Month: April 2023

Source: United States Department of Justice News

The Justice Department, together with the Federal Trade Commission (FTC), today announced that the U.S. District Court for the Southern District of Florida entered an order that requires Legacy Cremation Services, LLC, Funeral & Cremation Group of North America, LLC, and Anthony Joseph Damiano to pay $275,000 in civil penalties and to be subject to injunctive relief requiring them to comply with the FTC Act and the FTC’s Trade Regulation Rule Concerning Funeral Industry Practices (Funeral Rule). The FTC Act prohibits unfair and deceptive conduct and false advertising. The Funeral Rule prohibits providing consumers with inaccurate price information and requires certain disclosures to consumers regarding pricing for funeral-related goods.

The stipulated order settles the government’s allegations that Legacy Cremation Services, LLC, Funeral & Cremation Group of North America, LLC, and Anthony Joseph Damiano violated the FTC Act and Funeral Rule. The government’s complaint alleges that defendants serve as brokers between consumers and third-party funeral and cremation providers that offer funeral services, and that defendants have misled consumers about the locations where funeral services will be provided, as well as the ultimate costs of such services. The complaint also alleges that when consumers objected to these pricing practices, defendants refused to provide consumers with the remains of their loved ones until they paid. Under the settlement reached by the parties, defendants agreed not to engage in these practices. They also specifically agreed to clearly and conspicuously include on their websites the actual physical locations of the service providers and a link to their general price lists. Before accepting payment from any consumer, defendants agreed to provide an itemized, written statement of all prices and the total cost of services. defendants also agreed that their obligation to provide accurate information about their offerings and prices extends to consumers who inquire by telephone or electronic means.

“The Department of Justice is committed to protecting consumers from deceptive sales practices — particularly when consumers are in vulnerable circumstances, such as when a loved one passes” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This resolution serves as a warning that the Department of Justice will not permit companies and individuals to profit from consumers’ grief by engaging in unlawful and deceptive marketing practices when offering funeral arrangements.”

“Lying to consumers about critical information including price and location of services when they are dealing with the loss of a loved one is outrageous and illegal,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Our actions in this case show the FTC’s commitment to enforcing the Funeral Rule to protect consumers and honest funeral homes.”

Trial Attorneys Wandaly Fernández García and Katherine Ho and Assistant Director Lisa K. Hsiao of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney James A. Weinkle for the Southern District of Florida handled the matter. Rebecca Plett and Thomas Harris represent the FTC.

Source: United States Department of Justice News

EAST ST. LOUIS, Ill. – A podiatrist practicing in East St. Louis pled guilty in a U.S. District courtroom on Thursday to committing health care fraud from 2016 to 2020.

Howard Jackson, 69, of Florissant, Missouri, admitted he routinely billed Medicare and Medicaid for procedures he did not perform. 

“Health care providers who commit fraud for financial gain threaten the integrity of our health care system and the basic expectation of competent, available care,” said First Assistant U.S. Attorney Jim Cutchin. “I appreciate our partnership with the Illinois State Police and the Office of the Inspector General to bring this offender to justice.”

“Providers who submit fraudulent claims to Medicare and Medicaid undermine the integrity of federal health care programs and waste valuable taxpayer dollars,” said Special Agent in Charge Mario M. Pinto at the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working closely with our law enforcement partners, HHS-OIG remains committed to investigating and holding accountable bad actors who defraud programs meant to address the legitimate needs of patients.”

“Medical professionals are in a position of trust and when they break that trust by stealing thousands of tax payer dollars for personal gain, ISP will be there to investigate,” said ISP Director Brendan F. Kelly.

Dr. Jackson was a podiatrist with a practice in East St. Louis, Illinois. Between January 2016 and December 2020, he engaged in a health care fraud scheme by submitting claims to Medicare and Medicaid for “nail avulsions” he did not perform. A “nail avulsion” is a surgical procedure that involves the separation and removal of all or part of a toenail from the tip of the nail back to the base of the nail. The procedure typically requires the use of anesthesia to avoid causing extreme discomfort to the patient.

Dr. Jackson admitted in court papers that, on many occasions when he billed for a nail avulsion, he had not used anesthesia and had provided only routine foot care like trimming and clipping nails. Jackson cheated Medicare and Medicaid out of at least $144,694.69 as a result of the fraud.

