Seven Plead Guilty in Wide-Ranging Corruption Scheme at the Naval Fleet Readiness Center in San Diego 

U.S. Attorney’s OfficeMarch 28, 2012

Southern District of California(619) 557-5610

United States Attorney Laura E. Duffy announced today that seven individuals, including four Navy officials, Donald Vangundy, Kiet Luc, David Lindsay, and Brian Delaney; and three defense contractors, Michael Graven, John Newman, and Paul Grubiss, each pleaded guilty before United States Magistrate Judge Bernard G. Skomal in connection with a wide-ranging fraud and corruption scheme at the Naval Air Station (NAS) North Island in Coronado, California. As part of the conspiracy, defense contractors provided Navy officials with over one million dollars in personal benefits, including cash, checks, retail gift cards, flat screen television sets, luxury massage chairs, home furniture and appliances, bicycles costing thousands of dollars, model airplanes, and home remodeling services. In return, the Navy officials placed millions of dollars in fraudulent orders with the defense contractors.

Four of the defendants who pleaded guilty were Navy officials employed at the Navy’s Fleet Readiness Center (FRC) located at NAS North Island. All four worked in the Navy’s E2/C2 aircraft program, which is dedicated to maintaining the tactical readiness of the Navy’s E-2 and C-2 aircrafts. The Grumman E-2 Hawkeye is an American all-weather, aircraft carrier-capable tactical airborne early warning aircraft. Since entering combat during the Vietnam War, the E-2 has served the U.S. Navy around the world, acting as the electronic “eyes of the fleet.” The C-2 Greyhound is a derivative of the E-2 Hawkeye, which shares wings and power plants with the E-2, but has a widened fuselage with a rear loading ramp. These aircraft are considered critical components of the U.S. Navy’s carrier air wings.

Among the Navy official defendants, Donald Vangundy oversaw tool control for the E2/C2 program and was promoted to supervise and authorize the purchase and replacement of tools for all FRC programs. Kiet Luc was the liaison and coordinator for tools in the E2/C2 program and was responsible for maintaining and controlling the tool program. David Lindsay was the supervisory production controller for the E2/C2 program, and Brian Delaney was the E2/C2 deputy program manager. Between them, these four former Navy officials received a total of more than $1 million in cash, goods, and services for their personal use, all fraudulently charged to and paid for by the Defense Department.

The remaining three defendants were owners or employees of various defense contractors that provided goods or services for NAS North Island. Michael Graven was the owner and operator of X&D Supply Inc., a contractor located in Carlsbad, California. The Navy paid X&D at least $2.26 million in connection with the fraud. John Newman was a sales manager at (and the former owner of) a defense contractor identified in the charging document as “Company A,” located in Poway, California. The Navy paid Company A at least $3.31 million in connection with the fraud. Paul Grubiss was a sales manager of a defense contractor identified in the charging document as “Company B,” also located in Poway, California. The Navy paid Company B approximately $1 million in connection with the fraud. Also implicated in the scheme was Jesse Denome, the owner of JD Machine Tech Inc.

As part of the scheme, the defense contractors prepared and submitted fraudulent invoices to the Department of Defense, making it appear that they were billing the Department for goods and services within the scope of legitimate government contracts. In fact, the Defense Department was unknowingly paying for, among other things, the cost of personal benefits provided to the Navy officials. Compounding the cost of the fraud, the defense contractors also routinely charged a markup on the fraudulent invoices. Ultimately, the Defense Department paid over $5.5 million in connection with the fraudulent invoices submitted by the defense contractor defendants.

Two of the Navy official defendants, Vangundy and Luc, also pleaded guilty to filing false tax returns for knowingly failing to report the value of the unlawful benefits provided to them by defense contractors. Graven also pleaded guilty to aiding and assisting in the filing of a false tax return by his business, X&D, for knowingly taking improper tax deductions for the illegal payments to the benefit of the Navy official defendants.

According to United States Attorney Duffy, the investigation into possible corruption at NAS North Island was initiated on the basis of citizen complaints. These complaints followed the July 2009 indictment of six individuals on fraud and corruption charges centered at the Space and Naval Warfare Systems Command (SPAWAR). As part of the SPAWAR corruption case, the government publicized a hotline dedicated to the reporting of possible waste, fraud, and abuse related to government and military contracts.

