Month: April 2023

Source: United States Department of Justice News

A Missouri man was sentenced in federal court today for 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, 25, of Kansas City, Missouri, was sentenced by U.S. District Judge Brian C. Wimes to 262 months in federal prison without parole.

“This defendant’s sentence holds him accountable for the violent and callous hate crime perpetrated against a defenseless teenager targeted because of their LGBTQ+ status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Recent FBI data makes clear that hate crimes targeting the LGBTQ+ community persist and this sentence should send a strong message to the perpetrators of these crimes that they will be held accountable. Bias motivated misconduct has no place in our country, and the Justice Department is committed to working with our federal, state and local partners to vigorously pursue justice for victims targeted because of their sexual orientation.”

“This significant penalty brings a measure of justice to the young victim and to the larger LGBTQI+ community,” said U.S. Attorney Teresa Moore for the Western District of Missouri. “To ambush and shoot an unwitting victim, who posed no threat to him, for no other reason than his sexual orientation is reprehensible behavior that won’t be tolerated. Our entire community must stand together against acts of violence motivated by hatred for any group of people. The Department of Justice is committed to protecting the civil rights of all citizens and prosecuting those who illegally threaten those rights.”

“This sentencing validates that bias-motivated crimes will not be tolerated and demonstrates law enforcement’s continued commitment to aggressively investigate and bring to justice those responsible for these heinous crimes. To target an individual, lure them and shoot them multiple times for no other reason than their perceived sexual orientation is reprehensible,” said Special Agent in Charge Charles Dayoub of the FBI Kansas City Field Office. “The sentence imposed today reflects the severity of the crime committed against the victim and the entire LGBTQI+ community. Every individual has the right to live without fear of being attacked or harassed, regardless of their sexual orientation. The FBI is committed to working with our federal, state and local partners to protect the civil rights of all. “

On July 7, 2022, Robinson pleaded guilty to one count of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. Robinson has been in federal custody since he was indicted by a federal grand jury on Aug. 10, 2021.

By pleading guilty, Robinson admitted that he shot the then-16-year-old 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.

After a chance meeting at the Kansas City Public Library on May 29, 2019, Robinson and M.S. talked briefly over Facebook Messenger before meeting outside the library. According to court documents, library surveillance footage showed that M.S. began to walk away, and Robinson followed him, catching up to M.S. before crossing the street. The two then walked for a while in the Swoop Park area, until Robinson suggested that they go into a wooded area nearby 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.

Robinson and M.S. entered a wooded area nearby. M.S. changed his mind and turned to leave the woods, but Robinson pulled out his pistol and fired repeatedly at M.S. M.S. was able to get up and onto a sidewalk in front of the woods. He moved along the sidewalk until he eventually collapsed in front of a nearby apartment building. A bystander called 911, and police officers and emergency medical services responded. M.S. was transported to a local hospital, where he was deemed to be in critical condition.

M.S., who sustained eight gunshot wounds, survived the shooting after spending approximately two weeks in the hospital. M.S. has since suffered long-term effects of the shooting. He has undergone multiple surgeries and physical therapy and still has several bullets inside of him.

Robinson fled through the woods toward his apartment building and engaged 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.

The FBI Kansas City Field Office and the Kansas City Police Department investigated the case.

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’s Criminal Section prosecuted the case.

Source: United States Department of Justice Criminal Division

Two Florida doctors were sentenced today for their respective roles in a scheme to defraud Medicare by submitting over $31 million in claims for expensive durable medical equipment (DME) that Medicare beneficiaries did not want or need and that were procured through the payment of kickbacks.

Dean Zusmer, 54, of Miami, was sentenced to eight years and one month in prison and ordered to pay $1,404,200.97 in restitution. Dr. Lawrence Alexander, 45, of Miami, was sentenced to two years and nine months in prison. Restitution will be determined at a later hearing.

According to court documents, Zusmer was a chiropractor who conspired with others to steal millions of dollars from Medicare. Zusmer owned one of four DME companies that collectively billed Medicare over $31 million for medically unnecessary DME, of which over $15 million was paid. Zusmer and his co-conspirators, including Jeremy Waxman, acquired patient referrals and signed doctors’ orders by paying kickbacks to marketers who used overseas call centers to solicit patients and telemedicine companies to procure prescriptions for unnecessary braces for these patients. Alexander was an orthopedic surgeon who owned one of the DME companies with Waxman and concealed both his and Waxman’s roles in the scheme by putting the DME company in the name of one of Alexander’s family members.

