Friday, August 9, 2013
3 MS-13 LEADERS FOUND GUILTY OF RACKETEERING AND MORE CHARGES RELATED TO MULTIPLE MURDERS
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, August 6, 2013
Three MS-13 Leaders Found Guilty of Racketeering and Additional Charges for Multiple Murders and Attacks
Twelve Others Have Pleaded Guilty in the Case
Three leaders of MS-13 in Washington, D.C., were found guilty by a federal jury today of conspiring to participate in racketeering activity and other charges stemming from their roles in murders, extortion and other violent crimes in the Washington area.
The verdicts, which followed a month-long trial, were announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Ronald C. Machen Jr. of the District of Columbia; Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations (HSI) in Washington; and Cathy L. Lanier, Chief of the Washington, D.C., Metropolitan Police Department (MPD).
“Today, a jury has found three defendants guilty of committing heinous crimes as part of their membership in a brutal international criminal organization that has terrorized communities throughout the United States and Central America,” said Acting Assistant Attorney General Raman. “As a result of this successful investigation and prosecution, these violent gang members now face substantial prison sentences.”
“After a month-long trial, this jury delivered the message that MS-13 and its brutal brand of violence will not be tolerated in the District of Columbia,” said U.S. Attorney Machen. “These three killers now face life in prison for their outrageous crimes, including the stabbing death of a 14-year-old boy in Columbia Heights. I want to thank the prosecutors and our law enforcement partners who have dedicated years to investigating and prosecuting this transnational gang. The District is safer with these murderers behind bars.”
“This verdict represents the consequences for the decisions made and the lifestyle choices of the three convicted gang members,” said Special Agent in Charge Torres. “Investigating violent crimes committed by trans-national gang members is a priority for HSI.”
“The convictions of these three violent gang leaders should send a clear message to the members of this ruthless, international criminal organization that gang activity will not be tolerated in our communities,” said Police Chief Lanier. “I applaud the hard work and dedication by the members of the Metropolitan Police Department and our law enforcement partners who helped make today’s convictions possible. Our communities will be safer as a result.”
Yester Ayala, 22, aka “Freeway” and “Daddy Yankee,” of Washington; Noe Machado-Erazo, aka “Gallo,” 30, of Wheaton, Md.; and Jose Martinez-Amaya, 26, aka “Crimen,” of Brentwood, Md., were each found guilty in U.S. District Court in the District of Columbia. At sentencing, scheduled for Nov. 4, 2013, each of the defendants faces a maximum sentence of life in prison.
Ayala was found guilty of one count of conspiracy to participate in racketeering activity, two counts of murder in aid of racketeering, one count of first-degree premeditated murder and one count of second-degree murder. Machado-Erazo was found guilty of conspiracy to participate in racketeering activity, murder in aid of racketeering and possession of a firearm during a crime of violence. Martinez-Amaya was found guilty of conspiracy to participate in racketeering activity, murder in aid of racketeering and possession of a firearm during a crime of violence.
The government’s evidence showed that MS-13, a large gang that operates in the United States and Central America, engages in racketeering activity including murder, narcotics distribution, extortion, robberies, obstruction of justice and other crimes. The gang has numerous rules, such as enduring a beating of 13 seconds before becoming a member; killing rival gang members; and staying unfailingly loyal.
According to the government’s evidence, Machado-Erazo was a member and Martinez-Amaya was a leader of the Normandie clique, one of a number of smaller MS-13 groups operating in the Washington area. Ayala was a leader of the Sailors, another clique. The local cliques often act together, and evidence showed that Machado-Erazo was the leader of a program of cliques that worked together. According to evidence presented in court, the local MS-13 cliques act in accordance with the international MS-13’s strictures and have frequent contact with MS-13 leadership in El Salvador. The evidence showed that two of the murders were committed on orders from MS-13 leadership in El Salvador.
The three defendants are among numerous people indicted by a grand jury in 2010 following a federal investigation. Twelve others have pleaded guilty to charges in the case.
