Month: June 2022

Source: United States Department of Justice News

Baltimore, Maryland – Norman Rosen, age 84, of Towson, Maryland, pleaded guilty today to conspiracy to distribute and dispense oxycodone in connection with his operation of Rosen-Hoffberg Rehabilitation and Pain Management Associates, P.A., where he was Medical Director and part owner.    

The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration, Washington Division; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (HHS-OIG); and Chief Melissa R. Hyatt of the Baltimore County Police Department.

According to his guilty plea, Norman Rosen, is a doctor and was licensed to practice medicine in the State of Maryland.  He served as the Medical Director and part-owner of Rosen-Hoffberg Rehabilitation and Pain Management (the “Practice”).  Rosen primarily worked at the Practice’s Towson, Maryland locations.  Rosen’s partner in the business and the Practice’s Associate Medical Director was Howard Hoffberg. 

According to Rosen’s guilty plea, patients at the Practice were often prescribed high doses of oxycodone, and other opioid medications.  Some patients were issued prescriptions for opioids after routinely providing aberrant urine toxicology screens, including positive results for cocaine, heroin, and other street drugs; positive results for controlled substances that were not prescribed by the Practice (which indicated the patient was likely buying medications off the street or was doctor-shopping); and/or negative results for the controlled substances prescribed by the Practice (which indicated prescribed substances were either not taken, being consumed too quickly, or sold by the patients).  Rosen knew that the Practice received complaints about the behavior of patients, including reports of suspected drug transactions in the parking lots near the Practice.  At times, patients were observed “nodding out” in the waiting area of the Practice.  Some patients tried to bring in urine that was not theirs in order to pass urine toxicology screens.  Some patients of the Practice overdosed and some of these patients required hospitalization and some died.  Several major pharmacies refused to fill any prescriptions issued by the Practice because of the high doses being prescribed.  Both Rosen and Hoffberg were aware of the conditions at the Practice and yet continued to prescribe medications to these patients.

As detailed in his plea agreement, as the Medical Director, Dr. Rosen established the rules for the Practice.  One of his rules was that the customer, i.e. the patient, is always right.  Sometimes, when other providers at the Practice discharged certain patients, Rosen continued to treat the patients at the Towson location.  At times, if a patient failed a urine toxicology screen because of illicit substances in their system such as heroin or cocaine, Rosen declined to discharge the patient and instead required the patient to return to the Practice more frequently for follow-up, sometimes as much as three times a week.

Rosen admitted that he issued prescriptions to some patients outside the bounds of the usual medical practice and not for a legitimate medical purpose.  For example, Rosen prescribed large doses of oxycodone and clonazepam to a patient who had eight toxicology screens that were positive for cocaine and whose children had been taken from her because of her drug problems.  Similarly, Rosen ignored the red flags and prescribed oxycodone and methadone to a patient who admitted to illicit drug use; had previously been criminally charged for prescription fraud and drug trafficking; had overdosed; had urine toxicology screens that were positive for heroin, cocaine, and marijuana; and had been accused of selling her pills.

Rosen faces a maximum of 20 years in prison.  U.S. District Judge George L. Russell III has scheduled sentencing for November 29, 2022 at 9:30 a.m.

In related cases, Rosen’s partner, Howard Hoffberg, age 65, of Reisterstown, Maryland pleaded guilty to conspiracy to violate the anti-kickback statutes, in connection with a scheme to accept payments from a pharmaceutical company in exchange for prescribing a fentanyl-based drug.  He was sentenced to eight months in federal prison.  Also, a physician’s assistant at the Practice, William Soyke, age 69, of Hanover, Pennsylvania, pleaded guilty to conspiracy to distribute and dispense oxycodone, fentanyl, methadone, and alprazolam and was sentenced to 37 months in federal prison.

United States Attorney Erek L. Barron commended the FBI, the DEA, HHS-OIG and the Baltimore County Police Department  for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Jason D. Medinger, who is prosecuting the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach and click on the “Save A Life” link.

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Source: United States Department of Justice News

According to Court Documents, the Defendant Allegedly Kidnapped and Killed a Marijuana Trafficker With Whom He was Doing Business

Source: United States Department of Justice News

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that George Steve Rugel, 46, of Reading, PA, was sentenced to fourteen years in prison and five years of supervised release by United States District Court Judge Joseph F. Leeson, Jr., for possessing with intent to distribute the dangerous narcotic fentanyl. In addition to the fentanyl, other drugs including heroin, cocaine, and methamphetamine, as well as firearms were found inside the defendant’s Reading apartment that he used as a stash house for his drug distribution activities.

