Month: June 2022

Source: United States Department of Justice News

MINNEAPOLIS – An Oakdale man has pleaded guilty for his role in a multi-million dollar insurance fraud scheme. Okwuchukwu Emmanuel Jidoefor, 38, along with multiple co-conspirators, participated in a scheme to defraud automobile insurance companies by recruiting patients, staging accidents, and receiving illegal kickbacks, announced U.S. Attorney Andrew M. Luger.

Jidoefor’s role was a “runner,” someone who solicited individuals who had been in car accidents to attend treatments at co‑conspirator clinics, including Healthcare Chiropractic, Meyer Injury Center, and Morrow Accident Rehabilitation Center.

Jidoefor pleaded guilty on June 14, 2022, before Senior U.S. District Judge Michael J. Davis to one count of mail fraud. A sentencing hearing is scheduled for July 27, 2022.

This case was a part of a larger investigation that ultimately resulted in charges against 26 individuals across seven separate metro-area chiropractic practices. Including this latest conviction, 24 of those individuals have either pleaded guilty or been found guilty following a trial.

This case is the result of an investigation conducted by the Minnesota Commerce Fraud Bureau and the Federal Bureau of Investigation.

Assistant U.S. Attorneys Chelsea A. Walcker and David J. MacLaughlin are prosecuting the case.

Source: United States Department of Justice News

LAREDO, Texas – A 22-year-old man has been ordered to federal prison following his conviction of conspiracy to possess with the intent to distribute approximately 4.65 kilograms of fentanyl, announced U.S. Attorney Jennifer B. Lowery.

Juan Alvarado-Vargas pleaded guilty April 5.

Today, U.S. District Judge Marina Garcia Marmolejo imposed a 72-month term of imprisonment to be followed by three years of supervised release. In handing down the prison term, Judge Marmolejo noted that Mexican Fentanyl is extremely dangerous and responsible for deaths all over the United States.

On Oct. 3, 2021, Alvarado-Vargas attempted to drive through the Border Patrol (BP) checkpoint along U.S. Highway 59 near Freer. During a search of his vehicle, authorities discovered approximately 4.65 kilograms of fentanyl hidden inside his car battery.

At the time of his plea, Alvarado-Vargas admitted that smugglers had offered him approximately $4,500 to illegally transport drugs into the United States from Mexico. He further admitted that his ultimate delivery destination was the Galleria mall in Houston.

Fentanyl is a synthetic painkiller drug that has morphine and opioid-like side effects, but works at a mere one-hundredth of the/of a regular dose. Inadvertent exposure to high doses of fentanyl in micrograms can result in respiratory failure, overdose and ultimately death. Remember #OnePillCanKill

Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Francisco J. Rodriguez prosecuted the case.  

Source: United States Department of Justice Criminal Division

A Florida man was sentenced today to 14 years in prison for health care and wire fraud that cost Medicare more than $20 million dollars, and for evading taxes.

According to court documents, Marc Sporn, 59, of Delray Beach, owned and operated several telemarketing and telemedicine companies, including CPL Media Group Inc. Medipak, LLC, Real Time Physicians LLC, 24 HR Virtual MD LLC, Medtech Worldwide Inc., New World Holdings Inc., and Ins Cov LLC. Sporn used these companies to market medically unnecessary genetic tests to Medicare beneficiaries, and to sell prescriptions (i.e., doctors’ orders) for medically unnecessary genetic tests to laboratories in exchange for kickbacks and bribes. Sporn knew these laboratories would use these doctors’ orders to bill Medicare for medically unnecessary goods and services.

Through nominee owners, Sporn also operated and controlled Palm Beach companies Medi Biotech LLC and Walmol Holdings LLC. Sporn used Medi Biotech to market compounded prescription creams to customers with certain health conditions. Pharmacies and laboratories associated with Medi Biotech filled the prescriptions, billed the customers’ insurance companies, and paid Sporn kickbacks. In addition to opening bank accounts for Medi Biotech in nominee names, Sporn opened accounts in the name of Walmol Holdings, a shell corporation, and in 2014 and 2015, avoided paying over $1.6 million in personal income taxes by diverting millions through the company’s accounts. Sporn used these company accounts to purchase luxury items such as high-end watches and diamond jewelry, classic and exotic cars, two yachts, and other items. Sporn also evaded paying over $2.5 million in personal income taxes for other years dating back to 2000. When the IRS attempted to collect back taxes from Sporn, he tried to conceal assets by transferring property to trusts and individuals and by repeatedly opening and closing companies, among other things. In addition to the prison term, Sporn was ordered to pay more than $4 million in restitution to the IRS.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida; Assistant Director Luis M. Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge George Piro of the FBI’s Miami Field Office; Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Miami Field Division; and Special Agent in Charge Matthew D. Line of IRS-Criminal Investigation (IRS-CI), Miami Field Office announced the sentence.

