The Department of Justice today announced that the following defendants were arrested and charged by Complaint on charges of conspiracy and violating the International Emergency Economic Powers Act (IEEPA) based on their attempt to transact in sanctioned Iranian oil:

Nicholas Hovan, 33, of New York, NY;

Zhenyu Wang, a/k/a “Bill Wang,” 39, of Dallas, TX;

Robert Thwaites, 30, of Dallas, TX;

Nicholas James Fuchs, 26, of Dallas, TX; and

Daniel Ray Lane, 38, of McKinney, TX.

The defendants are each charged with one count of conspiracy and one count of violating IEEPA, based on allegations that from July 2019 to February 2020 they conspired in Philadelphia and elsewhere to arrange for the purchase of oil from the Islamic Republic of Iran, in violation of United States economic sanctions imposed on Iran, for sale to a refinery in China. 

The Complaint alleges that defendants Nicholas Hovan, James Fuchs, Robert Thwaites, and Daniel Ray Lane arranged to purchase the oil and sell it to a refinery in China represented by defendant Zhenyu Wang, a/k/a “Bill Wang.”

According to the Complaint, defendant Lane offered to further the conspiracy by laundering money through his company, STACK Royalties.  The charges further allege that the defendants agreed to use a Polish shell corporation as a straw seller of the illicit oil, and that they planned two shipments of oil per month going forward, all for great profit.  In addition, the charges allege that defendants Fuchs and Thwaites agreed to apply for foreign passports in order to set up offshore accounts that would not be reported to U.S. authorities.  

“With the goal of illegally enriching themselves, the defendants conspired for over eight months to devise a scheme to violate U.S. sanctions imposed on Iran, particularly the ban on foreign oil sales,” said Assistant Attorney General for National Security John C. Demers.  “The sale of oil is the lifeblood of the Iranian economy.  At the same time the United States was increasing its sanctions in order to pressure Iran to stop its malign activities, these defendants put greed ahead of country.  I commend the efforts of the agents and prosecutors who investigated and uncovered this brazen evasion of U.S. law.”

“The defendants in this case allegedly committed serious federal crimes that flew in direct contradiction to the United States’ national security interests,” said U.S. Attorney McSwain for the Eastern District of Pennsylvannia.  “By devising a scheme to purchase oil from Iran, conceal its origins via a refinery in China and make tremendous profits, the defendants were also directly financially benefitting the nation of Iran in its quest to become a nuclear power, thus jeopardizing the safety and security of the United States and our allies.  These five defendants will be prosecuted to the fullest extent of the law in order to send the message that this type of subversion of U.S. policy and law will not be tolerated.”

If convicted, the defendants each face a maximum possible sentence of 25 years’ incarceration, as well as a maximum possible fine of $1.25 million.

The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Michael Rinaldi and First Assistant United States Attorney Jennifer Arbittier Williams, in partnership with Trial Attorney David Recker of the Department of Justice’s National Security Division, Counterintelligence and Export Control Section.

An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

Assistant Attorney General for National Security John C. Demers and U.S. Attorney for the Eastern District of Pennsylvania William M. McSwain announced that the following defendants were indicted on charges of conspiracy, violating the International Emergency Economic Powers Act (IEEPA), and money laundering conspiracy based on their attempt to transact in sanctioned Iranian petroleum:

Nicholas Hovan, 34, of New York, NY;

Zhenyu Wang, aka “Bill Wang,” 39, of Dallas, TX;

Robert Thwaites, 30, of Dallas, TX; and

Daniel Ray Lane, 39, of McKinney, TX.

“The defendants in this case allegedly conspired to sell Iranian petroleum to a Chinese refinery in order to enrich themselves at the expense of the US Iran sanctions regime,” said Assistant Attorney General Demers.  “The defendants devised a scheme to use front companies, bribes, and false contractual documents in order to conceal their brazenly illicit activity.  We will continue to leverage all of our tools to detect and prevent individuals such as these from engaging in actions that would have harmed the national security of this nation.”

“It doesn’t get much lower than attempting to get rich by flouting the United States’ national security interests,” said U.S. Attorney McSwain. “The defendants here allegedly jeopardized the safety and security of the United States by scheming to get in bed with Iran and China.  This type of conspiracy deserves the full condemnation of my office and it has it.”

