MEDICAL CLINIC MANAGER INDICTED IN MEDICARE FRAUD CONSPIRACY WHICH INCLUDED ILLEGAL KICKBACKS

FROM:  U.S. JUSTICE DEPARTMENT  

Wednesday, October 8, 2014

Manager of Three Los Angeles Medical Clinics Indicted in $4 Million Medicare Fraud Scheme

An indictment was unsealed today charging two managers and operators of three Los Angeles medical clinics with Medicare fraud and conspiracy to pay illegal kickbacks for medical procedures that were never actually provided.  

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; Special Agent in Charge Glenn R. Ferry of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Director in Charge Bill Lewis of the FBI’s Los Angeles Field Office made the announcement.

Hovik Simitian, 47, of Los Angeles, and Anahit Shatvoryan, 49, of Glendale, California, were each charged in the Central District of California with one count of conspiracy to commit health care fraud, six counts of health care fraud and one count of conspiracy to pay health care kickbacks.

According to allegations in the indictment, Simitian and and Shatvoryan managed and operated three medical clinics – Columbia Medical Group Inc., Life Care Medical Clinic and Safe Health Medical Clinic – out of two suites in the same Los Angeles office building.  From approximately February 2010 through June 2014, Simitian and Shatvoryan paid marketers illegal kickbacks to recruit Medicare beneficiaries to the clinics.  They then submitted false claims to Medicare for services – including procedures such as anorectal manometry and nerve conduction tests – that were not medically necessary and never actually provided.

From approximately February 2010 through June 2014, the clinics allegedly submitted a total of $4,526,791 in false and fraudulent claims to Medicare, and Medicare paid $1,668,559 on those claims.

The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.

This case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California.  This case is being prosecuted by Trial Attorneys Blanca Quintero and Alexander F. Porter of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

SEC, U.S. ATTORNEY, FBI ANNOUNCE CHARGES AGAINST 5 IN ALLEGED STOCK MANIPULATION CASE

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission, the U.S. Attorney for the District of Massachusetts, and the Federal Bureau of Investigation today announced charges against five individuals whose attempt to manipulate shares of Boston-based Amogear Inc. was caught by an FBI undercover operation.

According to the SEC and criminal cases filed in federal court in Boston, the defendants knew that Amogear was a shell company without any real operations, but schemed to boost its price and profit by selling their own shares.  What the parties didn’t know was that the FBI controlled Amogear and used it to obtain evidence of attempted stock manipulation.  To protect investors, the SEC suspended trading in Amogear’s securities on February 10, as the attempted stock manipulation was underway.

The charges follow a series of cases since December 2011 in which the SEC suspended trading in seven companies and criminal authorities charged 22 individuals with using kickbacks and other schemes to trigger investments in microcap stocks, convicting 18 to date.  Small “microcap” companies often trade for pennies per share and many do not file financial reports with the SEC.  The fact that investors often cannot find accurate information about microcap companies can make the microcap stock market a fertile ground for fraud and abuse.

Andrew Ceresney, director of the SEC’s Enforcement Division, said: “This case is an outstanding example of law enforcement creativity and cooperation trumping microcap fraudsters.  By obtaining control of a shell company, using it to collect evidence of a manipulation scheme, and suspending trading before the scheme succeeded, we have protected investors from harm.”

“These defendants brazenly attempted to manipulate Amogear’s stock,” said Paul G. Levenson, director of the SEC’s Boston Regional Office.  “It didn’t occur to them that the FBI and SEC were a step ahead of them.”

“As is clear from the combined efforts of the U.S. Attorney’s Office, the FBI, and the SEC, market manipulation will not be tolerated,” said Carmen M. Ortiz, U.S. Attorney for the District of Massachusetts. “The prosecution of corporate and securities fraud is a top priority of the Department of Justice and a top priority for this Office.  As is demonstrated by the recent charges, we will continue to develop new techniques to detect and prosecute those engaged in market abuse.”

“Fund representatives, CEOs, traders, fund managers, equities analysts, lawyers and publicists should take note that Boston FBI agents purposefully designed multiple undercover operations aimed directly at rooting out market manipulation and insider trading.  As the scope and design of our undercover operations become well-known, no one should think that future undercover operations will be the same as prior ones because in this instance the FBI took control of a publicly traded company making it nearly impossible to discover,” said Vince Lisi, Special Agent in Charge of the FBI’s Boston Division.

SEC Boston Regional Office Director Paul G. Levenson, U.S. Attorney Carmen M. Ortiz, and FBI Special Agent in Charge Vincent B. Lisi  announced the charges.  The criminal case is being prosecuted by Assistant U.S. Attorney Vassili Thomadakis of the Economic Crimes Unit and SEC attorneys Eric Forni and Andrew Palid, who were appointed Special Assistant U.S. Attorneys.  The SEC’s investigation was led by Michele T. Perillo, and Martin F. Healey will handle the SEC’s litigation.

BAIL BONDS BRIBERY CASE ENDS WITH FORMER SHERIFF'S OFFICE SERGEANT SENTENCED TO PRISON

FROM:  JUSTICE DEPARTMENT 
Thursday, January 16, 2014
Former Portsmouth Sheriff’s Office Sergeant Sentenced for Conspiracy and Bribery

A former sergeant of the Portsmouth Sheriff’s Office (PSO) was sentenced to serve 15 months in prison today for accepting bribes in exchange for favors and referrals.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Acting U.S. Attorney Dana J. Boente of the Eastern District of Virginia made the announcement.

Melvin Hike, 65, of Portsmouth, Va., was sentenced by U.S. District Judge Arenda L. Wright Allen of the Eastern District of Virginia.   Hike was also sentenced to serve three years of supervised release and to pay a $10,000 fine.

On Oct. 8, 2013, Hike pleaded guilty to conspiracy and federal programs bribery.   According to court documents, throughout the relevant time period of 2008 to 2012, Hike was a PSO sergeant assigned to the warrant squad.   Ulysses Stephenson, aka “Tugger,” was a bail bondsman based in Portsmouth whose income depended on the number of arrestee clients he served.   At various times between 2008 and 2012, Stephenson gave Hike cash payments and other items of value, and in exchange, Hike referred arrestees to Stephenson as prospective clients.   Stephenson previously pleaded guilty to conspiracy and federal programs bribery in connection with bribing Hike, and he was sentenced to 30 months in prison on Nov. 2, 2012.

