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Suburban Chicago Home Sleep Testing Company To Pay $3.5 Million To Settle Federal Health Care Fraud Suit | USAO-NDIL

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CHICAGO — A suburban Chicago diagnostics company that provides home sleep testing will pay $3.5 million to the United States to settle a civil lawsuit accusing the company of defrauding Medicare and four other federal health care programs through kickbacks and unnecessary home sleep testing.

The suit in U.S. District Court in Chicago alleged that SNAP DIAGNOSTICS LLC, a nationwide provider of home sleep testing diagnostic services based in Wheeling, Ill.; its founder, GIL RAVIV; and its vice president, STEPHEN BURTON, violated the False Claims Act and the Anti-Kickback Statute by fraudulently billing Medicare and four other federal health care programs for medically unnecessary services and for services that were occasioned by kickbacks.   The suit alleged that Raviv directed SNAP to submit claims for patients’ second and third nights of home sleep testing when, in fact, the company knew that only a single night of testing was needed to effectively diagnose obstructive sleep apnea and that it routinely tested and claimed only one night for patients with private health insurance.  As a result, the suit alleged that, in addition to defrauding five federal agencies, SNAP unlawfully multiplied the copays it received from senior citizens who were Medicare beneficiaries.  The suit also alleged that SNAP’s business model relied on several unlawful kickback schemes, which incentivized physicians and their staffs to refer all of their home sleep testing services to SNAP.

As part of a settlement agreement approved Friday by U.S. District Judge Mary M. Rowland, SNAP agreed to pay the United States $3.5 million, while Raviv will pay $300,000, and Burton $125,000, for a total settlement amount of $3.925 million.    These payments represent amounts the United States is willing to accept due solely to SNAP’s, Raviv’s, and Burton’s respective financial conditions, as shown by sworn financial disclosures.  SNAP and Raviv also entered into a corporate integrity agreement with the Office of Inspector General of the U.S. Department of Health and Human Services, requiring SNAP to, among other things, retain an independent review organization to perform annual reviews of claims and submit reports to the OIG-HHS.

The settlement was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Cynthia A. Bruce, Special Agent-in-Charge of the U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Southeast Field Office; Gregory Billingsley, Special Agent-in-Charge of the U.S. Department of Veterans Affairs Office of Inspector General’s Central Field Office; Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Martin J. Dickman, Inspector General of the U.S. Railroad Retirement Board Office of the Inspector General in Chicago; and Amy K. Parker, Special Agent-in-Charge of the U.S. Office of Personnel Management Office of the Inspector General.  The government was represented by Senior Litigation Counsel Sarah J. North and Assistant U.S. Attorney Kate Flannery.

“When health care providers violate their obligation to properly bill for federally funded treatment, government programs and American taxpayers pay the price,” said U.S. Attorney Lausch.  “Our office remains committed to protecting taxpayers and preserving the integrity of our federal health care system.”

“American taxpayers should never foot the bill for private companies seeking to profit by defrauding government programs,” said FBI Special Agent-in-Charge Buie.  “The FBI will continue working with law enforcement and prosecutorial partners to fight illegal kickback schemes and ensure that justice is done within the federal medical system.”

“We aggressively investigate cases of fraud, which take money from VA programs meant to benefit our nation’s veterans and their families,” said VA OIG Special Agent-in-Charge Billingsley.  “The VA OIG thanks the U.S. Attorney’s Office and our law enforcement partners for their efforts in this joint investigation.  We encourage anyone who becomes aware of fraud against the VA to contact the VA OIG Hotline.”

“We are proud to be part of this collaborative effort and would like to thank our law enforcement partners and the U.S. Attorney’s Office for their dedication and excellent work in this case,” said RRB-OIG Inspector General Dickman.  “Medicare fraud remains a top federal law enforcement priority and providers who exploit our healthcare system will not be tolerated.”

“The OPM OIG is committed to holding accountable those who seek to enrich themselves by inflating costs and overbilling the Federal Employees Health Benefits Program for medically unnecessary tests,” said OPM OIG Special Agent-in-Charge Parker.  “We applaud our investigative staff and law enforcement partners on today’s settlement, which is a direct result of their hard work investigating these types of health care fraud schemes.”

“Individuals involved in this scheme defrauded TRICARE and I am pleased that the U.S. Attorney’s Office is requiring justice,” said DCIS Special Agent-in-Charge Bruce.  “DCIS agents will continue to pursue individuals who improperly profit from our military health care system and all taxpayers.”

