Author: MIL-OSI Publisher

Source: United States Department of Justice

Sixteen separate cardiology practices and associated physicians, located across 12 states, have agreed to pay amounts totaling $17,761,564 to resolve allegations that they each violated the False Claims Act by overbilling Medicare for diagnostic radiopharmaceuticals.

Diagnostic radiopharmaceuticals are radioisotopes bound to biological molecules that target specific organs, tissues or cells within the human body and are used to diagnose and, in some cases, treat certain cancers and diseases. In 13 states and the District of Columbia, Medicare Part B reimburses healthcare providers for diagnostic radiopharmaceuticals based on the provider’s acquisition cost. In those jurisdictions, Medicare’s contractors have published guidance explaining the reimbursement methodology and providers’ obligation to accurately report their invoice costs for diagnostic radiopharmaceuticals. The government alleged that the settling cardiology practices regularly reported inflated acquisition costs to Medicare for these drugs. In each of the settlements, the conduct occurred for at least a year, and in some instances, the conduct extended over a period of more than 10 years.

“The financial stability of federal healthcare programs depends upon providers complying with applicable billing rules,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We are committed to ensuring that Medicare funds are expended appropriately and to pursuing those who knowingly fail to do so.”

The settling medical practices and associated physicians have agreed to pay the following amounts:

• Western Kentucky Heart & Lung Associates PSC and Mohammed Kazimuddin ($6,750,000)
• Heart Clinic of Paris P.A. and Arjumand Hashmi ($2,600,000)
• Scranton Cardiovascular Physician Services LLC ($2,369,111)
• Shannon Clinic ($996,856)
• Edward W. Leahey M.D. Professional Association and Edward Leahey ($894,679)
• Metropolitan Cardiovascular Consultants LLC and Ayim Djamson ($846,888)
• Cardiology Center of New Jersey LLC, Mario Criscito, Frank Iacovone, and Sameer Kaul ($740,000)
• Clovis Cardiology Associates LLC and Mahamadu Fuseini ($600,000)
• Family Medical Specialty Clinic PLLC, Melecio Abordo, and June Abadilla ($409,594)
• James R. Higgins M.D. Inc. and James Higgins ($395,537)
• TrustCare Health LLC ($279,407)
• Taj Medical Inc. ($240,000)
• White River Diagnostic Clinic PLC, Margaret Kuykendall, and Seth Barnes ($234,490)
• Veinguard Heart & Vascular Center P.C. and Fareeha Khan ($195,000)
• Boulder Medical Center PC ($160,000)
• Wellspring Cardiac Care P.A. ($50,000).

“Practices and providers who overcharge the government and fail to return overpayments compromise our healthcare programs,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “When people see the wrong and report it, we have the tool we need to put a stop to this type of irresponsible conduct. So, I applaud the whistleblowers who came forward in this case.”

“These practitioners overbilled the Medicare program by grossly exaggerating the acquisition costs of drugs used in diagnostic imaging of the heart,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “This office is committed to protecting our federal health care programs, and we will hold accountable anyone who seeks to exploit them.”

“Medicare providers are required to be honest and accurate in the costs they report for reimbursement,” said Special Agent in Charge Maureen Dixon of the Department of Health and Human Services Office of the Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to investigate alleged false claims act violations and ensure the integrity of the Medicare program. ”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by relators Jasjit Walia and Preet Randhawa in the District of Columbia and the Western District of Kentucky. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The whistleblowers will receive a total of more than $2.7 million from the settlements announced today.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the District of Columbia and Western District of Kentucky, with assistance from the HHS Office of Counsel to the Inspector General and Office of Investigations.

The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare 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 HHS at 800-HHS-TIPS (800-447-8477).

Trial Attorney James Nealon of the Justice Department’s Civil Division and Assistant U.S. Attorneys Ben Schecter, Matt Weyand, John Truong and Stephen DeGenaro for the District of Columbia handled the matter.