The FBI’s Miami Field Office, HHS-OIG, and IRS-CI investigated the case.

Trial Attorneys Ligia Markman and Reginald Cuyler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Aurora Fagan for the Southern District of Florida prosecuted the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.

Source: United States Department of Justice News

Tampa, Florida – U.S. District Judge Kathryn Kimball Mizelle has sentenced Hao Kuo Chi (41, La Puente, California) to nine years in federal prison for conspiracy and computer fraud. Chi had pleaded guilty on October 15, 2021.

According to court documents, Chi operated for years on Anon-IB, a now defunct website. Anon-IB was notorious for posting explicit and intimate images of others shared without consent and with the intent to intimidate, harass, or embarrass—commonly known as “revenge porn.” Chi hacked into the Apple iCloud accounts of victims across the United States in search of nude photographs and videos of young women, which he referred to as “wins.” Using the online moniker “icloudripper4you,” he then shared and traded these images with persons he had met on Anon-IB.

Chi’s email accounts contained the iCloud credentials of approximately 4,700 victims. These accounts also revealed that he had sent content stolen from victims to conspirators on more than 300 occasions. Some of those conspirators subsequently released the images into the public sphere. Chi not only shared his “wins” with conspirators, but he also kept many of those images for his own personal collection. Specifically, Chi maintained approximately 3.5 terabytes of victim data on cloud and physical storage, containing content attributable to more than 500 victims.

“Chi victimized hundreds of women across the country, making them fear for their safety and reputations,” said U.S. Attorney Roger Handberg. “This sentence reflects the resolve of the U.S. Attorney’s Office to hold cybercriminals responsible for their crimes.”

“This man led a terror campaign from his computer, causing fear and distress to hundreds of victims. The FBI is committed to protecting the American people by exposing these cybercriminals and bringing them to justice,” said David Walker, FBI Tampa Division Special Agent in Charge.       

This case was investigated by Federal Bureau of Investigation and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Carlton C. Gammons.

Source: United States Department of Justice News

CHARLESTON, W.Va. – A St. Albans man was sentenced today to 19 years and seven months in prison, to be followed by five years of supervised release, for two counts of possession with intent to distribute methamphetamine.

According to court documents and statements made in court, Shane Kelly Fulkerson, 46, participated in a drug trafficking ring operating in and around St. Albans from March 2021 until September 2021. Fulkerson admitted that he distributed large quantities of methamphetamine that he obtained from out-of-state.

Fulkerson further admitted to selling more than 100 grams of methamphetamine to an informant on three occasions in July and August 2021. On August 11, 2021, Fulkerson fled on a motorcycle from law enforcement officers in Poca, Putnam County. He was arrested after dropping the motorcycle in a private yard near Winfield and fleeing on foot. Police recovered 95 grams of methamphetamine, a loaded pistol, and more than $70,000 from Fulkerson’s backpack.  The next morning, law enforcement executed a search warrant at Fulkerson’s St. Albans residence and seized more than 8 pounds of methamphetamine and approximately 22 firearms as well as several vehicles that were used to facilitate drug trafficking or were purchased with drug proceeds.

This case is part of a long-term investigation of methamphetamine distribution that resulted in 17 individuals being charged with various drug and firearm offenses in three separate indictments. Fulkerson and 13 others pleaded guilty: Ramon David Alston, James Edward Bennett III, Treydan Leon Burks, Jonathan Gregory Bush, Kaitlyn Brooke Combs, Kelly Cordle, Denise Marie Cottrill, Brittany Frances Gilbert, Angie Lane Harbour, Scott Edward Hudson, Jason Robert Oxley, Michael Antonio Smith, and Brian Dangelo Terry. Timothy Wayne Dodd was convicted on March 24, 2022, following a two-day jury trial. Douglas Jonathan Wesley and Leo Antoine Smith were convicted on May 26, 2022, following a three-day jury trial. Dodd, Wesley and Smith are scheduled to be sentenced in August.

United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Charleston Police Department, the Kanawha and Putnam County Sheriff’s Departments, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Metropolitan Drug Enforcement Network Team (MDENT).

United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorneys Joshua Hanks and Alex Hamner prosecuted the case.

This prosecution was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:21-cr-171, 2:21-cr-172, and 2:21-cr-211.

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