Category: US Department of Justice

Source: United States Department of Justice Criminal Division

Walgreens Boots Alliance Inc. and Walgreen Co. (together, Walgreens) have agreed to pay $106.8 million to resolve alleged violations of the False Claims Act and state statutes for billing government health care programs for prescriptions never dispensed. Walgreens, headquartered in Deerfield, Illinois, operates one of the largest retail pharmacy chains in the country.

The government alleges that, between 2009 and 2020, Walgreens submitted false claims for payment to Medicare, Medicaid and other federal health care programs for prescriptions that it processed but that were never picked up by beneficiaries. As a result, Walgreens received tens of millions of dollars for prescriptions that it never actually provided to health care beneficiaries.

As part of the resolution, Walgreens received credit under the department’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases. Among other actions, Walgreens implemented enhancements to its electronic pharmacy management system to prevent this from occurring in the future and self-reported certain conduct. Because Walgreens previously refunded $66,314,790 pertaining to the settled claims, Walgreens will receive a credit for this amount.

“Federal health care programs provide critical health care services to millions of Americans,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable those who abuse these programs by knowingly billing for goods or services they did not provide.”

“Millions of Americans rely on the promise of federal healthcare through programs like Medicare and Medicaid,” said U.S. Attorney Alexander M.M. Uballez for the District of New Mexico. “Fraudulently billing for prescriptions which are never dispensed endangers the integrity of these critical programs. We are committed to guarding the public’s investment in our health from private corporations.”

“Adopting new technology and systems can be beneficial for providers, beneficiaries, and federal payors, including Medicare, Medicaid and TRICARE,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “However, we will not allow companies to hide behind their implementation of ill-conceived technology and systems that result in billing federal health care programs for goods and services never provided to beneficiaries. In those situations, we will pursue the companies and ensure that the taxpayer is made whole.”

“This settlement marks another major achievement in our ongoing commitment to combat healthcare fraud,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “It is essential to hold pharmacies accountable when they knowingly fail to abide by the rules and requirements of our national health care programs.”

“Medicare enrollees, and consumers at-large, rely on pharmacies for critical medications that sustain their quality of life, and providers who prey upon public health care programs to increase profit margins must be held accountable,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG is unwavering in its commitment to protecting taxpayer-funded healthcare programs and ensuring those that threaten their integrity are held liable for their actions.”

The federal share of the recovery is $91,881,530, and a total of $14,933,259 will be returned to individual states, which jointly fund state Medicaid programs, through separate settlement agreements with the Medicaid participating states.

The federal government’s settlement with Walgreens resolves three cases pending in the District of New Mexico, Eastern District of Texas and Middle District of Florida under the qui tam, or whistleblower, provision of the False Claims Act, which permits private parties to file suit for false claims on behalf of the United States and to share in any recovery. Steven Turck, a former Walgreens pharmacy manager, filed the qui tam suit in the Eastern District of Texas related to billing Medicare, Medicaid and other federal health care programs, and will receive $14,918,675. Andrew Bustos, a former Walgreens district pharmacy supervisor, filed the qui tam suit in the District of New Mexico related to billing Medicare Part B and will receive $1,620,000.

Trial Attorney Seth Greene of the Civil Division’s Commercial Litigation Branch, Fraud Section; Assistant U.S. Attorneys Ruth Keegan and Sean Cunniff and Auditor Julie Chappell for the District of New Mexico; Assistant U.S. Attorneys James Gillingham and Adrian Garcia for the Eastern District of Texas; and Senior Litigation Counsel Lindsay Griffin for the Middle District of Florida handled the matters. HHS-OIG and the National Association of Medicaid Fraud Control Units assisted in the investigations.

The investigation and resolution of these matters 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).

The civil settlements with Walgreens resolved the following captioned cases: United States ex rel. Bustos v. Walgreens Boots Alliance, Inc., et al., No. 1:15-cv-781 (DNM); United States ex rel. Turck, et al. v. Walgreens Boots Alliance, Inc., et al., No. 4:19-cv-315 (EDTX); and United States, et al. ex rel. Jacob v. Walgreens Boots Alliance, Inc., No. 8:20-cv-858-T-60TGW (MDFL).

*This release has been updated to remove an allegation that is not in the settlement agreement. 

Source: United States Department of Justice Criminal Division

A federal jury convicted a California man this week for paying illegal kickbacks for patient referrals to his addiction treatment facilities located in Orange County, California.