The settlement resolves two civil lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act.  The Act permits private citizens to bring lawsuits on behalf of the United States for false claims, and to share in any recovery.  The United States intervened in the two lawsuits and filed a complaint in intervention prior to the settlement.  The settlement agreement is neither an admission of liability by SNAP, Raviv, or Burton, nor a concession by the United States that its claims are not well founded.


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North Carolina Man Arrested for Instructing Others on Making and Using Explosives | USAO-EDNC

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WILMINGTON, N.C. – A Duplin County man has been charged in an indictment for teaching another individual how to make and use an explosive, knowing that the individual intended to use that instruction in the attempted murder of federal law enforcement, in violation of 18 USC 1114, all in violation of Title 18, USC Sections 842(p)(2)(B) and 844.  Christopher Arthur, 38, residing in Mount Olive, North Carolina, was arrested on January 22, 2022, and was presented before U.S. Magistrate Judge Robert B. Jones, Jr., today.

According to court documents, in 2018 the Federal Bureau of Investigation (FBI) received information that another individual was attempting to organize and recruit for a militia group and was preparing to engage against the United States Government.  On May 27, 2020, that individual was stopped by law enforcement in New York and was shot and killed following a two-hour police pursuit and an exchange of gunfire.  During the execution of a search warrant on his vehicle, law enforcement located three improvised explosive devices (IEDs).  Numerous additional IEDs and firearms were found in the search of his residence along with multiple Tackleberry Solutions tactical instructional manuals which named as the author Christopher Arthur.  A review of the individual’s cell phone indicated that he had attended training with Arthur at Tackleberry Solutions in Mount Olive for multiple days in March of 2020.

According to the search warrant affidavit for Arthur’s residence, on March 19, 2021, the FBI covertly requested a free PDF document from Tackleberry Solutions.  After a short period of time, an email was received from Arthur indicating that he had to keep parts of the information in the PDF off of the internet since explosives were such a touchy topic.  Arthur also gave his phone number and mailing address.  Arthur then began communicating via phone regarding the manuals.  

On May 5, 2021, Arthur, at Arthur’s residence in Mount Olive, explained how to properly place IEDs through one’s property, the importance of creating a fatal funnel, the setup and use of remote-activated firearms, and how to evade arrest after killing members of law enforcement – all after learning the recipient of the explanation intended to kill federal law enforcement who might come to his home.  At the conclusion, Arthur demonstrated how to make components of IEDs, to include tripwire switches and improvised initiators.  Once he was finished demonstrating how to make the components, Arthur provided them to the recipient of his training.

Subsequent to Arthur’s arrest, a search warrant was executed at his home.  During the search, multiple IEDs, an IED striker plate, an electronic IED trigger and other IED components, a pistol suppressor, bulk gunpowder, and mixed Tannerite explosive were recovered.

“According to these charges, the defendant provided someone with training on explosive devices knowing that person intended to use that information to murder or attempt the murder of law enforcement,” said United States Attorney Michael Easley.  “This type of behavior is criminal, it is unacceptable, and it will be prosecuted to the fullest extent.  Here in Eastern North Carolina, we will protect the brave men and women of law enforcement who are sworn to protect us.  The Justice Department will aggressively investigate and prosecute those whose actions would further violence against those in uniform.  Our public servants in law enforcement deserve nothing less.”

“Law enforcement officers are being feloniously killed in the line of duty at an alarming rate. 2021 saw the most officers murdered since the 9/11 attacks. The behavior alleged in this indictment, training someone in methods of how to kill or injure law enforcement, is both serious and frightening,” said Robert R. Wells, FBI Special Agent in Charge. 

The defendant faces a maximum sentence of 20 years in prison and a fine of $250,000 if convicted.

Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement. The Federal Bureau of Investigation, the North Carolina State Bureau of Investigation, the Raleigh Police Department and Cary Police Department are investigating the case.

An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.


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The FBI went to Trump’s house and Nevada Republicans couldn’t be happier

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Republicans see the FBI’s visit to sunny Florida as a welcome development that will take some sting off Trump’s declining stature – even within much of the far right – and perhaps mitigate the palpable harm Trump brings to Republicans up and down the ballot. (Photo by Joe Raedle/Getty Images)

Just last month Trump was right here in Las Vegas preaching about how much he loves law enforcement. 

But then law enforcement came to his house.

The FBI reportedly went to Trump’s compound or lair or whatever it is in Florida to retrieve classified documents and materials that aren’t his to keep. To which the right is saying classified schmassified, this is just a deep state witch hunt, radical leftists, argle bargle etc. 

You can see their point. After all, it’s not like Trump committed an outrageous crime against humanity for which someone should obviously be locked up, like sending emails over a private server.

