Washington, D.C.
June 10, 2011 FBI National Press Office
1. Headquarters: FBI Releases Bank Crime Statistics for First Quarter of 2011
During the first quarter of 2011, there were 1,092 reported violations of the Federal Bank Robbery and Incidental Crimes Statue, a decrease from the 1,183 reported violations in the same quarter of 2010.
Full Story:
During the first quarter of 2011, there were 1,092 reported violations of the Federal Bank Robbery and Incidental Crimes Statue, a decrease from the 1,183 reported violations in the same quarter of 2010.1 According to statistics released today by the FBI, there were 1,081 robberies, nine burglaries, two larcenies, and one extortion of financial institutions2 reported between January 1, 2011 and March 31, 2011.
Highlights of the report include:
■ Loot was taken in 88 percent of the incidents, totaling more than $7.5 million.
■ Of the loot taken, 20 percent of it was recovered. More than $1.7 million was recovered and returned to financial institutions.
■ Bank crimes most frequently occurred on Friday. Regardless of the day, the time frame when bank crimes occurred most frequently was between 9:00 a.m. and 11:00 a.m.
■ Acts of violence were committed in 4 percent of the incidents, resulting in 24 injuries, three deaths, and 18 persons taken hostage.3
■ Demand notes were the most common modus operandi used, closely followed by oral demands.4
■ Most violations occurred in the Western region of the U.S., with 353 reported incidents.
These statistics were recorded as of April 22, 2011. Note that not all bank crimes are reported to the FBI, and therefore the report is not a complete statistical compilation of all bank crimes that occurred in the U.S.
- View the detailed report.
1 In the first quarter of 2011, there were 1,081 robberies, nine burglaries, two larcenies and one extortion reported.
2 Financial institutions include commercial banks, mutual savings banks, savings and loan associations, and credit unions.
3 One or more acts of violence may occur during an incident.
4 More than one modus operandi may have been used during an incident.
2. Chicago: Chicago Businessman Convicted in Plot Against Danish Paper
Tahawwur Hussain Rana, a Pakistani native who operated a Chicago-based immigration business, was convicted of participating in conspiracy involving a terrorism plot against a Danish newspaper and providing material support to a terrorist organization based in Pakistan. The jury acquitted Rana of conspiracy to provide material support to the November 2008 terrorist attacks in Mumbai, India, that killed more than 160 people, including six Americans.
Full Story
CHICAGO—A Pakistani native who operated a Chicago-based immigration business was convicted today of participating in conspiracy involving a terrorism plot against a Danish newspaper and providing material support to a terrorist organization based in Pakistan. The defendant, Tahawwur Hussain Rana, was found guilty by a federal jury that deliberated two days following a trial that began May 16 in U.S. District Court.
The jury acquitted Rana of conspiracy to provide material support to the November 2008 terrorist attacks in Mumbai, India, that killed more than 160 people, including six Americans.
Rana, 50, a Canadian citizen, was convicted of one count of conspiracy to provide material support to the terrorism plot in Denmark and one count of providing material support to a designated foreign terrorist organization, Lashkar e Tayyiba (Lashkar.)
He faces a maximum sentence of 30 years in prison on the two counts combined and remains in federal custody without bond. U.S. District Judge Harry Leinenweber ordered the defense to file post-trial motions by Aug. 15. No sentencing date was set.
“The message should be clear to all those who help terrorists — we will bring to justice all those who seek to facilitate violence,” said Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois.
“Today’s verdict demonstrates our commitment to hold accountable not only terrorist operatives, but also those who facilitate their activities. As established at trial, Tahawwur Rana provided valuable cover and support to David Headley, knowing that Headley and others were plotting terror attacks overseas,” said Todd Hinnen, Acting Assistant Attorney General for National Security. “We will not rest in our efforts to identify and bring to justice those who provide support to terrorists.”
“The effort to combat terrorism and bring justice to the victims is a global effort, requiring the cooperation and collaboration of many countries and many people. We are grateful for our role and that of the Chicago Joint Terrorism Task Force in bringing some measure of justice,” said Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Rana is the second defendant to be convicted among a total of eight co-defendants who have been indicted in this case since late 2009. Co-defendant David Coleman Headley, 50, pleaded guilty in March 2010 to all 12 counts against him, including aiding and abetting the murders of the six American victims. Headley, who is also facing a maximum sentence of life in prison, has cooperated with the Government since he was arrested in October 2009, and testified as a Government witness at Rana’s trial.
