Fraud Cases

“MyRxForLess” Owners Guilty of Importing Phony Phamaceuticals from Mexico

Fraud Cases | Links to Press Releases | Prescription Drug Fraud

United States Attorney Carol C. Lam announced today that three of the principals of an Internet pharmacy business known as “MyRxForLess” pled guilty in federal district court in San Diego before United States District Judge Jeffrey T. Miller to federal charges related to their roles in an Internet pharmacy scheme. Charles William Naron pled guilty to conspiracy, conspiracy to launder money and to criminal forfeiture. In his plea, Naron admitted that beginning in December 2002, and continuing up to the time of his arrest on November 5, 2004, he, together with Stephen Lewis and Pamela Lewis, operated an Internet pharmacy business, known as MyRxForLess, located in Lake Worth, Florida. Naron acknowledged that MyRxForLess had a website by which customers could order prescription drugs without having a prior prescription. The website falsely stated that all the drugs were obtained from a reputable Mexican pharmacy, and falsely indicated that individuals could lawfully import a 90-day supply of prescription pharmaceuticals into the United States from Mexico.

3 Plead Guilty in $2 M Scheme to Steal Insulin From the Army

Fraud Cases | Links to Press Releases
WICHITA, KAN. – United States Attorney Eric Melgren announced that three people charged with participating in a scheme to steal insulin from the medical supplies of the U.S. Army have entered guilty pleas. U.S. District Judge J. Thomas Marten in Wichita received guilty pleas Jan. 26, 2005, from John W. Cooper, 29, Elizabethtown, Ky.; Donna Cooper, Elizabethtown, Ky.; and Max H. Thomas, 22, Fort Riley, Kan. John Cooper pleaded guilty to conspiracy to ship stolen merchandise in interstate commerce and to a count seeking forfeiture of cash and real estate obtained as a result of the crime.

Former pharmacist pleads guilty to felonies (Mohave Daily News)

Fraud Cases | Links to Press Releases
KINGMAN — A former Bullhead City pharmacist pleaded guilty Monday in Mohave County Superior Court to two of the three felony charges he faced. Howard Jones, 55, was originally charged with fraudulent schemes and artifices, theft and acquiring a narcotic drug.


Fraud Cases | Links to Press Releases
188 Fraud Counts Charged The United States Attorney’s Office for the Northern District of California announced the return of a second superseding indictment charging Dilbagh S. Chattha, M.D., 52, of Pleasanton, California, with 94 counts of health care fraud and 94 counts of mail fraud. The initial indictment in this case was returned by a grand jury on January 8, 2004. According to the indictment, Dr. Chattha is alleged to have submitted bills for reimbursement by the U.S. Department of Labor, the U.S. Department of Health and Human Services, and the State of California Workers’ Compensation Program in which he claimed that he:


Fraud Cases | Links to Press Releases
Boston, MA… Four men from Newton, Shrewsbury, Marblehead and Gloucester were charged today in federal court with fraud and money laundering in connection with false billings to insurance companies for medical tests. IGOR MOYSEYEV, age 45, of Newton, SEVERIN YELAUN, age 30, of Shrewsbury, DR. DAVID TAMAREN, age 60, of Marblehead, and JOHN MONTONI, age 51, of Gloucester, were charged in an Indictment with Mail Fraud, Wire Fraud, Health Care Fraud, Money Laundering and Conspiracy. According to the Indictment, MOYSEYEV and YELAUN were the principals of Global Tech Diagnostics based in Chelsea, Massachusetts, and YELAUN was the principal of Lynn Diagnostics Management based in Lynn, Massachusetts. The Indictment alleges that between 1999 and 2002, Global Tech and Lynn Diagnostics billed insurance companies for diagnostic examinations that were not conducted. The billings submitted also contained other fraudulent misrepresentations. It is alleged that the Global Tech billings exceeded $100,000 and the Lynn Diagnostics billings exceeded $50,000.


Fraud Cases | Links to Press Releases
Topeka, Kan. – United States Attorney Eric Melgren announced that Melissa Cyr, 24, Topeka, Kan., has pleaded guilty to making false statements relating to health care matters. She entered a plea Jan. 11, 2005, before U.S. District Judge Sam A. Crow in Topeka, Kan. In her plea, Cyr admitted that she fraudulently received more than $4,500 in bonuses by falsifying computer entries to Medicare records. Cyr was employed by Blue Cross/Blue Shield of Kansas as a Medicare Secondary Payor claims processor during the period from May 1998 to January 2004. Blue Cross had a practice called the Employee Performance Incentive Program that

Modesto chiropractor arrested - $10M scam

News and Commentary | Fraud Cases

“Investigators believe that at least $10 million has been drained from a system whose costs are already harming our economy.” Insurance Commissioner John Garamendi

William Origel, Rebecca Benedict, and Robin Barney were charged with felony counts of insurance fraud, grand theft, and practicing medicine without certification. Origel is the owner of Med-1 Medical Center, P.C., and Unique Healthcare Management, Inc. Origel, with help from Bendict and Barney allegedly over-billed workers’ compensation and auto insurance carriers for services never rendered, services not medically necessary, and for services beyond the scope of their licensed authority to perform.

Modesto Chiropractor (Department of Insurance)

Chiropractor Fraud Cases | Fraud Cases | Links to Press Releases
“MODESTO – A Modesto chiropractor and two employees were arrested early Thursday on charges that they repeatedly billed for services that were unnecessary or never rendered from 1996 through 2004, potentially costing insurers more than $10 million. Chiropractor Wilmer Dorado Origel, 44, of Modesto, is the owner and operator of the businesses involved in the alleged fraud. His associates, Rebecca Marie Benedict, 44, of Modesto, and Robin Elaine Barney, 40, of Oakdale, were also taken into custody. All three were booked into the San Joaquin County jail and charged with multiple felony counts, including insurance fraud, grand theft, and practicing medicine without certification.

United Healthcare Settles for $3.5 Million

Fraud Cases | Medical Equipment Fraud Cases | Medicare Fraud Cases
United Healthcare Insurance Company paid $3.5 million to settle a case that alleged that they defrauded Medicare by falsifying reports of how they handled phone inquiries. United Healthcare was acting as a Durable Medical Equipment Regional Carrier, responsible for processing DME claims submitted by Medicare providers and beneficiaries. United Healthcare did not admit any of the allegations. The case was the result of a qui tam lawsuit brought by a former United Healthcare employee. The whistleblower will receive $647,500 of the settlement. “This settlement demonstrates our continuing commitment to pursue vigorously allegations of fraud and abuse in Medicare,” said Peter Keisler, Assistant Attorney General for the Department’s Civil Division.

Serono Sales Director Pleads Guilty to Kickbacks

Fraud Cases | Kickbacks

Adam Stupak, pleaded guilty on December 21, 2004 to offering three New York City doctors free trips to France if they agreed to write 30 new prescriptions for Serostim in one week. The illegal promotion was part of Serono’s “$6m-6 Day Plan” to increase demand for Serostim, an expensive drug used in the treatment of AIDS wasting.

A press release by the US Attorney in Boston describes the situation at Serono that prompted the promotion. Serostim, a growth hormone, was approved by the FDA in 1996 for the treatment of involuntary weight loss in patients with AIDS, which at the time was the leading cause of death among AIDS patients. Protease inhibitors came on the market at the same time as Serostim (generic somatropin). Protease inhibitors were so successful at controlling AIDS and preventing symptoms, that the market for Serostim started to dwindle.

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