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

View the Heart Clinic of Paris settlement agreement here.

View the Leahey settlement agreement here.

View the Scranton settlement agreement here.

View the Metropolitan settlement agreement here.

View the Shannon Clinic settlement agreement here.

View the Family Medical Specialty Clinic settlement agreement here.

View the Taj Medical settlement agreement here.

View the TrustCare settlement agreement here.

View the Veinguard settlement agreement here.

View the Wellspring settlement agreement here.

View the White River settlement agreement here.

View the WKHL settlement agreement here.

View the Boulder Medical Center settlement agreement here.

View the CCNJ settlement agreement here.

View the Clovis settlement agreement here.

View the Higgins settlement agreement here.

Source: United States Department of Justice Criminal Division

Hashem Younis Hashem Hnaihen, 44, of Orlando, pleaded guilty today to four counts of threatening to use explosives and one count of destruction of an energy facility.

“With this plea, we are holding this defendant accountable for his threats to carry out hate-fueled mass violence in our country, motivated in part by his desire to ‘warn’ businesses because of their perceived support of Israel,” said Attorney General Merrick B. Garland. “The Justice Department will fiercely protect the right of every person to peacefully express their opinions, beliefs, and ideas, but we have no tolerance for acts and threats of hate-fueled violence that create lasting fear.”

“Today, the defendant is admitting he attacked a solar power facility, damaged a number of Florida businesses, and left a series of threatening messages about perceived support for Israel,” said Director Christopher Wray of the FBI. “Violence, destruction of property, and threats are simply unacceptable. The FBI will work with our partners to pursue and hold accountable those who commit illegal and destructive acts and cause our citizens to fear for their safety and livelihoods.”

According to court documents, beginning around June, Hnaihen targeted and attacked businesses in the Orlando area for their perceived support for Israel. Wearing a mask, under the cover of night, Hnaihen smashed the glass front doors of businesses and left behind “Warning Letters.”

In his letters, which were addressed to the U.S. government, Hnaihen laid out a series of political demands, culminating in a threat to “destroy or explode everything here in whole America. Especially the companies and factories that support the racist state of Israel.”

Hnaihen’s attacks escalated. At the end of June, as law enforcement worked to identify the masked attacker, Hnaihen broke into a solar power generation facility in Wedgefield, Florida, and spent hours systematically destroying solar panel arrays. He smashed panels, cut wires, and targeted critical electronic equipment. Hnaihen left behind two more copies of his threatening demand letter. Hnaihen’s attacks caused nearly $500,000 in damage.

Following a multiagency effort, law enforcement identified Hnaihen and arrested him on July 11, shortly after another “warning letter” threatening to “destroy or explode everything” was discovered at an industrial propane gas distribution depot in Orlando.

Hnaihen faces a maximum penalty of 10 years in prison for each threat offense and a maximum penalty of 20 years in prison for the destruction of an energy facility offense. Hnaihen has also agreed to make full restitution to the victims of the offenses. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI is investigating the case.

Assistant U.S. Attorney Richard Varadan for the Middle District of Florida and Trial Attorneys Ryan White and George Kraehe of the National Security Division’s Counterterrorism Section are prosecuting the case.

Source: United States Department of Justice Criminal Division

The Justice Department, the Department of the Interior (DOI), the State of Arizona and the Hopi Tribe today announced the filing of a “friendly condemnation” to effect the historic transfer of more than 20,000 acres of land from Arizona to the United States to be held in trust for the Hopi Tribe. Upon the deposit by the Hopi Tribe of $3.9 million, which serves as an estimate of just compensation for the benefit of the State of Arizona, into the Registry of the U.S. District Court for the District of Arizona, these lands will be owned by the United States and then immediately placed into trust for the Hopi Tribe. The lands being transferred are interspersed with Hopi-owned lands and have long been leased to the Hopi Tribe for ranching purposes.