This case was investigated by the FBI.   The case was prosecuted by Trial Attorneys Monique Abrishami and Peter Mason of the Criminal Division’s Public Integrity Section and Special Assistant U.S. Attorney Amy E. Cross of the Eastern District of Virginia.

FBI OFFERS REWARD FOR INFORMATION REGARDING AN ALLEGED DOMESTIC COMMUNIST TERRORIST

FROM:  FEDERAL BUREAU OF INVESTIGATION 
Mollie Halpern: The FBI is offering a reward of up to $20,000 for information leading to the arrest of alleged domestic terrorist Donna Joan Borup.

Christos G. Sinos: Borup may be living on the run, but the FBI will not stop looking for her.

Halpern: I’m Mollie Halpern of the Bureau, and this is Wanted by the FBI. Donna Borup was participating in a demonstration at JFK International Airport in Queens in September 1981 when….

Sinos: She became violent by tossing a caustic substance into the eyes of a Port Authority police officer who was on duty at the time.

Halpern: That was Supervisory Special Agent Christos Sinos, who also says the officer was left partially blinded. At the time of the incident, Borup was a member of the May 19th Communist Organization—a Marxist-Lenist group advocating the armed revolution and overthrow of the United States government.

Borup, a New Jersey native, has ties to the Garden State and Pennsylvania. She uses several aliases and dates of birth. She is highly intelligent and may have a photographic memory.

Sinos: It may be 32 years later, but the police officer deserves justice.

Halpern: If you have information on Borup’s whereabouts, call your local FBI field office.

CRIMINAL INVESTIGATOR INDICTED FOR ALLEGEDLY ASSAULTING HANDCUFFED MAN IN JAIL

FROM:  U.S. JUSTICE DEPARTMENT
Friday, November 22, 2013
Alabama Sheriff’s Investigator Indicted for Unlawfully Detaining and Assaulting Handcuffed Man at County Jail

The Department of Justice announced today that a federal grand jury in the Middle District of Alabama has returned an indictment against J. Keith McCray, a criminal investigator with the Macon County, Ala., Sheriff’s Office for violating the rights of a man he unlawfully seized and assaulted.

McCray, 41, is charged with two counts of deprivation of rights under color of law and one count of witness tampering.  On July 4, 2013, the victim was going door-to-door in McCray’s neighborhood attempting to sell alarm systems.  According to the indictment, McCray unlawfully seized the victim using a firearm, and then brought the victim to the county jail.  The indictment alleges that at the jail, McCray struck the victim while he was handcuffed, which resulted in bodily injury.  The indictment further alleges that McCray engaged in witness tampering when he intimidated the victim and corruptly persuaded him not to file a complaint for the assault.

If convicted, McCray could face a statutory maximum sentence of 10 years in prison and a $250,000 fine for each deprivation-of-rights count.  He could face a statutory maximum sentence of 20 years in prison and a $250,000 fine for the witness tampering charge.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.

This case is being investigated by the Federal Bureau of Investigation and the Alabama Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams of the Middle District of Alabama and Trial Attorney Chiraag Bains of the department’s Civil Rights Division.

FORMER BROKERAGE FIRM OPERATIONS BOSS INDICTED FOR NOT PAYING TAXES ON INCOME

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, October 25, 2013
Former Brokerage Firm Operations Head Indicted for Tax Crimes

An indictment was unsealed today charging Dominick Pannitti, formerly of North Bellmore, N.Y., with tax crimes, the Justice Department announced.

According to the indictment, which was returned by a grand jury on Sept. 26, 2013, Pannitti was Head of Operations at a securities brokerage firm in Syosset, N.Y.  The securities firm had an automated system designed to adjust customers’ trading accounts for amounts less than $1,000.  During 2005 and 2006, Pannitti used the automated system to credit his own trading accounts hundreds of times in increments less than $1,000.  Pannitti was not entitled to most of these credits, which totaled over $570,000.  Pannitti concealed from his accountant the income he obtained and failed to report the income on his tax returns.

A trial date has not been scheduled.  An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.  Pannitti faces a potential maximum sentence of eight years in prison and a potential fine of up to $500,000.

The case was investigated by the Internal Revenue Service (IRS) - Criminal Investigation and the FBI.  The case is being prosecuted by Trial Attorneys Mark Kotila and Jeffrey Bender of the Justice Department’s Tax Division.

MEMBERS OF ALLEGED LOAN SHARKING-ILLEGAL GAMBLING ORGANIZATION CHARGED

FROM:  U.S. JUSTICE DEPARTMENT

Friday, August 23, 2013
Alleged Members of Violent Loan Sharking and Illegal Gambling Organization Charged in Philadelphia

An indictment was unsealed charging nine people in a loan sharking and illegal gambling ring allegedly run out of several Philadelphia businesses.

The charges were announced today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and Edward J. Hanko, Special Agent in Charge of the FBI’s Philadelphia Division.

Ylli Gjeli, 48, Fatimir Mustafaraj, 41, George Markakis, 43, Gezim Asllani, 34, Rezart Rahmi Telushi, 40, Eneo Jahaj, 26, and Ardit Pone, 35, all of Philadelphia; Erion Murataj, 35, of Huntingdon Valley, Penn.; and Brian Jackson, 35, of Harleysville, Penn., were arrested this morning.  The defendants are named in an indictment charging racketeering conspiracy, racketeering collection of unlawful debt, making extortionate extensions of credit, collections of extensions of credit by extortionate means, operating an illegal gambling business and possession of a firearm in furtherance of a crime of violence.

“The indictment unsealed today charges nine defendants with operating a criminal enterprise built on illegal gambling and a violent extortion racket,” said Acting Assistant Attorney General Raman.  “The Justice Department will not stand by as criminal organizations victimize our communities.  Today’s charges demonstrate our ongoing commitment to working alongside our federal, state and local counterparts to root out organized crime.”

“The indictment charges the defendants with running a violent loan sharking and gambling enterprise, using intimidation, threats and actual violence as part of their illegal business,” said U.S. Attorney Memeger.  “We will not tolerate this type of criminal activity that preys upon financial weakness and threatens the physical safety of the individuals in debt and their innocent family members.”
           
