Month: July 2024

Source: United States Department of Justice Criminal Division

A pharmacy owner and an associate were sentenced for submitting false and fraudulent claims to Medicare and California Medicaid (Medi-Cal) for prescription drugs and engaging in a black market prescription drug diversion conspiracy.

Irina Sadovsky, 54, of Calabasas, California, a pharmacist who owned Five Star RX, doing business as Five Star Pharmacy and Ultimate Pharmacy Inc., was sentenced on July 8 to two years and three months in prison. Shahriar “Michael” Kalantari, 56, of Los Angeles, was sentenced yesterday to one year and 11 months in prison.

According to court documents and evidence presented at trial, from September 2016 to April 2017, Sadovsky conspired to submit fraudulent claims to Medicare and Medi-Cal for prescription drugs that were never dispensed to beneficiaries and instead were provided to her co-conspirators to sell on the black market. Sadovsky’s co-conspirators created fraudulent prescriptions, and Sadovsky recommended the combinations of prescription drugs to be written and checked the eligibility of the patients for reimbursement.

Kalantari, who is not a medical professional, conspired with Sadovsky to defraud Medicare and Medi-Cal by generating false prescriptions. Kalantari’s co-conspirators obtained beneficiary information, which Kalantari then used to write or cause to be written false and fraudulent prescriptions for expensive prescription medication, including drugs used to treat HIV. These medications were not dispensed to patients, but rather were provided to a co-conspirator to sell on the black market.  

A jury convicted Sadovsky in October 2022 of one count of conspiracy to commit health care fraud and one count of conspiracy to engage in the unlicensed wholesale distribution of prescription drugs. A jury convicted Kalantari in November 2022 of one count of conspiracy to commit health care fraud, three counts of health care fraud, and one count of conspiracy to engage in the unlicensed wholesale distribution of prescription drugs.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office; and Special Agent in Charge Timothy DeFrancesca of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office made the announcement.

The FBI and HHS-OIG investigated the cases, with valuable assistance from the California Department of Justice.

Counsel Alexis Gregorian and Trial Attorney Matthew Belz of the Criminal Division’s Fraud Section handled the sentencing hearings. Counsel Alexis Gregorian, Assistant U.S. Attorney Alexandra Michael for the Central District of California, formerly of the Criminal Division’s Fraud Section, and Justin Givens, formerly of the Criminal Division’s Fraud Section, tried the cases.

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, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, 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 Criminal Division

A Connecticut man pleaded guilty today to evading taxes on income he earned as a commercial fisherman.

According to court documents and statements made in court, Brian Kobus, of Durham, Connecticut, worked as a commercial fisherman and deckhand for fishing companies in Massachusetts. After each fishing trip, the companies paid him by check. Despite receiving over $1.4 million in fishing income between 2011 through 2013, and 2017 through 2021, Kobus did not file federal income tax returns or pay the taxes that he owed. To conceal the source and disposition of his income from the IRS, Kobus regularly cashed his paychecks from the fishing companies and used the cash to fund his lifestyle. In total, he caused a tax loss to the IRS of approximately $377,839.90.

Korbus is scheduled to be sentenced on Oct. 16 and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorney Matthew L. Cofer of the Justice Department’s Tax Division and Assistant U.S. Attorney Victor Wild for the District of Massachusetts are prosecuting the case.

Source: United States Department of Justice Criminal Division

A federal grand jury returned an indictment yesterday charging 15 Memphis, Tennessee, residents for their involvement in an organized drug trafficking scheme. 

According to court documents, between November 2023 and June 2024, the defendants allegedly worked together, and with others, to distribute fentanyl, methamphetamine, and marijuana throughout the Memphis area. During the investigation, agents recovered two stolen vehicles and seized 29 firearms, five machinegun conversion devices (known as “switches”), over $4,000 in cash, approximately 938 grams of methamphetamine, approximately 541 grams of fentanyl, approximately 200 grams of psilocybin mushrooms, and 26.43 pounds of marijuana.

The indictment charges the following 15 defendants:

Defendant	Age	Charges
Brian Lackland	34	Conspiracy to distribute fentanyl, over 500 grams of methamphetamine, and marijuana; possession of firearms during and in relation to drug trafficking crimes; and being a felon in possession of firearms
Paul Nelson	31	Conspiracy to distribute fentanyl and over 500 grams of methamphetamine; and being a felon in possession of firearms
Ebony Cobb	41	Conspiracy to distribute fentanyl and over 500 grams of methamphetamine
Jerrod Cox	31	Conspiracy to distribute fentanyl
Darius Moore	38	Conspiracy to distribute fentanyl
Edgar Smith	38	Conspiracy to distribute fentanyl
Mervin Anderson	38	Conspiracy to distribute fentanyl
Courtney Davis	28	Conspiracy to distribute fentanyl
Timothy Achols	36	Conspiracy to distribute fentanyl
Jehu Cruz	23	Conspiracy to distribute fentanyl; and possession of firearms during and in relation to drug trafficking crimes
Mohamed Samba	24	Conspiracy to distribute marijuana; and possession of firearms during and in relation to drug trafficking crimes
Prentiss Broadway	33	Possession with intent to distribute fentanyl
Braxton Beck	32	Federal firearms offenses and being a felon in possession of firearms
Darion Allen	28	Federal firearms offenses and being a felon in possession of firearms
Delifarroe Goins	29	Federal firearms offenses and being a felon in possession of firearms

