Sunday, July 14, 2013
CHIEF OF NAVAL OPERATIONS SAYS FORCES RETURNING TO TRADITIONAL ROLES
FROM: U.S. DEPARTMENT OF DEFENSE
Maritime Forces Returning to Traditional Roles, Greenert Says
By Claudette Roulo
American Forces Press Service
WASHINGTON, July 11, 2013 - The Navy and Marine Corps spent the last decade moving away from their traditional supporting/supported roles, "and it's time to come back," Navy Adm. Jonathan W. Greenert, the chief of naval operations, said today at a forum on the future of maritime forces.
For the Navy, Greenert said, that means maintaining a day-to-day presence where it matters, "and we've got to be there when it matters."
The admiral noted the speed with which naval forces were able to respond during the recent North Korean missile crisis.
"If we were not there, if we did not have ... a forward deployed naval force, we would not have been able to put in place the ballistic missile defense construct that we had in place in just about 72 hours," Greenert said.
Today, he said, the Navy has the Kearsarge Amphibious Readiness Group in place in the North Red Sea, off the coast of Egypt. They wouldn't be there if they hadn't already been forward-deployed, he added.
"We can't garrison and respond, because it will be too late," Greenert said.
In an era of shrinking budgets, the Navy has to make the most of what it has today, he said, and that means finding innovative ways to be forward. "We have a budget that has been sequestered, but the requirement [to respond] hasn't been sequestered," the admiral said.
Flexibility is the key to keeping costs down while maintaining a forward presence, he said. Through disaggregated operations, commanders have the ability to pull together ships and units to meet specific requirements, Greenert said, but the Navy's older inventory wasn't designed with this in mind.
The Navy has to build smarter, he said, and that means not constructing platforms that are so integrated and so complicated that they're only good for about a decade, instead of a more realistic 30-40 year lifespan.
"An alternative is distributed operations with tailored ships with tailored capabilities," the admiral said.
The Navy's newest vessels, including Littoral Combat Ships, Joint High Speed Vessels and Mobile Landing Platforms, will provide volume, speed and persistence, with modular, evolvable payloads, and at a lower cost than previous ship generations, Greenert said.
Construction is already underway on these ships, he said, and won't be affected by sequestration.
But, the admiral said, sequestration will mean fewer carrier strike groups and amphibious readiness groups available to surge to respond to crises. He likened the result to hollowing out a melon. At some point, Greenert said, the Navy will reach a point where it won't be able to support a surge.
The admiral acknowledged that after spending so long largely operating independently of each other, command and control between Navy and Marine Corps forces is still a challenge.
During Bold Alligator 2012, an annual fleet exercise, he said, "We found we needed a common way to plan and execute amphibious operations ... We need a better way to understand the ship-to-shore connectors."
However, exercises are intended to serve as learning experiences, Greenert said, and the Navy is now investing in portable mission planning and force-tracking capabilities to address this issue.
Maritime Forces Returning to Traditional Roles, Greenert Says
By Claudette Roulo
American Forces Press Service
WASHINGTON, July 11, 2013 - The Navy and Marine Corps spent the last decade moving away from their traditional supporting/supported roles, "and it's time to come back," Navy Adm. Jonathan W. Greenert, the chief of naval operations, said today at a forum on the future of maritime forces.
For the Navy, Greenert said, that means maintaining a day-to-day presence where it matters, "and we've got to be there when it matters."
The admiral noted the speed with which naval forces were able to respond during the recent North Korean missile crisis.
"If we were not there, if we did not have ... a forward deployed naval force, we would not have been able to put in place the ballistic missile defense construct that we had in place in just about 72 hours," Greenert said.
Today, he said, the Navy has the Kearsarge Amphibious Readiness Group in place in the North Red Sea, off the coast of Egypt. They wouldn't be there if they hadn't already been forward-deployed, he added.
"We can't garrison and respond, because it will be too late," Greenert said.
In an era of shrinking budgets, the Navy has to make the most of what it has today, he said, and that means finding innovative ways to be forward. "We have a budget that has been sequestered, but the requirement [to respond] hasn't been sequestered," the admiral said.
Flexibility is the key to keeping costs down while maintaining a forward presence, he said. Through disaggregated operations, commanders have the ability to pull together ships and units to meet specific requirements, Greenert said, but the Navy's older inventory wasn't designed with this in mind.
The Navy has to build smarter, he said, and that means not constructing platforms that are so integrated and so complicated that they're only good for about a decade, instead of a more realistic 30-40 year lifespan.
"An alternative is distributed operations with tailored ships with tailored capabilities," the admiral said.
The Navy's newest vessels, including Littoral Combat Ships, Joint High Speed Vessels and Mobile Landing Platforms, will provide volume, speed and persistence, with modular, evolvable payloads, and at a lower cost than previous ship generations, Greenert said.
Construction is already underway on these ships, he said, and won't be affected by sequestration.
But, the admiral said, sequestration will mean fewer carrier strike groups and amphibious readiness groups available to surge to respond to crises. He likened the result to hollowing out a melon. At some point, Greenert said, the Navy will reach a point where it won't be able to support a surge.