According to court documents and evidence presented at trial, Casey Mahoney, 48, of Los Angeles, paid nearly $2.9 million in illegal kickbacks to so-called “body brokers” who referred patients to Mahoney’s addiction treatment facilities, Healing Path Detox LLC and Get Real Recovery Inc. Those body brokers in turn paid thousands of dollars in cash to patients, which some patients used to purchase drugs, in order to induce those patients to attend treatment at Mahoney’s facilities. Mahoney concealed the illegal kickbacks by entering into sham contracts with the body brokers which purportedly required fixed payments and prohibited payments based off of the volume or value of the patient referrals. In reality, Mahoney and the brokers negotiated payments based on the patients’ insurance reimbursements and the number of days Mahoney was able to bill for treatment. Mahoney also laundered the proceeds of the conspiracy through payments to the mother of one of the body brokers, which Mahoney falsely characterized as consulting fees.

Mahoney was convicted of one count of conspiracy to solicit, receive, pay, or offer illegal remunerations for patient referrals, seven counts of illegal remunerations for patient referrals, and three counts of money laundering. Mahoney is scheduled to be sentenced on Jan. 17, 2025, and faces a maximum penalty of five years in prison on the conspiracy charge, 10 years in prison on each illegal remuneration count, and 20 years in prison on each money laundering count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Martin Estrada for the Central District of California; Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office; and Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office made the announcement.

The FBI Los Angeles Field Office and IRS-CI Los Angeles Field Office investigated the case. The California Department of Insurance provided valuable assistance.

Trial Attorney Siobhan M. Namazi of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Nandor F.R. Kiss for the Central District of California are prosecuting the case.

Mahoney’s conviction arose out of violations of the Eliminating Kickbacks in Recovery Act (EKRA). EKRA was enacted in October 2018 as part of comprehensive legislation designed to address the opioid crisis in order to target the rise in body brokering and substance abuse facility profiteering.

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 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24.7 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, 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

Ismael “El Mayo” Zambada Garcia, 76, a citizen of Mexico, was arraigned this morning in federal court in Brooklyn, New York, on 17 counts related to drug trafficking, firearms offenses, and money laundering. This fifth superseding indictment relates to El Mayo’s decades-long leadership of the Sinaloa Cartel, one of the most violent and powerful drug trafficking organizations in the world and conspiracy to manufacture and distribute fentanyl. El Mayo was previously charged with running a continuing criminal enterprise, as well as murder conspiracy, money laundering conspiracy, cocaine, heroin, methamphetamine, and marijuana manufacture and distribution conspiracy, as well as other drug-related crimes.

El Mayo was ordered detained pending trial and was transferred yesterday to the Eastern District of New York from the Western District of Texas, following his arrest in New Mexico on July 25. 

“El Mayo, the co-founder and leader of the Sinaloa Cartel, has been charged with overseeing a multi-billion-dollar conspiracy to flood American communities with narcotics, including deadly fentanyl,” said Attorney General Merrick B. Garland. “We allege that El Mayo built, and for decades led, the Sinaloa Cartel’s network of manufacturers, assassins, traffickers, and money launderers responsible for kidnapping and murdering people in both the United States and Mexico, and importing lethal quantities of fentanyl, heroin, meth, and cocaine into the United States. Now, El Mayo joins the many other Sinaloa Cartel leaders who have faced charges in an American courtroom for the immeasurable harm they have inflicted on families and communities across our country.”

“For years, Ismael ‘El Mayo’ Zambada Garcia and the Sinaloa Cartel he led manufactured illicit fentanyl and peddled it across our country, profiting off of the pain of countless American communities,” said Secretary of Homeland Security Alejandro N. Mayorkas. “Thanks to the dedicated work of brave Homeland Security Investigations (HSI) Agents and their federal partners, the United States is disrupting and dismantling drug trafficking operations across the world, ensuring Cartel kingpins like Mr. Zambada Garcia are brought to justice, and keeping Americans safe from the scourge of fentanyl.”

“For decades, the Sinaloa Cartel has profited from poisoning and killing Americans, and fueling violence on both sides of our southern border,” said Deputy Attorney General Lisa Monaco. “Today’s arraignment of Zambada Garcia is the latest step in a whole-of-government effort to strike back against one of the world’s most dangerous criminal organizations and protect our communities from the fentanyl epidemic.”

“Today’s arraignment is another forceful reminder of the FBI’s commitment to pursuing justice for the American lives lost to the violence and trafficking of deadly drugs, like fentanyl, associated with Zambada Garcia and those he directed as a leader of the Sinaloa Cartel,” said FBI Director Christopher Wray. “The FBI will not stop in our pursuit of those who engage and facilitate the cartel’s sophisticated operations that cause immense harm to Americans and poison communities across our country.”

