Author: MIL-OSI Publisher

Source: United States Department of Justice Criminal Division

A California physician was sentenced today in Los Angeles to 54 months in prison for health care fraud arising from her false home health certifications and related fraudulent billings to Medicare. She is a fugitive and was sentenced in absentia.

According to court documents, Lilit Gagikovna Baltaian, 61, of Porter Ranch, was a physician licensed to practice in California and an enrolled Medicare provider. From approximately January 2012 to July 2018, she falsely certified patients to receive home health care from at least four Los Angeles area home health agencies. These certifications were used by the home health agencies to fraudulently bill Medicare. In some instances, Baltaian pre-signed blank, undated physician certification forms knowing that the home health agencies would falsify the forms to make appear that she had seen the Medicare beneficiaries and made clinical findings to support the need for home health care, when she had done neither. Baltaian received cash payments related to these referrals and also separately billed Medicare for signing the fraudulent certifications.

Between January 2012 and July 2018, four home health agencies used Baltaian’s false certifications to submit fraudulent claims to Medicare, resulting in loss to the government estimated at $1,497,159.64.

Baltaian pleaded guilty to one count of health care fraud on Nov. 21, 2024. At sentencing, she was also ordered to pay $1,497,159.64 in restitution.

Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, U.S. Attorney Bilal A. Essayli for the Central District of California, Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office and Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.

The FBI and HHS-OIG are investigating the case.

Trial Attorney Matthew Belz of the Criminal Division’s Fraud Section is prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

Source: United States Department of Justice Criminal Division

WASHINGTON — A Tennessee man was sentenced yesterday in the Western District of Kentucky for sex trafficking by force, fraud, or coercion; conspiracy to commit sex trafficking; obstructing a sex trafficking investigation; interstate transportation for prostitution; and possession of a firearm by a prohibited person.  Portier Q. Govan, 37, of Memphis, was sentenced to 25 years in prison and 10 years of supervised release after a jury found Govan guilty in December 2024.

Evidence presented during the trial established that Govan and his co-defendant, Brittany R. Howard, 25, of Bowling Green, Kentucky, recruited and enticed the victim to engage in commercial sex by preying on her young age and financial situation, and by making false promises of easy money.  To establish his control over the victim, Govan threatened to kill her by pressing a pistol against her head while she was in the front passenger seat of a car, and then lowered and discharged the gun, firing a bullet across her lap and missing her body by inches. Govan also showed her a video of himself torturing a defenseless man tied to a chair. He sexually assaulted her and compelled her to engage in commercial sex acts for his profit by making her fear for her life.

“The defendant used brazen acts of violence to compel the 18-year-old victim to engage in commercial sex, even holding a gun to the victim’s head,” said Assistant Attorney General Harmeet Dhillon of the Justice Department’s Civil Rights Division. “This significant sentence reflects the severity of the defendant’s conduct and sends a clear message that the DOJ will relentlessly prosecute and hold accountable human traffickers who abuse and exploit others for financial gain.”

The FBI Louisville Field Office, Bowling Green Resident Agency investigated the case, with assistance from the Bowling Green Police Department.

“This sentence is the culmination of a tremendous joint effort between the Bowling Green Police Department and the FBI’s Bowling Green Resident Agency,” said U.S. Attorney for the Western District of Kentucky Kyle G. Bumgarner. “Thanks to their efforts, Portier Govan will spend a significant portion of his adult life in federal penitentiary for his depraved conduct. While his sentence is lengthy, there is no sentence that sufficiently remedies the trauma he inflicted on his victim—who will continue to have unwavering support from our office”

“Depriving an innocent victim of their civil rights by violently forcing them to engage in commercial sex is unconscionable,” said Acting Special Agent in Charge Olivia Olson of the FBI Louisville Field Office. “Today’s sentence reflects the seriousness of Portier Govan’s criminal activity. The FBI, in collaboration with our state and local law enforcement partners, will never stop working to identify and hold accountable violent criminals and to help victims receive the support needed as they recover from significant trauma.”

Assistant U.S. Attorney Madison Sewell for the Western District of Kentucky and Trial Attorney Francisco Zornosa of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case.

Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking

Source: United States Department of Justice Criminal Division

WASHINGTON – On Thursday, the United States filed a complaint against the State of New York, challenging state policies that blocked immigration officials from arresting individuals at or near New York courthouses. Specifically, the complaint challenges a law, called the Protect Our Courts Act, that purposefully shields dangerous aliens from being lawfully detained at or on their way to or from a courthouse and imposes criminal liability for violations of the shield. This law and accompanying polices violate the Supremacy Clause of the U.S. Constitution because they obstruct the execution of federal immigration authorities.

