Category: US Department of Justice

Source: United States Department of Justice Criminal Division

Note: View the indictment here and FBI Wanted Posters here.

A federal court in St. Louis, Missouri, yesterday indicted 14 nationals of the Democratic People’s Republic of North Korea (DPRK or North Korea) with long-running conspiracies to violate U.S. sanctions and to commit wire fraud, money laundering, and identity theft. Specifically, the conspirators, who worked for DPRK-controlled companies Yanbian Silverstar and Volasys Silverstar, located in the People’s Republic of China (PRC) and the Russian Federation (Russia), respectively, conspired to use false, stolen, and borrowed identities of U.S. and other persons to conceal their North Korean identities and foreign locations and obtain employment as remote information technology (IT) workers for U.S. companies and nonprofit organizations.

The conspirators, some of whom were ordered by their superiors to earn at least $10,000 per month, generated at least $88 million throughout the approximately six-year conspiracy. In multiple instances, the conspirators supplemented their employment earnings by stealing sensitive company information, such as proprietary source code, and then threatening to leak such information unless the employer made an extortion payment. Ultimately, the conspirators used the U.S. and PRC financial systems to remit the proceeds of their activity to accounts in the PRC for the ultimate benefit of the DPRK government.

“To prop up its brutal regime, the North Korean government directs IT workers to gain employment through fraud, steal sensitive information from U.S. companies, and siphon money back to the DPRK,” said Deputy Attorney General Lisa Monaco. “This indictment of 14 North Korean nationals exposes their alleged sanctions evasion and should serve as a warning to companies around the globe — be on alert for this malicious activity by the DPRK regime.”

“Yesterday’s indictment is the latest in a series of actions under a National Security Division initiative launched earlier this year to disrupt North Korea’s efforts to generate revenue by duping American companies into hiring its citizens for remote work,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s for National Security Division. “This indictment and associated disruptions highlight the cybersecurity dangers associated with this threat, including theft of sensitive business information for the purposes of extortion.”

“The fourteen conspirators indicted yesterday victimized companies across the United States, as well as many Americans whose identities they stole, to generate revenue for the North Korean regime,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “The FBI will continue to work with our partners to expose and mitigate these fraudulent IT schemes and provide unwavering support to victims of North Korean cyber actors.”

“North Korean IT workers pose a sophisticated and persistent threat, especially to businesses seeking to employ large numbers of contract workers quickly,” said U.S. Attorney Sayler A. Fleming for the Eastern District of Missouri. “North Korean IT workers continue to find ways to evade detection, so businesses need to closely vet employees to avoid having their sensitive data stolen and unwittingly funding North Korea’s government.”

“While we have disrupted this group and identified its leadership, this is just the tip of the iceberg. The government of North Korea has trained and deployed thousands of IT workers to perpetrate this same scheme against U.S. companies every day,” said Special Agent in Charge Ashley T. Johnson of the FBI St. Louis Field Office. “Protect your business by thoroughly vetting fully remote IT workers. One of the ways to help minimize your risk is to insist current and future IT workers appear on camera as often as possible if they are fully remote.”

Today’s charges are the most recent step in an ongoing, two-year Department effort to disrupt this specific group of conspirators, one of multiple such DPRK groups attempting to generate revenue for the DPRK government through such schemes. Prior Department actions against this group include: (i) a January  court authorized seizure of approximately $320,000 (unsealed today); (ii) a July court authorized seizure of approximately $444,800 (unsealed today); (iii) previously announced October 2022 and January 2023 court-authorized seizures of approximately $1.5 million; and (iv) previously announced October 2023 and May 2024 court-authorized seizures of 29 internet domains used by the same group to increase the bona fides and appeal of their assumed identities to prospective employers.