This is the first of an anticipated series of condemnation actions to ultimately transfer approximately 110,000 acres from Arizona to the United States in trust for the Hopi Tribe. As with subsequent actions, today’s condemnation is filed with the concurrence of Arizona and authorized by the Navajo-Hopi Land Dispute Settlement Act of 1996, which ratified a 1995 resolution to a long-running land dispute in northeastern Arizona between the Hopi Tribe, the Navajo Tribe and the United States. When the title is transferred to the United States, DOI will take the lands into trust for the Hopi Tribe.

“Today’s filing starts the process of eliminating the interspersed ownership that characterizes much of the lands the Hopi Tribe uses for ranching in northeast Arizona, as was envisioned by the Settlement Act of 1996,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “Arizona will receive just compensation for the land, and the Hopi Tribe will no longer have to deal with checkerboarded ownership, which will help improve its use for ranching and other agriculture activities.”

“Today’s filing could initiate historic transfer of more than 20,000 acres back into Hopi Tribe ownership, a first step in the process to transfer an overall 110,000 acres into trust for the Tribes,” said Solicitor Bob Anderson of the Department of the Interior. “All parties stand to benefit, as the State of Arizona will receive just compensation and the Hopi Tribe will take on cohesive ownership across lands that hold sacred and economic significance and will support ranching and agricultural activities of their communities.”

“After nearly three decades of the Hopi fighting for their rights, I’m proud to enter into this historic agreement,” said Arizona Governor Katie Hobbs. “Every Arizonan should have an opportunity to thrive and a space to call home, and this agreement takes us one step closer to making those Arizona values a reality. While politicians of the past refused to hear the voices of tribal communities in our state, I’m so glad to work side-by-side with them as we build a state that gives every family opportunity. I look forward to continued partnership with Chairman Nuvangyaoma and the 22 tribal governments across our state.”

“Today is not only a historic day, it is also a day of celebration for the Hopi Tribe. The 1996 Hopi-Navajo Land Settlement Act is being fulfilled; the Hopi Tribe signed the settlement with the United States 30 years ago,” said Chairman Timothy L. Nuvangyaoma of the Hopi Tribe. “I am grateful to everyone who worked on making this a reality; I want to acknowledge the hard-working staff at the Governor’s office, the Arizona State Land Commission, the Department of the Interior and the Department of Justice. A special thank you to Governor Hobbs, Secretary Haaland and Commissioner Sahid for their leadership, collaboration and dedication to this effort. Within Hopi, it is our time of the Soyal’ang ceremony — the start of the New Year and the revitalization of life. It is fitting that this historic moment coincides with such an important time.”

The acquisition includes all appurtenant water and mineral rights owned by Arizona. However, it is subject to, and will not affect, existing easements and rights of way for public highways and utilities and similar encumbrances.

Attorneys from ENRD’s Land Acquisition Section are handling the matter.

Source: United States Department of Justice Criminal Division

Note: View the indictment here. 

A six-count indictment was unsealed today in Los Angeles charging two California men with defrauding investors of more than $22 million in cryptocurrency through a series of digital asset project “rug pulls,” a type of fraud scheme in which the creator of a nonfungible token (NFT) or other digital asset project solicits funds from investors for the project and then abruptly abandons the project and fraudulently retains investors’ funds. Both men were arrested yesterday by Homeland Security Investigations (HSI) in Los Angeles.

According to court documents, from May 2021 to May 2024, Gabriel Hay, 23, of Beverly Hills, and Gavin Mayo, 23, of Thousand Oaks, sponsored several NFT and other digital asset projects and undertook promotional activities in support of those projects. Hay and Mayo allegedly made or caused others to make materially false and misleading statements regarding the digital asset projects being launched and provided false and misleading project “roadmaps” detailing plans for the NFTs or other digital asset projects after their launch that the sponsors never intended to fulfill. For example, the indictment alleges that in promoting the Vault of Gems NFT project, Hay and Mayo falsely claimed that the project would be the “first NFT project to be pegged to a hard asset.” However, instead of pursuing the Vault of Gems project or others as they had represented they would, Hay and Mayo allegedly abandoned the projects after collecting millions in funds from investors.

