to document fraud, which was part of a scheme in which she illegally obtained federal benefits for her wards.
November 5, 2012; U.S. Department of Justice: Missouri Hospital System Agrees to Pay $9.3 Million to Resolve False Claims Act and Stark
Law Violations
Freeman Health System, a healthcare provider and hospital system located in Joplin, Mo., has agreed to pay $9,316,139 to resolve allegations that it violated the Stark Law and the False Claims Act by knowingly providing incentive pay to physicians in a manner that violated federal law, the Justice Department announced today.
November 5, 2012; U.S. Department of Justice: Owner of Miami Assisted Living Facility Sentenced to 15 Months in Prison for Role in Medicare
Fraud Conspiracy
WASHINGTON - The owner of a Miami-Dade County assisted living facility (ALF) was sentenced today to 15 months in prison for her role in a kickback scheme that funneled ALF patients to fraudulent mental health providers American Therapeutic Corporation (ATC) and Health Care Solutions Network (HCSN), announced Assistant Attorney General Lanny A. Breuer of the Justice Department=s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Acting Special Agent in Charge of the FBI=s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.
November 5, 2012; U.S. Attorney; Western District of North Carolina: Two Women Sentenced To Prison for Health Care Fraud Conspiracy, Illegal Kickbacks and Forged Prescriptions for Controlled Substances
CHARLOTTE, N.C. - A Rowan County woman and her Mecklenburg County co-conspirator were sentenced to prison on Friday, November 2, 2012, in U.S. District Court for their role in a scheme to defraud Medicare and Medicaid and related offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
November 5, 2012; U.S. Attorney; Southern District of Texas: 7th Defendant Sentenced to Federal Prison in Multi-Million Dollar Health Care Fraud Case
HOUSTON - Tony Nnonso Obi, 56, a naturalized U.S. citizen from the Federal Republic of Nigeria, has been sentenced to 41 months in federal prison for his role in a massive health care fraud conspiracy that billed the Medicare and Medicaid programs for more than $45 million, United States Attorney Kenneth Magidson announced today.
November 2, 2012; U.S. Department of Justice: Orthofix Subsidiary, Blackstone Medical, Pays U.S. $30 Million to Settle False Claims Act Allegations
Orthofix International NV, has agreed to pay the United States $30 million to settle allegations that an Orthofix subsidiary, Blackstone Medical Inc., paid illegal kickbacks to physicians in order to induce use of the company's products, the Justice Department announced today. Orthofix, which manufactures spinal implants and other spinal surgery products, is a publicly traded company headquartered in Curacao.
November 2, 2012; U.S. Attorney; District of Columbia: Maryland Woman Sentenced to 75 Months in Prison for Defrauding D.C. Medicaid Program by Submitting Over $7 Million in Phony Claims
WASHINGTON - Jacqueline Wheeler, 55, the chief executive officer and owner of two health care companies, was sentenced today to six years and three months in prison for health care fraud and other federal offenses stemming from the submission of more than $7 million in fraudulent claims to the District of Columbia Medicaid program.
November 1, 2012; U.S. Attorney; Western District of North Carolina: Gastonia Woman Sentenced To 15 Months in Prison for Scheme to Defraud Medicaid
CHARLOTTE, N.C. - A Gaston County woman was sentenced on Wednesday, October 31, 2012, to serve 15 months in prison, to be followed by three years of supervised release for her role in a scheme to defraud North Carolina Medicaid, announced the U.S. Attorney's Office for the Western District of North Carolina.