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Criminal Proceedings

This archive displays posts tagged as involving criminal law proceedings relevant to whistleblowers. You may also be interested in our pages:

Page 32 of 37

February 15, 2019

James King of Baltimore, Maryland, a former official with the Department of Veterans Affairs, was sentenced to 11 years in prison following his guilty plea for soliciting and receiving bribes from three for-profit schools that enrolled disabled military veterans.  The VA paid over $2 million to the schools that paid the bribes through its Vocational Rehabilitation and Employment Program.  DOJ

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

February 14, 2019

Adam Van Pelt of Houston, Texas, who owned Stat Source, Inc., has been sentenced to nearly three years in prison and ordered to pay restitution of $20 million for failing to pay over more than $20 million in employment taxes to the IRS over the course of 18 quarters between 2011 and 2015.  USAO SD TX

Tagged in: Criminal Proceedings, Employment Tax Fraud, Tax Fraud,

February 13, 2019

Ashraf Hasan-Hafez and Ilya Kogan have been sentenced to over three years in prison for their participation in a scheme that defrauded Medicare and New York State Medicaid out of $1.3M dollars. Hasan-Hafez, the owner of a physical therapy practice, and Kogan, the owner of an acupuncture company, fraudulently submitted bills for services that were not rendered, or for services performed by unlicensed individuals. In addition to jail time, Hasan-Hafez and Kogan have been ordered to forfeit $1,297,000 in restitution to the Medicare and Medicaid programs.  DOJ    

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

February 12, 2019

Michael Frey of Ft. Myers, Florida, a physician specializing in pain management, was sentenced to 18 months in prison for his role in an illegal kickback scheme.  Frey was a co-owner of Advanced Pain Management Specialists, P.A., and received kickbacks from A&G Spinal Solutions, LLC (which made checks payable to his wife) for a share of its profits from patient referrals; from a compound pharmacy provider; and as "speaker fees" from Insys Therapeutics, a pain medication manufacturer.  Frey previously agreed to pay $2.8 million in civil settlement of claims under the False Claims Act.  USAO MD FL

Tagged in: Anti-Kickback and Stark, Criminal Proceedings, FCA Federal, Pharma Fraud, Provider Fraud,

February 7, 2019

The founder and president of an online gaming company has been arrested and charged with securities fraud for allegedly defrauding more than 50 investors of about $9 million in a scheme that ran from 2013 to 2017. To execute the fraud, Robert Alexander allegedly lied to investors about his professional background, Kizzang LLC's financial condition, and the expected returns on investment. He then allegedly appropriated $1.3 million for his own use. If convicted, he faces a maximum sentence of 40 years in prison and millions in fines. SEC; USAO SDNY

Tagged in: Criminal Proceedings, Financial and Investment Fraud, Misrepresentations, Securities Fraud,

February 7, 2019

A former bus driver with the New York Metropolitan Transit Authority has been sentenced to 20 months in prison for defrauding the authority's health benefit plan of $2.8 million. Enver Kalaba, who was recruited into the scheme by former bus driver Christopher Frusci, worked on behalf of an unnamed company to pay bribes to fellow MTA employees in exchange for medically unnecessary prescription compounded medications. For each prescription for medications such as pain creams, scar creams, and metabolic supplements, Kalaba and Frusci paid $100. As part of his sentence, Kalaba must now forfeit $138,630 in fraudulent earnings and pay $2.9 million in restitution. Frusci is scheduled to be sentenced next month. USAO NJ

Tagged in: Compounding Pharmacy Fraud, Criminal Proceedings, Healthcare Fraud, Lack of Medical Necessity, Other Government Health Programs,

February 1, 2019

Brian Gimelson of New Jersey was sentenced to 18 months in prison for tax evasion, after pleading guilty for concealing $1.2 million in income he received as fees for the sale of a painting purportedly by the Italian Renaissance painter Caravaggio.  Gimelson directed the fee income to a company he created in his wife's name, and further directed his wife to make cash withdrawals from the account.  DOJ

Tagged in: Criminal Proceedings, Tax Fraud,

February 1, 2019

Ali Jama, co-owner of Alpha Star Health Care Inc., was sentenced to 18 months in prison for health care fraud and tax fraud schemes against Medicare and Medicaid. Jama billed the government for services performed by unqualified individuals with criminal backgrounds who were prohibited from providing direct care. Jama also billed for services provided by untrained home health aides and provided false documents and false records for his taxes to reduce his company’s tax liability from approximately $680,000 to $81,000. Jama has been ordered to forfeit $300,000 and pay $392,000 in restitution to Medicaid. He must also pay the IRS $311,000 in restitution. DOJ

Tagged in: Criminal Proceedings, Healthcare Fraud, Home Health and Hospice, Improper Medical Personnel, Medicaid, Medicare, Tax Fraud,

January 31, 2019

A North Carolina jury found Robert Leslie Stencil and Michael Allen Duke guilty of money laundering and mail and wire fraud for their roles in a five-year multi-million dollar high-yield investment fraud. According to the prosecution, Stencil, Duke and their co-conspirators sold millions of dollars of worthless stock in a sham company named Niyato Industries Inc. (Niyato). Stencil, Duke and their co-conspirators sold approximately $2.8 million in stock to around 140 victims, many of whom were elderly. DOJ

Tagged in: Criminal Proceedings, Financial and Investment Fraud,

January 31, 2019

David Aubel of North Carolina was sentenced to over seven years in prison and ordered to pay $242,553 in restitution for his role in a market manipulation scheme targeting Green Energy Renewable Solutions, Inc. Aubel and co-conspirator Robert Raffa covertly acquired Green Energy’s unrestricted stock without reporting their controlling interest, and then engaged in scheme to manipulate the stock price to their benefit. They were caught thanks to a cooperating promoter and an undercover agent. DOJ

Tagged in: Criminal Proceedings, Securities Fraud,

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