Month: November 2024

Source: United States Department of Justice Criminal Division

The Justice Department announced today that it secured a settlement agreement to resolve its lawsuit alleging that Colorado violates Title II of the Americans with Disabilities Act (ADA) and the Supreme Court’s decision in Olmstead v. L.C. by unnecessarily segregating adults with physical disabilities, including older adults, in nursing facilities.

The ADA and the Olmstead decision require state and local governments to administer their services to people with disabilities in the most integrated setting appropriate to their needs. Today’s agreement gives thousands of Coloradans with physical disabilities the opportunity to move out of nursing facilities into the community — or avoid unnecessary nursing facility admission altogether — and receive the services they need at home. Community-based services that can help people live at home include assistance with bathing, dressing, managing medications and preparing meals.

“People with disabilities should not have to give up their lives in the community and be isolated in nursing facilities to get the services they need,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement agreement sends the message that people with disabilities deserve the same kinds of lives as others, and makes clear that our family members, friends, and neighbors with disabilities add value to our lives and strengthen our communities when they can receive the services they need right inside their own home.”

“Today’s resolution will give thousands of Coloradans with physical disabilities the information, resources, and opportunity to live in communities rather than being needlessly isolated. The agreement will also save taxpayer money by reducing state-funded institutionalization,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “We commend our Civil Rights Division colleagues for their dedication and focus on this important issue, and we acknowledge the commitments made by the State of Colorado in this agreement.”   

The department sued Colorado in September 2023, following a multi-year investigation. The lawsuit alleged that the state failed to provide adults with physical disabilities with the services they need to live at home or avoid moving into a nursing facility. In Colorado, most nursing facility residents and their families are unaware that they can receive services like nursing, personal care and housing assistance in the community. As a result, many move into, or remain in, nursing facilities even though they would prefer to live at home.

To increase community integration for adults with physical disabilities, the state has made significant commitments in this agreement to:

• Help thousands of nursing facility residents move back to the community;
• Identify people at risk of unnecessary nursing facility admission to help them stay in their homes with the services they need;
• Provide people with the information they need to make an informed choice about whether to live in a nursing facility or receive the services they need at home;
• Connect people more quickly to Medicaid long-term care services in the community;
• Increase opportunities for people with disabilities to hire and supervise their own caregivers;
• Support family caregivers;
• Facilitate prompt transitions to the community for interested nursing facility residents, by reducing administrative bottlenecks and problem-solving common transition barriers; and
• Expand and improve services that help people find and keep affordable, accessible housing in the community.

The parties have agreed that the federal district court will retain jurisdiction to enforce the agreement and that an independent monitor will evaluate the state’s compliance.

Additional information about the Civil Rights Division is available at www.justice.gov/crt.

Members of the public can report possible civil right violations at www.civilrights.justice.gov.

Source: United States Department of Justice Criminal Division

The Justice Department announced today that Medisca Inc. (Medisca), has agreed to pay $21.75 million to resolve allegations concerning the establishment of false and inflated Average Wholesale Prices (AWPs) for two ingredients used in compound prescriptions. Medisca’s pricing scheme allegedly caused pharmacies that purchased those ingredients to submit false prescription claims to the Defense Health Agency, which administers the TRICARE Program for the Department of Defense and the Department of Labor’s Office of Workers’ Compensation Programs (federal health care programs).

“We will not tolerate fraudulent pricing schemes targeting health care programs that support veterans and other federal beneficiaries,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “As today’s settlement demonstrates, we will hold accountable not just those who submit false claims, but all who participate in schemes designed to defraud the American taxpayers.”

Compounding pharmacies purchase ingredients or chemicals from ingredient suppliers, such as Medisca, to prepare and fill compound prescriptions for patients who require a specially made prescription that is not generally available in the marketplace. Medisca knew that compound prescription reimbursement under federal health care programs was based in part on the AWPs it reported to various price listing agencies. The United States alleged that Medisca knowingly inflated the AWPs for resveratrol (NDC No. 38779-2863) and mometasone furoate (NDC No. 38779-2413) in order to increase the reimbursement that its pharmacy customers received from the federal healthcare programs for using those Medisca ingredients.

Medisca acquired resveratrol from manufacturers for approximately $0.37 per gram. It repackaged and sold resveratrol for under $2 per gram. Medisca reported an AWP for resveratrol at $777 per gram, creating a spread of over $775 for each gram of resveratrol used by a pharmacy customer in a compound prescription reimbursed by the federal healthcare programs. Medisca acquired mometasone furoate from manufacturers for under $8 per gram. It repackaged and sold that ingredient to compound pharmacies for over $1,000 per gram. Medisca reported an AWP for mometasone furoate at over $7,300 per gram, thereby creating a spread of approximately $6,300 for each gram of the ingredient used by a pharmacy customer in a compound prescription reimbursed by the federal healthcare programs.  

