2012 Press Releases
October - December
12 October Fifteen Indictments
11 October Notice of Press Conference
4 October Medicare Fraud Strike Force - 91 Charged
4 October Medicare Fraud Strike Force - Media Advisory
4 October Medicare Fraud Strike Force - Takedown
12 October Fifteen Indictments
TWENTY-SIX INDIVIDUALS ARRESTED AS FEDERAL, STATE & LOCAL LAW ENFORCEMENT TARGET REPEAT OFFENDERS IN BATON ROUGE
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that the U.S. Attorney’s Office, East Baton Rouge District Attorney’s Office, Bureau of Alcohol Tobacco and Firearms, United States Marshal’s Service, East Baton Rouge Parish Sheriff’s Office, Baton Rouge Police Department, Louisiana State Police, Louisiana Division of Probation and Parole, conducted an operation which targeted repeat offenders. Many of these repeat offenders had ties to the 70805 area code.
The Baton Rouge Area Violence Elimination (BRAVE) law enforcement partners identified repeat offenders who met federal guidelines for prosecution. As a result, fifteen individuals were indicted by federal grand juries for weapons and drug-related charges. Eight of the fifteen had direct ties to the 70805 area code. As of yesterday, all fifteen defendants are in federal custody. Six of the fifteen federal defendants were arrested during yesterday’s operation.
In addition to the six federal arrests, an additional eleven individuals were arrested on state charges to include probation and parole violations. The majority of the eleven individuals also had ties to 70805. During the arrests, firearms, ammunition, and narcotics were also seized. As a result of the evidence seized, more charges are anticipated.
The following individuals were indicted by federal grand juries:
MICHAEL T. EARLY, age 20, of Baton Rouge, Louisiana, was indicted with one count of possession of a firearm by a convicted felon, in violation of Title 18, United State Code, Section 922(g)(1).
GERALD JOHNSON, a/k/a GERALD RENARD JOHNSON, age 24, of Baker, Louisiana, was indicted with one count of possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1), and one count of possession of marijuana, in violation of Title 21, United States Code, Section 844(a).
KEONNE TAYLOR, a/k/a KEONNE D. TAYLOR, age 24, of Baton Rouge, Louisiana, was indicted with one count of possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).
LAZAAR ALEXIS, a/k/a LAZAAR JUSTIN ALEXIS, age 29, of Baton Rouge, Louisiana, was indicted with one count of possession of a firearm by a convicted felon, in violation of Title 18, United State Code, Section 922(g)(1).
ADRIAN K. THOMPSON, age 35, of Baton Rouge, Louisiana, was indicted with one count of possession of a firearm by a convicted felon, in violation of Title 18, United State Code, Section 922(g)(1), one count of possession with the intent to distribute marijuana, in violation of Title 21, United States Code, Section 841(a)(1), one count of possession of cocaine and alprazolam, in violation of Title 21, United States Code, Section 844(a); and one count of possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A).
KEVIN BROWN, a/k/a KELVIN BROWN, age 41, of Baton Rouge, Louisiana, was indicted with one count of possession of a firearm by a convicted felon, in violation of Title 18, United State Code, Section 922(g)(1).
BYRON D. CARTER, age 29, of Baton Rouge, Louisiana, was indicted with one count of possession of a firearm by a convicted felon, in violation of Title 18, United State Code, Section 922(g)(1).
FRANCISCO JAVIER YANEZ-MUNIZ, age 21, of Baton Rouge, Louisiana, was indicted with one count of possession of a firearm by an alien illegally and unlawfully in the United States, in violation of Title 18, United State Code, Section 922(g)(5)(A).
DAMION L. ALEXANDER, a/k/a DAMIEN L. ALEXANDER, age 23, of Zachary, Louisiana, was indicted with one count of possession of a firearm by a convicted felon, in violation of Title 18, United State Code, Section 922(g)(1); and one count of possession of a stolen firearm, in violation of Title 18, United States Code, Section 922(j).
DESMOND J. RABY, age 28, of Baton Rouge, Louisiana, was indicted with two counts of possession with the intent to distribute marijuana, alprazolam, and hydrocodone, in violation of Title 21, United States Code, Section 841(a)(1); two counts of possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A); and two counts of possession of a firearm by a convicted felon, in violation of Title 18, United State Code, Section 922(g)(1).
