Month: July 2022

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Security News: Charlotte Tax Preparer Is Sentenced To Prison

Source: United States Department of Justice News

CHARLOTTE, N.C. – A North Carolina man was sentenced yesterday to 41 months in prison for conspiring to defraud the United States by preparing and filing false tax returns.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Dena J. King for the Western District of North Carolina and Special Agent in Charge Donald “Trey” Eakins of IRS-Criminal Investigation, Charlotte Field Office, made the announcement.

According to court documents and statements made in court, Joseph Octave, 49, of Charlotte, was the leader of a multi-year, multimillion-dollar tax fraud scheme involving hundreds of fraudulent tax returns. Octave was the owner and operator of Kapital Financial Services, a tax preparation business with two offices in Charlotte. From 2014 through 2019, Octave used his tax business to orchestrate a criminal conspiracy in which he directed his employees to prepare and file fraudulent tax returns.

Octave instructed his employees to use several methods to falsify clients’ tax returns, including claiming false deductions, business losses, American Opportunity credits, education credits and earned income tax credits. Octave also trained his employees on how to create the fraudulent returns to avoid IRS detection and provided them with scripts and cheat sheets. To further conceal the fraud, Octave instructed his employees not to give clients copies of their own tax returns and not to share with the clients any details beyond the total refund amount.

According to filed documents and information presented in court, the falsified tax returns and false deductions resulted in reduced tax liabilities and inflated tax refunds for Octave’s clients. Furthermore, because the majority of the time the tax preparation fees were taken directly from the clients’ fraudulently inflated tax refunds, in many instances the clients were unaware of how much they were being charged. As a result of the tax scheme, Kapital Financial Services earned at least $700,000 in fees for preparing the fraudulent tax returns, and, as the owner, Octave received the largest share of this income. The conspiracy caused a total tax loss of more than $2.5 million.

In addition to the term of imprisonment, U.S. District Judge Max O. Cogburn Jr. ordered Octave to serve two years of supervised release and to pay approximately $2.5 million in restitution to the United States.

IRS-Criminal Investigation investigated the case.

Assistant U.S. Attorney Caryn Finley of the Western District of North Carolina and Trial Attorney Brian Flanagan of the Tax Division and prosecuted the case.

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Security News: Owners And Operators Of Mid-State Japanese Restaurants Indicted In Conspiracies Related To Harboring Undocumented Workers

Source: United States Department of Justice News

NASHVILLE – A nine-count federal indictment, unsealed today, charges four individuals with conspiracy to harbor undocumented workers while employing them to work at various mid-state restaurants, harboring undocumented workers, and conspiracy to commit money laundering, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.  The indictment also charges these individuals and another person with conspiracy to defraud the United States by failing to collect and pay employment taxes to the IRS. 

Those charged in the indictment are:  Zhongzhi “Tommy” Zhuo, 46, Jianping “Alan” Zhuo, 37, and Xiaofen “Joyce” Zhuo, 38, all of Hendersonville, Tennessee; and Jianhua “Jason” Zhuo, 35, and Lili Wu, 32, both of Gallatin, Tennessee. 

The indictment alleges that Zhongzhi, Jianping, and Jianhua Zhuo, along with Lily Wu, as the owners or operators of several middle Tennessee restaurants, participated in a scheme to harbor persons who were in the United States illegally, by providing a means of financial support through employment at the restaurants and providing them with housing and transportation.  The restaurants identified in the indictment include the Fuji Japanese Steakhouse, with locations in Hendersonville, Goodlettsville, and Whitehouse, Tennessee; Bonfire Mongolian Grill, with locations in Hendersonville, Clarksville, Mount Juliet, and Spring Hill, Tennessee; and the Koi Japanese Steakhouse in Gallatin, Tennessee.

The indictment also alleges that residential properties owned or leased by one or more of the defendants were used to house undocumented workers, including properties in Hendersonville, Gallatin, Goodlettsville, Clarksville, Mount Juliet, and Spring Hill.

Other allegations in the indictment include that these defendants communicated with and paid a broker to find and deliver undocumented workers to work at the restaurants; employed undocumented workers without requiring them to complete applications or collecting any documents to determine the worker’s immigration status and employment authorization; housed the undocumented workers at the residences; transported the undocumented workers between the residences and restaurants; and maintained separate books accounting for payments to undocumented workers made outside of the regular payroll system. 

The allegations also include that these defendants, along with Xiaofen “Joyce” Zhuo, conspired to defraud the United States by paying undocumented workers in cash; failed to withhold and pay employment taxes to the IRS; and refused to allow undocumented workers to pay taxes, including for those that had Individual Taxpayer Identification Numbers.  These defendants also conspired to provide understated wages to tax preparation businesses that prepared and filed tax forms with the IRS.