United States Attorney Duffy lauded the citizens who came forward and the coordinated efforts of the law enforcement agencies that participated in this long-running investigation, known as “Country Store,” including the Federal Bureau of Investigation, the Defense Criminal Investigative Service, the Internal Revenue Service-Criminal Investigation, the Naval Criminal Investigative Service, and the General Services Administration (GSA)-Office of Inspector General. In doing so, she emphasized that federal law enforcement agencies in the Southern District of California were committed to rooting out corruption in defense contracts and purchasing, which cheats the American taxpayer and our nation’s military readiness.

U.S. Attorney Duffy noted that the investigation is ongoing and urged anyone with information relating to waste, fraud, and abuse in government contracting to contact the Procurement Fraud Working Group hotline at sandiego.procurementfraud@usdoj.gov or to call 1-877-NO-BRIBE.

FBI Special Agent in Charge Keith Slotter commented, “Public corruption is the FBI’s number one criminal priority. It seriously undermines the people’s trust in their government and gives an unfair economic advantage to those who trade the public’s interest for their own personal gain. The FBI thoroughly investigates allegations of public corruption, and we remind the public to notify us, as they are sometimes the one person that can make a difference.”

Chris Hendrickson, Special Agent in Charge, Defense Criminal Investigative Service, Western Field Office said, “We are extremely pleased at this outcome, which yet again sends the message that corruption will be vigorously investigated and prosecuted. While the vast majority of Navy officials and contractors are honest in their work, some choose to abuse the public trust. This investigation clearly attests that those who compromise the integrity of the United States will face their day of reckoning. Corruption of this nature strikes at the heart of our national security and erodes public confidence. The Defense Criminal Investigative Service will use all tools available—our ability to track worldwide financial dealings, our advanced cyber capabilities, our worldwide law enforcement alliances—to protect taxpayers’ interests.”

Leslie P. DeMarco, Special Agent in Charge of IRS-Criminal Investigation (IRS-CI), Los Angeles Field Office said, “The Navy officials and defense contractors sought illicit opportunities to profit or gain other personal advantages at the expense of other law abiding businesses and taxpayers. Bribery and corruption schemes corrode the American financial and tax system. Today’s actions enforce IRS-CI’s commitment to work with our law enforcement partners, leveraging resources, to investigate and put an end to fraud by government officials.”

Geoffrey Cherrington, Assistant Inspector General for Investigations of GSA’s Inspector General’s Office stated, “The results of this case clearly demonstrate the tireless efforts of our special agents and our partners in law enforcement to protect the taxpayer. If you commit fraud, we are watching.”

The pleas are subject to final acceptance by United States District Judge Roger T. Benitez at or before sentencing. Sentencing for all seven of the defendants is currently scheduled for July 2, 2012, before Judge Benitez.

Defendants

Donald Vangundy, age 54, Chula Vista, California
Kiet Luc, age 53, San Diego, California
Brian Delaney, age 55, La Mesa, California
David Lindsay, age 57, San Diego, California
John Newman, age 51, Poway, California
Michael Graven, age 43, Carlsbad, California
Paul Grubiss, age 39, Wickliffe, Ohio

Summary of Charges

Count one: conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349 (all defendants)—maximum penalties: 20 years in prison, $250,000 fine, term of supervised release of three years, restitution, forfeiture, and $100 special assessment.

Count two: conspiracy to commit bribery, in violation of Title 18, United States Code, Section 371 (defendants Vangundy and Grubiss)—maximum penalties: five years in prison, $250,000 fine, term of supervised release of three years, restitution, forfeiture, and $100 special assessment.

Count three: filing a false tax return, in violation of Title 26, United States Code, Section 7206(1) (defendant Vangundy)—maximum penalties: three years in prison, $250,000 fine, term of supervised release of one year, restitution, costs of prosecution, and $100 special assessment.

Count four: filing a false tax return, in violation of Title 26, United States Code, Section 7206(1) (defendant Luc)—maximum penalties: three years in prison, $250,000 fine, term of supervised release of one year, restitution, costs of prosecution, and $100 special assessment.

