Security News: Addiction Treatment Facilities’ Medical Director Sentenced in $112 Million Addiction Treatment Fraud Scheme

Source: United States Department of Justice Criminal Division

A Florida doctor was sentenced today to 54 months in prison for engaging in a scheme that fraudulently billed approximately $112 million for substance abuse services that were never provided or were medically unnecessary.

According to court documents, Jose Santeiro, 62, of Miami Lakes, 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.

According to court documents and evidence presented at trial, 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 re-admission 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 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.

After a 15-day trial in March 2022, Santeiro was convicted of conspiracy to commit health care fraud and wire fraud, and eight counts of health care fraud. Two other co-defendants, Jonathan and Daniel Markovich, were convicted in an earlier trial in November 2021 and sentenced to 188 months and 97 months in prison, respectively. Richard Waserstein, an attorney, pleaded guilty to one count of conspiracy to commit money laundering and was sentenced to 13 months in prison. Drew Lieberman, another doctor, pleaded guilty to conspiracy to commit health care fraud and was sentenced to 13 months in prison. Christopher Garnto pleaded guilty to conspiracy to commit health care fraud and wire fraud and was sentenced to 24 months in prison. 

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.

The FBI’s Miami Field Office, HHS-OIG, and the Broward County Sherriff’s Office investigated the case.

Senior Litigation Counsel Jim Hayes and Trial Attorneys Jamie de Boer and Andrea Savdie of the Criminal Division’s Fraud Section prosecuted 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 prosecutes defendants who exploit vulnerable patients seeking treatment for drug and/or alcohol addiction.

Security News: West Virginia Hospital to Pay $1.5 Million to Settle Allegations Concerning Impermissible Financial Relationships with Referring Physicians

Source: United States Department of Justice 2

Weirton Medical Center, a hospital located in Weirton, West Virginia, has agreed to pay $1.5 million to resolve allegations that it violated the False Claims Act by knowingly submitting or causing the submission of claims to Medicare in violation of the Physician Self-Referral Law (commonly referred to as the Stark Law).

“Health care decisions should be based on patients’ medical needs, not physicians’ financial interests,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “The department will continue to investigate financial relationships that may improperly influence physician decision-making.”

“Improper compensation arrangements between hospitals and physicians will not be tolerated,” said U.S. Attorney William Ihlenfeld for the Northern District of West Virginia. “The U.S. Attorney’s Office will be aggressive in its pursuit of those who violate the Stark Law and we strongly encourage whistleblowers to come forward.”

“Patients trust their health care providers’ decisions are made based on their individual medical needs and not to increase providers’ profits,” said Special Agent in Charge Maureen Dixon of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG). “HHS-OIG will continue to work with the U.S. Attorney’s Office to investigate health care fraud allegations and to protect the integrity of the Medicare program.”   

The settlement, which is based on the hospital’s financial condition, stems from a voluntary self-disclosure made by the hospital regarding potential Stark Law violations. The Stark Law prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The Stark Law is intended to ensure that medical decision-making is not compromised by improper financial incentives and is instead based on the best interests of the patient. The settlement resolves Weirton Medical Center’s liability under the False Claims Act for submitting claims to Medicare that resulted from violations of the Stark Law due to payment of compensation to referring physicians that allegedly exceeded fair market value or took into account the volume or value of the physicians’ referrals to the hospital.

The matter was investigated by Senior Trial Counsel Diana Cieslak and Assistant U.S. Attorneys Stephanie Savino and Christopher Prezioso for the Northern District of West Virginia.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Northern District of West Virginia with assistance from HHS-OIG.

The investigation and resolution of this matter 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 fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The claims resolved by the settlement are allegations only and there has been no determination of liability.

Security News: Kansas City, Missouri, Man Pleads Guilty to Federal Hate Crime in Attempted Murder of Teen

Source: United States Department of Justice News

A Kansas City man pleaded guilty in federal court today to committing a hate crime by shooting a local teenager eight times in an attempted murder that was motivated by the victim’s sexual orientation.

Malachi Robinson, 26, pleaded guilty before U.S. District Judge Brian C. Wimes to one count of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. Robinson, who has been in federal custody since he was indicted by a federal grand jury on Aug. 10, 2021, will remain in federal detention until his sentencing hearing, which has not yet been scheduled.

