HomeCriminal Investigations

Jan. 17, 2020

Colorado Springs Man Convicted of Bank Fraud

United States Attorney Jason R. Dunn announced that Jack V. Smalley, age 70, of Colorado Springs was found guilty following a four-day jury trial for bank fraud related to a mortgage application with the Navy Federal Credit Union. The Department of Defense Criminal Investigative Service, the Internal Revenue Service--Criminal Investigations, and the Air Force Office of Special Investigations join in this announcement.

Jan. 16, 2020

Psychiatrist Sentenced to Prison for Healthcare Fraud Scheme

A Virginia Beach doctor was sentenced today to 27 months in prison for defrauding Medicare, Medicaid, and Tricare, and other health care benefits programs out of hundreds of thousands of dollars. Additionally, Udaya K. Shetty, 64, agreed to pay over $1 million to settle related civil claims.

Jan. 16, 2020

San Antonio Area Pharmaceutical Sales Representative Sentenced to Prison for Paying Over $400K in Bribes to Physicians and Physician Assistants

In San Antonio this morning, a federal judge sentenced 46-year-old former pharmaceutical sales representative Holly Blakely, of San Antonio, TX, to 30 months in federal prison for a Bribery/Health Care Fraud scheme that netted her over $1 million, announced U.S. Attorney John Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Texas Attorney General Ken Paxton.

Jan. 15, 2020

Texas Doctor Found Guilty for Role in $325 Million Health Care Fraud Scheme Involving False Diagnoses of Life-Long Diseases

A federal jury found a Texas rheumatologist guilty today for his role in a $325 million health care fraud scheme in which he falsely diagnosed patients with life-long diseases and treated them with toxic medications on the basis of that false diagnosis. Following a 25-day trial, Jorge Zamora-Quezada, M.D., 63, of Mission, Texas, was convicted of one count of conspiracy to commit health care fraud, seven counts of health care fraud, and one count of conspiracy to obstruct justice. Zamora-Quezada is expected to be sentenced on March 27, 2020, by U.S. District Judge Ricardo Hinojosa of the Southern District of Texas, who presided over the trial.

Jan. 15, 2020

Resmed Corp. to Pay the United States $37.5 Million for Allegedly Causing False Claims Related to the Sale of Equipment for Sleep Apnea and Other Sleep-Related Disorders

ResMed Corp., a manufacturer of durable medical equipment (DME) based in San Diego, California, has agreed to pay more than $37.5 million to resolve alleged False Claims Act violations for paying kickbacks to DME suppliers, sleep labs and other health care providers, the Department of Justice announced today.

Jan. 15, 2020

Five Men Indicted for Operating an International Procurement Network to Export Goods from the United States to Pakistan's Nuclear Program

Five men, all associated with the front company “Business World” in Rawalpindi, Pakistan, and including Muhammad Kamran Wali (“Kamran”), 41, of Pakistan; Muhammad Ahsan Wali (“Ahsan”), 48, and Haji Wali Muhammad Sheikh (“Haji”), 82, both of Mississauga, Ontario, Canada; Ashraf Khan Muhammad (“Khan”) of Hong Kong; and Ahmed Waheed (“Waheed”), 52, of Ilford, Essex, United Kingdom, were indicted by a federal grand jury for conspiracy to violate the International Emergency Economic Powers Act and the Export Control Reform Act of 2018 and conspiracy to smuggle goods from the United States, United States Attorney Scott W. Murray announced. The grand jury returned the indictment on October 16, 2019, and it was unsealed today.

Jan. 15, 2020

Federal Grand Jury in San Antonio Indicts Former Air Force Employee, Ashburn, VA-Based Quantadyn Corporation, and Its Owner for Alleged Bribery and Government Contract Fraud Scheme

In San Antonio today, a federal judge unsealed a grand jury indictment charging a software engineering company called Quantadyn Corporation (Quantadyn); one of its owners, 59-year-old Herndon, VA, resident David Joseph Bolduc, Jr.; 53-year-old San Antonio resident Keith Alan Seguin, and 70-year-old Atlanta, GA, area resident Rubens Wilson Fiuza Lima for their roles in a bribery and government contract fraud scheme that spanned more than a decade and impacted contract awards worth hundreds of millions of dollars.

Jan. 15, 2020

TMJ & Orofacial Pain Treatment Centers of Wisconsin Agree to Pay $1 Million to Resolve False Claims Act Allegations

United States Attorney Matthew D. Krueger announced today that L.M.G., Inc., which does business as TMJ & Orofacial Pain Treatment Centers of Wisconsin, agreed to pay $1,000,000 to the United States to resolve allegations that TMJ & Orofacial Pain Treatment Centers of Wisconsin submitted false claims to Medicare and TRICARE for oral appliances used to treat temporomandibular joint disorder.

Jan. 13, 2020

Former Green Beret Pleads Guilty to Conspiracy and Receiving Stolen Federal Funds

GREENVILLE – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, WILLIAM TODD CHAMBERLAIN , 46, of Raleigh pled guilty to Conspiracy and Receiving Stolen Government Property before United States Magistrate Judge Kimberly A. Swank. At sentencing before Senior United States District Court Judge Malcolm J. Howard, CHAMBERLAIN faces a combined maximum sentence of 15 years imprisonment, followed by three years of supervised release, a $500,000 fine, mandatory restitution and forfeiture of $40,000.

Jan. 13, 2020

Former Vice President of Insys Therapeutics Sentenced for Racketeering Conspiracy

The former Vice President of Managed Markets for Insys Therapeutics was sentenced today in federal court in Boston for his role in conspiring to bribe practitioners to prescribe fentanyl-based pain medication, often when medically unnecessary. Michael J. Gurry, 56, of Scottsdale, Ariz., was sentenced by U.S. District Court Judge Allison D. Burroughs to 33 months in prison, three years of supervised release, restitution to be determined at a later date, and ordered to pay approximately $3.6 million in forfeiture. The government recommended a sentence of 132 months in prison. In May 2019, Gurry was convicted by a federal jury of racketeering conspiracy along with four other Insys executives.