Criminal and Civil Enforcement

January 2016

January 27, 2016; U.S. Attorney; Southern District of Texas

Area Ambulance Company Owner Sentenced in Health Care Fraud Scheme
McALLEN, Texas - The owner of Vic's Texas Transport, Inc. (dba Victory EMS) has been ordered to federal prison following his conviction of health care fraud and aggravated identity theft, announced U.S. Attorney Kenneth Magidson. Victor Lee Gonzalez, 28, of Mission, pleaded guilty Sept, 22, 2015.

January 27, 2016; U.S. Attorney; Southern District of Texas

Ambulance Company Owners Agree to Pay More Than $245,000 to Resolve Kickback Allegations
HOUSTON - The former owner and operator of Houston-area ambulance company National Care EMS has agreed to settle allegations that he and the company provided kickbacks to various nursing facilities and hospitals in exchange for rights to the institutions' more lucrative Medicare and Medicaid transport referrals, announced U.S. Attorney Kenneth Magidson along with Gregory Demske, Chief Counsel to the Inspector General of the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG) and Special Agent in Charge CJ Porter, of HHS-OIG, Office of Investigations - Dallas Regional Office.

January 26, 2016; U.S. Attorney; Eastern District of Pennsylvania

Health Care Agreement Announced Regarding Care Enhancements At Rehab Center
PHILADELPHIA - The Archdiocese of Philadelphia, Catholic Health Care Services has agreed to resolve allegations relating to resident care at St. Monica Center for Rehabilitation and Health Care and St. Monica Manor, announced United States Attorney Zane David Memeger. The Archdiocese of Philadelphia has agreed to improve, or has already improved, care in the following areas: physician orders; wound care and pressure ulcers; medication administration; documentation of care; and transfer and toileting of residents. Pursuant to the agreement, the Archdiocese has also agreed to pay $80,000 in addition to implementing the care enhancements. Although St. Monica Manor has been sold to Center Management Group ("CMG"), CMG has agreed to assume all duties in connection with the settlement agreement.

January 25, 2016; U.S. Attorney; Northern District of Illinois

Federal Jury Convicts Tinley Park Physician in Medicare Fraud Scheme
CHICAGO - A physician at Chicago-based Mobile Doctors was convicted on federal fraud charges today for falsely certifying patients as confined to their homes as part of a scheme to defraud Medicare.

January 22, 2016; U.S. Department of Justice

Owner and Manager of Three Miami-Area Home Health Agencies Convicted in $57 Million Health Care Fraud Scheme
The owner and manager of three Miami-area home health agencies was convicted late yesterday for his role in a health care fraud scheme that resulted in the submission of false and fraudulent claims to Medicare.

January 22, 2016; U.S. Attorney; District of New Hampshire

Seabrook Woman Sentenced To Home Confinement For Social Security, Food Stamp, And Medicaid Fraud
CONCORD, N.H. - Beverly Eaton, 57, of Seabrook, who pleaded guilty to one count of Social Security Fraud and four counts of Making False Statements on September 28, 2015, was sentenced today to three years of probation, including six months of home confinement, and was ordered to pay $51,189.70 in restitution to the Social Security Administration and $11,235.36 to the New Hampshire Department of Health and Human Services, announced United States Attorney Emily Gray Rice.

January 20, 2015; U.S. Attorney; District of Nevada

Family Members Convicted In Benefits Fraud Case
LAS VEGAS, Nev. - A brother and sister have been convicted by a federal jury of multiple felony counts for using false identities to steal almost $300,000 in unemployment funds and other federal benefits, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. Two other family members were also convicted of fraud for their part in the scheme to unlawfully obtain unemployment compensation funds.

January 20, 2016; U.S. Attorney; District of Vermont

Paul Hebert Pleads Guilty to Social Security and Medicaid Fraud
Paul Hebert, 50, of Gloucester, Massachusetts, formerly of Barre, Vermont, pleaded guilty today to charges of Social Security fraud and Medicaid fraud.

January 19, 2016; U.S. Attorney; District of New Jersey

Ocean County, New Jersey, Man Admits Bribing Doctor As Part Of Compounding Pharmacy Fraud Scheme
CAMDEN, N.J. - A Manchester, New Jersey, man today admitted paying tens of thousands of dollars in bribes to a sports medicine doctor on behalf of Prescriptions R Us, a compound pharmacy in Lakewood, New Jersey, U.S. Attorney Paul J. Fishman announced.

January 19, 2016; U.S. Attorney; Northern District of Texas

Registered Nurse Co-Owner of Ultimate Care Home Health Services, Inc. Sentenced to 10 Years in Federal Prison for Role in Healthcare Fraud Conspiracy
DALLAS - A 52-year-old registered nurse and home health company owner from Cedar Hill, Texas, was sentenced this morning in federal court in Dallas on a health care fraud conspiracy conviction, announced U.S. Attorney John Parker of the Northern District of Texas.

January 15, 2016; U.S. Department of Justice

California Hospital to Pay More Than $3.2 Million to Settle Allegations That It Violated the Physician Self-Referral Law
Tri-City Medical Center, a hospital located in Oceanside, California, has agreed to pay $3,278,464 to resolve allegations that it violated the Stark Law and the False Claims Act by maintaining financial arrangements with community-based physicians and physician groups that violated the Medicare program's prohibition on financial relationships between hospitals and referring physicians, the Justice Department announced today.

January 15, 2016; U.S. Attorney; Middle District of Pennsylvania

Tioga County Physician And One Other Plead Guilty To Health Care Fraud Charges
WILLIAMSPORT - The United States Attorney's Office for the Middle District of Pennsylvania announced today that Dr. John Terry, age 65, of Wellsboro and Stephen Heffner, Jr., age 46, of Elkland, pleaded guilty today before Chief United States District Court Judge Christopher C. Conner in Williamsport.

January 14, 2016; U.S. Department of Justice

Health Care Clinic Consultant and Medicare Biller Pleads Guilty in Miami for Role in $63 Million Health Care Fraud Scheme
A former health care clinic consultant and Medicare biller pleaded guilty today in connection with a $63 million health care fraud and money laundering scheme involving a defunct Miami-area health care provider.

January 12, 2016; U.S. Department of Justice

Nation's Largest Nursing Home Therapy Provider, Kindred/Rehabcare, to Pay $125 Million to Resolve False Claims Act Allegations
Contract therapy providers RehabCare Group Inc., RehabCare Group East Inc. and their parent, Kindred Healthcare Inc., have agreed to pay $125 million to resolve a government lawsuit alleging that they violated the False Claims Act by knowingly causing skilled nursing facilities (SNFs) to submit false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary and skilled, or that never occurred, the Department of Justice announced today.

Corporate Integrity Agreement: RehabCare Group, Inc.; Kindred Healthcare, Inc.

January 12, 2016; U.S. Attorney; District of Connecticut

Connecticut Medical Equipment Company Pays $600,000 to Settle False Claims Act Allegations
United States Attorney Deirdre M. Daly and Connecticut Attorney General George Jepsen today announced that J&L; MEDICAL SERVICES, LLC ("J&L; MEDICAL") has entered into a civil settlement agreement with the federal and state governments in which it will pay $600,000 to resolve allegations that it violated the federal and state False Claims Acts.

January 12, 2016; U.S. Attorney; Western District of Michigan

Physician Assistant, Kyle D. Gandy, Sentenced To Fourteen Months In Prison For Accepting Illegal Kickbacks
GRAND RAPIDS, MICHIGAN - U.S. Attorney Patrick Miles announced today that Kyle D. Gandy, age 37, a physician assistant who formerly resided in Mt. Pleasant, Michigan, was sentenced to 14 months in prison and two years of supervised release for accepting $1,000.00 in illegal kickbacks for referring patients to medical clinics, physical therapy clinics, and a home health care agency. Gandy is the tenth person, and the fourth physician assistant, convicted of felony charges in connection with a joint federal-state investigation into a kickback scheme initiated by Babubhai Rathod. As part of this felony conviction, Gandy was ordered to pay $18,030.17 in restitution, representing the amount of the referred services paid by Medicare and Medicaid. Gandy will be excluded from participating with the Medicare and Medicaid programs for at least five years.

January 12, 2016; U.S. Attorney; Western District of Tennessee

Local Dermatologist, Cordova-based Medical Practice to Pay $450,000 for Overbilling Medicare
Memphis, TN - A doctor and his Cordova-based medical practice will pay $450,000 to the government to resolve allegations that it billed Medicare for unnecessary dermatological surgical procedures and office visits. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the settlement today.

January 12, 2016; U.S. Attorney; Southern District of Ohio

Ambulance Company Owner Pleads Guilty to Health Care Fraud
CINCINNATI - Terry Johnson, 42, of Hamilton Ohio, pleaded guilty in U.S. District Court to one count of health care fraud and one count of money laundering.

January 11, 2016; U.S. Attorney; Southern District of New York

Doctor And Owner Of Bronx Clinics Involved In Illegal Distribution Of More Than Five Million Oxycodone Pills Is Sentenced To 12 Years In Prison
Preet Bharara, the United States Attorney for the Southern District of New York, announced the conviction of KEVIN LOWE, the owner of "Astramed," a purported medical clinic with multiple locations in the Bronx, New York, and from which more than five million tablets of the prescription painkiller oxycodone were unlawfully distributed over a three-year period. On May 4, 2015, LOWE was convicted of a conspiracy to distribute narcotics following a two-week jury trial presided over by U.S. District Judge Lorna G. Schofield. Today, Judge Schofield sentenced LOWE to a term of 144 months in prison.

January 8, 2016; U.S. Department of Justice

Former Owner of Bostwick Laboratories Agrees to Pay Up to $3.75 Million to Resolve Allegations of Unnecessary Testing and Illegal Remuneration to Physicians
Dr. David G. Bostwick has agreed to pay the United States up to $3.75 million to resolve alleged violations of the False Claims Act for billing Medicare and Medicaid for medically unnecessary cancer detection tests and offering incentives to physicians to obtain Medicare and Medicaid business, the Department of Justice announced today. Dr. Bostwick was the founder, owner and chief executive officer of Bostwick Laboratories Inc. from 1999 to 2011. Bostwick Laboratories is a pathology laboratory headquartered in Glen Allen, Virginia.

January 8, 2016; U.S. Department of Justice

President of Miami-Based Transportation Company Convicted in $70 Million Health Care Fraud Scheme
The president of a Miami-based transportation company was convicted today for his role in a health care fraud scheme involving three mental health centers based in Miami that resulted in the submission of approximately $70 million in false and fraudulent claims to Medicare.

January 8, 2016; U.S. Attorney; Southern District of Florida

Four Miami-Dade Residents Indicted for Participation in Fraud Schemes
Four Miami-Dade residents have been indicted for their participation in various schemes to defraud the United States government.

January 7, 2016; U.S. Attorney; Northern District of Illinois

West Suburban Doctor Sentenced to Two Years in Federal Prison for Falsely Approving Unnecessary Treatment
CHICAGO - A west suburban physician was sentenced today to two years in prison for fraudulently certifying patients as confined to the home, allowing healthcare agencies to bill Medicare for millions of dollars in unnecessary in-home treatment.

January 7, 2016; U.S. Attorney; Southern District of West Virginia

Beckley physician pleads guilty to Federal drug crime and health care fraud
BECKLEY, W.Va. - Acting United States Attorney Carol Casto announced today that Jose Jorge Abbud Gordinho, M.D., of Beckley, pleaded guilty in federal court to illegally prescribing the pain medication hydrocodone. Dr. Gordinho also pleaded guilty to defrauding Medicare and Medicaid by submitting materially false claims for medical services that were not medically necessary.

January 6, 2016; U.S. Attorney; Central District of California

Doctor Who Pre-Signed Thousands of Prescriptions in $20 Million Health Care Fraud Scheme Sentenced to Nine Years in Prison
LOS ANGELES - The medical doctor at the center of a conspiracy linked to a sham medical clinic in Glendale was sentenced today to nine years in federal prison for his role in a $20 million scheme to defraud the Medicare and Medi-Cal programs.

January 6, 2016; U.S. Attorney; Middle District of Pennsylvania

United States Reaches Agreement With Former York County Chiropractor In Civil False Claims Act Suit
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that it has entered into a Consent Decree with former chiropractor Kurt Bauer, age 62, of York, PA, to resolve a suit the United States filed alleging that Bauer remained involved in the management of a Medicare provider’s business despite his exclusion by the U.S. Department of Health and Human Services, in violation of the False Claims Act.

January 5, 2016; U.S. Attorney; District of Maryland

Two Defendants Sentenced to Prison in Conspiracy to Distribute Over $6.6 Million In Contraband Cigarettes
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Nikolay Zakharyan, age 24, of Owings Mills, Maryland, and Zarakh Yelizarov, age 53, of Pikesville, Maryland, today to a year and a day in prison, and 18 months in prison, respectively, each followed by three years of supervised release, for conspiracy to receive, possess, sell and distribute over $6.6 million in contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid. Judge Quarles entered an order requiring Yelizarov to pay restitution of $2.5 million to New York City and the state of New York and to forfeit $56,000, proceeds of the offense. Judge Quarles also entered an order requiring Nikolay Zakharyan to pay restitution of $9,659,880.

January 5, 2016; U.S. Attorney; District of Idaho

Leader of Boise Oxycodone and Heroin Organization Sentenced to Ten Years in Federal Prison
BOISE - Austin Serb, 22, of Boise, Idaho, was sentenced today to 120 months in federal prison for distributing tens of thousands of oxycodone pills and heroin in a large scale drug trafficking conspiracy. Senior U.S. District Judge Edward J. Lodge also ordered Serb to serve three years of supervised release, 200 hours of community service, and to forfeit $1,000,000 in drug proceeds. At his sentencing hearing, Judge Lodge determined that Serb was a manager and supervisor of an extensive criminal organization. Serb pleaded guilty on February 13, 2015, and admitted that he conspired to distribute oxycodone and heroin from September 1, 2012, to March 10, 2014.

January 5, 2016; U.S. Attorney; Middle District of Tennessee

Nashville Pharmacy Services Settles False Claims Act Lawsuit
Nashville Pharmacy Services, LLC, and its majority owner Kevin Hartman have agreed to pay up to $7.8 million to settle allegations that they overbilled Medicare and TennCare for pharmacy services, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Nashville Pharmacy Services' primary location is at 100 Oaks in Nashville, Tenn. and it specializes in dispensing HIV and AIDS-related medications.

January 5, 2016; U.S. Attorney; Middle District of Pennsylvania

Health Care Fraud Charges And Plea Agreements Filed Against Tioga County Physician And Two Others
SCRANTON - The United States Attorney's Office for the Middle District of Pennsylvania announced today that a criminal information has been filed in U.S. District Court in Scranton against Dr. John Terry, age 65, of Wellsboro, in connection with fraudulent prescriptions he wrote for Oxycodone, a Schedule II controlled substance.

January 4, 2016; U.S. Department of Justice

Owner of Three Los Angeles Clinics Sentenced to 78 Months in Prison for Medicare Fraud
The former owner and operator of three medical clinics located in Los Angeles was sentenced today to 78 months in prison for his role in a scheme that submitted more than $4.5 million in fraudulent claims to Medicare.

December 2015

December 23, 2015; U.S. Attorney; Southern District of Georgia: Government Settles Alleged False Claims Act Violations With Memorial Health, Inc.
SAVANNAH, GA: Memorial Health, Inc., Memorial Health University Medical Center, Inc., Provident Health Services, Inc., and MPPG, Inc. d/b/a Memorial Health University Physicians have agreed to pay $9,895,043.04 to resolve allegations that they violated the False Claims Act by submitting claims to the Government in violation of the Stark Law. The settlement is the largest civil health care fraud recovery in the history of the United States Attorney's Office for the Southern District of Georgia.
December 23, 2015; U.S. Attorney; Eastern District of Pennsylvania: United States Settles With Aria Health Systems Over Unnecessary Invasive Procedures And Improper Compensation Claims
PHILADELPHIA - The United States and Aria Health Systems, Inc. ("Aria") today settled two False Claims Act matters which Aria self-disclosed, announced United States Attorney Zane David Memeger. Aria agreed to pay $564,700 to resolve claims that a cardiologist performed unnecessary invasive procedures on inpatients and outpatients at their Torresdale Campus between October 1, 2012 and April 15, 2013. Aria also agreed to pay $2.5 million to resolve alleged violations of the False Claims Act regarding compensation to physicians that were in excess of fair market value.
December 23, 2015; U.S. Attorney; Eastern District of Virginia: Arlington Nursing Home Agrees Pay $600,000 to Settle False Claim Act Violations
ALEXANDRIA, Va. - Genesis HealthCare LLC, whose headquarters is located in Kennett Square, Pennsylvania, has agreed to pay $600,000 to resolve allegations that it submitted false claims to the federal government in connection with its operation of a skilled nursing facility known as the Potomac Center, located Arlington.
December 22, 2015; U.S. Attorney; District of Massachusetts: Coloplast Corp. and Liberator Medical Agree to Pay $3.6 Million to Resolve Kickback Allegations
BOSTON - The U.S. Attorney's Office announced today that Coloplast Corp., a manufacturer of ostomy and continence care products, and Liberator Medical Supply, Inc., a medical products supplier, have agreed to pay $3,160,000 and $500,000, respectively, to resolve allegations that Coloplast paid unlawful kickbacks to several medical suppliers, including Liberator, to induce them to conduct promotional campaigns designed to refer individual users to Coloplast products.
December 22, 2015; Department of Justice: Dallas-Based Home Health Company Owners and Nurses Charged for Roles in $13.4 Million Medicare Fraud Scheme
The co-owners of a home health company in Dallas and two nurse employees were charged in an indictment unsealed yesterday for their alleged participation in a $13.4 million health care fraud scheme involving fraudulent claims for home health services.Iowa Hospice to Pay More than $1 Million to Resolve False Claims Act Allegations
December 22, 2015; U.S. Attorney; District of Massachusetts: Clinical Director of Home Care Agency Sentenced in Medicare Fraud Scheme
BOSTON - The clinical director of a home nursing agency was sentenced yesterday in U.S. District Court in Boston in connection with her role in a multi-million dollar scheme to defraud Medicare.Splint Supplier and Its President to Pay over $10 Million to Resolve False Claims Act Allegations
December 22, 2015; U.S. Attorney; District of New Jersey: New York Health Care Professional Sentenced To Prison; Another Pleads Guilty In Connection With Test-Referral Scheme With New Jersey Clinical
NEWARK, N.J. - A physician's assistant was sentenced to prison, and a doctor admitted taking bribes in connection with a long-running and elaborate test referral scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced today.
December 21, 2015; U.S. Attorney; Eastern District of Texas: Texas Nurse Convicted of Health Care Fraud
PLANO, Texas - A Denton County, Texas, nurse has been convicted of 9 counts of health care fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
December 18, 2015; U.S. Attorney; Northern District of Iowa: Iowa Hospice to Pay More than $1 Million to Resolve False Claims Act Allegations
Iowa Hospice, LLC, has agreed to pay $1,088,244.02 to resolve civil allegations that it violated the federal False Claims Act by submitting false bills to Medicare for hospice services.
December 18, 2015; U.S. Attorney; Eastern District of Louisiana: Splint Supplier and Its President to Pay over $10 Million to Resolve False Claims Act Allegations
Maryland-based splint supplier Dynasplint Systems Inc., and its founder and president, George Hepburn, have agreed to pay approximately $10.3 million to resolve allegations that they violated the False Claims Act by improperly billing Medicare for splints provided to patients in skilled nursing facilities, the Department of Justice announced today.
December 18, 2015; U.S. Attorney; Western District of New York: 32 Hospitals To Pay U.S. More Than $28 Million To Resolve False Claims Act Allegations Related To Kyphoplasty Billing
BUFFALO - Thirty-two hospitals located throughout 15 states have agreed to pay the United States a total of more than $28 million to settle allegations that the health care facilities submitted false claims to Medicare for minimally-invasive kyphoplasty procedures, the Justice Department announced today. The Justice Department has now reached settlements with more than 130 hospitals totaling approximately $105 million to resolve allegations that they mischarged Medicare for kyphoplasty procedures.
December 18, 2015; U.S. Attorney; Northern District of Ohio: Westlake cardiologist sentenced to 20 years in prison for overbilling Medicare and others by $5.7 million for unnecessary procedures
A Westlake cardiologist was sentenced to 20 years in prison for performing unnecessary catheterizations, tests, stent insertions and causing unnecessary coronary artery bypass surgeries as part of a scheme to overbill Medicare and other insurers, law enforcement officials said.
December 18, 2015; U.S. Attorney; Southern District of Texas: Mother and Daughter Sentenced for Defrauding the United States in Health Care Scheme
HOUSTON - Two Houston area women have been sentenced following their convictions related to a scheme in which Medicare and Medicaid were billed for ambulance services that were not provided, announced U.S. Attorney Kenneth Magidson. Erika Moscarro, 37, of Houston, and Maria Vasquez, 59, of Cypress, pleaded guilty on Sept. 22, 2014, and Jan. 22, 2015, respectively.
December 17, 2015; U.S. Attorney; Northern District of Texas: San Angelo, Texas, Psychiatrist Sentenced to Serve 71 Months in Federal Prison on Health Care Fraud Conviction
AMARILLO, Texas - A licensed psychiatrist from San Angelo, Texas, Robert Hadley Gross, 58, was sentenced yesterday by U.S. District Judge Mary Lou Robinson to 71 months in federal prison, fined $100,000 and ordered to pay $1,832,869 in restitution, announced U.S. Attorney John Parker of the Northern District of Texas.
December 16, 2015; U.S. Department of Justice: Home Health Care Agency Owner Sentenced to 80 Months for Directing Detroit-Area Medicare Fraud Scheme
The owner and operator of a Detroit-area home health care agency who directed a $7 million health care fraud scheme was sentenced today to 80 months in prison.
December 16, 2015; U.S. Department of Justice: New Orleans Doctors and Registered Nurse Sentenced for Roles in $50 Million Fraud Scheme
Two doctors and a registered nurse were sentenced to prison today for their roles at the center of a $50 million health care fraud scheme in New Orleans.
December 16, 2015; U.S. Attorney; Southern District of Illinois: Southern Illinois Man Sentenced On Healthcare Fraud-Related Charge
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today, that on December 15, 2015, Terry L. Waeltermann, Jr., 30, of Mulberry Grove and Pocahontas in Bond County, and Vandalia in Fayette County, Illinois, was sentenced in the U.S. District Court in Benton on the charge that he engaged in a scheme to steal from a health care program. The district court sentenced Waeltermann to two years of probation with the first four months to be served in home confinement. He is also ordered to pay $6,660.75 in restitution to the Home Services Program.
December 16, 2015; U.S. Attorney; Southern District of New York: Manhattan U.S. Attorney Announces $39 Million Civil Fraud Settlement Against Qualitest Pharmaceuticals For Selling Half-Strength Fluoride Supplements
Preet Bharara, the United States Attorney for the Southern District of New York, Scott J. Lampert, Special Agent in Charge of the New York Regional Office for the Office of Inspector General for the Department of Health and Human Services ("HHS-OIG"), and Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation ("FBI"), and Patrick E. McFarland, the Inspector General for the U.S. Office of Personnel Management ("OPM") announced a $39 million settlement against Vintage Pharmaceuticals, LLC, d/b/a QUALITEST PHARMACEUTICALS; Vintage'S corporate parent Endo Pharmaceuticals, Inc.; and seven of their corporate subsidiaries or affiliates (collectively, "QUALITEST") in a civil fraud lawsuit. This global settlement resolves federal claims under the False Claims Act, 31 U.S.C. § 3729 et seq., that allege QUALITEST sold chewable fluoride tablets that contained less than half the amount of fluoride ion indicated on the drug label and caused federal healthcare programs to be fraudulently billed for these tablets, and also will resolve numerous state law civil fraud claims.
December 15, 2015; U.S. Attorney; Southern District of New York: Staten Island Physician's Assistant Sentenced In Manhattan Federal Court To 11 Years In Prison For Massive Oxycodone Distribution Conspiracy
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that LEONARD MARCHETTA, a physician's assistant, was sentenced in Manhattan federal court to 11 years in prison for conspiring to distribute large quantities of oxycodone out of his Staten Island-based medical clinic. MARCHETTA was charged in September 2014 and pled guilty in January 2015 before U.S. District Judge P. Kevin Castel, who also imposed today's sentence.
December 15, 2015; U.S. Attorney; Western District of North Carolina: Owner Of Medical Billing Company Indicted On Health Care Fraud And Aggravated Identity Theft Charges For Stealing Millions From Medicaid
CHARLOTTE, N.C. - A Charlotte grand jury has indicted Jason Adam Townsend, 39, of Raeford, N.C., on health care fraud and aggravated identity theft charges, in connection with a scheme that defrauded Medicaid of millions of dollars, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. The 10-count indictment was unsealed today, following Townsend's appearance in court.
December 11, 2015; U.S. Attorney; Northern District of Illinois: Owner of Harwood Heights Home Health Care Company Indicted in Medicare Fraud and Kickback Scheme
CHICAGO - The owner of a Harwood Heights home health care company paid kickbacks to marketers in exchange for referring elderly patients to the company for unnecessary treatment funded by Medicare, according to a 17-count federal indictment announced today.
December 10, 2015; U.S. Attorney; Southern District of Florida: Miami Resident Sentenced to 108 Months in Prison for Defrauding Medicare Part D
A Miami resident was sentenced by U.S. District Judge Donald M. Middlebrooks to 108 months in prison, to be followed by three years of supervised release and was ordered to pay $20,988,632 in restitution.
December 9, 2015; U.S. Attorney; Southern District of Illinois: Marion Man Pleads Guilty To Healthcare Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today, that Terry L. Stinnett, 68, of Marion, Illinois, pled guilty in federal court on December 8, 2015, to charges that he engaged in a scheme to steal from a health care program. Sentencing has been set for March 15, 2016. Stinnett will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
December 8, 2015; U.S. Attorney; Southern District of New York: Owner Of Utah-Based Pharmaceutical Wholesale Distributor Charged In Hundred-Million-Dollar Fraud Scheme
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation ("FBI"), and William J. Bratton, the Commissioner of the New York City Police Department ("NYPD"), announced today the unsealing of an indictment charging RANDY CROWELL, a/k/a "Roger," with fraudulently distributing, through his Utah-based wholesale distribution company, more than $100 million worth of prescription drugs obtained through a nationwide black market - drugs that were then dispensed by pharmacies to unsuspecting customers. This scheme was not only profitable for CROWELL, but also dangerous to the thousands of patients who ultimately took these black market medications not knowing that they had been previously prescribed to others and then resold and trafficked, often in unsafe conditions. CROWELL was arrested at his home in Henderson, Nevada, and will be presented before U.S. Magistrate Judge Cam Ferenbach this afternoon in the U.S. District Court for the District of Nevada.
December 7, 2015; U.S. Department of Justice: Southern California Ambulance Company Owner, Operator and Managers Sentenced to Prison for Medicare Fraud Scheme
The former owner, operator and managers of a Southern California ambulance company were sentenced to prison for their role in a fraud scheme that resulted in more than $1.5 million in fraudulent claims to Medicare.
December 4, 2015; U.S. Attorney; Northern District of Mississippi: Cleveland Woman Sentenced for Hospice Fraud
OXFORD, Miss. - Felicia C. Adams, United States Attorney for the Northern District of Mississippi; Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General; Donald Alway, Special Agent in Charge at the Federal Bureau of Investigation, and Mississippi Attorney General Jim Hood announced that: Sandra Livingston, 64, of Cleveland, Mississippi, was sentenced on December 3, 2015 by United States District Judge Sharion Aycock in Aberdeen, Mississippi to thirty-six (36) months imprisonment to be followed by three (3) years of supervised release.
December 1, 2015; U.s. Attorney; District of Wisconsin: Osceola Laboratory Agrees to Pay $8.5 Million to Resolve False Billing Case
MADISON, WIS. -- John W. Vaudreuil, United States Attorney for the Western District of Wisconsin, announced that Pharmasan Labs, Inc. and NeuroScience, Inc., and Gottfried Kellermann, 74, and Mieke Kellermann, 68, both of Osceola, Wis., have agreed to pay $8.5 million to the United States to resolve False Claims Act allegations.