“Defeating the Sinaloa Cartel is DEA’s top operational priority and today, with the capture and additional charges filed against Ismael Zambada Garcia we are that much closer,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “Better known as ‘El Mayo’, Zambada Garcia is the co-founder and leader of the Sinaloa Cartel, one of the most ruthless and dangerous cartels in Mexico and responsible for the unprecedented drug crisis facing the United States. With Zambada Garcia no longer in power we have struck at the heart of the Sinaloa Cartel’s operations. He may have eluded capture for three decades, but today he is seeing what it means to face justice in America. Let this be a reminder to his associates and others, American lives depend on DEA remaining laser focused on destroying the cartels, their networks, and their global supply chain and that is what we will continue to do.”

“Zambada Garcia’s day of reckoning in a U.S. courtroom has arrived and justice will follow,” said U.S. Attorney Breon Peace for the Eastern District of New York. “If convicted, never again will he deliver fentanyl, cocaine, and other deadly drugs and associated violence into our country or make millions as hundreds of thousands of innocent lives are lost. It is my hope that the countless family members and friends of victims who succumbed to his cartel’s poisons, and the countless members of law enforcement who fearlessly risked their lives fighting this scourge, should take comfort in knowing that Zambada Garcia will be held accountable for his multitude of crimes.”

“Zambada Garcia will now face the American justice system,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “His arrest means that he will now have to face charges for leading the Sinaloa Cartel’s multi-billion-dollar criminal enterprise that funneled drugs onto our streets and violence and despair into our communities. But our work is not done. We will go after the leaders of the Sinaloa Cartel and the drug trafficking organizations around the world.”

“Today’s arraignment sends a clear message to drug traffickers around the world — we will find you and bring you to justice,” said HSI Executive Associate Director Katrina W. Berger. “The men and women of HSI are working diligently with our partners around the globe to investigate, intercept and halt the flow of illegal drugs into the United States and keep illegal drugs off our streets.”

“The arraignment of this individual is a result of the relentless work of law enforcement partners at all levels to stem the tide of illegal drugs and drug related violence in our country,” said Superintendent Steven G. James of the New York State Police (NYSP). “Strong partnerships are key, and as a result, a dangerous international drug trafficking operation, and the organized crime perpetuated by it, has been shut down. The State Police will continue to tenaciously work in conjunction with our partners to seek out those who deliberately put others in danger.”

El Mayo was first indicted in the Eastern District of New York in 2009 and most recently in a fifth superseding indictment in February. As alleged, El Mayo was a co-founder of the Sinaloa Cartel together with his co-defendant Joaquin Guzman Loera, also known as El Chapo, and together they ran the Sinaloa Cartel together from Mexico until El Chapo’s arrest in 2016. Following a trial, El Chapo was convicted in the Eastern District of New York in 2019 and sentenced to life plus 30 years in prison.

According to allegations in the superseding indictment, from 1989 to 2024, El Mayo led a continuing criminal enterprise responsible for the importation and distribution of massive quantities of narcotics and which generated billions of dollars in profits. To ensure the success of the Sinaloa Cartel, El Mayo employed thousands of people in South and Central America, throughout Mexico and in the United States. Through a complex, layered structure, El Mayo was able to assure transportation routes for the narcotics he sold from source of supply to distribution on the streets of the United States. El Mayo also employed groups of “sicarios” or hit-men, who at his orders carried out kidnappings and murders in Mexico and elsewhere — including murders in the United States — to eliminate anyone who threatened this valuable narcotics pipeline and to retaliate against rivals and those suspected of cooperating with the U.S. government. The billions of dollars generated from the drug sales were then transported and laundered back to Mexico. 

As set forth in the superseding indictment and other court filings, the Sinaloa Cartel, under El Mayo’s leadership, expanded its drug business into fentanyl manufacturing and distribution no later than 2012 and is responsible for the distribution of many thousands of kilograms of fentanyl into the United States. El Mayo also allegedly expanded the power and influence of the Sinaloa Cartel by making millions of dollars each year in corruption payments and conducting regular campaigns of brutal violence, including retaliatory murders that were allegedly committed on his orders as recently as just weeks prior to his arrest.

If convicted, El Mayo faces a mandatory minimum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

FBI, DEA, and HSI investigated the case.