The admiral acknowledged that after spending so long largely operating independently of each other, command and control between Navy and Marine Corps forces is still a challenge.
During Bold Alligator 2012, an annual fleet exercise, he said, "We found we needed a common way to plan and execute amphibious operations ... We need a better way to understand the ship-to-shore connectors."
However, exercises are intended to serve as learning experiences, Greenert said, and the Navy is now investing in portable mission planning and force-tracking capabilities to address this issue.
SENATE TOLD AFGHAN SECURITY FORCES ARE SUCCEEDING
FROM: U.S. DEPARTMENT OF DEFENSE
Afghan Forces Achieving Security Success, Official Says
By Cheryl Pellerin
American Forces Press Service
WASHINGTON, July 11, 2013 - Afghan security forces are succeeding in the task of securing their people and their nation, and now the Afghan people are counting on coalition help to navigate the next transition, a senior defense official told a Senate panel today.
Dr. Peter R. Lavoy, acting assistant secretary of defense for Asian and Pacific security affairs, testified before the Senate Committee on Foreign Relations about the envisaged situation in Afghanistan at the end of 2014, when the International Security Assistance Force will end its mission in the country.
"Afghanistan is going through a democratic transition that is unprecedented in that country," Lavoy told the panel, "... so the democratic impulse is very strong and we need to do everything we can to support it and provide the confidence that tomorrow will be better than today ... in Afghanistan."
Afghan President Hamid Karzai will not run in the April 2014 election, the assistant secretary said.
"The outcome of this election is not clear to anyone and we are doing ... everything we can to ensure a successful, fair, free and representative election, but there is uncertainty," he said.
Lavoy said the Afghan army and police have performed with remarkable success.
"Afghan forces now plan and conduct the overwhelming majority of combat operations and also are taking the vast majority of casualties," he said. "... Despite heavy fighting, the Afghans are holding the gains of recent years and the Taliban must come to grips with the fact that they cannot defeat the Afghan national security forces militarily."
The Afghans are encountering resistance and taking many casualties, Lavoy said -- up to 400 soldiers and police every month, he said.
"But they're standing up to that resistance. They are an increasingly professional force that is getting the job done and doing a better job each and every day," he added.
Yet, there are gaps in Afghan capabilities, he added. ISAF provides critical support and assistance, he said, but the largest gaps are at the ministerial level -- at the ministries of Defense and Interior that support the army and police.
"They need a human capital strategy," Lavoy said. "They need to manage contracts, payrolls, food, fuel, other logistics, planning, intelligence, surveillance, reconnaissance, et cetera."
The United States is transitioning in Afghanistan, not leaving, the assistant secretary added.
"We are on track to bring the ISAF mission to a close by the end of 2014 and transition to Operation Resolute Support, a new train, advise and assist mission under a NATO umbrella," Lavoy said.
The United States also plans to conduct a narrowly focused counterterrorism mission, he said.
"The United States and Afghanistan are already negotiating a bilateral security agreement to provide the necessary framework to support the presence of U.S. forces to accomplish these missions," he said. "NATO is also preparing to negotiate such a framework with Afghanistan."
The United States has not decided on the size of the post-2014 military presence, Lavoy added, but the ultimate U.S. presence will be guided by several factors, including the following:
- Progress toward a core goal of defeating al-Qaida in the region;
- The potential for peace talks between the Afghan government and the Taliban;
- Continued progress with the Afghan national security forces;
- Afghanistan's political transition centered on the elections in April 2014;
- The regional setting; and
- Concluding the U.S.-Afghanistan bilateral security agreement in the NATO-Afghanistan Status of Forces Agreement.
"This is a critical time for our shared effort in Afghanistan," Lavoy said. "After more than a decade of war and tremendous sacrifices by the people of the United States, our coalition partners and Afghans, we can see the prospect for peace and stability in Afghanistan."
Strategically the mission is successful with the Afghan security forces in the lead, he added, but there are questions about the future.
"Whether you talk to Americans or especially to Afghans," Lavoy observed, "there will be questions and uncertainties about what happens in the future."
Afghan Forces Achieving Security Success, Official Says
By Cheryl Pellerin
American Forces Press Service
WASHINGTON, July 11, 2013 - Afghan security forces are succeeding in the task of securing their people and their nation, and now the Afghan people are counting on coalition help to navigate the next transition, a senior defense official told a Senate panel today.
Dr. Peter R. Lavoy, acting assistant secretary of defense for Asian and Pacific security affairs, testified before the Senate Committee on Foreign Relations about the envisaged situation in Afghanistan at the end of 2014, when the International Security Assistance Force will end its mission in the country.
"Afghanistan is going through a democratic transition that is unprecedented in that country," Lavoy told the panel, "... so the democratic impulse is very strong and we need to do everything we can to support it and provide the confidence that tomorrow will be better than today ... in Afghanistan."
Afghan President Hamid Karzai will not run in the April 2014 election, the assistant secretary said.
"The outcome of this election is not clear to anyone and we are doing ... everything we can to ensure a successful, fair, free and representative election, but there is uncertainty," he said.
