ALEXANDRIA, Va. – A former Fairfax doctor was sentenced today to seven years in prison for leading and organizing an extensive and illegal prescription distribution conspiracy and a related health care fraud scheme.

According to court documents, Dr. Felicia Lyn Donald, 65, of Great Falls, organized, led, and operated a prescription “pill mill” from at least April 2016 through April 2020. Donald practiced medicine at For Women OB/GYN Associates and NOVA Addiction Center. Donald distributed over 1.2 million milligrams (mg) of Schedule II opioids at or above the Centers for Disease Control and Prevention (CDC) guideline for dosages that a practitioner should avoid, with a total street value of over $1.2 million, and illegally distributed at least 325,190 mg of oxycodone and other Schedule II controlled substances. Donald also committed health care fraud on numerous occasions in furtherance of her scheme.

“Donald flagrantly betrayed the public’s trust in the medical profession by unlawfully distributing highly addictive and potentially lethal drugs to patients and other individuals,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The Eastern District of Virginia will continue to prosecute doctors who abandon their medical oath and hold them accountable for choosing profits over patients’ lives.”

Donald admitted that she prescribed opioids to addicts and/or drug dealers who had traveled from out-of-state or long distances to her practice; individuals that informed Donald of their pending drug charges; individuals who Donald knew had failed urine toxicology screens; individuals who Donald knew were selling the pills that she prescribed to them; individuals who received from Donald opioids and alprazolam, which Donald admitted is a dangerous combination of drugs that could have killed or caused serious bodily injury to the ultimate users; paying certain employees, in part, with opioid prescriptions rather than through pay checks; and giving blank prescriptions to certain members of her medical office staff and other co-conspirators for their personal use.

Donald attempted to conceal her patterns of illegal prescribing by falsifying medical records to make it appear as though individuals who were never her patients received examinations and medical care, when in fact they had not, and engaging in Medicaid fraud. Donald fraudulently issued prescriptions to others in the names of at least nine unwitting individuals, none of whom were her patients. Donald also issued prescriptions for high doses of oxycodone to multiple women who were pregnant.

Following her guilty plea on May 4, the Court revoked Donald’s pretrial release on August 7 after the government learned and produced evidence indicating that Donald violated numerous conditions of her release pending sentencing, including: 1) Donald admitted that she “made it up” when informing the FBI and jail officials during her arrest that she was exposed to COVID-19; 2) Donald continued to practice medicine for profit; 3) Donald repeatedly communicated with co-conspirators following her guilty plea; 4) Donald made a false certification under penalty of perjury on May 16 to the Small Business Administration (SBA) to obtain a loan in light of the COVID-19 pandemic, including failing to inform the SBA about her guilty plea; and 5) Donald fraudulently used SBA loan and/or Cares Act Paycheck Protection Program COVID-19 loans to fund her personal-related expenses, including thousands of dollars in legal fees related to this case.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; and Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services (HHS), made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.

First Assistant U.S. Attorney Raj Parekh and Assistant U.S. Attorney Monika Moore prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-100.

ALEXANDRIA, Va. – A federal jury convicted an Alexandria man today of providing material support to the Islamic State of Iraq and al-Sham (ISIS).

According to court records and evidence presented at trial, Mohamad Jamal Khweis, 27, left the United States in mid-December 2015, and ultimately crossed into Syria through the Republic of Turkey in late December 2015. Before leaving, Khweis quit his job, sold his car, closed online accounts, and did not tell his family he was leaving to join ISIS. During his travel to the Islamic State, he used numerous encrypted devices to conceal his activity, and downloaded several applications on his phone that featured secure messaging or anonymous web browsing. Khweis used these applications to communicate with ISIS facilitators to coordinate and secure his passage to the Islamic State.

“Khweis is not a naïve kid who didn’t know what he was doing,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, who is also serving as the Acting Assistant Attorney General for National Security. “He is a 27-year-old man who studied criminal justice in college. He strategically planned his travel to avoid law enforcement suspicion, encrypted his communications, and planned for possible alibis. Khweis knew exactly what he was doing, knew exactly who ISIS was, and was well aware of their thirst for extreme violence. Nonetheless, this did not deter him. Instead, Khweis voluntarily chose to join the ranks of a designated foreign terrorist organization, and that is a federal crime, even if you get scared and decide to leave. This office, along with the National Security Division and our investigative partners, are committed to tracking down anyone who provides or attempts to provide material support to a terrorist organization.”

After arriving in Syria, Khweis stayed at a safe house with other ISIS recruits in Raqqa and filled out ISIS intake forms, which included his name, age, skills, specialty before jihad, and status as a fighter. When Khweis joined ISIS, he agreed to be a suicide bomber. In February 2017, the United States military recovered his intake form, along with an ISIS camp roster that included Khweis’ name with 19 other ISIS fighters.

“Mohamad Khweis purposefully traveled overseas with the intent to join ISIL in support of the terrorist group’s efforts to conduct operations and execute attacks to further their radical ideology,” said Andrew W. Vale, Assistant Director in Charge in Charge of the FBI’s Washington Field Office. “Furthermore, when ISIL leaders questioned Khweis' commitment to serving as a suicide bomber to carry out acts of terrorism, Khweis stated that he agreed and recognized that ISIL uses violence in its expansion of its caliphate. Today’s verdict underscores the dedication of the FBI and our partners within the Joint Terrorism Task Force in pursuing and disrupting anyone who poses a risk of harm to U.S. persons or interests or by providing material support to a terrorist group.”