The six remaining defendants are all believed to be in Pakistan.
Headley testified that he attended training camps in Pakistan operated by Lashkar, a designated foreign terrorist organization, on five separate occasions between 2002 and 2005. In late 2005, Headley received instructions from members of Lashkar to travel to India to conduct surveillance, which he did five times leading up to the Mumbai attacks three years later that killed more than 160 people and wounded hundreds more.
In the early summer of 2006, Headley and two Lashkar members discussed opening an immigration office in Mumbai as a cover for his surveillance activities. Headley testified that he traveled to Chicago and advised Rana, his long-time friend since the time they attended high school together in Pakistan, of his assignment to scout potential targets in India. Headley obtained approval from Rana, who owned First World Immigration Services in Chicago and elsewhere, to open a First World office in Mumbai as cover for his activities.
Rana directed an individual associated with First World to prepare documents supporting Headley’s cover story of opening a First World office in Mumbai, and advised Headley how to obtain a visa for travel to India, according to Headley’s testimony, as well as emails and other documents that corroborated his account.
Starting Nov. 26, 2008, and continuing through Nov. 28, 2008, 10 attackers trained by Lashkar carried out multiple assaults with firearms, grenades and improvised explosive devices against multiple targets in Mumbai, including the Taj Mahal and Oberoi hotels, the Leopold Café, the Chabad House and the Chhatrapati Shivaji Terminus train station, each of which Headley had scouted in advance. The six Americans killed during the three-day siege were Ben Zion Chroman, Gavriel Holtzberg, Sandeep Jeswani, Alan Scherr, his daughter Naomi Scherr, and Aryeh Leibish Teitelbaum.
Regarding the Denmark terror plot, Headley admitted that in early November 2008, he met with a Lashkar member in Karachi, Pakistan, and was instructed to conduct surveillance of the Copenhagen and Aarhus offices of the Danish newspaper Morgenavisen Jyllands-Posten in preparation for an attack in retaliation for the newspaper’s publication of cartoons depicting the Prophet Mohammed.
In late 2008 and early 2009, after reviewing with Rana how he had performed surveillance of the targets attacked in Mumbai, Headley testified that he advised Rana of the planned attack on the Danish newspaper and his intended travel to Denmark to conduct surveillance of its facilities. Headley obtained Rana’s approval and assistance to identify himself as a representative of First World and gain access to the newspaper’s offices by falsely expressing interest in placing advertising for First World in the newspaper.
Before departing Chicago, Headley and Rana caused business cards to be made that identified Headley as a representative of the Immigration Law Center, the business name of First World, according to the evidence at trial.
The government’s evidence also included transcripts of recorded conversations, including those in September 2009, when Headley and Rana spoke about reports that co-defendant Ilyas Kashmiri, an alleged Pakistani terrorist leader, had been killed in a drone attack and the implications of his possible death for the plan to attack the newspaper.
In other conversations, Rana told Headley that the attackers involved in the Mumbai attacks should receive Pakistan’s highest posthumous military honors. In the late summer of 2009, Rana and Headley agreed that funds that had been provided to Rana could be used to fund Headley’s work in Denmark, and the trial evidence showed that Rana, pretended to be Headley in sending an email to the Danish newspaper .
The government is being represented by Assistant U.S. Attorneys Daniel Collins, Victoria J. Peters and Sarah Streicker, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division. Federal prosecutors in Los Angeles are working jointly with their counterparts in Chicago on the broader investigation into the Mumbai attacks.
The investigation has been conducted by the Chicago Joint Terrorism Task Force, led by the Chicago Office of the Federal Bureau of Investigation, with assistance from the FBI offices in Los Angeles and Washington, D.C., as well as both U.S. Customs and Border Protection and the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations.
3. Charlotte: North Carolina Man Pleads Guilty to Terrorism Charge
Zakariya Boyd pled guilty to one count of conspiracy to provide material support to terrorists. Boyd was first charged along with seven other defendants in an indictment returned in 2009.