The indictment also contains a forfeiture allegation in which the United States seeks to forfeit four residences involved in the commission of the offenses, bank accounts, and a money judgement representing the amount of the proceeds of the crimes.

The charges carry maximum penalties between 5 and 20 years in prison, if convicted.

This case was investigated by Homeland Security Investigations; IRS-Criminal Investigation; the Tennessee Bureau of Investigation; and the Hendersonville Police Department.  Assistant U.S. Attorneys Robert S. Levine and Thomas J. Jaworski are prosecuting the case.

An indictment is merely an accusation.  All defendants are presumed innocent until proven guilty in a court of law. 

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Security News: United States Files Claims Alleging Fresenius Vascular Care, Inc. Defrauded Medicare and Other Healthcare Programs by Billing for Unnecessary Procedures Performed on Dialysis Patients

Source: United States Department of Justice News

Civil Fraud Complaint Alleges Unnecessary Procedures Performed on Patients with End Stage Renal Disease Were Potentially Harmful

The United States filed a civil complaint yesterday in federal court in Brooklyn against Fresenius Vascular Care, Inc. (“Fresenius”) alleging that the company performed unnecessary procedures on dialysis patients at nine centers across New York City, Long Island and Westchester, and billed the procedures to Medicare, Medicaid, the Federal Health Benefits Program and TRICARE.  The complaint seeks damages and penalties under the False Claims Act.  

The filing was announced by Breon Peace, United States Attorney for the Eastern District of New York, and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General’s Office of Investigations (HHS-OIG).

“The conduct alleged in this case is egregious, as Fresenius not only defrauded federal healthcare programs but also subjected particularly vulnerable people to medically unnecessary procedures,” stated United States Attorney Peace.  “This Office will hold medical providers accountable for practices that needlessly expose patients to harm for financial gain at taxpayer expense.”

Mr. Peace also expressed his thanks to the Federal Bureau of Investigation, New York Field Office, the United States Office of Personnel Management, and the United States Department of Defense for their assistance with the investigation.

“The alleged conduct by Fresenius unnecessarily compromised patient care and undermined the financial integrity of federal health care programs,” stated HHS-OIG Special Agent-in-Charge Lampert.  “Along with our law enforcement partners, HHS-OIG is committed to protecting beneficiaries and taxpayers from such abusive practices.”

As alleged in the complaint, from about January 1, 2012 through June 30, 2018, Fresenius routinely performed certain procedures on patients with End Stage Renal Disease (ESRD) who were receiving dialysis, without sufficient clinical indication that the patients needed the procedures.  These interventions included fistulagrams, which are radiological procedures in which dye is injected into the patient’s vein or artery to visualize the port and surrounding blood vessels, and angioplasties, in which wires and balloons are inserted into veins or arteries that have narrowed to restore the patient’s blood flow.  Fresenius knowingly subjected ESRD patients—who included elderly, disadvantaged minority, and low-income individuals—to these procedures to increase its revenues.  

The government filed its complaint in an ongoing action commenced pursuant to the qui tam provisions of the False Claims Act, United States ex rel. Pepe and Sherman v. Fresenius Medical Holdings, Inc., et al., No. 14-CV-3505 (ERK).  The case is being handled by Assistant U.S. Attorneys Jolie Apicella and Anjna Kapoor, and Special Assistant U.S. Attorney Mary Ellen Buntin of the Office’s Civil Division.

Defendants operated vascular access centers at the following locations during the relevant period:

  • American Access Care of Bellmore (now “American Access Care Nassau County”), 250 Pettit Avenue, Suite 2, Bellmore, NY 11710
  • American Access Care Brooklyn, 577 Prospect Avenue Lower Level, Brooklyn, NY 11215
  • American Access Care of New York (now “American Access Care Manhattan”), 403 E. 91st Street, Floor 2, New York, NY 10128
  • American Access Care Queens, 176-60 Union Turnpike #130, Suite 130, Flushing, NY 11366
  • American Access Care Suffolk County, 32 Central Avenue, Hauppauge, NY 11788
  • American Access Care Bronx, 1200 Waters Place N. Lobby, Suite M 115, Bronx, NY 10461
  • Saqib Chaudhry, MD – Flushing, 176-60 Union Turnpike Utopia Center, Suite 145, Flushing, NY 11366
  • Saqib Chaudhry, MD – Roslyn, 1044 Northern Boulevard, Suite 302, Roslyn, NY 11676 (no longer operating)
  • Verrazano Vascular Associates at Access Care Physicians, 2025 Richmond Avenue, Suite 1LL, Staten Island, NY 10314
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GSA Administrator Visits Michigan to Highlight Electrification of Federal Fleet

Source: United States General Services Administration

July 13, 2022

ANN ARBOR, MI – U.S. General Services Administrator Robin Carnahan visited Ann Arbor, Michigan today where she discussed GSA and Biden-Harris Administration efforts to electrify the federal fleet and announced a new “one-stop-shop” for procurement of goods and services to make it easier for federal agencies to purchase zero-emission vehicles and install electric vehicle charging infrastructure.

