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Page 114 of 254

November 13, 2018

Naum Morgovsky and Irina Morgovsky were sentenced following their guilty pleas for conspiracy to illegally export components for the production of night-vision and thermal devices to Russia in violation of the Arms Export Control Act, and for laundering the proceeds of the scheme.  The defendants purchased products using their U.S. business, Hitek International, representing that the products would not be exported.  The couple then shipped the products to Moscow-based Infratech using a variety of front companies and shipping methods.  They were sentenced to 108 months and 18 months, respectively, were assessed a $1 million fine, and forfeited $223 thousand.  DOJ

Tagged in: Criminal Proceedings, Trade Agreements,

November 13, 2018

Two foreign airlines, British Airways and Iberia Airlines, have agreed to pay $5.8 million to resolve allegations brought under the False Claims Act that they falsely reported timestamps for deliveries made abroad. As part of their contracts with the United States Postal Service (USPS) to deliver U.S. mail to recipients at foreign posts, such as military bases, the airlines were required to submit accurate delivery information in order to obtain payment, but were found to have falsified that information instead. DOJ

Tagged in: Contract Non-Compliance, FCA Federal,

November 12, 2018

Following a whistleblower complaint, North Carolina-based Shaw University, and local building contractor, Freddy Novelo, have agreed to pay $316,900 to resolve allegations of violating the False Claims Act in bids for Department of Education construction contracts. To evade the department's competitive bidding requirements, the defendants had allegedly submitted false bids, then used the false bids to support their payment claims. USAO EDNC

Tagged in: FCA Federal, Grant and Research Fraud, Whistleblower Case,

November 8, 2018

For its continued failure to prevent fraudulent money transfers, MoneyGram International Inc. (MoneyGram) agreed to pay $125 million to settle allegations it violated a 2009 order with the FTC and a 2012 deferred prosecution agreement with the DOJ. Both the 2009 order and 2012 agreement had required the global money transfer business to implement certain fraud prevention measures. Instead, even though some of its locations had reached fraud rates of as high as 50%, MoneyGram allegedly failed to take action, including failing to suspend or terminate locations or employees with high fraud rates, and failing to block individuals that it should have known were committing fraud. The new settlement expands the 2009 order and 2012 agreement to apply worldwide and requires additional fraud prevention measures. DOJ; FTC; USAO MDPA

Tagged in: Financial and Investment Fraud,

November 8, 2018

The United States charged two South Korean nationals, Hyeong-won Lee and Dong-guel Lee, of defrauding the federal government in connection with two multimillion dollar construction contracts their employer, South Korea-based SK Engineering & Construction Co., Ltd., (SK), had with the U.S. Army. From 2008 to 2017, acting on behalf of SK, the two allegedly submitted fraudulent subcontracts that were based on millions of dollars of kickbacks that SK paid to a U.S. official in exchange for being awarded the contracts. While the fraud was being investigated, the two also took pains to disguise the kickbacks and fraud even further by ordering employees to burn boxes of evidence and persuading them not to testify. DOJ; USAO WDTN

Tagged in: Bribery and Bid-Rigging, Defense Contract Fraud, Government Procurement Fraud, International Whistleblowers,

November 8, 2018

Renee Christine Borunda of Greensboro, North Carolina, was sentenced to prison and ordered to make restitution to the North Carolina Medicaid program for conduct that defrauded Medicaid.  Borunda, who worked for a behavioral health services provider, used a therapist's personal information to submit false bills for behavioral services, claiming that services were provided to over 200 different Medicaid recipients when no such services were rendered.  USAO EDNC; NC

Tagged in: Criminal Proceedings, Medicaid, Medical Billing Fraud, Provider Fraud,

November 8, 2018

The United States has brought charges against UBS AG and several of its affiliates, alleging that UBS defrauded investors in connection with its sale of residential mortgage-backed securities (RMBS) in 2006 and 2007.  The complaint accuses UBS of affirmatively misleading investors and withholding crucial information from them about the quality of billions of dollars in subprime and Alt-A mortgage loans backing 40 RMBS deals. USAO EDNY; DOJ

Tagged in: FIRREA, Housing and Mortgage Fraud,

November 7, 2018

Convicted of defrauding the Medicare program, former Houston-area healthcare clinics owner Joy Aneke was sentenced to 36 months in federal prison and ordered to pay $2,760,464.57. Aneke submitted false claims for medical services that were either not performed or not authorized by a licensed physician. None of Aneke’s clinics even had equipment necessary to provide the services -- allergy testing, complex cystometrograms, anal/urinary muscle studies, and others -- for which Aneke billed Medicare. Additionally, Aneke used “recruiters” or “marketers” to encourage patients to visit her clinics, and instructed co-defendant Maureen Henshall to pay patients illegal kickbacks. DOJ  

Tagged in: Criminal Proceedings, Healthcare Fraud, Medical Billing Fraud, Medicare, Provider Fraud,

November 6, 2018

An Indiana-based dental care practice and admin support company have agreed to pay a total of $5.139 million to settle allegations they violated the federal and Indiana state False Claims Acts. According to whistleblower and qui tam plaintiff Dr. Jihaad Abdul-Majid, between 2009 and 2013, ImmediaDent of Indiana, LLC and Samson Dental Partners, LLC allegedly billed Indiana's Medicaid program for procedures that were either upcoded (i.e. represented to be more serious and more expensive than they actually were), were not actually performed, or were not medically necessary. Samson Dental Partners is additionally accused of violating Indiana’s law prohibiting the corporate practice of dentistry. Because the companies refused oversight proposed during settlement, they have now been classified as "high risk" to federal healthcare programs. IN AG; USAO WDKY

Tagged in: FCA Federal, FCA State, Healthcare Fraud, Lack of Medical Necessity, Medicaid, Medical Billing Fraud, Upcoding, Whistleblower Case, Whistleblower Rewards,

November 5, 2018

A Michigan-based patient recruiter for home health care agencies was convicted, following trial, for her role in a scheme to bill Medicare for claims arising from illegal kickbacks. Together with co-conspiring home healthcare agencies, Sophia Eggleston defrauded Medicare of $1.1 million. The scheme, which was active for at least three years, involved Eggleston soliciting and receiving kickbacks in exchange for patient referrals to co-conspirator home health agency contacts, who then submitted Medicare claims for services purportedly provided to the referred patients. Eggleston faces sentencing in February. DOJ

Tagged in: Anti-Kickback and Stark, Healthcare Fraud, Home Health and Hospice, Medicare,

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