Month: November 2022

Source: United States Department of Justice News

LAREDO, Texas – Two women residing in Monterrey, Mexico, have admitted to their roles in importing nearly 1000 grams of heroin, announced U.S. Attorney Jennifer B. Lowery.

Maria Luisa Hernandez-Alanis, 41, and Tania Melissa Coutino-Hernandez, 40,  admitted that on Sept. 4, they arrived at the Juarez-Lincoln Bridge Port of Entry in Laredo in a vehicle. They applied for entry into the United States by presenting B1/B2 tourist visas.

At secondary inspection, law enforcement discovered two yellow bags of potato chips inside of Coutino-Hernandez’s purse. The bags appeared to be sealed and unopened. However, the contents felt like a heavy ball. Further inspection revealed the bags contained heroin bundles weighing 983.9 grams.

The investigation revealed the pair were both aware of the drugs and were going to be paid $300 each to cross into the country with them. The co-conspirators planned on returning to Mexico with a large amount of cash.

U.S. District Judge Marina Garcia Marmolejo will impose sentencing at a later date. At that time, Hernandez-Alanis and Coutino-Hernandez face up to 40 years in prison and a possible $5 million maximum fine.

Both Hernandez-Alanis and Coutino-Hernandez have been in and will remain in custody pending that hearing.

The Drug Enforcement Administration conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.

Source: United States Department of Justice News

CORPUS CHRISTI, Texas – A 40-year-old Brownsville resident has admitted to transporting illegal aliens within the United States, announced U.S. Attorney Jennifer B. Lowery.

On June 30, Gaston Perez drove a truck hitched with a recreational vehicle (RV) in to the Javier Vega Border Patrol (BP) checkpoint near Sarita. Shortly after, a K-9 alerted law enforcement to the RV. Further inspection revealed individuals trapped in the back of the travel trailer. They were unable to exit on their own due to the slide outs being drawn in and not having power to extend them.

Authorities used jumper cables to restart the RV battery and operate the slide outs. Five people were located in the back of the trailer including two inside a bed. Three additional individuals were discovered in the front of the RV.

Law enforcement used a backscatter machine to scan the travel trailer and found two anomalies inside a wooden entertainment console. They removed a television set and discovered two more individuals sweating profusely.

A total of 10 undocumented individuals were located in the RV. One of them told authorities she felt like she was going to faint as she was getting out of the trailer.

U.S. District Judge Nelva Gonzales Ramos will impose sentencing Feb. 15, 2023. At that time, Perez faces up to five years in prison and a possible $250,000 maximum fine.

Perez was allowed to remain on bond pending that hearing.

BP and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Liesel Roscher and J. Parker Gochenour are prosecuting the case.

Source: United States Department of Justice News

A federal judge sentenced Herdade Lokua, 34, and Jospin Mujangi, 32, of Kinshasa, Democratic Republic of Congo (DRC), to prison for their roles in trafficking wildlife products from DRC to Seattle. Lokua was sentenced to 20  months in prison and Mujangi was sentenced to 14 months in prison. Both men had pleaded guilty to conspiracy and Lacey Act charges on July 13. 

The court determined that Lokua was the organizer of a trafficking operation involving more than five other co-conspirators whose goal was to ship a cargo container full of elephant ivory, white rhinoceros horn, and pangolin scales to Seattle. Mujangi helped package the wildlife products and handled the financial details to process the payment through a Chinese bank and then back to DRC.

“Today’s sentence demonstrates that wildlife trafficking leads to prison, and that we are committed to prosecuting this crime,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “I commend our Homeland Security Investigations and DRC partners in stopping this trafficking ring before tons of protected wildlife products entered the illegal market.”

“Wildlife trafficking is decimating many species worldwide and has broader impacts to a country’s economic development and security,” said Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in the Pacific Northwest.  “HSI is proud of our international public and private sector partnerships who enabled the success of this investigation and will continue to leverage those partnerships to target and dismantle future trafficking organizations who seek profit over the risk of extinction.”

In their prior guilty pleas, both defendants admitted that, beginning in November 2019, they agreed to smuggle the wildlife products at issue to the United States. They worked with a middleman to negotiate the sales and coordinate imports to Seattle. Between August and September 2020, Lokua and Mujangi made several small sales to build trust with the buyers. They sent three packages containing approximately 49 pounds of ivory from Kinshasa. They arranged for the ivory to be cut into smaller pieces and painted black; the packages were then falsely labeled as containing wood.