By pleading guilty today, Robinson admitted that he shot the victim, identified in court records as “M.S.,” approximately eight times with a Taurus 9mm pistol in an attempt to kill him because of his sexual orientation, causing life-threatening injuries.

“This defendant is being held accountable for violently attempting to end the life of someone because of his sexual orientation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This attempted murder is a reminder that hate crimes against the LGBTQI+ community are real and must be confronted. Violent acts targeting people based on their sexual orientation are heinous crimes that have no place in our country. The Justice Department will continue to use our civil rights laws to pursue justice for survivors and others impacted by bias motivated crimes.”

“Violence against others, motivated by hatred of their sexual orientation, is unacceptable,” said U.S. Attorney Teresa Moore of the Western District of Missouri. “Such callous disregard for the life of a teenage victim, gravely wounded in a failed murder attempt, must be challenged by a commitment to protect the civil rights of all our citizens. When those rights are threatened, the Justice Department will act to hold the violators accountable.”

“Hate crimes—and the violence we saw in this case—are especially cruel because victims are attacked because of who they are,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI treats hate crimes as the highest priority of our civil rights program because everyone deserves to feel safe to express who they are, without fear of violence from others. We are committed to working with our law enforcement partners to bring justice to all communities affected by hate.”

According to today’s plea agreement, after a chance meeting at the Kansas City Public Library on May 29, 2019, Robinson and M.S. talked briefly over Facebook Messenger before leaving the library. Robinson then walked with M.S. in the Swope Park area under the guise of looking for a place to engage in a sex act. Around the same time, Robinson wrote separately to his girlfriend that he “might shoot this boy” because of his sexual orientation. When Robinson and M.S. ultimately entered a wooded area nearby, Robinson pulled out his pistol and fired repeatedly at M.S.

Robinson fled through the woods toward his apartment building, and continued to engage in attempts to avoid detection or arrest. Later that day, and in the days that followed, Robinson told others that he shot M.S. because of his sexual orientation.

Under federal statutes, Robinson is subject to a sentence of up to life 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 defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

Assistant Attorney General Clarke, U.S. Attorney Moore and Assistant Director Quesada of the FBI’s Criminal Investigative Division made the announcement. This case is being prosecuted by Assistant U.S. Attorney Dave Ketchmark for the Western District of Missouri and Trial Attorneys Shan Patel and Eric Peffley of the Civil Rights Division of the U.S. Department of Justice. It was investigated by the Kansas City, Mo., Police Department and the FBI.

Defense News: SECNAV Delivers Remarks at the University of Veracruz

Source: United States Navy

Good afternoon. Thank you for that kind introduction. It is an honor to be here at Universidad Veracruzana, one of the finest institutions in a nation the Biden Administration is proud to call a friend.

Mexico is one of America’s most important partners. Together, we have made North America more secure. Together, we have made North America more prosperous.

Together, we have made North America free.

The word “free” means a lot to me. As you may know, my family and I had to flee Cuba when I was a child.

My freedom was not guaranteed. It was only through my parents’ hard work and God’s grace that I grew up in a free nation.

As my freedom was not guaranteed then, North America’s freedom is not guaranteed now. As my parents worked for my freedom, our two nations must continue to work hand-in-hand to ensure ours.

Keeping our freedom is why it is so critical that our relationship, and our cooperation, grow ever closer. As President Biden said, the U.S. and Mexico are “friends and allies, and our relationship is based on mutual respect.”

That respect is well-earned. You are the United States’ largest trading partner, with over six hundred billion dollars in goods and services traversing our border.

Our economies, and our people, rely upon each other.

That same spirit imbues our security cooperation, particularly between our navies. I see your Secretary of the Navy, Admiral Jose Rafael OJEDA Duran, as a trusted partner. He is tireless in his efforts to make the Mexican Navy a force for the good of Mexico and a strong partner the United States can work with on the many challenges that face our navies and nations. He and his team have fostered a culture of relentless innovation and improvement. That culture, coupled with wise investments and prioritization, have dramatically improved the Mexican Navy’s capabilities, technology, and readiness; something I have had the privilege of seeing first hand while here in Veracruz.