During the trial, Khweis admitted to spending approximately 2.5 months as an ISIS member, traveling with ISIS fighters to multiple safe houses and participating in ISIS-directed religious training. Kurdish Peshmerga military forces detained Khweis in March 2016. A Kurdish Peshmerga official testified at trial that he captured Khweis on the battlefield after Khweis left an ISIS-controlled neighborhood in Tal Afar, Iraq.

On a cross examination, Khweis admitted he consistently lied to United States and Kurdish officials about his involvement with ISIS, and that he omitted telling United States officials about another American who had trained with ISIS to conduct an attack in the United States.

The jury convicted Khweis on all three charged counts, including providing and conspiring to provide material support or resources to ISIS, and a related firearms count. Khweis faces a mandatory minimum of 5 years and a maximum penalty of life in prison when sentenced on October 13. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Acting Assistant Attorney General for National Security; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Liam O’Grady accepted the verdict. Assistant U.S. Attorney Dennis Fitzpatrick and Special Assistant U.S. Attorney Raj Parekh are prosecuting the case.

The FBI’s Joint Terrorism Task Force provided assistance in this case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-143.

ALEXANDRIA, Va. – United States Attorney G. Zachary Terwilliger today announced that two victim services providers in the Commonwealth of Virginia received $866,676 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and appropriate services to victims of human trafficking.

“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”

The grant, awarded to Survivor Ventures, Inc. and Transitions Family Violence Services, will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grant will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. Survivor Ventures, Inc. and Transitions Family Violence Services are among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.

“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said Katharine T. Sullivan, Deputy Assistant Attorney General for OJP Principal. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”

Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.

The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.

For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.

ALEXANDRIA, Va. – A former Defense Advanced Research Projects Agency (DARPA) Program Manager and Founder and CEO of XeroWind, LLC of Falls Church, has agreed to pay $50,000 and surrender three patents to the United States government to settle allegations relating to his improper patenting of U.S. Government property and technology.

In July, the United States filed a lawsuit against Dr. Deepak Varshneya, of Falls Church, and XeroWind alleging conversion of government technology. The government’s complaint contended that while a DARPA Program Manager, Dr. Varshneya worked on a DARPA research program known as “ONE SHOT,” which developed a crosswind and range measuring rifle scope. Dr. Varshneya requested permission to patent the technology, but DARPA made the determination, pursuant to 37 C.F.R. Part 501, that the ONE SHOT technology was the sole property of the United States government. Dr. Varshneya did not appeal the determination and admitted that he worked on the ONE SHOT technology in the course of his government employment. Despite that determination and admission, Dr. Varshneya nonetheless filed a patent application with the U.S. Patent and Trademark Office covering that same technology, failing to make any mention of the government interest. Shortly after leaving DARPA, Dr. Varshneya filed two follow-on patent applications covering the same technology, and founded XeroWind, LLC to market the ONE SHOT technology. 

The $50,000 monetary payment settles allegations that included breach of fiduciary duty of a government employee. In addition, the settlement requires Dr. Varshneya to surrender the three patents to the U.S. Government. The settlement includes a limited non-exclusive license agreement with Dr. Varshneya and XeroWind, allowing them to market the technology in certain markets but requiring payment of royalties to the United States government.

The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the Department of Justice Intellectual Property Section.

The matter was handled by Assistant U.S. Attorney Kristin Starr and Department of Justice Trial Attorney Michel Souaya. 

The civil claims settled by this settlement are allegations only; there has been no determination of civil liability.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Civil Case No. 1:20-cv-741.

ALEXANDRIA, Va. – Stephen McLeod d/b/a A&S Contracting, of Hayes, Virginia, agreed to pay $750,000 to settle False Claims Act allegations that he engaged in a pattern of inflating costs and concealing use of subcontractors on work orders conducted for the United States Postal Service (USPS).McLeod, a sole proprietor doing business as A&S Contracting, performed repair and maintenance service projects at U.S. postal facilities throughout Virginia, Maryland, North Carolina, and the District of Columbia.The government alleged that some thirty work orders contained false information and resulted in overcharges to the USPS.In one example, McLeod agreed to perform electrical work at a USPS post office in Norton, Virginia, even though McLeod did not have the appropriate license to perform electrical work. He nonetheless billed $9,570 for performance of the work order, including labor he did not perform and materials he did not provide. McLeod impermissibly subcontracted the work to another company and falsely certified in an invoice and associated documentation submitted to USPS that A&S performed the work.In another instance, McLeod, acting as A&S Contracting, agreed to patch potholes in a USPS post office parking lot in Wise, Virginia. The proposal submitted by McLeod falsely stated that A&S would perform the work, and did not reveal that he intended to retain a subcontractor for the job. The proposal also included charges for material and equipment not provided by McLeod, nor by McLeod acting as A&S. McLeod subcontracted the work to another company that performed all the pothole patching work at the USPS post office parking lot. The subcontractor charged McLeod $12,500 for its work and, in turn, McLeod, acting as A&S, charged USPS $20,385 for the work order.The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia and the USPS Office of Inspector General.The matter was investigated by Assistant U.S. Attorney Gina Kim and USPS Office of Inspector General Special Agent Darrin Dixon.A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.The civil claims settled are allegations only; there has been no determination of civil liability.

