Investigation Newsletter: Texas Man Sentenced to Over Nine Years in Prison for COVID-19 Fraud Program | Arent Renard

Texas man sentenced to over nine years in prison for COVID-19 fraud program

After pleading guilty to two counts of wire fraud and money laundering, Texas man was sentenced to 110 months in prison for his scheme of fraudulently receiving over $ 1.6 million in loans of the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security Act (CARES).

The defendant allegedly submitted fraudulent PPP loan applications on behalf of three entities, 713 Construction LLC, Price Enterprises Holdings LLC and Price Logistic Services LLC, seeking more than $ 2.6 million in PPP loan funds. To support the demand for PPP funds, the defendant falsely represented the number of employees and salary expenses and submitted fraudulent tax records and other false information to the lenders. The defendant allegedly used the PPP loan money on luxury goods, including a Lamborghini, a Ford F-350 truck and a Rolex watch. The government ultimately seized over $ 700,000 of the funds obtained by the defendant.

Since the enactment of the CARES Act in March 2020, the federal government has prosecuted over 150 defendants in over 95 criminal cases and seized over $ 75 million in fraudulently obtained P3 funds, in addition to real estate and items. luxury goods purchased with these funds. .

Read the press release here.

Louisiana marketer sentenced to 30 months in $ 180 million TRICARE fraud program

A Louisiana merchant has been sentenced to 30 months in prison for his role in a large-scale scheme to defraud TRICARE and commercial insurance companies by paying bribes for the referral of medically unnecessary prescriptions. The fraud scheme resulted in more than $ 180 million in fraudulent billings, of which federal health care programs paid more than $ 50 million.

The alleged fraud scheme involved the defendant acting as a distributor for a network of pharmacies owned and operated by two co-conspirators. In addition to procuring fraudulent prescriptions using personal information from acquaintances in the military, the defendant used his TRICARE insurance to adjust prescription formulas to ensure the highest reimbursement regardless of the fact that the formulas were medically necessary. The defendant also recruited doctors to obtain prescriptions for expensive compound drugs.

The prison sentence follows the defendant’s earlier guilty plea to conspiracy to defraud the United States and to solicit, receive, offer and pay illegal bribes. The defendant was ordered to pay compensation and confiscate all assets from the illicit proceeds.

Read the press release here.

Home health worker sentenced to 56 months in prison for healthcare and wire fraud

After a jury trial, a Chicago-based woman was sentenced to 56 months in prison and ordered to pay $ 6.3 million in restitution for her role in a scheme to commit healthcare and healthcare fraud. wire.

According to court documents, the defendant’s employer, home care company Care Specialists, fraudulently billed Medicare at least $ 6.3 million between 2011 and 2017. Evidence presented at trial showed that about 90% of Care Specialists patients were not eligible for the home care program. services for which healthcare specialists have billed Medicare. The company has also bribed patients to receive home care “visits” to bill Medicare; in some cases, these visits were made in the nurse’s car rather than the patient’s home. The government established that the defendant perpetuated the plot by fabricating patient visit records.

Judge Virginia Kendall, of the Northern District of Illinois, has already convicted three other co-conspirators for their role in the scheme. The two owners of Care Specialists were sentenced to 60 and 84 months respectively. A third defendant involved in the conspiracy, who pleaded guilty and cooperated with the government investigation, was sentenced to three years’ probation.

Read the press release here.


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