Source: United States Attorneys General

Headline: Midlands Area Man Found Liable for $51 Million in Health Care Fraud

Columbia, South Carolina – The United States Attorney’s Office announced today that a federal jury found Floyd Calhoun “Cal” Dent, III, of Lexington, South Carolina, and his two co-conspirators liable for defrauding the federal healthcare programs Medicare and Tricare of over $51 million.  The unanimous verdict was handed down on January 31, 2018, by a federal jury in Charleston, South Carolina. 

The United States alleged that Mr. Dent, along with his co-conspirators, paid illegal kickbacks to physicians across the country in order to get them to order medically unnecessary blood tests from Health Diagnostics Laboratory, Inc. (“HDL”) of Richmond, Virginia, and laboratory Singulex, Inc. of Alameda, California, in violation of the Anti-Kickback Statute and the False Claims Act.

“This jury verdict sends a strong message of accountability to those who would seek to take advantage of federal health care programs,” said First Assistant U.S. Attorney Lance Crick.  “The District of South Carolina will continue to battle against Medicare and Tricare fraud.”

Over the course of the two week trial, the United States presented evidence that the defendants Cal Dent, Robert Bradford “Brad” Johnson of Hanceville, Alabama, and LaTonya “Tonya” Mallory of Richmond, Virginia, conspired to pay kickbacks to induce physicians to refer patients to HDL and Singulex.  The defendants arranged for “process and handling fees” of $17 to be paid to the physicians per referral and for the routine waiving of patient co-pays and deductibles.  As a result of those kickbacks, physicians referred patients’ blood samples to HDL and Singulex for medically unnecessary blood tests.  HDL and Singulex then submitted fraudulent claims to federal health care programs Medicare and Tricare for payment for the medically unnecessary tests. 

The verdict illustrates the government’s emphasis on combating health care fraud.  One of the most powerful tools in this effort is the False Claims Act.  Tips and complaints from all sources about potential health care fraud, waste, and abuse can be reported to the Department of Health and Human Services at 900-HHS-TIPS (800-447-8477). 

This case was investigated by Assistant U.S. Attorney James Leventis of the U.S. Attorney’s Office for the District of South Carolina; the Commercial Litigation Branch of the Justice Department’s Civil Division; the U.S. Attorney’s Office for the District of Columbia; Health and Human Services, Office of the Inspector General; the FBI; the U.S. Office of Personnel Management Office of Inspector General; and the Department of Defense Office of Inspector General, Defense Criminal Investigative Service.

The civil lawsuit was filed in the District of South Carolina and is captioned United States of America et al v. BlueWave Healthcare Consultants Inc., 9:14-cv-00230-RMG.

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Source: United States Attorneys General

Headline: Pennsylvania Business Owner Admits Defrauding Veterans’ GI Bill

Agrees to 60-Month Prison Term

NEWARK, N.J. – A Harrisburg, Pennsylvania, man today admitted his role in a conspiracy that fraudulently obtained more than $24 million from the Post 9/11 GI Bill, a federal education benefits program designed to help veterans who served in the armed forces following the terrorist attacks on Sept. 11, 2001, U.S. Attorney Craig Carpenito announced.

David Alvey, 51, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of conspiracy to commit wire fraud.

“Alvey and his codefendants stole money that was intended to provide educational opportunities to the armed services members who served following the attacks on 9/11,” U.S. Attorney Carpenito said. “Their scam targeted unwitting veterans, enrolling them in unapproved online courses without their knowledge. Our office will always work together with our law enforcement partners to find and stop this kind of government fraud, especially when it seeks to victimize those who serve our country with such courage.”

“The VA’s Post-9/11 GI Bill is a comprehensive educational program meant to help our nation’s veterans advance their education and careers as they move from military service to civilian life. Defrauding this important VA program costs our nation’s taxpayers and VA and does a tremendous disservice to our veterans,” Sean Smith, Special Agent in Charge, Northeast Field Office, U.S. Department of Veterans, Office of Inspector General, said. “VA OIG is committed to working closely with our fellow law enforcement partners and thanks the U.S. Attorney’s Office, District of New Jersey, for its dedication to this time-intensive, complex case.”

According to documents filed in this case and statements made in court:

The Post-9/11 GI Bill provides educational assistance to eligible veterans of the U.S. Armed Forces by paying for veterans’ tuition, housing costs, and other educational expenses as long as their courses meet certain criteria. Because these tuition benefits are paid by the United States directly to the school, all entities involved in developing and administering the courses must be fully disclosed to the United States in order to assess the courses for approval.