November 2015

November 30, 2015; U.S. Attorney; Southern District of Texas: Skilled Nursing Facility Company Agrees to Pay More Than $3 Million to Resolve Kickback Allegations
HOUSTON - Regent Management Services L.P. has agreed to pay approximately $3.199 million to settle allegations that it received kickbacks from various ambulance companies in exchange for rights to Regent's more lucrative Medicare and Medicaid transport referrals, announced U.S. Attorney Kenneth Magidson and Gregory Demske, Chief Counsel to the Inspector General of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) and Special Agent in Charge CJ Porter, of HHS-OIG, Office of Investigations, Dallas Regional Office.
November 30, 2015; U.S. Attorney; District of South Carolina: Piedmont Pathology Associates, Inc., and Piedmont Pathology, P.C. Settle False Claims Act Cases for $500,000
COLUMBIA, South Carolina ---- United States Attorney for the District of South Carolina Bill Nettles announced today that Piedmont Pathology Associates, Inc. and Piedmont Pathology, P.C., a diagnostic anatomic pathology group located in Hickory, North Carolina, has agreed to pay the United States $500,000 to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians.
November 25, 2015; U.S. Attorney; Southern District of Illinois: East Saint Louis Woman Sentenced On Healthcare Fraud-Related Charge
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today, that Alfreda E. Perkins, 54, of East Saint Louis, Illinois, pled guilty in federal court to charges that she engaged in a scheme to steal from a health care program. Sentencing has been set for March 22, 2016. Perkins will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
November 20, 2015; U.S. Attorney; Southern District of New York: Manhattan U.S. Attorney Announces $370 Million Civil Fraud Settlement Against Novartis Pharmaceuticals For Kickback Scheme Involving High-Priced Prescription Drugs, Along With $20 Million Forfeiture Of Proceeds From The Scheme
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation ("FBI"), Gregory E. Demske, Chief Counsel to the Inspector General of the U.S. Department of Health and Human Services ("HHS-OIG"), and Scott J. Lampert, Special Agent in Charge of HHS-OIG's New York Regional Office, announced a $390 million settlement against NOVARTIS Pharmaceuticals Corp. ("NOVARTIS") in a civil fraud lawsuit based on claims that NOVARTIS gave kickbacks to specialty pharmacies in return for recommending two of its drugs, Exjade and Myfortic. The settlement resolves claims under the federal False Claims Act, 31 U.S.C. § 3729 et seq., and numerous state false claims act claims. The settlement also provides for resolution of claims against NOVARTIS under the federal civil forfeiture statute, 18 U.S.C. § 981 et seq. This is the third settlement in this lawsuit - in January 2014 and April 2015, two specialty pharmacies, Bioscrip, Inc. ("Bioscrip") and Accredo Health Group ("Accredo"), agreed to pay a total of $75 million to resolve federal and state claims against them based on the same allegations. Together with today's settlement, the federal and state governments will recover $465 million in total based on the kickback allegations in this lawsuit.
November 20, 2015; U.S. Department of Justice: Owner of Houston Durable Medical Equipment Health Care Companies Sentenced for $3.4 Million Medicare Fraud Scheme
A Texas man was sentenced today to 63 months for his role in a $3.4 million scheme to defraud Medicare, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department's Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge CJ Porter of the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG) Dallas Region, Special Agent in Charge Perrye K. Turner of the FBI's Houston Field Office and the Texas Attorney General's Medicaid Fraud Control Unit (MFCU).
November 20, 2015; U.S. Attorney; Southern District of Texas: McAllen Area Doctor and Assistant Plead Guilty in Health Care Fraud and Illegal Kickback Scheme
McALLEN, Texas ? A McAllen area doctor has been convicted of health care fraud and aggravated identity theft, announced U.S. Attorney Kenneth Magidson. Dr. Eduardo Carrillo, 42, of Edinburg, entered his guilty plea today before U.S. District Judge Randy Crane. Also convicted today was his assistant - Martha Uribe Medrano, 48, of Edinburg.
November 20, 2015; U.S. Attorney; Middle District of Tennessee: Three Indicted In Medical Equipment Kickback Scheme
Pamela Gardner 53, and Torvis Gardner, 44, both of Springfield, Tennessee, and Dr. Donald Boatright, 70, of Nashville, Tenn., were indicted on November 18, 2015, by a federal grand jury on federal health care fraud charges, announced David Rivera, United States Attorney for the Middle District of Tennessee. The indictment charges the defendants with soliciting and receiving kickbacks, and conspiring to solicit and receive kickbacks, in exchange for making referrals for the purchase of medical equipment.
November 20, 2015; U.S. Attorney; District of Rhode Island: Former Business Executive Indicted for Failing to Pay More than $250,000 in Child Support Obligations
PROVIDENCE, R.I. - A federal grand jury in Providence returned a two-count indictment on Thursday charging Christopher Carroll, 47, formerly of Jamestown, R.I., with allegedly travelling in interstate and outside the country to evade paying more than $250,000 in child support payments for his three minor children, age 9, 11 and 14, announced United States Attorney Peter F. Neronha and Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General.
November 19, 2015; U.S. Department of Justice: Physician Sentenced to 72 Months in Prison for Role in Detroit-Area Medicare Fraud Scheme
A Detroit-area physician who led and directed a multimillion-dollar Medicare fraud scheme through his medical practice was sentenced today to 72 months in prison.
November 19, 2015; U.S. Attorney; Middle District of Florida: United States Settles False Claims Act Allegations Against Hospice Of Citrus County For More Than $3 Million
Jacksonville, Florida B U.S. Attorney A. Lee Bentley, III announces that the United States has settled allegations that a hospice company located in Lecanto, Florida knowingly billed the government for medically unnecessary and undocumented hospice services. The allegations resolved included liability under the False Claims Act.
November 18, 2015; U.S. Department of Justice: New Orleans Office Manager Sentenced for Role in $50 Million Fraud Scheme
The office manager of a home health company at the center of a $50 million fraud scheme in New Orleans was sentenced to prison today for participating in the scheme.
November 18, 2015; U.S. Attorney; District of New Jersey: U.S. Attorney's Office Files Civil Lawsuit Against New Jersey Couple And Two Diagnostic Companies For Falsifying Diagnostic Test Reports And Failing To Properly Supervise Tests
NEWARK, N.J. - U.S. Attorney Paul J. Fishman announced today that the government has intervened in a False Claims Act lawsuit and filed a complaint against a Morris County, New Jersey, couple and their diagnostic imaging companies for knowingly submitting false claims to Medicare for thousands of falsified diagnostic test reports and the underlying tests.
November 18, 2015; U.S. Attorney; District of New Jersey: New York Doctor Sentenced To More Than Three And A Half Years In Prison For Taking Bribes In Test-Referral Scheme With New Jersey Clinical Lab
NEWARK, N.J. - A doctor with a practice in Rockville Centre, New York, was sentenced today to 46 months in prison for accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
November 18, 2015; U.S. Attorney; District of Pennsylvania: Philadelphia Area Former Doctor Charged With Conspiring To Defraud The FDA And Health Care Fraud
William J. O'Brien III, 50, of Philadelphia, Pennsylvania was charged in an indictment unsealed today with conspiring to defraud the Food and Drug Administration ('FDA") and a separate conspiracy to commit health care fraud, announced United States Attorney Zane David Memeger. O'Brien, a former doctor of osteopathic medicine, was previously charged in July 2015 with operating a "pill mill" from his medical offices. The defendant awaits trial on those earlier charges.
November 18, 2015; U.S. Attorney; Eastern District of Wisconsin: Deaconess Home Health, Inc. and Owner Agree to Criminal and Civil Resolution of Health Care Fraud Charges
The Acting United States Attorney for the Eastern District of Wisconsin, Gregory Haanstad, announced today that the United States has filed a criminal information charging Deaconess Home Health, Inc. and its owner, Lazarus Bonilla, with committing health care fraud against the Wisconsin Medicaid Program. Deaconess has agreed to plead guilty to the crime under a plea agreement filed with the information. Bonilla and the United States have entered into a deferred prosecution agreement. The United States also reached a civil settlement agreement with Deaconess and Bonilla for $3,724,000 pursuant to the federal False Claims Act.
November 18, 2015; U.S. Attorney; Eastern District of Wisconsin: Atlas Healthcare, Inc. and Owners Agree to Civil Resolution of Health Care Fraud Charges
The Acting United States Attorney for the Eastern District of Wisconsin, Gregory Haanstad, announced today that the United States has reached a civil settlement agreement with Atlas Healthcare, Inc., and its owners, Deana Bajanen and Sheena Jones, for $435,000 pursuant to the federal False Claims Act. Atlas is located in Hales Corners, Wisconsin. Atlas is alleged to have knowingly submitted false claims for personal care worker services to the Wisconsin Medicaid Program for patients that did not need the services or did not need the level of services for which Atlas billed the Medicaid program.
November 17, 2015; U.S. Attorney; District of New Jersey: Morris County, New Jersey, Couple Admit Falsifying Thousands Of Medical Diagnostic Reports As Part Of $4.3 Million Health Care Fraud Scheme
NEWARK, N.J. - A Rockaway, New Jersey, husband and wife who owned a mobile diagnostic testing company today admitted receiving more than $4.3 million from Medicare and private insurance companies for diagnostic testing and reports that were never interpreted by a licensed physician, U.S. Attorney Paul J. Fishman announced.
November 16, 2015; U.S. Attorney; District of Columbia: Owners of Home Health Care Agency Found Guilty Of Taking Part in $80 Million Medicaid Fraud
WASHINGTON -Florence Bikundi, and her husband, Michael Bikundi, the owners of Global Healthcare, Inc., a home care agency, have been found guilty by a jury of health care fraud, money laundering, and other charges stemming from a scheme in which they and others defrauded the District of Columbia Medicaid program of over $80 million.
November 16, 2015; U.S. Attorney; Eastern District of Michigan: Warren Doctor Sentenced For Unlawful Oxycodone Prescriptions and Health Care Fraud
A physician who practiced in Warren, Michigan, was sentenced to 84 months in prison today for writing prescriptions for oxycodone and other controlled medications without medical justification, and for health care fraud, announced U.S. Attorney Barbara L. McQuade.
November 16, 2015; U.S. Attorney; District of South Carolina: HCA Settles Allegations of Billing for Unnecessary Lab Tests and Double Billing for Fetal Testing for $2,000,000
COLUMBIA, South Carolina ---- United States Attorney Bill Nettles announced today that the United States Attorney's Office for the District of South Carolina with the State of Florida, settled claims of health care fraud with HCA Holdings, Inc. f/d/b/a HCA, Inc. f/d/b/a HCA - Hospital Corporation of America f/d/b/a Hospital Corporation of America and Parallon Business Solutions, LLC, West Florida Regional Medical Center, Inc. d/b/a West Florida Hospital; HCA Health Services of Florida, Inc. d/b/a Regional Medical Center Bayonet Point; HCA Health Services of Florida, Inc. d/b/a Oak Hill Hospital; and New Port Richey Hospital, Inc. d/b/a Medical Center of Trinity ("HCA").
November 13, 2015; U.S. Attorney; Middle District of Pennsylvania: Harrisburg Ambulance Company Fined $250,000; Owner Sentenced To 2 Years Prison And $300,000 Fine For Medicare Fraud
HARRISBURG-The United States Attorney's Office for the Middle District of Pennsylvania announced today that the owner of a Harrisburg-based ambulance company has been sentenced to 24 months in prison and ordered to pay $494,378 in restitution and fines.
November 13, 2015; U.S. Department of Justice: Miami-Area Pharmacy Owner Sentenced to 42 Months in Prison for Role in $1.5 Million Medicare Part D Fraud Scheme
A Miami-area pharmacy owner was sentenced today to 42 months in prison for her role in the submission of more than $1.5 million in fraudulent claims to Medicare Part D.
November 13, 2015; U.S.Attorney; Western District of Tennessee: Two Plead Guilty in Lucrative Kickback and Medicare Fraud Scheme
Jackson, TN - A married couple has pled guilty to partaking in a scheme to defraud Medicare of more than $400,000 by making fraudulent medical equipment orders and paying illegal kickbacks. Four defendants were previously indicted in the scheme - three in February 2015 and one in October 2015. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty pleas today.
November 12, 2015; U.S. Attorney; Western District of New York: Orchard Park Man Sentenced For Health Care Fraud
BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Gary Wannemacher, 50, of Orchard Park, NY, who was convicted of health care fraud, was sentenced to three years probation and 100 hours community by U.S. District Court Judge Elizabeth A. Wolford. In addition, the defendant was ordered to pay $57,373.86 in restitution to Independent Health and BlueCross BlueShield of Western New York.
November 10, 2015; U.S. Department of Justice: Home-Health Agency Owners and Director of Nursing Indicted in $13 Million Medicare Fraud Conspiracy
The owners, the director of nursing and patient recruiters of a home-health agency based in Houston were arrested early this morning for their alleged roles in conspiracies to defraud Medicare, to pay illegal healthcare kickbacks and to commit money laundering. The defendants were charged in an indictment unsealed earlier today.
November 6, 2015; U.S. Department of Justice: Owner of Los Angeles Medical Supply Company Convicted in $4 Million Medicare Fraud Scheme
A federal jury in Los Angeles convicted a Los Angeles man and owner of a medical supply company today for his role in a $4 million Medicare fraud scheme.
November 6, 2015; U.S. Department of Justice: Medical Director and Three Therapists Sentenced for Their Roles in $63 Million Miami Health Care Fraud Scheme
A former medical director and three therapists from defunct health provider Health Care Solutions Network Inc. (HCSN) were sentenced today in Miami for their roles in a scheme to fraudulently bill Medicare and Florida Medicaid more than $63 million.
November 6, 2015; U.S. Attorney; Eastern District of Kentucky: Five Former Owners of a Kentucky Clinical Laboratory Indicted for Health Care Fraud
LEXINGTON - A federal grand jury has returned a 100-count indictment charging five men, who owned a clinical laboratory, with billing health care third-party payors for urine drug tests that were medically unnecessary and not eligible for reimbursement.
November 5, 2015; U.S. Attorney; Southern District of Illinois: Effingham, Illinois, Doctor Sentenced for Illegal Dispensation of Controlled Substances
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Naeem Mahmood Kohli, 61, a medical doctor from Effingham, Illinois, was sentenced to 24 months in federal prison and ordered to pay $10,500 in fines as well as $700 in special assessments, to be followed by 3 years of supervised release after incarceration. Kohli was also ordered to forfeit to the United States his office building located at 500 North Maple, as well as $34,419.72, as a result of his drug convictions.
November 5, 2015; U.S. Attorney; Eastern District of Missouri: Four Home Healthcare Workers Charges with Defrauding Medicaid
St. Louis, MO - Two area home health care workers entered guilty pleas this week for billing Medicaid for home healthcare services that were not provided, while three other individuals were indicted with similar Medicaid home healthcare fraud charges. The charges include a home health care worker billing Medicaid when she was actually taking the bar examination in Jefferson City, Missouri, to become a lawyer. Another home health care worker billed Medicaid when his patient was actually in Florida; another home care worker billed Medicaid the day after she was discharged from the hospital after giving birth to a newborn baby and another home health care worker billed Medicaid for taking care of her husband.
November 5, 2015; U.S. Attorney; District of Rhode Island: RI Dermatology and Cosmetic Center Pays More Than $150,000 to Settle Allegations of Upcoding Medicare Claims
PROVIDENCE, R.I. - United States Attorney Peter F. Neronha and Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), New England Region, announced today that Rhode Island Dermatology and Cosmetic Center, LLC, and Rhode Island Dermatology OBS, LLC, of Lincoln, have paid $152,043.25 to resolve civil allegations that they violated the federal False Claims Act by billing Medicare for some patient services and procedures performed at rates higher than were warranted.
November 5, 2015; U.S. Attorney; Eastern District of North Carolina: President Of Ambulance Company Pleads Guilty To Perjury In Connection With False Health Care Claims Investigation
RALEIGH - United States Attorney Thomas G. Walker announced that today in federal court, JAIME LEONARD SMITH, 35, of Morehead City, North Carolina, pleaded guilty to Perjury.
November 4, 2015; U.S. Attorney; District of Connecticut: Doctor Sentenced to 7 Years in Prison for Illegally Prescribing Narcotics, Defrauding Government Programs
Deirdre M. Daly, United States Attorney for the District of Connecticut, Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, and Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, announced that DR. JOHN KATSETOS, 53, of Fairfield, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 84 months of imprisonment, followed by three years of supervised release, for illegally dispensing oxycodone and other controlled substances well outside of the scope of accepted medical practice, and for defrauding government healthcare programs.
November 4, 2015; U.S. Attorney; District of New Jersey: Compounding Pharmacist Sentenced To 20 Months In Prison For Paying Kickbacks For Referrals, Health Care Fraud
CAMDEN, N.J. - The owner of a compounding pharmacy in Lakewood, New Jersey, was sentenced today to 20 months in prison for paying tens of thousands of dollars in cash bribes to physicians for referring pain cream prescriptions, defrauding health care benefit programs out of hundreds of thousands of dollars, U.S. Attorney Paul J. Fishman announced.
November 4, 2015; U.S. Attorney; Eastern District of New York: Riverhead Physician Assistant Arrested For Conspiracy To Illegally Prescribe Oxycodone
Michael Troyan, a physician assistant who operated two urgent care clinics on the east end of Long Island was arrested this morning pursuant to a grand jury indictment[1] with conspiring to illegally distribute oxycodone, a highly addictive prescription pain medication. Also this morning, a search warrant was executed at the East End Urgent and Primary Care in Riverhead by the DEA's Long Island Tactical Diversion Squad which is comprised of agents and officers of the DEA, Nassau County Police Department, Rockville Centre Police Department, and Port Washington Police Department. The Long Island Tactical Diversion Squad was also assisted by agents and officers of the Department of Health & Human Services, the Southampton Town Police Department, and the Suffolk County District Attorney's East End Drug Taskforce. The defendant is scheduled to be arraigned this afternoon before United States Magistrate Judge Gary R. Brown at the United States Courthouse in Central Islip, New York.
November 3, 2015; U.S. Attorney; District of Utah: Kilgore Pleads Guilty To Three Counts Of Conspiracy To Commit Health Care Fraud
SALT LAKE CITY - Jacob J. Kilgore, a former owner of a Salt Lake City durable medical equipment company, pleaded guilty in U.S. District Court late Monday afternoon to three counts of conspiracy to commit health care fraud as a part of Medicare fraud scheme involving power wheelchairs. The plea agreement includes a stipulated sentence of 60 months in federal prison, subject to acceptance by the court.