In November 2021, the defendant pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl and one count of possession of a loaded firearm in furtherance of a drug trafficking crime. The charges stem from an investigation conducted by Drug Enforcement Administration Special Agents and Task Force Officers based in New York City and Allentown into Rugel’s distribution of the dangerous narcotics fentanyl, heroin, and other controlled substances in New York City and in the Reading area of Berks County. During the investigation, Rugel delivered fentanyl to individual in New York. When Rugel attempted a second delivery of fentanyl to an individual in Reading in June 2020, he was arrested by DEA Special Agents and Task Force Officers. At the time of his arrest, Rugel was found in possession of approximately one kilogram of fentanyl in his car, and a loaded firearm on his person. The investigation also led to the discovery of Rugel’s apartment in Reading, where he stored additional controlled substances, including another kilogram of fentanyl, and firearms.

“Drug distribution and gun violence are an epidemic in cities like Reading and across the Eastern District, and the federal government is aggressively prosecuting these crimes to get dangerous criminals like this defendant off the streets,” said U.S. Attorney Williams. “George Rugel was a large-scale, armed drug trafficker, which put our community in grave danger. We want to thank the DEA and the Berks County District Attorney’s Office, and all of our involved law enforcement partners for their hard work and dedication.”

“Rugel not only trafficked in illicit fentanyl, a dangerous street drug that is largely responsible for the overdose crisis, but also carried a loaded handgun at the same time,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division.  “His criminal behavior involving both drugs and guns are representative of two of the most pressing threats that are endangering the safety of our communities.”

The case was investigated by the Drug Enforcement Administration – Allentown Resident Office, Berks County District Attorney’s Office Detectives, and Reading Police Department, and is being prosecuted by Assistant United States Attorneys Mary A. Futcher and Kishan Nair.

Source: United States Department of Justice News

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DARRYL SMALL, 34, of Hamden, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 84 months of imprisonment, followed by five years of supervised release, for fentanyl distribution offenses.

According to court documents and statements made in court, the FBI’s Safe Streets Task Force began investigating Small after receiving information that he was distributing heroin and fentanyl in and around New Haven.  In December 2020 and January 2021, investigators conducted multiple controlled purchases of fentanyl from Small.

Small was arrested on February 24, 2021.  On that date, a court-authorized search of his Hamden residence revealed $24,134 in cash and approximately $165,000 in jewelry.  Judge Dooley ordered Small to forfeit the cash and jewelry, and Small’s 2016 Mercedes-Benz C300 that was also seized at the time of his arrest.

Small has been detained since his arrest.  On March 7, 2022, he pleaded guilty to one count of possession with intent to distribute, and distribution of, 40 grams or more of fentanyl.

Small’s criminal history includes felony convictions for criminal possession of a weapon, carrying a pistol without a permit, and first-degree robbery.

The FBI Safe Streets Task Force includes officers from the New Haven Police Department, Milford Police Department, Hamden Police Department, East Haven Police Department, Connecticut State Police and Connecticut Department of Correction.

This case was prosecuted by Assistant U.S. Attorney Conor M. Reardon.

Source: United States Department of Justice News

Miami, Florida – A South Florida federal grand jury has charged a Coral Springs police officer with fraudulently applying to the U.S. Small Business Administration (“SBA”) for a COVID-19 relief advance grant and low-interest loan.

According to the Indictment unsealed today in federal district court, Jason Scott Carter, 44, of Boca Raton, submitted a fraudulent Economic Injury Disaster Loan (“EIDL”) application and loan agreement on behalf of Jason S. Carter, Inc., a South Florida business he allegedly owned and operated.  That application falsely and fraudulently certified, among other things, that during the twelve 12 months prior to January 31, 2020, the business had gross revenues of $100,000, according to the Indictment.  In reality, the business had only minimal gross revenues during that period.  The Indictment also charges Carter with falsely and fraudulently certifying that he would use the funds only for business expenses to alleviate economic injury that the COVID-19 pandemic caused to the business.  In fact, according to the charges, Carter spent more than $21,000 of the SBA loan money at a car repair and detailing company for luxury vehicles and high-end auto parts.

The Indictment charges Carter with one count of wire fraud.  If convicted, he faces up to 20 years in prison and a fine of up to $250,000.

Carter made his initial appearance today before U.S. Magistrate Judge Bruce E. Reinhart.  He was released on bond, pending trial.

Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, Omar Perez Aybar, Special Agent in Charge, U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Miami Regional Office, and David Walker, Special Agent in Charge, FBI Tampa, announced the charges.

HHS-OIG, Miami Regional Office (Tampa) and FBI Tampa investigated this matter.  Assistant U.S. Attorney Will J. Rosenzweig is prosecuting the case.  Assistant U.S. Attorney Peter Laserna is handling asset forfeiture.

Indictments contain mere allegations and defendants are innocent unless and until found guilty in a court of law

In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred.  EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-80094.

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