Lavoy said the Afghan army and police have performed with remarkable success.
"Afghan forces now plan and conduct the overwhelming majority of combat operations and also are taking the vast majority of casualties," he said. "... Despite heavy fighting, the Afghans are holding the gains of recent years and the Taliban must come to grips with the fact that they cannot defeat the Afghan national security forces militarily."
The Afghans are encountering resistance and taking many casualties, Lavoy said -- up to 400 soldiers and police every month, he said.
"But they're standing up to that resistance. They are an increasingly professional force that is getting the job done and doing a better job each and every day," he added.
Yet, there are gaps in Afghan capabilities, he added. ISAF provides critical support and assistance, he said, but the largest gaps are at the ministerial level -- at the ministries of Defense and Interior that support the army and police.
"They need a human capital strategy," Lavoy said. "They need to manage contracts, payrolls, food, fuel, other logistics, planning, intelligence, surveillance, reconnaissance, et cetera."
The United States is transitioning in Afghanistan, not leaving, the assistant secretary added.
"We are on track to bring the ISAF mission to a close by the end of 2014 and transition to Operation Resolute Support, a new train, advise and assist mission under a NATO umbrella," Lavoy said.
The United States also plans to conduct a narrowly focused counterterrorism mission, he said.
"The United States and Afghanistan are already negotiating a bilateral security agreement to provide the necessary framework to support the presence of U.S. forces to accomplish these missions," he said. "NATO is also preparing to negotiate such a framework with Afghanistan."
The United States has not decided on the size of the post-2014 military presence, Lavoy added, but the ultimate U.S. presence will be guided by several factors, including the following:
- Progress toward a core goal of defeating al-Qaida in the region;
- The potential for peace talks between the Afghan government and the Taliban;
- Continued progress with the Afghan national security forces;
- Afghanistan's political transition centered on the elections in April 2014;
- The regional setting; and
- Concluding the U.S.-Afghanistan bilateral security agreement in the NATO-Afghanistan Status of Forces Agreement.
"This is a critical time for our shared effort in Afghanistan," Lavoy said. "After more than a decade of war and tremendous sacrifices by the people of the United States, our coalition partners and Afghans, we can see the prospect for peace and stability in Afghanistan."
Strategically the mission is successful with the Afghan security forces in the lead, he added, but there are questions about the future.
"Whether you talk to Americans or especially to Afghans," Lavoy observed, "there will be questions and uncertainties about what happens in the future."
U.S. JUDGEMENT ENFORCED BY CANADIAN COURT IN OTC MARKET MANIPULATION CASE
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
Canadian Court Enforces U.S. Judgment Award in Market Manipulation Case Against William Todd Peever and Phillip James Curtis
The Securities and Exchange Commission today announced that on June 20, 2013, the Honorable Justice Peter J. Rogers of the Supreme Court of British Columbia, Canada granted summary judgment in favor of the Commission to recognize and enforce judgments previously entered in U.S. District Court for the Southern District of New York against William Todd Peever (“Peever”) and Phillip James Curtis (“Curtis”), both of whom are Canadian citizens residing in British Columbia. Those U.S. judgments held Peever and Curtis jointly and severally liable for $2,894,537.48 in disgorgement and $1,611,998.18 in prejudgment interest for their respective roles in a fraudulent scheme to manipulate the stock price of SHEP Technologies, Inc. (“SHEP”) f/k/a Inside Holdings Inc. (“IHI”), whose shares traded on the Over-the-Counter Bulletin Board.
The Commission’s complaint in SEC v. Brian N. Lines, et al., 1:07-CV-11387 (DLC) (S.D.N.Y. Dec. 19, 2007), filed in U.S. federal court, had alleged, in pertinent part, that during 2002 and 2003, defendants Peever and Curtis, together with certain co-defendants, engaged in a scheme to secretly obtain control of the publicly traded shell company IHI, through use of nominees. The scheme involved merging IHI with a private company to form SHEP, secretly paying touters to promote the IHI/SHEP stock, and then selling SHEP stock into the ensuing demand. During the first half of 2003, Peever, Curtis, and certain other defendants sold over 3 million SHEP shares into this artificially-stimulated demand, generating about $4.3 million in illegal proceeds. As part of the scheme, Peever and Curtis failed to file required reports with the Commission regarding their beneficial ownership of IHI and SHEP stock to conceal that they, among others, owned substantial positions in, and had been selling, SHEP stock.
Curtis and Peever challenged the Commission’s attempt to enforce the U.S. court judgments in Canada by contending: (1) the judgments had been procured by fraud; and (2) that the disgorgement award was penal in nature and, therefore, could not be recognized under Canadian law. The Canadian court rejected both of the Defendants’ arguments, and held that there was no basis to bar enforcement of the judgments against the Defendants in Canada.