ANTOINE MONTREAL BROWN, a/k/a ANTOINE MONTRALE BROWN, age 28, of Baton Rouge, Louisiana, was indicted with one count of possession of a firearm while subject to a court order, in violation of Title 18, United State Code, Section 922(g)(8).
CHRISTOPHER FOSTER, age 23, of Baton Rouge, Louisiana, was indicted with one count of possession of a firearm by a convicted felon, in violation of Title 18, United State Code, Section 922(g)(1).
DERRICK PITCHER, a/k/a DERRICK A. PITCHER, age 42, of Baton Rouge, Louisiana, was indicted with one count of possession with the intent to distribute marijuana, lisdexamfetamine, and morphine, in violation of Title 21, United States Code, Section 841(a)(1); one count of possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A); and one count of possession of a firearm by a convicted felon, in violation of Title 18, United State Code, Section 922(g)(1).
JEREMY D. BANKS, age 32, of Baton Rouge, Louisiana, was indicted with one count of possession with the intent to distribute cocaine base, in violation of Title 21, United States Code, Section 841(a)(1); and one count of possession of a firearm by a convicted felon, in violation of Title 18, United State Code, Section 922(g)(1).
JOHNNY LYNN ROBERTSON, JR., age 24, of Baton Rouge, Louisiana, was indicted with one count of possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).
NOTE: An indictment is a determination by a grand jury that probable cause exists to believe that offenses have been committed by a defendant. The defendant is presumed innocent until and unless proven guilty at trial.
11 October Notice of Press Conference
AT 11:00 A.M. FRIDAY, OCTOBER 12, 2012, A PRESS CONFERENCE REGARDING SIGNIFICANT CRIMINAL MATTERSWILL BE HELD ON THE FRONT STEPS OF THE UNITED STATES DISTRICT COURTHOUSE 777 FLORIDA STREET BATON ROUGE, LOUISIANA CAMERAS WILL BE ALLOWED FOR THIS EVENT [Please have cameras in place for 10:50 a.m.]
4 October Medicare Fraud Strike Force - 91 Charged
MEDICARE FRAUD STRIKE FORCE CHARGES 91 INDIVIDUALS FOR APPROXIMATELY $430 MILLION IN FALSE BILLING
WASHINGTON – Medicare Fraud Strike Force operations in seven cities have led to charges against 91 individuals – including doctors, nurses and other licensed medical professionals – for their alleged participation in Medicare fraud schemes involving approximately $429.2 million in false billing, Attorney General Eric Holder and Health and Human Services (HHS) Secretary Kathleen Sebelius announced today.
Attorney General Holder and Secretary Sebelius were joined in the announcement of the nationwide takedown by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, FBI Associate Deputy Director Kevin Perkins, Inspector General Daniel R. Levinson of the HHS Office of Inspector General (HHS-OIG) and Dr. Peter Budetti, Deputy Administrator for Program Integrity of the Centers for Medicare and Medicaid Services (CMS).
“Today’s enforcement actions reveal an alarming and unacceptable trend of individuals attempting to exploit federal health care programs to steal billions in taxpayer dollars for personal gain,” said Attorney General Holder. “Such activities not only siphon precious taxpayer resources, drive up health care costs, and jeopardize the strength of the Medicare program – they also disproportionately victimize the most vulnerable members of society, including elderly, disabled and impoverished Americans.”
“Today’s arrests put criminals on notice that we are cracking down hard on people who want to steal from Medicare,” said HHS Secretary Sebelius. “The health care law gives us new tools to better fight fraud and make Medicare stronger. In addition to the arrests made today, HHS used new authority from the health care law to stop future payments to many of the health care providers suspected of fraud, saving Medicare resources and taxpayer dollars from being lost to fraud in the first place.”
Dozens of charged individuals were arrested or surrendered in the last 24 hours as indictments were unsealed across the country. Together, those indictments charge more than $230 million in home health care fraud; more than $100 million in mental health care fraud and more than $49 million in ambulance transportation fraud; and millions more in other frauds.
HHS also suspended or took other administrative action against 30 health care providers following a data-driven analysis and based upon credible allegations of fraud. Under the Affordable Care Act, HHS is able to suspend payments until the resolution of an investigation.