“Gabriel Hay and Gavin Mayo allegedly defrauded investors in digital asset projects of tens of millions of dollars and threatened an individual who attempted to expose their roles in these fraudulent schemes,” said Principal Deputy Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Fraudsters take advantage of new technologies and financial products to steal investors’ hard-earned money. The department is committed to protecting investors and will continue to work with our law enforcement partners to root out fraud involving cryptocurrency and other digital assets and bring offenders to justice.”

“For three years, Hay and Mayo apparently lied to their investors in order to defraud them out of millions of dollars,” said HSI Executive Associate Director Katrina W. Berger. “Such technological fraud schemes cost investors millions of dollars every year. Just because such crimes aren’t violent does not mean they are victimless. HSI will continue to investigate, disrupt, and dismantle such cryptocurrency fraud networks.”

“Whenever a new investment trend occurs, scammers are sure to follow,” said U.S. Attorney Martin Estrada for the Central District of California. “My office and our law enforcement partners will continue our efforts to protect consumers and punish wrongdoers involved in crypto fraud.”

Hay, Mayo, and others allegedly used these tactics with a variety of digital asset projects, including Vault of Gems, Faceless, Sinful Souls, Clout Coin, Dirty Dogs, Uncovered, MoonPortal, Squiggles, and Roost Coin. Hay and Mayo also allegedly used a variety of means to conceal their involvement in the fraudulent projects by falsely identifying other individuals or causing other individuals to be falsely identified as owners of the projects. When one project manager on the Faceless NFT project exposed Hay and Mayo as being behind that project, Hay and Mayo allegedly embarked on a harassment campaign against the project manager, sending or causing the sending of messages to the project manager and his parents for the purpose of intimidating him and his family and causing them great emotional distress.

Hay and Mayo are each charged with one count of conspiracy to commit wire fraud, two counts of wire fraud, and one count of stalking. If convicted, they each face a maximum penalty of 20 years in prison on each of the conspiracy and wire fraud counts and a maximum penalty of five years on the stalking count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

HSI Baltimore is investigating the case.

Trial Attorneys Tian Huang and Tamara Livshiz of the Criminal Division’s Fraud Section, both members of the National Cryptocurrency Enforcement Team (NCET), and Assistant U.S. Attorney Maxwell Coll for the Central District of California are prosecuting the case.

The NCET was established to combat the growing illicit use of cryptocurrencies and digital assets. Within the Criminal Division’s Computer Crime and Intellectual Property Section, the NCET conducts and supports investigations into individuals and entities that are enabling the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers. The NCET also works to set strategic priorities regarding digital asset technologies, identify areas for increased investigative and prosecutorial focus, and lead the department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.

If you believe that you are a victim of any of the scams listed above or other scams involving the defendants, please email rugpullvictims@hsi.dhs.gov.

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

Remarks as Delivered

Thanks, Nat.

I am very grateful to be here and have the opportunity to talk to all of our federal, state, and local law enforcement here.

All of you are the partners that make everything work. You represent people who take risks every single day to keep the people of Oregon safe. I can’t thank you enough, and I very much look forward to hearing your perspectives and ideas for me to take back.

I am also grateful to have the chance to recognize the extraordinary work of the U.S. Attorney’s Office for the District of Oregon.

For people of this state, this office is the face of the Justice Department. The attorneys and staff here understand that responsibility. And like all of our partners gathered around this table, you do outstanding work on behalf of those you serve.

Three and a half years ago, the Justice Department launched an ambitious strategy to fight the sharp spike in violent crime that took place during the pandemic.

We focused our efforts on the most powerful tools we have, which are reflected right here: our partnerships with federal, state, Tribal and local law enforcement.

