Newark Doctor and West New York Man Charged with $3.four Million Well being Care and Wire Fraud Conspiracy, Cash Laundering, and Making False Statements | USAO-NJ

CAMDEN, NJ – A Newark physician and West New York man are scheduled to make their initial appearances today on charges of defrauding New Jersey state and local health benefits programs and other insurers out of more than $3.4 million by submitting fraudulent claims for medically unnecessary prescriptions, US Attorney Philip R. Sellinger announced.

Kaival Patel, 53, of West New York, New Jersey, and Saurabh Patel, MD, 51, a Woodbridge, New Jersey resident, are charged in a 12-count indictment with conspiracy to commit health care fraud, and wire fraud and four counts of health care fraud. Kaival Patel is also charged with conspiracy to commit money laundering, substantive counts of money laundering, and making false statements to federal agents. The defendants appeared today by videoconference before US Magistrate Judge Sharon A. King and were released on $250,000 each unsecured bond.

According to the indication:

Kaival Patel and his wife – referred to in the indictment as “Individual 1” – operated a company called ABC Healthy Living LLC (ABC) to market medical products and services, including compound prescription medications. Saurabh Patel is a medical doctor who owns and operates a clinic – referred to in the indictment as “Medical Practice 1” – in Newark. Saurabh Patel is related to Kaival Patel and Individual 1. Paul Camarda, a pharmaceutical sales representative who is listed as a conspirator, pleaded guilty before Judge Kugler in Camden federal court on July 6, 2021, to health care conspiracy and conspiring to commit money laundering and obstruct justice and is awaiting sentencing.

Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.

Kaival Patel, Saurabh Patel, Camarda, and others learned that certain state and local government employees had insurance that would reimburse up to thousands of dollars for a one-month supply of certain compounded medications. The defendants submitted fraudulent insurance claims for prescription compounded medications to a pharmacy benefits administrator, which provided management services for certain insurance plans that covered state and local government employees. The defendants steered individuals recruited to receive medications from the compounding pharmacies to Saurabh Patel’s medical practice, which enabled him to fraudulently receive insurance payments for those patient visits and procedures. The conduct caused the benefits administrator to pay out $3.4 million in fraudulent claims.

The health care fraud and wire fraud conspiracy count carries a maximum potential penalty of 20 years in prison; the health care fraud charges carry a maximum potential penalty of 10 years in prison; the false statement count carries a maximum penalty of five years in prison – all of these counts are also punishable by a fine of $250,000, or twice the gain or loss from the offense, whichever is greatest. The money laundering charges carry a maximum term of 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense or not more than twice the amount of the criminally derived property involved in the transactions.

US Attorney Sellinger credited special agents of the IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and the US Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the indictment.

The government is represented by Assistant US Attorneys Christina O. Hud and R. David Walk Jr. of the Criminal Division in Camden.

The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

Hydrolix Cloud Knowledge Platform Helps Arkose Labs Save Cash and Ship Actual-Time Insights on Hundreds of thousands of Fraud Assaults Day by day

PORTLAND, Ore .– () – Hydrolix today announced the immediate availability of a case study describing Arkose Labs’ migration to the Hydrolix cloud data platform. Arkose Labs’ fast-growing data challenges: The only thing that scaled faster than the company’s triple-digit customer revenue growth was the cost of collecting and analyzing terabytes of raw data per day. They needed an alternative to their existing platform that would improve their margins and future-proof their business.

“The data challenges at Arkose Labs fit our mission perfectly,” said Marty Kagan, CEO of Hydrolix. “They record billions of events every day, each with hundreds of fields of sparse and complex, semi-structured, high cardinality data. They take care of real-time recording, they take care of long-term storage, and they take care of the kind of sub-second interactive query performance that you can’t get with brute force scans of unindexed data. ”

Today, after migrating to Hydrolix and Superset, Arkose Labs’ Security Operations Center (SOC) identifies, investigates and remediates threats at a lower cost than their previous data platform, which is based on market-leading NoSQL and document databases. Additionally, the move to Hydrolix has enabled Arkose Labs to consolidate their data infrastructure by eliminating the need for separate hot, warm and cold tiers.

“Dealing with fraud in real time requires tremendous speed and flexibility. Hydrolix enables our team to process over 100 million events per second / per core, exceeding our performance and scale requirements, ”said Ashish Jain, chief product officer of Arkose Labs.

