Category: MIL-OSI

Source: United States Department of Justice Criminal Division

A Louisiana chiropractor was sentenced today to seven years in prison for his role in health care fraud and unemployment insurance fraud schemes.

According to court documents and evidence presented at trial, Dr. Benjamin Tekippe, 40, of New Orleans, was a chiropractor and owner of Metairie Chiropractic & Rehab in New Orleans. Tekippe solicited patients with insurance from Blue Cross Blue Shield of Louisiana (BCBSLA) to visit his clinic by misleadingly offering “free” chiropractic massages for BCBSLA members. Tekippe would typically bill their insurance for the massage, which was generally a full-body massage performed by a massage therapist, and which was not covered. Tekippe would also routinely bill BCBSLA for several other chiropractic services that were either not performed or not performed as billed, including thousands of false and fraudulent claims for chiropractic services he purportedly provided to patients while he was out of the office, including on vacation in Aruba and incarcerated in Arizona and Washington in connection with state charges. When audited by BCBSLA, Tekippe fabricated patient records and instructed his staff to rewrite them in their own handwriting to make it falsely appear that services had been performed as billed. In total, Tekippe submitted over $2.3 million in claims to BCBSLA, and was paid approximately $740,000. Evidence at trial showed that Tekippe spent the fraudulent proceeds on luxury goods and gambling, including over $90,000 at Harrah’s Casino in New Orleans, among other things.

In addition, during the COVID-19 pandemic, Tekippe submitted weekly certifications falsely claiming that he was unemployed when he was billing for chiropractic services purportedly performed during his claimed unemployment. Through this scheme, Tekippe received $12,952 in unemployment insurance benefits to which he was not entitled.

In April 2025, Tekippe was convicted by a federal jury of six counts of health care fraud and one count of wire fraud. In addition to the prison sentence, he was ordered to pay$753,794.36 in restitution.

Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division; Acting U.S. Attorney Michael M. Simpson for the Eastern District of Louisiana; and Special Agent in Charge Jason Meadows of the Department of Health and Human Service Office of the Inspector General (HHS-OIG) Dallas Region, Baton Rouge Field Office made the announcement.

The FBI and HHS-OIG investigated the case.

Trial Attorneys Kelly Z. Walters and Samantha Usher of the Criminal Division’s Fraud Section prosecuted 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 9 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

A Tennessee man pleaded guilty on Wednesday to tax crimes and wire fraud for his role in a scheme to claim fraudulent refunds based on false COVID-19 employment tax credits.

The following is according to court documents and statements made in court: Edward Zanes, of Kingsport, Tennessee, conspired with others to file false tax returns seeking fraudulent refunds based on the employee retention credit and paid sick and family leave credit, both of which were created by Congress to aid struggling businesses during the COVID-19 global pandemic. Zanes and co-conspirators created phony businesses, which lacked any employees or operations, for the sole purpose of claiming the bogus credits. Zanes aided in filing numerous false tax returns for those phony businesses and directed the tax returns to be mailed to addresses he and co-conspirators controlled.

In total, Zane and his co-conspirators filed false tax returns that claimed over $3.4 million in tax refunds and received over $1.8 million from the IRS.

Zanes is set to be sentenced on Jan. 7, 2026. He faces a maximum penalty of 20 years in prison for conspiring to commit mail and wire fraud, a maximum penalty of 20 years in prison for each count of mail fraud, and a maximum penalty of 3 years in prison for each count of aiding and assisting in the filing of a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

IRS Criminal Investigation and the U.S. Secret Service investigated the case.

Trial Attorney Zachary A. Cobb of the Justice Department’s Tax Division and Assistant U.S. Attorney Mac Heavener for the Eastern District of Tennessee are prosecuting the case.

Source: United States Department of Justice Criminal Division

Defendant Evaded Taxes on Millions Earned from Selling Internet to American Soldiers

Source: United States Department of Justice

An indictment was unsealed yesterday in the Eastern District of Virginia charging two men with orchestrating a securities fraud scheme utilizing Ostin Technology Group Co. Ltd. (OST) stock to target American retail investors. The charged scheme netted over $100 million for the defendants and their co-conspirators, who siphoned OST shares in non-bona fide securities transactions and then dumped their stock amidst a coordinated social media campaign to pump OST’s share price from April to June 2025. The Department of Justice has already seized nearly $10 million in assets from co-conspirators’ accounts.

“The defendants targeted American retail investors through a predatory pump and dump scheme to take advantage of the artificial inflation of the price of OST shares,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Today’s charges show the Criminal Division’s focus on aggressively protecting Americans from foreign actors seeking to exploit U.S. markets. Through the hard work of our prosecutors and law enforcement partners, we will continue to act quickly to seize the proceeds of these crimes and mitigate losses for victims.”

“Protecting the integrity of our financial markets remains a top priority,” said U.S. Attorney Erik S. Siebert for the Eastern District of Virginia. “Anyone who picks the pockets of American investors in violation of the law will be aggressively prosecuted. The Department of Justice has established whistleblower programs to encourage corporations and individuals to come forward with timely information regarding misconduct and criminal behavior. Failing to do so invites serious consequences.”

“Securities fraud by foreign actors not only exploits fair investment practices, but also defrauds American investors and harms U.S. markets,” said Assistant Director Jose A. Perez of the FBI’s Criminal Investigative Division. “Today’s charges demonstrate the FBI’s continued commitment, alongside our partners, to combatting financial crime and bringing perpetrators to justice.”

“The SEC-Office of Inspector General (SEC-OIG) will relentlessly investigate individuals who submit false filings with the SEC,” said Inspector General Kevin Muhlendorf of the SEC. “Comprehensive investigative oversight to protect investors, the global markets, and the operational integrity of the SEC’s programs, systems, and operations is a top priority for our office.”

