Oct. 6, 2023

SDTX and RI USAOs jointly resolve False Claims Act violation

U.S. Attorney's Offices in two districts have resolved a civil investigation into RPS Group Inc, a global professional services firm, that will result in a recovery of over $465,000, announced U.S. Attorney Alamdar S. Hamdani and Zachary A. Cunha, U.S. Attorneys for the Southern District of Texas and Rhode Island, respectively. RPS Group Inc. held several contracts with the federal government. Between June 2011 and July 2020, in order to maximize revenue and avoid hitting budgetary ceilings, the company unlawfully engaged in a practice of moving recorded labor hours between government projects with different funding sources, according to the allegations in the investigation. RPS also allegedly submitted invoices for work that was not performed on government contracts and falsely inflated employee billing rates. These practices occurred across numerous government contracts and resulted in the submission of false invoices to multiple government agencies, according to the allegations.

Oct. 5, 2023

U.S. Attorney's Offices in Rhode Island and Southern District of Texas Resolve Violation of False Claims Act Recovering More Than $465,000

The United States Attorney's Offices for the District of Rhode Island and the Southern District of Texas have resolved a civil investigation into RPS Group, Inc, a global professional services firm, that will result in a recovery of over $465,000, announced United States Attorneys Zachary A. Cunha and Alamdar S. Hamdani.

Oct. 5, 2023

Laredo ophthalmologist charged in repetitive harmful eye procedure fraud scheme

A 54-year-old Austin resident has been indicted for health care fraud and money laundering, announced U.S. Attorney Alamdar S. Hamdani. Dr. Michael Hochman made his initial appearance today and is set for arraignment Oct. 12 before U.S. Magistrate Judge Christopher dos Santos. A federal grand jury returned the five-count indictment Sept. 27. According to court documents, Hochman is an ophthalmologist who owned and operated Michael A. Hochman P.A. and Laredo Laser & Surgery Ltd. in Laredo.

Oct. 5, 2023

Over One Million Rounds of Ammunition Seized En Route from Iran to Yemen Transferred to Ukrainian Armed Forces

On Oct. 2, the United States transferred approximately 1.1 million 7.62mm rounds of ammunition to the Ukrainian armed forces. This ammunition had been seized by U.S. Central Command naval forces from a flagless vessel in the Arabian Sea enroute from Iran and destined for Yemen, where sanctioned groups including Iran's Islamic Revolutionary Guard Corps (IRGC) directly support the Houthi movement. The Justice Department then filed a civil forfeiture action against the seized munitions, resulting in a July 20 order by the U.S. District Court for the District of Columbia transferring title to the United States.

Oct. 4, 2023

Rochester man sentenced for falsifying documents submitted to the Army

U.S. Attorney Trini E. Ross announced today that Reginald Cannon, 55, of Rochester, NY, who was convicted of wire fraud, was sentenced to two years' probation, fined $200,000, and ordered to pay restitution totaling $315,944.

Oct. 2, 2023

Two Anne Arundel County Men, Including Department of Defense Deputy Chief, Charged with Facilitating Dog Fighting Ring

A federal criminal complaint has been filed charging Frederick Douglass Moorefield, Jr., age 62, of Arnold, Maryland, and Mario Damon Flythe, age 49, of Glen Burnie, Maryland with promoting and furthering animal fighting venture. The criminal complaint was filed on September 21, 2023, and was unsealed at the defendants' initial appearances on September 28, 2023. At their initial appearance, U.S. Magistrate Judge J. Mark Coulson ordered that the defendants be released pending trial under the supervision of U.S. Pretrial Services.

Sept. 30, 2023

United States Settles Kickback Allegations with Specialty Pharmacy BioTek reMEDys, Inc., its Owner Chaitanya Gadde, and Dr. David Tabby

United States Attorney Jacqueline C. Romero announced today that BioTek reMEDys, Inc. ("BioTek"), located in New Castle, Delaware, and its Chief Executive Officer, Chaitanya Gadde, have agreed to pay $20 million based on BioTek's ability to pay to resolve allegations that they violated the False Claims Act and the Anti-Kickback Statute by paying kickbacks to patients in the form of routinely waived copayments and to physicians in exchange for providing patient referrals to BioTek.

Sept. 29, 2023

Behavioral Services Healthcare Provider and its Owner Settle False Claims Act Allegations

Connex Family Services, LLC (Connex), located in Warrenton, and Bianca Riddle, 33, a resident of Gloucester, have agreed to pay $918,000 to settle a civil fraud case that claimed Connex and Riddle submitted or caused false claims to be submitted to Medicaid and TRICARE. The government alleged that Connex and Riddle submitted claims to TRICARE and Medicaid for applied behavioral analysis services that were not provided during the period from March 1, 2019, through November 13, 2021. Connex's behavioral analysis services are provided to children who have been diagnosed with Autism Spectrum Disorder and other related disorders.

Sept. 29, 2023

San Antonio Business Owner and Associates Arrested for Defrauding SBA Program

A Converse man and six alleged co-conspirators were arrested this week on criminal charges related to their alleged conspiracy to commit wire fraud. According to court documents Aaron Sams, 39, owns and operates Sams Contracting Consulting and Training LLC. The indictment alleges he used his business to advertise and market a service to historically underutilized business zone (HUBZone) companies. HUBZone is a Small Business Administration (SBA) program designed to provide federal contracting assistance for qualified small businesses to increase employment opportunities, investment and economic development in such areas. The program gives preferences in government contracting to businesses that qualify as a HUBZone small business.

Sept. 29, 2023

South Carolina Physician and Nephrology Practice Agree to Pay Over $585,000 to Settle Laboratory Kickback Allegations

Moustafa Moustafa, M.D. and his medical practice, South Carolina Nephrology and Hypertension Center Inc., of Orangeburg and Bamberg, South Carolina, have agreed to pay $585,540 to resolve False Claims Act allegations that they received illegal kickbacks in violation of the Anti-Kickback Statute in return for referring patients for laboratory testing. Dr. Moustafa and his practice have agreed to cooperate with the Justice Department's investigations of, and litigation against, other participants in the alleged kickback schemes.