The joint Department of Justice and HHS Medicare Fraud Strike Force is a multi-agency team of federal, state and local investigators and prosecutors designed to combat Medicare fraud through the use of Medicare data analysis techniques. More than 500 law enforcement agents from the FBI, HHS-OIG, multiple Medicaid Fraud Control Units, and other state and local law enforcement agencies participated in the takedown.
The defendants charged are accused of various health care fraud-related crimes, including conspiracy to commit health care fraud, health care fraud, violations of the anti-kickback statutes and money laundering. The charges are based on a variety of alleged fraud schemes involving various medical treatments and services such as home health care, mental health services, psychotherapy, physical and occupational therapy, durable medical equipment (DME) and ambulance services.
According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare for treatments that were medically unnecessary and oftentimes never provided. In many cases, court documents allege that patient recruiters, Medicare beneficiaries and other co-conspirators were paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could submit fraudulent billing to Medicare for services that were medically unnecessary or never provided. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of conspiring to submit a total of approximately $429.2 million in fraudulent billing.
“Today’s coordinated actions represent one of the largest Medicare fraud takedowns in Department of Justice history, as measured by the amount of alleged fraudulent billings,” said Assistant Attorney General Breuer. “We have made it one of the Department’s missions to hold accountable those who abuse the Medicare program for personal profit. And there are Medicare fraudsters in prisons across the country – some who will be there for decades – who can attest to our determination, and our effectiveness.”
“Health care fraud leads to higher health care costs and makes quality care more difficult to obtain,” said FBI Associate Deputy Director Perkins. “Working together to stop fraud, as we did today, will ensure that Americans’ hard-earned dollars are used to care for the sick – not to line the pockets of criminals.”
“Today’s coordinated operation demonstrates that law enforcement is flexible enough to address health care fraud in its many evolving forms,” said HHS Inspector General Levinson. “When home health agencies, durable medical equipment companies, pharmacies, or other health care providers are suspected of breaking the law, they can expect to be caught and held accountable.”
“This is the result of coordinated anti-fraud efforts – including Medicare flagging suspicious activity, efforts between agencies to investigate this criminal activity, and today’s actions by law enforcement and HHS,” said CMS Deputy Administrator for Program Integrity Budetti. “As we stop payments to these providers suspected of fraud, we continue our efforts to move from a pay-and-chase model to one where we stop fraudsters before they can successfully bill Medicare and Medicaid.”
In Miami, a total of 33 defendants are charged for their alleged participation in various fraud schemes involving a total of $204.5 million in false billings for home health care, mental health services, occupational and physical therapy, and DME. In one case, three defendants are charged for participating in a fraud scheme at LTC Professional Consultants and Professional Home Care Solutions Inc. which led to approximately $74 million in fraudulent billing for home health care. In another case, five defendants are charged for participating in a fraud scheme at Hollywood Pavilion which led to $67 million in fraudulent billing for mental health services.
Sixteen individuals, including three doctors and one licensed physical therapist, are charged in Los Angeles with participating in various fraud schemes involving a total of $53.8 million in false billings. In one case, four defendants are charged for allegedly participating in a fraud scheme at Alpha Ambulance Inc., which led to approximately $49.2 million in fraudulent billing for ambulance transportation. The case represents the largest ambulance fraud scheme ever prosecuted by the Medicare Fraud Strike Force. According to court documents, the defendants provided beneficiaries ambulance rides that were medically unnecessary.
In Dallas, 14 individuals – including two doctors and two registered nurses – are charged for their alleged participation in various fraud schemes involving a total of $103.3 million in false billings. In one case, three defendants – a medical doctor and two registered nurses – are charged with participating in a fraud scheme at Raphem Medical Practice and PTM Healthcare Services which led to approximately $100 million in fraudulent billing for home health care services. According to court documents, Dr. Joseph Megwa signed approximately 33,000 prescriptions for more than 2,000 unique Medicare beneficiaries from 2006 to 2011. Many of these Medicare beneficiaries had primary care physicians who never certified home healthcare services for them. In order to handle the volume of prescriptions, Megwa allegedly signed stacks of documents without reviewing them.
