Criminal Proceedings Archives - Page 2 of 37

Scoundrel Spotlight - George Thomas Dave (“GT Dave”)

Posted 08/8/23

This week’s Scoundrel in the Spotlight is George Thomas Dave (“GT Dave”), the billionaire king of kombucha. His company GT’s Living Foods has saturated the fermented tea and beverage market with its Synergy branded drinks to the tune of $275 million per year. GT Dave professes to have a higher purpose. The company mission statement, according to its website, is to “share the gift of Kombucha in its...

Tagged in: Criminal Proceedings,

Scoundrel Spotlight - The Grenon Family

Posted 07/21/23

Bottle of Green Liquid with Empty Bottles Around

This week's Scoundrel in the Spotlight is Mark Grenon and his three sons, Jonathan, Joseph, and Jordan. As reported in the Miami Herald, on Wednesday (July 19) a Florida jury convicted them for selling a toxic bleach solution as a miracle cure out of a fake online church. They called it a "Miracle Mineral Solution" and pitched it as a cure for 95% of the world's diseases from AIDS to COVID-19. The jury returned...

Tagged in: Criminal Proceedings,

July 14, 2023

The former CEO of SPAC African Gold Acquisition Corp., Cooper J. Morgenthau, has been ordered to pay over $5 million in disgorgement with prejudgment interest to the SEC for stealing more than $5 million from the company and investors via unauthorized withdrawals, which he disguised through falsified documents to auditors and accountants. In a related criminal action, Morganthau was sentenced to 3 years in prison, ordered to forfeit over $5 million, and pay over $5 million in restitution. SEC

Tagged in: Criminal Proceedings, Financial and Investment Fraud,

June 28, 2023

Michael Ackerman of Ohio has been banned from participating in CFTC-regulated markets and ordered to pay $27 million in restitution as well as $27 million in civil monetary penalties for operating a digital asset fraud scheme. He was also ordered to pay $31 million in restitution and serve 5 years of probation and 1 year of home confinement in a related criminal proceeding. According to the CFTC, Ackerman solicited funds from more than 150 individuals and entities under the guise of using the funds to invest in digital commodity assets. He was ultimately able to raise at least $33 million, but misappropriated all but $10 million for his personal use. CFTC

Tagged in: Criminal Proceedings, Fraud in CFTC-Regulated Markets, Misrepresentations,

May 30, 2023

Former Coinbase manager, Ishan Wahi, and his brother, Nikhil Wahi, have been sentenced to 2 years and 10 months in prison respectively and ordered to forfeit cryptocurrency and cash in order to resolve civil and criminal charges of insider trading. As part of his position at Coinbase, Ishan helped coordinate public listing announcements for crypto assets, at least nine of which were crypto securities. In violation of Coinbase’s rules as well as federal law, Ishan tipped his brother Nikhil and friend Sameer Ramani off to the assets’ release, allowing them to purchase them and sell them for a profit. SEC

Tagged in: Criminal Proceedings, Cryptocurrency, Financial and Investment Fraud,

May 25, 2023

Vascular surgeon Vasso Godiali of Michigan has been ordered to pay $19.5 million in restitution and serve over 6 years in prison to resolve criminal allegations of defrauding Medicare, Medicaid, and Blue Cross/Blue Shield of Michigan. Godiali also agreed to pay up to $43.4 million to resolve civil allegations of violating the False Claims Act. Although Godiali allegedly began submitting false claims in 2009, his misconduct did not come to light until a 2015 qui tam suit by Innovative Solutions Consulting LLC, which alleged Godiali billed government programs for arterial thrombectomies and stent placements that were not medically necessary and not actually performed. Additionally, Godiali allegedly falsified medical records to justify the procedures, and improperly used a modifier code to increase his reimbursements. DOJ

Tagged in: Criminal Proceedings, FCA Federal, Healthcare Fraud, Medicaid, Medical Billing Fraud, Medicare, Provider Fraud, Whistleblower Case, Whistleblower Rewards,

April 21, 2023

Keith Alan Seguin, an Air Force civilian employee, will spend 188 months in prison and pay over $39 million in restitution to the Air Force, Army and General Services Administration, and the IRS, and forfeit over $2.3 million that he received in bribe money for colluding with others to evade competition and steer $100 million in government Air Force projects to them. Seguin was charged with making a false income tax return and for conspiracy to commit wire fraud. USAO WDTX

Tagged in: Bribery and Bid-Rigging, Criminal Proceedings, Defense Contract Fraud, Government Procurement Fraud,

April 20, 2023

Miami doctors Lawrence Alexander and Dean Zusmer were sentenced to 33 months and 96 months in prison, respectively, for their scheme to defraud Medicare of $31 million. Zusmer, a chiropractor and DME company owner, paid kickbacks to acquire patient referrals and signed doctors’ orders, using overseas call centers to solicit unnecessary prescriptions from patients and telemedicine companies. Alexander, an orthopedic surgeon and co-owner of another DME company, concealed his participation by putting the DME company in the name of one of his family members. The companies received over $15 million from Medicare through their fraud. DOJ

Tagged in: Anti-Kickback and Stark, Criminal Proceedings, FCA Federal, Healthcare Fraud, Lack of Medical Necessity, Medical Devices and DME, Medicare, Provider Fraud,

April 17, 2023

Bill R. Miller, a construction company owner, will spend 78 months in prison and will pay nearly $1 million in restitution for a bid-rigging and bribery scheme perpetrated against California Department of Transportation (Caltrans). Caltrans contract manager and Miller-co-conspirator, Choon Foo “Keith” Yong, pleaded guilty to receiving bribes that included cash, wine, furniture, and remodeling service on his home. Yong will spend 49 months in prison and will pay over nearly $1 million in restitution as well. Miller, Yong, and their co-conspirators sought to corrupt the competitive bidding process to enrich themselves, while wasting taxpayer dollars on contracts not secured through free and fair competition. DOJ, DOJ

Tagged in: Bribery and Bid-Rigging, Criminal Proceedings, Government Procurement Fraud,

April 14, 2023

Rudean Weir and Jerome Weah will spend 30 and 46 months in prison, respectively, for defrauding the Enhanced One Shot Deal, a New York City Human Resources Administration program which provides cash assistance to homeless veterans seeking permanent housing. Weir and Weah submitted over 340 fraudulent EOSD applications using fake documentation and residency information and received approximately $5.4 million from the program as a result. Both defendants were ordered to pay $5.4 million in restitution. Weir will forfeit nearly $3.8 million, including his interest in two bank accounts, and six real estate properties. Weah will forfeit nearly $2.2 million, including his interest in two bank accounts and one real estate property. SNDY

Tagged in: Criminal Proceedings, FCA Federal, Government Programs Fraud,

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