Month: December 2022

Source: United States Department of Justice Criminal Division

Two New York diagnostic testing facility owners were sentenced today to three years in prison for their roles in a more than $18 million health care fraud scheme.

According to court documents, Tea Kaganovich, 50, and Ramazi Mitaishvili, 62, both of Brooklyn, are a married couple that co-owned several diagnostic testing facilities in Brooklyn. The couple paid over $18 million in kickbacks for the referral of beneficiaries who submitted themselves to diagnostic testing and other purported medical services. Kaganovich and Mitaishvili also falsely reported to the IRS that the illegal kickback payments were legitimate business expenses and therefore submitted tax forms that under-reported business income and claimed deductions to which they were not entitled.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Breon Peace for the Eastern District of New York; Special Agent in Charge Scott J. Lampert of the Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Office of Investigations; Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office; and Special Agent in Charge Thomas Fattorusso of the IRS Criminal Investigation (IRS-CI) New York Field Office made the announcement.

The HHS-OIG, FBI, and IRS-CI investigated the case.

Assistant Chief Debra Jaroslawicz and Trial Attorney Sarah Wilson Rocha of the Justice Department’s Fraud Section and Assistant U.S. Attorney Tanisha Payne for the Eastern District of New York prosecuted the case. Assistant U.S. Attorneys Payne and Brendan King handled forfeiture matters.

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

A Nevada man was sentenced Nov. 30 to 13 years and three months in prison for filing false tax returns, aggravated identity theft, wire fraud, money laundering and impersonating an FBI agent.

According to court documents and statements made in court, King Isaac Umoren, 41, owned and operated Universal Tax Services (UTS), a tax preparation business based in Las Vegas. Umoren used that business to engage in two separate fraud schemes.

First, from 2012 through 2016, Umoren prepared and filed with the IRS tax returns for clients that included false deductions and fictitious businesses in an effort to generate larger refunds than the clients were entitled to receive. At times, Umoren used the names and the IRS Preparer Tax Identification Numbers (PTINs) of other UTS employees without their knowledge or consent, making it seem as if they, not he, had prepared the false returns. Umoren also required his clients to use a refund anticipation check program, which he then utilized to secretly take fees out of the clients’ tax refunds without their knowledge. On Feb. 7, 2016, Umoren posed as an FBI agent, wearing a fake badge and tactical gear, and drove to a client’s house with police lights attached to his vehicle to demand payment of a tax preparation fee.

Second, in May 2016, Umoren attempted to sell UTS. To induce potential buyers to purchase the company at an inflated price, he provided fraudulent documents – including forged bank statements, fabricated return preparation fee reports, false personal tax returns and other tax forms that had never actually been filed with the IRS – as well as the stolen tax and personal identifying information of approximately 12,000 taxpayers who were not UTS clients. Eventually, Umoren succeeded in inducing a victim to purchase UTS for approximately $3.8 million. He used the sale proceeds to purchase land in Henderson and an automobile.

In addition to the term of imprisonment, U.S. District Judge Andrew P. Gordon ordered Umoren to serve three years of supervised release and pay $9,699,887 in restitution to the United States and the other victims of his fraud schemes.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jason M. Frierson for the District of Nevada made the announcement.

IRS Criminal Investigation, the Treasury Inspector General for Tax Administration, and the FBI investigated the case.

Trial Attorneys Sarah A. Kiewlicz and Patrick Burns of the Tax Division prosecuted the case.

Source: United States Department of Justice News

MIAMI — Frankie David Vargas II of Miami has been sentenced to 27 years in prison and three years of supervised release by U.S. District Judge Darrin P. Gayles for a two-day crime spree that involved carjacking, robbery, and a firearm.

According to court records, on August 17, 2021, Vargas drove a stolen car to a gym parking lot where he broke into nine cars and stole money, jewelry, and a handgun.  Around 3:30 a.m. the next day he robbed a gas station attendant at gunpoint and stole cash from the register and the attendant’s phone.

Vargas ditched the car on the street a few hours later and walked to an apartment complex where he broke into one of the apartments through the downstairs window. He robbed the woman who was living there at gunpoint and shot her teenage son when he tried to help his mother. The bullet penetrated the shoulder and hit his lungs. Vargas then stole the keys to the son’s car, crashed it into another car, and sped off. Law enforcement tracked Vargas through the phone he had stolen from the gas station attendant and found him at another residence where he was arrested.

Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and acting Special Agent in Charge Robert M. Dewitt, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

FBI, Miami Field Office, investigated the case with assistance from the City of Miami Police Department, the North Miami Police Department, and the Miami-Dade Police Department. Assistant U.S. Attorney Jonathan Bailyn prosecuted the case.  

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.

Source: United States Department of Justice News

SAN ANTONIO – A San Antonio man was sentenced Wednesday to 44 months in prison followed by three years of supervised release for wire fraud.

According to court documents, Sergio Soto Jr., 35, operated two businesses, iPhone Buyerz and Phone Dropz, through which he claimed to sell used cell phones in bulk.  While heavily advertising on the internet, Soto did not, in fact, have access to the large amount of cell phones he offered for sale.  Soto fraudulently sold phones that he had no ability to deliver to victims including businessmen in the U.S. and in Mexico.  The amount of fraud totaled $990,696.00 and Soto agreed to make restitution in this amount as part of his plea.  Additionally, Soto was sentenced to pay $400 in special assessments.

“The growing trend towards significant on-line purchases has greatly increased the problem of wire fraud, both in the United States and internationally,” said U.S. Attorney Ashley C. Hoff for the Western District of Texas.  “Prosecutions like this are an important part of protecting consumers from deceitful predators.”

“This individual took advantage of unsuspecting victims and lined his pockets at their expense,” said Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Division.  “Today’s sentencing sends a strong message that those who engage in these types of fraudulent schemes will be held accountable.”

The FBI, Texas Department of Public Safety and San Antonio Police Department investigated the case.

Assistant U.S. Attorneys Greg Surovic and Matthew Kinskey prosecuted the case.

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Source: United States Department of Justice News

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