The details on all this are still pretty scant, but Republicans, the vast majority if not all of whom don’t know any more about what the FBI is doing and why than you do, are now pretty pumped. 

They’ve seemed on their back feet lately, which is weird given the fundamentals of midterm elections when the party out of power routinely obliterates the party that controls the White House. They see the FBI’s visit to sunny Florida as a welcome development that will take some sting off Trump’s increasingly battered brand – even within much of the far right – and perhaps mitigate the palpable harm Trump brings to Republicans up and down the ballot in a general election.

Republican politicians in Nevada and the nation may be outraged on the outside. But they’re giddy on the inside.

U.S. Senate candidate Adam Laxalt is a former, if somewhat accidental, Nevada attorney general, the highest law enforcement position in the state even when Laxalt has the job. But he quickly demonstrated his support for law enforcement wilts if the subject of law enforcement’s inquiry is Trump.

Monday’s “raid” of Trump’s Florida monument to his underlying inferiority complex “is just another example of the growing weaponization of our federal agencies by the Left while people like Hunter Biden live freely,” Laxalt tweeted. “Starting Nov. 8th, this power grab will come to an end.”

First, props to Lil’ Adam for rocking it old school and busting out Hunter Biden. Super nice vintage diversion there.

Second, we’re capitalizing “Left” now? Shouldn’t the “Left” at least be an organized thing first? Because it never has been in this country.

But most impressively of course is Laxalt’s use of the term “power grab,” Laxalt being Nevada’s most high-profile early peddler of the Big Lie that culminated in an attempted coup to overturn the will of the U.S. electorate and allow Trump to illegally retain the presidency. 

Power grab? Project much, Adam?

Laxalt has many rivals in the contest to be Nevada’s biggest, most gormless Trump suck-up, but the most notable challenger – and one who has probably garnered just as much if not more national and even international press than Laxalt (sorry, Adam) – is of course GOP secretary of state candidate Jim Marchant.

Taking a break from his busy schedule of spotting a global “cabal” around every corner, under every bed, in every closet, on every judicial bench, and in every election official’s office, Marchant called on all his reindeer friends to join him in an “emergency meeting here in Las Vegas, the source code for election fraud … to express solidarity” with Trump. Such a meeting, Marchant explained, is vital given “federal government provocations to incite political instability so as to prevent President Trump from lawfully gaining the presidency and the Republican party from winning the 2022 Congressional and state general elections.”

Reality check: If Merrick Garland’s Department of Justice was working hand-in-hand with Democrats in a partisan, politicized pursuit of a Democratic agenda, as people like Marchant would like you to believe, the DOJ would have not have sought a search warrant at this stage of the midterm campaigns.

Marchant’s reference to “political instability” is not uninteresting though, if not for the reason Marchant thinks. One of Marchant’s lesser claims to notoriety is standing shoulder to shoulder with Nevada’s fake electors when they signed their phony boney Nevada electoral vote certificate – the one  that was sent to Congress as part of the the plot to either get Mike Pence a) to throw out so-called “contested” states and overturn the election, or b) hanged.

“Incite political instability”? Project much, Jim?

Weirdly, Marchant’s statement failed to provide a time, date and specific location for this very important emergency meeting. Oh no! There might not actually be one. Eh, this might be one of those things where it’s the thought that counts.

Since she is the Republican nominee for Nevada attorney general, Sigal Chattah deserves a mention. For U.S. Department of Justice officials to convince a federal judge to serve a lawful search warrant in connection with an investigation is not an act of law enforcement procedure, according to the woman who wants to be Nevada’s top law enforcement official. Serving a search warrant on Trump is, rather, “how civil wars are started,” Chattah tweeted.

She sounds like a South Carolina fire-eater, circa 1859. If there is a civil war, we all know which side will fire the first shot.

Meanwhile, as of Wednesday morning, one notable GOP hopeful had evidently refrained from joining all the fun, and not rendered a public opinion on the FBI going to Trump’s house. After their candidate sat on stage while Trump called Nevada “a cesspool of crime,” gubernatorial candidate Joe Lombardo’s handlers may have decided their campaign has had more than enough Trump already, thank you, and doesn’t want to get any more on them.

Respect please, it’s a former president

He may not be a particularly influential member of Congress, but Mark Amodei is Nevada’s only Republican in it. And his statements are always pretty fun, though perhaps not in the way he intends them to be.