ALEXANDRIA, Va. – Two Iraqi refugees living in Northern Virginia were arrested this morning and charged along with another individual with immigration fraud.

The defendants arrested this morning are Yousif Al Mashhandani (“Yousif”), 35, of Vienna, and Adil Hasan, 38, of Burke, who are full biological brothers. The third individual charged is Enas Ibrahim, 32, also of Burke, who is the wife of Hasan. Each are charged with attempting to obtain naturalization contrary to law. The defendants will have their initial appearance today in front of Magistrate Judge Ivan D. Davis at 2 p.m. at the federal courthouse in Alexandria.

According to the affidavit in support of the criminal complaint, on Nov. 1, 2004, a United States citizen, identified as R.H., was kidnapped in Iraq and held with other hostages for months in horrible conditions in an underground bunker. After a raid in 2005 freed the hostages, authorities detained Majid Al Mashhadani (“Majid”), who is a full biological brother of Yousif and Adil Hasan, and he admitted his complicity in the kidnapping of R.H.

According to the affidavit in support of the criminal complaint, Yousif was admitted into the United States as a refugee in 2008. In May 2013, Yousif resided in Vienna and applied for naturalization as a United States citizen. In connection with Yousif’s applications for citizenship, his fingerprints were taken. According to an FBI fingerprint specialist, analysis conducted in November 2013 determined that Yousif’s fingerprints match those found on a document at the underground bunker where forces rescued R.H. and others in Iraq in 2005.

According to the affidavit in support of the criminal complaint, Yousif, Hasan, and Ibrahim are lawful permanent residents and have applied to naturalize and become United States citizens. On various applications and forms throughout their respective immigration processes, each has provided and extensive list of family members and information of their respective family trees; however, none ever listed any reference to Majid.

According to the affidavit in support of the criminal complaint, on March 4, 2016, FBI agents interviewed Yousif, Hasan and Ibrahim. When FBI agents asked Yousif why he failed to include reference to Majid on the family tree form, Yousif said he omitted reference to Majid because, when he was a refugee, he was told by others applying for refugee status that he would not be allowed into the United States if any immediate family members had a criminal background. Hasan admitted to FBI agents that Majid was his brother, and Hasan and Ibrahim each admitted they discussed not including Majid’s name on their applications for refugee status because their connection to Majid might delay their ability to gain such status.

According to the affidavit in support of the criminal complaint, to justify his application for refugee status, Yousif reported that in 2006, while working as an anti-corruption investigator for the Iraqi Commission on Public Integrity in Iraq, he started receiving threats from a Shiite militia known as the "Al Mahdi Militia," in order to coerce Yousif to drop a particular corruption investigation. Yousif said that in May 2006 Adil was kidnapped by the Al Mahdi Militia, and only released after Yousif arranged to drop the investigation in question and helped pay a large ransom. Yousif said that after Adil was released, he reopened the corruption investigation, only to flee to Jordon in October 2006 after his parents’ house was burned down.

According to the affidavit in support of the criminal complaint, to justify his application for refugee status, Hasan provided sworn testimony that, in 2006, he had been kidnapped and tortured by members of the Al Mahdi Army and held for nearly a month. Hasan said he was released upon the payment of a ransom of $20,000. In an interview by FBI agents in April 2016, Hasan said he was threatened in Iraq on two occasions, but made no mention of being kidnapped, held hostage, and tortured for nearly a month. In a subsequent interview in October 2016, FBI agents confronted Hasan about the discrepancy in his stories and Hasan admitted to making false statements and creating his persecution story.

Each defendant faces a maximum penalty of 10 years in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Dana J. Boente, Acting Deputy Attorney General and U.S. Attorney for the Eastern District of Virginia; Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office; Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement. The FBI’s Joint Terrorism Task Force, which includes ICE/HSI and U.S. Citizenship and Immigration Services, investigated the case. Assistant U.S. Attorneys Gordon D. Kromberg and Colleen E. Garcia are prosecuting the case.

 

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-mj-143.

A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

NEWPORT NEWS, Va. – The owner of a sham welding school in Newport News was sentenced today to 40 months in prison for his role in a conspiracy to defraud the Department of Veterans Affairs (VA) of $1.4 million and filing false tax returns.

According to court documents, Dr. Wilbert J. McNair, Jr., 54, of Chesapeake, was an owner of the Hampton Roads Skills Center (HRSC), located in Newport News. The HRSC purported to be a welding training facility that was approved by the VA to provide education and training to military veterans, including veterans who received tuition assistance under the Post-9/11 GI Bill and other VA educational assistance programs. The HRSC also contracted with two other federally-funded agencies to provide welding training to students receiving tuition assistance from those entities. McNair represented that HRSC provided full-time schooling to nearly 100 veteran students beginning in March 2013. Most veterans enrolled in HRSC received few, if any, hours of instruction, and the majority of students did not take a final exam or attend lecture or practical, hands-on coursework.  Indeed, most students were not even physically present at HRSC during the hours their courses were purportedly held, and some students never once entered the building during any point during the period of their enrollment. Nonetheless, McNair reported to the VA that the veteran students were enrolled in and attending the school, such that HRSC received tuition payments for each veteran from the VA. Based on McNair’s provision of false information to the VA, HRSC received over $1.4 million in VA tuition payments between March 2013 and June 2017.

Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Michael J. Missal, Inspector General, U.S. Department of Veterans Affairs, Office of Inspector General; Kim Lampkins, U.S. Department of Veterans Affairs, Office of Inspector General, Special Agent in Charge, Mid Atlantic Field Office; and Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Mark S. Davis.  Assistant U.S. Attorneys V. Kathleen Dougherty and Kaitlin C. Gratton are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-107.

ALEXANDRIA, Va. – A Maryland man was sentenced today to 10 years in prison for his role in a conspiracy to engage in dogfighting, as well as a separate role as a ringleader in a credit card fraud and identity theft scheme.

According to court documents, Rodriguez Rodney Lomax Norman, 31, was fully immersed in the world of dog fighting in the D.C.-Maryland-Virginia area. Norman and his associates bred, trained, and exhibited dogs in organized fights where animals suffered severe bites, gashes, and other injuries, and were expected to fight nonetheless. When law enforcement searched Norman’s Maryland and D.C. properties in August 2017, they found over a dozen dogs, an animal treadmill, heavy dog chains, shock collars, lunge whips, performance-enhancing animal pharmaceuticals, and medical supplies like syringes and skin staplers.

“Dog fighting is a crime marked by brutality and cruelty,” said Acting United States Attorney Tracy Doherty-McCormick. “Those who choose to brutalize animals for entertainment, sport, and profit must know that their criminal conduct will be severely punished. This complex investigation was a success due to the expertise and skill of our investigative partners. I want to thank them for their outstanding work on this important case.”

In court documents, Norman admitted that also found on his Maryland property was a fighting ring that bore traces of animal blood, and a noose-like contraption that was apparently put on a dog’s neck and used to hang him to build muscle. Norman continued to fight his dogs for years after law enforcement officials first contacted him about dog fighting, even though he knew that doing so was illegal.

“Dog fighting is a barbaric spectacle that has no place in any civilized society,” said Andrew W. Vale, Assistant Director in Charge of the FBI's Washington Field Office. “Today’s sentencing highlights our continuing efforts to investigate and prosecute organized crime, and those who seek to profit from the abuse and suffering of helpless animals.”

In separate criminal activity, Norman helped organize and lead a conspiracy where for over two and a half years, members purchased thousands of stolen credit and debit card numbers, encoded those numbers onto fraudulent credit cards, and used those cards to buy merchandise including gift cards and cartons of cigarettes.  During the conspiracy, the group made hundreds of thousands of dollars from selling cigarette cartons to buyers from New York City.

Norman was sentenced today to 108 months in prison for his role as a ringleader in the credit card fraud and identity theft scheme, and 12 months in prison for dogfighting. He was also ordered to forfeit $143,605.

Norman is one of 12 defendants who were arrested in the credit card fraud and identity theft case in August 2017 (and the only defendant charged with dogfighting). All pleaded guilty and have now been sentenced.



Name, Age





Hometown





Convictions





Sentence





Rodriguez Norman, 31





Temple Hills, Maryland





Conspiracy to Engage in an Animal Fighting Venture;

Conspiracy to Commit Bank and Wire Fraud, Conspiracy to Traffic in Contraband Cigarettes, Aggravated Identity Theft





120 months





Travon Williams, 33





Portsmouth





Conspiracy to Commit Bank and Wire Fraud, Conspiracy to Traffic in Contraband Cigarettes, Aggravated Identity Theft





108 months





Jamar Johnson, 31





Portsmouth





Conspiracy to Commit Bank and Wire Fraud, Aggravated Identity Theft





84 months





Nathaneal Williams, 25





Manassas





Conspiracy to Commit Bank and Wire Fraud, Conspiracy to Traffic in Contraband Cigarettes, Aggravated Identity Theft





84 months





Marvin Mitchell, 33





Virginia Beach





Conspiracy to Commit Bank and Wire Fraud, Aggravated Identity Theft





Awaiting sentencing





Ashley Carrillo Howell, 34





Bowie, Maryland





Conspiracy to Commit Bank and Wire Fraud, Aggravated Identity Theft





70 months





Gentle Tyson, III, 33





Virginia Beach





Conspiracy to Commit Bank and Wire Fraud, Aggravated Identity Theft





25 months





Ebony Coe, 29





Virginia Beach





Conspiracy to Commit Bank and Wire Fraud, Aggravated Identity Theft





25 months





Ronnie Beale, 33





Fort Washington, Maryland





Conspiracy to Commit Bank and Wire Fraud





14 months





Ryan McNeil, 32





District Heights, Maryland





Conspiracy to Commit Bank and Wire Fraud





14 months





Eugene Cuffee, 34





Norfolk





Conspiracy to Commit Bank and Wire Fraud





12 months





Denae Horton, 25





Chesapeake





Conspiracy to Commit Bank and Wire Fraud





2 months



 

Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Maya D. Song, Whitney Russell, and Katherine Rumbaugh prosecuted the case, with significant assistance from Assistant U.S. Attorney Gordon D. Kromberg and former Special Assistant U.S. Attorney Evan N. Turgeon.

The Manassas Park Police, Fairfax County Police, and Arlington County Police provided significant assistance during this investigation.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1:17-cr-214, 226, 227, 240, 252, 251, 254, 312.

NORFOLK, Va. – A man who resided in California and Virginia was sentenced today to 40 years in prison for sex trafficking by force, fraud, and coercion. 