Full Story
RALEIGH, NC—Zakariya Boyd, aka “Zak,” pleaded guilty today in federal court in New Bern, N.C., to one count of conspiracy to provide material support to terrorists, announced Todd Hinnen, Acting Assistant Attorney General for National Security; George E.B. Holding, U.S. Attorney for the Eastern District of North Carolina; M. Chris Briese, Special Agent-in-Charge of the FBI Charlotte Division; and John F. Khin, Special Agent-in-Charge, Southeast Field Office, Defense Criminal Investigative Service (DCIS).
Boyd, 22, a U.S. citizen and resident of North Carolina, was first charged along with seven other defendants in a federal indictment returned on July 22, 2009. He was arrested on July 29, 2009 and the indictment was unsealed. On Sept. 24, 2009, a federal grand jury returned a superseding indictment in the case.
According to the superseding indictment, from before November 2006 through at least July 2009, Boyd conspired with the other named defendants and others to provide material support and resources to terrorists, including currency, training, transportation and personnel. The object of the conspiracy, according to the indictment, was to advance violent jihad, including supporting and participating in terrorist activities abroad and committing acts of murder, kidnapping or maiming persons abroad.
The indictment alleges that, as part of the conspiracy, Boyd and other defendants prepared themselves to engage in violent jihad and were willing to die as martyrs. They also allegedly offered training in weapons and financing, and helped arrange overseas travel and contacts so others could wage violent jihad overseas. In addition, as part of the conspiracy, the defendants raised money to support training efforts, disguised the destination of such monies from the donors, and obtained assault weapons to develop skills with the weapons. Some defendants also allegedly radicalized others to believe that violent jihad was a personal religious obligation.
“With his plea today, Zakariya Boyd will be held accountable for his role in this conspiracy to provide material support to terrorism. This case is yet another example of an individual who joined the terrorist cause from within our borders and underscores the dedication of prosecutors, analysts and agents at all levels of our government who work tirelessly to identify such individuals and bring them to justice,” said Acting Assistant Attorney General Hinnen.
U.S. Attorney Holding said, “Today, Mr. Boyd stepped into an American courtroom and was afforded the rights and privileges of a system of which he would have destroyed. His decision to plead guilty sets him on a different path—a path consistent with the rights and safety of the citizens of the United States, both at home and abroad.”
“This case shows extremists in this country are just as willing to do us harm as those overseas. The FBI and our law enforcement partners will keep seeking out and stopping anyone who plans to attack the United States,” said FBI Special Agent in Charge Briese. “The Defense Criminal Investigative Service continues to partner with the Raleigh FBI JTTF to bring these home grown terrorists to justice,” said DCIS Special Agent in Charge Khin. “In concert with other law enforcement partners, DCIS protects America’s national security interests by aggressively investigating threats to the safety and security of Department of Defense personnel and facilities.”
At sentencing, Boyd faces a potential 15 years in prison followed by three years of supervised release for conspiring to provide material support to terrorists.
Boyd’s father and co-defendant, Daniel Patrick Boyd, pleaded guilty on Feb. 9, 2011, to one count of conspiracy to provide material support to terrorists and one count of conspiracy to murder kidnap, maim and injure persons in a foreign country. Trial for the remaining co-defendants in custody is scheduled for September 2011.
The investigation was conducted by the FBI Raleigh-Durham Joint Terrorism Task Force, which includes the FBI, the DCIS, the North Carolina Alcohol Law Enforcement, the Raleigh Police Department, the Durham Police Department and the North Carolina Information Sharing and Analysis Center.
The prosecution is being handled by Assistant U.S. Attorneys John Bowler and Barbara D. Kocher of the U.S. Attorney’s Office for the Eastern District of North Carolina, and Trial Attorney Jason Kellhofer of the Counterterrorism Section in the Justice Department’s National Security Division.
4. Baltimore: Delaware Businessman Pleads Guilty to Campaign Finance Violations and Tax Charges
Christopher J. Tigani pled guilty to a four-count criminal information charging him with two counts of violating the Federal Election Campaign, and two counts of making a materially false statement on an income tax return. Tigani faces a maximum of 16 years imprisonment. Full Story
David C. Weiss, Attorney for the United States, Acting Under Authority Conferred By 28 U.S.C. § 515, Richard A. McFeely, Special Agent in Charge of the Baltimore Field Office of the Federal Bureau of Investigation, and Eric Hylton, Special Agent in Charge of the Philadelphia Field Office of the Internal Revenue Service - Criminal Investigations, announced that Christopher J. TIGANI, age 40 of Wilmington, Delaware, waived indictment and pleaded guilty to a four-count Criminal Information charging him with two counts of violating the Federal Election Campaign Act (2 U.S.C. §§ 441b(a) and 441f), and two counts of making a materially false statement on an income tax return (26 U.S.C. §7206(1)). The maximum penalties are a term of imprisonment of five years for each election offense, and a term of imprisonment of three years for each tax offense, for a total maximum penalty of sixteen years’ imprisonment.