Canadian Court Enforces U.S. Judgment Award in Market Manipulation Case Against William Todd Peever and Phillip James Curtis
The Securities and Exchange Commission today announced that on June 20, 2013, the Honorable Justice Peter J. Rogers of the Supreme Court of British Columbia, Canada granted summary judgment in favor of the Commission to recognize and enforce judgments previously entered in U.S. District Court for the Southern District of New York against William Todd Peever (“Peever”) and Phillip James Curtis (“Curtis”), both of whom are Canadian citizens residing in British Columbia. Those U.S. judgments held Peever and Curtis jointly and severally liable for $2,894,537.48 in disgorgement and $1,611,998.18 in prejudgment interest for their respective roles in a fraudulent scheme to manipulate the stock price of SHEP Technologies, Inc. (“SHEP”) f/k/a Inside Holdings Inc. (“IHI”), whose shares traded on the Over-the-Counter Bulletin Board.
The Commission’s complaint in SEC v. Brian N. Lines, et al., 1:07-CV-11387 (DLC) (S.D.N.Y. Dec. 19, 2007), filed in U.S. federal court, had alleged, in pertinent part, that during 2002 and 2003, defendants Peever and Curtis, together with certain co-defendants, engaged in a scheme to secretly obtain control of the publicly traded shell company IHI, through use of nominees. The scheme involved merging IHI with a private company to form SHEP, secretly paying touters to promote the IHI/SHEP stock, and then selling SHEP stock into the ensuing demand. During the first half of 2003, Peever, Curtis, and certain other defendants sold over 3 million SHEP shares into this artificially-stimulated demand, generating about $4.3 million in illegal proceeds. As part of the scheme, Peever and Curtis failed to file required reports with the Commission regarding their beneficial ownership of IHI and SHEP stock to conceal that they, among others, owned substantial positions in, and had been selling, SHEP stock.
Curtis and Peever challenged the Commission’s attempt to enforce the U.S. court judgments in Canada by contending: (1) the judgments had been procured by fraud; and (2) that the disgorgement award was penal in nature and, therefore, could not be recognized under Canadian law. The Canadian court rejected both of the Defendants’ arguments, and held that there was no basis to bar enforcement of the judgments against the Defendants in Canada.
SEC OBTAINS FINAL JUDGEMENT AGAINST ATTORNEY FOR FALSE STATEMENT ABOUT CLIENT
FROM: SECURITIES AND EXCHANGE COMMISSION
SEC Obtains Final Judgment Against Miami Attorney Stewart A. Merkin
On July 1, 2013, the Honorable Donald L. Graham, United States District Judge for the Southern District of Florida, signed the final judgment against defendant Stewart A. Merkin (“Merkin”) in a civil action originally filed on October 3, 2011. Merkin is an attorney in Miami, Florida.
The Commission brought a civil action against Merkin alleging violations of Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 thereunder. The Complaint alleged that on four occasions, Merkin, an experienced attorney, wrote letters falsely stating that his client, StratoComm Corporation (“StratoComm”), was not under investigation for violations of the securities laws. The Complaint further alleged that Merkin knew that his statements were false because, at the time that he wrote each letter, he was representing StratoComm and several individuals in the Commission’s investigation into the company’s activities. The Commission’s Complaint alleged that Merkin authorized his letters to be posted on the website maintained by Pink Sheets LLC (currently OTC Markets Group Inc.) for viewing by the investing public.
On October 3, 2012, the Court granted the Commission’s motion for summary judgment with respect to liability, finding that Merkin made false statements of material fact, with scienter, in connection with the purchase or sale of securities. Merkin subsequently consented to the entry of a final judgment that: (i) orders him liable to pay a total of $125,000 in disgorgement, prejudgment interest and a civil penalty; (ii) imposes a permanent injunction against future violations of Section 10(b) and Rule 10b-5 of the Exchange Act by making false or misleading statements; and (iii) permanently bars Merkin from participating in an offering of penny stock. In consenting to these remedies, Merkin retained his right to appeal from the Court’s ruling on summary judgment with respect to liability.
SEC Obtains Final Judgment Against Miami Attorney Stewart A. Merkin
On July 1, 2013, the Honorable Donald L. Graham, United States District Judge for the Southern District of Florida, signed the final judgment against defendant Stewart A. Merkin (“Merkin”) in a civil action originally filed on October 3, 2011. Merkin is an attorney in Miami, Florida.
The Commission brought a civil action against Merkin alleging violations of Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 thereunder. The Complaint alleged that on four occasions, Merkin, an experienced attorney, wrote letters falsely stating that his client, StratoComm Corporation (“StratoComm”), was not under investigation for violations of the securities laws. The Complaint further alleged that Merkin knew that his statements were false because, at the time that he wrote each letter, he was representing StratoComm and several individuals in the Commission’s investigation into the company’s activities. The Commission’s Complaint alleged that Merkin authorized his letters to be posted on the website maintained by Pink Sheets LLC (currently OTC Markets Group Inc.) for viewing by the investing public.
On October 3, 2012, the Court granted the Commission’s motion for summary judgment with respect to liability, finding that Merkin made false statements of material fact, with scienter, in connection with the purchase or sale of securities. Merkin subsequently consented to the entry of a final judgment that: (i) orders him liable to pay a total of $125,000 in disgorgement, prejudgment interest and a civil penalty; (ii) imposes a permanent injunction against future violations of Section 10(b) and Rule 10b-5 of the Exchange Act by making false or misleading statements; and (iii) permanently bars Merkin from participating in an offering of penny stock. In consenting to these remedies, Merkin retained his right to appeal from the Court’s ruling on summary judgment with respect to liability.