Count five: aiding and assisting in a false tax return, in violation of Title 26, United States Code, Section 7206(2) (defendant Graven)—maximum penalties: three years in prison, $250,000 fine, term of supervised release of one year, restitution, costs of prosecution, and $100 special assessment.

Investigating Agencies

Federal Bureau of Investigation
Defense Criminal Investigative Service
Internal Revenue Service-Criminal Investigation
Naval Criminal Investigative Service
General Services Administration-Office of Inspector General

Kansas City Business Owner Pleads Guilty to Multi-Million-Dollar Bank Fraud Conspiracy

U.S. Attorney’s Office March 23, 2012

Western District of Missouri (816) 426-3122

— filed under: Financial, Fraud, Press Release, White-Collar Crime

KANSAS CITY, MO—David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that the owner of several used car dealerships in the Kansas City, Missouri metropolitan area pleaded guilty in federal court today to his role in a bank fraud conspiracy that resulted in losses of millions of dollars by several financial institutions.

John A. Hart III, 51, of Kansas City, pleaded guilty before U.S. District Judge Ortrie D. Smith to the charge contained in an information that was filed today in lieu of the September 21, 2011 federal indictment.

Between May 2000 and February 2009, Hart operated several used car dealerships at various locations, including Better Than New Automobiles LLC, On Time Auto, and Hart Family Motors.

Hart and others obtained loans and lines of credit from various financial institutions in connection with vehicles involved in his auto sales business. Hart admitted that he provided false and fraudulent financial information to obtain loans and lines of credit. Hart also admitted that he obtained multiple loans in which the same vehicle was pledged as collateral, and failed to disclose to the financial institutions that vehicles pledged as collateral for loans were already encumbered at another financial institution or in another loan.

Hart also admitted that he and his wife borrowed more than $1 million from First Missouri National Bank between November 15, 2006 and March 26, 2008. They provided copies of their 2004 and 2005 income tax returns to the bank. However, according to today’s plea agreement, they did not actually file their 2004 and 2005 returns until 2009. The filed returns were materially different than the tax returns submitted to the bank in support of their loan application. According to the plea agreement, the filed returns claimed a much lower adjusted gross income.

The government believes the loss attributed to Hart is between $2.5 million and $7 million. Under the terms of today’s plea agreement, Hart reserves his right to argue what the appropriate loss calculation should be at the sentencing hearing.

Under federal statutes, Hart is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Acting U.S. Attorney David M. Ketchmark. It was investigated by the FBI.

Multi-Million-Dollar Hospice Health Care Fraud Alleged 

U.S. Attorney’s OfficeMarch 23, 2012

Eastern District of Pennsylvania(215) 861-8200

PHILADELPHIA—An indictment was unsealed today charging five nurses in a health care fraud conspiracy arising from their employment at Home Care Hospice Inc. (HCH), a hospice care provider in Philadelphia, between 2005 and 2008 that resulted in a multi-million-dollar fraud on Medicare. Patricia McGill, 64, of Philadelphia, was a registered nurse and served as the director of professional services for HCH. She allegedly authorized and supervised the admission of inappropriate and ineligible patients for hospice services, resulting in approximately $9.32 million in fraudulent claims. She is charged, along with Natalya Shvets, 42, of Southhampton, Pennsylvania Giorgi Oqroshidze, 36, of Philadelphia; Yevgeniya Goltman, 42, of Newtown, Pennsylvania; and Alexsandr Koptyakov, 39, of Bensalem, Pennsylvania, with one count of conspiracy to commit health care fraud and numerous counts of health care fraud. All five defendants were arrested this morning.

HCH was co-owned by Matthew Kolodesh, who is charged separately in an indictment unsealed October 12, 2011, and “A.P.,” the Hospice Director for HCH. HCH was a for-profit business at 1810 Grant Avenue, and later 2801 Grant Avenue, in Philadelphia that provided hospice services for patients at nursing homes, hospitals, and private residences. According to the indictment, announced by United States Attorney Zane David Memeger, McGill authorized nursing staff and supervisors, including her co-defendants, to fabricate and falsify documents in support of hospice care for patients who were not eligible for hospice care, or for a higher, more costly level of care than was actually provided to the patients. Between January 2005 and December 2008, approximately $9,328,000 in fraudulent claims for inappropriate patients were submitted to Medicare as authorized by AP and McGill. Defendants Shvets, Oqroshidze, Goltman, and Koptyakov created fraudulent nursing notes for approximately 150 patients indicating hospice services were provided for patients, when, in reality, they were not.