According to court documents and facts disclosed at the hearing, TIGANI, the former President of N-K-S Distributors, Inc. (“NKS”) directly and indirectly solicited numerous NKS employees to make political contributions to candidates running for the offices of President of the United States; the United States Senate; Governor of the State of Delaware; Lieutenant Governor of the State of Delaware; Treasurer of the State of Delaware; the Delaware Senate; and the Delaware General Assembly. TIGANI used company non-payroll checks to reimburse these third-party conduits for the federal and state campaign contributions they made on behalf of TIGANI and the company. In this respect, TIGANI illegally bundled campaign contributions in contravention of state and federal contribution limits, and violated the federal ban against direct corporate contributions. To date, the investigation has uncovered that TIGANI caused himself, company employees, and other related parties to bundle at least $219,800.00 in illegal campaign contributions to federal and state candidates.
The Federal Election charges relate to illegal corporate and conduit campaign contributions to a campaign committee for a candidate running for the Office of President of the United States. In calendar year 2007, TIGANI caused third-party donors to make illegal contributions to the campaign committee in the amount of $70,400.00. On most occasions, the third-party donors contributed the maximum amount of $2,300 permitted during the 2008 federal election cycle. TIGANI further admitted that he contributed and caused four NKS employees to each make additional illegal contributions in the amount of $10,000.00 to a Delaware state committee of a major political party, for a total amount of $50,000.00, in advance of the 2004 Delaware gubernatorial election.
In addition, TIGANI pleaded guilty to making materially false statements on his income tax return for the tax years 2005 and 2006. TIGANI admitted that, in 2005 and 2006, he caused the NKS Controller to create false accounting entries in the NKS books and records in order to artificially increase the funds available in his officer loan account. Moreover, TIGANI deposited in his personal bank account third-party checks that had been given to him to satisfy obligations to NKS. The false accounting entries and third-party checks permitted TIGANI to generate income that he failed to report, thus leading him to make false statements on his 2005 and 2006 federal income tax returns. The total amount of tax loss to the United States is $361,426.00.
First Assistant United States Attorney David C. Weiss stated, “Federal election laws are designed, in part, to promote transparency and curb the exercise of improper influence. As part of his plea agreement, Mr. Tigani admitted to bundling contributions of NKS employees to circumvent these laws and corrupt the election process for his benefit and the benefit of his company. Mr. Tigani further admitted to using NKS corporate coffers as his private piggy bank, thereby substantially underreporting his income on his 2005 and 2006 income tax returns. Today’s plea insures that Mr. Tigani will be held accountable for his actions.”
FBI Special Agent-in-Charge Richard A. McFeely stated, “Individuals who seek to circumvent federal election laws undermine the entire election process and deny a level playing field for all candidates. The FBI takes these offenses very seriously. This is an ongoing investigation. The FBI encourages anyone with information regarding corrupt public officials or illegal campaign activities to contact the FBI or the U.S. Attorney’s Office.”
Special Agent in Charge Eric Hylton, IRS Criminal Investigation stated, “The prosecution of individuals who intentionally conceal income and evade taxes is a vital element in maintaining public confidence in our tax system. IRS Criminal Investigation was also glad to assist our law enforcement partners with investigating possible violations of the Campaign Finance Act. It is only fair to all Americans that Mr. Tigani be called upon to give an account for his alleged misconduct.”
This case is being prosecuted by Assistant United States Attorney Robert F. Kravetz. For further information, contact Public Information Officer Kimberlynn Reeves at (302) 573-6277, ext. 16287.
5. Denver: Suspect Sought in Kidnapping and Sexual Assault of an 8-Year-Old Child
The Denver Police Department and the FBI Rocky Mountain Safe Streets Task Force are continuing their investigation into the kidnapping and sexual assault of an eight-year-old child, and locating the suspect, Bret Lee Luckett Thompson.
Full Story
The Denver Police Department and the FBI Rocky Mountain Safe Streets Task Force (RMSSTF) are investigating a kidnapping and sexual assault of an 8-year-old child.
