Month: October 2022

Source: United States Department of Justice News

ATLANTA – Kyle Self has been sentenced for defrauding the IRS through the submission of false tax returns on behalf of clients.

“Kyle Self scammed the American taxpayers to enrich himself by illegally inflating the amount of tax refunds due to his clients,” said U.S. Attorney Ryan K. Buchanan. “This case serves as a stark warning to other corrupt tax preparers that we will find and prosecute those who exploit the tax system for their personal gain.”

“By submitting fraudulent tax returns Self took advantage of the tax system ultimately for his benefit,” said IRS-Criminal Investigation Assistant Special Agent in Charge Lisa Fontanette. “IRS-Criminal Investigation is committed to investigating tax fraud and other financial crimes and making sure those who abuse the tax system to enrich themselves are brought to justice. We also want taxpayers to choose their tax preparer wisely and look for preparers that will review the return with you. Taxpayers should be wary of any individuals promoting and using schemes to submit false filings to IRS.  Should you come across such a scheme, please report it to IRS Criminal Investigation.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Self owned and operated a tax preparation business called DeKalb Tax Services, LLC, which also operated under the names “Tax Shield” and “Instant Tax.” Self filed false tax returns on behalf of his clients between 2015 and 2018 to generate fraudulent tax return payments. Self falsified information related to Schedule Cs, IRA deductions, tuition deductions, capital losses, and head of household filing status, which resulted in a loss to the IRS of $428,175. 

For one taxpayer, for example, Self falsely included numerous false statements to inflate her return, claiming that she incurred capital losses on investments, which did not exist. Self fraudulently claimed IRA deductions for the same taxpayer, even though she had no IRA account. Self further claimed deductions for tuition and fees, even though neither the taxpayer nor her son attended school. Self claimed that the taxpayer suffered business losses related to her work as an Uber driver, a job which she had never held. Self also fraudulently reported that the taxpayer’s son was disabled. Self kept much of the money for himself after generating the fraudulently inflated returns.

Kyle Self, 48, of Atlanta, Georgia, has been sentenced to one year, six months in prison to be followed by one year of supervised release and ordered to pay restitution in the amount of $422,936. Self was convicted on these charges on January 11, 2022, after he pleaded guilty.

This case was investigated by the Internal Revenue Service Criminal Investigation.

Assistant U.S. Attorney David A. O’Neal prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

Source: United States Department of Justice News

Two Illinois home health care company owners were sentenced yesterday as part of a $6.7 million home health care fraud scheme.

Patricia Omorogbe, 61, of Lansing, a registered nurse, was sentenced to two years in prison. Felix Omorogbe, 71, of Lansing, was sentenced to 18 months in prison. Patricia Omorogbe was also ordered to pay $6,643,094 in restitution. Felix Omorogbe was ordered to pay $1,592,362 in restitution.

According to court documents, the Omorogbes owned and operated three home health companies:  A&Z Home Health Care and Dominion Home Health Care, both located in Lansing, and Alliance Home Health Care, located in Hammond, Indiana. From approximately January 2009 to June 2018, the Omorogbes secretly paid bribes and kickbacks to patient marketers in exchange for referrals of Medicare beneficiaries to the companies.

Patricia Omorogbe maintained relationships with marketers and signed sham contracts with patient marketers on behalf of the companies, while Felix Omorogbe facilitated kickback payments to marketers by writing checks to himself and agency employees, who would then convert the checks to cash that was used to pay kickbacks to marketers. Patricia Omorogbe caused fraudulent claims to be submitted to Medicare for home health services that falsely represented that she, as a registered nurse, performed assessments of patients on dates when she was out of the country. It was the practice of the Omorogbes’ companies to admit, discharge, and re-certify certain patients repeatedly, regardless of their medical conditions. 

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI’s Criminal Division; Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Chicago Regional Office; and Acting Special Agent in Charge Ashley T. Johnson of the FBI Chicago Field Office made the announcement.

The FBI and HHS-OIG investigated the case.