According to court documents, Naeem Lateef Odums, 40, of Clovis, California and Portsmouth, Virginia, forced “Jane Doe 1” to engage in commercial sex acts in California, Virginia, and five other states for nearly nine years. Odums used a combination of extreme physical violence, threats of violence, and threats of kidnapping Jane Doe 1’s children, and other forms of control to cause her to perform commercial sex acts. Court documents note that Odums kicked, punched, and hit Jane Doe 1 with chairs, ashtrays, and other objects – often while Jane Doe 1’s three small children watched, crying. Odums also choked Jane Doe 1, threatened her with a gun, and threatened to kill her and her mother. 

Odums arranged commercial sex appointments for Jane Doe 1 using a website known to promote prostitution, and collected all the money Jane Doe 1 earned both from her appointments, as well as from her legitimate jobs. In January 2017, Jane Doe 1 was hospitalized after Odums broke three of her ribs and punctured her lung, then forced her to go on a commercial sex “date” and drove her to the customer’s location. The “date” declined to engage in commercial sex with Jane Doe 1 given her injuries, but paid her for the appointment nonetheless.

Court documents also identify two additional women, Jane Does 2 and 3, in the Tidewater area that Odums attempted to trick into performing commercial sex by posting sexually explicit photographs of them on websites known to promote prostitution. The women had sent Odums these racy photographs because both believed they were in a romantic relationship with him. Neither Jane Doe 2 nor 3 knew, or consented to, Odums posting them in this way.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; and Tonya D. Chapman, Chief of Portsmouth Police Department; made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney V. Kathleen Dougherty prosecuted the case.

This case was investigated by the Hampton Roads Human Trafficking Task Force.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-46.

NORFOLK, Va. – A Hampton man was sentenced today to over four years in prison for defrauding Medicaid out of approximately $109,000.

According to court documents, Maurice Moody, 41, and Dena Major, 49, conspired to defraud the Virginia Medicaid program out of approximately $109,000 by submitting fraudulent claims to Medicaid for their severely disabled son’s care, which he was eligible to receive. Major was the child’s primary caregiver and under Medicaid rules, she was also in charge of hiring a personal care aide to help in his care. Despite knowing that Medicaid does not permit the hiring of a parent to be a personal care aide, Major hired Moody to be their child’s personal care aide and falsely stated that Moody was the child’s uncle.

Moody also submitted claims for personal care hours provided to his son when Moody was incarcerated, and when he was out of the area traveling. In September 2015, the child was removed from Major’s custody on allegations of abuse and neglect. Nonetheless, Moody and Major continued to bill Medicaid for his care from September 2015 to April 2016. When challenged, the pair attempted to use another minor and pass him off as their child with the Medicaid service facilitator.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Joseph L. Kosky prosecuted the case. The Virginia Medicaid Fraud Control Unit assisted in the investigation.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-033.

ALEXANDRIA, Va. – The U.S. Attorney's Office for the Eastern District of Virginia announced today the seizure of seven websites as part of ongoing efforts by Homeland Security Investigations (HSI) to combat online fraud schemes that seek to exploit the increased interest in vaccines, treatments, and employment opportunities associated with the COVID-19 pandemic.

According to court records, the United States obtained court authorization to seize four domains that purported to be the legitimate websites of Pfizer, Inc. (“Pfizer”)—specifically, “pfizermx.com,” “pfizer-vaccines.com,” “pfizerstockrate.com,” and “pfizerksa.com.” In addition, the government seized three websites claiming to be associated with the United Nations International Children’s Emergency Fund (UNICEF)—specifically, “unicefcovid19relief.com,” “unicefeverychild.com,” and “unicefinternship.com.” Although each of the seized domains purported to be the legitimate websites of either Pfizer or UNICEF, the sites instead appeared to have been designed to obtain the personal information of website visitors for nefarious purposes, such as fraud or phishing attacks.

“The online fraud and phishing schemes that were embedded within these seven sham websites sought to capitalize on the misfortunes of others during the global pandemic,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We urge the public to safeguard your sensitive personal information at all times, including from these fraudulent COVID-19 schemes. EDVA and our law enforcement partners will continue to aggressively seek justice for vulnerable community members who are preyed upon by these scammers.”

“The COVID-19 pandemic has created significant opportunities for fraudsters to take advantage of individuals seeking information, cures, or vaccines to protect themselves and others. The websites seized in these cases are alleged to be simply masquerading as legitimate COVID-related sites to steal personal information for potentially nefarious purposes,” said Special Agent in Charge Raymond Villanueva for HSI’s Washington, D.C. field office. “We urge the public to use extreme caution sharing any personal information online, especially in regards to COVID-19 vaccines, treatments, personal protective equipment or with unsolicited employment opportunities.”

According to the affidavits filed in support of these seizures, HSI identified and opened investigations into the seized domains between December 2020 and February 2021 after learning of their use in fraud schemes through notifications from the affected entities, and through an ongoing operation by HSI’s Cyber Crimes Center (C3) targeting malicious websites.

