Category: MIL-OSI

Source: United States Department of Justice Criminal Division

Florida ophthalmology practices Clay Eye Holdings LLC, Retina Macula Specialist of Miami LLC, Florida Eye Institute P.A., Miami Eye LLC, and Kendall Eye Institute Inc. have agreed to pay a total of nearly $6 million to resolve alleged violations of the False Claims Act arising from their billing for trans-cranial doppler ultrasounds (TCDs) through a kickback arrangement with a third-party testing company. All five practices have agreed to cooperate with the Justice Department’s ongoing investigations of other participants in the alleged scheme.

“Kickbacks and false claims increase healthcare costs for all Americans and undermine the integrity of healthcare decision-making,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Combatting such schemes will continue to be a priority for the Justice Department.”

“These settlements are a continuing testament to the United States’ commitment to fight healthcare fraud and ensure that federal healthcare dollars are spent consistently with the law,” said U.S. Attorney Gregory W. Kehoe for the Middle District of Florida.

“Submitting false claims destroys the public’s trust in our federally funded healthcare programs,” said Special Agent in Charge Matthew Fodor of the FBI Tampa Field Office. “Working together with our law enforcement partners, the FBI will continue to prioritize safeguarding the integrity of the nation’s healthcare system and hold accountable those who try to profit from deception.”

“Kickback arrangements can corrupt legitimate medical decision-making and undermine the integrity of federal healthcare programs,” said Acting Special Agent in Charge Ricardo Carcas of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG, working with our law enforcement partners, will continue to investigate improper billing and kickback schemes to protect both Medicare and Medicaid as well as those served by these programs.”

The settlements announced today resolve allegations that the settling practices knowingly submitted, and caused the submission of, false claims to Medicare and Medicaid for medically unnecessary TCDs. The settling practices performed TCDs on thousands of patients and billed Medicare and Medicaid hundreds of dollars per test. Before the patients received the results of the test, the practices and the third-party testing company identified the patients as having received a serious diagnosis that could qualify the patient for reimbursement of a TCD by Medicare or Medicaid. However, nearly all patients who received TCDs never had that diagnosis, and it was not reflected in the patient’s medical history or in the TCD results. The settling practices paid the third-party testing company based on the volume or value of tests ordered and referred the patients to the testing company’s preferred radiology group for the TCDs’ professional component.   

The United States alleged that as a result of this scheme, the settling practices submitted, or caused the submission of, false claims to Medicare and Medicaid for TCDs between Jan. 1, 2018 and June 1, 2022 that were medically unnecessary, that were premised on false diagnoses, and that resulted from violations of the Anti-Kickback Statute and the Stark Law.

As a result of the settlements, Clay Eye Holdings LLC will pay $2,140,000, Retina Macula Specialist of Miami LLC will pay $1,750,000, Florida Eye Institute P.A. will pay $1,250,000, Miami Eye LLC will pay $525,000, and Kendall Eye Institute Inc. will pay $310,000. Of the total settlement amount, $333,500 will be paid to the State of Florida for its share of Medicaid, which is a jointly funded federal and state program.

The civil settlements resolved claims in a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the Government’s recovery. The qui tam was filed by a whistleblower who will receive $1,135,250 in connection with the settlements.

The settlements were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from HHS-OIG and the FBI. The United States previously resolved similar allegations against Brandon Eye Associates P.A. and Pinellas Eye Care, P.A. (doing business as Gulfcoast Eye Care).

The government’s pursuit of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS at 1-800-HHS-TIPS (800-447-8477).

Trial Attorney Nelson Wagner in the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S Attorney Mamie Wise for the Middle District of Florida handled the matter.

The claims resolved by the settlements are allegations only and there has been no determination of liability.

Source: United States Department of Justice Criminal Division

BOSTON – The Harvard Club of Boston, a private club that is not formally affiliated with Harvard University, has agreed to pay approximately $2.4 million to resolve allegations that it violated the False Claims Act by obtaining a Paycheck Protection Program (PPP) loan for which it was not eligible.

Source: United States Department of Justice Criminal Division

PENSACOLA, FLORIDA – Malcolm Terrell Louis, 40, of Pensacola, was sentenced to 17 years in federal prison after previously pleading guilty to two counts of possession with intent to distribute 5 grams of more of methamphetamine, cocaine, and marijuana, two counts of possession of a firearm in furtherance of a drug trafficking offense, and two counts of possession of a firearm by a convicted felon. 

Source: United States Department of Justice Criminal Division

An Illinois businessman was sentenced yesterday to six years in prison and two years of supervised release for his role in schemes to fraudulently obtain over $55 million in commercial loans and lines of credit, as well as for submitting fraudulent applications to obtain COVID-19 relief money guaranteed by the U.S. Small Business Administration (SBA) through the Paycheck Protection Program (PPP). He was also ordered to pay $ 23,226,005 in restitution.

“The defendant orchestrated a massive scheme to fraudulently obtain over $55 million in commercial loans and lines of credit from federally insured financial institutions and exploit the Paycheck Protection Program,” said Assistant Attorney General A. Tysen Duva of the Criminal Division. “The defendant’s lies and deceit put our financial system at risk and wasted limited resources. The Criminal Division remains dedicated to prosecuting fraudsters who steal from our important institutions and taxpayer-assistance programs.”

“The duration, brazenness, and magnitude of this fraud scheme speaks to the defendant’s determination and greed,” said U.S. Attorney Andrew S. Boutros for the Northern District of Illinois. “The fact that such a sophisticated scheme was uncovered and successfully prosecuted is a testament to the diligent work of our prosecutors and federal law enforcement agents. Our Office was proud to partner with the Department of Justice Fraud Section on this case and many others that hold defendants accountable and provide justice for defrauded victims.”