From a product perspective, a unified data platform with unlimited retention builds on the success of Arkose Labs and enables the product team to expand the company’s capabilities and deliver value to customers on a much broader scale with real-time dashboards, unlimited filters, and visibility offer range of time periods. Complex forensic queries are now completed in milliseconds.

“Running our own copy of Hydrolix in our VPC has allowed us to truly leverage the potential of Amazon’s elastic infrastructure by independently scaling our compute and storage tiers in our data management stack,” said Joe Hsy, CTO of Arkose Labs.

For companies that value data, the answer to skyrocketing costs should never be to store less data. To learn more about how Hydrolix can help your business, check out the Arkose Labs case study at today www.hydrolix.io/case-studies/.

About Hydrolix

Hydrolix is ​​transforming the economics of big data so that organizations can ingest, store, and query petabytes of data without impacting performance, discarding data, or struggling with costs. Hydrolix’s patented technology is delivered cloud-on-prem, with no maintenance or egress, so customers stay in control of their data, reduce security and compliance risks, and no longer have to spend money on other people’s cloud infrastructure. Hydrolix is ​​supported by Wing Ventures, AV8 Ventures, Silicon Valley Data Capital, and the Oregon Venture Fund.

For more information, see hydrolix.io, Email info@hydrolix.io, or follow us on Twitter @GetHydrolix.

About Arkose Labs

Arkose Labs is ruining the fraud business model. Recognized as Cyber ​​Defense Magazine’s 2021 “Hot Company in Fraud Prevention”, its innovative approach determines true user intent and resolves attacks in real time. Risk assessments combined with interactive authentication challenges undermine the ROI of attacks, provide long-term protection while improving good customer throughput. Arkose Labs is headquartered in San Francisco, California with offices in Brisbane, Australia and London, United Kingdom. For more information, visit www.arkoselabs.com or on Twitter @ArkoseLabs.

Two Arkansas Males Discovered Responsible of Fraud and Cash Laundering in Reference to Proposed Elm Springs, Arkansas Wind Farm | USAO-WDAR

FAYETTEVILLE – A federal jury today convicted two Arkansas men for Wire Fraud, Aiding and Abetting Wire Fraud, Money Laundering, and Aiding and Abetting Money Laundering in connection with the development of a never-operating wind turbine and a proposed wind farm project in Elm Springs, Arkansas that was never built.

According to court documents and evidence presented during the trial, Jody Douglas Davis, 46, of Searcy, Arkansas, and Phillip Vincent Ridings, 64, of North Little Rock, Arkansas, formed a limited liability company called Dragonfly Industries in Texas in 2014 International, LLC (“Dragonfly”) and Arkansas Wind Power (“AWP”), an Arkansas limited company headquartered in Springdale, Arkansas, to develop a revolutionary wind turbine design that investors say will be installed in a proposed 311 acre wind farm to be installed for construction in Elm Springs, Arkansas.

As early as June 2014 through March 2018, Davis and Ridings conspired with Cody Fell of Springdale, Arkansas, and others, to raise money from investors who were told the investors’ money was being used to build a prototype wind turbine, according to the succeeding indictment to build and develop wind farms in Elm Springs, Arkansas, Iowa, and other states. The evidence presented at the trial indicated that Davis and Ridings used most of the $ 700,000 they received from investors for Davis and Ridings’ personal use. In particular, the evidence in the process revealed that investors were told that Dragonfly’s wind turbine could produce more energy than the traditional three-bladed wind turbines commonly used in existing wind farms; that accredited engineering firms and a University of Memphis engineering professor “validated” the Dragonfly wind turbine design; that the Department of Defense has shown great interest in purchasing Dragonfly wind turbines for use in combat zones; that a prototype of the wind turbine was about to be completed; that the leaders of the underdeveloped countries were ready to buy Dragonfly’s wind turbines; and that Dragonfly would soon be receiving a $ 10 million grant from the Department of Energy, when in truth neither of these representations was true.

Cody Fell pleaded guilty to wire fraud and tax evasion in December 2018 and will be convicted on September 17, 2021. A date for the sentencing of Davis and Ridings has not yet been set.

The acting US attorney David Clay Fowlkes announced from the Western District of Arkansas.

The case has been investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation.