In January 2023, Zusmer was convicted after trial of multiple health care fraud-related offenses and for making a false statement relating to health care matters; Alexander was convicted of making a false statement relating to health care matters. Waxman was previously sentenced to over 15 years in prison for his role in the scheme.

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 Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.

The FBI and HHS-OIG investigated the case.

Trial Attorneys Catherine Wagner, Patrick Queenan, Meredith Hough, Jamie de Boer, and Keith Clouser of the Criminal Division’s Fraud Section 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 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 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 www.justice.gov/criminal-fraud/health-care-fraud-unit.

Source: United States Department of Justice News

Damian Williams, the United States Attorney for the Southern District of New York, announced that MATTHEW TAYLOR WITKOWSKI was sentenced today to 60 months in prison for conspiracy to commit health care fraud by fraudulently trafficking in orders for durable medical equipment such as back, knee, and elbow braces.  WITKOWSKI previously pled guilty to the conspiracy charge and was sentenced today before United States District Judge Denise L. Cote.

U.S. Attorney Damian Williams said: “Today, Matthew Taylor Witkowski faced justice for illegally selling orders for durable medical equipment and thus bilking Medicare out of more than $8 million.  This sort of fraud substantially harms the Medicare program — and will not be tolerated.”

According to statements made in court and publicly filed documents in this case:

From at least August 2019 through the date of his arrest in July 2022, WITKOWSKI and his co-defendant, Christopher Margait, engaged in a scheme to defraud Medicare by illegally obtaining and selling fraudulent written orders for goods and services paid for by Medicare, particularly including for durable medical equipment (“DME”).  Using a business that he jointly owned and operated with Margait, and a call center that WITKOWSKI owned and operated in the Dominican Republic, WITKOWSKI illegally generated and purchased fraudulent written orders for DME and then sold those fraudulent orders to pharmacies and DME suppliers, including suppliers in New York City.  Those pharmacies and DME suppliers then used those fraudulent orders as the basis for more than $8 million in fraudulent claims to Medicare.  Many of these fraudulent orders used names and personal health information of actual Medicare beneficiaries, without the beneficiaries’ authorization or prior knowledge.  Many of these fraudulent orders also contained professional information of doctors and other healthcare providers enrolled in the Medicare program, as well as the purported electronic signatures of these providers, which were falsified and created without the authorization or knowledge of these providers.

During the course of the scheme, WITKOWSKI and Margait received more than $4 million in illegal kickbacks from DME suppliers, who made these payments to True Prospects Marketing, Inc., a company controlled by WITKOWSKI and Margait, and to Sales Drive Marketing LLC, a company owned and controlled by WITKOWSKI.

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WITKOWSKI, 38, a U.S. citizen who resided in the Dominican Republic, pled guilty on January 19, 2023, to a single count of conspiracy to commit health care fraud.  In addition to the prison sentence, WITKOWSKI was sentenced to three years of supervised release and ordered to pay forfeiture of $4,065,995 and restitution of $8,131,990 to the Medicare program.

Mr. Williams praised the outstanding investigative work of the Office of the Inspector General of the U.S. Department of Health and Human Services.

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney David Raymond Lewis is in charge of the prosecution. 

Source: United States Department of Justice News

Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced the arrest today of GERALD SHAW, a convicted felon and disbarred attorney, in connection with his involvement in a multi-million-dollar fraud scheme.  SHAW is accused of serving as the purported “Chief Compliance Officer” for a purported financial institution, Dominion Bank and Trust Company Limited (“Dominion Bank”), which claimed to be able to extend financing for small businesses but, in fact, operated an advance fee fraud scheme.  SHAW was arrested this morning in Claremont, California, and will be presented later today in the United States District Court for the Central District of California.

U.S. Attorney Damian Williams said: “As alleged, Gerald Shaw served as the supposed ‘Chief Compliance Officer’ for Dominion Bank, which held itself out as a legitimate financial institution that could extend or facilitate millions of dollars in financing for small businesses.  But in fact, Dominion Bank was also a fraud.  In his role, Shaw, a disbarred attorney and convicted felon, drafted financial instruments that were worthless.  Shaw knew that Dominion Bank was a fraud, but he continued to draft these financial instruments anyway.  Shaw now faces serious charges for his alleged crimes.” 

