Category: MIL-OSI

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Doctor Convicted at Trial for Defrauding IRS and Health Care Insurers

Source: United States Department of Justice Criminal Division

A federal jury in Boston, Massachusetts, convicted a medical doctor Tuesday for health care fraud, money laundering, conspiracy to defraud the IRS, and tax evasion.

“Over ten years, the defendant hid millions in income from the IRS and defrauded insurers through his medical practice,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “The defendant—a highly educated physician — put greed over his integrity, lining his own pockets through lies and deceit at the expense insurers and Americans who pay healthcare premiums, then doubling down on his lies and deceit and attempting to hide his ill-gotten gains from the IRS. The Criminal Division will prosecute doctors and other professionals like this defendant who abuse the system, and through their crimes, inflate insurance costs for all Americans and fail to pay their taxes due and owing.”

According to court documents and evidence presented at trial, Dr. Pankaj Merchia, of Boca Raton, Florida and Brookline, Massachusetts, was a Harvard-educated sleep doctor who controlled several sleep medicine companies. From 2017 to 2019, the defendant fraudulently billed  insurance companies millions of dollars for sleep apnea machines that had not been used by his former patients for years. Merchia billed up to hundreds of thousands of dollars per patient for the medical devices, even when in some cases those patients had returned the devices to him. Merchia used the proceeds of the fraud to purchase a $2.1 million home in Brookline, Massachusetts.

Merchia also defrauded a health insurer out of over $390,000 by submitting fraudulent claims for treating his brother. After being told that he could not bill insurance for treating a family member, Merchia created a new medical business in the name of a nominee and submitted new claims so that the insurance company would continue paying the illicit reimbursement. 

In addition, from 2009 to 2019, Merchia did not report, or pay tax on, over $6.5 million [PC1] in income he earned from his medical businesses by falsely claiming that those businesses were owned by a co-conspirator. To defraud the IRS, Merchia fabricated a sham transaction, falsely claiming that he sold his medical businesses back in 2008. To ensure that his co-conspirator did not owe taxes, they claimed deductions, spread across many years, for the fabricated sale payment. 

Merchia was convicted of one count of health care fraud, three counts of money laundering, one count of conspiracy to defraud the IRS, and two counts of tax evasion. He is scheduled to be sentenced on April 28, 2026. Each count of healthcare fraud and money laundering carries a maximum penalty of ten years in prison. Tax evasion and conspiracy to defraud the IRS each carry a maximum penalty of five years in prison.

IRS Criminal Investigation and the Insurance Fraud Bureau of Massachusetts are investigating the case.

Trial Attorney Ezra Spiro of the Criminal Division’s Tax Section and Assistant U.S. Attorney Neil Gallagher of the District of Massachusetts are prosecuting the case.

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Lake County Man Pleads Guilty to Firearms Trafficking

Source: United States Department of Justice Criminal Division

Ocala, Florida – Fernando Munguia, Jr. (24, Leesburg) has pleaded guilty to nine counts of making a materially false statement in connection with the acquisition of a firearm and nine counts of causing a federal firearm licensee (FFL) to maintain false information in its official records. Munguia faces up to 10 years in federal prison for each false statement count and up to five years’ imprisonment for each count of causing an FFL to maintain false information in its official records. As part of his plea, Munguia has agreed to forfeit the nine firearms related to these offenses. U.S. Attorney Gregory W. Kehoe made the announcement.

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Mexican Citizen Pleads Guilty to Fourth Illegal Re-Entry Charge

Source: United States Department of Justice Criminal Division

Baltimore, Maryland – A Mexican citizen pled guilty in federal court, today, to illegally re-entering the United States, and received a nine-month sentence. On January 18, 2025, Baltimore City Police Department (BPD) officers arrested Marvin Escobar-Artega, 34, and discovered Escobar-Artega was an illegal alien previously removed from the U.S.