The range of criminal activity alleged in the indictment includes acts committed from 2008 through 2010 in the District of Columbia, Maryland, Virginia and other states.
Ayala was convicted of taking part in two murders in 2008, and Machado-Erazo and Martinez-Amaya were convicted of taking part in the murder of another victim.
The government presented evidence that Ayala helped carry out orders to murder Louis Alberto Membreno-Zelaya, a fellow MS-13 member who had removed his gang tattoos. Membreno-Zelaya, 27, was stabbed at least 20 times, according to evidence presented in court. His body was found on Nov. 6, 2008, in Northwest Washington.
The second murder, according to evidence presented in court, took place in the late afternoon of Dec. 12, 2008. Ayala joined in on an attack against Giovanni Sanchez, 14, near the Columbia Heights Metro station in Washington. Giovanni had 11 stab wounds, and witnesses identified Ayala as one of the assailants.
According to evidence presented at trial, Machado-Erazo and Martinez-Amaya took part in the killing of Felipe Enriquez, 25, whose body was found on March 31, 2010, in Montgomery County, Md. Enriquez, another fellow MS-13 member, was fatally shot. Evidence presented during trial showed that Machado-Erazao provided the gun and Martinez-Amaya committed the shooting.
This case was prosecuted by Assistant U.S. Attorney Nihar Mohanty of the District of Columbia and Trial Attorney Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section.
The case was investigated by ICE-HSI and the MPD. Assistance was provided by the Montgomery County and the Prince George’s County, Md. Police Departments, the State’s Attorney’s Office for Montgomery County, the U.S. Attorney’s Office for the District of Maryland and the U.S. Attorney’s Office for the Eastern District of Virginia. Assistance was provided by the Organized Crime Drug Enforcement Task Force (OCDETF).
Tuesday, August 6, 2013
Three MS-13 Leaders Found Guilty of Racketeering and Additional Charges for Multiple Murders and Attacks
Twelve Others Have Pleaded Guilty in the Case
Three leaders of MS-13 in Washington, D.C., were found guilty by a federal jury today of conspiring to participate in racketeering activity and other charges stemming from their roles in murders, extortion and other violent crimes in the Washington area.
The verdicts, which followed a month-long trial, were announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Ronald C. Machen Jr. of the District of Columbia; Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations (HSI) in Washington; and Cathy L. Lanier, Chief of the Washington, D.C., Metropolitan Police Department (MPD).
“Today, a jury has found three defendants guilty of committing heinous crimes as part of their membership in a brutal international criminal organization that has terrorized communities throughout the United States and Central America,” said Acting Assistant Attorney General Raman. “As a result of this successful investigation and prosecution, these violent gang members now face substantial prison sentences.”
“After a month-long trial, this jury delivered the message that MS-13 and its brutal brand of violence will not be tolerated in the District of Columbia,” said U.S. Attorney Machen. “These three killers now face life in prison for their outrageous crimes, including the stabbing death of a 14-year-old boy in Columbia Heights. I want to thank the prosecutors and our law enforcement partners who have dedicated years to investigating and prosecuting this transnational gang. The District is safer with these murderers behind bars.”
“This verdict represents the consequences for the decisions made and the lifestyle choices of the three convicted gang members,” said Special Agent in Charge Torres. “Investigating violent crimes committed by trans-national gang members is a priority for HSI.”
“The convictions of these three violent gang leaders should send a clear message to the members of this ruthless, international criminal organization that gang activity will not be tolerated in our communities,” said Police Chief Lanier. “I applaud the hard work and dedication by the members of the Metropolitan Police Department and our law enforcement partners who helped make today’s convictions possible. Our communities will be safer as a result.”
Yester Ayala, 22, aka “Freeway” and “Daddy Yankee,” of Washington; Noe Machado-Erazo, aka “Gallo,” 30, of Wheaton, Md.; and Jose Martinez-Amaya, 26, aka “Crimen,” of Brentwood, Md., were each found guilty in U.S. District Court in the District of Columbia. At sentencing, scheduled for Nov. 4, 2013, each of the defendants faces a maximum sentence of life in prison.