Information below is from the Denver Police Department crime alert bulletin and press releases.
On Thursday, June 2, 2011, at approximately 1:20 p.m., an 8-year-old female was abducted by Bret Lee Luckett Thompson, 27, in the 400 block alley of South Raleigh Street and South Stuart Street in the city of Denver, Colorado.
Bret Lee Luckett Thompson, also known as “Wyatt” Thompson, is described as a white male, 6’0” tall, 190 pounds, short brown hair, brown eyes, and light facial hair on his chin. Thompson has a tattoo of “SS” or “55” on his right forearm. Please see the photographs below of Thompson and the described tattoo.
The van pictured below is similar to the one law enforcement is searching for in connection with the crime and the suspect. It is described as a 1999 white Pontiac Montana with Colorado license plate number 697WJA or Louisiana license plate number STV813.
The FBI has been working with the Denver Police Department on the investigation.
Denver Police investigators determined that the victim, initially believed to be uninjured by the suspect, was sexually assaulted during the abduction.
A reward of up to $12,000 is being offered for information leading to the arrest and conviction of Thompson. Crime Stoppers has contributed $2,000 and the FBI an additional $10,000.
If you have information regarding the location of Bret Thompson, please contact the Denver Police Department at (720) 913-2000 or call Crime Stoppers at (720) 913-STOP (7867). You can text to CRIMES (274637), then title DMCS and enter your message or send an e-mail to metro-denvercrimestoppers.com.
 |
| Suspect: Bret Lee Luckett Thompson |
 |
| Thompson’s tatoo of “SS” or “55” |
 |
| Vehicle similar to suspect's van |
The city of Dallas agreed to pay the U.S. and Texas $2.47 million and enter into certain compliance obligations to resolve allegations that it violated the civil False Claims Act and Texas Medicaid Fraud Prevention Act.
Full Story
DALLAS—The City of Dallas has agreed to pay the U.S. and Texas $2.47 million and enter into certain compliance obligations to resolve allegations that it violated the civil False Claims Act and Texas Medicaid Fraud Prevention Act, announced U.S. Attorney James T. Jacks of the Northern District of Texas. The U.S. and Texas contend Dallas caused “upcoded” claims to be submitted to Medicare and Medicaid for city-dispatched 911 ambulance transports between 2006 and 2010. Dallas fully cooperated with the investigation, and by settling did not admit any wrong-doing or liability.
Ambulance services generally are coded either as basic life support level or advanced life support (ALS). ALS transports are reimbursed at a higher rate by both Medicare and Medicaid. The U.S. and Texas contend Dallas directed its billing contractor to code every 911-dispatched transport at the ALS level, which indicates an ALS service was furnished and/or the patient’s condition necessitated an ALS intervention. The U.S. and Texas believe Dallas caused to be submitted for payment claims falsely representing to Medicare and Medicaid that such ALS services were appropriate and furnished by Dallas personnel when in fact no ALS-service was rendered and/or the patient did not require an ALS transport.
The U.S. and Texas initiated the investigation in response to an August 2009 whistleblower suit brought by Douglas Moore, a former employee of Dallas’ auditing department. Under the False Claims Act and Texas Medicaid Fraud Prevention Act, private individuals may bring actions alleging fraud on behalf of the U.S. and Texas and collect a share of any proceeds recovered by the suit. Mr. Moore can receive up to 30 percent of the recovery under the settlement.
U.S. Attorney Jacks praised the efforts of the Office of Inspector General of the U.S. Department of Health and Human Services and FBI. “Any time false claims are submitted for payment, the nation’s health insurance programs suffer,” said Special Agent in Charge Mike Fields of the OIG’s Dallas Regional Office. Our HHS OIG investigators will continue to work closely with our law enforcement partners to identify providers who improperly receive crucial Medicare and Medicaid dollars.”
The case was handled by Assistant U.S. Attorney Sean McKenna, Assistant Texas Attorney General Sinty Chandy, and OIG Senior Counsel Ellen Slavin. The case is captioned United States of America, et al. ex rel. Moore v. City of Dallas, et al. Civil Action No. 3:09-cv-1452-O (N.D. Tex.). Investigations of other ambulance providers remain ongoing.
