Dec. 4, 2023

Three Military Contractors Sentenced in Procurement Fraud Scheme

A federal judge in the Northern District of Georgia has sentenced three military contractors for their roles in a multi-year procurement fraud scheme related to more than $7 million in federal government contracts.

Nov. 30, 2023

Five defendants convicted of health care kickback conspiracy

Five defendants, including laboratory executives and hospital executives, were found guilty of conspiring to violate the Anti-Kickback Statute, announced U.S. Attorney Damien M. Diggs today. Susan L. Hertzberg, 65, of New York, New York; Matthew John Theiler, 57, of Mars, Pennsylvania; David Weldon Kraus, 65, of Loudon, Tennessee; Thomas Gray Hardaway, 51 of San Antonio, Texas; and Jeffrey Paul Madison, 48, Georgetown, Texas, were found guilty by a jury on November 30, 2023, following a seven-week-long trial before U.S. District Judge Jeremy D. Kernodle.

Nov. 27, 2023

Telemedicine Nurse Practitioner Pleads Guilty to $7.8 Million Durable Medical Equipment Fraud Scheme

A Virginia-based nurse practitioner pleaded guilty today in federal court in Boston in connection with a $7.8 million telemedicine fraud scheme involving medically unnecessary durable medical equipment, including orthotics such as back and knee braces.

Nov. 20, 2023

Virginia tactical gear & equipment company agrees to pay more than $2 million to settle allegations related to Buy American Act

U.S. Attorney Kenneth L. Parker today announced that a Virginia-based tactical gear and equipment company has agreed to pay nearly $2.1 million to resolve False Claims Act allegations that it failed to comply with the requirements of the Buy American Act ("BAA"), Trade Agreements Act ("TAA'') and Berry Amendment when selling textile-based products to the Department of Defense. London Bridge Trading Company, Ltd. ("LBT") entered the settlement with the United States and qui tam relator Ann Keating.

Nov. 14, 2023

Former Navy Civilian Employee and Defense Contractor Indicted in Bribery Scheme

A federal grand jury has indicted a former civilian employee of the Naval Information Warfare Center in San Diego and the owner of a Virginia-based defense contractor for a bribery scheme. According to the indictment, Phillip Flores, owner of lntellipeak Solutions, bribed James Soriano, the former employee, with free dinners at San Diego restaurants including De Medici Cucina, the University Club and Bluewater Boathouse Grill and Ruth's Chris in Virginia as well as tickets to the 2018 World Series and the 2019 Super Bowl.

Nov. 14, 2023

Three Men Sentenced for $54M Fraudulent Prescriptions Scheme

Three men were sentenced today in connection to a $54 million bribery and kickback scheme involving TRICARE, a federal program that provides health insurance benefits to active duty and retired service members and their families. David Byron Copeland, 55, of Tallahassee, Florida, was sentenced to four years and three months in prison following his conviction at trial in June for paying and receiving health care kickbacks. James Wesley Moss, 60, of Huntsville, Alabama, and Michael Gordon, 60, of Fort Myers, Florida, were sentenced to two years and three months and one year and six months in prison, respectively, following their guilty pleas to a kickback and fraud conspiracy, among other charges.

Nov. 9, 2023

Providence VA Service Representative Indicted on Federal Extortion, Bribery, Witness Tampering Charges

An indictment unsealed in federal court in Providence today charges Michael Darrah, a benefits service representative with the U.S. Department of Veterans' Affairs in Providence, with three counts of bribery and one count each of extortion, gratuity received by a public official, and witness tampering, announced United States Attorney Zachary A. Cunha. It is alleged in the indictment that Darrah, 45, of Taunton, MA., solicited and accepted bribes from veterans and the family member of a veteran to approve requested dependent care benefits and/or disability benefits.

Nov. 8, 2023

Former Defense Contractor in Tomah Receives 15-Month Prison Sentence & $10,000 Fine For Wire Fraud

Timothy M. O'Shea, United States Attorney for the Western District of Wisconsin, announced that Jonathan Walker, 46, Tomah, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 15 months in federal prison for wire fraud. The prison term will be followed by one year of supervised release. Judge Peterson also ordered Walker to pay restitution in the amount of $72,000 and to pay a fine of $10,000. Judge Peterson ordered Walker to report to prison on January 4, 2024.

Nov. 7, 2023

Active-Duty Air Force Member Agrees To Pay Treble Damages To Resolve False Claims Act Allegations Relating To Fraudulent Paycheck Protection Program Loan

Eglin Air Force Base active-duty member, Lazarus Wallace, has agreed to settle allegations that he violated the False Claims Act ("FCA") by knowingly providing false information in support of a Paycheck Protection Program ("PPP") loan. Wallace agreed to pay $63,327.54 in treble damages under the FCA. The settlement was announced by Jason R. Coody, United States Attorney for the Northern District of Florida. "Serving our nation as a member of the military is a position of honor, deserving of high esteem," said U.S. Attorney Coody. "The fraudulent acts of this individual are incompatible with such service. We remain committed to hold accountable all who abused this crisis-based loan system."

Nov. 7, 2023

Former San Antonio Health Services Employee Sentenced for Receiving Kickbacks

A San Antonio woman was sentenced in a federal court today to 10 years of probation and fined $200,000 for two charges related to healthcare kickbacks. According to court documents, from June 2014 to April 2019, Amber Ashley Price, 40, engaged in a conspiracy to pay and receive kickbacks in return for sending prescriptions to specific pharmacies. Some prescriptions were paid for by federal insurance programs including Medicare, Medicaid, the Federal Employees Health Benefits (FEHB) Program, and TRICARE. Price, an employee of Kindred Home Health, would also refer patients to other home health agencies in the San Antonio area for a kickback payment. At least some of the patients referred were Medicare beneficiaries.