Ayala was found guilty of one count of conspiracy to participate in racketeering activity, two counts of murder in aid of racketeering, one count of first-degree premeditated murder and one count of second-degree murder. Machado-Erazo was found guilty of conspiracy to participate in racketeering activity, murder in aid of racketeering and possession of a firearm during a crime of violence. Martinez-Amaya was found guilty of conspiracy to participate in racketeering activity, murder in aid of racketeering and possession of a firearm during a crime of violence.
The government’s evidence showed that MS-13, a large gang that operates in the United States and Central America, engages in racketeering activity including murder, narcotics distribution, extortion, robberies, obstruction of justice and other crimes. The gang has numerous rules, such as enduring a beating of 13 seconds before becoming a member; killing rival gang members; and staying unfailingly loyal.
According to the government’s evidence, Machado-Erazo was a member and Martinez-Amaya was a leader of the Normandie clique, one of a number of smaller MS-13 groups operating in the Washington area. Ayala was a leader of the Sailors, another clique. The local cliques often act together, and evidence showed that Machado-Erazo was the leader of a program of cliques that worked together. According to evidence presented in court, the local MS-13 cliques act in accordance with the international MS-13’s strictures and have frequent contact with MS-13 leadership in El Salvador. The evidence showed that two of the murders were committed on orders from MS-13 leadership in El Salvador.
The three defendants are among numerous people indicted by a grand jury in 2010 following a federal investigation. Twelve others have pleaded guilty to charges in the case.
The range of criminal activity alleged in the indictment includes acts committed from 2008 through 2010 in the District of Columbia, Maryland, Virginia and other states.
Ayala was convicted of taking part in two murders in 2008, and Machado-Erazo and Martinez-Amaya were convicted of taking part in the murder of another victim.
The government presented evidence that Ayala helped carry out orders to murder Louis Alberto Membreno-Zelaya, a fellow MS-13 member who had removed his gang tattoos. Membreno-Zelaya, 27, was stabbed at least 20 times, according to evidence presented in court. His body was found on Nov. 6, 2008, in Northwest Washington.
The second murder, according to evidence presented in court, took place in the late afternoon of Dec. 12, 2008. Ayala joined in on an attack against Giovanni Sanchez, 14, near the Columbia Heights Metro station in Washington. Giovanni had 11 stab wounds, and witnesses identified Ayala as one of the assailants.
According to evidence presented at trial, Machado-Erazo and Martinez-Amaya took part in the killing of Felipe Enriquez, 25, whose body was found on March 31, 2010, in Montgomery County, Md. Enriquez, another fellow MS-13 member, was fatally shot. Evidence presented during trial showed that Machado-Erazao provided the gun and Martinez-Amaya committed the shooting.
This case was prosecuted by Assistant U.S. Attorney Nihar Mohanty of the District of Columbia and Trial Attorney Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section.
The case was investigated by ICE-HSI and the MPD. Assistance was provided by the Montgomery County and the Prince George’s County, Md. Police Departments, the State’s Attorney’s Office for Montgomery County, the U.S. Attorney’s Office for the District of Maryland and the U.S. Attorney’s Office for the Eastern District of Virginia. Assistance was provided by the Organized Crime Drug Enforcement Task Force (OCDETF).
COURT ORDERS TRADER TO PAY OVER $7.5 MILLION FOR ROLE IN COMMODITY FUTURES FRAUD
FROM: COMMODITY FUTURES TRADING COMMISSION
Federal Court in Illinois Orders Chicago-Based Trader Bradley Scott Schiller to Pay more than $7.5 Million in Restitution and a Civil Monetary Penalty for a Multi-Million Dollar Commodity Futures Fraud
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge Thomas M. Durkin of the U.S. District Court for the Northern District of Illinois entered a Consent Order for Permanent Injunction (Order) requiring defendant Bradley Scott Schiller, of Chicago, Illinois, to pay restitution of approximately $4.565 million and a civil monetary penalty of $3 million for commodity futures fraud. The Order also imposes permanent trading and registration bans, among other sanctions.
