DOJ’s First Criminal Securities Fraud Prosecution Related to COVID-19 Results in Eight-Year Sentence -
Mark Schena, the former president of Arrayit Corporation, a Silicon Valley-based medical technology company, was...more
10/23/2023
/ Conspiracies ,
Coronavirus/COVID-19 ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Emergency Use Authorization (EUA) ,
False Claims Act (FCA) ,
False Statements ,
Food and Drug Administration (FDA) ,
Healthcare Fraud ,
Investors ,
Kickbacks ,
Medicaid ,
Medical Technology Companies ,
Medicare Fraud ,
Restitution ,
Securities Fraud ,
Sentencing ,
Settlement ,
TRICARE ,
Wire Fraud
Federal Judge Rules Government Must Demonstrate “But-For” Causation for Anti-Kickback Statute Claims -
On September 27, 2023, Chief Judge Dennis Saylor of the US District Court for the District of Massachusetts ruled that...more
10/9/2023
/ Anti-Kickback Statute ,
But For Causation ,
Convictions ,
Department of Justice (DOJ) ,
False Claims Act (FCA) ,
Healthcare Fraud ,
Home Health Care ,
Medicare ,
Medicare Fraud ,
Money Laundering ,
Settlement ,
Summary Judgment ,
Unjust Enrichment ,
Wire Fraud
Lab Owner Sentenced to Over 16 Years for Health Care Fraud, Money Laundering -
On September 26, 2023, a US District Judge for the Western District of North Carolina sentenced a Charlotte lab owner, Donald Booker, to over...more
10/2/2023
/ Criminal Convictions ,
Department of Justice (DOJ) ,
Gift-Cards ,
Healthcare Fraud ,
Kickbacks ,
Medicaid ,
Medicare Fraud ,
Money Laundering ,
Sentencing ,
Wire Fraud ,
Witness Tampering
Arkansas Men Convicted in $18 Million Global Investment Fraud Conspiracy -
A federal jury in the Western District of Arkansas convicted four men of conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money...more
9/11/2023
/ Compliance ,
Conspiracies ,
Criminal Convictions ,
Cybersecurity ,
Department of Justice (DOJ) ,
False Claims Act (FCA) ,
False Documentation ,
Financial Institutions ,
Fraud ,
General Services Administration (GSA) ,
Independent Investigations ,
Investment ,
IRS ,
Money Laundering ,
Penalties ,
Popular ,
Restitution ,
Settlement ,
Tax Fraud ,
Tax Returns ,
Verizon ,
Wire Fraud
Recent Filings Shed Light on DOJ’s View of Supreme Court’s Recent FCA Ruling -
On June 1, 2023, the US Supreme Court explained that an assessment of a defendant’s subjective beliefs — rather than what an objectively...more
6/19/2023
/ Chief Compliance Officers ,
Criminal Convictions ,
Department of Justice (DOJ) ,
False Claims Act (FCA) ,
Fraud ,
Healthcare Fraud ,
IRS ,
Medicare ,
Opioid ,
Pharmacies ,
Pharmacist ,
Scienter ,
SCOTUS ,
Tax Fraud ,
Wire Fraud
Court Unseals Charges Alleging Nearly $15 Million in Fraudulent PPP Loans -
Earlier this week, federal prosecutors in the Southern District of New York announced the unsealing of a criminal complaint charging six...more
6/12/2023
/ Criminal Conspiracy ,
False Claims Act (FCA) ,
Falsified Documents ,
Financial Institutions ,
Fraud ,
IRS ,
Kickbacks ,
Medicaid ,
Medicare ,
Paycheck Protection Program (PPP) ,
SCOTUS ,
Sentencing ,
Tax Returns ,
US ex rel Tracy Schutte et al v SuperValu Inc et al ,
Wire Fraud
Surgeon To Pay Up to $43 Million for FCA Fraud -
A Michigan vascular surgeon, Vasso Godiali, was sentenced to 80 months in prison for defrauding health care programs in connection with his submission of false claims for...more
5/30/2023
/ Blue Cross ,
Blue Shield ,
Coronavirus/COVID-19 ,
Criminal Convictions ,
False Claims Act (FCA) ,
Fraud ,
Healthcare ,
Investors ,
Medicaid ,
Medicare ,
Paycheck Protection Program (PPP) ,
Wire Fraud
Florida Doctor Receives 20-Year Prison Sentence for Substance Abuse Treatment Fraud -
Following a guilty plea to conspiracy to commit health care and wire fraud, a Florida doctor was sentenced to 20 years in prison for...more