Medisca allegedly used the high AWPs it reported and the resulting profit potential it created for its customers as an inducement to its compound pharmacy customers to purchase those ingredients. Medisca’s alleged fraudulent pricing scheme enabled its pharmacy customers to bill federal healthcare programs inflated amounts – often thousands of dollars per prescription – for compound formulations containing those ingredients.

“The systems establishing federal reimbursements for compounded pharmaceuticals should not be viewed by companies as an opportunity to artificially inflate reimbursements from federal payors such as TRICARE,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “When companies seek to manipulate the system for their own gain, the Eastern District of Texas will hold them accountable.”

“When federal healthcare programs are defrauded it hurts all Americans,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “My office is committed to using the False Claims Act (FCA) to hold individuals and companies accountable for the impact their actions have on our critical programs. Taxpayers deserve honest pricing and assurances that the government is never overcharged.”

“This settlement sends a clear message about the unwavering commitment of the Defense Criminal Investigation Service (DCIS) to protect the integrity of TRICARE, the Department of Defense’s health care benefit program which serves our U.S. military, their family members, and military retirees,” said Acting Special Agent in Charge Ryan Settle of the Department of Defense – Office of Inspector General, DCIS Southwest Field Office. “Health care providers who use fraudulent means to seek financial gain at the expense of TRICARE and the taxpayer will be diligently investigated and held accountable.”

The settlement resolves claims brought under the whistleblower or qui tam provisions of the FCA by Doug McMakin against Medisca. Mr. McMakin is a pharmacist who owned and operated a compounding pharmacy that dispensed compounded prescriptions. Under the FCA, private parties may sue on behalf of the government for false claims for government funds and receive a share of any recovery. Mr. McMakin will receive $3,425,625 from the proceeds of the settlement. The lawsuit is captioned United States ex rel. McMakin v. Medisca Inc. (EDTX).  

The resolution of these matters was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorneys’ Offices for the Eastern District of Texas and the Western District of Texas, with investigative support from the DCIS, U.S. Postal Service Office of Inspector General (USPS OIG) and the Department of Labor.  

The investigation and resolution of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. 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).

Senior Trial Counsel Sanjay Bhambhani and Trial Attorney John Deck of the Civil Division, Assistant U.S. Attorney Mary Kruger for the Western District of Texas and Assistant U.S. Attorney James Gillingham for the Eastern District of Texas handled the matter, with investigative assistance from Special Agents Nicholas Koechig of DCIS and Timothy Jones of USPS OIG.

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

Settlement

Source: United States Department of Justice Criminal Division

A federal judge this week convicted a former Fairmount Heights, Maryland, police officer on one count of obstructing justice by writing a false police report.

U.S. District Court Judge Deborah Boardman for the District of Maryland found Martique Vanderpool guilty following a 3-day bench trial that ended on Oct. 24. The judge found that former officer Vanderpool falsified a police report with intent to impede an investigation into an incident on Sept. 6-7, 2019, during which he and another officer arrested a 19-year-old woman and took her in handcuffs to the locked and otherwise-empty Fairmount Heights police station, where the officers uncuffed her and Vanderpool told her to “make this right” before having sex with her while she was in custody.

“Martique Vanderpool obstructed justice to cover up his own serious police misconduct,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This former officer’s conduct is a betrayal both of the young woman who was in his care and of the entire law enforcement profession. With this verdict comes accountability for his crime.”

“When those sworn to uphold the law choose instead to violate it, it undermines the very foundation of our society,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “Martique Vanderpool abused his power and violated his oath as a police officer. He betrayed the community that put their trust in him and will now face the consequences of his actions.”

According to evidence at trial and findings of fact made by the judge, Vanderpool and his partner, former Officer Phillip Dupree arrested the young woman for speeding and learned that she was rushing to get to her young son, who had been injured in an accident. Upon learning that the young woman had only a learner’s permit, Dupree asked her to get out of the car, at which point the young woman had a panic attack and Dupree took her to the ground and handcuffed her. In “an apparent state of mental distress,” the handcuffed young woman ran into the street and then banged her head on the side of the car she had been driving.

