Month: June 2023

Source: United States Department of Justice

Two Nigerian nationals who were extradited to the United States from the United Kingdom pleaded guilty to operating a transnational inheritance fraud scheme.

According to court documents, Jerry Chucks Ozor, 43, and Iheanyichukwu Jonathan Abraham, 44, were part of a group of fraudsters that sent personalized letters to elderly victims in the United States, falsely claiming that the sender was a representative of a bank in Spain and that the recipient was entitled to receive a multimillion-dollar inheritance left for the recipient by a family member who had died years before in Spain. Victims were told that before they could receive their purported inheritance, they were required to send money for delivery fees, taxes, and payments to avoid questioning from government authorities. Victims sent money to the defendants through a complex web of U.S.-based former victims. The defendants convinced these former victims to receive money from new victims and then forward the fraud proceeds to others (thereby serving as so-called “money mules”). In pleading guilty, the defendants admitted to defrauding over $6 million from more than 400 victims, many of whom were elderly or otherwise vulnerable.

“The Justice Department’s Consumer Protection Branch will pursue, prosecute, and secure the convictions of transnational criminals responsible for defrauding U.S. consumers, wherever they are located. I thank the United Kingdom’s National Crime Agency for its extensive efforts in helping to ensure that these defendants are held accountable here in the United States,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department and U.S. law enforcement will continue to work closely with law enforcement partners across the globe to bring to justice criminals who attempt to defraud U.S. victims from outside the United States.”

“The U.S. Postal Inspection Service (USPIS) has a long tradition of protecting American citizens from these types of schemes and bringing those responsible to justice,” said Postal Inspector in Charge Juan A. Vargas of the USPIS Miami Division. “These guilty pleas are a testament to the dedicated partnership between the Department of Justice’s Consumer Protection Branch, Homeland Security Investigations (HSI), and the U.S. Postal Inspection Service to protect our citizens from these scams.”

“These guilty pleas are a result of the unwavering commitment and countless hours spent by HSI and our law enforcement partners to ensure that this investigation led the extradition of the two Nigerian nationals,” said Special Agent in Charge Scott Brown of HSI Arizona. “Operating a transnational inheritance fraud scheme that targets the elderly is not only morally reprehensible, it also undermines the financial systems we use and depend upon. I thank everyone who worked on this case. These two defendants are one step closer to facing much-deserved prison time.”

On May 18, Ozor pleaded guilty to conspiracy to commit mail and wire fraud. Abraham pleaded guilty to conspiracy to commit mail and wire fraud earlier today. Ozor is scheduled to be sentenced by U.S. District Judge Kathleen M. Williams on July 27. Judge Williams will sentence Abraham on Aug. 9. Both defendants face a maximum penalty of 20 years in prison.

The Consumer Protection Branch, USPIS, and HSI are investigating the case.

Senior Trial Attorney Phil Toomajian and Trial Attorneys Josh Rothman and Brianna Gardner of the Civil Division’s Consumer Protection Branch are prosecuting the case. The Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, Europol, and authorities from the U.K., Spain, and Portugal all provided critical assistance.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish, and other languages are available.

More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.

Source: United States Department of Justice

A former Van Zandt County, Texas, Sheriff’s Office Chief Deputy was sentenced today to 44 months in prison for violating an arrestee’s civil rights by using excessive force against him. 

According to court documents, Steven “Craig” Shelton, 62, previously pleaded guilty and admitted that on or about Sept. 21, 2021, while acting as the Chief Deputy and second-in-command of the Van Zandt County Sheriff’s Office, he repeatedly struck a handcuffed and compliant arrestee in the face. Shelton admitted that his acts, which occurred in front of several other officers in the Rolling Oaks area of Wills Point, Texas, caused bodily injury to the arrestee. Shelton admitted that he hit the arrestee because Shelton was frustrated, even though Shelton knew that there was no legitimate, law enforcement need to use force against the arrestee.

“This defendant abused his authority as a law enforcement officer by violently assaulting and injuring a handcuffed arrestee, violating the victim’s civil rights and the public’s trust,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold accountable those officers who abuse their authority, wherever such abuses occur.”

“It is an unacceptable abuse of authority for a police officer to strike a handcuffed arrestee who poses no threat,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “Public trust in law enforcement is eroded when officers do not follow the laws they are sworn to enforce. While recognizing that a vast majority of law enforcement officers protect the constitutional rights of individuals on a daily basis, the U.S. Attorney’s Office remains committed to protecting the public from officers who violate those rights.”

The FBI Dallas Field Office investigated the case. 

Assistant U.S. Attorney Tracey Batson for the Eastern District of Texas and Special Litigation Counsel Kathryn E. Gilbert and Trial Attorney Matthew Tannenbaum of the Civil Rights Division’s Criminal Section prosecuted the case.

Source: United States Department of Justice 2

VHS of Michigan Inc., doing business as, The Detroit Medical Center Inc. (DMC), Vanguard Health Systems Inc. (Vanguard), and Tenet Healthcare Corporation (Tenet), has agreed to pay $29,744,065 to the government to resolve allegations that they violated the False Claims Act by providing kickbacks to certain referring physicians.

