Month: February 2023

Source: United States Department of Justice News

A federal jury convicted a Puerto Rican man today of extortion and obstruction of justice related to his involvement in a scheme to obtain money in exchange for preventing the release of chat messages involving senior officials in the Government of Puerto Rico. 

According to court documents and evidence presented at trial, Sixto Jorge Díaz Colón, 54, of San Juan, attempted to extort a public official in the Government of Puerto Rico in June 2019. Díaz Colón attempted to secure a $300,000 payment and other things of value from the official in exchange for the assurance that certain Telegram chat messages containing damaging information about various public officials in the government would not be disclosed publicly. When approached by the FBI in July 2019, Díaz Colón deleted messages containing information about his involvement in the scheme before surrendering his cellular telephone to the authorities.

Díaz Colón was convicted in the District of Puerto Rico of one count of attempted extortion, one count of interstate extortion, and one count of obstruction of justice. He is scheduled to be sentenced on May 5 and faces a maximum penalty of 20 years in prison on the top counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Joseph Gonzalez of the FBI San Juan Field Office made the announcement.

The FBI San Juan Field Office investigated the case.

Trial Attorney Michael N. Lang of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Myriam Fernández-González for the District of Puerto Rico are prosecuting the case. Former PIN Trial Attorney James Pearce and Trial Attorney Byron Jones of the Criminal Division’s Computer Crime and Intellectual Property Section also provided assistance.

Source: United States Department of Justice News

A former Arkansas State Senator was sentenced today to 46 months in prison in the Eastern District of Arkansas for accepting multiple bribes and tax fraud in connection with a multi-district investigation spanning the Eastern and Western Districts of Arkansas and the Western District of Missouri.

Pursuant to his global plea agreement, Jeremy Hutchinson, 48, of Little Rock, pleaded guilty on June 25, 2019, in the Eastern District of Arkansas to filing a false tax return; pleaded guilty on June 25, 2019, to an information filed in the Western District of Arkansas to conspiracy to commit federal program bribery; and pleaded guilty in the Western District of Missouri on July 8, 2019, to conspiracy to commit federal program bribery.

According to court documents, from 2010 through 2017, Hutchinson stole and misappropriated thousands of dollars in state campaign contributions for his own personal use and then filed false federal income tax returns from 2011 to 2014 to conceal his conduct. In addition, Hutchinson was hired as outside counsel by Dr. Benjamin Burris, an orthodontist who owned and operated orthodontic clinics throughout the state of Arkansas. In exchange for payments and legal work, Hutchinson pushed legislation beneficial to Burris. Hutchinson was provided legal work to conceal the corrupt nature of his arrangement. Hutchinson stole over $10,000 in state campaign funds for his own personal use and also falsified his 2011 tax returns, including failing to report $20,000-per-month-payments he received from one law firm and other sources of income he knowingly and intentionally concealed from his taxes.

Hutchinson is still pending sentencing in the Western District of Missouri for his role in a separate multimillion-dollar public corruption scheme that involved embezzlement, bribes, and illegal campaign contributions for elected public officials. According to court documents, Hutchinson accepted bribes in the form of monthly legal retainers and other things of value from employees and executives of Preferred Family Healthcare Inc. (formerly known as Alternative Opportunities Inc.), a Springfield, Missouri-based health care charity. In exchange for the bribes, Hutchinson provided favorable legislative and official action for the charity.

In 2022, Preferred Family Healthcare agreed to pay more than $8 million in forfeiture and restitution to the federal government and the state of Arkansas under the terms of a non-prosecution agreement, in which the charity admitted the criminal conduct of its former officers and employees.

Several former executives from the charity, former members of the Arkansas state legislature, and others have pleaded guilty in federal court as part of the long-running, multi-jurisdiction investigation, including the following:

• Former Chief Operating Officer, Bontiea Bernedette Goss, previously of Springfield, Missouri, pleaded guilty in September 2022 to her role in a conspiracy to commit bribery concerning programs receiving federal funds.
• Former Chief Financial Officer, Tommy “Tom” Ray Goss, husband of Bontiea Goss and also previously of Springfield, Missouri, pleaded guilty in September 2022 to participating in the conspiracy by embezzling funds from the charity, as well as by paying bribes and kickbacks to elected public officials in Arkansas. Tom Goss also pleaded guilty to one count of aiding and assisting in the preparation and presentation of a false tax return.
• Former Chief Executive Officer, Marilyn Luann Nolan of Springfield, Missouri, pleaded guilty in November 2018 to her role in a conspiracy to embezzle and misapply the funds of a charitable organization that received federal funds.
• Former Director of Operations and Executive Vice President Robin Raveendran, of Little Rock, Arkansas, pleaded guilty in June 2019 to conspiracy to commit bribery concerning programs receiving federal funds.
• Former executive and head of clinical operations Keith Fraser Noble, of Rogersville, Missouri, pleaded guilty in September 2019 to concealment of a known felony.
• Former employee and head of operations and lobbying in Arkansas, Milton Russell Cranford, aka Rusty, of Rogers, Arkansas, was sentenced to seven years in federal prison after pleading guilty to one count of federal program bribery.
• Political consultant Donald Andrew Jones, aka D.A. Jones, of Willingboro, New Jersey, pleaded guilty in December 2017 to his role in a conspiracy from April 2011 to January 2017 to steal from an organization that receives federal funds.
• Former Arkansas State Representative Eddie Wayne Cooper, of Melbourne, Arkansas, pleaded guilty in February 2018 to conspiracy to embezzle more than $4 million from Preferred Family Healthcare.
• Former Arkansas State Senator and State Representative Henry “Hank” Wilkins IV was sentenced in January 2023 for his role in a conspiracy to commit federal program bribery and devising a scheme and artifice to defraud and deprive the citizens of the state of Arkansas of their right to honest services.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas, U.S. Attorney David Clay Fowlkes for the Western District of Arkansas, U.S. Attorney Teresa A. Moore for the Western District of Missouri, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Special Agent in Charge Charles A. Dayoub of the FBI Kansas City Field Office, and Special Agent in Charge Christopher J. Altemus Jr. of the IRS Criminal Investigation (IRS-CI) Dallas Field Office made the announcement.

The FBI, IRS-CI, and the Offices of the Inspectors General from the Departments of Justice, Labor, and the FDIC investigated the cases.

Senior Litigation Counsel Marco A. Palmieri, Director of Enforcement & Litigation for the Election Crimes Branch Sean F. Mulryne, and Trial Attorney Jacob Steiner of the Criminal Division’s Public Integrity Section; Assistant U.S. Attorney Stephanie Mazzanti for the Eastern District of Arkansas; Supervisory Assistant U.S. Attorney Randall Eggert and Assistant U.S. Attorney Shannon T. Kempf for the Western District of Missouri; and Assistant U.S. Attorneys Aaron L. Jennen and Steven M. Mohlhenrich for the Western District of Arkansas are prosecuting the separate criminal cases. Former Assistant U.S. Attorneys Patrick Harris for the Eastern District of Arkansas and former Assistant U.S. Attorney Ben Wulff for the Western District of Arkansas provided significant assistance.

Source: United States Department of Justice News

The Justice Department’s Antitrust Division announced today the withdrawal of three outdated antitrust policy statements related to enforcement in healthcare markets: Department of Justice and FTC Antitrust Enforcement Policy Statements in the Health Care Area (Sept. 15, 1993); Statements of Antitrust Enforcement Policy in Health Care (Aug. 1, 1996); and Statement of Antitrust Enforcement Policy Regarding Accountable Care Organizations Participating in the Medicare Shared Savings Program (Oct. 20, 2011).

After careful review and consideration, the division has determined that the withdrawal of the three statements is the best course of action for promoting competition and transparency. Over the past three decades since this guidance was first released, the healthcare landscape has changed significantly. As a result, the statements are overly permissive on certain subjects, such as information sharing, and no longer serve their intended purposes of providing encompassing guidance to the public on relevant healthcare competition issues in today’s environment. Withdrawal therefore best serves the interest of transparency with respect to the Antitrust Division’s enforcement policy in healthcare markets. Recent enforcement actions and competition advocacy in healthcare provide guidance to the public, and a case-by-case enforcement approach will allow the Division to better evaluate mergers and conduct in healthcare markets that may harm competition.

“The healthcare industry has changed a lot since 1993, and the withdrawal of that era’s out of date guidance is long overdue,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The Antitrust Division will continue to work to ensure that its enforcement efforts reflect modern market realities.”

Guidance documents are non-binding and do not create legal rights or obligations. Antitrust enforcement and competition advocacy in healthcare remain important parts of the division’s mission, and the division will continue to vigorously enforce the antitrust laws in the healthcare industry.