Assistant US attorneys Kyra Jenner and Kenneth Elser are pursuing the case.

Related court documents can be found on the Public Access to Electronic Records website at www.pacer.gov.

Beverly Hills man loses hire cash in suspected USPS examine fraud

Erik Hatchett has lived in his Beverly Hills home for five years and pays his rent with a check until he says his check for $ 9,000 was cashed at another bank in July.

“I know a lot of people like to make digital payments and the like, but you know we’re kind of old-fashioned, we like to write the check and have a hard copy of the check,” said Hatchett.

Hatchett tells KTLA that he mailed his check on July 6th and it was cashed at a Bank of America on the morning of July 7th.

Hatchett has since contacted the Chase Bank fraud department and filed a police report.

Kacey Montoya reports for the KTLA 5 news on September 1, 2021.

Conclude

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These steps might help shield your cash and your info. How a easy electronic mail or textual content message may open you as much as fraud. – Los Angeles Sentinel | Los Angeles Sentinel

These steps can help protect your money and information. How a simple email or SMS can open you to scams.

Thoughtful young African American women sit at the PC in the home office and prepare to spend money online with a personal plastic card. Smiling biracial woman making payment by bank transfer on ecommerce website

The pandemic has accelerated identity theft – and the impact on ordinary people is significant. In fact, the Americans have more than lost $ 382 million on fraud related to stimulus checks and unemployment benefits, counterfeit treatments for COVID-19, and more, according to the Federal Trade Commission (FTC).

Even worse, Black and Latinx consumers are more likely to be victims of fraud than their white counterparts. Because of this, it is important to identify activities that are aimed at stealing your hard-earned money.

JPMorgan Chase is available to help consumers spot suspicious activity – from fake emails and texts to fake claims about ways to stay healthy. We sat down with Jordan King, the local community manager of the Chase Community Center branch on Crenshaw Blvd., to discuss tips and best practices for a better financial future.

Dissatisfied couple customers who are entitled to contractual terms, various customers who sit at the table and argue with the broker about mortgage loan or real estate problems, fraud and bad contractor concept

What should consumers watch out for with scammers?

King: Let’s start with emails and texts. Phishing is the fancy name for email purporting to be from legitimate companies – including banks. They really come from criminals trying to get your personal information like passwords and credit card numbers.

The email may ask you to reply or click a link that will take you to a website that is similar to your bank’s website. You will then be asked to provide your username, password, account number, personal identification number (PIN), social security number, or other personal information. In addition, if you click an attachment on this email, software called malware may be downloaded that tracks or steals your information.

So be very careful when clicking on a link in an email. instead go straight to the company’s website. And don’t click attachments unless you are sure they are from someone you know and trust.

Scammers are increasingly starting to contact victims via text or phone, mostly from a number they don’t know, telling them there is a problem with your bank account, including it being closed, frozen, or canceled unless You call a phone number or go to a website listed in the message and provide your personal and / or account information.

Are there any specific signs to look out for?

King: Yes, here are a few surefire ones:

  • Scammers will often tell you that they are a Problem or price. You may say you are in trouble with the government, you owe money, someone in your family is having an emergency, there is a problem with your account, or you won the lottery. Remember – if it sounds too good to be true, it probably is.
  • After you set up the problem or the price, become scammers urge you to act immediately. They want you to hand over your sensitive information before you have time to think about it. They could threaten you, emphasize a sense of urgency, or say you are running out of time. However, no legitimate business or government agency will pressure you in this way or request your personal information, such as your social security number, bank account, or credit card numbers, by phone or email.

How can consumers protect their money and information?

King: Here are some best practices:

  • Protect your online information. Download and update antivirus software for your computer, and do not enter sensitive information on public computers or on unsecured networks. Also, be careful about disclosing your financial username and passwords online – this includes financial websites and apps that offer tools to help you manage your accounts, invest, or prepare your taxes.
  • Only buy from safe websites. Look for a lock symbol in the address of a website. This helps protect your credit card number, expiration date and three-digit CVV.
  • Change your passwords often. Change your passwords frequently and use a combination of letters, numbers, and special characters. Don’t use your pet’s name, your child’s name, or anything else that is easy to find out.
  • Create a separate password for each financial institution. This offers an additional level of protection in the event that a problem occurs at an institution.
  • Monitor your accounts. Log into your accounts regularly – even daily – via online banking or your mobile banking app to monitor transactions and your account balance. Look for transactions that you don’t recognize. You can also view your monthly statements and contact your bank immediately if you have any problems.
  • Set up an additional confirmation. The correct name is two-factor or multi-factor authentication. It just means you have to take an extra step or two to access your information. For example, you can request that a text message with a code be sent to the cell phone number that you previously provided to the company. The first time you log into your Chase account electronically or with a device unknown to us, we will ask for your username, password and a temporary identification code. And we will send it to you by phone, email or SMS.
  • Destroy sensitive documents. Destroy bank records, checks deposited through mobile banking, and other documents that contain your account information. Keep monthly checking and savings account statements in a safe place until you file your taxes and then destroy them as well. Chase and other banks offer paperless statements so you can view the information online without having to worry about paper.
  • Check your credit report. Read your credit reports carefully at least once a year. You can request a free annual credit report from any of the three national credit reporting agencies, even if you do not suspect any unauthorized activity is on your account. visit annualcreditreport.com.

A businessman shops online using his cell phone and credit card

How does Chase protect customers from fraud?

King: We see it as a partnership; We help protect your accounts and information, and so do you. We monitor all of our accounts 24/7 including the use of security measures that you cannot see.

Even if we find or flag a transaction that you have not authorized, we offer Zero Liability Protection, which means you will not be held responsible for it.

Stop by our Crenshaw Blvd store or our other locations to learn more about JPMorgan Chase’s commitment to customer safety through our fraud prevention and protection tools. I look forward to working with you.

JPMorgan Chase & Co.

Pierre Girl Charged with Wire Fraud, Mail Fraud, and Cash Laundering | USAO-SD

Acting US Attorney Dennis R. Holmes announced that a woman from Pierre, South Dakota has been charged with wire fraud, postal fraud and money laundering by a federal grand jury.

Marietta Ravnaas, 52, was charged on August 3, 2021. She appeared before US Judge Mark A. Moreno on August 10, 2021 and pleaded not guilty to the indictment.

The maximum sentence if convicted is up to 20 years in federal prison and / or a fine of $ 500,000, three years supervised release, and up to $ 700 in the Federal Crime Victims Fund. A provision can also be ordered.

The indictment alleges that Ravnaas participated in a program that included unemployment benefits under the CARES law. In particular, other participants in the program have illegally obtained, owned, and shared the Personal Information (PII) of various individuals. The PII has been used to falsely and fraudulently claim unemployment benefits from various states. The indictment alleges that Ravnaas knowingly allowed the fraudulently received unemployment benefit payments to be transferred to her bank account and then, at the direction of other participants in the system, money was transferred. Ravnaas often transferred funds to other participants through WorldRemit, an international money transfer service. Ravnaas also kept part of the funds to use for their own ends.

The charges are just accusations and Ravnaas is presumed innocent until proven guilty.

The investigations are being conducted by the Inspector General’s Social Security Agency, Inspector General’s Labor Office, the Internal Revenue Service-Criminal Investigation, and the South Dakota Division of Criminal Investigation. U.S. Assistant Attorney Ann M. Hoffman is pursuing the case.

Ravnaas was released due to a pending trial. The negotiation date is October 12, 2021.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to mobilize the Department of Justice’s resources in collaboration with government agencies to step up efforts to combat and prevent pandemic-related fraud. The task force supports efforts to identify and prosecute the most guilty national and international criminal actors and assists authorities charged with managing fraud prevention aid programs by, among other things, expanding and integrating existing coordination mechanisms, identifying resources and techniques, to detect fraudulent actors and their systems; and to share and use information and intelligence gained from previous enforcement efforts. For more information on the ministry’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about suspected COVID-19 fraud can report this by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) hotline at 866-720-5721 or using the NCDF web complaint form at: https: // www .justice.gov / disaster-fraud / ncdf-disaster-complaint form.

Julio Jones sued by hashish firm alleging fraud, cash laundering

Tennessee Titans wide receiver Julio Jones is being sued by a cannabis company in connection with alleged fraud and money laundering, according to court documents The Tennessean received late Tuesday night.

Genetixs, a California-based cannabis company, filed a lawsuit in the Los Angeles County Superior Court on July 21, which named Jones, his former Atlanta Falcons teammate, Roddy White, and White’s firm, SLW Holdings, among the defendants. SLW Holdings is one of the five members of Genetixs.