In February 2007, HCH was notified that it was subject to a claims review audit. According to the indictment, in anticipation of this audit, McGill assisted A.P. in reviewing patient charts, sanctioning false documentation by the nursing staff, and authorizing the alteration of charts. In September 2007, HCH was notified that it had exceeded its cap for Medicare reimbursement and would have to repay $2,625,047 to the government program. At that point, A.P. and McGill directed staff to review patient files and discharge hospice patients. This resulted in a mass discharge of patients. In one month, 79 hospice patients were discharged in October 2007 and a total of 128 discharged by January 2008, some of whom had been ineligible for hospice or inappropriately maintained on hospice service in excess of six months. Some of the patients discharged were shifted to another hospice business owned by Kolodesh. In the spring of 2008, approximately 20 percent of the discharged patients were placed back on hospice service at HCH with McGill’s knowledge. McGill is charged in 14 counts; Shvets is charged in eight counts; Oqroshidze is charged in seven counts; Goltman is charged in four counts; and Koptykov is charged in eight counts.

If convicted of all charges, McGill faces a potential advisory sentencing guideline range of 108 to 135 months in prison, a fine of up to $150,000, and a $1400 special assessment; Shvets, Goltman, and Koptykov each face a potential advisory sentencing guideline range of 27 to 33 months in prison, a fine of up to $60,000, and an $800 special assessment; Oqroshidze faces a potential advisory sentencing guideline range of 21 to 27 months in prison, a fine of up to $50,000, and a $700 special assessment.

The case was investigated by the Federal Bureau of Investigation and the Department of Health and Human Services-Office of Inspector General. It is being prosecuted by Assistant United States Attorney Suzanne B. Ercole and Trial Attorney Margaret Vierbuchen of the Organized Crime and Gang Section in the Justice Department’s Criminal Division.

News Release from the FBI - Disaster Relief Fraud

Justice Department and FBI Raise Awareness of Disaster Fraud Hotline 

U.S. Department of JusticeMarch 08, 2012

Office of Public Affairs(202) 514-2007/TDD (202)514-1888

WASHINGTON—The Department of Justice, the FBI, and the National Center for Disaster Fraud (NCDF) remind the public there is a potential for disaster fraud in the aftermath of a natural disaster. Suspected fraudulent activity pertaining to relief efforts associated with the recent series of tornadoes in the Midwest and South should be reported to the NCDF hotline at 866-720-5721. The hotline is staffed by a live operator 24 hours a day, seven days a week, for the purpose of reporting suspected scams being perpetrated by criminals in the aftermath of disasters.

NCDF was originally established in 2005 by the Department of Justice to investigate, prosecute, and deter fraud associated with federal disaster relief programs following Hurricanes Katrina, Rita, and Wilma. Its mission has expanded to include suspected fraud related to any natural or man-made disaster. More than 20 federal agencies, including the Justice Department’s Criminal Division, U.S. Attorneys’ Offices, and the FBI, participate in the NCDF, allowing the center to act as a centralized clearinghouse of information related to disaster relief fraud.

In the wake of natural disasters, many individuals feel compelled to contribute to victim assistance programs and organizations across the country. The Department of Justice and the FBI remind the public to apply a critical eye and do its due diligence before giving to anyone soliciting donations on behalf of tornado victims. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods.

Before making a donation of any kind, consumers should adhere to certain guidelines, including the following:

• Do not respond to any unsolicited (spam) incoming e-mails, including clicking links contained within those messages, because they may contain computer viruses.
• Be skeptical of individuals representing themselves as surviving victims or officials asking for donations via e-mail or social networking sites.
• Beware of organizations with copycat names similar to but not exactly the same as those of reputable charities.
• Rather than following a purported link to a website, verify the existence and legitimacy of non-profit organizations by utilizing various Internet-based resources.
• Be cautious of e-mails that claim to show pictures of the disaster areas in attached files, because the files may contain viruses. Only open attachments from known senders.
• To ensure that contributions are received and used for intended purposes, make donations directly to known organizations rather than relying on others to make the donation on your behalf.
• Do not be pressured into making contributions; reputable charities do not use coercive tactics.
• Do not give your personal or financial information to anyone who solicits contributions. Providing such information may compromise your identity and make you vulnerable to identity theft.
• Avoid cash donations if possible. Pay by debit or credit card, or write a check directly to the charity. Do not make checks payable to individuals.
• Legitimate charities do not normally solicit donations via money transfer services.
• Most legitimate charities maintain websites ending in .org rather than .com.