1/16/2023
/ CARES Act ,
Criminal Convictions ,
Drug Treatment ,
False Claims Act (FCA) ,
FIRREA ,
Fraud ,
Healthcare Fraud ,
Mail Fraud ,
Paycheck Protection Program (PPP) ,
Settlement ,
Substance Abuse ,
Telemarketing ,
Wire Fraud
Former Theranos Executive Ramesh “Sunny” Balwani Sentenced to Nearly 13 Years -
On December 7, 2022, Ramesh “Sunny” Balwani, a former Theranos executive, was sentenced to nearly 13 years in prison, and three years of...more
DOJ Announces $3.3 Billion Cryptocurrency Seizure and Fraud Conviction -
On Friday, November 4, James Zhong pled guilty to committing wire fraud in September 2012, when he allegedly executed a scheme to defraud “Silk...more
Headlines that Matter for Companies and Executives in Regulated Industries-
Amici Seek Dismissal of Qui Tam Suit From High Court -
Various medical, business and legal organizations are asking the US Supreme Court to...more
10/28/2022
/ Amicus Briefs ,
Anti-Money Laundering ,
Coronavirus/COVID-19 ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
False Claims Act (FCA) ,
Fraud ,
Healthcare Fraud ,
Indictments ,
Motion to Dismiss ,
Paycheck Protection Program (PPP) ,
Qui Tam ,
Whistleblowers ,
Wire Fraud
OIG Warns That Proposed Drug Discounts May Warrant Sanctions -
On October 5, the US Department of Health and Human Services’ Office of Inspector General (OIG) issued an advisory opinion assessing a proposal that involved...more
10/10/2022
/ Anti-Competitive ,
Anti-Kickback Statute ,
Bid Rigging ,
Bribery ,
Caltrans ,
Contractors ,
Coronavirus/COVID-19 ,
Criminal Convictions ,
Discounts ,
Drug Pricing ,
Economic Injury Disaster Loans ,
False Statements ,
Fraud and Abuse ,
Healthcare Fraud ,
IRS ,
Medicare ,
Medicare Part D ,
OIG ,
Sanctions ,
Tyson Foods ,
Wire Fraud
EmpiresX Head Trader Pleads Guilty to $100M Cryptocurrency Investment Fraud Scheme -
On September 8, 2022, the “Head Trader” for EmpiresX, a purported cryptocurrency platform, pled guilty to one count of conspiracy to...more
9/16/2022
/ Bid Rigging ,
Criminal Conspiracy ,
Cryptocurrency ,
Fraud ,
Investment Fraud ,
Mail Fraud ,
Misrepresentation ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Sherman Act ,
Theranos ,
Wire Fraud
Medical Technology Company President Convicted for Participation in $77 Million COVID-19 and Allergy Testing Scheme -
On September 1, 2022, the president of Arrayit Corporation, a medical technology company in Silicon...more
9/9/2022
/ Bribery ,
Coronavirus/COVID-19 ,
Criminal Convictions ,
Disclosure Requirements ,
False Claims Act (FCA) ,
Food and Drug Administration (FDA) ,
Investors ,
Kickbacks ,
Medical Technology Companies ,
Medicare ,
Prison ,
Puerto Rico ,
Securities and Exchange Commission (SEC) ,
Wire Fraud
Former Portfolio Manager Convicted in Bond Fraud Trial -
On Friday, August 12, 2022, Daniel Small — a former portfolio manager for Platinum Partners LP (Platinum) — was convicted of securities fraud and conspiracy to...more
Khadijah Chapman of Georgia, Daniel Labrum of Utah, and Eric O’Neil of Connecticut were all charged in separate indictments with submitting fraudulent Paycheck Protection Program (PPP) loan applications. According to the DOJ,...more
8/15/2022
/ Anti-Money Laundering ,
Bank Fraud ,
Bank Secrecy Act ,
BSA/AML ,
Coronavirus/COVID-19 ,
Criminal Conspiracy ,
Criminal Convictions ,
Crypto Exchanges ,
Department of Justice (DOJ) ,
Healthcare Fraud ,
Indictments ,
Paycheck Protection Program (PPP) ,
Wire Fraud
Jury Orders Eli Lilly To Pay $61 Million -
A federal jury in Illinois found that, beginning around 2004, drug manufacturer Eli Lilly deliberately underpaid rebates to Medicare programs by excluding retroactive drug prices...more
8/8/2022
/ Coronavirus/COVID-19 ,
Department of Justice (DOJ) ,