“The defendants allegedly victimized people twice over,” said FBI Special Agent in Charge Hanko.  “They provided loans at outrageous interest rates to those unable to obtain loans from traditional sources and then used threats and violence to collect on those illegal loans.  Today's arrests demonstrate the FBI’s continued commitment to ridding Philadelphia of organized crime, wherever we find it.”

“Individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable,” said Special Agent in Charge of Internal Revenue Service-Criminal Investigation (IRS-CI) Akeia Conner.  “IRS Criminal Investigation is committed to ‘following the money trail’ to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”

According to the indictment, the defendants and their associates used businesses located in Philadelphia – including the Lion Bar, Blackbird Café, “Ylli’s 2 Brothers,” First England Pizza and various coffee shops, among others – to conduct the enterprise’s loan sharking activities and illegal gambling business.  The defendants allegedly generated money by making and collecting on loans with usurious rates of interest; using intimidation, threats and violence to make and collect on loans; and making loans to betting customers whose debts were incurred through the enterprise’s illegal gambling business.

Members and associates of the enterprise allegedly cultivated their reputation for violence by threatening customers with dangerous weapons such as a firearm or hatchet; using implied threats and intimidation; telling customers that if they did not pay their debts someone would kill them, break their legs or physically harm them or their family members in some other way; and physically assaulting subordinate members and associates.  For example, the indictment alleges that Gjeli asked a customer why he had come to the basement of the Lion Bar.  He then grabbed a hatchet with one hand, grabbed the customer’s arm with the other hand and slammed the hatchet onto the table right after the customer pulled his hand away.  It is further alleged that defendant Gjeli placed a gun to the same customer’s head and threatened him.

 It is further alleged that the defendants attempted to conceal the existence and operations of the enterprise from law enforcement by: limiting their discussions of criminal activities when on the phone, using cryptic and coded language to describe criminal activities, such as “pizza” to describe a loan; conducting pat-downs and body searches of customers to check for weapons and recording devices; and conducting the enterprise’s transactions primarily in cash.

According to the indictment, Gjeli was a leader and “boss” of the organization; Mustafaraj, aka “Tony,” was a leader and “muscle.”  Both allegedly directed other members in the loan sharking activities and illegal gambling business, approved loans, used intimidation and threats of violence against customers, collected weekly loan payments, physically assaulted subordinate members and their associates, supervised the illegal gambling business, provided cash to pay customer’s gambling wins and otherwise financed the gambling business, collected gambling debts and made loans to customers whose debts were incurred through the illegal gambling business.  Markakis, aka “George the Greek” and “Fat George,” was allegedly a leader of the enterprise who directed other members in the illegal gambling business.  Murataj, aka “Ben” and “Paul,” and Asllani, aka “Sam,” were allegedly “collectors” who assisted Gjeli and Mustafaraj in making loans and regularly collected weekly loan payments from customers.  Telushi, aka “Luigi,” was allegedly a “collector” who regularly collected weekly loan payments from customers.  Jahaj, aka “Nimo,” Jackson, aka “Mark,” and Pone were allegedly “bookies” who operated parts of the illegal gambling business and regularly collected gambling debts.  Jahaj and Jackson also allegedly set up and administered online accounts to facilitate customer betting and used the enterprise’s loan sharking activities to convert the gambling debts to loans.

If convicted of all charges, Gjeli and Mustafaraj face a maximum sentence of life in prison.  The remaining defendants each face a maximum sentence of 20 years in prison.

An indictment is an accusation, and defendants are presumed innocent unless and until proven guilty.

The case was investigated by the FBI, IRS-CI, U.S. Immigration and Customs Enforcement (ICE) – Homeland Security Investigations (HSI), Pennsylvania State Police, Montgomery County, Penn., Detectives and the New Jersey State Police.  It is being prosecuted by Assistant U.S. Attorney Salvatore L. Astolfi and Trial Attorney Jerome Maiatico of the Criminal Division’s Organized Crime and Gang Section.

FBI SEEKING INFORMATION REGARDING TARGETED MURDER OF POLICE OFFICER

FROM: FEDERAL BUREAU OF INVESTIGATION

Mollie Halpern: The FBI and its law enforcement partners are seeking information about the murder of police officer Jason Ellis. Chief Division Counsel of the Louisville, Kentucky FBI Mary Trotman…

Mary Trotman: The FBI has just recently approved up to $50,000 for information for the identification, arrest, and convictions of those responsible.

Halpern: I’m Mollie Halpern, and this is Wanted by the FBI. Officer Ellis was headed home at the end of his shift in the early morning of May 25 when he was ambushed on an exit ramp of the Blue Grass Parkway in Bardstown, Kentucky. He was shot multiple times. Kentucky State Police Lieutenant Jeremy Thompson…

Jeremy Thompson: When a police officer is specifically targeted, that is a higher danger to the public.

Halpern: Officer Ellis, a canine handler, played for the Cincinnati Reds minor league baseball team and coached little league.

Thompson: Someone has information, and that information could help us catch the killer of a fine police officer, husband, and father.

Halpern: Report tips to the FBI at (502) 263-6000 or the KSP [Kentucky State Police] at (270) 766-5078. Visit www.fbi.gov for more information.

MEDICAL DIRECTOR AND 6 THERAPISTS ARRESTED FOR ALLEGED ROLES IN $63 MILLION HEALTH CARE FRAUD SCHEME

FROM:  U.S. DEPARTMENT OF JUSTICE
Tuesday, July 16, 2013

Florida Health Care Medical Director and Six Therapists Arrested for Alleged Roles in $63 Million Fraud Scheme

The former medical director at defunct health provider Health Care Solutions Network (HCSN) and six therapists were arrested today, accused of conspiring to fraudulently bill Medicare and Florida Medicaid more than $63 million.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer; Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office, made the announcement after the indictment was unsealed following the arrests.

The former HCSN medical director, Roger Rousseau, 71, of Miami, was indicted on July 11, 2013, and charged with conspiracy to commit health care fraud and two counts of health care fraud. In addition, six therapists from Miami – Doris Crabtree, 61; Angela Salafia, 65; Liliana Marks, 46; Ruben Busquets, 49; Alina Fonts, 47; and Blanca Ruiz, 59 – were also charged in the same indictment with conspiracy to commit health care fraud. Fonts was also charged with two counts of health care fraud, and Crabtree, Salafia, Marks and Busquets were each charged with two counts of making false statements related to health care matters. The indictment also seeks forfeiture of proceeds from the alleged healthcare fraud offenses.