In addition to these actions, the State Department announced today a reward offer of up to $5 million for information on these companies, the individuals identified, their illicit activities, and/or those of associated individuals and entities. The identified individuals are: Jong Song Hwa (정성화), Ri Kyong Sik (리경식), Kim Ryu Song (김류성), Rim Un Chol (림은철), Kim Mu Rim (김무림), Cho Chung Pom (조충범), Hyon Chol Song (현철성), Son Un Chol (손은철), Sok Kwang Hyok (석광혁), Choe Jong Yong (최정용), Ko Chung Sok (고충석), Kim Ye Won (김예원), Jong Kyong Chol (정경철), and Jang Chol Myong (장철명). The State Department’s Rewards for Justice program has a standing rewards program for information that leads to the disruption of financial mechanisms of persons engaged in certain activities that support the North Korean government, including work by highly skilled North Korean nationals sent abroad whose income generates funds for the DPRK regime.

The DPRK has dispatched thousands of skilled IT workers around the world, earning revenue that contributes to the North Korean regime with the aim of deceiving U.S. and other businesses worldwide into hiring them as remote IT workers to generate revenue in violation of U.S. and U.N. sanctions. DPRK IT worker schemes involve the use of pseudonymous email, social media, payment platform and online job site accounts, as well as false websites, proxy computers, virtual private networks, virtual private servers and unwitting third parties located in the United States and elsewhere. As described in a May 2022 tri-seal public service advisory released by the FBI and its partners, which was updated in October 2023, such IT workers can individually earn up to $300,000 annually, generating hundreds of millions of dollars collectively each year, on behalf of designated entities, such as the North Korean Ministry of Defense and others directly involved in the DPRK’s UN-prohibited weapons of mass destruction programs.  

The indictment alleges that the 14 conspirators worked for sanctioned North Korean-controlled companies Yanbian Silverstar and Volasys Silverstar in capacities ranging from senior company leaders to IT workers. These two organizations collectively employed at least 130 North Korean IT workers — referred to within these organizations as “IT Warriors.” As alleged in the indictment, Yanbian Silverstar and Volasys Silverstar organized periodic “socialism competitions” for their employees. During these competitions, IT workers would compete to generate money for the DPRK. Bonuses and other prizes were awarded to the top performers during these competitions. As part of their scheme, North Korean IT workers obtained salaried employment at numerous U.S.-based companies and nonprofit organizations. In some instances, U.S. employers unwittingly employed North Korean IT workers for years and paid them hundreds of thousands of dollars in salary.

The conspirators used many techniques to conceal their North Korean identities from employers. These included using stolen identities belonging to U.S. persons and others to apply for jobs; paying U.S. persons to attend job interviews and work meetings remotely under fake identities; and registering web domains and designing phony websites to convince prospective employers that the false identities were experienced, qualified, and previously employed by reputable contracting firms. As described in court documents, these websites contained indicia that should have aroused suspicion about their bona fides. For example, some of the physical addresses listed on the websites were home addresses, not office buildings; contact telephone numbers listed on the fake companies’ websites did not correspond to area codes of business locations; and the websites’ content included disjointed or nonsensical phrases, such as, “Nor, moreover, is there anyone who loves pain because it is pain, pursues it, wants to gain it, but.”

The conspirators also sought to avoid detection by paying U.S. persons to receive, set up, and host laptops sent from employers to the U.S. persons’ home addresses (often referred to as laptop farms).  After these laptops were set up, the conspirators instructed the U.S. persons to install software that allowed them to access the laptops from overseas. By arranging to have laptops physically located in the United States, conspirators made it appear as if the fake U.S.-based employees were accessing laptops to do work, when in fact the IT workers were located outside the United States.

In some instances, the conspirators leveraged their access to proprietary corporate information to extort their U.S.-based employers for additional payments. These threats were not empty — IT workers would at times publish the business’s information online if they were not paid. One employer, for example, sustained hundreds of thousands of dollars in damages after it refused the extortion demand of a conspirator who then publicly released the employer’s proprietary information.

All 14 conspirators are charged with conspiracy to violate the International Emergency Economic Powers Act, conspiracy to commit wire fraud, conspiracy to commit money laundering, and conspiracy to commit identity theft. Eight conspirators are charged with aggravated identity theft. If convicted, the defendants each face a maximum statutory penalty of 27 years in prison.

The FBI St. Louis Field Office investigated the case, with assistance from the FBI Cyber Division.