FBI Assistant Director in Charge Michael J. Driscoll said: “The defendant is alleged to have participated in a scheme which defrauded clients of millions of dollars through the promise of financing in exchange for an advance fee.  Complex financial frauds of this nature damage faith in our financial systems and institutions, and they can cause untold harm to the victims of the fraud.   The FBI is dedicated to investigating individuals who operate unscrupulous businesses and ensuring that their crimes are answered for in the criminal justice system.”

HSI Special Agent in Charge Ivan J. Arvelo said: “As Dominion Bank and Trust’s purported Chief Compliance Officer, Gerald Shaw is alleged to have participated in a conspiracy that defrauded investors of millions of dollars through the issuance of fraudulent financial instruments.  These types of crimes have devastating effects on the victims and can erode trust in the financial system.  HSI will aggressively pursue individuals and organizations that perpetrate these fraudulent schemes to bring justice to the victims and restore faith in our financial institutions.  I am especially grateful for the dedication and investigative acumen of HSI New York’s El Dorado Task Force and HSI Los Angeles for their support in this investigation.”

According to the allegations in the Complaint:[1]

From its formation in or about late 2015 until in or about July 2020, Dominion Bank (along with its affiliates) was a purported financial institution that claimed to be able to extend and facilitate financing for small businesses in exchange for an advanced fee or deposit.  In fact, Dominion Bank operated an advance fee fraud scheme (the “Scheme”).  As part of the fraud, Scheme members instructed victims to wire tens or hundreds of thousands of dollars to Dominion Bank as a deposit or servicing fee for future financing or credit based on representations that Dominion Bank could provide such services.  Those representations were false.  In fact, no financing existed; the victims did not receive the promised credit; and the victims were generally unable to get their money back, as Dominion Bank typically did not return funds to victims but, instead, kept victims’ money and, in some instances, even responded to refund requests by sending invoices for additional amounts.  Dominion Bank defrauded at least approximately 60 victims in total (individual and corporate) out of more than approximately $4 million. 

One way that Dominion Bank defrauded victims was by issuing them worthless financial instruments — such as a standby letter of credit (“SBLC”) — in exchange for large upfront payments.  An SBLC is a legal document between a bank and its client, in which the bank vouches for the client’s creditworthiness and also becomes the guarantor, i.e., the bank promises that, if its client cannot meet its obligations, the bank will do so.  Among other things, Dominion Bank lacked the assets necessary to issue such financial instruments.  According to several victims of the Scheme, other financial institutions have described SBLCs issued by Dominion Bank as being worthless.  As one victim explained, a potential counterparty described Dominion Bank’s SBLC as a “worthless piece of paper.”  Another individual explained that a potential counterparty described Dominion Bank’s $4 million SBLC as not “worth the paper it’s printed on.”

From at least in or about October 2016 through in or about April 2020, Dominion Bank’s Chief Compliance Officer was SHAW.  In that role, SHAW’s responsibilities included drafting various documents, including SBLCs, that were sent to victims in exchange for payments from the victims.  In June 2018, SHAW sent an email to two Dominion Bank officers in which SHAW acknowledged that Dominion Bank lacked funds.  SHAW wrote that Dominion Bank was “20 weeks behind” in paying SHAW’s “$500 a week salary,” and SHAW added that, “On several occasions, I have indicated to you that I know Dominion does not have the money to pay my $500 a week [salary].”  Nonetheless, SHAW continued his involvement in the Scheme thereafter, despite his awareness that Dominion Bank was selling worthless financial instruments because it lacked the assets and ability to back up its representations.  For instance, in December 2018, SHAW was involved in Dominion Bank’s issuance or sale of an approximately $50 million financial instrument and an approximately $25 million financial instrument.  In each instance, Dominion Bank represented, as guarantor, that it had assets sufficient to cover each financial instrument when it did not.

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SHAW, 75, of Claremont, California, is charged with one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carry a maximum potential prison sentence of 20 years. 

The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the outstanding investigative work of the FBI and HSI.  He also thanked FBI Los Angeles, HSI Los Angeles, and the U.S. Attorney’s Office for the Central District of California for their assistance.

Mr. Williams also noted that the investigation is ongoing.  If you believe you have information about the defendant, this case, or if you believe you are a victim of any crimes related to Dominion Bank, please email: USANYS.DominionBankCase@usdoj.gov.

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Transnational Criminal Enterprises Unit.  Assistant U.S. Attorneys Michael D. Neff and Sheb Swett are in charge of the prosecution.

The charges in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.