The Order stems from a CFTC Enforcement complaint filed on May 24, 2012 (see CFTC Press Release 6262-12). The Order finds that from at least January 2008 through approximately May 2012, Schiller fraudulently solicited approximately $7.8 million from at least six investors for trading futures, and that Schiller misappropriated investors’ funds and issued false account statements to customers in order to perpetuate his fraud. According to the Order, Schiller, a former floor broker, told prospective investors that he was a successful trader and showed prospective investors altered account statements to bolster his claims when he was soliciting funds. However, according to the Order, Schiller opened no accounts in the name of his investors, misappropriated approximately $3 million to pay for personal expenses and to re-pay earlier investors and lost approximately $1.6 million in trading in an account in his own name.
The CFTC appreciates the assistance of the U.S. Attorney’s Office, Northern District of Illinois, and the Federal Bureau of Investigation, Chicago Division.
The CFTC Division of Enforcement staff members responsible for this case are Jennifer Diamond, Judith McCorkle, Joseph Konizeski, Scott Williamson, Rosemary Hollinger and Richard B. Wagner.
Last Updated: August 6, 2013
Federal Court in Illinois Orders Chicago-Based Trader Bradley Scott Schiller to Pay more than $7.5 Million in Restitution and a Civil Monetary Penalty for a Multi-Million Dollar Commodity Futures Fraud
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge Thomas M. Durkin of the U.S. District Court for the Northern District of Illinois entered a Consent Order for Permanent Injunction (Order) requiring defendant Bradley Scott Schiller, of Chicago, Illinois, to pay restitution of approximately $4.565 million and a civil monetary penalty of $3 million for commodity futures fraud. The Order also imposes permanent trading and registration bans, among other sanctions.
The Order stems from a CFTC Enforcement complaint filed on May 24, 2012 (see CFTC Press Release 6262-12). The Order finds that from at least January 2008 through approximately May 2012, Schiller fraudulently solicited approximately $7.8 million from at least six investors for trading futures, and that Schiller misappropriated investors’ funds and issued false account statements to customers in order to perpetuate his fraud. According to the Order, Schiller, a former floor broker, told prospective investors that he was a successful trader and showed prospective investors altered account statements to bolster his claims when he was soliciting funds. However, according to the Order, Schiller opened no accounts in the name of his investors, misappropriated approximately $3 million to pay for personal expenses and to re-pay earlier investors and lost approximately $1.6 million in trading in an account in his own name.
The CFTC appreciates the assistance of the U.S. Attorney’s Office, Northern District of Illinois, and the Federal Bureau of Investigation, Chicago Division.
The CFTC Division of Enforcement staff members responsible for this case are Jennifer Diamond, Judith McCorkle, Joseph Konizeski, Scott Williamson, Rosemary Hollinger and Richard B. Wagner.
Last Updated: August 6, 2013
SECRETARY OF STATE KERRY'S PRESS STATEMENT ON SAUDI ARABIA AND THE UN CENTRE ON COUNTERTERRORISM
FROM: U.S. STATE DEPARTMENT
Saudi Arabia's Contribution to the UN Centre on Counterterrorism
Press Statement
John Kerry
Secretary of State
Washington, DC
August 8, 2013
We welcome and applaud today’s $100 million donation by His Majesty King Abdullah, on behalf of the Kingdom of Saudi Arabia, to the UN Centre on Counterterrorism (UNCCT).
His Majesty’s generous donation, on the occasion of Eid al Fitr, demonstrates once again the Kingdom’s commitment to supporting multilateral institutions and strengthening international cooperation on counterterrorism.
With these funds, we hope that the UN Counterterrorism Implementation Task Force (UNCTITF), of which the Centre is a critical component, can intensify its work to provide countries with the long-term capacity building support they need to implement the UN Global Counterterrorism Strategy.
