June 29, 2022

Sandy Springs man sentenced for Tricare and Medicare fraud scheme

Brett Sabado has been sentenced for his role in a scheme to defraud Tricare and Medicare by submitting fraudulent claims for compound medications and durable medical equipment (DME). Sabado also agreed to pay $950,000 as part of an “ability to pay” civil settlement in order to resolve violations of the False Claims Act for causing false claims for DME to be submitted to the Medicare Program.

June 29, 2022

Moriarty man found guilty in fraud scheme

Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that a federal jury returned a guilty verdict on Milton Boutte, 77, of Moriarty, New Mexico, on June 27. The jury convicted Boutte of conspiracy to defraud the United States and conspiracy to commit wire fraud. Boutte will remain on conditions of release pending sentencing, which has not been scheduled.

June 28, 2022

Fifteen Texas Doctors Agree to Pay over $2.8 Million to Settle Kickback Allegations

Fifteen additional Texas doctors have agreed to pay a total of $2.83 million to resolve False Claims Act allegations involving illegal kickbacks in violation of the Anti-Kickback Statute and Stark Law, and to cooperate with the Department of Justice’s investigations of and litigation against other parties.

June 27, 2022

More charges filed in fraud and kickback scheme

A 56-year-old woman has been taken into custody on charges related to a healthcare fraud and kickback scheme, announced Jennifer B. Lowery.

June 23, 2022

Charlotte Doctor Is Indicted For $11 Million Durable Medical Equipment Scheme

A Charlotte doctor is facing federal charges for her role in a durable medical equipment (DME) scheme that defrauded federal benefits programs of more than $11 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Sudipta Mazumder, 46, of Charlotte, is charged with one count of health care fraud and six counts of making false statements relating to health care matters.

June 23, 2022

Military contractors indicted for $7 million procurement fraud scheme

A federal grand jury has indicted a company and three individuals in an alleged fraud scheme involving military contracts totaling over $7 million. The three-count indictment charges Envistacom LLC, its President Alan Carson, a vice president Valerie Hayes, and the owner of another company, Philip Flores, each with one count of conspiracy to defraud the United States and two counts of major fraud.

June 17, 2022

Government Official Pleads Guilty to Accepting Bribes

A General Services Administration (GSA) Contracting Official pleaded guilty today to accepting bribes. According to court documents, beginning in approximately December of 2015 and continuing through August 2019, Charles W. Jones, 59, of Staunton, accepted bribes from government contractors in return for awarding federal contracts to Contractors USA and SDC Contracting LLC. Jones was employed as a Supervisory Construction Control Representative with the GSA in Richmond.

June 14, 2022

KBR Defendants Agree to Settle Kickback and False Claims Allegations

Kellogg Brown & Root Services Inc., headquartered in Houston, and three other companies have agreed to a settlement of $13.67 million to resolve a lawsuit seeking damages and penalties for alleged violations of the False Claims Act and the Anti-Kickback Act, and for breach of contract. The four named defendants are: Kellogg Brown & Root Services Inc., Kellogg Brown & Root Inc., Kellogg Brown & Root LLC, and Overseas Administration Services Ltd. (collectively KBR). The settlement amount includes a payment of $12 million by KBR, in addition to $1.67 million in contract restitution that KBR previously paid to the United States relating to the subcontracts at issue in the lawsuit.

June 10, 2022

Stock Trader Pleads Guilty to Defrauding Investors in Medical Technology Company

A California man pleaded guilty yesterday in connection with a scheme to defraud investors in a publicly traded company’s securities and manipulate the company’s stock price.

June 10, 2022

Scotts Valley Resident Pleads Guilty To Defrauding Investors In Medical Technology Company

A California man pleaded guilty yesterday in connection with a scheme to defraud investors in a publicly traded company’s securities and manipulate the company’s stock price. According to court documents, Jason Nielsen, 48, of Scotts Valley, was a large shareholder of Arrayit, a publicly traded medical device company based in California. From approximately 2019 through April 2020, Nielsen engaged in an unlawful “scalping” and “spoofing” scheme to manipulate the price of Arrayit securities. Nielsen used online message boards to publicly post false and misleading information about the nature of his trading in Arrayit securities, in order to induce others to purchase Arrayit securities and thereby drive up the stock’s price, a practice known as “scalping.”