From 2009 through August 2013, Alvey – founder and president of Ed4Mil – Lisa DiBisceglie and Helen Sechrist, both of whom previously pleaded guilty to a similar wire fraud conspiracy count, and others, conspired to fraudulently obtain millions of dollars in tuition assistance and other education-related benefits under the Post-9/11 GI Bill.

DiBisceglie, then an associate dean at Caldwell University, helped Alvey get approval from Caldwell’s administration to develop and administer a series of non-credit online courses for veterans in Caldwell’s name. In order for the courses to be eligible for education benefits under the Post-9/11 GI Bill, DiBisceglie, Alvey, and others prepared and submitted an application with the Veterans Administration stating that the courses were developed, taught, and administered by Caldwell faculty and met Caldwell’s stringent educational standards. The courses were subsequently approved, and Alvey, Sechrist, and others aggressively marketed the courses to veterans who were eligible to receive the benefits.

However, Caldwell did not participate in developing or teaching the online courses. The veterans were instead enrolled in online correspondence courses developed and administered by a sub-contractor of Ed4Mil. Neither Ed4Mil nor its sub-contractor were disclosed to the government, and neither were eligible to receive Post-9/11 GI Bill benefits.

Alvey and others concealed the true nature of the courses from the government and the veterans who enrolled in the courses. Thousands of veterans enrolled in the online courses believing they were taking courses from Caldwell. The scheme caused the United States to pay more than $24 million in tuition benefits under the Post-9/11 GI Bill.

“David Alvey knowingly and willfully abused his position for personal gain and did so at the expense of those who truly deserve better – our veterans who were looking to make their dreams of a higher education a reality,” Debbi Mayer, Assistant Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office, said. “I’m proud of the work of OIG Special Agents and our law enforcement partners for holding Mr. Alvey accountable for his criminal actions. America’s veterans and students deserve nothing less.”

“The guilty plea by David Alvey sends a clear and unequivocal message that the FBI and our law enforcement partners will relentlessly pursue those who defraud the government.  This is the third conspirator who pleaded guilty in this fraud scheme. These crimes are especially egregious since they target our veterans and the educational system,” Timothy Gallagher, Special Agent in Charge of the Newark FBI Field Office, said.

The wire fraud conspiracy charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. As part of his plea agreement, Alvey has agreed to a prison term of five years and to forfeit proceeds of the crime, including $702,073 in cash proceeds, as well as artwork, and stock.  Sentencing is scheduled for May 15, 2018.

U.S. Attorney Carpenito credited special agents of the U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division, Northeast field office, under the direction of Special Agent in Charge Smith in Newark; the FBI, under the direction of Special Agent in Charge Gallagher in Newark; and the U.S. Department of Education, Office of Inspector General Eastern Regional Office, under the direction of Assistant Special Agent in Charge Mayer, with the ongoing investigation.

The government is represented by Assistant U.S. Attorneys David M. Eskew and David Malagold of the U.S. Attorney’s Office Criminal Division in Newark, Assistant U.S. Attorney Nicole Mastropieri of the Healthcare and Government Fraud Unit, and Assistant U.S. Attorney Jafer Aftab of the Asset Recovery and Money Laundering Unit.

Source: United States Attorneys General

Headline: Reeds Spring Man Pleads Guilty to Child Pornography, Faces at Least 25 Years in Prison

SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a convicted sex offender in Reeds Spring, Mo., who pretended to be a woman online in order to solicit sexually explicit photos from a teenage boy, pleaded guilty in federal court today to the sexual exploitation of a minor.

Jeffrey Raymond Everett, Jr., 22, of Reeds Spring, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in a Sept. 20, 2017, federal indictment. Everett has a prior state conviction for possession of child pornography.

According to today’s plea agreement, another student turned in the 16-year-old child victim’s cell phone at school because he found nude photos of the victim on the phone. Investigators found Facebook Messenger conversations between the victim and “Alecia Valentine,” who was later determined to be Everett.

In those messages, Everett – pretending to be Alecia Valentine – asks for sexually explicit images and videos of the victim, who sent numerous sexually explicit images and videos to Everett. The victim told law enforcement officers that he had engaged in several chat sessions with Alecia Valentine. Everett sent him pictures of a nude female, purportedly of Alecia Valentine, and requested that he send sexual pictures and videos of himself in return, which he did.

Under federal statutes, Everett is subject to a mandatory minimum sentence of 25 years in federal prison without parole, up to 50 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force and the Monett, Mo., Police Department.

