DOJ Announces Nationwide Coordinated Investigations Exceeding $490 Million

By F.J. Thomas?

Sarasota, FL (WorkersCompensation.com) – Earlier this month, the Department of Justice announced criminal charges related to COVID-19 fraud schemes against 18 defendants across nine federal districts. The charges involve over $490 million in COVID-19 related services fraudulently billed to federal programs and represents the largest investigation to date surrounding exploitation of the COVID-19 pandemic.

Law enforcement has already sized over $16 million in cash due to the investigation. Additionally, 28 medical providers have received adverse administrative actions for their alleged involvement in the COVID-19 schemes.?

A complex investigation, the charges involve a host of alleged criminal activity ranging from billing for medically unnecessary lab tests and medical services to fraudulent loan applications through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) Program. Additionally, there are charges involving fake vaccination cards distributed in several states.?

Nicholas Frank Sciotto of Salt Lake City, Utah was charged by indictment for allegedly manufacturing and selling approximately 120,000 counterfeit COVID-19 vaccination record cards online. Although most of his customers were located in New York, Kyle Blake Burbage of Goose Creek, South Carolina allegedly purchased and distributed Sciotto’s card across South Carolina. Both men have been charged with conspiring to defraud the United States by obstructing the Centers for Disease Control and Prevention’s (CDC) COVID-19 vaccination program.?

Kelly McDermott of Albany, and Kathleen Breault of Cambridge, New York were charged by indictment in a case alleging the pair were involved in a scheme to distribute 2,700 forged COVID-19 vaccination cards. Both are certified midwives working at Sage-Femme Midwifery PLLC. Sage-Femme was one of the largest volume vaccination sites in New York, with more volume that much larger state-run vaccination sites.?

In California, Lourdes Navarro of Glendale as was charged in a superseding indictment with conspiracy to commit health care fraud and wire fraud, health care fraud, conspiracy to commit money laundering, and making false statements. The charges surround an investigation into the questionable operation of a lab she operated that was controlled and owned by her husband, Imran Shams. Investigators allege that Matias Clinical Laboratory, Inc., also known as Health Care Providers Laboratory, billed for COVID-19 screening testing but added charges for respiratory pathogens panels or RPP tests that were not needed by the patient population that the lab served. The estimated charges billed totals $241 million with a reimbursement total of $39.9 million.?

The HRSA COVID-19 Uninsured Program was set up to provide claims reimbursement to health care providers who are providing treatment for uninsured individuals when COVID-19 is the primary reason for treatment. Anthony Hao Dinh, MD of Orange County, California was charged for allegedly billing out $230 million in fraudulent charges under the Uninsured program. In fact, according to the case summary, Dinh was the second highest biller in the country. Investigators allege that he billed for services that were not rendered and that were not medically necessary. Additionally, he’s charged with two others, Matthew Ho, MD of Brevard County, Florida and Hanna T. Dinh also of Orange County. The group has been charged for submitting over 70 fraudulent loan applications under federal programs to gain over $3 million in federal funds.?

In Florida, Corey Alston and Latresia Wilson, MD were charged with conspiring to illegally purchase and arrange for the purchase of Medicare beneficiary identification numbers in order to bill Medicare for over the counter COVID-19 tests that were not eligible for reimbursement. The pair allegedly billed out over $8.4 million to Medicare for over the counter tests that were billed out without beneficiary request or approval.?

In Slidell, Louisiana, Melissa J. Watson was charged by indictment with theft of public money, wire fraud, and money laundering. The charges stem from alleged scheme in which Watson misappropriated over $1.1 million from the Provider Relief Fund. Investigators allege that Watson operated a primary care clinic and spa and used the funds gained through fraudulent loan agreements to purchase luxury vehicles, real estate, and luxury vacations. The federal government seized over $500,000 in Watson’s bank account, as well as several large item assets.?

In Baton Rouge, Louisiana, Adolphus A. Obioha was charged by indictment with wire fraud and money laundering. Investigators assert that as an owner of a medical transport business, Obioha fraudulently obtained funds under disaster emergency federal programs and then used the money to purchase rental property, a vehicle, and wire $175,000 overseas. Investigators seized a total of $136,234.09 in multiple banking accounts held by Obioha.

“The Justice Department will not tolerate those who exploited the pandemic for personal gain and stole taxpayer dollars,” said Attorney General Merrick B. Garland. “This unprecedented enforcement action against defendants across the country makes clear that the Department is using every available resource to combat and prevent COVID-19 related fraud and safeguard the integrity of taxpayer-funded programs.”

“Today’s announcement marks the largest-ever coordinated law enforcement action in the United States targeting health care fraud schemes that exploit the COVID-19 pandemic,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The Criminal Division’s Health Care Fraud Unit and our partners are committed to rooting out pandemic-related fraud and holding accountable anyone seeking to profit from a public health emergency.”