“Lawless sanctuary city policies are the root cause of the violence that Americans have seen in California, and New York State is similarly employing sanctuary city policies to prevent illegal aliens from apprehension,” said Attorney General Pamela Bondi. “This latest lawsuit in a series of sanctuary city litigation underscores the Department of Justice’s commitment to keeping Americans safe and aggressively enforcing the law.”

New York’s law comes after Executive Order 10866, Declaring a National Emergency at the Southern Border, which directs the Department of Homeland of Security to issue guidelines for the safe and effective enforcement of immigration laws around the country, specifically at or near courthouses. As is true in all types of law enforcement, conducting an arrest at or near a courthouse often reduced the risk of flight and potential safety risks to the public, law enforcement officers, and targets themselves due to the enhanced security screenings in place at courthouses. New York’s law runs counter to common sense and endangers communities by eliminating safe places for law enforcement officers to act.

As explained in the complaint, filed by newly confirmed Assistant Attorney General Brett Shumate, “Through these enactments, New York obstructs federal law enforcement and facilitates the evasion of federal law by dangerous criminals, notwithstanding federal agents’ statutory mandate to detain and remove illegal aliens.”

This is the latest in several lawsuits the Department of Justice has filed challenging state interference with immigration enforcement. In May, the Department sued several New Jersey cities who had enacted sanctuary policies.

Read the full complaint HERE.

Source: United States Department of Justice Criminal Division

A Virginia man was sentenced today to 33 years in prison for transporting a teenager across state lines with the intent to sexually abuse her.

According to court documents, in 2022, Daniel Wayne Kidd, 50, of Powhatan, spent thousands of dollars to entice a teenage girl to come to Virginia so that he could sexually abuse her over the course of a week. Kidd and his co-defendant, Rosalinda Delgado Rosas, schemed to obtain custody of the minor in order to ply her with expensive gifts and experiences and coerce her into engaging in sexual acts with Kidd. Prior to the nightly sexual abuse acts, the minor was given medications, including medications that made her drowsy. Kidd and Rosas also recorded Kidd’s sexual abuse of the minor. Rosas was sentenced on Sept. 4, 2024, to 25 years in prison for her role in the scheme.

Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, U.S. Attorney Erik S. Siebert for the Eastern District of Virginia, and Acting Special Agent in Charge Christopher Heck of Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) Washington made the announcement.

ICE-HSI investigated the case with the assistance of the Powhatan Sheriff’s Office.

Trial Attorney Alicia A. Bove of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Heather H. Mansfield for the Eastern District of Virginia prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.

Source: United States Department of Justice

A federal grand jury in Miami returned an indictment today charging a Florida business owner with multiple counts of wire fraud, money laundering, and forgery for orchestrating a scheme to defraud the U.S. Department of Defense and other federal agencies by submitting altered and fake invoices to U.S. Navy ships and other vessels through the SEA Card Program, which allows U.S. vessels to purchase critical fuel from suppliers at ports around the world.

According to court documents filed in the Southern District of Florida, between August 2022 and January 2024, Jasen Butler, 37, of Jupiter, Florida, the owner of Independent Marine Oil Services LLC, submitted dozens of falsified documents to multiple U.S. warships — including the USS Patriot — demanding and receiving over $5 million dollars in payments for phony expenses that Butler had not incurred. These ships were attempting to purchase fuel in international ports such as Saudi Arabia, Singapore, and Croatia, among others. Butler also concealed his identity from government officials by using a false name and feigning employment by a fictitious fuel division of a different company. As alleged in the indictment, Butler used the millions in fraud proceeds to personally enrich himself and purchase multiple properties, including in Florida and Colorado. 

“This indictment sends a clear, public message: the Antitrust Division and its Procurement Collusion Strike Force under President Trump will not rest until all who defraud the brave men and women of the U.S. military and the American taxpayers receive swift justice,” said Assistant Attorney General Abigail A. Slater of the Justice Department’s Antitrust Division.

“Investigating complex fraud schemes which impact U.S. Coast Guard operations is a priority for CGIS,” said Special Agent in Charge Josh Packer of the Coast Guard Investigative Service (CGIS) Southeast Field Office. “CGIS remains committed to working with our law enforcement partners to investigate any fraud which undermines the integrity of the Coast Guard’s supply chain.”

“Mr. Butler’s alleged involvement in unlawfully submitting fraudulent invoices related to U.S. naval ships receiving fuel during port visits is an affront to the warfighter and taxpayer,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS remains committed to thoroughly investigating those who commit fraud impacting the Department of Navy.”

If convicted, Butler faces maximum penalties of 20 years in prison for each count of wire fraud, up to 10 years for each count of forgery, and up to 10 years for each count of money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. 

Assistant Chief Sara Clingan and Trial Attorney Jonathan Pomeranz and of the Antitrust Division’s Washington Criminal Section are prosecuting the case.

The NCIS and CGIS are investigating the case.