The indictment alleges that from May 2019 to February 2020, the defendants conspired in Philadelphia and elsewhere to arrange for the purchase of petroleum from the Islamic Republic of Iran, in violation of United States economic sanctions imposed on Iran, for sale to a refinery in the People’s Republic of China.  They also allegedly conspired to launder the proceeds of the sale through shell entities and offshore financial accounts to disguise the nature of the transaction.  The defendants are charged with conspiring to purchase sanctioned Iranian petroleum, to sell the petroleum to a Chinese refinery, to conceal the origin of the petroleum (including by bribing a Chinese official), and to obtain Antigua passports to open Swiss bank accounts through which the proceeds would be laundered.

In February 2020, the defendants were arrested pursuant to a criminal complaint.  As previously reported, the defendants planned two shipments of oil per month going forward, all for an expected profit of roughly $28 million-per-month.

If convicted, the defendants face a maximum possible sentence of 45 years’ imprisonment, a $1.75 million fine, a three-year term of supervised release, and a $300 special assessment.

The case was investigated by the FBI and is being prosecuted by First Assistant U.S. Attorney Jennifer Arbittier Williams and Assistant U.S. Attorney Michael J. Rinaldi and in partnership with Trial Attorney David Recker of the Department of Justice’s National Security Division, Counterintelligence and Export Control Section.

An indictment, information, or criminal complaint is an accusation.  A defendant is presumed innocent unless and until proven guilty

Federal, state, and local law enforcement partners from across the United States executed a nationwide, coordinated takedown today of leaders and associates of a national network of thieves, dealers, and processors for their roles in conspiracies involving stolen catalytic converters sold to a metal refinery for tens of millions of dollars.

Arrests, searches, and seizures took place in California, Oklahoma, Wyoming, Minnesota, New Jersey, New York, Nevada, North Carolina, and Virginia. In total, 21 individuals in five states have been arrested and/or charged for their roles in the conspiracy.

The 21 defendants are charged in two separate indictments that were unsealed today in the Eastern District of California and the Northern District of Oklahoma following extensive law enforcement arrest and search operations. In addition to the indictments, over 32 search warrants were executed, and law enforcement seized millions of dollars in assets, including homes, bank accounts, cash, and luxury vehicles.

“Amidst a rise in catalytic converter thefts across the country, the Justice Department has today carried out an operation arresting 21 defendants and executing 32 search warrants in a nation-wide takedown of a multimillion-dollar catalytic converter theft network,” said Attorney General Merrick B. Garland. “We will continue to work alongside our state and local partners to disrupt criminal conspiracies like this one that target the American people.”

“This national network of criminals hurt victims across the country,” said FBI Director Christopher Wray. “They made hundreds of millions of dollars in the process—on the backs of thousands of innocent car owners. Today’s charges showcase how the FBI and its partners act together to stop crimes that hurt all too many Americans.”

“With California’s higher emission standards, our community has become a hot bed for catalytic converter theft,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “Last year approximately 1,600 catalytic converters were reportedly stolen in California each month, and California accounts for 37% of all catalytic converter theft claims nationwide. I am proud to announce that we have indicted nine people who are at the core of catalytic theft in our community and nationwide.”

“In Tulsa alone, more than 2,000 catalytic converters were stolen in the past year,” said U.S. Attorney Clint Johnson for the Northern District of Oklahoma. “Organized criminal activity, including the large-scale theft of catalytic converters, is costly to victims and too often places citizens and law enforcement in danger. The collective work conducted by federal prosecutors and more than 10 different law enforcement agencies led to the filing of charges in the Northern District of Oklahoma against 13 defendants operating an alleged catalytic converter theft operation.”

“The success of this national takedown highlights the importance and necessity of dynamic law enforcement partnerships that we foster at DHS every single day," said Deputy Secretary John K. Tien of the Department of Homeland Security. “This calculated, cooperative whole-of-government approach across multiple states illustrates our commitment to protecting the homeland from those who seek to profit from sophisticated schemes. Homeland Security Investigations [HSI] will continue to focus its efforts on keeping these types of criminal elements off our streets while dismantling the groups behind these and other thefts.”