According to the indictment, HCSN purported to provide intensive mental health treatment to Medicare and Medicaid beneficiaries in Miami and Hendersonville, N.C., from approximately 2004 through 2011 for purported mental health services that were not medically necessary and often never provided.  The indictment also alleges that in Miami, HCSN paid kickbacks to assisted living facility owners and operators who, in exchange, referred beneficiaries to HCSN.  In total, HCSN is alleged to have fraudulently billed Medicare and Medicaid approximately $63.7 million, from which HCSN allegedly received payments totaling approximately $28 million.

Rousseau served as the medical director for HCSN in Florida, and the indictment alleges that he routinely signed what he knew to be fabricated and altered medical records without ever reviewing the materials, and, in most instances, without ever meeting with the patient.  The indictment also alleges that Crabtree, Salafia, Marks, Busquets, Fonts and Ruiz fabricated HCSN medical records to support false and fraudulent claims for partial hospitalization program services that were not medically necessary and were not provided.

The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

The case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. The case is being prosecuted by Fraud Section Trial Attorney Allan J. Medina.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion.  In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

FORMER UNIVERSITY PROFESSOR CHARGED WITH PRODUCING CHILD PORN

FROM: U.S. DEPARTMENT OF JUSTICE
Monday, June 17, 2013

Former University Professor Charged in California with Engaging in Sexual Conduct with Minors and Producing Child Pornography
Walter Lee Williams Is the 500th Addition to Fbi Top Ten Most Wanted List


Walter Lee Williams, a former university professor, has been indicted for allegedly engaging in sexual conduct with minors and producing child pornography, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Assistant Director Ronald T. Hosko of the FBI Criminal Investigative Division announced today.

Today, the FBI added Williams to its "Ten Most Wanted Fugitives" list, making him the 500th addition to the list.

Williams was charged in an indictment unsealed on Friday, June 14, 2013, in U.S. District Court in the Central District of California. The indictment, which was filed on April 30, 2013, charges Williams with one count of producing child pornography, one count of traveling for the purpose of engaging in illicit sexual conduct with a minor and two counts of engaging in illicit sexual conduct in foreign places.

The indictment alleges Williams traveled from Los Angeles to the Philippines in January 2011 to engage in sex acts with two 14-year-old boys he met online in 2010. Prior to his travel, Williams allegedly engaged in sexual activity via Internet webcam sessions with these boys and expressed a desire to visit them in the Philippines to have sex. While in the Philippines, he allegedly engaged in sex acts with both boys and produced sexually explicit photos of one of the boys. Williams fled the Los Angeles area approximately one week after returning from the Philippines.

Williams is a 64-year-old White male. He is 5’9", weighs approximately 180 pounds and has grayish-brown hair and brown eyes. Williams has previously resided in Palm Springs, Calif., and he was affiliated with a religious organization known as the Buddhist Universal Association in Los Angeles. Williams has an extensive history of travel throughout the Southeast Asia region, specifically the Philippines. He has reportedly resided in Indonesia, Polynesia and Thailand. Williams is also alleged to have owned property in Thailand. He may also travel to Mexico and Peru.

The FBI is offering a reward of up to $100,000 for information leading directly to the arrest of this subject, the newest addition to the "Ten Most Wanted Fugitives" list. This is an ongoing investigation.

Trial Attorneys Michael Grant and Herbrina Sanders from the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting this case. The FBI Los Angeles field office is investigating the case.

The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.

LA COSA NOSTRA CAPO PLEADS GUILTY TO PART IN RACKETEERING CONSPIRACY

FROM: U.S. DEPARTMENT OF JUSTICE
Friday, April 19, 2013
Philadelphia La Cosa Nostra Capo Pleads Guilty to Racketeering Conspiracy

Anthony Staino, 55, of Swedesboro, N.J., pleaded guilty yesterday to participating in a racketeering conspiracy as a capo in the Philadelphia La Cosa Nostra (LCN) Family and committing loan sharking and illegal gambling.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and Edward J. Hanko, Special Agent in Charge of the FBI’s Philadelphia Division, made the announcement after the plea was accepted by U.S. District Judge Eduardo C. Robreno of the Eastern District of Pennsylvania.

Staino pleaded guilty to conspiring to conduct and participate in the affairs of the Philadelphia LCN Family through a pattern of racketeering activity. He faces a maximum penalty of 70 years in prison when he is sentenced on Jul. 17, 2013.

Through court documents and statements yesterday in court, Staino admitted that, as a made member and capo of the Philadelphia LCN Family, he gave a usurious loan to an undercover FBI agent and used threats of violence to collect payments on the loan. Staino also admitted that he ran an illegal electronic gambling device business for the mob, providing video poker machines and other gambling devices for bars, restaurants, convenience stores, coffee shops and other locations in Philadelphia and its suburbs, and then collected the illegal gambling proceeds.

The case is being investigated by the FBI, the Internal Revenue Service-Criminal Investigation, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations and the U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.

The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.

ATTORNEY GENERAL HOLDER SPEAKS REGARDING EXPLOSIONS IN BOSTON

FROM: U.S. DEPARTMENT OF JUSTICE

Tuesday, April 16, 2013

Statement of Attorney General Eric Holder on the Ongoing Investigation into Explosions in Boston

The Attorney General released the following statement today on the ongoing investigation into the explosions in Boston:

"I want to express my deepest sympathies to the victims of yesterday’s heinous attack in Boston, to those who suffered injuries, and to those who lost friends and loved ones. All of you will be in my thoughts and prayers.

"As our nation struggles to make sense of this attack, I want to assure the citizens of Boston – and all Americans – that the U.S. Department of Justice, the FBI, and all of our federal, state, and local partners are working tirelessly to determine who was responsible for these unspeakable acts, and to make certain they are held accountable to the fullest extent of the law and by any means available to us. To this end, I have directed that the full resources of the Department be deployed to ensure that this matter is fully investigated. We will continue working closely with the Boston Police Department and the Massachusetts State Police – who have performed superbly – to respond to this tragedy, to maintain a heightened state of security, and to prevent any future attacks from occurring.