The domains “pfizermx.com,” “pfizerksa.com,” “pfizer-vaccines.com,” and “pfizerstockrate.com,” were used in websites that fraudulently displayed the registered trademarks of Pfizer and BioNTech SE (“BioNTech”) to facilitate apparent phishing schemes geared towards exploiting the increased interest in Pfizer and BioNTech-related products, including the Pfizer/BioNTech COVID-19 vaccine. The websites associated with pfizermx.com and pfizerksa.com presented themselves as Spanish and Arabic-language websites for Pfizer, respectively, and purported to facilitate orders of Pfizer products. Likewise, the website associated with “pfizer-vaccines.com” falsely presented itself as an online platform for obtaining information on the COVID-19 virus and Pfizer/BioNTech vaccine, while the website associated with “pfizersotckrate.com,” appeared to present itself as an online platform for advertising trading and stock options for Pfizer.

In reality, none of these websites appear to serve a legitimate purpose. Each instead used names, logos, and graphics of Pfizer and, in some instances BioNTech, as part of an apparent effort to trick visitors into submitting sensitive information. For instance, the websites using the domains pfizermx.com and pfizer-vaccines.com attempted to deceive individuals interested in obtaining information on the COVID-19 vaccine into contacting fraudulent phone numbers and email addresses that Pfizer did not control. The websites associated with the domains pfizerksa.com and pfizerstockrate.com similarly sought to trick visitors into submitting personal information to the perpetrators through the website, including bank account information through pfizerksa.com.

The websites associated with “unicefcovid19relief.com,” “unicefeverychild.com,” and “unicefintern ship.com” likewise leveraged the trademarks of UNICEF to facilitate apparent phishing schemes geared towards exploiting the increased interest in helping individuals who need assistance during the COVID-19 pandemic. Notably, the websites associated with each of these seized domains falsely claimed to offer employment opportunities associated with distributing COVID-19 relief funds, and the sites encouraged interested employees to submit personal information. According to the affidavit supporting the seizure warrant, each of these seized domains appeared to have been designed to collect the personal identifying information of website visitors for use in criminal schemes, such as fraud or phishing attacks, and to enlist unwitting victims in money laundering schemes.

The seizure of these seven domains by the government will prevent third parties from acquiring the names and using them to commit additional crimes. Individuals visiting those sites now will see a message indicating that the site has been seized by the federal government, and visitors will be redirected to another site for additional information.

Federal law enforcement agencies are united in their efforts to fight against COVID-19 fraud. HSI has identified tips to recognize and report COVID-19 fraud, and additional information and resources are available from the Department of Justice and the U.S. Attorney’s Office (EDVA). If you believe you are a victim of a fraud or attempted fraud involving COVID-19, you may also call the National Center for Disaster Fraud Hotline at 1-866-720-5721.

The seizure of the domain names was announced by Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.

Acting U.S. Attorney Parekh commended the HSI Cyber Crimes Center, HSI Intellectual Property Rights Center (IPRC), and the HSI Washington Field Office for their work in these investigations.

The government is represented by Special Assistant U.S. Attorney Aarash Haghighat in these matters.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.

ALEXANDRIA, Va. – A Sterling woman was sentenced today to 7 years in prison for health care fraud and tax charges for operating a fraudulent sleep study clinic in Northern Virginia.

According to court documents and evidence presented at trial, Young Yi, 44, a citizen of South Korea, defrauded Medicare, Tricare, private insurance, and the IRS of more than $10 million during the conspiracy. Yi formed the primary entities she used to commit the crimes, 1st Class Sleep Diagnostic Center and 1st Class Medical, in 2005. Using those and other entities, Yi directed her employees to solicit patients who had been referred to her clinic for legitimate sleep studies for supplemental but medically unnecessary studies. To conceal the scheme, Yi instructed employees not to send the results of the fraudulent studies to the patients’ doctors, lied to patients by telling them they did not have to pay copays or coinsurance, and cross-billed using her different entities both to conceal the repetition from the insurance companies and to get out-of-network payments for in-network services. Yi also used the original referring doctors’ names and identifying information on health insurance claims without their permission, the evidence showed.

In addition to the medically unnecessary sleep studies performed on patients who had been referred by doctors to 1st Class Sleep Diagnostic Center, Yi also encouraged her own employees to have sleep studies that were then billed to insurance, the evidence showed.  Those included claims charged in the indictment for three employees who did not have sleep apnea but nonetheless received at least 27 sleep studies between them in less than three years. The employees received payments for undergoing the sleep studies, and in some instances, the employees were organized into teams for “races” to see who could refer the greatest number of friends and family members for the fraudulent studies.

According to the evidence presented at trial, Yi used her business bank accounts to purchase personal luxury goods and real estate that she nonetheless booked as business expenses.  Those falsely booked purchases included a $25,000 Rolex watch, $10,500 in mink coats, several luxury vehicles, and a $1.1 million home in Sterling. Yi also used the proceeds of her crimes to purchase five condominiums worth more than $2.8 million in McLean, Chicago, and Honolulu, Hawaii. After law enforcement searched the 1st Class premises in February 2014, Yi formed a purported charity, the “New Covenant Foundation,” and transferred millions of dollars in office properties into the foundation to protect them from recovery from law enforcement.  United States District Judge Liam O’Grady ordered that the properties be turned over to the United States as part of Yi’s sentence, and her advisory Guidelines range was enhanced for obstructing justice related to that conduct. 

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, Kelly R. Jackson, Special Agent in Charge of IRS-Criminal Investigation, Washington D.C. Field Office, Thomas W. South, Deputy Assistant Inspector General for Investigation for the Office of Personnel Management, Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s Mid-Atlantic Field Office, and Maureen Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement after sentencing by Judge O’Grady. Assistant U.S. Attorneys Katherine L. Wong and Ryan S. Faulconer, and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section prosecuted the case.