“Just like the precious metal inside every catalytic converter, there’s a money trail at the core of every criminal scheme,” said Chief Jim Lee of the IRS Criminal Investigation (IRS-CI). “Our IRS-CI special agents and partners are incredibly well-versed at unraveling financial trails, and this case is not unique. There are real victims here – friends, neighbors, and businesses – and our hope is that today’s arrests will deter similar criminal activity.” 

Catalytic Converters

Catalytic converters are a component of an automotive vehicle's exhaust device that reduce the toxic gas and pollutants from a vehicle's internal combustion engine into safe emissions. Catalytic converters use precious metals in their center, or “core”, and are regularly targeted for theft due to the high value of these metals, especially the precious metals palladium, platinum, and rhodium. Some of these precious metals are more valuable per ounce than gold and their value has been increasing in recent years. The black-market price for catalytic converters can be above $1,000 each, depending on the type of vehicle and what state it is from. They can be stolen in less than a minute. Additionally, catalytic converters often lack unique serial numbers, VIN information, or other distinctive identification features, making them difficult to trace to their lawful owner. Thus, the theft of catalytic converters has become increasingly popular because of their value, relative ease to steal, and their lack of identifying markings.

Eastern District of California Case

A federal grand jury in the Eastern District of California returned a 40‑count indictment charging nine defendants with conspiracy to transport stolen catalytic converters, conspiracy to commit money laundering, and other related charges.

According to court documents, brothers Tou Sue Vang, 31, and Andrew Vang, 27, and Monica Moua, 51, all of Sacramento, California, allegedly operated an unlicensed business from their personal residence in Sacramento where they bought stolen catalytic converters from local thieves and shipped them to DG Auto Parts LLC (DG Auto) in New Jersey for processing. The Vang family allegedly sold over $38 million in stolen catalytic converters to DG Auto.

Defendants Navin Khanna, aka Lovin Khanna, 39; Tinu Khanna, aka Gagan Khanna, 35; Daniel Dolan, 44; Chi Mo, aka David Mo, 37; Wright Louis Mosley, 50; and Ishu Lakra, 24, all of New Jersey, operated DG Auto in multiple locations in New Jersey. They knowingly purchased stolen catalytic converters and, through a “de-canning” process, extracted the precious metal powders from the catalytic core. DG Auto sold the precious metal powders it processed from California and elsewhere to a metal refinery for over $545 million.

Northern District of Oklahoma Case

A federal grand jury in the Northern District of Oklahoma returned a 40‑count indictment charging 13 defendants with conspiracy to receive stolen catalytic converters, conspiracy to commit money laundering, and other related charges.

According to court documents, together the defendants bought stolen catalytic converters from thieves on the street, then re-sold and shipped them to DG Auto in New Jersey for processing. Over the course of the conspiracy, defendant Tyler James Curtis received over $13 million in wired funds from DG Auto for the shipment of catalytic converters and received over $500,000 from Capital Cores for catalytic converters. Defendant Adam G. Sharkey received over $45 million in wired funds from DG Auto. And defendant Martynas Macerauskas received over $6 million in payments from DG Auto for catalytic converters. In all these incidents, most of the catalytic converters sold to DG Auto were stolen, and DG Auto knew or should have known that when they paid for them. 

The 13 defendants are Navin Khanna, 39, of Holmdel, New Jersey; Adam Sharkey, 26, of West Islip, New York; Robert Gary Sharkey, 57, of Babylon, New York; Tyler James Curtis, 26, of Wagoner, Oklahoma; Benjamin Robert Mansour, 24, of Bixby, Oklahoma; Reiss Nicole Biby, 24, of Wagoner, Oklahoma; Martynas Macerauskas, 28, of Leila Lake, Texas; Kristina McKay Macerauskas, 21, of Leila Lake, Texas; Parker Star Weavel, 25, of Tahlequah, Oklahoma; Shane Allen Minnick, 26, of Haskell, Oklahoma; Ryan David LaRue 29, of Broken Bow, Oklahoma; Brian Pate Thomas, 25, of Choteau, Oklahoma; and Michael Anthony Rhoden, 26, of Keifer, Oklahoma.