According to the indictment, Lai Kui Sen is the co-CEO of OST, and Yan Zhao, who goes by the aliases Hank Shi and Hank Shu, among others, is a financial advisor. OST is a Cayman Islands company with its principal operations in China, that claimed to be a manufacturer of display modules used in consumer electronics, commercial LCD displays, and automotive displays. OST is publicly traded on NASDAQ and operated, at one point, with a variable interest entity (VIE) investment structure, which is often used by Chinese companies.

According to the indictment, Sen, Zhao, and others allegedly engaged in a complex scheme to first provide a group of fifteen co-conspirators with tens of millions of OST shares through two non-bona fide securities transactions. In one of these transactions, these co-conspirators paid nothing to OST for more than 70 million OST shares. 

The indictment alleges that, on April 15, 2025, the same day that the select investors received their first tranche of heavily discounted OST shares, a fraudulent campaign began to artificially inflate the price and trading volume of the OST stock. This included promoting the stock by impersonating real investment advisors, among others, promoting the stock on social media, and creating a false impression of market-wide buying momentum.  To capitalize on OST’s artificial price inflation and to harm the victim investors, Zhao and Sen facilitated the opening of brokerage accounts for certain select investors and orchestrated the selling of the shares that they had received either heavily discounted or for no remuneration. These sales generated substantial profits of approximately more than $110 million.  Ultimately, according to the indictment, unwitting investors suffered significant losses when, on June 26, 2025, OST lost over $950 million in market capitalization, representing over 94% of its value. 

Both defendants are charged with conspiracy to commit securities fraud and wire fraud, securities fraud, and wire fraud. If convicted, the defendants face a maximum penalty of 20 years in prison for conspiracy and wire fraud, 25 years in prison for Title 18 securities fraud, and 20 years in prison for Title 15 securities fraud. A federal judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI and SEC-OIG investigated the case. The Department of Justice appreciates the efforts of FINRA’s Surveillance and Market Intelligence – Market Abuse Group who referred this matter.

Trial Attorney Kashan K. Pathan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Avi Panth for the Eastern District of Virgina are prosecuting the case.

An indictment is merely an allegation. 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

A nine-count indictment was unsealed in the Western District of Tennessee charging six alleged members of a criminal street gang known as Unknown Vice Lords (UVL) – Ghost Mob with conspiracy to commit murder, attempted murder, assault with a dangerous weapon, and firearms violations.

“As alleged, these individuals showed a blatant disregard for public safety, engaging in a retaliatory gang shooting in a residential neighborhood,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Gang violence inflicts profound harm on our communities, fostering fear, destabilizing neighborhoods, and  damaging the quality of life for law-abiding residents. The arrest of these violent gang members underscores the Justice Department’s unwavering commitment to protecting public safety and the rule of law. We will continue to dismantle these criminal organizations and protect the safety and security of our citizens.”

“The premeditated and horrendous acts of violence that these gang members committed demonstrates a blatant disregard for human life,” said Special Agent in Charge Jamey VanVliet of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Nashville Field Division. “The men and women of the ATF, along with our local, state, and federal law enforcement partners, remain committed to combatting violent crime and swiftly bringing these individuals to justice before they commit other senseless acts of violence.”

According to court documents, the UVL Ghost Mob is a violent, criminal street gang that operates throughout the Western District of Tennessee and elsewhere. The UVL Ghost Mob is a subset of the Almighty Vice Lord Nation, which originated in Chicago and eventually spread to other parts of the United States, including Tennessee.

Court documents allege that on Sept. 6, 2020, after  rival gang members opened fire on UVL Ghost Mob members and their families, injuring four people, UVL Ghost Mob leaders ordered a retaliatory attack. Shortly after midnight on Sept. 7, 2020, the defendants travelled to the residence of the rival gang members, armed with assault style rifles and wearing masks and gloves. The defendants intentionally shot approximately 40-50 bullets into the residence while the rival gang members were inside. Neighborhood security cameras captured the shooting. In the video, the defendants are depicted using, carrying, and firing multiple firearms into the residence.

The following defendants were charged for their role in the offense:

• Antwon Brown, also known as Yayo, 32 of Memphis, Tennessee;
• Cordera Douglas, also known as Chuckie Dee, 36 of Memphis, Tennessee;
• Willie Merriweather, 41 of Antioch, Tennessee;
• Tevin Richardson, also known as Santana, 34 of Memphis, Tennessee;
• Ricky Rogers, Jr., also known as Double R, RR, 32 of Memphis, Tennessee; and
• Laraveus Williams, also known as Ray Ray, 32 of Memphis, Tennessee;

Assault with a dangerous weapon in aid of racketeering carries a maximum penalty of 20 years’ imprisonment. Conspiracy to commit murder and attempted murder in aid of racketeering carries a maximum sentence of 10 years’ imprisonment. The charge of discharging a firearm during and in relation to a crime of violence carries a mandatory sentence of at least 10 years consecutive to any other sentence. If convicted, a federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The ATF and Memphis Police Department investigated the case.

Trial Attorneys Lisa M. Thelwell and Dennis Robinson of the Criminal Division’s Violent Crime and Racketeering Section are prosecuting the case, with substantial assistance from the United States Attorney’s Office for the Western District of Tennessee.

This case is part of the Criminal Division’s Violent Crime Initiative to prosecute violent crimes in Memphis, Tennessee, and surrounding areas. The Criminal Division and the U.S. Attorney’s Office for the Western District of Tennessee have partnered, along with local, state, and federal law enforcement agencies, to confront violent crimes committed by gang members and associates through the enforcement of federal laws and use of federal resources to prosecute the violent offenders and prevent further violence.

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