Trial Attorneys Melanie Alsworth and Kirk Handrich of the Criminal Division’s Narcotic and Dangerous Drug Section; Assistant U.S. Attorneys Francisco J. Navarro, Robert M. Pollack, Adam Amir, and Lauren A. Bowman for the Eastern District of New York; and Assistant U.S. Attorney Andrea Goldbarg for the Southern District of Florida are prosecuting the case. The U.S. Attorneys’ Offices for the Northern District of Illinois, Central District of California, Southern District of California, and Western District of Texas provided substantial assistance.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach.

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

The United States has filed a civil lawsuit against Repwire LLC, a Florida Corporation that imports wire and cables. The lawsuit alleges that Repwire made false statements to customs officials in importing aluminum wire into the United States. The lawsuit also names as defendants Repwire’s manager, Jose Pigna, and insurer, American Alternative Insurance Corporation.   

The United States’ complaint contends that Repwire, through gross negligence or negligence, misrepresented to U.S. Customs and Border Protection (CBP) the imported wire’s classification code and country of origin. Repwire allegedly falsely classified the imported wire from China as aluminum wire with connectors instead of wire without connectors, and after import duties on the former were subsequently raised, Repwire allegedly then falsely identified the country of origin for various entries of its merchandise as Singapore or Korea. Both of these alleged misrepresentations resulted in Repwire failing to pay the appropriate amount of duties owed on its merchandise.

“The Justice Department is committed to pursuing individuals and companies who evade customs duties or otherwise engage in unfair trade practices that harm U.S. manufacturers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to employ all of our tools to ensure that U.S. manufacturers are competing on a level playing field.”

“CBP takes its trade mission of protecting the U.S. economy very seriously as we strive to maintain fair trade and preserve American jobs from predatory practices,” said Executive Director Susan Thomas of Cargo and Conveyance Security, Office of Field Operations, CBP. “These civil penalties should serve as a warning to those who attempt to do harm to our economy and American businesses.”

The complaint alleges that Repwire, acting through Pigna, avoided various duties owed on the imported wire, including Section 301 duties, which are owed on certain Chinese merchandise, including aluminum wires without connectors, and anti-dumping and countervailing duties associated with Chinese aluminum wire. Antidumping and countervailing duties are trade remedies that help protect domestic industries from unfair trade practices by foreign businesses and countries, such as government subsidies or below market sales.

The complaint seeks the recovery of over $11 million in import duties and up to $62 million in civil penalties.  

CBP’s Electronics Center of Excellence and Expertise and Homeland Security Investigations (HSI) Miami investigated the case. CBP and HSI are the agencies responsible for enforcing U.S. laws related to the importation of merchandise into the United States, including the collection of duties and assessment of penalties.

Trial Counsel Daniel Hoffman of the Civil Division’s Commercial Litigation Branch, National Courts Section, handled the case.

The case, which is filed in the Court of International Trade, is captioned United States v. Repwire LLC, and Jose Pigna, and American Alternative Insurance Corporation, No. 24-00173. 

To combat trade fraud, including avoidance of import duties, the Justice Department created a Trade Fraud Task Force. The Task Force partners with CBP and other law enforcement agencies to ensure compliance with United States trade laws.

The claims in the complaint are allegations only, and there has been no determination of liability. 

Source: United States Department of Justice

Remarks as Prepared for Delivery

Thank you for that introduction, Rosie.

I’m grateful for your leadership and the critical work you and your team do every day to eradicate gender-based violence.

It’s an honor to be with all of you as we commemorate the 30th Anniversary of the Violence Against Women Act (VAWA).

I’d like to add a special welcome to the many Department alumnae here today — welcome back. 

And of course, to the leaders, advocates, and survivors who were the engine behind VAWA years ago — and who continue to push all of us forward — thank you for your service and your presence today.

The work of so many here today — and so many more beyond this Great Hall — produced the first comprehensive law to address violence against women in our nation’s history.

For so many of you, this anniversary carries particular significance — I know it does for me. 

I was privileged to play a small part in the passage of the original Violence Against Women Act 30 years ago as a young staffer on the Senate Judiciary Committee.  

As we all know, President Biden led the charge for VAWA as Chairman of that committee.

But the drafting of this legislation was not a dry legal exercise — nor was it about making technical fixes to the U.S. code.

No, at its core, it was about changing attitudes and righting a fundamental wrong.

It was about bringing an epidemic of violence out of the shadows — and yes — by force of will and determination of so many — it was about asking the public and Congress to confront the woeful failure of our criminal justice system to protect survivors and hold perpetrators accountable.  