According to court documents and evidence presented at trial, Rahul Shah, 56, of Evanston, the owner and operator of several information-technology companies in the Chicago area, fraudulently obtained funds from loans and lines of credit for which he was not eligible from federally insured financial institutions and later defaulted on at least one such line of credit and one such loan. Shah submitted to federally insured financial institutions falsified bank statements that fraudulently inflated deposits, falsified balance sheets that overstated revenues, and fabricated audited financial statements with forged signatures. Shah also engaged in monetary transactions with proceeds from the bank fraud.

In addition, Shah submitted to a federally insured bank an application for a $441,138 loan guaranteed by the SBA that significantly overstated the payroll expenses of a company he controlled. In support of the loan application, he submitted to the lender several fraudulent IRS documents, which falsely represented that the company made payments to multiple individuals who had not received such payments. He also used stolen identities in the PPP loan application to carry out the fraud, listing the names and taxpayer-identification numbers of individuals that he knew had not received payments from the company.

Shah signed and caused to be submitted to the lender what purported to be IRS Forms 941 representing his company’s quarterly payroll expenses for 2019. A comparison between the documents submitted to the lender and the company’s IRS and state tax filings revealed that Shah’s company reported significantly lower payroll expenses to the tax authorities.

In July 2025, Shah was convicted of seven counts of bank fraud, five counts of making false statements to a financial institution, two counts of money laundering and two counts of aggravated identity theft.

The FBI and Small Business Association Office of Inspector General (SBA-OIG) investigated the case.

Assistant Chief Patrick Mott and Trial Attorney Lindsey Carson of the Criminal Division’s Fraud Section prosecuted the case with the U.S. Attorney’s Office for the Northern District of Illinois.

The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the enactment of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Source: United States Department of Justice Criminal Division

COLUMBIA, S.C. — Jalik Shykeil Tucker, 31, of Sumter, has been sentenced to more than 19 years in federal prison for possession with the intent to distribute 500 grams or more of methamphetamine, 40 grams or more of fentanyl, and a quantity of cocaine and crack cocaine.

Source: United States Department of Justice Criminal Division

Tampa, Florida – Terrance Bradford (47, Tampa) was sentenced by U.S. District Judge Virginia M. Hernandez Covington to 30 months in federal prison for obtaining multiple fraudulent COVID relief loans. As part of his sentence, the court also entered an order of forfeiture of $533,648.32, which represents the proceeds he obtained through these offenses. U.S. Attorney Gregory W. Kehoe made the announcement.

Source: United States Department of Justice Criminal Division

Tampa, FL – A federal jury has found Nidia Roxana Maradiaga-Flores (28), an illegal alien from Honduras, guilty of aggravated identity theft, false representation of a Social Security number, and making a false claim of United States citizenship for employment purposes. Maradiaga-Flores faces a maximum penalty of 12 years in federal prison. Her sentencing hearing is scheduled for April 17, 2026. U.S. Attorney Gregory Kehoe made the announcement.

Source: United States Department of Justice Criminal Division

The Justice Department, acting on referral from the Federal Trade Commission (FTC), announced today that a federal court has entered a stipulated order resolving a case against Dun & Bradstreet Inc., doing business as D&B. Under the court’s order, Dun & Bradstreet will pay a $2,063,000 civil penalty and $2,785,786 in customer refunds, in addition to $924,590 of refunds it has already issued, to resolve allegations that it violated an FTC order.

The FTC entered an administrative order against Dun & Bradstreet in 2022 based on alleged unfair or deceptive business practices prohibited by the FTC Act. According to a complaint filed in the Middle District of Florida, Dun & Bradstreet violated provisions of that order requiring it to (1) accurately notify customers of the automatic renewal prices of its products; (2) not misrepresent its products; and (3) create and maintain records of its compliance with the order. The complaint alleges that in connection with its sale of credit-related services to small businesses, Dun & Bradstreet sent many of its customers inaccurate pricing notices, omitted or misrepresented certain facts about its products during sales calls, and failed to retain all of the call recordings required by the order.

“The Justice Department is committed to ensuring that American small businesses receive accurate information about the products and services they purchase,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department will continue to work with the FTC to enforce its orders and hold violators accountable.”

“Our signed orders are not suggestions,” said Director Christopher Mufarrige of the FTC’s Bureau of Consumer Protection. “This settlement is another example of the Bureau’s effort to reinvigorate its fraud program and protect small businesses from deceptive and unlawful conduct.”

The United States is represented in this action by Senior Trial Attorney Sarah Williams and Assistant Director Zachary A. Dietert from the Enforcement Section of the Civil Division’s Enforcement and Affirmative Litigation Branch. Assistant U.S. Attorney Lacy R. Harwell, Jr. for the Middle District of Florida provided assistance. Christopher J. Erickson and Taylor H. Bates represent the FTC.

For more information about the Enforcement Section of the Civil Division’s Enforcement and Affirmative Litigation Branch, visit www.justice.gov/civil/enforcement-affirmative-litigation-branch.

Source: United States Department of Justice Criminal Division

HONOLULU – United States Attorney Ken Sorenson announced that Travis Kalani Hong-Ah Nee, 36, of Oahu, was sentenced on January 12 in federal court by Senior United States District Judge J. Michael Seabright to a total of 78 months in federal prison followed by 5 years of supervised release after pleading guilty to conspiring to distribute and possess with intent to distribute carfentanil, possessing with intent to distribute carfentanil, and possessing ammunition after having been previously convicted of a felony.