Seven individuals are charged in Houston for their participation in a fraud scheme at a hospital which led to $158 million in fraudulent billing for community mental health center services. According to court documents, the defendants who served as administrators at the hospital paid kickbacks – in the form of cigarettes, food and coupons redeemable for items available at the hospital’s “country stores” – to Medicare beneficiaries in exchange for those beneficiaries’ attendance at the hospital’s partial hospitalization programs (PHP). Allegedly, beneficiaries watched television, played games and engaged in other non-PHP activities rather than receiving the services for which the hospital billed Medicare. Previously, on Feb. 22, 2012, the assistant administrator of the hospital, Mohammad Kahn, pleaded guilty to conspiracy to commit health care fraud and paying kickbacks related to $116 million worth of fraudulent claims submitted to Medicare. After his guilty plea, an additional $42 million in fraudulent claims were discovered that are included in today’s totals.
In Brooklyn, 15 individuals, including one doctor and four chiropractors, are charged for their alleged participation in various fraud schemes involving a total of $23.2 million in false billings. In one case, nine defendants, including a medical doctor, are charged with participating in a fraud scheme at Cropsey Medical Care PLLC which led to approximately $13.8 million in fraudulent billing for physical therapy and related services. According to court documents, the defendants paid cash kickbacks to Medicare beneficiaries in exchange for physical therapy that was not medically necessary and on some occasions never provided to beneficiaries.
In Baton Rouge, four defendants, including a licensed practical nurse, are charged for their roles in fraud schemes involving approximately $2.4 million in false claims for medically unnecessary durable medical equipment.
In Chicago, two defendants, including a dermatologist and a psychologist, are charged for their roles in fraud schemes involving, according to court documents, millions of dollars in false claims for medically unnecessary laser treatments and psychotherapy services.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since their inception in March 2007, strike force operations in nine locations have charged more than 1,480 defendants who collectively have falsely billed the Medicare program for more than $4.8 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The cases announced today are being prosecuted and investigated by Medicare Fraud Strike Force teams comprising attorneys from the Fraud Section of the Justice Department’s Criminal Division and from the U.S. Attorneys’ Offices for the Southern District of Florida, the Southern District of Texas, the Northern District of Texas, the Central District of California, the Middle District of Louisiana, the Northern District of Illinois, and the Eastern District of New York, and agents from the FBI, HHS-OIG and state Medicaid Fraud Control Units, with assistance from the Justice Department’s Civil Division and the IRS.
The charges and allegations contained in the indictments are merely accusations and the defendants are presumed innocent unless and until proven guilty.
To learn more about HEAT, go to: www.stopmedicarefraud.gov.
4 October Medicare Fraud Strike Force - Media Advisory
DEPARTMENTS OF JUSTICE AND HEALTH AND HUMAN SERVICES OFFICIALS TO DISCUSS SIGNIFICANT MEDICARE FRAUD STRIKE FORCE ACTIONS
WASHINGTON – Officials from the Departments of Justice and Health and Human Services will hold a conference call on background TODAY, THURSDAY, OCT. 4, 2012, at 2:00 p.m. EDT to discuss Medicare Fraud Strike Force law enforcement actions that occurred today in Miami, Los Angeles, Dallas, Houston, Chicago, Brooklyn, N.Y., and Baton Rouge, La.
WHO: Officials from the Departments of Justice and Health and Human Services
WHAT: Background conference call
WHEN: TODAY, THURSDAY, OCT. 4, 2012 2:00 p.m. EDT
CALL IN #: 1- 800-860-2442
CONFERENCE NAME: Medicare Fraud Call
NOTE: Press inquiries regarding logistics should be directed to the Office of Public Affairs at 202-514-2007.
4 October Medicare Fraud Strike Force - Takedown
REMARKS AS PREPARED FOR DELIVERY BY ATTORNEY GENERAL ERIC HOLDER AT THE HEALTH CARE FRAUD TAKEDOWN PRESS CONFERENCE
WASHINGTON, D.C. Good afternoon. Today I’m joined by Department of Health and Human Services Secretary, Kathleen Sebelius; Assistant Attorney General of the Justice Department’s Criminal Division, Lanny Breuer; FBI Associate Deputy Director, Kevin Perkins; HHS Deputy Inspector General for Investigations, Gary Cantrell; and Deputy Administrator for Program Integrity of the Centers for Medicare and Medicaid Services, Dr. Peter Budetti – to announce a critical step forward in our ongoing fight against health care fraud.