"As President Obama stated earlier today, we are treating this event as an act of terror. This morning, I met with the President and my fellow members of his national security team to discuss our continuing response. Although it is not yet clear who executed this attack, whether it was an individual or group, or whether it was carried out with support or involvement from a terrorist organization – either foreign or domestic – we will not rest until the perpetrators are brought to justice. The FBI is spearheading a multi-agency investigation through the Boston Joint Terrorism Task Force. They are devoting extensive personnel and assets to this effort – and have already begun conducting exhaustive interviews, analyzing evidence recovered from the scene, and examining video footage for possible leads. In addition, the ATF is providing bomb technicians, explosives assets, and other substantial investigative support. The DEA and U.S. Marshals Service are providing further assistance. And the Office of Justice Programs will coordinate victim support that the City of Boston and the Commonwealth of Massachusetts may request under the Anti-terrorism Emergency Assistance Program.

"As our active and comprehensive investigation unfolds, these federal assets are coordinating with prosecutors from the U.S. Attorney’s Office for the District of Massachusetts, the Justice Department’s National Security Division, and federal agencies across the government – including members of the Intelligence Community. This matter is still in the early stages, and it’s important that we let the investigation run its full course. I urge members of the public to remain calm, cooperate with law enforcement, and be vigilant. The FBI has set up a tip line – at 1-800-CALL-FBI – for anyone who has information, images, or details relating to yesterday’s explosions along the Boston Marathon route. We are particularly interested in reviewing video footage captured by bystanders with cell phones or personal cameras near either of the blasts. In an investigation of this nature, no detail is too small.

"Finally, I want to recognize and thank all of the brave law enforcement officials, firefighters, National Guardsmen, medical staff, bystanders, and other first responders in Boston yesterday afternoon who heard the explosions, or received reports of casualties, or saw the shattered glass and rising smoke, and rushed to provide assistance to those in need.

"Each of these remarkable women and men placed the safety of others above their own. Their heroic actions undoubtedly saved lives. And their stories of courage and selflessness remind us that – even in our darkest moments – the American people have always displayed an extraordinary capacity for resilience. We will always be strongest when we stand united. And although today our hearts are broken, my colleagues and I are resolved to bring those responsible for this cowardly act to justice. We will be relentless in our pursuit of the individual or group that carried out this attack, while staying true to our most sacred values. And – as our investigation continues, I am confident that our nation will recover, and that we will emerge from this terrible tragedy not only safer, but stronger, than ever before."

HOMELAND SECURITY OIG SPECIAL AGENT INDICTED FOR CONSPIRACY, OBSTRUCTION OF JUSTICE AND RECORDS FALSIFICATION

FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, April 9, 2013
Former Department of Homeland Security Office of Inspector General Special Agent in Charge Indicted in Texas for Role in Records Falsification Scheme

A former U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) special agent in charge and another special agent were indicted in the Southern District of Texas late yesterday for their roles in a scheme to falsify records and to obstruct an internal field office inspection, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Special Agent in Charge Armando Fernandez of the FBI San Antonio Field Office.

The indictment returned by a federal grand jury in Brownsville, Texas, charges Eugenio Pedraza, 49, of McAllen, Texas, with six counts of falsification of records in federal investigations, five counts of obstructing an agency proceeding, one count of obstruction of justice and one count of conspiracy. The indictment also charges Marco Rodriguez, 40, of Mission, Texas, with two counts of falsification of records in federal investigations, two counts of obstructing an agency proceeding and one count of conspiracy.

DHS-OIG is the principal component within DHS with the responsibility to investigate alleged criminal activity by DHS employees, including corruption affecting the integrity of U.S. borders.

According to the indictment, in September 2011, DHS-OIG conducted an internal inspection of its McAllen Field Office to evaluate whether its internal investigative standards and policies were being followed. At that time, Pedraza was the special agent in charge of the McAllen Field Office, and Rodriguez was a special agent stationed there. According to the indictment, in anticipation of the inspection, Pedraza allegedly directed Rodriguez and other DHS-OIG employees to engage in a scheme to falsify documents in open criminal investigative case files, including numerous investigations in which DHS employees were suspected of participating in the unlawful smuggling of undocumented aliens and/or narcotics into the United States.

More specifically, the indictment charges that at Pedraza’s direction, DHS-OIG employees allegedly created and placed into these investigative files backdated memoranda of activity that falsely reflected investigative activity by agents that had not occurred; backdated case review worksheets that falsely reflected supervisory case reviews that Pedraza had not conducted with his subordinate agents; and backdated, unsent letters that were signed by Pedraza and purported to inform the FBI of the opening of a DHS-OIG investigation.

According to the indictment, the scheme’s purpose was to conceal severe lapses in DHS-OIG’s investigative standards from individuals conducting an internal field office inspection. The scheme was allegedly devised to conceal Pedraza’s failure to ensure that investigations were being conducted promptly and thoroughly, his failure to provide his subordinates with adequate training and supervision, and his failure to ensure that the FBI was being timely notified of DHS-OIG’s investigations.

The indictment also charges Pedraza with allegedly directing two DHS-OIG employees to falsify memoranda of activity on additional occasions, and with obstructing justice by removing the falsified supervisory case review sheets that he had created from DHS-OIG files after becoming aware of the FBI and grand jury investigation into his conduct.

In a related case, on Jan. 17, 2013, Wayne Ball, a former DHS-OIG special agent, pleaded guilty in U.S. District Court for the Southern District of Texas before U.S. District Judge Randy Crane to one count of a multi-object conspiracy to falsify records in federal investigations and to obstruct an agency proceeding for his participation in the scheme. Ball is scheduled to be sentenced on July 31, 2013.

The charge of falsification of records in federal investigations carries a maximum penalty of 20 years in prison. The charge of obstructing an agency proceeding carries a maximum penalty of five years in prison. The charge of obstruction of justice carries a maximum penalty of 20 years in prison. The charge of conspiracy carries a maximum penalty of five years in prison. Each of these charges carry a maximum fine of $250,000.

An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The case is being prosecuted by Trial Attorneys Eric L. Gibson and Timothy J. Kelly of the Criminal Division’s Public Integrity Section. The case is being investigated by agents of the FBI, San Antonio Division.

ALLEGED EXTORTION OF DETROIT RESTAURANT OWNER

FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, February 21, 2013
Two Men Arrested for Alleged Extortion of Detroit-Area Restaurant Owner

Two men were arrested today on charges of allegedly extorting a Detroit-area restaurant owner, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan and Robert D. Foley III, Special Agent in Charge of the FBI Detroit Field Division.