Trial Attorneys Jacques Singer-Emery and Alexandra Cooper-Ponte of the National Security Division’s National Security Cyber Section and Assistant U.S. Attorney Matthew Drake for the Eastern District of Missouri are prosecuting the case. Substantial assistance was also provided Trial Attorney Emma Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorney Kyle Bateman for the Eastern District of Missouri.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty.

Source: United States Department of Justice Criminal Division

The Justice Department announced today that it has entered into a court enforceable agreement with Louisville Metro Government (Louisville Metro) to resolve the Department’s findings that Louisville Metro and the Louisville Metro Police Department (LMPD) engage in a pattern or practice of violations of the Constitution and federal law.

The consent decree, filed today in the U.S. District Court for the Western District of Kentucky, sets forth a blueprint for reform by Louisville Metro and LMPD. The decree sets out specific policies, trainings, and programs that Louisville Metro and LMPD will implement to protect the rights of Louisville residents and promote public safety. The decree requires Louisville Metro and LMPD to collect and analyze data to improve as an agency and to hold officers and Louisville Metro employees accountable. The decree also requires Louisville Metro and LMPD to report on their progress publicly and to involve the community throughout the implementation process.

Under the decree, the parties will jointly recommend that the court appoint an independent monitor to assess Louisville Metro and LMPD’s implementation of the agreement. The independent monitor will regularly report to the public and the court on their progress.

“Nearly five years after Breonna Taylor was shot and killed in her own home in the middle of the night by Louisville Metro Police Department officers, the Justice Department has secured an agreement to enact significant, systemic reforms to policing in Louisville,” said Attorney General Merrick B. Garland. “This agreement addresses the serious violations of federal law that we uncovered during our pattern or practice investigation and puts the city of Louisville and its police department on a path to lasting reform. We are committed to honoring Breonna Taylor through our work to implement the agreement and to make Louisville a better and safer place for all of its residents.”

“In the wake of Breonna Taylor’s tragic killing, the people of Louisville fiercely advocated for racial justice, policing reform and accountability,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “City residents demanded that they receive the constitutional policing that they rightly deserve. Through this consent decree, Louisville and its police department have committed to addressing the violations of the Constitution and federal law we found during our investigation and to making Louisville a place where the police respect everyone’s rights. We look forward to working with city officials, the police department, and the people of Louisville to establish meaningful and lasting reform.”

The Justice Department and Louisville Metro have jointly requested that the court enter the consent decree as an order of the court. The reforms required by the decree will ensure that:

• LMPD officers use appropriate de-escalation techniques and attempt to resolve incidents without force when possible, and use force in a manner that is reasonable, necessary, and proportional to the threat presented;
• LMPD’s applications for residential search warrants articulate specific, individualized, and accurate facts that establish probable cause for everything to be searched and seized, and LMPD officers execute residential search warrants using safe and lawful tactics;
• LMPD officers conduct street enforcement activities, including stops, frisks, searches, and arrests, in a manner that protects people’s rights;
• LMPD enforces the law fairly and impartially, providing equal protection of the law for all people in Louisville and taking steps to reduce unlawful racial disparities in enforcement;
• LMPD officers respect the First Amendment rights of all persons, including the right to criticize and protest police conduct and to observe and record police officers in the public discharge of their duties;
• Louisville Metro and LMPD deploy non-law enforcement deflection teams to situations involving people in behavioral health crisis where police involvement is not necessary, and when it is necessary, LMPD sends specially trained officers to respond;
• LMPD responds to and investigates sexual assault, domestic violence, and sexual misconduct in a thorough, timely, trauma-informed, and bias-free manner;
• Louisville Metro operates a non-police outreach team to respond to situations involving unhoused individuals that do not warrant a law enforcement or behavioral health crisis response;
• LMPD enhances community engagement and solicits input to ensure its policing practices are responsive to community needs;
• Louisville Metro and LMPD put in place effective supervision practices and robust training for officers;
• LMPD officers receive the support they need to do their jobs safely and effectively;
• LMPD develops a recruitment and hiring program designed to attract a diverse, well-qualified array of individuals; and
• LMPD investigates allegations of officer misconduct fully, fairly, and efficiently, and holds all officers who commit misconduct accountable through fair and consistent discipline.

