July 9, 2020

Former CEO of Tennessee Pain Management Company Sentenced for Role in Approximately $4 Million Medicare Kickback Scheme

A Tennessee healthcare executive was sentenced to 42 months in prison followed by one year of supervised release today for his role in an approximately $4 million kickback scheme.

July 8, 2020

Hattiesburg Nurse Sentenced to Prison for Mail Fraud in Connection with Compounding Pharmacy Scheme

Hattiesburg, Miss. - Fallon Deneem Page, 37, of Hattiesburg, was sentenced today by Senior U.S. District Judge Keitih Starrett to serve 18 months in federal prison, followed by 3 years of supervised release, for mail fraud in connection with a widespread compounding pharmacy scheme, announced U.S. Attorney Mike Hurst, Special Agent in Charge Michelle Sutphin of the Federal Bureau of Investigation ("FBI") in Mississippi, and Special Agent in Charge Cyndy Bruce of the Defense Criminal Investigative Service's ("DCIS") Southeast Field Office. Page was also ordered to pay a monetary judgment of $9,500.

July 8, 2020

Hope Hospice Agrees To Pay $3.2 Million To Settle False Claims Act Liability

Fort Myers, FL - United States Attorney Maria Chapa Lopez announces today that Hope Hospice has agreed to pay the United States $3.2 million to resolve allegations that it knowingly submitted false claims to Medicare, Medicaid, and TRICARE for hospice care provided to beneficiaries who did not qualify for the service. Founded in 1979, Hope Hospice is a subsidiary of Hope Healthcare. Hope Healthcare is a not-forprofit organization that provides a variety of programs for the elderly in Lee, Hendry, and Glades Counties, including hospice and palliative care services.

July 8, 2020

Oklahoma City Hospital, Management Company, and Physician Group to Pay $72.3 Million to Settle Federal and State False Claims Act Allegations Arising from Improper Payments to Referring Physicians

OKLAHOMA CITY - Oklahoma Center for Orthopaedic and Multi-Specialty Surgery (OCOM), a specialty hospital in Oklahoma City, Oklahoma, its part-owner and management company, USP OKC, Inc. and USP OKC Manager, Inc. (collectively USP), Southwest Orthopaedic Specialists, PLLC (SOS), an Oklahoma Citybased physician group, and two SOS physicians, will pay $72.3 million to resolve allegations under the False Claims Act and the Oklahoma Medicaid False Claims Act of improper relationships between OCOM and SOS, resulting in the submission of false claims to the Medicare, Medicaid and TRI CARE programs, the Justice Department announced today.

July 7, 2020

Former Air Force Employee Facing Federal Indictment for Stealing More Than $774,000 in Government Funds

Greenbelt, Maryland -A federal grand jury has indicted Eddie Ray Johnson, Jr., age 59, of Brandywine, Maryland, on federal charges of theft of government property and money laundering. The indictment was returned on July 6, 2020.

July 7, 2020

Virginia Defense Contractor Facing Federal Indictment in Maryland for Selling Chinese-Made Body Armor and Related Goods to Federal Agencies

A federal grand jury in Maryland has returned an indictment charging Arthur Morgan, age 67, of Lorton, Virginia, with federal wire fraud charges, in connection with federal contracts to provide helmets, body armor, and other items to military and other federal entities. The indictment was returned on July 6, 2020.

July 6, 2020

North Texas Doctor To Pay $210,000 To Settle False Claims Act Allegations Of Accepting Illegal Inducements

SHERMAN, Texas - Bibi Tasleyma Sattar, D.O., and her practice, Oakmont Wellness Center, PA, (collectively, "Dr. Sattar'') have agreed to pay $210,000 to resolve False Claims Act allegations involving accepting payments for patient referrals in violation of the Anti-Kickback Statute, as well as claims otherwise improperly billed to federal healthcare programs for laboratory testing, announced Eastern District of Texas U.S. Attorney Stephen J. Cox today.

July 1, 2020

Acting Manhattan U.S. Attorney Announces $678 Million Settlement Of Fraud Lawsuit Against Novartis Pharmaceuticals Corporation For Operating Sham Speaker Programs Through Which It Paid Over $100 Million To Doctors To Unlawfully Induce Them To Prescribe No

Audrey Strauss, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Gregory E. Demske, Chief Counsel to the Inspector General of the United States Department of Health and Human Services, Office of the Inspector General (“HHS-OIG”), Scott J. Lampert, Special Agent in Charge of HHS-OIG’s New York Regional Office, Leigh-Alistair Barzey, Special Agent in Charge of the Northeast Field Office of the U.S. Department of Defense - Office of Inspector General’s Defense Criminal Investigative Service (“DCIS”), and Christopher Algieri, Special Agent in Charge the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office (“VA OIG”), announced today that the United States has settled a civil fraud lawsuit against NOVARTIS PHARMACEUTICALS CORPORATION (“NOVARTIS”), part of Swiss drug manufacturer Novartis International AG, alleging that NOVARTIS violated the federal False Claims Act and Anti-Kickback Statute by providing doctors with cash payments, recreational outings, lavish meals, and expensive alcohol to induce them to prescribe NOVARTIS cardiovascular and diabetes drugs reimbursed by federal healthcare programs.Specifically, the Government alleged that NOVARTIS organized tens of thousands of sham educational events at high-end restaurants and other venues, paid exorbitant speaker fees to doctors who gave no meaningful presentations, and provided expensive meals and alcohol to doctor attendees and their guests. When those doctors then prescribed NOVARTIS’s cardiovascular and diabetes drugs, federal healthcare programs paid hundreds of millions of dollars in reimbursements for these tainted prescriptions. As part of the settlement, approved today by U.S. District Judge Paul G. Gardephe, NOVARTIS will pay the United States and various States a total of $678 million. NOVARTIS also made extensive factual admissions in the settlement and agreed to strict limitations on any future speaker programs, including reductions to the amount it may spend on such programs.

June 26, 2020

Acting U.S. Attorney Announces Extradition Of Belgian Man Charged In $8 Million Aircraft Part Fraud Scheme

Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that STEFAN GILLIER, a/k/a “Stephan Gillier,” a/k/a “Stefan R.R. Gillier,” a/k/a “Roland Gillier,” a/k/a “Roland Van Gorp,” a Belgian citizen, was extradited today from Italy to the United States. GILLIER was arrested on May 26, 2019, for engaging in a scheme in which he and a co-conspirator fraudulently obtained millions of dollars’ worth of aircraft parts through two aircraft part dealerships that they operated, RTF International, Inc. (“RTF”), and UN Air Service, Inc. (“UAS”). GILLIER is expected be presented this afternoon in Manhattan federal court before Chief U.S. Magistrate Judge Gabriel W. Gorenstein. GILLIER’s case is assigned to U.S. District Judge Richard M. Berman.

June 24, 2020

Three Defendants Plead Guilty in $65 Million Health Care Fraud; Additional Charges Brought Against Alleged Ringleaders

Three former U.S. service members pleaded guilty in federal court today, admitting their roles in a fraud scheme that bilked the military healthcare program known as TRICARE out of more than $65 million. Kyle Adams, Daniel Castro and Jeremy Syto are scheduled to be sentenced September 11, 2020 before U.S. District Court Judge Janis L. Sammartino. At the same time, the alleged ringleaders of this scheme were charged with additional crimes. Jimmy and Ashley Collins, a civilian married couple living in Cleveland, Tennessee, were originally charged in January 2018. They were charged on June 9, 2020 with additional crimes related to their operation of the scheme that cheated the health care program that covers United States military service members, retirees, and their dependents.