Giuseppe D’Anna, aka "Joe," 60, and Girolamo D’Anna, aka "Mimmo," 48, were charged in an indictment unsealed today in U.S. District Court in the Eastern District of Michigan. Both defendants made their initial court appearances today in Detroit.

The defendants are charged in a three-count indictment with one count of Hobbs Act conspiracy and two counts of attempted Hobbs Act extortion, each of which carries a maximum penalty of 20 years in prison. According to the indictment, the defendants and other co-conspirators allegedly attempted to extort the owner of a Shelby Township, Mich., restaurant from approximately 2009 through approximately April 2011.

Indictments are only charges and not evidence of guilt. The defendants are presumed to be innocent until and unless proven guilty.

The investigation of this case was led by the FBI’s Detroit Field Division. Assistant U.S. Attorney Eric Straus of the Eastern District of Michigan and Principal Deputy Chief David Jaffe of the Organized Crime and Gang Section in the Justice Department’s Criminal Division are prosecuting the case on behalf of the United States.

CALIFORNIA WOMAN GOES TO PRISON FOR SEX TRAFFICKING

FROM: U.S. DEPARTMENT OF HOMELAND SECURITY

Former Sacramento woman sentenced to 9 years for sex trafficking


OAKLAND, Calif. — A former Sacramento woman was sentenced Wednesday to nine years in federal prison on charges stemming from a probe by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the FBI that linked her to a scheme to sex traffic teenage girls.

Helen Jean Singh (née Kearney), 22, pleaded guilty earlier this year to participating in a sex trafficking conspiracy involving the prostitution of teenage females. During Wednesday's sentencing, Singh accepted responsibility for her actions.

A federal grand jury indicted Singh and her husband, Mahendar "Mike" Singh, on the sex trafficking conspiracy charge in December 2011. According to the indictment, the pair recruited teenage girls by promising money, drugs and a "family-like environment." The couple maintained control over their victims by providing drugs, using physical force and threats of physical force, and fostering a climate of fear. The Singh's used the Internet to advertise their prostitution enterprise, which spanned from Sacramento County to multiple Bay Area counties.

"Few crimes strike at our community the way sex trafficking does," U.S. Attorney Melinda Haag said. "By sexually exploiting children and young adults for financial gain, sex traffickers have shown that greed has no bounds. My office will continue to lead efforts by law enforcement to fight the menace that is sex trafficking."

The Singhs were arrested in August 2011 after the South San Francisco Police Department responded to a motel near the San Francisco Airport and found Mahendar Singh with three teenage girls. The affidavit alleges the defendants used an Internet website to advertise their victims and employed cell phones and text-messaging to make arrangements with customers.

"While no prison sentence can ever compensate for the physical and emotional toll experienced by trafficking victims, this lengthy prison term should serve as a sobering warning about the consequences facing those who engage in this reprehensible practice," said Clark Settles, special agent in charge ICE Homeland Security Investigations (HSI) San Francisco. "Human traffickers prey on the powerless and the vulnerable. ICE Homeland Security Investigations and its federal law enforcement partners are committed to protecting those who cannot protect themselves."

"The FBI will continue to work with our local, state and federal law enforcement partners to relentlessly pursue and bring to justice sex traffickers who exploit and victimize juveniles," said Acting Special Agent in Charge Michael Gavin of FBI San Francisco. "We will also work with our community partners to help those who are victimized get the assistance they need."

In addition to HSI and the FBI, the other agencies involved in the case included the South San Francisco Police Department; the San Mateo County District Attorney's Office; the Human Trafficking Prosecution Unit of the Criminal Section, Civil Rights Division; U.S. Department of Justice; and the Child Exploitation and Obscenity Section of the Criminal Division, U.S. Department of Justice.

The sentence was handed down by U.S. District Court Judge Phyllis J. Hamilton. Judge Hamilton also sentenced Helen Singh, who was and will remain in custody, to a five-year period of supervised release following her prison term and ordered her to forfeit property and make restitution of $45,000 to one of the victims. Mahendar Singh, who also pleaded guilty previously, received the same sentence April 18.

Assistant U.S. Attorney Andrew S. Huang prosecuted the case with the assistance of legal assistant Vanessa Vargas.

Human trafficking is one of the most heinous crimes that HSI investigates. In its worst manifestation, human trafficking is akin to modern-day slavery. HSI relies on tips from the public to dismantle these organizations. Trafficking victims are often hidden in plain sight, voiceless and scared. The public is urged to report suspicious human trafficking activity to the ICE HSI Tip Line at
1-866-347-2423 or report tips online at www.ice.gov/tips.

U.S. MARSHALS ARREST SUSPECT IN FIVE BANK ROBBERIES

FROM: U.S. MARSHALS SERVICE

U.S. Marshals Arrest the 'Haggler Bandit' for Bank Robberies
Memphis, TN
- The U.S. Marshals Gulf Coast Regional Task Force tracked a known gang member and suspected bank robber to his sister’s home and arrested him around noon today without incident.

Kevin McKinley, dubbed by FBI agents in California as the "Haggler Bandit," is a suspect in five bank robberies that occurred during the week of Aug. 26, 2012, in the cities of Los Angles, Monrovia and Pasadena, Calif. The Pasadena Police and the U.S. Marshals Pacific South West Regional Fugitive Task Force working together developed information that the robberies were committed by McKinley, a known member of the Bloods street gang. Further information was gathered that McKinley was in the Memphis, Tenn., area.

The U.S. Marshals Gulf Coast Regional Fugitive Task Force was contacted at approximately 10 a.m. today. Using information provided by the U.S. Marshals Pacific South West Regional Fugitive Task Force, McKinley was tracked to his sister’s house and arrested. He was taken to the Shelby County Jail where he awaits extradition.

The U.S. Marshals Gulf Coast Coast Regional Fugitive Task Force is a multi-agency task force with divisions in Tennessee, Alabama, Mississippi and Louisiana. The Western Tennessee Division of the GCRFTF has offices in Memphis and Jackson, and its membership is primarily comprised of Deputy U.S. Marshals, Shelby County Sheriff’s Deputies, Madison County Sheriff’s Deputies, Jackson Police Officers, and the Tennessee Department of Corrections Special Agents. The primary mission of the Task Force is to arrest violent offenders and sexual predators.

