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New Jersey Return Preparer Charged with Preparing False Tax Returns and Obstructing the IRS

Source: United States Department of Justice Criminal Division

An indictment was unsealed last week charging a New Jersey return preparer with preparing and filing 55 false income tax returns on behalf of clients and obstructing the IRS.

According to the indictment, from at least 2018 through 2023, Christopher Demba, of Hillsborough, owned and operated Demba & Associates CPA LLC, a return preparation business. Demba allegedly prepared returns for clients that claimed false deductions, credit carryforwards or fraudulently recategorized income to claim expenses that would otherwise be disallowed. The indictment further alleges that Demba obstructed the IRS by providing false working papers to IRS personnel in an attempt to justify some of the claims made on returns he prepared for clients. 

If convicted, Demba faces a maximum penalty of three years in prison for each count as well as 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 Karen E. Kelly of the Justice Department’s Tax Division made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys Mark McDonald and Alexis Hughes of the Tax Division are prosecuting the case.

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

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Owners of Florida Labor-Staffing Companies Sentenced for Tax and Immigration Fraud and Money Laundering

Source: United States Department of Justice Criminal Division

Two Ukrainian nationals who were extradited from the Kingdom of Thailand to the United States in September 2024 were sentenced today on charges related to labor-staffing companies they operated in Florida. Oleg Oliynyk and Oleksandr Yurchyk were each sentenced to 15 years in prison for conspiracy to defraud the United States and conspiracy to commit money laundering.

According to court documents, Oliynyk, Yurchyk and others owned and operated a series of labor-staffing companies in South Florida — including Paradise Choice LLC, Paradise Choice Cleaning LLC, Tropical City Services LLC and Tropical City Group LLC — from at least April 2008 and August 2021. Through these staffing companies, Oliynyk, Yurchyk and co-defendants Oleksandr Morgunov, Mykhaylo Chugay and Volodymyr Ogorodnychuk facilitated the employment of non-resident aliens in the hospitality industry who were not authorized to work in the United States and helped evade the assessment and collection of more than $25 million of federal income and employment taxes.

In addition to the term of imprisonment, U.S. District Court Judge Jose E. Martinez ordered Oliynyk and Yurchyk to each serve three years of supervised release, pay $10,863,233.05 in restitution to the United States and to forfeit $11 million.

Oliynyk and Yurchyk are the latest defendants sentenced as part of Operation RoomKey, a joint criminal investigation initiative led by the Tax Division, the U.S. Attorney’s Office for the Southern District of Florida, Homeland Security Investigations (HSI) and IRS Criminal Investigation (IRS-CI).

Co-defendant Chugay, was convicted at trial in June 2022, and was sentenced in August 2022 to more than 24 years in prison. Co-defendants Morgunov and Ogorodnychuk each pleaded guilty and were sentenced to 96 months in prison and 48 months in prison, respectively.

In March 2022, Mikus Berzins, former City of Key West Police Officer Igor Kasyanenko, Roman Riabov and Andrejs Kozlovs each pleaded guilty to their crimes in the operation of the labor staffing company, Phoenix ADB Services Inc. (Phoenix ADB), which, according to court records, facilitated the employment of aliens without work authorization.

In May 2022, the court sentenced Igor Kasyanenko and Riabov to 22 months and 18 months in prison, respectively, for their roles in the tax and immigration conspiracy. The court also sentenced Berzins and Kozlovs to 28 months and 12 months in prison, respectively, for knowingly hiring ten or more aliens who were not authorized to work in the United States. Later, in September 2023, Nataliya Vasylivna Kasyanenko, a former housekeeping manager at a large Key West hotel, was sentenced for participating in the tax and immigration conspiracy related to the operation of Phoenix ADB.

Batyr Myatiev, the owner and operator of two labor staffing companies, AmeriHos LLC and Golden Sands Management LLC, pleaded guilty in March 2023 and was sentenced in June 2023 to 32 months in prison. According to court records, Myatiev’s labor staffing companies caused a tax loss to the United States of more than $3.5 million and facilitated the employment of aliens without work authorization.

In July 2023, Eka Samadashvili and Davit Pavliashvili were sentenced for their respective roles in the operation of several labor staffing companies, including PSEB Services JD Inc., Paradise Hospitality Solutions LLC, Paradise Hospitality Group LLC, Paradise Hospitality Inc. and HBSM Corp. According to court records, these labor staffing companies caused a tax loss to the United States of more than $8.4 million and facilitated the employment of non-resident aliens in hotels, bars and restaurants in Key West and elsewhere who were not authorized to work in the United States.

Finally, in March 2024, Petr Sutka was sentenced to four years in prison for his role in operating a series of labor staffing companies — including PSEB Specialty Service Inc., Perfect Service Excellent Benefits Services Inc., Starline Hospitality Inc., Norbert Janitorial Service Inc., E.S.F. Services Inc. and Expert Services F.S. Inc. — which, according to court records, caused a tax loss to the United States of more than $3.5 million and facilitated the employment of aliens without work authorization. In April 2024, Sutka’s co-defendants, Zdenek Strnad and Vasil Khatiashvili, were each sentenced to more than three years, respectively, for their roles in the tax and immigration conspiracy.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Acting U.S. Attorney Michael S. Davis for the Southern District of Florida made the announcement.