Ocotber 2015

October 30, 2015; U.S. Attorney; Southern District of West Virginia: Lincoln county nurse sentenced in Federal court for obtaining drugs by fraud
CHARLESTON, W.Va. - United States Attorney Booth Goodwin announced that Betty Jo Tudor, 35, of Alkol, West Virginia, was sentenced today in federal court in Charleston to five years of probation for obtaining hydrocodone by fraud. Tudor, a former nurse at Sweetbriar Assisted Living in Dunbar, West Virginia, previously pled guilty and admitted that in June of 2013 she stole hydrocodone intended for patients for her own personal use and falsified records to cover up the theft.
October 30, 2015; U.S. Department of Justice: Nearly 500 Hospitals Pay United States More Than $250 Million to Resolve False Claims Act Allegations Related to Implantation of Cardiac Devices
The Department of Justice has reached 70 settlements involving 457 hospitals in 43 states for more than $250 million related to cardiac devices that were implanted in Medicare patients in violation of Medicare coverage requirements, the Department of Justice announced today.
October 29, 2015; U.S. Department of Justice: Warner Chilcott Agrees to Plead Guilty to Felony Health Care Fraud Scheme and Pay $125 Million to Resolve Criminal Liability and False Claims Act Allegations
Warner Chilcott U.S. Sales LLC, a subsidiary of pharmaceutical manufacturer Warner Chilcott PLC, has agreed to plead guilty to a felony charge of health care fraud, the Justice Department announced today. The plea agreement is part of a global settlement with the United States in which Warner Chilcott has agreed to pay $125 million to resolve its criminal and civil liability arising from the company's illegal marketing of the drugs Actonel®, Asacol®, Atelvia®, Doryx®, Enablex®, Estrace® and Loestrin®. Prior to today's guilty plea by Warner Chilcott, several individuals also pleaded guilty or were charged in connection with the company's illegal activities.
October 29, 2015; U.S. Department of Justice: Government Intervenes in Lawsuits Alleging That Skilled Nursing Chain SavaSeniorCare Provided Medically Unnecessary Therapy
The government has intervened in three False Claims Act lawsuits and filed a consolidated complaint against SavaSeniorCare LLC and related entities (Sava) alleging that Sava knowingly and routinely submitted false claims to Medicare for rehabilitation therapy services that were not medically reasonable and necessary, the Department of Justice announced today. Sava is one of the nation's largest healthcare providers, operating approximately 200 skilled nursing facilities (SNFs) in 23 states.
October 29, 2015; U.S. Attorney; Southern District of Texas: Three More Arrested in $12 Million Health Care Fraud Conspiracy
HOUSTON - Three more Houston residents, including a man who was practicing medicine without a license, have been arrested on wide-ranging charges involving a $12 million conspiracy to commit health care fraud and to pay kickbacks to patients, announced U.S. Attorney Kenneth Magidson.
October 29, 2015; U.S. Attorney; Southern District of Texas: Houston Man Pleads Guilty to Conspiracy to Defraud Medicare
HOUSTON - A Houston businessman has entered a guilty plea to engaging in a conspiracy to defraud Medicare of more than $6.6 million, announced U.S. Attorney Kenneth Magidson.
October 29, 2015; U.S. Attorney; Southern District of New York: Manhattan U.S. Attorney Announces Criminal And Civil Charges Against Pharmacist, Two Pharmacies, And Two Other Individuals For Multimillion-Dollar Oxycodone Distribution Scheme
Preet Bharara, the United States Attorney for the Southern District of New York, James J. Hunt, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration ("DEA"), Thomas E. Bishop, Acting Special Agent in Charge of the New York Office of Internal Revenue Service - Criminal Investigation ("IRS-CI"), and Scott J. Lampert, the Special Agent in Charge for the New York Regional Office of the Department of Health and Human Services - Office of Inspector General ("HHS-OIG"), announced the unsealing of an indictment today against three individuals and two pharmacies for a multimillion-dollar oxycodone distribution scheme that flooded New York City with illegal controlled substances through pharmacies operated in Brooklyn and Queens. Defendants LILIAN JAKACKI, a/k/a/ "Lilian Wieckowski" ("WIECKOWSKI"), MARCIN JAKACKI, a/k/a "Martin," ROBERT CYBULSKI, EUROPEAN APOTHECARY, INC., d/b/a "Chopin Chemists," and MW&W; GLOBAL ENTERPRISES, INC., d/b/a "Chopin Chemists," are charged with illegally distributing more than 500,000 pills of oxycodone over a five-year period with a street value between $10 million and $15 million. The defendants are also charged with money laundering and health care fraud.
October 28, 2015; U.S. Attorney; District of Maryland: Former NIH Employee Admits to Using Her Government Credit Card for Unauthorized Purchases
Greenbelt, Maryland - Francesca Maria Daniele, age 49, of LaPlata, Maryland, pleaded guilty today to wire fraud in connection with the misuse of her government credit card.
October 27, 2015; U.S. Attorney; Western District of North Carolina: Charlotte Man Pleads Guilty To $2 Million Health Care Fraud Scheme
CHARLOTTE, N.C. - The former co-owner and operator of a Charlotte-area company providing services to Medicaid beneficiaries with intellectual/developmental disabilities has admitted to defrauding the government program of over $2 million, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Eric Bernard Mitchell, 43, of Charlotte, appeared before U.S. Magistrate Judge David S. Cayer and pleaded guilty to health care fraud and money laundering charges.
October 26, 2015; U.S. Department of Justice: Owner of Two New York Medical Clinics Pleads Guilty to Role in $55 Million Health Care Fraud Scheme
The owner of two medical clinics in Brooklyn, New York, pleaded guilty today to her role in a $55 million health care fraud and money laundering conspiracy.
October 23, 2015; U.S. Attorney; Eastern District of California: Roseville Podiatrist Pleads Guilty to $1 Million Health Care Fraud Scheme
SACRAMENTO, Calif. -Neil A. Van Dyck, 64, of Roseville, pleaded guilty today to health care fraud, United States Attorney Benjamin B. Wagner announced.
October 23, 2015; U.S. Attorney; Northern District of Illinois: CEO of Chicago Healthcare Company Pleads Guilty to Fraudulently Billing Medicare in $1.8 Million Scheme
CHICAGO - The chief executive of Chicago-based Mobile Doctors pleaded guilty today to charges that he fraudulently increased Medicare bills for in-home treatment that was shorter and less complicated than the claims indicated.
October 23, 2015; U.S. Attorney; District of Maryland: Physician Sentenced to Three Years' Probation also Surrenders Medical License and DEA Controlled Substances License for Two Years
Greenbelt, Maryland - U.S. District Judge Paul W. Grimm sentenced Peter Wisniewski, age 52, of Huntingtown, Maryland, a physician in a Calvert County medical group, today to three years of probation for writing prescriptions for Oxycodone and Adderall in the names of three of his patients that he then kept for his own use. Judge Grimm also ordered Wisniewski to pay a fine of $40,000, which Wisniewski paid at today's sentencing hearing.
October 22, 2015; U.S. Department of Justice: Two Psychologists Charged in $25.2 Million Fraud Scheme Involving Psychological Testing in Gulf Coast States
Two clinical psychologists were charged today with participating in a $25 million Medicare fraud scheme involving psychological testing in nursing homes in Gulf Coast states.
October 22, 2015; U.S. Attorney; District of New Jersey: Former Executive Director Of Jersey City Child Development Centers In Jersey City Charged With Stealing At Least $200,000
NEWARK, N.J. - The former executive director of the Jersey City Child Development Centers Inc. (JCCDC) in Jersey City, New Jersey, was charged today with stealing more than $200,000 from the organization, U.S. Attorney Paul J. Fishman announced.
October 22, 2015; U.S. Attorney; District of Massachusetts: Springfield Doctor Indicted in Anti-Kickback Case
BOSTON - A Springfield gynecologist was arrested today in connection with allegedly accepting free meals and speaker fees from a pharmaceutical company in return for prescribing its osteoporosis drugs, allowing pharmaceutical sales representatives to access patient records and lying to federal investigators.
October 21, 2015; U.S. Attorney; Western District of Tennessee: Married Couple, Son, and Accomplice Indicted for Defrauding Medicare
Jackson, TN - The February 2015 indictment of a married couple and their accomplice, charging them with defrauding Medicare, has been superseded to add the couple's son as a fourth defendant. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the superseding indictment today.
October 21, 2015; U.S. Attorney; District of Pennsylvania: Ambulance Driver Admits Role In Health Care Fraud Conspiracy
PHILADELPHIA - Thael Kuran, 23, of Philadelphia, PA, pleaded guilty today to conspiracy to commit health care fraud and making false statements in a health care matter. The charges stem from a fraud scheme involving Brotherly Love Ambulance, Inc. U.S. District Court Judge Gerald J. Pappert scheduled a sentencing hearing for January 19, 2016. Kuran faces a maximum possible sentence of 15 years in prison, three years of supervised release, a $500,000 fine, and a $200 special assessment.
October 19, 2015; U.S. Attorney; District of Massachusetts: Millennium Laboratories to Pay $256 Million to Resolve False Billing and Kickback Claims
BOSTON - Millennium Health, formerly Millennium Laboratories, has agreed to pay $256 million to resolve allegations that it billed Medicare, Medicaid, and other federal health care programs for medically unnecessary drug testing and genetic testing, and provided kickbacks to physicians to induce business. Today's announcement reflects two False Claims Act settlements between Millennium and the Department of Justice and an administrative settlement agreement between Millennium and the Department of Health and Human Services. Millennium, headquartered in San Diego, Calif., is one of the largest urine drug testing laboratories in the United States.
October 16, 2015; U.S. Department of Justice: United States Resolves $237 Million False Claims Act Judgment against South Carolina Hospital that Made Illegal Payments to Referring Physicians
The Department of Justice announced today that it has resolved a $237 million judgment against Tuomey Healthcare System for illegally billing the Medicare program for services referred by physicians with whom the hospital had improper financial relationships. Under the terms of the settlement agreement, the United States will receive $72.4 million and Tuomey, based in Sumter, South Carolina, will be sold to Palmetto Health, a multi-hospital healthcare system based in Columbia, South Carolina.
October, 16, 2015; U.S. Department of Justice: Operators of Medical Equipment Supply Company Convicted in $1.5 Million Medicare Fraud Scheme
A federal jury in Los Angeles convicted the former owner and the former operator of a durable medical equipment supply company of health care fraud charges in connection with a $1.5 million Medicare fraud scheme.
October 16, 2015; U.S. Attorney; Southern District of Illinois: O'Fallon Woman Pleads Guilty To Healthcare Fraud Charge
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today, that on October 14, 2015, Ann Marie Sheppard, 54, of O'Fallon, Illinois, pled guilty in federal court to charges that she engaged in a scheme to steal from a health care program and committed mail fraud. Sentencing has been set for February 10, 2016. Sheppard will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
October 15, 2015; U.S. Attorney; Southern District of Illinois: Brighton Woman Pleads Guilty To Healthcare Fraud Offense
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Jessica A. Teets, 27, of Brighton, Illinois, pled guilty in the U.S. District Court on October 13, 2015, to the charge that she engaged in a scheme to defraud a health care program. Sentencing has been set for February 9, 2016, in U.S. District Court in East Saint Louis. Teets will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
October 15, 2015; U.S. Attorney; District of Ohio: Richmond Heights woman sentenced to eight years in prison for operating an $18 million healthcare fraud scheme
A Richmond Heights woman was sentenced to nearly eight years in prison for operating an $18 million home healthcare fraud scheme, law enforcement officials said.
October 13, 2015; U.S. Department of Justice: International Fugitive Arrested for Role in Multi-Million Dollar Health Care Fraud Scheme
A Cuban national who had been wanted since 2013 on charges relating to a multi-million dollar health care fraud scheme was arrested on Friday, Oct. 9, 2015, when he arrived in Miami on a flight from Cuba.
October 13, 2015; U.S. Attorney; District of Arkansas: Little Rock Doctor Pleads Guilty To Health Care Fraud Admits To $2.2 Million In Fraudulent Billing
LITTLE ROCK-Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, David Shepard, Assistant Special Agent in Charge for the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Special Agent in Charge CJ Porter of U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) announced that Dr. Robert Barrow, 62, of Little Rock, pled guilty today to conspiring to commit health care fraud before U.S. District Court Judge J. Leon Holmes.
October 9, 2015; U.S. Department of Justice: Ohio Hospital to Pay $4.1 Million to Resolve False Claims Act Allegations
Cincinnati-based West Chester Hospital and its parent company, UC Health, have agreed to pay $4.1 million to settle allegations that West Chester Hospital violated the False Claims Act by billing federal health care programs for costs associated with medically unnecessary spine surgeries, the Justice Department announced today.
October 9, 2015; U.S. Attorney; Middle District of Tennessee: Middle Tennessee Podiatrist Charged With Health Care Fraud
Dr. John J. Cauthon, 49, of Murfreesboro, Tenn., was charged Wednesday in a federal indictment with seven counts of health care fraud, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
October 7, 2015; U.S. Department of Justice: Nation's Second-Largest Nursing Home Pharmacy to Pay $9.25 Million to Settle Kickback Allegations
The nation's second-largest nursing home pharmacy, PharMerica Corp., has agreed to pay $9.25 million to resolve allegations that it solicited and received kickbacks from pharmaceutical manufacturer Abbott Laboratories in exchange for promoting the prescription drug Depakote for nursing home patients. PharMerica is headquartered in Louisville, Kentucky.
October 7, 2015; U.S. Department of Justice: Miami Physician Indicted for Role in $20 Million Health Care Fraud Scheme
A Miami physician was charged in an indictment unsealed today with participating in a Medicare fraud scheme that caused losses of more than $20 million.
October 7, 2015; U.S. Attorney; District of Arizona: Serenity Hospice and Palliative Care to Pay $2.2 Million to Resolve False Claims Allegations
PHOENIX - Serenity Hospice and Palliative Care, a hospice operating in Phoenix, Ariz., has agreed to pay $2.2 million to resolve civil allegations that it violated the federal False Claims Act by submitting false bills to Medicare for hospice services.
October 6, 2015; U.S. Attorney; District of Connecticut: Stamford Podiatrist Pleads Guilty to Submitting False Medicare Claims, Also Pays 288K in Civil Settlement
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that AMIRA MANTOURA, 53, of Greenwich, waived her right to indictment and pleaded guilty yesterday in Hartford federal court to one count of making a false statement to the Medicare program. In pleading guilty, MANTOURA, a Stamford-based podiatrist, admitted that she submitted false claims to Medicare, Medicaid and private insurance companies.
October 5, 2015; U.S. Attorney; Western District of North Carolina: Hickory, N.C. Physician Pleads Guilty To Health Care Fraud
CHARLOTTE, N.C. - A Hickory physician pleaded guilty today to health care fraud charges for submitting to Medicare and Medicaid over $467,376 in fraudulent reimbursement claims, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Wayne Vincent Wilson, 54, entered his guilty plea before U.S. Magistrate Judge David S. Cayer.
October 2, 2015; U.S. Department of Justice: United States Settles False Claims Act Suit against Guardian Hospice and Related Entities
Guardian Hospice of Georgia LLC, Guardian Home Care Holdings Inc. and AccentCare Inc. (collectively Guardian) agreed to pay $3 million to resolve allegations that Guardian knowingly submitted false claims to the Medicare program for hospice patients who were not terminally ill, the Department of Justice announced today. Guardian is a for-profit hospice which provides hospice services in Atlanta.
October 2, 2015; U.S. Attorney; Northern District of Georgia: Guardian Hospice and Related Entities to Pay $3 Million to Resolve False Claims Act Allegations
ATLANTA - The United States Attorney's Office for the Northern District of Georgia announced that Guardian Hospice of Georgia, LLC, Guardian Home Care Holdings, Inc., and AccentCare, Inc., (collectively Guardian) agreed to pay $3 million to resolve allegations that Guardian knowingly submitted false claims to the Medicare program for hospice patients who were not terminally ill. Guardian is a for-profit hospice that provides hospice services in the Atlanta, Georgia, area.
October 1, 2015; U.S. Attorney; Eastern District of Kentucky: Lexington Home Health Agency and Estate of Deceased Owner Agree to Judgment of $16 Million to Resolve Allegations of Health Care Fraud
LEXINGTON - Nurses' Registry and Home Health Corporation ("Nurses' Registry") and the Estate of its former owner, the deceased Lennie House, have agreed to the entry of a judgment against them for $16,000,000 to resolve allegations of widespread healthcare fraud.
October 1, 2015; U.S. Attorney Southern District of New York: Doctor Arrested For Illegal Distribution Of More Than Ten Thousand Oxycodone Pills, Resulting In One Known Death
Preet Bharara, the United States Attorney for the Southern District of New York, James A. Hunt, Special Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration ("DEA"), and William J. Bratton, Commissioner of the New York Police Department ("NYPD"), announced the unsealing of a Complaint against a doctor and a co-conspirator who are alleged to have participated in a drug distribution conspiracy involving the prescription painkiller oxycodone. As alleged, the doctor, ALFRED RAMIREZ, sold medically unnecessary prescriptions for over 10,000 oxycodone tablets over a four-year period, resulting in at least one death.
October 1, 2015; U.S. Attorney; District of Massachusetts: Strata Pathology to Resolve Allegations Regarding Kickback Payments
BOSTON - Lexington-based Strata Pathology Laboratory, Inc. (known as StrataDx), has agreed to pay $558,793 to resolve allegations that it violated the False Claims Act by inducing physicians to refer Medicare and Medicaid patients to Strata by paying kickbacks in the form of sham consulting fees and providing unlawful discounts to physicians.

September 2015

September 30, 2015; U.S. Attorney; Southern District of Indiana: Indianapolis man sentenced to 46 months for health care fraud and identity theft
Indianapolis - United States Attorney Josh J. Minkler announced today the sentencing of an Indianapolis man for defrauding Medicare, Medicaid and Anthem Blue Cross as well as identity theft. Ronald Reed, 47, of Indianapolis was sentenced by U. S. District Judge Jane Magnus-Stinson to 46 months in federal prison.
September 29, 2015; U.S. Department of Justice: Owner of Orlando Health Care Clinic Sentenced to Five Years in Prison for Engaging in Medicare Fraud Scheme
The owner of an Orlando health care clinic was sentenced today to five years in prison for engaging in a $2.4 million health care fraud scheme.
September 29, 2015; U.S. Attorney; Middle District of Florida: Federal Jury Finds Doctor Guilty On 20 Counts Of Health Care Fraud
Jacksonville, Florida - United States Attorney A. Lee Bentley, III announces that a federal jury today found Dr. David M. Pon (57, Windermere) guilty of 20 counts of health care fraud connected to his scheme to defraud the Medicare program. He faces a maximum penalty of 10 years in federal prison for each count. Following the jury's verdict, the Court remanded Pon to the custody of the United States Marshals Service. His sentencing hearing is scheduled for March 14, 2016.
September 29, 2015; U.S. Attorney; Northern District of Texas: San Angelo, Texas, Psychiatrist Admits Committing Health Care Fraud
AMARILLO, Texas - A licensed psychiatrist from San Angelo, Texas, Robert Hadley Gross, 58, pleaded guilty last week to one count of health care fraud stemming from a scheme he ran to defraud Medicare and Medicaid by submitting claims for services not rendered in the manner billed, including submitting claims for services allegedly rendered after patients' deaths. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
September 28, 2015; U.S. Attorney; District of Connecticut: Government Settles False Claims Act Allegations against American Access Care Holdings, LLC for $3.5 Million
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Philip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General, today announced that AMERICAN ACCESS CARE HOLDINGS, LLC has entered into a civil settlement agreement with the Government in which it will pay $3,594,791 to resolve allegations that it violated the False Claims Act.
September 28, 2015; U.S. Attorney; District of Rhode Island: $2.6 Million Recovered Through Settlement of False Claims Act Allegations Against American Access Care
PROVIDENCE, R.I. - United States Attorney Peter F. Neronha and Phillip Coyne, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), New England Region, announced today that American Access Care Holdings, LLC, (AAC) which handled billings and claims submitted by a vascular access center formerly operated by AAC in Providence, R.I., has agreed to pay $2.6 million dollars to resolve allegations that it violated the False Claims Act as a result of conduct at its Providence access center.
September 28, 2015; U.S. Attorney; Southern District of West Virginia: Ohio man pleads guilty to Federal health care fraud
HUNTINGTON, W.Va. - Joshua Petrie, 36, of Proctorville, Ohio, pleaded guilty today in federal court in Huntington to federal health care fraud, announced U.S. Attorney Booth Goodwin. Petrie admitted that he worked as a sales representative and fitter for several out of state companies that sold and distributed back and knee braces from a medical practice in West Virginia. Petrie created false documents showing that he provided braces to patients when, in fact, he had not. The false documents included a certification from a physician indicating that the physician had ordered the braces for individual Medicare patients, but Petrie used copies of a pre-signed physician's order that was not specific to these patients. The false documents also included a delivery ticket with a signature line for patients to acknowledge receipt of the braces. Petrie forged patients' signatures to the delivery tickets to make it appear that patients had received the braces when they had not. The false paperwork was used by others to bill Medicare for approximately $38,000.
September 25, 2015; U.S. Attorney; Northern District of Ohio: Westlake cardiologist convicted of overbilling for $7 million worth of unnecessary procedures
A Westlake cardiologist was convicted of performing unnecessary catheterizations, tests, stent insertions and causing unnecessary coronary artery bypass surgeries as part of a scheme to overbill Medicare and other insurers by $7.2 million, law enforcement officials said.
September 24, 2015; U.S. Attorney; District of Kansas: Prison Terms Don't Change For Former Haysville Doctor and Wife
WICHITA, KAN. - A federal judge Thursday resentenced a former Haysville physician and his wife without changing the amount of time they must spend in prison for illegally distributing prescription pain killers to patients who overdosed on them, U.S. Attorney Barry Grissom said.
September 24, 2015; U.S. Attorney; Northern District of Iowa: Spencer Chiropractor to Pay $62,349 to Resolve False Claims Act Allegations
Elizabeth Kressin, D.C., from Spencer, Iowa, has agreed to pay $62,349 to resolve allegations she violated the False Claims Act by improperly billing the Medicaid system for medically unnecessary chiropractic procedures and for the treatment of conditions for which payment is not allowed, including bed wetting, colic and ear infections. The government alleged that Kressin caused the submission of the improper claims from January 1, 2008, through June 30, 2015. The claims settled by the agreement are allegations only; there has been no admission or judicial determination of liability.
September 24, 2015; U.S. Attorney; Middle District of Pennsylvania: Mount Carmel Woman Charged With Health Care Fraud
HARRISBURG - The United States Attorney's Office for the Middle District of Pennsylvania announced that a Mount Carmel woman was indicted yesterday by a grand jury in Harrisburg on charges related to health care fraud.
September 23, 2015; U.S. Attorney; District of Minnesota: Bloomington Pain Management Doctor Indicted For Accepting Kickbacks As Part Of Large Scale Health Care Fraud Scheme
United States Attorney Andrew M. Luger today announced the indictment of ELENA LEV POLUKHIN, 58, for writing prescriptions for pain medication as part of a health care fraud conspiracy in which POLUKHIN received kickbacks from Best Aid Pharmacy. POLUKHIN is charged with conspiracy to commit health care fraud, soliciting and receiving kickbacks, health care fraud, aggravated identity theft and distribution of controlled substances. The defendant made an initial appearance today before Magistrate Judge Steven E. Rau in U.S. District Court in St. Paul, Minn.
September 21, 2015; U.S. Department of Justice: Adventist Health System Agrees to Pay $115 Million to Settle False Claims Act Allegations
Adventist Health System has agreed to pay the United States $115 million to settle allegations that it violated the False Claims Act by maintaining improper compensation arrangements with referring physicians and by miscoding claims, the Justice Department announced today. Adventist is a non-profit healthcare organization that operates hospitals and other health care facilities in 10 states.
September 18, 2015; U.S. Department of Justice: Medical Biller Sentenced to 45 Months in Prison for Role in $4 Million Health Care Fraud Scheme
The medical biller of a Chicago-area visiting physician practice was sentenced today to 45 months in prison for her role in a $4 million health care fraud scheme.
September 18, 2015; U.S. Department of Justice: United States Intervenes in False Claims Act Lawsuit against Mississippi Hospital, Two Individuals and Management Company for Overcharging Medicare Program
The United States has intervened in a lawsuit and filed a complaint against H. Ted Cain, Julie Cain, Corporate Management Inc. and Stone County Hospital Inc. for submitting false claims to the Medicare program by knowingly charging excessive and ineligible expenses from 2002 to the present. Stone County Hospital is a critical access hospital located in rural Mississippi. Corporate Management Inc. is a management company that provides management services to Stone County Hospital. Ted Cain owns and controls the hospital and the management company.
September 15, 2015; U.S. Attorney; Southern District of Florida: Florida Hospital District Agrees to Pay United States $69.5 Million to Settle False Claims Act Allegations
North Broward Hospital District, a special taxing district of the state of Florida that operates hospitals and other health care facilities in the Broward County, Florida, area, has agreed to pay the United States $69.5 million to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today.
September 15, 2015; U.S. Attorney; Southern District of West Virginia: Trivillian's Pharmacy sentenced for federal healthcare and drug crimes
Charleston, W.Va. - United States Attorney Booth Goodwin announced that Trivillian's Pharmacy, a long-standing Kanawha City retail and compounding pharmacy, was sentenced today in federal court in Charleston to three years of probation. Trivillian's Pharmacy had previously entered guilty pleas on February 25, 2015, to healthcare fraud and misbranding drugs. Trivillian's Pharmacy admitted it defrauded Medicare and Medicaid by dispensing compounded drugs while billing for more expensive brand name drugs, dispensing generic drugs while billing for more expensive brand name drugs, billing for drugs that were never dispensed and dispensing drugs that were compounded outside of a safe and clean environment. Trivillian's Pharmacy also admitted to dispensing compounded drugs under labels and identification numbers associated with name brand drugs. As part of the plea, Trivillian's Pharmacy agreed to make restitution to the Medicare and Medicaid programs in the amount of $355, 312.19**, and to forfeit an additional $355,312.19 of proceeds of the fraud schemes to the United States.
September 14, 2015; U.S. Attorney; Southern District of New York: District Court Approves Transition Plan For Clinical And Housing Operations Of Substance Abuse Provider Engaged In A Fraudulent Kickback Scheme
Preet Bharara, the United States Attorney for the Southern District of New York, and Scott Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General's ("HHS-OIG") New York Region, announced that a transition plan for NARCO FREEDOM, INC. ("NARCO FREEDOM"), a provider of outpatient chemical dependency clinics and short-term housing in residences known as "three-quarter houses," has been approved in Manhattan Federal Court. In April 2015, NARCO FREEDOM was enjoined from engaging in a fraudulent kickback scheme and a temporary receiver was appointed to take over NARCO FREEDOM's operations. On September 11, 2015, the Court approved the receiver's plan to transition the substance abuse clinics and the housing operated by NARCO FREEDOM to other healthcare providers. This transition prevents the imminent disruption of clinical services and housing for NARCO FREEDOM residents. U.S. District Judge John G. Koeltl entered the order last Friday.
September 14, 2015; U.S. Attorney; Western District of Kentucky: Former Humana Inc. Employees Sentenced For Taking Kickbacks Totaling $2 Million Dollars In An Insurance Sales Bribery Scheme
LOUISVILLE, Ky. - Former Humana Inc. regional sales director, Glen Allan Fine and former Humana Inc. sales manager, James E. Wenger, were sentenced September 10, 2015, by Senior Judge Charles R. Simpson III, in United States District Court, to one year and one day in prison, and ordered to pay $100,000 each in restitution and forfeit $900,000 each, for their roles in a racketeering and bribery scheme, connected with their former position, announced United States Attorney John E. Kuhn, Jr.
September 11, 2015; U.S. Department of Justice: Jury Convicts Houston Psychiatrist in $158 Million Medicare Fraud Scheme
A Houston psychiatrist was convicted late yesterday by a federal jury of participating in a $158 million Medicare fraud scheme involving false claims for mental health treatment.
September 10, 2015; U.S. Attorney; District of Tennessee: Alive Hospice Pays U.S. And Tennessee Over $1.5 Million To Resolve False Claims Act Lawsuit
Alive Hospice, Inc. has paid over $1.5 million to reimburse the government for alleged overbilling of Medicare and TennCare for hospice services, announced Jack Smith, First Assistant United States Attorney for the Middle District of Tennessee. Alive is a non-profit hospice care provider that operates in Tennessee and provides various levels of hospice services.
September 9, 2015; U.S. Attorney; Eastern District of Pennsylvania: Ambulance Company Owner Charged In Medicare Fraud Scheme
PHILADELPHIA - Zahar Tkach, also known as Alex Tkach, of Bensalem, PA, was charged by indictment, unsealed today, in a scheme to defraud Medicare of approximately $1.25 million by charging for unnecessary ambulance services, announced by United States Attorney Zane David Memeger. Tkach is charged with health care fraud, obstruction of a federal audit and laundering criminal proceeds.
September 8, 2015; U.S. Attorney; Northern District of Illinois: West Suburban Doctor Pleads Guilty to Causing $4 Million Loss to Medicare by Falsely Approving Unnecessary Treatment
CHICAGO - A west suburban physician pleaded guilty in federal court today to a charge that he fraudulently certified Medicare patients as confined to the home, allowing healthcare agencies to bill Medicare for unnecessary in-home treatment.
September 4, 2015; U.S. Department of Justice: Administrator of Chicago-Area Home Visiting Physician Practice Sentenced to More Than Seven Years in Prison for Role in $4 Million Health Care Fraud Scheme
The lead administrator of a Chicago-area visiting physician practice was sentenced to 87 months in prison for his role in a $4 million health care fraud scheme.
September 4, 2015; U.S. Department of Justice: Georgia Hospital System and Physician to Pay More than $25 Million to Settle Alleged False Claims Act and Stark Law Violations
Columbus Regional Healthcare System (Columbus Regional) and Dr. Andrew Pippas have agreed to pay more than $25 million to resolve allegations that they violated the False Claims Act by submitting claims in violation of the Stark Law. Today's settlement also resolves allegations that Columbus Regional and Pippas submitted claims for payment to federal health care programs that misrepresented the level of services they provided. Under the settlement agreement, Columbus Regional has agreed to pay $25 million, plus additional contingent payments not to exceed $10 million, for a maximum settlement amount of $35 million, and Pippas has agreed to pay $425,000.
September 4, 2015; U.S. Attorney; District of Maryland: Doctors Convicted in $2.5 Million Health Care Fraud Scheme
Greenbelt, Maryland - A federal jury convicted two doctors, Paramjit Singh Ajrawat, age 60, and his wife, Sukhveen Kaur Ajrawat, age 57, both of Potomac, Maryland, on charges related to their health care fraud scheme. Paramjit Singh Ajrawat was convicted of one count of health care fraud, two counts of making a false statement related to a health care program, one count of obstruction of justice, four counts of wire fraud, and one count of aggravated identity theft. Sukhveen Kaur Ajrawat was convicted of one count of health care fraud, four counts of making a false statement related to a health care program, one count of obstruction of justice, four counts of obstructing an audit, four counts of wire fraud, and two counts of aggravated identity theft. The convictions are in connection with the pain clinic they owned and operated.
September 3, 2015; U.S. Attorney; Southern District of Mississippi: Hospice Facility and Its Manager/Majority Owner to Pay Approximately $5.86 Million to Resolve Continuous Home Care Hospice Fraud Allegations
Jackson, Miss. - St. Joseph Hospice Entities, which consists of 13 hospice facilities in Mississippi, Louisiana, Texas and Alabama, and Patrick T. Mitchell, its majority owner and manager, have agreed to pay the United States $5,867,518 under the False Claims Act to resolve allegations that they submitted false claims for delivery of continuous home care hospice services to patients who were not entitled to receive continuous care hospice level treatment, announced United States Attorney Gregory K. Davis, Special Agent in Charge Derrick L. Jackson with the U.S. Department of Health and Human Services - Office of Inspector General, and FBI Special Agent in Charge Donald Alway.
September 2, 2015; U.S. Department of Justice: Eight Indicted in Fraud Case That Alleges $50 Million in Bogus Claims for Student Substance Abuse Counseling
Eight people have been indicted for allegedly participating in a scheme that submitted more than $50 million in fraudulent bills to a California state program for alcohol and drug treatment services for high school and middle school students that, in many instances, were not provided or were provided to students who did not have substance abuse problems.
September 2, 2015; U.S. Attorney; Northern District of California: United States Sues Qualium Corporation And Bay Area Sleep Clinics To Recover Damages Under The False Claims Act
SAN JOSE - The United States has filed a False Claims Act complaint against the owners and operators of Bay Sleep Clinic and their related businesses, Qualium Corporation, CPAP Specialist, and Amerimed Corporation, announced Acting United States Attorney Brian J. Stretch and U.S. Department of Health and Human Services Acting Special Agent in Charge Gerald Roy.
September 2, 2015; U.S. Attorney; Eastern District of Missouri: Local Physician and Clinic Sentenced on Health Care Related Charges
St. Louis, MO - DR. MEL E. LUCAS and PATTERSON MEDICAL CLINIC, INC. were sentenced for receipt of misbranded drugs and false statement charges respectively. Both were sentenced to three years of probation.
September 1, 2015; U.S. Department of Justice: KMART Corporation Pays $1.4 Million to Resolve False Claims Act Allegations in Connection with Drug Manufacturer Coupons and Gas Discounts
KMART Corp. (Kmart), a discount department store chain that operates approximately 780 in-store pharmacies throughout the United States, Puerto Rico and the U.S. Virgin Islands, has paid the United States $1.4 million to resolve allegations that it violated the False Claims Act by using drug manufacturer coupons and gasoline discounts as improper Medicare beneficiary inducements, the Justice Department announced today.
September 1, 2015; U.S. Attorney; Western District of Virginia: Former Respiratory Care Practitioner Sentenced for Health Care Fraud Charges
CHARLOTTESVILLE, VIRGINIA - A former respiratory therapist, who practiced in both Free Union, Va. and Earlysville, Va., pled guilty on April 20, 2015, to committing health care fraud and was sentenced August 28, 2015, in the United States District Court for the Western District of Virginia in Charlottesville.