Saturday, July 13, 2013
SUPERVISOR SENTNECED IN $63 MILLION HEALTH CARE FRAUD SCHEME
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, July 8, 2013
Supervisor of $63 Million Health Care Fraud Scheme Sentenced in Florida to 10 Years in Prison
A former supervisor at defunct health provider Health Care Solutions Network Inc. (HCSN) was sentenced today in Miami to serve 10 years in prison for her central role in a fraud scheme that resulted in more than $63 million in fraudulent claims to Medicare and Florida Medicaid.
The sentence was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
Wondera Eason, 51, of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida. In addition to her prison term, Eason was sentenced to serve three years of supervised release and ordered to pay $14,985,876 in restitution.
On April 25, 2013, a federal jury found Eason guilty of conspiracy to commit health care fraud.
Eason was employed as the director of medical records at HCSN’s partial hospitalization program (PHP). A PHP is a form of intensive treatment for severe mental illness. In Florida, HCSN operated community mental health centers at two locations. After stealing millions from Medicare and Medicaid in Florida, HCSN’s owner, Armando Gonzalez, expanded the scheme to North Carolina, opening a third HCSN location in Hendersonville, N.C.
Evidence at trial showed that at all three locations, Eason, a certified medical records technician, oversaw the alteration, fabrication and forgery of thousands of documents that purported to support the fraudulent claims HCSN submitted to Medicare and Medicaid. Many of these medical records were created weeks or months after the patients were admitted to HCSN facilities in Florida for purported PHP treatment and were utilized to support false and fraudulent billing to government-sponsored health care benefit programs, including Medicare and Medicaid. Eason directed therapists to fabricate documents, and she also forged the signatures of therapists and others on documents that she was in charge of maintaining. Eason interacted with Medicare and Medicaid auditors, providing them with false and fraudulent documents, while certifying the documents were accurate.
The "therapy" at HCSN oftentimes consisted of nothing more than patients watching Disney movies, playing bingo and having barbeques. Eason directed therapists to remove any references to these recreational activities in the medical records.
According to evidence at trial, Eason was aware that HCSN in Florida paid illegal kickbacks to owners and operators of Miami-Dade County assisted living facilities (ALF) in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Eason also knew that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease.
From 2004 through 2011, HCSN billed Medicare and the Medicaid program more than $63 million for purported mental health services.
Fifteen defendants have been charged and have pleaded guilty or been convicted by a jury for their roles in the HCSN health care fraud scheme.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case was prosecuted by Trial Attorney Allan J. Medina, former Special Trial Attorney William Parente and Deputy Chief Benjamin D. Singer of the Criminal Division’s Fraud Section.
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.
Monday, July 8, 2013
Supervisor of $63 Million Health Care Fraud Scheme Sentenced in Florida to 10 Years in Prison
A former supervisor at defunct health provider Health Care Solutions Network Inc. (HCSN) was sentenced today in Miami to serve 10 years in prison for her central role in a fraud scheme that resulted in more than $63 million in fraudulent claims to Medicare and Florida Medicaid.
The sentence was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
Wondera Eason, 51, of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida. In addition to her prison term, Eason was sentenced to serve three years of supervised release and ordered to pay $14,985,876 in restitution.
On April 25, 2013, a federal jury found Eason guilty of conspiracy to commit health care fraud.
Eason was employed as the director of medical records at HCSN’s partial hospitalization program (PHP). A PHP is a form of intensive treatment for severe mental illness. In Florida, HCSN operated community mental health centers at two locations. After stealing millions from Medicare and Medicaid in Florida, HCSN’s owner, Armando Gonzalez, expanded the scheme to North Carolina, opening a third HCSN location in Hendersonville, N.C.
Evidence at trial showed that at all three locations, Eason, a certified medical records technician, oversaw the alteration, fabrication and forgery of thousands of documents that purported to support the fraudulent claims HCSN submitted to Medicare and Medicaid. Many of these medical records were created weeks or months after the patients were admitted to HCSN facilities in Florida for purported PHP treatment and were utilized to support false and fraudulent billing to government-sponsored health care benefit programs, including Medicare and Medicaid. Eason directed therapists to fabricate documents, and she also forged the signatures of therapists and others on documents that she was in charge of maintaining. Eason interacted with Medicare and Medicaid auditors, providing them with false and fraudulent documents, while certifying the documents were accurate.
The "therapy" at HCSN oftentimes consisted of nothing more than patients watching Disney movies, playing bingo and having barbeques. Eason directed therapists to remove any references to these recreational activities in the medical records.
According to evidence at trial, Eason was aware that HCSN in Florida paid illegal kickbacks to owners and operators of Miami-Dade County assisted living facilities (ALF) in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Eason also knew that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease.