Along with the consent decree, Louisville Metro and the Department have entered into a new agreement in principle committing to create evaluation tools, called Performance Review methodologies, for each section of the consent decree. These tools will identify in detail the specific metrics that the independent monitor will use to determine whether Louisville Metro and LMPD have complied with the terms of the consent decree. 

The Justice Department announced its findings in March 2023, following a thorough investigation into Louisville Metro and LMPD, which began in April 2021. The Civil Rights Division’s Special Litigation Section and the Civil Division of the U.S. Attorney’s Office for the Western District of Kentucky conducted the investigation, with the assistance of law enforcement professionals. The Department conducted the investigation pursuant to 34 U.S.C. § 12601, which prohibits law enforcement officers from engaging in a pattern or practice of conduct that deprives people of rights protected by the Constitution or federal law.

The Department will hold a virtual zoom community meeting to discuss the consent decree on Monday, Dec. 16, at 7:30 pm ET. Register for the event at https://www.zoomgov.com/webinar/register/WN_O8uZMp10QZaMqSLP1bix2Q. Members of the public are encouraged to attend to learn more about the decree.

Additional information about the Civil Rights Division is available at www.justice.gov/crt. Information specific to the Civil Rights Division’s police reform work can be found at www.justice.gov/crt/conduct-law-enforcement-agencies.  

Read the consent decree here.

Read the consent decree fact sheet here.

Read the findings report here.

Source: United States Department of Justice

Oroville Hospital, located in Oroville, California, has agreed to pay $10,250,000, to the United States and the State of California to resolve allegations that it knowingly submitted false claims to Medicare and Medicaid arising from medically unnecessary inpatient hospital admissions, a kickback and physician self-referral scheme and the use of erroneous diagnosis codes. Oroville Hospital will pay $9,518,954 to the federal government and $731,046 to the State of California.

The United States alleged that Oroville Hospital admitted patients and billed Medicare and Medicaid for more expensive inpatient hospital stays when inpatient care was not medically necessary and observation status or outpatient care was appropriate. The United States also alleged that Oroville Hospital illegally incentivized inpatient admissions by paying financial bonuses to doctors who worked full time at the hospital and were in a position to influence whether or not patients were admitted to the hospital. The bonuses paid by Oroville Hospital took into account the volume or value of admissions by these physicians. Oroville Hospital further allegedly submitted claims to Medicare and Medicaid that included false diagnosis codes for systemic inflammatory response syndrome (SIRS), resulting in excessive reimbursement to the Hospital.

“Improperly billing federal health care programs depletes valuable government resources used to provide medical care to millions of Americans,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to protect these critical programs by pursuing those who knowingly claim reimbursement to which they are not entitled.”

“Physicians should make decisions based on the best interests of their patients, not their own personal financial interests,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “Hospitals engaging in kickback schemes betray the trust placed in them by their communities and distort care decisions that should be untainted by illegal kickbacks. This settlement demonstrates my office’s commitment to preserving the integrity of public healthcare programs and ensuring that the well-being of patients remains paramount.”

In connection with the settlement, Oroville Hospital entered into a five-year Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires, among other conditions, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks. The CIA also requires an independent review organization to annually assess both the medical necessity and appropriateness of select claims billed to Medicare and policies and systems to track arrangements with some referral sources.

“Health care providers that improperly bill Medicare and Medicaid for medically unnecessary services to boost profits divert taxpayer funding meant to pay for services that enrollees actually need,” said Special Agent in Charge Steven J. Ryan of HHS-OIG. “And when providers engage in improper financial arrangements, they undermine the integrity of medical decision-making. HHS-OIG, in coordination with our law enforcement partners, will continue to identify and investigate such allegations in order to protect federal health care programs and the Americans who rely on them.”

The settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Cecilia Guardiola. 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 United States ex rel. Cecilia Guardiola v. Oroville Hosp., Case No. 2:20-CV-1558 (EDCA). As part of the resolution, Guardiola will receive approximately $1.7 million from the federal settlement amount.