“Efrem Zimbalist Jr. is rolling in his grave,” Amodei’s statement begins. For you younger readers, Efrem Zimablist Jr. was an actor who half a century ago starred in a popular television program (for you younger viewers, television is … oh never mind) called The F.B.I. Advising the show, and reportedly a great fan of both it and Zimbalist, was then FBI Director J. Edgar Hoover, who among other things was a virulent racist who tried to use the power of the federal government to destroy Martin Luther King Jr. and anybody else he didn’t like. But I digress…

“If you think raiding a former President and potential presidential candidate on the pretense of retrieving archives is just another day at the office, I disagree,” Amodei continued.

As it happens, it is only Republicans like Amodei who contend the FBI served its search warrant at House o’ Trump on a “pretense.”

Pretense? Project much, Mark?

But Amodei’s most trenchant phrase, albeit inadvertently, is “a former President,” which indicates that no matter how singularly divisive and repellent Trump is, he should be revered for being inaugurated as president once even though he lost the election. The phrase “a former president” has been deployed by multiple Republicans, including Laxalt in a fundraising email – again, Republicans are giddy about this – as if “a former president” is a sacred figure beyond reproach, let alone federal investigation..

True, there have only been 44 former presidents in the nation’s history. And also true, Trump is the only one to have the FBI break into his safe (…that we know of; never can tell what Hoover might have got up to).

But that’s far from the only presidential distinction that belongs to Trump and Trump alone. 

At the very first Jan.6 committee hearing, committee Chair Rep. Bennie Thompson reflected on a letter Abraham Lincoln had written vowing to honor the election results if he lost. Lincoln then sealed up the letter and had his cabinet sign it without seeing it. By doing that, Lincoln literally sealed a pledge to accept the verdict of the people.

By heeding the will of the electorate, Lincoln, Thompson noted, was doing what every president before him had done. And by heeding the electorate’s will, Thompson continued, Lincoln was also doing what “every president who followed him would do. Until Donald Trump.”

Republicans are expressing outrage. Some of them are probably sincere. A lot of them are just delightedly glomming on to what they view as an opportunity to rile up the base.

Precious few if any of them are saying that if Trump didn’t have a documented history not only of lying all the time about everything, and not only of putting his own self interest above everyone else’s, including the people of the United States, but of tearing up, carting off and otherwise mishandling official documents that don’t belong to him, he probably wouldn’t be in this situation.

To reiterate, as yet we don’t know exactly what the feds are looking for. Everyone wants Garland’s DOJ to provide more information sooner rather than later. Trump himself could release the details of the search warrant he was served, but Republicans are too busy calling for Garland’s head to ask Trump to accompany his bluster with some actual information.

What we do however know is that Trump is a uniquely untrustworthy person, and a uniquely transactional one. If he carted off documents or materials that would have value to his sweetheart pen pal in North Korea, or Putin, or whoever else harbors a hurt America first policy, then what exactly is the correct response of the United States government? Trump has shown time and again that he has no morals, no conscience, and no boundaries.

Oh, and as for Trump squealing and whining in fundraising pitches and elsewhere that he’s a victim, that’s just a thing that happens on any day that ends in y.

Our stories may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0. We ask that you edit only for style or to shorten, provide proper attribution and link to our web site.




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Three Nigerian Nationals Extradited to the United States from the United Kingdom for Participating in Business Email Compromise Fraud Schemes | OPA

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Three Nigerian citizens were extradited from the United Kingdom (UK) and arrived in the United States in relation to their alleged participation in multimillion-dollar cyber-enabled business email compromise (BEC) fraud schemes in the Western District of North Carolina, Southern District of Texas and Eastern District of Virginia. The scams allegedly perpetrated by the defendants and their co-conspirators targeted unsuspecting victims including universities in North Carolina, Texas and Virginia, and attempted to cause more than $5 million in losses.

BEC, also known as “cyber-enabled financial fraud,” is a sophisticated scam often targeting employees with access to company finances, businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. The same criminal organizations that perpetrate BEC also exploit individual victims, often real estate purchasers, the elderly, and others, by convincing them to make wire transfers to bank accounts controlled by the criminals. This is often accomplished by impersonating a key employee or business partner after obtaining access to that person’s email account or sometimes done through romance and lottery scams. BEC scams may involve fraudulent requests for checks rather than wire transfers; they may target sensitive information such as personally identifiable information (PII) or employee tax records instead of, or in addition to, money; and they may not involve an actual “compromise” of an email account or computer network. Foreign citizens perpetrate many BEC scams. Those individuals are often members of transnational criminal organizations, which originated in Nigeria but have spread throughout the world.

