Veterans Affairs - OIG

Three Oklahoma Men Ordered to Stop Fraudulent Debt Collections Scheme that Harmed Veterans

The US District Court for the Northern District of Oklahoma issued a preliminary injunction ordering the owners of Assured Collections LLC and Assured Financial LLC to stop their fraudulent debt collection scheme. Owners, Christopher Parks, Christopher Noah Parks, and Stephen Miller, used their companies to distribute thousands of fraudulent debt collection notices to consumers, many of which were older adults and veterans. These notices falsely stated that consumers owed money for durable medical equipment, when the defendants had no authority to contact consumers to attempt to collect any debt. According to the charging documents, despite knowing that the debt notices were fraudulent, the defendants continued to contact consumers and attempt to collect money. The VA OIG investigated this case with the Health and Human Services OIG, the USPS OIG, the Department of Labor OIG, and the FBI.

Nurse Practitioner Pleaded Guilty to $6.1 Million Healthcare Fraud Conspiracy in Idaho

Kristen Bolling, of Sheridan, Wyoming, pleaded guilty to conspiracy to commit healthcare fraud in Idaho. According to court records, from April 2017 through October 2019, Bolling conspired to commit healthcare fraud where she received more than $200,000 in kickbacks. She accepted pre-filled medical orders from companies, signing the orders without seeing the patients or making a medical necessity determination, and returned the signed orders to the companies in exchange for compensation. During this time, Bolling was licensed and practiced as a nurse practitioner in Idaho. She was also licensed in Wyoming, Colorado, and Washington. The medical orders that Bolling signed, which the companies sold, were used to fraudulently bill Medicare, resulting in payments of over $6.1 million for tests and equipment that were not medically necessary.

Life-Sciences Company Agrees to Pay $653,143 to Resolve Allegations of Kickback Violations

A California-based life sciences company that makes diagnostic tests for the treatment of autoimmune conditions, Exagen Inc., has agreed to pay $653,143 to resolve allegations that it paid specimen processing fees to referring physicians to induce those physicians’ use of Exagen’s laboratory tests. According to the settlement agreement, Exagen agreed to factual admissions that it paid referring physicians to complete blood draws for patients pursuant to specimen processing agreements that Exagen entered into with those physicians. The company billed federal health care programs, including Medicare and other programs, for tests that it performed after receiving orders from the referring physicians to whom it paid the specimen processing fees. Exagen did so after becoming aware of a June 25, 2014, Special Fraud Alert from the Department of Health and Human Services’ Office of the Inspector General that warned laboratories that the practice of paying referring physicians specimen processing fees could present a substantial risk of fraud and abuse.

Former Sailor Sentenced for $2 Million Insurance Fraud Scheme

Christopher Toups, who at the time of this crimes was a chief petty officer in the Navy, was sentenced to 30 months imprisonment after admitting that he and others defrauded an insurance program meant to compensate service members who suffer serious and debilitating injuries while on active duty. He previously pleaded guilty to conspiracy to commit wire fraud. The participants in the scheme obtained approximately $2 million in payments from fraudulent claims submitted to the Traumatic Servicemembers Group Life Insurance Program. Toups personally received about $400,000 by conspiring with his then-wife and a Navy doctor to file claims based on exaggerated or fake injuries or disabilities. The VA OIG, Naval Criminal Investigative Service, and FBI investigated this case.

New York Man Sentenced for Lying to FAA

Noah Felice of Fayetteville, New York, was sentenced to one month incarceration for lying to the Federal Aviation Administration (FAA), following a jury trial in December 2022 where evidence proved he submitted an application to the FAA for an airman medical certificate. This certificate demonstrates that a pilot is medically fit to fly an aircraft. On the application, he stated that he had no history of criminal convictions and was not receiving medical disability benefits when he had four prior misdemeanor convictions, two of which were for lying about his criminal convictions on state and local forms. Felice was also receiving thousands of dollars each month from VA for post-traumatic stress disorder. This case was investigated by the VA OIG and the Department of Transportation OIG.

Louisiana Fiduciary Sentenced to 18 Months for Misappropriating Veteran’s Funds

From 2016 until 2018, Sloane Signal-Debose of Slidell, Louisiana, was a fiduciary for a veteran who needed assistance with the management of his affairs. During that time, she took more than $100,000 from the veteran’s accounts, and routed it through bank accounts in her own name. Signal ultimately used the money for a down payment and repairs on a home for which she was the sole legal owner. She also submitted false records to VA to hide her misuse of the veteran’s funds. She was sentenced to 18 months in prison and three years of supervised release after pleading guilty to misappropriation by a veteran’s fiduciary. The VA OIG investigated the case.