Trial Attorney Danbee C. Kim of the Criminal Division’s Organized Crime and Gang Section, Assistant U.S. Attorney Veronica M.A. Alegría for the Eastern District of California, and Assistant U.S. Attorneys Reagan Reininger and David Nasar for the Northern District of Oklahoma are prosecuting the cases.

The FBI Sacramento, IRS-CI Sacramento, HSI Tulsa, and IRS-CI Tulsa are investigating the cases.

FBI Las Vegas (NV), FBI Richmond (VA), FBI Charlotte (NC), FBI Newark (NJ), FBI Dallas (TX), HSI Dallas (TX), HSI Houston (TX), HSI Amarillo (TX), HSI St. Paul (MN), HSI Long Island (NY), HSI Newark (NJ), IRS-CI Chicago Field Office (IL), IRS-CI Oakland Field Office (CA), IRS-CI Dallas Field Office (TX), IRS-CI Newark Field Office (NJ), Tulsa Police Department (OK), Tulsa County Sheriff’s Office (OK), Oklahoma Highway Patrol (OK), Oklahoma Attorney General’s Office (OK), Wagoner County Sheriff’s Office (OK), Houston Police Department (TX), Amarillo Police Department (TX), Broken Arrow Police Department (OK), Sacramento County Sheriff’s Department (CA), Sacramento Police Department (CA), Davis Police Department (CA), Auburn Police Department (CA), Livermore Police Department (CA), San Bernardino County Sherriff’s Department (CA), Customs and Border Protection (NJ), Port Authority Police Department of New York and New Jersey (NY; NJ), Hudson County Sheriff’s Office (NJ), Monmouth County Prosecutor’s Office (NJ), Monmouth County Sheriff’s Office (NJ), Morris Township Police Department (NJ), Springfield Police Department (NJ), New Jersey State Police (NJ), Union County Prosecutor’s Office (NJ), Port Authority of NY & NJ (NY; NJ), Howell Police Department (NJ), Warren Township Police Department (NJ), Freehold Borough Police Department (NJ), Middletown Police Department (NJ), Marlboro Police Department (NJ), Manalapan Police Department (NJ), Ocean County Sheriff’s Office (NJ), Burlington Police Department (NJ), Willingboro Police Department (NJ), Waterfront Commission of NY Harbor (NY), Nassau County Police Department (NY), Suffolk County Police Department (NY), Las Vegas Metropolitan Police Department (NV), Greensville County Sheriff’s Office (VA), Emporia Police Department (VA), Brunswick County Sheriff’s Office (VA), Halifax County Sheriff’s Office (NC), Saint Paul Police Department (MN), Minnesota Commerce Fraud Bureau (MN), Blaine Police Department (MN), McLeod County Sheriff’s Office (MN), Anoka County Sheriff’s Office (MN), Carver County Sheriff’s Office (MN), Roseville Police Department (MN), Plymouth Police Department (MN), Bloomington Police Department (MN), Eagan Police Department (MN), Woodbury Police Department (MN), Brown County Sheriff’s Office (MN), Brooklyn Park Police Department (MN), Fridley Police Department (MN), Mendota Heights Police Department (MN), Chaska Police Department (MN), and Coon Rapids Police Department (MN) provided assistance.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

HOUSTON – The Greater Houston Partnership and U.S. Commercial Service are hosting a forum Thursday, Oct. 19 from 8 a.m. to 12:30 p.m. to support engagement for the Disruptive Technology Strike Force with business leaders in Houston.

U.S. Attorney Hamdani will participate in a session entitled Global Trade Threats and National & Economic Security featuring leadership from the Department of Justice’s National Security Division (NSD) and Department of Commerce.

Other speakers on varying topics include personnel from FBI and Homeland Security Investigations.

Speakers will discuss best practices to protect U.S. companies from hidden threats that can compromise sensitive information and leave them vulnerable to a host of security attacks. Topics include global trade threats, cyber threats, theft of trade secrets, economic espionage and more.

Under the leadership of the NSD and BIS, the strike force was launched to protect U.S. Advanced Technologies critical technological assets that are at risk of being illegally acquired by foreign adversaries. The strike force operates in 14 metropolitan regions across the United States including Houston and Dallas with oversight from the local U.S. Attorneys’ Offices.