In addition to raising public awareness, the NCDF is the intake center for all disaster relief fraud. Therefore, if you observe that someone has submitted a fraudulent claim for disaster relief, or any other suspected fraudulent activities pertaining to the receipt of government funds as part of disaster relief or clean up, please contact the NCDF.

If you believe that you have been a victim of fraud by a person or organization soliciting relief funds on behalf of tornado victims, or if you discover fraudulent disaster relief claims submitted by a person or organization, contact the NCDF by phone at (866) 720-5721, fax at (225) 334-4707, or e-mail at disaster@leo.gov.

You can also report suspicious e-mail solicitations or fraudulent websites to the FBI’s Internet Crime Complaint Center at www.ic3.gov.

News Release from the FBI, Portland Division

Former Bend-Area Developer Pleads Guilty to $20 Million Bank Fraud 
Cases Relate to the Collapse of Desert Sun Development in Bend, Oregon

U.S. Attorney’s OfficeFebruary 22, 2012

Office of Public Affairs(202) 514-2007/TDD (202)514-1888

EUGENE, OR—Tyler Fitzsimons, 33, appeared before U.S. District Judge Michael R. Hogan on Tuesday, February 21, 2012 and pleaded guilty to a variety of mortgage and loan fraud charges arising out of the collapse of his company, Desert Sun Development (DSD), including conspiracy, bank fraud, and money laundering. From 2004 through 2008, DSD, a company previously headquartered in Bend, Oregon, built commercial structures and residential housing throughout Central Oregon. According to the indictments, DSD principals and other defendants caused financial institutions to lose more than $19 million.

According to court documents, Fitzsimons and others knowingly submitted fraudulent documents, including false financial statements, to various banks in order to obtain financing to develop and construct many of DSD’s commercial projects. Once the loans were approved, Fitzsimons and others submitted additional false documents, including fictitious contracts and invoices, to the banks to obtain loan proceeds for construction costs that were claimed to be associated with the fraudulent documents. Often, no construction had occurred.

Fitzsimons also developed a real estate flipping scheme at DSD. In court records, Fitzsimons admitted, among other things, to undermining the loan approval process for individuals participating in the scheme by “seasoning” or falsely inflating their bank accounts through temporary deposits or undisclosed, short-term loans and by submitting other fictitious documents, including letters explaining employment, large or recent deposits, and bonuses, to the banks funding the loans.

Defendants Shannon Egeland, Jeremy Kendall, Robert Brink, Teresa Ausbrooks, Michael Wilson, and Del Barber, Jr., who are charged in these and related cases previously pleaded guilty and are pending sentencing.

Conspiracy to commit bank fraud carries a maximum sentence of five years in prison and a $250,000 fine. Bank fraud carries a maximum sentence of 30 years in prison and a $1 million fine, and money laundering carries a maximum sentence of five years in prison and a $250,000 fine. Sentencing is set before U.S. District Court Judge Michael R. Hogan on October 09, 2012, at 10 a.m.

These cases were investigated by the FBI, IRS-Criminal Investigations, and the Oregon Division of Finance and Corporate Securities. Assistant U.S. Attorney Scott E. Bradford handled the prosecution of the cases.

Man Sentenced for Medicare Fraud Scheme

News release from the FBI:

Los Angeles Man Sentenced to 77 Months in Prison for Medicare Fraud Scheme Resulting in More Than $18.9 Million in Fraudulent Claims to Medicare

U.S. Department of Justice February 07, 2012

Public Affairs Specialist Laura Eimiller (310) 996-3343

— filed under: Breaking News, Health Care Fraud, Press Release

WASHINGTON—A Los Angeles-area man was sentenced yesterday to 77 months in prison for organizing and leading a medical clinic fraud scheme that used the stolen identities of physicians to submit more than $18.9 million in fraudulent claims to Medicare, the Department of Justice, the FBI and the Department of Health and Human Services (HHS) announced.