From 2004 through 2011, HCSN billed Medicare and the Medicaid program more than $63 million for purported mental health services.
Fifteen defendants have been charged and have pleaded guilty or been convicted by a jury for their roles in the HCSN health care fraud scheme.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case was prosecuted by Trial Attorney Allan J. Medina, former Special Trial Attorney William Parente and Deputy Chief Benjamin D. Singer of the Criminal Division’s Fraud Section.
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.
DOD SAYS FURLOUGHS AFFECTING BUCKLEY AIR FORCE BASE
FROM: U.S. AIR FORCE
Furloughs affect Buckley; changes hit home
by Staff Sgt. Nicholas Rau
460th Space Wing Public Affairs
7/8/2013 - BUCKLEY AIR FORCE BASE, Colo. -- The day many civilians and military partners have anticipated is here as furloughs kick off at Buckley and around the Air Force July 8.
Furloughs place an employee in a temporary non-duty, non-pay status because of lack of work, reduction or lack of funds, or other non-disciplinary reason. The furlough will affect approximately 800,000 Department of Defense employees and save about $1.8 billion across the DOD. This decision was enacted to address the $37 billion sequestration cuts.
"After extensive review of all options with the DOD's senior military and civilian leadership on how we address this budget crisis ... I have decided to direct furloughs of up to 11 days for most of the department's civilian personnel," stated Secretary of Defense Chuck Hagel. "I have made this decision very reluctantly, because I know that the furloughs will disrupt lives and impact DOD operations. I recognize the significant hardship this places on you and your families."
Until the end of the fiscal year, most civilian employees will lose 20 percent of their pay due to the furlough. This amount could range anywhere from a monthly grocery bill to a mortgage payment.
"My suggestion to anyone feeling the budgetary constraints is to go see our professionals in the airman and family readiness center and our civilian personnel office for help," said Thomas Hoag, 460th Operations Group unit deployment manager. "There are many avenues out there to help someone get through these turbulent times."
Though fiscal concerns are crucial, attitude and morale are equally important in accomplishing the mission.
"My opinion of the furlough is one of acceptance; it is out of my control," Hoag said. "Hopefully the powers in charge of our budget fix some issues. I hope that this furlough actually contributes to fixing our fiscal deficiencies in our government. I would hate to think that this fiscal hardship is all for naught."
With 90 percent of civilian Airman working in the field alongside their military counterparts to accomplish the mission, a significant increase in workload can be expected for uniformed members.
"I think that the furlough is going to have an impact on my military co-worker," the deployment manager stated. "We only have a two-person shop. Sometimes we have very busy days, so he'll be hustling on those days that I'm not there.
"One way or another, the mission is going to be accomplished, because that is what we do as professionals," he said. "Although it will come at a cost."
Furloughs affect Buckley; changes hit home
by Staff Sgt. Nicholas Rau
460th Space Wing Public Affairs
7/8/2013 - BUCKLEY AIR FORCE BASE, Colo. -- The day many civilians and military partners have anticipated is here as furloughs kick off at Buckley and around the Air Force July 8.
Furloughs place an employee in a temporary non-duty, non-pay status because of lack of work, reduction or lack of funds, or other non-disciplinary reason. The furlough will affect approximately 800,000 Department of Defense employees and save about $1.8 billion across the DOD. This decision was enacted to address the $37 billion sequestration cuts.
"After extensive review of all options with the DOD's senior military and civilian leadership on how we address this budget crisis ... I have decided to direct furloughs of up to 11 days for most of the department's civilian personnel," stated Secretary of Defense Chuck Hagel. "I have made this decision very reluctantly, because I know that the furloughs will disrupt lives and impact DOD operations. I recognize the significant hardship this places on you and your families."
Until the end of the fiscal year, most civilian employees will lose 20 percent of their pay due to the furlough. This amount could range anywhere from a monthly grocery bill to a mortgage payment.
"My suggestion to anyone feeling the budgetary constraints is to go see our professionals in the airman and family readiness center and our civilian personnel office for help," said Thomas Hoag, 460th Operations Group unit deployment manager. "There are many avenues out there to help someone get through these turbulent times."
Though fiscal concerns are crucial, attitude and morale are equally important in accomplishing the mission.
"My opinion of the furlough is one of acceptance; it is out of my control," Hoag said. "Hopefully the powers in charge of our budget fix some issues. I hope that this furlough actually contributes to fixing our fiscal deficiencies in our government. I would hate to think that this fiscal hardship is all for naught."
With 90 percent of civilian Airman working in the field alongside their military counterparts to accomplish the mission, a significant increase in workload can be expected for uniformed members.
"I think that the furlough is going to have an impact on my military co-worker," the deployment manager stated. "We only have a two-person shop. Sometimes we have very busy days, so he'll be hustling on those days that I'm not there.
"One way or another, the mission is going to be accomplished, because that is what we do as professionals," he said. "Although it will come at a cost."
