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.

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.

Union County Man Admits Function in Cocaine Trafficking and Cash Laundering Conspiracy | USAO-NJ

NEWARK, NJ – A Union County, New Jersey man today admitted his role in a conspiracy against cocaine trafficking and money laundering, current US attorney Rachael A. Honig announced.

Jose A. Rivera Jr., 48, of Union Township, New Jersey, videoconference pleaded guilty to money laundering before US District Judge Stanley R. Chesler.

According to the documents submitted in this case and statements made in court:

Rivera is a leader in a drug trafficking and money laundering organization. Police officers learned that Rivera used various locations to conduct drug trafficking and money laundering on behalf of the organization, including his residence and a stash location in Union.

On November 6, 2020, law enforcement officers conducted lawful searches of the residence and hiding location and recovered over $ 1 million in cash, financial documents, and notes related to drug revenues and transactions. On November 7, 2020, police officers conducted a lawful search of Rivera’s vehicle and retrieved 191 grams of cocaine from a hidden compartment in the vehicle’s glove compartment.

Charges of conspiracy with intent to distribute cocaine carry a maximum sentence of 20 years in prison and a maximum legal penalty of $ 1 million or double the amount of the offense. The money laundering conspiracy charge has a maximum sentence of 20 years in prison and a maximum penalty of $ 500,000 or double the value of the property involved in the transaction. The conviction is scheduled for September 29, 2021.

Acting US attorney Honig has credited special agents to the US Drug Enforcement Administration under the direction of the responsible special agent Raymond Donovan in New York. Department of Homeland Security Special Agents, Homeland Security Investigations, under the direction of Special Agent Jason J. Molina in Newark; and US Postal Inspection Inspectors, led by Acting Inspector Rodney M. Hopkins in Newark, the investigation leading to today’s admission of guilt.

The indictment is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) strike force initiative to set up permanent task force teams with multiple agencies working side by side in the same location. This same-location model enables agents from different agencies to collaborate on multi-jurisdictional intelligence operations to disrupt and dismantle major drug traffickers, money launderers, gangs and transnational criminal organizations. The New York Strike Force is a crime-fighting unit made up of federal, state, and local law enforcement agencies, led by the New York, New York, New York, New York, New York, New York, New York, New York, New York, New York, New York, New York, New York, Jersey are supported. The New York OCDETF Strike Force is housed in the DEA’s New York Division and includes agents and officers from the DEA. the NYPD; the New York State Police; HSI; IRS-CI; the alcohol, tobacco, firearms and explosives bureau; US Customs and Border Protection; US Secret Service; the US Marshals Service; New York National Guard; the Clarkstown Police Department; US Coast Guard; Port Washington Police Department; and New York State Department for Corrections and Community Oversight.

The government is represented by US assistant attorneys Lauren E. Repole of the Economic Crime Unit and Alexandra Tsakopoulos Saker of the OCDETF / Narcotics Unit in Newark.

Essex County Man Admits Position in $23 Million Id Fraud and Cash Laundering Scheme | USAO-NJ

NEWARK, NJ – A Newark man today admitted his role in a major international money laundering conspiracy and the use of a stolen identity to promote the program, acting U.S. attorney Rachael A. Honig announced.

Edwin Deleon-Batista, 37, pleaded guilty to US District Judge Katharine S. Hayden via video conference. He was charged with one money laundering conspiracy and one with identity fraud.

According to the documents submitted in this case and statements made in court:

From March 2018 to October 2019, Deleon-Batista laundered over $ 23 million in cash drug proceeds on behalf of a money laundering organization closely associated with drug trafficking organizations in the Dominican Republic and elsewhere. Deleon raised large amounts of cash drug proceeds in New Jersey, New York, and Florida and washed them by buying cashier’s checks at local bank branches. The checks were paid to individuals and companies identified by the heads of the money laundering organization. By converting drug proceeds into bank drafts, Deleon sought to hide the source of the illicit cash and avoid scrutiny by law enforcement agencies and banks.

Deleon-Batista had previously been arrested in New York in April 2019 for federal money laundering. Shortly after his arrest, Deleon-Batista began using a stolen identity and obtained a fraudulent Florida driver’s license to continue the money laundering system. With the fraudulent license, he opened multiple bank accounts, which he used over a five-month period to convert millions of dollars in cash drug proceeds to bank checks in bank branches in New Jersey, New York, and Florida.

The money laundering conspiracy charge carries a maximum penalty of 10 years in prison and a maximum penalty of $ 250,000 or double the amount of the offense, whichever is greater. The identity fraud charge has a maximum prison term of five years and a maximum fine of US $ 250,000. The conviction is scheduled for June 22, 2021.

Acting U.S. attorney Honig wrote special agents and task force officers in the U.S. Drug Enforcement Administration of the New Jersey Division, led by Special Agent Susan A. Gibson, and the New York Division, led by Special Agent Raymond Donovan ; Special Agents and Task Force Officials from the IRS – Criminal Investigation, under the direction of Special Agent in charge Michael Montanez; and the Morristown, New Jersey Police Department, led by Acting Police Commissioner Darnell Richardson, with the investigation that led to today’s confession of guilt.

The government is represented by US Assistant Attorney Jonathan M. Peck of the Criminal Division in Newark.

This case is being conducted under the auspices of the Task Force on the Enforcement of Drugs in Organized Crime (OCDETF). The primary mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug, arms and money laundering organizations, and those primarily responsible for the country’s illicit drug supply.