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Western District of Virginia Recognizes National Human Trafficking Prevention Month

Source: United States Department of Justice Criminal Division

CHARLOTTESVILLE, Va. – Today the Western District of Virginia observes National Human Trafficking Prevention Month and joins the Departments of Justice (DOJ) and Homeland Security (DHS) in reaffirming the administration’s commitment to combating all forms of human trafficking and protecting victims and survivors. Human Trafficking Prevention Month presents an opportunity for DHS and DOJ, through Homeland Security Task Forces (HSTF) to intensify operational efforts, raise public awareness, and strengthen partnerships across federal, state, and local agencies to disrupt trafficking networks, protect vulnerable individuals, and ensure traffickers are brought to justice.

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Virginia Man Pleads Guilty to Making a Bomb Threat on a Plane

Source: United States Department of Justice Criminal Division

Tampa, Florida – Taj Malik Taylor (27, Madison Heights, VA) has pleaded guilty to one count of false information and making threats. Taylor faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set. U.S. Attorney Gregory W. Kehoe made the announcement.

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Orlando Man Indicted for Bank Fraud, False Statements, and Obstruction

Source: United States Department of Justice Criminal Division

Jacksonville, FL – Donald Heflin Mitchell (49, Orlando), a/k/a Arissess Maven Anglo-Busari Jr., has been charged by indictment with six counts of bank fraud, two counts of false statements on loan applications, and one count of obstruction of justice. If convicted, Mitchell faces a maximum penalty of 30 years in federal prison for each count of bank fraud and making a false statement. He faces up to 10 years’ imprisonment for the obstruction offense. The indictment also notifies Mitchell that the United States is seeking an order of forfeiture in the amount of $74,320, the proceeds of the alleged bank fraud. U.S. Attorney Gregory W. Kehoe made the announcement.

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Clay County Man Sentenced to Federal Prison for Possessing a Loaded Firearm as a Convicted Felon

Source: United States Department of Justice Criminal Division

Jacksonville, Florida –David Neil Haas (38, Clay County) has been sentenced by U.S. District Judge Jordan E. Pratt to 46 months in federal prison for possessing a firearm as a convicted felon. The court also ordered Haas to forfeit a Bryco Jennings 9mm pistol and ammunition, which was used in the commission of the offense. Law enforcement arrested Hass on September 22, 2025, and he was subsequently detained. Haas pleaded guilty on October 28, 2025. U.S. Attorney Gregory W. Kehoe made the announcement.

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Antitrust Division and U.S. Postal Service Make First-Ever Whistleblower Payment: $1M Awarded for Reporting Antitrust Crime

Source: United States Department of Justice Criminal Division

Whistleblower Report Led to Charges, a Deferred Prosecution Agreement, and $3.28 million fine against an International Corporation

The Antitrust Division today announced its first-ever whistleblower reward: a $1 million reward to a whistleblower who provided information that led to EBLOCK Corporation resolving criminal antitrust and fraud charges through a deferred prosecution agreement, under which it has agreed to pay a $3.28 million criminal fine.

EBLOCK Corporation offers an online auction platform for used vehicles. In November 2020, EBLOCK acquired Company A, another online auction platform for used vehicles. According to the Criminal Information and Deferred Prosecution Agreement filed today in the U.S. District Court for the Central District of California, EBLOCK did not take immediate action after the acquisition to end the bid-rigging conspiracy and fraud at Company A. From November 2020 to February 2022, individuals at Company A conspired with individuals at Company B to suppress and eliminate competition for used vehicles sold on Company A’s online auction platform, in violation of the Sherman Act, 15 U.S.C. § 1. EBLOCK also did not take immediate action to end “shill bidding” on Company A’s platform, resulting in the placement of fake bids intended to artificially increase the sales prices for used vehicles, in violation of 18 U.S.C. § 1343.

“Whistleblowers serve as the Justice System’s greatest disinfectant against criminal antitrust conspiracies,” said Deputy Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division. “A car is the second largest purchase most Americans will make in their lifetimes. This whistleblower helped expose a brazen $16 million scheme that made it more expensive for hardworking Americans to afford second-hand cars across the country. This $1 million reward not only recognizes a whistleblower for bravely stepping forward to report crimes to the Antitrust Division, but also underscores the indispensable role whistleblowers will continue to play in the Division’s criminal enforcement program. Remember, the first company in an antitrust cartel that reports its collusion to the Antitrust Division might receive Leniency — but the race is faster now, because employees and their attorneys are incentivized to blow the whistle and beat their companies to the Division’s doorstep.”