According to the DOJ, nation-state adversaries can use advanced technology such as the People’s Republic of China, Iran, Russia and North Korea to enhance its military capabilities, improve calculations in weapons design and testing and develop algorithms to break encryptions that protect sensitive data and classified information.

Registration is $40 to attend and the registration form is available online. Open to the public and media, the discussions will be held at Partnership Tower, 701 Avenida De Las Americas Houston, TX 77010.

Click here for more information on the Disruptive Technology Strike Force.

Fifteen additional Texas doctors have agreed to pay a total of $2.83 million to resolve False Claims Act allegations involving illegal kickbacks in violation of the Anti-Kickback Statute and Stark Law, and to cooperate with the Department of Justice’s investigations of and litigation against other parties.

“The Anti-Kickback and Stark Statutes help protect the integrity of federal health care programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue both individuals and corporations responsible for schemes that violate these important safeguards.”

“These settlements should reinforce the message that the Eastern District of Texas will not tolerate health care providers who seek to enrich themselves through kickback schemes,” said U.S. Attorney Brit Featherston for the Eastern District of Texas. “We will continue to work with our agency partners to identify those who defraud our taxpayers and we will hold those who have engaged in the schemes responsible.”   

“This outcome is the result of cooperation amongst law enforcement partners focused on upholding the integrity of federal health care programs,” said Special Agent in Charge Miranda L. Bennett of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We will continue to pursue physicians engaging in improper financial relationships to ensure patients are receiving quality medical care.”

The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally-funded programs. The Stark Law forbids a hospital or laboratory from billing Medicare for certain services referred by physicians that have a financial relationship with the hospital or laboratory. The Anti-Kickback Statute and the Stark Law are intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.

The settlements announced today resolve allegations that 15 Texas doctors violated the Anti-Kickback Statute and the Stark Law by receiving thousands of dollars in remuneration from nine management service organizations (MSOs) in exchange for ordering laboratory tests from Rockdale Hospital dba Little River Healthcare (Little River), True Health Diagnostics LLC (True Health), and/or Boston Heart Diagnostics Corporation (Boston Heart). Little River allegedly funded the remuneration to certain doctors, in the form of volume-based commissions paid to independent contractor recruiters, who used MSOs to pay numerous doctors for their referrals. The MSO payments to the doctors were allegedly disguised as investment returns but in fact were based on, and offered in exchange for, the doctors’ referrals. 

Louis Coates, D.O., of Garland, Texas, agreed to pay $87,694 to settle allegations that from Sept. 26, 2016, to March 14, 2018, he received kickbacks from an MSO, Herculis MG LLC, in return for ordering laboratory tests from Boston Heart.

Jason DeMattia, M.D., and Candice DeMattia, M.D., both of Tomball, Texas, agreed to pay $316,142 and $207,009, respectively, to settle allegations that from Aug.1, 2014, to Dec. 31, 2016, they received kickbacks from two MSOs, North Houston MSO Group Inc. and Tomball Medical Management Inc., in return for ordering laboratory tests from True Health and Little River.

Emanuel Paul (E.P.) Descant II, M.D., of Spring, Texas, agreed to pay $256,466 to settle allegations that from Jan. 5, 2015, through Feb. 3, 2018, he received kickbacks from two MSOs, North Houston MSO Group Inc. and Tomball Medical Management Inc., in return for ordering laboratory tests from Little River.

Mitchell Finnie, M.D., of San Antonio, Texas, agreed to pay $582,522 to settle allegations that from June 4, 2015, to July 11, 2017, he received kickbacks from two MSOs, Alpha Rise Health LLC and Tango Rise Health Solutions LLC, in return for ordering laboratory tests from Boston Heart, True Health and Little River.

Mark Le, M.D., of Tomball, Texas, agreed to pay $57,900 to settle allegations that from May 9, 2016, to Sept. 22, 2017, he received kickbacks from two MSOs, North Houston MSO Group Inc. and Tomball Medical Management Inc., in return for ordering laboratory tests from True Health and Little River.

Richard Le, M.D., of Houston, Texas, agreed to pay $41,000 to settle allegations that from Sept. 29, 2016, to Aug. 24, 2017, he received kickbacks from two MSOs, North Houston MSO Group Inc. and Tomball Medical Management Inc., in return for ordering laboratory tests from True Health and Little River.