FORMER POLICE OFFICER SENTENCED TO 181 MONTHS IN PRISON FOR PROVIDING SECURITY FOR A COCAINE TRANSACTION

FROM: U.S. DEPARTMENT OF JUSTICE

Friday, November 16, 2012
Former Police of Puerto Rico Officer Sentenced to 181 Months in Prison for Providing Armed Security for Drug Transaction

WASHINGTON – A former Police of Puerto Rico officer was sentenced today to 181 months in prison for her role in providing armed security for a drug transaction, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodriguez-Velez of the District of Puerto Rico, and Special Agent in Charge Joseph S. Campbell of the FBI’s San Juan Field Office.

Yamil Navedo Ramirez, 39, was sentenced today by U.S. District Judge Juan M. Perez-Gimenez in the District of Puerto Rico.

In May 2012, a federal jury in San Juan found Navedo Ramirez guilty of one count of attempting to possess with the intent to distribute more than five kilograms of cocaine and possession of a firearm in furtherance of a drug transaction. The jury acquitted her of one count of conspiracy to possess with the intent to distribute more than five kilograms of cocaine.

According to the evidence presented in court, Navedo Ramirez provided security on April 14, 2010, for what she believed was an illegal cocaine deal. In fact, the purported drug transaction was part of an undercover FBI operation. On that day, Navedo Ramirez provided armed protection for the deal and escorted the buyer in and out of the transaction.

Navedo Ramirez was charged in a superseding indictment unsealed on Oct. 28, 2010, along with 89 law enforcement officers in Puerto Rico and 44 other individuals charged as part of the FBI undercover operation known as Guard Shack.

In return for the security she provided, Navedo Ramirez received a cash payment of $2,000. Judge Perez Gimenez ordered the defendant to forfeit the $2,000 she received in exchange for providing security for the drug transaction.

The case was prosecuted by Trial Attorneys Kevin Driscoll and Monique Abrishami of the Criminal Division’s Public Integrity Section. The case was investigated by the FBI. The U.S. Attorney’s Office for the District of Puerto Rico also participated in the investigation and prosecution of this case.

SAUDI MAN SENTENCED FOR ATTEMPTED USE OF WEAPON OF MASS DESTRUCTION

FROM: U.S. DEPARTMENT OF JUSTICE

Tuesday, November 13, 2012
Saudi Student Sentenced to Life in Prison for Attempted Use of Weapon of Mass Destruction

Khalid Aldawsari Purchased Bomb Materials and Researched U.S. Targets

Khalid Ali-M Aldawsari, 22, a citizen of Saudi Arabia and resident of Lubbock, Texas, was sentenced today by U.S. District Judge Donald E. Walter in federal court in Amarillo, Texas, to life in prison.

Aldawsari was convicted on June 27, 2012, on an indictment charging one count of attempted use of a weapon of mass destruction in connection with his purchase of chemicals and equipment necessary to make an improvised explosive device (IED) and his research of potential U.S. targets, including persons and infrastructure. He was lawfully admitted into the United States in 2008 on a student visa and was enrolled at South Plains College near Lubbock.

Today’s announcement was made by Sarah R. Saldaña , U.S. Attorney for the Northern District of Texas; Lisa Monaco, Assistant Attorney General for National Security; and Diego G. Rodriguez, Special Agent in Charge of the FBI Dallas Field Division.

According to court documents and evidence presented during trial, at the time of his arrest last year, Aldawsari had been researching online how to construct an IED using several chemicals as ingredients. He had also acquired or taken a substantial step toward acquiring most of the ingredients and equipment necessary to construct an IED and he had conducted online research of several potential U.S. targets. In addition, he had allegedly described his desire for violent jihad and martyrdom in blog postings and a personal journal.

"This case, in which private citizens paid attention to details and notified authorities of their suspicions, serves as a reminder to all private citizens that we must always be observant and vigilant, as there are some who intend to cause great harm," said U.S. Attorney Saldaña. "Khalid Aldawsari, acting as a lone wolf, may well have gone undetected were it not for the keen observations of private citizens. We owe them, and all the hundreds of hard-working members of our law enforcement community, our deepest gratitude."

"Khalid Aldawsari came to this country intent on carrying out an attack. He then began purchasing ingredients to construct a bomb and was actively researching potential targets in America. Thanks to the hard work of many agents, analysts and prosecutors, his plot was thwarted before anyone was harmed; he was convicted at trial and, today at sentencing, he was held accountable for his actions," said Assistant Attorney General Monaco.

"Today’s sentencing demonstrates our commitment to detecting, investigating and prosecuting individuals who seek to do harm to others in our country. Our success was the result of the cooperation of law enforcement and intelligence resources, particularly, the FBI’s North Texas Joint Terrorism Task Force, the Texas Tech Police Department, the Lubbock Police Department and the Lubbock County Sheriff’s Office," said FBI Special Agent in Charge Rodriguez. "The dedicated agents, officers, and analysts; the computer forensics team; and the linguists are all to be commended for their diligent work on this investigation and the U.S. Attorney’s Office in the Northern District for the successful prosecution of Mr. Aldawsari."

The government presented evidence that on Feb. 1, 2011, a chemical supplier reported to the FBI a suspicious attempted purchase of concentrated phenol by a man identifying himself as Khalid Aldawsari. Phenol is a toxic chemical with legitimate uses, but can also be used to make the explosive trinitrophenol, also known as T.N.P., or picric acid. Ingredients typically used with phenol to make picric acid, or T.N.P., are concentrated sulfuric and nitric acids.

Aldawsari attempted to have the phenol order shipped to a freight company so it could be held for him there, but the freight company told Aldawsari that the order had been returned to the supplier and called the police. Later, Aldawsari falsely told the supplier he was associated with a university and wanted the phenol for "off-campus, personal research." Frustrated by questions being asked over his phenol order, Aldawsari cancelled his order, placed an order with another company, and later emailed himself instructions for producing phenol. In December 2010, he had successfully purchased concentrated nitric and sulfuric acids.

Aldawsari used various email accounts in researching explosives and targets, and often sent emails to himself as part of this process. He emailed himself a recipe for picric acid, which was described in the email as a "military explosive" and also emailed himself instructions on how to convert a cell phone into a remote detonator and how to prepare a booby-trapped vehicle using household items. Aldawsari also purchased many other items, including a Hazmat suit, a soldering iron kit, glass beakers and flasks, a stun gun, clocks and a battery tester.