7. Minneapolis: FBI Announces Identity of Somalia Checkpoint Suicide Bomber
FBI Minneapolis identified Farah Mohamed Beledi as one of the two suicide bombers responsible for the suicide bombing attack at a Transitional Federal Government checkpoint in Mogadishu, Somalia on May 30.
Full Story
Donald E. Oswald, Special Agent in Charge of the Minneapolis Office of the FBI, today announces the identity of one of the two suicide bombers responsible for the suicide bombing attack at a Transitional Federal Government checkpoint in Mogadishu, Somalia on May 30, 2011. One suicide bomber has been positively identified as Farah Mohamed Beledi. Following the attack, the FBI obtained fingerprints of one of the bombers and forwarded them to the FBI’s Criminal Justice Information Services Division in Clarksburg, West Virginia. Those fingerprints were compared against the known fingerprints of Beledi, and a positive match was made. The FBI is continuing efforts to identify the unknown suicide bomber.
Beledi, 27 years old, was indicted by a Federal Grand Jury in Minneapolis in July 2010. He is one of thirteen men from the Twin Cities who have been charged with terrorism offenses for traveling to Somalia and joining the designated terrorist organization al-Shabaab. Beledi was charged with, among other things, conspiring to and providing material support to al-Shabaab, and conspiring to kill, kidnap, maim and injure persons abroad. He is believed to have left Minnesota in October 2009 for Somalia. The men are part of an ongoing FBI investigation into al-Shabaab’s recruitment and radicalization of young Somali men in the Twin Cities.
The FBI’s primary role in this matter is to determine the identities of the suicide bombers and any connection they may have to United States persons, or any terrorist support or recruitment efforts occurring in the United States.
8. Atlanta: Georgia Doctor Guilty of Billing Medicare, Medicaid for Sessions with Dead Patients
Robert Williams pled guilty to health care fraud in connection with a scheme in which he submitted more than $2 million in fraudulent claims for group psychological therapy that he never provided.
Full Story
ATLANTA—ROBERT WILLIAMS, 72, of Atlanta, Georgia, pleaded guilty today in federal district court on two counts of health care fraud as part of a scheme to bill for group psychological therapy that WILLIAMS never provided.
United States Attorney Sally Quillian Yates said, “With so many elderly citizens and others who need specialized psychological care, this defendant ignored his duty as a doctor and became a billing machine who claimed to treat patients who were in fact dead. This blatant attempt to rip off the system took funds and care away from real live patients with real problems. Medicare and Medicaid need all the money they can get for legitimate patient care and this physician will get none of that money.”
“This case sends a strong message that Medicare and Medicaid fraud will not be tolerated in Georgia,” said Georgia Attorney General Sam Olens. “At a time when our state budget is heavily strained, every dollar intended for the needy must reach the recipient. We will continue to work with our partners, the U.S. Attorney’s Office, and the FBI, to weed out fraud in Georgia.”
Brian D. Lamkin, Special Agent in Charge, FBI Atlanta Field Office, said, “Dr. Williams had for years, enjoyed a position of trust within the medical and health provider industry. He chose to abandon that trust and instead displayed a level of greed that will not be tolerated. Medicare fraud should be promptly reported to the nearest FBI field office so that the much needed federal health care benefits will be there for those individuals who truly need them.”
According to United States Attorney Yates, the charges, and other information presented in court: WILLIAMS was a licensed physician, practicing in the Atlanta area. From approximately July 2007 through October 2009, he contracted with a medical services company to provide group psychological therapy to nursing home patients in a variety of nursing homes. Under his signature, thousands of claims were submitted to Medicare and Georgia Medicaid seeking reimbursement for group psychological therapy that WILLIAMS purportedly provided to beneficiaries at several nursing homes in the Atlanta area. In many instances, however, WILLIAMS did not actually provide the therapy.
Specifically, from July 2007 through October 2009, Medicare claims data indicated that over 55,000 claims were submitted using WILLIAMS’ provider number for group psychological therapy. Those claims sought reimbursement for over $2,000,000, and ultimately caused Medicare to reimburse WILLIAMS over $750,000. For the same time period, over 40,000 Medicaid claims were submitted by WILLIAMS for group psychological therapy, causing Georgia Medicaid to pay out over $225,000.