U.S. MARINES AND GEORGIAN SOLDIERS CONDUCT OPERATION NORTHERN LION II IN AFGHANISTAN
FROM: U.S. DEPARTMENT OF DEFENSE
Georgian soldiers provide security during operation Northern Lion II in Afghanistan's Helmand province, July 3, 2013. U.S. Marine Corps photo by Cpl. Alejandro Pena
A Georgian soldier provides security during operation Northern Lion II in Afghanistan's Helmand province, July 3, 2013. U.S. Marine Corps photo by Cpl. Alejandro Pena.
Friday, July 12, 2013
'PACOM COMMANDER SUPPORTS REVIEW OF JPAC'
FROM: U.S. DEPARTMENT OF DEFENSE
Pacom Commander Supports Review of JPAC
By Karen Parrish
American Forces Press Service
WASHINGTON, July 11, 2013 - The Joint Prisoners of War, Missing in Action Accounting Command has an important and unique global mission and a sacred duty, so defense leaders must ensure the unit has the organizational construct, the right oversight and the right direction, the commander of JPAC's higher headquarters said today.
Navy Adm. Samuel J. Locklear III, commander of U.S. Pacific Command, responded to Pentagon reporters' questions about JPAC during a news conference here. JPAC conducts global search, recovery, and laboratory operations to identify the remains of unaccounted-for Americans from past conflicts. The Hawaii-based unit reports to Pacom.
Media outlets reported earlier this week that an internal review performed at JPAC had indicated organizational issues. Locklear pointed out the unit has a limited, set number of experts to perform its unique mission.
"I do think that there are areas where we need to take harder looks at how it is organized and how the mission steps are prioritized," the admiral said. He added he's very supportive of the announcement by James N. Miller, undersecretary of defense for policy, that the department will perform a deeper review of JPAC operations.
"The people in that organization are good people," Locklear said. "And they've done a lot of good work. And they continue to work in some very difficult conditions and difficult places under different political situations."
Locklear said the real issue, for him, is ensuring JPAC has prioritized where and how they pursue their mission, "so that we can get them on an up-ramp as far as number of remains that get recovered."
He noted the National Defense Authorization Act of 2010 set a goal of 200 recoveries a year by 2015. "And we're not approaching that," he said. Locklear said the political will of the nations JPAC operates in, along with support and access issues, often influence mission accomplishment.
"It's a very complex issue, globally, to try to get at," he said. " ... I just think that we need to work harder to make sure that the goal that they've been given, that they can achieve it."
Pentagon Press Secretary George Little told reporters during a July 9 news conference that reviewing JPAC operations is the prudent thing to do.
"We're going to review the concerns raised in the report to see how JPAC is or isn't functioning well," Little said. "And if steps need to be taken to remedy what's happening inside JPAC, then we'll take action."
Pacom Commander Supports Review of JPAC
By Karen Parrish
American Forces Press Service
WASHINGTON, July 11, 2013 - The Joint Prisoners of War, Missing in Action Accounting Command has an important and unique global mission and a sacred duty, so defense leaders must ensure the unit has the organizational construct, the right oversight and the right direction, the commander of JPAC's higher headquarters said today.
Navy Adm. Samuel J. Locklear III, commander of U.S. Pacific Command, responded to Pentagon reporters' questions about JPAC during a news conference here. JPAC conducts global search, recovery, and laboratory operations to identify the remains of unaccounted-for Americans from past conflicts. The Hawaii-based unit reports to Pacom.
Media outlets reported earlier this week that an internal review performed at JPAC had indicated organizational issues. Locklear pointed out the unit has a limited, set number of experts to perform its unique mission.
"I do think that there are areas where we need to take harder looks at how it is organized and how the mission steps are prioritized," the admiral said. He added he's very supportive of the announcement by James N. Miller, undersecretary of defense for policy, that the department will perform a deeper review of JPAC operations.
"The people in that organization are good people," Locklear said. "And they've done a lot of good work. And they continue to work in some very difficult conditions and difficult places under different political situations."
Locklear said the real issue, for him, is ensuring JPAC has prioritized where and how they pursue their mission, "so that we can get them on an up-ramp as far as number of remains that get recovered."
He noted the National Defense Authorization Act of 2010 set a goal of 200 recoveries a year by 2015. "And we're not approaching that," he said. Locklear said the political will of the nations JPAC operates in, along with support and access issues, often influence mission accomplishment.
"It's a very complex issue, globally, to try to get at," he said. " ... I just think that we need to work harder to make sure that the goal that they've been given, that they can achieve it."
Pentagon Press Secretary George Little told reporters during a July 9 news conference that reviewing JPAC operations is the prudent thing to do.
"We're going to review the concerns raised in the report to see how JPAC is or isn't functioning well," Little said. "And if steps need to be taken to remedy what's happening inside JPAC, then we'll take action."
MORTGAGE AGENT CONVICTED IN MORTGAGE FRAUD SCHEME THAT NETTED $1.43 MILLION
FROM: U.S. DEPARTMENT OF JUSTICE
Las Vegas Agent Convicted in Mortgage Fraud Scheme
A Las Vegas mortgage agent has been convicted for his role in a “cash back at closing” mortgage fraud scheme that netted $1.43 million in fraudulent mortgage loans, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada, and Acting Special Agent in Charge William C. Woerner of the FBI’s Las Vegas Field Office.