To shed light on what was happening, Chairman Biden charged his staff to make this case.

And with advocates and survivors, and law enforcement, that’s what we did.

I was just out of college — not even a baby lawyer at the time.

My job was to respond to constituent mail and basically do whatever else the lawyers on staff told me to do.

And lucky for me, they put me to work.

One project in particular stood out.

The idea was to document a week in the life of women in America, exposing the epidemic of violence against them:

• To lay bare the effect on everyday lives;

• To expose the problem of repeat offenders and the failure of protective orders;

• To describe its impact on children.

Working on that report, on that committee, three decades ago, I learned from survivors why we needed the Violence Against Women Act. 

I read and responded to countless letters — mostly from women — who wrote in heart-wrenching detail about the brutal violence and excruciating pain that they were suffering, often at the hands of a spouse or intimate partner.

We talked with rape crisis centers, domestic violence shelters, emergency rooms, and police stations across the country to gather data that showed how our justice system was failing victims and survivors and failing to hold perpetrators accountable.

The statistics at that time painted a grim picture:

• 98% of rape survivors never saw their attacker caught, tried, and imprisoned;

• Fewer than half of people arrested for rape were convicted; and

• Almost half of convicted rapists could expect to serve a year or less in jail.

But in September of 1994, that began to change.

For the first time, VAWA provided legal protection and resources to survivors of domestic violence, sexual assault, or stalking.

It empowered federal law enforcement to go after perpetrators who crossed state lines — and required state authorities to enforce protection orders from other states — freeing survivors to leave violent situations.

It closed a major loophole — codifying what should have always been obvious: that there is no such thing as “consent” to sexual acts between federal officers and those held in their custody.

It provided legal relief for battered immigrants and created the National Domestic Violence Hotline, which remains a vital resource today.

And for the first time, VAWA provided critical federal funding to those who touch survivors — from law enforcement to social services — to access programs, tools, and trainings.

The landmark law we celebrate today profoundly changed how our country protects survivors of domestic violence and sexual assault.

Of course, as this gathering knows well, none of this happened overnight.

It took years of painstaking, brave work by survivors and advocates across the country — building a nationwide movement to end violence against women and support the rights and dignity of survivors.

It was these survivors and advocates:

• Who started the domestic violence shelters and rape crisis centers;

• Who lobbied state legislatures to outlaw marital rape and protect victims against their abusers;

• Who fought against harmful myths and stereotypes, urging law enforcement to take violence against women seriously;

• Who organized for campus safety and accountability for offenders;

• Who formed victim-centered service organizations that continue to push for needed reforms today.

Without them, VAWA would not exist, and we would not be here today.

So, please join me in thanking those leaders, who were not only there in 1994 — but in 1984 and 1974 and 1964 and long before that.

Since VAWA’s enactment, we’ve increased justice for survivors and accountability for wrongdoers.

And today with the largest funding level ever — VAWA’s programs are providing: 

• More access to services, like transitional housing and legal support, for survivors;

• More resources to help law enforcement respond; and

• More capacity to keep guns out of the hands of domestic abusers.

Today we are also addressing the next frontier of gender-based violence — the proliferation of deep fake images and videos fueled by AI.

That’s why the Department is funding a new National Resource Center on Cybercrimes and awarding new Local Law Enforcement Grants for Enforcement of Cybercrimes — bolstering training for law enforcement, prosecutors, and judges.

This anniversary recognizes the Violence Against Women Act and all of you who made it happen.

And it recognizes that VAWA has been transformative in so many ways — in law, in culture, in attitudes. 

It was transformative for me in another way.

The experience of working with those women lawyers on the Judiciary Committee — and on this legislation 30 years ago — inspired me to go to law school, to become a lawyer, and to go into public service.

I saw what you could do with the law to help people and protect victims.

I was exposed to my first mentors and role models.

I witnessed their relentless drive, smarts, and dedication to getting this law enacted.

They were helping bring about real change that would have an impact on people’s lives. 

These women — some of whom you will hear from in a moment — were instrumental to the passage of VAWA — and they were an example for me.

Without them, or that experience 30 years ago, I would not be here today.

I’m grateful to be able to recognize and thank them from this podium today:

• Cynthia Hogan

• Victoria Nourse

• Demetra Lambros

• Cathy Russell

Now, our progress to address gender-based violence has not been linear, and it’s far from finished.

The legacy of the Violence Against Women Act is in the courage, and the stories, and the voices of victims and survivors who made the original law possible.

And it’s in the future work by all of us to shape a safer world for women everywhere. 

Thank you.