I am moved by the culture your Navy has instilled throughout its ranks. It is a culture where talent matters more than background; where spirit and commitment to service matter more than where you came from.

It is only this sort of open culture than can focus on relentless improvement, as it is the only type of culture that does not feel compelled to do things as they have always been done.

It is working for the Mexican Navy. I am not surprised, as it works for the United States Navy, as well. Since my first day in office – and for years beforehand – our Navy-Marine Corps team has preached that everyone must feel welcome to serve, regardless of who they are or where they have come from.

Our culture has delivered as promised. The U.S. Navy-Marine Corps team, as part of our armed services’ Joint Operating Concept and alongside our allies, is the most dominant deterrent force in the world.

We are grateful that the Mexican Navy’s relentless commitment to strengthening its culture and its capabilities have made it an indispensable pillar of our shared regional deterrent capability.

As a former Naval Officer myself, the phrase “deterrent capability” is a tangible one. Let me tell you what I mean.  I just came here from a tour of your naval facilities here in Veracruz. Your operational tools, and the Sailors who operate them, are excellent.

For instance, in an era when Unmanned Air Vehicles will take on an ever-larger share of both surveillance and offensive warfare responsibilities, I am excited to see the Mexican navy’s burgeoning expertise with and extensive research and development of UAVs.

It is clear the Mexican navy understands that future fights will be won based on which force communicates best and which force has the best intelligence. That is why I was also pleased to see remarkable improvements in the Mexican navy’s radar systems and radio communications platforms.

When facing an operational challenge, the Mexican navy will know what it is up against and will be able to marshal its forces. Such capabilities are essential.

The United States is tremendously supportive of the Mexican navy’s enhanced capabilities. U.S.-Mexico regional defense cooperation is essential to North America’s safety and security.

To that end, the United States Navy wants to grow together with the Mexican navy as true partners. However, we understand that partnerships derived from shared short-term interests only go so far.

Partnerships forged in shared values, and operating off similar platforms, on the other hand, can overcome any challenge.

To that end, I would like to stress the importance of continued joint exercises and operational compatibility.

Our joint exercises with Mexico and other regional partners are a pillar of our joint deterrent capability. With each such successful exercise, my pride in our partnership grows.

Take UNITAS 2021. This massive exercise brought together twenty nations, thirty-two ships, four submarines, twenty-six aircraft, and more than fifty-seven hundred personnel.

This exercise was a massive undertaking. It entailed a multi-threat, multi-day, at-sea scenario. Together, our forces had to demonstrate surface tactical maneuvers, a sinking exercise, live-fire exercises, replenishment-at-sea, search and rescue exercises, submarine warfare exercises, and air defense exercises.

In case that didn’t keep everyone busy enough, we included maritime interdiction exercises for good measure.

Even the most hardened Sailor or Marine would find this exercise a challenge. Nevertheless, the team performed magnificently. Partners representing many nations demonstrated agility, advanced problem-solving skills, and a spirit of cooperation that sent a clear message to anyone who was watching.

We are one team.

UNITAS 22, coming up this September, will send that same message with even greater clarity. When we meet in Brazil, on the two hundredth anniversary of that nation’s Navy, nineteen nations will act as one force.

Together, we will engage in maritime, amphibious, air, ground, and jungle operations. Together, we will reinforce the leadership role of women in security operations. Together, twenty one warships, one submarine, twenty-two aircraft, and Navy Combat Divers, Special Boat Teams, and Special Operations Forces will prove just how well the can operate as a single force.

I, for one, am eager to see how ably we perform.

UNITAS, of course, is not the Hemisphere’s only joint exercise. Mexico and Belize jointly hosted TRADEWINDS just this past May, with over 1900 personnel from 22 nations coming together to address challenges from land, sea, air, and cyberspace.

Similarly, we are thrilled that Mexico has sent the ship BENITO JUAREZ, a Long-Range Ocean Patrol Vessel, to RIMPAC, the world’s largest naval exercise.

We are also happy that Mexico’s armed forces have sent a Newport-Class Tank Landing Ship, an infantry company, and two Special Forces platoons. They will be leading important training initiatives.

That, too, sends a message. Mexico is critical to our joint efforts to keep the Pacific Ocean free and secure.

