Month: March 2022

Source: United States Department of Justice News

SCRANTON —The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Bogdon, age 28, formerly of Harvey’s Lake, Pennsylvania, was sentenced today by U.S. District Court Judge Robert D. Mariani to 14 years’ imprisonment for drug distribution resulting in death.  Bogdon was also ordered to serve 3 years of supervised release upon release from custody.

According to United States Attorney John C. Gurganus, Bogdon previously pleaded guilty to drug distribution resulting in death.  Bogdon admitted that on December 12, 2017, he provided fentanyl, a Schedule II controlled substance, to an 18-year old female in Kingston, Pennsylvania, causing her death. 

The case was investigated by the Federal Bureau of Investigation (FBI) in Scranton, and the Kingston Police Department.  Assistant United States Attorney Michelle Olshefski prosecuted the case.

This case was part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.”

This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.  Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

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Source: United States Department of Justice News

The Medical Director of two South Florida addiction treatment facilities was convicted today after a 15-day trial of engaging in a scheme that fraudulently billed approximately $112 million for substance abuse services that were never provided or were medically unnecessary.

“Santeiro’s conviction demonstrates the unwavering commitment of the Department of Justice’s Sober Homes Initiative to protecting patients and prosecuting fraudulent substance abuse treatment facilities,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Rather than ‘do no harm,’ Santeiro, driven by greed, used his medical license to do unconscionable harm to vulnerable patients struggling with addiction. The department will relentlessly pursue these cases to ensure patients get the care they deserve.”

According to court documents and evidence presented at trial, Jose Santeiro, 72, of Miami Lakes, Florida, a doctor, worked with others to unlawfully bill for approximately $112 million of addiction treatment services that were never rendered and/or were medically unnecessary at two addiction treatment facilities where Santeiro was the Medical Director. The facilities were Second Chance Detox LLC, dba Compass Detox (Compass Detox), an inpatient detox and residential facility, and WAR Network LLC (WAR), a related outpatient treatment program.

The evidence showed that Santeiro and others admitted patients for medically unnecessary detox services, the most expensive kind of treatment the facilities offered. Patient recruiters offered kickbacks to induce patients to attend the programs and then gave them illegal drugs to ensure admittance for detox at Compass Detox. Evidence at trial also showed that Santeiro submitted false and fraudulent claims for excessive, medically unnecessary urinalysis drug tests that were never used in treatment. Santeiro and others then authorized the readmission of a core group of patients who were shuffled between Compass Detox and WAR to fraudulently bill for as much as possible, even though the patients did not need the expensive treatment for which they were repeatedly admitted. Santeiro also prescribed Compass Detox patients with a so-called “Comfort Drink” to sedate them, ensure they stayed at the facility, and keep them coming back. The evidence further showed that Santeiro’s log-in was used, with his knowledge, by others to sign electronic medical files to make it appear as if Santeiro had provided treatment himself when he did not.

“Fraudulent billing schemes like this deprive vulnerable patients of needed medical care and divert valuable resources from America’s health care system,” said FBI Assistant Director Luis Quesada of the Criminal Investigative Division. “Today’s conviction is a clear warning to anyone engaged in health care fraud that the FBI, together with our partners, will aggressively pursue you and hold you accountable for your actions.”

Santeiro was convicted of conspiracy to commit health care fraud and wire fraud and eight counts of health care fraud. He faces up to 20 years in prison for the conspiracy count and up to 10 years in prison for each health care fraud count. A federal district court judge will determine the sentences after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI, Department of Health and Human Services, Office of Inspector General, and the Broward County Sherriff’s Office investigated the case.

Senior Litigation Counsel Jim Hayes of the National Rapid Response Strike Force and Trial Attorneys Jamie de Boer and Andrea Savdie of the Criminal Division’s Fraud Section are prosecuting the case.

The National Rapid Response Strike Force, Los Angeles Strike Force, and Miami Strike Force lead the Department of Justice’s Sober Homes Initiative, which was announced in the 2020 National Health Care Fraud Takedown to prosecute defendants who exploit vulnerable patients seeking treatment for drug and/or alcohol addiction.

Source: United States Department of Justice News

The operators of a Key West, Florida, labor staffing company, Phoenix ADB Services Inc., pleaded guilty today to tax and immigration crimes related to the operation of their business.

Former City of Key West Police Officer Igor Kasyanenko and Roman Riabov both pleaded guilty to one count of conspiring to defraud the United States and harbor aliens and induce them to remain in the United States. Mikus Berzins and Andrejs Kozlovs both pleaded guilty to one count of knowingly hiring 10 or more aliens who were not authorized to work in the United States.

According to court documents, from approximately 2014 to 2020 Berzins, Kasyanenko and Riabov owned and operated Phoenix ADB Services Inc. Kozlovs worked for the company from approximately 2016 to 2020. As part of their respective guilty pleas, all four men admitted to facilitating the employment of individuals in hotels, bars and restaurants in Key West and other locations, even though the employees were not authorized to work in the United States. In addition, all four men admitted they paid the workers without withholding Social Security, Medicare and income taxes from their wages, and then did not report those wages to the IRS. Kasyanenko and Riabov also admitted they encouraged workers to enter the United States and remain in the country, in violation of immigration laws.

All four defendants are scheduled to be sentenced on May 27. Kasyanenko and Riabov face a maximum penalty of five years in prison, a period of supervised release, restitution and monetary penalties. Berzins and Kozlovs face a maximum penalty of five years in prison, a period of supervised release and monetary penalties.

A federal district court judge will determine each defendant’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida made the announcement.

U.S. Department of Homeland Security, Homeland Security Investigations, and IRS-Criminal Investigation are investigating the case.

Senior Litigation Counsel Sean Beaty and Trial Attorneys Jessica A. Kraft and Nicholas J. Schilling Jr. of the Tax Division and Assistant U.S. Attorney Chris Clark for the Southern District of Florida are prosecuting the case.