Over the last 24 hours, Medicare Fraud Strike Force operations in seven different cities have conducted one of the largest health care fraud takedowns on record. Through a series of coordinated, nationwide law enforcement actions, charges have been brought against 91 individuals – including doctors, nurses, and other licensed medical professionals – for their alleged participation in fraud schemes involving nearly $430 million in false billings. That total includes over $230 million in home health care fraud, more than $100 million in mental health care fraud, and approximately $49 million in ambulance transportation fraud. Thanks to the outstanding work of federal authorities – and the assistance of state and local partners – as of today, most of these individuals have been arrested or surrendered.
Charges against these defendants include health care fraud, conspiracy to commit health care fraud, wire fraud, violations of the anti-kickback statutes, aggravated identity theft, and money laundering. These charges are based on a variety of allegedly fraudulent activities involving treatments and services that were either medically unnecessary or, in some cases, never actually rendered – ranging from home health care and mental health services, to psychotherapy, physical and occupational therapy, durable medical equipment services, and the largest ambulance fraud scheme ever prosecuted by the Medicare Fraud Strike Force.
Such activities not only siphon precious taxpayer resources, drive up health care costs, and jeopardize the strength of the Medicare program – they also disproportionately victimize the most vulnerable members of society, including elderly, disabled, and impoverished Americans. And, unfortunately, we allege that many of those charged today not only broke the law – but also violated their professional obligations, and sacred oaths, as medical practitioners. For example, in one case in Dallas, a doctor and two registered nurses are charged with writing more than 30,000 prescriptions for over 2,000 Medicare beneficiaries, resulting in roughly $100 million in fraud. These alleged actions represent an alarming, and unacceptable, nationwide trend – of individuals attempting to exploit federal health care programs – and, collectively, to steal billions in taxpayer dollars – for personal gain.
But we are fighting back. And today’s takedown underscores the fact that federal efforts to combat health care fraud have never been more strategic, more comprehensive, or more effective.
Since the creation of the Health Care Fraud Prevention and Enforcement Action Team – known as “HEAT” – in May of 2009, preventing and shutting down health care fraud schemes has become a top priority – for DOJ and HHS, for the entire Administration, and for our partners at every level of government and across both the public and private sectors. Today’s announcement represents the fifth significant enforcement action taken under HEAT. And there’s no question that this level of commitment is paying dividends.
Joint DOJ/HHS Medicare Fraud Strike Forces are now operating in 9 locations nationwide – in Miami, Los Angeles, Detroit, Houston, Brooklyn, Baton Rouge, Tampa, Chicago, and Dallas. Since the first Strike Force was launched in 2007, these teams have charged nearly 1,500 defendants for falsely billing the Medicare program more than $4.8 billion. And during the last fiscal year, those convicted in Strike Force cases received an average prison sentence of four years.
In addition to disrupting health care fraud schemes and advancing prosecutions, we’re also working to return precious funds to the public coffers – and, since 2009, have been able to recover more than $10.6 billion. Over the same period, for every dollar spent on combating health care fraud, we’ve returned more than seven dollars to the U.S. Treasury, the Medicare Trust Funds, and others.
However, as today’s announcement proves, we are not yet satisfied. And, in the fight against health care fraud, we will never be complacent.
Through HEAT, we’re taking this fight to a new level – by expanding engagement with state, local, and tribal partners; by streamlining federal investigations and prosecutions; and by leveraging resources and expertise. In each of our Strike Force locations, we’re moving aggressively to eradicate health care fraud in all its forms, to strengthen federal health care programs, and to bring the perpetrators of fraud crimes to justice.
I want to thank each of the dedicated investigators, prosecutors, law enforcement officers, and other agency partners whose tireless, collaborative work has made today’s announcement possible – and who stand on the front lines of our efforts to identify and shut down large-scale fraud schemes, like those detailed in the indictments handed down today.
Their actions prove that, despite the size of the challenge we face, progress is possible. And their dedication to this work is sending a clear message to those willing or attempting to commit health care fraud: that we will use every available tool and resource to find you, to stop you, and to punish you to the fullest extent of the law.
At this time, it is my privilege to turn things over to another critical leader in this work – my good friend, Secretary Kathleen Sebelius – who will provide additional information on today’s actions, as well as our efforts to build on this success and to carry this work into the future.