Excerpts from a journal found at Aldawsari’s residence indicated that he had been planning to commit a terrorist attack in the United States for years. One entry describes how Aldawsari sought and obtained a particular scholarship because it allowed him to come directly to the United States and helped him financially, which he said "will help tremendously in providing me with the support I need for Jihad." The entry continues: "And now, after mastering the English language, learning how to build explosives and continuous planning to target the infidel Americans, it is time for Jihad."

In another entry, Aldawsari wrote that he was near to reaching his goal and near to getting weapons to use against infidels and their helpers. He also listed a "synopsis of important steps" that included obtaining a forged U.S. birth certificate; renting a car; using different driver’s licenses for each car rented; putting bombs in cars and taking them to different places during rush hour; and leaving the city for a safe place.

Aldawsari conducted research on various targets and emailed himself information on these locations and people. One of the documents he sent himself, with the subject line listed as "Targets," contained the names and home addresses of three American citizens who had previously served in the U.S. military and had been stationed for a time at Abu Ghraib prison in Iraq. In others, Aldawsari sent himself the names of 12 reservoir dams in Colorado and California and listed two categories of targets: hydroelectric dams and nuclear power plants. He also sent himself an email titled "Tyrant’s House," in which he listed the Dallas address for former President George W. Bush. Aldawsari also conducted research that indicated he considered using infant dolls to conceal explosives and the possible targeting of a nightclub with an explosive concealed in a backpack.

DETROIT DOCTOR ARRESTED FOR ALLEGED ROLE IN $40 MILLION MEDICARE FRAUD

FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, September 20, 2012
Detroit-Area Doctor Charged for Role in Alleged $40 Million Medicare Fraud Scheme

WASHINGTON – A Detroit-area doctor was charged and arrested today in the Eastern District of Michigan for his alleged leading role in a $40 million Medicare fraud scheme involving physician home visits and home health services, announced the Department of Justice, the Department of Health and Human Services (HHS), the FBI and the HHS-Office of Inspector General (OIG). In addition to the arrest, law enforcement agents executed search warrants at three locations and seizure warrants for three bank accounts related to the scheme.

According to a criminal complaint unsealed today in U.S. District Court in Detroit, Dr. Hicham Elhorr, 45, masterminded a $40 million scheme involving the submission of fraudulent claims submitted to Medicare for services that were medically unnecessary and/or never provided through House Calls Physicians (HCP), a physician home visiting service he owned and operated. Elhorr allegedly submitted claims through HCP for physician home visits for patients who were never seen and for visits conducted by doctors who were not licensed. The complaint alleges Elhorr submitted claims to Medicare for physician home visits purportedly rendered when he was out of the country, when beneficiaries were hospitalized or when the beneficiary was dead.

Elhorr is also alleged to have referred Medicare beneficiaries for medically unnecessary home health services, as well as accepted kickbacks from home health agencies in exchange for writing these referrals. According to court documents, since January 2008, HCP has billed Medicare for approximately $9.2 million. In the same time period, HCP has allegedly referred Medicare beneficiaries for home health services that have resulted in approximately $30.8 million of reimbursements from Medicare.

Today’s charges were announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan; Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS-OIG Chicago Regional Office.

The case is being prosecuted by Trial Attorney Catherine K. Dick of the Criminal Division's Fraud Section. The investigations were conducted jointly by the FBI and HHS-OIG, as part of the Medicare Fraud Strike Force, supervised by the U.S. Attorney's Office for the Eastern District of Michigan and the Criminal Division's Fraud Section.

Criminal complaints contain merely charges, and defendants are presumed innocent until proven guilty.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,330 defendants who have collectively billed the Medicare program for more than $4 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

LA COSA NOSTRA CAPO SENTENCED FOR LOAN SHARKING AND ILLEGAL GAMBLING

FROM: U.S. DEPARTMENT OF JUSTICE
Monday, September 17, 2012
Philadelphia La Cosa Nostra Capo Sentenced to 57 Months in Prison

Martin Angelina, 50, of Philadelphia, was sentenced today to 57 months in prison for his participation in a racketeering conspiracy involving loan sharking and illegal gambling, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; Zane David Memeger, U.S. Attorney for the Eastern District of Pennsylvania and George C. Venizelos, Special Agent in Charge of the FBI’s Philadelphia Division.

Angelina was sentenced by U.S. District Judge Eduardo C. Robreno in the Eastern District of Pennsylvania. In addition to his prison term, Judge Robreno ordered Angelina to serve three years of supervised release. On Aug. 8, 2012, Angelina pleaded guilty to conspiring to conduct and participate in the affairs of the Philadelphia La Cosa Nostra (LCN) Family through a pattern of racketeering activity. At the time of the plea, Angelina admitted he attempted to collect payments related to usurious loans by using extortionate means and operated an illegal video poker machine business in furtherance of the racketeering conspiracy.

Angelina is among 14 members and associates of the Philadelphia LCN Family charged with crimes involving racketeering conspiracy, extortion, loan sharking, illegal gambling, witness tampering and theft from an employee benefit plan in a third superseding indictment returned by a federal grand jury in Philadelphia on July 25, 2012. The other defendants charged in the 52-count third superseding indictment included Philadelphia LCN Family boss Joseph Ligambi, Philadelphia LCN Family underboss Joseph Massimino, George Borgesi, Gaeton Lucibello, Anthony Staino Jr., Damion Canalichio, Louis Barretta, Gary Battaglini, Robert Verrecchia, Eric Esposito, Robert Ranieri, Joseph Licata and Louis Fazzini.

Lucibello pleaded guilty to racketeering conspiracy charges on Aug. 2, 2012, and was sentenced to 51 months in prison. Barretta also pleaded guilty to racketeering conspiracy charges on Sept. 5, 2012, and is awaiting sentencing on Nov. 26, 2012.

The trial for Ligambi, Massimino, Borgesi, Staino Jr., Canalichio, Battaglini, Licata and Fazzini is scheduled for Oct. 9, 2012. The trial for Verrecchia, Esposito and Ranieri has not yet been scheduled. Ligambi, Massimino, Borgesi, Canalichio, Licata and Fazzini are detained while awaiting trial. Staino Jr., Battaglini, Verrecchia, Esposito and Ranieri are free on bond while awaiting trial.

The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.

The case is being investigated by the FBI, the Internal Revenue Service-Criminal Investigation, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations and the U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.