The officers had the car towed from the scene and transported the young woman to the Fairmount Heights police station, even though the station had no holding cell or booking facilities and officers were not supposed to take prisoners there. The officers took the young woman inside, in handcuffs, and then removed the cuffs. Vanderpool told her “We gotta make this right,” and then had sex with her on a couch in the main room of the station. Afterward, the officers drove the young woman to a tow lot where the car, which was registered to someone else, was returned to her.

According to the judge’s findings, Vanderpool then falsified an incident report to create a misleading impression that the officers and the young woman never left the scene of the traffic stop and that the car was returned to the registered owner. The report purposely omitted that the officers took the young woman from the scene to the police station; that Vanderpool had sex with her; and that the officers caused the car to be towed and later coordinated the release of the car to her. The report also purposely misstated that the car was returned to the registered owner.

The judge, in finding that the false report was intended to interfere with an investigation that was within the jurisdiction of the FBI, noted that the young woman was a teenager, was slight of build, was in a state of panic, was forced to the ground by an officer, had her car towed, said that she needed to get to her son, was taken in handcuffs to the police station and was told to “make this right.”

A sentencing hearing is scheduled for Feb. 20, 2025. Vanderpool faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Vanderpool’s partner, Phillip Dupree, was recently convicted in an unrelated case of committing a federal criminal civil rights violation by using unreasonable force during an unrelated arrest.

The FBI Baltimore Field Office investigated the case.

Deputy Chief Bobbi Bernstein and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division prosecuted the case, with assistance from Trial Attorney Betsy Hutson of the Justice Department’s Civil Rights Division. 

Source: United States Department of Justice Criminal Division

The Justice Department announced today that it plans to monitor compliance with federal voting rights laws in 86 jurisdictions in 27 states for the Nov. 5 general election.

The Justice Department enforces federal voting rights laws that protect the rights of all eligible citizens to access the ballot. The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities all across the country.

For the general election, the department will monitor for compliance with federal voting rights laws on Election Day in 86 jurisdictions, including:

• Bethel Census Area, Alaska;
• Dillingham Census Area, Alaska;
• Kusilvak Census Area, Alaska;
• North Slope Borough, Alaska;
• Northwest Arctic Borough, Alaska;
• Apache County, Arizona;
• Maricopa County, Arizona;
• Pima County, Arizona;
• Yuma County, Arizona;
• San Joaquin County, California;
• Broward County, Florida;
• Miami-Dade County, Florida;
• Orange County, Florida;
• Osceola County, Florida;
• Cobb County, Georgia;
• DeKalb County, Georgia;
• Fulton County, Georgia;
• Gwinnett County, Georgia;
• Macon-Bibb County, Georgia;
• Jefferson County, Kentucky;
• Kenton County, Kentucky;
• City of Everett, Massachusetts;
• City of Fitchburg, Massachusetts;
• City of Leominster, Massachusetts;
• City of Lowell, Massachusetts;
• City of Malden, Massachusetts;
• City of Methuen, Massachusetts;
• City of Quincy, Massachusetts;
• City of Salem, Massachusetts;
• Prince George’s County, Maryland;
• City of Ann Arbor, Michigan;
• City of Detroit, Michigan;
• City of Flint, Michigan;
• City of Grand Rapids, Michigan;
• City of Hamtramck, Michigan;
• City of Warren, Michigan;
• Hennepin County, Minnesota;
• City of Minneapolis, Minnesota;
• Ramsey County, Minnesota;
• Covington County, Mississippi;
• Scott County, Mississippi;
• Warren County, Mississippi;
• City of St. Louis, Missouri;
• Blaine County, Montana;
• Alamance County, North Carolina;
• Mecklenburg County, North Carolina;
• Wake County, North Carolina;
• Bergen County, New Jersey;
• Middlesex County, New Jersey;
• Union County, New Jersey;
• Bernalillo County, New Mexico;
• Cibola County, New Mexico;
• Clark County, Nevada;
• Queens, New York;
• Cuyahoga County, Ohio;
• Portage County, Ohio;
• Allegheny County, Pennsylvania;
• Luzerne County, Pennsylvania;
• Philadelphia County, Pennsylvania;
• City of Pawtucket, Rhode Island;
• City of Providence, Rhode Island;
• City of Woonsocket, Rhode Island;
• Charleston County, South Carolina;
• Bennett County, South Dakota;
• Jackson County, South Dakota;
• Minnehaha County, South Dakota;
• Oglala Lakota County, South Dakota;
• Atascosa County, Texas;
• Bexar County, Texas;
• Dallas County, Texas;
• Frio County, Texas;
• Harris County, Texas;
• Hays County, Texas;
• Palo Pinto County, Texas;
• Waller County, Texas;
• San Juan County, Utah;
• Hanover County, Virginia;
• Henrico County, Virginia;
• Loudoun County, Virginia;
• City of Manassas, Virginia;
• City of Manassas Park, Virginia;
• Prince William County, Virginia;
• Town of Lawrence (Rusk County), Wisconsin;
• City of Milwaukee, Wisconsin;
• Town of Thornapple, Wisconsin; and
• City of Wausau, Wisconsin.