Saudi Arabia's Contribution to the UN Centre on Counterterrorism
Press Statement
John Kerry
Secretary of State
Washington, DC
August 8, 2013
We welcome and applaud today’s $100 million donation by His Majesty King Abdullah, on behalf of the Kingdom of Saudi Arabia, to the UN Centre on Counterterrorism (UNCCT).
His Majesty’s generous donation, on the occasion of Eid al Fitr, demonstrates once again the Kingdom’s commitment to supporting multilateral institutions and strengthening international cooperation on counterterrorism.
With these funds, we hope that the UN Counterterrorism Implementation Task Force (UNCTITF), of which the Centre is a critical component, can intensify its work to provide countries with the long-term capacity building support they need to implement the UN Global Counterterrorism Strategy.
WHERE DISEASES AND CLIMATE CHANGE INTERSECT
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| Rat Eating Seeds. Credit: Wikimedia. |
Infectious diseases and climate change intersect with no simple answers
Climate change is already affecting the spread of infectious diseases--and human health and biodiversity worldwide--according to disease ecologists reporting research results in this week's issue of the journal Science.
Modeling disease outcomes from host and parasite responses to climate variables, they say, could help public health officials and environmental managers address the challenges posed by the changing landscape of infectious disease.
"Earth's changing climate and the global spread of infectious diseases are threatening human health, agriculture and wildlife," said Sam Scheiner, National Science Foundation (NSF) program director for the joint NSF-National Institutes of Health Ecology and Evolution of Infectious Diseases Program, which funded the research.
"Solving these problems requires a comprehensive approach that unites scientists from biology, the geosciences and the social sciences."
According to lead author Sonia Altizer of the University of Georgia, the issue of climate change and disease has provoked intense debate over the last decade, particularly in the case of diseases that affect humans.
In the Science paper, Altizer and her colleagues--Richard Ostfeld of the Cary Institute of Ecosystem Studies; Pieter Johnson of the University of Colorado; Susan Kutz of the University of Calgary and Canadian Cooperative Wildlife Health Centre; and Drew Harvell of Cornell University--laid out an agenda for future research and action.
"For a lot of human diseases, responses to climate change depend on the wealth of nations, healthcare infrastructure, and the ability to take mitigating measures," Altizer said.
"The climate signal, in many cases, is hard to tease apart from other factors like vector control, and vaccine and drug availability."
In diseases affecting wildlife and agricultural ecosystems, however, findings show that climate warming is already causing changes.
"In many cases, we're seeing an increase in disease and parasitism," Altizer said. "But the effect of climate change on these disease relationships depends on the physiology of the organisms and on the structure of natural communities."
At the organism level, climate change can alter the physiology of parasites. Some of the clearest examples are found in the Arctic, where temperatures are rising rapidly. Parasites are developing faster as a result. A lungworm that affects muskoxen, for instance, may be transmitted over a longer period each summer, making it a more serious problem for the populations it infects.
Climate change is also affecting entire plant and animal communities.
Community-level responses to rising temperatures are evident in tropical marine environments such as the coral reef ecosystems of the Caribbean. Warmer water temperatures have directly stressed corals and facilitated infections by pathogenic fungi and bacteria. When corals succumb, other species that depend on them are affected.
The potential consequences of these changes are serious. The combination of warmer temperatures and altered disease patterns is placing growing numbers of species at risk of extinction, the scientists say.
In human health, there is a direct risk from pathogens like dengue, malaria and cholera. All are linked to warmer temperatures.
Indirect risks also exist in threats to agricultural systems and game species that are crucial for subsistence and cultural activities.
The scientists recommend building on and expanding data on the physiological responses of hosts and parasites to temperature change. Those mechanisms may offer clues to how a system will respond to climate warming.
"We'd like to be able to predict, for example, that if the climate warms by a certain amount, then in a particular host-parasite system we might see an increase from one to two disease transmission cycles each year," Altizer said.
"But we'd also like to try to tie these predictions to actions that might be taken."
Some of those actions might involve more monitoring and surveillance, adjusting the timing of vector control measures and adopting new management measures.
These could include, for instance, closing coral reefs to human activity if a disease outbreak is predicted, or changing the planting strategy for crops to compensate for unusually high risks of certain diseases.