Project Safe Childhood

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

Source: United States Attorneys General

Headline: Felons who Stole Guns Sentenced to Federal Prison

BOISE – Robby David Haley, 28, of Weiser, Idaho, and, Shawn Michael Hart, 28, of Payette, Idaho, were sentenced in federal court on Tuesday for unlawful possession of firearms, U.S. Attorney Bart M. Davis announced. U.S. District Judge David C. Nye ordered Haley to serve 30 months in prison followed by three years of supervised release and ordered Hart to serve 54 months in prison, followed by three years of supervised release. Judge Nye also ordered both defendants to pay restitution jointly and severally in the amount of $21,299.

According to court records, in February of last year, Haley and Hart broke into a home in Weiser, Idaho. The homeowner, who was out of state at the time, returned to discover that several items, including seven firearms and ammunition, were stolen. Several weeks later, Hart and Haley were arrested. Haley told police that he and Hart broke into the home, stole property including firearms, and pawned the property for cash. Haley and Hart, both felons, were prohibited from possessing firearms. Both pled guilty in federal court to one count of unlawful possession of firearms.

At his sentencing, Haley promised to work towards an associate degree in computer science while in prison to repay the victim. After the court sentenced Haley, the victim, a retired computer scientist, asked if she could use the restitution money to establish a fund for Haley’s education.

The case was investigated through the combined efforts of the Washington County Sheriff’s Office, the Ontario Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, a part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launches in 2001.

Source: United States Attorneys General

Headline: Nampa Man Sentenced to Prison on Federal Gun Charge

BOISE – Joseph Barry Foy, 27, of Nampa, Idaho, was sentenced yesterday to 65 months
in prison followed by three years of supervised release for possession of an unregistered firearm,
U.S. Attorney Bart M. Davis announced. A federal grand jury indicted Foy on September 12,
2017. Foy pleaded guilty on November 8, 2017.

According to court records, in July of 2017, police officers contacted Foy while
investigating an unrelated case in Canyon County. During the contact, officers found Foy in
possession of a sawed-off shotgun, with the barrel modified to a length of around 12 inches. Foy
is a member of the Norteño gang with an extensive criminal history including a conviction for
aggravated assault.

Possession of an unregistered firearm is punishable by up to ten years imprisonment,
three years of supervised release, a $250,000 fine, and a $100 special assessment.
This case was investigated by the Treasure Valley Metro Violent Crimes Task Force.
The Task Force is comprised of federal, state and local agencies, including the Federal Bureau of
Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department;
Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian
Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and
Parole.

This case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure
Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership
is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination,
cooperation, and collaboration on creating coherent regional growth. For more information, visit
treasurevalleypartners.org.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been
historically successful in bringing together all levels of law enforcement to reduce violent crime and
make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the
tide of rising violent crime in America a top priority. In October 2017, a part of a series of actions to
address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and
directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates
the lessons learned since PSN launches in 2001.

Source: United States Attorneys General

Headline: Mexican Man Sentenced for Unlawfully Reentering the United States

The United States Attorney for the District of Vermont and the Swanton Sector Office of the United States Border Patrol announce that Francisco Robles-Guerra, 41, a citizen of Mexico, was convicted and sentenced today in United States District Court in Rutland for reentering the United States after having previously been removed from the country subsequent to a felony conviction. Chief United States District Judge Geoffrey W. Crawford sentenced Robles-Guerra to time served. Robles-Guerra has been held without bail since his arrest last November. Custody of Robles-Guerra will be transferred from the United States Marshal’s Service to the Department of Homeland Security for removal proceedings.

According to court records, Robles-Guerra is a citizen of Mexico who first moved to the United States in 1994. In 1996, he was convicted of conspiracy to defraud the United States by possessing counterfeit resident alien cards and social security cards and was deported to Mexico. Robles-Guerra was then found in the United States and removed to Mexico two times in March 2004, and again in August 2017.

On November 26, 2017, Canadian authorities notified U.S. Border Patrol Agents that they had observed a man walking around the Canaan, Vermont Port of Entry in the woods toward the United States border. A Border Patrol Agent from the Beecher Falls Station found Robles-Guerra in a field on the United States side of the border. After a brief chase, Robles-Guerra was apprehended and arrested.

The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.

For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.

Robles-Guerra is represented by Assistant Federal Defender David McColgin. The prosecutor is Assistant U.S. Attorney Nicole Cate.