Jackson’s offenses carry a maximum sentence of ten years’ imprisonment and a fine of up to $250,000. His sentencing is set for July 27, 2023.

The Illinois State Police and the U.S. Department of Health and Human Services, Office of the Inspector General, are conducting the investigation. Assistant U.S. Attorney Peter T. Reed is prosecuting the case.

Source: United States Department of Justice News

            Montgomery, Alabama – On April 6, 2023, Carmen Ramer Davis, 59, from Opp, Alabama, received a sentence of 18 months in prison after pleading guilty to eight counts of wire fraud, announced United States Attorney Sandra J. Stewart. The federal judge also ordered that Davis serve one year of supervised release following her prison term.

            According to court records and statements made in open court, sometime in 2006, the Brooklyn Congregational Methodist Church in Coffee County appointed Davis to serve as its secretary. In this position, Davis had authority to pay bills and expenses incurred by the church and had access to the church’s bank accounts. Davis eventually obtained a debit card associated with the church’s bank account without the church’s knowledge. Davis began using the card to make fraudulent cash withdrawals at ATMs and to purchase personal items at various retailers. She also fraudulently wrote checks from the church’s bank account to herself or made them out to cash. Davis did not make these withdrawals and purchases with the knowledge or consent of the church, nor were they for the church’s benefit. Evidence gathered during the investigation indicated that Davis used some of the illicit proceeds for trips to casinos in Mississippi and Alabama. The fraudulent activity was not discovered until August 2019, when a church leader received a letter from the church’s bank indicating there were insufficient funds to cover a $75.00 check written against the church’s account.

            During today’s sentencing hearing, the judge determined that, over the course of the scheme (a period stretching from July of 2008 until July of 2019), Davis defrauded the church of $89,440.32. The judge ordered Davis to pay restitution to the church in that amount. Soon after the church leaders discovered Davis’s fraud, the Brooklyn Congregational Methodist Church closed due to financial hardship and has not reopened.

            “The crimes committed by Ms. Davis victimized an entire faith community,” said United States Attorney Stewart. “The harm will continue to be felt for quite some time. I am hopeful that the sentence imposed will deter others from engaging in such deceitful conduct.”

            “The actions of the defendant significantly damaged not only the church, but also the community at large,” stated FBI Special Agent in Charge Paul Brown. “I am proud of the work by the FBI and US Attorney’s office to hold Davis accountable for her actions and work toward repairing the public’s trust.”

            The FBI and the Coffee County Sheriff’s Office investigated this case. Assistant United States Attorney Joel Feil prosecuted the case.

Source: United States Department of Justice News

ANCHORAGE – On April 4, 2023, a Colorado man was sentenced on charges related to violations of the Lacey Act and smuggling protected marine corals from the Philippines into the United States for retail sale.

Veleriy V. Gorbounov, 45, of Morrison, Colorado was sentenced this week by U.S. District Court Judge Joshua Kindred to a term of probation of two years, the payment of a fine of $4,000 to a Philippines based organization dedicated to coral reef restoration and being prohibited from engaging in the sale of marine corals for his role in illegally importing endangered coral from the Philippines for sale. Gorbounov is one of 8 defendants charged in the District of Alaska for illegally importing corals from the Philippines for retail sale.

In April, 2022, prosecutors charged Jerome Anthony Stringfield, 43, of Kissimmee, Florida; Albert B. Correira, 35, of Westport, Massachusetts; and Allen William Ockey, 35, of Long Beach, California, with felony violations of conspiracy, violations of the Lacey Act and smuggling of corals from the Philippines. Ockey pleaded guilty to Wildlife Trafficking felony charges and was sentenced to a term of two years’ probation and required to pay a donation to a Phillipines organization dedicated to coral reef restoration in the amount of $5,000. Defendant Stringfield and Correira’s cases remains pending.

In separate filings, the following individuals were each charged with misdemeanor offenses related to violations of the Lacey Act: Derek M. Kelley, 31, of Elkhart, Indiana; James Knight, 47, of Newaygo, Michigan; Valeriy V. Gorbounov, 46, of Morrison, Colorado; Nathan C. Meisner, 35, of Rapid City, South Dakota; and Ricky A. Sprires, 34, of Gilbert South Carolina. Each of these defendants have plead guilty to Wildlife Trafficking under the Lacey Act and were sentenced to terms of probation of two years, required to pay contributions to a Philippine-based coral reef restoration organization in amounts varying from $2,000 to $4,000 and conditions that they do not import or sell corals for the term of probation.