The researchers also point out that certain local human communities, such as those of indigenous peoples in the Arctic, could be disproportionately affected by climate-disease interactions.
Predicting where these local-scale effects might be most intense would allow societies to take measures to address issues such as health and food security.
"Involving local communities in disease surveillance," said Altizer, "could become essential."
Thursday, August 8, 2013
DOCTOR AND OWNER OF MICHIGAN ONCOLOGY CENTERS CHARGED IN $35 MILLION MEDICARE FRAUD SCHEME
FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, August 6, 2013
Oakland County Doctor and Owner of Michigan Hematology and Oncology Centers Charged in $35 Million Medicare Fraud Scheme
Dr. Farid Fata, 48, of Oakland Township, Michigan, was arrested this morning and charged in a criminal complaint for his role in a health care fraud scheme which involved submitting false claims to Medicare for services that were medically unnecessary, including chemotherapy treatments.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, FBI Special Agent in Charge Robert D. Foley III and Special Agent in Charge Lamont Pugh of the Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
“Dr. Fata allegedly perpetrated a brazen and dangerous fraud that time and again jeopardized his patients’ wellbeing,” said Acting Assistant Attorney General Raman. “The conduct alleged today is chilling, with the defendant endangering patient safety through misdiagnoses, over- or mis-prescription of chemotherapy and other treatments, and delay of hospital care for patients with serious injuries. Through the work of our dedicated prosecutors and agents, today we have taken swift action to safeguard patient safety and hold the defendant to account.”
“Our first priority is patient care,” said U.S. Attorney McQuade. “The agents and attorneys acted with great attention to detail to stop these allegedly dangerous practices as quickly as possible, and we have set up a victim hotline so that patients can access their files and get questions answered.”
“Violating a patient's trust and placing them at risk through fraudulent abuse of our nation's health care system is deplorable and a crime which the FBI takes most seriously,” said FBI Special Agent in Charge Foley. “The FBI remains committed to the arrest and prosecution of those who commit health care fraud.”
“The conduct alleged in this complaint is serious, not only in terms of potential Medicare dollars improperly obtained, but patient safety as well,” said HHS-OIG Special Agent in Charge Pugh. “The OIG will aggressively investigate allegations of this nature in order to ensure the safety of Medicare patients and to protect vital taxpayer dollars.”
According to the complaint, Dr. Fata owns and operates Michigan Hematology Oncology Centers (MHO), which has offices in Clarkston, Bloomfield Hills, Lapeer, Sterling Heights, Troy and Oak Park. It was through MHO that Dr. Fata allegedly submitted fraudulent claims to Medicare for medically unnecessary services, including chemotherapy treatments, Positron Emission Tomograph (PET) scans and a variety of cancer and hematology treatments for patients who did not need them. In the course of the scheme, Dr. Fata falsified and directed others to falsify documents to justify cancer treatments for billing purposes. MHO billed Medicare for approximately $35 million dollars over a two-year period, approximately $25 million of which is attributable to Dr. Fata.
The complaint further alleges that Dr. Fata directed the administration of unnecessary chemotherapy to patients in remission; deliberate misdiagnoses of patients as having cancer to justify unnecessary cancer treatment; administration of chemotherapy to end-of-life patients who would not have benefitted from the treatment; deliberate misdiagnoses of patients without cancer to justify expensive testing; fabrication of other diagnoses such as anemia and fatigue to justify unnecessary hematology treatments, and distribution of controlled substances to patients without medical necessity or through administering the drugs at dangerous levels.
Dr. Fata will be making his initial appearance in federal court this afternoon at 1 p.m. in Detroit.
Patients who have questions concerning their medical records and/or information regarding this investigation and prosecution can call the United States Attorney’s Office Information Line at 888-702-0553.