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-224.

NORFOLK, Va. – A member of the Nine Trey Gangsters was sentenced today to life in prison for his role in four murders and several additional non-fatal shootings.

According to court documents, Anthony Foye, 26, of Suffolk, is a member of the Nine Trey Gangsters, a street gang with members in states across the East Coast that is affiliated with the United Blood Nation. Foye and another gang member convicted of multiple murders, Nathaniel Mitchell, were trying to gain a reputation within the gang as “shooters.” In furtherance of his membership in the gang, Foye murdered Al-Tariq Tynes, Vandalet Mercer, Linda Lassiter, and Wayne Davis, shot into a residence in Portsmouth, and shot several other individuals across South Hampton Roads. Almost none of the shooting victims had any affiliation with the Nine Trey Gangsters or any other street gang, and three of Foye’s murder victims were the parents or grandparents of young children.

Foye pleaded guilty on Sept. 8, 2017, to four counts of murder in aid of racketeering activity, and faced a mandatory life sentence on each count.

Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Mark R. Herring, Attorney General of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Larry D. Boone, Chief of Norfolk Police; Tonya D. Chapman, Chief of Portsmouth Police; James A. Cervera, Chief of Virginia Beach Police; Col. K.L. Wright, Chief of Chesapeake Police; and Thomas E. Bennett, Chief of Suffolk Police, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorneys Joseph E. DePadilla, Andrew C. Bosse, Special Assistant U.S. Attorney John F. Butler, and Trial Attorney Teresa A. Wallbaum of the Criminal Division’s Organized Crime and Gang Section, are prosecuting the case.

The case was investigated as part of the Organized Crime Drug Enforcement Task Force’s (OCDETF) Operation Billy Club. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-130.

ALEXANDRIA, Va. – A North Carolina man was sentenced today to over six years in prison for his role in orchestrating an investment fraud scheme that caused over $1.4 million in losses to multiple victims.

According to court records and evidence presented at trial, Anthony Eric Mitchell, 52, of Charlotte, was one of the two managing principals of a company called Aura Exchange LLC (AURA).  Mitchell and his co-conspirator, Armando Almirall, through AURA, promised their clients that they could help obtain funding for a host of business purposes, such as real estate transactions and television projects. Instead, Mitchell and Almirall spent large portions of their clients’ funds on personal expenses, including trips to casinos, concert tickets, stays at beach resorts, cash withdrawals, and wire transfers overseas on speculative investments.

In order to induce the victims to provide AURA with money, Mitchell and Almirall made numerous   fraudulent misrepresentations. The two promised clients that they were guaranteed to receive their initial equity deposits back when, in fact, none of the victims ever received any money from AURA. Mitchell and Almirall claimed that AURA had offices in Zurich, London, and New York when no such offices existed. Mitchell and Almirall also falsely claimed that AURA controlled valuable precious metals, such as nickel wire, that could be “monetized” in order to generate huge profits.

Mitchell and Almirall also maintained a website for AURA that contained a number of misrepresentations, including claims that AURA was an industry leader in a number of fields, that AURA was an international business with access to hundreds of financiers, and that AURA could turn around funding to its clients in as little as 24 hours. AURA never made any money for any of its clients, and in fact, victims of the fraud suffered losses of at least $1.47 million.

In October 2019, Mitchell was convicted on all counts after a five-day jury trial. Mitchell was also ordered to pay full restitution to the victims of the crime.

Mitchell’s business partner and co-conspirator, Armando Almirall, previously pleaded guilty to conspiracy to commit wire fraud and was sentenced to over five years in prison in February 2020.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Jamar K. Walker and Special Assistant U.S. Attorney Russell L. Carlberg prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-101.

NORFOLK, Va. – A New Jersey man was sentenced today to 34 months in prison for conspiring to purchase firearms in Virginia and traffic them to New Jersey for resale on the streets.

“Clifton Walston admitted to trafficking multiple firearms from Virginia to New Jersey,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We will continue to use federal firearms laws to prosecute straw purchasers and hold them accountable for their role in trafficking illegally purchased firearms. Every straw purchased firearm is a gun that can wind up in the hands of a prohibited person. I want to commend the ATF for their commitment to investigating these important cases.”

According to court documents, Clifton K. Walston, aka “Moosky,” 32, of Jersey City, arranged for Virginia residents to obtain and traffic firearms from Virginia to New Jersey and sell the firearms in New Jersey to New Jersey residents for a profit. None of the conspirators was licensed to conduct interstate firearm transactions.

“ATF will continue to work diligently to uncover and expose firearms trafficking schemes such as we saw in this case as part of its mission to combat violent crime,” said Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division. “Gun traffickers are not simply committing paperwork violations.  These criminals put guns in the hands of serious criminals who pose a significant threat to the safety of our communities.  I’m incredibly proud of the outstanding investigative work put in by the agents and prosecutors to bring to justice these two criminals.”

In early October 2017, a Virginia associate contacted Walston and asked how to make some easy money. Walston knew that the associate was a convicted felon and was prohibited from possessing firearms, but still said that if the associate were to obtain firearms in Virginia, he would set the associate up with prospective buyers in New Jersey, where it is much more difficult to obtain firearms. The two would then profit from the resale.