HSI and IRS-CI are investigating the case.

Senior Litigation Counsel Sean Beaty and Trial Attorneys Jessica A. Kraft, Matthew C. Hicks and Wilson Rae Stamm of the Tax Division and Senior Litigation Counsel Chris Clark for the U.S. Attorney’s Office for the Southern District of Florida are prosecuting the case.

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Defense News: U.S. and Allied Forces Conduct La Perouse 2025

Source: United States Navy

La Perouse is a biennial, multilateral exercise demonstrating a shared commitment to enhance regional and international cooperation in support of a free and open Indo-Pacific.

This exercise is designed to advance maritime security in the region through maritime surveillance, interdiction, and air operations through progressive training and information sharing.

This exercise provided an opportunity for U.S. and allied and partner navies, who have shared values, fulfill maritime integration training objectives by emphasizing collaboration, warfighting, and readiness in a dynamic theater, resulting in enhanced maritime security and continued deterrence.

“USS Savannah’s opportunity to operate with our foreign partners this week was exciting. The French and American navies have shared priorities and an enduring mission in the Indo-Pacific,” said Capt. Matt Scarlett, commodore, Destroyer Squadron 7. “Our ability to conduct consistent bilateral operations, conduct information sharing, and participate in realistic scenarios at sea, increases our interoperability as a joint force and ensures sustained maritime security in the region.”

Named after an 18th-century French naval officer and explorer, La Perouse reflects longstanding values and a shared commitment to maritime security with like-minded nations.

The French Navy Charles de Gaulle carrier strike group is represented by their aircraft carrier FS Charles de Gaulle (R91). Charles de Gaulle carrier strike group is operating in the Indo-Pacific as part of their Clemenceau 25 deployment.

“We welcome the opportunity to operate alongside the French navy, our friend and longtime ally, out here in the Indo-Pacific,” said Vice Adm. Fred Kacher, commander, U.S. 7th Fleet. “Their exercise La Perouse underscores the value our European allies place on this critical maritime region, and we look forward to advancing interoperability at sea between our forces.”

Additional participating units included Royal Australian Navy’s Hobart Class guided missile destroyers HMAS Hobart (DDG 39); Royal Canadian Navy’s Halifax-class frigate HMCS Ottawa (FFH 341); the Indian Navy’s Delhi-class guided-missile destroyers INS Mumbai (D 62); Royal Malaysian Navy’s Lekiu-class guided missile frigate FFG Lekir (FFG 30) and Gagah Samudera-class training ship KD Gagah Samudera (271); Royal Navy of the United Kingdom’s River-class off-shore patrol vessel HMS Spey (P 234); and Republic of Singapore Navy’s Independence-class littoral mission vessel RSS Independence (15)

As the U.S. Navy’s forward-deployed DESRON in Southeast Asia, DESRON 7 serves as the primary tactical and operational commander of littoral combat ships rotationally deployed to the U.S. 7th Fleet area of operations, functions as Expeditionary Strike Group 7’s Sea Combat Commander and builds partnerships through training and exercises and military-to military engagements.

U.S. 7th Fleet is the U.S. Navy’s largest forward-deployed numbered fleet, and routinely interacts and operates with allies and partners in preserving a free and open Indo-Pacific region.

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Defense News: Navy Medicine and Readiness Training Command Rota Enhances Readiness and Retention Through Training Programs

Source: United States Navy

Navy Medicine and Readiness Training Command (NMRTC) Rota is dedicated to fostering professional development and recruitment in military medicine.

The small overseas command, collocated with Naval Hospital Rota, offers training and shadowing opportunities for service members, enhancing retention and operational readiness in line with Navy Medicine’s strategic objectives. The training also supports those seeking career progression.

Because Naval Hospital Rota is a forward deployed shore command, many of its Sailors will be assigned to sea rotations or operational units after their tours. Preparing these Sailors to provide healthcare in a non-hospital setting, or as part of an expeditionary medicine (EEXMED) team, helps with skill sustainment, retention, and resiliency.

Capt. William Scouten, the hospital’s director and the NMRTC Commanding Officer, stressed the importance of training. “Training builds individual competence and high-functioning teams ready for rapid response. As we prepare for the most likely contingencies, teams validate lines of communication and reinforce command and control relationships that may become blurred during combat operations,” he said.

One such training opportunity includes candidates from within the Medical Enlisted Commissioning Program (MECP), with non-medical backgrounds, who partner with the hospital’s Emergency Department and Multiservice Wards to shadow nurses and receive mentorship.

Lt. Serena Yesenofski, Rota’s MECP Coordinator said, “This program offers a unique opportunity for junior Sailors to earn a nursing degree and a commission. We are committed to supporting their full potential in service to others.”

Additionally, officers in the Medical Service Corps (MSC) support the Medical Service Corps Interservice Procurement Program (MSC-IPP), which offers commissioning pathways and educational opportunities.
“MSCs take pride in mentoring candidates who may one day serve alongside us,” said Cmdr. Aaron Eckard, Director for Administration. “This is how we invest and develop our future officers.”