The case is being prosecuted by Assistant Chief Catherine Dick, supervisor of the Detroit Medicare Fraud Strike Force and Trial Attorney Matthew Thuesen of the Department of Justice as well as Sarah Resnick Cohen, Deputy Chief of the Health Care Fraud Unit at the U.S. Attorney’s Office, and Justin Bidwell, Special Assistant United States Attorney. The investigations were conducted jointly by the FBI and HHS-OIG, along with the assistance of the Michigan Attorney General’s Office.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
Tuesday, August 6, 2013
Oakland County Doctor and Owner of Michigan Hematology and Oncology Centers Charged in $35 Million Medicare Fraud Scheme
Dr. Farid Fata, 48, of Oakland Township, Michigan, was arrested this morning and charged in a criminal complaint for his role in a health care fraud scheme which involved submitting false claims to Medicare for services that were medically unnecessary, including chemotherapy treatments.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, FBI Special Agent in Charge Robert D. Foley III and Special Agent in Charge Lamont Pugh of the Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
“Dr. Fata allegedly perpetrated a brazen and dangerous fraud that time and again jeopardized his patients’ wellbeing,” said Acting Assistant Attorney General Raman. “The conduct alleged today is chilling, with the defendant endangering patient safety through misdiagnoses, over- or mis-prescription of chemotherapy and other treatments, and delay of hospital care for patients with serious injuries. Through the work of our dedicated prosecutors and agents, today we have taken swift action to safeguard patient safety and hold the defendant to account.”
“Our first priority is patient care,” said U.S. Attorney McQuade. “The agents and attorneys acted with great attention to detail to stop these allegedly dangerous practices as quickly as possible, and we have set up a victim hotline so that patients can access their files and get questions answered.”
“Violating a patient's trust and placing them at risk through fraudulent abuse of our nation's health care system is deplorable and a crime which the FBI takes most seriously,” said FBI Special Agent in Charge Foley. “The FBI remains committed to the arrest and prosecution of those who commit health care fraud.”
“The conduct alleged in this complaint is serious, not only in terms of potential Medicare dollars improperly obtained, but patient safety as well,” said HHS-OIG Special Agent in Charge Pugh. “The OIG will aggressively investigate allegations of this nature in order to ensure the safety of Medicare patients and to protect vital taxpayer dollars.”
According to the complaint, Dr. Fata owns and operates Michigan Hematology Oncology Centers (MHO), which has offices in Clarkston, Bloomfield Hills, Lapeer, Sterling Heights, Troy and Oak Park. It was through MHO that Dr. Fata allegedly submitted fraudulent claims to Medicare for medically unnecessary services, including chemotherapy treatments, Positron Emission Tomograph (PET) scans and a variety of cancer and hematology treatments for patients who did not need them. In the course of the scheme, Dr. Fata falsified and directed others to falsify documents to justify cancer treatments for billing purposes. MHO billed Medicare for approximately $35 million dollars over a two-year period, approximately $25 million of which is attributable to Dr. Fata.
The complaint further alleges that Dr. Fata directed the administration of unnecessary chemotherapy to patients in remission; deliberate misdiagnoses of patients as having cancer to justify unnecessary cancer treatment; administration of chemotherapy to end-of-life patients who would not have benefitted from the treatment; deliberate misdiagnoses of patients without cancer to justify expensive testing; fabrication of other diagnoses such as anemia and fatigue to justify unnecessary hematology treatments, and distribution of controlled substances to patients without medical necessity or through administering the drugs at dangerous levels.
Dr. Fata will be making his initial appearance in federal court this afternoon at 1 p.m. in Detroit.
Patients who have questions concerning their medical records and/or information regarding this investigation and prosecution can call the United States Attorney’s Office Information Line at 888-702-0553.
The case is being prosecuted by Assistant Chief Catherine Dick, supervisor of the Detroit Medicare Fraud Strike Force and Trial Attorney Matthew Thuesen of the Department of Justice as well as Sarah Resnick Cohen, Deputy Chief of the Health Care Fraud Unit at the U.S. Attorney’s Office, and Justin Bidwell, Special Assistant United States Attorney. The investigations were conducted jointly by the FBI and HHS-OIG, along with the assistance of the Michigan Attorney General’s Office.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
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