August 2015

August 31, 2015; U.S. Department of Justice: Detroit-Area Physician Pleads Guilty for Role in $5.7 Million Fraud Scheme
A Detroit-area medical doctor who prescribed unnecessary controlled substances and billed for unperformed office visits and diagnostic testing pleaded guilty today for his role in a $5.7 million health care fraud scheme.
August 28, 2015; U.S. Attorney; Northern District of Illinois: West Suburban Dermatologist Sentenced To 7 Years In Federal Prison For Defrauding Medicare And Private Insurers Of $3.7 Million
CHICAGO - A Lombard dermatologist was sentenced today to 7 years in federal prison for submitting hundreds of false insurance claims for alleged skin cancer treatment that was unnecessary or never performed.
August 28, 2015; U.S. Attorney; Southern District of Texas: McAllen Area Marketer Pleads Guilty to Health Care Fraud Scheme
McALLEN, Texas - A marketer for several area home health agencies has entered a guilty plea to conspiracy to commit health care fraud for her role in a scheme to defraud the Medicare program, announced U.S. Attorney Kenneth Magidson.
August 27, 2015; U.S. Attorney; Western District of Michigan: CEO Of Kentwood Pharmacy, Kim Duron Mulder, Sentenced To Ten Years In Prison For Health Care Fraud
GRAND RAPIDS, MICHIGAN - U.S. Attorney Patrick A. Miles, Jr. announced that Kim Duron Mulder, 56, formerly of East Grand Rapids, was sentenced today to ten years in prison. Mulder, the CEO of Kentwood Pharmacy, pled guilty to a conspiracy to commit health care fraud based on billing Medicare Part D Plans, Medicaid, and private insurance plans for misbranded and adulterated drugs. At a sentencing hearing in Grand Rapids, Chief U.S. District Judge Robert Jonker also ordered that Mulder serve three years of supervised release following his prison term.
August 27, 2015; U.S. Attorney; Northern District of Illinois: Owners And Nurses Of Chicago Home-Healthcare Company Among Seven Indicted In Medicare Fraud And Kickback Scheme
CHICAGO - The husband-and-wife owners of a Chicago home-healthcare business paid kickbacks to employees and marketers in exchange for referring elderly and disabled patients to the company for unnecessary or non-existent treatment that was funded by Medicare, according to a 23-count federal indictment unsealed today.
August 27, 2015; U.S. Attorney; Eastern District of New York: Four Plead Guilty In Health Care Fraud Conspiracy
BROOKLYN, NY - Earlier today, Jeffrey Suh, Kang Young Chung, Sophia Lin, and Emily Shim pleaded guilty to conspiring to commit health care fraud in connection with a $4 million health care fraud scheme.
August 25, 2015; U.S. Department of Justice: Medical Director and Three Therapists Convicted in $63 Million Health Care Fraud Scheme
A federal jury in Miami late yesterday convicted the former medical director of, and three therapists employed by, a now-defunct health care provider of conspiracy to commit health care fraud and related charges for their roles in a scheme to fraudulently bill Medicare and Florida Medicaid more than $63 million.
August 25, 2015; Southern District of New York: Former Owner And Operator Of NYC Health Clinics Sentenced In Manhattan Federal Court For $30 Million Medicare Fraud Scheme
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that OSCAR HUACHILLO, the former owner and operator of multiple HIV/AIDS clinics in New York City, was sentenced today in Manhattan federal court to 87 months in prison for orchestrating a scheme to defraud Medicare out of more than $31 million; he was also sentenced to 60 months in prison, to be served concurrently, for evading more than $3.4 million in federal income taxes by falsely underreporting his income. As part of the scheme, HUACHILLO submitted bills to Medicare for expensive treatments that were administered at highly diluted doses or never administered at all, and were often unnecessary. HUACHILLO previously pled guilty to conspiring to commit health care fraud and committing tax evasion before U.S. District Judge Katherine Polk Failla, who imposed today's sentence.
August 24, 2015; U.S. Attorney; Eastern District of New York: Five Defendants Pay Over $8 Million To Resolve Civil Fraud Allegations That They Billed Medicare And Medicaid For Unlicensed And Unnecessary Inpatient Detoxification Services
Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Scott J. Lampert, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General's New York Region (HHS-OIG), today announced that three New York hospitals, Benedictine Hospital, Columbia Memorial Hospital, and St. Joseph's Medical Center, together with SpecialCare Hospital Management Corporation (SpecialCare), a Missouri-based company, and SpecialCare's chief executive officer, Robert McNutt, had agreed to pay over $8 million to resolve claims that they had defrauded the Medicare and Medicaid programs in connection with detoxification treatment provided to patients at the hospitals.
August 24, 2015; U.S. Attorney; Southern District of Texas: Previously Indicted McAllen Area Doctor Charged Again and Ordered into Custody
McALLEN, Texas - A McAllen area doctor, previously indicted in an illegal kickback scheme, has been charged on new allegations of health care fraud for his scheme to defraud Medicare, announced U.S. Attorney Kenneth Magidson.
August 24, 2015; U.S. Attorney; District of Texas: Fake Hospice Nurse Sentenced to 48 Months in Federal Prison
DALLAS - A Dallas woman who stole the identity of a registered nurse and used that identity to work at several Dallas-Fort Worth (DFW) area hospice companies, where she saw and purportedly treated 243 hospice patients, was sentenced this morning, announced U.S. Attorney John Parker of the Northern District of Texas.
August 21, 2015; U.S. Attorney; District of Maryland: Physician Admits Writing Prescriptions in the Names of Patients to Obtain Drugs for His Own Use
Greenbelt, Maryland - Peter Wisniewski, age 52, of Huntingtown, Maryland, a physician in a Calvert County medical group, pleaded guilty today to three counts of possession of a controlled substance. Wisniewski admitted that he wrote prescriptions in the names of three of his patients for Oxycodone and Adderall that he then kept for his own use.
August 19, 2015; U.S. Department of Justice: Ambulance Company Owner, Operator and Managers Found Guilty in Medicare Fraud Conspiracy
A federal jury in Los Angeles late yesterday convicted the former owner, operator and managers of a Southern California ambulance company of health care fraud charges in connection with a Medicare fraud scheme of at least $2.4 million.
August 19, 2015; U.S. Attorney; District of Arizona: Bullhead City Physician to Pay $207,000 to Resolve False Claims Allegations
PHOENIX - Dr. Bashir Azher, M.D., 69, an Arizona-licensed physician practicing in Bullhead City, Ariz., has agreed to pay the United States $207,988 to resolve civil allegations that he violated the federal False Claims Act by submitting false bills to Medicare for prostate laser ablation procedures, commonly known as Green Light prostatectomies.
August 18, 2015; U.S. Department of Justice: Owner of Three Los Angeles Clinics Pleads Guilty to $4.5 Million Medicare Fraud Scheme
The owner and operator of three medical clinics located in Los Angeles pleaded guilty today to submitting more than $4.5 million in fraudulent claims to Medicare.
August 17, 2015; U.S. Attorney; District of New Jersey: Clifton, New Jersey, Ambulance Provider Charged In 17-Count Indictment With Health Care Fraud
NEWARK, N.J. - A Passaic County, New Jersey, man was charged today with operating a lucrative ambulance company that received funds from Medicare and Medicaid, despite being barred from doing such business because of a prior health care fraud conviction, U.S. Attorney Paul J. Fishman announced.
August 14, 2015; U.S. Department of Justice: Doctor at Brooklyn, New York, Clinic Sentenced to Two Years in Prison for Engaging in $13 Million Health Care Fraud Scheme
A doctor at a Brooklyn, New York, clinic was sentenced to two years in prison for his role in a $13 million health care fraud scheme.
August 14, 2015; U.S. Attorney; Western District of Oklahoma: Oklahoma Federally Qualified Health Center Agrees to Pay $825,000 to Settle Allegations of Submitting False Medicaid Claims for Medical Services
Oklahoma City, Oklahoma - Sanford C. Coats, United States Attorney for the Western District of Oklahoma and E. Scott Pruitt, Attorney General for the State of Oklahoma ("Oklahoma"), jointly announce that EAST CENTRAL FAMILY HEALTH CENTER has agreed to pay $825,000 to settle civil claims stemming from allegations that it violated the False Claims Act by submitting false Medicaid claims.
August 13, 2015; U.S. Department of Justice: Missouri Hospital Agrees to Pay United States $5.5 Million to Settle Alleged False Claims Act Violations
Two Southwest Missouri health care providers have agreed to pay the United States $5.5 million to settle allegations that they violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today. The two providers are Mercy Health Springfield Communities, formerly known as St. John's Health System Inc., which owns and operates a hospital in Springfield, Missouri, and its affiliate, Mercy Clinic Springfield Communities, formerly known as St. John's Clinic, which operates health care facilities in southwest Missouri.
August 13, 2015; U.S. Attorney; Southern District of Texas: Houston Area Business Owner Charged with Defrauding Medicare of $5.6 Million
HOUSTON - Three people have been taken into custody on charges contained in a 21-count indictment alleging a conspiracy to defraud Medicare of approximately $5.6 million for various diagnostic tests which were never performed or were not medically necessary, announced U.S. Attorney Kenneth Magidson.
August 12, 2015; U.S. Attorney; Eastern District of Louisiana: Bogalusa Chiropractor Sentenced for Health Care Fraud
U.S. Attorney Kenneth A. Polite announced that DAVID LEE KILLEN, age 44, a resident of Covington and a former chiropractor, was sentenced today after previously pleading guilty to health care fraud.
August 12, 2015; U.S. Attorney; Northern District of New York: Oswego Hospital And Physician Combine To Pay Over $1.5 Million To Resolve Billing Improprieties Self-Disclosed By The Hospital
SYRACUSE, NEW YORK - Oswego Hospital ("Oswego"), a 164-bed acute care community hospital located in Oswego, New York will pay $1,456,457.33 to resolve False Claims Act liability stemming from healthcare billing improprieties that the hospital selfdisclosed to the federal government, announced United States Attorney Richard S. Hartunian. Dr. Vilas Patil, a physician formerly working as an independent contractor with Oswego, has paid $204,365.97 to resolve False Claims Act liability in connection with a related investigation. Under the settlements, the United States will receive $1,026,790.89, and the State of New York, which also participated in the investigation, will receive $429,666.44.
August 12, 2015; U.S. Attorney; Eastern District of New York: Long Island Physicians Pay $1.1 Million To Resolve Civil Fraud Allegations That They Provided And Billed For Unnecessary Medical Testing
Dr. Vikas Desai (Desai), the principal of Desai MD, P.C. d/b/a East Islip Family Care (EIFC), and Dr. Robert Maccone, a physician who was previously affiliated with EIFC, have entered into separate civil settlement agreements in which they have collectively agreed to pay the United States a total of $1,120,299 to resolve allegations that they submitted claims to Medicare for nerve conduction studies (NCVs) that were not medically necessary.
August 11, 2015; U.S. Attorney; District of New Jersey: New York Doctor Charged With Taking Bribes In Test-Referral Scheme With New Jersey Clinical Lab
NEWARK, N.J. - A doctor with practices in Nassau County, New York, was charged today with accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
August 10, 2015; U.S. Attorney; District of New Jersey: Bergen County, New Jersey, Doctor Admits Billing For Bogus Office Visits, Altering Patient Medical Records
NEWARK, N.J. - A family medicine physician with offices in Cresskill and Little Falls, New Jersey, today admitted defrauding Medicare, Medicaid and private insurance companies out of hundreds of thousands of dollars by billing them for non-existent office visits, U.S. Attorney Paul J. Fishman announced.
August 7, 2015; U.S. Department of Justice: Miami-Area Pharmacy Owner Pleads Guilty to Role in $1.6 Million Medicare Fraud Scheme
A Miami-area pharmacy owner pleaded guilty today to submitting almost $1.6 million in fraudulent claims to Medicare.
August 6, 2015; U.S. Attorney; Northern District of Illinois: CEO Of Chicago-Based Health Care Company Charged With Billing Medicare For Phony And Non-Existent Treatment Of The Elderly In $1.2 Million Scheme
CHICAGO - The chief executive officer of Chicago-based Home Physician Services LLC was arrested Thursday on charges that he billed Medicare for up to $1.2 million in fraudulent or non-existent services purportedly provided to the elderly and homebound.
August 6, 2015; U.S. Attorney; District of Minnesota: Owner And Director Of Eden Prairie Daycare Center Sentenced For Theft Of Public Money
United States Attorney Andrew M. Luger today announced the sentencing of KHADRA ABDISAFAD HIRSI, 47, to one year and one day in federal prison for stealing money in the form of child care subsidies from the U.S. Department of Health and Human Services and the State of Minnesota. HIRSI was charged on January 23, 2015, and pleaded guilty on February 4, 2015, to one count of theft of public money. The defendant was sentenced today before Judge Donovan W. Frank in U.S. District Court in St. Paul, Minn.
August 5, 2015; U.S. Attorney; Eastern District of North Carolina: Pitt County Behavioral Health Businessman Pleads Guilty To Defrauding Medicaid After Threatening To Kill Witness
WILMINGTON - United States Attorney Thomas G. Walker announced that yesterday in federal court, TERRY LAMONT SPELLER, 37, of Winterville, North Carolina, pleaded guilty to Health Care Fraud and Engaging in Monetary Transactions Involving Criminally Derived Property.
August 5, 2015; U.S. Attorney; District of Massachusetts: Clinical Director of Home Care Agency Convicted of Health Care Fraud Scheme
BOSTON - The clinical director of a home nursing agency was convicted today in U.S. District Court in Boston following a four-day trial in connection with her role in a multi-million dollar scheme to defraud Medicare.
August 4, 2015; U.S. Attorney; Southern District of Georgia: Pediatric Services Of America And Related Entities To Pay $6.88 Million To Resolve False Claims Act Allegations
SAVANNAH - The U.S. Attorney's Office announced that Pediatric Services of America Healthcare, Pediatric Services of America, Inc., Pediatric Healthcare, Inc., Pediatric Home Nursing Services (collectively, "PSA"), and Portfolio Logic, LLC agreed to pay $6.88 million ($6,882,387) to resolve allegations that PSA, a provider of home nursing services to medically fragile children, knowingly (1) failed to disclose and return overpayments that it received from federal health care programs such as Medicare and Medicaid, (2) submitted claims under the Georgia Pediatric Program for home nursing care without documenting the requisite monthly supervisory visits by a registered nurse, and (3) submitted claims to federal health care programs that overstated the length of time their staff had provided services, which resulted in PSA being overpaid.
August 4, 2015; U.S. Attorney; Northern District of Texas: Ellis County Woman Admits Defrauding Medicaid
DALLAS - Alexis C. Norman, 47, of Midlothian, Texas, appeared in federal court this morning before U.S. Magistrate Judge David L. Horan and pleaded guilty to one count of health care fraud, announced John Parker, U.S. Attorney for the Northern District of Texas.
August 4, 2015; U.S. Attorney; District of South Carolina: Dr. Dong, GenPhar Inc., and Vaxima, Inc., Convicted of Fraud in Retrial Before U.S. District Court Judge David Norton
Columbia, South Carolina ---- United States Attorney William N. Nettles stated today that Dr. Jian Yun Dong, aka John Dong, and the companies which he founded, GenPhar Inc. and Vaxima Inc., were convicted of multiple fraud-based charges following a five day trial in Federal Court that took place June 22 through 25, 2015. The case was submitted for decision to Judge David C. Norton, who issued the verdicts and a written decision today. The case was retried before Judge Norton after a jury hearing the case last November could not reach unanimous verdicts on all counts, although it did find the two corporate defendants guilty of most of the charges. After the two trials, all three defendants have been found guilty of one count of Conspiracy to Commit Grant Fraud, Wire Fraud, Theft of Government Property and Providing False Statements; one count of Theft of Government Funds; and 22 counts of Wire Fraud.
August 3, 2015; U.S. Department of Justice: Los Angeles Pharmacist Sentenced to 18 Months in Prison for Medicare Part D Scheme
The owner and operator of a Los Angeles pharmacy was sentenced today to 18 months in prison for his role in a fraud scheme involving the Medicare Part D prescription drug program.

July 2015

July 31, 2015; U.S. Attorney; Northern District of Illinois: Former Chief Operating Officer Of Sacred Heart Hospital Sentenced To 21 Months In Prison For Conspiring In Kickback Scheme
CHICAGO - The former chief operating officer of Sacred Heart Hospital was sentenced Friday to 21 months in prison for arranging payoffs to doctors in exchange for referring patients to the now-shuttered facility on Chicago's West Side.
July 31, 2015; U.S. Attorney; Southern District of Texas: McAllen Area Doctor's Assistant Convicted in Illegal Kickback Scheme
McALLEN, Texas - Argentina Cavazos, 57, has pleaded guilty to illegal remunerations for her role in a scheme to solicit and obtain illegal kickbacks in exchange for patient referrals, announced U.S. Attorney Kenneth Magidson.
July 30, 2015; U.S. Department of Justice: Medical Device Manufacturer NuVasive Inc. to Pay $13.5 Million to Settle False Claims Act Allegations
California-based medical device manufacturer NuVasive Inc. has agreed to pay the United States $13.5 million to resolve allegations that the company caused health care providers to submit false claims to Medicare and other federal health care programs for spine surgeries by marketing the company's CoRoent System for surgical uses that were not approved by the U.S. Food and Drug Administration (FDA), the Justice Department announced today. The settlement further resolves allegations that NuVasive caused false claims by paying kickbacks to induce physicians to use the company's CoRoent System.
July 29, 2015; U.S. Attorney; District of New Jersey: Jersey City, New Jersey, Pediatrician Sentenced To 21 Months In Prison For Billing Medicaid or Bogus Treatments
TRENTON, N.J. - A licensed pediatrician practicing in Jersey City, New Jersey, was sentenced today to 21 months in prison for fraudulently billing Medicaid for more than 1,000 wound repair procedures that were never performed, U.S. Attorney Paul J. Fishman announced.
July 28, 2015; U.S. Attorney; Western District of Oklahoma: Hospice Company Owner Sentenced to Serve Three Years in Prison and Pay Over $2.5 Million in Restitution for Medicare Fraud
Oklahoma City, Oklahoma - PAULA KLUDING, 39, from Chandler, Oklahoma, the owner of Prairie View Hospice, Inc., an Oklahoma corporation located in Chandler, was sentenced by United States District Judge Robin Cauthron to serve three years in prison for committing Medicare fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. As part of her sentence, Kluding was also ordered to pay $2,519,813.33 in restitution to Medicare. Kluding will also spend three years on supervised release following her release from prison.
July 27, 2015; U.S. Attorney; Southern District of Texas: Austin Doctor Heads to Prison for Health Care Fraud
HOUSTON - Dr. Dennis B. Barson Jr., 42, has been ordered to federal prison following his convictions related to a conspiracy to defraud Medicare of $2.1 million in less than two months, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Barson and his medical clinic administrator, Dario Juarez, 55, on Nov. 5, 2014, of all 20 counts charged. Co-defendant Edgar Shakbazyan entered a guilty plea to the 21-count indictment on Oct. 27, 2014.
July 27, 2015; U.S. Department of Justice: Detroit-Area Home Health Care Agency Owners Convicted in $33 Million Medicare Fraud Scheme
Two home health care agency owners were convicted today of various offenses based on their roles in a $33 million Medicare fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department's Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI's Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services-Office of Inspector General's (HHS-OIG) Chicago Regional Office.
July 24, 2015; U.S. Department of Justice: Owner of Detroit Home Health Care Companies Sentenced to 80 Months in Prison for Role in $12.6 Million Fraud Scheme
A Michigan resident was sentenced to 80 months in prison late yesterday for his leading role in a $12.6 million Medicare fraud and tax fraud scheme. Eleven other individuals have been convicted in this case.
July 24, 2015; U.S. Attorney; Eastern District of California: Stockton Oncologist Pays $736,000 to Resolve False Claims Act Allegations
SACRAMENTO, Calif.- A Stockton oncologist has paid the United States $736,000 to settle allegations that he improperly billed Medicare, Medicaid, and Tricare for certain chemotherapy drugs purchased from an unlicensed foreign pharmaceutical distributor, United States Attorney Benjamin B. Wagner announced today.
July 24, 2015; U.S. Attorney; Eastern District of New York: Board Certified Obstetrician And Gynecologist Agrees To Civil Fraud Settlement In Conjunction With Deferred Prosecution In Medicare And Medicaid Fraud Investigation
The United States and New York State have entered into a civil settlement agreement with Haroutyoun Margossian, a Board Certified Obstetrician and Gynecologist (OB/GYN). Margossian maintains an OB/GYN subspecialty in urogynecology and is the sole practitioner at NY Urogynecology & Reconstructive Pelvic Surgery, P.C. with a main office located in Brooklyn. The agreement resolves an investigation under the federal False Claims Act and the New York False Claims Act involving allegations that, in contravention of Medicare and Medicaid regulations, Margossian utilized an unlicensed and often unsupervised staff to treat women suffering from urinary incontinence. Under the terms of the civil settlement agreement, Margossian will pay a total of $8,047,291.06. Contemporaneously with the execution of the civil settlement agreement, the government filed a criminal charge against Margossian for making false statements to Medicare and entered into a deferred prosecution agreement with him.
July 24, 2015; U.S. Attorney; Northern District of Texas: Dallas County Woman Admits Defrauding Medicaid
DALLAS- Brenda Ward, 47, of Cedar Hill, Texas, appeared in federal court this morning before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to one count of health care fraud, announced John Parker, U.S. Attorney for the Northern District of Texas.
July 23, 2015; U.S. Department of Justice: Miami-Area Pharmacy Owner Pleads Guilty to Role in $1.8 Million Medicare Fraud Scheme
A Miami-area pharmacy owner pleaded guilty today for his role in the submission of more than $1.8 million in fraudulent claims to Medicare.
July 22, 2015; U.S. Attorney; District of New Jersey: Doctor Sentenced To 21 Months In Prison For Taking Bribes As Part Of Test-Referral Scheme With New Jersey Clinical Lab
NEWARK, N.J. - A Middlesex County doctor with practices in Jersey City, New Jersey, was sentenced today to 21 months in prison for accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
July 20, 2015; U.S. Attorney; Central District of California: Key Member of Scheme that Illegally Sought $20 Million Worth of Expensive Anti-Psychotic Drugs Sentenced to 15 Years in Prison
LOS ANGELES - One of the leaders of a conspiracy linked to a sham Glendale medical clinic was sentenced today to 15 years in federal prison for his role in a $20 million scheme to defraud Medicare and Medi-Cal by, among other things, fraudulently prescribing expensive anti-psychotic medications and then re-billing the government for those drugs over and over.
July 20, 2015; U.S. Attorney; Eastern District of Pennsylvania: Civil Complaint Alleges Fraud By Operators Of Community Mental Health Clinics
PHILADELPHIA - On July 20, 2015, the U.S. Attorney's Office for the Eastern District of Pennsylvania filed a civil health care fraud lawsuit under the False Claims Act against Melchor Martinez, Melissa Chlebowski, both of Allentown, PA, and their businesses Northeast Community Mental Health Centers (in Philadelphia), Lehigh Valley Community Mental Health Centers (in Allentown, Easton and Bethlehem), and North Carolina Community Mental Health Centers (in Raleigh, North Carolina). The institutional defendants are community mental health clinics funded largely by Medicaid and Medicare. The lawsuit was announced by United States Attorney Zane David Memeger.
July 16, 2015; U.S. Department of Justice: Superseding Indictment Adds Charges and Members of the Pagans to Pill Mill Case Against Pennsylvania Doctor
A superseding indictment was unsealed today charging William J. O'Brien III, a doctor of osteopathic medicine, with causing a death through the illegal distribution of a controlled substance and charges eight new defendants with O'Brien in a second conspiracy to distribute controlled substances. The superseding indictment also charges O'Brien with 95 additional counts of distribution of controlled substances - oxycodone, methadone and amphetamines and charges O'Brien and his ex-wife, a ninth defendant, Elizabeth Hibbs, 54, with money laundering, bankruptcy fraud and making false statements under oath in a bankruptcy proceeding.
July 15, 2015; U.S. Attorney; Western District of Missouri: Former Joplin Oncologist Sentenced for Dispensing Foreign, Misbranded Drugs
SPRINGFIELD, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an oncologist who operated a clinic in Joplin, Mo., was sentenced in federal court today for dispensing foreign, misbranded drugs to his cancer patients.
July 13, 2015; U.S. Attorney; District of Connecticut: Ridgefield Physician Sentenced to Prison for Health Care Fraud, Pays $270K in False Claims Act Settlement
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID LESTER JOHNSTON, 46, of Ridgefield, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to three months of imprisonment, followed by three years of supervised release, the first six months of which must be served in home confinement, for committing health care fraud. JOHNSTON also was ordered to perform 150 hours of community service.
July 10, 2015; U.S. Department of Justice: Detroit Area Doctor Sentenced to 45 Years in Prison for Providing Medically Unnecessary Chemotherapy to Patients
A Detroit area hematologist-oncologist was sentenced today to serve 45 years in prison for his role in a health care fraud scheme that included administering medically unnecessary infusions or injections to 553 individual patients and submitting to Medicare and private insurance companies approximately $34 million in fraudulent claims.
July 10, 2015; U.S. Attorney; Southern District of Florida: Sunrise Man Sentenced to 20 Years in Prison for Payroll Tax Fraud Scheme
Sonny Austin Ramdeo, 35, of Sunrise, was sentenced today to 240 months in prison, followed by 3 years of supervised release in connection with a $20 million federal payroll tax fraud scheme. Ramdeo was also ordered to pay restitution in the amount of $21,442,173.
July 9, 2015; U.S. Attorney; District of Nevada: Former Owner Of Las Vegas Endoscopy Center, Dipak Desai, Sentenced To 71 Months In Federal Prison For Fraud Conviction
LAS VEGAS, Nev. - Dipak Desai, the former physician owner of a defunct Nevada endoscopy center, was sentenced today to 71 months in federal prison, three years of supervised release, and ordered to pay over $2.2 million in restitution for defrauding Medicare, Medicaid and other private health insurance companies by inflating and overcharging for anesthesia services, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
July 8, 2015; U.S. Department of Justice: Doctor Sentenced to 63 Months in Prison for Accepting $1.8 Million in Bribes for Test Referrals
A Morris County, New Jersey, doctor was sentenced today to 63 months in prison for accepting $1.8 million in bribes to refer millions of dollars in business to Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, as part of a long-running scheme operated by the lab, its president and numerous associates, U.S. Attorney Paul J. Fishman for the District of New Jersey announced.
July 7, 2015; U.S. Attorney; District of Massachusetts: Former Warner Chilcott Sales Manager Pleads Guilty to Conspiracy to Commit Health Care Fraud
BOSTON - A former district manager of Warner Chilcott Sales U.S., LLC (Warner Chilcott), a pharmaceutical company based in Rockaway, N.J., pleaded guilty today in U.S. District Court in Boston in connection with a scheme to deceive insurance companies and Medicare so that they would cover the costs of Warner Chilcott's osteoporosis medications, Actonel and Atelvia.
July 7, 2015; U.S. Attorney; Eastern District of Kentucky: Home Health Agency Executive Director to Pay U.S. Government Over $1 Million To Settle Civil Claims
LEXINGTON - The executive director of a Lexington-based home health agency has agreed to pay the U.S. Government $1,082,416 to settle allegations that she provided unlawful compensation to physicians who referred patients to the agency.
July 6, 2015; U.S. Department of Justice: AstraZeneca and Cephalon to Pay $46.5 Million and $7.5 Million, Respectively, for Allegedly Underpaying Rebates Owed Under Medicaid Drug Rebate Program
AstraZeneca LP has agreed to pay the United States and participating states a total of $46.5 million, plus interest, to resolve allegations that it knowingly underpaid rebates owed under the Medicaid Drug Rebate Program, the Justice Department announced today. Of that amount, AstraZeneca will pay roughly $26.7 million, plus interest, to the United States, and the remainder to states participating in the settlement.
July 2, 2015; U.S. Attorney; Southern District of Florida: Government Settles False Claims Act Allegations Against American Access Care Holdings, LLC
American Access Care Holdings, LLC, which operated a vascular access center in Miami, has agreed to pay $1.2 million to resolve allegations that it violated the False Claims Act by billing Medicare for medically unnecessary percutaneous transluminal angioplasties (PTAs) and thrombectomies and by billing for more PTAs per patient encounter than permitted. Former American Access Care (AAC) facilities, including the one in Miami, are now operated by Fresenius Vascular Care, Inc. The conduct addressed by the settlement agreement took place prior to the merger between the two entities.
July 1, 2015; U.S. Attorney; Southern District of Florida: Five Individuals Sentenced for Their Role in Medicare and Medicaid Fraud Scheme in Florida, Nicaragua and the Dominican Republic
Five residents of Miami-Dade County and one resident of Nicaragua were sentenced yesterday for their participation in a $25.2 million Medicare, Medicaid, and wire fraud scheme. Erendira V. Delgado, a/k/a "Eren Delgado," 31, of Miami, Edgardo Rodriguez, 47, of Nicaragua, Rodney Montoya, 36, of Miami, Deborah Smith, 53, of Hialeah, and Augustin Abaga, 48, of Sunny Isles, were sentenced by U.S. District Court Judge Federico A. Moreno in Miami.
July 1, 2015; U.S. Attorney; District of New Mexico: Santa Fe Physician Arraigned on Federal Indictment Alleging Scheme to Defraud Medicare and Other Health Care Benefit Programs
ALBUQUERQUE - Roy G. Heilbron, 51, a cardiologist in Santa Fe, N.M., was arraigned in federal court in Albuquerque, N.M., on a 24-count indictment charging him with health care fraud and wire fraud, announced Damon P. Martinez and Special Agent Carol K.O. Lee of the FBI's Albuquerque Division. Heilbron entered a not guilty plea and was released on his own recognizance.