The indictment and separate filings all alleged that between July 2017 and August 2018, the defendants paid a Philippine national to dive for and collect protected marine corals which they would then sell online to coral collectors and hobbyists. They further alleged that some corals were illegally sold in violation of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) which is an international treaty implemented to prevent species from becoming endangered or extinct because of international commercial trade. Additionally, Philippine law prohibits any person to gather, possess, commercially transport, sell or export corals commercially regardless of CITES status. In total, the defendants, through their Philippine supplier, illegally purchased and transported for sale more than 3,000 separate pieces of coral in violation of Philippines and United States law.

The charging documents in all cases states that the Republic of the Philippines is one of six countries straddling the Coral Triangle, a 5.4 million-square-kilometer stretch of ocean that contains 75% of the world’s coral species, one-third of the Earth’s coral reefs and more than 3,000 species of fish. Poaching for corals and other factors have left only 5% of coral reefs in the Philippines in “excellent” condition, with only 1% in a “pristine” state. 

The supplier in the Philippines, Glenn Albert Binoya, a Philippines national, was charged by the Republic of the Philippines after the U.S. Fish and Wildlife Service contacted Philippine authorities about their investigation. Binoya, 47, died of unrelated medical issues prior to resolution of his case.

 “This office and the Department of Justice will pursue state, national and transnational wildlife trafficking regardless of location,” said United States Attorney S. Lane Tucker, District of Alaska. “Through our partnership with the Fish and Wildlife Service these traffickers have been brought to justice.’

U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.

The U.S. Fish and Wildlife Service, Office of Law Enforcement is investigating the case.

Assistant U.S. Attorney Steven Skrocki is prosecuting the cases.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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usao/ak/23-025

Source: United States Department of Justice 2

The Justice Department, together with the Federal Trade Commission (FTC), today announced that the U.S. District Court for the Southern District of Florida entered an order that requires Legacy Cremation Services, LLC, Funeral & Cremation Group of North America, LLC, and Anthony Joseph Damiano to pay $275,000 in civil penalties and to be subject to injunctive relief requiring them to comply with the FTC Act and the FTC’s Trade Regulation Rule Concerning Funeral Industry Practices (Funeral Rule). The FTC Act prohibits unfair and deceptive conduct and false advertising. The Funeral Rule prohibits providing consumers with inaccurate price information and requires certain disclosures to consumers regarding pricing for funeral-related goods.

The stipulated order settles the government’s allegations that Legacy Cremation Services, LLC, Funeral & Cremation Group of North America, LLC, and Anthony Joseph Damiano violated the FTC Act and Funeral Rule. The government’s complaint alleges that defendants serve as brokers between consumers and third-party funeral and cremation providers that offer funeral services, and that defendants have misled consumers about the locations where funeral services will be provided, as well as the ultimate costs of such services. The complaint also alleges that when consumers objected to these pricing practices, defendants refused to provide consumers with the remains of their loved ones until they paid. Under the settlement reached by the parties, defendants agreed not to engage in these practices. They also specifically agreed to clearly and conspicuously include on their websites the actual physical locations of the service providers and a link to their general price lists. Before accepting payment from any consumer, defendants agreed to provide an itemized, written statement of all prices and the total cost of services. defendants also agreed that their obligation to provide accurate information about their offerings and prices extends to consumers who inquire by telephone or electronic means.

“The Department of Justice is committed to protecting consumers from deceptive sales practices — particularly when consumers are in vulnerable circumstances, such as when a loved one passes” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This resolution serves as a warning that the Department of Justice will not permit companies and individuals to profit from consumers’ grief by engaging in unlawful and deceptive marketing practices when offering funeral arrangements.”

“Lying to consumers about critical information including price and location of services when they are dealing with the loss of a loved one is outrageous and illegal,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Our actions in this case show the FTC’s commitment to enforcing the Funeral Rule to protect consumers and honest funeral homes.”

Trial Attorneys Wandaly Fernández García and Katherine Ho and Assistant Director Lisa K. Hsiao of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney James A. Weinkle for the Southern District of Florida handled the matter. Rebecca Plett and Thomas Harris represent the FTC.