Cardiac Imaging Company and Founder to Pay Historic $85M Settlement

Cardiac Imaging Inc. (CII), headquartered in Illinois, and its founder, owner and CEO Sam Kancherlapalli, a resident of Florida, have agreed to pay nearly $85.5 million to resolve False Claims Act allegations that they paid referring cardiologists excessive fees to supervise PET scans in violation of the anti-kickback statute and the physician self-referral law known as the “Stark” law. CII agreed to pay $75 million plus additional amounts based on future revenues, while Kancherlapalli agreed to close to $10.5 million. The VA OIG participated in this multiagency investigation.

New York Woman Sentenced for Misappropriating Funds as a Veteran’s Fiduciary

JoAnne Natalie of Saratoga Springs, New York, stole more than $50,000 in VA benefits while serving as a veteran’s fiduciary between September 2019 and January 2021. Natalie admitted to using the funds deposited into the veteran’s bank account for her own personal needs and to willfully neglecting and failing to submit required accountings to VA. She was sentenced to three months in jail, three months of home detention, and two years of supervised release. She was also ordered to pay restitution to the estate of the veteran. The VA OIG investigated this case.

US Files Civil Complaint Against Mississippi School Owner Alleging VA Education Benefits Fraud

The US Attorney for the Southern District of Mississippi filed a civil complaint against April Tucker Beard and her barber school, seeking damages and penalties for allegedly defrauding VA’s Post-9/11 GI Bill education assistance program of over $235,000. From July 2017 to November 2019, Beard allegedly made or caused to be made false statements to VA regarding veteran students’ enrollment in her barber training program, including inflating tuition and fees for VA students in the amount of $22,400, as compared to $50 weekly or $2,400 for non-VA students. According to the complaint, she did not maintain accurate attendance records or complete and accurate payment ledgers and did not provide course instruction and certificates of completion to VA students in accordance with the program rules. The VA OIG investigated this case with the Veterans Benefits Administration’s Education Service.

West Virginia Woman Sentenced to Prison for Theft of Military Death Benefits

For nearly 12 years, Jessica Horton of Matewan, West Virginia, stole VA Survivor’s Dependency and Indemnity Compensation benefits meant for her great aunt. Horton’s great aunt, whose husband died in World War II, passed away in 1999, after which Horton’s mother fraudulently used the benefits for herself. Starting in 2011, Horton began claiming the benefits for her own use, depositing the funds in various bank accounts that she owned. VA terminated the monthly benefits in January 2023. Horton was sentenced to four months in prison, four months of home detention, three years of supervised release, and more than $180,000 in restitution. The VA OIG and the FBI investigated this case.

Four Men Indicted on Conspiracy to Commit Wire Fraud Charges and Major Fraud Against the US

Four defendants—Matthew West of Lantana, Florida; Kevin Kutina of Ramona, California; Roberto Gonzalez of Palmetto Bay, Florida; and William Gonzalez of Orlando, Florida—were indicted on conspiracy to commit wire fraud charges and substantive counts of wire fraud and major fraud against the United States. The indictment alleges the men submitted a bid containing false statements and omissions in an attempt to be awarded a multimillion dollar contract to build a cancer treatment center at Bay Pines VA Medical Center in Florida. After they were awarded the contract, the group submitted multiple invoices for payment, and as a result, the US Treasury paid the conspirators more than $4.8 million at a loss to VA. The VA OIG investigated this case.

Los Angeles VA Police Officer Indicted on Federal Civil Rights and Assault Charges for Beating Man

Juan Anthony Carrillo, a VA Police officer, allegedly used a department-issued baton to illegally strike a man approximately 45 times in 41 seconds at the West Los Angeles VA Medical Center. The victim, who sustained injuries to his legs that included bleeding and lacerations, had been detained by another officer when Carrillo arrived at the scene. Most of Carrillo’s baton strikes were allegedly delivered while the other officer was on top of the victim, who, according to the indictment, was much smaller in stature than either of the officers. The VA OIG, FBI, and VA’s Office of Security and Law Enforcement are investigating this case.

Massachusetts Woman Pleaded Guilty to Stealing Government Benefits

From July 2019 to August 2021, Karen Nolan of Norwood, Massachusetts, stole Social Security disability and workers’ compensation benefits by falsely reporting to the Social Security Administration (SSA) and the Office of Workers’ Compensation Programs that a medical disability had prevented her from working since 2017. Nolan, who was actively employed at a dermatology practice during this period, pleaded guilty to theft of public funds and making false statements following an investigation by the VA OIG, SSA OIG, and the Insurance Bureau of Massachusetts.