After a three-day trial before U.S. District Judge Larry Hicks in the District of Nevada, a federal jury convicted Jawad “Joe” Quassani, 42, on July 10, 2013, of one count of conspiracy to commit wire fraud and mail fraud, two counts of wire fraud, and two counts of mail fraud.
According to court documents and evidence presented at trial, Quassani participated in a scheme in which the prices of two homes were falsely inflated, mortgage loans were obtained through the submission of loan applications containing false and fraudulent information about the buyer’s income and intent to occupy the homes as primary residences, a portion of the loan proceeds was diverted at the close of escrow to the defendant’s co-conspirators, and commissions on the fraudulent loans were paid to Quassani and his co-conspirator. Evidence at trial established that Quassani, a licensed mortgage agent at Rapid Funding Group, conceived the scheme together with two of his co-conspirators, prepared one of the loan applications and arranged for the preparation of the other, and shared in the commissions generated by transactions that had no purpose other than to generate profits for the co-conspirators.
Co-conspirators Anita Mathur and Shirjil “Sean” Qureshi previously pleaded guilty in related cases in Las Vegas to one count of conspiracy to commit bank fraud, wire fraud and mail fraud. Both are awaiting sentencing.
This case was investigated by the FBI. Trial Attorneys Stephen J. Spiegelhalter and Gary A. Winters of the Criminal Division’s Fraud Section are prosecuting the case.
Today’s conviction is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants.
Las Vegas Agent Convicted in Mortgage Fraud Scheme
A Las Vegas mortgage agent has been convicted for his role in a “cash back at closing” mortgage fraud scheme that netted $1.43 million in fraudulent mortgage loans, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada, and Acting Special Agent in Charge William C. Woerner of the FBI’s Las Vegas Field Office.
After a three-day trial before U.S. District Judge Larry Hicks in the District of Nevada, a federal jury convicted Jawad “Joe” Quassani, 42, on July 10, 2013, of one count of conspiracy to commit wire fraud and mail fraud, two counts of wire fraud, and two counts of mail fraud.
According to court documents and evidence presented at trial, Quassani participated in a scheme in which the prices of two homes were falsely inflated, mortgage loans were obtained through the submission of loan applications containing false and fraudulent information about the buyer’s income and intent to occupy the homes as primary residences, a portion of the loan proceeds was diverted at the close of escrow to the defendant’s co-conspirators, and commissions on the fraudulent loans were paid to Quassani and his co-conspirator. Evidence at trial established that Quassani, a licensed mortgage agent at Rapid Funding Group, conceived the scheme together with two of his co-conspirators, prepared one of the loan applications and arranged for the preparation of the other, and shared in the commissions generated by transactions that had no purpose other than to generate profits for the co-conspirators.
Co-conspirators Anita Mathur and Shirjil “Sean” Qureshi previously pleaded guilty in related cases in Las Vegas to one count of conspiracy to commit bank fraud, wire fraud and mail fraud. Both are awaiting sentencing.
This case was investigated by the FBI. Trial Attorneys Stephen J. Spiegelhalter and Gary A. Winters of the Criminal Division’s Fraud Section are prosecuting the case.
Today’s conviction is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants.
DOJ ISSUES STATEMENT ON MEETING WITH EU
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, July 8, 2013
Justice Department Statement on Meeting with European Union
"This morning the Department of Justice hosted the initial meeting in the U.S.-E.U./E.U. Member State dialogue on intelligence practices, as first suggested by Attorney General Holder during a ministerial gathering with E.U. officials in Dublin last month.
“Officials from the Justice Department, Office of the Director of National Intelligence and the State Department represented the United States government. Officials from the E.U. included representatives of the Lithuanian Presidency of the EU, the European Council, the European Commission, the External Action Service of the EU, and EU Member States.
“This meeting focused on next steps for discussion of these issues, including the possibility of a follow-on meeting in the coming weeks. This open and constructive dialogue illustrates the extent and depth of the relationship between the U.S. and our European partners as we strive to protect both the safety and individual liberties of citizens on both sides of the Atlantic.
“We look forward to this continued dialogue and cooperation with the EU and EU Member States.”
Monday, July 8, 2013
Justice Department Statement on Meeting with European Union
"This morning the Department of Justice hosted the initial meeting in the U.S.-E.U./E.U. Member State dialogue on intelligence practices, as first suggested by Attorney General Holder during a ministerial gathering with E.U. officials in Dublin last month.
“Officials from the Justice Department, Office of the Director of National Intelligence and the State Department represented the United States government. Officials from the E.U. included representatives of the Lithuanian Presidency of the EU, the European Council, the European Commission, the External Action Service of the EU, and EU Member States.
“This meeting focused on next steps for discussion of these issues, including the possibility of a follow-on meeting in the coming weeks. This open and constructive dialogue illustrates the extent and depth of the relationship between the U.S. and our European partners as we strive to protect both the safety and individual liberties of citizens on both sides of the Atlantic.
“We look forward to this continued dialogue and cooperation with the EU and EU Member States.”
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