Anyone with information about this investigation or other procurement fraud schemes should notify the PCSF at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government — federal, state and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

Source: United States Department of Justice Criminal Division

Carlos Martinez, 39, of Mission, Texas, was sentenced today to 11 years in prison and a fine of $2 million for his conduct in a long-running and violent conspiracy to monopolize the transmigrante forwarding agency (TFA) industry in the Los Indios, Texas, border region. Martinez and his co-defendants controlled the TFA industry through monopolization and extortion of competitors.

Transmigrantes transport used vehicles and other goods from the United States through Mexico for resale across Central America. There are only a few locations where transmigrantes are permitted to cross from the United States into Mexico, one of those being the Los Indios Bridge in Texas. TFAs are U.S.-based businesses that provide services to transmigrante clients, including helping clients complete the customs paperwork required to export vehicles into Mexico. According to court documents and statements made in court, Martinez and his co-defendants fixed prices for TFA services and created a centralized entity known as “The Pool” to collect and divide revenues among the conspirators, limit competition from other agencies, and increase prices for their services.

“The defendants exploited hardworking professionals in the freight forwarding business using extortion and illegal price-fixing schemes to manipulate the market and inflate the cost of moving goods,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “The lead defendant’s 11-year prison sentence reflects the serious economic harm inflicted on the business community along the southern border. The Criminal Division will continue to pursue and prosecute those who threaten fair competition and the integrity of our markets.”

“Today’s sentence reflects the significant danger and harm the American people face from violent and extortive actions aimed at fixing prices and monopolizing the market for essential services in the Texas border region,” said Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division. “The Antitrust Division will continue to aggressively pursue violent criminals who aim to corrupt America’s free markets and advocate for their incarceration.”

“Price fixing is not a victimless crime; it harms customers in the form of artificially high prices. Consumers need to have faith that the prices they pay are fairly determined by the market, rather than the product of illegal collusion,” said U.S. Attorney Nicholas J. Ganjei for the Southern District of Texas. “The 11-year sentence Mr. Martinez received reflects the size and scope of his criminal operation, as well as his leadership role in organizing and facilitating the unlawful scheme.”  

“All of these defendants used their positions with the TFA to extort hardworking individuals who relied on these services to support their families and livelihood,” said Assistant Director Jose A. Perez of the FBI Criminal Investigative Division. “The FBI is committed to dismantling criminal enterprises that prey on vulnerable communities, and today’s sentencing sends a clear message that those who abuse systems will be found, stopped and brought to justice.”

“This case underscores the serious threat posed by transnational criminal networks operating at our borders,” said Special Agent in Charge Craig Larrabee of Immigration and Customs Enforcement Homeland Security Investigations (HSI) San Antonio. “Carlos Martinez and his co-conspirators orchestrated a violent scheme that extorted small businesses, fixed prices, and laundered millions of dollars — all while threatening the safety and integrity of lawful commerce. HSI will continue to aggressively pursue those who exploit legitimate industries through corruption and intimidation, and we remain steadfast in our mission to protect our communities and our economy.”

Individuals in the industry who were not part of the conspiracy were forced to join and pay into The Pool or face financial and violent consequences. Martinez and other members enforced the rules by monitoring whether forwarding agencies were charging the agreed-upon prices and whether the forwarder was making payments to The Pool.  

Martinez and some of his co-defendants also conspired to force forwarding agencies to pay other extortion fees, including a “piso” for every transaction processed as well as a “fine” for operating in the market outside of Pool rules. Martinez and his co-defendants intimidated, coerced, and used threats and acts of violence in furtherance of the antitrust and extortion conspiracies.

Martinez was responsible for collecting at least $9.5M in extortion payments. Cash obtained from the extortions was laundered through bank accounts controlled by Martinez and his family, with the cash deposits disguised to hide the nature, source, ownership, and control of the dirty money.

Martinez is the son-in-law of the former leader of the Gulf Cartel in Mexico, a violent criminal syndicate that operates at the U.S.-Mexico border and elsewhere. Martinez took control of  Los Indios Bridge and employed individuals who worked to track TFA transactions to calculate the piso owed by each forwarding agency. Pool and piso payments were made in cash to the individuals working for Martinez. Martinez ordered disciplinary actions against those operating in the transmigrante market without permission, those who violated Pool rules, those who did not charge the fixed prices, and those who did not pay the piso. Disciplinary actions could include clients not being allowed to cross Los Indios Bridge, cars being stolen, or more serious repercussions such as kidnappings, beatings, firebombings, shootings, and murder.

Carlos Martinez pleaded guilty in February  to conspiracy to illegally fix prices and allocate the market for TFA services, conspiracy to monopolize the transmigrante market, conspiracy to interfere with commerce by extortion, interference with commerce by extortion, and money laundering conspiracy. The government will also seek forfeiture of at least one house, luxury vehicles, a boat, and expensive watches.