NMRTC Rota has also hosted senior-year Naval Reserve Officers Training Corps (NROTC) Nurse Corps Midshipmen for immersive rotations, enhancing their readiness for future assignments.

“I am very excited that Rota has been able to offer this opportunity. NROTC is an incredible way of building leadership skills and truly helps prepare nurses for a successful career in the Navy,” said Cmdr. Jenny Paul, Director for Public Health Services.

Within the past year, Preventive Medicine Technicians have trained 28 junior Sailors, preparing them for operational roles, while new initiatives like a Hearing Conservation Technician course aim to bolster mission readiness.

NMRTC Rota engages in an ongoing professional development series and has recently initiated Thursday afternoon training evolutions to ensure enlisted, officer and civilian staff are provided dedicated time for knowledge, skill and ability training and contingency operation preparations.

During this training time the commands directorate and senior enlisted leaders leverage the expertise of the command and local clinical and administrative experts to provide lunch and learn and afternoon training sessions. These evolutions highlight changes in clinical practice guidelines, review capabilities, and provide staff hands-on clinical practice for new or war-time critical skills.

NMRTC Rota’s strategic location in the Iberian Peninsula makes it a critical asset in supporting global medical missions throughout Europe, Africa, and the Middle East, ensuring readiness and expertise for any contingency.

Navy Medicine – represented by more than 44,000 highly-trained military and civilian health care professionals – provides enduring expeditionary medical support to the warfighter on, below, and above the sea, and ashore.

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Pfizer Agrees to Pay Nearly 60M to Resolve False Claims Allegations Relating to Improper Physician Payments by Subsidiary

Source: United States Department of Justice Criminal Division

Note: View the settlement here.

Pharmaceutical company Pfizer Inc. (Pfizer), on behalf of its wholly-owned subsidiary Biohaven Pharmaceutical Holding Company Ltd. (Biohaven), has agreed to pay $59,746,277 to resolve allegations that, prior to Pfizer’s acquisition of the company, Biohaven knowingly caused the submission of false claims to Medicare and other federal health care programs by paying kickbacks to health care providers to induce prescriptions of Biohaven’s drug Nurtec ODT.

“Through this settlement and others, the government has demonstrated its commitment to ensuring that drug companies do not use kickbacks to influence physician prescribing,” said Acting Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The department will use every tool at its disposal to prevent pharmaceutical manufacturers from undermining the objectivity of treatment decisions by health care providers.”

The anti‑kickback statute prohibits offering or paying anything of value to induce the referral of items or services covered by Medicare, Medicaid, TRICARE, and other federal health care programs. The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives.

The settlement announced today resolves allegations that from March 1, 2020, through Sept. 30, 2022, Biohaven paid improper remuneration, including in the form of speaker honoraria and meals at high end restaurants, to health care professionals to induce them to prescribe the migraine medication Nurtec ODT in violation of the anti-kickback statute. The United States alleged that Biohaven selected certain health care providers to be part of the Nurtec speaker bureau and provided them paid speaking opportunities with the intent that the speaker honoraria and meals would induce them to prescribe Nurtec ODT. The government further alleged that certain prescribers who attended multiple programs on the same topic received no educational benefit from attending repeat programs and that certain Biohaven speaker programs were attended by individuals with no educational need to attend, such as the speakers’ spouses, family members, or friends, or colleagues from the speakers’ own medical practice. The United States contends that this conduct persisted until October 2022, when Pfizer acquired Biohaven and terminated the Nurtec speaker programs.    

“Patients deserve to know that their doctor is prescribing medications based on their doctor’s medical judgment, and not as a result of financial incentives from pharmaceutical companies,” said U.S. Attorney Trini E. Ross for the Western District of New York. “This settlement reflects our commitment to hold those who violate the laws accountable, regardless of their status or prestige.”

“Violations of the anti-kickback statute, such as those alleged in this settlement, can unduly influence prescribers and negatively impact taxpayer-funded health care,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to collaborate with law enforcement partners to ensure that providers and corporations are held accountable if they attempt to bypass laws meant to protect the integrity of federal health care programs.”

“Investigating schemes that undermine the integrity of TRICARE, the health care system for military members and their families, is a top priority for the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “Today’s announcement demonstrates our commitment to work with our partner agencies and the Department of Justice to pursue corporations that attempt to corrupt the TRICARE system.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Patrica Frattasio, a former sales representative at Biohaven. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Patricia Frattasio v. Biohaven Pharmaceutical Holding Company Ltd., No. 6:21-CV-06539 (W.D.N.Y.). Approximately $50.2 million of the settlement constitutes the federal portion of the recovery and approximately $9.5 million constitutes a recovery for State Medicaid programs. Ms. Frattasio will receive approximately $8.4 million as her share of the federal recovery in this case.   

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. Attorney’s Office for the Western District of New York.

Trial Attorney Jessica Sarkis of the Justice Department’s Civil Division and Assistant U.S. Attorney David M. Coriell for the Western District of New York handled the matter.

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).

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