The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of California, with assistance from HHS, Office of Counsel to the Inspector General and Office of Investigations and the California Department of Justice, Division of Medi-Cal Fraud and Elder Abuse.

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 HHS at 800-HHS-TIPS (800-447-8477).

Attorneys Daniel A. Spiro and James Nealon of the Civil Division’s Fraud Section and Assistant U.S. Attorney Steve Tennyson for the Eastern District of California handled the matter.

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

Settlement

Source: United States Department of Justice

Following a comprehensive investigation, the Justice Department announced today that the Mount Vernon, New York, Police Department (MVPD) engages in a pattern or practice of conduct that deprives people of rights secured by the U.S. Constitution and federal law.

Specifically, the Justice Department finds that MVPD:

• Uses excessive force in numerous ways, including by unnecessarily escalating minor encounters and by overusing tasers and closed-fist strikes, particularly against individuals who have already been taken to the ground, are controlled by many officers or are already fully or partially restrained;
• Conducted unlawful strip searches and body cavity searches of individuals until at least 2023; and
• Makes arrests without probable cause.

The department also identified serious concerns with MVPD’s practices regarding vehicle stops and evidence collection, as well as serious concerns that MVPD practices may result in discriminatory policing. Deficiencies in policies, training, supervision and accountability systems contribute to MVPD’s unlawful practices.

“Our investigation into the Mount Vernon Police Department reveals a pattern and practice of unlawful conduct that can and must be addressed,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “While officials have undertaken preliminary actions to address some areas of concern, the city and police department must institute comprehensive measures that will fully and finally bring an end to these unconstitutional practices. It will require commitment and hard work by the leadership of the city and the police department as well as by rank-and-file officers. We stand ready to work with Mount Vernon officials to achieve constitutional policing and to strengthen community trust. Police reform will not happen overnight. Across the country, the department’s investigations, findings reports and resulting reform measures help law enforcement agencies become the departments that their citizens need and deserve.”

“Our investigation has found reasonable cause to believe that MVPD engages in a pattern or practice of conduct that violates the constitutional rights of the citizens it has sworn to protect,” said U.S. Attorney Damian Williams for the Southern District of New York. “The systemic deficiencies we identified have resulted in a pattern of MVPD officers using excessive force; making illegal arrests; and, for many years, regularly conducting unlawful strip searches and body cavity searches.  We are encouraged by the recent steps the City of Mount Vernon and the MVPD have taken that evince a commitment to constitutional policing, and we look forward to continued cooperation to ensure that MVPD keeps its community safe from crime while respecting its citizens’ constitutional rights.”

The Justice Department opened this investigation on Dec. 3, 2021. The investigation was conducted by career attorneys and staff in the Civil Rights Division’s Special Litigation Section and U.S. Attorney’s Office for the Southern District of New York. The department interviewed MVPD command staff and supervisors, patrol officers, police union representatives, Mount Vernon residents, prosecutors from the Westchester County District Attorney’s Office, defense attorneys and local civic associations. The department also reviewed MVPD’s arrest reports, use-of-force reports, stops, search, and arrest data, policies, training materials and internal affairs files.

The department met regularly throughout the investigation with city and MVPD officials to provide feedback on the observations by the department and the department’s policing experts. The city and MVPD cooperated throughout the investigation.

The department conducted this investigation pursuant to 34 U.S.C. § 12601 (Section 12601), which prohibits law enforcement officers from engaging in a pattern or practice of conduct that deprives people of rights protected by the Constitution or federal law.

MVPD has implemented a number of changes since the opening of the investigation. For example, MVPD is working with the city to equip all officers with body-worn cameras and less-lethal weapons. MVPD also has made progress in connection with strip and cavity searches, including by revising its policy and offering training on it. The department’s findings report outlines additional remedial measures necessary to address its findings.

The City has pledged to work cooperatively with the Justice Department to address the findings.

The Justice Department will be conducting outreach to members of the Mount Vernon community for input on remedies to address the investigation’s findings. Individuals may also submit recommendations by email at community.mvpd@usdoj.gov or by phone at 1-866-985-1378.