An investigation of WILLIAMS’ claims showed that, in many cases, he sought payment for services provided to beneficiaries who were deceased at the time he purportedly rendered the care. In two cases, the patient died over a year before he was allegedly seen by WILLIAMS in the nursing home. Numerous claims were submitted to Medicare and Medicaid for group psychological therapy when the beneficiary was hospitalized at the time of service and, consequently, could not have received care at the nursing home as represented.
WILLIAMS was indicted on February 22, 2011 on 10 counts of health care fraud. Today WILLIAMS pleaded guilty to two of those counts. He could receive a maximum sentence of 10 years in prison and a fine of up to $250,000 for each count. In determining the actual sentence, the court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing has been scheduled for August 23, 2011, at 11:30 a.m. before United States District Judge Richard W. Story.
This case is being investigated by special agents of the Federal Bureau of Investigation and the Georgia Medicaid Fraud Control Unit.
Assistant United States Attorneys Kurt R. Erskine and Nick Oldham, and Senior Assistant Attorney General Nancy Alstrom from the Georgia Medicaid Fraud Control Unit, are prosecuting the case.
For further information, please contact Sally Q. Yates, United States Attorney, or Charysse L. Alexander, Executive Assistant United States Attorney, through Patrick Crosby, Public Affairs Officer, U.S. Attorney’s Office, at (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
9. Washington Field: U.S. Subsidiary of Belgian Pharmaceutical Manufacturer Pleads Guilty to Off-Label Promotion
The U.S. subsidiary of Belgian pharmaceutical manufacturer UCB S.A. pled guilty to the off-label promotion of its epilepsy drug Keppra and will pay more than $34 million to resolve criminal and civil liability arising out of its illegal conduct.
Full Story
WASHINGTON—The U.S. subsidiary of Belgian pharmaceutical manufacturer UCB S.A. pleaded guilty today to the off-label promotion of its epilepsy drug Keppra and will pay more than $34 million to resolve criminal and civil liability arising out of its illegal conduct, the Justice Department announced today.
Under the terms of the plea agreement before the U.S. Court for the District of Columbia, UCB Inc., which has its headquarters in Smyrna, Ga., pleaded guilty to a misdemeanor in connection with the company’s misbranding of Keppra, in violation of the Food, Drug and Cosmetic Act. Keppra was approved by the Food and Drug Administration (FDA) as an anti-epileptic drug, for the treatment of seizures in adults and children suffering from epilepsy. Keppra is not approved for the treatment of migraine, headache, psychiatric conditions or pain conditions. Once approved by the FDA, a manufacturer may not market or promote a drug for any use not specified in the FDA-approved product label. These uses are also known as unapproved or “off-label” uses.
The government alleged that UCB promoted the sale of Keppra for off-label use in the treatment of migraine by generating and disseminating posters representing that Keppra was safe and effective for treating migraine based on purportedly independent investigator-initiated studies. The posters did not disclose UCB’s sponsorship of these studies or that UCB’s own clinical trial had failed to demonstrate that Keppra was effective in treating migraine.
UCB will pay a $7.55 million criminal fine for the misbranding of Keppra and an asset forfeiture of $1.078 million.
In addition, UCB will pay $25.7 million to resolve civil allegations under the False Claims Act that the company illegally promoted Keppra and caused false claims to be submitted to government healthcare programs for a variety of off-label uses that were not medically accepted indications and therefore not covered by those programs, including headache, migraine, pain, bipolar, mood disorders and anxiety. The federal share of the civil settlement is $15,871,208, and the state Medicaid share of the civil settlement is $9,893,322.
“UCB put its pursuit of profits ahead of its obligations to patients,” said Ronald C. Machen Jr., U.S. Attorney for the District of Columbia. “Today’s guilty plea and UCB’s $34 million payout should remind drug companies that try to cleverly design off-label marketing schemes that we will not allow them to compromise patient safety.”
“Patients have a right to know that the drugs they are prescribed have been approved by the FDA as safe and effective for a particular use,” said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. “Off-label promotion of pharmaceuticals undermines the FDA’s important role in protecting the public and is a drain on taxpayer dollars.”
“This settlement demonstrates the ongoing efforts to pursue violations of the False Claims Act and recover taxpayer dollars for Medicaid and other federal health care programs,” noted Dwight C. Holton, U.S. Attorney for the District of Oregon. “Our office will continue to work with whistleblowers and law enforcement to stop health care fraud.”