June 2015

June 30, 2015; U.S. Attorney; Southern District of Indiana

United States Attorney's Office recovers over twenty million dollars in case against Community Health Network
Josh J. Minkler, United States Attorney, announced today a $20,324,902.22 civil settlement with Community Health Network (ACHN), a non-profit health system with more than 200 sites of care and affiliates throughout the State of Indiana. The settlement will resolve allegations that CHN submitted false claims to the Medicare and Medicaid programs.

June 30, 2015; U.S. Attorney; Eastern District of Pennsylvania

Brotherly Love Ambulance Company Employee Pleads Guilty To Health Care Fraud Scheme
PHILADELPHIA - Fritzroy Brown, 38, of Philadelphia, PA, pleaded guilty today to conspiracy to commit health care fraud, false statements in a health care matter, and theft of government property. He faces a maximum possible statutory sentence of 25 years in prison, three years of supervised release, a $750,000 fine, and a $300 special assessment. U.S. District Court Judge William H. Yohn, Jr. scheduled a sentencing hearing for September 10, 2015.

June 30, 2015; U.S. Attorney; Eastern District of Missouri

United States Reaches Civil Settlement with Doctor and His Clinic for False Claims Submitted to Medicare and TRICARE
St. Louis, MO: The United States has reached a civil settlement with MOHAMMAD AKHTAR CHOUDHARY, M.D., and his company, ROLLA NEUROLOGY PAIN & SLEEP CENTER, LLC.

June 29, 2015; U.S. Department of Justice

Former Owner of Medical Equipment Supply Company Sentenced for $3.5 Million Medicare and Medi-Cal Fraud Scheme
The former owner of Ezcor Medical Supply was sentenced today to serve 97 months in prison for her role in a fraud scheme that resulted in $3.5 million in fraudulent claims to Medicare and Medi-Cal.

June 29, 2015; U.S. Attorney; Middle District of Florida

Miami Couple Sentenced For Operating Clinic To Defraud Medicare
Tampa, FL - U.S. District Judge Susan C. Bucklew sentenced a Miami couple today for their roles in operating a sham clinic. Gladys Fuertes (41) was sentenced to 19 years and 6 months in federal prison for engaging in a conspiracy to commit healthcare fraud, healthcare fraud, aggravated identity theft, and obstruction of a healthcare fraud investigation. Her husband and business partner, Mario Fuertes (41) was sentenced to 11 years and 3 months in federal prison for conspiracy to commit healthcare fraud, healthcare fraud, and obstruction of a healthcare fraud investigation. The Court also ordered them to forfeit $1,036,759.72, proceeds that are traceable to the charged conduct. The Fuerteses were convicted by a federal jury on March 24, 2015.

June 29, 2015; U.S. Attorney; Northern District of California

John Muir Health Agrees To Pay $550,000 To Resolve False Claims Allegations
SAN FRANCISCO - John Muir Health has agreed to pay the government $550,000 to resolve allegations that it submitted false claims for Medicare reimbursement, announced United States Attorney Melinda Haag, Department of Health and Human Services Office of Inspector General (OIG) Special Agent in Charge Ivan Negroni, and Federal Bureau of Investigation Special Agent in Charge David J. Johnson.

June 29, 2015; U.S. Attorney; District of New Jersey

Toms River, New Jersey, Sports Medicine Doctor Admits Accepting $60,000 In Cash Bribes For Prescription Referrals, Health Care Fraud
CAMDEN, N.J. - A sports medicine doctor with a practice in Toms River, New Jersey, today admitted accepting more than $60,000 in cash bribes in return for referring pain cream prescriptions and falsifying health records on behalf of Prescriptions R Us (PRU), a compound pharmacy in Lakewood, New Jersey, U.S. Attorney Paul J. Fishman announced.

June 29, 2015; U.S. Attorney; Southern District of Indiana

United States Attorney's Office recovers $1.5 million in case against home healthcare company
Josh J. Minkler, United States Attorney for the Southern District of Indiana, announced today a civil settlement with United Home Healthcare, Inc. and B&L; Personal Services, Inc. (known collectively as "United"). Both companies are located in Indianapolis and are owned and operated by Byron and Laura Harris. The settlement will result in a total payment of $1.5 million to the United States and the State of Indiana.

June 26, 2015; U.S. Department of Justice

Former OtisMed CEO Sentenced for Selling Unapproved Surgical Devices
The former president and CEO of OtisMed Corporation was sentenced today to serve two years in prison for intentionally distributing a medical device used in knee replacement surgery after its application for marketing clearance had been rejected by the Food and Drug Administration (FDA), the Department of Justice announced.

June 26, 2015; U.S. Attorney; Eastern District of Missouri

Local Physician Sentenced on Health Care Fraud Charges
St. Louis, MO - DR. DEVON GOLDING was sentenced yesterday to four months imprisonment and eight months home detention on multiple health care fraud related charges for billing for services not rendered and false statements involving a health care benefit plan. Dr. Golding will also have to pay over $145,000 in restitution.

June 24, 2015; U.S. Department of Justice

Owners of Orlando Health Care Clinic Plead Guilty to Engaging in $2.5 Million Medicare Fraud Scheme
Husband and wife owners of an Orlando health care clinic pleaded guilty today to engaging in a $2.5 million health care fraud scheme.

June 24, 2015; U.S. Attorney; Eastern District of New York

Long Island Doctor Pleads Guilty To Health Care Fraud And Obstruction Of Medicare Audit
Earlier today, at the federal courthouse in Central Islip, New York, Melvin Cwibeker, a doctor of chiropractic medicine from Nassau County, New York, pled guilty to healthcare fraud and obstruction of a federal audit, and he agreed to pay restitution and a $500,000 forfeiture.

June 23, 2015; U.S. Attorney; District of Connecticut

APRN Admits Receiving Kickbacks from Drug Company for Prescribing Pain Medication
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HEATHER ALFONSO, 42, of Middlebury, waived her right to indictment and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to receiving kickbacks in relation to a federal healthcare program.

June 18, 2015; U.S. Attorney; Western District of Tennessee

Nurse Practitioner Indicted for Identity Theft, Defrauding More Than $330,000 in Health Care Services
Jackson, TN - A nurse practitioner has been indicted for forging the signature of a physician on nearly 150 treatment forms, causing Medicare and TennCare to disburse more than $330,000 in payments for unauthorized services.

June 18, 2015; U.S. Department of Justice

National Medicare Fraud Takedown Results in Charges Against 243 Individuals for Approximately $712 Million in False Billing
Attorney General Loretta E. Lynch and Department of Health and Human Services (HHS) Secretary Sylvia Mathews Burwell announced today a nationwide sweep led by the Medicare Fraud Strike Force in 17 districts, resulting in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings. In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act. This coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants charged and loss amount.

HHS-OIG Fact Sheet
U.S. Department of Justice Documents
Video: Daniel R. Levinson's Gives Remarks at Health Care Fraud Takedown Press Conference
Related Report: Ensuring the Integrity of Medicare Part D (OEI-03-15-00180)
Related Report: Questionable Billing and Geographic Hotspots Point to Potential Fraud and Abuse in Medicare Part D (OEI-02-15-00190)

June 18, 2015; U.S. Department of Justice

Covenant Hospice Inc. to Pay $10.1 Million for Overcharging Medicare, Tricare and Medicaid for Hospice Services
On June 18, Covenant Hospice Inc. agreed to pay $10,149,374 to reimburse the government for alleged overbilling of Medicare, Tricare and Medicaid for hospice services, the Department of Justice announced today. Covenant Hospice Inc. is a non-profit hospice care provider which operates in Southern Alabama and the Florida Panhandle.

June 18, 2015; U.S. Attorney; District of Connecticut

Ridgefield Doctor Pays $218,633 to Settle Allegations under the False Claims Act
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that EDWARD BERMAN, MD, a physician with a practice in Ridgefield, has entered into a civil settlement with the government in which he will pay $218,633 to resolve allegations that BERMAN violated the False Claims Act.

June 18, 2015; U.S. Attorney; Eastern District of Pennsylvania

Health Care Fraud Sentence Handed Down
PHILADELPHIA - Jermaine Hairston, 40, of Philadelphia, PA, was sentenced today to 38 months in prison and three years of supervised release, for health care fraud and aggravated identity theft. Hairston stole the personal identifying information of an emergency room physician and used it to call in fake prescriptions for expensive medications in the names of individuals on medical assistance. Hairston, and others, would pick up the prescription medication, generating a claim to the patient's health insurance, and then sell the medication for cash.

June 18, 2015; U.S. Attorney; Western District of Tennessee

June 18, 2015; U.S. Attorney; Southern District of Illinois

United States Attorney Stephen R. Wigginton Announces "Home Alone IV" And Nationwide Takedown Of Health Care Scams
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) today announced indictments and arrests arising out of Operation Home Alone IV. The indictments are a fourth wave of charges targeting the abuse of a Medicaid program in Illinois that provides personal assistants to Medicaid recipients to assist them with general household activities and personal care. The program is intended for recipients under 60 years of age and is designed to reduce Medicaid expenditures by avoiding more expensive institutional care, including nursing home care.

June 18, 2015; U.S. Attorney; Northern District of Illinois

12 Charged In Chicago As Part Of Largest National Medicare Fraud Takedown In History
CHICAGO - Attorney General Loretta E. Lynch and Department of Health and Human Services (HHS) Secretary Sylvia Mathews Burwell announced today a nationwide takedown by Medicare Fraud Strike Force operations in 17 districts, resulting in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings. In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act. This coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants charged and loss amount. Zachary T. Fardon, United States Attorney for the Northern District of Illinois, announced thirteen defendants who were charged in four local cases as part of the national package.

June 18, 2015; U.S. Attorney; Southern District of Florida

Seventy-Three Charged in Southern District of Florida as Part of Largest National Medicare Fraud Takedown in History
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Attorney General Loretta E. Lynch, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Amy L. Parker, Assistant Special Agent in Charge, Eastern Region, U.S. Office of Personnel Management, Office of Inspector General (OPM-OIG), Pam Bondi, Florida Attorney General, and, David W. Bourne, Special Agent in Charge, U.S. Food and Drug Administration's (FDA) Office of Criminal Investigations, Miami Field Office, announce that seventy-three (73) South Florida residents were charged for their alleged participation in various schemes to defraud Medicare and Medicaid out of more than $262,567.878.

June 18, 2015; U.S. Attorney; Eastern District of Michigan

Sixteen Charged in Detroit Area as Part of Largest National Medicare Fraud Takedown in History
DETROIT, MI - Attorney General Loretta E. Lynch and Department of Health and Human Services (HHS) Secretary Sylvia Mathews Burwell announced today a nationwide sweep led by the Medicare Fraud Strike Force in 17 districts, resulting in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings. In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act. This coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants charged and loss amount.

June 18, 2015; U.S. Attorney; Eastern District of Louisiana

11 Individuals Operating 14 Companies Charged in New Orleans Fraud Schemes Amounting to Almost $110 Million in Fraud
Attorney General Loretta E. Lynch, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Michael Anderson of the FBI's New Orleans Field Office, and Special Agent in Charge Mike Fields of the U.S. Department of Health and Human Services Office of Inspector General's (HHS-OIG) Dallas Regional Office announced today that 11 individuals - including two doctors and a clinical psychologist - were charged for their roles in five separate fraud schemes based in New Orleans that, combined, submitted close to $110 million in fraudulent claims to Medicare.

June 18, 2015; U.S. Attorney; Western District of Kentucky

Twelve Charged In Western District Of Kentucky As Part Of Largest National Medicare Fraud Takedown In History
LOUISVILLE, Ky. - Acting United States Attorney John E. Kuhn, Jr. today announced the results of a health care fraud sweep in the Western District of Kentucky as part of the largest national Medicare fraud takedown led by the Justice Department and Department of Health and Human Services (HHS) Medicare Fraud Strike Force. The three day sweep, in the Western District of Kentucky, resulted in charges against 12 individuals, including three medical physicians, for their alleged participation in health care fraud schemes, involving approximately $7.8 million in fraudulent billings.

June 18, 2015; U.S. Attorney; Northern District of Ohio

Twelve charged for healthcare fraud violations totaling $28 million
Twelve people were charged in federal court this week as part of a nationwide sweep targeting healthcare fraud violations, law enforcement officials said.

June 18, 2015; U.S. Attorney; Northern District of Texas

Seven Charged in North Texas As Part Of Largest National Medicare Fraud Takedown In History
DALLAS - Attorney General Loretta E. Lynch and Department of Health and Human Services (HHS) Secretary Sylvia Mathews Burwell announced today a nationwide sweep led by the Medicare Fraud Strike Force in 17 districts, resulting in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings. In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act. This coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants charged and loss amount.

June 17, 2015; U.S. Attorney; Southern District of Florida

Florida Physician Agrees to Pay $4 Million and To Accept a 5-Year Exclusion From Medicare to Resolve False Claims Act Allegations
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, announced that Donald C. Proctor, Jr., M.D., a Mohs surgeon and facial plastic surgeon practicing in Vero Beach, Florida, and Grove Place Surgery Center, LLC, an ambulatory surgical center managed by Dr. Proctor, have agreed to pay $4 million to resolve allegations that they violated the False Claims Act by billing Medicare for Mohs surgeries and other surgical procedures that Dr. Proctor either did not perform or were medically unnecessary. Dr. Proctor also agreed to be excluded from Medicare, Medicaid, and all federally funded health care programs for at least five years.

June 17, 2015; U.S. Attorney; Southern District of New York

Manhattan U.S. Attorney Settles Civil Fraud Claims Against Inspire Pharmaceuticals, Inc. For Its Misleading Marketing Designed To Cause Prescriptions Of Azasite For Non-Fda Approved Uses
Preet Bharara, the United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General's ("HHS-OIG") New York Region, announced today that the United States has settled civil fraud claims under the False Claims Act and common law against INSPIRE PHARMACEUTICALS, INC. ("INSPIRE"). According to the allegations of the complaint, although the Food and Drug Administration ("FDA") had approved AzaSite only for the treatment of bacterial conjunctivitis, a bacterial infection of the eye more commonly known as pink eye, INSPIRE sought to generate more revenue by aggressively marketing the drug for the non-FDA-approved treatment of blepharitis, a different eye condition involving inflammation of the eyelids.

June 17, 2015; U.S. Attorney; Eastern District of Texas

Former Shelby County Hospital CFO Sentenced in EHR Incentive Case
TYLER, Texas - The former Chief Financial Officer of Shelby Regional Medical Center has been sentenced to federal prison in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

June 16, 2015; U.S. Attorney; Northern District of Texas

Registered Nurse Co-Owner of Ultimate Care Home Health Services, Inc. Pleads Guilty to Role in Healthcare Fraud Conspiracy
DALLAS - A 52-year-old registered nurse from Cedar Hill, Texas, who owned a home health company, appeared in federal court this afternoon and pleaded guilty to her role in a health care fraud conspiracy, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

June 16, 2015; U.S. Department of Justice

Florida Skilled Nursing Facility Agrees to Pay $17 Million to Resolve False Claims Act Allegations
Hebrew Homes Health Network Inc., its operating subsidiaries and affiliates, and William Zubkoff, the former president and executive director of Hebrew Homes Health Network Inc. (collectively Hebrew Homes), have agreed to pay $17 million to resolve allegations that Hebrew Homes violated the False Claims Act by improperly paying doctors for referrals of Medicare patients requiring skilled nursing care, the Department of Justice announced today. Hebrew Homes provided skilled nursing services at seven rehabilitation and skilled nursing facilities in Miami-Dade County, Florida. This is the largest settlement involving alleged violations of the Anti-Kickback Statute by skilled nursing facilities in the United States.

June 16, 2015; U.S. Attorney; Middle District of Florida

United States Settles False Claims Act Allegations Against Jacksonville-Based Home Health Company For $1,293,169
Jacksonville, Florida B United States Attorney A. Lee Bentley, III announces that the United States has settled allegations that a Jacksonville-based home health company knowingly billed the government for millions of dollars of medically unnecessary services by submitting false claims to Medicare. The allegations resolved include liability under the False Claims Act (FCA).

June 16, 2015; U.S. Attorney; Western District of Kentucky

Former Bowling Green Physician Charged With Conspiracy To Dispense Controlled Substances, Health Care Fraud And Money Laundering
BOWLING GREEN, Ky. - Acting U.S. Attorney John E. Kuhn, Jr. today announced the indictment of former Warren County, Kentucky, physician Charles Fred Gott on charges of conspiracy to distribute and dispense controlled substances during the course of his professional practice that were not for a legitimate medical purpose, health care fraud, and money laundering.

June 15, 2015; U.S. Department of Justice

Children's Hospital to Pay $12.9 Million to Settle False Claims Act Allegations
Children's Hospital, Children's National Medical Center Inc. and its affiliated entities (collectively CNMC) have agreed to pay $12.9 million to resolve allegations that they violated the False Claims Act by submitting false cost reports and other applications to the components and contractors of the Department of Health and Human Services (HHS), as well as to Virginia and District of Columbia Medicaid programs, the Department of Justice announced today. CNMC is based in Washington, D.C., and provides pediatric care throughout the metropolitan region.

June 12, 2015; U.S. Attorney; Middle District of Florida

United States Files Lawsuit Against Jacksonville-Based Ambulance Company
Jacksonville, Florida B United States Attorney A. Lee Bentley, III announces today that the United States has formally filed a lawsuit against Liberty Ambulance Services, Inc., a Jacksonville-based ambulance company. This lawsuit is brought pursuant to the False Claims Act and the Anti-Kickback Statute.

June 11, 2015; U.S. Attorney; Eastern District of Pennsylvania

Charge Of "Causing A Death" Added To Indictment Against Main Line Doctor
PHILADELPHIA - A superseding indictment was filed today against Dr. Jeffrey Bado, 59, of Philadelphia, PA, charging him with distribution of a controlled substance resulting in death and 82 additional counts of distribution of controlled substances. Bado, a doctor of Osteopathic Medicine, was first indicted on February 4, 2015 for the alleged illegal distribution of pain medications from his Philadelphia and Bryn Mawr medical offices. The superseding indictment also contains the original two counts of maintaining a drug-involved premises, 200 counts of illegally distributing oxycodone, a Schedule II controlled substance, outside the usual course of professional practice and for no legitimate medical purpose, 33 counts of health care fraud, and four counts of making false statements to federal agents.

June 11, 2015; U.s. Attorney; Northern District of Oklahoma

Settlement Reached in Medicare Fraud Lawsuit Against Tulsa Doctor and His Medical Clinic
TULSA, Okla.-United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma announced today that Jerome E. Block, M.D. and his clinic, Integrations Medical Clinic, have agreed to pay a total of $105,000 in civil penalties to settle allegations of submitting false Medicare claims to the United States.

June 9, 2015; U.S. Department of Justice

Former President of Riverside General Hospital Sentenced to 45 Years in Prison in $158 Million Medicare Fraud Scheme
The former president of a Houston hospital, his son and a co-conspirator were sentenced today to 45 years, 20 years and 12 years in prison, respectively, for their roles in a $158 million Medicare fraud scheme.

June 9, 2015; U.S. Attorney; Middle District of Georgia

United States Settles Kickback Allegations With Georgia Hospital
WASHINGTON - The Department of Justice announced today that the United States has settled a False Claims Act lawsuit with Health Management Associates (HMA) and Clearview Regional Medical Center for $595,155. The lawsuit filed in the Middle District of Georgia alleged that from 2008 to 2009 the hospital paid kickbacks to an obstetric clinic that served primarily undocumented Hispanic women, in return for referral of those patients for labor and delivery at the hospital. The hospital then billed the Medicaid program in Georgia for the services provided to the referred patients. Clearview, located in Monroe, Georgia, was named Walton Regional Medical Center and was owned by hospital operator HMA during the time period relevant to the lawsuit. Clearview is now owned by Community Health Systems (CHS), which purchased HMA in January 2014.

June 9, 2015; U.S. Attorney; Middle District of Florida

Collier County Man Sentenced To Six Years In Connection With Sunshine Pharmacy Health Care Fraud
Fort Myers, Florida - Senior United States District Judge John E. Steele has sentenced Adam Parrish (35, Naples) to six years in federal prison for conspiracy to commit health care fraud, aggravated identity theft, and improperly using a DEA Registration Number. He pleaded guilty on February 18, 2015.

June 5, 2015; U.S. Attorney; Western District of North Carolina

Six Charged In Health Care Fraud Scheme Targeting Medicaid
CHARLOTTE, N.C. - Six members of a health care fraud ring that targeted Medicaid by submitting approximately $10 million in fraudulent reimbursement claims have been charged with health care fraud conspiracy, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina.

June 5, 2015; U.S. Attorney; Northern District of Georgia

Atlanta Dentist to Pay Settlement to Resolve False Claims Act Allegations
ATLANTA - The United States Attorney's Office for the Northern District of Georgia announced that it has reached a settlement with Dennis Jaffe and Dennis B. Jaffe D.M.D., P.C., to pay $324,327.05 to settle health fraud claims -- specifically that Jaffe violated the False Claims Act by fraudulently billing Medicaid for tooth extraction procedures and for fraudulently billing for services rendered by a dental assistant when Jaffe was not present in the office. Under the terms of the settlement, Jaffe is also excluded from all federal and state healthcare programs.

June 4, 2015; U.S. Department of Justice

United States Settles Kickback Allegations with Georgia Hospital
The Department of Justice announced today that the United States has settled a False Claims Act lawsuit with Health Management Associates (HMA) and Clearview Regional Medical Center for $595,155. The lawsuit filed in the Middle District of Georgia alleged that from 2008 to 2009 the hospital paid kickbacks to an obstetric clinic that served primarily undocumented Hispanic women, in return for referral of those patients for labor and delivery at the hospital. The hospital then billed the Medicaid program in Georgia for the services provided to the referred patients. Clearview, located in Monroe, Georgia, was named Walton Regional Medical Center and was owned by hospital operator HMA during the time period relevant to the lawsuit. Clearview is now owned by Community Health Systems (CHS), which purchased HMA in January 2014.

June 4, 2015; U.S. Attorney; Middle District of Florida

Palm Harbor Oncologist Indicted For Buying Unapproved Cancer Medications From Foreign Sources And Defrauding Medicare
Tampa, Florida - United States Attorney A. Lee Bentley, III announces the unsealing of a twenty-one count indictment charging Dr. Anda Norbergs (59, Palm Harbor) with nine counts of receiving misbranded drugs in interstate commerce and twelve counts of health care fraud. If convicted, she faces up to three years in federal prison for each count of receiving misbranded drugs and up to ten years on each count of health care fraud. The indictment also notifies Dr. Norbergs that the United States is seeking a money judgment of at least $700,000, which is alleged to be proceeds of the offense.

June 3, 2015; U.S. Attorney; District of Idaho

California Man Pleads Guilty to Obtaining a Controlled Substance by Fraud and Billing Medicaid for a Fraudulent Prescription
BOISE - Michael James Lott, 32, of Roseville, California, pleaded guilty on June 3, 2015, to acquiring and obtaining a controlled substance by misrepresentation, fraud, and deception and false statement relating to health care matters, U.S. Attorney Wendy J. Olson announced. Lott was indicted by a federal grand Jury in Boise on January 13, 2015.

June 2, 2015; U.S. Attorney; Southern District of West Virginia

Ohio woman sentenced for defrauding Huntington medical provider
Huntington, W. Va. - Teresa Lewis, 60, of South Point, Ohio, was sentenced yesterday to a year and a day in federal prison for defrauding the Huntington Retina Center, where she worked, United States Attorney Booth Goodwin announced. Chief United States District Judge Robert C. Chambers imposed the sentence.

June 2, 2015; U.S. Attorney; District of New Jersey

Two New York Doctors Sentenced To Prison For Taking Bribes In Test-Referrals Scheme With New Jersey Clinical Lab
NEWARK, N.J. - Two doctors with a practice in New York were each sentenced today to 20 months in prison for accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.

June 1, 2015; U.S. Attorney; Middle District of Tennessee

Nashville-Based Friendship Home Healthcare And Related Companies Pay U.S. And Tennessee $6.5 Million To Resolve False Claims Act Lawsuit
A group of home health care companies collectively known as "Friendship" and the companies' owner Theophilus Egbujor paid $6.5 million, plus interest, to resolve allegations that they improperly billed TennCare, Medicare and TRICARE for home health services, announced David Rivera, United States Attorney for the Middle District of Tennessee. Friendship and its owner also agreed to be bound by the terms of a Corporate Integrity Agreement with the Department of Health and Human Services-Office of Inspector General (HHS-OIG) in an effort to avoid future fraud and compliance failures.

June 1, 2015; U.S. Attorney; Northern District of Illinois

Health Care Provider Sentenced To 75 Months For $2.5 Million Health Care Fraud
CHICAGO - A former owner and operator of Selectcare Health, Inc., a provider of outpatient physical and respiratory therapy located in Park Ridge and Skokie, was sentenced to federal prison for engaging in a $2.5 million health care fraud scheme. Ankur Roy, 38, of Miami Beach, Florida, was sentenced last Friday to 75 months in prison followed by 3 years of supervision after his release by U.S. District Court Judge Gary Feinerman.