Source: United States Attorneys General

Headline: Justice Department Settles Discrimination Lawsuit Against Owners and Operators of Houston-Based Sports Bar

HOUSTON – The Justice Department announced today it has reached a settlement to resolve a lawsuit alleging discrimination on the basis of race, color and national origin by Ayman Jarrah and Land Guardian Inc., the owners and operators of 360 Midtown, a sports bar and lounge located in Houston. 

Today’s settlement resolves a lawsuit filed by the Department on Sept. 28, 2016, alleging that 360 Midtown, which previously operated as Gaslamp, engaged in a pattern or practice of illegal conduct by implementing discriminatory practices to discourage or deny admission to African-American, Hispanic and Asian-American patrons. The United States alleged that these practices included selectively imposing cover charges against minority patrons and selectively enforcing a dress code against them.   

“This settlement resolves serious allegations of racial discrimination,” said U.S. Attorney Ryan K. Patrick. “The announcement today should make clear that any such illegal bias in these types of establishments will not be tolerated in this district and reflects my office’s continued commitment to vigorously enforcing our nation’s civil rights laws.”

“No individuals should be denied admission to any place of public accommodation because of the color of their skin,” said Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division. “The Justice Department will continue to protect the rights of all persons to be free from discrimination on the basis of their race or national origin at bars, restaurants and other places of public accommodation”

Under the settlement agreement, defendants are required to comply with federal law by not discriminating against patrons on the basis of race, color or national origin; to adopt and implement non-discriminatory admissions criteria; to implement a system for receiving and investigating complaints of discrimination; and to conduct monitoring to ensure that 360 Midtown’s employees are acting in a non-discriminatory manner consistent with federal law.

Title II of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, color, religion or national origin in places of public accommodation, such as restaurants, hotels, movie theaters, nightclubs, stadiums and other places of exhibition or entertainment.  Under Title II, the Civil Rights Division can obtain injunctive relief that changes policies and practices to remedy customer discrimination. Title II does not authorize the Division to obtain monetary damages for individual customers who are victims of discrimination.

More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe they have experienced or witnessed unlawful discrimination in public accommodations may contact the Housing and Civil Enforcement Section at (202) 514-4713.

Source: United States Attorneys General

Headline: Navajo Man from Farmington Sentenced to Twelve Years for Federal Voluntary Manslaughter and Firearms Conviction

ALBUQUERQUE – Sage Andrew Yazzie, 21, an enrolled member of the Navajo Nation who resides in Farmington, N.M., was sentenced today in federal court in Santa Fe, N.M., to 144 months in prison for his conviction on voluntary manslaughter and firearms charges.  Yazzie will be on supervised release for three years after completing his prison sentence.

Yazzie was arrested on March 10, 2016, on a criminal complaint charging him with killing a Navajo man on the Navajo Indian Reservation in San Juan County, N.M., on Feb. 23, 2016.  According to the criminal complaint, Yazzie entered a residence and shot the victim in the head with a firearm.

Yazzie was indicted on March 23, 2016, and was charged with first-degree murder and with using and carrying a firearm in relation to a crime of violence.  According to the indictment, Yazzie committed the offenses on Feb. 23, 2016, in San Juan County.

On June 14, 2017, Yazzie pled guilty to a felony information charging him with voluntary manslaughter and discharging a firearm during a crime of violence.  In entering the guilty plea, Yazzie admitted that on Feb. 23, 2016, he entered a residence in Huerfano, N.M., and killed the victim during a sudden quarrel by shooting the victim with a handgun. 

This case was investigated by the Farmington office of the FBI, the Navajo Nation Division of Public Safety and the Farmington Police Department and was prosecuted by Assistant U.S. Attorneys Raquel Ruiz-Velez and Elaine Y. Ramirez.

Source: United States Attorneys General

Headline: St. Charles Man Indicted on Charges of Firearms Violations

St. Louis, MO – Taylor Wilson, 26, St. Louis, was indicted on February 1, 2018.

The indictment alleges various firearms offenses.  Specifically, it alleges that during the time of September 2015, through December 23, 2017, Wilson possessed a fully automatic machinegun and a rifle, neither of which were registered to him in the National Firearms Registration and Transfer Record. It also alleges that the machine gun had a defaced and obliterated serial number.

If Wilson is convicted, counts one, three and four of the indictment carry a maximum penalty of 10 years in prison and a $250,000 fine. Count two of the indictment carries a maximum penalty of 5 years in prison and a $250,000 fine. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case is being investigated by the Federal Bureau of Investigation. 

As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt.  Every defendant is presumed to be innocent unless and until proven guilty.