Robert Jeremy Laningham, M.D., and Rodney Jason Laningham, M.D., both of Conroe, Texas, agreed to pay $470,560 to settle allegations that from Aug. 8, 2015, through July 6, 2016, they received kickbacks from two MSOs, SYNRG Partners LLC and Transparity Associates LP in return for ordering laboratory tests from Boston Heart, True Health and Little River.

Andres Mesa, M.D., of Houston, Texas, agreed to pay $45,484 to settle allegations that from May 1, 2016, to Jan. 9, 2018, he received kickbacks from an MSO, Transparity Associates LP, in return for ordering laboratory tests from Boston Heart and Little River.

Melissa Miskell, D.O., of New Braunfels, Texas, agreed to pay $100,392 to settle allegations that from July 13, 2015, to Dec. 14, 2017, she received kickbacks from an MSO, Alpha Rise Health LLC, in return for ordering laboratory tests from Boston Heart and Little River.

Marco Munoz, M.D., of Fort Worth, Texas, agreed to pay $54,280 to settle allegations that from July 7, 2015, to April 6, 2016, he received kickbacks from an MSO, Alpha Rise Health LLC, in return for ordering laboratory tests from Boston Heart and Little River.

Kozhaya Sokhon, M.D., of the Woodlands, Texas, agreed to pay $160,456 to settle allegations that from Jan. 16, 2015, to May 18, 2018, he received kickbacks from two MSOs, SYNRG Partners LLC and Transparity Associates LP, in return for ordering laboratory tests from Boston Heart and Little River.

Annie Varughese, M.D., of the Woodlands, Texas, agreed to pay $213,888 to settle allegations that from Sept. 1, 2015, to Nov. 17, 2017, she received kickbacks from three MSOs, SYNRG Partners LLC, Transparity Associates LP, and North Houston MSO Group Inc., in return for ordering laboratory tests from True Health and Little River.

Paul Worrell, D.O., of Dallas, Texas, agreed to pay $237,487 to settle allegations that from Oct. 9, 2015 to Dec. 31, 2017 he received kickbacks from three MSOs, Ascend MSO of TX LLC, Eridanus MG LLC and BDS Healthcare LLC, dba Vybrem Labs, in return for ordering laboratory tests from Boston Heart, True Health and Little River.

As part of their settlements, the 15 physicians have agreed to cooperate with the Department of Justice’s investigations of and litigation against other parties involved in the alleged violations of law.

“Today’s announcement is another step forward by the Department of Defense, Office of Inspector General’s Defense Criminal Investigative Service (DCIS) and our law enforcement partners to protect the integrity of the military’s health care system, commonly known as TRICARE,” said Acting Special Agent in Charge Gregory P. Shilling of the DCIS Southwest Field Office. “We will continue to aggressively investigate and hold those accountable that take advantage of the U.S. government and American taxpayers.”

“The VA Office of Inspector General actively investigates those in violation of the Stark Law and the Anti-Kickback Statute,” said Special Agent in Charge Jeffrey Breen of the South Central Field Office of the Department of Veterans Affairs Office of Inspector General (VA-OIG). “Today’s civil settlements demonstrate the VA-OIG’s ongoing work to hold individuals accountable and protect the integrity of federal healthcare programs.”

Former True Health CEO Christopher Grottenthaler, former Boston Heart CEO Susan Hertzberg, former Little River CEO Jeffrey Madison, and others are defendants in a separate False Claims Act lawsuit in which the United States filed an amended complaint in May 2022. That pending case is captioned United States ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.). If a defendant is found liable for violating the act, the United States may recover three times the amount of its losses plus applicable penalties.

The civil settlements were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Eastern District of Texas, with assistance from HHS-OIG, DCIS and VA-OIG. As a result of its efforts, the United States has recovered over $32 million relating to conduct involving Boston Heart, True Health and Little River, including False Claims Act settlements with 33 physicians, two health care executives, and one laboratory. This matter and the related matters were handled by attorneys Christopher Terranova and Gavin Thole in the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorneys James Gillingham, Adrian Garcia and Betty Young for the Eastern District of Texas.

The government’s pursuit of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).

The claims resolved by the settlements are allegations only, and there has been no determination of liability.