Houston Physician and Two Pharmacists Indicted for $170 Million Fraud Scheme

Houston pharmacist Shalondria Simpson, along with her business partner, Shayla Bryant, allegedly paid Simpson’s twin sister, physician Lashondria Simpson-Camp, and others illegal kickbacks and bribes in exchange for prescriptions that were often medically unnecessary. Between 2016 and 2022, they allegedly conspired to submit false and fraudulent claims to the Department of Labor’s Office of Workers’ Compensation Program, which administers workers’ compensation benefits on behalf of the Federal Employee’s Compensation Act. In total, Simpson submitted approximately $170 million in fraudulent claims through the labor compensation program. The three defendants were indicted on multiple charges, including conspiracy to defraud the United States and conspiracy to commit healthcare fraud. The VA OIG, US Postal Service OIG, Department of Labor OIG, and FBI are investigating the case.

Tampa Woman Convicted for Stealing VA Benefits Intended to Assist Disabled Veterans

Melanie Marshall of Tampa, Florida, was found guilty of theft of government funds for stealing from the VA’s Vocational Rehabilitation and Employment program. Although Marshall was eligible for the program, which assists veterans with service-connected disabilities find employment, she lied to her vocational rehabilitation counselor in order to continue receiving benefits beyond what had been approved. After failing to report that she had completed a degree in December 2015, she lied on multiple occasions regarding her progress. As a result of Marshall’s lies, the VA continued to pay for classes and issue monthly subsistence allowance payments totaling $20,986.92. This case was investigated by the VA OIG and Social Security Administration OIG.

Professor and Yale University Agree to Pay $1.5 Million for Failing to Share Patent Royalties with VA

Dr. John Krystal and Yale University have agreed to pay more than $1.5 million to resolve False Claims Act and common law allegations that they failed to disclose certain patents and failed to share patent royalties with the VA for inventions made by Dr. Krystal. At the time of the inventions, Dr. Krystal was employed part-time at Yale while also employed part-time at the VA medical center in West Haven, Connecticut. In 2006, Dr. Krystal and other co-inventors registered patents for treatments for depression and suicidal ideation and did not disclose the patents to the VA. In 2015, they began receiving royalty payments, now totaling more than $3 million.

LA Man Sentenced for Defrauding Military Families and California Universities

Don Azul, of Los Angeles, California, was sentenced in connection with a yearslong scheme he perpetrated against relatives of veterans as well as the University of California and California State University systems. Azul posed as an authorized contractor for the California Department of Veterans Affairs (CalVet) and defrauded more than 40 families with a grandparent or other family member who served in the armed forces into paying at least $500 each for counterfeit CalVet college fee waivers. The waivers are a free benefit provided by California that waive tuition and fees for certain eligible students, including children of a military veteran with a 100 percent service-connected disability. As a plea deal, Azul agreed to serve three years and four months in a state prison and has been ordered to pay more than $450,000 in restitution. The VA OIG investigated this case with the police departments of several universities.

West Virginia Man Charged with Wire Fraud in Elder Justice Case

Joseph Beach, of Inwood, West Virginia, was indicted for misappropriation by a fiduciary, wire fraud, theft of government property, false written statement, and false statement to a federal agent. In late 2017, Beach was appointed as fiduciary for his veteran father who receives monthly benefits. Allegedly, Beach received his father’s disability, retirement, and social security payments and used them for his own benefit. The VA OIG, the US Office of Personnel Management, and the Social Security Administration investigated this case.

New Hampshire Man Indicted for Faking Disability to Get Veterans Benefits for Nearly 20 Years

Christopher Stultz, of Antrim, New Hampshire, was indicted on one count of making false statements to the VA and fraudulently receiving veteran disability benefits. Between January 2003 and December 2022, it is alleged that Stultz falsely represented that he could not use both his feet and obtained benefits that he was not entitled to receive. The charge could lead to five years in prison and up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The VA OIG investigated this case.

Louisiana Woman Charged with Making a False Oath in a Bankruptcy Matter

Jeannine Dukes, of News Orleans, Louisiana, was charged for making a false oath in a bankruptcy matter in violation of US Code. She failed to disclose in her bankruptcy case that she had applied for a COVID-19 Paycheck Protection Program loan in May of 2021 and received more than $20,000 in PPP funds on June 8, 2021. The VA OIG investigated this case with the Office of the US Trustee, Region 5.

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