We fortified those partnerships with substantial funding from our grantmaking components to help police departments hire more officers, to support our law enforcement task forces, and to invest resources in initiatives aimed at preventing and disrupting violence before it occurs.

And we brought to bear our unique prosecutorial authorities and new technologies that enable us to zero in on those individuals and gangs that are responsible for the most violence.

Today, we know that work is starting to pay off.

Data from the Major Cities Chiefs Association shows a nearly 8% drop in violent crime here in Portland between 2022 and 2023. And recent data shows an additional 4% decline in violent crime in Portland in the first nine months of this year compared to the same time period last year.

But, of course, there is no acceptable level of violent crime.

That’s why the Justice Department continues to work with our partners here to fight violent crime, disrupt illegal drug and firearms trafficking, and keep people safe.

In May, working with the FBI and the Portland Police Bureau, this U.S. Attorney’s Office secured a 14-year sentence for a leader of Portland’s 18th Street Gang. The gang leader conspired to traffic large quantities of fentanyl, methamphetamine, and cocaine into the Portland area for redistribution and sale.

In August, working with the Westside Interagency Narcotics Team and the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) program, this office obtained a sentence of more than 10 years for a man who sold deadly Oxycodone pills to a 20-year-old woman who died from acute fentanyl poisoning.

In September, working with the FBI and the Medford Police Department, this office secured sentences of three men for distributing counterfeit, fentanyl-laced pills that resulted in the death of a teenage girl.

In October, working with DEA, FBI, Department of Homeland Security, IRS, and the Oregon State Police, and other state and local law enforcement, this office obtained a 57-month sentence for a chief money launderer for a drug trafficking organization operating in the Pacific Northwest and California.

The defendant laundered more than $4.6 million in drug proceeds and used laundered funds to purchase eight properties. Those properties were forfeited to the government and will ultimately be sold, with proceeds going to support crime victims and law enforcement.

That same month, in partnership with the FBI, the Klamath Falls Police Department, the Oregon State Police, and half a dozen other law enforcement partners, this office obtained the conviction of a man who brutally victimized two women. The man kidnapped and sexually assaulted both women and held one of them in a cell that he constructed for the purpose in his garage.

Thanks to the bravery and collaboration of our law enforcement partners, that man is being held accountable for his crimes.

Just a couple of weeks ago, this office secured a five-year sentence for a man who illegally possessed and manufactured more than 100 semi-automatic firearms and silencers.

During a search of his residence, investigators found methamphetamine, dozens of weapons, firearm manufacturing tools, and a 3D printer with a partially printed part for an AR15. When the defendant was arrested, he was carrying a semiautomatic pistol without an identifiable serial number.

That investigation and successful prosecution reflected the joint efforts of this office, ATF, and the Lane County Sheriff’s Office.

In addition to using our investigative and prosecutorial capabilities, we are also committed to using our grantmaking capabilities to invest in public safety.

So far this year, the Justice Department has awarded more than $64 million in grants to Oregon.

These funds will help law enforcement agencies in Oregon to hire more officers.

And they will help agencies and community partners prevent and combat violent crime and drug trafficking and improve services for survivors of domestic and dating violence, sexual assault, stalking, and other crimes.

The Department of Justice remains committed to providing our law enforcement and community partners with the resources they need to protect their communities.

The examples I have just shared are just a snapshot of the extraordinary work that this U.S. Attorney’s Office is doing every day to protect people in Oregon and to fulfill the Justice Department’s mission to ensure the rule of law, to keep our country safe, and to protect civil rights.

I am extremely proud of the public servants who make up this office and of the extraordinary leader beside me, Natalie Wight. And I am equally proud of the relationships they have developed with the people around this table.

Your jobs are not easy. They are dangerous, but they are essential. Thanks to you for the many sacrifices you make to keep of this state safe.

I’m looking forward now to beginning our meeting.