The Justice Department’s Civil Rights Division will coordinate the effort. Monitors will include personnel from the Civil Rights Division, other department divisions, U.S. Attorney’s Offices and federal observers from the Office of Personnel Management. Throughout Election Day, division personnel will maintain contact with state and local election officials.

The Civil Rights Division’s Voting Section enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Uniformed and Overseas Citizens Absentee Voting Act and Civil Rights Acts. The division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA) to ensure that persons with disabilities have a full and equal opportunity to vote. The division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.

On Election Day, Civil Rights Division personnel will be available all day to receive questions and complaints from the public related to possible violations of federal voting rights laws. Reports may be made through the department’s website www.civilrights.justice.gov or by calling toll-free at 800-253-3931.

Individuals with questions or complaints related to the ADA may call the department’s toll-free ADA information hotline at 800-514-0301 or 833-610-1264 (TTY) or submit a complaint through a link on the department’s ADA website at www.ada.gov.

Complaints related to any disruptions at a polling place should always be reported to local election officials (including officials based in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. These complaints should also be reported to the department after local authorities have been contacted.

More information about voting and elections, including guidance documents and other resources, is available at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section.

Source: United States Department of Justice Criminal Division

Director Rachel Rossi of the Office for Access to Justice traveled to San Francisco to deliver the keynote address at the Pathways to Justice Conference, a statewide legal services conference held every three years. The engagement included meetings on access to justice issues and initiatives happening in Northern California.

Opening the visit, Director Rossi participated in a listening session hosted by the California Community Justice Workers Working Group, a group of legal aid and access to justice leaders aiming to leverage professional support from nonlawyers to support legal service providers in delivering legal assistance to underserved and marginalized communities. Director Rossi delivered brief opening remarks and then heard from working group members on its proposed recommendations for a community justice worker program in California. The presentation was followed by a discussion with legal aid leaders from across California.

Tuesday morning, Director Rossi delivered the keynote address for the Pathways to Justice Conference convened by the State Bar of California, the Legal Aid Association of California and the California Judicial Council. The conference convenes nonprofit legal service providers, private bar pro bono volunteers and staff from court departments and self-help centers from across the state to discuss access to justice topics. In her remarks, Director Rossi highlighted Office for Access to Justice initiatives and focused on the need to foster collaboration between state, local and federal access to justice stakeholders.

Following the keynote, Director Rossi met with leadership from the Legal Aid Association of California, a statewide membership organization of over 100 legal aid providers. In the meeting, Director Rossi listened to the most pressing issues facing California’s legal aid community and discussed support for efforts to increase interagency collaboration at the state level in the pursuit of access to justice.

That afternoon, Director Rossi attended a roundtable discussion with Bay Area public defense chiefs and leadership, including from San Francisco, Alameda, Santa Clara, Contra Costa, Sonoma, Solano and Marin County, California offices. Director Rossi shared information about Access to Justice Office resources including the Public Defense Resource Hub and the Legal Aid Interagency Roundtable federal funding digital resource. The discussion included the challenges confronting public defense professionals in Northern California such as lack of resources, caseload and workload challenges, recruitment and retention concerns and the unique resource needs for specialized and effective youth defense representation. The roundtable also touched on best practices and innovative public defense strategies spearheaded across bay area offices, including their advocacy and policy work, creative recruitment strategies and holistic representation models.

Director Rossi then met with Prisoner Legal Services to discuss their work providing civil legal assistance to individuals incarcerated locally. She highlighted the pilot program launched by the Office for Access to Justice in partnership with the Federal Bureau of Prisons, which similarly provides civil legal services to adults in federal custody, including through the first medical-legal partnership in a federal prison in the United States. They discussed future collaboration and sharing of best practices.

Director Rossi also met with the Federal Public Defender for the Northern District of California to discuss implementation of the Report and Recommendations Concerning Access to Counsel at the Federal Bureau of Prisons’ Pretrial Facilities, unique issues facing Criminal Justice Act panel attorneys, and other issues facing federal defenders in the district. Closing the trip, Director Rossi met with U.S. Attorney Ismail J. Ramsey for the Northern District of California.