Since January 2021, the Justice Department has opened 12 investigations into law enforcement agencies pursuant to 34 U.S.C. § 12601, and has been actively monitoring over a dozen agreements with law enforcement agencies that were secured prior to that period. Since 2021, the department has successfully concluded agreements and portions of consent decrees with the Yonkers, New York Police Department; the Albuquerque, New Mexico, Police Department; the Suffolk County, New York, Police Department; the Portland, Oregon, Police Bureau; and the Seattle Police Department.  The department has issued findings reports concerning several agencies including: Louisville, Kentucky, Metro Police Department; the Minneapolis, Minnesota, Police Department; the Phoenix, Arizona, Police Department; the Lexington, Mississippi, Police Department; the Trenton, New Jersey, Police Department; the Memphis, Tennessee, Police Department; and the Worcester, Massachusetts, Police Department.  Investigations are ongoing regarding the Louisiana State Police; the New York City Police Department’s Special Victims Division; the Oklahoma City, Oklahoma, Police Department; and the Rankin County, Mississippi, Sheriff’s Department.

Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the Southern District of New York is available at www.justice.gov/usao-sdny.

The Justice Department will hold a virtual community meeting on Dec. 16 at 6 p.m. ET. Members of the public are encouraged to attend to learn more about the findings. Please register to join the meeting at www.zoomgov.com/webinar/register/WN_jxTvdftFR_KZtUwFvH1ADQ.

Source: United States Department of Justice Criminal Division

A former scheduler of Certified Nursing Assistants (CNAs) at an Illinois nursing and rehabilitation facility pleaded guilty in federal court to fraud charges in connection with the hiring and payment of “ghost” employees who never actually worked at the facility.

Alisha Richardson pleaded guilty to one count of wire fraud in violation of Title 18, United States Code, Section 1343, in the U.S. District Court for the Northern District of Illinois. In pleading guilty, the defendant admitted that, from roughly October 2017 through April 2019, she was employed as a CNA scheduler at a nursing and rehabilitation facility in Forest Park that provided medical benefits and services to patients. While employed at the facility, Richardson planned, organized, and executed a scheme to defraud the facility by making it appear that at least five individuals were employed at the facility when they were not (the “ghost” employees). Richardson submitted false time sheets and other documents, causing the facility to generate paychecks for these “ghost” employees. Richardson then split the proceeds with the “ghost” employees or forged their signatures, signing over the paychecks to herself. As a result of the fraud, the facility paid approximately $103,094.01 for work that was never performed. In the plea agreement, the defendant agreed to the entry of a forfeiture judgment for that amount.

“The defendant in this case stole money that should have been used to provide nursing and rehabilitative care to older Americans,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will vigorously investigate and prosecute those who commit crimes that affect programs that benefit vulnerable Americans.”

“The defendant’s ghost payrolling scheme resulted in a substantial loss for an organization that provides critical services to elderly Americans,” said Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois. “We will continue to investigate, prosecute, and hold accountable anyone who attempts to scam their employer out of payroll funds.”

“Financial fraud and abuse take critical resources out of our health care system and defrauds the American public,” said Special Agent-in-Charge Douglas S. DePodesta of the FBI Chicago Field Office. “This case is the result of successful, multi-agency collaboration into the defendant’s scheme. The FBI and our partners will continue to allocate significant resources to investigate crimes like these and protect the integrity of our federal health care programs.”

“Our agency is committed to ensuring that federal health care programs are protected from all types of fraud, waste and abuse. Providers who submit fraudulent records and bill for “ghost” services damage our federal health care programs and the beneficiaries they serve,” said Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to investigate any similar allegations of fraud.”

Richardson pleaded guilty before U.S. District Judge Jorge L. Alonso in Chicago, Illinois. A sentencing date will be set by the court. In addition to the forfeiture judgment, she faces a maximum sentence of 20 years in prison, a maximum fine of $250,000 and three years of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI and HHS-OIG investigated the matter.

Senior Trial Attorney James T. Nelson of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Jason A. Julien for the Northern District of Illinois are prosecuting the case.

For more information about the enforcement efforts of the Consumer Protection Branch visit www.justice.gov/civil/consumer-protection-branch.