May 2015

May 28, 2015; U.S. Attorney; District of New Jersey: Garden State Cardiovascular Specialists P.C. Agrees To Pay $3.6 Million For Allegedly Submitting False Claims To Federal Health Care Programs
NEWARK, N.J. - Garden State Cardiovascular Specialists P.C. (Garden State), a cardiology practice which owns and operates several facilities in New Jersey under the name NJ MedCare/NJ Heart, has agreed to pay more than $3.6 million to resolve allegations that its facilities falsely billed federal health care programs for tests that were not medically necessary, U.S. Attorney Paul J. Fishman announced today.
May 28, 2015; U.S. Attorney; Central District of California: Valley Duo that Bilked Medicare by Billing Nearly $2 Million for Unneeded Power Wheelchairs Found Guilty of Federal Fraud Charges
LOS ANGELES - A Los Angeles-area woman and man who were responsible for more than $1.8 million in fraudulent Medicare billings - almost entirely for medically unnecessary power wheelchairs - have been found guilty of health care fraud.
May 28, 2015; U.S. Attorney; District of Maryland: Pain Clinic Owners, Distributors and Runners Indicted for Allegedly Conspiring to Operate "Pill Mills"
Baltimore, Maryland - A federal grand jury has returned three indictments charging a total of 16 individuals with drug conspiracy and other charges for operating purported pain management clinics that the indictments allege were actually "pill mills." The indictments were returned on May 20, 2015, and unsealed late yesterday upon the arrest of eight defendants. In addition to yesterday's arrests, agents executed search warrants at 14 locations, including clinics, pharmacies and residences.
May 27, 2015; U.S. Department of Justice: Durable Medical Equipment Suppliers to Pay $7.5 Million to Resolve False Claims Act Allegations
Orbit Medical Inc. and Rehab Medical Inc. will pay $7.5 million to resolve allegations that Orbit submitted false claims to federal health care programs for power wheelchairs and accessories, the Justice Department announced today. Orbit Medical and Rehab Medical, a partial successor of Orbit, are durable medical equipment suppliers based in Salt Lake City, Utah and Indianapolis, Indiana, respectively.
May 27, 2015; U.S. Attorney; Northern District of Illinois: Chicago Area Psychologist Pleads In Nationwide Medicare Fraud Strike Force Takedown
CHICAGO - An area psychologist pled guilty today to engaging in a health care fraud scheme to defraud the Medicare program, federal law enforcement officials announced today. SHARON A. RINALDI, a licensed psychologist, was charged in a five-count indictment returned in October 2012 with defrauding Medicare by submitting thousands of false claims for providing psychotherapy services to Medicare beneficiaries residing in skilled nursing homes in the Chicago area. Rinaldi submitted false claims to Medicare seeking a total reimbursement of approximately $1.1 million and as a result of those false claims, Medicare paid Rinaldi at least $447,155 in funds to which she was not entitled. Rinaldi, 60, of Inverness, pled to one count of health care fraud before U.S. District Court Judge Robert M. Dow. Rinaldi also has agreed to forfeit of more than $100,000 that was seized from her home and a personal bank account in September 2012.
May 27, 2015; U.S. Attorney; District of Idaho: California Supplier of Oxycodone and Boise Heroin and Oxycodone Dealer Sentenced in Federal Court
BOISE - Ajellon Dedeaux, 27, of Rancho Cordova, California, was sentenced yesterday to 144 months in federal prison for distributing tens of thousands of oxycodone pills to Boise in a large scale drug trafficking conspiracy, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Dedeaux to pay a $1000 fine, serve five years of supervised release, and to forfeit $1,750,000 in drug proceeds.
May 27, 2015; U.S. Attorney; Middle District of Pennsylvania: Hamilton Health Center Agrees To Settlement Of Federal Civil Matter
HARRISBURG - The United States Attorney's Office for the Middle District of Pennsylvania announced that Hamilton Health Center, Inc., a federally qualified health center in Harrisburg, Pennsylvania, has agreed to pay the United States $270,000 to settle False Claims Act allegations. The settlement results from a self-disclosure by Hamilton to the Office of Inspector General of the U.S. Department of Health and Human Services (OIG) through the OIG's Provider Self-Disclosure Protocol.
May 27, 2015; U.S. Department of Justice: Owner of Los Angeles Medical Supply Company Sentenced to Seven Years in Prison for $3.3 Million Medicare Fraud Scheme
The former owner of a Los Angeles-based medical supply company was sentenced today to seven years in prison for his role in a fraud scheme that resulted in $3.3 million in fraudulent claims to Medicare.
May 26, 2015; U.S. Attorney; Northern District of Illinois: Lockport Pharmacist Indicted For Allegedly Falsely Billing $2.4 Million For Prescription Claims
CHICAGO - A southwest suburban pharmacist was indicted on federal charges for health care fraud, federal law enforcement officials announced today. The defendant, WALTER BEICH, the owner and licensed pharmacist at Lockport Pharmacy, Inc. operating as Corwin Pharmacy, was charged in a twelve-count indictment returned by a federal grand jury last week, alleging he participated in a scheme to defraud various health care benefit programs in the amount of $2,400,000. The indictment also charges Beich with aggravated identity theft for his use of patient and physician names and identifying information during his scheme. The indictment also seeks forfeiture in the amount of $2.4 million, the amount of the alleged loss to the health care providers. Beich, 61, of Lockport, Illinois, was arraigned in federal court this morning and was released on a $4,500 unsecured bond and is scheduled for a status in front of U.S. District Court Judge John W. Darrah on June 26, 2015.
May 22, 2015; U.S. Attorney; Northern District of New York: Central New York Doctor Sentenced To 18 Months Imprisonment
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced the sentencing today of Mahesh Kuthuru, age 43, a physician of a Utica and Fulton area pain management practice.
May 22, 2015; U.S. Department of Justice: Detroit-Area Neurosurgeon Admits Causing Serious Bodily Injury to Patients in $11 Million Health Care Fraud Scheme
A Detroit-area neurosurgeon pleaded guilty today in two separate criminal cases that resulted in serious bodily injury to his patients and more than $11 million in Medicare, Medicaid and private insurance companies.
May 21, 2015; U.S. Department of Justice: Assistant Administrator of Riverside General Hospital Sentenced to 40 Years in Prison for $116 Million Medicare Fraud Scheme
The former assistant administrator of Riverside General Hospital was sentenced today to 40 years in prison for his role in a $116 million Medicare fraud scheme. To date, 10 individuals have pleaded guilty or been convicted for their involvement in the scheme.
May 21, 2015; U.S. Attorney; Northern District of California: Watsonville Nursing Home Owners, Operators And Manager Agree To Pay $3.8 Million To Settle Allegations Of False Claims
SAN FRANCISCO - The owners, operators, and manager of two nursing homes in Watsonville, Calif., have agreed to pay $3.8 million to settle allegations that they submitted false claims to the United States, announced United States Attorney Melinda Haag, U.S. Department of Health and Human Services OIG (HHS-OIG) Special Agent in Charge Ivan Negroni, and Federal Bureau of Investigation Special Agent in Charge David J. Johnson.
May 21, 2015; U.S. Attorney; District of New Jersey: Owner Of Parsippany-Based Diagnostic Testing Facility
NEWARK, N.J. - A Morris County, New Jersey, man was sentenced today to 12 months in prison for his role in a scheme to bill for diagnostic testing services he did not render and to enable a cardiologist to evade the Medicare program's pre-payment review of his claims, U.S. Attorney Paul J. Fishman announced.
May 20, 2015; U.S. Department of Justice: Physician Pleads Guilty For Role in Detroit-Area Medicare Fraud Scheme
A licensed physician and former owner of a Detroit-area medical practice pleaded guilty today for his role in a $4.2 million health care fraud scheme.
May 20, 2015; U.S. Department of Justice: Medco to Pay $7.9 Million to Resolve Kickback Allegations
Medco Health Solutions Inc., a wholly-owned subsidiary of the pharmacy benefit manager Express Scripts Holding Company, of Missouri, has agreed to pay the government $7.9 million to settle allegations that it engaged in a kickback scheme in violation of the False Claims Act, the Justice Department announced today. Medco provides pharmacy benefit management services to clients who receive subsidies under the Medicare Retiree Drug Subsidy program.
May 20, 2015; U.S. Department of Justice: Government Settles False Claims Act Allegations against Florida Neurologist for $150,000
Dr. Sean Orr of Jacksonville, Florida, has agreed to pay $150,000 to settle allegations that he violated the False Claims Act by providing medically unnecessary services and drugs to federal health care program beneficiaries, the Department of Justice announced today. Dr. Orr is a neurologist formerly employed by Baptist Neurology Inc. and Baptist Medical Center-Jacksonville.
May 19, 2015; U.S. Attorney; District of Maryland: Pharmacy Owner Sentenced for Conspiracy to Distribute Contraband Cigarettes, Health Care Fraud, and Receiving and Distributing Misbranded Drugs
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced the owner of Health Way Pharmacy, Salim Yusufov, age 43, of Reisterstown, Maryland, today to 12 months home confinement as part of four years' probation, for a conspiracy to traffic over $6.6 million in contraband cigarettes, health care fraud, and receipt and delivery of misbranded drugs. Judge Quarles also ordered Yusufov to forfeit $200,000.
May 19, 2015; U.S. Attorney; District of Idaho: Twin Falls Former Pharmacy Technician Sentenced for Diverting Controlled Substances
BOISE - Krista Federer, 46, of Twin Falls, Idaho, was sentenced today to 12 months and one day in prison for distributing a controlled substance, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Federer to serve three years of supervised release, and to pay a $1,000 fine.
May 18, 2015; U.S. Department of Justice: Administrator and Biller of Illinois Physician Group Convicted in $4.5 Million Medicare Fraud Scheme
A federal jury in Chicago on May 15, 2015, convicted the administrator and biller of a Schaumburg, Illinois, in-home visiting physician group for their participation in a $4.5 million health care fraud scheme that included billing Medicare for services rendered to patients who were dead and services rendered by medical professionals who worked over 24 hours in a day.
May 15, 2015; U.S. Attorney; Southern District of Illinois: Marion Woman Sentenced For Healthcare Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today, that Charlietta M. Lee, 51, of Marion, Illinois, was sentenced for engaging in a scheme to commit health care fraud by defrauding the Home Services Program, which is a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home.
May 15, 2015; U.S. Attorney; District of New Jersey: New Jersey Doctor Sentenced To 14 Months In Prison For Taking Bribes In Test-Referrals Scheme Involving New Jersey Clinical Lab
NEWARK, N.J. - A doctor with a medical practice in Montclair, New Jersey, was sentenced today to 14 months in prison for accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
May 14, 2015; U.S. Department of Justice: Long-Term Care Pharmacy to Pay $31.5 Million to Settle Lawsuit Alleging Violations of Controlled Substances Act and False Claims Act
PharMerica Corporation has agreed to pay the United States $31.5 million to resolve a lawsuit alleging that they violated the Controlled Substances Act by dispensing Schedule II controlled drugs without a valid prescription and violated the False Claims Act by submitting false claims to Medicare for these improperly dispensed drugs, the Justice Department announced today.
May 14, 2015; U.S. Department of Justice: New Orleans Jury Convicts Two Doctors, a Nurse and an Office Manager for Roles in $50 Million Fraud Scheme
A jury in New Orleans convicted four employees of medical service clinics yesterday for their roles in a $50 million Medicare fraud scheme.
May 14, 2015; U.S. Attorney; District of Connecticut: Ambulance Companies Pay $595,000 to Settle Allegations of Medically Unnecessary Ambulance Transportation
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EFK OF CONNECTICUT, INC., d/b/a NELSON AMBULANCE SERVICE, located in North Haven, and SKMP ENTERPRISES, INC., d/b/a ACCESS AMBULANCE SERVICE, located in Bridgeport, have entered into a civil settlement agreement with the government in which they will pay $595,000 to resolve allegations that they improperly billed the Medicare and Medicaid programs.
May 14, 2015; U.S. Attorney; Southern District of New York: Manhattan U.S. Attorney Settles Civil Fraud Claims Against Westchester Medical Center Arising From Its Violations Of The Anti-Kickback Statute And The Stark Law
Preet Bharara, the United States Attorney for the Southern District of New York, Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General's ("HHS-OIG") New York Region, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation ("FBI"), announced today that the United States has settled civil fraud claims under the False Claims Act against WESTCHESTER COUNTY HEALTH CARE CORPORATION d/b/a WESTCHESTER MEDICAL CENTER ("WMC") related to WMC's alleged violations of the Anti-Kickback Statute and the Stark Law and submission of costs reports to Medicare seeking reimbursement for charges WMC did not incur. In connection with the settlement, which was approved by U.S. District Judge Lewis A. Kaplan on May 14, 2015, the defendant agreed to pay a total of $18,800,000 to resolve its liabilities, and made admissions as to its conduct.
May 14, 2015; U.S. Attorney; Western District of Pennsylvania: Pennsylvania Physician Sentenced to Prison for False Tax Returns, Healthcare Fraud
JOHNSTOWN, Pa. - A resident of the Dominican Republic, has been sentenced in federal court to one year and one day in prison and ordered to pay restitution of $121,000 to Highmark Blue Cross/Blue Shield on his conviction of filing false individual and corporate tax returns and health care fraud, United States Attorney David J. Hickton announced today.
May 13, 2015; U.S. Department of Justice: Southern California Medical Supply Company Owner Sentenced to Four Years in Prison for $8.3 Million Medicare Fraud Scheme
A registered nurse who owned a medical supply company was sentenced today in Los Angeles to four years in federal prison for her role in an $8.3 million Medicare fraud scheme.
May 12, 2015; U.S. Department of Justice: Owner of Miami Home Health Care Company Sentenced to 10 Years in Prison for Lead Role in $13 Million Medicare Fraud Scheme
An owner of a Miami home health care company was sentenced today to 10 years in prison for his leading role in a $13 million Medicare fraud scheme that involved paying kickbacks and bribes to patient recruiters, Medicare beneficiaries and others in South Florida doctors' offices and medical clinics.
May 12, 2015; Northern District of California: United States Joins Lawsuit Against Bay Area Sleep Clinics
SAN JOSE - The United States has joined a whistleblower action pending in the Northern District of California against the owners and operators of Bay Sleep Clinic and their related businesses, Qualium Corporation and Amerimed Corporation, announced United States Attorney Melinda Haag and U.S. Department of Health and Human Services Special Agent in Charge, Ivan Negroni.
May 12, 2015; Western District of Louisiana: Shreveport woman sentenced to 27 months in prison for health care fraud, wire fraud
SHREVEPORT, La. - United States Attorney Stephanie A. Finley announced that the owner and operator of a Shreveport intensive outpatient program company was sentenced Monday to 27 months in prison for charging Medicare for services never rendered.
May 11, 2015; U.S. Attorney; Eastern District of Pennsylvania: United States Sues Supply Company And Delaware County Couple For Healthcare Fraud
PHILADELPHIA - The United States filed a civil healthcare fraud lawsuit today against John M. Hastings and Sarah Cintron Hastings, of Drexel Hill, Pennsylvania, and their medical supply company, Diabetic Care Solutions, Inc. The complaint, announced by United States Attorney Zane David Memeger, alleges that the couple operated the company in an attempt to bypass Hastings' exclusion from the Medicare program.
May 8, 2015; U.S. Department of Justice: Dallas Physician and His Employee Arrested for Alleged $5.2 Million Medicare Fraud Scheme
A physician who ran a medical house call service business in Dallas, and an employee of that business were arrested this morning on charges related to their alleged participation in a $5.2 million health care fraud scheme.
May 8, 2015; Middle District of Florida: United States Settles False Claims Act Allegations Against Multiple Jacksonville Hospitals And An Ambulance Company For $7.5 Million
Jacksonville, FL - United States Attorney A. Lee Bentley, III announces that the United States has settled allegations that nine hospitals in Jacksonville had a practice of routinely ordering basic life support ambulances when this type of transport was not medically necessary. The United States has also settled allegations with an ambulance company for its role in submitting millions of dollars of false claims to federal healthcare programs. The allegations resolved included liability under the False Claims Act (FCA).
May 7, 2015; U.S. Department of Justice: Sixteen Hospitals to Pay $15.69 Million to Resolve False Claims Act Allegations Involving Medically Unnecessary Psychotherapy Services
The Justice Department announced today that 16 separate hospitals and their respective corporate parents have agreed to collectively pay $15.69 million to resolve False Claims Act allegations that the providers sought and received reimbursement from Medicare for services that were not medically reasonable or necessary, the U.S. Department of Justice announced today.
May 7, 2015; U.S. Attorney; Eastern District of Pennsylvania: Medicare Beneficiary Pleads Guilty In Ambulance Fraud Scheme
PHILADELPHIA - Keisha Regusters, 38, of Philadelphia, PA, pleaded guilty today to a fraud scheme involving kickbacks from an ambulance company. U.S. District Court Judge William H. Yohn, Jr. scheduled a sentencing hearing for August 11, 2015. Regusters faces a possible advisory sentencing guideline range of six to 12 months in prison, up to three years of supervised release, restitution, a fine of up to $500,000, and a $200 special assessment.
May 6, 2015; U.S. Department of Justice: Houston Doctor and Group Home Owner Indicted for Alleged Roles in $5.2 Million Medicare Fraud Scheme
A Houston doctor and a group home owner were arrested on charges related to their alleged participation in a $5.2 million Medicare fraud scheme involving false claims for mental health treatment.
May 6, 2015; U.S. Attorney; District of Connecticut: State Fraud Enforcement Official Arrested, Charged with Wire Fraud
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LYNWOOD PATRICK, JR., 39, of East Hartford, was arrested today on a federal criminal complaint charging him with wire fraud in connection with his submission of a fraudulent application for a personal mortgage modification.
May 6, 2015; U.S. Attorney; Eastern District of North Carolina: Pharmacy Company Agreed To Pay $5 Million To Settle Claims That It Gave Gift Cards And Waived Copayments For Medicare And Medicaid Patients In Violation Of The Anti-Kickback Statute
RALEIGH - United States Attorney Thomas G. Walker announced that Physician Pharmacy Alliance, Inc., ("PPA"), agreed to pay $5 Million to settle claims that, under prior ownership, PPA gave improper gift cards in order to induce referrals or enrollments of Medicare and Medicaid patients, and routinely waived copayments of Medicare and Medicaid patients, in violation of the Anti-kickback statute.
May 6, 2015; U.S. Attorney; Southern District of New York: Manhattan U.S. Attorney Settles Civil Fraud Claims Against Vascular Surgery Clinic And Surgeon For Fraudulently Billing Medicare For Nonreimbursable Vascular Surgery Procedures
Preet Bharara, the United States Attorney for the Southern District of New York, and Scott Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General's ("HHS-OIG") New York Region, announced today that the United States has settled civil fraud claims under the False Claims Act against MATTOO & BHAT MEDICAL ASSOCIATES, P.C. ("MBPC") and DR. FENG QIN ("DR. QIN") related to MBPC's submission of fraudulent claims for reimbursement by Medicare for vascular surgical procedures that are not covered under Medicare. In connection with the settlement, which was approved by U.S. District Judge Louis L. Stanton on May 1, 2015, the defendants agreed to pay a total of $1,150,000 to resolve their liabilities.
May 5, 2015; U.S. Attorney; Southern District of New York: Manhattan U.S. Attorney Announces Conviction Of Doctor And Owner Of Bronx Clinic Involved In Illegal Distribution Of More Than Five Million Oxycodone Pills
Preet Bharara, the United States Attorney for the Southern District of New York, announced the conviction of KEVIN LOWE, the owner of "Astramed," a purported medical clinic with multiple locations in the Bronx, New York, and from which more than five million tablets of the prescription painkiller oxycodone were unlawfully distributed over a three-year period. LOWE was convicted yesterday following a two-week jury trial presided over by U.S. District Judge Lorna G. Schofield.
May 5, 2015; U.S. Attorney; District of New Jersey: Two Doctors Each Sentenced to 37 Months in Prison for Taking Bribes in Test-Referrals Scheme with New Jersey Clinical Lab
NEWARK, N.J. - Two doctors were sentenced to prison today for accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
May 4, 2015; U.S. Attorney; District of Columbia: Durable Medical Equipment Supplier to Pay United States $300,000 To Resolve False Claims Allegations
WASHINGTON - American Rehab Equipment Company, formerly known as Patients First Medical Equipment Company, has agreed to pay the United States and the District of Columbia a total of $300,000 to settle allegations that it violated the False Claims Act by overcharging the District of Columbia Medicaid Program for custom power wheelchairs provided to residents of nursing facilities.
May 4, 2015; U.S. Attorney; Southern District of California: Five Southern California Ambulance Companies to Pay More Than $11.5 Million to Resolve Kickback Allegations
SAN DIEGO - In a lawsuit unsealed in federal court today, five ambulance companies have entered into civil settlements with the Department of Justice requiring them to collectively pay more than $11.5 million in payments to the United States to resolve kickback allegations.
May 4, 2015; U.S. Attorney; District of Nevada: Endoscopy Center Ceo Sentenced For Billing Fraud Scheme
LAS VEGAS, Nev. - Tonya Rushing, former CEO of the now-defunct Endoscopy Center of Southern Nevada, was sentenced today by Senior U.S. District Judge Larry R. Hicks to one year and one day in prison for conspiring with Dipak Desai, the former owner of the center, to commit health care fraud, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
May 1, 2015; U.S. Attorney; Southern District of New York: Manhattan U.S. Attorney Announces $60 Million Civil Fraud Settlement With Accredo Health Group Over Kickback Scheme Involving Prescription Drug
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation ("FBI"), and Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General's New York Regional Office ("HHS-OIG") announced yesterday a $60 million settlement of a civil fraud lawsuit against ACCREDO HEALTH GROUP ("ACCREDO") concerning a kickback scheme with NOVARTIS PHARMACEUTICALS CORP. ("NOVARTIS") involving the prescription drug Exjade. In addition to filing a Notice of Intervention against and Stipulation and Order of Settlement and Dismissal with ACCREDO, the Government has elected to intervene against NOVARTIS over the same conduct previously filed by a whistleblower. As alleged in the lawsuit, NOVARTIS provided kickbacks, in the form of patient referrals and related benefits, to ACCREDO in exchange for ACCREDO's recommending refills to Exjade patients. In connection with the scheme, the defendants understated the serious and potentially life-threatening side effects of Exjade when promoting the drug's benefits to patients.