Lokua and Mujangi acknowledged that in June 2021, they sent nearly five pounds of rhinoceros horn to Seattle using a similar scheme. Lokua discussed sending two tons of ivory and one ton of pangolin scales concealed in a shipping container. He stated that payment would have to be routed through a bank account in China before they could access the cash in Kinshasa.

Lokua and Mujangi admitted that they traveled to Seattle on Nov. 2, 2021, to meet with prospective buyers who were actually undercover federal agents. After negotiating the details for 4,900kg of ivory, 3kg of rhinoceros horn, and 1,500kg of pangolin scales, worth $3.5 million, agents arrested both men in Edmonds, Washington.

The investigation was part of “Operation Kuluna,” an international operation conducted between HSI Seattle, the government of the DRC and the U.S. Embassy in Kinshasa. After the arrests, the task force in DRC acted on information provided by HSI Seattle to seize 2,067 pounds of ivory and 75 pounds of pangolin scales in Kinshasa worth over $1 million, all contraband related to wildlife trafficking.

The Lacey Act is the nation’s oldest wildlife trafficking statute and prohibits, among other things, falsely labeling shipments containing wildlife. The United States, DRC and approximately 181 other countries are signatories to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES is an international treaty that restricts trade in species that may be threatened with extinction. CITES has permit requirements for protected wildlife, and the indictment alleges that the defendants did not obtain any of the necessary papers or declarations from DRC or the United States.

The CITES treaty has listed the white rhinoceros (Ceratotherium simum) as a protected species since 1975 and the African elephant (Loxodanta africana) since 1977. All species of pangolin were added to the CITES appendix with the greatest level of protection in 2017. All three mammals are threatened by poaching and habitat loss.

HSI Seattle conducted the investigation, with assistance from IRS Criminal Investigation. Senior Trial Attorneys Patrick M. Duggan and Ryan C. Connors of the Environmental Crimes Section with assistance from the U.S. Attorney’s Office for the Western District of Washington represented the government.

Source: United States Department of Justice 2

Modernizing Medicine Inc. (ModMed), an electronic health record (EHR) technology vendor located in Boca Raton, Florida, has agreed to pay $45 million to resolve allegations that it violated the False Claims Act (FCA) by accepting and providing unlawful remuneration in exchange for referrals and by causing its users to report inaccurate information in connection with claims for federal incentive payments.

The Anti-Kickback Statute prohibits anyone from offering or paying, directly or indirectly, any remuneration — which includes money or any other thing of value — to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs. In a complaint filed in conjunction with today’s settlement, the United States alleged that ModMed violated the FCA and the Anti-Kickback Statute through three marketing programs: First, ModMed solicited and received kickbacks from Miraca Life Sciences Inc. (Miraca) in exchange for recommending and arranging for ModMed’s users to utilize Miraca’s pathology lab services. Second, ModMed conspired with Miraca to improperly donate ModMed’s EHR to health care providers in an effort to increase lab orders to Miraca and simultaneously add customers to ModMed’s user base. Third, ModMed paid kickbacks to its current health care provider customers and to other influential sources in the healthcare industry to recommend ModMed’s EHR and refer potential customers to ModMed. 

“Electronic health records serve a critical role in informing physician decision making, and it is therefore essential that health care providers select such technology free from the influence of improper financial inducements,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “Vendors of electronic health records will be held to the same standards of compliance that we expect of everyone who provides health care services.”

“Today’s settlement marks the fourth resolution that our office has achieved as we seek to root out fraud in the electronic health record technology field,” said U.S. Attorney Nikolas P. Kerest for the District of Vermont. “It is imperative that medical providers be able to trust the health record systems with which they document important and sensitive patient information, and for too long electronic health record vendors have prioritized only sales. The government alleges that for years, ModMed, through a variety of schemes, engaged in illegal kickbacks that distorted both the EMR and pathology lab markets, in addition to providing its users with a deficient product. This resolution reflects the seriousness of the government’s allegations and the determination of the Department of Justice to restore integrity to the electronic health record field.”

As a result of this conduct, the government alleges that ModMed improperly generated sales for itself and for Miraca, while causing health care providers to submit false claims for reimbursement to the federal government for pathology services, and for incentive payments from the Department of Health and Human Services (HHS) for the adoption and “meaningful use” of ModMed’s EHR technology.

In January 2019, Miraca (now known as Inform Diagnostics) agreed to pay $63.5 million to resolve allegations that it violated the Anti-Kickback Statute and the Stark Law by providing to referring physicians subsidies for EHR systems and free or discounted technology consulting services. 2019 Press Release.