“Today’s reward shows that the Antitrust Division leverages whistleblower reports to drive forward our investigations,” said Acting Director of Criminal Enforcement Daniel Glad of the Justice Department’s Antitrust Division. “If a whistleblower provides new information that ultimately assists the Antitrust Division in bringing charges, the whistleblower might receive a significant award — even if the criminal activity has already ended.”

“Whistleblowers play a critical role in helping law enforcement to identify and investigate a wide variety of criminal activities,” said Acting Assistant Director Mark Remily of the FBI’s Criminal Division. “In this case, information from a whistleblower led to the identification and dismantlement of a criminal antitrust conspiracy, that if unreported, would have continued to harm American consumers who were unknowingly overpaying for automobiles.”

“In this case, the defendant used the U.S. Mail to send documentation related to the scheme; a scheme that valued illegal profits over protecting unsuspecting car buyers. The Postal Inspection Service does not tolerate this abuse of the U.S. Mail or its customers and will pursue these types of criminals wherever they are,” said Chief Postal Inspector Gary Barksdale. “This $1 million dollar award comes only six months after the Whistleblower Rewards Program first started. This award shows the commitment the U.S. Postal Service and the Antitrust Division to support those who provide accurate, actionable intelligence about antitrust and related competition crimes with a connection to the U.S. Mail.”

As described in the court documents, legacy employees at Company A conspired with employees at Company B to share bidding information and agree on the maximum amount Company A or Company B would bid on certain vehicles. Company A employees provided special access and user permissions to Company B that enabled it to view the confidential bidding information of other buyers and sellers on its auction site. The co-conspirators maintained a shared inventory of vehicles purchased pursuant to the bid rigging scheme, and they coordinated to relist those vehicles and place shill bids with the intention of artificially increasing the prices paid by legitimate buyers. They also misrepresented the numbers and identities of these fake bidders during the online auctions by commissioning the development of software that would automatically place shill bids under the names of actual auto dealerships without those dealerships’ consent. The co-conspirators pooled and split the profits from the scheme. During the course of these actions, various documents in support of the scheme were sent via U.S. Mail.

In addition to the $3.28 million fine, the deferred prosecution agreement requires EBLOCK to undertake remedial measures, including implementing an appropriate compliance program and cooperating with the Justice Department’s ongoing criminal investigation and any resulting prosecutions.

Federal law protects employees who report criminal antitrust violations from retaliation by their employers. At all times, the Antitrust Division will take reasonable steps to protect whistleblowers and minimize risks that use of the information will lead to public identification. More information on confidentiality and anti-retaliation protections is on the Confidentiality page.

The Antitrust Division works with its law enforcement partners the U.S. Postal Inspection Service and the U.S. Postal Service Office of Inspector General to pay rewards to whistleblowers. Whistleblowers who voluntarily report original information about antitrust and related offenses that result in criminal fines or other recoveries of at least $1 million may be eligible to receive a whistleblower reward. Whistleblower awards can range from 15 to 30 percent of the money collected. For more information on the Antitrust Whistleblower Rewards Program, including a link to submit reports, visit www.justice.gov/atr/whistleblower-rewards.

The Federal Bureau of Investigation and the U.S. Postal Inspection Service investigated the case. Trial Attorneys Melanie Krebs-Pilotti and Patrick Hallagan, and Assistant Chief Kristina Srica for the Antitrust Division’s Washington Criminal Section, are prosecuting the case.

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Slidell Chiropractor Sentenced For Health Care Fraud

Source: United States Department of Justice Criminal Division

NEW ORLEANS – JOHN DENNIS MICHAEL PEYROUX (“PEYROUX”), age 58, of Slidell, Louisiana, was sentenced on January 26, 2026 by U.S. District Judge Lance M. Africk for conspiracy to commit healthcare fraud, in violation of 18 U.S.C. §§ 1347 and 1349, in connection with a scheme to bill Medicare for over-the-counter (“OTC”) COVID-19 test kits that were not requested or otherwise ineligible for reimbursement, announced United States Attorney David I. Courcelle.