Western District of North Carolina

Oludayo Kolawole John Adeagbo aka John Edwards and John Dayo, 43, a Nigerian citizen and UK resident, and Donald Ikenna Echeazu aka Donald Smith and Donald Dodient, 40, a dual UK and Nigerian citizen, are charged with wire fraud conspiracy, money laundering conspiracy and aggravated identity theft for defrauding a North Carolina university (the University) of more than $1.9 million via a business email compromise scheme. The indictment was returned by a federal grand jury in the Western District of North Carolina on April 17, 2019, and was unsealed yesterday following Echeazu’s initial appearance in federal court in Charlotte.

According to allegations contained in the indictment, from Aug. 30, 2016, to Jan. 12, 2017, Adeagbo and Echeazu conspired with other individuals to obtain information about significant construction projects occurring throughout the United States, including an ongoing multi-million-dollar project at the victim University. To execute the scheme, the defendants allegedly registered a domain name similar to that of the legitimate construction company in charge of the University’s project and created an email address that closely resembled that of an employee of the construction company. Using the fake email address, the co-conspirators allegedly deceived and directed the University to wire a payment of more than $1.9 million to a bank account controlled by an individual working under the direction of defendants. Upon receiving the payment, the co-conspirators allegedly laundered the stolen proceeds through a series of financial transactions designed to conceal the fraud.

The wire fraud conspiracy charge and the money laundering conspiracy charge each carry a maximum statutory sentence of 20 years in prison. The aggravated identity theft charge carries a mandatory two-year prison sentence consecutive to any other term imposed.

The FBI Charlotte Field Office conducted the investigation. Assistant U.S. Attorney Graham Billings of the Western District of North Carolina is prosecuting the case.

Southern District of Texas

Oludayo Kolawole John Adeagbo aka John Edwards and John Dayo, 43, a Nigerian citizen and UK resident, is also charged in the Southern District of Texas with conspiracy to commit wire fraud and wire fraud. A federal grand jury returned the indictment March 30, 2022, which was unsealed on Aug. 3, 2022 before he was extradited to the United States. 

From November 2016 until July 2018, Adeagbo allegedly conspired with others to participate in cyber-enabled business email compromises in an attempt to steal more than $3 million from victims in Texas, including local government entities, construction companies and a Houston-area college. The indictment alleges Adeagbo and his co-conspirators registered domain names that looked similar to legitimate companies. They then sent emails from those domains pretending to be employees at those companies, according to the charges. The conspirators allegedly sent emails to clients or customers of the companies they impersonated and deceived those customers into sending wire payments to bank accounts they controlled.

Adeagbo faces up to 20 years in prison, if convicted on the charges.

The FBI Houston Cyber Task Force conducted the investigation with the assistance of the FBI Cyber and Criminal Investigative Divisions. The United Kingdom’s National Crime Agency, Metropolitan Police Service, City of London Police and Crown Prosecution Service also provided substantial assistance. Assistant U.S. Attorney Rodolfo Ramirez for the Southern District of Texas is prosecuting the case along with Trial Attorney Brian Mund of the Justice Department’s Criminal Division Computer Crime and Intellectual Property Section (CCIPS).

Eastern District of Virginia

Olabanji Egbinola, 42, is charged with wire fraud, conspiracy to commit wire fraud, money laundering, and conspiracy to commit money laundering.

According to a criminal complaint issued by the U.S. District Court for the Eastern District of Virginia, from Sept. 26, 2018, to Dec. 26, 2018, Egbinola is alleged to have conspired with others to defraud a Virginia-based university. Egbinola and co-conspirators created and used a fraudulent email account that incorporated the name of a construction company that had a large, ongoing contract with the university. Using this email account, Egbinola and co-conspirators deceived the university into transferring $469,819.49 to a bank account controlled by Egbinola and co-conspirators. That money was quickly laundered and transferred overseas through numerous transactions. Evidence obtained during the investigation showed that Egbinola repeatedly accessed the email account used to defraud the Virginia university.

The FBI Richmond Division conducted the investigation. Assistant U.S. Attorney Brian Hood of for the Eastern District of Virginia is prosecuting the case.

All three defendants were arrested April 23, 2020, by UK authorities at the request of the United States and ordered extradited on Sept. 3, 2021. All three defendants filed appeals, all of which were rejected by the UK High Court on July 12, 2022.

The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of all three defendants.

Victims are encouraged to file a complaint online with the IC3 at bec.ic3.gov. The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to BEC scams through the IC3, which can be reached at www.ic3.gov. For more information on BEC scams, visit: https://www.fbi.gov/scams-and-safety/common-scams-and-crimes/business-email-compromise.

The charges contained in an indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


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