April 2015

April 30, 2015; U.S. Department of Justice: Miami-Area Physician Sentenced to 60 Months in Prison for Role in $5.5 Million Medicare Fraud Scheme
A Miami-area medical doctor was sentenced today to 60 months in prison for his role in a $5.5 million Medicare fraud scheme involving fraudulent billings by a psychiatric hospital in Hollywood, Florida.
April 30, 2015; U.S. Attorney; Central District of California: Hawthorne Woman Sentenced to 6½ Years in Federal Prison for Running Wheelchair Scam that Cost Medicare Nearly $3.5 Million
LOS ANGELES - A Hawthorne woman who ran a company that submitted more than $7 million in fraudulent claims to Medicare - primarily for power wheelchairs that were not needed by patients - and caused the government health insurance program to lose nearly $3.5 million has been sentenced to 78 months in federal prison.
April 30, 2015; U.S. Attorney; District of Massachusetts: Maine Nursing Home Operator to Pay $300,000 to Resolve Allegations Concerning Claims for Rehabilitation Therapy
BOSTON - A skilled nursing facility operator in Maine, Rousseau Management, Inc., entered into an agreement with the United States to pay $300,000 to resolve allegations concerning inflated Medicare claims.
April 29, 2015; U.S. Attorney; Middle District of Georgia: Hospital Authority Of Irwin County Resolves False Claims Act Investigation For $520,000
Michael J. Moore, United States Attorney for the Middle District of Georgia, and Samuel S. Olens, Attorney General for the State of Georgia, announced today they have reached a civil settlement with the Hospital Authority of Irwin County (ICH), Dr. Mahendra Amin, Dr. Ashfaq Saiyed, Dr. Romana Bairan, Dr. Arturo Ruanto, Dr. Concordio Ursal, Dr. Drew Howard, Dr. Steve Anderson, Dr. Robert Reese, and Dr. Marshall Tanner. The Defendants agreed to pay $520,000 to resolve allegations that they caused false claims to be submitted to Medicare and Medicaid.
April 29, 2015; U.S. Attorney; District of New Jersey: New Jersey Doctor Sentenced To One Year And One Day In Prison For Taking Bribes In Test-Referral Scheme With New Jersey Clinical Lab
NEWARK, N.J. - A doctor with practices in Wall Township and Howell Township, New Jersey, was sentenced today to one year and one day in prison for accepting bribes 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.
April 27, 2015; U.S. Department of Justice: Georgia Hospital to Pay $20 Million to Resolve False Claims Act Allegations
The Medical Center of Central Georgia (MCCG) has agreed to pay $20 million to settle allegations that the hospital violated the False Claims Act by billing Medicare for more expensive inpatient services that should have been billed as less costly outpatient or observation services, the Justice Department announced today. MCCG is located in Macon, Georgia, and is the second largest hospital in the state.
April 27, 2015; U.S. Attorney; Northern District of Alabama: Former Community Health Clinic CFO Pleads Guilty in Scheme to Defraud Millions from Government
BIRMINGHAM -- The former financial officer of two non-profit health clinics in Alabama for the poor and homeless pleaded guilty today to multiple federal charges related to a scheme to defraud millions of dollars from the clinics and the federal government health agencies that provide most of their funding.
April 24, 2015; U.S. Attorney; District of Massachusetts: Former Clinical Care Technician Charged with Stealing Pain Medication from Patients in Intensive Care
BOSTON - A former clinical care technician at Tufts New England Medical Center was charged yesterday with stealing pain medication from patients in intensive care.
April 23, 2015; U.S. Department of Justice: Louisiana Doctor Pleads Guilty to Health Care Fraud Charges for Writing False Home Health Certifications in $56 Million Fraud Scheme
A Louisiana doctor pleaded guilty to federal health care fraud charges today, admitting that he wrote false home health care certifications that were used in a multi-million dollar Medicare fraud scheme.
April 21, 2015; U.S. Department of Justice: Texas-Based Citizens Medical Center Agrees to Pay United States $21.75 Million to Settle Alleged False Claims Act Violations
Citizens Medical Center, a county-owned hospital in Victoria, Texas, has agreed to pay the United States $21,750,000 to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today.
April 21, 2015; U.S. Department of Justice: Family Dermatology PcCAgrees to Pay United States More Than $3.2 Million to Settle Alleged False Claims Act Violations
Family Dermatology P.C. which owns and operates a dermatopathology laboratory in Georgia and a number of dermatology practices throughout the Eastern United States, has agreed to pay the United States $3,247,835 plus interest to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with a number of its employed physicians, the Justice Department announced today.
April 21, 2015; U.S. Department of Justice: Texas-Based Citizens Medical Center Agrees to Pay United States $21.75 Million to Settle Alleged False Claims Act Violations
Citizens Medical Center, a county-owned hospital in Victoria, Texas, has agreed to pay the United States $21,750,000 to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today.
April 21, 2015; U.S. Department of Justice: Government Sues Skilled Nursing Chain HCR Manorcare for Allegedly Providing Medically Unnecessary Therapy
The government has intervened in three False Claims Act lawsuits and filed a consolidated complaint against HCR ManorCare alleging that ManorCare knowingly and routinely submitted false claims to Medicare and Tricare for rehabilitation therapy services that were not medically reasonable and necessary, the Department of Justice announced today. ManorCare is one of the nation's largest healthcare providers, operating approximately 281 skilled nursing facilities (SNFs) in 30 states.
April 21, 2015; U.S. Attorney; Eastern District of Michigan: Operator of Detroit Adult Day Care Center and Two Home Health Care Company Owners Sentenced in $29 Million Medicare Fraud Conspiracy
WASHINGTON - The former operator of a Detroit adult day care center and two former owners of Detroit-area home health care companies were sentenced to prison today for their roles in a $29 million Medicare fraud scheme.
April 17, 2015; U.S. Attorney; Southern District of Georgia: Pooler Couple Sentenced To Federal Prison For Health Care Fraud Scheme
Savannah, GA - Sheryl Evans, 55, of Pooler, Georgia, was sentenced earlier this week to 13 months in prison by United States District Court Judge William T. Moore, Jr. after pleading guilty to her role in a scheme to defraud the South Carolina Medicaid and federal Medicare programs. Sheryl Evans's husband and partner-in-crime, Robert Evans, 53, also of Pooler, was sentenced to 6 months in prison. Additionally, the couple was ordered to repay over $189,000 of fraudulently obtained proceeds.
April 17, 2015; U.S. Attorney; Northern District of Illinois: Leader of a $23 Million Medicare Fraud Conspiracy Sentenced to 10 Years in Prison
CHICAGO-A Chicago man was sentenced today to a 120 month term of imprisonment for taking control of two Chicago-area home health companies and using them to bilk Medicare out of more than $20 million. JACINTO "JOHN" GABRIEL, JR., 48, has been in custody since February 2014, when he entered a guilty plea to charges of conspiracy to commit health care fraud and tax evasion.
April 17, 2015; U.S. Attorney; Eastern District of Missouri: Local Podiatrist Sentenced on Health Care Fraud Charges
St. Louis, MO - LAWRENCE B. IKEN, DPM, was sentenced to 12 months and one day in prison and ordered to pay restitution of $999,170 on charges involving the submission of false documents and reimbursement claims related to podiatric services purportedly provided by Dr. Iken from 2006 through July 2014. His company, Iken LLC, was sentenced to two years of probation on the same charges. As part of his plea in January, Dr. Iken agreed to a money judgment of $999,170, which represents the amount of reimbursement that he and his company received for the false health care claims.
April 16, 2015; U.S. Department of Justice: Owner of Miami Home Health Company Sentenced to 113 Months in Prison for $32 Million Medicare Fraud Scheme
An owner of a Miami home health care company was sentenced today to 113 months in prison in connection with a $32 million Medicare fraud scheme.
April 16, 2015; U.S. Department of Justice: Valencia, California, Doctor Indicted in $6.5 Million Medicare Fraud Scheme
An indictment was unsealed today charging a doctor from Valencia, California, with operating a $6.5 million scheme to defraud the Medicare program by billing Medicare for medical services that were not actually provided.
April 15, 2015; U.S. Department of Justice: Michigan Home Health Agency Owner Pleads Guilty in Connection with $2.6 Million Home Health Care Scheme
The owner of a greater Detroit-area home health care agency pleaded guilty today to fraud and money laundering charges in connection with her role in a $2.6 million home health care scheme.
April 15, 2015; U.S. Attorney; District of Connecticut: Dentist Involved in Medicaid Fraud Scheme Pleads Guilty
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MEHRAN ZAMANI, DDS, 50, of Pound Ridge, N.Y., pleaded guilty today in Hartford federal court to a federal health care fraud offense stemming from a multimillion Medicaid fraud scheme.
April 15, 2015; U.S. Attorney; Eastern District of Missouri: Farmington, Missouri, Pharmacist Pleads Guilty to Three Medicaid Fraud Charges
St. Louis, MO - PATRICIA A. HOEHN, Farmington, Missouri, pled guilty today to three felony counts involving false statements to the Missouri Medicaid program.
April 15, 2015; U.S. Attorney; Western District of Pennsylvania: $1.3M Settlement with Asbury Health Center Resolves False Claims Act Allegations
PITTSBURGH - Asbury Health Center, a continuing-care retirement community located in Pittsburgh, has agreed to pay the United States $1,331,837.96 to settle False Claims Act allegations, United States Attorney David J. Hickton announced today.
April 14, 2015; U.S. Department of Justice: South Florida Doctor Indicted for Medicare Fraud
A South Florida Doctor was charged in a seventy-six count indictment for participating in a Medicare fraud scheme, announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI's Miami Field Office, Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of the Inspector General's Miami Region (HHS-OIG), Special Agent in Charge Michael D. Angelucci of the U.S. Railroad Retirement Board's Office of Inspector General (RRB) and Special Agent in Charge John Khin of the Defense Criminal Investigative Service (DCIS).
April 14, 2015; U.S. Attorney; Eastern District of Texas: Texas Doctor Sentenced to Prison for Health Care Fraud Scheme
TYLER, Texas - A 63-year-old Dallas County, Texas, physician, has been sentenced to federal prison for health care fraud and identity theft violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
April 13, 2015; U.S. Attorney; Southern District of Florida: Miami Office Manager Convicted for Her Participation in Medicare Fraud Scheme
A former office manager of a Miami based physical and occupational therapy clinic was convicted, following a four day trial, for her participation in a scheme that involved the fraudulent submission of more than $3.3 million dollars in false billing to Medicare.
April 9, 2015; U.S. Department of Justice: Two Cardiovascular Disease Testing Laboratories to Pay $48.5 Million to Settle Claims of Paying Kickbacks and Conducting Unnecessary Testing
Cardiovascular testing disease laboratories Health Diagnostics Laboratory Inc. (HDL), of Richmond, Virginia, and Singulex Inc., of Alameda, California, have agreed to resolve allegations that they violated the False Claims Act by paying remuneration to physicians in exchange for patient referrals and billing federal health care programs for medically unnecessary testing, the Department of Justice announced today. Under the settlements, which stem from three related whistleblower actions filed under the federal False Claims Act, HDL will pay $47 million and Singulex will pay $1.5 million. The government also intervened in the lawsuits as to similar allegations against another laboratory, Berkeley HeartLab Inc.; a marketing company, BlueWave Healthcare Consultants Inc., and its owners, Floyd Calhoun Dent and J. Bradley Johnson; and former CEO Latonya Mallory of HDL.
April 7, 2015; U.S. Attorney; District of Utah: Cache Valley Cancer Treatment And Research Clinic Pleads Guilty To Misdemeanor Information Involving Receipt And Delivery Of Misbranded Drugs
SALT LAKE CITY - Cache Valley Cancer Treatment and Research Clinic, a cancer treatment clinic located in Logan, pled guilty in U.S. District Court Tuesday afternoon to receipt of misbranded drugs and delivery for sale. The Misdemeanor Information charging the clinic was filed March 31, 2015. The clinic is owned and operated by Dr. Ali Ben-Jacob, a resident of Utah and an oncologist.
April 6, 2015; U.S. Attorney; Southern District of California: Mastermind of $1 Million Medicare Fraud Sentenced to 30 Months
SAN DIEGO-Gevorg "George" Kupelian was sentenced today to 30 months in custody for his role in a fraud scheme that involved billing Medicare for medical tests on unsuspecting seniors that were either medically unnecessary or were never performed.
April 2, 2015; U.S. Attorney; Eastern District of Tennessee: Cleveland Doctor Sentenced For Defrauding Medicare
CHATTANOOGA, Tenn. - On Apr. 2, 2015, Dr. Raymond Sean Brown, 44, of McDonald, Tenn., was sentenced serve 28 months in prison by the Honorable Curtis L. Collier. In November 2014, Brown pleaded guilty to an information charging him with the use of misbranded drugs with the intent to defraud.
April 2, 2015; U.S. Attorney; District of New Jersey: New York Doctor Admits Taking Bribes In Test-Referral Scheme With New Jersey Clinical Lab
NEWARK, N.J. - A doctor with a practice in Rockville Centre, New York, today admitted accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
April 2, 2015; U.S. Attorney; District of New Jersey: New Jersey Doctor Sentenced To Over Three Years In Prison For Taking Bribes In Test-Referrals Scheme Involving New Jersey Clinical Lab
NEWARK, N.J. - A doctor with an office in North Arlington, New Jersey, was sentenced today to 37 months in prison for accepting bribes 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.
April 1, 2015; U.S. Attorney; Eastern District of Pennsylvania: Delaware County Nightclub Owners Plead Guilty To Tax And Fraud Charges
PHILADELPHIA - Romeo Callueng, 45, and Susan Callueng, 43, of Woodlyn, PA, pleaded guilty on March 26, 2015 to tax evasion and fraud in connection to a health care benefit program. The Calluengs, who owned the "Club 27" nightclub at 27 Bank Street in Philadelphia, were receiving assistance from Medicaid and LIHEAP (Low Income Heating and Energy Assistance Program) despite making substantially more than the maximum income eligibility. Each defendant pleaded guilty to one count of fraud and four counts of tax evasion for evading income taxes in 2006, 2007, 2008, and 2009.

March 2015

March 31, 2015; U.S. Department of Justice: Ohio-Based Health System Pays United States $10 Million to Settle False Claims Act Allegations
Robinson Health System Inc. has agreed to pay $10 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. Robinson is a nonprofit corporation based in Ohio that operates a number of health care facilities in Portage County, Ohio, including Robinson Memorial Hospital.
March 31, 2015; U.S. Attorney; Eastern District of Pennsylvania: Ambulance Company Co-Owner Sentenced To Six Years For Fraud
PHILADELPHIA - Nazariy Kmet, 37, of Jamison, PA, a co-owner and the President of Life Support Corporation (Life Support), was sentenced today to 72 months in prison, for an extensive health care fraud scheme. The defendant pleaded guilty to health care fraud conspiracy and paying kickbacks. The company, Life Support, which is now defunct, had been located in the Feasterville-Trevose area and had been incorporated in 2010.
March 31, 2015; U.S. Attorney; District of New Jersey: Two New Jersey Doctors Sentenced To Prison For Taking Bribes In Test-Referrals Scheme With New Jersey Clinical Lab
NEWARK, N.J. - Two New Jersey doctors were each sentenced today to prison for accepting bribes 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.
March 31, 2015; U.S. Attorney; District of Puerto Rico: PR Department Of Health Employee And Another Individual Indicted For Theft Of Government Records And Aggravated Identity Theft
SAN JUAN, P.R. - Yesterday, a Federal grand jury returned an eight-count indictment charging two individuals for conspiracy, theft of government records, unlawful transfer of means of identification, aggravated identity theft, and wrongful disclosure of individually identifiable health information, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Internal Revenue Service (IRS) Criminal Investigation Division and Health and Human Services, Office of Inspector General are in charge of the investigation. The Puerto Rico Department of Health Medicaid Office, Fraud Unit provided significant assistance during the investigation.
March 30, 2015; District of Massachusetts: Maine Nursing Home to Pay $1.2 Million to Resolve Allegations Concerning Rehabilitation Therapy
BOSTON - A Maine skilled nursing facility, Ross Manor, entered into an agreement with the United States to pay $1.2 million to resolve allegations concerning inflated Medicare claims for rehabilitation therapy.
March 30, 2015; Western District of Missouri: Former Joplin Oncologist Pleads Guilty to Dispensing Foreign, Misbranded Drugs
SPRINGFIELD, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an oncologist who operated a clinic in Joplin, Mo., pleaded guilty in federal court today to dispensing foreign, misbranded drugs to his cancer patients.
March 25, 2015; U.S. Attorney; Middle District of Florida: Federal Jury Finds Husband And Wife Guilty Of Operating A Clinic To Defraud Medicare
Tampa, FL - United States Attorney A. Lee Bentley, III announces that a federal jury has found Miami residents Gladys Fuertes (40) and her husband, Mario Fuertes (38), guilty of conspiracy to commit health care fraud, health care fraud, and obstructing a health care investigation. They are facing a maximum penalty of 10 years in federal prison on the conspiracy count and on each of the 10 health care fraud counts, and up to five years in federal prison on each of the two obstruction counts. Gladys Fuertes was also convicted of four counts of aggravated identity theft and faces a mandatory sentence of two years in prison for those charges. The sentencing hearing has been scheduled for June 23, 2015. Both individuals were indicted on March 13, 2014, and arrested in Miami on March 26, 2014.
March 24, 2015; U.S. Attorney; District of New Jersey: Doctor Sentenced to Nine Months in Prison for Taking Cash Kickbacks on Patient Referrals, failing to report nearly $1 million in income
NEWARK, N.J. - A doctor practicing family medicine in East Orange, New Jersey, was sentenced today to nine months in prison for receiving cash kickbacks for diagnostic testing referrals and failing to file tax returns on almost $1 million in income over a three-year period, U.S. Attorney Paul J. Fishman announced.
March 23, 2015; U.S. Attorney; Western District of Michigan: Portage Hospital Pays $4.44 Million To Resolve Voluntary Disclosure Regarding False Medicare Claims For Home Health Care Services
GRAND RAPIDS, MICHIGAN - Portage Hospital, LLC, in Hancock, Michigan, has agreed to pay the United States $4,446,392.43 to settle allegations that a hospital-owned home health care agency, Portage Health Home Care & Hospice, violated the False Claims Act by submitting false claims to Medicare for home health care services purportedly rendered by a staff physical therapist.
March 23, 2015; U.S. Department of Justice: Michigan Physician Pleads Guilty for Role in $3.6 Million Medicare Fraud Scheme
A Detroit-area medical doctor who referred Medicare beneficiaries for home health services in exchange for illegal cash kickbacks as part of a $3.6 million home health care fraud scheme pleaded guilty today for his role in the scheme.
March 20, 2015; U.S. Department of Justice: Owner of Los Angeles Medical Supply Company Convicted in $3.3 Million Medicare Fraud Scheme
A federal jury in Los Angeles found the owner of a medical supply company guilty of four counts of health care fraud today in connection with a $3.3 million Medicare fraud scheme.
March 20, 2015; U.S. Department of Justice: Owner of Medical Equipment Supply Company Convicted for $3.5 Million Medicare and Medi-Cal Fraud Scheme
A jury in federal court in Los Angeles convicted the former owner of a durable medical equipment supply company of health care fraud charges in connection with a $3.5 million Medicare and Medi-Cal fraud scheme.
March 19, 2015; U.S. Department of Justice: Cardiac Monitoring Company to Pay $6.4 Million for Alleged Overbilling of Government Health Care Programs
BioTelemetry Inc., a heart monitoring company headquartered in Malvern, Pennsylvania, has agreed to pay $6.4 million to resolve allegations made under the False Claims Act (FCA) that its subsidiary, CardioNet, overbilled Medicare and other federal health programs for Mobile Cardiac Outpatient Telemetry (MCOT) services when those services were not reasonable or medically necessary, the Justice Department announced today.
March 19, 2015; U.S. Department of Justice: Adventist Health System to Pay $5.4 Million to Resolve False Claims Act Allegations
Adventist Health System Sunbelt Healthcare Corporation (Adventist) has agreed to pay $5,412,502 to resolve claims that it violated the False Claims Act by providing radiation oncology services to Medicare and TRICARE beneficiaries that were not directly supervised by radiation oncologists or similarly qualified persons, the Department of Justice announced today. Adventist is a non-profit healthcare organization operating a large network of hospitals in the South and the Midwest, and doing business in Florida as Florida Hospital.
March 19, 2015; U.S. Attorney; Northern District of Illinois: Owner and Executives Convicted in Medicare Referral Kickback Conspiracy at Closed Sacred Heart Hospital
CHICAGO - The former owner and chief executive officer, the chief operating officer, and the chief financial officer of the now-closed Sacred Heart Hospital were convicted by a jury after a nearly two-month trial of collectively paying hundreds of thousands of dollars in illegal kickbacks in exchange for the referral of hospital patients who were insured by Medicare and Medicaid. The jury found that EDWARD J. NOVAK, 60, of Park Ridge, Sacred Heart's owner and chief executive officer, ROY M. PAYAWAL, 66, of Burr Ridge, executive vice president and chief financial officer, and CLARENCE NAGELVOORT, 59, of Chicago, paid physicians concealed bribes and kickbacks to induce patient referrals and to increase the patient census, which, in turn, increased hospital revenue.
March 19, 2015; U.S. Attorney; Eastern District of New York: New York Pharmacist Charged With Defrauding Medicare And Medicaid Of More Than $5 Million Through Fraudulent Billing Of Prescription Medications
A twenty-four-count indictment was unsealed this morning in federal court in Brooklyn, New York, charging Andrew Barrett, a licensed pharmacist, with health care fraud, filing false claims, unlawful monetary transactions, filing false personal tax returns, and the filing of and assisting in the preparation of false corporate tax returns.1 Barrett will be arraigned at 2:00 pm today before U.S. Magistrate Judge Steven M. Gold at the U. S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
March 18, 2015; U.S. Department of Justice: Owner of Medical Clinic and Accountant Plead Guilty for Roles in $50 Million Medicare Fraud Scheme
The owner and operator of a New Orleans-based medical clinic and an accountant pleaded guilty today in federal court in New Orleans for their roles in a $50 million Medicare fraud scheme.
March 17, 2015; U.S. Attorney; Middle District of Florida: United States Settles False Claims Act Allegations Against Jacksonville-Based Dermatology Practice For $787,814
Jacksonville, Florida - U.S. Attorney A. Lee Bentley, III announces that the United States has settled allegations that a Jacksonville-based dermatology practice knowingly billed the government for services that were cosmetic in nature and not medically necessary, as well as "up-coded" certain bills to receive higher than allowed reimbursement. The allegations resolved included liability under the False Claims Act (FCA).
March 16, 2015; U.S. Attorney; District of South Carolina: HHS OIG Top 10 Most Wanted Sentenced to 57 Months Prison
Columbia, South Carolina---- United States Attorney Bill Nettles stated that Karo Gotti Blkhoyan, a/k/a "Gotti," age 34, of Glendale, California was sentenced last week in federal court in Columbia, South Carolina, for Conspiracy to Commit Money Laundering , a violation of 18 U.S.C. § 1956(h). Senior United States District Judge Cameron McGowan Currie of Columbia sentenced Blkhoyan to 57 months and three years supervised release. Blkhoyan was fugitive for approximately two years, when was arrested at the San Francisco International Airport attempting to re-enter the country.
March 16, 2015; U.S. Department of Justice: Los Angeles-Area Pharmacist Pleads Guilty to Medicare Part D Fraud Scheme
A pharmacist who owned and operated a pharmacy in Los Angeles pleaded guilty today in connection with a Medicare fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department's Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California and Assistant Director in Charge David Bowdich of the FBI's Los Angeles Field Office.
March 13, 2015; U.S. Department of Justice: Owner of Detroit Home Health Care Companies Pleads Guilty to $12.6 Million Fraud Scheme
The owner of two home health care companies pleaded guilty to Medicare fraud and tax fraud charges in connection with his role in a scheme to fraudulently bill Medicare for $12.6 million in home health services that were not provided or were obtained through illegal kickbacks. Ten other individuals have been convicted at trial or pleaded guilty in this case.
March 13, 2015; U.S. Attorney; Eastern District of Pennsylvania: New Jersey Doctor Charged With Running Pill Mill And Attempting To Burn It Down
PHILADELPHIA - Dr. Mudassar Sharif, 40, of Bernards Township, NJ, was charged yesterday by indictment with illegally dispensing prescription pills through Garden State Primary Care, which he owned, in Kearny, NJ, announced United States Attorney Zane David Memeger. Sharif is also charged with trying to set fire to the building that houses the medical practice.
March 12, 2015; U.S. Attorney; Eastern District of Louisiana: Twenty Individuals and One Corporation Indicted in Conspiracy to Commit $30 Million in Health Care Fraud
NEW ORLEANS-U.S. Attorney Kenneth A. Polite announced that a 26-count indictment was returned against twenty individuals and one corporation, charging approximately $30,052,295 in Medicare fraud.
March 12, 2015; U.S. Department of Justice: Houston-Area Owner of Medical Equipment Companies Convicted in a $3.4 Million Medicare Fraud Scheme
A federal jury in Houston yesterday convicted the owner of two Texas medical equipment companies for his role in a $3.4 million Medicare fraud scheme.
March 12, 2015; U.S. Attorney; Southern District of Illinois: Woman Admits Billing Home Services Program While In Jail
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on March 12, 2015, Angela Jones, 51, of Madison, IL, pled guilty to a one-count indictment charging that she engaged in a scheme to commit health care fraud. At her sentencing Jones will face up to 10 years of imprisonment, a fine of up to $250,000 and up to 3 years of supervised release. Sentencing has been set for July 10, 2015, at 2:30 pm in United States District Court in East St. Louis, Illinois.
March 11, 2015; U.S. Attorney; Middle District of Louisiana: Licensed Clinical Social Worker Sentenced To Prison For Health Care Fraud
BATON ROUGE, LA -United States Attorney Walt Green announced that CARLA CLARK, age 50, of Pineville, Louisiana, was sentenced yesterday by Chief U.S. District Judge Brian A. Jackson to 21 months imprisonment, 2 years of supervised release following imprisonment, and ordered to pay $413,109 in restitution for her role in a health care fraud scheme involving two Louisiana companies.
March 10, 2015; U.S. Attorney; Northern District of Illinois: Nurse Charged With Health-Care Fraud Scheme For Billing Medicare for Unnecessary Services
CHICAGO - A registered nurse was arrested today on a federal health care fraud charges. The nurse defendant, JAMES ADEMIJU, who operates two nursing agencies, Adonis Inc. and BestMed-Care Services Ltd., was arrested this morning and charged with health care fraud in a criminal complaint. The complaint alleges a scheme to defraud Medicare by billing for unnecessary nursing services that were provided to patients who were not confined to the home and who were obtained via illegal payments for patient referrals. For over three years, beginning in 2011, a total of approximately $5 million was paid to the two agencies by Medicare for services rendered to patients deemed to be homebound.
March 10, 2015; U.S. Attorney; Eastern District of Pennsylvania: Medicare Beneficiary Pleads Guilty To Receiving Kickbacks In Health Care Matters
PHILADELPHIA - Craig Brown, 46, of Philadelphia, PA, pleaded guilty today to receiving kickbacks and making false statements in a health care matter, announced United States Attorney Zane David Memeger. The defendant faces a maximum possible sentence of 25 years in prison, three years of supervised release, a $1.25 million fine, a $500 special assessment, and an order of restitution. U.S. District Court Judge William H. Yohn, Jr. scheduled a sentencing hearing for June 10, 2015.
March 9, 2015; U.S. Department of Justice: Florida Home Health Care Company Agrees to Pay $1.1 Million to Resolve False Claims Act Allegations
Recovery Home Care Inc., Recovery Home Care Services Inc. (collectively Recovery Home Care) and National Home Care Holdings LLC have agreed to pay $1.1 million to resolve allegations that the Recovery Home Care entities violated the False Claims Act by improperly paying doctors for referrals of home health care services provided to Medicare patients, the Department of Justice announced today. The Recovery Home Care entities provide home health care services to Medicare beneficiaries and were purchased by National Home Care Holdings LLC in 2012, after the conduct addressed by the settlement occurred.
March 6, 2015; U.S. Department of Justice: New York Doctor Pleads Guilty in $14.2 Million Medicare Fraud Scheme
A New York doctor pleaded guilty today for his involvement in a scheme to fraudulently bill Medicare for $14.2 million in claims for medically unnecessary treatments.
March 4, 2015; U.S. Attorney; District of Maine: Rockport Dentist Settles Federal Health Care Fraud Complaint
Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Dr. Daniel P. Schecter, a dentist who provided services in Rockport, Maine, has paid $484,744.80 to settle claims involving improper billing to MaineCare (Maine's Medicaid program).
March 2, 2015; U.S. Department of Justice: United States Settles False Claims Act Allegations Against Patient Safety Consultant and His Companies
Dr. Charles Denham, of Laguna Beach, California, has agreed to pay the United States $1 million to settle allegations that he violated the False Claims Act by soliciting and accepting kickbacks, the Justice Department announced today. Denham is a patient safety consultant who operates the consulting company Health Care Concepts Inc. and the research organization Texas Medical Institute of Technology, both of which are also parties to the settlement. In 2009 and 2010, Denham was co-chair of the Safe Practices Committee of the National Quality Forum.
March 2, 2015; U.S. Attorney; District of Massachusetts: New York Catholic Nursing Chain to Pay $3.5 Million to Resolve Allegations Concerning Claims for Rehabilitation Therapy
BOSTON - A New York operator of skilled nursing facilities entered into an agreement with the United States to pay $3.5 million to resolve allegations concerning inflated Medicare claims for rehabilitation therapy.
February 27, 2015; U.S. Department of Justice: Two Miami Residents Sentenced to 72 Months in Prison for Their Roles in $63 Million Medicare Fraud Scheme
Two Miami residents were sentenced to serve 72 months in prison for their roles in a $62 million Medicare fraud scheme involving intensive mental health treatment programs.
February 27, 2015; U.S. Department of Justice: Michigan Psychotherapy Clinic Owner Sentenced to 87 Months in Prison for his Role in $3.3 Million Medicare Fraud Scheme
A former Michigan resident who directed a $3.3 million psychotherapy fraud scheme, was sentenced today to 87 months in prison, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department's Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI Detroit Field Office and Special Agent in Charge Lamont Pugh III of the Department of Health and Human Services Office of Inspector General's (HHS-OIG) Detroit Office.
February 27, 2015; U.S. Attorney; Eastern District of Arkansas: Baptist Health Medical Center North Little Rock Enters Into Settlement Agreement Under False Claims Act
LITTLE ROCK - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that, the government, acting through the United States Department of Justice and on behalf of the Office of Inspector General (OIG) of the Department of Health and Human Services (HHS) (collectively the "United States"), and Baptist Health Medical Center North Little Rock (BHMC-NLR) entered into a settlement agreement under the False Claims Act. BHMC-NLR agreed to pay $2,700,000 to resolve its liability.
February 27, 2015; U.S. Attorney; District of Massachusetts: Nursing Agency Operator to be Incarcerated for 92 Months and Forfeits Home
BOSTON - The owner of a home nursing agency was sentenced yesterday to 92 months in prison for fraudulently billing millions of dollars of services to Medicare and then laundering the proceeds.
February 27, 2015; U.S. Attorney; District of Maryland: Annapolis Woman Sentenced To 3 Years In Prison For Treating Patients While Fraudulently Posing As A Physician's Assistant
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Shawna Michelle Gunter, age 37, of Annapolis, Maryland, late yesterday to three years in prison followed by three years of supervised release, which includes six months of home detention with electronic monitoring, for wire fraud and aggravated identity theft in connection with a scheme to pose as a physician's assistant to obtain employment, diagnose and treat 137 infants and children, and write over 400 prescriptions, all without a medical license. Judge Bennett also entered an order that Gunter pay restitution of $53,530.39.