In a roundtable meeting with auto manufacturers, as well as utility and union representatives at the University of Michigan’s Mcity Test Facility, the Administrator discussed how GSA is helping transition the federal fleet to 100% electric by obtaining the necessary infrastructure, including charging stations, for federal facilities. GSA aims to simplify the process for other federal agencies through specialized acquisition resources to guide the process from start to finish.

“Electrifying the federal fleet will have enormous benefits, and we want to make it as easy as possible for federal agencies to make this transition,” said GSA Administrator Robin Carnahan. “Today’s meeting with auto industry stakeholders was a meaningful step as we work to strengthen partnerships, tackle shared challenges, and work together to advance American manufacturing and clean energy innovation.”

GSA is working with agencies across the federal government to achieve the Biden-Harris Administration’s goal of 100% zero-emission vehicle acquisitions for the federal fleet by 2035 and 100% zero-emission light-duty vehicle acquisitions by 2027. So far in FY2022, federal agencies have ordered more than 3,000 ZEVs and awarded ZEV offerings increased by 82% compared to FY21, jumping from 34 to 62. President Biden’s FY23 budget includes $300 million for GSA and $457 million for other agencies to help facilitate the Administration’s goals to build charging infrastructure and purchase ZEVs.

To further facilitate the federal government’s transition to clean vehicles, GSA is working to make it easier for federal agencies to purchase and install electric vehicle charging stations. In April, GSA awarded new Electric Vehicle Supply Equipment Blanket Purchase Agreements, which will make it easier for federal customers to buy charging station equipment. At that time, the agency made awards to 16 successful offerors, nine of which are small businesses. GSA anticipates making the first awards later this summer in its new governmentwide construction and design/build IDIQ contracts, established to support the installation of charging station infrastructure at federal locations nationwide.

“Electrifying the nation’s federal fleet of vehicles will not only help address the real and growing threat of climate change, but also bring down federal transportation costs and save taxpayers in the long-run,” said Senator Peters, Chairman of the Homeland Security and Governmental Affairs Committee. “I applaud the Biden Administration for its efforts to both streamline and accelerate the transition to an all-electric federal fleet – and I’ll keep working to advance efforts in the Senate that ensure we reach our goal of a zero-emissions fleet by 2035.”

“With the transportation sector making up 27 percent of all greenhouse gas emissions, electrifying the federal fleet has never been more important in our fight against the climate crisis,” said Congresswoman Debbie Dingell. “Working with GSA Administrator Carnahan, the auto industry, and other stakeholders, we will pursue President Biden’s climate goals and ensure a smooth transition to a zero-emission federal fleet by 2035.”

More information is available at www.gsa.gov/ElectrifyTheFleet.

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About GSA: GSA provides centralized procurement and shared services for the federal government, managing a nationwide real estate portfolio of nearly 370 million rentable square feet, overseeing approximately $75 billion in annual contracts, and delivering technology services that serve millions of people across dozens of federal agencies. GSA’s mission is to deliver the best customer experience and value in real estate, acquisition, and technology services to the government and the American people. For more information, visit GSA.gov and follow us at @USGSA.

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Defense News: Aviation Corpsman helps deliver baby in NMCCL parking lot

Source: United States Navy

Murphy was standing administrative duty during what she said was a “long, quiet night” at the medical center when a man approached the Quarterdeck desk to let staff know his was wife might be in labor. Murphy stayed calm and grabbed a wheel chair to assist the patient, but she quickly realized there wasn’t much time to move the mother to Labor and Delivery.

“As soon as the doors opened, I saw her standing outside the vehicle holding onto the door and screaming,” said Murphy. “My intent was to help her get into the wheel chair, to get her to [Labor and Delivery] quickly, but then I looked down and noticed the baby was breech. I knew I needed to help get the baby out, so I steadied the mother and told her to push, and she was able to deliver the baby girl into my arms.”

Within seconds, Murphy was aided by Labor and Delivery nurses to help the family into the medical center. Murphy says being able to help deliver the baby was a great experience, but she isn’t seeking a job in labor and delivery anytime soon.

“I don’t have a baby and have never seen a baby born, so it was probably one of the most interesting things I have done in my entire career, and it’s a story I will probably tell for the rest of my life.” Murphy said. “I was just happy to be there to assist.”

Murphy has been with the Navy for six years; she is currently stationed at Marine Corps Air Station New River, working with the Flight Surgeon.