Trial Attorneys Sarah W. Rocha, Victor B. Yanz, and Claire T. Sobczak of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Patrick Mott for the Northern District of Illinois 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 the Office of the Inspector General for the Department of Health and Human Services, 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

CLEVELAND – Thomas G. O’Lear, 58, of North Canton, Ohio, was sentenced on Thursday, September 29, 2022, by U.S. District Judge Dan Polster to 15 years in prison and was ordered to pay $1,989,490 in restitution to Medicare, Medicaid and two Medicaid Managed Care Organizations (MCOs).  Polster pronounced the sentence after O’Lear was convicted at trial of defrauding Medicare and Medicaid of approximately $2 million by billing for x-ray-related services that his company did not provide, engaging in a fraudulent cover-up scheme to conceal the fraud and committing aggravated identity theft in the fraud and cover-up scheme.

“This defendant wrongfully believed that he could cheat taxpayers by targeting nursing facilities and using the stolen identifies of vulnerable or deceased individuals to cover up his tracks,” said First Assistant U.S. Attorney Michelle M. Baeppler.  “Protecting taxpayers and government healthcare programs from fraud is an important priority for the Department of Justice and law enforcement.”

“Medicare and Medicaid providers who submit fraudulent claims for reimbursement and engage in identity theft undermine the trust placed in them by the beneficiaries that utilize their services,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services – Office of Inspector General. “We will continue to work together with our law enforcement partners to ensure that individuals who commit fraud against federal health care programs are held accountable.”

“Criminal misconduct within the healthcare system is not only deceitful but also destructive,” said FBI Cleveland Special Agent in Charge Gregory Nelsen.  “Mr. O’Lear’s schemes are appalling. Those who abuse their position of trust for financial greed will not be tolerated.  The FBI and our partners will continue to work collaboratively to identify and investigate those committing fraud with the intention of bilking government programs.”

According to court documents and evidence presented at trial, O’Lear was President of Portable Radiology Services (PRS), a company that provided portable x-ray-related services to individuals residing in nursing homes, skilled nursing facilities and long-term care facilities.

From 2013 through 2017, O’Lear submitted false claims for reimbursement to Medicare, Medicaid and MCOs for thousands of x-rays and related services that he and his business did not provide, including approximately 151 x-ray services purportedly provided to patients on dates after the patients had died.

Evidence also proved that O’Lear billed Medicare and Medicaid for purportedly having provided x-ray-related services to beneficiaries at nursing facilities on dates when the beneficiaries were hospitalized and not at the facilities.  In another aspect of the fraud, O’Lear took multiple x-rays that had all been performed in one visit and falsely claimed that each one had been done on a different day, requiring separate reimbursement for transporting the portable x-ray equipment on each date.  Similarly, O’Lear falsely billed for taking multiple images or views of patients when only one view had been done, thereby requiring a greater reimbursement. 

During an audit by a Medicaid MCO, O’Lear covered up the scheme and committed aggravated identity theft by creating false medical records, including forms for ordering x-rays and radiology reading reports.  He even falsified x-ray images, but was found to have re-used the same image repeatedly as different images of the same patient and even as images of different patients.  In creating the falsified order forms, he forged the signatures of his employees and the physician he said had ordered the x-rays.

As a result of the scheme, court documents state that O’Lear submitted fraudulent bills to Medicare, Medicaid and Medicaid MCOs for approximately $3.7 million and received approximately $2 million in payments as a result of fraudulent bills.

“Nobody needs X-rays after they’re dead, and the taxpayers shouldn’t have to pay for them,” Ohio Attorney General Dave Yost said.  “This crook made victims of everybody who pays taxes, and he deserves every day of his sentence.”

This case was investigated by the United States Department of Health and Human Services, Office of the Inspector General (HHS-OIG), the Cleveland FBI and the Ohio Attorney General’s Healthcare Fraud Section .  This case was prosecuted by Assistant U.S. Attorneys Elliot Morrison and Brendan O’Shea.