The lawsuit alleges that the defendants illegally administered and operated the Genetixs facility and have not reported any cannabis sales since March 2021. Genetixs estimates that about $ 3 million a month in cannabis has been harvested and illegally sold since then.

Jones and White, who were teammates with the Falcons from 2011 to 2015, are accused of working with a man named John Van Beek and his son Shaun Van Beek to run a black market cannabis operation through the Genetixs facility. Jones and White had invested in Genetixs, according to the documents through White’s SLW Holdings.

John Van Beek was hired by Genetixs in March 2020 as the on-site manager and operator of its rented facility in Desert Hot Springs, California. He is accused of breach of contract, failure to report cannabis sales and failure to provide the company with budgets, bills, expenses and other paperwork, according to the lawsuit.

A government inspection of the facility found numerous violations and John Van Beek was fired in March 2021.

The Van Beeks allegedly disabled cameras in the facility while it was in operation and at some point prevented a new manager from entering, the complaint said.

Without the consent of Genetixs, the defendants are accused of having given up the facility and handed over the premises to the landlord. They “stole, removed and abused Genetixs cannabis” from 22 crops and allegedly damaged machinery, equipment and other valuables, property valued at millions of dollars, the documents said.

Among others, Jones, White, the Van Beeks and other defendants are sued:

  • Conspiracy to cheat
  • Change
  • Violation of the duty of loyalty
  • Aid to breach of duty of loyalty and fraud
  • Violation of the member’s duty of good faith
  • Unjustified enrichment
  • accounting
  • Exemption from assessment
  • Civil conspiracy to commit fraud
  • Injunctive relief

Genetixs calls for general, criminal and exemplary claims for damages and injunctive relief.

The Titans were not immediately available for comment late Tuesday night.

The Titans acquired Jones in a deal with the Falcons last month, a move that gives Tennessee a dynamic offensive on paper for 2021. 32-year-old Jones, a two-time all-pro selection of the first team and seven-time professional bowler, established himself with the Falcons (2011-20) as one of the best wide receivers of his generation in a decade.

Jones was number 6 overall in Atlanta in 2011.

Ben Arthur reports on the Tennessee Titans for the USA TODAY Network. Contact him at barthur@gannett.com and follow him on Twitter at @benyarthur.

Bernie Madoff earned $710 in jail after Ponzi fraud conviction

Bernie Madoff is leaving federal court in New York on March 10, 2009.

Jin Lee | Bloomberg via Getty Images

Some people might argue that Bernie Madoff was massively overpaid even at just 24 cents an hour to work as a jailer.

Madoff, the late king of the Ponzi scheme who ripped off thousands of people for billions of dollars, earned just $ 710 after working nearly 3,000 hours while serving 12 years in a North Carolina federal prison before he dies of kidney failure in April, show newly released records.

And when he died at the age of 82, Madoff didn’t leave much of his personal belongings: eight AAA batteries, four religious paperback books, a Casio calculator, four packets of popcorn, a packet of ramen soup, a box of filtered fish, and not much more.

Bureau of Prinance records, reported first from the online publication The City, also show that while Madoff received generally positive reviews for his performance as a nurse, at some point a supervisor remarked that he “needs closer supervision than most” and was “not very reliable”.

This was certainly the case when Madoff ran Bernard L. Madoff Investment Securities in New York, where for decades he led a luxurious lifestyle and satisfied clients with constant investment returns on their portfolios.

These returns turned out to be a deception.

In 2008, federal prosecutors accused Madoff of running the largest Ponzi scheme in history, using money from some investors to distribute alleged profits to others.

Madoff’s sons, Mark and Andrew, had told authorities that he had confessed to them that his business was an outright fraud.

Madoff pleaded guilty to 11 crimes in Manhattan federal court in 2009 and was sentenced to 150 years in prison.

Mark Madoff killed himself in 2010 at the age of 46, two years from the day this father was arrested. Andrew Madoff died of lymphoma four years later at the age of 48.

While in custody in Butner, North Carolina, Madoff served as the first vigilante in a section of the detention center dedicated to educational programs. He later asked to be transferred to work in the chapel area, The City noted in its report.