Eduard Aslanyan, 38, of Sherman Oaks, Calif., was sentenced by U.S. District Judge Consuelo B. Marshall in the Central District of California. In addition to his prison term, Aslanyan was sentenced to three years of supervised release and was ordered to pay $10.8 million in restitution.

Aslanyan pleaded guilty in April 2011. He admitted that between March 2007 and September 2008, he established a series of fraudulent medical clinics in and around Los Angeles to defraud Medicare. Carolyn Vasquez, who previously pleaded guilty to conspiring with Aslanyan to defraud Medicare, recruited physicians to serve as the medical directors of Aslanyan’s fraudulent medical clinics. The physicians did not perform services at the clinics and were rarely present at the clinics. Physician assistants were hired by Aslanyan and Vasquez and were complicit in the fraud scheme at the clinics.

According to court documents, Aslanyan hired patient recruiters to find Medicare beneficiaries who were willing to provide the recruiters with their Medicare billing information in exchange for expensive, high-end power wheelchairs and other medical equipment which the patient recruiters told the beneficiaries they could receive for free. Often, the Medicare beneficiaries did not have a legitimate medical need for the power wheelchairs and equipment. The patient recruiters then provided the beneficiaries’ Medicare billing information to Aslanyan or brought the beneficiaries to Aslanyan’s clinics. Aslanyan paid the patient recruiters cash kickbacks in exchange for recruiting the Medicare beneficiaries.

In court documents, Aslanyan admitted that he and Vasquez instructed and paid physician assistants who worked at his clinics to prescribe medically unnecessary power wheelchairs, medical equipment and diagnostic tests for the Medicare beneficiaries. The physician assistants used stolen identities of physicians who did not supervise them or work at the clinics.

According to court documents, Aslanyan profited from the scheme at his fraudulent medical clinics in several ways. Aslanyan admitted that he allowed fraudulent diagnostic testing facilities to use the Medicare billing information he purchased from patient recruiters to submit false claims to Medicare for tests ordered at the clinics. In exchange, the fraudulent diagnostic testing facilities paid Aslanyan cash kickbacks that were disguised as rent payments to Aslanyan.

Aslanyan also profited from the scheme by selling fraudulent prescriptions and documents generated at his clinics to the owners and operators of fraudulent durable medical equipment (DME) supply companies, which used the prescriptions and documents to submit false claims to Medicare. Aslanyan also used the fraudulent prescriptions and documents to submit false claims to Medicare through his own fraudulent DME supply companies, Vila Medical Supply Inc. and Blanc Medical Supplies.

According to court documents, as a result of Aslanyan’s conduct, he and his co-conspirators submitted approximately $18.9 million in fraudulent claims to Medicare.

Currently, Aslanyan is serving a three-year state sentence for assault. On Jan. 9, 2012, Judge Marshall sentenced Vasquez to 60 months in prison for her role in the fraud scheme and ordered her to pay more than $6.2 million in restitution to Medicare. A second co-defendant, David James Garrison, a physician assistant who worked at the fraudulent medical clinics with Vasquez and Aslanyan, is scheduled for trial on Feb. 7, 2012. Defendants are presumed innocent until proven guilty at trial.

The sentence was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney André Birotte Jr. for the Central District of California; Glenn R. Ferry, Special Agent in Charge for the Los Angeles Region of the HHS Office of Inspector General (HHS-OIG); Steven Martinez, Assistant Director in Charge of the FBI’s Los Angeles Field Office; and Tony Sidley, Assistant Chief of the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse.
The case is being prosecuted by Trial Attorney Jonathan T. Baum of the Criminal Division’s Fraud Section. Former Special Trial Attorney Joseph Hudzik participated in the prosecution. The case is being investigated by the FBI. The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California.

Since their inception in March 2007, strike force operations in nine districts have charged more than 1,160 defendants who collectively have falsely billed the Medicare program for more than $2.9 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention & Enforcement Action Team, go to: www.stopmedicarefraud.gov.