Additionally, under HHS’ EHR Incentive Programs, HHS offered incentive payments to health care providers that adopted certified EHR technology and met certain requirements relating to their “meaningful use” of that technology. Eligibility for incentive payments required health care providers to use certified EHR technology that, among other things, utilized certain standard vocabularies for drugs (RxNorm) and clinical terminology (SNOMED CT) in order to conduct certain transactions. The government’s complaint in intervention alleges that ModMed knew that its EHR did not always allow physician users to electronically record medical records using the required standard vocabularies, thereby causing certain of its users to submit false claims for incentive payments under that program.

The settlement with ModMed resolves, in part, allegations in a lawsuit filed in the District of Vermont by Amanda Long, a former Vice President of Product Management at ModMed. The lawsuit was filed under the qui tam, or whistleblower, provisions of the FCA, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The qui tam case is captioned United States ex rel. Long v. Modernizing Med., Inc., No. 2:17-cv-179 (D. Vt.). The Act allows the government to intervene and take over the action, as it did in this case. As part of today’s resolution, Ms. Long will receive approximately $9 million.

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 District of Vermont. The FBI and the Department of Health and Human Services, Office of Counsel to the Inspector General provided investigative assistance.

The investigation and pursuit of this matter illustrate the government’s emphasis on combating health care fraud, including in the healthcare technology arena. One of the most powerful tools in this effort is the FCA. 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).

Assistant U.S. Attorney Lauren A. Lively for the District of Vermont and Trial Attorneys Kelley Hauser and Sarah Hill of the Civil Division’s Commercial Litigation Branch, Fraud Section handled this matter. 

The claims in the relator’s and the government’s complaints are allegations only and there has been no determination of liability

Source: United States Department of Justice

The city of Lakewood, Ohio, has agreed to perform work that will significantly reduce discharges of untreated sewage from its sewer system into Lake Erie and the Rocky River. The settlement is set forth in an interim partial consent decree that was filed today in federal court in the Northern District of Ohio.

The decree requires Lakewood to complete construction of a high-rate treatment system that will treat combined sewer overflows and build two large storage basins that will hold millions of gallons of wastewater until it can be sent to the wastewater treatment plant. Under the decree, Lakewood will spend about $85 million to improve its sewer system and will pay a civil penalty of $100,000, split evenly between the United States and Ohio.

The decree would partially resolve the violations alleged in the underlying complaint filed by the United States and the state of Ohio. The complaint alleges that Lakewood discharged untreated sanitary sewage into the Rocky River or directly into Lake Erie on at least 1,933 occasions from January 2016 through the present. The complaint also alleges that on numerous occasions from January 2016 through the present, Lakewood discharged water from combined sewer outfalls that violated the effluent limitations included in its National Pollutant Discharge Elimination System permit.

“The Clean Water Act requires adequate infrastructure to limit discharges of untreated sewage,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “This settlement requires meaningful investments in Lakewood’s wastewater collection and treatment system that will protect the waters surrounding the city of Lakewood.”

“Discharges of untreated sewage can damage local water bodies and sicken community members who come in contact,” said Larry Starfield, EPA’s Acting Assistant Administrator s for the Office of Enforcement and Compliance Assurance. “This settlement will benefit Lakewood and other Ohio communities by preventing the discharge of millions of gallons of untreated sewage from entering the Rocky River and Lake Erie.”

Under the decree, Lakewood will also conduct multiple pipe lining and repair projects within its sewer system designed to eliminate causes of sanitary sewer overflows. Lakewood will also undertake a sampling pilot study designed to identify sewage in stormwater outfalls and a one-year post-construction monitoring program, which will provide the data needed for future work in Lakewood’s sewer system.

The implementation of this decree will prevent millions of gallons of raw sewage carrying harmful pollutants, such as E. coli, from being discharged to Lake Erie and the Rocky River. These reductions in pollutants will improve water quality in Lake Erie and the Rocky River. 

This decree is an important, but partial step to address the problems in Lakewood’s sewer system. It will resolve all civil penalty claims, but will not fully resolve the injunctive relief claims alleged in the complaint. Lakewood will be required through a subsequent, enforceable agreement with the United States and the state of Ohio to implement a plan that addresses the remaining permitted and unpermitted overflows in Lakewood’s sewer system and to demonstrate compliance with the Clean Water Act.

The proposed agreement is subject to a 30-day public comment period and final court approval after publication in the Federal Register. The agreement is available on the Justice Department’s website: https://www.justice.gov/enrd/consent-decrees.