Dec. 10, 2020

Eastern District of Texas Announces Partnership with the Antitrust Division to Protect Competition in Marketplace

Today the Eastern District of Texas and the Antitrust Division announced charges against a former healthcare staffing company for conspiring to fix prices to the detriment of the American labor market. Additionally, the Eastern District of Texas has recently joined the Antitrust Division in the Department of Justice Procurement Collusion Strike Force (PCSF). Together, the Eastern District of Texas and the Antitrust Division will continue to pursue enforcement actions to promote competition and protect the marketplace.

Dec. 9, 2020

Former Sales Representative Admits Role in Compounded Prescription Drug Scheme

A former sales representative today admitted his role in a scheme to defraud a New Jersey state health benefits program, U.S. Attorney Craig Carpenito announced. Thomas Bowers, 46, of Little Falls, New Jersey, pleaded guilty by videoconference before U.S. District Judge William J. Martini to an information charging him with conspiracy to commit health care fraud.

Dec. 7, 2020

Fraudsters Who Stole Protected Health Information to Fund Spending Spree Plead Guilty

SHERMAN, Texas - Two individuals have pleaded guilty to conspiracy to obtain information from a protected computer in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today. Demetrius Cervantes, 46, of McKinney, Texas, and Amanda Lowry, 40, of Sherman, Texas, pleaded guilty to conspiracy to obtain information from a protected computer on Dec. 3, 2020, before U.S. Magistrate Judge Christine A. Nowak. Their co-conspirator, Lydia Henslee, 29, of Denison, Texas, faces additional charges.

Dec. 4, 2020

Defense Contractor and Employees Plead Guilty to Fraud Scheme

A Hampton-based business owner and four employees have all pleaded guilty to engaging in an extensive procurement fraud scheme involving millions of dollars in government contracts targeting the Department of Defense and other federal government agencies. According to court documents, from 2011 to 2018, Iris Kim, Inc., (aka I-Tek) owner Beyung S. Kim, 61, of Newport News, and employees Seung Kim, 30, of Newport News, Dongjin Park, 53, of Yorktown, Chang You, 61, of Yorktown, Pyongkon Pak, 53, of Toano, and Li-Ling Tu, 57, of China, engaged in a conspiracy and scheme related to certain government contracts for which I-Tek acted as a supplier of goods, including items for the U.S. Marine Corps, U.S. Army, U.S. Coast Guard, and the National Guards of various states, among other agencies.

Dec. 4, 2020

Durable Medical Equipment Manufacturer and Orthotics Provider Agree to Pay $1.59 Million to Resolve False Claims Act Allegations

National durable medical equipment manufacturer Joint Active Systems, Inc. (JAS) has agreed to pay $1 .5 million, and orthotics and prosthetics clinic chain New England Orthotics & Prosthetics, LLP (NE OPS) has agreed to pay $90,000, to resolve allegations that they violated the False Claims Act by improperly charging the government for custom fabricated orthotics. NE OPS, which has locations throughout New England and New York, filed for bankruptcy in 2017, and is now under new ownership.

Dec. 3, 2020

Workrite Companies to Pay $7.1 Million to Settle Alleged Furniture Overcharges

Ergonomic office furniture maker Workrite Ergonomics LLC, a Delaware company, and its parent, Knape & Vogt Manufacturing Co. (collectively, Workrite), have agreed to pay $7.1 million to resolve allegations under the False Claims Act that they overcharged the federal government for office furniture under General Services Administration (GSA) contracts, the Department of Justice announced today.

Nov. 19, 2020

Judge Sends Two to Federal Prison for Stealing and Selling more than $2.4 Million Worth of Sensitive U.S. Military Equipment from Camp Mabry

Calling it "the ultimate breach of trust," U.S. District Judge Lee Yeakel sentenced 36-year-old former U.S. Property and Fiscal Office Program Analyst Joseph Mora and 27-year-old former Texas Army National Guardsman Cristal Avila to three years and two years in federal prison, respectively, for selling on the internet over $2.4 million in sensitive military equipment stolen from Camp Mabry in Austin, announced U.S. Attorney Gregg N. Sofer; Department of Defense Criminal Investigative Service (DCIS) Special Agent in Charge Michael Mentavlos, Southwest Field Office; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio; U.S. Army Criminal Investigation Command (Army CID) Special Agent in Charge Ray Rayos, Southwestern Fraud Field Office; and, U.S. Postal Inspection Service (USPIS) Inspector in Charge Adrian Gonzalez, Houston Division.

Nov. 18, 2020

Jefferson County Doctor Convicted of Health Care Fraud Violations

A 43-year-old physician practicing in Beaumont has been found guilty of federal health care fraud violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today. Grigoriy T. Rodonaia, of Port Neches, Texas, was convicted by a jury this afternoon of 12 counts of health care fraud, three counts of aggravated identity theft, one count of making a false statement, and two counts of accepting kickbacks. The guilty verdict came following a four-day trial before U.S. District Judge Marcia Crone.

Nov. 17, 2020

Environmental lab analyst enters guilty plea to falsifying test results charge

U.S. Attorney Justin Herdman announced today that Andrew K. Ecklund, age 57, of Tallmadge, entered a plea of guilty to an indictment charging him with nine counts of wire fraud.

Nov. 12, 2020

Justice Department’s Procurement Collusion Strike Force Announces Eleven New National Partners

The Justice Department announced today that the Procurement Collusion Strike Force (PCSF) is adding 11 new national partners to the Strike Force, for a total of 29 agencies and offices committed on the national level to combatting collusion, antitrust crimes and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.