February 2015

February 26, 2015; U.S. Attorney; Southern District of Florida: Three Individuals Arrested for More Than $2.4 million in Medicare and Medicaid Fraud
Three individuals have been arrested - one of whom was arrested in Colombia - for more than $2.4 million in Medicare and Medicaid fraud. The defendants in this case allegedly defrauded Medicaid and Medicare by paying and receiving kickbacks and bribes in return for creating and providing false and fraudulent home health prescriptions and plans of care to patient recruiters and causing the submission of false and fraudulent claims.
February 26, 2015; U.S. Attorney; Eastern District of Pennsylvania: Life Support Ambulance, Co-Owner, And Manager Sentenced For Health Care Fraud
PHILADELPHIA - Bogdan Kmet, 30, of Warminster, PA, an owner of Life Support Corporation, Rostislav Kmet, 26, of Philadelphia, a company manager, and Life Support, Inc., were sentenced today to 36 months in prison, 46 months in prison, and five years of probation, respectively, for an extensive health care fraud scheme. The defendants pleaded guilty to health care fraud and paying kickbacks. The company was located in the Feasterville-Trevose area and was incorporated in 2010. A second owner, Nazariy Kmet, 35, of Jamison, PA, is scheduled to be sentenced March 31, 2015.
February 26, 2015; U.S. Attorney; Western District of Pennsylvania: Former Hospice COO Charged with Health Care Fraud, Lying to a Federal Grand Jury
PITTSBURGH - A Louisiana woman has been indicted by a federal grand jury in Pittsburgh on charges of health care fraud and making false declarations before a grand jury, United States Attorney David J. Hickton announced today.
February 25, 2015; U.S. Attorney; Eastern District of Pennsylvania: Medicare Beneficiary Pleads Guilty In Kickback Scheme Involving Ambulance Transport Services
PHILADELPHIA - William Conner, 61, of Philadelphia, PA, pleaded guilty today to receiving kickbacks and making false statements to law enforcement officials in connection with unnecessary ambulance transportation services. Conner faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $1 million fine, a $400 special assessment, and an order of restitution. U.S. District Court Judge William H. Yohn, Jr. scheduled a sentencing hearing for May 28, 2015.
February 25, 2015; U.S. Department of Justice: Detroit Area Patient Recruiter and Physical Therapist Convicted in $1.6 Million Medicare Fraud Scheme
A federal jury in Detroit today convicted a patient recruiter and a physical therapist for their roles in a $1.6 million Medicare fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department's Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI's Detroit Field Office and Special Agent in Charge Lamont Pugh III of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office.
February 25, 2015; U.S. Attorney; District of New Jersey: Physician's Assistant Admits Taking More Than $70,000 In Bribes In Test-Referral Scheme With New Jersey Clinical Lab
NEWARK, N.J. - A Staten Island, New York, physician's assistant today admitted accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
February 25, 2015; U.S. Attorney; Western District of Tennessee: Federal Indictments Returned Against Jackson-Area Residents In Health Care Fraud Scheme Targeting Medicare Card-Holders
Jackson, Tenn. - Calvin Bailey, 64, of Jackson, Tennessee; Sandra Bailey, 64, of Jackson, Tennessee; and Cindy Mallard, 49, of Bradford, Tennessee; have been charged in an indictment alleging a conspiracy to commit health care fraud and to pay illegal kickbacks in connection with health care services, announced United States Attorney for the Western District of Tennessee, Edward L. Stanton III. Sandra Bailey was also indicted for eight counts of health care fraud and nine counts of paying illegal kickbacks to health care providers and patient-referral sources.
February 25, 2015; U.S. Attorney; Southern District of West Virginia: Trivillian's Pharmacy, owner plead guilty to federal health care and drug crimes
CHARLESTON, W.Va. - United States Attorney Booth Goodwin announced today that Paula Butterfield, owner and pharmacist-in-charge of Trivillian's Pharmacy, a long-standing Kanawha City retail and compounding pharmacy, pleaded guilty to making a false statement in a healthcare matter. Butterfield also pleaded guilty on behalf of Trivillian's to one count of health care fraud and one count of misbranding drugs.
February 24, 2015; U.S. Department of Justice: Former Owner of Durable Medical Equipment Company Pleads Guilty in $5 Million Health Care Fraud Scheme
A Miami man pleaded guilty today to health care fraud charges in connection with a $5 million scheme to defraud Medicare.
February 24, 2015; U.S. Attorney; Western District of Louisiana: United States Attorney Announces $650,000 Settlement with Acadiana Cardiology, Acadiana Cardiovascular Center, and Convicted Doctor, Mehmood Patel, for False Claims Allegations
LAFAYETTE, La. - United States Attorney Stephanie A. Finley announced a $650,000 settlement was reached with Acadiana Cardiology LLC, Acadiana Cardiovascular Center and convicted doctor, Mehmood Patel, M.D., concerning allegations that Patel performed unnecessary medical procedures and billed Medicare.
February 24, 2015; U.S. Attorney; Eastern District of California: Manteca Oncologist Agrees To Pay $550,000 To Resolve False Claims Act Allegations
SACRAMENTO, Calif - United States Attorney Benjamin B. Wagner announced today that Prabhjit S. Purewal, M.D., a Manteca based oncologist, agreed to pay the United States $550,000 to settle allegations that he defrauded Medicare, Tricare and Medicaid by billing these public insurers for chemotherapy drugs the US Food and Drug Administration had not approved for use in the United States. Dr. Purewal has paid the United States $400,000 to date.
February 24, 2015; U.S. Attorney; Eastern District of Pennsylvania: Additional Charges Filed Against Doctor In Pill Mill Case
William J. O'Brien III, 49 of Philadelphia was charged today by Superseding Indictment with 23 additional counts of illegally distributing oxycodone, methadone, and amphetamines, all Schedule II controlled substances, outside the usual course of professional practice and for no legitimate medical purpose, announced United States Attorney Zane David Memeger. According to the superseding indictment, O'Brien's so-called Apatients@ could for a fee obtain prescriptions for these addictive and dangerous controlled substances without a physical examination or any other medical care or treatment. O'Brien typically charged customers $250 cash for the first appointment to buy prescriptions and $200 for each appointment to obtain refills.
February 24, 2015; U.S. Attorney; Northern District of Illinois: Suspended Physician Sentenced To 1.5 Years For Illegally Dispensing Oxycodone And Falsely Billing Medicare In Undercover Probe
CHICAGO - A suburban physician whose medical license was suspended was sentenced today to 18 months in prison for health care fraud and illegally prescribing controlled substance medications. The defendant, SATHISH NARAYANAPPA BABU, who owned Anik Life Sciences Medical Corp., pled guilty in September 2014 to illegally prescribing oxycodone and other controlled substances, and fraudulently billing Medicare approximately $500,000, and fraudulently collecting approximately $216,000, for services he did not provide. Babu, 48, of Bolingbrook, operated Anik Life Sciences, a home-visiting physician's office, in Darien and, previously, in Arlington Heights.
February 20, 2015; U.S. Attorney; Western District of Michigan: CEO of Kentwood Pharmacy Pleads Guilty
GRAND RAPIDS, MICHIGAN - Kim Duron Mulder, 55, formerly of Grand Rapids, and Charles Wayne Brooks, 63, of Alma, entered guilty pleas today before United States District Judge Robert J. Jonker on charges related to the illegal restocking and re-dispensing of recycled drugs at Kentwood Pharmacy. Mr. Mulder, formerly the CEO of Kentwood Pharmacy, pled guilty to a conspiracy to commit health care fraud based on billing Medicare, Medicaid, and private insurance plans for misbranded and adulterated drugs. Mr. Brooks, a pharmacist at Kentwood Pharmacy's facility in Alma, pled guilty to misbranding prescription drugs that had been previously dispensed and returned to pharmacy stock. Mr. Mulder faces up to ten years' imprisonment; Mr. Brooks faces up to three years' imprisonment.
February 23, 2015; U.S. Department of Justice: Two Florida Couples Agree to Pay $1.13 Million to Resolve Allegations that They Accepted Kickbacks in Exchange for Home Health Care Referrals
Two South Florida medical doctors and their wives have agreed to settle allegations that they violated the False Claims Act when their wives accepted sham marketer salaries in exchange for their husbands' referrals to a home health care company called A Plus Home Health Care Inc., the Justice Department announced today. Under the settlements, Dr. Alan and Lynn Buhler will pay to the United States $1.047 million and Dr. Craig and Cynthia Prokos will pay $90,000. Dr. Buhler practices in Plantation, Florida, and Dr. Prokos practices in Jupiter, Florida.
February 23, 2015; U.S. Attorney; Northern District of Illinois: Psychologist And Pschotheraphy Services Owner Sentenced To Over Seven Years, And Employee Sentenced To Over Five Years In $1.5 Million Medicare Fraud
Chicago - Bryce Woods, 37, an employee of Take Action, Inc., and Inner Arts, Inc., which claimed to provide psychotherapy services to Medicare beneficiaries residing in skilled nursing homes in the Chicago area, was sentenced today by U.S. District Court Judge Virginia M. Kendall to 70 months in federal prison for submitting false claims totaling more than $1.5 million to Medicare for psychotherapy services. Codefendant Keenan R. Ferrell, 55, who was the owner and operator of Take Action, Inc., and Inner Arts, Inc., as well as a licensed psychologist in Illinois, was sentenced to 88 months in federal prison back in August 2014.
February 23, 2015; U.S. Attorney; District of New Jersey: Bergen County, New Jersey, Doctor Charged With Fraudulently Billing For Office Visits That Were Never Rendered
NEWARK, N.J. - A family medicine physician with offices in Cresskill and Little Falls, New Jersey, was arrested this morning and charged with fraudulently billing Medicare, Medicaid and private health care insurance companies hundreds of thousands of dollars for physician office visits that were never rendered, U.S. Attorney Paul J. Fishman announced.
February 20, 2015; U.S. Attorney; Southern District of Illinois: East Saint Louis Man Sentenced For Healthcare Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Maurice L. Burks, 44, of East St. Louis, IL, was sentenced on a one-count indictment charging that Burks engaged in a scheme to commit health care fraud. On February 20, 2015, the district court sentenced Burks to six months of incarceration and ordered him to pay $1,016.82 in restitution as well as a $100 special assessment.
February 20, 2015; U.S. Attorney; Eastern District of New York: Medical Drug Re-Packager And Company's Senior Executives Indicted On Fraud Charges And Criminal Violations Of The Food, Drug And Cosmetic Act
Earlier today, a 37-count indictment was unsealed in Brooklyn federal court charging Med Prep Consulting, Inc. ("Med Prep"), a Tinton Falls, New Jersey, medical drug re-packager and processer, together with its president and owner Gerald Tighe and pharmacist-in- charge Stephen Kalinoski, with wire fraud and violations of the Federal Food, Drug and Cosmetic Act ("FDCA") for introducing adulterated and misbranded drugs into interstate commerce with the intent to defraud and mislead the U.S. Food and Drug Administration ("FDA") and Med Prep's customers, who consisted of hospitals and other healthcare providers.
February 19, 2015; U.S. Attorney; Northern District of Oklahoma: Settlement Reached in Medicare Fraud Lawsuit Against Catoosa Doctor and Owner of Vision and Eye Care Medical Diagnostic and Laster Center, Inc.
TULSA, Okla.- Robert Charles Duke and his Catoosa business, Vision and Eye Care Medical Diagnostic and Laser Center, Inc., have agreed to pay a total of $150,000 to settle allegations of submitting false Medicare and Medicaid claims to the United States and the State of Oklahoma.
February 19, 2015; U.S. Attorney; Western District of Virginia: Local Doctor Pleads Guilty To Child Porn, Prescription Drug Charges
ROANOKE, VIRGINIA - A Roanoke County doctor who was indicted in August on charges of prescribing oxycodone outside the usual course of professional practice and receipt of child pornography, pled guilty today in the United States District Court for the Western District of Virginia in Roanoke.
February 18, 2015; U.S. Attorney; Southern District of Illinois: Illinois Woman Sentenced For Healthcare Fraud
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that, Lakeshia W. White, 24, of Cahokia, IL, was sentenced on a one-count indictment charging that she engaged in a scheme to commit health care fraud. The district court sentenced White to three years of probation and ordered her to pay $1,957.72 in restitution as well as a $100 special assessment.
February 18, 2015; U.S. Attorney; Southern District of New York: Manhattan U.S. Attorney Settles Civil Fraud Claims Against Compassionate Care Hospice For Fraudulently Billing Medicare And Medicaid For Hospice Nursing Services Not Adequately Provided
Preet Bharara, the United States Attorney for the Southern District of New York, and Scott Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General's ("HHS-OIG") New York Region, announced today that the United States has settled civil fraud claims under the False Claims Act against COMPASSIONATE CARE HOSPICE OF NEW YORK, LLC ("CCH-NEW YORK") and COMPASSIONATE CARE HOSPICE GROUP LTD. ("CCH GROUP" and collectively, "CCH") related to CCH's submission of fraudulent claims for reimbursement by Medicare and Medicaid, for hospice nursing services not adequately provided by CCH-NEW YORK.
February 17, 2015; U.S. Attorney; Eastern District of Texas: Former Hospital Employee Sentenced for HIPAA Violations
TYLER, TEXAS - A former employee of an East Texas hospital has been sentenced to federal prison for criminal HIPAA violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
February 17, 2015; U.S. Department of Justice: Owner of Miami Home Health Company Pleads Guilty for Lead Role in $13 Million Medicare Fraud Scheme
An owner of a Miami home health care company pleaded guilty today in connection with a $13 million Medicare fraud scheme that involved paying kickbacks and bribes to Medicare beneficiaries, doctors' offices, medical clinics and others in exchange for patient referrals and fraudulent prescriptions to support fraudulent billings to Medicare.
February 17, 2015; U.S. Attorney; Southern District of Illinois: Area Men Sentenced For Healthcare Fraud Crimes
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today, that Quincy O. Gamble, 39, of Cahokia, Illinois, and Lawrence Thigpen, 53, of Collinsville, Illinois, were sentenced on Friday, February 13, 2015, for engaging in a scheme to commit health care fraud by defrauding the Home Services Program, which is a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home.
February 17, 2015; U.S. Attorney; Eastern District of Missouri: Local Physician Convicted of Health Care Fraud Charges
St. Louis, MO - DR. DEVON GOLDING has been convicted of multiple health care fraud related charges for billing for services not rendered and false statements involving a health care benefit plan. The five-day trial was held before United States District Judge John A. Ross. The verdict was returned late Friday evening, February 13, 2015.
February 13, 2015; U.S. Attorney; Middle District of Louisiana: Healthcare Company Executives Sentenced to Prison for Fraud and Kickbacks
BATON ROUGE, LA - United States Attorney Walt Green announced that IMEH U. EBERE, age 55, of Baton Rouge, Louisiana, and SHEILA R. HIVES, age 51, of Baker, Louisiana, have each been sentenced by Chief U.S. District Judge Brian A. Jackson for health care fraud offenses in connection with their roles at Golden Medical Equipment & Supply, Inc. ("Golden"), a Baton Rouge-based company that provided durable medical equipment in the Baton Rouge area. EBERE was sentenced to serve twenty-two (22) months in prison, followed by a two-year term of supervised release, and was ordered to pay $444,061.72 in restitution. HIVES was sentenced to a term of probation and was ordered to pay $7,687.50 in restitution.
February 13, 2015; U.S. Department of Justice: Illinois Physician Pleads Guilty to Taking Kickbacks from Pharmaceutical Company and Agrees to Pay $3.79 Million to Settle Civil False Claims Act Case
The Department of Justice announced today that an Illinois physician, Dr. Michael J. Reinstein, pleaded guilty to a federal crime for receiving illegal kickbacks and benefits totaling nearly $600,000 from two pharmaceutical companies in exchange for regularly prescribing an anti-psychotic drug - clozapine - to his patients. Reinstein also agreed to pay the United States and the state of Illinois $3.79 million to settle a parallel civil lawsuit alleging that, by prescribing clozapine in exchange for kickbacks, Reinstein caused the submission of false claims to Medicare and Medicaid for the clozapine he prescribed for thousands of elderly and indigent patients in at least 30 Chicago-area nursing homes and other facilities.
February 13, 2015; U.S. Attorney; Northern District of Ohio: Akron doctor sentenced to 10 years in prison for illegally prescribing Painkillers, even after patients died
An Akron physician was sentenced to 10 years in prison for illegally prescribing hundreds of thousands of doses of painkillers and other pills to customers for no legitimate medical purpose, even after at least eight customers died from overdose-related deaths, law enforcement officials said.
February 12, 2015; U.S. Attorney; Southern District of Texas: Four Arrested for Conspiring to Commit Health Care Fraud and Money Laundering
HOUSTON - Aliksandr Beketav, 53, Mikhail Shiforenko, 43, Alexsandr Voronov, 46, and Daniela Gozes-Wagner, 32, have been arrested following the return of a federal indictment alleging a health care fraud conspiracy and conspiracy to commit money laundering, announced U.S. Attorney Kenneth Magidson.
February 11, 2015; U.S. Department of Justice: AstraZeneca to Pay $7.9 Million to Resolve Kickback Allegations
AstraZeneca LP, a pharmaceutical manufacturer based in Delaware, has agreed to pay the government $7.9 million to settle allegations that it engaged in a kickback scheme in violation of the False Claims Act, the Justice Department announced today. AstraZeneca markets and sells pharmaceutical products in the United States, including a drug sold under the trade name Nexium.
February 11, 2015; U.S. Attorney; District of New Jersey: Jersey City, New Jersey, Pediatrician Admits Making Nearly $200,000 Billing Medicaid For Bogus Treatments
TRENTON, N.J. - A licensed pediatrician practicing in Jersey City, New Jersey, today admitted fraudulently billing Medicaid for more than 1,000 wound repair procedures that were never performed, U.S. Attorney Paul J. Fishman announced.
February 10, 2015; U.S. Attorney; District of Nevada: Man Who Operated Reno Consulting Firm Sentenced To 2 1/2 Years In Prison For Theft And Failing To Pay Employment Taxes
RENO, Nev. - Michael Stickler, 54, of Reno, was sentenced on Monday, Feb. 9, 2015, by U.S. District Judge Miranda M. Du to 2.5 years in federal prison, three years of supervised release, 100 hours of community service, and ordered to pay $200,000 in restitution to the U.S. Department of Health and Human Services and $100,899 to the IRS for his convictions on theft of federal grant money and failing to pay employment taxes, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
February 10, 2015; U.S. Department of Justice: Iowa Home Care Company to Pay $5.63 Million to Settle False Claims Act Allegations
ResCare Iowa Inc. has agreed to pay $5.63 million to the United States and the state of Iowa to resolve allegations that it violated the False Claims Act by submitting false home healthcare billings to the Medicare and Medicaid programs, the Department of Justice announced today. ResCare Iowa - a subsidiary of Louisville, Kentucky, based ResCare Inc. - provides home healthcare services to patients in the state of Iowa.
February 10, 2015; U.S. Department of Justice: Owner of Miami Home Health Company Pleads Guilty for Role in $6.9 Million Medicare Fraud Scheme
The owner of a Miami home health care agency pleaded guilty today in connection with a $6.9 million Medicare fraud scheme. Assistant Attorney General Leslie R. Caldwell of the Justice Department's Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI's Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General's (HHS-OIG) Miami Regional Office made the announcement.
February 9, 2015; U.S. Department of Justice: Ambulance Company Manager Sentenced to 78 Months in Prison for $5.5 Million Medicare Fraud Scheme
The general manager of a Southern California ambulance company was sentenced today to 78 months in federal prison for his role in a $5.5 million scheme to defraud the Medicare program.
February 6, 2015; U.S. Attorney; District of Minnesota: Owner and Director of Eden Prairie Daycare Center Pleads Guilty to Theft of Public Money
United States Attorney Andrew M. Luger today announced the guilty plea of KHADRA ABDISAFAD HIRSI, 47, for stealing money in the form of child care subsidies from the U.S. Department of Health and Human Services and the State of Minnesota. The defendant pleaded guilty on February 4, 2015, before Judge Donovan W. Frank in U.S. District Court in St. Paul, Minn., to one count of Theft of Public Money.
February 6, 2015; U.S. Department of Justice: United States Settles False Claims Act Suit Against Good Shepherd Hospice Inc. and Related Entities
Today, Good Shepherd Hospice Inc., Good Shepherd Hospice of Mid America Inc., Good Shepherd Hospice, Wichita, L.L.C., Good Shepherd Hospice, Springfield, L.L.C., and Good Shepherd Hospice - Dallas L.L.C. (collectively Good Shepherd) agreed to pay $4 million to resolve allegations that Good Shepherd submitted false claims for hospice patients who were not terminally ill. Good Shepherd is a for-profit hospice headquartered in Oklahoma City which provides hospice services in Oklahoma, Missouri, Kansas and Texas.
February 6, 2015; U.S. Department of Justice: Unlicensed Detroit Doctor Convicted in $4.69 Million Medicare Fraud Scheme
A federal jury in Detroit today convicted an unlicensed physician for his participation in a nearly $4.7 million Medicare fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department's Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI's Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office.
February 6, 2015; U.S. Department of Justice: Medtronic Inc. to Pay $2.8 Million to Resolve False Claims Act Allegations Related to "SubQ Stimulation" Procedures
Medical device manufacturer Medtronic Inc. has agreed to pay the United States $2.8 million to resolve allegations under the False Claims Act that Medtronic caused certain physicians to submit false claims to federal health care programs for a medical procedure known as "SubQ stimulation," the Justice Department announced today. Medtronic Inc. is a medical technology company based in Minnesota.
February 5, 2015; U.S. Department of Justice: Minnesota-Based ev3 to Pay United States $1.25 Million to Settle False Claims Act Allegations
Medical device manufacturer ev3 Inc., formerly known as Fox Hollow Technologies Inc., has agreed to pay the United States $1.25 million to resolve allegations under the False Claims Act that Fox Hollow caused certain hospitals to submit false claims to Medicare for unnecessary inpatient admissions related to minimally-invasive atherectomy procedures, the Justice Department announced today.
February 4, 2015; U.S. Attorney; Eastern District of Kentucky: Somerset Optometry Practice to Pay U.S. Government $800,000 to Settle False Claims Act Violations
LONDON, KY - An optometry practice in Pulaski County has agreed to pay the U.S. Government $800,000 to settle civil allegations that it billed federal health care programs for medically unnecessary and worthless eye examinations provided to nursing home residents over the course of several years.
February 4, 2015; U.S. Attorney, Western District of Tennessee: Ageless Men's Health, LLC To Pay $1.6 Million To The Government For Overbilling Medicare And Tricare
Memphis, Tenn. - Ageless Men's Health, LLC (AMH) will pay $1.6 million to the government to resolve allegations that it billed Medicare and Tricare for medically unnecessary evaluation and management services (office visits) while administering testosterone replacement therapy shots. AMH has approximately 30 locations throughout the United States and operates testosterone replacement therapy clinics.
February 4, 2015; U.S. Attorney, District of Connecticut: FEDERAL LAW ENFORCEMENT AUTHORITIES ANNOUNCE FORMATION OF TASK FORCE TO FIGHT PUBLIC CORRUPTION
United States Attorney Deirdre M. Daly and representatives from five federal law enforcement agencies today announced the formation of the Connecticut Public Corruption Task Force to investigate corrupt public officials, the misuse of public funds and related criminal activity.
February 4, 2015; U.S. Attorney, Southern District of Florida: Delray Beach Doctor Charged with Health Care Fraud
A Delray Beach doctor has been charged with eight counts of health care fraud.
February 4, 2015; U.S. Attorney; District of New Jersey: Thirty-five Defendants - Including 24 Doctors - Have Pleaded Guilty to Roles in Massive Scheme
NEWARK, N.J. - A Middlesex County doctor with practices in Jersey City, New Jersey, today admitted accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
February 4, 2015; U.S. Attorney; Eastern District of Pennsylvania: Doctor Indicted On Charges He Illegally Distributed Drugs From Two Offices
PHILADELPHIA - Dr. Jeffrey Bado, 59, of Philadelphia, PA, was charged today by indictment with illegally distributing pain medications from his Philadelphia and Bryn Mawr medical offices, announced United States Attorney Zane David Memeger. Bado is charged with two counts of maintaining a drug-involved premises, 200 counts of illegally distributing oxycodone, a Schedule II controlled substance, outside the usual course of professional practice and for no legitimate medical purpose, as well as 33 counts of health care fraud and four counts of making false statements to federal agents.
February 3, 2015; Department of Justice: Home Health Agency Owner Sentenced to 10 Years in Prison for Role in Miami Health Care Fraud Scheme
A South Florida man was sentenced to 10 years in prison today in connection with a long-running $6.2 million Medicare fraud scheme involving Professional Medical Home Health LLC (Professional Home Health), a Miami home health care agency that purported to provide home health and therapy services, as well as similar schemes at two additional Miami home health care agencies. A second defendant was also sentenced to two years in prison today for his role as a patient recruiter in the fraud scheme at Professional Home Health.
February 3, 2015; U.S. Attorney; Southern District of Texas: McAllen Area Ambulance Company Owner Pleads Guilty in Health Care Fraud Scheme
McALLEN, Texas - Frank Gonzalez, 32, has pleaded guilty to conspiracy to commit health care fraud and aggravated identity theft, announced U.S. Attorney Kenneth Magidson and Texas Attorney General Ken Paxton. Gonzalez, of Mission, is the owner of a McAllen area ambulance transportation company who was charged in a federal indictment for his role in a scheme to defraud Medicare and Texas Medicaid through fraudulent billings.
February 2, 2015; U.S. Attorney; Southern District of Texas: Husband and Wife Convicted in Multi-Million Dollar Healthcare Fraud Scheme
HOUSTON - William Owuama, 55, and Marla Owuama, 47, of Houston, have entered guilty pleas to charges related to a healthcare fraud scheme in which they billed Medicare for more than $9 million, announced U.S. Attorney Kenneth Magidson.
February 2, 2015; U.S. Department of Justice: Community Health Systems Professional Services Corporation and Three Affiliated New Mexico Hospitals to Pay $75 Million to Settle False Claims Act Allegations
Community Health Systems Professional Services Corporation (CHSPSC) and three affiliated New Mexico hospitals (collectively CHS) have agreed to pay the United States $75 million to settle allegations that they violated the False Claims Act by making illegal donations to county governments which were used to fund the state share of Medicaid payments to the hospitals, the Justice Department announced today. CHSPSC is based in Franklin, Tennessee, and manages more than 200 affiliated hospitals in 29 states. The three New Mexico hospitals are Eastern New Mexico Medical Center in Chaves County, Mimbres Memorial Hospital and Nursing Home in Luna County and Alta Vista Regional Medical Center in San Miguel County.
February 2, 2015; U.S. Attorney, Northern District of Alabama: Former Non-Profit Health Clinics CEO Arrested on 112-Count Indictment
BIRMINGHAM - Federal agents this morning arrested JONATHAN WADE DUNNING, former chief executive officer of two non-profit health clinics for the poor and homeless, based on a 112-count superseding indictment returned by a federal grand jury last week, announced U.S. Attorney Joyce White Vance, Federal Bureau of Investigation Special Agent in Charge Roger C. Stanton, Internal Revenue Service-Criminal Investigation Division Special Agent in Charge Veronica Hyman-Pillot, and U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office Special Agent in Charge Derrick L. Jackson.
February 2, 2015; U.S. Attorney, Southern District of New York: New York City Employee Sentenced In Manhattan Federal Court For Million-Dollar Medicaid Fraud
Preet Bharara, United States Attorney for the Southern District of New York, announced today that AKIM MURRAY was sentenced in Manhattan federal court to 63 months in prison for orchestrating a substantial Medicaid fraud. MURRAY, a former employee of the Medicaid Reimbursement Unit of the New York City Human Resources Administration ("HRA"), was sentenced today by U.S. District Judge Richard M. Berman. MURRAY pled guilty in September 2014 to one count of conspiracy to commit health care fraud for abusing his access as an HRA employee in order to have dozens of checks amounting to over a million dollars issued to his friends and criminal associates, who in turn gave him a substantial cut of the proceeds.
February 2, 2015; U.S. Attorney, Eastern District of Texas: Nigerian Sentenced for East Texas Health Care Fraud Violations
TYLER, Texas - A 44-year-old woman, formerly of Port Harcourt, Nigeria, has been sentenced to federal prison for a health care fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. Vivian Yusuf pleaded guilty on Sep. 17, 2014, to conspiracy to commit health care fraud and was sentenced to 87 months in federal prison today by U.S. District Judge Michael Schneider.

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