Over the next several months, the two men conspired together to use a straw purchaser to traffick multiple firearms from Virginia to New Jersey, including at least one firearm that was recovered by law enforcement during a traffic stop.

Within weeks of that arrest, Walston ordered three more handguns and an extended magazine from the Virginia associate. However, ATF agents arrested the Virginia associate before he could engage in additional firearms trafficking.

This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

Senior U.S. District Judge Robert G. Doumar announced the sentence. Assistant U.S. Attorney William B. Jackson prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-183.

ALEXANDRIA, Va. – A former medical assistant from Woodbridge was sentenced today to four years in prison for her role in leading a conspiracy to distribute oxycodone, which involved supplying thousands of dangerous opioids for distribution.

According to court documents, Tatiana Bailey, 32, was employed as a medical assistant with INOVA Bariatric Surgery in Woodbridge. From at least February 2015 to October 2015, Bailey abused the trust of the doctors who employed her by stealing blank oxycodone prescriptions, to which she had access by virtue of her position as an employee, and forged a number of those prescriptions using an INOVA physician’s name and registration number. She then sold blank and forged prescriptions to others, none of whom were patients of the medical practice, who would fill the prescriptions and use or distribute the oxycodone. During the course of the conspiracy, Bailey facilitated the fraudulent filling of over 90 prescriptions, totaling approximately 6,520 oxycodone pills.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Raj Parekh prosecuted the matter and handled the sentencing hearing. Former Special Assistant U.S. Attorneys Allison Garnett and Troy Edwards provided assistance investigating the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-222.

ALEXANDRIA, Va. – A federal jury convicted a Sterling woman today on health care fraud and tax charges for operating a fraudulent sleep study clinic in Northern Virginia.

“Yi lied to, cheated, and stole from taxpayers and insurance companies,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “When someone commits healthcare and tax fraud it drives up the cost of care for everyone and creates an un-level playing field. Yi misled patients and their doctors, falsified records to cover it up, and deducted millions in taxes she used to buy expensive properties and luxury goods. I want to thank our trial team and investigative partners for their terrific work on this complex and important case.”

According to court records and evidence presented at trial, Young Yi, 44, a citizen of South Korea, obtained more than $83 million from Medicare and private insurance during the health care fraud conspiracy and lowered her taxes by nearly $900,000 in one tax year alone. Yi formed the primary entities she used to commit the crimes, 1st Class Sleep Diagnostic Center and 1st Class Medical, in 2005. Using those and other entities, Yi directed her employees to solicit patients who had been referred to her clinic for legitimate sleep studies for supplemental but medically unnecessary studies. To conceal the scheme, Yi instructed employees not to send the results of the fraudulent studies to the patients’ doctors, lied to patients by telling them they did not have to pay copays or coinsurance, and cross-billed using her different entities both to conceal the repetition from the insurance companies and to get out-of-network payments for in-network services. The cross-billing between the two lead entities alone was approximately $4 million. Yi also used the original referring doctors’ names and identifying information on health insurance claims without their permission, the evidence showed.

“Young Yi fueled her lavish lifestyle by misleading patients, withholding information from physicians, and using doctors’ identifying information without their permission in order to steal millions of dollars from Medicare and private insurers,” said Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division. “Today’s verdict highlights the important work of the Department and our law enforcement partners as we seek to hold people accountable for defrauding our health care system.”

According to the evidence presented at trial, Yi used her business bank accounts to purchase personal luxury goods and real estate that she nonetheless booked as business expenses. Those falsely booked purchases included a $25,000 Rolex watch, $10,500 in mink coats, several luxury vehicles and a $1.1 million home in Sterling, Virginia.  Yi also used the proceeds of her crimes to purchase five condominiums worth more than $2.8 million in McLean, Virginia; Chicago, Illinois; and Honolulu, Hawaii.  Yi used money that she falsely booked as payments for medical supplies and health insurance reimbursements to purchase land in Great Falls, Virginia. After a February 2014 search warrant was executed at her businesses, Yi and her husband formed a purported charity, and transferred assets into that foundation to protect them from law enforcement.

In addition to the medically unnecessary sleep studies performed on patients who had been referred by doctors to 1st Class Sleep Diagnostic Center, Yi also encouraged her own employees to have sleep studies that were then billed to insurance, the evidence showed.  Those included claims charged in the indictment for three employees who did not have sleep apnea but nonetheless received at least 27 sleep studies between them in less than three years.  The employees received payments for undergoing the sleep studies, and in some instances, the employees were organized into teams for “races” to see who could refer the greatest number of friends and family members for the fraudulent studies.

Yi’s co-defendant, Dannie Ahn, pleaded guilty in December 2017 and is scheduled to be sentenced on September 14.

Yi was convicted of one count of conspiracy to commit health care and wire fraud, seven counts of health care fraud, one count of conspiracy to defraud the United States, and one count of filing a false tax return.  She is scheduled to be sentenced on November 2.

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, Kelly R. Jackson, Acting Special Agent in Charge of IRS-Criminal Investigation, Washington D.C. Field Office, Bret D. Mastronardi, Special Agent in Charge for the Office of Personnel Management Office, Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s Mid-Atlantic Field Office, and Maureen Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement. Assistant U.S. Attorneys Katherine L. Wong and Ryan S. Faulconer, and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-224.