There is room, however, for increased operational compatibility. It is an essential component to creating a stronger deterrent force. Operational compatibility will empower the United States and Mexico to respond together to large scale threats.

Operational compatibility will also better empower us to respond to natural disasters and humanitarian crises. Climate change has, unfortunately, guaranteed that hurricanes, wildfires, and other extreme weather events will be commonplace. We need to be able to respond together throughout the Caribbean Sea.

Operational compatibility, then, is essential. Together, we can do more to integrate our forces.

BENITO JUAREZ is one of the most compelling examples of where greater cooperation is possible. Long Range Ocean Patrol vessels are essential at sea. The ship is a strong vessel with an excellent crew.

That is why we hope, over the coming years, to include her in United States Navy fleet training. We would also like to include her in a future Carrier Strike Group cooperative deployment.

We believe integration of BENITO JUAREZ into a Carrier Strike Group cooperative deployment is just one of many opportunities for greater integration.

Long-term, we believe we can conduct the full spectrum of military activities together in partnership to address mutual defense and security threats.

Secretary of Defense Lloyd Austin has made U.S. priorities clear. We will always look for ways to work together with Mexico in areas of mutual defense and security interests while respecting each other’s sovereignty.

Greater operational compatibility can only serve that mission.

Let me close, then, by telling you why I am speaking here today. Universidad Veracruzana is, in many ways, the perfect symbol of the U.S.-Mexico relationship.

It’s more than just your partnership with Georgia Southern University or the American students you attract for study abroad opportunities, though such cultural exchanges are essential.

Rather, it is the fact that Universidad Veracruzana, like our nations’ relationship, is both practical and aspirational.

Together, our nations provide security in the region.

Together, our nations provide the space for trade and cooperation. That is the practical.

Yet, we reach for more.

We aim to help each other through the enormous, complex issues facing the global community, from the climate crisis to pandemics that, as we have seen, can shudder the world to a halt.

We aim to preserve peace and promote prosperity throughout North, Central, and South America.

We aim to forge ever-closer bonds with a partner we trust.

That is the aspirational.

I think Universidad Veracruzana’s motto hits exactly the right tone. “Art. Science. Light.”

We rely on art, science, and light every day. Yet art and science always push us to innovate, to be better, to embrace what is next. Light shows us the way forward.

Mexico and the United States will show each other the way forward, as only two nations as interconnected as we are, can.

Thank you all for your time and attention today. We need you as our partners, and our friends. May God bless you. Thank you.

Security News: Suburban Chicago Man Sentenced to 12 Years in Federal Prison for Child Pornography and Sexual Conduct with a Minor

Source: United States Department of Justice News

CHICAGO — A suburban Chicago man has been sentenced to 12 years in federal prison on charges of child pornography and traveling to engage in sexual conduct with a minor.

JEREMIAH HARRIS, 22, of Naperville, Ill., pleaded guilty in February to one count of receipt of child pornography and one count of traveling with the intent to engage in illicit sexual conduct.  U.S. District Judge Manish S. Shah imposed the prison term Wednesday and ordered that it be followed by eight years of court-supervised release.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The investigation was conducted by the FBI Chicago Child Exploitation and Human Trafficking Task Force, which includes the Cook County Sheriff’s Office, Cook County State’s Attorney’s Office, and Chicago Police Department.  The Crystal Lake, Ill., Police Department and FBI Resident Agency in Waco, Texas, provided valuable assistance.  The government was represented by Assistant U.S. Attorney Kelly L. Guzman.

The child pornography conviction involved sexually explicit photographs and videos that Harris repeatedly requested from a 17-year-old boy in 2020.  Harris admitted in a plea agreement that the boy sent the photos and videos of himself to Harris in exchange for $2,000.  Harris also admitted in the plea agreement that he requested and received other images of child pornography from two other minor boys, and he attempted to entice one of them to engage in sexual activity.

The travel charge pertains to Harris traveling in 2019 from Dallas, Texas, to Orlando, Fla., to engage in sexually explicit conduct with a 15-year-old boy.  Harris admitted in the plea agreement that he directed the boy to meet him in a public bathroom, where Harris sexually assaulted him.

If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to https://www.missingkids.org/ or calling 1-800-843-5678.  The service is available 24 hours a day, seven days a week.