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Last year, Madoff’s attorney revealed in court files that the sociopathic impostor was terminally ill with kidney disease. when he asked a judge to grant Madoff an early release out of compassion.

Manhattan Federal Judge Denny Chin Chi shot this request in June 2020, stated that Madoff had committed “one of the most egregious financial times of all time” and that “many people still suffer from it”.

About 500 victims wrote to oppose Madoff’s release.

One of Madoff’s victims had written to Chin, “I wholeheartedly believe that my husband would be alive today if he did not deal with the stress and emotional distress that the loss of almost all of our money has meant to our family. “

In December, the Justice Department announced that the Madoff Victim Fund was total $ 3.2 billion for nearly 37,000 people scammed by Madoff. This dollar amount represents more than 80% of the total casualty losses.

The fund’s money comes from recovering assets associated with Madoff. The fund predicts that it will ultimately return more than $ 4 billion in total assets.

Former Pittsburgh-area Doctor Pleads Guilty to Unlawfully Prescribing Opioids, Health Care Fraud and Money Laundering | USAO-WDPA

PITTSBURGH – A former doctor pleaded guilty in federal court of drug diversion, health fraud and money laundering related to his holistic medical practice in suburban Pittsburgh, U.S. Attorney Stephen R. Kaufman said today.

Andrzej Kazimierz Zielke, 66, from Allison Park, Pennsylvania 15101 (Hampton) confessed to senior US District Judge Nora. Barry Fischer guilty of unlawful supply and distribution of List II controlled substances, one health fraud and one money laundering case,

In connection with the admission of guilt, the court was informed that Zielke is owned by Medical Frontiers, LLC, an alleged pain management practice based in Gibsonia, Pennsylvania. On or about October 3, 2017, May 25, 2017, October 3, 2017, and December 17, 2014, Zielke knowingly distributed List II drugs, including oxycodone, methadone, hydrocodone, and oxymorphone, to four patients outside of professional treatment practice and not for a legitimate medical purpose. Zielke has committed health fraud by fraudulently making Medicaid claims for payments to cover the cost of illegally prescribed drugs. Finally, Zielke broke federal money laundering laws when he arranged for about $ 150,000 in proceeds from his illicit drug trafficking to be transferred from a bank account to Kitco Metals, Inc. in Canada to purchase silver and collector coins.

“We are intensely focused on reducing the supply of illicit opioids to our communities, whether street-corner dealers or abusing their doctor’s oath by prescribing pain medication for no legitimate medical reason,” said acting US Attorney Kaufman. “We will continue our critical work to prosecute all those who fuel our nation’s ongoing opioid crisis.”

“Mr. Zielke has created a lucrative program to sell opioids while undermining our health care system with fraudulent billing,” said Mike Nordwall, Special Representative for the Pittsburgh FBI. “Unethical, corrupt doctors who choose to fill their pockets, are driving up health care costs for everyone. The FBI is committed to holding those who believe they will not be caught accountable. “

“Andrzej Zielke ruthlessly smuggled opioids into the neighborhoods of Pittsburgh, fueling the climax of the epidemic that kills 13 Pennsylvanians every day,” said Attorney General Josh Shapiro. “We are working closely with our federal partners to address this crisis that continues to destroy families and communities in Pennsylvania.”

Judge Fisher scheduled the conviction for November 1, 2021. The law provides for a maximum sentence of 10 years in prison, a $ 500,000.00 fine, or both for controlled substance offenses. Zielke faces an additional maximum 10 years per charge and a $ 250,000.00 fine for health fraud charges; and a maximum penalty of 10 years per charge and a US $ 250,000.00 fine for money laundering offenses. Under federal constitutional guidelines, the actual sentence imposed would be based on the gravity of the offense and the criminal record of the accused, if any. According to the Federal Constitutional Guidelines, the penalty actually imposed depends on the gravity of the offense and any previous convictions of the accused.

The court continued Zielke on bail until the judgment was announced.

Assistant Attorney General Robert S. Cessar and Attorney General Summer Carroll of the Pennsylvania Attorney General are pursuing this case on behalf of the government.

The investigation that led to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal attorneys from the US Attorney’s Office, combines the expertise and resources of federal and state law enforcement agencies to address the role of unethical medical professionals in the opioid epidemic. The agencies that make up OFADU in western Pennsylvania include: Federal Bureau of Investigation, US Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service – Criminal Investigations, Pennsylvania Office of Attorney General – Medicaid Fraud Control Unit, Pennsylvania Office Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney General – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs – Office of Inspector General, Food and Drug Administration- Office of Criminal Investigations, USA Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.