Prior to Martinez’s sentencing, his co-defendants were sentenced as follows:

Carlos Yzaguirre, 66, of McAllen, Texas, was sentenced to two years in prison, after pleading guilty to conspiracy to interfere with commerce by extortion.

Sandra Guerra Medina, 70, of Rancho Viejo, Texas, was sentenced to eight months of home detention, after pleading guilty to conspiracy to illegally fix prices and allocate the market for TFA services and conspiracy to monopolize the transmigrante market.

Juan Hector Ramirez Avila, 59, a citizen of Mexico, was sentenced to time served, after pleading guilty to one count of structuring a financial transaction to evade reporting requirements.

Jose Tapia, Mireya Miranda, Pedro Calvillo and Roberto Garcia Villarreal pleaded guilty and are awaiting sentencing. Three other defendants, Rigoberto Brown, Miguel Hipolito Caballero Aupart, and Diego Ceballos-Soto, were also charged in the superseding indictment and remain fugitives.

The Court will determine the final restitution amount owed to victims of the conspiracies at a hearing set for Sept. 3, 2025. 

Immigration and Customs Enforcement Homeland Security Investigations and the FBI investigated the case.

Trial Attorney Christina Taylor of the Criminal Division’s Violent Crime and Racketeering Section; Senior Litigation Attorney John Davis and Trial Attorneys Brittany E. McClure, Anne Veldhuis, and Michael G. Lepage of the of the Antitrust Division; and Assistant U.S. Attorney Alexander L. Alum for the Southern District of Texas prosecuted the case.

Anyone with information in connection with this investigation should contact the HSI Tip Line at 866-347-2423; the FBI Tipline at tips.fbi.gov, or by contacting the FBI San Antonio Field Office at 210-225-6741; or the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.

Source: United States Department of Justice Criminal Division

Sessions to Discuss Generic and Biosimilar Availability, Prescription Drug Formularies and Benefits, and Regulatory Barriers

Source: United States Department of Justice Criminal Division

A pickleball entrepreneur who was forced into bankruptcy by investors he lured with promises of generous returns recently agreed to waive his bankruptcy discharge after an investigation by the Justice Department’s U.S. Trustee Program (USTP), preventing the discharge of more than $47 million in unsecured debt.

On May 14, the Bankruptcy Court for the Southern District of Indiana approved a voluntary waiver of discharge by debtor Rodney Grubbs, owner of All About Pickleball LLC, an apparel and equipment company that did business as Pickleball Rocks. As a result, Grubbs remains personally liable for his debts, and creditors are free to pursue payment from him after the case is closed.

Grubbs solicited investments from pickleball players and fans from across the United States, usually in the form of promissory notes with purportedly guaranteed interest rates of 10 percent or higher. In December 2023, several unpaid investors filed an involuntary bankruptcy petition against Grubbs under chapter 7 of the Bankruptcy Code. Grubbs opposed the petition, but after a hearing in which he testified to using new investors’ funds to pay back previous investors, the bankruptcy court granted the involuntary petition and ordered the case to proceed. Grubbs eventually disclosed nearly $1.6 million in assets and more than $47 million in liabilities, the vast majority of them unsecured debts owed to hundreds of individuals.

As part of its extensive investigation, the USTP’s Indianapolis office obtained Grubbs’ personal and business financial records and examined him under oath. Ultimately, Grubbs — who also faced allegations from multiple creditors consistent with a Ponzi scheme — elected to waive his bankruptcy discharge.

“The USTP is committed to addressing fraudulent and abusive conduct that threatens the integrity of the bankruptcy system,” said U.S. Trustee Nancy J. Gargula for Region 10, which includes the Southern District of Indiana. “Our commitment to protecting consumers and those who fall victim to various schemes that come to light in bankruptcy is unwavering.”

The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders — debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust. 

Source: United States Navy

The U.S. Navy proudly announces its return to Columbus, Ohio for Navy Week, Aug. 18-24. As part of the Navy’s signature outreach initiative, Columbus Navy Week will bring 50 to 60 Sailors to the city to engage with the community through a dynamic schedule of performances, educational outreach and community service projects. The events will lead into the Columbus Air Show Aug. 22-24 at Rickenbacker International Airport featuring the U.S. Navy Flight Demonstration Squadron, the Blue Angels.

Source: United States Navy

 ST. GEORGE’S, GRENADA – The Mercy-class hospital ship USNS Comfort (T-AH 20) arrived in St. George’s, Grenada, to provide a variety of medical treatments to include: dental, family medicine, internal medicine, optometry, nursing, pharmacy, biomedical repair, lab, radiology, X-ray and veterinary medicine as a part of Continuing Promise 2025 (CP25), June 9, 2025.