DMC operates hospitals in and around Detroit, including Sinai Grace Hospital and Harper University Hospital. In October 2013, Tenet acquired Vanguard owned-and-operated hospitals and outpatient facilities, including DMC.

The settlement announced today resolves the government’s allegations that DMC, Vanguard, and Tenet caused the submission of false or fraudulent claims to Medicare. Specifically, the government alleged that from Jan. 1, 2014, through Dec. 31, 2017, Sinai Grace Hospital and Harper University Hospital provided the services of DMC-employed mid-level practitioners to 13 physicians at no cost or below fair market value in violation of the Anti-Kickback Statute (AKS). The government further alleged that the physicians were selected because of their large number of patient referrals to Sinai Grace Hospital and Harper University Hospital and that the purpose of these arrangements was to induce the physicians to refer additional Medicare patients to DMC facilities.

The AKS prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare and other federally funded programs. The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.

“The Justice Department will pursue improper arrangements that have the potential to compromise physicians’ medical judgment,” said Deputy Assistant Attorney General Michael D. Granston of the Justice Department’s Civil Division. “Physicians should evaluate where to send patients for medical services based on the quality of care the patients will receive, not the financial benefits that the physicians will reap.”

“This outcome makes clear that when doctors refer patients for care at hospitals, they must do so based on their own professional judgment and the medical needs of their patients, not personal financial benefit,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “Our office stands ready to scrutinize even the most complicated financial arrangements and to pursue justice wherever appropriate.”

“Paying and accepting kickbacks encourages providers to put personal financial gain before the needs of their patients,” said Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “As this case demonstrates, those who enter into such improper arrangements and put the safety of their patients at risk will be held accountable.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Dr. Jay Meythaler, a former employee of Wayne State University Medical School, which is affiliated with DMC. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. In this case, Dr. Meythaler will receive $5,205,211.37 as part of the settlement. The qui tam case is captioned U.S. ex rel. Meythaler v. Detroit Medical Center, Inc., et al., No. 5:15-cv-12333 (E.D. Mich.).

The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Michigan, with assistance from the HHS-OIG and the FBI.

The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. 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).

Trial Attorney Kristen Murphy of the Civil Division and Assistant U.S. Attorney Anthony Gentner for the Eastern District of Michigan handled the case.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

Source: United States Department of Justice News

The Justice Department today announced the filing of a civil action against James C. Justice III and 13 coal companies he owns or operates seeking to collect unpaid civil penalties previously assessed by the Department of the Interior (DOI) Office of Surface Mining Reclamation and Enforcement (OSMRE), as well as Abandoned Mine Land (AML) reclamation fee and audit debts.

“Our environmental laws serve to protect communities against adverse effects of industrial activities including surface coal mining operations,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Through this suit, the Justice Department seeks to deliver accountability for defendants’ repeated violations of the law and to recover the penalties they owe as a result of those violations.”

“Over a five-year period, defendants engaged in over 130 violations of federal law, thereby posing health and safety risks to the public and the environment,” said U.S. Attorney Christopher R. Kavanaugh for the Western District of Virginia. “After given notice, they then failed to remedy those violations and were ordered over 50 times to cease mining activities until their violations were abated. Today, the filing of this complaint continues the process of holding defendants accountable for jeopardizing the health and safety of the public and our environment.”

Pursuant to the Surface Mining Control and Reclamation Act (SMCRA), when a permittee violates SMCRA or their applicable permit, OSMRE issues a notice of violation (NOV) for non-imminently dangerous violations. The NOV sets a deadline for abating the violation. If the permittee fails to abate the violation by the NOV’s deadline, OSMRE issues a cessation order to halt mining until the violation is abated. If the permittee still fails to abate the violation within 30 days of the cessation order, OSMRE can take certain actions, including assessing civil penalties. If the violation creates an imminent danger to the health or safety of the public, OSMRE issues a second type of cessation order, called an Imminent Harm Cessation Order (IHCO), in lieu of an NOV, which requires cessation of active mining until the violation is abated. Separately, a director, officer or agent of a corporate permittee can be subject to individual civil penalties for willfully and knowingly authorizing, ordering or carrying out a permit violation or failure to comply with certain OSMRE orders.

From 2018 to 2022, OSMRE cited the defendants for over 130 violations and issued the companies over 50 cessation orders. The underlying violations pose health and safety risks or threaten environmental harm. In addition, defendants failed to pay required AML fees, which fund the reclamation of coal mining sites abandoned or left in an inadequate reclamation status. According to today’s filing, the total amount of the penalties and AML fees, plus interest, penalties and administrative expenses, owed by the defendants is approximately $7.6 million.  

Assistant U.S. Attorney Krista Consiglio Frith for the Western District of Virginia and Trial Attorneys Sally J. Sullivan and Clare Boronow of the Environment and Natural Resources Division are handling this matter.