The civil settlement resolves two whistleblower lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act that are pending in Washington, D.C., and Oregon: United States ex rel. Root v. UCB, Civil Action No. 1:07-cv-1056, and United States ex rel. Maly v. UCB, Inc., Civil Action No. 1:08–cv-1161. As part of today’s resolution, the whistleblowers will receive payments totaling more than $2.8 million from the federal share of the civil recovery.
Also as part of the resolution accepted by the court, UCB has entered into an expansive corporate integrity agreement (CIA) with the Office of Inspector General of the Department of Health and Human Services. That agreement provides for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to this matter.
“Patients have a right to be prescribed drugs based on sound medical judgment - not on drug company payoffs or off-label promotions,” said Daniel R. Levinson, Inspector General of the Department of Health & Human Services. “Taxpayers shouldn't have to pay for unlawful conduct.”
“Today’s guilty plea and settlement is evidence of the government’s continued commitment to hold pharmaceutical companies accountable when they undermine the drug approval process by promoting drugs for uses not approved by the FDA as safe and effective,” said Acting Director Kathleen Martin-Weis of FDA’s Office of Criminal Investigations. “We will continue to join forces with the Department of Justice and our law enforcement counterparts to seek this kind of criminal resolution when pharmaceutical companies put profits ahead of the public health and safety.”
The criminal case was handled by the U.S. Attorney’s Office for the District of Columbia and the Justice Department’s Office of Consumer Protection Litigation.
The civil settlement was reached by the U.S. Attorney’s Offices for the District of Columbia and the District of Oregon and the Commercial Litigation Branch of the Justice Department’s Civil Division. The CIA was negotiated by the Office of Inspector General of the Department of Health and Human Services. The investigation was conducted by the Department of Veterans Affairs Office of Inspector General, the FBI’s Washington Field Office and FDA Office of Criminal Investigations. Assistance was provided by the National Association of Medicaid Fraud Control Units and the offices of various state Attorneys General.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $5.7 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $7.3 billion.
10. Los Angeles: Police Officer, Defense Attorney Indicted and Arrested in California on Bribery Charges
An Inland Empire police officer and an Orange County criminal defense attorney were taken into custody on federal bribery charges. Both surrendered to the FBI after being named in a three-count indictment.
Full Story
SANTA ANA, CA—An Inland Empire police officer and an Orange County criminal defense attorney were taken into custody this morning by special agents with the FBI on federal bribery charges.
Rialto Police Officer Aaron Scott Vigil, 41, of Highland, and criminal defense attorney Lawrence Anthony Witsoe, 67, of Mission Viejo, surrendered to the FBI after being named in a three-count indictment that was returned by a federal grand jury on June 1.
The indictment, which was unsealed this morning, alleges that Vigil, who served as a task force officer with the Drug Enforcement Administration, agreed to accept a $2,500 bribe in exchange for falsely telling the Orange County District Attorney’s Office that a criminal defendant being represented by Witsoe was a cooperator who had provided information to the DEA.
The indictment charges both men with two counts—conspiracy and soliciting and accepting a bribe by a public official. Witsoe alone is charged with bribery of a public official. Both men are expected to be arraigned this afternoon in United States District Court.
According to the indictment, the bribery scheme began in the fall of 2009 when Witsoe told a client who was facing assault charges in Orange County Superior Court that for a sum of money—initially $1,000, but later increased to $2,500—Witsoe could potentially get the assault case dismissed. Witsoe told the client that he could have a DEA agent call the Orange County District Attorney’s Office, explain that the client was a DEA informant, and ask the district attorney for consideration for the work the client had performed for the DEA.
Thereafter, Vigil contacted the Orange County District Attorney’s Office on several occasions and explained that Witsoe’s client had provided reliable information regarding drug traffickers and that his cooperation led to the DEA seizing $110,000 in drug money, according to the indictment. When the district attorney dismissed the case, Witsoe instructed the client to wire the $2,500 to his client trust account, and Witsoe then wrote a check to the ex-wife of an associate of Vigil.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If they are convicted of the counts in which they are charged, Vigil faces a maximum statutory penalty of 20 years in federal prison, and Witsoe faces a maximum sentence of 35 years in prison.
The case against Vigil and Witsoe was investigated by the Federal Bureau of Investigation, which received the full cooperation of the Orange County District Attorney’s Office.
CONTACT:
Assistant United States Attorney Robert J. Keenan
(714) 338-3597
 | ||||
|