Pharmaceutical Gross sales Consultant Admits Well being Care Fraud Conspiracy and Conspiring to Interact in Cash Laundering and Impede Justice | USAO-NJ

CAMDEN, NJ – A pharmaceutical sales rep admitted today that he was conspiring to defraud New Jersey County’s health programs and to engage in money laundering and obstructing justice, US Attorney General Rachael A. Honig said.

Paul Camarda, 39, of Holmdel, New Jersey, pleaded guilty to U.S. District Judge Robert B. Kugler in Camden Federal Court over information alleging a health fraud and obstruction of justice conspiracy and engagement Money laundering.

According to documents filed in this case and statements made in court:

Camarda was a sales representative for a pharmaceutical company. He started a side business called Dynasty Capital LLC to independently commercialize medical products and services for other businesses, including compound prescription drugs for specialty pharmacies. Camarda marketed compound drugs for several pharmacies, including New Jersey and out of state pharmacies, identified in court documents as “Compounding Pharmacy 1”, “Compounding Pharmacy 2”, “Compounding Pharmacy 3” and “Compounding Pharmacy 4”. As part of his agreements with the pharmacies and his conspirators, Camarda received a percentage of the insurance payments he received for prescriptions arranged by him and his staff.

Compound drugs are specialty drugs that are mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compound drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a doctor determines that an FDA-approved drug, such as dye or other ingredient, does not meet a particular patient’s health needs.

Camarda learned that certain local government employees had insurance coverage for these particular compound drugs. A facility identified as a “pharmacist benefits administrator” on court documents provided pharmacy benefits administration services for the Bergen County’s Prescription Benefits Program (BCPBP), which covered certain local government employees, including county jailers. The pharmacy benefits administrator paid prescription drug claims and then billed the BCPBP for the amounts paid.

Camarda was a leader and manager of the conspiracy. He and his conspirators discovered that certain compound drugs – including vitamins and pain, scar, antifungal, migraine, and libido creams – reimbursed up to thousands of dollars for a month’s supply. Camarda recruited individuals with BCPBP coverage to fraudulently obtain medically unnecessary compound drugs. He provided the recruits with blank prescription forms and directed them to see an unnamed doctor – referred to as “Person 1” in court documents – to obtain his approval for the compound prescription drugs. The investigation found that all recruits visit Person 1 to get the prescriptions within days, and all Person 1 received prescriptions authorized by Person 1 for the same specialty drugs on the same day or within days. The recruits agreed to receive the very expensive compound drugs, not because they needed them, but because they were paid for by Camarda. Camarda instructed the recruits that the more compound drugs they were given and the more people they recruited to get the drugs, the more money they could make from the conspiracy.

Camarda received more than $ 2.2 million in payments for the prescriptions he and his staff arranged, and Camarda and his recruits created more than $ 3.4 million in fraudulent claims filed by the pharmacy benefits administrator for compound drugs were presented. Camarda’s payments from the blending pharmacies and his conspirators, as well as Camarda’s payments to his recruits, served as the basis for the money laundering conspiracy charge, which Camarda pleaded guilty to.

In 2017, Camarda learned that federal agents and a federal grand jury were investigating the health fraud conspiracy. Camarda has plotted to obstruct the federal investigation by providing and instructing false information to other federal agents and the grand jury.

The number of healthcare conspiracies Camarda is guilty of has a maximum potential sentence of 10 years in prison and a fine of $ 250,000 or double the gain or loss from the crime, whichever is greater. Obstruction of justice and the money laundering conspiracy count carry a maximum penalty of five years in prison and a fine of $ 250,000 or double the gross profit or loss of the crime, whichever is greater. The conviction is scheduled for November 18, 2021.

Acting US Attorney Rachael A. Honig has credited special agents to the IRS Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; Special Agent for the FBI’s Atlantic City Resident Agency under the direction of Special Agent in Charge George M. Crouch Jr. of Newark; and special agents from the US Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, whose investigation resulted in today’s admission of guilt.

The government is represented by US Assistant Attorneys Christina O. Hud and R. David Walk Jr. of the US Attorney’s Office in Camden.