If convicted, the defendants charged with conspiracy to distribute marijuana face a maximum penalty of five years in prison and defendants charged with distributing methamphetamine face a maximum penalty of 10 years in prison. The defendants charged with conspiracy to distribute fentanyl face a mandatory minimum of five years or 10 years in prison, depending on the amount distributed, and a maximum penalty of life in prison. The defendants charged with possession of firearms during and in relation to drug trafficking crimes face a mandatory minimum of five years in prison and a maximum penalty of life in prison.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and U.S. Attorney Kevin G. Ritz for the Western District of Tennessee made the announcement.

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); FBI; U.S. Postal Inspection Service (USPIS); Multi-Agency Gang Unit; Memphis Police Department; Bartlett Police Department; and Shelby County Sheriff’s Office investigated the case.

Trial Attorneys Amanda Kotula and Aaron Henricks of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Neal Oldham for the Western District of Tennessee are prosecuting the case.

This case is brought as part of the Criminal Division’s Memphis Violent Crime Initiative, conducted in partnership with the U.S. Attorney’s Office for the Western District of Tennessee and local, state, and federal law enforcement. The joint effort addresses violent crime by employing, where appropriate, federal laws to prosecute gang members and associates in Memphis. As part of the initiative, the Criminal Division has dedicated attorneys and other resources to prosecuting violent offenders and assisting intervention, prevention, and reentry efforts to address the root causes of violent crime. 

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

Source: United States Department of Justice 2

A federal grand jury returned an indictment yesterday charging 15 Memphis, Tennessee, residents for their involvement in an organized drug trafficking scheme. 

According to court documents, between November 2023 and June 2024, the defendants allegedly worked together, and with others, to distribute fentanyl, methamphetamine, and marijuana throughout the Memphis area. During the investigation, agents recovered two stolen vehicles and seized 29 firearms, five machinegun conversion devices (known as “switches”), over $4,000 in cash, approximately 938 grams of methamphetamine, approximately 541 grams of fentanyl, approximately 200 grams of psilocybin mushrooms, and 26.43 pounds of marijuana.

The indictment charges the following 15 defendants:

Defendant	Age	Charges
Brian Lackland	34	Conspiracy to distribute fentanyl, over 500 grams of methamphetamine, and marijuana; possession of firearms during and in relation to drug trafficking crimes; and being a felon in possession of firearms
Paul Nelson	31	Conspiracy to distribute fentanyl and over 500 grams of methamphetamine; and being a felon in possession of firearms
Ebony Cobb	41	Conspiracy to distribute fentanyl and over 500 grams of methamphetamine
Jerrod Cox	31	Conspiracy to distribute fentanyl
Darius Moore	38	Conspiracy to distribute fentanyl
Edgar Smith	38	Conspiracy to distribute fentanyl
Mervin Anderson	38	Conspiracy to distribute fentanyl
Courtney Davis	28	Conspiracy to distribute fentanyl
Timothy Achols	36	Conspiracy to distribute fentanyl
Jehu Cruz	23	Conspiracy to distribute fentanyl; and possession of firearms during and in relation to drug trafficking crimes
Mohamed Samba	24	Conspiracy to distribute marijuana; and possession of firearms during and in relation to drug trafficking crimes
Prentiss Broadway	33	Possession with intent to distribute fentanyl
Braxton Beck	32	Federal firearms offenses and being a felon in possession of firearms
Darion Allen	28	Federal firearms offenses and being a felon in possession of firearms
Delifarroe Goins	29	Federal firearms offenses and being a felon in possession of firearms

If convicted, the defendants charged with conspiracy to distribute marijuana face a maximum penalty of five years in prison and defendants charged with distributing methamphetamine face a maximum penalty of 10 years in prison. The defendants charged with conspiracy to distribute fentanyl face a mandatory minimum of five years or 10 years in prison, depending on the amount distributed, and a maximum penalty of life in prison. The defendants charged with possession of firearms during and in relation to drug trafficking crimes face a mandatory minimum of five years in prison and a maximum penalty of life in prison.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and U.S. Attorney Kevin G. Ritz for the Western District of Tennessee made the announcement.

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); FBI; U.S. Postal Inspection Service (USPIS); Multi-Agency Gang Unit; Memphis Police Department; Bartlett Police Department; and Shelby County Sheriff’s Office investigated the case.

Trial Attorneys Amanda Kotula and Aaron Henricks of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Neal Oldham for the Western District of Tennessee are prosecuting the case.

This case is brought as part of the Criminal Division’s Memphis Violent Crime Initiative, conducted in partnership with the U.S. Attorney’s Office for the Western District of Tennessee and local, state, and federal law enforcement. The joint effort addresses violent crime by employing, where appropriate, federal laws to prosecute gang members and associates in Memphis. As part of the initiative, the Criminal Division has dedicated attorneys and other resources to prosecuting violent offenders and assisting intervention, prevention, and reentry efforts to address the root causes of violent crime. 

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