False Claims Act (FCA) ,
Falsified Documents ,
Fraud ,
Healthcare Fraud ,
Kickbacks ,
Medicaid ,
Medicare ,
Medicare Fraud ,
Paycheck Protection Program (PPP) ,
Rebates ,
SBA ,
Skilled Nursing Facility ,
Wire Fraud
Ramesh “Sunny” Balwani, Former Theranos President and COO, Found Guilty on All Twelve Fraud Counts in High-Profile Trial -
On July 7, 2022, a federal jury in the Northern District of California found Ramesh “Sunny”...more
7/11/2022
/ Administrative Law Judge (ALJ) ,
Appeals ,
Corruption ,
Criminal Conspiracy ,
Criminal Convictions ,
Cyber Crimes ,
Cybersecurity ,
Department of Justice (DOJ) ,
En Banc Review ,
Enforcement ,
False Claims Act (FCA) ,
Fraud ,
Kickbacks ,
Securities and Exchange Commission (SEC) ,
Settlement ,
Theranos ,
Unconstitutional Condition ,
Wire Fraud
KBR Reaches $13 Million Settlement To Resolve Kickback Allegations -
Kellogg Brown & Root Services Inc. and three related companies (collectively “KBR”) reached a $13.67 million settlement to resolve a suit alleging...more
6/17/2022
/ Army ,
Department of Justice (DOJ) ,
Environmental Protection Agency (EPA) ,
False Claims Act (FCA) ,
FIFRA ,
Investment Fraud ,
KBR (formerly Kellogg Brown & Root) ,
Kickbacks ,
Mail Fraud ,
Money Laundering ,
Qui Tam ,
Settlement ,
Subcontracts ,
Wire Fraud
DOJ and SEC Bring Charges Against Executive in Alleged $62 Million Global Crypto Investment Fraud Scheme -
On May 6, 2022, the Department of Justice (DOJ) announced that a federal district court in the Southern District of...more
Archegos Executives Charged With Conspiring To Defraud Banks Out of Billions -
On Wednesday, April 27, 2022, the US Attorney’s Office for the Southern District of New York unsealed an indictment charging Sung Kook “Bill”...more
4/29/2022
/ Banks ,
Civil Monetary Penalty ,
Coronavirus/COVID-19 ,
Disclosure Requirements ,
Fraud ,
Hedge Funds ,
Insurance Claims ,
Insurance Fraud ,
Racketeering ,
Securities Fraud ,
Wire Fraud
The DOJ announced charges against 21 people across nine federal districts for their alleged role in pandemic-related fraud schemes resulting in over $149 million in false billings to federal programs. This is the largest...more
4/22/2022
/ Centers for Medicare & Medicaid Services (CMS) ,
Coronavirus/COVID-19 ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
False Billing ,
Foreign Corrupt Practices Act (FCPA) ,
Fraud ,
Medicare ,
Moderna Inc. ,
Political Candidates ,
Political Contributions ,
Securities Fraud ,
Vaccinations ,
Virus Testing ,
Wire Fraud
Four Indicted for $16 Million Money Laundering Scheme -
On March 23, 2022, an indictment was unsealed in the Western District of Arkansas, charging four men for their involvement in wire fraud and money laundering schemes...more
3/28/2022
/ Anti-Money Laundering ,
CARES Act ,
Coronavirus/COVID-19 ,
Criminal Conspiracy ,
Department of Justice (DOJ) ,
Economic Injury Disaster Loans ,
False Claims Act (FCA) ,
Indictments ,
Investment Fraud ,
Money Laundering ,
SBA ,
UPS ,
USPS ,
Visa Fraud ,
Wire Fraud
Millennial Couple Faces Twenty Years in Prison for Largest DOJ Bitcoin Seizure in History -
On February 7, 2022, authorities arrested a husband and wife in their 30s, Ilya Lichtenstein and Heather Morgan, accused of...more
2/11/2022
/ Asset Seizure ,
Bitcoin ,
Criminal Conspiracy ,
Criminal Convictions ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Federal Trade Commission (FTC) ,
Healthcare ,
Healthcare Fraud ,
Indictments ,
Money Laundering ,
Non-Fungible Tokens (NFTs) ,
Terrorist Financing ,
U.S. Treasury ,
Wire Fraud
Florida Surgeon Who Saved Rapper 50 Cent’s Life Is Sentenced to Seven Years Imprisonment for Fraudulent Insurance Billing -
In 2000, a Florida doctor, Moses deGraft-Johnson, was one of the surgeons who operated on 50 Cent...more